BEGGING THE QUESTION

Waikato Times, Volume 117, Issue 19604, 17 June 1935, Page 9

BEGGING THE QUESTION

(To the Editor.) Sir, —"Ithurial” says: “Monetary reformers may be convinced that it is absurd to Issue new money as a debt. If the issuing authority expects to get the money hack it cannot be anything but a debt. Now I ask monetary reformers: (1) What authority can issue money indefinitely and give it away? (2) If they say the State can, then tell us the value of such money. (3) The Soviet Government issues money. What is the value of a rouble?" I take it he has put three questions. Answer to No. 1: The Douglasites say the National Credit Authority, free and independent of political control, can issue credit, but not as a gift, indefinitely. Answer to No. 2: The value is just what each note will produce in goods and services—nothing more, nothing less. That note before it is issued is backed by the whole wealth of the nation issuing it. In New Zealand it would be New Zealand, and Is Issued on the actual .production and wealth of New Zealand —no production no issue; if there is no production there can be no issue. I will suggest to "Ithurial” that the present note is a valueless piece of paper till the borrower puts his real property • and labour behind it. If “Ithurial” will try and get some into circulation 1 think he will find he will have to put his or some other person’s real wealth as security for same; that wealth makes the borrowed paper of some value; the piece of paper is only a token that he or some other person has pledged his wealth to. borrow and put It into circulation, and should be fail ~to fulfil bis obligation bis real wealth goes west for the use he has had of the'paper, for which he has had to pay toll or interest. I think he will find . that correct. 3- "What Is the value of the rouble?” Like the Soviet commissar, I do not know. But the Douglas note is issued under the system, as you will see by above, of no production no Issue of credit, and therefore no inflation.

There is an inherent right to all citizens to live, and there is no reason other than man-made laws why they should not be fed and -clothed quite well and decently.—f am, etc.,

E. M. MASTERS Hamilton, June 14, 1935.