DEMOCRATIC LABOUR

Wairarapa Times-Age, 25 October 1940, Page 7

DEMOCRATIC LABOUR

CONTROL OF CURRENCY AND CREDIT IN INTERESTS OF PEOPLE. ADDRESS BY MR BARNARD. ("Times-Age” Special.) “In the future New Zealand's destiny will probably be determined in the Pacific rather than in Europe. Democratic Labour believes in a policy of better understanding and closer cooperation with the U.S.A..’’ stated Mr W. E. Barnard. M.P. for Napier, when speaking on behalf of the Democratic Labour Party at Carterton last night. The Mayor, Mr D. L. Taverner, presided over a large attendance. "At the outset I wish to explain that I will not give an ordinary political address, for the reason that I am still the Speaker for the House and the session for this year has not been concluded. but simply adjourned,” observed Mi- Barnard. "I feel that I must impose a self denying ordinance while the House is in session." “Democratic Labour." said Mr Barnard, “is pledged to the principles of democracy so that no political dictator may arise supreme above the principle of his party; so that no union boss may destroy or suspend the principles of a political party or industrial union; so that representatives of the people in Parliament may keep faith with them.” Monetary Policy. ; "Democratic Labour stands for complete control of currency and credit in the interests of the people as a whole," Mr Barnard added. There were three ways of financing a war, or a country at peace, he stated. They were (a) taxation; (b) borrowing; (c) using the public credit. National expenditure in war time could not be met by taxation alone. Borrowing at interest, as the British and New Zealand Governments were doing meant c vastly increased debt in perpetuity—a debt so huge it could never be paid off. The use of public credit did not moan merely the use of the printing press and paper. As with taxation there were principles to be observed, and limits' not to be exceeded. Real wealth meant production of goods and services. The value of bank notes and securities depended on production. actual and potential. The problem was two-fold: (1) to keep the issue of money and credit in step with production, and (2) do it without piling of debt at interest. Mr Barnard quoted the Housing Scheme as an example of using' public credit. through the Reserve Bank, to create an asset, and an addition to the people’s comfort. "I venture to suggest," he said, "that the indictment of the present system is being brought home so convincingly as we press on with the war that a stage will be reached when no politician will be tolerated in this country who will not embark on the great adventure of putting a stop to the vicious policy of piling up a debt which can never be repaid. Democratic Labour makes ready to engage in this liberating enterprise." Serious inflation must, be avoided, said Mr Barnard. A mere increase of wages and salaries was no remedy, because both entered into costs and tended to send costs sky-rocketing. Side by side with a State controlled money and credit policy. Democratic Labour held that, a better policy for the stabilisation of prices was urgently required. New Zealand’s War Effort. “We cannot afford to follow blindly and unthinkingly the lead of Britain whose leaders over the past twenty years have taken the wrong course rather than the right one." Mr Barnard continued, “Even Mr Churchill great war leader, had committed sad blunders. While they pressed on with the war they must think and plan to meet the problems that become evident while the war raged. Now was the time to study and plan to meet the

vast changes in our economy and society that were surely coming. Unless we could rise to the height of a tremendous opportunity we might win the war but lose the peace as we did some twenty years ago. Mr Barnard went on to cover a wide field, touching on Social Security, population problems, the need of new industries, and the prevention of erosion. A vote of thanks was passed to Mr Barnard and a motion of confidence in the party was carried.