LABOUR'S PLAN

Waipa Post, Volume 48, Issue 3482, 21 June 1934, Page 4

LABOUR'S PLAN

MR A. S. RICHARDS AT PIRONGIA. AN ATTENTIVE HEARING. .Mr J. T. Johnson (chairman of the Te Awamutu Power Board) presided over a small meeting of Pirongia electors last night, when Mr A. S. Richards, M.P, for Roskill, gave a most instructive and interesting address on " Labour's Plan for Prosperity." Mr Johnson, in introducing the speaker paid a warm tribute to the Labour members for their keen interest in matters which vitally affected the people. Personally, he had notsupported Labour, but he believed the brains were not all found on any particular side cr politics. Suffice for him to say he believed the Labour members to be deep students of world economics.

In opening, Mr Richards thanked the chairman for his kind remarks and assured him the Labour Party were also opposed to the system referred to, but pointed out that dictatorship had proved no better. The average vote at last election for the Party candidates were: Labour 6.022, Reform 4.856, United 5.179, others 4.573. So that Labour was only 59.036 below the combined votes recorded for Reform and United Parties.

Mr Jordan, in an address delivered at Te Awamutu on Monday evening which had been excellently reported in the Waipa Post and circulated in the district, comprised matters which Mr Richards said he would not cover. The speaker asked what was wrong when so many were underclothed and underfed in such a rich and plentiful country in which we were starving ourselves back to prosperity. What does a farmer produce for ? asked the speaker. He produces for a market —for consumption. If the farmer has no market his produce is not an asset. The reduct on in wages so reduced the purchasing power of the people that the world to-da,y was suffer.ng not so much from over production as underconsumption. Mr Richards then referred to the incomes of certain groups in New Zealand. There are 4226 persons with £IOOO to £2OOO per annum, 1271 from £2OOO to £SOOO, 185 from £SOOO to £IO,OOO, 67 from 10,000 to £20,000, 52 from £200.000 to £50,000, 23 from £50,000 to £IOO,OOO, and 11 persons with over £IOO,OOO each. Tn dealing with the banking system, Mr Richards, said the private controlship of banking had landed the wOiid —quoting Dr Nicholas Murray Butler, of New York, as having stated, "That the world owes itself three hundred thousand millions." This stupendous sum rested not on a gold basis but on the basis of real wealth expressed in terms of goods and services such as land buildings, public utilities and private properties, and was backed only by such wealth because there is only twelve thousand millions of gold in the world, mainly in two countries, France and America. This was done in New Zealand during the war years to the tune of fiftysix millions. Labour coming into power would nationalise banking credit and currency and put an end to the exploitation of the taxpayers. But what about the working farmer, the da'ryman? Labour intends to fix the price of the pound of butter by getting in exchange one shilling's worth of British goods landed in New Zealand, which is equal tc selling our butter in our own country. Labour would take out of industry thousands of aged men and women and make provision for them otherwise. It will take thousands of returned men, also the children engaged in industry. Owing to the advance of machinery in industry it is necessary to classify labour power to enable many partially crippled and aged tc be withdrawn from industry and placed on national superannuation, thereby creating a consumptive power without correspondingly producing, thereby creating a market for the farmer. A nation's prosperity mainly depends upon its consumptive power.

The speaker said that consumption absolute is the end, crown and perfection- of production. Wise consumption is a far more difficult part than wise production. The wealth of a nation fs to be maintained only by what it consumed. Those who controlled the banking system had abrogated the right to use the nation's credit by taking power from the capitalist Governments and paying to the said Governments a note tax of approximately 2 per cent per annum for the right to use the nation's credit and enslave the millions by charging them, for the use of their own credit.

Speaking of the proposed quota and New Zealand competition with foreign nations for British markets, Mr Richaids pointed out that Britain had over one thousand millions invested in South America, mainly in farms and other securities, in addition to five hundred millions in Argentine railways. The interests from this colossal sum could only be paid to Britain by goods being sold by South America to Britain and other countries. In 1930 British exports to British countries were 209 millions, equal to 39.1 per cent of Britain's total exports, while British export's to foreign countries for the same period was 327 millions, equal to 60.99 of Britain's total export trade that yeai\ The speaker contended Britain could not afford to unduly embarras foreign countries by restrictions, while such ccllosal sums of British moneys were invested in those countries.

Going on to deal with secondary industries the speaker said, from 1906 to 1930 annual wages quadrupled from 4 to 17 millions. From 1929 the annual income, wage's, etc., was reduced from 150 to 90 millions in 193334. There was a £3O .millions' drop in salaries, wages, etc., and £3O millions' drop in export prices. The Government, by its wage reduction policy, had destroyed an internal market by £3O mllions per annum. The npeaker pointed out secondary industry plants valued at £72 millions in 1932, employing approximately onefifth of the total population of New Zealand, viz, 383,000 persons, directly and indirectly, who are dependant on the miaunfacturing industries of this country. Labour :'n office would assist to' develop secondary industries, encouraging expansion theieof to enable employment to be found for our youth who are in a parlous and tragic condition. Referring to boy r , alone, there were 11,000 leaving school every vorr. This is an excess of nearly 6000 over all mem retiring and dying

annually. The Government's pol'cy had reduced employees from 66,000 to 52,000 in two years, and put out of work 14,000 in our secondary industries, alone through its wage reduction policy. The speaker said New Zealand had not over-produced, but enormously under-consumed. Their lack of purchasing power was due to low wages and incomes of the masses of the people. Notwithstanding that today we were consuming the following:—B4 per cent of amount of beef produced; 47 per cent of our mutton; 54 per cent of our pork; 98 per cent of our bacon and ham; only 3 per cent of our lamb; 35 per cent of our dairy product; 76 per cent of our fruit; and all our own vegetables. The speaker urged that if the purchasing power was in pockets of masses of people we could consume the whole of our present volume of product. New Zealand was always the best customer to the farmers by 2 to 1. QUESTIONS.

Mr T. Steel asked why New Zealand had not .been able tc get an equal share with Australia in the trade with Japan? Mr Richards replied that it was partly our own fault, for Australia had seized the opportunity for reciprocal trade. He hoped the Dominion would not nvs'i other opportunities.

On the motion of Mr Steel a hearty vote of thanks was accorded the speaker and he complimented him upon giving the electors something to think seriously about.