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I entered this discussion to refute the charges against our banking system that it loads the public with debt and interest charges in respect of advances that are practically costless, charges that could be avoided, while the service would remain, under a sound State banking system. On my part I have contended that when the cheque that brings a bank advance, Reserve Bank or any other, into existence is deposited, the bank contracts a debt to the depositor that balances the debt of the borrower to the bank, and that the banks, in serving the public, incur enormous costs that justify their interest charges and make interestfree loans, as normal practice, impracticable. I have further contended that financing all public utilities with Reserve Bank advances would create money offering for goods that would not be balanced by goods offering for money. lam prepared to defend these three contentions in public debate with Mr. Otto, but I can see no reason why I should subscribe £25 to any fund because I take part in such a discussion. J. JOHNSTONE.

My attention has been drawn recently to letters signed by J. H. Lucas. This is the first time in my life that I have heard of a Mr. J. H. Lucas other than myself. I claim by holding a public position for a number of years to be fairly well known, at least, in certain quarters, therefore I wish to dissociate myself from the letters. May I suggest that the author either sign his name in full or add his occupation or address. J. H. LUCAS, Coromandel. County Clerk.

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Bibliographic details

MONEY DANGERS, Auckland Star, Volume LXXVI, Issue 187, 9 August 1945

Word Count

MONEY DANGERS Auckland Star, Volume LXXVI, Issue 187, 9 August 1945

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