“Ottawa and Currency”

Dominion, Volume 25, Issue 171, 15 April 1932, Page 13

“Ottawa and Currency”

Sir, —Your leading article on the reduction of interest in Saturday’s issue, April 9, is deserving of more than passing notice. It is not only courageous in its criticism of one who is considered New ■Zealand’s financial expert, . but clearly shows the iniquity of a bias towards the principle of equality of sacrifice for all. Unfortunately for currency reform, Mr. Downie Stewart's name has been suggested as New Zealand’s representative for the forthcoming Empire Conference at Ottawa. During this week the cables informed us and the Empire that in the opinion of the Minister for Trade and Commerce of Canada, Mr. H. H. Stevens, the most notable service which the British Empire could render to a perplexed and harassed world would be for the Commonwealth to find a solution of the currency problem. Unfortunately, our Prime Minister, Rt. lion G. W. Forbes, in his reply to the producers’ delegation concerning representation for Ottawa, is reported to have said that, the principal questions to be faced at Ottawa were those of the preference for primary products. According to the world’s leading economists, as reflected in Sir J. Stamp’s recent statement, the greatest single evil of our times is the instability of the monetary unit. If this is correct, how is it possible for a delegate to represent us whose business environment is for present monetary currency customs to continue? In 1923 the New Zealand Government was instrumental in getting placed on the agenda of the Imperial Conference held in London a scheme that would bring an Empire currency into existence. It w’as not even discussed by the conference, as a sub-committee composed of financial interests that necessitates private profits and high commission charges on foreign exchange transactions erased it from the agenda. It must be remembered that for New Zealand and all other parts of the Empire their money (or credit) is foreign money in England, and vice versa Great Britain’s money is foreign money here. An Empire free currency. having a free exchange similar to the currency of the thirteen States of the United States of America, and the Soviet Republic Stales, is not to Hie interests of money power. Further, it will be absolutely necessary in the near future that our currency be divorced from gold and bused upon the credit of the community, viz., goods and services. AVhat Mr. Finance demands and wants and secures is for each part of the Empire to have different moneys—financial links tied to gold values. Is it possible to conceive or hope that in view of Mr. Downie Stewart's relationship with present orthodox finance that desires for dividend purposes high interest rates, he can bo expected to vote for a change? No. Sir! Mr. Downie Stewart—though an estimable gentleman ami citizen—should not bo put into n position which must prove so embarrassing. Mr. Stewart’s arguments all the way through this financial crisis now upon New Zealand have not been such as to serve the interests of nil sections of the public, so ably shown in your leading article.—T am, etc.. P. E. TINGE V. Wellington. April 11.