Debt-Free Money

Northland Age, 16 May 1946, Page 5

Debt-Free Money

Address by I’rcsident of The Hundred Thousand Petition Mr. W. H. Thompson, President of the “One Hundred Thousand Petition,” addressed a public meeting on interest-free money in the Parish Hall, Kaitaia, last Friday evening. He had been invited to the district by the Mangonui County Council, and Mr. F. Holder was in the chair. Mr. Thompson emphasised that he was not supporting any political party nor was he condemning trading banks as “big bad wolves.” He believed that under the system in which they operate they do good service. The history of the present financial system was outlined by Mr. Thompson, who said that money today was a monopoly and commodity, not the bloodstream of the country. Between 1929 and 1939 new money "had been added to the currency at the rate of £4,000,000 a year. With the expanding economy this new money was needed, and was created by the “system” and lent as a debt. It cost nothing but pen and ink, but to repay it meant much hard work and suffering. The money should have been created by the Reserve Bank and “spent into circulation” for the benefit of all, not just a few. In 1939 the internal debt of the country was £219,000,000, the Post Office Savings Bank absorbing £61,500,000 of this amount. The remaining £157,000,000 was the bone of contention. Of this, 21 firms and companies, many of them the agents of overseas concerns, controlled £151,000,000. They were the people who owned the local body debts, and to whom the public pay interest. Many articles had appeared on inflation with the intention, in Mr. Thompson’s opinion, of confusing the issue. There are three distinct forms of currency in circulation. These are (1) the purchasing power of the people, (2) money invested in production capital of all business concerns, (3) the currency of the “system. The third form was solely retained for investment in Government and local body investments. The interest is never spent, but is added to the total next year for loan, and over a period of years the position has developed where such investments have first charge on the life of the public. The Remedy In the future, with our expanding economy, additional money shall have to be created. The purpose of the One Hundred Thousand Petition is to divert all private investment money (savings of the people) to the rehabilitation of commerce and increase of production. It should be impossible for a person to invest private monies in local body undertakings where the interest is obtained by the striking of a rate or tax and becomes,# burden on their fellow-men. Interest-free money should be provided for local body loans. This will immediately reduce rates and taxes and greatly assist rehabilitation. Local bodies would not ask for a loan unless they had the men and materials to absorb the money. A Local Body Loans Committee should be set up to assess the amount of new money required as a safeguard. If the Mangonui County Council’s share was £9,000, and if they could “spend that amount into circulation,” they would not have to pay it back as there was no interest. In years to come, therefore, the only rates would be for maintenance purposes. In Nelson 13/- of every £1 collected for rates goes in interest to the “system,” and 7/- for maintenance. In Auckland 17/1 for every £1 is interest and 2/11 for maintenance. That money could be spent in those cities to wonderful advantage. Mr. Thompson concluded by saying that new money should be used for the benefit of all. One sure step should be taken in the right direction and by balancing new money with goods and production we would have not inflation or deflation but equation. Asked by Mr. J. T. Williams if he was an advocate of Social Credit, Mr. Thompson answered that “a young child cannot be put straight into Standard 6.” Social Credit would not come for many years, and as it was a very complicated subject, he thought it better to put forward some concrete proposal that could be easily understood by the mass of lay people. Mr. D. Lewis, seconded by Mr. B. Beard, moved that “this meeting recommends that the Mangonui County Council support the scheme of the ‘One Hundred Thousand’ petition.” A vote of thanks to Mr. Thompson was carried on the motion of the chairman.