WATERSIDER AND FARMER

Gisborne Herald, Volume LXXIV, Issue 22512, 16 December 1947, Page 6

WATERSIDER AND FARMER

Sir. —To suggest that the watersiders’ demand lor one pound per week extra pay is of more importance to our economic progress than the cry of more and more production would be scorned, but the fact remains. Our economy is presided over by two banking systems which, in their general practice, promote that see-saw movement which is responsible for our personal point of view and party Government. These are gold and trading banks. Purchasing power for business recovery always demands controlled inflation, presided over by gold banks at long dates. Too much producing power or too much money used by farmers, which means lack of convertibility by price received and presided over by trading banks at short dates, is the dreaded form of inflation which domestic economy must prevent or suffer from by enforced realisation with great personal loss. Subsidies are helpful, as they come from gold banks, but purchasing power is the only cure. A planned system of borrowing for public works, land rejuvenating, closer fencing, prevention of erosion etc., things well-known by farmers, to further production, presided over by gold banking and not trade banking, would enable us to pay our interest demand upon war debt with money profitably used to build up our resources to meet higher price level, which must come and must come from purchasing power. The world requires purchasing power, and the point is: Where does it come from? It does not come from production, as production has already filled our store with produce awaiting equitable price. Production is of token value only and indicates the amount of 'capital a country can legitimately absorb, and what it can absorb it can borrow to make production possible. The watersiders’ wages do not come from production, but from currency. Currency comes from public borrowing. Power to borrow comes from declared market price, and market price comes from purchasing power. The watersiders’ demand is to increase purchasing power. JAS. MORRISON