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Hokitika Guardian, 10 November 1928, Page 4

Tun rough and ready way in which the Labor Party would deal with the financial interests of the Dominion is one of the most serious causes for alarm should Labour reach the Treasury benches. If their expounded policy affecting finance is ever brought to pass, this pleasant little country will stand in jeopardy of national bankruptcy. In bis address the other evening Air O’Brien indicated some of the ways by which he was prepared to throw sand into the delicate financial machinery governing the economic interests of the Dominion. Capital is a very sensitive commodity. The average man if lie has a few pounds likes to know it is “safe.” Or if his little wealth is hoarded in property, ho likes to know. too. that that is inviolate. If he has a suspicion of danger he is perturbed. and takes alarm at once. Our financial correspondent in "Wellington gave our readers, in Wednesday’s issue, a thoughtful dissertation on capitalism, and it would be well for all budding economists to read that article two or three times to assimilate all that the profitable, use of money means to a country. Wo have said that capital is something very .sensitive and easy to take alarm. There is a large amount of money in this country invested in New Zealand bank shares, insurance shares and oilier like securities. This money cannot be said to belong to the “wealthy.” for there are not many people in New Zealand as belonging to the wealthy class. But the money belongs to the thrifty, who save a little and invest a little, and so build up by wise investment a store of capital; just as another section who are thrifty, save a little and put it aside for a rainy day in a bank. Tlie bank is selected because it is considered secure. But judging by Afr O’Brien, if tlie Labour Party had its way few banks or insurance companies would be secure, because lie is going to supplant them, and conduct the business as the Labour Party may dictate. That .source of wealth is production, and wealth can bo invoked only by the use first of wealth itself, but if wonltli or capital is alarmed by Labour, will not there be an exodus of wealth, and New Zealand will l>e .short of money? As it is in Labour-ruled Australia money is dearer than in New Zealand, and there is a richer field for investment there, which means that those requiring money in Australia, the Labour-ruled country, must pay more for it. That condition will recur here, if Labour gets into power. Cheap money will disappear, for there will ho a scarcity of money, and it must he dearer, as other commodities, when shortages occur. The wealth of this country is being wisely given hack to the people through the hanks for utility purposes, and Labour can do no more with it. But they can interrupt the stream, the flow of money, and that is exactly what Afr O’Brien would do by his alarming confiscatory proposals and the creation of complete State control in matters of insurance and finance.