WAR LOANS

Evening Star, Issue 18035, 1 August 1922, Page 7

WAR LOANS

IO TUB EDITOR. Sir, —In -Mr MtieManus’s reply he omits to answer my question—viz. ; If it is fair from his point of view to take advantage of the depreciation of money by the Government paying 10s,for every £1 it borrowed, word'd it not be equally fair to those bond holders, who in the pre-war-days lent a full value £l, that the Government double the interest to them, as they get £3 and £3 10s per cent., whereas it now only represents £1 10s and £1 15s per cent. ? Surely, Mr MacManus does not advocate.a policy of “heads I win, and tails you lose.” In regard to his argument of conscription of men during the war, this applied to every adult .of. military _ ago; and he seems only willing to conscript war loans, which represent money lent in an emergency to carry on the w r ar. To be fair, he would have to conscript all wealth in equal proportion—viz,, local bodies’ loans, private companies’ loans, and all money in the banks, including tho Post- Office Savings Bank. From his remarks I taka it he considers it a crime to lend any Government money. I am quite aware that extreme Labor would swainp the country* with paper money and reduce the present value of the £1 to Is, so that if a person had £SO in the Post Office Savings Bank the Government could settle it for £2 IQs; but I did not think that Mr MaoMnnus belonged to this tjrpa of politician. No business can bo carried, on successfully unless the owner is an honest man. * He' might have a very .successful rnn for a short time, but then comes the crash. The same applies to public bodies. In any case, it would not require- n. vast sum to,, provide a sinking fund to jjjiy off tho whole debt within the next thirty years.-—I am, etc., Wage Earner. July 31.