Constant Interference With The Individual

Chronicle (Levin), 15 December 1948, Page 3

Constant Interference With The Individual

WELLINGTON, Dec. 14. "We have reached the stage where a large percentage of the community is striving to do as little as possible while stripping as much as it can from those syho do -put forward . some productive effort, ' ' said Mr. A. Hamilton, retiring chairman, in his address to the annual meeting of the- 'Wellington Stock Exchange today, He said that the invest- ' ment market had been seriously affected in tecent months by various restrictions iniposed by the Government in its endeavour to draw money from normal investments in an attempt to control inflati'on.. . - Many companies, he added, instead of raisiiig temporary loans through thei-r bankers had been Compelled to go to their shareholders to raise new eapital. The next step had been to stipulate a premium on the "new issue, foreing shareholders taking up shares to pay a greater priee for them, At the same time bankers had been instructed not to make advances t,Q their customers to take up these shares, the result being that many investors, who would normally finance the acceptance of new shares by loan against other seeurity, find themselves unable to take the shares offered them. The right to buy many new issues was consequently sacrificed'at low prices. "It is questionahle if such interference has any real value in the long run," said Mr. Hamilton. "If we are to have sqund efficient industries in this country we should encourage investors to find the necessary eapital. Everything cannot he run hy the Government of a country and we have. few illustrations of success in this direction. Today, with constant interference vin the affairs of the individual, a condition of frustration has arisen. Those^wiio are endeavouring to funetion in a "normal way are beset by an' arniy of inspectors and oiiicials, who put no eftort into production them--selves, but seem to glQvv in raising as many obstacles as. possible in the path of the actual producer. ' ' Britain rose to her strong position,. and New Zealand was developed, by enterprise and liard work and not by numerous Government departments, he said. Mr. Hamilton said that one of the worst features bf the present fallacies was their harmful effect on young people who were being led to believe that the stream of luxuries and high wages would be kept permanently flowing by a beenficient Government. There was even a suggestion that they be -given earlier control in the aation's affairs. No doubt those advocating the right to vote being advanced to the age -bf J'S would have their own jood reasons for doing so, but it would

be a strange state of affairs if a minor who could not be bound by eontract until he reached the age of 21 should rank equal in such a serious matter as the eontrol of the management of a nation. "When the myths of these modern theories burst through their failure to stand the test, the pity is that it will be these same young people who will wonder in amazement, exactly what has struck them," Mr. Hamilton said. While it might seem liopeless in this country to expect any reasonabl'e relief from taxation, a deeiier consideration of the problem was long overdue. Mr. Nash recently spoke of the soundness of investment in Government loans, including the present tap loan. Yet no encouragement had been "given the oxdinary investor to deposit his savings in such a loan. The low rate of interest could be overloolted, but the heavy penaj rate of ineome tax heaped on- a person who respouJMMlitthe Gov-

! ernnjent 's pleas could^^BHBVith one , hand the Government pPHnHpi'^st but the recipient was met round nie' ijorner with a demand for excessive taxation because of his thrift. Some realisation by those in authority of the. iniquity of this penal tax on income from in1vestments was evideneed in the recent graded exemption on taxable incomes up to £400. But the mere fact that such an exemption was kept to low incomes left the feeling that the penalty was retained to hit one particular class. "For too long we have had class legislation, and for the community to function happily such an approach to Government and legislation should be terminated," said Mr. Hamilton.