REFORM IDEALS.

Dominion, Volume 6, Issue 1779, 18 June 1913, Page 7

REFORM IDEALS.

MINISTERS' SPEECHES. 1 PREMIER & HON. J. ALLEW AT DUNEDIN, CORDIAL RECEPTION. PASr WORK & FUTURE AIMS (By Telegraph.—Prcso Association.) Dunedin, June 17. Tho Prime Minister (Hon. W. F. Massey) and the Minister for Defenca and (Education (Hon. Jas. Allen) arrived in Dunedin by tho first express from Christehurch to-day, and wero tendered a civic welcomo in the Town Hall. In the evening Mr. Massey and Mr.' Allen delivered addresses at a, crowded public meeting, held under the auspices of the Otago Branch of tho Now Zealand Political Reform League. Among thoso on tho platform and in tho audience were practically all tho Olago members of Parliament. Tho Mayor (Mr. \\K Dowui?' Stewart) presided, HON. W. F. MASSEY. THINGS DONE & THINGS TO COMfc Tho Hon. Mr. Massey,. who ,was rcaeived with prolonged applause, expressed his pleasuro'at meeting so many DUnedin'ond; Otago peoplo, and thanked'them for their hearty welcomo. Uo would liko to havo extended his stay, but Parliament was opening in a few days, and there seemed to bo moro work awaiting them than usmil, this being largely owing to tho death of Sir Arthur Guinness, tho late respected Speaker of the House, whose death was regretted keenly by nearly every member and officer of Parliament, and thousands all over tho country. Part of his business that night was to assist them in doing honour to their fellow citizen, and colleague for 20 years (Mr. Allen). After referring to Mr. Allen's mission to England, the Prime Minister said that when tho Government came into office in the middle of July last, they found tho finances of tho country in a much moro unsatisfactory condition that they expected, and it became necessary fjr Mr. Allen, as Minister for Finance, to visit Londontho money market of tho world. Ho went thero to raiso loans for public works, purchase of lands for settlement, advances to settlers and workers, and. other various purposes. Ho arrived in England at a particularly unsatisfactory timo for carrying out his mission, but, in spite of adverse conditions, ho had been success, ful. , Ho had been able to placo a three inillioli loan in London' at a lower rate than a New Zealand Government had been able to place loans for several years past. (Applause.) That fact spoko volumes for his financial ability, and for tho estimation in which tho credit of the coungy was held in London. If they had m been succossful in getting that loan raislfi before March 31, it would have seriously interfered with the progress of tho country. They would have had to dismiss twothirds or three-fourths of tho co-opera-tive workmen, and 60 seriously hinder tho country's progress. • 'l'hen thero was another reason for Sir. Allen's mission. ' Tho Government, before they came into office, had been financing on a system of 6hort-dated debentures, thoso having n term of two or threo years, or up to five, six, and seveii years. Tlrav would understand the position when lie told, them that, between now and' the end of tho next financial year (in addition to qrdinary requirements) they would have to raiso no tower than nine millions in London for tho purposo of paying off the short-dated debentures. Unless something unforeseen occurred. ho believed that, as a result of Mr. Allen's mission, they would.be successful in meeting those short-dated debentures. Tho loan which ho had raised, howuvcr, had not been raised by short-dated debentures and would not fall duo for n period of 39 years to come, when tho country would bo better able to meet its liability.

"Country All Right." When ho had entered Parliament thor« was only one purpose for winch money was borrowed, and that was .public works, and they could understand tho difference when they Tealised tho multip.icity ,of directions in which .their loans went todoy. Even in* that period of stringency the Government had not out down its expenditure on public works. Xhero had been a time of stringency, but the revenue of the country had not suffered, because tho country was prosperous and the revenue remainod buoyant. The result was that, ot the end of the last financial year, thev wcro able to show a surplus of over ,£700,000. That money could not be used till they got authority from Parliament, and the authority would bo given m a very few days. Another proof that the tountry was all right was that during tuo last month the deposits .in the I'ost Offico Savings Bank had exceeded withdrawals by no less than .£IOO,OOO. (Applause.) Ho. felt that they could look forward to the remainder of tho financial year witn a very light heart. Tho public accounts showed that the increuse in revenue foi the vear was .£G!)8,000, and the increase id, expenditure mi,ooo. Tlu> Prime' Minis* ter emphasised tho point that this in-' crease of revenue was more than tho w-r crease in expenditure by .£123.000. , Land Measures.

