PATERNAL RULE

Hokitika Guardian, 21 October 1931, Page 8

PATERNAL RULE

STATE IN NEW ZEALAND. AMERICAN CRITIC. INDIVIDUALISM DESTROYED. “The paternalism of the New Zealand Governn ent has practically destroyed healthy competition and individual initiative in many activities,” said Mr Oscar F. Goddard, director of the Hawaii Bureau of Government Research speaking at Honolulu on his return from a holiday tour of the Dominion. (He added that this condition in New Zealand had resulted in . far less political activity among Government employees than in Hawaii.

Mr Goddard said he had returned home with a warm admiration for tin people of New Zealand and a wholesome respect for the manner in which they were facing their share of the world-wide business depression. The Government, supposed to be democratic, was really socialistic to the point of paternalism. It operated all the public utilities—sometimes well, and sometimes not so well—and assumed other functions which in the United States depended upon individual effort. The result was that the people were very dependent upon the Government in their relations between individuals, and even expected the Government to do their thinking for them jn matters of foreign commerce, ULTRA-CONSERVATISM A FACTOR. “The, New, Zealanders; are splendid producers, but salesmanship is not one of their accomplishments,” Mr Goddard said. “The result is that when they meet sales resistance in one direction they simply turn to another. As an example, since the tariff was increased by the United States and .C’anad" against dairy products, they have failed to do anything constructive about it. They complained, and then turned to the English markets. “If did not occur to them, apparently, to overcome the tariff handicap by salesmanship based on quality. And J think that New Zealand need not take a back seat to any country on the quality of its dairy and live stork products. “Ultra-Conservatism is partly at fault. The New Zealand producer Is

not likely quickly to see the advantage of putting up his butter in quarterpound packages,..,? wrapping his bread in oiled paper, or selling cheese in convenient sizes. Tariff is blamed Hu many things in New Zealand, and to a New Zealander ‘tariff >s. a charge made by other countries against b s pioducts. Iljs own tariff is not spoken of as such, but-iis known as a ‘duty,’ and from this a large part of the Government's revenue is derived.’ BANKERS’ METHODS CRITICISED. Mr -Goddard said he was paituularly impressed with the activities of the agricultuial', commercial and highways departments, of the New Zealand Government, whose energies were bent pi imarily to aid the farmer and his pioduce. Such a thing as taxing the rural community for city expenses, as was done in the United States for sewerage . and fire fighting, was unknown in New Zealand. Leaping on the Government as they did, however, the people had developed few leaders outside the Government, and when they were faced with a crisis there was none to show the way out. “And 'there is no one to finance them when they need money,” Mr Goddard added. “Without any intention to reflect upon most excellent genthnen, 1 inust say that New Zealand’s bankers would not do in the United States. Under their methods the country would stagnate. They do not believe in character banking, but insist upon what they, consider gilt-edged securities for every loan. Sometimes these securities are not half so,,‘gilt-edged as character loans would :be. 'lt is, however, a fine land, inlwcited by a fine people, and I hope to visit it again, if thej do not misunderstand my comments on their country.”