MONETARY SYSTEM

Hawke's Bay Tribune, Volume XXII, Issue 154, 15 June 1932, Page 9

MONETARY SYSTEM

INCREASED PAPER CURRENCY. A RUSSIAN EXAMPLE. Auckland, June 14. A statement which challenges the issue of paper money theories propounded by representatives of the Farmers’ Union in their addresses in various centres, was made by Mr Albert Spencer, president of the Auckland branch of the Employers’ Association on Monday. Mr Spencer said: “The interests of all classes of the community are identical, and the problem will have to be solved before confidence and credit can be restored and prosperity re-established. Hence the vital importance of the Ottawa Con.erence, but the idea that New Zealand or any other industrial unit of the Empire can, by merely issuing paper and declaring it currency, bring about an era of prosperity, is a fallacy, which even the unintelligent Communist of Russia must have realised. The paper roubles which their State Bank issues to pay wages to pay for materia! within the country, are now admitted to be practically worthless. The official rate of exchange was fixed at one rouble to two shillings and one halfpenny of English money, and it was made illegal to give more than a rouble for one English florin, either at the frontier or inside Russia, yet illicit dealers, it is stated, were prepared to give 100 paper roubles for a onepound note. If a paper currency is to be established it must be under conditions which will establish parity or a reasonable rate of exchange within the British Empire at least.”