THOSE MILLIONS.
Under the above heading Mr. .T. Johnstone tries to ridicule the idea that credit can Increated. bv drawing cheques on the Reserve Bank and asks in referen e to the famous | £22,000.000 cheque which the hank gave for the - sterling exchange why it did not appear in the public accounts. If ] !e will look up "Hansard" for 1935. Vol. 242. pages 413-4. he will find the answer to his question. Mr. toates. then Minister of Finance, in reading his Budget speech.-to the House and describing the transaction, said. "As a result of all these operations the floating debt, which amounted to £22.850.951 at 'March 31, 1034. was extinguished." It was not done, as Mr. .Johnstone suggested. by the hank owing for what it got instead of paying for it. anv more than ordinary banking practice is. It was ju.-t a usual business transaction paid for by ciiequ.'. and as the Reserve Bank had no moncv at that time it was created out of nothing. C. E. McDOXALD.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/AS19380601.2.49.5
Bibliographic details
Auckland Star, Volume LXIX, Issue 127, 1 June 1938, Page 6
Word Count
169THOSE MILLIONS. Auckland Star, Volume LXIX, Issue 127, 1 June 1938, Page 6
Using This Item
Stuff Ltd is the copyright owner for the Auckland Star. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Acknowledgements
This newspaper was digitised in partnership with Auckland Libraries.