NO RAY OF HOPE

Evening Post, Volume CXVI, Issue 77, 28 September 1933, Page 11

NO RAY OF HOPE

GOVERNMENT POLICY

LABOUB'S ATTACK

AMENDMENT

f MR. HOLLAND'S SPEECH

' The Government's policy for meetfug the effects of the depression was pssailed in many directions by the Reader of the Opposition (Mr. H. E. Holland) when he resumed the debate on the Address-in-Reply motion £n the House of Representatives yesterday afternoon. Mr.y Holland spoke ft'or one hour and three-quarters. He fcrefaced his speech by moving the following amendment:—

But this House affirms that the Government have refused to recognise that the critical condition of society demands a definite plan of financial and industrial reconstruction, including the preservation of equities '■in land and homes and the reduction of oversea* indebtedness to presentday values; that they have refused to . make provision for unemployed '•women and youths; that by their deflationary policy they have intensified xinemployinent, distress, and privation, and made home life among relief workers an impossibility; that their present system of unemployment relict' is costly and uneconomic; that high exchange has had a disastrous effect upon the economic Jifo of the Dominion; that increased and inequitable taxation, including sales and unemployment taxes, should bo imtnodjatoly revised and ultimately repealed; that tho curtailment of; social services and the reductions of Tvages, salaries, and pensions liavo crippled trade and impoverished the nation; that the present monetary system has failed to provide for the requirements of the people; and that complete public control of a monetary system, based on goods and sor■vices and capable of expansion, according to growing needs should be substituted. This House further affirms that your Excellency's advisers do not possess the confidence of the / country. ] A PARADOX. ' My. Holland said tho mover of tho Address (Mr. H. Holland) had constituted himself as a sort of apologist 5n chief for the Government's policy find administration, and it was significant that neither the mover nor seconder2 (Mr. W. J. Broadfoot) had made any reference to the paradox of want and poverty in the midst of plenty. It would be better for tho Government if it faced np to that paradox, for there .was no doubt that it had to bo faced tip to sooner or lator. During the course of the debate he would like some jOovernment member to explain -why it jwaa necessary for men, women, and children to go without sufficient food when there was no shortage in the Dominion; why people should go without sufficient clothing: while the factories and warehouses were filled, with articles which they could not sell; and why the people had to go without coal while the mines of tho Dominion wero ide. There ■was absolutely no reason why anybody Sa New Zealand should go without the oieceiasaries of, life. Apparently the tinly shortage in New Zealand was a shortage in statesmanship and a capacity so to organiso the country's affairs that people who wanted work could secure it at a fair remuneration^ A WASTE OP MONEY. "The present session," eaid Mr. Holland, "opens without a singlo ray of hope. But perhaps I should not go that far. . Perhaps I should say that Lyttelton is the one ray of hope. Other lhan that, there is not a singlo ray of hope." He went on to refer to New Zealand's representation-at tho World Economic and Monetary Conference, and said he had always held the opinion that there had been no need for New Zealand to send Ministers abroad for that purpose. The High Commissioner i'ould have done everything, that the Prime Minister and the Minister of Education had done.- : ■. ,- : Mi*. H. Atmore (Independent, Nelson): And done it better. , Mr. Holland: He could.not have done %t worse, for thero was nothing done. I think the expenditure on the journey was a hopeless waste of money, especially in view of the absence of any results from the Conference. It is true that .the Prime Minister came back with ii somewhat more hopeful outlook than ha generally assumes. . Mr. S. Gr. Smith (Government, New Plymouth): It must have been a success, then. PRICE LEVELS AND WAGES. Mr. Holland said that Mr. Forbes had fcaid on his return that New Zealand was not «o badly oft" as other countries, fent all he could say was that the conditions in other countries must have been astounding. Personally, ho thought the only proof of returning confidence nn the country would bo a reduction in the number of unemployed. In the Speech from the Throne it had been stated that ono of the contemplated results'of the recent Conference was a raising of the price levels of the primary products. It was obvious that price levels could not rise until the purchasing power had been restored to the people, but that aspect' did not seem to have been mentioned at the._ Conference. How was it possiblo to raise price levels until wage levels had been lifted? Referring to the internal loan conversion carried out by the Government, Mr. Holland said he wondered if the references in the Spoech to the success •which had been achieved had been inserted by, way of a joke. "When we talk about the patriotic response that was made by the people with a bludgeon hanging over their heads it sounds like humour," said Mr. Holland. "Parliament said to the bondholders, 'If you don't agree to accept a reduction of 20 per cent, in your interest payments, then we will make tho reduction in spite of you, and we will make it 33 1-3 per cent.' And we call that voluntary conversion! It is like a highwayman congratulating his ■victims on their patriotism in contriTjuting to his loot." (Laughter.) THE OVEESEAS DEBT. On the question of the overseas debt, Mr. Holland said thnt sooner or later there would have to be a readjustment of this, and he would like the. Prime Minister to tell the House what steps were taken in the direction when he was in Great Britain.

During the Lyttelton by-election the old cry had been raised that the Labour Party, if returned to .office, would put the printing presses into operation in order to print banknotes. The Minister of Lands (the Hon. E. A. Bansom): Will the honourable gentleman explain how he , would , got "it? ; .. ' •

Mr. Holland: That would be quite easy. No Labour member was ever silly enough to suggest that we would reel out banknotes. The Minister should know enough about history to 3<now that tho banknote is only pin money in the world today. Surely every Government member should know that. Mr. Atmorc: Oh, no. You are too optimistic.

LIVING ON PAPER,

Mr. Holland said there was power O(HI*J to print double tho number of $'arikDOtes than wen; in It.

was necessary that tho Government should have the power to produce whatever legal tender ■ currency was necessary for tho public and private business of the- country, Tho Minister of Lands should know that over 90 per cent, of tho currency oi Now Zealand took the form of the cheque sys : tern, and a cheque was only valuable when the goods were behind it. A3 a matter of fact, in recent years tho Government had been living on a paper issue. Treasury bills had been issued on a tremendous scale, and the Government had, Micawber-like, met every lOU with further lOUr. By issuing Treasury bills the Government simply pawned the State's security to the banks. The banks did not give the Government legal tender in return for these bills, but simply created <i book entry in favour of the Government, and tho Government drew cheques against that book entry. After making_ brief reference to the exchange question (reported separately), Mr. Holland denlt briefly with the unemployment problem, stressing the necessity for immediate steps being taken to put every man and woman in the country back into remunerative employment. He went on to refer to what he termed tho disastrous effects of the Government's deflationary policy, and concluded by expressing the hope that a majority of members would realise their duty to the country and give expression to the country's desire by supporting the amendment which he had moved. " The amendment was seconded t>y Mrs. E. B. MeComba (Labour, Lyttolton).