THE CANADIAN INFLATION BAND WAGON GATHERS MOMENTUM

Mr. Eric Butler filed the following report on the eve of leaving Canada for the World Anti-Communist Conference in Washington.

Two hundred and fifty Winnipeg business men listened with growing apprehension as I ruined their lunch by telling them that unless they forced their politicians at Ottawa to change national financial policies, they were going to experience an accelerating rate of inflation over the next six months. One man said afterwards, "You unfortunately confirmed my growing fear that the situation is even worse than it appears to be." A few days before my Winnipeg address, Mr. A. Maxwell Henderson the former Federal auditor-general, publicly charged that the budget was "out of control and politicians in general would not want to control it as long as they can use the taxpayers' money to buy votes and perpetuate themselves in office." Mr. Maxwell Henderson speaks against a long experience of observing the ways of politicians. He is, of course, quite right.

Central governments everywhere have a growing vested interest in continuing inflation. It enables the ever-expanding central bureaucracy to exercise increasing power over the unfortunate individual. The broad mathematical facts concerning the Canadian situation are that Ottawa proposes to spend about $23,000 million in the next financial year as against $5.7 thousand million in 1960. It is certain that the $23,000 million will be greatly exceeded. There will be those "unforseen supplementary" expenditures! However, whatever the final figure, Ottawa's spending has risen about fivefold in 14 years and will increase by up to 15 percent, during the next twelve months.

Mr. Maxwell Henderson observes, "The bigger government gets the less it thinks it has to be accountable". Australians have also observed this truth, particularly under the Whitlam Government. It took centuries of struggle before British parliaments managed to obtain power over the purse. They insisted on carefully checking the amount of taxation they were prepared to make available to Government. But today parliaments throughout the British world no longer have any effective control. There is not only the rising taxation revenues, much of these flowing in automatically as the money supply is expanded to finance increased wages, but the massive injection of new money created to finance deficit budgets. The spending figures have now become so astronomical that they defy realistic parliamentary examination. Not even Cabinet Ministers understand the figures.

One feature of the Ottawa spending spree is the massive flow of credits to the "underdeveloped" nations. The substantial increase in oil prices must act on growing inflation like gasoline poured on to a fire already out of control. Canadians are certain to experience much more than disastrous inflation over the next six months. True, the Federal politicians at Ottawa, just like the politicians at Canberra, keep on talking about doing something about inflation. It is a type of meaningless ritual with no relationship to reality. And one Minister contradicts other Ministers, as witnessed by Prime Minister Trudeau saying that food prices are too high and must come down. He is joined by Mr. Lewis, leader of the New Democratic Socialist Party that keeps Mr. Trudeau in office. But Mr. Whelan, the Minister for farms, announces that food prices are too low and must go up. It is certain that Canadian farmers must receive some price increases if they are to keep abreast of increasing inflationary financial costs. But increased food prices must further accelerate the inflation rate.

The basic cause of the mounting Canadian inflation is the same cause producing inflation everywhere; the issue of the nation's money-credit supply under rules that inevitably result in astronomical debt. As I suggested to my Winnipeg audience of businessmen, if new credit can be issued, against the nations real credit, its vast productive capacity, as an interest-bearing debt, then it could be issued just as easily, against the same real credit, as a credit. This credit could then be applied in a number of ways, such as financing old age and other pensions, thus permitting a reduction in taxation, and a consumer discount system, starting with basic items in the economy. A fall in retail prices is an effective increase in purchasing power while at the same time removing a basic cause of inflation.

I concluded by saying that unless the peoples of the so-called free nations were prepared to change financial rules forcing prices ever higher, then the free society must ultimately collapse. This, of course, is why Marxists everywhere strongly oppose any constructive suggestions along the lines I have indicated. The Marxists are prepared for collapse. Canadians have been running a little behind Australians down the inflation road towards ultimate disaster. But with the Canadian family of four now contributing on the average $4,000 merely to meet the demands of the Trudeau Government, and with rising municipal rates and provincial taxes on top of this, Canadians might even overtake Australians before they are much older! "Oh Canada, Glorious and free".

