BANKS AND CREDIT.
TO THE EDITOR, Sir, —“Labourer” states that credit is “ the recognition of the possession of value.” Credit is extended to those who are recognised as possessing values, but when a tradesman extends credit to a customer he is merely relending bank credit that has been extended to him. He would not have approached his bank unless he had been engaged in some profitable enterprise. Unfortunately there is under the present system no necessary connection between volume of credit and production. The volume of credit appears to be directly dependent on the existence of profitable enterprise. Where the people are short of purchasing power and goods are in ample supply there is little prospect of profit. Why not end this vicious circle? Poverty amidst plenty seems inevitable until some system of compensated monetary expansion is adopted.—l am, etc., A.G.M. November 22.
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https://paperspast.natlib.govt.nz/newspapers/ESD19351123.2.53.13
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Evening Star, Issue 22194, 23 November 1935, Page 12
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143BANKS AND CREDIT. Evening Star, Issue 22194, 23 November 1935, Page 12
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