END OF THE COALITION

Dominion, Volume 12, Issue 280, 22 August 1919, Page 8

END OF THE COALITION

I SIR JOSEPH WARD RESIGNS j : 818 ELECTION MANIFESTO i A PLUNGE FOR POPULARITY | ;y. . SCATTERING MILLIONS, ! '• \ " . > [ STATE BANK & NATIONALISATION PROPOSALS . ; STILL MORE BORROWING AHEAD f s POSSIBILITY OF REDUCED TAXATION : MR. MASBEY WILL CARRY .ON

Tho Right Hon. Sir Joseph Ward, leader of tho liberal Party, yesterday tendered to fiis the GovcrnorGencral bis resignation as a member of tlia Bxecutivo Council and as ilinistor of Knance, Postmaster-General, and Minister of ,Tolegraphs in the National Government.

Sir Joseph Ward afterwards made an important statement in reference to the political position and outlined his policy for the future; He had come to tho Conclusion, he said; that now 1 the Peace Treaty was' signed ' and' the object for ./which tho National Government was formed had been achieved, tho truce between tho two principal parties in New ' Zealand was no longer necessary, and he could tfot now remain in a, Government that had been formed for war purposes only. He had, after much thought and with the full concurrence of his Liberal colleagues in the Cabinet, come to the decision that the continuance of an .Administration having naturally .no real cohesion on any fixed principle save the winning of tho war was not in the best interests of the country. In retiring, he had a duty to discharge to tho people of New Zealand in his position as Leader ■of the Liberal Party. "Tho world'is passing through a now ?ra," said Sir Joseph Ward, "and all tho dangers and difficulties besetting the old countries as tho result of a four and a half years' war are more or less in evidence in' New Zealand. I desire, therefore, to let tho pcoplo know my views, and it is for those who-regard tho wellbeing of tho Dominion as paramount to individual interests to give them careful consideration. >

"It is necessary for mo to say at the outset that I was unanimously re-elected by tho "Liberal Party as its leader In and my position has since been three times confirmed by my party. After ] tho general election of 1911 parties were eo close numerically that neither of them ■was strong enough to carry on the Government of the country satisfactorily during a war period. "Tho Liberal Party, from a political point of view, had everything to gain by remaining out of a National Government, but, after full consideration, although there wero differences of opinion' at the time, the party finally agreed unanimous3y.:to. sink .party and help to form a'National Government with an equal number of •Ministers representing each sidu of politics in the Cabinet, and with the leaders of tho two parties retaining thoir positions as leaders in the Cabinet. "Tho groat majority of tho public and tho Press throughout the country were favourable to and strongly supported the 'formation o£ a National Government, and I and my colleagues have, in spite of many difficulties, been loyal to the party truce throughout. I have abstained, both here and abroad, from taking any part in party- ' politics, either by organisation, public speeches, interviews, or otherwise. "Peaco has been signed, and tho arrangement made between the two parties for tho war period must now bo brought to a conclusion, and it is only fair to those to.whom I am responsible that I should relievo them by my resignation from a position that I feel it is, in tho best interests of the country, desirablo to terminate. ~ "In retiring I think I should apprise the people of my viows oh important iquesbems. Tho war ha# changed tho ■whole wq.'ld, and tho statesmen of today must recognise the now age. Wbat was good enough for yesterday will Mt do for to-day or to-morrow. We are in a transition period and good government with strong administration is vital to the country's welfare. New Zealand joust be ruled constitutionally. ■' The irorkor has just rights and undoubted nlaims to consideration, but he must not nullify those by domands which it is impossible to meet, nor must ho forgot Sis duty as a citizen of a frreat country. By recognising constituted authority he oan assist tho Stato, which lias already done muoh for him, to bring about those improved conditions that alone' can keep the country -safe and prosperous. As a citizen he has duties as well 1 as rights, and he must not exaggerate . his rights by ignoring his duties." <'The capitalist, too, must take heed. 'A i great duty devolves upon him. He has a right to reasonable protection, ■but the changes that have been brought sibout by the world upheaval make it imperati'vo in his own interest? ns well as iu tho interests of the worker and the Stato itself that ho should view the altered circumstances from a broad and proper standpoint and make such concessions and sacrifices as tho new era demands. . "Briefly put, neither Capital nor Labour can hope to succeed without a mutual recognition, and it is tho bounden duty of both to take a fair and reasonable view of tho reciprocal needs and responsibilities of each and of the Stato . as the final arbiter.

State Bank. "All the banking institutions have been of great service to tho people throughout tl>o war period, and it should be u source of great gratification to the country as a whole that the cost of money in' New Zealand during thowaT has been chewier than it has been in most other countries, not excluding the Motherland. The strain of war financo lias, howecer, In all parts of tho world shown the importanco of Governments having associated with them their own banking inetltutions. New Zealand, which hw done so w-ell, is no' excoption in this respect, and. tho establishment of a Stale bank in this Dominion would givo additional stability to tho country as a whole and bo a source of strength to tho' 'producers and traders of tho Dominion. In my opinion the time has arrived when, in the best interests of tho country, a fully equipped and completo State bank should bo established. It would have a wondorfully steadying influence with all classes of peoplo m the Dominion agriculturally, industrially and socially, and would also be a 'source of profit to tho country and help us to meat the increased expenditure due to the war. "Tho Bank of Now Zealand is partly State and partly n proprietary bank. I iafl been conducted with good judgment and on sound principles. It has done well for its shareholders, and lias been a scrarco of strength to the Dominion as well as to other similar institutions in • this country, (ind in the <leptviiuro whicli I now propose for the establiement of a State Bank it would be fairly entitled to have an offer made to It to become tho State Sauls; of Not Zealand. Its sharehold-

ers should be treated with fairness, and I would not propose to do anything unjust or unreasonable to them. They, too. should be reasonable. If in their wisdom they elected not to part with their interests in that institution it would then be necessary to look round elsewhere, with a view to providing a State bank for this country.

