The Daily News. TUESDAY, OCTOBER 12, 1920. REPATRIATION EXPENDITURE.

Taranaki Daily News, 12 October 1920, Page 4

The Daily News. TUESDAY, OCTOBER 12, 1920. REPATRIATION EXPENDITURE.

While no one in possession of normal faculties can controvert the statement made by Mr. Massey on Friday afternoon, that members were, he thought, agreed on the principle of helping returned soldiers, it does not at all follow

that the methods adopted are above criticism. Not only members of Parliament, but the whole country, is at one-in this great work, and while, no matter how great the outlay involved, not a fraction of the total will be grudged, there is a strong feeling that good value should be obtained for the expenditure and the returned men protected from exploitation, or allowed to undertake burdens that may become intolerable when land and produce values decline. The process of repatriation has already cost nearly twentythree millions, an appreciable portion of which has done a great deal of harm by creating a boom in land and house property, whereby much profit has accrued to speculators at the expense of the community, all because the Government was not prepared with a sound and well-defined policy for acquiring the necessary land and controlling the commodities required for the construction of dwellings. The costly blunders of the past are irretrievable, but the lessons they inculcate demand serious attention. Besides the twenty-three millions already spent in repatriating about one-half of the discharged soldiers, it is now proposed to raise a further loan of six millions, to which the .Piemier hopes to add another million, so that

by the end of the current financial year repatriation will have cost at least thirty millions, with the prospect of a still further large expenditure to come, so that the imperative necessity for exercising strict business methods in future is obvious. The new Loan Bill fixes the rate of interest at five and a-half per cent,, the period of the loan being either ten or fifteen years. Admitting that six millions is not a large amount for the people of the Dominion to provide, in view of the total deposits now held by the banks, it is by no means sure that the rate offered will tempt investors, and it is significant that the Government is acquiring power under the Bill to buy up debentures offering below par, a eourse that would seem to imply a depreciation of which the Government will take advantage. This, of course, is business, but, is hardly calculated to induce a. rush of subscribers to the 10an... Mr. Massey admits that secondary industries should be encouraged, hut he considers the most New Zealand can do in the direction of manufacturing for the next, quarter of a century will be to supply local requirements. It is quite right that our primary industries should be exploited for all they are worth, but the time has arrived when this development should be accompanied by the establishment of secondary, industries in .

order, at least, to reap the full advantage of all by-products of i the primary industries, in respect ;of which there is at present a I very heavy loss that is contrary I to sound economic principles. The [success of the scheme for settling i discharged soldiers should not be i measured by the money expenditure, but by the benefits it con-j jfers on those who have served I / their country to such good purpose. Wisely and prudently administered, the scheme must prove a valuable asset for all time. It is that aspect of the question which should induce subscriptions to the loan. The compulsory provision has been robbed of all hardship by confining the amount to one year's land and income tax. It is early to boast of the greatness of the country's record in soldier settlement. Without doubt there has been considerable expenditure, and a large measure of credit is due for the whole-hearted way in which the community has endorsed the settlement scheme. Time alone can prove its success, but judging from the way in which the men are meeting their obligations, there is every reason to expect it will not be their fault if the scheme fails to come up to expectations.

COOK ISLANDS CONTROL. The debate in the House on Wednesday concerning the control of the Cook Islands served a useful purpose. It removed certain misconceptions, called attention to the trend of trade, and emphasised the need of a wise policy in developing the resources of the islands The only matter in which these Islands have anything in common with Samoa is that both are under the jurisdiction of the i Sew Zealand Government. It may seem ■ ft matter of small importance whether Ihe Cook Islands should be under the tontrol of the Minister of External Affairs or the Native Minister, but Use nearer the administration approaches to a thorough understanding of the natives, their manners and customs, as well as the matters that tend to their welfare, Ihe more likely is that administration to be successful, and that should be the main consideration. The natives of the Cook Islands are a branch of the Maori race, and this fact alone shouli suffice to justify their being placed under the wing of the Native Minister. The remark made by Mr. (i. Witty that "he did not blame Dr. Pomare so much, because he was not a Minister with full power," was Without point or significance, for in matters of policy it is Cabinet, not a single Minister, with wlioiu, the derision rests. At the same time the adrice of Dr. Pomare would necessarily carry weight, and as he understands'the natives and their requirements better than any other Minister, it is only right his views should bo seriously entertained. There is not the slightest question of dual authority, and Mr. Masscy made it perfectly clear that, although Dr. Pomare has not been able to give entire satisfaction, owing to the conflicting interests of the natives and traders, yet he had greatly improved affairs in the Islands. It is the question of trade that plays an important part in the welfare of the Natives. If America is getting the best of the trade it is no fault of the Minister, but of the traders of the Dominion, and their lack of enterprise in catering for both imports and exports. The Government is doing what it can in this direction, and recognises there is much to be done, but it cannot force trade into the arms of the Dominion merchants without setting up fiscal barriers that would not be tolerated for a moment, neither would it be politic to institute a system of State subsidies. Dr. Pomare quoted statistics to show that the trade of the Islands had materially increased, the imports having risen from £27.03.1 in 1(102 to £142,000 in 1010, and the exports from in £l-27,000. Naturally the process of development is slow, and difficulties have to be met. Competition is necessary, and if the trade is to be diverted to the Dominion more activity and enterprise will have to be shown than hitherto. The passing of the Bill was a Step in the right direction.