Basis of Monetary System

Manawatu Times, Volume LIV, Issue 7280, 6 October 1933, Page 12

Basis of Monetary System

(To the Editor.) Sir,—A certain section of social reformers, in a delightfully vague manner, talk about a new monetary system based on goods and services. What do they mean? If they mean that total services and total goods are to be classified together as commodities and that the aggiegatc is to be taken as a basis for the monetary ratio, they, are talking absolute nonsense. If, however, they mean that, money is to function, as a measuring and distributing machine, to distribute goods in return for service, then they are talking in terms of the true equation according to natural lav,. In nature, is a man wants anything, he must go and get it—his energy, will and effort purchase, buy, secure or take possession of the object of his desiie.

When*men come together in groups, tribes and nations the same natural law applies. Goods are the product of united effort, past and present. They represent the achievement of all the ages. In a truly civilised community, each man should be doing his quota of service according to the demands of tne welfare of the community, and he should be receiving his just reward. When an artificial system of distribution, such as a monetary system which is completely artificial, prevents active manhood from entering the economic field, it offends against natural law and is a false and damnable contrivance, it is also, when it rewards greed in preference to honourable effort, vile beyond the reach of words. The present monetary system has always been, a miserable failure, as witness the tragic series, almost mathematically regular, of artificial trade cycles. There is a great compelling force. behind natural law and no law made by man can stand against .it. Whether man likes.it or not, he is paying the penalty for his breach of bis natural duty —willy nilly he is being compelled into the path of rectitude. — I am, etc., P. B. FITZHERBERT. Wellington, October 4, 1933.