When tho Government passed the Land ' Tax Bill last year it was said that the. • Bill was "a. fraud," and so on, but flip accounts showed them that tho increase in tho land tax was no less than J!81,D00. That Act was intended primarily to increase tho subdivision of estates. During tho past financial year the Government had expended on public works more than during the previous year, white tho increase iu expenditure on railways for tho year had been X 22.027, and on-pub-lic buildings .£95,488." He would how been better pleased, liowcver, if they had expended part of that in developing works, .- but three huge public buildings m pro-' gross had lmd to bo finished. They had spent ,£50,000 less on roads than in the -: previous ypar, but at tho end of the year they had been short of money, and had been uuable to give authority to local bodies-until after April 1, but they gavo them money all the same, lhcn they had spent practically ..£IO,OOO more than during- tho previous year >in telegraph exteti- - siou, . 'w ' Government Not Been Idle. ~ Ho had been reading—not in a Dunedia paper—about tho inactivity of the Government, but ho would leave it to them to say whether the Government had been inactivo or not. Ho would remind them that tlio Government took ofiico after the . session had commenced, but they did not ask for two .or throo months; grace. No, in three weeks or so they came back- to Parliament with the; niost':comprcheiisivo I'manoial 'Statement which tho country .' had over seen, aiid with Bills ready to go on with. It had been a useful session,., and ho bolieved that tli'o ooming session would bo just as useful to tho country as that session. , So far as last sossion was concerned, probably tlio most important' pioco "of work was tho Land Bill, which altered tho policy of tho country from . leasehold to freehold. Tlio Government lmd hold tho scalos fairly between the settlers and - tlio State. Then they had pnssod a Valuation Act, tho importance of which his 1 friends from tho country, would reoogniso.,. Thon thero was a Graduated, Loud Tax which was designed to encourage sub. - division; Their "friends" -had J old them that it had not been successful. Well, lio . would quote from the Treasury figures, to show them how successful .it rwillv -.had' been. During tho last-twelve months a total of BG4 original holdings lmd been subdivided, in addition to tho settloiiionf:' of ordinary Crown lands nnd . Native lands. Those holdings had been subdivided into 2286 farms of an ave.raw area of 230 acres, oacli. (Applause.) In other words, 228(1 settlers had acquired holdings of an average area of 230 acres. . That was something to bo proud, of, but thev woro not yet finished.-

110 would deal next with-pnblio.fiP.i'viMi reform. Probably most of thorn k»pw Hint ouo of tlio most important factors in tho public servico was political influence. They had pledged themselves to do away with that, and ho was pleased to say that, in most of the Depart,uionts of tha Stato political influence was now ft

