WAY TO PROSPERITY

Hokitika Guardian, 17 June 1933, Page 3

WAY TO PROSPERITY

(By X). • Probably the best addresses yet deli i ered oji tin;, steps,necessary to remove tne “slump winch is bringing disaster to the manutactunug and commercial community, and po.eity and distress to the people generally, was -that made by Mr Atmore, M.P. for .Nelson at: Auckland last week, lie contrasted the acting-Prime Minister (Mr Coates; statement that “We must iace the the future with calm determination,” with the utterance by President Roosevelt, “We must act, and act quickly, lie also quoted the words of Pope Pius XI. to the effect that: “immense power and despotic economic domination is concentrated- in the hands of a few,” and “This power ‘becomes particularly 'iriesistible when exercised by those who, because they hold and control money, are able to govern credit and determine its allotment, for that ieasoii supplying, so to speak, the life blood to the entire economic body and grasping, as it were, iii tneir hands the very soul of production, so that no one. dare breathe against tlieir will.” Mr Atmore farther quoted a resolution passed by the London Chamber o. Commerce, representing some 60,000 business firms: —

“That in the opinion of this council monetary reform is of outstanding importance. The arrest of progressive deflation is in their view the condition precedent to a restoration of wo no prosperity, and >no other measures which may be taken can prove effective substitutes.”

Lord Bledisloe was also quoted as having stated that “the volume ol j money iu actual circulation at any one time should be equivalent to the value i of goods on the market.” With these authorities to back him Up. Mr Atmore proceeded to condemn any further borrowing either locally or abroad and said it was time that New Zealanders had as high appreciation* cif j their own credit and productive capacity j as the lenders had. The banks lent! paper ; mbnej r t° the Government on the people’s security, and fh e wise course would be to issue State notes, backed by the public wealth of the people. The issue of State notes would obviate the payment of interest, and when done in the form of Bradburys at the beginning of the war was highly approved by an eminent banker, Mr Walter Leaf, formerly chairman of the Bankers’ Association of Britain.

It was hardly surprising after Mr Atmore’s address that the following resolutions were carried unanimously: “That since under modern scientific conditions productive capacity is unlimited, and since the existence of indigence and unemployment throughout a large portion of the population demonstrated the fact that tho present monetary system is obsolete and a hindrance to the efficient production and distribution of goods, in the opinion ol this meeting the Government should take immediate steps to bring in the necessary economic reforms to enable the people of this Dominion to enjoy the benefits to which our present productive capacity entitles them.” Also that “this meeting cf Auckland citizens calls on the Government to immediately' do something to remove the present depression or resign.” But it will take something more than Mr Atmore’s address, good as it was and backed to a certain extent as it was by such high authorities, to convince thoughful people that if would lie wise to allow any Government to issue unlimited paper and declare it legal currency. No doubt, currency will luv’O to be issued locally to moot the country’s requirements. Tho position at present is intolerable and disastrous to all sections of the community. Also America has given a lead which will no doubt

be followed by all other countries. But the wisdom of taking action just now while the World Economic Con.erenow is sitting to deal with this very currency question may well be questioned. Also it must be clearly laid down that sound economic laws must govern the issue of any currency—whether it is to be purely local or not, a s it is essential it must have some fixed value ratio in relation to other currencies of tho world. Unless safeguards and efficient safeguards are made, the idea of issuing paper which may become /absolutely valueless outside New Zealand, and yet which might lie used—if. declared legal currency—to pay off all internal debts, and meet all obligations, will not bo likely for a moment to'rec-eWe the sanction of tlie people. I will re or in a later article to these safeguards which are now a matter of vital importance, as very shortly there must lie a complete revision of our currency system. All are agreed that the present system lias collapsed under the economic Conditions following the \\ur,