Extortioners And Shylocks

Dominion, Volume 36, Issue 304, 18 September 1943, Page 6

Extortioners And Shylocks

‘Sir, —Supporters - of our bureaucratic Government frequently have a jibe at banks and lending institutions, both at home and overseas. They have been referred to as Shylocks and extortioners. Our rulers are obsessed with the idea of compelling those who have been successful in saving some capital to provide cheap money, costless credit, etc., for their expansion of class legislation. Even pensioners’ savings do not escape. A form of extortion has been applied to those drawing social security which classifies those responsible much below the level of the “extortioners” they denounce. For its own purposes the Government borrows at 2} per cent, aud 3 per cent, (subject to taxes). AVhen dealing with the small savings of a pensioner on social security there is a veryjlifferent story—any sum in excess of £5OO of savings is capitalized at 10 per cent, and the result is deducted from the pension. Here is an example: Pension payable, £7B; savings in G.P.O. account, £650; savings or capital allowed, £500; excess capitalized at 10 per cent., £150; 10 pccent.. £l5; deduct £l5. pension reduce'! to £63.—1 am, etc., S.H.G. Wellington, September 17.