IF INTEREST WENT.

Auckland Star, Volume LXV, Issue 33, 8 February 1934, Page 6

IF INTEREST WENT.

Neither I nor anyone I know can follow 11 lie varying opinions of some of j r our correspondents regarding the question of interest. If 1 earn £3 per week and put £1 in a savings bank I get interest bocaus-a my £1, with others, is lent to other people at interest, and they borrow it no doubt to help their businesses. ■Supposing no interest is paid on my £1, the bank would not be entitled to lend out my money for nothing without my consent —and surely no one i.s fool enough' to give that consent, as it would be a case for the. borrower of "heads I win, tails you lose -, —so it seems to me that every coin and note in circulation would 'find its way to the bank* and remain stored there. We are all short of those most necessary and 'useful articles, so what would happen? Do the.se non-interestites imagine that the Government and the banks are going to mint more coins and print more notes to replace those reposing in banks which depositors may demand at any moment'.' If they didn't business would dry up, as, in a very short time —shorter than" most people realise —we would all be doing work with no money to pay for it. I have always regarded interest ae the oil that makes the wheels of commerce go round. A.L.D.