GOLD AS A STANDARD.

Waikato Times, Volume XXXIV, Issue 2790, 31 May 1890, Page 3

GOLD AS A STANDARD.

TO THK KDITOIt. Sri;,—Tho discussion in the papers lately lias dune much good in exposing the fallacy of Henry George's theory, viz., that poverty can be cured by a breach of the eighth conunandmont. I saw inan Auckland paper lately a proposition by Senator Standford; which that pnpor condemned as unworthy of consideration, which makes the scheme no hotter and no worse, and I believe it would strike at the root of many of our troubles. I have talked to, and corresponded with the lato Mr James McAndrew, on the same subject, and he earnestly believed in it; it is net the want of land which is Hie causo of all our poverty, as there is plenty in New Zealand and all overthe world unappropriated to the use of man, but the want of money, because of thefictitous value put on gold, which prevents men from enjoying the fruits of their labour or the blessings of providence, unless paid for in gold, so that if the fruits of the earth or of man's labour increase faster than the production of gold, according to the law of supply and demand the gold will fluctuate and increase in value, whilst other things will fall, so that in place of an ounce of gold purchasing a quarter of wheat or other necessaries we see half an ounce purchasing tho samo amount, while Mia disparity Roes on, making the rich richer and the poor poorer until an infinilisnml quantity of gold will purchase commodities, and uutil inadequate to pay the price of production, when the producer must cease production, or the grain will rot in the granaries, the merchant's goods in the store, whilst millions go hungry and naked, and are sent away for want of the means to purchase. There beincr no medium to purchase, the produce of labour and of the earth cannot be ratified, in consequence of this functionary and ideal standard of value, which causes men to rush to the ends of the earth to get that which neither feeds them nor clothes them. Why should the rich set up an accursed sword to debar the poor from the enjoyment of the fruits of their labour, and the bounties of the Creator. Only gold is tho cost of all evil. Senator Standford proposes to take tho bull by the horns, and make the land tho basis of all security, which it most undoubtedly is, and to issue notes at a low interest to half the value of the land, or other equally good security, a more enlightened plan than compelling the banks to hold gold against tho circulation of their notes, at the risk of being stolen, and compelling the country to pay interest on a dead stock. Take New Zealand for example, tfye banks hold some ten million against the circulation of notes lying idle, but paying interest. How can this be considered safer than ten millions represented by double the amount of land producing to the country in increase and labour, not only the interest, but it may be ten times the amount requiring to be paid in interest and sinking fund '! That American green-backs may be taken as an objection to the scheme, but everybody knows circumstances alter things, and it is very diflerent to issue notes for the purpose of destruction than to build up a country which, I have no doubt, tho results would prove. Had it been in force in the beginning of the colony wo would now have been free from debt, and saved the country from sending away interest to the amount uf halt a million yearly, while at tho same lime our exports would have been doubled, and far more than meet our foreign exchanges, the earth being made to give forth her increase, while the security would be undoubted, nationable and indefeasible.—l am, &c., T. M.