NOW MR. SNEDDEN HAS A SIX-POINT PLAN

"The Opposition Leader, Mr. Snedden, yesterday gave a six-point plan to combat inflation." -The Sun, (Melbourne) October 22nd.

It would appear that Mr. Snedden is "keeping up with the Joneses"; or to be more accurate, "keeping up with the Cairnses". If Dr. Jim Cairns has a six-point plan, then Mr. Snedden must have one also. Is this economic one-upmanship? A sort of game. At least Dr. Cairns's six-point plan will have a definite result: it will move the whole of Australian life to the Left. It is a Marxist plan. Mr. Snedden's six-point "plan" won't do anything. Why?

Point 1). "Supplementary Budget...cut Government spending...$l,000 million cut in income tax... cuts in indirect taxes." This is all right as far as it goes. A cut in Government spending will mean that much less "money" flowing through the economy, and a marginal lowering of the inflation rate as a direct result this is dependent upon other factors. The tax cuts will place more purchasing power in the hands of Australians, and bring about some reduction of the price level.

Point 2). "Introduce investment incentives...encourage private investment in new plant and equipment... This will ultimately have the reverse effect of combating inflation. It will mean that the trading banks will be pouring out the bank credit again, increasing the volume of money into the economy, and guaranteeing a rise in inflation "spin-off". It will be "back to square one."

Point 3). "Convene a full national conference... trade unions... employers... States... Federal Government... This is just waffle. It means nothing.

Point 4). "Make a clear statement of future monetary policy . . .more money for working capital and investment. . . gradually reducing overtime . . . Again, pumping more money into the economy, under the existing financial system will, must, add to inflation.

Point 5). "Abolish the 5% deposit requirement on overseas loans. . . ban short-term loans." We don't anticipate that this would suddenly attract overseas capital to Australia. The liquidity drought is now widespread throughout the West; why would capital now commence to pour into Australia? Answer - it won't. Unless Mr. Snedden can do better than Henry Kissinger in "persuading" the Arab Oil Moguls to "recycle" (it's very smart to use that word now; an "in" word:) their billions of oil dollars. The banning of short-term loans presumably will hopefully result in the negotiation of long-term loans, meaning planning for industrial expansion etc. . etc. . and not speculative activity. We fear that it is no more than a hope. A flexible exchange rate for the Australian dollar was also included under point 5. It's very easy to advance this point, but the exigencies of Australia's trading position against "the rest of the world" will be the final arbiter of the "flexibility" of the Australian dollar. The Governor of the Reserve Bank will have the say; not Mr. Snedden.

Point 6). "Review the Prices Tribunal...Arbitration Commission...Parliamentary Prices Committee… Trade Practices Commission. . . So what? All these bodies function or more accurately, attempt to function, under a system in which ever-escalating inflation is as certain as the sunrise. "Reviewing" them will have the same result that Mr. Snedden would win if he flapped his arms to fly to the moon. It's all so pathetic. No solution to our economic ills is possible that does not transgress the tenets of orthodox finance.

THE MEDIA SUPPRESS THE PETERSEN PLAN

"More than 2,000 people at a farmer meeting at Beaufort on Saturday were told that "less responsible" persons might take over the farm protest movement." - The Age (Melbourne) October 2lst.

What none of the Melbourne dailies reported was that at this meeting, a resolution was passed supporting the Petersen Plan. This meeting was reported in the Brisbane Courier-Mail but again not a mention of the Petersen Plan. We are informed that discussion of the Petersen Plan did take place during the videotaping of the A.B.C.'s "Monday Conference", screened in Victoria on the evening of October 2lst. This programme was made at Toowoomba. Many League actionists were in attendance. All reference to the Petersen Plan was deleted from the video casting of this programme.

The media are actively suppressing knowledge from reaching the general public. Accordingly, we must all re-double our efforts to give mass distribution to the League's various anti-Inflation brochures; this is the way to by-pass the mass media. Petersen Plan brochures are available at $1.00 per 100: $3.50 per 500: and $5.00 per 1,000, post free from all League offices. The two other brochures... "Down the Inflation Road..." and "Militant Action Is not the Answer the Petersen Plan..." are the same price.

ANNUAL BASIC FUND APPEAL LAUNCHED

In formally launching the League's Annual Basic Fund Appeal for 1974-75 the National Director Mr. Eric Butler, stresses that the general situation is now so critical that the League must lift its Basic Fund from the usual $25,000 to $40,000. He says:.. "The best form of defence is offence, and while we did a magnificent job last year in expanding and consolidating on the Basic Fund of $25,000, the coming situation is such that we must make the greatest effort ever. One of the most critical battles of this century is starting. It is now too late to avoid tremendous disaster. But, out of that disaster we can hold sufficient to ensure that we are not overwhelmed. Our most urgent need is equipment to ensure that we multiply the work of our small, full-time staff. Extra money is required for this."

"With our extensive grass-roots organization, and the use of pamphlets, we have demonstrated that we can by-pass the mass media. In only three months' of campaigning we completely smashed the conspiracy of silence concerning the Queensland Premier's lead on the all -important inflation issue. From one end of Australia to the other we have elevated the "Petersen Plan" to a major national question. But there is much more to be done. More special League brochures must flow from the printing presses out into the community. Addressographs are required to ensure that we service the tens of thousands of new contacts reached through the Heritage and other campaigns. Plates must be bought and cut. Film strips, with commentaries are urgently required to multiply our work."