A NEW LOW IN FEDERAL POLITICS

"Mr. Jeremy Lee, Assistant National Director of the Australian League of Rights reports.

"It now seems certain that Australia will face a General Election on May 18th, after a Double Dissolution in a situation unparalleled in Australia's history. So great has been the disgust with the rough-shod tactics of the Labor Government that it would be fatally easy for thinking electors to settle for an unconditional support of the Opposition. This would not serve Australia well. There are lessons that must be grasped from the almost bewildering chain of events leading up to the present crisis.

On March 30th Sir Charles Court won office in Western Australia. The change has masked the fact that despite a reaction against Labor in rural seats, the Labor vote throughout the State increased by 2%. The National Alliance failed to demonstrate any increase in popularity. A campaign of fear has been waged in rural areas with evidence that may yet produce a backlash. Less publicity was given to the farmers meeting of 6,000 in Subiaco addressed by Mr. Don Echersley than to the scuffle involving Mr. Whitlam in Forrest Place, although the former was much more significant.

A long list of quite justifiable complaints was read by Mr. Eckersley to an empty chair symbolising the absent Prime Minister. The fact that a number of Mr. Eckersley's charges against the Labor Government were actually instigated by Mr. Whitlam's predecessors the Liberal/Country Party was not mentioned. To name but one, the phased removal of the Butter and Cheese Bounty was a Country Party policy. That is not to say that the Labor Government's rural policy has been anything but disastrous. But so was the Opposition's.

The less that is said about Senator Gair's acceptance of an ambassadorial post the better. His actions have spoken for themselves. In the event of the obvious political chicanery involved, we believe that the Queensland Premier's actions were justified. It has been alleged that such a move was "undemocratic." Such a view shows scant understanding of our constitutional process. Unlimited democracy leaves the electorate open to panic politics and manipulation. The checking process, which a bi-cameral system involves, is deliberately aimed at leaving sufficient time for prolonged consideration of electors, and the publication of all the facts. It is a guard against hasty decisions. Even Dr. H. V. Evatt, whose subsequent actions betrayed his statements, admitted in his book "The King and His Dominion Governors" "...The Parliament is the Parliament for the time only, and it does not necessarily reflect the will of the electorate for all purposes and at all times... "

There is a dangerous belief gaining hold that election is the same thing as a mandate. Parliamentarians are prepared to instigate great changes, from eradicating the National Anthem to fluoridating the water supplies to nationalising the wool industry to increasing taxes and interest rates, without consulting the people. An independent Senate is a partial check to this state of affairs. Having foiled Labor's attempt to gain control of the Senate, the Senate elections and the referendum questions should have been allowed to proceed constitutionally. Any attempt to interfere with the financial implementation of a programme endorsed by both Houses of Parliament, as the Liberal/Country Party has done in order to gain office, is utterly irresponsible. Grave questions are raised by this action. It can now be seen that the Senate has been bullied into subservience to the Party Whips for political ends. How many Senators were prepared to seek the wishes of the States they claim to represent before obeying orders from their parties in the House of Representatives? On what ground was the financing of Senate-endorsed government programmes subsequently denied by the Senate?

While agreeing that Labor's programme has been dangerous, it should have been countered with a genuine anti-centralist and anti-inflationary policy and strict regard for constitutionalism and the ultimate agreement of the Australian people. As it is, the Liberal/Country Party coalition has staked everything on frightening Australians into change for the sake of change. Both Mr. Snedden and Mr. Anthony may yet reap what they are sowing. It is by no means certain that Mr. Whitlam will be defeated in the House of Representatives. It will be much harder to prevent a Labor victory in the Senate if elections for both houses are fought on the same issues.

The Opposition leaders have denied Australians the necessary time for the studied consideration that is the ultimate essential for good government and constitutional democracy. If we are to turn the disaster that lies ahead into a partial triumph, the initiative in the coming election must be taken by the States. It is their future, which lies on the bargaining table.

