BANKS AND CREDIT
Sir, —Does Mr. H. S. Winthrop seriously expect tho reading public to believe that the action of the Central Reserve and other central banks, in withdrawing billicwis of dollars from circulation was beneficial to the banking fraternity ? I always understood that banks made their money by lending to credit-worthy borrowers. In 6 other words, they exist on interest. How could they improve their income by reducing the aggregate amount of interest to the extent these huge sums represent? Surely we are not expected to believe that of the people's savings voluntarily sacrificed their earnings without some good If banks only lend on gilt-edged secyrities, then it is hard to understand why thev so suddenly became dissatisfied with their securities as to take such a bold arul drastic step as Mr. Winthrop mentions in his letter of October 11. John Willie.
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https://paperspast.natlib.govt.nz/newspapers/NZH19371015.2.161.2
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New Zealand Herald, Volume LXXIV, Issue 22860, 15 October 1937, Page 15
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143BANKS AND CREDIT New Zealand Herald, Volume LXXIV, Issue 22860, 15 October 1937, Page 15
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