The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JUNE 12, 1931. POLITICAL PLEDGES.

Hokitika Guardian, 12 June 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JUNE 12, 1931. POLITICAL PLEDGES.

At the political meeting on Wednesday night Mr O’Brien spent a good deal of his time in traversing the policy of the United Government, and in particular attacking the Prime Minister as a pledge breaker! Mr Forbes however has been careful not to cK> anything without due and full notice to the public at large. He has gaineu a reputation for frankness and directness of speech- No deputation which waits upon him, departs with any uncertainty as to the Prime Ministers statement. It is clear and direct to the point. As to political pledges, Mr Forbes became the successor to the late Sir Joseph Ward who had issued a manifesto at the time of the last general election, and upon assuming the leadership of the country had endeavoured ot carry it out. Mr O’Brien said very fairly on Wednesday night that the health of the late Prime Minister was a bar to giving full effect to his policy, but lie (Mr O’Brien) doubted if Sir Joseph would have carried it out in any case. The fact was that a world slump rolled round the globe, and New Zealand was involved as all other countries were—great and small; rich and poor alike. It was at such a juncture that Mr Forbes had to take up the reins of office. As a life-long Liberal and follower of Sir Joseph, we may lie sure that Mr Forbes and his colleagues were bent on pursuing the'policy• of Sir Joseph, a.nd discharging the obligations he had taken up. But the whole finance of the world proved to be dislocated, and New Zealand trade suffered most severely. Those on the land to-day, the primary producers responsible in the past foi so much ct the national wealth, know how the

world slump lias affected the earning power of the country. Mr Forbes wont to London for the Imperial Conference, and it was perhaps most for- , tunate that he did 7 He was able- to get an independent view of world affairs first hand and at close range. Ho summed up the situation promptly and saw how New Zealand was going to be affected. On his return with the figures of income and expenditure before him, and the knowledge of trade and markets outside the country, lie saw that retrenchment must be the order of the day, if the Dominion was to pull through. The marked drop in the country’s revenue' was so serious that an overhaul of the administrative position was imperative. And he took the public into his confidence and told them very frankly what had to ho done, He wont further, He called Parliament together, and brought down his legislation to moet the extraordinary situation. Ho could not have heen fairer. Had lie been wrong his modest party of twenty-five could have heen turned out of office at once, and someone else placed in power. But the good sense of the House realised that Mr Forbes wms attempting the right thing and doing • the only tiling possible to balance the nation’s Plc.cQunits. And so ho had the confidence of Parliament with him. He did not appear in the guise of a pledge breaker, but lie secured a pledge from the House that it would support him in the task of pulling the country through, and ho is doing it with a minimum of discomfort to the country as a whole. All his policy is not revealed yet, and Mr O’Biien was unfair in .some of his statements wnen attacking the Prime Minister. Mr O’Brien knows that the taxation proposals (which are sure practically to involve increased income tax) are to come down next session. But he gave no credit for that. Instead he endeavoured to play on the cupidity of some people by referring to possible reductions in pensions. Nothing can be done in that direction without the sanction of Parliament, but whatever Mr Forbes proposes will be necessities according to his view, and be will stand or fall on the policy ho brings down. :\lr Forbes is not out for self, party, or class. He is out for New Zealand and its masses, and his mana is giowing, and perhaps that is what Mr O’Brien is not pleased with. Mr Forbes has proved himself where many hoped, if they did not predict, failure, and tney are not too pleased that a bold sane leader of the people Ins risen when the occasion called for safe and spu.pd leadersjrip. But Mr O’Brien lias some contempt for pledges himself. He lmd a good deal to say about Interest payments, and indicated he was prepared to force thorn down by legislation, notwithstanding that the borrower had pledged bis property at . a certain rate, and had used the principal as it suited him. Mr O’Brien , would have no compunction apparently. , in vetoing that solemn contract! So , much for pledge-breaking. As regards . interest rates, it is obvious they must , be governed solely by senility and supply. The State has entered into ' the lending business and by its com- ( petition was responsible in bringing ( down lending rates, but the State is limited in the total it may lend, by its own resources. But it cannot lend money below a recognised trading rate, and do a solvent business. It lias lent generously at as cheap a rate as possible, and that is the most which can be hoped for from any leading institution. Economists have said that “cheap” money tends to create boom times, and in the end is not good for any country. Borrowing on sound lines is the safest line for country or individual, and where business prineipls are departed from it is then that the interest rates prove a burden and difficulty is encountered.