AN OPEN LETTER

Timaru Herald, Volume CLVIII, Issue 23318, 29 September 1945, Page 6

AN OPEN LETTER

TO THE BUSINESSMEN OF NEW ZEALAND Although the war against the Axis Powers and their satellites has been y, on ’ is no exaggeration to assert that we are confronted with an economic and financial situation of extreme gravity: a situation which is fraught with the certainty of dire catastrophe unless—and this depends to a very great extent on you—immediate and effective demands are made on our legislators in Parliament to have the present unjust and inadequate financial and economic system rectified at the earliest possible moment. No person, and certainly no business man, should delude himself that now the war is over he is secure in the control and enjoyment of his own possessions. Actually, if we but have the courage to face unpleasant and disturbing facts, it will be realised that never before was the individual less secure in his own world than today. Professor F. A. Hayek, author of “The Road to Serfdom" (a book which has created a mild sensation throughout the English-speaking world) as well as a number of other far-sighted and outspoken writers. has convincingly demonstrated that the same agency which helped to build up the aggressively strong power of the Nazi system —the Finance-Capitalism of Britain and America, comprising those who have the power to create, issue and recall money—is at work to-day. and it should always be remembered that their economic planning and State regimentation is diametrically opposed to free enterprise as typified by Industrial Capitalism. But how many people, especially business men with first-hand experience of the perils of irksome regulations restrictions. State control and industrial interference generally, ever think of doing more than deprecating prevailing tendencies? Is it not true that with a few exceptions, business men are content to rail at effects because they are too smuglv complacent bv reason of having achieved a degree o f success in life to bring their experienc" and intelligence to bear on root causes" Yet. unless business men immediately bestir themselves, they will find that they have become the puppets of a slave State with an internal economy dictated by an all-powerful international super-government over which they have not even a vestige of control. Little do thev realise howpregnant the present situation is with tragedy. How many business men appreciate for instance, the far-reaching effects and hidden dangers of the Bretton Woods proposals? How many business men and politicians realise that here is the most powerful scheme ever devised for the international control of our money system—under a gold standard —by a world monopoly which recognises no outside authority or responsibility to any Government? In the internal sphere the business men of New Zealand have been fighting the issue of private enterprise versus State ownership. choosing the banking system as the common battle-ground But it is now generallv admitted that our banking system is not a sound ground on which to fight this vital issue. While there are many avenues on which the Government should not encroach or interfere, surely it cannot be considered unreasonable for the State to exercise its prerogative to see that our money system is brought i ider proper control. What is important —and this is where business men should assert themselves—is the principle governing the control of credit and currency, and not so much as to who does the actual controlling. Business men should insist that our money system be made sound and adequate. The guiding objective of control should be the maintenance of a stable internal price level, ensuring a just and constant measure of value for our monetary unit. That is not what International Finance wants. Money Power wants a fluctuating monetary unit and a price level for commodities that fluctuate with the price of gold, which they control. What an Iniquitous system to inflict upon humanity after emerging victorious from a world war!

For how much longer will business men fail to realise tnat the prevailing obsolete and fraudulent monetary system is the evil at the root of most of our economic ills? Why do they so blindly and stubbornly refuse to face up to facts in the economic and financial world testified to by most of ' the leading authorities on r rance and banking; facts which speak for themselves if only men will exercise their own judgment? What business man is not aware of the crippling effects of the enormous burden of national and private debt piled up under orthodox finance; of the crushing burdens of interest and taxation on both industry and the individu;' which this system must inevitably produce? How can any intelligent man ask for substantial reductions of taxation when he actually opposes or refuses to support the reform of a system which, as experience in all countries and under all types of government demonstrates, must of its very nature breed ever-increasing debt, taxation and servitude? Moreover, it is this system which inevitably generates strife and strikes, class warfare, discontent and mutually conflicting demands. It is this system that is responsible for the quite illogical attack on private enterprise, on the so-called “profit motive together with the ever-growing demand for government controls which can only result in more restrictions of individual freedom to both Industry and Labour. . These government controls and restrictions are speciously declared to be the only alternative to a continuance of the economic tribulations suffered bv millions the world <ver in times ol so-called peace. Nor can it be expected that many who. in the words ol Britain's new Prime Minister, Mr Attlee, have been ‘ill-fed. ill-housed and ill-clothed,” allegedly because of the defects of "private enterprise inspired by the profit motive." will much longer passively submit to these unnecessary and easily avoidable hardships. It must not be thought that the world-scale to which these attacks on private enterprise have grown, side by side with the development of economic and industrial conditions calculated to engender a spirit of revolution, are t>j anv means either coincidental or accidental. Behind this economic planning regimentation and enc E°*]?'J n ? private enterprise —as reflected in all kinds of international agreementshemendously powerful forces are working to bring Industrial-Capitalism as tvnified by private enterprise, under the complete domination of Finance w-nitalism more ruthlessly than eve 'rented - will not be found by mere wishful thinking: still k s boreposing confidence in the empty prom&es of party politicians. The task “alls for courage, intelligence and coordinated effort. These are qualities which sp’eciallv fit business men for such a task. In the international sphere pressure should be brought to bear on the Government through indivffiual members of Parliament to reject the dangerous Bretton Woods pio nosals In our internal economy we must face up to the fact that the root cause of our economic troubles is inseparable from a defective money system It is for the business men to find a remedy for the 11 s now being aid at the door of private enterprise To this end. our credit and currency should be placed under the control of r non-political statutory authority whose responsibility it shall be to maintain a stable internal price level as to nut an effective check on our ever gMg national indebtedness and enable us to progressively reduce taxation all new money, if and when required for national purposes, should be issued by the Reserve Bank interestfree at its source. . These proposals are not radical Thev are not extreme: they are not dangerous They are conservative, constructive and practicable, and have been urged\y many of the r-rid s ablest economists and other persons of high authority. Always there m~ a time when old traditions must be reviewed, revised, or part com n m with truth and justice That tune has come for orthodox finance The issue as far as this country is cor erned rests with you. The only way in which these essential reforms can be made a reality is bv effective action Have you the initiative and foresight to act' To act now efore it is too late (Published bv courtesy of "The X .rror bv the League .'or Economic democracy. Phoenix Chambers Auckland J—F.B.A.