"MONETARY REFORM"

Evening Post, Volume CXVII, Issue 143, 19 June 1934, Page 6

"MONETARY REFORM"

." (To the Editor.) • Sir,-ijn "The Post/? of 'June 15, Sir Harold Beauehamp, chairman of the i Bank of New Zealand, is reported as describing various schemes of mpnetary reform as "fantastic and'ridiculous," and yet later in the same report appear the following words: —•''Such mysterious catchwords as ' A plus B theorem,' 'Costless credit,'-.and 'Nationalisation of banks'—whatever these terms may mean, etc." Apparently Sir Harold is ignorant of the schemes which he thus condemns. Elsewhere appears, the1 following: "The, remarkable feature: of Britain's recovery is that she has not relied on, professors of economy of any school, or so-called Brain Trusts, but has' relied upon business methods, ■business ethics, arid^ business common sense.'' Yet tho banks of New Zealand are distributing booklets against monetary reform written by professors of economics who are held: up as authorities in this matter, Agaitt," Britain shows all the' indications of a steady natural recovery, .which she- has attained by a close adherence to welltried traditional methods. She has scrupulously observed .every contract. Britain has produced the only/ real Budget surplus, etc".''"'; Are: any remarks necessary in the light of pur default to America! The. Budget surplus was £30,000,000, roughly a"; quarter ;of which was from the Ellerman Estate, and Tve:L have to date failed' to .meet debt obligations to America of approximately • £60^000,000. :;r,V V? •

Again, "The regions of finance and trade, like the phenomena of Nature, are equally subject .'to --a- rhythmic order." Day and night, winter and summer, the rise and fall of the tides, hence boom and slump. The real difference is, of course, that the monetary system is controlled by man and booms and slumps are not inevitable. - One generation lived beyond its income, and therefore tho succeeding generation must tighten its:-'bcit'; and sacrifice. Such is the message of present-day finance, but ;to an increasing number the mysterious: A plus B theorem, when understood, advances another reason as to why our National Debt increased by £134,000,000 since 1918, and monetary reform is being clamoured for with'increasing intensity.—l am, etc.,