COSTLESS CREDIT

Press, Volume LXXII, Issue 21867, 21 August 1936, Page 8

COSTLESS CREDIT

TO THE EDITOR OF THE PRESS. Sir—Of course there is such a thing as costless credit. What about the recent budget? We are all decided to save i the unemployed from starvation. Formerly we went without ourselves, i.e.. we were taxed to feed them; Now we have decided to make work of a permanent nature for them instead. (The old unemployment tax will disappear just as soon as this new policy takes effect.)

The necessary credit is issued by the Reserve Bank. Oh yes. we shall pay interest on it. As the bank makes the necessary millions from nothing but the printing, the interest will be profit which next year will be available to reduce taxation, or. if you like it better, to be appropriated to pay the interest on a new issue of such credit. As a matter of fact. I can imagine Mr Nash saying: "I suppose we shall have to go through the motions of paying interest until the people wake up to which side their bread is buttered —in the meantime increase the public works vote by 5 per cent, for this purpose.” • By this time next year we shall have seen a few millions of costless credit spent, and you can take my word tor it that no one will be hurt, because I know by logical conclusions that whether you like it or not. it will come into use. It is inevitable. The above first step is a momentous one.—Yours, etc., WAIT AND SEE. August 20, 1936.