MONETARY REFORM

Waikato Times, Volume 106, Issue 22612, 17 May 1945, Page 6

MONETARY REFORM

AVOIDING DEPRESSIONS

MR J. A. LEE’S CONTENTION “The slump in the wake of the last war will be only a fraction compared with the slump that will follow this one,” said Mr J. A. Lee, Leader of the Democratic Labour Party, at a meeting at Knox Church Hall, Hamilton East, last night. “Unless a radical change is brought about such a depression is inevitable,” he added. Discussing the need for monetary reform, Mr Lee said that under the present debt system there was a distinct danger of an era of falling prices after the war. Wars had always been followed by slumps, he said, and if radical changes were not made large-scale unemployment was certain and poverty amidst plenty was just around the corner. Mr \jee said that the National Party would stop the issue of Reserve Bank credit and then away would go purchasing power and up would go interest rates. Such a condition would make rehabilitation impossible and would compel soldiers to pay for the war in which they fought. Money should be made available at the lowest possible rate, not more than, say, 1 1-4 per cent, said Mr Lee. Money at that rate, he declared, would greatly facilitate the construction of houses so urgently needed, the establishment of |ftarmers’ cooperatives and the development of industries. And why, asked Mr Lee, should not cheap money be made available to church and cultural bodies for the construction of halls or social centres where the people would employ the increased leisure which was their due? Mr Lee said he hoped New Zealand would lisassociate itself from the Bretton Woods Agreement under which, he declared, the country would be tied to the gold standard and the Dominion’s g()ods would be sold on the world markets at a loss. The guaranteed price, under present circumstances, was merely aiding the world-wide plunder of New Zealand farmers. Party’s Financial Policy The policy of the Democratic Labour Party on the question of finance was specific, said Mr Lee. It aimed at preventing another mefnstrous slump in the wake of the second world war. To talk of rehabilitation and to be in favour of the orthodox finance system which caused such chaos was to talk in contradictory terms. “I think the whole stabilisation policy is wrongly conceived, and is costing New Zealand tens of millions of credits,” said Mr Lee. “It is costing an area like the Waikato and a business community such as Hamilton a vast amount of money,” he added. “The mother is one that the 40-hour-week forgot,” said Mr Lee. “You cannot put the children away out of sight at the week-end when the father is home after his 40-hour week.” Mr Lee advocated the introduction of a motherhood endowment of £1 a week. It should be free, however, of any qualifying condition which made it dependent on the husband’s earnings. Mr Lee said that Mr Nash had promised in 1922 to abolish the Legislative Council, yet its numbers had grown. He had promised State ownership of all branches of insurances, yet last year premiums collected were vastly in excess of compensation paid. He promised free medical attention, yet medical attention was free only after the patient has paid an extra half crown a visit to a doctor. Mr Lee pointed out that if Labour lost this by-election Labour would still be the Government of the country, whereas if the National Party candidate won the National Party would still be the Opposition. Therefore it followed that the splitvote issue was really of no consequence. Mrs Lee’s Support In a brief address in support of her husband, Mrs Lee said that if there were any who wished to place blame for Mr Lee’s presence in the electorate they must blame her, as she had persuaded him to contest the Hamilton seat. Believing in his ideas and ideals as she did, she was convinced that he was needed in the Parliament of New Zealand. Mr Lee and the speaker had always worked for the good of the country and they would continue to do so. They had left the Labour Party, Mrs Lee said, because it was no longer true to its pledges. The Labour Government had done many good things, however, but it had done much in a muddle-headed manner. That applied particularly to the medical benefits and social security. Mrs Lee emphasised the need for motherhood endowment and stressed the point that the money so provided should belong by right to the mother and should have no restrictive qualifications attached. Mr G. Anderson presided. The hall was filled to capacity and a resolution expressing thanks and confidence in the candidate was carried by acclamation. A woman in the audience then demanded a show of hands. The motion was put again and carried, with fewer than a dozen hands to support a negative vote.