STATE CREDIT

Hokitika Guardian, 29 July 1933, Page 6

STATE CREDIT

ESTABLISHMENT OF BOARD -v ✓ •'/ > URGED ■V' -

NEW ZEALAND LEGION SCHEME

AVELLTNGTON 25

The economic committee of the New Zealand Legion, after several months Of work, has reported to the national council of the legkm, and the report to' h e circulated to all the legion c-eritres contains the; following outlined proposals in regard to the establishment of a state credit board:— “The reassertion of the sovereignty of tlie Crown or people over money both 'as n medium for the exchange of goods . and. as; a meaure of wealth should he accomplished by the otablishment of a State credit Iward for the purpose of controlling credit and issuing currency, the powers of such board to be defined by charter. This body should be : lion-political in character and should operate upon the lines of the British Broadcasting BoaVd. The State Credit Board must control credit with the object of maintaining a stable price level. While lull credit is given to the private banking 'system, the fact must Ultimately he recognised that the interests of shareholders and depositors in private banks may and indeed do, conflict with the interests of the nation, as a whole.

“The function of the State Credit Board would be to safeguard the inter, ets' of tlie nation as a .unit and would expand and contract credit with the obeet of preventing undue fluctuation in internal prices. The board would finance alt public works and municipal bodies and create credit for this purpose*. The committee- is of the opinion that the view that. credit cannot be created; to finance public or private enterprise is a fallacy. “The credit board would make immediate. arrangements to, finance without interest private or public enterprise with a view to absorbing the unemployed into business and industry. “All importing and exporting would Bo done through the Credit Board with the object of rendering tlie internal price level ’ independent of external prices. Tile " State Credit Board woUid. liave the sole right to issue currency. It would exercise the proper functions of a State' central bank, j “The State, should reassene its sovereignity over the land on the following principles and with the following obj6ctfe:—To prevent speculation in the liuld, to prevent borrowing money on the land itself as distinct from improvements arid to ensure that unearned inurement- should bp the property of ifche nation as a whole and not of private individuals: LandoWricrS would, in addition to receiving compensation, have the Benefit of a stabilised internal price level ' . v