THE WORKERS' WAGES.

New Zealand Herald, Volume LXVII, Issue 20721, 14 November 1930, Page 14

THE WORKERS' WAGES.

1 Sir, —Mr. Vaile's contribution to the vexed question of the value of labour in its relation to costs of production must have been read with mixed feelings by all who arc capable of analysing the many interesting economic points raised, hor my part, I was swayed this way and that as I read each of the three instalments which concluded in Wednesday's nEit.M.D, and I simply cannot resist the impulse to crave a small amount of your valuablo space in which to assist, if 1 can, tho search for the true solution of our present very serious economic problems. First, I should liko to commend Mr. Vaile's treatise as an earnest attempt to give labour its due. Tho fact that ho does not. succeed in full measure is because, lo my way of thinking, after a propitious start, ho got off tho Tails and lost in the wilderness: for a tijjie, at any rate. My contention is that the fundamental cause of all our troubles is our system of currency. We have not sufiicient money in lictive circulation to adequately measure all that wo require and can produce, and that consequently there are more selicrs of goods than there aro buyers provided with the necessary money to purchase all their requirements. This shortage of money is the result of our currency being based on gold. The fact that wo are not strictly on the gold standard at present makes no difference. Our notes in circulation aro limited to the amount of gold held by the banks. We are on a strictly paper currency ■without having all the advantages 1 hat we could have by such a currency if it were issued scientifically 011 lines which would make undue inflation impossible, and at the same time keep prices at a uniform level. This would automatically solvo all tho problems that Mr. Yailo is trying to solve by methods which aro more likely to cause an economic revolution. I said above that Mr. Vaile was doing fine until he got off the rails and lost in the wilderness. but ho succeeded in getting 011 the rails again, and continued his article in fine style. Because of what he said at this stage I base my hopes of securing him as a strong ally instead of a vanquished opponent, lie said:— Money in itself lins no value. Its only use is as a medium of exchange. "What we want is comforts, facilities—goods and plenty of them, in our folly we refuse to take tho poods and cling to the monrv. Tho United States lins beggared the world by grabbing ail the gold and sitting on it Much good may it do them! They might just ns well put it bark into the mines. They have buried their talents in a napkin! Even the Maoris know better. Just so. In these words Mr. Vaile has written a great truth. J.F.B.