"Inflation has cut deeply into our budget. Salaries have been kept to a ridiculously low figure; but League staff must also eat and pay their way. At a time when thousands of business organizations throughout Australia are being forced to retrench, the League must think of the opposite; expansion!"

"I am inspired by the fact that a small handful of supporters have risen to the occasion and have amongst them launched the League's 1974-75 Basic Fund with just over $l0,000. That leaves the great majority with the challenge of finding the balance of $30,000." "I shall be giving a progress report in On Target in the near future."
All Queensland and Northern N.S.W. contributions to P.O. Box 64. Maleny Qld.. 4552. The remainder to G.P.O. Box 1052J, Melbourne, Vic. 3001

FROM BRITISH ON TARGET

(October 12th): British Lass A Pawn In Soviet Spy Exchange. by Patrick Walsh. Mr. Patrick Walsh is Research Director with the Canadian League of Rights.

Susan Ballantyne, the young lass from Glasgow who "defected" to East Germany after falling in love with an East German soccer player, is now an unwilling pawn in the sophisticated game of Soviet espionage. This was revealed recently when the Communist East German Government announced tersely that one, Herr Vogel had been "appointed" as defence lawyer for this same girl who was suddenly arrested on a trumped up charge in East Berlin, where she had been living with the soccer player. The ominous note in the sudden appearance of old-time Communist lawyer Vogel, (his first name is often changed, but it is believed to be Wolfgang) is the fact that this is the same top Red lawyer who masterminded the exchange of the U-2 American pilot, Gary Powers, and top Soviet spy, Rudolf Abel.

The Soviet weekly. "Nedeiya" (July 1969) carried this very interesting item concerning what this top Soviet spy is now doing:.. "In spite of his 65 years and the hardships he has experienced, Col. Abel is going on with his business of ensuring State security by transmitting his rich experiences to young secret police cadets at the K.G.B. school in Moscow."

In very few cases (the Richard Sorge one was the classic case of "we never heard of him") has the Soviet Union abandoned their espionage agents who were caught and jailed in the Free World? For example, from the moment Peter and Helen Kroger were arrested by the British in 1961 as part of the Gordon Lonsdale spy ring, the Soviet Union waged an unprecedented campaign to get them back. Britain finally agreed to return them for the release of British lecturer, Gerald Brooke, who wasn't a British agent, but who had been caught as a sort of "freelance" courier for the N.T.S. émigré organization (which Philby later revealed was practically run by the K.G.B. to trap others.)

In 1964 Lonsdale (really K.G. B. Col. Konon Molody) was "swapped" for British businessman, Greville Wynne, who had been a courier for double agent. Col. Oleg Penkovsky of the G.R.U. (Soviet Military Intelligence). Dozens of other Soviet spies (most of them operating in West Germany) have been "swapped", including Heniz Felfe, the Kim Philby of West German Intelligence (he was exchanged for three West German students) who spied for eleven years from the nerve centre of West German Intelligence.
An ex-S.S. intelligence officer, Felfe was head of the Soviet counter-intelligence desk of the Gehlan Bureau, and he handed the names of hundreds of agents over to the Soviets.

Another Soviet super-spy was Alfred Frenzel, a member of the West German Parliament's Defence Committee. Frenzel betrayed all West Germany's defence plans, and his information led to the Warsaw Pact nations amending and adjusting their plans. However, all these cases fade into insignificance with the story now circulating in West Germany (and published in at least one British weekly recently) that the East German Government has made overtures to the West German Social Democratic Government to bring pressure to bear on Socialist colleague, Harold Wilson so that he will agree to a "swap" of Susan Ballantyne in exchange for top-Soviet spy, Gunter Guillame, the former top aid of Willy Brandt. If Moscow succeeds in getting back Guillame, one of the most famous secret agents the Communists ever had, in exchange for little Susan Ballantyne, it will indeed be a gold for dross exchange for the Soviets, but the K.G.B. will have one of its prize chickens back in the coop.

BRIEF COMMENTS

The Forms of Money

(contd.)
Notes and coins are the small change of the money system (in Australia approx 7 %). When they are issued, they are distributed to banks, from the Reserve Bank, in exchange for a cheque, in just the same way as a customer can get five $1.00 notes from his bank in exchange for his cheque made out for $5.00. When notes and coins are issued under the present system it does not mean that an addition has been made to the total money supply. It merely means that there has been an increase in the amount of small change in circulation. An equivalent amount of money, in the form of a cheque paid to the Note Issue Department of the Reserve Bank, has been taken out of circulation. Therefore, the amount of money in circulation is increased NOT by the issue of notes and coins, but by the issue of bank credit. Whether it eventually takes the form of notes, coins, or cheques, depends upon the convenience of the user.

Approximately 93% of all money in Australia exists as bank credit, and when a financial transaction is executed where the use of cash is not involved, it is done by cheque, bank draft etc., etc. Over 80% of all business is done by cheque.