CURRENCY CONTROL.

Waikato Times, Volume 119, Issue 19883, 12 May 1936, Page 9

CURRENCY CONTROL.

-- ”MM ‘ ll (To the Editor.) ”1‘“ Sir,——ln reply to the queries addressed to me by Mr R. Stead I must admit that the ideal control or ourrency and credit is not yet attained.\ Public opinion must insist on monetary administration being removed from the fear of political interference by placing it under the control of a public board representative of the community. This board would carry out the policy laid down by Parliament from time to time.

The best way of describing the present situation is to say we are on the road to success, provided all sec~ lions oi“ the community stick together and meet the diiileulties that arise in a spirit of sweet reasonableness: .\listakes are going to he made, admittedly. but all will agree that we have an intelligent Government of idealists. who are determined to improve conditlons for all. The writer is not in the least afraid of the legislation that is being passed; there is not the slightest cause for alarm. The people 01> New Zealand can look forward confidently to a prosperous future. as they glide easily through the “door of scarcity” into the “age of leisure and plenty" for all. in the writer's opinion some of the legislation could have been improved. For instance, a compensated price instead of the guaranteed price would have ensured justice to farmers. After listening carefully to the Hon. W. Nash on the radio the writer is convinced that the Minister has not considered the compensated price, or he would not have dubbed the advocates “wreckers.” '

There is obvious confusion or thought in regard to finance at; the Reserve Bank. London ilnanee has nothing whatever to do with New Zealand finance, and in the writer’s opinion it. is absurd to debit an account at the Reserve Bank with New Zealand money and credit the same account with sterling. The two accounts—New Zealand and London—shouid be kept entirely separate. If that were done there would be no debit balance at the Reserve Bank against the Government. However, under the present arrangements a debit balance will be shown, and the people must educate themselves to realise that money is only figures in a book, and that the banking system ports with nothing in making an ad—vance. Therefore, any debit balance shown should simply be struck out. Any attempt at repayment \Viii inflict unlneritcd hardship on the community’l‘imsc good people who are going about predicting "him-l; ruin" as the result of the Um'ormncnt‘s reign \\oulti be well advised to give some serious thought and study to iinunrc. 'l’hvy roulrl thrn assist the Govern—inrnt by construrtiw rritivism, in—stead of [mating the iiii', us at present. —1 (till, etc., 11 ti. YIJUNLL lim‘tlonton, May S.