"Such an institution should be placet! entirely clear of political influence, and this. lam satisfied, could' lie done. It should have a permanent head, with a reasonable number of experienced men as directors to control and administer it. The whole staff should be brought under the Government superannuation scheme, and be paid fairly aiid fully for their services.

"It is not necessary for me to go further at tho moment than to say that I should, in the interests of both the country and tho bank itself, necessarily discuss all details with the authorities, and I urn satisfied that a powerful State institution. which would prove to be to the general good of the country, could be established under proper safeguards without in any way interfering with the commerce or industries of the Dominion. Indeed. I am of the opinion that the general financial stability of the country would' bo greatly strengthened by tho establishment of such an institution on sound lines.

"Note tax should be paid as at present by the proposed State Bank, and by all other banking institutions in tho Dominion. I mention this because with the establishment of a Stato bank it might be inferred that note tax would not be paid by such an institution. All banks should be treated alike in this reswect.

"I am inclined to tho opinion that it would be a useful change, under proper, safe government, to allow banking institutions to have the right to substitute Government s'»ck for gold as security for note issue. This would bo an incentive to them to invest from time to time in Government stock, and, as for many years lo come wo are sure to be using Government stock, there is a good deal to be said in favour of this proposal.

Reduction of Exchange. "New Zealand will always bo a, great producing country, and it is of the first ■imfioi'tance that any difficulties in the way of getting our products to market should be removed. In this category 1 tilaco that of exchange to oversea coun--tries. "During the war period tho rates of exchange have advanced materially. The time ha;> arrived when, in tho interests of the whole community, there should bo a considerable reduction, and I would appeal to the wholo of the financial institutions to help to bring this about. "This is ono of the directions in which a. State bank would prove of considerable value. It should not, of course, bo a part of its policy to carry on any section of business at a loss or without providing a fair profit for the work dono for its clients, but it would have a valuable influence in helping to keep tho rates of exchnngo at a level wheio they would not bo such a heavy tax as at present upon producers and exporters.

Borrowing. "Anything in the shape of a largo borrowing policy by this country outsido New Zealand for Government purposes would, in.my opinion, lie very costly, and for tho next few years a sane policy of borrowing locally will be preferable, and will help to maintain New Zealand in her position of a seltreliant country, i'or that reason I think this policy should be pursued. "There is a great deaJ of money in Uio country, and we are mainly dependent upon tho products of tho soil to bring to the Dominion a large amount in exceas of what we pay for imports. li present prices for our exports continuo as th£-y seem likely to do for the next few years, we should be able to obtain all that is required for Government purposes within our own shores. "I am of the opinion that those lending money to tho country for general purposes should bo paid 51- per cent, interest, and be subject lo the ordinary taxation of tho country. Jfpnc-y that was needed for war purposes, and in extraordinarily large amounts compared with. what wo require annually for general purposes, was in the matter of taxation treated differently hero, as was the ease in niost other countries, but 1 am of the opinion that thore should bo no exemption from taxation on money lent to the country for gcneraJ purposes.

Coal Mines, "Coa! is n most essential commodity in tho daily requirements of tho peoplo and in the transport service oil land and sea, and it would bo suicidal for tho country if recurrences of tho troubles that have arisen from time to time wero allowed. The timo has arrived when tho wlioJe of the coal mines of New Zealand should bo nationalised upon payment to tho owners of fair and Ml terms in Government stock.at Hie rato' of 5J or G per cent., bearing taxation. All mines taken over that ive require to operate should, wliero practicable, be worked under conditions similar to those of the present State ooat mines.

"The administration and control of tho mines should bo placed under a good board of' business men and representative miners with a Minister responsible on their boh aI f to Paiilianwnt. Tho erection of improved dwellings for miners should bo part of the responsibility of tho State, and should be carried out with reasonable expedition.

"With a system of superannuation, proper housing, and sanitation, thero would be no excuse for strikes for tho purpose of adjusting difficulties that might from time to time arise. Under C'lieso improved conditions it. would bo tho duty of tho miners to see that the mines wero worked to their utmost capacity, and to givo a fair and full return for tho advantages they themselves would reap.

"There should bo a further supply of millers sufficient to man and work the com' mines effectively.

"I believe what I am suggesting is the only effective way in which coal can be produced in sufficient quantity and at lower prices for the consumers.

State-owned Colliers. "With tho nationalisation of the coal mines, it would be necessary to have some of the colliors State-owned and worked in conjunction with tho mines to ensure proper and cheaper distribution .of tho coal throughout the Dominion. Taxation. "J.n dealing with taxation it is. I think, fitting that I should say that the country ,\rhioh is abla after tko conolusion

of the great war to keep its taxation down to the lowest limit is tho one that will successfully develop nnd progress and will bo tho country best able to maintain its industries and incrcasa its avenues of employment, and 'hold its-own in the fight for progress. "It is not in the interests of tho country that wo should impose extra taxation unless it is absolutely necessary.

