MONETARY REFORM

Taranaki Daily News, 23 February 1935, Page 17 (Supplement)

MONETARY REFORM

PUBLIC ACCOUNTANT’S VIEW. POSSIBILITY OF IMPROVEMENT. It was held by some that internal problems could be solved by the reform of the monetary system, said Mr. H. Valentine to the Society of Accountants yesterday. It was not his intention, nor could he claim to be competent to discuss theories of currency reform. It would be unwise to assume that with increasing experience, research and established knowledge, the system could not be improved and better adapted to present day requirements. The question arose, however, as to whether the alleged imperfections of the system were inherent defects or whether they were not primarily due to external causes and abuses. It appeared that most of the proposals that had been submitted were in the nature of attempts to avoid the inevitable consequences of economic unwisdom in the past. No monetarj' system, however perfect, would maintain economic stability and prosperity in the face of a widespread disregard of the principles of prudent finance, although it might do much to control and check dangerous tendencies A strong case could be made for a better and more scientific control of credit in the public interest by an institution such as the Reserve Bank which commenced operations during the year.