CURRENCY.

Lyttelton Times, Volume XCIV, Issue 10703, 12 July 1895, Page 3

CURRENCY.

TO THE BDITOfi. Sie,—ln my last it was shown that we are paying over £1,000,000 appreciation interest upon our national debt through the unavoidable fall in the prices of commodities, Which amount, if saved, would solve the unemployed difficulty and give prosperity to our tradesmen. Let me now call attention to the fact that New Zealand's total indebtedness to English,capitalists is, including private debts, about £3,500,000! Consequently we are taxed by the power of appreciative interest to the enormous extent of £1,750,000 with prices still falling, bar fluctuations. Now, when the bi-metallic theory was first propounded in the colonies, the foregoing aspect of the question was made much of, and its prophets promised us its adoption would relieve us from this drain upon our resources by putting prices up to the 1873 level. Mr George Booth, Mr Grossmann, as also Mr Moreton Frewen, were emphatic upon this aspect of the power of appreciation acquired by the currency, which they unanimously and justly condemned in the most unequivocal terms. But when the power to fulfil their promise was put to the test of public criticism, it was demonstrated by incontrovertible evidence that the adoption of a bi-metallic currency would actually assist to retain that which they so roundly condemned, instead of destroying it. Now, as the prosperity of our traders is dependent npon the well-being of the masses, it ought to be clear to everyone, that a contraction of the people’s power of purchase by £1,750,000, is a restriction on demand, which of necessity keeps prices down; and, as its appreciative power increases, must ultimate in the ruin of all classes of our population. Driven into a corner, bi-metalliata now admit their theory is absolutely inadequate (if adopted) to destroy the appreciation of gold, an admission which, by the way, is also an admittance that silver, if rehabilitated, would share in that appreciation, which is the covert desire of those who are actually the sleeping partners of the bi-metallic agitation. Some of the largest financial institutions in the world hava had to suspend payment when any phenomenal draw upon their resources has been made, and in financial circles reconstruction is now the order of the day. Such being the case, is it not equally necessary that the public financial interests should be reconstructed, and the rate of interest now being paid on our national indebtedness brought down to a level with the price of commodities ? —I am, &c., E. CLARK.