"I have already stated in the House of that there is 110 need to increase taxation. On tho contrary, a considerable reduction in tho taxation brought into existence to meet war expenditure can be made. "When readjustment is brought about in the incidence of taxation in relation to death duties, and ihigher income tax, it should be in the direction of exempting smaller incomes from taxation and small estates from deatli duties, and placing tho amount thus lost the Treasury upon the larger incomes and larger estates as regards death duties. It is prudent, however, to wait for another six months or 60, by w.hich timo tho full annual provision necessary to meet war 'expenditure under all headings -will bo definitely known. Then a recasting of the whole finances should be effected so as to bear equitably on those entitled to pay it. "The (Ration of co-operative associations and other co-operative concerns requires adjustment. Company income tax should be upon individual shareholders income, and companies should be taxed upon the undistributedbalance. "Further exemption in our income-tax system should be made in respect to wives and children of taxpayers. _■

"An adjustment of the tax on incomes from mortgages •is desirable to give relief to borrowers.

Government Ventures. "All Government ventures, including State bank, life insurance, public trust, accident and lire insurance, coal mines and eolWs, should pay tho same taxation as other concerns of a similar nature. This change should, I think, bo permanently effected in connection' with all Government business concerns; first, because a portion of their earnings should undoubtedly come 111 as general revenue of the country, and, secondly, because none of thorn has been established with the intention of driving oilier businesses or institutions out of existence. "Tho Government trailing Department* will always have a most imporcant bearing in keeping fair rates in operation for tho public,, nnd competitive institutions cannot hope to carry on their business successfully unless they do *0 at rates aa low as those of the State Departments. "This matter has given us ii great deal of thought, and I am satisfied that 110 injury to tho Stato Departments will be occasioned by applying to them the system of taxation that applies to similar institutions trading in tliis country.

Reduction of Indebtedness. "Tho indebtedness of Now Zcalaud amounts to JC17a,778j40. This is a large sum of money for a country with ji population of a pillion and a quarter people, and as a matter of common prudence. a itroug policy for tho reduction of indebtedness should be carried out.. 1 have already' provided a sinking fund for all loans'in New Zealand, but tho aggregate sum now is so largo that a strong policy of further reduction in such a manner as ta occasion tho Jtwst vsssiblo disturbance to industry and to the country's credit is necessary. For this reason, I would suggest that the whole of the country's loans should be repaid in 65 yeai's, and that, to cnablo this to be (lone, the whole of tho present accumulated surpluses, amounting to .£15,239,501, should bo paid into a separate (jinking fund.

"Wo huvo fought tho great fight as much for posterity as for and it seems to mo unfair that the present generation, and mainly the adults of it, should throughout their lives bear the wholo burden that repayment of tho war indebtedness involves. The annual amount of interest from the sinking fund should be used for advances to soldiers, settlers, workers, and local public bodies, and tho country wtuld reeeivo the benefit of tho full amount of interest earned annually by the sinking fund if it were used by tho people for their fiuancia). needs.

"It would, to me, bo a sad, even a deplorable thing if any influences at this critical juncture in the country's history were exercised to utilise any portion of the present surplus foi< present-day expenditure. I would, with all the earnestness in my power, strongly urge Die country as a wholo to resist anyone attempting to annex any portion of this money for any purpose excepting that of (he sinking fund Tor extinguishing tho war loans so generously and wholeheartedly given by the people to help us. to do our part in the great war struggle.

Aerial Services. | '"There rail >l>e no question that aerial work is coming into general use in nil important, countries in the world, and .\ T ew Zealand should not lag behind in tins respect. Ido not think we should establish (in aerial branch for (ho sole purposes of defence, but 1 think a s.vstem should lie brought into operation for postal and commercial purposes on it Moderate scale, and (hat men should lie trained for flying 60 that if, unhappily, (his brunch, which during the war became one of the most important for defence purposes, should again bo.required iu that way, we would have a number of men in various parts of the country with training that would enable them io take up defensive duties in the air. I believe that the services established for postal .purposes would be of great value to the people in various parts of 'the country. I do not suggest they should be carried out upon anything but a moderate scale. A trial .for a year or two would enable Parliament and the people of the country to judgeas to-.wheiher their continuance was desirable, .1 am of the opinion we should not tarry in bringing aerial services into operation. A\'e must not overlook the fact that private enterprise both iu Auckland and in Christchurch has established Hying schools, and these should be used, if not absorbed, in connection with any scheme put into operation. «

Education Matters, "The age of many school buildings throughout the country and the necessity for the erection of new ones entail the provision of a large sum for this purpose. I suggest the expenditure of J:;),000.000 upon buildings. All building operations and repairs should be carried out under the direction of the Public Works Department. A system whereby the Government provides the money and another body spends it is not satisfactory, and In the interests of the country, r.nd with a view to economical expenditure, a change in the direction outlined would be advantageous. State education should bo free from primary school lo university, and kindergarten schools should be included in the national system. All inspectors should be appointed by the Government, and tho powers of school committees extended. There should be an increase in the salaries of all school leachors, whether in' primary or secondary schools, together with a Dominion promotion scheme. All school 'books and requisites should be provided free. Vucu. tioiial training should have consideration in tho curriculum of all schools. lam ill favour of oveiiitig continuation schools for technical instruction and training, and of adequate grants to technical'schcols. l'Yeo dentistry and medical servico should be provided for all school children. Servico for this should bo fairly distributed un-iong the medical profession. Free transit should be provided for all pupils under 16 years of age.

holdings, aud they should, on fair payment for their lands, cut theni up and subdivide tlicm. If tho owners of land fit for closer settlement do not subdivide, effective means of compulsion can, 1 know, be found. Aggregation has been going on, and land is wanted for soldiers and civilians. More stringent provision against aggregation is necessary. All transfers and conveyances of hind, whether subject to existing limitation of area or not. sliould be sanctioned by land boards or other rcliablo tribunals: and without such sanction no transfer or conveyance should be valid. "The remaining ordinary Crown lauds must be roaded and opened for settlement at the earliest moment. It is of the greatest necessity that th's country should increase its exports and do everything possible for the cheapening of transit, the elimination of waste, aud so help us to work on successfully in the new ora.

