TRADING BANK LOANS
Sir, —Is it not becoming an urgent necessity to implement a political intelligence quotient system, politicians not making the grade in such a test being disallowed as members of Parliament? The housing loan of £12,000.000 from the trading banks and the Prime Minister’s stark ignorance in the discussion thereof is a fair sample of what would put such a member of Parliament out on an I.Q.
test. Mr Holland voiced his impression the other day that trading banks lent their deposits! Why does not someone explain to him that all bank loans are newly-created money? In “The Press” report on June 11, page 9 Mr Holland again puts his foot in it by presuming that only the Reserve Bank creates money for loans—another inexcusable blunder left uncorrected by his friends. Why not disillusion him? Such ignorance is costing taxpayers millions.—Yours,, etc., I.Q. June 15, 1954.
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Press, Volume XC, Issue 27377, 16 June 1954, Page 7
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148TRADING BANK LOANS Press, Volume XC, Issue 27377, 16 June 1954, Page 7
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