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land generally of an improved character, acquired by the Crown under the scheme for the purchase and subdivision of large estates. Mr. Massey's Land Act of 1912 extended the right to settlement land and also authorized the sale of any such land for cash, besides making the terms of the purchase more favoura- ble to the tenants; but the 9,000,000 ac. set aside by Mr. McNab's Act as a national endowment for education and old-age pensions were not interfered with. A long-standing controversy was thus determined, and perhaps finally settled, in favour of the freehold. The attempt to make the retention of the fee-simple by the State a touchstone of Liberalism had never succeeded, and if the statesmen of an earlier generation who pioneered the proposal were here to-day they would doubtless admit that the political power of Crown tenants clamouring for concessions is a danger which their theories had overlooked. There is wisdom in the saying, " In time of trouble the State will look to the freeholder, but the leaseholder will look to the State." It is to taxation that the reformer must now look for the revenue which he had once hoped to get from rents and unearned increment.

Labour Difficulties. Industrial troubles soon claimed the attention of the Massey Government. The Court of Arbitra- tion was very popular with the workers during the first 1 1 or 1 2 years of its existence because, in a period of expanding industry, it rarely sent them away empty-handed. There were no strikes during those years (1894-1905), and only one in 1906, but in 1907 and 1908 the dissatisfaction of the workers found expres- sion in 24 strikes and in denunciation of the Court as an ally of the capitalists. The power which the Court exercised of attach- ing the funds of a union guilty of promoting an illegal strike also led some of the unions to escape its jurisdiction by cancelling their registration as industrial unions under the Arbitration Act. This policy was encouraged by the New Zealand Federa- tion of Labour, to which, under the banner of revolutionary socialism, a strong minority of militant unions, including those of the miners, seamen and waterside workers, was affiliated. The Miners' Union at Waihi was one of those which had can- celled their registration under the Arbitration Act, and in 1912 some 150 of its members, disliking the methods of the executive, seceded, formed a new Engine-drivers' and Winders' Union and applied to have it registered under the Act. The granting of the application was the signal for the members of the original union to " down tools." A strike which was unique among New Zealand strikes, both in its origin and in its duration (May i3-Nov. 30), resulted in complete defeat.

A much more formidable strike occurred in the following year. On Oct. 22 1913, as the result of a dispute arising from their sympathy with a grievance of the shipwrights, the Welling- ton Waterside Workers' Union struck. Under the conduct of the Federation of Labour the strike spread to most of the other ports, to the coastal and intercolonial shipping, and to the coal- mines; but the attempt of the Federation to make the strike general had little effect except in Auckland. Both there and in Wellington the strikers seized the wharves, and for about ten days blocked the ports except to passenger traffic. It was the dramatic intervention of the farmers, many of whom were brought face to face with ruin by the stoppage of the export of their butter and cheese, that saved the position. In Wellington they supplied 1,000 mounted men, to act with the same number of special constables on foot, enrolled from the citizens, in recov- ering the wharves and restoring order. The farmers also sup- plied the new Waterside Workers' Union, which was formed and registered under the Arbitration Act, with most of its mem- bers, and the despatch of the " Athenic " on Nov. 18 with a full cargo of produce was recognized as the turning-point of the struggle. On Dec. 20 the whole strike was declared off except in the mines, and the following month the miners also accepted the inevitable. In the case of all the principal unions the em- ployers had been able to make registration under the Arbitra- tion Act a condition of the settlement. The Government, and especially Mr. Massey, the Premier, and his Minister of Justice, Mr. Herdman, gained great credit for the resolution and the energy with which they faced Labour dictation.

The War. Britain's declaration of war against Germany was read in Wellington from the steps of Parliament House on the afternoon of Aug. 5 1914 by Lord Liverpool. 1 The news was received with enthusiasm, and the country threw itself eagerly into the work of recruiting, equipping, raising war funds and the like. The New Zealand Advance Expeditionary Force (1,419), destined for German Samoa, left Wellington on Aug. 15, and the Main Expeditionary Force (7,761) on Oct. 15. Parliament, which had assembled on June 25, and before the outbreak of war was for the third successive session dealing with the Legislative Council Bill above described, put the meas- ure through, but otherwise there was little controversial legis- lation. The characteristic work of the session was the passing of 13 war measures. A Banking Amendment Act empowered the Governor in Council to make bank-notes legal tender. By the Regulation of Trade and Commerce Act the same authority was enabled to fix maximum prices of goods, to prohibit exporta- tion, and to suspend or modify the Labour laws. The Mort- gages Extension Act 2 prevented a mortgagee from calling in or exercising his power of sale except with the leave of the Court.

The War Regulations Act empowered the Governor in Council to make regulations prohibiting acts " injurious to the public safety, the defence of New Zealand, or the effective conduct of the military or naval operations of His Majesty during the present war." In the discussion of these measures and of the other issues presented by the war the spirit of party was kept creditably in abeyance. There was, however, no strong feeling in the House and little more in the country against proceeding with the general election on its due date at the end of the year. But no election campaign was ever more languidly conducted. With most of the old issues out of the way and the shadow of the war over everything, the dividing line between the principal parties was less distinct than ever, and the fact was emphasized by the gulf that divided both from the socialism of the Labour party. The polling took place on Dec. 10 1914, and the result, as modified by sundry election petitions and the by-elections arising therefrom, was: Government (Reform party) 41; Opposi- tion (Liberals) 32; Labour 7. A position which would leave the Government in a majority of one after the election of the Speaker plainly presented the alternatives of deadlock and dissolution, with the grave weakening and possible paralysis of the country's war effort in either event.

Trentham Camp. When Parliament met on June 24 1915 the fierceness of the party storm which raged round the defence administration, especially in regard to the alleged mismanage- ment of Trentham Camp, made the outlook very black, but wise leadership on both sides averted disaster. The announce- ment of the success of the negotiations for coalition on the first anniversary of the declaration of war contributed not a little to the success of the celebrations. The National Government was sworn in on Aug. 12 1915, the members with their principal portfolios being as follows: Mr. W. F. Massey (Reform), Prime Minister, Lands and Labour; Sir Joseph G. Ward (Liberal), Finance and Postmaster-General; Mr. (afterwards Sir) James Allen (Reform), Defence; Mr. W. H. (afterwards Sir William) Herries (Reform), Railways and Native Affairs; Mr. A. L. Herd- man (Reform), Attorney-General; Mr. R. McNab (Liberal), Justice and Marine; Mr. (afterwards Sir) William Frassr (Reform), Public Works; Mr. G. W. Russell (Liberal), Internal Affairs and Public Health; Sir Francis H. D. Bell, K.C. (Reform), leader of the Legislative Council; Mr. A. M. Myers (Liberal), Customs, Munitions and Supplies; Mr. W. D. S. Macdonald (Liberal), Agriculture and Mines; Mr. J. A. Hanan (Liberal), Education; Mr. Maui Pomare (Reform), Cook and other islands, member of Executive representing native race. In 1917 Mr. McNab died and Mr. T. M. Wilford (Liberal) became Ministei

1 Lord Islington, who was appointed governor in 1910, was suc- ceeded by Lord Liverpool in 1912. The title was changed to gover- nor-general on June 28 1917. Lord Jellicoe succeeded in 1920.

2 The operation of this measure, subject to various amendments, has been extended to Dec. 31 1922. Legislation to restrain the in- crease of rent was not passed till 1916, and remained in force until Dec. 31 1921.