LAND SECURITY V. GOLD.

Clutha Leader, Volume XVII, Issue 833, 4 July 1890, Page 6

LAND SECURITY V. GOLD.

TO THE EDITOR

Sin, — Tho recent discussion in tho papers hns dono good in exposing the fallacy of H. George's theory — viz., that poverty can be cured l:y a breach of tho eighth commandment. It also shows the deep-seated conviction in the public niind that something is imparativoly required to alleviate tho fearful and depressing poverty which exists alongside luxury and superabundance. I saw in the papers lately that Senator Stanford, of America, pro poses to issue notes on tho security of land, at a low interest, on half its value. This I have long thought would strike at tho root of many of our troubles. I have talked to and corresponded with the late Mr Macandrcw on the subject, and it was well known he earnestly believed in it. It is not the want of laud which is the cause of poverty. There is plenty of land in New Zealand and all over the world unappropriated to the use of man. But it is tho want of money ; because of tho fictitious value put on gold. This prevents men enjoying tho fruits of their labour or the blessings of Providence

unless paid for in gold. Thus the fruits of the earth or of- man ' 3 labour increase faster than tho production of gold, and according to tho law of supply and' demand tho gold will fluctuate and increase in value, whilst other things will fall. In place of an ounce of gold purchasing a quarter of wheat or otkor necessaries, we sue half an ounce buying tho same amount, while the disparity goes on, making the rich richer and tho poor poorer, until an inlluitesimal quantity of gold will purchase commodities, and until inadequate to pay for production, production must cease and the grain rot in tho granaries, the merchant's goods in the store, whilst millions of men able and willing to work go hungry and naked for want of the means to purchase, there being no medium to purchase. The produce of labour and of the earth cannot bo realised in consequence of an arbitrary, inadequate and ideal standard of value, which causes men to rush to the ends of tho earth to get that which neither feeds them nor clothes them. Like of old," men have sot up a golden calf to worship, an accursed sword to debar tho poor from tho enjoyment of the fruits of their labour and tho bounties of the Creator. Truly gold i 3 root of all evil. Senator Stanford proposes to take tho golden calf by the horns and make the land the basis of all security which it most undoubtedly is, and a more enlightened plan than the method of limiting our commerce to tho supply of gold and compelling tho banks to hold gold against the circulation of their notes,

and compelling .the country to pay intoresb on a dead stock. How can this be considered safer than say 10,000,000 of money represented by double the amount of land or other equally good security producing to the country many times the amount which requires to be paid for interest, and sinking fund and doing away with the expensive and complicated machinery at present existing. American greenbacks have been point-ad to as an objection to the scheme, but everybody knows circumstances alter things, and it is very different to issue notes for war and distraction than for the purpose of building up a country which there can bo no doubt the results would prove. Had the proposed scheme been in force in the beginning of the colony, we would have been free from debt, have had the half million now being sent out of the country for interest, to improve the country, and the earth been made to give forth her increase. Our exports would have been doubted and would have far more than met our foreign exchanges the security undoubted, inalienable, and indefeasible. There is nothing more puzzling thjan the existing currency, and the banks manage to conjure a vast amount out of- the public yearly, which could be saved to the country by th's Government issuing notes on the basis of the land or other undoubted security. The existing post and telegraph offices could be substituted for the banks and insurance offices, with a board of control in the chief centres. The notes could be made to bear the Imperial .stamp, and to bo a legal tender throughout the Empire, including^ America, if thatcountry would reciprocate. This would go far to confederate the race, and would reduce gold to its intrinsic value as a metal, when it might still be useful as small change on a decimal coinage and for adjusting foreign exchanges at the clearing centres in London and

"Mew York, or where necessary, when the notes would pass current all over the Vorld or be .exchanged, with the usual charge. The time is at. hand when there must bo an uniform system controlling the commerce of the world. We see England has invested L 150,000,000 in Son th Africa and L 40,000,000 in America in 18 months. Where has all this money come from, or how was it.remittpd ? • seeing there are only -7,0,000,000 of sovereigns in Britain. It is impossible to say, but it is not difficult to know the result of this vast sum being invested in diamonds, or in American industries, which , are fostered by the nation., The produce will be sent to pay the interest, and sold in England's free ..market in competition with England's heavily-taxed commodities, and, so . strangle British industry in its own market. We thus, see a ruinous balance of trade (one-fourth of her exports) of L 100,000,000 against England. It is foolish to count interest coming in in this way as capital, , as it never passes into the hands of the people, but is again invested as before, depriving the working boes of their, honey, forgetful of their stings, and hastening the common ruin. But let those who are responsible look out. The train loaded with combustibles is being shunted on the dosvn grade It is starting to destruction, and if the engine be not reversed and the brakes pat on, a crash will soon be unavoidable.. Tt will soon reach the gulf, when society will crash into the abyss and be dashed into mutilated fragments ; for society was founded in barbarous times and has grown into a cumbrous and incongruous mass, without method or plan. It may now bo compai'ed to an inverted pyramid poised and tottering on its apex, with little cohesion and attraction to keep it together, while the force .of repulsion increases, requiring millions of armed men to keep the fabric together or from toppling over or falling to pieces. This it must do shortly, unless remodelled and strengthened and its cquilibrum restored, and the millions of soldiers it requires to hold it up sent to earn food for tlismselves and thoir dependents. All praise to the young Emperor of Germany, who alone, of all the potentates, seems to appreciate the situation. If he can bring his ideas into a successful issue, he will be the greatest sovereign of his r;ice and the benefactor of the world. — I am, "etc. , Tuos. Murray. Mangapai, N.Z.