ROAD TO RUIN

Waikato Times, Volume 125, Issue 20951, 2 November 1939, Page 9

ROAD TO RUIN

MONEY MANIPULATION * HON. R. SEMPLE’S VIEWS ECONOMIC FACTOR IN WAR (Special to Times) WESTPORT, Wednesday Monetary manipulation leading to inflation was condemned by the Minister of Public Works, the Hon. R. Semple, in an address to members of the Buller Farmers’ Union. “ If you issue money without an economic background, you are travelling on the road to national ruin,” Mr Semple said. “ To have value, money must have an economic background. If you issue money that has no substance behind it, you are on the road to inflation, which will ultimately bring a nation to its knees. How can you create the additional value which will allow your money to expand, so that it will meet the needs of the buying and selling public? You can do it only by expanding the annual volume of production. When the annual value goes down, the income of the people automatically goes down with it. I want someone to knock holes in that statement. Money registers wealth.” How Germany Was Beaten Increased production could be obtained by using improved methods and additional value was needed, as never before, oecause the present war would not be won by bullets and bayonets, but by the nation that could stand the strain longer. In war, meat, butter and everything consumable, were just as effective as bullets and bayonets. Germany was not defeated the last time on the battlefield. She was beaten internally, when her economic and money system broke down and she crashed. The German people cried for bread and there was none for them. The economic factor was going to be the chief one in the present war. In addition to helping Great Britain hv manpower. New Zealand had to helo to feed her people by sending, at lowest possible price, all products shove the Dominions needs. That would also strengthen New Zealand’s credit in England.