"MONETARY REFORM"

New Zealand Herald, Volume LXX, Issue 21515, 12 June 1933, Page 13

"MONETARY REFORM"

Sir, —May I be permitted to reply to the letter of "Cambist," published on June 3, iti which that writer speaks of the Mayor of Auckland falling into the " subtle trap of monetary reform." "Banking's main foundation is public ■ confidence," said "Cambist." It is that confidence which has led the whole world into the awful state which we are in to-day, for the simple reason that not one person in a hundred thousand has bad the slightest knowledge of fihanco under the present monetary system, and we have been content to sit back and leave our financial matters to the few who did understand. There is no need to look very far without seeing what a terrible state they have got us into. The majority of people look upon money as wealth, which is absurd, as production is wealth and money is only the "medium of exchange," and in practically all countries there is only about enough of that medium to purchase nine-four-teenths of their production. Therefore, we are compelled to produce five-four-teenths more than wo can consume to place enough medium in the ppsscssion of the consumer to purchase what lie does consume, which means that wo must placo the remainder on the overseas market, and as every country is in precisely the same position, it means a fight for those overseas markets, and what is the consequence? War; nobody can prevent it. It is tho opinion of hundreds of us who understand "Douglas Social Credit," that oneo started it would mean that industry would be stimulated, tho homo market would bo established, employment would increase, want would bo replaced by tho satisfaction of that want, the necessary export trade would bo facilitated, the present vexatious, expensive, and therefore wasteful method of collecting revenue wotdd be abolished, all present rights would be protected, and harmony would bo established between capital and labour. It would freo not only industry, but Governments, from submission, to that supremo power, "finance," and finally it would set freo funds for all. cultural and spiritual objectives and provido loisure for their pursuit. Therefore, tho sooner more of our leaders follow tho footsteps of our friend tho Mayor of Auckland, the better it shall be for the community as a whole. Pukekoho. John Bones.