OUR FINANCIAL SYSTEM

Press, Volume LXX, Issue 21147, 24 April 1934, Page 7

OUR FINANCIAL SYSTEM

TO THE EDJTOU OV TUB I'IiZSS. Sir,—lt appeai-s to me that under the present financial system we have nothing to look forward to except an ever-increasing debt, only relieved occasionally by x - eduction of interest or by bankruptcies and a writing down of assets so as to give Ihis debt a further lease of: life. The very nature of the system precludes any possibility of being able to pay off this debt except in cases where ihc borrower is ■ also a lender, such as the banks, the Government, and a few others, but this would still leave a huge amount to swap round and increase. This is the result of thinking that money can reproduce itself; it cannot, but it is very prolific in producing debt. I notice in the Associated Chambers of Commerce's statement to the Monetary Committee that they say they do not want a change. Then in their remedies they propose:—(a) Writing down assets, which would take away the life savings of many. Certainly this cleaning up will allow a little fresh money to come into circulation and start the same thing all over again, (b) We must practice economy. Now here we have a body of men with goods to sell telling us not to buy those goods. Is this the way that money talks. When we learn that we cannot live by lending money to one another on commission we shall find the way open for the proper distribution of the necessaries of life and not till then. I do not know much about history, but have heard of a person called Nero.—Yours, etc..