Territory Stories

Debates Day 2 - Wednesday 1 May 1991



Debates Day 2 - Wednesday 1 May 1991

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Parliamentary Record 3


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




Made available by the Legislative Assembly of the Northern Territory





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Legislative Assembly of the Northern Territory

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Attribution International 4.0 (CC BY 4.0)

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Legislative Assembly of the Northern Territory



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DEBATES - Wednesday 1 May 1991 in exchange for goods and services through legal tender laws requiring its use for payment of debts and taxes. That is just like the tally sticks. The government passed the law that taxes must be paid in tally sticks and people had to go after them. That allowed the government to use them in the community to provide public services. The people used them in commerce because they needed them to pay their taxes under the law. Fortunately, this government need not resort to such unwieldy devices. (7) Money serves its primary purpose as a universally acceptable medium of exchange in the process of stimulating economic development and maintaining production, distribution and exchange. (8) Money need not be made of any precious material. Legal tender is the thing that matters. (9) The only forms of money needed to fulfil its primary purposes are bank cheque book, credit currency and coins. Cash is made available by the treasury to meet the demands of the private sector. (10) The quantity of money needed for a healthy economy is simply enough money to supply the demand for whatever public service and private enterprise capabilities exist in the economy. (11) All the money needed for a healthy economy must be made available continuously by the monetary authority. (12) The quality of money lies in its stability in relation to the value of goods and services. (13) A shortage of money depresses economic activity, causing chronic unemployment and bankruptcies. This depression or recession that we had to have is hurting. It is putting productive people out of work. What a foolish monetary system when you have to put people out of work and have them sitting around idle! It does not make any sense. It need not be. It is a result of a flawed money system. A member: Why hadn't we thought of that before? Mr COLLINS: Many people did think of it, but along came some smart people and established the present system, which pours money into their pockets. (14) A sovereign government exercising its monetary authority creates money and spends it into circulation simply by writing good cheques against no funds to pay for national expenditures authorised by the parliament. (15) The sovereign government exercises its monetary authority, creates money and lends it into circulation by extending monetary credit to the private sector at an affordable interest rate. (16) Where money is repaid to the treasurer of a sovereign government exercising its monetary authority, the money is thereby removed from circulation. By having the interest paid back to the government, it can keep the money supply balanced against the capabilities, desires and efforts of the country. (17) The key to monetary stability is the quality or value of money and lies simply in maintaining a balance between flows of treasury expenditures being issued into circulation debt free and the flow of interest and tax collection from the private sector back to the treasury and out of circulation. In fact, the amount of taxes under such a system are very low indeed and would explain why the Commonwealth taxation in World War I was 6d in the pound. That is an unbelievable rate. (18) The only purpose of federal taxation is to enable the treasury to maintain a balance between the flows of treasury expenditures and monetary revenues without exceeding an affordable maximum interest rate. It is a scientifically balanced system. I am sure anybody with mathematical ability, such as the member for MacDonnell, would find the system quite interesting in mathematical terms. 859

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