INTEREST AND RENT.

Auckland Star, Volume LXV, Issue 32, 7 February 1934, Page 6

INTEREST AND RENT.

"Money Power's" argument about the free movement of capital does not justify the interest system. The fundamental evil in that system is that it gives the lender wealth without work, enables him to draw an income he does not earn. 'No- sophistry or raising of side issues can get over that. Of course, we have become so accustomed to interest that we have come to regard it almost in the nature of things. Our ancestors regarded the slave trade in much the same way. And they, too, argued that it could not be done without, just as "Money Power" attempts to prove that interest cannot be done without. But, because capital is moved that way now does not prove that is the only way it can be moved. All the world thought sails were the only way to move ships until steam engines were invented. Are we to continue in the muddle we are in to-day because we have not the courage to try anything new? "Money Power" and others say there is no difference between payment of rent arid the payment of interest. Have they really thought about it for (five minutes ? A house" or any other goods deteriorates in value while used by the borrower. Money does not. It never wears out and requires no upkeep. The interest system enables one to hire it out and not only receive it back as good as. ever, but often to receive two or three times' as much as one lent! Britain borrowed 2000 million pounds from 'America. She has to pay back 5000 millions. Is that just? Or even good business? Wo know it is not, and if -we were a little more clear-headed we should know that what is wrong and unsound between individual nations is equally wrong and unsound between individual persons. Interest payment has persisted because men are precdy and lazy, not because it is just or sensible. PER ARDUA AD ASTRA.