PUBLIC OPINION

Waikato Times, Volume 125, Issue 20920, 27 September 1939, Page 11

PUBLIC OPINION

As expressed by correspondents whose letters are welcome, but for whose views we have no responsibility. Correspondents are requested to write in ink. It is essential that anonymous writers enclose their proper names as a 1 guarantee of good faith. Unless this rule is complied with, their letters will not appear. THE “MONEY TREE REFORM” (To the Editor) Sir, —Previously you have kindly afforded me space to question the expediency of issuing what is known as costless credit or public credit, and my objection was bas°d upon the opinion that money ireely issued leads to an inflation of prices in the lines affected—State housing, for instance. With predetermined, or fixed prices, this objection cannot arise, though an excess of quantity might be thrown on the maikct. In the present war circumstances this is hardly likely to occur, and I do not see any valid reason why our exportable surplus should not be bought by the Government with a fiduciary note issue. The effect would be to spread the burden of levy over the whole community, and if the issue were strictly confined to purchasing goods for export, it could only increase with the increase of goods available for such export. This is quite a different proposition from financing private business with State funds, and the use of public credit for public purposes is with pre-fixed prices within the range of practical politics.—l am, etc., E. DAVIES. Cambridge, Sept. 25. DEBT-FREE MONEY (To the Editor) Sir, —All enterprise, social services and industrial undertakings require an instrument of exchange, hence, especially at this juncture, we must stress the necessity of debt-free money. Finance by taxation in many instances degrades, inflicts hardships and lowers the standard of living. The majority of those who pay taxes direct get it back in prices, for the very simple reason that the price of every article includes all costs, rent, rates, taxes, etc. Many of these quite unnecessary added costs—interest for instance—are purely artificial, and have no relationship to productive costs.

For instance, if taxation were reduced by one half and the deficiency met by a sum of money ear-marked (a mere book entry) by the Government for that purpose, the benefits derived would be great. On the grounds of common sense relative to self-preservation, conditions determine debt-free money. Here I have in my mind’s eye the defence of the Dominion. Money is required for the objective in view. Money, the instrument of exchange, is costless to create, its shortage is brought about by the banks to create an atmosphere of shortage and they thus “let it out” at a high rate of interest. It is the duty, especially of a Labour Government, to create debtfree money.—l am, etc., HARRY WOODRUFFE. Auckland, Sept. 25.