BOOM-TIME DANGERS

Manawatu Standard, Volume LVII, Issue 208, 3 August 1937, Page 11

BOOM-TIME DANGERS

FALLING PRICE LEVEL. HON. A. HAMILTON’S WARNING. Though New Zealand was experiencing the double boom of high prices both overseas and within the Dominion, the Labour Government was following a. coufse which would not make for stability when prices fell, stated Hon. A. Hamilton, Leader of the Nationalist Party, when, speaking in the Palmerston North Opera House last evening, lie gave an enunciation of what constituted democracy and what did' not; emphasised that no political party should enter into contracts with the electors which were not capable of practical fulfilment; and indicated the main features of the Nationalist Party’s policy. Mr W. F. Durward, president of the Palmerston North branch of the party,' presided and introduced Mr Hamilton as a man of tact, commonsCnse, integrity and modesty. There was a. good audience, who gave Mr Hamilton a cordial reception. POLITICS IMPORTANT.

There was no more important subject for discussion to-day than that of good Government, stated Mr Hamilton, and it was pleasing to see an awakening and educative interest in politics. Looking back upon the history of New Zealand brought the realisation, lie added, that they lived in a very favoured country despite its Government, though it was not his mission there to criticise it. New Zealanders, in their generation, had enjoyed the best standard of living they ever had. Lest they lose that privilege, they must follow the pathway of its attainment. Mr Hamilton said he was not so rabid a politician that lie wanted to get into power at any cost, and if the Labour Party pursued the course of good government he was prepared to help to put such legislation through. A dictatorship was not wanted in Mew Zealand, but it was not far away at present. Democracy might not always be the most efficient method, but it suited New Zealand admirably. “There is to-day being preached a new philosophy—that saving is an evil and we should spend,” proceeded Mr Hamilton. He commented that a. little bit of both was good, but New Zealand must live within its income, and the incentive to production must not be destroyed. Voices: You never lived within your income. “Yes we did. We borrowed a lot of money, but would have paid it back, given time,” said Mr Hamilton. “When the present Government came into power there were numbers of reserves built up out of accumulated surpluses, but to-day we are living in boom conditions, and spending a boom income, with goodness knows how much borrowed money. We will find out how much one day. La.bour had a wonderful combination of fortuitous circumstances last election which would have swept any Opposition into office. We put them in ourselves. (Laughter.) Yes, and you people here are not without a certain amount of guilt. But they will not go back next time. They will be out when they have to depend upon their own resources and their administration. We want the voice of the majority to rule this country, and not tha.t of the minority, which was put into office by constitutional methods, even though it was a split vote. W e do not want to run into another mixup like the last election, and we want tho voice of the people correctly registered. That will I>3 done if we discipline our party as well as Labour discipline theirs.” | CONTRACTS WITH ELECTORS. The framing ol an election policy was a very serious contract between a party and the electors, continued Mr Hamilton, and it should be fulfilled to the letter, instead of being “softpedalled” upon. The Prime Minister was general manager of a business with a revenue of £30,000,000 and an expenditure of £30,000.000. No more should be collected from the people than was required for the government of the country, and it should be wisely expended. New Zealand had had “easy politics” —either Liberal or Reform — for a number of years, but with an extreme element in power to-day. politics did matter. “I shudder to think how the Labour Party would handle New Zealand if the prioe level fell materially lower than it is to-day,” stated Mr Hamilton, who added that it was legislating for a class, was fostering a class spirit, and did not even want harmony between employer and employee. The force behind it to-dav was tho Alliance of Labour and the Federation of Labour. The Nationalist Party stood for co-ordination between employer and employee, and for steering a, sound course. Not by any stretch of imagination could it bo said that Labour had a majority. At the last election there were 265 candidates for 80 seats, and Labour won 55, while four members of the House voted with it. Twenty-four of the Labour members held office on a minority vote, as did a few, admittedly—about eleven —of the Nationalist members. Sixteen of the Labour members had a minority of over 1000 votes, and in the Palmerston electorate of over 4000 votes. That was making a farce of democracy, and they must make democracy work..lt was the best way known of testing public opinion. Let each organisation line up on its own 6ide, and 60 arrange its affairs as to have a clear-cut issue. He was not asking for a change of law, but for the elimination of the split vote. “If the Labour Party get in then,” said Mr Hamilton, “we will join up with them and say nothing. REAL DEMOCRACY. Both the Prime Minister and actingPrimo Minister were to-day pleading for democracy, said Mr Hamilton, bub Labour was nullifying its principle. Two-party politics made the democratic svstem work properly, and provided for a critical examination of legislation. “We might keep you curious for a little while vet. It is for us to decide, proceeded Mr Hamilton in reply to insistent demands for a declaration of the Nationalist policy. He stated that it stood for the business and professional people in the community, the farmers nnd the workers who knew they would benefit in the long run. Tho Nationalist Party stood for good government. nnd not socialistic government. Though many workers were better off. others had got nothing from the present Government but increased costs, and a large number voted for and were joining ihe Nationalist Party. Labour were beading fast for State ownership and control, but the Nationalist Party stood for nrivate enterprise, and the advancement of the rights of the individual. It would be a sorry day for New Zealand if it progressed further along the road to tho totalitarian State, like that of German v Italy and Russia. Government should be not bv State domination, but by a group of authorised individualS' NATIONALIST PARTY. As to the Nationalist Party’s policy, Mr Hamilton said it stood for the best wages tliut industry could afford, while the Labour Party stood for tho working man losing his job. There must be a reduction of tho burden of taxation. Last year the Labour Government collected over £31,000.000 in taxation—n record of over £5,600.000 more tnnn bad ever before been collected m tho

