VESTED INTERESTS

Press, Volume LXXIV, Issue 22513, 22 September 1938, Page 7

VESTED INTERESTS

TO TBS IBITOB 0» TBS P»BS». Sir.—l wish to thank “R.R.M.” for his excellent letter'on “Vested Interests.’ It is a plain, candid, commonsense statement of a case that I believe is typical of rftany thousands of cases, where a family in humble circumstances, by good management and-con-siderable self-denial, has endeavoured to provide for sickness and old age, and also preserve their independence and self-respect. For this modest, unvarnished bit of family history, m which most sensible men would'see many things to appreciate and commend, the writer is taken to task bj “Always Labour” as though he had stated something outrageous. It is Always Labour” who says the outrageous things. There is nothing in “R.R.M. s 1 letter finding fault with the. man whose responsibilities make saving impossible, though "Always Labour says it is there. Another silly statement is “that interest is unearned increment. I thought it was money paid for the use of money. It often takes a lot of effort to gather it and manage it, I should say that effort was the earning of it. How then can it be unearned increment? If a man lets out a taxi he gets hire;- if he has a family living in his house he is supposed to get rent; if he lends to a man in business, or to one who wishes to build what terrible evil has the lender done that he should be banned as a . social pest? What "R.R.M.” has he hat paid for by hard work and self “denial but there comes along the tax-gatherer attended by ’an expectant crowd like “Always-Labour,” and they, hold geons over :“R.RM.” and say, “Give us of your means, for in the land of swinr and huiki we have spent our all. - If the thrifty, hard-working man complains that it is scarcely a fair deal he is told that that is the blatant battte-^ry 1 - 1 of the idle rich.. “Always Labour” shows what a very sensible man he is when he declares “All who lend money on interest should be banished.” Then the Pubhc Trustee . would have to be banished: the State Life and Fire Departments would have to go; all the commercial banks would have to get out; the Reserve Bank must quit: and the Mortgage Corporation would have to follow. Where would the' Government get the £14.000,000 from that it wants. But, shall we say, best of all, the-Goyern-,ment would be .banished and,have to find another Dominion. New Zealand would find itself sitting in ruins. What the results would be sane men may picture, ’ but fools would -rush on to the crash. If another- slump through war or other cause should strike New Zealand soon, witp the high Government commitments, the country would find itself , in the hottest hole it has ever been in.—Yours, etc., - OUF September 20. -1938.

TO TITS BDITOB OF THE PRESS. Sir,—l am rather interested in the above controversy, and as “Always Labour” seems quite prepared to continue the controversy, either privately or in the press, perhaps he can answer the following questions. If vested [interests are necessarily pernicious, why have both Mr Savage and Mr Sullivanirepeatedly stated that they would welcome capital from abroad, i.e.; usually England, to assist in the development of our secondary industries? V . , . , The same argument applies to internal capital seeking investment, and yet Mr Sullivan appears quite jubilant if he i can announce the application for permits to start hew businesses or industries. Rather should he not resolutely refuse to grant a single fresh 'licence which would be used 'to exploit labour for the benefit of vested “Always Labour” strongly condemns the payment of any form of interest. I~ suggest that suppose “Always Labour” possessed some valuable machinery, or perhaps-a house, and someone asked for the use of it for a considerable period, he would not see anything wrong in charging a-reasonable rate for its use. If he Jent money instead, the money could be easily converted into valuable machinery or a house, so where is the immorality of a reasonable interest rate? _ , In conclusion, I suggest that the only alternative to vested interests and interest is that all property be wholly and -entirely vested in the State. If that is so, why not admit it and fight the election on that issue?— Yours, etc.. , T.V.W., September 18, 1938. [Subject to the right of reply of "Nothing for Nothing.” this correspondence is now closed. —Ed., ; “The Press.”]