WORLD PROBLEM

New Zealand Herald, Volume LXXIII, Issue 22470, 14 July 1936, Page 12

WORLD PROBLEM

"APPALLING PABADOX" POVERTY AMIDST PLENTY COSTLESS CREDIT ADVOCATED The provision of costless credit as a remedy for the present "appalling paradox of poverty in tho midst of plenty" was advocated by Mr. Brian Dunningham in an address to members of the Auckland Rotary Club at their luncheon meeting yesterday. He urged that New Zealand should take a lead in tho direction of providing this debtfree money, which would put an end to competition for world markets —a primary cause of war. Mr. Dunningham said that in every way the world could produce enough to provide a higher standard of living than had ever been contemplated in the rosiest dreams of the social reformers. "But conditions in the industrial areas of England are just as appalling as ever," ho continued. "Children are still suffering shocking poverty and thousands never seo milk, while thousands havo to go to school without breakfasts. Figures in a Blue Book issued by tli9 Government show that one person in every four in tho British Isles is living below tho poverty line." Mr. Dunningham asked why it was that the whole world was leaning toward war when all tho people of tho world wanted peace. All authorities declared that tho root cause of war at present lay in tho financial system. Every country had an abundance of goods, but there was not a sufficiently effectivo demand from people with tho necessary money to buy them. As tho people wero unable to buy all the goods that were produced, they were forwd to export surpluses to obtain a favourable balance of trade. That was a physical impossibility, and every country was now forced into fierce competition for world markets, which could not be continued, as it would lead inevitably to war. Mr. Dunningham said that the future of the world rested entirely with tho people. The present system had brought the world almost to the point of collapse, and leading banking authorities frankly admitted that the debt system had reached such a colossal degree that the money could never bo repaid. Tho only way to ovcrcomo this in the future was to produce this debtfree money to the extent that there were goods for sale. If New Zealand took this step sho could use this debtfrea money to reduce all taxation by half, and also to buy all goods produced. She had led tho world by giving the vote to women and introducing oldago pensions, and there was no reason why she could not lead the world in this direction and remove the appalling paradox cf poverty in the midst of plenty.