DOMINION’S EXPORTS

Manawatu Standard, Volume LIII, Issue 23, 23 December 1932, Page 4

DOMINION’S EXPORTS

SUGGESTED BOUNTIES. CARTERTON, Dec. 22. In the event of the payment of bounties to relieve the Dominion’s export industries, subsidies on overseas shipping freights were suggested as the most satisfactory form of assistance, by Hon. A. D. McLeod, M.P. for Wairarapa, in a public address this evening Air McLeod stated that the Parliamentary group with which he was associated had given careful consideration to the question of bounties. It was felt that borrowing to par bounties was most unsound, and that, unless bounties could Ire paid out of revenue in some way, it only meant the postponement of an inevitable crash. Reference was made bv Air McLeod to bis recent statement *<hat right at the root of the farmers’ difficulties in New Zealand was the fact that close upon £200.000.000 sterling of national and local body overseas debts had I IOA n 111 fM I rrfu] <I f 1 flint f l,n a-w-» n .. 4-

overseas borrowings ceased, practically the whole of the interest on that immense overseas indebtedness had to be met from exported farm produce. Since making that statement, lie had received letters from l>oth friends and critics, pointing out that Britain ( bad been generous, seeing that a year iof war debt obligations had been waived, and a further year not asked for. That was quite true, and evidence was not wanting that Britain would continue to act generously provided New Zealand did its part. \\ hatever the cause or reason for Britain going off gold, the immediate i effect was that it put new life in her ' exporting industries, and saved Brit- ( ish wage workers from further drastic I cuts, said Air AlcLeod. It also had|< the effect of reducing in gold values:' the incomes of British internal ilives- <

tors by 25 ]>er cent, to 30 per cent. Again, on top of that great cut in go'd values, holders of over £2.000,000.000 worth of internal British .securities voluntarily converted, at a further cut of just on 30 per cent., interest return. British people had undoubtedly made great sacrifices, and the responsible British Press and people had not blamed or complained of one section of the people casting its responsibilities upon other sections. Had the responsible Press and people of New Zealand done the same? In many instances tliev had not.

WORK OF FARAIERS. The cry was that exporting farmers had over mortgaged, and now were attempting to throw their own created responsibilities on the shoulders of others. In many quarters the fact was still not recognised that exports of farm produce were keeping New Zealand from certain national default, and that farmers were doing their best to keep up the volume and quality of the exports, while in the mass they themselves personally were facing insolvency.

Mr AlcLeod said he was fighting on behalf of farm produce exporting industries not because he was a farmer himself, or because he believed that farmers as a class should have special treatment. He was doing so because he honestly felt certain that in New Zealand, if the position of exporting farm industries could not early he improved, that of everyone in the country would continue to get worse.

CAPITALISTIC SYSTEM. Tire capitalistic system, which after all was yet the only known system which gave opportunity for profit in and by industry, was well worth preserving. Its preservation throughout the world to-day rested on the l degree of sacrifice those possessed of monetary capital were prepared to make. Britain to-day was giving the world a splendid and inspiring lead, and if New Zealand’s people were prepared to follow her lead, brighter days were not far distant from all. A writer of no mean authority has recently said that the greatest breeders of Socialism and Communism today were those possessed of monetary capital who did not realise to act lip to their responsibilities. This same thought was in evidence among the leading men of Britain, anxious to preserve the capitalistic system. Careful consideration, Mr McLeod continued, had been given by the Parliamentary group with which he was associated to the question of bounties as a means of relieving export industries. It was felt that borrowing to pay bounties was most unsound, and unless bounties could he paid from annual revenue in some way, this only meant a postponement of an inevitable crash. Personally, he would say that if bounties were to be paid. I no better method would be than bv

way of subsidies on overseas shipping freights. UNEMPLOYMENT PROBLEM.

Following on and closely associated with tho state of tho exporting industries was the unemployment problem, said Air AlcLeod. Unemployment, no matter how handled, meant waste and national loss. Many well-intentioned people were pointing this out, and suggesting remedies as to how waste could be avoided. His own experience was that it was much easier to s,l ggest remedies than apply them. Unless a dole were to be paid without woik, he was afraid that most of the suggestions to obviate waste would break down hopelessly in practice, no matter how or by whom administered. The leal solution was to get people back into work they were accustomed to and were trained for.