The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, FEBRUARY 19, 1931. BRITAIN’S POSITION.

Hokitika Guardian, 19 February 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, FEBRUARY 19, 1931. BRITAIN’S POSITION.

Tiik financial position of Great Britain is very much akin to that of New Zealand. When a synopsis of Mr Forbes’ statement was pullr-hed in England. The “Morning Post” (London) said: Mr Forbes lias set an example of prudent, courageous finance, which ought not to be lost on either Air Snowden or Air Scullin. New Zealand has suffered as much as any country under the maelstrom of world depression. Yet whereas Australia is still shirking the issue, Air Forbes has wasted no time in bringing the situation under control before it became unmanageable. His programme embodies just those measures which Sir Otto Niemcyer recommended for Australia, improvident governments like our owe in Britain who cut their coat without regard to the cloth, would ho welt advised to take a loaf out of Air Forbes's book.” While this is high praise for the prudence shown by our Prime A.f.inister here, the point of special import is that his method is applicable specially to Britan also. Air Philip 'Snowden, #hc Chancellor of the Exchequer in the> Labour Cabinet at Home, lias alarmed some of t.ie Labour following, the extremist section, by declaring for economy. In the course of a recent declaration on the bnaneial issue and the need for all round financial adjustment, Air Snowden went on to say that none would welcome suggestions for economy more than he, and no proposals which were submitted would fail to receive the closest and most sympathetic attention. He went on to say that it was only on policy that any large savings could be made, and the House most face that fact. He added: “Having pointed out the difficulty, I say with all the seriousness that I can command that drastic and disagreeable measures will have to be taken if Budget- equilibrium is to he maintained and if industrial recovery is to he made.” Expenditure which might he easy and tolerable in prosperous times became impossible in a state of grave industrial depression, and schemes involving heavy expenditure. however desirable, would have to wait until prosperity returned. This was necessary in order to maintain, the present standard of life. This was a crisis which no one foresaw, but the country and the House of Commons must realise the gravity of the situation and unite in an effort to overcome the temporary difficulties and restore the former prosperity and he added very properly as a note of warning that any well-grounded fear that Britain’s budgetary equilibrium is unsound might have disastrous consequences. Therefore wo must maintain our financial reputation and we can tro that. Our position is fundamentally sounder than that of any other country in the world, and all that is necessary is an effort to get over the present crisis. That can he done. Ft will involve temporary sacrifices from everyone. hut those who are first able to bear them will have to make the bwgo r 't, ‘•aerifices. to which Cabinet is prepared to make a substantial contribution. This is a crisis which no one pun-tv can solve. The country -and the I Ton so must realise the gravity of the position and instead of pnrt- v bickering they must unite in a common effort to take effective measures t 0 overcome the temporary difficulties and restore our former prosperity.” Mr Snowden's remarks alarmed the extreme Labour section, always prodigp.l in expenditure. Flor ifnstano-e Mr AY. J. Brown (Lab), said that Mr Snowden’s speech was one of the most revolutionary heard in the present Parliament. It meant that Afr Snowden

so highly regarded the city of London and me interests of the Danker anu Hie money lender that he was prepared to go hack oil the wlmle of lnV> dvrii i,o. i lien I career. It meant the surrender of Lie whole of Labour philosophy at the binding of financial interests. The .Labour Party hatl become the handmaid of capitalism, it, was

monstrous taut a .socialist Chancellor should make such a speech. The Government had no unemployment policy ana was staggering from crisis to crisis. It appealed to have neither the “guts” to govern nor the grace to get out. Something similar and probably as elegant, has been expressed by a section of Labour interests m New Zeaiand, hut words alone will not meet the summon. It. requires action, it is sigm.leant that, in winding up the dr.sue in the Luminous, at which the loregoing was but part of the .serious uiLiame delivered, a colleague ol Air Snowden, Mr William Graham (President ol the Board of Trade), m replying, said that whatever Government had been in offite it would have been faced with a similar crisis. The enormous growth of unemployment was due mainly to the fall in commodity 'pri.es. He saw little sign that bottom had yet been touched. There was no need for pessimism and despair, hut there was need for sustained, enlightened and constructive optimism, realising that the couni-y could survive and build -up a far greater appeal to world trade than ever before. All tin's by two responsible leaders in the Labour Government at Home, hears out the foresight of Air Forbes in anticipating events as much as possible, and preparing for a period of serious economical administration and financial re-organisation of the country. It is futile closing one’s eyes to the world situation of financial stringency and delaying in the task of selling the finances of the country in order. To do less is to court disaster, and a state 1 of affairs will arise which will make recovery harder and harder. \Ye see what is happening through protraeicu action in Australia where financial chaos is threatened. The Lomjon

“Morning Rost” which is quoted at the outset, sets out the position only too well, and the praise it gives Air Forbes confirms the general view of these who cast their minds over the po-ition of Now Zealand, and realise what will come to pass if the policy of the Government is not accepted. The alternative will he financial disaster for the country.