IS THE PRINTING PRESS BEING USED?

Otago Daily Times, Issue 25241, 2 June 1943, Page 3

IS THE PRINTING PRESS BEING USED?

Sir,—lf “S.” had read my letter »• little more carefully he would have seen that. I said, "It will be seen that the policy , of the Government has been one of creating money by the use of the printing machine instead of it being brought into circulation from the production of civil goods and services.” Seeing that money can only come into existence by two methods—(l) as the result of goods and services, or (2) by the use of the printing machine —and that money is in abundance relative to goods, it is obvious that it must have come into being as the result of the printing machine. It must have lost a certain amount of its exchange value and must, therefore, have become diluted in purchasing power. " S.” informs us that “ the main source of community buying, wages and salaries, have been stabilised at only 10 per cent, above pre-war level, and is subject to heavy deductions, whereas retail prices have soared far above that point and are still rising. This is quite true, and when analysed clearly proves that the Government, which professes to represent the wage and salar/y earners, must be classed as either incompetent or dishonest, for it has pegged the money wages of the working classes and decided to reduce their real wages, i.e., goods and services. A sensible and honest policy for a Labour Government in wartime would be to fix the minimum goods w r age of not only the working classes, but of all people, and to divert their surplus spending power to the production of goods and services for war and other purposes. It would by this method help to increase the exchange value of all the people’s money. A policy of this kind would allow the Government to remove most of the existing restrictions and regulations and subsidies, for it must be understood that most of them are for no other purpose than to restrict production and keep up a system of exploitation by monopoi / control. The use of a little common sense will show distinctly that in war-time, when increased goods and services are needed, the fullest amount of liberty and assistance should be given to all sections of essential industry to engage in the production of goods and services required • for civil- and military purposes. By su-.i a policy we should be able to find work for many of our able-bodied men and women who are now receiving age pensions and who are willing to work at ' this juncture if allowed, and we could also keep up our standard of living, if not improve it. The only persons who do not seem to realise this fact are those talkative gentlemen who, unfortunately, occupy the Treasury benches.. I agree with Mr Langstone- that a big amount of hoarding of legal tender notes is taking place, and this is not to be w'ondered a. for. the problem at the present juncture is not to prevent inflation, but to prevent the dam from bursting through high prices.—l am, etc., C. M. Moss.— North-East Valley, May 29.