The Financial System

Dominion, Volume 26, Issue 103, 25 January 1933, Page 11

The Financial System

Sir —Tj r . K. C. Anderson asks why banks should be safe aud sound., in contrast with the unfortunate position qt a great proportion of our citizens. Jhe answer is simple: Banks are compelled to work on safe, sound lines, so must ot necessity stick to a secure policy, otherwise the investing public would not trust them with their money. On the other hand a great many peoplespeculated. They refused to believe that a grave financial crisis was pendingThey guessed and gambled not. only with their own capital, but also with what they could borrow. Had they won out, they would have spent money as freely before, and look down ou a cautious old fellow like me. Unfortunately they slipped, and in most cases their equity has vanished. Now some of them are such poor sports as to want the carelul people to foot the bill. .The remedy is simple. Instead of squealing, they should adjust their living expenses to their lessened income, or do as I have done: Live on my capital in the meantime, lor thar is what 1 saved it for anyway. Regarding recovery,. Mr. Toogood s letter of Saturday’s "Dominion” gives quotations that meet the case perfectly. Re managed currencies: Mr. Anderson's suggestion means more highly paid public servants, and. of course, managed on the good old “Railway Department; lines; that is, large portions of. the business run at a dead loss for political, purposes. and one railway station costing a million (the latter, by the way, much less convenient to the travelling public thau the old one was). The currency would indeed take some managing, lor already the public credit is mortgaged, to the utmost. By the time we paid it back not one New Zealander would have a shirt ou Khandallah, January 23.