Dear Sir

Bay of Plenty Beacon, Volume 9, Issue 39, 30 January 1946, Page 4

Dear Sir

Letters to the Editor must be clearly written on one side of the paper only and where a nom-

de-plume is used the name of the writer must be included for reference purposes. The Editor reserves the right to abridge, amend or withhold any letter or letters.

THE COUNTRY QUOTA Sir, —The argument in favour of the abolition of the Country Quota appears to rest solely on the conception that “Democracy” as a system of Government can be operated by the simple expedient of counting heads in favour of or against more or less vague programmes submitted to the Electorate by rival political parties. If this were all minorities would have, no rights, privileges, or even protection. They could be subjected to concentration camps, slavery, or death. It is evident then that to those of British descent * the democratic form of. Government must, and does:, take cognisance of other factors beyond the mere counting of beads. It is clear that those other factors cannot be such as to give, mini orities power to exploit or subjugate the majority.

What are these other factors then'? It is difficult to define them in precise terms. Wc can use such phrases as “fair play,” “common sense,” “expediency’ 7 etc. etc., hut these terms in turn need definition. Perhaps the term “expediency” will serve our purpose, for the moment. An example of the: expediency factor can be given in the case of the English. Universities. Although the system of election in Great Britain is based on adult suffrage there is an additional vote given and exercised by the senior members of certain constituenciese.g., a Graduand of one of the Oxford Colleges may be resident in say, Hertfordshire. He lias a vote in his country constituency and also a vote for the University representative in Parliament. So far, no adverse. criticism of this expedient factor has been voiced and the most ardent Parliamentary reformer in England would admit that no enrichment of Parliament would result if this expedient were abolished in favour of a slavish adherance to the idea of one man one vote. Common sense prevents an extension and possible abuse of this expedient factor.

Please note that with Parliaments constituted as they are, it is not sufficient for certain sections of the people to have merely a voice in the decisions; that voice must be effective if it is to serve the purpose. In the penal code of some nations flogging is still the punishment for certain crimes but when the sentence is being carried out the culprit, if not gagged, may be said to have a voice in the proceed-| ings, but the mere voice is of little value to him. In the case, in point it has been found expedient to use the device of the Country Quota in New Zealand. The result has been to limit the size of certain rural constituencies. That is to say the. factor of area has been used as an expedient to give the rural interests an effective voice in the affairs of the nation.

The fact that the rural 'industries are of such paramount importance to, not only the Dominion, but in the whole Empire, is the real justification for using this expedient.

It may be suggested that modern means of communication have so annihilated or reduced, space as to render this expedient unnecessary now.

Unfortunately the problems of life and of society have multiplied both in number and in complexity to such an extent as to more than neutralise the improved means of communication.

If he has any sensitivity the lot of the rural member of Parliament is not a happy one and in the opinion of. the writer many rural constituencies should be substantially reduced in area rather than increased .

Yours etc. \ H. M. RUSH WORTH. P.O. Box 1056 Auckland. • 9

MAORI PLACE NAMES (?)

Sir,—ln your Beacon issue of 22nd

inst. you gave a very interesting explanation of some of the. place names in the district. Among these you state that the original name of Matata was Awa-o-te-atua. Now i*y demand for rates describes the place as 'Richmond’; but it so happened that a big Chief died at the Lakes, and the local Chief in Richmond went up to the tangi. Being a rather young man who had seldom left hi& mother’s whare, he felt a bit homesick when he got on top of the hills; and turning round saw his mother waving to him, so lie also began waving back to her, crying out “E 7 - Ma, tata!” And so the name stuck! When tlie young mail later reached a spot not far from Lake Rotoma he was completely broken-hearted and lienee the name ‘Manawarhe. 7

Elie! te kuware o te pakeha! will be the comment of many kaumatua! Yours etc. . ‘ A.B.C.

WAR BOND RACKET

Sir, —Your correspondent Mr Bradshaw quotes a Congressman as statn ing “If a Bank wishes to buy a million dollars worth of Bonds it gives the Government a credit for that amount.” The Congressman overlooks the little fact that the million dollars which is. lent to the State by a Trading Bank has to be deposited to the credit of the State in tHe Federal Reserve Bank. In New Zealand the same thing happens. The Trading Bank, which can only lend to the State at the re-; cpiest of the Government, has to deposit cash in the Reserve Bank for the amount of the loan. The (Tradri ing Bank docs npt grant an overdraft tb the Government. This little but all-important, fact upsets the whole argument. The Government by borrowing from the Reserve Bank creates credit. By spending the money it distributes the new money amongst the people and the result is increased deposits in the Trading Banks, the Post Office and Trustee Savings Banks. The Post Office and Trustee Savings Banks lend this money back to the State, which, again spends it mcreasing the deposits in the Post Office and Trustee Savings Banks, which again lend it to the State. In New Zealand transactions between the. Post Office and Trustee Savings Bank® and the State have resulted in an increase of £72,000,000 (new money). The Trading Banks can only lend to the State at, its request. The creation of new money originates in the operations between the State and the Reserve Bank and the State; is-the sole creator of new money. The activities of the Trading Banks are 100 per cent, effectively con* trolled by the State and, though their coffers are overflowing, with tlieir depositors’ money, theft advances to their customers have not increased. Trading Ban Its, as a result of legislation since 1934, when the Reserve Bank was created and the sole right of note issue vested in it can now lend only their deposits plus their capital and then only to the extent determined by the Government winch has the power to expand or contract credit at will.

Yours etc..

M. WILSON.