The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JUNE 17th, 1925. THE TREND OF THE LABOR POLICY.

Hokitika Guardian, 17 June 1925, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JUNE 17th, 1925. THE TREND OF THE LABOR POLICY.

Till-: trend of the' I.altor policy as explained by Mr O’Brien AI.P., at the Opera House on Monday night, should Isecoine a matter for serious concern by every elector interested in the future of New Zealand. The proposals generally are so radical that either the making or marring of the country is inevitable. If we thought the former happy result were to transpire, we would not he seriously concerned, but we fear the hitter would come to pass, and on that account are fearful tor the future. It was unfortunate there was not a larger attendance to hear first hand the outline of the Laborpolicy, for it is best in these matters of concern that the people should think for themselves. The ultimate decision rests on the votes of the people, and the votes should he east without passion or prejudice, intelligently. '1 he impression left by the outline given of the. policy was a disturbing one. not to say alarming in some resirects for carried to its logical conclusion it could hardly he otherwise than productive of chaotic results financially, and on finance and credit are built tire prosperity of New Zealand. Air O’Brien skimmed over the land policy almost as an aside, for it was a question which brought out the reference to the land policy of Labor. The policy in mind is in process of completion so fates detail is concerned, but in effect it is the ending of the freehold tenure and a new form of tenure founded on use. The value of the land is to l*e founded on use and productivity, and land not in rise is to he taken from the holder and given to someone else. Only the State may purchase, as only the State may sell, and all land transactions outside of that sphere of influence. is to cease. The money side of the policy was not touched upon, because the details are not worked out. A committee of farmers is engaged on the scheme, and in due course a very radical policy will be fashioned. But enough has been said to indicate its re-

volutionary, not to say confiscatory, nature. The man with a freehold is to stand in jeopardy. "Whether mortgage free or not the State, is going to invade his home and dispose- of it as is thought best by the Labor Government of the future. It would he well for the electors to avert the advent of the Lahor Government as long as possible for alien the parly enters into power the land Ia a s and ownership of bifid will he thrown into the melting pint, and a new order created. Regarding hanking, Mr O'Brien made i plain that with the earning of a Labor Government, a State Bank would result. and the six hanks in Nea - Zealand could fend for themselves. Banking is the credit system of this country, the very life blood of the trade and commerce* of the Dominion. To upset the position in ahu h millions upon millions are involved would he a very dangerous step unless the iuture 1

tillV safeguarded iii^ailist. I lie policy j is enunciated {{live no suggestion or my safeguards. Mr O'Brien railed against the profits ol the hanks, hut it must; he home in mind huge 1 nmis were manipulated to ])roduee the returns, ami it there had been no protits, it winhl have been a bad time econoinieiiSly for New Zealand, lmllt do not i.; now money from the hanks lor the pleasure or ] ain of merely paving inter-e-i for the accommodation. 'J hev borrow from the bank or the individual for trade purposes or some enterprise which they believe will be lucrative and improve their position. -More, thev Use the money as a stealing stone to greater advantage, and their contrael is to pay interest and repay the pnneipal. When they succeed they earrv out their cmiiract. When they fail, it i- the lender who loses the mniiev not the person who had the loan, fiider this system of credit the whole business oi the world is carried out. It can he a success only by careful management. Where the management is not a success and (lucks and ‘drakes are played with the lands, even hanks have failed. Lately in the l nited States a whole series of farmers’ hanks have failed because* their securities dropped in value. I hose who borrowed the money eotihl not repay, the banks had to take the landed securities, and not being able to convert the land into cash, failed. What guarantee is there that the State Hank will he well managed in this country

Scum t>'Jirieii ).roiesl s i!ist proliiV. i Liilior looks lor losses us a mark o success, then State honkino is iloonre to failure.