THE WORLD DEPRESSION

Otago Daily Times, Issue 21612, 6 April 1932, Page 5

THE WORLD DEPRESSION

TO THE EDITOR. Sir, —The letter published in your issue of the 2nd inst., _ over the name of “ Critic ” is interesting, but of no assistance in getting us out of the economic depression that is causing so much loss and suffering. “Critic’s” letter could he answered in much the same way as lic knocks Mr Field and Mr Walmsley, out that would not get us out of the mire. It would be better to get together, work together, and not set class against class a 6 we have been doing in the past. I have read Mr Field’s book and I believe that there is a lot of sound logic in it, but it is a pity that he made such a case against German and American Jews. Financial groups do not consider Empires or individuals and “ are not inspired by any desire to promote civic well-being, they are out to make profits for themselves, use the banking system for their own profit (the same as all business men do), and they do not care who suffer while they profit. I consider that Air Field gave us good advice when he advised us to petition Parliament to appoint a commission to draw up a report on currency reform for New'Zealand and have nothing to do with a central bank as known to-day. If Parliament does appoint such a commision, I trust that it will get advice from the Hon. Reginald M’Kennn, or the Hon. L. S. Amery, ana not the committee appointed by the British Government in 1925. a committee that led ne so far astray. The world depression is the result of the British Government and others reverting to the gold standard in 1925 and agreeing unduly to deflate the currency. ihe British Government in 1925 probably expected that the currency would be deflated very slowly, but it developed into a financial panic and would have ended in bankruptcy for Britain and almost every trader in the Empire, had Britain not gone off the gold standard last year. There are other causes, but they all load back to the financial policy. The Hon. Reginald M'Kenna sayg. in his book on post-war banking, that “it is impossible to carry out a policy of gradual deflation, and I consider that our financial position to-day proves that his advice is sound and worth following. Great Britain was forced into a policy of currency inflation to win the war, but there was no vital need in 1925 to adopt a policy of currency deflation and indirectly force prices down to such a low level as they are to-day. The violent fluctuations ot prices of goods of all descriptions have wrecked confidence in business, and prosperity will only return when confidence that prices are profitable and steady is assured. Currency reform with reliable men in charge of it should help us. —I am, etc., _ Weston. Oamaru, April 4.