Military Forccs. "Thero should be no attempt to build up a large permanent military force in this country. It is not required. Wo should not. however, shut our eyes to our present and future obligations, and I think there is much to bo said for tho restoration ot' the Cadet system that formerly existed, and for thb continuance of the Territorial system under conditions similar to those prevailing in tho Dominion nrior to tho war.

Expeditionary Forces. "The war is happily over, and, as there is now no need for the continuance of the Expeditionary forces, their complete demobilisation should be carried into effect immediately.

The Land Question. "The land question lies at tho base of tho political ediiice. Our available land is limited in area. Subdivision is necessary. The soldiers must be repatriated. Land which is not producing it? maximum should be subdivided. Large landowners must recognise that this country is destined to ho one of small

Land for Soldiers' Sc.t:c,. "Land for soldiers is a necessity, and it has to be remembered that tho land' purchased remains a permanent ii.sset, and that the interest upon the amount advanced will not in any way bear upon tho taxation of the country. Whatever money is required for this purpose should and must be provided. This does not call for increased 'taxation, as tho sol-dier-settlers provide the interest upon" their loans. To prevent unnecessary do. [ays and to expedite soldiers' settlement, a system of local land boards should be established for this purpose.

Civilian Land Settlement. "While promoting land settlement foi soldiers, it must not be forgotten that there is a considerable section of the civilian population desirous of going upon thb land, and the interests of these neople cannot ba neglected. I wouln suggest that £1,000,000 per annum be provided for civilian land settlement. I would again emphasise the fact that thi» means no additional taxation, as the settler on the land pays the interest upon the money- and is 110 burden upon the finances of the country. Indeed, he increases production f-roui the land and so helps to augment the amount being returned to New Zealand from the sale abroad of its primary products.

State Advances. "It is useless placing a number 'of soldiers oil the laud unless they have the wherewithal to enable them to work their properties, and with that object in new inoreased limits with respect to advances to soldiers—and they wouln also apply to settlers and workersshould be provided with proper provision for advances on chattel ancl leasehold property securities. Native Lands. "There should bo more vigorous pro. motion of European settlement on mioccupied Native lands, while at tho same timo doing what is fair and just to tho Natives. I have already emphasised the need of eliminating material waste. 'In all directions this r.eed should have our earnest attcntioir,■ and in 110 direction more than in that of unused or wastefully used fertile lands, whether Native or European. Experimental Farms. "Further experimental farms' in oach island, with instructors, should be established. Students should be taken into all such farms, and should havo a two or threo years' course in practical as well as theoretical farming. The Dairy Industry. "It will bo necessary to increase largely the number of dairy instructors. This industry is growing so extensively tlwt it should, in the general interests of the country, bo s assisted in ovory possible way. ' "• Removal of Restrictions on Trade.

"There should bo no restriction on trado from New Zealand to any other country in tho world. As far as possible, however, wo should try to conduct our trade within tho Empire and especially with the Motherland, and that is the spirit which has been predominating in this country for many years. It is a spirit that will continue. I. hope, for all time. During tho war this has been a compulsory system to a largo extent, but in peace times all compulsion should cease, and this country, as was the case prior to the war, should trade freely to any part of tho world that offers tho best markets, as the producers are entitled to obtain tho best prices offering. Individuals and companies in New Zealand can bo depended upon to carry on their business legitimately, and if 'tlicy ure freed, and prelected- from trusts and combines, our trade should continue to develop year by year as it has dono in such a wonderful way (luring the last quarter of a ceut'iry. "So far as inward trade is concerned, I am of the opinion that we should impose additional .duties against impaits from countries not mombers of tho League of Nations. 1 do not mean Unit those countries within the League should he placed upon the same terms as countries within the British Empire under the system of preferential Irade, but it is reasonable that countries outside the League of Nations should not bo placed upon tho same basis as those nations which havo shown a desire to prevent wars in the future and who aro working for tho peace .of tho world.

Preferential Trade Within the Empire. "We have long 6ince in this country established a system of Imperial- preierence within the British Umpire lor a.ll parts that reciprocate. This system should, in my opinion, be continued and expanded. Up to the present there has been no definite announcement by Great Britain as to what her fiscal system is to be ill the future. The settlement of that rests, of course, entirely with the people of Great .Britain, and it would he out of place fur me to comment upon it excepting to say tlmt. until wo know definitely what is to bo the trade system of the. Motherland, mutual trade upon a basis that helps the Empire is to a considerable extent limited. .1 am, however, warranted in saying 1 do lfot think this'country will weaken in its support of Imperial preference.

Enemy .Trade. "To prevent, persons of We enemy nationality trading in this couutry by folding shares in a New Zealand company or in a company doing business in New Zealand, 1 would perpetuate the present war regulation and legislate to prevent (hew cither directly or by proxy having any interests or shr.res in any- business or "company operating in New Zealand.

Local Industries. "Tlie fact thats3 per cent, of the population of New Zealand now resides in cities and 'borough* shows the importance of the development of tho secondary industries of the Dominion. A live Dc-parl-m put of Industries should be established, and the necessary funds provided for research regarding labour-employing industries in order to provide employment and keep within tho Dominion money-which is now sent abroad for goods wo are able to manufacture. Our duty is to foster and encourage local industries. I'or example, protection and support should ho given to wool lop manufacturers to enable us to send awjy our wool tops instead of wool in grease. "To enable fishermen who are in places remoto from freezing works to hold their fish for transport to centres, money should be advanced for tho ercction of cool stores. This would enable tho people to have a more plentiful supply of lisli in good condition. For long-distance train journeys coo! trucks should be provided us is done in other countries.

