Bank Credit
Sir,—Mr Smillie, the mouthpiece of the Bankers’ Association, as reported in a Press Association message on Thursday, was somewhat misleading by the looseness of his use of words. All authorities agree
that trading and central banks are the sole source of money by their action in creating credit, which becomes the only money in use. The extending of credit by all the sources he names is quite different. It is lending bankcreated money or selling goods on deferred terms whether at interest or without. Creation of money out of nothing is so profitable that the banks cannot disclose how profitable, so they hide it in undisclosed reserves, the interest on which is the hidden burden carried by industry. Whenever the State resumes its rightful role of the sole source of issue of all money then that burden of debt interest, now a million a week, can be saved to the benefit of all concerned.— Yours, etc., W. B. BRAY. Leeston, March 25, 1967.
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Press, Volume CVI, Issue 31330, 29 March 1967, Page 12
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165Bank Credit Press, Volume CVI, Issue 31330, 29 March 1967, Page 12
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