MONETARY SYSTEM

Gisborne Herald, Volume LXXII, Issue 21604, 5 January 1945, Page 4

MONETARY SYSTEM

Sir,—Your comment to Mr. T. G. Johns' letter is very bewildering. Britain came out of the last war a debtor nation and you say that she will come out of this the same. ' You do not state why Britain Win become a debtor nation anil to whom she will lie the debtor? How can a new world order lie built on the old foundations of a d.'htnr system? On last war drills Britain has not. paid even interest for many years How can she pav on a scale enormously larger than that ? ' Ho-.v can New Zealand and the Dominions help financially when they. too. are deeper into debt than ever? You state of our boasted “security" and "economic freedom." . That one fails to see how we can have freedom under the perpetual debt system cf to-day? All isms (Capital. National. Liberal, Socialist, Communist, Fascist, Conservative, Nazi) which are supposed to exist to-day are iu existence only under the financial dictatorship. Before concluding I would like to know what help the Dominions and New Zealand could render to Britain if all agree to sign up to the international monetary fund and it is found to be unworkable as the last return to the gold standard was and had to no off it overnight and no doubt will have to do the same this time? The British experts have agreed to the insertion of an entirely new provision ittio the final draft of the plan, under which it will become impossible for this country to escape the consequences of, their folly by withdrawing from the fund. Under Article XI the board of international financiers is given power to declare economic war on Great Britain should she devalue sterling airainst the board’s wishes. Note: All the United Nations (including, let it be noted, the British Dominions) will have to undertake to boycott and blockade this country in such an event! Is it really conceivable that Parliament could pass such a suicidal measure? If so, where do we stand ! DEMOCRAT.

The correspondent confuses the issue of trade with Britain, dealt with in our editorial and in Mr. Johns’ letter, with that of monetary reform. New Zealand’s economic stability is bound up with Britain’s, owing to the established and continuing exchange of trade. If that system were broken down, by New Zealand’s action, it would hurt this Dominion possibly more than Britain:, but in any ease the United Kingdom must speak as the prosperous head of a united Commonwealth if her voice in international affairs is to carry weight. With_ regard to international monetary control, .it is fair ♦hat we should submit to the same discipline we ask others to accept.—Ed., Herald.