MONETARY INQUIRY!

Evening Post, Volume CXVII, Issue 52, 2 March 1934, Page 5

MONETARY INQUIRY!

ANOTHER PROPOSAL

Tho views of ' tie New Economist ■Research Association were placed bafore the Parliamentary Monetary Committee yesterday by Mr. A. Scott. Mr. Scott.said that the main problem today was the lack of purchasing power, but tlie difficulty ; the ' governments found, . whin increasing .purchasing power, was that they increased debts. This made them frightened, and as a result they cut down purchasing ..power and brought about the problem' of unemployment. The unemployment nroblem was really one of purchasing power. It was the debt factor today, which troubled governments.: They; could not possibly keep piling up debt, yet if they did not pile up. debt they; could not increase purchasing .power. The time had come when the Staf• should make use of its credit, and make ase of it freely, instead of paying tribute to the financial system. ' Money should be considered as a social function, and not as a means of profit. ', Until that was done there was bound to b» unemployment -~and periodical eriaes. New Zealand was a land of plenty, and the Government.had it in its.power to make the people much happier ,thaa they were at the present time. He proposed that a currency bond or a State Bank should be set up to issue its own social credit. The act of Parliament which he proposed should provide for (1) the-establi'sh-nient of a Central State Bank with, sole right of note issue; (2) a selfredeeming currency; (3) the gradual redemption of all now existing.bank notes by State notes, thus unifying the currency of the Dominion in an easy settled manner; (4)' the issue of State and local body credits for new ."•works, free of interest, with proper safeguards against possible redundancy, and; with provision for redemption, by annual instalments; (5) the gradual redemption of all interest ..bearing national and local body debts (now largely irredeemable) ; (6) the immediate earing of a large interest charge, and later, the abolition of interest as'a-faetor in public financing; (7) ultimately,, this abolition of interest (usury) altogether), thus ensuing to . the community economic freedom to work out its owk salvation and plan for a still'better future for all the sons of men.