Mr. Whitlam has brought the issue of Federalism to a head that can be ignored no longer. The States have never been in a more advantageous position to force some concessions from all Federal parties. A clear return to financial and political sovereignty in the constitutionally defined areas or states' rights is the minimum required. If the States abandon this chance by fighting unconditionally for a party victory, they will have betrayed their people and their position. Both Mr. Bjelke Petersen and newly elected Sir Charles Court will emerge from the fray as Statesmen or as party hacks. If either is prepared to campaign slavishly for his own federal party, without seeking a clear statement-of-principle on the future of the Federal system, the States will have lost what is probably their last opportunity for survival - all that Mr. Bjelke Petersen has sought for so long.

The Senate particularly must be turned once more into a States' House. Financial autonomy for the States must be clearly defined. An end to inflation without recessive squeezes must be sought. The rule of law in the States must be put beyond the reach of any internationalist Bill-of Rights. Taxes must be lowered and costs reduced. Local Government must be strengthened instead of amalgamated. Confidence in industry must be re-built with assurances that government interference is stopped. Whether we achieve these realistic measures lies largely with the States. There is too much corruption, too many broken promises too great a will-to-power in the Federal parties for them to be trusted any longer.

THE NATIONAL ANTHEM

Supporters are now aware that Mr. Whitlam has pronounced "Advance Australia Fair" the "new" Australian National Anthem. There has been a singular lack of enthusiasm about Mr. Whitlam's choice; it wasn't the choice of the Australian people - they were not asked'. The phony "poll" of the "60,000" will rebound on the arrogant Socialists sooner than they imagine. The principal point to make is that Mr. Whitlam has won the first round only. We believe that completely unexpected opportunities will present themselves in the near future for Heritage lovers to seize. The ideal strategy now is for us to elevate the National Anthem into an electoral issue. Further; we must work for a Referendum of the Australian people on "God Save The Queen"; and if carried. "God Save The Queen" should be proclaimed into the Australian Constitution. If it is not supported by Referendum, then we must accept the majority decision.

The Australian Heritage Society's results from its polls showed a figure of approx. 90% in favour of "God Save the Queen". Even allowing for an element of partisanship; inasmuch as those who feel strongly on the issue are more inclined to send in a voting coupon from the newspapers, the figure would still be a solid majority for "God Save the Queen." Furthermore, various newspapers conducted "polls" on their own initiative; without any Australian Heritage Society wording in the advertisement; and their results disproved the claim of the Government that the majority of Australians want a change. A Referendum is the only way to decide the issue; even people who want a change are annoyed that all Australians have not been given a say. It is probable that the Letter by Mr. Jeremy Lee, Assistant National Director of the League, to Mr. Whitlam on the Anthem (printed in last week's On Target) forced the Prime Minister to make his decision, which may come to haunt him as time passes.

BASIC FUND

The Power of the Individual

An individual does not become a good golfer merely by reading books on golf or listening to lectures on the game. Confidence and proficiency grow from actual practice and playing. Those who would control their political servants must develop their abilities by applying themselves to expressing their viewpoint, either orally or in writing, either as an individual, or as a member of an organization. Confidence grows with experience.

Power in many hands is power in safe hands. There is an old saying that knowledge is power, and that without knowledge one is powerless. It is more correct to say that individuals with knowledge have a greater capacity for using power than those who lack knowledge. The obtaining of knowledge means individual effort.

The League is a special type of association through which individuals can increase their knowledge, and therefore their power. Equipped with knowledge concerning their different institutions and systems; financial, economic, and political - individuals can then work effectively within the organisations of which they are already members.

In a world of growing tensions, the great majority of individuals tend to look to someone who can speak with authority and help provide an answer to their problems. A sprinkling of competent Social Engineers in any organization, including a political party, can have a tremendous impact. A thousand angry, but uninformed individuals for example, farmers concerned about the pressure of rising financial costs, can be quietened by a smooth-talking politician. But introduce only half a dozen competent Social Engineers into that audience to challenge that politician, and the situation is dramatically changed.