Curtin and economics

Tom Fitzgerald's initial interest in Curtin began when he discovered that Curtin, like a number of other self-educated Labor parliamentarians from the working class, read a great deal of serious economic literature, including the works of Keynes.

Fitzgerald researched Curtin's published articles, pamphlets and speeches, and his parliamentary and ALP career, tracing the development of Curtin's economic thought through his writings and actions. Of particular interest were Curtin's opposition to the Premiers' Plan implemented by the Scullin Labor government in the Great Depression, significant pamphlets, articles and speeches by Curtin on economic issues and the influence of Keynes and others on Curtin's thinking.

Extract from: Notes re Curtin and economics, 1903-1931.

Curtin in economics:
1) Series of 3 articles – Westralian Worker - February 7, 14 and 21 1930 on the bank credit problem
2) Full report (and praise) in Curtin’s “great speech” on Central Reserve Bank Bill – January 27, 1930 – The speech then issued as a pamphlet
3) c. (near-on) October 15, 1930. Pamphlet: Australia’s Economic Crisis (were both pamphlets issued when Theodore was out of memory? – 2nd one certainly
4) 3 articles c. March? 1931 on Premiers’ Plan ...

John Curtin Prime Ministerial Library. Records of Tom Fitzgerald. Notes re Curtin and economics, 1903-1931. JCPML00653/131/9.

Extract from: Curtin, J. Australia's Economic Crisis and the 55,000,000 Pounds Interest Bill.

HOW THE YEARS OF MONEY POWER EXTORTION HAVE BROUGHT MISERY TO THE NATION By JOHN CURTIN, M.H.R.

How the Australian Banks have Ravaged the Nation - Why Industry is in Chaos - Why Wages are Attacked - Why Budgets Do Not Balance - How Property in Bonds Grows in Value while Property in Farms, in Factories, and in labor Loses Value - Why Our Markets Are Depressed - Why Unemployment Reaches Mass Magnitude!    The money lords have spoken,    And forth goes their decree,    And each word is a challenge    To those who would be free.    Ne'er was a power more ruthless!    Ne'er was a power more vast    Than this enslaving power:    The latest, and the last!         OSCAR WALTERS

AUSTRALIA is in the throes of economic depression. So also are the majority of the countries of the world. The financial difficulties of Governments have become acute; producers and manufacturers are faced with congested markets; and the numbers of the unemployed, already prodigious, are increasing almost daily. Severe though the situation be, all the indications are that early amelioration is not to be expected. The roots of the problem go deep, and the expedients suggested do not appear to penetrate beneath the surface.

Although the present generation may consider the derangement of industry as extraordinary, the fact is that our social system normally produces ebbs in the tide of progress. Examination of economic history discloses that there is no ground for the assumption entertained by many people that a stable condition of business and employment would prevail but for a number of circumstances, such as, say, trades union policy and wage demands, tariff changes that raise or lower the incidence of fiscal taxation, or the mistakes of statesmen and politicians....

John Curtin Prime Ministerial Library. Records of Tom Fitzgerald. Curtin, J. Australia's Economic Crisis and the 55,000,000 Pounds Interest Bill. n.d. JCPML00653/125/10

Extract from: Notes re Curtin's progress in economics, 1928-1930.

[In this extract, Fitzgerald analyses, paragraph by paragraph, Curtin's speech in the House of Representatives on this Bill]

Curtin on Central Reserve Bank Bill (after Curtin’s part authorship of Committee report to Australian Labor Party Federal Conference.

NB This after Curtin’s membership of Unemployment Committee of Australian Labor Party Federal Conference – May 1930

2591 Evils of inflation and deflation
“... since the restoration, in part, of the gold standard in those [European] countries, unemployment, instead of lessening, has become more acute.”

Curtin’s conviction (“It is also true...” to end of par) that World War One upset the old “theory of banking” so that “dogmas of the economists must be accepted with considerable reserve. We have been obliged to resort to make-shifts... to alleviate the consequences of war-time finance..... extraordinary negation of every pre-war banking principle which was placed during the war.

2593 “restriction and expansion of credit... too important a function to be regarded other than as a national one.. All over the world.." ”Quotes McKenna. Quotes again the case of Henry Ford shaking off dependence in banks.

“... the credit power of the community belongs to the people as a whole...” I put that statement forward as a kind of declaration of national independence.”

2594 USA and Germany – much gold, no gold; both marvellously efficient in the [?] sense, yet “both are today experiencing the misery caused by hunger...” ..

John Curtin Prime Ministerial Library. Records of Tom Fitzgerald. Notes re Curtin's progress in economics, 1928-1930. JCPML00653/131/11.

Extract from: Labor and the Commonwealth Bank. The Westralian Worker, 22 October 1937

There is only one illustration in Australia – and probably the only one in the world – of a Government giving away its right to determine the policy of a community-owned concern. That illustration is the Commonwealth Bank.

The donation of super-power was made by the Bruce-Page Government in 1924. As the result of it, an outside group is endowed with the prerogatives of government. It is endowed with dictatorial power that can defy the elected representatives of the people who own the bank and can frame and enforce a policy contrary to that of the elected government.

The super-power of the Commonwealth Bank Board is not based on any business principle . No elected directors of a private company would tolerate a veto being placed on its actions and on the majority decision of shareholders by a non-elected authority – responsible to nobody.

The super-power of the Bank Board is not based on any principle of democracy because democracy is an affirmation – within the Constitution – that the elected Government shall be supreme and responsible for the proper conduct of all public-owned services.

Labor’s Policy is born of the multitude’s suffering: Long has been the struggle towards the people’s release. Only in the hands of the workers lies their own salvation: When opportunity presents, it is their condemnation if they fail to grasp it....

John Curtin Prime Ministerial Library. Records of Tom Fitzgerald. Labor and the Commonwealth Bank. The Westralian Worker, 22 October 1937. JCPML00653/226/42.

Extract from: Notes re Curtin's economic preceptions, vis--vis Theodore's, 1930-1931

1. Pressed urgency of nationalist (Government) control of credit, more than Theodore accepted (see Curtin’s letter to wife August 1930, his previous articles (Marat) in Westralian Worker, his long address to Caucus (March ?); Anstey’s memoirs on similar theme; and Anstey’s prescient article printed in ‘Timber Worker’ c1914. “.Today, Today’s the Day”

2. Advocated devaluation apparently before Theodore, and perhaps even against Theodore’s wishes?? - BUT NOTE Theodore’s firm and clear advocacy of devaluation in his (1st) Ashfield speech, January 16, 1931. (see Curtin's October 1930 pamphlet and November 1930 (leading for Labor) speech, - of Copland re Theodore and some Theodore’s statements in House of Representatives – annotation (also 6 below) in photocopies of CPD (Hansard) also Curtin questioned Theodore once directly on this matter as though wanting assurance that Theodore was in line...

John Curtin Prime Ministerial Library. Records of Tom Fitzgerald. Notes re Curtin's economic preceptions, vis--vis Theodore's, 1930-1931. JCPML00653/131/10