MONETARY REFORM.

Southland Times, Issue 22733, 8 November 1935, Page 4

MONETARY REFORM.

To the Editor. Sir,—lf a wharf labourer appeared before a medical conference and informed the members, that because medical skill was unable to prolong life indefinitely, the whole science of medicine and surgery was wrong and that the panacea for all human ailments was to brand the patient on the back of the neck with a hot iron, I wonder if he would be taken seriously? The position appears to be analagous to those who advocate money reform and socialization of credit against the advice of Bankers and captains of industry who have not only spent the whole of their lives in the study of sound business principles but have the advantage of centuries of experience of their predecessors. I am not aware of having heard any advocate of money reform who had the slightest credentials to be regarded as an authority on the subject, neither have I heard of .any captain of industry on whose management depends, not only the safety of the capital moneys involved but the employment of thousands of workers, advocate such a course. So far as I am able to see the advocates of monetary reform are drawn from the ranks of unsuccessful farmers and persons lacking in business training and experience. If any of those persons whose names we see in your correspondence columns with such monotonous regularity have any credentials to be regarded as an authority on the subject on which they appear to be so fond of writing let them produce their credentials. In your issue of Tuesday I noticed one correspondent appeared quite annoyed because the banks with their experience and expert knowledge had considered it proper to point out that a departure from the cardinal principles of sound business methods would result in financial chaos and misery. Can anyone imagine a more sacred trust than that imposed in the banks. The safeguarding of the deposits of every section of the community. In this small country alone these amount to £60,000,000. I feel grateful to providence that the often heard expression “As safe as the bank” still justifies its use. It appears to me paradoxical that it is always the Labour Party, who by its very nature is composed more than any other party, of persons lacking in business training who advocate monetary reform or socialism of credit, which simply means the handing over of the financial structure to a body of politicians for the tirtie being totally lacking the necessary business training or experience. No doubt advocates of such a disastrous course will catch some of the votes of the unthinking section of the community. It happened in New South Wales in 1930 when Lang, the Labour leader, swept the poll with a platform in many respects similar to the present Labour platform in New Zealand. In case some of the electors are unfamiliar with the result of that case of Labour control of the bank, I would point out that the only bank trading in N.S.W. under political control was the N.S.W. Government Savings Bank. Under the control of the Labour Party this bank suspended payment and closed its doors, the depositors including thousands of humble persons being unable to draw a penny and in many instances having to go short of food arid other urgent necessities. These depositors would have lost their savings had it not been for the action of the Commonwealth Bank of Australia, to whom Lang had to go cringing on his knees to get him out of the mess his interfering ignorance had brought about. The Commonwealth Bank before granting assistance of course made it a condition that the New South Wales Government Savings Bank be taken completely out of political control. So much for political control of banking. I might add that at the next election the electors had had enough of the Labour Party monkeying with the financial machine. The Labour Party was defeated by an overwhelming majority and was again defeated at the last election. Some few years ago a Labour Government was in power in Britain. Ramsay Macdonald was Prime Minister and Mr Snowden (since created Viscount Snowden) Chancellor of the Exchequer. I think it will be conceded that no greater statesman has ever adorned the Labour benches than the then Mr Snowden. It was Mr Snowden who twitted Ramsay MacDonald for departing from his Labour principles. As Chancellor of the Exchequer Mr Snowden gained much valuable experience in finance and with this ac-

cumulation of experience did he wish to alter the banking system? No, on his retirement from politics he stated that the banks had saved Britain in the greatest financial crisis that history had ever recorded. This great financial structure sound to the core as the result of the adherence to sound business principles for ages past, our monetary reformers would destroy at its foundations. Just, sir, as you pointed out a boy with the best intentions would destroy the mechanism of a watch.

For myself, Sir, I am concerned with the prosperity of our country and it is my desire to studiously avoid personalities but the following thoughts keep recurring in my mind. 1. Do the gentlemen advocating monetary reform and what they love to term “socialism of credit” in the face of past experience and what experts and experienced people tell them, honestly believe that such a course could be attended with anything but disaster? 2. If their belief is honest in the matter, is it worthy of the slightest consideration on account of their lack of training and experience? 3. Or finally is it just a big bluff to catch the votes of those incapable of thinking for themselves?—l am, etc., * i AGRICOLA. Invercargill, November 6, 1935.