CURRENCY REFORM

Hauraki Plains Gazette, Volume 52, Issue 32315, 17 September 1943, Page 5

CURRENCY REFORM

DEMOCRATIC LABOUR

MR B. DAWSON IN PAEROA

ADDRESS WEDNESDAY NIGHT

Currency reform was the keynote of the political address delivered by Ml’ Balfour Dawson, Democratic Soldier Labour Party candidate for the Thames electorate, to an audience in the Regent Hall on Wednesday night. His Worship the Mayor, 'Mr Edwin Edwards, presided.

Mr Dawson said he was not a stranger to the district, having resided in the electorate some time ago for a considerable period. The Democratic Soldier Labour Party had come before the people because it realised' the needs of the country. The party'had an immediate 23-point policy which it would put into action at once if returned to power. The chief plank of the party was. the taking over of the control of the banks. They did not consider that banks should operate as they did today but should be controlled by the people for the benefit of the people. Everything, explained Mr Dawson, had a value and his party claimed' this was a sound value on which to place its credit. Credit could be issued to the total value of the goods, not a penny more, that would bp inflation and not a penny less, that was deflation. Position In 1914 Mr Dawson instanced the position which arose in 1914 when the Great War commenced. The banks in England closed for three days and seriously disrupted the affairs of the country. If this had happened when the present war had started London would have been in flames. He traced the growth of Britain’s public debt up to the time when she had to default to America.

To-day Britain was creating millions a day to carry on the war against the goods and services of the country but in the last war she was unable to do this.

At present England was spending £1.00,000,600 per week and many people were wondering how she was going to pay it back. New Zealand had borrowed also. Ffis party considered that the goods; and services of the country were better backing for such loans than the old gold backing. This financial system was- not an experiment as it had been tried and found* sound in Alberta. There was not enough gold in the world to back the* wealth of the world so therefore a new system was needed. Mr Dawson gave an outline of the system of finance as it was- established in Alberta. The people in Alberta had had no money although they had the goods -but lacked funds to send the produce to the- market. They therefore created credit to finance the sending of their good's market with resulting success. Old System No Use

Continuing, Mi- Dawson explained that the days of barter were over—a person could not carry a sack of say potatoes around with him when he went shopping. Tokens were therefore needed and paper tokens- were mostly used to-day. These could be created against the value of goods produced by the people. Mr Dawson read a newspaper- report of an address by Mr Holland, leader of the National Party, who had stated that the old system of finance would not suffice for the future. Mr Dawson said he admired Mr Holland

for expressing this opinion. Continuing Mr Dawson quoted various authorities who had stated that banks could create credit by the mere stroke of a pen. They could lend money- free of interest to the Government if they so desired 1 . Referring to the depression when money had been short, Mr Dawson said that the money had not been destroyed—there was more money then than previously—but it was being destroyed by the 'banks. That was the reason for the depression. After last war many of the returned men had been put on the land which had been purchased at high values and of course were not able to make a success of their farms. The Democratic Labour 'Party were fighting to see that this did not occur again. The party had progressed a step further and had got down to the question of finance. The old system was inadequate and could not handle the position to-day. Ministry of Finance The Democratic Labour Parly if returned to power would establish a Ministry of Finance which would grant finance to the r'”nufa"turer right down to the indi x A-d. Many people had the knowledge n f how to do work in certain businesses but

lacked the finance to turn this knowledge into production. Under his party’s system money would be advanced to these people up to 100 per cent.

Referring to the question of the ownership of property Mr Dawson said his party would continue both the freehold and leasehold system.

Continuing to explain the party’sfinancial system Mr Dawson said that after a successful year all the surplus credit wouldi be cancelled out and start again. He emphasised that credit was only issued against production and would be issued each year on this basis.

The present Labour Party went into power because they promised to take over the banks' but they did not do so, said Mr, Dawson. He had therefore broken away from the party. The Labour Party had also failed in many other of its promises. Over-Committed Dealing with the Armed Forces he said he thought the Second New Zealand Expeditionary Force Division in the Middle East should return to the Pacific. The Pacific was New Zealand’s responsibility. It was impossible for New Zealand to maintain two divisions- in the field and authorities in the position to say had stated that New Zealand was over-commit-ted. As it was at present New Zealand would not be able to fulfil her promise in the production field. Farmers were already seriously short, of man-power and the position would- become worse if .both Divisions were left in the field.

Rehabilitation .was also dealt -with, Mr Dawson stating that under the system of finance proposed this work could be carried out efficiently without a tremendous’ dtebt being loaded on to the country.

Mr Dawson gave details of the success of the new credit system in Alberta, giving instances of the progress which that province had made. They had been able to reduce their public debt and reduce taxation while g’reatly adding to the amenities of the province.

New Zealand had a tremendous public debt and it was ever getting bigger. The Maori War had not been paid for yet although more than the original loan had been paid in interest. £1 Per Week Per Child Motherhood endowment was another plank in Democratic Labour’s policy. If his party were returned to power the mother would be granted £1 pel’ week per child. Some would ask where was the money coming from, but under social credit there would be no difficulty about that. If New Zealand left the gold standard the country would be immensely wealthy. Credit would then merely represent production and New Zealand was a country of great production.

In conclusion Mr Dawson said that his party would abolish the Legislative Council.

Cpl. R. Jutson asked why were .banks allowed to establish their own income tax.

Mr Dawson said he had asked that question himself. His' party considered everybody should be assessed by the Commissioner and not allowed to say themselves what they would pay.

A vote of thanks for his address and confidence in Mr Dawson as the representative for the Thames electorate was moved by Cpl. R. Jutson and carried 'by acclamation.

A vote of thank«j to the chair the meeting.