READERS' OPINIONS

Gisborne Herald, Volume LXXII, Issue 21816, 12 September 1945, Page 4

READERS' OPINIONS

BANK OF NE'.V ZEALAND Sir,—As Mr. W. S. Black refuses to believe the statements of men who are authorities on banking, one can only come to the conclusion that Mr. Black is one of the blind leading the blind. In a true democracy is it not the prerogative of the Crown to issue all money? The Government says that it is going to take over the bank. That means a change in ownership. The Government says that it does not intend making any change in the bank's policy. The vital question is—what policy will be administered? Will it be a Bretton Woods policy, which is an international policy for a world slave State? ' TRUTH. BURDEN OF INTEREST Sir, —R.U.V. always evades the real issue and has not given any constructive criticism of the heavy burden of interest. As rates and taxes are mainly interest, payments, the question now is: Is interest justifiable under the present

(LETTERS TO THE EDITOR)

economic system? And can R.U.V. show how anyone can pay interest under this present economic system except at the expense of his fellow-men? Money is issued only as a debt to the banks. Interest is an additional charge to the principal debt or total of money. As no extra money is issued to pay interest, it is not possible to pay both principal and interest. The fact that the total of debt increases and that money is borrowed to pay interest on principal is proof that no debt is economically sound. If one is repaid it cancels that amount of money and makes it difficult for others to pay. The London Chamber of Commerce dealt very fully with the interest question, and I would refer R.U.V. to its report on the matter and then he may realise what a burden interest is on the whole community. OBSERVER RATEPAYER. [Subject to right of reply by R.U.V., this correspondence is closed. —Ed,, Herald.]