ELECTION

Wairarapa Times-Age, 13 October 1938, Page 7

ELECTION

MR HAMILTON'S j ADDRi \ RIVAL ECONOMIC , GREAT ENTHUSIASM : (By Telegraph—Press Associati WELLINGTON, This r The chief event in the general <_■ tion campaign yesterday was t; r broadcast address delivered by the leader of the National Party, the Hon Adam Hamilton, at St Francis Hall, Wellington. Mr Hamilton redefined the most important issue for the election as whether the country was going to abandon the economic system that had served it so well, private enterprise, for a system of State Socialism. "This is a real fight,” he said; "a straightout fight between the National interests and the blight of Socialism.” Mr Hamilton described the tactics of the Prime Minister in his speech in Auckland in publicly charging the National Party with authorship of the chain letter on religion as reprehensible, and said once more that it was in no way inspired nor condoned by the National Party. He also referred to the “adroit side-stepping by the. Prime Minister and his colleagues” on the subject of the country quota, and said the electors were entitled to a straight answer to this point. Mr Hamilton was accorded a tumultuous reception. The hall was crowded and in the street were hundreds of people who heard the address through loudspeakers. So great was the enthusiasm that on several occasipns Mr Hamilton smilingly appealed to the audience to allow him to complete his remarks in the time allocated. His confident declaration that on Saturday next socialism would receive its death thrust was followed :by the whole aucV ience rising as one"’and cheering him io the echo. THE VITAL ISSUE “If you want to retain the right to own your own home, or own your own farm, or own and control‘‘your own business, or to lay by some savings for your own need, then I say vote National,” Mr Hamilton observed in the course of his address. “If you want New Zealand to be handed over to State ownership and State control, then do so with a full sense of the consequences. That is the vital issue before the electors today, and upon ’which they are asked to give a decision on Saturday. “On Labour’s insulation plan depends,Tne success of the Government’s 'guaranteed price scheme and will depend the success of its social security scheme,” Mr Hamilton said. “Unless, as part and parcel of its orthodox financing, it.’can be some mysterious means create additional income, then its two-iiiain policy measures, guaranteed prices and social security, will -fail. “The guaranteed price scheme has already failed, because Mr Nash was not prepared so soon before the election to admit he had only an overdraft at the Reserve Bank out -of -which to finance a deficit, and a deficit was certain if- the pripes tq be paid .werm.those of the coinmitte'e. r “ ""“Similarly the social security scheme ’partially collapse unless a moneincome remedy can be found gainst falling prices. Monetary income remedy is particularly mentioned because the real cost of our debt service would increase with more produce required to service it, and as a result without a marked increase in production our real income would inevitably fall. INFLATIONARY SPENDING • “The Government’s policy of inflationary' spending and high taxation has boosted the resulting buoyant national income to boom proportions, with the inevitable result that'' jt has already seriously damaged,, the sound financial position it inherited. Overspending of our real national income could come only from our national ready cash, the London funds, and they have reduced rapidly, so that today they are at a,. dangerously low level, partly as a result of Government overspending and partly as a result of 'the flight of capital overseas. If the Labour Government is returned it will have either to peg the sterling exchange rate or materially to increase it. - '■ “The only sure way of insulation is to build up reserves during good times so as to cushion the shock of falling prices during depression times. This is what Sweden is doing. They are economically' the soundest country in the world. They have been building up reserves nationally and in their individual business units during these past prosperous years in order that they can call on these resources in depression times. If this is necessary for Sweden, a creditor nation, how much more it is necessary for New Zealand, a debtor nation, with interest to pay overseas, good times and bad alike. The National Party, when returned to power, pledges itself to do all in its power to stabilise costs and accordingly the value of our £N.Z. It recognises that on this depends our economic and social security, and appeals to all classes for their support in this essential objective. “The alternative is the grave danger of accelerated inflation—the gravest economic danger which has ever faced this country.”