THE PUBLIC CREDIT.

Auckland Star, Volume LXVIII, Issue 263, 5 November 1937, Page 6

THE PUBLIC CREDIT.

Tf "Plain Bill" has read the letters be thinks lie is answering lie must know that I have never as much as hinted that a loan from a State hank is in any way different from a loan from any other hank, but I have said, and also shown, that when the Government borrows from the Reserve Bank, and so obtains houses and other commodities, it incurs debt in respect to tho*e commodities precisely as it would if it borrowed the same amount from any other party. I have shown that the debt is incurred, through trading hanks. to the depositors who supply the commodities, and 1 have stated, and no one has shown, or can show otherwise, that only hy swindling can that debt l>e evaded. "Plain Bill" is tea'*him; sorry rubbish when he tells us that b-ink money is "a charge on the comimmitv" in place of being a charge on the banks. Cheque,, are either cashed or deposited. If cached, the hank pays the amount. If deposited, the bank owes it. In no case do cheques cost the public a farthing. It is the purest nonsense t > *ay that the repayment of advance* "imro. ibl -" because of the deflation thai won' l I>:> nvrdn.-.-d. Advances of the value of hundreds of milii-m are, each year, granted and cam-oil,>d bv the cheques that are drawn on. and paid into, overdrawn accounts, and in place of detl-ti.m, a-s everyone knows, prices are ste-i;li!\- ri-ing. | J. JOHN'S' I ' OX E. | [This correspondence is closed.—Ed.] I