BANKS AND CREDIT.

New Zealand Herald, Volume LXVIII, Issue 20866, 7 May 1931, Page 9

BANKS AND CREDIT.

REPLY TO MR. THEODORE. PROPOSAL SHEER INFLATION. - f SYDNEY. May G. In replying 1o Mr. E. G. Theodores remarks about- the links' refusal of credit, Mr. A. 0. Davidson, general manager of the Hank of New South Wales, said that if, as he suggested, the banks paid out £100.000.000 they could do it. either liv extensions of credit, or by drawing on the Commonwealth Wank for notes. / The effect of (his, however, would be *heor infl.ition. If it were done the purchasing power of the pound note would he reduced to 6s Bd, and the burden would fall most heavily on the wageearners.