Forty Years a Liberal

Sun (Auckland), Volume III, Issue 648, 27 April 1929, Page 2

Forty Years a Liberal

LIFE STORY OF SIR JOSEPH WARD From Telegraph Messenger to Prime Minister By K. A. LOUGHNAN (Copyright— Sun Feature Service) ENTERING Parliament in ISS7, Sir Joseph Ward is a veteran among contemporary statesmen and his career is traced and described in this series of articles by R. \ Lotiglinan for readers of The Sun. Xo. XXIX.

In 1906 was begun the great financial reform, which put into practice the theory of the imperative necessity for a sinking fund for the whole colonial indebtedness. Up to this time many men were apailed by the tact that no adequate provision had been made for the eventual extinction of the public debt. The expedient soothing such fears as were expressed was renewal. “When the bonds became due, what?” anxious inquirers were asking all over the country. The answer invariably was “renew them, of course.” “Are we to go on borrowing for ever with that prospect of repayment?” was a question heard every day everywhere. Many asked, but few thought any more about it. Among the few was the new Prime Minister, and his thinking was to some purpose, for he got an Act passed in 1906, his first year, making a sinking fund compulsory in the case of loans raised for war and defence. This small beginning led, four years later, to the Act in 1910. This is known as “The Public Debt Extinction Act.” Under its provisions the drift toward the gult' of renewal as the only possible repayment. was stopped, and Micawberism gave way to the principle of thrifty repayment, without which no borrowing policy can be sound. DEBT EXTINCTION In the beginning, i.e., at the start of the big forward policy of immigration and public w T orks, the idea of providing repayment of loans by regular contributions to a singking fund was much discussed. A large section of public opinion insisted on the vital necessity of a sinking fund, and there was considerable controversy, both in Parliament and outside. Ultimately the idea of a sinking fund for a country committed to a long period of annual loans came to be regarded as absurd. But believers in the doctrine that it is not absurd to pay your just debts held to their faith nevertheless. Sir Joseph was one of them, and being gifted with long sight, strong determination and an unfailing power of initiative, he brought about the great reform of eventual debt extinction. He found that the reform had become a very formidable problem, and he solved it with his fertility of resource. A small loan of the early days had been issued subject to a sinking fund liability, and the sinking fund had, by the year 1910, accumulated to the amount of the loan —one million. Sir Joseph decided to renew that loan and use its accumulated sinking fund as the nucleus of a sinking fund for the accumulated millions of the public debt, and thus for the small addition of £II,OOO to the annual overhead charges the Act of 1910 brought the end of the public debt into view-, the term being 70 years. The Micawber drift was stopped and renewal became the controlled handmaid of salutary reform. This strikingly successful policy met with some ridicule in Parliament, and outside, and very considerable approval on the Loudon Stock Exchange. The fact is prominently attested by the declaration now made by the New Zealand Treasury in the prospectus of every loan offered to the markets that the country bas a sinking fund in full and successful operation. There is much talk of Sir Josepn as an able financier, but this policy proves him to bo a sound, as well as able, financier. It w-ould be an unpardonable exaggeration to say that the working finance of New Zealand was ever wholly Micawberish. Nevertheless, It is true that up to 1910 the financial policy was tinged w-ith the Micawberism that depends entirely on renewals for the repayment of loans. That he removed that reproach from the practical financial policy of our country is one of the great public services standing to the credit of Sir Joseph Ward. LIBERAL MEASURES To get back to 1906. In that year the policy of the Ward Cabinet improved the public security against fire by the addition of fire boards, thereby improving the organisation of resistance. It gave us the great improvement in the criminal law- of the indeterminate sentence which now has over 20 years of justifying experience behind it. For the first time in our history la 7 save to the local bodies the right, long wanted and desired, of representation by assessors in the Assessment Courts held under the Act for the Government valuation of land Mnment°° n *“ lhe syßlem local govIn the same year provision was made ‘ a . w , for the inspection of private even tt' 8 ” obvious reform, because . T V best institutions— and the private hospital has the right to be so classed—require the help of the overhaul that keeps tight the screws of administration. 8 ™ Tlle sc °Pe of the Workers’ Dwelnnfth A 9 ’Widened in this year, and the borrowers under the State Adrehafe system5 ystem were encouraged with a rebate for prompt payment of iuter- , Tb ° workers obtained increased facihUes for getting homes for themHon e oV n® Chlef whlch is th “ reduction of the initial deposit to £lo—th« greatest housing scheme it has been called, ,n the world. We need not go at ° superlatives the superlative always does more harm than good. But done dep ?; rtur ® has unquestionably done much good to many people. teacw lß yea ?’ the superannuation of teachers was improved. The principle the miMb exte ? ded ‘o this branch of Of « E f^ lc * m 1905 on the model 1 the first railway superannuation,