State Control by License of Freezint) Works. "There should be Stale control by license of nil freezing works and prevention of their use by I rusts or combines. Tlio prosperity nt' Now /.hihind is due niaiivy to the export of our primary products, and it is necessary in the interests of producers and the country generally that our freezing works should not lie financially ruined or made unprofitable by the operation here of any powerful organisations with lar;e capital designed to destroy llie value of utir legitimate enterprises. The system ol' licensing; all freezing works should 1.0 permanently continued, thus making it impossible for any combination or trust to iiiterloie with what has been a great local industry for many years.

'•Stats Flour Mills, "During the war the pric" of bread has increased con-iderably. With *t view oi' reducing it, tho Government should purchase oil working flour mills, paying full

and fair value, and, by amalgamations and ocouomy in \vorlcing, got tho cost oi flour to the bilkers down to the lowest )«ssiljfc figure. The prico of bread should then be lixed by tho Board of Trade, a fair percentage of profit 'being allowed to tho bakers with due provision for bad debts, etc. Payment for flour mills should be mado iu Government stock at or IS per cent., subject to taxation. Tho Government now guarantees tho price of wheat to the grower, and to be effective in cheapening the price of bread it should contrul fclie wheat when it arrives at tho mill. There should bo 110 attempt to make a profit out of this most generaGyitsed article of food by all classes of people.

Oil Production and Prices. "To encourage efforts to obtain oil by boring or otherwise a subsidy should bo provided of Cd. per gallon up to ,£20,000 per annum far a period of ten. years. "Tho present price of imported oils, compared with those ruling in America, impose a heavy tax on oil' engino and launch owners and on motor users generallv, the great majority of whom need their launches, engines, and cars fa. business and not for pleasure. The percentage of users for the latter purposo is comparatively small. Inm of opinion, therefore, that the Board of Iradti should ho empowered to fix tho price ot imported oils allowing a fair profit to importers and distributors. If this is not done tho State should purchase all tho imported oil for the Dominion's requirements and sell at a -moderate P l ' to retailers and distributors, who should be allowed to make a fair profit.

General Nationalisation. "I am not in favour of general nationalisation of all kinds and conditions of things. I have named those which I believe to bo essential in tho best interests of the country and which will be no burden upon taxation. All the existing State business departments havo been worked most successfully, and so I feel confident will those I am now recommending. • "We are living in greatly altered conditions, and great changes ane necessair to provide for a betterment of our social industrial, and commercial life. It is the way to prevent chaos and a worse condition than exists at present arising in the future. It is for the people without prejudice to carefully and iully consider them.

Encouragement of Increased Productioij,

''Labour should receive a greater shareof profits of industry, thus stimulating output. There should be financial assistance to new industries, and those already established should be fostered. Far cheapening commodities to the con. sumcr, State encouragement should be given tc voluntarily formed co-operative associations ou best English iu °j} e ; s united by the federal principle. Tins means a wide extension of tlio co-opera-tive storo system which aims at tno elimination of middlemen's profits. "There should be encouragement o tho adoption of improved machinery anil seieu'ific methods with a viow to increasing output -and ensuring employment for all, and a Department of Industrial and Scientific Research should bo established. . "\s3istancs and support to lue laimers engaged, in the production of products from the soil should bo a material part of the country's, policy.

Beet Sugar. "To encourage the production of beet in the Dominion, a subsidy slioulil ba°provided at the Tato of M per ton up to jCIO.OOfI per annum lor a prioa oi ten years. Railway Matters.

"After tho limited construction carried on "during the war period, it is desirable that there should now be a great speed-ing-up in the building and completion of railways. It would bo a saving to the country to havo works in course of construction completed as soon as possible. The loss of interest upon uncompleted lines is great, and the loss to thoso who require to use the lines"greater. I would urge the provision of £i,000,000 lor tho active prosecution of railways, the South 'Island Trunk railway should be completed in two years, tho North Island Main Extension in the samo periuii, ami the Otira Tunnel, connecting Chnstchu.rch and the West Coast, with the least possiblo delay. All the other lines in hand in tho country should bo finished within three years. This would attorn Teat facilities to settlers and to _ users of tho lines generally, and the railways would bo a much rnoro valuable asset to the country when in full earning power. , „ .. "As soon as the unfortunate difficulty in regard to coal has been overcome, (hero should 1)6 a. prompt effort mado to restore tho railwav service to tho position of efficiency rilling prior to tho war. "Free travelling for children up to seven years, and half-fares for children between seven and fourteen years should be established. This would in actual operation result in no loss or, at worst, •in only an infinitesimal one, and, as well as being a valuable educational factor for the children, would bo a great relief to mothers of families who aro frequently prevented from travelling by their inability oh account of cxpenso to take their children with them. The former system of school excursions from town to countrv and vice versa should be re-estab-lished ' immediately the present coal trouble is over.

; Suburban Trains, "Fast and cheap trains should be put on all suburban linos to enable homes to b« erected in suburbs, where the workers can live in comtort and yet have ready access to towns and cities. There is unquestionably a need also for the general public to have tlie benefit of cheap fares to and from the suburbs. Short suburban lines should as soon as possible bo electrified. The restriction against the extension of tramways from "Wellington to Ilutt should, be removed.

It is certain that their earning power would bo more than sufficient to pay interest and sinking fund, and no burden would bo placed u Ixlll the people by the adoption of this proposal.

Parliamentary Representation. "The 'first-past-the-post' system, which permits of minontj rule in the representation of the peoplo in Parliament, should 'be altered, and the unquestionable right of tho people to select candidates by a system of proportional representation should be recognised in city and suburban electorates as a eommencemnnt. 'l'his should be followed by the samo system in other electorates when tho growth of population renders it practicable.

