General Election

Press, 1 December 1978, Page 12

General Election

Sir, —Letters in your correspondence columns indicate that many people fail to understand Social Credit monetary theories. The reason is that they do not understand our present monetary system. The first question to ask is: “What is money?” The second is: “What is the purpose of a monetary system?” The third is: “How does money come into existence? ” Mr R. W. R. White, governor of the Reserve Bank of New Zealand is recorded in the October issue of the Reserve Bank bulletin as saying that intermediaries such as the banks merely lend the money lent to them by their customers. He includes the trading banks in his definition of intermediaries. This fallacy has been exposed so often that it is incredible that a man occupying such a responsible position can entertain it. The Reserve Bank and the trading banks in New Zealand are creators of money.—Yours, etc., A. MACKAY. November 29, 1978.

Sir, — Varian J. Wilson (November 28) and V. F. Wilkinson (November 29) should look at modern Israel, West Germany. Austria, the Benelux and Scandinavian countries, all of which have proportional representation electoral systems. They all provide “sound and effective, government,” more so than New Zealand. It is a myth that proportional representation generates a “multiplicity of parties”; Britain has more parties in its Parliament than most of the countries cited above. As for Cedric Mentiplay (November 28) and his " absurd comment that proportional representation leads to a “loss of human rights,” under our system I can vote National in Avon or Sydenham or vote Labour in Tamaki or Remuera and stand no chance of seeing the party’s candidate of my choice elected. Most people vote for the party not the candidate. At least with proportional representation my vote in such seats cited above would have more value than at present. — Yours, etc., T. S. NATZKE. November 29, 1978. Sir, — It is pleasing to see there are many people disappointed with the shortsighted attitude in the editorial about Social Credit. New Zealanders do not change their minds easily, but after 30 years of bad economics they are concerned for the welfare of their country. Therefore, most who voteif Social Credit would have studied the monetary policy and others were tired of the outdated policies we have been forced to endure. They are very concerned and distressed with the system we have at present, which gives us nothing but inflation, unemployment, bankruptcies, violence, industrial unrest, bad behaviour in Parliament, etc., It is no wonder 250,000 people voted Social Credit. They are thinking people and know where they want New Zealand to go in the future. Get to know us. — Yours, etc., (Mrs) A. BARROW. November 29, 1978.