Overcoming the Depression

Dominion, Volume 27, Issue 151, 23 March 1934, Page 13

Overcoming the Depression

Sir—To bring about a permanent solution of the unemployment problem i would call in all money and make it. tne properly of the State, and issue scrip in its place, plus £10,000,090, and date it 1934. I suggest that the money now in circulation plus £10,000,000 is the amount annually required to keep all New Zealand busy. That sum would allow the unemployed about £4 weekly.. I would then inform all those With private bank accounts to either spend their private money or invest it, as within, say, years, it will be useless. I would not confiscate it, as people who had saved have the right to be allowed to spend, but no one would be allowed to have a. private bank account in two years’, time. Trade would then proceed as in normal conditions, and the £250,000 more, money in circulation weekly, the spending power of tbe late unemployed, would be a big fillip to industry. Suppose each of the unemployed had 21b. extra of butter a week, the dairy industry would benefit by £250,000. That is only one item; others would be in. a lik-e ratio, as all their earnings would have to be. spent. I would send the unemployed into the country under a public works scheme to clear the land for the purpose of forming small farm areas. The unemployed mechanics could be utilised for building homes on the land, and in 12 months a reasonable amount of land would be ready for production. I do not think many would object if paid on a basis of £4 a week, and they would naturally be in groups of camps. Matters would then have improved immensely, everyone would be in work and getting the necessities of life. When a year had elapsed, and everyone was earning, income of all kinds would hare to be spent to the full, so all money would, therefore be returned to the producers and the farmers, who in turn would take it to the bank, and hare it exchanged for scrip dated 1935. (This is purely by way of illustration.) • Under this scheme we have bought nothing for cash and everything which came into the country would be in exchange for our wool, .meat, butter, etc., in fact, we having a large surplus of exports over imports, all our money would still be in the Dominion. . Now the people who had money in the bank, and which I do not wish to confiscate. would realise that if they did rot spend their money they would lose it so many of them would come to the conclusion that to build a new home would be a wise step. Now supposing 5000 were of this frame of mind (I do not think the number is in the extreme), work would be found for, say, 30.000 skilled mechanics for three months. Of course, the work would not all be in progress at once, but this would be in addition, to the normal run of events, and many skilled workers would be recalled from the Public Works farming scheme. We have the majority of the timber and requisite building materials. M hat we have not got we would get from England in (he usual way. Every home b.nlt in the Dominion is real wealth; it is a necessity for the welfare of the people. Now probably some would prefer a motorear; say 500 motor-cars were requires, well that is quite all right, our exports would pay for that. Suppose another year has passed, all 1935 scrip has returned to the bank and 1936 scrip has been issued in its place. Now we will assume that it has become generally known that in New Zealand every citizen has had three good meals a dav, enough clothes and n good bed; what ‘they have not got is money, and not likely to have. Five thousand emigrants have asked to be alloped to come to New Zealand to settle. Certainly, let them come out if they are strong, young, and with a knowledge of farming and willing to go on the land. Now, with this increase in population we would naturally have to increase our scrip to allow these new arrivals to procure the necessaries of life for twelve months, at the end of which time it would be expected they would be able to provide for themselves. A very important question this propos.il raises is what to do about the aged people? I think a pension system on a ratio of income during one’s active career, bused on an average of the last twentyfive years, would be the most satisfactory solution. This would inspire every one to climb to the top of the laddcij Aged people would be decently catered for, as it would cost nothing; they would get a reasonable pension, to be spent on goods.-I am, etc, r Wellington, March 19.