THE RATE OF INTEREST.

New Zealand Herald, Volume XL, Issue 12409, 23 October 1903, Page 7

THE RATE OF INTEREST.

j TO THE EDITOR. Sir, Sir Joseph Ward—Jeshurun breather, forth threatenings and slaughter. _ That is not of much account. But his claim that a poor man should take loss than the value of his money in order that a rich man may get the use of it is of much importance. We often hear of the claims of socialists when those claims are advocated in workingmen's meetings, but no workingman lias ever advanced a more socialistic theory than that of Sir Joseph. Hear ye ! savings bank depositors, "I, Jeshurun want money—capital, I call it—for my trade, and it is only patriotic, of you to take a-quarter, or a-half, or, for the matter of that, 1£ per cent, less for your deposits than they are worth, and 2i per cent, less than the Government offers to pay for one million. The true socialist is he who would make one man boar the burden of another." The question of the proper rate of interest on deposits in savings banks is one depending entirely on what is earned. As you point out in your article, the earnings of the banks belong to the depositors. Sir Joseph refers to the £18,000,000 or so on deposit in the commercial banks, onehalf being fixed, the other free. This sum represents the working capital of the colony ; . does ho pretend that the owners of those deposits will not demand and receive the current rate for money V He will not be so i stupid. Then I ask why should I, a deposi- : tor in the savings bank, not also receive the i current value of my small deposit ?—I am, . etc,, Depositor.