Roading the Country. "It is not common sense to place large numbers of people on (lie land unless proper facilities are provided to enable thorn to reach the centres of population and market their goods; and it must lie remembered thai; ninny portions of the Dominion that have been under occupation for years are still badlj handicapped by the absence of proper roads and bridges. To obviate these difficulties a more vigorous policy of road making, with provision l'or maintenance, should be adopted, and I suggest tho expenditure of iM.OOO.CfIO upon Stats roads and bridges, covering a period of four years. The main arterial roads should be the cars of the Slate. In countries that I have recently visited, concrete roads ar« being largely constructed. These roads have" .gone pasl tho experimental stage, and there is no doubt that their mora general adoption throughout the Dominion would be advisable.

Nationalisation of Ferry Services. ".The time has arrived when the ferry services should fori), part of the railway system of llio Dominion, with railway rates and freights applying to them. Tho necessity for good communication between tlie two islands makes it very de-

sirable that the system which exists in n-.aiiv oilier parts of the world should be applied here. It is evident that when the South Island Trunk railway is comlileti'd a more frequent service between tlie two islands will be necessary, and I think that oil-burning steamers should he used for this purpose.

Motor Lorries at Cost Price. "In connection with branch roads, it would be advantageous to have a servico by modern motor lorries. The Govern-, wont could obtain these :iud supply tliem to local public bodies as required at cost price.

Water Power, "There should be 110 unnecessary delav in establishing further liydro-olcc-rrical power schemes throughout the Dominion. 1 have for jcars been strongly in favour of such a pjlicy. In mv opinion .Ui,(HID,OOI) should be expended within a period of '.liree years upon flic principal works, which should be put in hand simultaneously, and pushed on vigorously. When in London rectiitly. I arranged for to be rasied tor ilie Southland ami Otago scheme at satisl'actorv rales. The loans were underwriUou l)V an important financial London linn ill association wi'.h a leading bank. The loans are to bo put upon (lie market l.i be subscribed by the public when tho hoards of the Southland and Otago Leagues have the necessary authority fur 'iliis to be done: 'I'llis would leave ,il,000,00f) out of the J-'ti,COO,OO(I to be expended in carrying on tho other works.

Women's Rights. "Tho fine services rendered by women in every branch of work connected with the war have entitled tliem to tho best consideration of the peoplo of the Dominion, and the disparity in th'o treatment of women should, as far possible, be removed. To this they •sliould bo entitled to stand as candidates for seats in Parliament. The distinction between the rates of pay for men and thoso : for women should be removed, and thero sliould lie equal pay for equal work. Work must be regarded more and more as a Social service and, 11 equally efficient, its value is the, eomo whether done by a man or a woman,

Cost of Living"With a view to reducing the cost of living, tho Board of Trade should bo given extended powers. Legislation, should be introduced rigidly controlling the profiteer and restricting all commercial trusts, rings and combines, with provision for nno or 'imprisonment. There should be elimination of waste' by bringing dowii the cost of distribution. Kelief should be given as far as possible by the removal of duties on and taxation of all commodities, _ including clothing and other articles in general use. Duties on luxuries should, at the proper time, be increased. Indeod, a general revision of the Customs tariff will at no distant date bo necessary.

Freight Rates. "Freights from New Zealand ab?oad must in tho interests of our producers be reduced to what in _ the altered conditions due to tho war is reaSDiiable, and they should not be higher than those ruling 011 similar produeo for distance earriod from olhor parts of the world. The same applies to coastal freights »or coal, goods, ancl general produce. Extended powers should be fiiven to the Board of Trade to deal with this most important matter. AVh«t is fair and reasonable should be dono, but nothing in tho shape of extortion should bo petmitted. It is in the best interests of settlers, traders, merchants, and people generally that this matter should bo dealt with effectively mid that .adequate legislative provision should be mado to make tho Board of Trade's decree operative. , , _ Powers of Board of Trade. "Tho Board o£ Trade should have power to prevent profiteering ami the carrying-on of trusts, rings, or combines in the Dominion. Monetary penalties or imprisonment for breaches of tho law should bo provided. Amongst many other duties, the board should be. empowered to regulato tho percenwo of profits on food and clothing-withm the Dominion, allowing fair profits to sellers and taking into account losses by bad debts, sales on credit or for cash.

Industrial Problems. "The difficulties that have arisen in the industrial world the last fifteen years havo been principally connected with the coal mines' and tho work on harboui fronts. Speaking generally, labour in other respects throughout the Dominion has. with,the assistanco of the Conciliation and Arbitration Court, been upon the whole satisfactory. There must bo Bomo'cause for tho troublo in connection with 'the two branches of workers tu which I have referred. Stoppage of tho work from time to time affects more or less every other industry and occupation throughout tho Dominion, and a rational effort should bo made to iind a remedy to orevent recurrences of the difficulties. Jt is certain that the State cannot, without ignoring the interests of the people as a whole, continue to stand a passive snectator of these gravely wasteful industrial conflicts. Strikes at the best are not onlv unsatisfactory to the people who arc not immediately concerned, but thev involvo for the men themselves, their wives and children, much hardship and financiat loss, which, in my opiniorf, could with their - co-operation be avoided.

