Debt-Free Money

Hawke's Bay Herald-Tribune, Issue 192, 31 August 1937, Page 4

Debt-Free Money

AIMS OF CAMPAIGN Close the Gap Between Buying Power and Production ADDRESS IN HASTINGS The provisioii of debt-free money bo that the purchasing power of the people could be so increased as to be sufficient to purchase the production of the country — this, briefly, was the aim of the eampaign for ecoAomic security as outlined by Mr It. O. Marks, M.A., of Wanganui, last evening when he addressed an audience of about 300 in the Hastings Assembly Hall. Mr Marks intimated that an Economic Security Club was to be formed hi this district to sponsor the moveinent towards attainment of thisaim, and that the issue was to bo placed before the electors at the next election. Mr E. D. Culjen presided, and after apologising for the absence of Sir Andrew ltussell and a supporter of the movement from Napier, who was to have been chairman, he intimated that he accepted the position in an entirely personal capacity and quite free from party politics. Mr Marks said that the catopaign was sponspred by no particular political party, but was an appeal to tho commonsense of the peopie. He was confident that if the proposals were looked at in this liglit it wohld be seen that the fulfilment of those proposals would lift the country out of the difliculties that now bese.t it. "The world to-day is sick; indeed, it is very sick," he said. "There is unemployment cverywhere, yet at the saiue time tremendous quantities of foodstuff ahd products are being destroyed; there is poverty in the midst of plenty, and this most celtainly should not be. It is to rdmedy this that the cainpaig/u for economic securrty is to bq launched.'' The speaker went on to attack the present financial system and emphasised that it was responsible for the major problems facing many countries throughout the world. He said that in ltaiy Signor Mussolini took control of the couhtry and found that money had to be produced. This he did by raising loans for Public Works, and for a time there was a boom, but eventually tlie works petered out and tho loans had to he paid by increased taxatiou. There were then increased uncniployment and increased taxation, so he eamburked upon war against Abyssiuia to provide an oiltlet for the uneniployed. Spanish and Chinese Wars. The present strife in Spain he attributed to "the miserable economic position that does not allow the people to have the f ull value of their production." Similarly with Japan, and tho result as iar as ihat nation Was concerned . was War upon Ohina, all becahse of the "present diabolic iiiiancial position of the country." In the tJnited States of America, one of the most interesting conntrics in the world, and perhaps the most liighly mechanised nation, thefe were 25,000,000 people existing on the dole, he said. Eor some time past the factories there had heen runiiing at only one-quarter of their efiicieney, It had been conteixded that world trade Wotlld solve the difficuities, but ho pointed to that during the slump only 7 per cent. of America' s .trade was export trade. "It is no good relying npon world trade," he dcclared, "The essential thing is the purchasing power of tbe people. That uiust be raised to enable tlicni to purchase the products of their country and to purchaso such imports as they require." Continuing his survey of the problems of the Various countries, the speaker referred to France as a country having many financial cricises, and said t'hat there. was just as much likelihood of civil war breaking out in France as in any other country in the world. In Germany it was a case of preferring guns to butter, and the standard yf living in that country was extremely poor owing to the tyranny of international finance. ... \ - England's Remedies. Eeferring to England, he said the remedy for the elump there was inflation. Worlc was invented -by such schemes as the- housing sclieme whieh he said. was introdueed to avert a financial crash. It was cleverly arranged, for the national debt was not increased, though the local-body debt was. Then followed the war scare. Tliere might have been justification for it, but it cert'ainly was remarkable that it came about just when required to givo a fillip. At that time it had "been stated by medical authorities that there were 22,500,000 people whose incomo was not , sufficient to buy enough food to keep them healthy. "People who afo supposed to know what they are talking about are already prophesying that there will be another slump in England when the arimlment rncd is finishcd," he said. "What then will lie the position of New Zealand? We at present are dependent upon London prices for our products, and if there is a slump in England those prices will fall. If we have to rely upon the threat of \rar to; biring, about increased prices to maintain our position, then 1 say tliat it 'is.a pretty rotteh system upon which we are working." Mr Marks pbinted out that during the jiast two years prices for wool had been vOry good, and that last year those for butter and meat had also been good, but if a tslump came in England those prices would immediately fall. History revealed, ho said, that the present svstem worked out on the lines of a siiimp and a boom. "It is really a case of slump and slim or boom and bust." he said. Concerning guaranteed prices for all or many of the products of npw Zealand scnt overseas, on the liiies adopted ivith dairy produce, he cOntcnded that the present system could not possibly stand 4

the etrain that would be exerted upon it if such steps were taken. "I ain hopeful that the Government will realise that the financial system requires radical changes and that it will attempt to make those changes," he said. "I hope it will be realised that it will need to make those radical changes in the" financial system, not the control." Change the Ruies. There was a need for a change in the rules of the game, he contimied. The rules shonld be altered to enable the people to enjoy to the full the maximum product of the country., less such producf as was required to be exchanged for the imports that also were required. The purchasing power at present, hc said, was insufficient and there were no signs of any permanent or deilnite prosperity. There was, in fact, insufficient purchasing power to buy the fequired imports, The purchasing power should be increased so that the farmers could farin their lands acientifically and have adequate fertili'sers and labour. If this were made possible, tliere would bo a tremendous increase in the production of the country. The people should be able to bny as much as they wanted of the country 's produce and should be able to buy imports, he said, and further they should be able to purchase all the goods that local factories could manufacture. To bring this about the sponsors of the Economic Security Campaign urged that there should be an investigation made into the productiveness of the country and into the purchasing power Of the country f and in tho event of the purchasing power not being equal to the productiveness the gap sliould be filled by debt-free money — money that was ihterest-free and not repayable. This debt-free money could be obtained through the Central Bank. "It is necessary that the gap should be filled by debt-free money," he said. "If it were not so, then the cost of it would push up prices. A portion of the debt-free money would aetually be usecl to reduce prices. Then again, i.t would bo used to reduee taxation and further to ensure the farmer of proper prices for his products. And again, some of it . would be used to increase pensions. In ' this way there would be no increase in cost of the debt-free money." The Politicaa ' Aspect. Dealing with the political aspect of tho campaign, Mr Marks said that the prOposal was to have Parliament say to the experts that they were to produce results along these lines. "Let us found an economic system on a commonsense and not an idiotic basis," he said. " "The campaign is non-party. What will be done will be to obtain the will of the people, and when that is obtained the sitting niember will be approachod by the club sponsors and asked if he is prepared to givo heod to that will of the people." Further explaining the campaign, Mr Marks said that it would shortly be launched in Hastings. Circiilars and pamphlets would be distributed to householders, and latcr there Tvould be a canvass made and . the householders and electors would be asked to sign apledgo binding them to support the campaign at the next eleetions by votwg against the member who was not prepared to. givo heed to a majority expression of approval of tho electors on tho proposal. Tho speaker eoncluded his address with an appcal to the people to givo full oxprcssiob to tho major principlo of doniocraey, that of exercising each and every mclividnal will, and he urged them to make an efiort to support tho campaign by joinmg up with tho club and help' to reduce povcrty and war to the minimum. After ansivering a number of questions, the speaker was accorded a hearty vote of .tkanks for his address.