A STATE BANK.

Lyttelton Times, Volume CIII, Issue 12242, 30 June 1900, Page 4

A STATE BANK.

TO THE EDITOR. Sir, —I am glad to see the subject of State Bank and bonds being discussed- in your columns. Believing no one subject so nearly affects the interests) of the people of New Zealand as this does, I would like to ®dd a word toward bringing the matter before them. In a plain way the matter may be put thus; An interest-bearing bond istued by the Government of New Zealand is accepted by money loaners as good and ample security for their money. It is plain, that this security would not be less good and ample if it be employed without bearing interest, and the saving to the people that would thereby be effected can be best realised by a glance at the interest account now being carried. A State Bank issue cf legal tender currency js the solution of the interest-bearing bond problem. If ■ the people of Now Zealand fan be made to see this, and if they have the same confidence in themselves and their resources that the money loaner has, they can emancipate themselves from the thraldom 1 of usury. That a State Bank legal tender currency has every advantage over a non-legal tender private'bank issue, is as true as that the whole is greater than a part. Behind every note issued; by . a State Bank would be the whole moral and material resources of New Zealand. What security at all comparable with this can a private banking concern offer? One of the first and' important advantages of such a State-issued currency is the abihty to command an adequate amount for prosecution of public works. To instance this : there recently appeared in the “ limes ” an article upon the feasibility and advantages of obtaining electric power from the Waimakaxiri. The City of Christchurch might obtain the necessary amount from the Government with small or no interest, and the amount returned in annual 5 per cent payments. This is one of hundreds of things that could bo done for the welfare and happiness of the people at, practically, no cost for money. I would add that it is obviously to the self-interest of private banking concerns to limit the volume of currency to an amount relative to requirements, that will enable them to command their price for its use. The question, in brief, is whether private self-interest, or considerations of public welfare shall control the issue of currency.— I am, etc., rAskbt.