Social Crediter Opens Campaign At Taupo

Taupo Times, Volume VI, Issue 286, 1 August 1957, Page 4

Social Crediter Opens

Campaign At Taupo

"Social Crediters have. been cal~ led- the Tunny Money' boys, and the something-for-nothiug people. This wouid be eorrect if we owned the trading banks, but I assure you we do not own the banks," said Mr H. J. Buckingham, Social Credit candidate for the Rotorua seat, in a pre-electiou address at Taupo. Mr R. T. Gifford preslded over an ai> tendance of about 50 in the Wai? Memorial Hall. The meeting was orderly, and after his speeeh, Mr Buckingham answered several questlons. "It is amazing to hear Government and Labour members proclaiming the fact that the banks do create money," he said. "Mr Goosman said in the House 'Of course the banks create nioney.' Mr Jack, speaking at Reporoa and in this hall last April declared : Tt is now an established fact that the banks create money, but very foolishly they have soft-pedaHed on this fact.' "FUNNY-MONEY BOYS" "The fact tlrat the banks create nioney was established a eouple of centuries ago, but the fact has now been macle public," said Mr Buckingham. "Now, I ask you, who are the 'funny money' boys? A Social Credit Government will restore to the people the sole right to issue money, or linancial credit, as it is termed, "As our population grows and production increases more credit and money is required. For instance, ihe money suppiies of New Zealand are app*-oximately £400 million, Australia £3,500 miliion, United Kingdom £18,000 million, United States 200,000 million dollam The difference between the countries is accoimted for by population and production, "Where has all the money come from? — 95 iier eent. of it is paper money in the forni of notes and cheques, and just figures written i?i ihe bank ledgers. Ai! this created by the oanlvs out of an inkwell. "When production rises, more credit is issued via the banks at interest. TJnder a Social Credit Government all money requirements will he issued by the people debt-free. In other words, the Government will create it at cost of ereatlon. FUNCTION OF BANKS "The trading banks will not be nationalised, but under Social Credit they will revert to the true purpose of a bank. That is, gatliering idle savings of the people and re-Iending it to people who desire a loan. The Auckland Savings Bank is a good example of a

true bank. The trading banks, of. course, will earry on as the nation's book-keepers oy keping current accounts for customers at a fair fee. "The resuit of the present system, that is, the trading banks creating all the money requirements at interest, can only ernJ in unrepayafole debt. I say unrepayable nationally because we are asked to pay back more than was originally issued. "Put 800 gallons of water in a taiiK, and I w ill defy anyone to take out 840 gallons. The bank puts £800 into circulation and ask us (who under law cannot create money) to repay £840 (£800 at 5 per cent. ) . "As we cannot pay the extra £40 we must go back to the bank for a further loan, but as long as there is interesr, on the issued credit, it is a physicai impossibility to pay it all back ou a national basis. "llence a never-ending spiral of inoiuiting debt, risiug prices, increasiiig taxation, and a fight for survivai among workers, business men and farmers. The cry goes up for moro wagcs, get production costs down, and in mosl cases an appeal for highor clia rges. "INFLATl'ON IMPOSSIBLE" "The Social, (Jredit Goycrnment, having sole issuing rights for credit, will put into circulation money co-related to the physicai faets, That is, the money supply will equal production. Infiation will be impossible. "As goods will equal money, wdierever possible, there wdll be no interest charge, only an administrative cost. Sucli new issues when required can be put into circulation via reduced taxation, capital works, local bodies, or to tlie general public by way of dividends. "Social Credit stands for the freedom of the iudividual. We believe tlie State should be the servant of man, not man tlie servant of the State, w hieli is the avowed policy of the Labour Party, and all Socialists. "If a Government can reduce community costs, tlien as a Government it is bound to do so. If it fails, then it is treacliery. "Social Credit will give the peol>le the Government that it wants. We believe in decentralisation as much as possible. Surely local bodies and hospital boards can run their own affairs. If they cannot, then who can? " 'By their fruits you sliall know thern.' Look at the fruit of the present system, and then decide as an iudividual wliether the fruit is good." i i