Bernard Ashwin Secretary to the Nation Building State

Bernard Ashwin Secretary to the nation building State BRIAN EASTON which he signed. But while he told the Royal Commission he never signed a paper unless he agreed with its con ERNARD CARL ASHWIN (1896-1975), founder of the tents, it is what is left unsaid that is often the more impor Bmodern Treasury, was one of New Zealand's great tant. In addition there are also various contemporary re civil servants, and perhaps the most influential from the marks and memoirs which fill out the picture. Some 1930s to June 1955, when younger colleagues are he retired as Secretary.' alive today, and have Keith Sinclair's biography kindly added to the record. of Nash has only a hand Enough to write a full ful of brief references, but biography? Possibly, al one says revealingly, though perhaps not 'Fraser ruled in very close enough to capture the consultation with the Fed whole of Ashwin. Al eration of Labour. The though there is little mate other powers in the land rial about his personal life were Waiter Nash and - perhaps as should be for Bernard Ash win.'' The as he was a public servant - sessment is echoed by some elements are appar John Martin: '[h]e was ent: a simple diction often clearly one of a small using the common ver group- Nash, Fraser, and nacular, even to the Royal Walsh being the others - Commission on Banking who were at the centre of (which contrasts with the the decision making proc ornate language of his 1926 ess'-' In Ashwin's case that memoir}, and a dry, some 'central role' continued times irreverent, sense of into the early years of the humour. Ashwin's remem National government. bered humour is often as There is a full biogra sociated with a degree of phy of Nash and there self-deprecation, perhaps will, in due course, be because the recaller was so ones of Peter Fraser and aware of Ashwin's power. F.P. Walsh. Will there ever Geoff Schmitt, personal be a full biography of assistant to· Ash win in the Ashwin? It is perhaps inevitable that, with odd excep 1940s, tells a number of stories about Ash win's use of his tions, public servants should be shadowy figures. Ashwin position as Paymaster General, one of the titles that went was neither flamboyant, nor on the whole did he leave with Secretary to the Treasury, to get around stiff formal memoirs. We do have a memoir which he wrote after he ity. For instance 'he overcame a restriction preventing got married in 1926, and there is an intermittent diary of admission of non military persons to a security area in his first six months as Secretary.' After he retired he gave Kent by pointing out that he was Paymaster General to four recorded interviews on his experiences: on Gordon the New Zealand Forces.'' The story reminds us of Coates,' on the Reserve Bank,' on the war effort,' and Ashwin's distaste for some of the more formal British he Nash 8 There is also the transcript of the five days he experienced in 1917, when he was there as a private in the appeared before the Royal Commission on Monetary, New Zealand Expeditionary Force. 10 But the finance of Banking and Credit Systems, in June 1955, which is re ficer in the London High Commission and the New Zea vealing about his demeanour, his status, and his eco land Chief of Staff were also put down with this title. nomic views, as well as a vast quantity of official papers Ashwin liked to recall that the highest he got to in his NEW ZEALAND STUDIES NOVEMBER 1997 13 Signals Company was 'acting lance corporal.'" Ashwin dominated economic policy in the period of In 1956, thanking Alan Fisher, a New Zealand econo the earlier nation builders. Yet his personal views were mist working at the IMF, who had congratulated him on clearly of the right. He was a fiscal conservative, as one the recently received knighthood, Ashwin wrote 'I gather would expect of any senior Treasury official, for our fiscal it will be a bit more expensive in drinks and subscriptions arrangements involve numerous ministers and depart and I am wondering whether I have any special privi ments anxious to spend the government's money on our leges; immunity from traffic cops would be useful, free behalf, and the lone Treasury and their ministers who drinks at the Club would be another, but as far as I gather have to raise the money from us. In the case of Ashwin his I will have none of these.'" fiscal conservatism would have been reinforced by this While there may never be a biography, I am collecting experiences in the early 1930s, some of which I shall al together the available material. As a result Ashwin will lude to shortly, when the government fiscal position was loom larger in future histories, not only as an important out of control. part of any history of the Treasury, but he is central to However Ashwin was surely also a political conserva accounts of the development of economic policy. We al tive. Of course his official writings do not betray his po ready have detailed accounts of his role in the Reserve litical leanings, addressing the specific question with a Bank,13 in social security/' and in the Tasman project.15 narrow answer dependent on the context of the question, John Martin's work on the Economic Stabilisation Com exactly as you would expect of a public servant." Yet mission of the 1940s will add to the historical record. there are numerous clues that he was on the political Here, I want to look at Ashwin from a different per right: his general economic approach, his friends, and his spective. He is one of a group of men who came together career after Treasury. To the 1955 Royal Commission he in the 1930s to use actively and consciously the instru objected to aspects of the social security system. Perhaps ments of the power of the state to build and shape the as a clincher his son recalls him 'dancing on the table' nation. Others included politicians Coates, Fraser, and when he learned that National was elected in 1949 (al Nash, public servants Clarence Beeby, Pat Entrican, Joe though he may have simply been happy to at last be Heenan, Alistair Mclntosh, and Bill Sutch, businessmen relieved of the demanding Nash as his minister). Un James Fletcher, his son Jim,16 Wolf Fisher, and James doubtedly Ashwin was to the right of Sutch. Studying Wattie, and Walsh from the unions. There are no women Ashwin as a nation builder gives a different perspective among this group, reflecting the times, although a broader from the Sutchian one. definition of nation building would include Te Puea build Ashwin was born in 1896, in Paeroa where his father ing the Tainui nation. was a storekeeper (probably supplying the Waihi gold Nation building in New Zealand did not begin in the miners). Later the family moved to Cambridge, where 1930s. Leaving aside the Maori, it probably began with Ashwin went to school, including two years at the local the first settler who stepped ashore in the nineteenth District High School. But he was the oldest of seven, and century, and there were earlier outbursts, such as the 'the limits of my father's purse decreed work for me.' Vogel years and the Liberal government of the late nine There are a couple of indicators in the memoirs of future teenth century. The nation builders of the 1930s were developments. The first is that Cambridge was rural, and drawing upon a long tradition. he recalled the 'roses and buttercups' of the farm his For my generation that nation building tradition is father moved to, and a life by the Waikato river. It was a represented by Bill Sutch (1908-1975), who worked with nostalgia for a rural life that led him even to consider Ashwin, although he was 12 years younger. Sutch has taking up farming under the rehabilitation scheme for been the pre-eminent modern writer on New Zealand returning soldiers after the First World War, an opportu economic nationalism, and the most influential advocate nity which a decade later he was glad to have turned of nation building. The choice, he said, was between down." 'colony or nation'-" However his approach tended to We scroll forward. The following is an edited extract equate nationalism with a left political perspective, while from the memoirs that Schmitt kindly wrote for me. It is equating colonialism with the right. This has led to a late 1945 or early 1946, and New Zealand and the US are number of problems in the interpretation of New Zea negotiating in Washington over the wind up of the lend land's political development, not least when the Labour lease deal: Party with its left heritage abandoned economic national The difference in money was daunting. With an hour of ism in the 1980s. Meanwhile politicians of the right - the first session to go Ash obviously thought it was the notably Rob Muldoon and Winston Peters - have been occasion to play for time and regroup. So he started to among our most prominent economic nationalists. This talk about farms about Cambridge, describing them in some detail. ... Then he had them ploughing up the paper is not directly about such contemporary issues, pasture and the wife in the shed growing cabbage seed although understanding the nation builders of the 1930s lings; then planting out, spraying with derris dust etc., provides a foundation for interpreting current events.

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