CREDIT AND CURRENCY

Timaru Herald, Volume CXXXVII, Issue 19626, 21 October 1933, Page 3

CREDIT AND CURRENCY

MR MASON’S BILL REJECTED. By TelegrapK—Press Association WELLINGTON, October 20. Moving the second rending of the National Credits and Currency Bill, in the House of Representatives to-day, Mr H. G. R. Mason said under present system money was not used towards the enjoy: ent of the world’s wealth, and the Bill was designed to remove that anom. ’y. It would provide money for those in need, and their purchasing power would ertnte a demand sufficient l > regnin prosperity. The amount of money in circulation could be governed by the Government, and if there was too much it could be adjusted by taxation. The volume of r oney should be adjusted on a commodity basis. Mr P. 1 ngstone said under the proposals ol the Bill money would be used as means of distribution, and as an index of prices. It was ridiculous to allov London to fix New Zealand’s price level. Price was the central factor in the economic system, bee .-.use it governed the existence of assets and securities. The fall in the price level did not put goods out of existence, but it froze assets. The world was abounding with wealth, which could rat be distributed because of the faulty monetary system. Mr R. A. Wright said it was unfortunate that the distribution of the world’s wealth was faulty, but it was not clear the Bill 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 said Mr Wright appeared to be creiting 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 rejected by 37 votes to 27.