MR. A W HOGG M.H.R.

Wairarapa Daily Times, Volume XVI, Issue 4991, 2 April 1895, Page 3

MR. A W HOGG M.H.R.

THE CURRENCY QUESTION.

.•At tho usual weekly meeting of |P North .Wairarapo, Liberal Association, Inst evening Mr A. W. %K, M.H.R., delivered an address on tho currency question. In his opening remarks, ho said that bo did not profess to be specially acquainted with the subject, which was considered to be one of great difficulty, but ho maintained that in view of the importance to young countries, of dealing with finnnoial problems, that an endeavour should; bo made to master the difficulties. A fo\y years ago, the land question occupied a similar position, but now, thanks to tbo works of land reformers like Spencer, George, and Wallace, th<r, community understood it Sufflciontlj to insißt on their rights. . The result was, that in New Zealand, laws had, beßn.,pnssed which, had . tbuy been propose'd say fiftyjears ago, in Great'Britoin, the proposer's ■My, if not liis life, would have Wfl seriously endangered. Tbo ilws of landlordism, had brought about- such measures as the Land for Settlement Act, and he believed ■ .-the (ibusos of tho currency system would shortly bring about considerable reforms in the manufacture and , circulation of money. At the present time tho depression resulting from falling markets which overshadowed the commercial world wns attributed to the demonetisation of silver and the adoption of gold as the one standard of value, and it was argued that the adoption of a bimetallic currency would put things straight. Ho had read the opinions of a good many writers on the subject, and he had come to the conclusion that while the restoration of silver as a standard of value would undoubtedly have the effect of improving prices and helping the world's producers, tjjttnly real, lasting remedy, would behind in the demonetisation of the precious metals and the adoption of a material for currency pnrposes, capable of being manufactured to any extent required. In other words, it was held that a paper currency, should take the place of the metallic in which case gold and silver would take their place among the articles required intheartsnnd manufactures andwould possess avalncaccordingto their abundance or scarcity, and the cost of production. This would not necessarily imply that these metals would not be coined. Thev could still be used for change in the same way as copper, but they would be superseded by thepaper currency of tho State, which would rank as a full legal tender. The recent collapse of Australian banks and large financial institutions, the immediate and appalling consequences to thousands of families irretrievably ruined, and the present condition of the world's markets producing : embarrassments of an unprecedented nature among the suppliers of food < »{)otking— the world's producers, cried aloud for an investigation of the causes, That investigation was about to take place. A monetary conference was about to be held and he thought New Zealand and the Australian Colonies seeing how much . they were concerned were only de- ; manding a reasonable right, when ! they insisted upon being represented : at that Conference. The reason ■ why the adoption of gold as the only , standard of value, had done a great ' deal of mischief, was understood to h due to the circumstance that, ' while owing to increase of population ! and commodities, the demand for an extended currency yearly became ' greater, tho production of gold did ' not increase proportionately. Instead ■' of 'the National mints producing a ' ■currency adapted to the requirements ' of the communities which they ( represented, their coinago was ' controlled by dealers in gold : '3fff such adventitious causes ■ asthe discovery of new goldfields. ; It was obvious that with a gold ! standard the holders of bonds, or ■ capitalists, could contract the j currency atpleasure.and thus reduce ' the price of commodities, for in ' exact proportion as gold became ' scarcer and thus appreciated, the ; prices of products were depressed. ' This was understood to be the principal if not the sole cause of the falling markets, which had been ! experienced for some years. No great harm, it was true, would arise, : if the colonies were not largely indebted to the British capitalist, because the fall in prices was general and they would be able to get as much iron, machinery, and manufactured material in return for their wool, grain, and raw products as they did twenty years ago. But since 1872 gold had gone up in value nod produce had gone down, the |Ht being that New Zealand h~ing to pay its foreign debts '' in gold had now to givo the ' British creditor about double as much produce in liquidation of ' interest as it had when the loans ' were contracted. This applied to ■ the repayment of the Colony s public ' and private debts. It was maintained by the advocates of a national paper ' currency guaranteed by the State, ' and! issued on strictly scientific prin- , cip es in accordance with the growth ' of population and commodities, and the demands of commerce, that it would -place money some under popular control, and release millions of gold coins now in circulation for barter; that a note issue could be rogulated, while a metallic issue can not, To sum up it . was maintained that gold did not \ increase in proportion to the , growth of population and ( commodities, hence the fall in values • of produce, It was also contended ( that in equity we colonists, who • .were the food and clothing producers : Mt the masses of the mother country, . Would only be required, to pay loanß \ and interest on the same moneypurchasing power-as we borrowed < in, 'Either that or the bond-holders should be taxed according to the . appreciation of gold. With a gold ' standard firmly maintained, as at present, we would be required to pay our forty millions of debt, with sixty or seyenty millions worth of produce—calculated at the value of produco when the money was borrowed. But if it could be auccesßfuly contended that we should only liquidate our foreign liabilities according to the purchas- , ing power when they were contracted we would save produce to the value '. of nearty two millions annually , now going to the British bond- ( holder and money lender. In conclusion' Mr Hogg said be claimed'no originality in'regard | to'the views he had expressed, They j we're the result simply of a perusal , of the opinions advanced by English , and American statesmen and jour- j . naluts, and possibly they, might be Mhjrude and imperfect, bat he had j a'.littlo light in j upoti'a highly 'important'subie'ei' ' j 'Mif'A. W.'Rertalf 'having Wed a fgw questions, ifi Hogg was a, waf.ds a h&rly vote''..of'',thanks, for bis interesting'address,■•'