TAXATION AND UNEMPLOYMENT.

Press, Volume LXVI, Issue 20038, 20 September 1930, Page 17

TAXATION AND UNEMPLOYMENT.

TO "'BE BOITOB 0» THB PBXSS Sir,—The Canterbury Trades «nd Labour Coim-il is mistaken in assuming that we have any connexion with Mr Mander or his correspondence. We did not even see his letter, to whicjh the Council replied, so we can-

not say whether we agree with his statements or not. The Council's reply to him, however, seemed to contain a false idea as to "hoarding" of capital, or savings, and we wished to know what it meant by hoarding. The Council now explains that it refers 'to the increase, of bank deposits, a meaning we hardly thought possible We agiCe with the Council when it says that these savings have first to be created. That is obvious; and the

Council adds that "if this capital ware invested in industry or loans to farmers. it would considerably improve both tho workers' and nation's position." That is true, and the only difference that exists on this poii<t between the Conncil find ourselves is that whereas it calls fixed deposits "hoarding," we on the other hand point out that the money on fixed deposits is advanced by "the banks, etc., who hold it, to industrialists and

other producers to assist in further development. To deposit savings for fixed terms at interest does not in an.7 way withdraw it from productive use. The 30.5 millions the Council quotes being 'held on fixed deposit" is not held or hoarded but is put out productively.— Yours, etc., NEW ZEALAND WELFARE LEAGUE. Wellington, September 18th, 1930.