LABOUR’S FINANCE POLICY

Manawatu Times, Volume 64, Issue 307, 29 December 1939, Page 8

LABOUR’S FINANCE POLICY

Dr. McMillan’s Concern Surprise at the attitude of the Standard, the official Labour newspaper, with respect to the nationalisation of the Bank of New Zealand and concern about some of the newer interpretations of the party’s objective were expressed by Dr. D. G. McMillan, M.P., in an interview in Dunedin. Commenting first upon an article In the Standard dealing with the nationalisation of the Bank of New Zealand, Dr. McMillan said that he was very surprised at the editor’s statement that the Labour Party did not stand for the nationalisation of the Bank of New Zealand. The late Mr H. E. Holland, he added, had advocated it for shears, and anyone ac- i quainted* with the historic policy of the Labour Party knew of its long- j continued advocacy of this step. Dr. McMillan went on to express serious concern about some of the newer interpretations of the party’s objective. “Take the conscription of I wealth for example,” he said. Although the party had on occasion during the last war advocated equality of remuneration, that was additional to and separate from its conscription of wealth plank, which figured so prominently. “Anyone familiar with the attitude and statements of Labour leaders during the last war and with the historic policy of the party,” he added, “knows that by conscription of wealth was meant a capital levy. I am very concerned to-day to see the term conscription of wealth interpreted to mean a wage and salary cut. Bring the soldiers' wages up to that of the rest of the community by all means, but any endeavour drastically to cut wages would produce economic chaos. “We have the goods and the productive capacity, and nothing is to be gained by denying the people sufficient purchasing power to buy their own production. We saw the evil effects of wage cuts a few years ago. Wage cuts and deflationary policies are even more injurious in time of war than In peace time. “The people who would benefit by this new interpretation of the meaning of conscription of wealth,” Dr. McMillan continued, “would be the wealthy people who would avoid the threat of a capital levy (a 1 per cent, capital levy with an exemption for the first £SOO would provide at least £ 5-million), maintain their eccumulated wealth intact, and have its real value increased enormously by the accompanying deflation. “If this new interpretation of the term conscription of wealth is adopted by the Government it will receive the wholehearted support of the wealthy, who will look to it to dull the workers' enthusiasm for the conscription ef 7 wealth.”