Territory Stories

Debates Day 2 - Wednesday 1 May 1991

Details:

Title

Debates Day 2 - Wednesday 1 May 1991

Other title

Parliamentary Record 3

Collection

Debates for 6th Assembly 1990 - 1994; ParliamentNT; Parliamentary Record; 6th Assembly 1990 - 1994

Date

1991-05-01

Notes

Made available by the Legislative Assembly of the Northern Territory

Language

English

Subject

Debates

Publisher name

Legislative Assembly of the Northern Territory

Place of publication

Darwin

File type

application/pdf

Use

Attribution International 4.0 (CC BY 4.0)

Copyright owner

Legislative Assembly of the Northern Territory

License

https://creativecommons.org/licenses/by/4.0/

Parent handle

https://hdl.handle.net/10070/279515

Citation address

https://hdl.handle.net/10070/418775

Page content

DEBATES - Wednesday 1 May 1991 If this country is hit by a depression, and the power to create such a state of affairs is not in the hands of the federal government but totally in the hands of those who create the loans - many of whom are not even resident in Australia - the figure of 8.1% of the Northern Territory budget could blow right out. Income would be down but debt levels would remain the same and, of course, would comprise a much higher percentage of the budget than at present. It worries me that our monetary system is such that the government is not totally in control of the situation. It might control some parts of it but it is not in control of the amount of income should a depression be brought on this country. This booklet identifies the problems and also suggests a solution to the American system, which is very much the same as ours. The American Constitution gives the power to create money solely to the government. I believe that power is being given away totally illegally to a body which is in private hands - the so-called Federal Reserve. Our federal constitution provides the power to make laws regarding banking. What needs to be done - and will not be done unless people make the effort to understand and to exert pressure on the politicians - is for the federal parliament to make laws regarding banking and take unto itself the sole power to create credit. We had partial power to create credit with the Commonwealth Bank between 1914 and 1924. During that period, World War I was fought and the public debt was virtually zero because of the way in which money was spent in the society. Denison Miller, a brilliant man, countered the private banks which still operated and created credit. In 1923, they tried to cut off the credit and bring on a depression. He opened the floodgates and was able to counter them. During that time, the east-west railway was built. I bet the planning for the north-south railway, at least through to Alice Springs, was done at that time. It is a pity that he was not around for another 3 or 4 years because we might well have had that longed-for railway. The treasury credit monetary system, which is the solution which this book puts forward, has particular foundation points which I will go through as quickly as I can. Some people have said to me that it is a communist system. I will come to that in point 4. The foundation stones of the treasury credit monetary system are as follows. (1) Money is a public utility rightly creatable through law alone. It is supposed to be something useful, something to serve the community, not to enslave it. (2) Monetary authority has exclusive power to create and destroy money. (3) Monetary authority has supreme power in civil government because money commands resources. The fourth point raises a criticism that I am promoting a communist system. With the system which we have today, faceless people can stop the loans and stop creating credit and bring about a depression, as occurred in 1929. Governments are powerless if they do not control the credit. That is an abominable situation. People with that power can cripple private enterprise. What is being suggested here is the only safeguard for private enterprise to operate under. (4) The attainment and maintenance of free enterprise depends upon monetary authority resting entirely within the structure of the sovereign government and never within independent private institutions. (5) Money can have no value of itself but serves as valid and indispensable representation of whatever development and productive capabilities exist in the economy. That is the muscle power, the brain power and the assets that the people and the country have. (6) Money is sought after and made universally acceptable 858