POINTS OF VIEW.

Auckland Star, Volume LXVI, Issue 249, 21 October 1935, Page 10

POINTS OF VIEW.

THE ONLOOKER'S CASE.

THE EXCHANGE LEVEL. / I have read with interest and some amazement Mr. W. Gray's comment on your editorial of the Bth inst. and your comment on Mr. Gray's comment in your issue of the 14th inst. Surely it cannot be seriously contended that it is possible for New Zealand banks to transfer their funds to London. All they can do is to sell their London funds to importers and to the Government of New Zealand to pay interest in London, or to invest' them in London until they can be purchased. The Right Hon. Reginald McKenna, I eminent banker, states emphatically that money, as money, cannot migrate. When we send gold abroad it is not as money, but as a commodity, as butter or cheese or beef. Now. the only money in New Zealand to-day is Reserve Bank notes, silver and copper coins and cheque money, the largest part of our , money, which is indicated by credit and debit figures in bank ledgers. None of this money could be usefully transferred to London. Indeed, there is no need for our banks to transfer money to London, if they could do so, for the simple reason that our exports, sold in London, are constantly building up London credits which can be used only in London to purchase London goods or foreign credits available through London banking. When we say therefore, that New Zealand banks are transferring New Zealand funds to London, all we mean is that New Zealand traders and importers are using their New Zealand credits to purchase London funds with which to buy London goods, or, through London, foreign goods. The New Zealand banks have acquired the London funds through their advances to New Zealand exporters, and when the ■ advances are spent by exporters their cheques establish credits for traders and importers, who use them to purchase sterling. Thus the New Zealand banker creates money in New Zealand to enable payment to exporters whose credits filter through the community to importers who use them to purchase London funds held by London banks to the credit of New Zealand banks—a quid pro quo for New Zealand bank advances to New Zealand exporters. The surplus funds in London are most probably due to the following factors: (1) Exporters instead of spending the whole of their credits are applying them to reducing bank overdrafts, with the result that the new money created by the advance is not used to purchase imported goods, but is extinguished in wiping out depression debts. (2) Wages, salaries and other incomes have not been raised sufficiently to enable the importer to obtain the prices he must charge for imported goods; 25 per cent exchange plus 5 per cent sales tax plus freight and Customs duties plus wholesale and retail costs, and profits are insufficiently provided for through the bank advances to exporters. It follows, therefore, that New Zealand people are compelled to economise- as regards imported goods. (3) Bankers require to attract to themselves "fixed." deposits; approximately 40 millions of New Zealand credits are out of circulation. The remedy woutd seem to lie in an increase in wages and all insufficient incomes to enable consumption and use of all the goods and services which the workers, the wealthproducintr classes> are now providing. W. J. GATENBY.

j EVOLUTION THEORIES.

In reply to "Ace," it may be argued that the theory of biological evolution is a creed which the facts do not substantiate. If it is a fact that modern life forms have evolved from primitive and more minute foijms, then one would expect *to find, even at this early dawn of human knowledge, countless clues pointing the route whence modern forms have come. The clues, however, are all miseing. There is not even a definite clue between the ape and man, much less is there any evidence whatever that the ape evolved from lower and less complex forms of life. The I theory of biological evidence is sheer unsubstantiated presumption! That variation takes place within a species is, of course, a fact. It could not be otherwise. Nature insists that no two units of any organisms shall be precisely identical. Reproduction has never succeeded in producing precisely identical units. Nature provides an absolute identity in time and space for every living or inert organism. Variation is one thing, but evolution is another idea altogether. Biological evolution is devoid of proof. Each organism ie a complete mechanism in itself. If it were not, it could not live. It could not function to reproduction. To change an organism to more complex form necessitates a recasting of the whole mechanism. How can one conceive of a fish as capable of developing four legs so as to be able to walk on land. Such a thing would involve a complete alteration in skeletal and organic design. How can any form of empirical evolution account for piecemeal development of such closely interrelated and functionally dependent services ancl organs as the lungs, heart, veins, arteries and capillaries of the blood service? When life depends upon functions, the functions must be, otherj wise life is not. However, it is impossible to deal with this eubjoct adequately in the space of.a news letter. One cannot be dogmatic about the subject but the onus of proof of the fact of' biological evolution is upon those who assert it. Can "Ace" bring forward proof of mechanical evolution as distinguished from mechanical variation? Quotations from authors are valueless nnle'se the quotations are evidentiary of facts and not of mere opinions or presumptions. P. B. FITZHERBERT.

ARMAMENTS.

