SHORTAGE OF MONEY.

New Zealand Herald, Volume LXIX, Issue 21165, 23 April 1932, Page 14

SHORTAGE OF MONEY.

Sir,—When one considers that wealthy Dominion such as our own, private wealth must bo calculated in tens of millions, has in note circulation the paltry amount of less thyi" six millions (under four pounds per head of population) how is it possible for us to be in any other position than short of money ? I venture to say that if fhbanks would pub into circulation a furthcr, say, ten millions of notes (on reasonable security) we would see within a matter of months the first glimpse of th o sun of prosperity dispelling the clouds of our present depression. The banks i ra y tell you they have plenty of monev You go to them with the deeds of your farm, or your home, and ask them t 0 advance to you, say, one-half of its value You will then find out how flush of funds they are and how willing tl ley are to meet your requirements. I Ka y emphatically that if the banks are not prepared to do their duty in this matter then the Government should do it f o ' r them. It cannot he denied that we have thousands of honest, struggling farmers in this country whose assets entitle them to the accommodation they require (but cannot get) to convert 'their holdings from a state of hand-to-mouth existence to that of a very comfortable living. And where, I ask, would our banks' our big commercial concerns, 0 r our country in general be if our primary producers are allowed to go under merely for want of reasonable accommodation, which the banks are, not prepared to give them. To my mind the present depression will not lift until this state of affairs is remedied. Rich Yet Poor.