MONETARY SYSTEM

Wanganui Chronicle, Volume 77, Issue 133, 7 June 1934, Page 6

MONETARY SYSTEM

NEED FOR REORGANISATION SPEECH BY LABOUR LEADER I Per Press Association. 1 NEW PLYMOUTH, June 6. The Leader of the Opposition, Mr M. J. Savage, stated in an address to a good attendance to-night, that while it was correct to say that the national monetary income had fallen, there was a greater abundance of real wealth in existence than ever before. The apparent contradiction was due to the inequitable distribution. Every rule of common sense, said Mr Savage, showed that in the Ion" run the basis of the monetary system should be goods and services, and the banking system properly organised on that basis would provide a means whereby those who produced that wealth would be able to enjoy tie fruits of their labour. It was a fallacy to think that the monetary equivalent of production came from overseas. Money was a national institution for the most part, and had only one reason for its existence —to enable people to exchange services with each other. Parliament was the master of the monetary system, and ■could at will turn it into a natural service. The present depression was due to the fact that purchasing power had not been provided in sympathetic relationship with increasing production. Although that fact could not be disputed, the representatives of the people seldom gave any attention to that aspect of Dominion affairs. While production continued to increase, and purchasing power remained stationary, prices must fall