CORRESPONDENCE.

Manawatu Standard, Volume LII, Issue 143, 19 May 1932, Page 2

CORRESPONDENCE.

(To the Editor). Sir,—Self-sacrifice; disappearance of depression and abolishing of taxation: My honest opinion of the depression to-day is that it was not brought about by a shortage of capital but by the accumulation of interests. Some people may have fixed deposits of from hundreds to thousands of at 4$ per cent.—the borrower has to pay 7 per cent. In the State savings banks the depositors have from £1 upwards, and their deposits run into millions on which they receive a smaller interest rate; therefore, the State must find many thousands of pounds to pay this interest. The principal is sure, but finding the interest is the cause of the depression. The same applies to big and small depositors, bond holders and oversea loans. This causes taxation by our representatives and not by the sanction of the people. Self-sacrifice would mean that big and small depositors in all banks would voluntarily forfeit all interest on fixed deposits for 12 months, and all banks would work their deposits at a rate not exceeding more than 2$ p.c. No depositor should draw from the principal more than is necessary. This would prove beneficial to our sinking industries. The State would gain by having no interest to find, benefits to the unemployed should be on a productive line; the writer would suggest a wheat drive, cheaper bread and cheaper feed for pigs and poultry) The withdrawals from deposits would mean the circulation of capital in which the Treasury would benefit. Taxation : The writer’s opinion is that it is very unjust to both our representatives and the people. There are thousands of unemployed and thousands of pounds not circulating. This is affecting the people depending on the worker and also the farmer in the sale of his products, who can find the principal and not the interest. The will of everything is to work; take work from man and he becomes dissatisfied. This is what is happening to-day. Subjects to follow aro the disappearance of the depression and the abolishing of taxation.—l am, etc. C. J. HUBBARD,