NOTES AND COMMENTS.

Waikato Independent, Volume XXXI, Issue 1450, 10 March 1931, Page 4

NOTES AND COMMENTS.

EAST SYDNEY BY-ELECTION. It is a curious thing, but one that often happens in politics, that one set of facts can be claimed to prove two diametrically opposite points of view. Labour has won the East Sydney scat again, and naturally Mr Lang and his followers are seeking to make all the capital out of it that they can. The Nationalist camp claims that the electors' lack of sympathy with Mr Lang's financial plan has been clearly established,, and on analysing the result their claim must be upheld. Whatever points Labour can find in its own favour out of the contest there is no doubt whatever about the fact that, after a couple of years under the beneficent rule of Mr Lang, nearly 7000 voters in this electorate have changed their ideas about tho advantages- of having a Labour Government. Of these 7000, since tho election of 1929, 4750 have gone over to Nationalist opinions.

Counting the informal votes cast at []\q by-election at Sydney on Saturday, and those polled by the optimistic Communist candidate, Labour's amjority has been reduced by nearly 10,000 votes in an electorate in which there arc 46,000 people on the roll. East Sydney, which is a big industrial area, has staunchly supported Labour for over 20 years. No one would expect such a district suddenly to swing right over to Nationalism, but the fact that more than 20 per cent of them have done so is significant. With such a heavy defection from its ranks in what must be regarded as a Labour stronghold, the fate of Mr Lang's political followers next time they face the people in electorates where opinion in the past has not been all the one way, is fairly obvious. POST AND TELEGRAPH INCREASES. There has been a good deal of grumbling in the community, and especially among business people during the past week, concerning the increased post r.nd telegraph rates, and throats of retaliative economy have been made. However, on inquiry from the post office yesterday we were informed that there has been no falling off in postages, as far as can be ascertained. However, even in a comparatively small place like Cambridge, the heavy increases must have a detrimental effect upon revenue, for peoplo will be influenced by the need for economy to out. a telegram here, or a letter when they ar not absolutely necessary. The Prime Minister estimates that additional revenue to the amount of £900,000 a year will be obtained/ but the doubt that this will be achieved finds support in past experience. When the postage rates were increased in 19.13, the immediate effect was a reduction in the number of letters, etc., mailed. The letter rate was increased from Id to ljd, and the increase in the revenue was about £IOO,OOO. Seven years later the letter rate was raised to 2d, and again the effect w r as a reduction in the number of letters posted, while the revenue gained £283,982. When the rate was reduced again to a. penny in 1923 the numbers of letters posted per head of population rose at once and the revenue did not suffer much. Already there is much to support the contention that the present increase is too heavy, and that economy will force the people to cut down postages. The raising of! postage rates on parcels, too, is likely to cause business people to seek a cheaper method of delivery. An increase from 9d to 1/- in telegrams'will also cause many to curtail their expenditure in this direction.- While not losing sight of the Prime Minister's difficulties, it certainly seems.that with the people already over-burdened with taxation, Mr Forbes would, have been bet-, tor advised to make still further savings in administrative expenses, etc, rather than to increase direct taxation, especially through the post and telegraph services. Probably an increase of letter postage to ljd would have been acccptad with much better grace and with equal advantage to the revenue. However, time will show whether or not Mr Forbes has miscalculated the people's readiness to accept added burdens.