PRIME MINISTER

Hokitika Guardian, 31 May 1928, Page 4

PRIME MINISTER

A POLITICAL ADDRESS. MORRINSVILLE, May 2S. The Prime Minister was accorded an enthusiastic reception here to-night when lie addressed a large audience, devoting himself principally to issues affecting the farmers of the Dominion. He claimed that as a farmer of many years’ standing, still owning the propetty on which he was horn and with j no other personal rc.surcos than liis farm, he had a right to discuss farming with farmers. He had worked eonsistcnlv and earnestly along litres that lie knew would I ring farmers through their troubles and would show them the way to prosperity if they would give their help and support. The Prime Minister dealt in detail with the work of the scientific and industrial research department in its efforts to solve problems of actual farming, and he then described on the lines of recent speeches what the Government had done- to make 1 tinners mote secure through the medium of the State Advances Office, and the provision of long term rural credits and intermediate credits. CUSTOMS. Discussing the Customs, the Prime Minister upheld the recent utterances of the Minister of Customs, stating that the principle of supporting worthwhile industries in their initial stages through the Customs had long been established, and any attempt to remove protection would produce chaotic results to both secondary and primary industries. He included primary industries, heciut.se very many groups oT farmers were as fully protected as secondary industries. Even if a free trade Parliament were returned, the Minister of Customs would find insuperable practical difficulties. Great Rrilain lias often been uphold as a model free trade country, hut Mr Winston Churchill recently budgeted tor £000,(!(10,000. of which approximately £300.000.Ct)(l was estimated to he ra.s-

ed from Customs taxation. LOAN TRANSACT lONS. The Prime Minister went on to speak of the high standing of the I)■>minion in London. An ntnmpt. he said, had been made in 4 New Zealand to belittle the recent loan transactions. While it was undesirable to refei speeiallv to other States, it might be mentioned that an Australian statement had recently been published showing that there wrs raised in London during the last twelve months I>\ the Ctintron wealth and Australian States about £38,000.00:1. all on inte-rest-yielding i ales higher than the New Zealand 1927 loan of £6,000,00:), which was qiiicklv over-subscribed. 01 the £38,000,000 offered by other borrowers as above and on more attractive terms about: 72 per cent, was left with the underwriters. As regards the recent 1928 loan of £5,600,000, it was decided to offer this at It per <cnt. discounted at £9l IDs, with twenty years currency, equalling an interest yield with redemption of Cl 19 s 8d per cent. At the same time we successfully converted £5.000,000 of I per cent, stock, £2,9000,010 of which matures next year, this £5,0.0,000 was converted to a. It per cent, basis on terms yielding the holder £1 10s lOd per cent. The Commonwealth, a few days alter issued a New York loan at l) per cent, discounted to £92 10s. with a currency ol twenty-eight, years, the interest yield with redemption being per ci-nt. The real test of these two 1 aits, and allowing for the different currencies, would he. What are the ultimate proceeds to I errowers l in this connection a leading Australian financial publication said: ‘"Actually the New Zealand loan was more favourable than the -Id per <ent. difference, because the margin of cost ■ I raising loans in London and New York is from 10 per cent, to ll', per cent, cheaper in London.’’ UNEMPLOYMENT. Amplifying his statement made last week regai ding unemployment, the Prime Minister said that when industrial affairs mixed with political there

always was danger of exaggeration. whie.ii did harm to the unemployed ami it great deal of harm to the Dominion. The population ol New Zealand was 1,450,000 and the number ot adult workers, male and female, was 435.000. Taking the maximum of unemployment a.s estimated by the labour party, namely 10,000, although the Labour Department's estimate was 5000, there was one unemp’oyed worker to every 43.5 qmployed workers. On the Department’s estimate the proportion was 1 in 87. In the United States, with a population of 120,000,000, the number of workers was 35,000,000 and it was estimated the unemployed were 8,000,000 which gives a proportion of 1 in 4275. Even estimating the minimum unemployment at 4.000.090 .the figure would be 1 in 8.5. In Britain there was a population of 45,000,600, with 13,125,000 workers and unemployed 1,100,000. The proportion was one in 12. This showed that the unemployment problem in New Zealand was not nearly so serious a.s in the Old Country and the United States. Relief measures were, of course, only temporary, and if any ill-considered scheme were launched such might not effect a cure, hut increase the evil. The Prime Minister was accorded a vote of thanks and confidence.