UNWISE BORROWING.

Press, Volume LXVIII, Issue 20621, 10 August 1932, Page 8

UNWISE BORROWING.

TO THE KDITOB OTTHB PRESS. Sir, —I think it will bo admitted that the world has had a good lesson on theresult of unwise borrowing, both public and private. Some one may say that it will not occur again; but I am afraid it would occur again to-morrow if the same conditions arose, and I think for our own good there should certainly be a positive deterrent. I suggest first that the rate of interest should be fixed by statute at three per cent, at the most and that all loans should bear a sinking fund that would redeem them on the date of their maturity. Someone may say that that is too drastic and prohibitive, but I think, when looked into it will prove sound finance. What the world needs to-day is that money should be made available to the public as far as possible, and that the public should make a wise use of it; and it seems that we must have some national control. To meet this I suggest a General State Bank after the nature of the State Advances Department, with branches everywhere. Indeed, if this was in operation, private lending institutions would be forced by law to fall into line, whiih would be all for the good of the public and help those who need assistance. I assume that a healthy, intelligent, moral population, with a strong purchasing power is a nation's best possible asset.—Yours, etc., ■' • > A. DENISON. August 9th, 1932.