Public Opinion

Wanganui Chronicle, Volume 74, Issue 139, 15 June 1931, Page 6

Public Opinion

LABOUR'S OPPOSITION Sir,—Air Holland (Labour Leader), is reported to have said in his address at Dunedin m Alay, that:—“To-day the workers were up against opposition never before experienced by them iu New Zealand.” Doubtless the results of the municipal elections had led him to that conclusion. But the statement is not true; and Air Holland knows very well that it is not true. The electors who voted so solidly against the “Labour” ticket were by no means of the leisured, monied class that it suits the Labour Leader to represent them to be. Probably a large proportion, if not a ma jority, of the hostile, i otes came from men, and women who have by prudent management established homes in this country for their chil<Dcn, ano their own old age, and have no wish to imperil the safety of their cosy tiresidos by entrusting them to the tender mercies of men who have fre quently expressed admiration of the administration of the Soviet Government, and a determination to follow their lead should opportunity offer. In addition to these there arc thousands of casual workers in New Zealand who realise how difficult the state of the world markets is making the position for- employers and workers alike. Those with the same end in view of establishing homes and finding secure investments for their savings, are not likely to be led into troubled waters by the Communist element. It is, therefore, not truthful to say that the workers are “up against opposition,” the opposition is obvious, but it is directed against, the so-called “Labour Party” of the Dominion, who are being repudiated by that very section of the population whom they pro fess to represent. The cry of class prejudice is a very useful means o*’ breeding ill-feeling when made use of by political mischief makers, but it has little likelihood of being successful in New Zealand, where the great majority of our people are themselves

“workers,” or in near blood relation ship with them. Just as well for the future of the colony that the early pioneers .were men and women accustomed in their native land to hard work and temperate living. Of course there were a few' slackers, but merely sufficient in number to supply the exception that proves the rule. At present the opposition dreaded by Mr Holland is more the result of individual study of the political situation than a combined effort to shake off the unwholesome influences which the disciples of Lenin seek to introduce. If an organised opposition is decided on Air Holland shall be given much more substantial cause to dread the result. —- Yours faith full v, “R.S.” MONEY AND ITS ILLUSIONS Sir,—The report of the speech by Mr Olaf Holst to the Rotary Club, as appeared iu your issue of laic, culls for a few adverse comment*

Mr Holst states that “money of whatever kind, must possess uniformity, durability, divisibility and portability—hence the precious metals have become generally adopted for monetary purposes.” Air. Hoist’s definition of money compels him to conclude “that cheques and promissory notes are not money, and can never become money.” This is the most extraordinary bit of reasoning that 1 have read of lor many a long day. Knowing Air Holst personally, w’ith great respect for his wide euridition on banking economics, one is at a complete loss for such statements and conclusions. Air Holst continues, and makes the further extraordinary announcement “that the extensive use—cheques and promissory notes —denotes a high standard of civilisation.” Evidently Ah’ Holst belongs to the old school of thought that sub scribes to the false idea of the intrinsic value of money and that our credit structure is based upon gold.

Sir Robert Griffen, in his “Financial Essay,” showed that “as long as the attention is riveted on, not the real currency paper,'but upon its assumed basis—gold—correct, conclusions upon currency questions are impossible. ’ ’ Sir Felix Schuster, one of the world's outstanding bankers, says, “The theory of banking is one thing—the practice quite another. Banking has evolved far beyond the theory on which it is supposed to be constructed,” and in a speech as reported in the “Banking Record,” September 2.1, 1914, he stated: “The currency of the country is supplied by cheques instead of, as the Bank Act intended, by the Bank of England notes.” It would be interesting to your readers if Air Holst will elucidate as to what he means by money as a storage value—“its durability, portability, and divisibility.” The latest banking authorities have no such fossilised ideas, viz., Professor Kaynes, Sir J. Stamp, Gustav Cassel and a host of others. Professor Cassel in “Post-War Monetary Stabilisation,” p. 34, says that the world system of paper standards did not necessitate stabilisation with the separate currencies related to gold. He continues and shows how gold is subject to all kinds of variations, and that all countries on the gold standard have suffered depressions. Professor Irving Fisher, in his book, “Aloney Illusion,” showed the utter fallacy of gold possessing uniformity and stability. Mr A. AL Field, in his book. “The Truth about the Slump,” p. 20.. showed how the illusion operated, viz., “that prices rise and fall, but money remains unchanged in value, whereas the truth is that our gold is one of the most unstable things in the world.” Sir J. Stamp argued similar ly when he affirmed that he considered the greatest single evil of our times is the instability of our monetary unit. With all due respect to Air Holst and his affirmations, a paper currency exists, civilisation cannot exist without it. Its convertibility into gold is a snare and a delusion. It is upon this fiction that the bank trade and charge inter est, not. property. It is the most con venient representative of true capital, wealth. When we want the right to use our own tokens of wealth —cheques and promissory notes —we have to pay interest —if we mortgage our wealth —for the circulation of our own repre sentation of our own capital. Such is another aspect of our so-called vaunt ed civilisation I am, etc., “STATE BANK.”