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"OUT-OF-DATE" MONETARY SYSTEM

(To the Editor.)

Sir,—Your correspondent, Mr. M. C. Barnett, states that he thinks that when Mr. Barrell, M.P., said that the monetary system was out of date, etc., Mr. Barrell was referring to "credit, a condition in economics which, when expertly handled, enables the issue of money to be expanded or contracted according to the needs of sound business." Ido not think that there can be any mistake as to what Mr. Barrell meant and except in high financial circles it is now generally recognised that our present monetary system :s definitely in need of drastic overhaul. However, Sir, just what does Mr. Barnett mean by "credit expertly handled"? (1) Is it not a fact that no bank can commence operations in New 7oalan^l until a sn^nial Aft. is nasserf

granting it authority to do so? (2) If it is necessary for a Government to issue the bank charter is the Government not superior to the bank? (3) If the bank can say to the Government "I am the superior lending authority in the land," is not the bank actually the superior of the Government? (4) Can any Government govern if it has a superior which or whom it must obey in matters of finance? —I am, etc., BORROWER.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/EP19390804.2.53.5

Bibliographic details

Evening Post, Volume CXXVIII, Issue 30, 4 August 1939, Page 8

Word Count
212

"OUT-OF-DATE" MONETARY SYSTEM Evening Post, Volume CXXVIII, Issue 30, 4 August 1939, Page 8

"OUT-OF-DATE" MONETARY SYSTEM Evening Post, Volume CXXVIII, Issue 30, 4 August 1939, Page 8