VARIOUS VIEWS

Rotorua Morning Post, Volume 2, Issue 431, 16 January 1933, Page 3

VARIOUS VIEWS

THOUGHTS AND SUGGESTIONS ON FINANCIAL QUESTIONS. CURES AND CRITICISMS. (Puhlished by Arrangements with the Farmers' Union, Auckland) Poverty. "Poverty has been for long in this country a purely artificial condition, which it is becoming increasingly dangerous to enforce." — From "Money versus Man," by Professor Soddy of Oxford University. * * * V Evils of iReduced P.P. It mustf be remembered that, whether we are on a gold or any other standard, the direction in which the price level moves is immediately determined 'by the volume of money, as modified by its rate of turnover. in relation to the volume of business. If the supplies of money increase beyond the requirements , of business, prices tend to rise; if, on the other hand, 'the supplies of money are inadequate, prices fall. . But when prices begin to fall, manufacturers and traders who have bought raw materials and stock at the higher level are faced with a loss and compellsd to restriet their operations. Fewer orders are given; trade declines and unemployment grows. Thus the immediate effect of a reduced purchasing power is diminished trade and increased unemployment. — Rt. Hon. Regin^ld McKenna, chairman of the Midland Bank. * * # * An N.Z. Suggestion. The item "coin and bullion" has stood in our bank returns at between £6,500,000 and £7,000,000 for a long time past. Since September gold has risen in price from about £3 18s to about £6 per ounce. A reader asks what is to stop the Government from taking* over the banks' coin and bullion at tbe banks' own published valuation. It looks as if this might yield a few millions badly needed for unemployment relief, etc.? Compulsory resumption at tbe owners' valuation is not unfair. — A. N. Field in "God's Own Country" (N.Z.). * * * * Credit for War — Why Not for Peace? Mr. Nelson E. Smith (Greenwich, Sydney), makes this interesting observation: In "The World Crisis" Winston Churchill says: "Indeed, to add nought, or a couple of noughts, to any requisition or plan for producing War supplies, would have coiistituted an act of merit." , How simple it was to supply the demands of war, to harness the nation for destruction. No waiting conferences of economie professors, as to whether this would lead the nation from the path of "sound finance." Finance never collapsed under the terrific strain of war or were there ever whisperipgs of such a thing hap-

pening. During the war there was no unemployed, no Premiers' plans, no poverty. Money flowed freely. What we can do in war, surely we can do in peace? * * * The Chureh Aroused. Mr. F. W. Taylor, State Hon. Secretary, states: "From an official letten, received from the Presbyterian Church of Australia, we learn that the Presbyterian Church is taking steps to investigate economic questions from the Christian viewpoint." % ❖ * A Geneva, a Smolce Screen. "The days of flag-wagging are over. Women realise that Empire unity will be promoted by levelling up conditions, not slgyishly adhering to the traditions of the past." So says Miss Ruby Rich, of Sydney, after attending the British Commonwealth League's Confierence, i*epresenting 50,000,000' women, of all nationalities: "The experts at Geneva," she said, "are only creating a snaoke screen behind which the nations are increasing, not limiting armaments." * * * * The Great Defect. Mr. Arthur Henderson, hon. secretary of the Crow's Nest branch of the D.S.C.A. (Sydney) writes: "I observe from the home papers that Sir Arthur Salter, who was the first generkl secretary of the Reparation Commission, made the following remarks during the course of a recent address: "Productivo capacity is ample. Human demand is almost illimitable, only all of us are too poor to buy what others make, because they are too poor to buy what we make. Productive capacity is failing to convert itself (as it ought) into purchasing capacity. This is a defect of human organisation, and what man has made, man can reform." A writer adds: "Even sewer rats only feel the pinch' of' hunger when there is too little to divide, but man manages to starve because he can produce too much." * -i= * * Unconstitutional Money. Mr. Theodore, former Federal Treasurer, in speaking at the recent State election, summed up the position regarding the proposed Lang debentures in the following terms. "Under the Commonwealth laws relating to currency, any note or instrument issued hy a State for the payment of money shall not be legal tender, iand no bank shall ciculate such note or instrument." ' Theodore said nothing about the banks issuing credit to the tune of several hundred millions each year — and that this bank credit functions exactly the same as money. Why aren't (thje nation's laws lenforced against the banks ? * * $ :|e "Why Isn't It Adopted." A radio-fiend friend of the early days of broadcasting said, to me the other day: "If Douglas Credit is right, how is it that people are so foolish as not to adop-ty it?" The reply for a starter was riaturally, "How was it that you and were so foolish as to listen-in on a crystal set when all the time — if we had known enough — we could have had a loud-speaker plugged into the electric light? The tardy acceptance of new ideas is no proof of their incorrectness. The new idea comes into practical being wh'en ' enough people who are not interested in maintaining the old idea learn of it. — G.W.B. ' ■ ;

closing factories and putting more people on the workless lists. It -is encouraging business, promoting employment. Already 9000 have gone off the dole into employment (ap-art from the Commonwealth relief- scheme). Business enterprise has found confidence. Building contracts are awaiting today's results. — "S.M. Herald." Credit Monopoly There is no corner in the present economic circle. It is a circle of debt erected hy the Credit Monopoly, and without a change of our economic system no one can escape from the circle except by finally dying of starvation. There will be few natural deaths in the future if the power of the Credit Monopoly isn't broken. — F.W.T. Usurping the People's Credit. If you asked a bank to redeem one of its £5 notes in legal tender it would hand you, what? Some other bits of paper. The only value behind the paper is what the public puts there itself. And th'e public pays the banks per cent. per annum for bank-manu-factured money based on next to nothing but the public's own property. — A. N. Field in "Gods Own Country" (N.Z.). '