The Public Debt
Sir, —Serious illness prevented my making an immediate reply to the tortuous and misleading statements by Professor Danks in his attempt to avoid the issue put to him that £1940 millions cannot be paid off with only the £345 millions of money in existence. I denty that money is not created and destroyed when it is consummated. It ceases to exist when it is spent on goods. It represents debt owing by industry to the holder for services rendered and when it is spent that debt is cancelled and the debt on the goods is cancelled. Take, as example, deposits in savings banks. They are debt owing by banks to depositors. Banks lend the money to borrowers and another lot of debt is set up. Borrowers build houses and money goes out to tradesmen who pay off the debt on goods supplied. So now there are two debts and no money to liquidate them.—Yours, etc., W. B. BRAY. Leeston, August 24. 1960.
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Press, Volume XCIX, Issue 29299, 2 September 1960, Page 3
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165The Public Debt Press, Volume XCIX, Issue 29299, 2 September 1960, Page 3
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