THE MONETARY PROBLEM.

Timaru Herald, Volume CXXXVII, Issue 19622, 17 October 1933, Page 11

THE MONETARY PROBLEM.

To the Editor of ** The ’ maru Herald” Sir, —It is quite clear where Rt. Hon. George Forbes, Prime Minister of New Zealand, stands. A year ago. Mr Forbes admitted that he knew nothing whatever about finance. This year he tells us that, rather than adopt the financial policy of the Labour Party, which Is a good one, or the Douglas scheme recommended by the Independent Party, which also is a good one. he has decided to support the present pri-vately-controlled financial system. The system which Mr Forbes seems to have pledged himself to support has left a trail of misery all though history. and has brought the mightiest empires to the dust. It has fomented and financed all recent wars; controls all conferences, and boasts of controlling the League of Nations, and the

IAJJN 1 xivju-i wr imuj-iw. To the Editor of ” The Timaru Herald ”

Bank of International Settlements. During the war Lord Northcliffe told us that it held Canada, England, France and Italy in the hollow of its hand, and could crush us at any moment: and that, while it was placing every obstacle in the way of the Allies, it was helping the Central Powers to the limit of its ability. It turns the blessings of science into curses; and has littered the whole world with ruin, hopelessness, unemployment and want in the midst of plenty, by deliberately precipitating the present slump, to double the value of money, thereby doubling all debts owing to it; and it was powerful enough to make people believe that it was honourable to pay interest on money they had never received, and to get them to denounce France because she refused to be so foolish. It pretends to lend money, but does not. It pretends to finance public undertakings and industries, but it does not, and cannot, for the very good reason that only consumption can be financed, and that we can do ourselves without going into debt to the extent of a single penny piece. While production increases faster than population, it increases debt faster than either, thus making it utterly impossible for prosperity to return to the world so long as such a baneful system is allowed to continue in operation. Science has made it possible for all to receive an ample supply of the necessaries, comforts and luxuries of life; but our financial system has frustrated science, and millions are now in destitution, and every nation is in dread, wondering what diabolical surprise the Money Power will spring upon them next. If Mr Forbes allows Mr Coates to establish a privately-controlled Central Bank in New Zealand, he will regret it all the rest of his life.—l am, etc., A. M. PATERSON. Timaru, October 16.