PRACTICE OF ECONOMY

Dominion, Volume 13, Issue 311, 25 September 1920, Page 8

PRACTICE OF ECONOMY

NEED FOR BEGINNING NOW

MR. MALCOLM ON POST-WAR

DEPRESSION

Counsels of economy from members of either branch of the Legislature are becoming fairly common now. The Prime Minister (Mr. Massey) has repeatedly said that tho couutry must produce more and consume less; the (Jpper Houso only the other day carried a motion urging upon the people und. the Government the practice of economy; and last night Mr. A. S. Malcolm (chairman of committees of the House) spoke at souio length upon the danger of depression that confronted the country as a result of the war.

Mr. Malcolm said he had investigated as well as possible in the brief time at his disposal the effects of wars upon trade. With ono exception, all wars of auy magnitude had been followed by very severe depression. During wars inflation and depreciation of tho. currency occurred; after tlio war depression supervened. The greater the war, tho greater the inflation while it lasted, and the severer the depression, when hostilities were concluded.

Generally, tho depression began about two years after a settlement had been arrived at between the belligerents, and borrowing for war purposes had practically ceased. Thus it would probably not be far wrong to suggest that the depression, or tightening of the money market that would follow the Great War was due at the end of a period of some two years from the . settlement. What he dreaded most was the prospect of such unemployment as had followed other wars. He trusted that the troubles to be met with in this case would not bo so severe as tho troubles that had occurred in tho past. But at the same time it was wise to take warning from tho past, and tho Governmont and the people would be well advised t<> practise now the economy that so many ■were preaching. It would be much kinder to think of veducing expenditure now than at a time when depression might have overtaken the country. It might be possiblo to effect economies in the various Departments of State. without dismissing officers. He did not know whether that would be possible. Another mem--ber had pointed out that possibly economies might be effected in travelling expenses; but in any event it would be kinder to the service and to the public if economies were effected while employment was still freely offering and poverty scarcely existed.

The Prime Minister (Mr. Massey) had something to say on the subject opened by Mr. Malcolm. He told the House that he liked to hear members advocating economy.

The Hon. E. P. Lee: They never wanted it in their own district.

| Mr. Massey said that that was a point 10 lmd proposed to make. A member had only a little while before urged with nil tlio vigour at his command that the country should practise economy—and had wound up with a request for the establishment of State farms in his district. He (Mr. Massey) would havo liked to produce a return showing how many requests members had made during the past four or five months for the expenditure of public moneys. Tho only trouble was that such a return would cost too much to produce. It would be as bis; as a family Bible. Members talked about economy, and all the timo' they were asking for money and seeking new reasons for expenditure upon the districts to which they belonged. The Government would show no favouritism. It would endeavour to do justice to all'requests in proportion to the importance and urgency of the works asked for. whatever the district interested happened to be. Air. Malcolm had said that the travelling expenses of Departmental officers might be reduced. It was, however, important that officers should move about the country freely for purposes of supervision. Retrenchment in the direction suggested by the * member for Clutha might only lend to the necessity for heavier expenditure. The increase in the cost of living hnd served to incrense greatly tho travelling expenses of officers. THE INDEMNITY 1 "Do you still really believe that Germany is going t« pay?" asked Mr. P. Praser (Wellington Central) when Mr. J. P. Luke (Wellington North) referred in tho Houso last night to Germany's war indemnity. "I believo that Germany is going to I>ay a lot of that debt," replied Mr. Luke, "and I believe that the Prime Minister shares that opinion." Mr. Fraser suggested that Germany could not pay; and Mr. Luke reflirmed his conviction that she would pay in time. It might bo two generations hence, he said, but he believed that in courso of time a good deal of the debt would be liquidated. LOCAL GOVERNMENT BILL Several members of the Houso last night suggested that a Local Government Hill .should be introduced as soon as. possible. Mr. Mnssey replied that such a Bill was one of the most difficult of all measures to pilot through Parliament, lie agreed that there was need for improvement in the system of local government, and said that he would bo glad to take the matter in hand after more urgent problems had been solved. He indicated that them was r.o possibility cf tho introduction of a local Government Bill this session. ANOTHER COMPLIMENT"TO MR. COATES "I am now going to do a tiling that has not been done on this side of tho House for a long time," announced Mr. J. V. Brown in the Jlouse last night. It appeared a moment or two later that all tli member wished to do wag to congratulate tliia Minister of Public Works upon the energy displayed in the execution of the Waikarcmoana hydro-electric scheme and in the construction of the fiast Const railway. Incidentally, Mr. Brown said that he "was still an Independent Liberal without a lender," and was committing nobody else by tendering congratulations to Mr. Coates.