FINANCIAL SYSTEM

Waikato Times, Volume 116, Issue 19421, 22 November 1934, Page 2

FINANCIAL SYSTEM

“FAILED AT THEIR JOBS.” ECONOMIC JARGON DEPLORED. DOUGLAS MEETING AT TE PAHU. “ Many people vJ|ho believe that the financial system is defective are deterred from criticising it because they think that finance is too complicated for them to understand. Because they cannot comprehend the sort of Jargon that appears in the Metropolitan Press financial columns they think tihat only an expert can deal with the subject," said Mr. C. A. Barrell, of Hamilton, speaking at a meeting of- the Te Paliu branch of the Douglas Social Credit Movement last evening. Mr. P. H. Kendall presided over a good attendance. Mr. Barren*went on to say that it was not necessary to know the technicalities of any system, financial or otherwise, to know whether it were acting properly or not. All normally Intelligent peoplo knew what the true function of-money was, and whether the financial system was performing that function "or not. He urged his hearers to use the same methods of Judgment towards the money system as they used in the ordinary affairs of life.

“ Suppose, for example, you wish to take a taxi to a certain plaoe," said Mr. Barrell, "you do not wait until the taxi stops, lift up the bonnet,, look ( ,at the engine, and say, ‘ This is too ' complicated for me to understand; I’d better walk.’ - You *know all that It is necessary to know about a taxi in order to. use It. You know what It is supposed.to do: Y° u know where you want to go and that it should, be capable of taking you there. Further, you understand perfectly the true relation between the public and the technical expert who professes to serve them. If the taxi breaks .down, half way, you would not accept the driver’s suggestion that the distance is too great for the taxi, therefore you must choose a nearer destination. You would call him an ass amt get another taxi. That is precisely the way the publio should regard the financial system. Intelligent people know all that it is necessary to know about finance. They know that the function of money is to facilitate the distribution and exchange of real wealth In the form of goods and services. •' Distinguished as Duds.” ' “They know," continued the speaker, "that this country can pro-i duce and import enough goods to enable the whole population to live in comfort and security without fear of poverty. At the same time they know that the only reason why these practical possibilities are not realised is because the people as a whole have not enough money and are consequently affllicted with scarcity in ! the midst of potential abundance because of some defect in the money system. It is clear from these selfevident 'facts that the controlling financiers have completely failed at their job. Their failure has, rendered all the triumphs of civilisation more or less negalive. In the midst of a community which has performed V miracles of science and solved prob%ma which had baffled mankind for age's, "~4he financiers stand out prominently as the only profession that has completely failed at its job. In a generation of geniuses they stand distinguished as duds. “ This is all that is necessary to know in order to demand a reform of the financial system,” the speaker \vent on. Ordinary people knew that an abundance of goods could be produced, and they knew' that money itself costs practically nothing and could therefore be produced as easily as anything else. .-v •* it only remains for yo.u to refuse t to be put off by financial and economic Jargon," concluded the speaker. “If a financier or an economist gives complicated reasons Miy a nation surrounded by abundanoo cannot have it. It Is obvious that, whatever bis Jargon means, it Is nonsense and he himself an ass or a trifler. The only way’ to treat such Jargon Is not •y'-£o {py and understand it, but simply to Ignore it. And, this being a democratic country, the next step is clear; the people must demand that their Government treats its dud banking -system as you treat a , taxi-driver whose cab doesn’t go. You don t argue about the mechanism. You ask him if he can put it right, and if he can’t you get another cab." Mr. J. H. Pennlket and Mr. Marcus James also briefly addressed the gathering, and after a large number of ■questions had been answered the speakers were accorded a hearty vote of thanks. Mr. .1. Holley was elected as delegate to attend the annual conference of the movement at Tauranga In January.