A DESPERATE POLICY.

Waikato Times, Volume 110, Issue 18496, 27 November 1931, Page 6

A DESPERATE POLICY.

Hon. W. Downie Stewart, Minister of Finance, at Dunedin this week dealt somewhat trenchantly with the proposals put forward by i Mr H. E. Holland, Leader, of the Labour Party. Mr Stewart IS recognised as one who is peculiarly gifted as regards .finance. He may not be a wizard; he doesriot claim to be able to produce millions from nowhere and he has the oldfashioned idea that if money is borrowed it has' to be repaid. He recognises the position in which. we have been placed by the lavish borrowing of past years and has sufficient sagacity to see that if we borrow mo're money our burden will be proportionately greater, and that the load under which we are now staggering, if added to will break , our backs. The Leader of the Labour Parly suggests raising an internal loain of £25,000,000 for the rehabilitation of industry. To raise such a loan Would probably prove a difficult proposition unless, of course, recourse were made to compulsion—a method . which would do much tb still further undermine confidence and have a detrimental Influence on private enterprise. When the late Sir J. G. Ward submitted his £70,000,000 loan scheme Mr Holland was disposed to treat It with levity; he has himself now submitted proposals whiOh are even more fantastic and dangerous. Mr Downie SteWarl without hesitancy, and speaking with careful consideration, declares that If the Labour Party’s policy was given effect it would mean “National default, repudiation and insolvency.'’ Elaborating this conclusion he pointed out that if expenditure is Increased on a decreasing revenue a financial crash. Inevitable, and from such a crash the section of the community Mr Holland claims specially to represent would be the greatest sufferers. It Is folly to refuse to face facts. We have to recognise that our national income has dwindled, and‘Ut is necessary to reduce our expenditure to Income limits. The same principle holds good In national finance as in household budgets. If the Income js exceeded, bankruptcy looms. A loan on itiie household chattels ma ir slave off the consummation, but If the family Income, remains at the same figure the position Is worse by reason of the payment of Interest on the household loan. The Finance Minister described Mr Holland’s proposals, as "gambling with the life and destiny of the nation In a desperate throw for political power.” He did riot Overstate the caSe.