LABOUR POLICY AND MONEY

Evening Star, Issue 21745, 13 June 1934, Page 14

LABOUR POLICY AND MONEY

TO THE EDITOR.

Sir. —The people of Otago are. exceedingly fortunate to have in their midst two authorities' upon the question ‘of finance. One prolific writer in the. daily Press, very often' reminds readers that the members of the. Labour Party know very little about the‘intricacies of finance. Now, lo and behold., we hare an authority upon finance writing in the same strain in the 1 Evening Star.’ While the members of the Labour Party, according to your correspondent, Mr C. M. Moss, may not have the scientific knowledge of all the ramifications relating to our financial system, there is one great blessing —they are always willing to learn from people and be taught if those people are in possession of special knowledge upon these questions. In all sincerity! humbly beseech from your correspondent information upon the following questions:—;(l) If gold be the standard of measurement of our internal currency, in what way does gold, receive its value? ' (2)' Is there any possibility of stabilising the value of gold that we might have a constant measurement for onr currency in the same way that we measure our commodities bv the system of avoirdupois weights? (3) If the volume of our currency be increased the purchasing power is reduced in the same ratio in nine cases out of ten. Under what law does this take place, or what must the community do to stabilise purchasing power? (I) If the community decide to increase credit, what method are we to adopt to guarantee that the credit issued shall be utilised to remove destitution and help to restore prosperity? (5) If money is not real wealth, only a portable token representing real wealth, can the community issue credit upon privately-owned property?—l am, etc., R. Hakrisox. J une 12.

TO THE EDITOR. , Sir, —My friend Mr Moss quotes me correctly in the beginning of his letter. But in his after-criticism, lie evidently loses sight entirely of the latter half of the quotation, which reads;.” Adjustment. the result of a scientific system of costing and pricing—all a matter of bookkeeping—will prevent inflation as well as other lunacies of the present banking policy.” He writes of the “ value ” of money and of its being 11 possible to raise the value of paper money.” I would ask what he means. Is he one who believes that money, a medium of exchange, should possess an intrinsic value or value in itself? If he does, will be state a reason why? Js not the cost of everything consumption? Why talk in this machine ago of ‘'labour” costs?—l am. etc., John Gilchrist. June'l2.