MR. HOGG AND CURRENCY REFORM.

Dominion, Volume 2, Issue 616, 20 September 1909, Page 4

MR. HOGG AND CURRENCY REFORM.

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of taxation, and thus bo placed on the sami footing as private oustomcrs of tho banks. In the Jiopo thnt it 'may help to awaken Mr. Hogg and also Mr.' Hobart. (whom I:; understand advocates tho issue of "State notes') to a capacity to grasp tho true nature of monoy, perhaps you will be ahlo to find space in your vnluablo columns for tho follow* ing extract froni/u letter from my pen which appeared in tho "Poverty Buy Herald" about , tho year 1699:— : ■;■ . . . . "I agree with Siovwright that the profits of banking ehould go to tbo State, and tho Govornmont might begin with the Bank, of . Now Zealand purchasing all the sbaree at their present market value As, however, ' people are very.liable to fall into orronoous ideas rofjarding a paper currency, I would like to point out to nil interested ■in tho mnttor (fpr-any person.who clearly 'masters', tho truth I am , about'to' state will have mastered a .great principle of modern banking) that were it'ndt for .the inconvenience of the plan, banking and 1 the production imd'oxohango.of wealth ooold ho carried on entirely through tho medinm p! figures .in books in thn hands of. the binks; wheroin the banks could debit and credit cue-' tomers ae instructed with 'abstract quantities of labour,' or what. is commonly called value, expressed in £ s. d., or if'desired, in days,, hours, and minutes (of labour).. By this moans just as fast as the banks debited.and credited customers as instructed by deppsitors, . for Values" givon or received, would ! woalth bo pro* ducod, exchanged, and dißtributod. But bankr ing and exchanging wealth with figures. in books alone would canaj. great inconvenience, Thus John Smith,owes Tom Eobinson JS. Hβ must tako Tdm Robinson to tho bank and tell the barikor td: dobit him/with credit .Robinson with a like ainount.' Eobinson and j other persons in the comnlunity would have to : go' through a like process to BctUo their debts. : ' It would not bo.long,.'therefore, before John. ,; .Smith, instead of going himsolf to the bank, would write on a piece of paper, . To the' nianagor of the Bank,of -—, pleaso pay.Tom: ; Uobinson (or bearer) the Bum of five pounds sterling. , ' This would bo equivalent to our mpdern cheques. Tom Robinson, tpo,' might find it moro desirable to have tho value ho was entitled to- draw .resto-tod' upon one or inpro' separate pieces of paper that ho could take, away with him, and-' which could ho exchanged from hand to hand,-instead of being put to Mβ credit at tho bank. Henco would arisd at once ■ .the necessity of bonk notes. Thus, what' New,. Zealand, wants at th&. present time-is, not'so ;much a. greatly : increased number. of'bank, notes, but increased credit , for. sound invest inonts at very low rates of interest.'" : In order to have a currency that will remain .stable-in'value, that currency, must be hased upon the total labouring, power popula-; tion and the products of labour in course of , exchange.. And all advances .made by the banks must be arranged ,oh such tonne that money will Bow back to the banks as fast ai advances aro made, and thus a : bcautifui balance be established between outgo and in. come. And it is only by establishing a system of banking the business of which would In 'conducted upon these lines that wo .can have < perfect system of bonking, the business . ol which would bo conducted upon a scientific basis. And I.olaim to'bo the'first man in theworld to hayo clearly expounded such a system,and to bo in' a posihon to practically demonstrate that,it must work out rijfht In practice,' I>am, .etc., ■ ; . •: ■ '■'. ■'■■ . ■ ■■■•' ■ ' ' ■■, ■■■'■■ ■;./;•- ■■■■..■..■■;C,"P;:-.W.'LONGDILC: Ohakune, September 17.i'.. \, I .'..■•.' ;.-■.-