thing of the past. (Applause) He hoped and believed that they .would ultimately get-rid of. it altogether. The now Act was working smoothly ami well, and tho service was in tho hands of threo cpnipetonfc commissioners,' wlioso sympathies wero with the public servants. Referring to humanitarian legislation, tho Prime Minister instanced the Military Pensions Act, tho amendment of the Widows' Pensions Act to provide lor childTon of deceased widows, and stated that tho Government hoped to lower tho pension ago for women to 60 years. Land Purchaso. Mr. Massey quoted figures in connection with the Advances to Settlers and Advances to Workers Departments. In land settlement the Government intended to plaoe on tho market during.' the threo mouths ending Juno 30, 111,818 acres of Crown lands, divided into 351 holdings. Their policy was to increaso the number of producers, and find land for every man who'wished to go on it. In addition, as Minister' for Lands, he had through tho •Land Purchase Board bought since March 31, in different' parts of New Zealand, no fewer than 125,000 acres which would, be availablo for settlement before the end of tho financial year. In industrial matters they were free from trouble from one end of the colony to another. The Government was also going to provide ponni--less prisoners with Crown defenders at tho discretion of the Minister for Justice. They had placed ,£IO,OOO aside as insurance on public buildings, and would continue to place a further .£IO,OOO for that purpose each year. He refuted criticism that the Government did not consider the small farmer-by instancing : the relief that had been recently, given to farmers-who had suffered by fires in the north, and floods in the soutli. During tho. last financial vear those arriving in . the,, colony had exceeded those departing by . nearly 12,000 people. .'. . - HON.; JAMES.ALLEN. HIS STEWARDSHIP AT HOME. Tlie .Hon. Mr. Allen, who was cordially greeted, thanked the people for their welcome, and said that ho wished to mako ■ puiblio acknowledgment of tho confidence which had been reposed in' hiih by the Prime Minister- and his-colleagues. Referring to tho troubles of the Government, he thought that those -who had "brought the country into' the...position in which they found it should have borne the heat olid Jjurden of the last twelve months. They had entered. upon ,a policy of providing local authorities with borrowed money, and the present Government found on their shoulders liabilities to an ex- ■ tent of .£770,000, and there had not been i ,£20,000 available:to.meet them.Ho asked , was that-a fair'thing? Those 'Who came • after tho present Goveininent. would never, find 6Uqh a position.is.that which .now. obtained. Tho present Government was living a cleaner life, financially and poll-, tically, than tlie Government that had preceded it. It was not keen to havo patronage or to attract support either by spending money or conferring billets. They , liad denied themselves the right of finding billets for their political supporters. .When they camo into office there was a so-called surplus in, .the Consolidated Fund. That was all very well, but they found, at the conclusion of tho year ending March 31, 1912, that tho liabilities had increased over those of-previous years by something'' like .£€o,ooo or .£70,000. The liabilities at,tho end of the last financial year were four or five thousand less than at the end of the year 1912... In tho Consolidated Fund they were entitled to claim that for their surplus ynd also the ,£IO,OOO set aside for tho insurance of pub-, lie buildings, but they did riot do so be? cause they were • • living; n clean-financial life;i^They'found'..themselves.- faced with the responsibility of providing money for public' works, for loans for. settlers and workers, lands for settlement, and local authorities. The previous Government had tried to get money for' those purposes in a speculative manner, but those sowrces failed,-and they wore go to the London market, for. it. He,had been'sent' there, and on arrival ho found that' the finnrioial conditions were; not as favourable as they had been during the last ten or fifteen years. No Government had been''able,-during'tho' last 'twelve months, to borrow at'less than 4 per cent, with a large discount. There was no way to get that money except through the medium of -underwriters, and they had to pay tho underwriters one per cent., and a quarter per cent, to the broker broker for getting the underwriting,-i pei cent, to the Bank of England, 12s. 6d. per cent, fof stamp dnty, and advertising expenses. Tho now loan for public wows was'not a short-dated' one, and that gave a clean-cut-distinction between .tho policies of tho present Government and of the past Government. The loan which they, had raised in/London -was one which-they misht/pay off in thirty years' time,.or at. any timo between thirty, and fifty years hence. .... ■- Loans Falling Due and Advantage of a Clean Reputation. He had also been sent to try and do something with respect to two largo loans coming duo next year. Those short-dated loans did ujot get into tho hands of invostors, but remained in the hands of big financial institutions and speculators. In < the case of his loan, within two months over half of it was in the hands of legitimate investors. Tlid rosult was that there liad begun to bo a demand for Now Zealand stocks in London which could not bo said of the stocks of any other country, nnd they had been enabled to Taise nn additional without any undorwritinj fee or anything to the Bank of England—only i per cent, for brokerage and tho necessary staimp duty. He had been able to como back and say that New Zealand seourities were looked upon in England as the very best .of securities. If they wanted their public works carried on, and money borrowed for other purposes, they, must livo in .the high estimation of the London financiers. They could pnly do that by keeping their politics and Jhcir finances clean. If his advice were followed, they would bo able to lace the two loans coming duo next year without any fear, but neither of them were m the hands if legitimate investors, .and they would have their money w-hen , it. came due. That had added to tho troubles Df the Government. He asked his ljsarera seriously to consider what it was for a young country liko New Zealand to go to London and ask, in ono year, for nine millions of money for renewals, and also for all fresh' requirements for that year.

Ddfonce .Matters in Hand.; His colleagues had entrusted tun also with the vei-V ' responsible work, ol interviewing the "Home authorities an tho great question of defence. Tho way to gam peace to-<lay was ,to bo ready to protect ; themselves'if anybody wished to attack '• them. New Zealand was a little coun- ' try with a small population, and could not protect'itself alone, so they had always held fast to tho traditions of loyalty to tho Motherland: .(Applause.) Ho lad returned homo- via Canada,! and- had found ; the Canadians almost.as loyal to the Empire as they, were in New Zealand. Ho had spoken there many times, and had told his hearers that New Zealand wanted to stand by Canada in times of danger to either country, and that sentiment found its echo in the breast of, every man in Canada. Ho was accused of having offered 8000 men. (Laughter.) ■Beforo he went Homo lie Cal>. inet to allow him to discuss thatimattei ■ with the Imperial authorities. Iho question Of how far New;. Zealand .would,.be; ■able to help tho Mother. Country in timo; of danger had been considered for four years past, so it was not a new one. tie had concluded a memo, which ho had Bent to Cabinet, by stating that no man .could go from New Zealand unless ho I volunteered. That was in black, and 'white before ho went away, and ho challenged anybody to say that lie had (in England or anywhere else) deviated one iota from what he-had written to Cabinet Ho had come back with some pro.posals on that question, and,.,when decision was como to, Cabinet would make> it, •known to the people. - It would be tho business of the General Officer Commanding to prepare equipment and have everything ready, so that, were the mm Jo volunteer in timo of danger, they could go and join, and fit in with their brothers in Australia or at Home. H« had also submitted to Cabinot propoaaJs- about New Zealand fi sharo in naval defence, and that was considered by Cabinet. In conclusion, Mr. Allen referred briefly to one or two mattors.in connection > with his position as Minister for Education. The mooting, closed with a to to of thanks. " Mr. Massey.and Sir. Allen, together with the Otago members of tho Houso of Representatives, and members of tho Legislative Council, wore subsequently entertained at a complimentary social. : i .■ ■*■'■