Our Problems Discussed

Northland Age, Volume 7, Issue 4, 22 October 1937, Page 8

Our Problems Discussed

New Zealand at the Crossroads

The series of talks on current problems, that are being given in Kaitaia each fortnight was continued on Monday evening, when the subject discussed was H. J. Kelliher’s book ‘New Zealand at the Crossroads’ and the writer’s solution for our economic ills. The Rev. Mr. Nicholas again occupied the chair. The first speaker was the Rev. Mr. Johnston who, in his opening remarks, said that people were becoming more radical in outlook as the years went by and what was accepted today would not have been a few years ago. “I used to think,” said the speaker, “that if we meddled with the monetary system there would be chaos, but after a brief study of the question I altered my opinion. There are today a very large number of people who believe that the righting of our economic ills can only be brought about by monetary reform.” In the book that was to be briefly discussed, Mr. Kelliher (who is a Government nominee on the directorate of the Bank of New Zealand) sets out, after tracing the need for monetary reform, what will probably be the present Government’s policy. The basis of this scheme that is propounded is easy to grasp and could be brought into operation without any disturbance in the business life of the country. The growth of the present banking system was then traced by the speaker, who explained the differ-

ence between token money, coins and notes, and credit money issued in the form of cheques and other negotiable instruments ; this latter money had no substance but was created by bankers on the credit of the country, and if it was a sound policy for private institutions to create credit then it surely is sound business for the State to do so, concluded the speaker.

Mr. Bridges, who was the next speaker, quoted from the book under discussion when he showed the need for equating purchasing power with production if New Zealand was to prosper. The State could supply the necessary medium of exchange for the goods that are produced and then those goods which are wanted by the people could be purchased by them. Prices could then be stabilised. The Government w r as in a small way now using the credit of the State for their housing scheme but this use could be extended to other State undertakings with a consequent reduction of taxation and without the borrowing of monies on which interest has to be paid and eventually the sum paid back to the lenders, who are often the banks themselves who have created the money so lent.

The majority of the questions asked hinged on whether the socialising of credit would be effective without the socialising of the means of production and distribution and the speakers agreed that the control of credit by the State would in f he end lead to what might be termed a socialist state. With the view of placing these meetings, which are attracting quite an audience and creating much interest among a number of people, upon a more solid footing, it was decided to form a committee to control ‘he organisation, and the following were appointed : Mrs. J. Paulson, Mrs. A. Johnston, Rev. Johnston, Messrs. J. Paulson, Bridges, D. H. Lewis, M.

Roughsedge, W. F. Berry and 1 the Rev. E. B. Moore, the latter gentleman subject to his consent. At a meeting of the committee, the Rev. Mr. Johnston was appointed chairman and Mr. Bridges secretary. It is proposed to continue with the series of talks but to widen the field of cussion by introducing subjects of current interest but not necessarily of an economic nature. The next talk will be “The Church and Social Justice,” and for this there will be speakers taking both sides of the question. The final meeting for this year will be held on Monday, November 15th, when the subject for discussion will be “The Economic Position of the Farmer” and the leading speakers will be Messrs. E. R. Bird and D. H. Lewis. The talks will resume again about March of next year.