FORESAW LAND BOOM.

Waikato Times, Volume 97, Issue 15274, 26 June 1923, Page 2

FORESAW LAND BOOM.

WHY SIR J. <3. WARD WITHDREW. DECLINED THE RESPONSIBILITY. In an Interview with a representative -or the New Zealand Times, Sir J. : G. Ward referred to the acquisition of land for soldier settlement, and his •withdrawal from the National Government, in the following terms:- — “Mr Massey quotes from Sir James Allen’s budget of 1919 in a most disingenious way to show he had to pro- - vide for ‘new’ requirements totalling , £30,325,000, and he asks ‘how can Sir Joseph Ward take credit for fully pro-' viding for all war liabilities incurred in New Zealand?’ In doing this he suggests most unfairly that I am to be held responsible for the policy for new requirements of a Government of '•which lam not a member. It has no hearing whatever on my statement that I had provided for the war liabilities before I left the National Government, because I had. ‘‘l was strongly opposed to the important new proposals in Sir James Allen’s budget involving an expenditure of millions. In proof of this I quote from my speech in the House of Representatives on September 30, 1919: ‘I appeal to the hon. gentleman not to try to drive two years’ land : settlement into one, and by that means ; cause the value of land to go up in ' this country to an amount that is going to prove disastrous to soldiers and to civilians who go upon the land. Such ■ a policy is not to the*>future welfare : of the country.’ I have nover at any time said or suggested thqre would not arise further liabilities in Ne\g Zealand after I left the National Cabinet, because of course there would until the ilnal payment was made. The , total amount of war loans raised under ' the loan authorities, except Sir James : Allen’s loan obtained from the British Government, were obtained by me. The : total amount of war loans raised was £81,530,857, of which £51,733,405 was raised in New Zealand, and the balance, £29,797,452, in England. In •Sir James Allen's budget two items of new proposals alone amounted to . £14,500,000 for soldiers’ settlement : and land. ■ can Mr Massey or anyone else say that is a liability left ,by me? On the face of it, it would be an absurdity to suggest it. Would Oreate a Land Boom. “In addition to which, while I was . In favour of doing all possible to settle soldiers on the land, I was positive the policy followed .would establish a land boom, - with all the dreadful consequences of inflated land values, and I told the House so, as the above stateiments made by me at the time conclusively proves. A large operator in land within a year to spend such an enormous sum as £14,500,000 would send values up to prices that made ?heir profitable working to settlers impossible, and were certain, as I publicly predicted, ‘to prove disastrous to soldiers and to civilians who go upon the land.’ Gould it have been avoided In my opinion it could. It was a positive calamity to take the accumulated surpluses for land buying. “In my speech in the House on September 30 I urged the Government ■ not to do so, but without avail, and quote from Hansard of that date: . “ ‘Here let me say that the surplus the hon. gentleman proposes to take .".-of £15,000,000 sterling will bring this , country each year at least £750,000 sterling; and if fortuitous circum- : stances had enabled me with the gen- ' tleman with whom I was associated in the National Cabinet to have got—and I would have passed it—another £5-,000,000, £20,000,000 would have brought in £1,000,000 a year or so. . . I propose that the total amount of interest from the sinking fund should be ;used for advances' to soldiers, to settlors, to workers, and to local public bodies. Every penny piece of it. Let : itr be earmarked for that purpose and , that purpose only. If I had my way ' I would have earmarked tliat money as I did the ordinary sinking fund so that no Government could touch it.’ “Could my proposal to keep £20,000,000 of surplus have been accom- - pfished? Unquestionably it could. Purchase of Land with Government Stock. -•“My Intention was to purchase all lands required for soldiers by Government stock bearing to 5 per cent interest —taxpaying stock—and all the land required could have been acquired, and it would have prevented a land boom. We could not have borrowed loans on the open market in England at that period, as the British Treasury during the war reserved the market for their own requirements, but I ascertained' in London that we could have got advances against our £20,000,000 surplus if we-required it until such time as the bar against- borrowing was removed, and it was known that bar would soon be removed, and it is a fact that it was soon after lifted. That we could have invested from surpluses £20,000,000 is, of course, beyond all question, as at March 31, 1921, the accumulated surplus according to the financial statement was £23,071,209. A Prediction. “However, the policy of purchasing land for cash had actually started on a large scale before I returned to New Zealand on the last occasion, and as I believed it would result disastrously I called the Liberal Ministers together and told them that, in my opinion, it would result in a land boom and financial difficulties, and that I would not accept the. responsibility for it, and that. the only course was for me to resign. Every one of my Liberal col- . leagues knows that this was so, and, whether I was right or wrong, I acted upon my judgment at the time, and I took the course indicated. 1 cannot be accused by anyone of saying now, ‘I told you so,’ after the policy to which I was opposed had been tried for nearly four years. “I acted quite loyally to all my colleagues throughout the whole time I was in the National Government, and none of them can say to the contrary. Every one of the Ministers —Reform and Liberal alike —did their utmost to carry on the Government during a time of trial and difficulty, and on the whole they succeeded uncommonly well. To 1 be told now that I am In any way responsible for anything' that accrued after I resigned from the Government, and to have a doubt’cast on my having put the whole-of our indebtedness to the British Government into war loans, Is, to say the least, unexpected and ungenerous.”