"There can bo littlo doubt that the future welfare of this country requires the co-operation of sane Labour in every branch of its occupation, to ensuro good eovernment on safe and progressive lines in the general interests of the community as a whole. Tho national and in, dustrial estimate of tho nature of labour has undergono radical change in recent years. , The conception of it merely as a commodity to be paid for like other commodities has almost disappeared, and the human elements—the condition, health, comfort, and natural rights of the worker have come into clearer and clearer national recognition. This is a profound end most beneficial' change, as it makes for tho physical, mental, and moral advance of the great mass of our people. In tho promotion of this change of view we must in determining wages look more and more first to the value of the work in question ai a social service, and secondly at its hardships, discomforts, and risks. A proper appreciation and application of this prill, cinle would 6olve many of our present labour troubles.

Law and Order, "The Liberal Party stands for law antl order. It will facilitate by the amplest legislative provision the will of the majority translating itself into law, but it will give no countenance to any movement, organisation, or party which seoks to secure redress of labour grievances by direct action,' or any other methods outside the law. I recognise the right of every man ,to discuss any public question duriug a time of peace—it is different when war is raging—but whilst saying this. I recognise no right of any person to either incite or encourage violence, lawlessness, or disorder when tie freest constitutional methods are open to him.

Industrial Machinery, " To ensure smoother working between employers and employees, improved industrial machinery, having closer application to the requirements of the various trades, should be adopted. In doing this, there should be no a interference with tho present system of industrial unions. There is a good deal to be said for the proposals contained in tho "Whitley report, and it teems desirable that a similar course .should be followed hero to that adopted in England, namely, tho setting-up of a committee oil relations between employers and employees to go into the whole question and report to the (lovernmeut. The committee in England consisted of fifteen members, representative of various industries, and one woman was upon it. I feel that a similar, investigation should be made in this country in the interests of both employers and employees with a view to .reconstruction upon a basis' that would enable tho employer and the worker to have better conditions than is the case now. Something of tho kind is very desirable, as neither this country nor any oilier country can hope to go on successfully unless there is good feeling existing between those representing tho respective interests. I recommend tho course indicated above for the consideration of the country.

Waterside Workers, "An effort should be made to establish permanent employment for n largo proportion of waterside workers, and also to provide comfortable housing and a I'ontributory superannuation fund for tho benefit of the men, their wives, ' and children. Such a system cannot bo operated effectively for casual employees, bif. it should be possible, with a spirit of co-operation among the shipping interests, the harbour boards and" tho men IliAnselvcs. to have n satisfactory system established on the lines indicated. It would surely be worth while for all parties interested to agree to the establishment of a representative commission to bring about something of tho kind. If this were done, ; public opinion throughout the Dominion would bo ,opnosed to any stoppage in the trade of !he country by the men on the wharves through want of consideration being shown to them. The system o(< detaining ships in port unnecessarilj .li.ould

not bo continued, as expedition when competing with other countries is absolutely essential. "If some scheme on Hie lines suggested were brought into operation, the workers would have something to look forward to which should be an incentive to them to help the country along (he path of progress. Workers' Compensation.

"More generous provision for workers' compensation is necessary. There 6hould lie a revision and amendment of the schedule of the Workers' Compensation Act. The State should pay compensation fixed by Statute when an injured worker or tho dependants of a killed worker are unable to obtain it through the insolvency of the employer or through any flaws in the law.

The Housing Problem. "The. housing problem demands urgent solution. There is a great and pressing demand by wage-earnors throughout tho Dominion for better homes, and I houses must be provided at the lowest possible price and upon easy terms to those requiring them. In addition to the authority already provided in our Statutes relating to workers' dwellings iind advances to workers, there should bo an amount of •£'•!,000,000 specially provided for the erection of workers' homes where required, the expenditure being spread over a period of four years. Local publio bodies should be associated with the Government in carrying out this scheme on plans and specifications furnished by tho Government. The present limit provided for the erection of these ltome3 is too small under tho altered conditions due to the war, and tho advance should be raised to per liome. "This important proposal can be carried out on safo lines. We have already lent settler's aid workers and this has been done most successfully and profitably to the borrowers and to the State.

Soldiers and Their Dependants. "New Zealand is uuder a big debt of gratitude to .the men who fought for her during the great and there should be proper recognition of the rights of discharged 6oldiers and soldiets' dependants and a generous provision regarding gratuities, allowances, pensions, etc. Theses important matters, require to bo generally recognised by the people through the Government. It is the country's duty to help tho man fairly and reasonably. They aud their families havo to live in the country, and whatever -wo finally do should be on a general basis that we can. uphold and maintain. The granting to discharged soldiers of tho right to have their definitely formulated grievances investigated in a court of civil jurisdiction is, in my opinion, desirable. In making this statement I am> not in any way reflecting "upon the military, but there can bo no doubt, looking at the question from a broad standpoint, that the system suggested would be moro aeceptablo than tho present one to the men themselves as well as to tho peoplo of this country for whom they have fought.

that action is necessary; it is in connection with auy section lliat is from motives of avarice abusing its opportunities and charging extortionate prices, ibis is what is, and has been, adding to the difficulties of the people in tho altered conditions due to the war.

"Producers must bo protected from excessive freight rates. Trade should bo freed' from any shackles that now impede and hamper it. Competition and a spirit of legitimate and vigorous rivalry are the surest and safest means to secure the best results for the public. "Personal ambition; at this grave juncture in our country's affairs should be subordinated for the common good. The party who elected me as their leader will shortly havo the opportunity to consider the whole situation, quito irrespective of any consideration for me, and to come to, I, hope, sound conclusions calculated to promote the best interests of the country. I have no desire from personal ambitions to undertake a task heavy enough to tax the nerve, skill, and judgment 01 any man, however experienced ho may be. I should only consent to do so with the full approval and assistance of all who to fie© this country placed iu a position for solid and safe progress. A leader who is endeavouring to give his best services to his country requires the full support and co-oneration of all who believe iu the policy ho submits.

