CENTRAL BANKING AND DEMOCRACY

Press, Volume LXXVII, Issue 23482, 10 November 1941, Page 9

CENTRAL BANKING AND DEMOCRACY

Sir.—Some nabob whose name escapes me has said: “Finance is government; government is finance.” In “The Press” this morning you quote Mr Geoffrey Crowther’s book “An Outline of Money.” We will all agree that Mr Crowlher is an authoritative expert on finance, in fact almost in the same category as Mr Norman and Sir Otto Niemeyer. You quote, with apparent approval, Mr Crowther’s dictum that State control which attempted to ensure that central bank policy should always be popular with a democratic electorate would be a disaster. Mr Crowther has had his wish, and in England at least, there has been no such interference and, presumably, no disaster. Even Mr Crowther, however, would hardly deny that central bank policy has been as important to the Empire as the laws of Parliament itself, May I attempt a review of that policy in as short a space as possible. 1930. Company formed called the Bankers Industrial Development Company, and a subsidiary, National Shipbuilders Security. Chairman, the Governor of the Bank of England. Operations resulted in the closing down of one third of England's shipbuilding capacity, including Palmer’s shipyards, 1932. British tramp steamers built in Continental yards with machinery brought from Palmers at scrap prices. Same period. A holding company is formed to safeguard British steel , interests. Yes, safeguard is the word. British steel production falls heavily. Chairman of the holding company, the Governor of the Bank of England. References regarding Joove, “The Town That Was Murdered,” by Ellen Wilkinson, M.P, 1938. The Governor of the Bank of England and Sir Otto Neimoyer hand over to Germany the gold entrusted to their care by Czechoslovakia; Mr Chamberlain greatly embarrassed by action. 1939. The Bank of England lends Germany £50,000,000 of British credit. Even dictators recognise personal responsibility. but Mr Crowther not only supports the continuance of power without responsibility, but, from his lofty pinnacle of “authoritative expert.” has the gall to tell us that anything else would bo a disaster. Oh, these experts!— Yours, etc., D. C. DAVIE. November 5, 1941.