WORK OF THE BANKS

Evening Post, Volume CXV, Issue 147, 24 June 1933, Page 8

WORK OF THE BANKS

(To the Editor.)

Sir, —I am very much afraid that Mr. A. de B. Brandon's letter will not find much favour with the advocates of -the policy of our present banking system. Banking is and should be a national function; the interests of the community as a whole should come before the interests of a small body of shareholders, and this is precisely what we are told in regard to our New Zealand banks—that the country comes first, but wo know from bitter experience that this is not the case. To explain to Mr. Brandon what "the Nation s Credit" is would take up too much of your valuable space, but •■ let me, assure lum that it is this credit and- nothing else that the banks do actually make advances against, whether 'it is to a Government or to an individual. ' . The point of view taken in the disparagement -of- Lord Tavistock's statement I cannot ■ understand. Money is not a commodity, it is a means of exchange,- and should be used for the latter purpose only; it simply represents to persons holding it a claim tb goods and services from the rest of the community. The banks, as our supposed experts in this matter, have failed to Bupply any means by which the enormous production of tins country can be made to benefit the general consuming public. I should like to ask Mr. Brandon or any banker a question. How can anyone be in debt for work done for himself by himself Why should New Zealand raise a loan in London to pay New Zealand workmen to wol'k with New Zealand materials? Take a new Auckland bridge for example—total, loan £1,500,000; according to our newspaper reports, at least £1,200,000 is to be paid in wages in New Zealand—result inflation because no one wants to buy a bridge. Finally, when we have the bridge we also have this position—New Zealand workmen and engineers have done the job, New Zealand probably supplied a large amount of the materials. New Zealand kept all the workmen while they built the bridge, and lo .and behold! we owe another country one and a half millions.—l am, etc., GILBERT R, CLARK. -