RISING SOCIALISM

Waikato Times, Volume 121, Issue 20281, 25 August 1937, Page 8

RISING SOCIALISM

GRADUAL CONVERSION LABOUR PARTY’S INTENTIONS CURRENCY & INDUSTRY CONTROL Claiming that the policy of the Labour Party so far put into effect by legislation had been a fulfilment of an intention gradually to socialise New Zealand, Mr O. C. Mazengarb, of Wellington, in the course of an address in the Theatre Royal last evening, in support of the National Party, traced the main aims of the Government and expressed the opinion that a pursuit of such ideals would be dangerous to the welfare of the country. “The Government had not long assumed office before some of the big business men started making overtures to the Cabinet leaders,” stated Mr Mazengarb. “There are always people who are willing to change their political allegiance overnight if they can obtain an immediate advantage by doing so. I don’t know whether these men have ensnared the Government or whether the Cabinet has enmeshed them. The Coalition Government fell through flirting with Socialism, and the reputation of the Labour Ministry has been greatly diminished among the rank and file of the people by its coquetting with some of the big men of capitaiism.

"But the fact is that the Government needs the assistance of business men because it is unable to put its socialistic scheme into operation without them,” continued Mr Mazengarb. “It has therefore decided to seek th#Jr assistance and to proceed cautiously and steadily towards the realisation of its dream of a co-operative commonwealth. Government’s Action “The Government's first step was to obtain the goodwill of the wageearning and salaried class by restoring cuts and Increasing wages. A Government must have the voting support of the majority of the people and the present Government at once sought to retain that support by increasing nominal wages. The next step was to obtain control of currency and credit by amending the Reserve Bank Act and by passing a Finance Bill which gave it authority to borrow as no Government had ever borrowed before. Tiie third step was to assume control of certain "key” industries and to pass the Industrial Efficiency Act, which provided for the licensing of others in anticipation of their being taken over also when the moment arrived for the further extension of socialistic control.

“There can be no doubt about the real policy of the Government and its ultimate aim. lam amazed that so many people have not yet opened their eyes to see it,” said Mr Mazengarb. "To begin with, nothing could be more frank and plain than the opening statement in Labour’s policy throughout many years, both before and after it obtained representation in Parliament—the socialisation of the means of production, distribution and exchange,” said the speaker, quoting statements of the Hon. P. Fraser and Mr E. J. Howard, M.P., which were made in Parliament. “When these men came into office they did not put into practice what they had preached,” said Mr Mazengarb, saying that it was clear that the Government’s policy was the development of Socialism and the abolition of Parliament and the substitution of control by industry, with an industrial Parliament. Cuts and Wage Increases. Examining the steps which the Government had already taken on the road to Socialism, Mr Mazengarb first referred to the restoration of “cuts” and Increase in wages, saying that the State had an inherent right to 6iy what it should pay to its own employees. Nearly half a century ago in New Zealand it went further, and properly so, and established a Com*t of Arbitration to determine the wages and conditions of employment in all industries established for pecuniary gain. But by the Finance Act of 1936 Parliament went further still and established the dangerous precedent of determining certain artificial ‘ncreases In pay without reference to the Court. That these increases were granted was not so much due to the willingpess of employers to obey the law as to the fact that times were better, and in most instances the increases would have been granted irre -

spective of Parliamentary action. But although wage-earners praised the action of the Government at the tim a , they were now seeing that the benefits they secured were largely illusory and were cancelled out hv an increase in the cost of living. Particularly was this the case with the more skilled workers, who had already obtained increases in pay and who found that the real effect of a general artificial increase all round was to reduce them to the level of the less efficient, claimed the speaker.

“The Prime Minister assured the workers that he would not allow the cost of living to rise, which would destroy the benefit of increased buying power. But. in spile of the passage of a high-sounding Anti-Profiteering Act, with its special magistrates and big fines, prices have gone up all round, and there have not been any prosecutions,” lie said. Currency Policy. "The Prime Minister lias discovered tli,at he might as well try to push ba<*k the waters of the ocean with a broom as try to prevent an increase in prices with 'this ‘big stick.’ ” Criticising the Government’s policy with regard lo currency, credit and public borrowing, Mr Mazengarb said that prior to the elections Mr Savage declared against “borrowing" and “increased taxation.” “On November 5, 1935. in the Wellington Town Hail, Mr Savage stated: ‘Borrowing means debt in perpetuity, which has already

reached unmanageable proportions.’ Yet Labour’s first Finance Bill gave the Government power to borrow £6,000,000 for public works, £2,000.000 for highways, and £5,000.000 for housing, making a ' total of £13.000,000 extra debt in perpetuity,’ which had already, »in Mr Savage’s view, reached unmanageable proportions,” said the speaker. “In the same speech Mr Savage said: ’Further taxation is out of the question.’ Mr Semple put it more picturesquely, as he always does, by saying: ‘Taxation has reached the dizzy limit..’ But instead of carrying out *ts promise to abolish the sales tax an 1 reduce taxation the * Labour Party loaded the taxpayers with another £11.000,000 In taxation. In 1935 general taxation amounted to £15,605,206, and in 1936-37 it was £26,940,638 —a total increase of £11,335,638. In Australia taxation was much reduced last year. In New Zealand it was greatly Increased,” he added. Use of Private Savings. “The Prime Minister soon after the election condemned thrift as an antiquated notion. But he does not, I know, hesitate to use the funds which Ihe thrifty have placed In the Post Office Savings Bank and the Government Insurance Department. He does not hesitate to borrow, through the Treasury and the Reserve Bank, the money which the thrifty have saved. A voice: Why shouldn’t he? “Why shouldn’t he? I’ll tell you why. Because It Is not honest to take what is not your own,” replied Mr Mazengarb. Continuing, the speaker said that there were three sources of supply available to the Government for tiie financing of its schemes —namely, taxation. orthodox borrowing, and the use of the public credit, which was a euphemism for inflation of the currency. The Government, he claimed, had so far declined to tell the people just how much of the money was “borrowed.” how much use was being made of the “public credit,” and what was the rate of interest it was paying on Ihe funds which the thrifty have entrusted to the rare of State institutions. But he did know that the Government was spending freely, that the money was not dropping from the skies, and that what was not hebg paid in taxation now would have tc ye paid somehow or other later on. Transport Act Another Step. “ Under the Transport Act, motor services arc being taken over. Firms which have been giving a satisfactory service to the public for years, and a service which Ihe public would not have enjoyed hut for the initiative and enterprise of these firms, arc being given their running shoes. State conIrol of finance, of transport, of building, with State control of medical services in the oiling, and we are well on the way to the stage when the Government will be able to kick away the few’ remaining obstacles to Stale ownership of all Ihe means of production, distribution and exchange. “The Government will he in great difficulties if it attempts any issue of false money. “If anybody should say: ‘Oh. I vot~d for Labour, but 1 didn’t vote for that,’ Ihe Labour Party can honestly and fairly reply: 'We told you so; complete Socialism has been our expressed intention from the very beginning,*' said Mr Mazengarb in conclusion.