“SCRAPS OF PAPER.”

Lyttelton Times, Volume CXVI, Issue 16959, 11 September 1915, Page 15

“SCRAPS OF PAPER.”

——♦- TO THE EDITOR. Sir, —Kindly permit me to reply to Mr Verrall’s letter of August 28, headed “ Scraps of Paper.’’ in answer to my question, “ Why should not the proclamation making bank notes legal tender' be extended as long 'as irrasx grows or water runs? 1 ’ ho says, “Because if tho hank notes aro not redeemed in gold as promised; they arc only ‘scraps of paper.’” Now-, this idea is not confined to air Ycrrall alone, but that huge majority of i>cop!o who are on the broad road to- destruction, for how often do ve hear it- said inconvertible paper money, mcaninrr of course, if the false buffer gold is not in view some time its the future, tho notes are inconvertible, whereas every note mado legal tender is redeem te" itself throughout its existence. For instance, I go into .a bootmaker's shop aud buy a pair of boots costing 12a, and ho gives mo 8s change and the boots for a £1 note. Ho takes tho note to a draper’s shop and buys an article of clothing for Ss and gets 12s change. A man drops iu who has been, dote- lithe draper’s garden, which took him two and a half days and receives the £1 in payment. The note is thus redeemed three times inside au hour. Mr Yen-all's suggestion about assist-'- ; England by sending her gold is a laudable one, but gold in banks docs r. long to the Government or people but private companies. Tho great mif-H-ie in this country is not having a' State Bank, which Air Verrall and myself have been suggesting for nearly half a century. Yet I believe Mr Vcr rail’s idea of State banking would he, like the Commonwealth Bank of Australia, useless, in consequence of tho tion being adulterated by tho false buffer gold. What we want is a ct -to Bank with paper money, issue barer 1 on tho resources of the Dominion, made legal tender for all internal operations, and consequently get rid of borrowing, taxation, and unemployment —T ebo. W. FITZHENRY.