"A FIELD FOR EXPERIMENT"

New Zealand Herald, Volume LXX, Issue 21578, 24 August 1933, Page 13

"A FIELD FOR EXPERIMENT"

Sir, —Your correspondent "Itliuriel" wants to know what the "panjandrums" think of his scheme to industrialise the island of Tristan da Cunha by the liberal issue of nice now pound notes to its inhabitants. To commenco with, 1 think his proposed scheme shows ho is decidedly lacking in knowlodge as to the use of money. The purpose of money is simply to facilitate exchango of goods, and under such primitive conditions as apparently rule on the island this is quite unnecessary. Ordinary barter would sufßco for the exchange of such a small number of articles as are produced or found at Tristan da Cunha. On the other hand, in a highly-civilised community, where the number of different articles produced has reached almost countless numbers, soma kind of token of value becomes necessary. For example, it has been calculated that between only 100 articles no less than 4950 possible ratios of exchange exist. In our highlycivilised state if primary produce or manufactured goods remain unsold production slows down and progress and expansion are hampered. The idqa of increasing money issue is to keep pace with production so that it is possible for the produce and goods on salo to he purchased, thus avoiding inflation or deflation and making possiblo a continual and increasing flow of primary produce and manufactured articles. It is well known that not money but genius, plus labour and necessary raw material, arc the necessary foundations of commercial and industrial activity. Apparently our Tristan da Cunha peoplo (or their island) are lacking in some of those essential qualities, or we should have seen the beginning of some higher form of civilisation ere this. Credit money also enables tho expansion of industry under civilised conditions, in that it enables those engaged in establishing industries to live before tho prospective works become self-supporting. J. T. Roe. Opotiki.