CURRENCY REFORM
LABOUR’S VIEWS STATEMENT BY MR HOLLAND. (Per Press Copyright.) PARLIAMENT BUILDINGS, Labour’s views on the cut-pincy and credit problems were stat@|||by the Leader of the Opposition, Mr H. E. Holland, in the House of Representatives to-day, when moving his motion of no' confidence in the Government. Mr Holland said that .he was opposed to a policy of ..inflation, but lie supported a system.,pf controlled currency. . '/fit., UndeT the banicing laws of the Dominion, said Mr Holland, there was almost unlimited power for the issue and control of currency and credit. The control by tlie State of the existing Hanking machinery should 1 be. the first effective step in currency reform. New Zealand's problem was to get the goods she produced into use and consumption. There was an inherent absurdity in people being- asked to go without the necessities of life in the midst of plenty. No one would deny that, there was no shortage of goods, anti, no one would' deny that people were going ill dad and ill fed. One hundred economists argued that whatever could be produced could be distributed, and if they ooaild produce in abundance, they could distribute in abundance.
“I am not in favour of inflation,” declared Mr Holland. “I am not advocating it. The Labour party will establish a State Central Bank for the purpose of effectively controlling both credit and currency. I want to put it to the Members of the House that the/State can create money in exactly the same way. as the bbnks create it. We are not going to- adopt some new method.” •Mr Holland said that the expansion of credit for the purposes he had mentioned would not constitute inflation. After Merring to the experiences of Russia, Mr Holland said 1 that the Labour party would regulate the issue of fresh currency in accordance with a fixed price ‘level, with an increase in currency and credit as production increased. The purchasing power of the country, 1 said Mr Holland, was the people in the mass, and it coulld not be anything else. The people could only pay good prices for their goods when they wen? receiving good prices for their labour. It was universally admitted that an increase in the supply of currency and, credit, if rot accompanied by a corresponding increase in production, would mean inflation, and would raise prides and lower the real wages of : the workers.
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Hokitika Guardian, 29 September 1932, Page 5
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402CURRENCY REFORM Hokitika Guardian, 29 September 1932, Page 5
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