CREDITS AND CURRENCY

Taranaki Daily News, 21 October 1933, Page 9

CREDITS AND CURRENCY

PRIVATE BILL DEFEATED “WAY TO REGAIN PROSPERITY.” DESIRES OF LABOUR MEMBERS. SECOND READING VOTE ADVERSE. £ Bv Telegraph—Press Association. Wellington, Last Night, Moving the second .reading of the National Credits and Currency Bill in the House of Representatives to-day Mr. H. G. R. Mason (Lab., Auckland Suburbs) said that under the present system money was not used towards the enjoyment of the world’s wealth and the Bill was designed to remove that anomaly.. It would provide money for those m need and their purchasing power would create a demand sufficient to regain prosperity. The amount of money m circulation could be governed by the Government, and if there was too much it could be adjusted by taxation. The volume of money should be adjusted on a commodity basis. Mr. F. Langstone (Lab., ,Waimarmo) said that under the proposals of the Bill money would be used as a means of distribution and as an index of price?. It was ridiculous to allow London to fix New Zealand’s price level. Price was the central factor in the economic system, because it governed the existence of assets and securities. A fall in price levels did not put goods out of existence, but it froze assets. The world was abounding with wealth which could not be distributed because of • the faulty monetary system. Mr. R. A. Wright (Co., Wellington Suburbs) said it was unfortunate that the distribution of the world’s wealth was faulty, but it was not clear that the Rill would alleviate the position. The proposals for increasing the volume of currency did not appear to be sound and were fraught with dangers of inflationary schemes. . . The Leader of the Opposition, Mr. M. J. Savage, said Mr. Wright appeared to be creating a scarecrow for the electors. Mr. Savage declared that production should be the basis of currency, and that was the purpose of the Bill. The Bill was defeated on a division on the second reading by 37 vote? to 27.