Credit Restraint

Press, Volume CX, Issue 32321, 12 June 1970, Page 10

Credit Restraint

Sir, —“A. B. Cedarian' should take a course in ac countancy to learn how funds can be hidden in balance sheets. Traders cannot adopt the same methods because in the case of fire the insurance companies pay out only on balance-sheet valuations. If he will write to me I will send him a copy of a letter dated June 9, 1964, in which the Auditor-General says that as “hidden reserves are permitted in banking accounts lit may be presumed t hat substantial additional reserves exist.” So even the AuditorGeneral has that extra-sensory perception. 1 suggest that your correspondent develop that extra-sensory sense and: learn to look behind the scenes to discover what the manipulators of the money system would hide from us It is not possible to fool al) the people all the time.— Yours, etc., W. B. BRAY. Leeston, June 11, 1970. Sir, —Credit restraint is used by the National Govern-

ment despite the fact that it called these restrictions panic measures when the second Labour Government used them to correct financial difficulties inherited from the National Government which squandered its overseas funds on luxury goods. Travel agents show little interest in the need for credit restraint as they have asked the Government to raise travel allowances for people travelling overseas. Mr Edmonds and Mr Bray have both been deceived by the myth of so-called debtfree credit created by the Reserve Bank. “A. B. Cedarian’' wrongly blames the (Welfare State for the concep tion that money grows on trees when the National Goveminent gives incentives to vested interests.—Yours, etc., DISILLUSIONED NATIONALIST. June 11, 1970.