VOICE OF THE PEOPLE

Taranaki Daily News, 22 June 1935, Page 9

VOICE OF THE PEOPLE

VIEWS ON CURRENT TOPICS

POLITICAL CONTROL OF BANKING.

FALLACY OF SOCIALIST POLICY.

(To the Editor).

Sir,—The New Zealand Welfar</League recently drew attention to the LabourSocialist pplicy for nationalisation of the banks. We ventured to point out that political control of banking and‘investment would jeopardise the savings of depositors, of whom the-huge majority are small capitalists. . ..

Twocomments have - been made in reply. One is that unless"'the banks do . more to help in the distribution' of the products of industry “in accordance with the will of the/people’’ they, will only have themselves to blame if they are nationalised and brought under political control. This is,.surely, - a weak criticism, because no bank, - whether national or private, can made greater advances to trade and production, unless there is an increased demand frpm credit-worthy applicants. It is a bank’s business to grant advances and assist. trade because it is from this that 'it makes. its profits. So any bank will make advances when safe. . To grant accommodation to unsound applicants would be mere gambling, and would involve A the banks- fwhether national or -private) in serious loss. Thus , to expect a nationalised, bank to'qmke ad- - vances ■ “according ’to the , will- of the people” rather ,thap qh sound Security would lead to. disastrous loss bank “land depositors,' and ; wijh 5 political 'cbritrdl'of banking-flte “will ,0/ the ptopie” rather than-“sound business’’ would beithedgovernipg factqr,_ ' ( - The other comment that thousands who are not depositors need not worry about this is mistaken;/.because's. banking disaster would, affect every man, woman and child in the country/'not >only depositors. LWe are,- etc.,. ?’■'■* •' • •. ?■ '-." ■’•■• < •? N.Z.;WWEARE LEAGUE. : A CREDIT OR LAnD REFOR&I. - “ 4 Jbe Editor),! 4 Sir;—Mr. Mason.: in Jiis' replyl '.reveals that he. lacks » ,knowledge' of.-tlte -principles propounded- by.’Henry.-JGeorge, arid jit jg no argunxeptXbssertthatlhta ifcpqry .is defla'tionary. withbuLcorroboration. The 'same applies ,tp jiis'tetatemeht regarding .Major; whp.' has' «- ;fused 'Sifigl# n •*> : : In anticipation of the problems of the •future George 'in his -work -“Progress and Poverty’’.' (writtep''lB79) . says: been, told -thqt tjihe' .jpKfyailjhg is due to overconsumption;jvgon equally .high authority- that jt■ to. over-, production; .Tvhile th? . wastes rif*war, the extensions of railroads; -the attempts of " workmen to keep up wages, the : demonetisation of silver, the Issues of . paper money, the increase of labour-saving machinery, the opening of shorter avenues to trade, eta, etc., are separately pointed out as . the . cause .by writers of reputation.” . , -’i. We -thus see that even ii^'hisitimri the silver anil money questions were cofisid- . ered the. causes: of-distress by many people. , Mr. Mason’s reipgfiy ;is sought in the same wrong direction.” George .in ntswork says: “lyhile professors v thus disagree, the. ideas that there is a necessary conflict between; capital and labour, that machinery - is an evil, that’’’competition must be restrained and interest abolished; that wealth may be created by the issue of money,-that it is the duty of the Government to fuVnish capital or to furifish work, are rapidly making way among^the. , people ~who keenlya-hurt and -are. sharply, conscious of a' wfon£.” He shewed the fallacies underlyirig the economic reasoning of that day, which is still ad-. , vocated ■by Mr. Mason and company.. ; • “The idea. that .wealth’ may be. created by tlte ' issue of'money” is the .error at the root ,of all currency and credit; re-; forms -that.ignore the Jand question. Whatthe z masses suffer from the lack of-real wealth, not the laCk’-jof : credit, or even money. This real wealth is continually being produced by the workers, but credit ; reformers think that by giving the work- ■ %rs‘a larger credit oy a.<bigger 'supplj'<of claims upon wealth 'the tracer or jr®aj wealth will be.effected. All experience proves-the fallacy of this reasoning; Thorold Rogers, in “Six .Centuries bf._ Work and Wages,” states: “The fifteenth century was the golden ag& .of Britisfi labour. Fifteen weeks’ work Would tain an unskilled .labourer and hiis family for a. year, ten weeks a-Skilled labourer likewise.. You,could bpy 90 eggs for a Id, wheat was Is 4d pfer bushel,' i. pigs were 4d each,-wool 6d per lb ®nd beer a halfpenny per gallon.” How <|oes that compare with the twentieth century inflation? . z \ ; U; 'ln f conclusion, to 'show your readers that' money is .not .-the cause of out troubles, permit .me to,quote from “Das Kapital,” by Karl Marx, who states: “A" Mr. Peel (a. hundred ‘years ago) went to the Swan River, Australia,, with 50,000 golden sovereigns, men, women and chitaren, and-aU the English modes of production; but, when lie got there, he. could not get a man, woman or child to, cook his teod, make his bed. or. carry water;; from the. river; notwithstanding-he had” paid all 1 their expenses.” Wift- Mr. Mason see the cap and tell us’why?— l am, etc., ‘ . •. ,W. SHANKS. Tatu, June 15. J ' '■■■- ' . ' ' . ■ - • MODEL AERO. CLUBS. . '. ;. z (Tq the Editor). . ' ' - ; Sir,—l am rather surprised at Mr. F. 'J. Brown’s pressed ignorance; regard- • ing the Taranaki "Union of Model Flying Clubs. This union was- originally spon-. sored by the. New Plymouth Model Fly-j ing Club,: but now has a fair outside membership. , ’ . I understand Mr. Brown has known of the union for some time, and has asked/ the secretary for photographs'.' of -the 'members, of its executive to publish in ■ the magazine he edits for the New Plymouth Model Aero Club. Moreover, I. believe he has verbally applied for affiliation with the union. If he really desires further information-' I would advise him to write to-the secretary, Taranaki Union of Model Flying Clubs, New Plymouth, arid if he desires his club to affiliate I am sure the union’s Secretary .will be pleased to receive his. written application.—l am, etc.. ’ , \ GHas. M. SMITH. Waitara delegate to T.U.M.F.C. s Tikorangl, May . 20. j •