THE MONEY SYSTEM

Wanganui Chronicle, Volume 83, Issue 56, 8 March 1939, Page 6

THE MONEY SYSTEM

Prime Minister has declared that he is ‘'not. going Io the. Reserve Bank or anyone else for his belief that, the money system should be changed in order to make it fully express the increased production.” How come, Mr. Savage.' Has the Rosene Bank been asking you for an apology for not. understanding the institution which you attempt to criticise’ It it did so it was strangely remiss, because, when a man is a Prime Minister he can think how he likes about the money system, or about anything else for that matter. It is improbable, however, despite Mr. Savage's protests about not apologising to the Reserve Bank nor bowing down to Baal, that any such request, should have been made at any time because it would serve no purpose at all. Mr. Savage does not understand what he terms the “money system.” If he did he would know that when production of goods that are in demand goes up there is always found the money to facilitate their exchange, because money is based on goods. If a farmer makes a pound of butter worth a shilling, a shilling will be forthcoming to pay for it. When, however, it costs the farmer a shilling Io produce a pound of butter, which he must perforce sell for sixpence, there is still plenty of money in the world, but prices have gone awry. It. is not the money which is lacking, it is the demand for the butter. “Unless we get increased production and have it reach the people responsible for it. what is the use of it all? The money system that wo. know has never done that.” How has the standard of living risen with such consistency during the last hundred and fifty years if money has impeded distribution of goods'?