Maimed Soldiers. "Special provision should be made for those soldiers who unhappily have been wholly or partially incapacitated as the result of their services during the war. prospecting. "A great deal of wealth has been obtained in this country from gold and other minerals, but tho Dominion has not by any means been thoroughly prospected. It would pay New Zealand to provide a sum of .£20,000 per annum for the next ten years to carry_ out "respecting in various parts of tne country on a thoroughly systematic basi6. >. In all probability, further mineral deposits capable of being worked on a profitable basis will be discovered. Ii so, the money expended would not be lost, as everything that is taken from the bowels of tho earth is practically found money and adds to tho genoral wealth of the country.

Old Age and Widows' and Orphans' Pensions.

"There is now no reason why.old ago pensions should not bo granted irrespective of income or capital up to a reasonable amount. Tho limit should bo raised so that ownership of a home or a limited income from savings should not bo a uftr to receiving the full pension. "Better provision should be made for widows' pensions and for cases where children are left, both parents Slaving died and the wife having predeceased tho husband. Superannuation. "The Public Service superannuation scheme should be extended, giving larger benefits to widows. National Provident Fund. "Extension of the National Provident Fund is required, making it universal in its application and ensurinfi larger benefits to all on a contributory basis. ■ The payment under this sdieme of .£6 to mothers at maternity should be made without tho restrictions at present existing. This is a wise course in order to help to increase the birth rate.

Public Service. "The question of pay, privileges, etc., in the Public "Service should como under review, proper regard being paid lo the purchasing power of salaries. Tho pay in all branches 6hould he such as will enable the members of the Service to livo in adequate comfort and make suitable provision for their old age. Naval Policy. "It would, in my opinion, be a great mistake for this country to undortako the burden of anything in.tho shape ot a local navy. AVe must, however, bo prepared to support a suitable scheme for our protection in tho Pacific. The visit of Admiral Lord Jollicoe is important and opportinio and the country will await with much interest his report upon this question before finally deciding on my deflnito policy. Cost to the Country. "I wish to point out that of the whole of tho principal proposals T am suggesting only the expenditure on soldiers for gratuities, allowances, etc., education, roads and bridges, are a direct charge upon the State. The wholo of the others arc revenue producing, and will more than pay their own way. They will result m increased prosperity to the country, and provide work for all., The exceptions abovenamed aro of a nature that ovc-ry right-thinking person will recognise we must, as a matter of duty, provide. Conclusion.

"1 repeal, in conclusion, that the need for a .National Government, created to help' tho country during tao period of a great and unparalleled war, does uut now exist, nor no I UiiuU it can bo carried on with advantago to tho country. It is truo there are diificult matters still to bo dealt with, aiid tho aftermath ot war calls for a strong Government and firm administration with definite, plain, determined views on main issues. "The risk of divisions in this country is great, and presents a grave daugvr to iho well-being of the people as a wholo. 'There is a scction of extremists whoso sole olijc.ct is to take anurcluc chargo of the country. They have in uiiiny instances shown that they would press, if they had the power, the abominable and disastrous doctrine of foreo anu direct action, inconvenience and. suffering caused lo tho general public does not concern them. Force, strike nielhous, and other similar means affecting our food and fuel supplies, including tho vital necessities of the poorest and tho weakest, have been their resource. Those methods' will not preserve a great couutry for tho uso and benefit of ihs people. The will of tho peoplo expressed by constitutional means can alone be. recognised.

"This is a tinio for the best bruins aucl the brightest intellects of tlio iouiitry, not only insido but also outside Parliament, to copo with tho many and varied problems that lnivo to be solved, and to help in the work of government on strong:, progressive lines, dealing justly with tho poorest and helping them in their trials, acting l'airly lo the more fortunate classes, mid calling, upon them to assist in making lulcqnuio sacrifices and in meeting the claims arising from this conditions of those not so well oft' as themselves. The price of food and clothing of the people is n problem of grave' importance., Tho profiteer must be stopped from imposing unfair and arbitrary prices on tho masses of tlio consumers. At the same time cure must lie exercised so that the legitimate general trader, either wholesale or retail, is not hampered or harassed in the legitimate cnrrying-on of his trade. It is not in connection with tho legitimate trader, who is entitled to fair protite,

"New Zealand is a glorious country, n priceless heritago worth working for. Whatever assistance can be rendered should be given wholeheartedly by all who desire it to become still greater, and who wish to see it handed on to the coming generations as a constitutionally-gov-erned country in which people of all classes and creeds can live as citizens with their rights and privileges respected and protected by its laws—a country, in fact, which mil be an <;*» ample to the world.

POSITION OF OTHER LIBERAL MINISTERS BESIGNING AT AN EARLY-DATE. The five Liberal Ministers who eat with Sir Joseph Ward in tho National Government will resign their portfolios within the next few days. Several of them have work in hand that they wish to complete. The Hon. W. D. S. Mac Donald, who was acting-leader of the Liberal Party Surinir the absenco of Sir Joseph Ward in Europe, said last night that he would tender his resignation this morning. "My resignation goes with that of my chief/' he said.

Tho Hon. T. M. Wilford stated last Bight ttiat he also would tender his resign nation to-day. The Hon. G. W. Russell made a brief statement regarding his position. "'When, the National Government -was formed in August. 1915," ho said, "wo entered it as members of tho Liberal Parly. It having been decided that the Liberal Party shall withdraw from the Government, I, of course, will rotiro under tho arrangement that was made four years ago, There are several very important matters which I have been unable to cleat ud, and consequently I shall not be readv to present my resignation until Monday next. By that time these matters will have been completed, and on Monday next I shall hand my resignation to Sis Excellency the Governor. More than this at present I do not feci disposed to 6ay. w