MONEY AND DEBTS.

Auckland Star, Volume LXIII, Issue 161, 9 July 1932, Page 8

MONEY AND DEBTS.

I am pleased to learn that "InterestedV ideas re currency reform aro practically in agreement with my own. I quite agree that if interest could be abolished it would be a good thing as it would force people who have money in the bank to put their money into profit-sharing industries, thus employing more labour and increasing production. But the first question to solve before the finances of the world can be put on a sound footing ie: How are wo to get rid of the present sta#gering and ever-increasing accumulation of interest-bearing debts, public and private, with which the world is at present saddled.? I contend that this can only be done by compelling those who have money invested at interest to convert their accunrulations into life annuities, so that as the creditors died the debt.s would be wiped out. In a recent leading article in the "Star" re the conversion of the £2,000,000,000 war loan in London the writer eaid this reduction in the rate of interest would come hard on the small bondholders, of which there were many. But if the British Government had. told these investors that those who wished could convert their debentures into life annuities, and such annuities would be computed on a feur per pent basis, then all those who accepted thie offer would receive a far better income during their lives than even six per cent per annum, yet so far ns the nation was concerned the debts would be wiped out as the annuitants diod. By this method I contend that all public debts should be wiped out, and this is the first step in the direction of a sound financial system. KING SOLOMON.