AN ARITHMETICAL IMPOSSIBILITY?
TO THE EDITOR OP THE PEEBB. Sir,—ls not the banks" system of financing state and private enterprise built on an arithmetical impossibility? For example, let us suppose that the Reserve Bank set out to finance the country and that a loan of 10.000,000 Reserve Bank, pound notes was the sum required, and the rate of interest was 5 per cent. At the end of one year the nation would be required to pay back the 10,000,000 Reserve Bank notes plus 500,000 pound notes for interest. Now how are these extra 500,000 pound notes for interest to be paid when the Reserve Bank has only issued 10,000,000 pound notes? We know that the banks pay with notes for the gold that is dug up, but gold is not found in sufficient quantities to make up the sum required, for interest. Can any of the banking fraternity tell us if there are other ways in which currency gets into circulation without an agreement to pay back with interest and if in sufficient quantities to meet the national interest bill?— Yours, etc., KAYE HOE. July 22, 1935.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19350725.2.144.16
Bibliographic details
Press, Volume LXXI, Issue 21534, 25 July 1935, Page 20
Word Count
187AN ARITHMETICAL IMPOSSIBILITY? Press, Volume LXXI, Issue 21534, 25 July 1935, Page 20
Using This Item
Stuff Ltd is the copyright owner for the Press. 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 Christchurch City Libraries.
Log in