N.Z. INTERNAL LOAN

Press, Volume LXXIV, Issue 22591, 22 December 1938, Page 5

N.Z. INTERNAL LOAN

TO TBI BDITOa OI TH* PHESS. Sir,r-Such an informative and valuable letter as that from Y 4 T. Shand deserves better than its threatened fate of oblivion. His reference to "the financial .superstition that all money generated* for purposes of consuming production must carry the incendiary torch of interest" comes late, but touches upon and illuminates the real flaw in our money system. Money is advanced to finance production. That is the specious claim that is made, and 99.9 per cent, of people believe it. Mr Shand clearly sees the truth — that it does nothing of the sort, butfinances consumption of goods already produced. Such money is used in the maintenance of the producer while he is engaged in further production. Today's dinner was grown yesterday and is eaten to-day, while to-morrow's is being prepared. Nobody eats to-day a dinner' prepared to-morrow. Here is the flaw. On this misconception is founded the justification for interest, itself profoundly immoral, destructive, condemned as frequently as is murder in the Christian Bible (yet be it noted, never fulminated against by the parson), stigmatised through the ages by every thinker, divine, and great man, truly the "incendiary torch" of our so-called civilisation. Add to this the fact that bankers lend money they have not got, and levy this iniquitous toll upon such money, and make profit thereby, and some idea will be formed of the magnitude of the gigantic bluff and swindle that are daily and hourly perpetrated at the expense of the community. The final joke is that opinions from time to time emanate from stock exchange or chamber of commerce members to the general effect that the community should hold the banking system in high esteem for the service it renders industry. As well might the despoiled wayfarer be expected to proffer his obligations to the footpad. More power to Mr Shand's elbow. — Yours etc " HORACE E. HERRING. Wellington, December 20, 1938.