DR. LISTON’S QUERY

Hokitika Guardian, 23 June 1933, Page 5

DR. LISTON’S QUERY

OF GOVT. POLICY

CREDIT EXTENSION URGED.

(Per Press Association—Copyright).

AUCKLAND, June 23

‘‘As one closely in touch with the needs of ever growing hardships of the large section of the ordinary people, 1 feel your worship has rendered uisJiiet service to the country,’ l says Dr. Liston, Roman Catholic Bishop of Auckland, in a. letter to the Mayor (MY Hutchison), congratulating him on raising, by means of a recent deputation vo the Hon. J. G. Coates “a question of first rate importance.”

“We have reached in the third year of the depression tiie exhaustion point of deflation,” says Dr. Liston. “Numerous expedients have been tried, but the depression is not ending itself. Hitherto, people have shewn endurance and courage beyond praise, and are ready, if needs be, for greater eacl ifices, but to-day the spirit of despondence prevails almost everywhere. “Your Worship has asked the country to face these realities, and boldly try another policy. The issue is a clear one.”

Discussing the policy of the Govern, ment, Dr. Liston asks why it should be necessary to balance the budget year by year, If it is dangerous to leave the budget, unbalanced when price* are rising is it not equally dangerous to' seek at all costs to balance it when prices are falling? To balance the budget sounds well, but the requirements of a country vary with peace and war booms and depressions, and the budget should vary with them.; He agree, 3 in these circumstances that “We will go in fo r a policy of borrowing. Sound borrowing is justified by the natural resources of the country and the spirit of people. If we are going to help' ourselves toward the beginnings of economic recovery, and are not to be content to wait on the outside world it seems to me that the only means of recreating tte purchasing power of people is througha reasonably large extension of, our national credit for useful public works, and especially for land- development. “Parliament can do this, as. Tout Worship has proposed, ■bv the,, issue of bonds, and there is sufficient money in the country itself to buy these bonds. There is nr, doubt, of the disadvantage, in such. a large issue .of bonds, but these are, it seems tc manv of us to touch with the liven of the people, trifTimv in comparison with the evi results' of the policy of drift and inaction ~ f WS#*?**® i