THE PUBLIC CREDIT

New Zealand Herald, Volume LXXIII, Issue 22457, 29 June 1936, Page 12

THE PUBLIC CREDIT

Sir, —I must say I fail to see in what way "E.N.D." differs from me. I have tried to show that credit is the use of goods or service, obtained without immediate payment, and it is surely plain that in the illustration given by "E.N.D." the barber lent his service. I have never, 1 hope, written lightly of the importance of our faith in one another. It may almost be said that all business and civilisation are dependent on a certain measure of confidence that men and women will deal fairly and honestly with each other. Admittedly we can only obtaiu credit when others have confidence that we will ultimately make payment, but, a» I have already said, we must distinguish between what enables us to obtain credit and the credit we actually obtain. In every case it will be found that the credit actually received take# the form of goods or service. What else would be useful? It may be worth while to point out that it is goods that make the credit possible in every case. No barber, doctor, or anyone else can give his service -without immediate payment unless he has a supply of goods, house, food, etc., sufficient to maintain himself and family while waiting for payment. Without such accumulation he must receive immediate payment or starve. Thus the volume of credit given is limited absolutely by the accumulation of goods, available for the use of others than the owners, brought into existence by industry ana thrift. J. Johnstone. Munurewa.