RETURN TO GOLD

Wairarapa Times-Age, 22 May 1944, Page 3

RETURN TO GOLD

INTERNATIONAL FINANCIAL PLANS THREAT TO NEW ZEALAND SEEN. I MR. JOHN HOGAN’S ADDRESS. The threat to New Zealand and other small democracies implied in international financiers’ plans for a return to the gold standard was emphasised by Mr. John Hogan, editor of “Democracy,” when, last night, he addressed over 350 people in the Regent Theatre, Masterton. On the motion of Mr. G. Masters, seconded by Mr. A. Maidment (Greytown) the meeting unanimously passed a resolution “viewing with alarm international proposals to return to the gold standard and demanding to know how far New Zealand had been committed to the project.” Mr. Hogan referred to the recently announced currency stabilisation agreement made by 34 United and associated nations, including New Zealand. He said the people of New Zealand and Parliament should have been given the opportunity of discussing the currency proposals. The announcement of the fait accompli had become too familiar a technique. The scheme adopted in principle by the 34 nations was designed to facilitate the restoration of free international trade after the war; backed by an 8.000.000.000 dollar stabilisation - fund based on gold in which the contributory members’ quotas were fixed and voting power would be distributed in close relation to the quotas. Mr. Hogan said the gold standard was as dead as the dodQ. He said they would be faced with a position which would threaten New Zealand’s right to establish her own standards. The lead in economic progress had to come from the small communities because in the small countries the prospects of a democratic new order were brighter than in the large countries. Mr. Nash had represented New Zealand at the International Currency Stabilisation Conference, but there was nothing to indicate that he had taken there any instructions from the New Zealand Government, "If we are to survive, we, along with other small nations, will have to repudiate these representatives,” said Mr Hogap. The use of the Bank of International Settlements, which had operated throughout t the war, in Switzerland, was referred to by Mr. Hogan. The chairman of the bank, he said, was an American, and the majority .of the directors were members of Axis countries. The Governor of the Bank of England used to be on the boaid, but despite questions in the House .of Commons, no satisfactory explanation had been given as to why Allied representatives continued to have dealings with the bank, which was a pio’Axis organisation. "There is no reason why New Zealand should not develop her own resources,” said Mr. Hogan.. "I am all in favour of decentralisation. Thousands of young people are being trained now in technics! skill which thej will wish to apply after the war. That does not mean that none will want to go on the land. There is no reason why New Zealand should not develop an industrial and agricultural economy side by side.” . Mr. Hogan said he was not in favour of isolationism. Each country must provide first for its own needs from its own resources, and then, exchange its surpluses from those of other lands. “In nature there is no such thing as debt,” said Mr. Hogan, in advocating a scheme of national finance under which an ordinary balance was arrived nt each year. He maintained that a monetary system under which the issue of new money increased the national debt was wrong. At the conclusion of Mr. Hogans address a resolution was passed urging the Government to finance reconstruction and rehabilitation op a debt free basis.