N.Z. INCOME DROP

Grey River Argus, 7 June 1934, Page 6

N.Z. INCOME DROP

THE EXPLANATION Defective Monetary System (Per Press Association.) NEW PLYMOUTH, .lune G. The Leader of the Opposition, Air M. J. Savage, gave an address here t<> :i good attendance to-night. He staled that, while it was correct to say that the national monetary income had fallen, there was a greater abundance of real wealth in existence than ever before 1 . This apparent contradiction was dm* to the inequitable system of distribution. Every rule of common sense, said Mr Savage, showed that in the long run, the basis of the mon<‘tar\ system should be goods and services- and a banking system, he said, that was properly organised on that basis would provide the means whereby those who produced that wealth would Tie aide to enjoy the fruits of their labour. Il was fallacy to think, said Mr Savage, that the monetary equivalent of production camp from overseas. Money was a national institution for the most part, and it had only on? reason for its existence. That was to enable the people to exchange their services with each other. Parliament was the master of the monetary system. and it could, at will, turn it into a national service. Mr Savage stated that the present ilepression was due to the fact that purchasing power had not been provided in a sympathetic relationship with the increasing of our production. Although that fact could not be disputed, representatives of the people seldom gave any attention to that aspect of dominion affairs. While production continued to in crease and purchasing power remain ed stationary, he added, prices mus" fall. I | MR R. SEMPLE, M.P. ADDRESS ON CURRENCY QUESTION. (Our Own Cor respondent.) As at Runanga the previous even ing, Mr R. Semple. M.P. for Welling ton East, last night delivered b Walkend at the Miners’ Hall an ad dress on the subject “The Evolutioi of Money: Its Uses and Abuses. an< the part it is playing in this Man made Calamity.’’ The chair was oecu pied by Mr W. Purdy (President o the Grey Valley Workers’ Union) who apologised for the absence of M P. 0. Webb, M.P.. and introduced th speaker. I In a forcible and very able manne

Mr Semple showed his well-known talent as an expounder of fundamental economic and political issues. 11“ ilea It with the mechanism of production ami distribution. pointing out that under the system now operating, New Zealand had mountains of wealth, and yet side by side with it there wore poverty and starvation. 'l'h'r system was such and had been developed to that extent that America, havix.g only a sixth of the world’.; population, could with its installed machinery produce fifty per cent, of the requirements of the whole world, but nothing had been done to arrange a system of distribution whereby the actual producers would be in the position to gid a decent means of livelihood. .\s a matter of fact millions throughout the world were on the verge of -ta nation. The. Labour Party’s policy was. as soon as it attained power, to take slops for the rout rid of the credit and currency of the country. 'That credit and currency were created bv the people. and should be used for the iH’ed of the people, instead of being used, as it was. as a means of gambling by the bankers of the world. Ho instanced Japan's ability to exploit India. Japan had a higher .-tandard of living than India, and Japan’s workers were better paid than India’s, but after buying raw • material from India, such as cotton. Japan was able to manufacture it, into textiles and to sell these back to the Indian masses at prices that undercut the Indian manufacturers, who had the cheaper labour. One reason for this was that Japanese exporters were given by their Government loans that were free of interest. Referring to the monetary question .Mr Semple quoted various authorities | to show that the banking system as in operation to-day would not function successfully in the public inter- , est. Ender our present currency sy--torn, he definitely slated, the animals at Wellington Zoo were much better cared for than were workers in this country, to say nothing of the less t fortunate unemployed. He quoted a number of illustrations of the monetary anomalies which cried urgently for removal. If returned to power it I would be one of the Labour Party’s first tasks to remove those obstacles to the welfare of the common people, which could be done only by measures to control our monetary system. Labour would do its utmost by these means to give the people a higher standard of life than they had hitherto been able to obtain. The monetary system had, to a great extent, collapsed, and no more private interests a would or could replace it with a just svstem which the State alone could n .• , institute. The spp’aker was eagerly followed by a numerous audience, and fre- ' quently applauded. k Mr J. Coutts moved, and Mr S. r Nash seconded: “That we extend a o hearty vote of thanks to Mr R. Semple for his most interesting and instrucr five address, and reaffirm our entire

confidence in the Labour Party of Now Zealand, and in Mr P. C. Webb, the Member for the constituency.’’ The resolution was carried unanimously with applause. Mr Semple moved a hearty vote of thanks to the Chairman, Mr W. Purdy. closing a very successful meeting.