FINANCIAL SYSTEM

Hawke's Bay Tribune, Volume XXIV, Issue 94, 4 April 1934, Page 3

FINANCIAL SYSTEM

Danger from Extremists “The people who urge the overthrow of the present financial system are, in many cases, those who would capitalise the depression for political purposes,” said the N.B.W, Minister for Local Government (Mr. Spooner) in an address on “Financial Problems of Today” at a meeting of the Parramattn branch of the United Australia party. If they achieved their purpose he added, they would create a depression more terrible than anv that could result from economic causes.

“Australia’s position,” said Mr. Spooner, ‘‘is bound up with conditiona in other parts of the world. Thia appears to be overlooked by people who speak as though Australia can set up a self-contained organisation by experimental currencies. Certain people apeak as though it were possible, by means of artificial currency, to create a demand for products. If costs of production in Australia are increased by an inflationary process, it will be impossible for producers to carry on. ft is wrong to tell people that a greater issue of credits wi'l enable products to be consumed within Australia.

The exponents of nationalisation of banking, Mr. Spooner added, were careful to suppress the principal motives behind their proposals. One was an attempt to gain political control of the machinery of finance, and the other was the extensive use of credits. It had been the policy of extremists to aim at their objectives under cover of some irrelevant issue. Their procedure was to confuse the public mind. The onus was on the exponents of nationalisat ion of banking to explain their policy, which actually meant the politicalisation of banking and the exploitation of currency for political purposes.