AN OPEN WETTER TO THE BUSINESSMEN OF NEW ZEALAND

Auckland Star, Volume LXXVI, Issue 231, 29 September 1945, Page 7

AN OPEN WETTER TO THE BUSINESSMEN OF NEW ZEALAND

Published by Arrangement

Although the war against the Axis Powers and their satellites has been won, it is no exaggeration to assert that we are confronted with an economic and financial situation of extreme gravity; a situation which is fraught with the certainty of dire catastrophe unless—and this depends to a very great extent on you—immediate and effective demands are made on our legislators in Parliament to have the present unjust and inadequate financial and economic system rectified at the earliest possible moment. No person, and certainly no business man, should delude himself that now the war is over he is secure in the control and enjoyment of his own possessions. Actually, if we but have the courage to face unpleasant and disturbing facts, it will be realised that never before was the individual less secure in his own world than to-day. Professor F. A. Hayek, author of "The Road to Serfdom" (a book which has created a mild sensation throughout the English-speaking world), as well as a number of other far-sighted and outspoken writers, has convincingly demonstrated that the same agency which helped to build up the aggressively strong power of the Nazi system—the Finance-Capitalism of Britain and America, comprising those who have the power to create, issue and recall money—is at work to-day, and it should always be remembered that their economic planning and State regimentation is diametrically opposed to free enterprise as typified by Industrial Capitalism. How many business men appreciate, for instance, the far-reaching effects and hidden dangers of the Bretton Woods proposals? How many business men &nd politicians realise that here is the most powerful scheme ever devised for the international control of our money system—under a gold standard—by a world monopoly which recognises no outside authority or responsibility to any Government? In the internal sphere the business men of New Zealand have been fighting the issue of private enterprise versus State ownership, choosing the banking system as the common battleground. But it is now generally admitted that our banking system is not a sound ground on which to fight this vital issue. While there are niany avenues on which the Government should not encroach or interfere, surely it cannot be considered unreasonable for the State to exercise its prerogative to see that our money system is brought under proper control? What is important — and this is where business men should assert themselves — is the principle governing the control of credit and currency and not so much as to who does the actual controlling. Business men should insist that our money system be made sound and adequate. The guiding objective of control should be the maintenance of a stable internal price level, ensuring a just and constant measure of value for our monetary unit. That is not what International Finance wants. Money Power wants a fluctuating monetary unit and a price level for commodities that fluctuate with the price of gold, which they control. What an iniquitous system to inflict upon humanity after emerging victorious from a world war! For how much longer will business men fail to realise that the prevailing obsolete and fraudulent monetary system, is the evil at the root of most of our economic ills? Why do they so blindly and stubbornly refuse to face up to facts in the economic and financial world testified to by most of the leading authorities on finance and banking; facts which speak for themselves if only men will exercise their own judgment? What business man is not aware of the crippling. effects of the enormous burden of national and private debt piled up under orthodox finance; of the crushing burdens of interest and taxation on both industry and the individual which this system must inevitably produce? How can any intelligent man ask for" substantial reductions of taxation when he actually opposes or refuses to support the reform of a system which, as experience in all countries and under all types of government demonstrates, must of its very nature breed ever-increasing debt, taxation and servitude? Moreover, it is this system which inevitably generates strife and strikes, class warfare, discontent and mutually conflicting demands. It is this system that is responsible for the quite illogical attack on private enterprise, on the so-called "profit motive," together with the ever-growing demand for Government controls which can onlyresult in more restrictions of individual freedom to both Industry and Labour. The remedy will not be found by mere wishful thinking; still less by reposing confidence in the empty promises of party politicians. The task calls for courage, intelligence and co-ordinated effort. These are qualities which specially fit business men for such a task. In the international sphere pressure should be brought to bear on the Government through individual members of Parliament to reject the dangerous Bretton Woods proposals. In our internal economy we must face up to the fact that the root cause of our economic troubles is inseparable from a.defective money system. It is for the business men to find a remedy for the ills now being laid at the door of private enterprise. To this end, our credit and currency should be placed under the control of a non-political statutory authority whose responsibility it shall be to maintain a stable internal price level. So as to put an effective check on our ever-growing national indebtedness and enable us to progressively reduce taxation, all new money, if and when required for national purposes, should be issued by the Reserve Bank interest-free at its source. These proposals are not radical. They are not extreme; they are not dangerous. They are conservative, constructive and practicable, and have been urged by many of the world's ablest economists and other persons of high authority. Always there comes a time when old traditions must be reviewed, revised, or part company with truth and justice. That time has come for orthodox finance. The issue as far as this country is concerned rests with you. The only way in which these essential reforms can be made a reality is by effective action. Have you the initiative .and foresight to act? To act now, before it is too late. Inserted by the League for Economic Democracy, Phoenix Chambers, Auckland.