history of the country. Despite this, no men had stood the test better, or stuck to their job harder, than the fanners of IS'civ Zealand. They were entitled to an equal reward with other ■members of the community.-Emphasis could he laid on the fact that New Zealand still had room for closer settlement and subdivision. The State was “gobbling up” private transport systems which gave a very efficient service, and they should be left to continue that under an organisation which would not damage the railways. There must continue a sacred respect for the administration of the L|w Courts, hut to-day the Minister of Transport was the “Privy Council.” Encouragement had to be given for the development of secondary industry, as last year importations had been very heavy. Amalgamation of local bodies was being sought by the Government to-day. New Zealand had been built up by the wonderful voluntary service of those on local bodies, who had understood their own district requirements. “Do not let us centralise everything in Wellington and run amuck with democracy,” said Mr Hamilton. “We stand for social service and social betterment just as much as anything else, but we must not dry up the sources which make this service possible. Lot us remove faults in administration without overthrowing the whole system for socialisation, a moderate definition of which is the public ownership of all private and commercial capital.” The Nationalist Party still stood for public ownership and control of certain essential services. Was the same method of administration as for the Post Office to he applied to butchers’ shops? State ownership functioned well where a service was a. national monopoly. DUTY OF PEOPLE.

"If we do not do our duty in our da}’, when the history of New Zealand is written there will he a black ninrk against our generation.” said Mr Hamilton. Not only was there a record amount in the Post Office, hut every State Department was in credit when the Labour Government assumed office. Labour had promised to remove the sales tax.

A voice: You put it oil “Yes, lint ive did not promise to take it off, and they did,” said Mr Hamilton. “Do you think they will ever abolish it? I don’t. They collected a record amount last year—£sß2,ooo more than for the year before. Hast year £5,385,000 more was collected in taxation than in the year before—a rise of 25 per cent, in one year. That was the cost to Now Zealand of the first year of Labour administration. I am not questionin'!: for one minute the soundness of our finance, and it is a good thing that the taxpayers have been able to stand up to it,” added Mr Hamilton. “Tbe significant feature is that the amount of borrowed money has not been published with the figures. I would not be surprised if the amount is from £5,000,000 to £10.000,000. Just before the last Government adjourned they secured authority to borrow £13.000,000 in the most prosperous period in the country’s history. Last year the export income was £60,000,000, more than £22,000,000 above the average for the preceding years.” Mr Hamilton said he was not going to say that the people’s money was not safe, but if prices fell the only courses open were to decrease expenditure or depreciate money, and it might not be of much value when taken out.

Subsequently the speaker was accorded a vote of thanks and confidence on the motion of Mr F. L. Cubitt, seconded by Mr Dixon (Rangiotu). The chairman was also accorded a vote of thanks.