Credit Should Be As Free As Air

Manawatu Times, Volume LIV, Issue 7278, 4 October 1933, Page 7

Credit Should Be As Free As Air

But Now So Rarified That Patient Is Gasping

House Resumes AtMress=im-Repiy

Debate

Per Press Association. WELLINGTON, Last Night,

The Address-in-Rcply debate was resumed by Mr. W. A. Bodkin, who said it would bo difficult to stabilise the Dominion’s currency if New Zealand endeavoured to adopt a scheme of inflation, as indicated by the Opposition. Tho Labour Party’s schemes of public works, social services and guaranteed prices would cost £40,000,000 a year, and such a policy would lead the country to ruin in a very short time. There could be no prosperity until there was a settlement of intcr-Allied debts, until creditor nations agreed to accept payment in goods and services, and until there was a stabilised currency and credit system.

Continuing, ho said tho Government had rallied to tho rescue of various industries, but had not appreciated the advantages offered by the gold-mining industry. Ho did not advocate State gold-mining, but he considered tho Government should prove the fields of Central Otago.

Rev. Clydo Carr said Britain to-day was concentrating on restricting production. She was declining to consider the possibility of increased consumption as a result of increased purchasing power offering a solution of her difficulties. It w-as an endeavour to starve our way back to prosperity. Credit — that right of costless creation which should bo as free as air to the lungs — had been rarified until the patient was gasping for breath. There was a call for confidence, but nothing was being supplied to iuspiro confidence. If the troops in tho field were supplied with ammunition, their confidence would return. What was required was a supply of ammunition in the economic spheic.

“Piffle and Blarney.’’ Mr. D. McDougall congratulated Mrs. McCombs on her victory in the Lyttelton by-clectiou and said he hoped she would remain in the House for many years. Ho commented on tho number of Government members who had addressed meetings during tho election campaign, adding: “They can send down all they have got, with all their pifflo and blarney, but I hope she will wipe the floor with them.’’ He expressed approval of the point mado in Mrs. McCombs’ speech regarding unemployed girls. He said he had referred to this subject last year and had urged the Government to subsidise industry to keep shop assistants and others in regular employment. “But when’you put the question to tho Minister of Labour,’’ ho said, 1 you might just as well put it to tho leg of a table. You would get just as satisfactory an answer.’’

Strongly criticising the operations of the Wheat Purchaso Board, Mr. McDougall said it was helping Distributors, Ltd., who had been exploiting New Zealand for 10 or 11 years. At the price the farmer was getting for

wheat, flour should not be more than £9 a ton, but was quoted in Christchurch at £l4 12s.

‘■‘l am not going to tolerate that and I am not going to voto for any Government, Labour or Liberal, that will put the screw on the small farmer as they have been doing in this wheat transaction,’’ he said. What Do Farmers Live On'.’ Mr. F. Langstono said tho farmers believed they lived on their exports, but that was an utter fallacy. Every country lived on everything it produced. He asked what there was to prevent New Zealand stabilising her own internal price level on the basis of the goods and services of the country. He declared that the Government was ruining the country, and the open cheque which it had received at the general election had been torn up. Tho sooner the Govrnmcnt realised its position and went to the country tho better it would bo for the w'holc of tho Do-

minion. Mr. A. E. Ansell replied to Mrs. McCombs’ remarks relating to education. He said that, instead of closing the schools to the children of the working class, as she had alleged, the Government had dono a great deal to facilitate tho education of theso children and to alleviate tho position, for their parents.

Unemployment Among Youths. Mr. Ansell tlien went on to refer to Mrs. McCombs’ remarks relating to unemployment among youths. Ho quoted figures showing the numbers placed in employment by boys’ unemployment committees in the four main centres during the past 12 mouths. Altogether 4458 had been provided with work, while among the 2008 registrations awaiting employment there were included 580 in Christchurch who were in temporary employment. For the purposes of comparison, tho total might reasonably bo reduced to 1425, as against the 2544 registered as unemployed on September 30 last year. He considered this was an excellent testimony to the energy and enthusiasm of tho public-spirited men who had taken up the work of finding employment for boys. Mr. R. Semple said capitalism had outlived its usefulness and was now, ho believed, on tho verge of collapse. There was no need for starvation in a land of plenty. Paper money was valueless unless it had the backing of goods. Hew Zealand had goods in abundance and upon those goods he urged that its monetary system should bo based. Tho gold standard had gono for ever. Gold could never servo us o. measuring rod; it was a useless commodity and it did not represent the real wealth of the country.

The debate was interrupted by the rising of the Houso at 10.30 o’clock till to-morrow afternoon.