OTHER PEOPLE’S IDEAS

Wairarapa Times-Age, 21 September 1943, Page 4

OTHER PEOPLE’S IDEAS

CURRENCY CONTROL (To the Editor) Sir, —In reply to the letter signed by Maurice M. Whimp, Greytown, on September 13, a Government pledged to immediate control in the interest of the people of credit and currency and to recognition of the principle, that debt-free currency can be issued to the extent of unutilised productive capacity, is legislating in the best interests of the great majority of the people once the State is taken off the borrowing market. Interest rates would automatically fall. Furthermore, local body indebtedness is equally as much a national debt as is the national debt. Therefore it is the duty of a government so elected to lend money to local bodies at a low interest rate. Under the Democratic Labour Party's policy this rate would be 1‘ per cent. This would again decrease the demand for money raised through other sources. There is no such currency which could be termed “costless credit” as there is a certain amount of cost in the creation and administration of even debt-free currency-—hence the reason for the proposed small interest charge. The issue raised by Mr Whimp, re undue hardship imposed on people who have money out at interest, by lowering the rate of interest would be offset by the lowering of taxation and rates and the increase in the production of consumer goods, which is being retarded today by the higher interest rates, and the benefits which would accrue to the vast majority of people who do not have surplus money to lend. Ro the question of land values rising, due to the lowering of the rate of interest, no sane government pledged to, immediate control, in the interest of the people, of credit and currency would stand by and watch its legislation nullified in this way. One method which could be adopted would be to introduce legislation making illegal the registration of mortgages above the productive value of the land, at the average existing rate of interest prior to the now legislation being introduced. —I am, etc., R. E. CRAWFORD. Candidate Democratic Labour Party. RAIL CAR SERVICE (To the Editor) Sir.—ln an election pamphlet, issued on behalf of the Labour candidate. Mr J. Robertson, the following claim is made for the Labour Government: “Transport by rail has been greatly improved by the advent of the railcar, only made possible by the change in Railway control.” I notice, however, that in a pamphlet issued on behalf of Mr G. Mackley, National Party candidate, it is claimed that he “was directly responsible for the introduction of the present rail-car services and the timetable the Wairarapa line now enjoys.” I understand that actually the first experimental rail car was run, the main batch ordered and the timetable fixed before the Labour Government came into power in 1935. Does Mr Robertson dispute this correction and will he retire if he is proved wrong?—l am, etc., “STICK TO FACTS.” Masterton, September 20. GOVERNMENT & INDUSTRY (To the Editor) Sir, —The Government boasts of the industries it hag built up, especially as a war effort. That was necessary. Will one of their candidates give some idea as to how many businesses have been closed down through the crippling of private enterprise? This was most unnecessary. Tell both sides of the story. —I am, etc., INIZZY. Carterton, September 18.