LABOUR PARTY SOLID

Hokitika Guardian, 25 August 1931, Page 2

LABOUR PARTY SOLID

FOR RESTORATION POLICY

CURRENCY MUST BE ADOPTED

By Telegraph—ter Press Association

CHRISTCHURCH, August 22

Discussing the financial situation, the Mayor of Christchurch, Mr D. G. Sullivan, M.P., said that the Labour members were unanimous in a vigorous desire to have initiated a definite policy for the reviewing of trade and the building of primary and secondary industry, The work of reconstruction, he said, must start with the provision of assistance for the farmers and if they were tq be kept on their farms and to obtain fertilizers, seed, stqck, god other requirements. A way to finance them must be found in order that they may maintain production, and through .heir purchases, stimulate the whole economic life. Credit must be made available for every farmer of personal substance and capacity. The Government itself must provide the required credit, by standing behind the banks, the State * Advances Department. the Rural Credits Board, or whatever institution the Government uses as its agent. This country and all countries were at present engaged in the -task of compelling society to adjust itself to the contracted monetary system, with its fearful results in human privation and misery. “This country and all countries are at present engaged in the task of compelling society to adjust itself to a contracted monetary system, with fearful results in human privation and misery and 80,000,000 of unemployed people,” said Mr .Sullivan, “It would be more humane and more sensible to adjust the monetary system to the needs of society per medium of a managed currency, and two economists, whom I personally consulted on the subject, agree that such a managed currency must come, “These two economists agree also with my explanation of why a fall of £9,500,000 in our export values last' year has resulted in the turnover, in a national loss of perhaps £50,000,000, and that it would have been far cheaper for the country to have made up the first loss ; to the farmers and ■kept the money in circulation. I have the highest authority for the correctness of- the views I am expressing, and I am confident that even now, by the adoption of a courageous policy of providing credit with proper safeguards, that we can re-establish our prosperity.” Mr Sullivan stated that he felt it to be inevitable that there would have to be a reduction ol inteiest in internal Government debentures, and probably a further reduction in private interest .rates. The Labour (Party was definitely not favourable to the postponement of the general election, but if the conference would, boldly face the question of reconstruction instead of pursuing a hopeless policy of retrenchment, there would be a possibility of agreement- on other matters. .