MONETARY PROBLEMS

Poverty Bay Herald, Volume LXI, Issue 18336, 2 March 1934, Page 7

MONETARY PROBLEMS

PRESENT SYSTEM BLAMED EVIDENCE FOR COMMITTEE SOCIAL CREDITS URGED (Special to the Herald.) WELLINGTON, this day. Monetary reform arouses more interest in the North Island than in the South, judging from the number of applications received by the Monetary Committee from those desiring to give evidence. There has been, so large a quantity of proffered testimony from Auckland that the committee proposes to sit there on March 13, returning niter to resume evidence in Wellington. Few witnesses appear to be available from the South Island. No further evidence will be ■accepted after March 10. A plan to provide self-redeeming paper currency at cost for all public functions, and for’ the general use of the people of New Zealand was submitted to the committee yesterday afternoon by Mr. Alexander Scott, of Wellington. The plan is one previously expounded under the auspices of the New Economics Research Association. Wellington, and provides for the establishment of a central State bank with the sole right of note issue, and the issue of State and local body credits for new works, free of interest. Associated with Air. Scott were Messrs. W. 0. Beer, and C. R. C. Robieson. CAUSE OF UNEMPLOYMENT

Mr. Scott said the greatest problem in the world to-day was lack of purchasing power, but when purchasing power was increased under the present system debt was increased, and when debt was increased the world got frightened. Purchasing power was then cut down, and then the problem of unemployment arose. In his opinion, the problem of unemployment arose out of lack of purchasing power under the trading system. It was very important to have a stable medium of exchange, and money should not be manufactured or traded in as it was under the present system. The medium of exchange should not be subject to speculation. To-day it was a question of de\)ts that was troubling Governments. Mr. Scott said he maintained that the State should use its own credit, and use it fully. Instead of paying tribute to the financial system as at present, money should be regarded as a social function, and not as a means of doing private business. Unless that was done, or unless the present trading system was changed, unemployment was bound to follow, with periodical crises. The present was an age of plenty, and it seemed that Parliament had power to make the people of New Zealand happy ; much happier than they were at present. The first thing to do would be to set up a currency board or State bank for the purpose of issuing its own social credit.