Readers Write

Northern Advocate, 19 August 1944, Page 4

Readers Write

Kindly allow me space in which to offer my hearty congratulations to the members of the Bay of Islands County

THE PEOPLE’S CREDIT

Council for their wise attempt to obtain the use of the

peopled credit for the people’s purposes. The principle enunciated by the council is sound logical and unassailable, and no supporters of the present iniquitous debtperpetuation system dare attempt to defend his views on a public platform, The council’s proposals arc logical and •rest on the fact that the credit of all the people must be the maximum credit available in any country, for it is axiomatic that the whole is greater than any part thereof, even though the sectional credit be terms “banker’s credit.” The council is also in most excellent company, as may be proved by quotations from speeches delivered by some of the world’s greatest leaders in the realm of finance and economics.—HAßßY ATMORE (Nelson).

I hope I may be allowed to support Mr H. T. Bates as to “debt-free money,” especially as he regards it

INTEREST-FREE MONEY

as meaning the same as “interestfree money,” which

I have supported for the last ten years. Mr Nash said: “I do not know what debt-free money is.” He could not saV: “I do not know what interest-free money is,” because many loyal persons in New Zealand lent substantial sums of money to the Government for war purposes free oi interest.' It meant that the Government will repay the sums lent, but no more. The difference between interest-free money and “ordinary money” lent is seen very clearly in the • Government’s money - lending terms in rehabilitation! If the Government advances £3200 in providing a soldier with a farm the soldier has to pay back (during 30 years) the £3200 and, also £2400 extra, which is interest. Can anybody tell me why the soldier should be made to pay this £2400 extra, which he never borrowed, and which the Reserve Bank as a sensible organisation would not borrow but print at the cost of the mere printer’s bill? The New Zealand taxpayers now owe about 500 millions, and we have to pay about 350 millions in 30 years, as interest because the Government unnecessarily used the money-lenders as middlemen. It is true that any man who lends to another man his life’s savings is entitled,to a hiring fee (interest). But the 500 millions borrowed was nobody’s savings, but artificial finance.

There is plenty of use for private savings without the Government and local bodies deliberately manufacturing investments for. the professional lenders.. What Mr Bates burned his fingers over was a proposal that local bodies should be financed with Government funds without an interest charge. In future we shall be the we did not do it before. Half of all laughing stock of our children because the borough rates collected in New Zealand is paid away to the moneylenders as interest. One-third of all - the county rates collected is paid away as interest to the money-lend-ers. When courity councillors realise that they could spend nearly all their rates on better roads instead of less than two-thirds, I feel sure- they will be solid for interest-free money. I think many county councillors do not know it. The new intelligence which has sprouted in Northland may spread through New Zealand. ARTHUR SAINSBURY (Otahuhu). "

Retailers. A National Mercery and Clothing Trade Group of the New Zealand Retailers’ Federation has been formed. Officers are: President, Mr. L. Laban (Christchurch): vice-president, Mr. H. G. Fownes (Wellington): executive. Messrs. •L. O’Mally. (Auckland), M. Blackmore (Hastings), W. L. McPherson (Palmerston North), W. T. Wood (New Plymouth), J. Living (Wellington), S. R. Hawken (Hamilton), W. F. Stark (Christchurch), J. A. Neilson (Dunedin), and J. W. Wood (InvarcaxgiU).