MONEY REFORM

Poverty Bay Herald, Volume LV, Issue 17503, 27 February 1931, Page 7

MONEY REFORM

AN EXPERT’S COMMENT AUSTRALIA’S UNWISE POLICY (Received Feb. 27. noon.) LONDON, Feb. 2G. Mr. J. Taylor Peddle, the wellknown economist and money reformer, author of a book entitled “A Dual .System of Stabilisation,” has made an important discovery in the science of money, particulars of which have been forwarded to the Australian Government.

He claims that the system permits an expansion of currency to take place Without, inflation, and also eliminates deflation from the currency system. In other words, it stabilises all implications of the quantity theory of money, ft is an improvement on tire Federal reserve system, eliminating all the detects therein which were disclosed during the last Stock Exchange boom in America. Interviewed regarding the Australian Loan Council’s decision to inflate the fiduciary issue, Mr. Peddle said he greatly regretted such action, which was quite unnecessary. He was in sympathy with the objectives of money reformers in Australia, but strongly disapproved their proposals, considering that the suggested cure would lead to Irreparable disaster and considerable loss of credit. Australia’s first aim should be to restore the currency parity and then set about the reform of its central banking practice. The Loan Council’s proposals should be deferred for four months, when the British Government committee’s report on finance and industry would be available.