FINDING THE MONEY.

Grey River Argus, 12 February 1938, Page 2

FINDING THE MONEY.

[To the Editor]. Sir,—To answer “Confused’s” two questions in the simple way asked for. would take up too much space in your paper. Briefly, money is not wealth, but is only an expression, or, if you like, token of wealth. A pair of coal miners fix a leather token to each' truck of coal as they fill it. When the truck reaches the binns, the token says that Jack Brown and Tom Smith have expended so much labour power in hewing and filling ‘coal. Other workers receive’ their tokens in the form of token money, i.e., notes and coins, just as the miners do when their leather tokens are realised in cash. Society is divided into three sections—those who produce, those who render service, and those who do neither. Wealth is created only by those engaged, or assisting, in the production of goods. The act of buying and selling is just an exchange of so much labour power, rendered convenient by the use of money; e.g., when a mill worker’s wife buys two pounds of butter she is exchanging so much of her husband’s labour power for so much of the farmer’s, butter-maker’s, etc. So as long as we keep producing wealth there need be no shortage of money for public works or other purposes, and as the people of New Zealand pay for all the wool, butter, meat, cheese, etc., that is exported from New Zealand, there should be no difficulty in paying the guaranteed price during another slump. If, at the present time, we exchange one ton of butter (New Zealand labour) for one English motor car (English labour), and take this as a basis, then with a general fall in the price of all goods of 50 per cent., we would still exchange one ton of butter for one car. A general rise in prices would also leave us at the same rate of exchange of labour power. But with a fall in the price of primary products only, we would receive a smaller quantity of imports (English labour) in exchange. This would stimulate our secondary industries, and with a sensible Government control of currency and credit, we would create enough extra wealth in New Zealand to balance our loss in imports. If “Confused” or any other reader wishes a full and more detailed answer to these and other questions, the opportunity will be available atj the local W.E.A. class, which is commencing shortly. I am, etc., J. SCOTT, Greymouth.