CORRESPONDENCE

Te Awamutu Courier, Volume 71, Issue 6137, 17 September 1945, Page 2

CORRESPONDENCE

BANK OF NEW ZEALAND Sir, —Your correspondent J. T. McBeth quite agrees, then, that the control and direction of the money system should be divorced from the influence of party politics and private institutions, but seems to be worried because he can find no He then goes on to set up a hypothesis that is relevant only to the Labour Party’s policy of endeavouring to operate industry instead of controlling and directing. A government’s job is to govern. Since it is argued that the monetary system should be independent of political party or private institution administration, obviously if it is operated by private institutions for the benefit of their shareholder how can that operation be said to be free of mischief to the people as a whole ? The fact that the banking system is owned by the State but operated under independent authority does not mean that the integrity and knowledge of the present system need be or even are likely to be superseded; but it would mean that the operation of the banking system would be for the benefit of al] the people and not for the profit of the few. Your correspondent carefully ignores other matters raised in this correspondence, and particularily avoids answering plain questions irrespective of what correspondent has asked them. Along with “ Wbrker ” and others, reliance is placed on Mr Nash and his statement that “ the Government has already full and effective control of the monetary or financial policy of the country.” However, both these correspondents are not so bemused by Mr Nash, or are they inclined to accept him as an authority when he says the policy of the Bank of New Zealand will not be changed. The same applies in respect to Major Douglas when his opinions can be made to appear as supporting your correspondent’s views; then he is an authority, but not at other times. Oh, no I Political party control of the present system under the guise of nationalisation would hardly appeal to Douglas. To suggest that an authority similarly appointed as the judiciary would establish a self-serving financial dictatorship is just as absurd as to suggest that such an authority would be beyond the control of the law. Be it noted, however, that control and direction of the §nancEaJ system by an independent authority will not permit the self-satisfaction of dividend payments on shares. The foregoing, Mr Editor, is sufficicient answer to J. T. Mcßeth’s criticism of democratic principles generally accepted in this country without question. Maybe your correspondent can now be induced to answer some of the other matter which has studiously been avoided in his statements “ because the Government does not propose,” etc. There are a lot of things the Government does not propose to do, including the leaving of the banks in control of the creation of credit and its non-creation, and the policy of the control of the monetary system under an independent authority for the benefit of all Jfhe people.—l am, etc., T WALLACE J. HODGSON.