Banks and Credit

Dominion, Volume 28, Issue 217, 11 June 1935, Page 11

Banks and Credit

Sir,—The space you have so generously afforded your correspondents on the subject of banks and credit has provided most interesting reading. Evidence is not wanting that our financial system is faulty,-though perhaps not purposely so. Banks are getting the blame to-day because they have failed to advance with science and with the machine, but surely bankers must have some hazy idea that no sane person would countenance poverty in the midst of superabundance. A sound financial system would ensure the issue of purchasing tokens (money or credit) to the people in such a way that first it would allow ' both the national debt and the cumbersome .system of taxation gradually to be eliminated; secondly. that those unable to work or not required in industry would ' not ba penalised, but released from labour by science and the machine; and, thirdly, that the national debt-free credit would be readily available to producers and consumers in such a manner that by. stabilising prices it would avoid inflation, and keep file wheels of. industry freely and continuously in motion. . Everywhere there is the demand for economic sanity and security, and no one but ifp unintelligent will deny that these reforms are much overdue. —I am, etc.. DEMOS.

Wellington, June 6. [This correspondence is closed.]