FINANCING WAR

Wanganui Chronicle, Volume 83, Issue 254, 27 October 1939, Page 3

FINANCING WAR

“PAY AS WE GO” CREATION OF DEBT OPPOSED A STATE TRADING BANK ADVOCACY OF MR. J. A. LEE AUCKLAND. Oct. 25. Support for the carrying on oi New Zealand’s pari, in Inc war without lhe creation oi a war debt, and strong adl vocacy oi’ the establishment of a trading bank, were th' outstanding points in an address given by Mr. .j. A. Lee, M.F. for Grey Lynn, at lhe Giey Lynn Library nail last nigh., when he aealt witn the work oi I i recent session of Parliament, The two most important tasks ahead oi the nation, taid Mr. Lee, were the defeat of Hitler an I Fascism, and the destruction of the conditions wh.c.. made for Fascism. It was usel i tinkering with the symptoms, whil> leaving the cau.es. rhe speake: expressed his views on the need for a new and different monetary system, and said that he stood lor the prosecution of the war without the country piling up a debt. In the last war, while the men marched and fought gteat war debts were built up, and when lhe men icturned they found that, they had thrust on their shoulders the task of paying lor that war. He felt that in this war the country must pay as it went. Just how thi;> was to be done could be deiermined as thc v v went along. Recent Loan Terms Mr. Lee devoted some time Io an a’.tack on the piesent banking sy.-J.em, on the lines oi several of his speeches in the House of Representatives during lhe recent session, and said that the debt system of finance i\(juirod more and more an annual tribute on the Dominion’s resources, not lor the improvement of the country, but to meet debt services, which absorbed £21.000,000 annually. This simply could not go on. He would not say that New Zealand should repudiate, but they should end this insanity and sta’ t off on a new system. He was sure that the country would meet its commitments, but it would be physically impossible to repay at the same rate as arranged for lhe recent London loan. While tiie Labour Party had a creditable record, Mr. Lee said he would not be satisfied until they had a Stale trading bank, lie expressed the belief that if they did not own and control a trading bank before the Labour Party 1 faced the electors again they would be [guilty of a gross betrayal of their pledges to the people. The bankers would do as good a job as civil svi - vants as they wore doing to-day, for he believed that the Stare could use these people. Credit anil Industries While defending exchange control and import regulation. Mr. Lee expressed the opinion that a lot. of the orders now going forward would be delayed by tne war and it was possible that, even if New Zealand had overseas funds it would not get the goods required owing to Great Britain’s inability to provide them. 'This made it necessary to develop local industries and he believed that b,.' (he intelligent use of credit resources New Zealand could built up industries and use men and materials not now lully employed. So long as the people ol New Zealand could produce goods and services, and they could produce them, there would be no need \n anyone t<» starve because overseas prices tell. Reserting to the cost of prosecuting Now Zealand’s part in the war. which, he said, unless there was a sudden collapse, might last for six or seven years. Mr. Lee said it was obvious that, if men wore sent away or New Zealand maintained an air force overseas, we could not send the essentials of their military equipment and would have to find the funds elsewhere. He did not object to that, but he did object to the raising of a debt in lhe Dominion to meet lhe cost of war activity.