and on the inspiration of its It was amended in directions sucker '.' by experience. In 1907 the Customs tariff waj o . = . hauled and altered—nearly article of common necessity |w made duty free, the consequence S' a reduction in Customs duties '"l £ 400,000. The main reform of this session * the extension of the superanauu■*' system to the whole public service 7 the lines of the railway jeruo example, with improvements suggw,.', by- the railway experience. This a!;!a vigorous and interesting debat’ ■ rarliament. Parliament respondins w the provident spirit of tho Pri B . Minister. Young New Zealand came in ; OT beneficial treatment this, year, with th. passing of the Arts for’the protect,,.,’ of infant life, and the better care of children mentally defective. The settlement of land was funhe> encouraged by the addition to the Ltd Act of the renewable lease, of 33 ~J 66 years, with a better security 0 ; tenure, and advantage was tafcen at the Amending Act to provide , national endowment for the old n, pensions and for education—a raeas ar . the benefit of which will be appw ciated more fully as the waste lands of the Crown become more valuay, through the increase in the population of the Dominion. In 190 S the Manawatu railway wis acquired, as hereinbefore uarra , with increased general respect lor ft, Prime Minister. The superannuatiii system was extended to the loai bodies of the Dominion, at their dicretion. muoh to the satisfaction of many employees of those institutions. The old age pension system wa? ?e] larged by increasing the home alio*, ance from £3OO to £650, thereby benefiting numbers of people. A Workers’ Compensation Aet *a passed. It was regarded by tbs workers of the Dominion as the mw; advanced in the world, and that hit) opinion has undergone no change sine In 1909 the finance of land settle ment had attention. The death duties were increased id the case of large estates, with special allowance for widows, and were sbob ished in the case of small estates. Hospitals and charitable institution were given the privilege of electing their governing board and benefited bj better subjection to control. Eipe lence has amply justified the reform, and points the way to further is provement. HYDRO-ELECTRIC, SYSTEM In this year was inaugurated tie great liydro-electric system of (be Dominion, w-ith adequate financial pro, vision and managing power divided suitably between the Government and local bodies. There was a good deal of opposition at the outset, based sa objections of scientific unsuitabilit imperfections of preparation, and nst ness with which the epithet “*iH cat” was sometimes found attache But the Parliamentary and other ■-> cussious showed that the scheme to scientifically correct, and arracH with great care and prudence, that iu beneficial character was absolute, tht the country would reap great refers, and that public opinion was heavy is support. In these debates the Pfcl Minister, Sir Joseph Ward, and “ Public Works Minister, the Hon. eric McKenzie, showed ability, kno 3 ■ ledge and driving power greatly ” their credit. Nineteen years of wortri have proved their predictions up to tbs hilt, and it is now recognised that: better investment of public money to development purposes has ever bees made in this Dominion, better in ' v " objective and in practical applfc*'- 0 - It is another great public sen-; added to the long roll of Sir Jose? Ward’s services to the DominionIn this year direct election :■ members w r as given to the HarXBoards of the Dominion, and this vation has received the endorser'usually given by experience to Ward forward policies. MILITARY TRAINING During this period, in the year 9 the Ward Cabinet with the eorttiaU--and co-operation of the Oppose . placed the Act of Compulsory M _ ’ Service on the Statute Book. ■? ' agreed all round that the vo.M . system, which had done service in its day, was not for the defence of the country. ' sides felt that the duty of every a ■■ to take part fitly in the defence e _ country should be enforced by debates on the Prime (he was also Minister of DebT the time) were interesting ana ■- ongh. Sir James Allen dist.ingn’-'"* himself by the assiduity and awn his support from the Oppo ■ Benches. After the passing of id the business of making an annorganised. Lord Kitchener cam the Government invitation and mw guiding report. Colonel Godley ? pointed to the command, and ness of training and equip®*® established on the best haam - devisable. Six years later the , sation proved itself of coas _ value in the Great War. 4° _ ciency was due the unfailing ity with which the Minister e of that time, Sir James All®. the numbers and military val New- Zealand contingents nur u"’’l memorable years of war. Ly did great work in that time. If . : a military reputation second made in the tremendous c That they owed the efficienr. ... military powers to the established by the Ward Cam contestable. , .1 li* The year 1911 saw the end .y----remarkable Prime >finlstert J(l . s The Ward Government suffer • landslide, such as ° ver * B or '7 Atkinson Government in 1- * :■ the weight that swept met * , | ernment out of office In 19-°. back reducing its working P° majority of one. , >f i I (To be Continued on Mon t Copies of previous SUN containing "The V, 1 ! j Joseph. VTard" may he ° hta !!?gg :■ plication to the Publisher* P.O. Box 630 , Auckland. \ ,