MONETISED PRODUCTION

Timaru Herald, Volume CXLIV, Issue 20983, 11 March 1938, Page 13

MONETISED PRODUCTION

To the Editor of “ The Timaru Herald " Sir,—During a debate in the House on Friday afternoon, Mr Bodkin speaking on monetary matters, and the service rendered by the banks, said, in effect, that during the so-called depression period, the whole of the production of the Dominion had been monetised. Now, sir, through you I would like to ask Mi' Bodkin, if this is just a rash statement made in the heat of a debate, or his honest considered opinion; for to follow it to its logical conclusion, the foods having been monetised would have been consumed, and I do not think that even Mr Bodkin would say that all the natural resources of this country had been used to their fullest extent during that period. It is a sad but irrefutable fact that thousands were dismissed from work and placed on the unemployment register. If you were to ask the manager of any major manufacturing concern the reason for these dismissals and for the purpose of this illustration. I propose to speak only of foodstuffs, but my remarks apply equally to other commodities. He would tell you that they were not caused by the development of machinery only but through the falling off in effective demand, by which I mean demand backed by money. I have seen fish thrown back into the sea at Port Chalmers, when too large a catch, of say, one class of fish was obtained, this for the purpose of keeping up the price and yet, when that particular catch reached the market, there were hundreds of families, who, not having the money to buy the fish that found its way into the shops, went without. I have seen fruit taken out to the tip from the market because retail shops did not wish to load themselves with that particular line, thus reducing the prices. This sort of thing went on, whilst in the charitable institutions, many inmates did not see fruit from one year’s end to another, further, the menu at meals was reduced through the authorities having to bow to a policy of “sound finance,” and Mr Bodkin says the Dominion's production was monetised. —I am, etc., REASON. Timaru, March 9.