TANGIBLE APPRECIATION

Evening Post, Volume CXL, Issue 62, 11 September 1945, Page 6

TANGIBLE APPRECIATION

(To the Editor.)

Sir—Mr. T. C. Webb . (National, Kaipara) is to be congratulated upon his suggestion in the House of Representatives during the debate of the Land and Income Tax (Annual) Bill that returned service men and women should be exempt from income tax for one or two years. Indeed, it would be a fine, tangible token of appreciation by the Government to those who have sacrificed so much for them, and now upon demobilisation would more than welcome any such assistance. During the war the Government needed us, now there is peace we need them! The opinion of Mr. A. S. Richards (Government, Roskill) that Mr. Webb's suggestion was for purposes .of vote catching, is an unworthy insinuation. May Mr. Webb's fine, suggestion bear fruit.—l am etc., THE VOICE OF THE RETURNED. CREDIT CREATION Sir, —Your correspondent W. H. Robertshaw. states that it is incorrect to say that a bank creates credit at no cost to itself. Where, then, does the money come from when a banker gives an advance of £10,000 to a client who offers ample security? No deposits or assets are affected in any way. Surely it is absolutely new credit created by writing figures in a book. The cost is negligible, the clerk's time, ■ the ink, and one line in the ledger. The borrower receives no tangible money, but acquires the privilege of writing cheques up to that amount. These quickly find their way back into the banking system and so increase the total deposits. We see from time to time that money is becoming more plentiful or the reverse. The changes do not take place fortuitously. Every advance increases the quantity of money in existence, and every repayment of a loan diminishes it. This gives the financial system, enormous power. It is • said that while inaugurating the 1929 slump, the Federal Reserve called in an equivalent of £500,000,000 in one week.— . I am, etc., A. C. GIFFORD. BUSY ANTS Sir, —Now that the war is over the City Council will doubtless have time to attend to many matters which have been side-stepped. One of the urgent ones is this matter of the ants at j Oriental Bay. These little creatures j have taken up their home there, one might almost say they own the Bay, having dug themselves in with their proverbial industry so firmly that we humans may have to use a bulldozer to dig them out again. Anyv/ay, the matter is serious, to such an extent that goods and chattels of all sorts are being attacked remorselessly, and property is deteriorating. The Scientific and Industrial Research Department could possibly suggest a remedy for this pest.—l am, etc., AEMETE. I

[Mr. J. T. Salmond, of the staff of the Museum, who has given special attention to the eradication of ants, says that he has been approached by more than one resident of Oriental Bay on this matter. Bui until there is concerted action by the City Council, he states, it is little use removing them from one house when the neighbouring property has them. Ants can be destroyed by fumigation and other methods. What is required is a plan for the whole district, and the destruction of every nest.]