The review of world affairs by his Grace Archbishop Averill is somewhat marred by the complacent references to the allegedly noble part played by the Government of Great Britain in connection with the armaments race. "England," we are told, "was the honourable exception to the breaking of the Versailles Treaty signatories contract with Germany in the matter of reducing armaments." Yet what do the indisputable figures show? The League of Nations Statistical Year Book of the trade in arms and munitions, 1934, shows that in the five years, 1928-32, Great Britain played the predominant part in the world armament trade, being responsible for an average of onethird of world exports. Reliable figures also throw a different light on the convenient myth of British disarmament. The statistics of the American Foreign Relations Committee (?), for instance, show that not France or Germany. Japan or Italy, but U.S.A. and Great," Britain' respectively have spent more money on armaments during the whole post" warj period than any other of the nations they have so gravely lectured on the necessity of disarmament. • T. STANLEY.

MIND AND MATTER. In a"recent issue there was an article on "Materialism and Mind." Now, being a humble student of psychology and various other sciences, I have followed these studies fairly closely. Those who have done likewise, I am sure, cannot fiecept the opinion of the writer "Ace." However, there is one good point about this subject. In the main it will arouse or call up those interested in the welfare and progress of right thinking, and there are oceans of thought of various degrees. Even take this for reflection from Milton's "Paradise Lost": — And chiefly Thou, O Spirit, that dost prefer Before all temples the upright heart and pure, Instruct me, for Thou knowest: Thou from the first Wast present, and with mighty wings outspread, Dove-like, sat'st brooding o'er the vast abyss And mad'st It pregnant! What in me is dark Illumine ; what is low raise and support, That to the height of this great argument I may assert Eternal Providence, And justify the ways of God to men. I am sure there are men and women in New Zealand who are more able to i throw more light on this subject than I am, for I have had no college education, but we naturally wish to know causes; i but it may be that Nature will not i reveal causes to you at all, but only facts. Why and how a thought or wish of mine which seems wholly spiritual I and mental should produce the physical j result of setting a particular nerve in I tremulous motion, and why that motion should in turn cause a muscle to contract, is as great a mystery to me as ever. JUST A STUDENT.

SHIPPING COMPETITION.

By his letter in your issue of the 12th inst. Mr. H. E. Vaile subverts the patriotic and wholesome doctrine that it is both the duty, and to the advantage, of the members of the Empire, and of the government of the Empire, not only to safeguard the integrity and to secure the safety of the Empire,' but to protect the interests and welfare of the Empire as well by all legitimate means. Mr. Vaile places "new trade and money" from lorcign sources far above Imperial interests; moreover, mere pride of race and loyalty to the flag simply count for nothing if he can travel by a "better boat" of foreign origin. Of course, if New Zealandera prefer, there is nothing but patriotic instinct to prevent them travelling by foreign ships, buying foreign motor cars and what not. But whether or not such New Zealandors will escape the charge of immolating their patriotic duty will be an open question. This because the competition of foreign subsidised shipping, estimated at £30,000,000, and the low running costs of the shipping of other competing countries, spells ruin and disaster to Imperial shipping interests. It is, in my humble opinion, the duty of every citizen of the Empire to choose British service, even if it savours of monopoly, rather than to encourage foreign intrusion planned for our undoing. BRITAIN FIRST.

THE TOWN HALL ORGAN.

The failure of Auckland to maintain a city organist is regrettable in the extreme; every English city and town of any size has its- properly appointed city or town organist. The value they give in return is immeasurable. If anyone in Birmingham, Walsall or any other part of England, Scotland or Wales suggested as an economy measure the removal of the organist, they would have to "get in out of the rain" of condemnation. We who love music are deeply indignant that Auckland, our Auckland, is to be stinted of what is a necessity. Music is as vital as food and a properly appointed organist, paid as he should be by a wealthy city like Auckland, is urgently necessary. He shoulcf also be left a free hand. He knows his audience, but true organ music, not "mirth and melody," as suggested by some, is what we have a right to expect and which an organist will fjive right gladly. As a Birmingham-born individual I know the value to that city and the refining force that the magnificent organ and brilliant organist exert. People enter as to a holy place; silence is imperative. The recitals are free, n penny programme is optional and the audiences contain leading and influencial men and women in addition to the many shop assistants whom the Wednesday early closing day bring in to spend a part of their weekly holiday in a renewal of spirit. Not many years ago Auckland organ recitals we're crowded; tho same people attended every week; then the fatal mistake of altering the charges to 1/6, 1/ and 6d brought failure. L. CARRADINE.