AN INTERNAL LOAN

Rotorua Morning Post, Volume 2, Issue 466, 25 February 1933, Page 4

AN INTERNAL LOAN

Although the Government has j so far, skilfully evaded any direet pronouneement with regard to the utilisation of our internal credit it seems likely that a definite statement will be called for in the course of the next few days. Mr. A. M. Samuel has tabled a notice of motion to ask the Prime Minister, straightout if the Government will consider the advisability of immediately raising'an internal loan of £5,000,000 at 3J per cent for expenditure upon reproductive employment. It will he difficult for

Mr. Forbes to get away from a very definite statement of policy upon this most important question, and it is significant that he should be forced to face the issue by one of his own followers. Although Mr. Samuel has been loyal in his vote to the party he has been exceptionally free in his criticism of the Government methods and it will be interesting to see how this "show down" with his leader will develop. The opponents of j the Coalition Government have j freely supported the contention that an internal loan is nece'ssary to save the country' from the disastfous effeets of the depression, but they have failed to accomplish anything by their efforts. A new turn, however, is given to the question when a Coalition supporter calls for a definite expression of opinion from his leader. In support of his question, Mr. Samuel points out :

"The expenditure of this extra ! amount will relieve the unemployI ment position, improve trade, create I a feeling of confidence and optimj ism, will set a rate for the conver- ; sion of loans, and will he a splendid I investment from a Governmental | point of view as this money will flow j through every avenue of taxation inj cluding the wages tax of 5 per cent." Now these are all sound, forcible arguments. They have been advanced before, but not from the same quarter. They are arguments which can claim the support of the great majority of the people of the country and a great | deal will hinge upon Mi\ Forbes' reply. It is quite evident that the Government cannot go on taxing and increasing the burdens of the people, and it is equally evident that it will not be possible to allow the unem1 ployed problem to drift along creating further misei*y and desperation. The legislation of the present session has done nothing beyond piling up further taxation. The exchange rate may

bring temporary benefit to the farmers, but the good effect will he nullified by the increasing cost of living and the further restriction of the purchasing power of the industria! section of the community. It is idle to try to dodge the fact that the position of relief workers is becoming desperate. The Unemployment Board may broadcast platitudes in its annual report and Mr. Forbes may preach about the necessity for courage and sacrifice, but these utterances get us nowhere. The time has come when something de-^ finite must he done to help the unemployed to a more reasonable standard of life and the business community to stand up to the devastating depression of trade. Cuts in wages and extra taxation will only drive us further into the financial mire. The only way out of the temporary trouble in which the country is involved is to make'use of our

own credit and restore a normal condition of trade and employment. There is no need to raise loans in the Old Country and send interest overseas. The necessary credit to stop the financial and industrial rot is within our own borders. Will the Government have the courage to use it? Will Mr. Samuel have the courage to leave a party which will not try and save the country from fuhther depression? The answers should be supplied before the end of the session. %