DEBT-FREE MONEY

Evening Star, Issue 23497, 10 February 1940, Page 20

DEBT-FREE MONEY

MR LEE CRITICISES MOHETAR# SYSTEM DEPRESSION MUST NOT FOLLOW WAR Debt-free money, which would provide a brighter, happier life for all, was the theme of an address by Mr J. A. Lee, M.B. tor Grey Lynn, Auckland, delivered in the Town Hall Concert Chamber last night. Private monopoly of finance was the greatest evil of our times, he contended, for with freedom from the money power the country would be a place fit for heroes to live in. During the course of his address the speaker criticised a money system which allowed Mr Montagu Norman to dictate to the Commons a policy which resulted in widespread poverty and distress in Great Britain while he went for a holiday overseas. Mr Lee also referred to the debt charges of this country, which went on and on, and stated that very soon the whole of production would be owned by the mortgage holder. Introducing Mr Lee as one of the coming men of New Zealand, Mr Munro (in the chair)- said it had been stated in the country that Mr Lee would rock the Labour vote. “ Don’t worry,” he added. “Mr Lee will not do that. I am willing to follow Jack Lee right to the limit.

Expressing pleasure for his reception and for the wonderful attendance, Mr Lee stated that this was war time, but ho saw ho reason why that should prevent people from expressing their views on political issues. “We say that we should retain the right, and our oppon‘ents the right and liberty, to criticise,” he stated. “It has been suggested there are two wars, and that one is the war the Labour Party is waging against the chains and shackles of the old system. In this war every member of the community may enlist. I say to those in the fight in the other war, 1 Let us set out to achieve a world fit for heroes to return to.’ One of the things we must cherish and utilise is the right to criticise and to bring for ; ward alternative constructive programmes.” Mr Lee went on to refer to the changed policy, a more intelligent one, pursued during the present conflict compared with that of the 1914-18 period, when valuable lives were lost to gain a few yards of ground. The myth of infallibility round the men who were in charge (nothing more than bunglers) was responsible for this. It might not have occurred if criticism had been allowed, and valued lives would have been saved. To-day there was a different attitude—an intelligent view in certain quarters. They would never get anywhere by looking backward. Take the magnificent victory of the last election, achieved by advocating a forward policy. . The war of 1914 put the old world to death, and this war would do the same. Those who thought otherwise did not know they were alive. Only during war was the productive force of capitalism utilised. During 1914-18, millions of men were taken out of production and yet production increased. Then came the great demobilisation and the great contraction of purchasing power. There were still millions of unproductive workers in the world because of that war period revolution. Production still went on and after the present conflict Avas concluded consumption would shrink and then again they would know the hell of the past. The system that represented all this had to be changed. The Labour Party was the best of all parties and had the best of all policies for the future, the speaker continued. If they did not look, forward and join in that other fight, when the war was finished, there would be depression folloAving on the constriction of purchasing power. The great evil during the last war was the banks, which were able to create credit (social credit), the return from Avhich ultimately Avent back to them.

The shape of things to come must ho provided for hy winning the war against debt finance. Mr Lee said, but they could not have control of currency until they had a trading bank as well as a Reserve Bank. In 1932 the country had thousands of farmers and homebuilders bankrupt and the Government was cutting pensions. Why? Because the deflationary policy of that period thoughti it necessary we should consume less and so wc had thousands of unemployed. “If it is patriotic to wage war against the chains and shackles of Hitler, then it is more patriotic to wage war against a system that means starvation to tens of thousands of men,” he continued. “ There is a war on two fronts, one against Fascism and the other against the dictatorship of money.” Since the present war the Government had received something like £21.000,000 from the Reserve Bank. If a reactionary Government had been in power there would have been deflation to that extent.

The speaker went on to refer to the millions that had been borrowed during the past 40 years. We had borrowed to pay interest and in fact had paid back £12,000,000 more in interest than the full amount borrowed.

” I don’t say we should tear up the bonds or dynamite the banks,” Mr Lee said. “ I say change the system. The system cannot go on.” he added, quoting further figures relative to the Maori War debt.

Labour was destined to govern and expand this country for the next 20 years, he continued, again stressing the necessity for freedom from the money power. At the conclusion of his address Mr Lee answered a number of questions, and the meeting accorded him a hearty vote of thanks for his remarks.