TIGHTNESS OF MONEY.

Lyttelton Times, Volume CXX, Issue 14977, 24 April 1909, Page 5

TIGHTNESS OF MONEY.

TO TIIE EDITOR. ,1 Sii'i—A'st-th*© author of "Dominion Banking, What It is and What It Does," may I express my pleasure at the contents of the letters appearing in vour issue of April 2 signed by " Interested " and Mr J. Miles Verrall? These gentlemen cogently set forth the fact that the present money stringency is not due tp ourselves, and that we suffer because the people are not pressing the'Government to do its duty, viz., attend to our currency and banking laws. ' With all our " brag"/ as the leaders in progressive legislation; we have allowed a state of affairs to grow up and continue which will impo'ee serious injury on all the interests of the dominion. We can see its initial effects already in the growing numbers of unemployed, and in depreciation of properties and commodities. The cause arises from our rotlen banking laws—the very worst in the world—and from the folly of handing over to the banks the power to issue paper-money. This latter should be a State function and never be allowed to irresponsible private enterprise. I do not think tho time for State banking, to the exclusion of other banks, has yet arrived. My idea is that, as banking is but the evolution of a system which depends more on private enterprise than on State enterprise, a State bank could not effectively cater for the many interests of the community as at present constituted. When all 'industry is merged in the State or Commune, then only one bank —a State bank—will be necessary. Let us be logical in these matters. I cannot, in the short space which T have from you, do more than superficially deal with tho subjects treated of, but the groundwork of them all is to bo found in our banking and currency laws. The cure of this branch of our present evils must be attempted by the coming Parliament. I have been shown an article, No. X., by Mr Bedford on "Banking and Exchange," but this does not give even an elementary sketch of the subject. I fear it_ will not educate the public on the business of banking. We want men who are of practical experience in this business, and men who understand how to frame a banking and currency system suitable for the present needs of the dominion, and how to make provision for the :-apid financial expansion which the private and State enterprise is inducing. Depend upon it, there is a grand future before this country. It only requires the shackles of monopoly to be removed. Good luck -to " Interested " •;nd Mr J. Miles Verrall; wo need many like, them at the present. What are our business men and politicians thinking of? They should be in tho front ,of a movement for bettor banking and currency, so that properties, commodities and persons may not be turther depreciated. Wo want more banks and money, that prosperity may be at once restored to this country, which is eo responsive in rewards to those who work.—l am, etc..

J. B. HOBART. Wellington, April 19.