Monetary. System

Dominion, Volume 27, Issue 38, 8 November 1933, Page 11

Monetary. System

Sir. — I was rather interested in the remarks of Mr. J. McCormack in your issue of November 3. Nothing tangible is brought forward, simply the good old cry of “Whqt’s good enough for Dad . . . etc.” Undoubtedly currency reform is possible, and granting this, let the initial steps be easy, so that the change may be brought about without disruption. Can anyone, professor of economics, banker, or one of the unknown geniuses such as myself, fault the following step? The borough of Petone wants some money to tone it up a little. A vote as taken, and the ratepayers are agreeable. Ten thousand pounds is the sum desired, so the borough fathers approach’ a newly-set-up board for the granting of internal credit, lay their case before them,’ and ais the council affairs are in good shape. aud the scheme necessary . for the well-being of the community, also has the backing of the ratepayers, the- loan is duly granted. What’s that? Inflation? . Tut. tut. The. method of. repayment provides tthat 4 per cent, per annum is required for redemption, so that in 25 years the loan is redeemed and the terrifie burden off interest avoided. When ■ this step has been sufEcientliy established, similar steps in other"' directions are obvious enough, and the bogey of inflation has its qnietns in the redemption method.—l am. etc.,. F. TUCK. Lower Hutt, November 6.