CURRENCY REFORM DECLARED ESSENTIAL

Manawatu Times, Volume LIV, Issue 7298, 27 October 1933, Page 8

CURRENCY REFORM DECLARED ESSENTIAL

Fighting Address by Mr H. Atmorc, M.P.

PROTEST AGAINST RESERVE BANK BILL A strong condemnation of ’tho Central Reserve Bank proposal was voiced by Mr H. Atmorc, M.P. for Nelson, in an address at the Palmerston North Opera House last evening. His arguments in favour of currency reform were greeted with spontaneous acclaim, and at tho conclusion of tho meeting tho following resolution was passed: — “That this Jarge meeting of Palmerston North citizens protests most strongly against the Government’s expressed determination to proceed with the passage of the New Zealand Reserve Bank Bill despite protests from all sections of the community, and demands that before any banking legislation is enacted a full, fair and open enquiry shall bo instituted into tho present monetary system and possible alternatives.”

The Mayor (Mr A. E. Mansford) presided, and in introducing Mr Atmorc stated that the latter was not afraid to express his opinions from tho public platform. Mr Atmorc had close study of finance and banking reform, and was well qualified to speak on theso subjects. Mr Atmorc stated that, as far as the present banking system was concerned, it had failed lamentably. He did not criticiso with malice—the position was far too serious for that. Everyone knew that there was an abundance of goods and food in the world, but the people could not get at it. The fault did not lay in over-production, but in a banking system that deprived the peoplo of the means of purchasing all they wanted. Then the Government had come along with cuts in salaries to aggravate the position! It was quite obvious that when goods were manufactured there must be money of an equal valuo available for their purchase. Even his Excellency Lord Bledisloe had intimated publicly that the purchasing power of the people must be equivalent to the total value of the goods on the market. Mr Atmoro added that the Governor-General had thus shown himself more capable ot advising his advisers than tho latter were of advising him. An equation of purchasing power to goods for sale was the basis of the Douglas credit system and was insisted upon by its author. Why could not that desired state of affairs be brought about? The answer was that.it was a bankers’ world, and while tho banks made laTge profits the people sucered misery and starvation. The purchasing power of .the people must be increased, Mr Atmore declared, after referring to similar dicta by other men of standing in tho world’s economic affairs and thought. ‘‘And yet,” he added, “we find the Prime Minister and Hon. J. G. Coates saying that wo'have at present the best monetary system of tho world.” The present system was a mockery. It had been framed at a time when production was below purchasing power, but now the situation was entirely reversed — tkcro wasn’t sufficient money to buy all the'goods that had been produced and were urgently needed. The people were crying out that something must bo done, but what had been the reply of the Government? They had taken away some pensions and reduced others —had told tho children they cannot start school for another year and suchlike, on the excuse that it rvas tho only way to balance the Budget. It had been done, the speaker declared, to pay tho Guggenheims and Niemeycrs at Home, who had told the Government of New Zealand that the country was spending too much money on social services. And so had come tho cuts in ■wages, pensions, and in other directions.

Mr Atmore stated that there was really no need to borrow money abroad ■so long as the country had the goods. Money really was a costless commodity, and if the security of tho people of Now Zealand was good enough for the lenders in London, surely it was good enough for New Zealand itself. “Which means,” ho added, “that New Zealand could have created cits own money and saved a huge interest bill.” (Applause.) The present system was a terrible sham. It -was tho people of New Zealand who created the country’s wealth, and not the banks. Whoever saw the banks producing food, clothes, etc.? And yet they waxed fat on the prosperity of industry. Lord Melchett had been outspoken when he said the system was the biggest bluff ever perpetrated ou mankind. Mr Atmore said the monetary system was the only thing that mattered and must be remedied. Tho real rulers were not Parliament but the organisations outside that had the power to give economic interpretations to the statutes. Mr Atmore contrasted the outlooks of Mr Forbes, who had said: “Wemust face tho future with calm determination,” and President Roosevelt, w r ho said: “W r e must act, and act quickly.” Tho speaker said that in the Reserve Bank Bill there was not a single point that was going to benefit the people of New Zealand. Rather was it going to enslave the country further. The present Government was not legislating for the people, and further, it was going to “stuff” the Legislative Council so that it would be very difficult to got any of its- laws repealed. The speaker added, however, that tho present Government would be replaced at the next election, no matter when that election might come. (Applause.)

New Zealand would a very different place with a different monetary system. There was no need to borrow outside of the country—all that was necessary was the issue of notes with th» credit of the people behind them. Mr Atmore commended the work of Major Douglas at Homo in fighting for the elevation of the people from the bondage they were now suffering under at a time when 63 nations had met in London and dispersed*again without having accomplished anything. Tho Douglas scheme was sound,- and in tho

north of New Zoaland it was destined to play an important part in the next elections. Tho scheme was the only one in which the country could find salvation. The leaders were crying out that the Dominion hadn’t the money to do this and that. They said that because they didn’t know what money really w r as—they didn’t realise that it was really tho credit of the people and New Zealand, under able leadership, need not wait another moment to effect a change for the better and need not wait for auy other country to make a move first. How simple it rvould be to equate purchasing power with goods produced, and so place the Dominion on its feet. Mr Atmore declared the farmers of New Zealam’t were the growing driving force behind the Douglas credit movement, which was obtaining a tremendous hold- in the Auckland district. Tho motion of protest against tho Reserve Bank Bill was moved by Mr W. Archer, seconded by Mr L. E. Simmons, and carried unanimously. A copy is to be forwarded to the Prime Minister and Mr J. A. Nash, M.P.

A vote of thanks to Mr.Atmoro for his address was moved by Mr C. -P« Lindcgreea and carried unanimously;.