WHAT VALUE THE PROMISES?

Evening Post, Volume CXV, Issue 38, 15 February 1933, Page 8

WHAT VALUE THE PROMISES?

(To the Editor.) Sir, —Some time ago the Prime Minister' promised that, as a result of the Government's policy the cost of living would be reduced; the Government would see that it was so, and ' this promise was reiterated. Has this promise been fulfilled? Has the Government taken any steps to see that it was fulfilled? Nol Just recently, the Prime Minister told us that; as the result of "inflated exchange" there would. be more money spending, and as a result we should be more prosperous. Is there any possibility of this being the case? No! • What, Sir, are the real facts of the position? Simply this; many of the farmers have bought land at excessive prices mortgaged it to such an extent that the load of interest is, more ;than they can bear. Too many of :_hem have been farming the land market,: farming the. money market, and now they are farming the Government, in order that the results of their follies and the losses entailed thereby may : be saddled on the rest of the community. Here we have: the spectacle of 85 per cent, of the people deliberately used for the benefit of 15 per-, cent., because they happen to be in a position to help themselves-at the expense-of the community: generally.l ; • _ The extra exchange rate does not bring in one penny piece extra; instead, it raises costs, reduces purchasing power, lowers the turnover.of commerce and industry, and creates further unemployment. Eighty per cent, of.-. the people have no margin today in their purchasing. power. Consequently, having to pay more, they have to buy less, ; This further disturbs the balance of trade, by preventing that exchange of services which is the basis upon which our social life depends. The only good in life is the reciprocal exchange of services, that is, if .we are looking for national prosperity. Let me quote a little example: Ten men agree together to exchange services with one another. "A" is the possessor of £1, which he spends with "B," "B" spends it with "G," and so on, until it comes back to "A" again. This £1 has thus been responsible for £10 worth of services, and has finally come back to "A," who sets it going again in a similar manner. It completes its cycle and again comes back to "A," making a total of £20 worth of trade. "A" sets it going again, and it passes round until it reaches "F," who argue:- that if he practises a certain amount of self-denial he need not purchase any services from "G," but can place it to accumulation. Immediately he does this the whole chain of service

is broken, and each of those ten men, including "F," are rendered idle. It is true that "If" is richer by £1 than he was before, but, like the rest of his fellows, has lost his power of exchanging services, because he has withdrawn the circulating medium. And this is true of the world's position today, ihe stopping of exchange of ser-l vices m the interests of the "accnmu-l la tors" is responsible for the greater part of the present world crisis, and the longer the present policy is continued, the deeper we shall get in the mire, until the social machine stops altogether. The action of the Government in. forcing the burdens of a few people on to the shoulders of the whole of the people, many of whom are very much poorer than those they are called upon to help, is suicidal.—l am | etc., ' W. MADDISON.