THINGS ANCIENT AND MODERN

Otago Daily Times, Issue 22052, 7 September 1933, Page 15

THINGS ANCIENT AND MODERN

TO THE EDITOR. Sir, —I have to thank “C. H.” for his very thoughtful letter on “ Things Ancient and Modern ” in your issue of the Ist inst, I had expected numerous comments upon it, either for or against his assertions, and am surprised that it docs not attract the attention that it deserves. May 1 suggest that he writes again and gives some quotations, as many have no concordances and perhaps not time to read the books to which he refers.—l am, etc., M. D. H. TO THE EDITOR. Sir, —The letter by your correspondent «C. H.” on “Things Ancient and Modern” wa s quite interesting. He refers to the Bible system of economics —God's system—which is contained chiefly in the books of Leviticus and Deuteronomy. People are gradually coming to realise that we cannot leave out the spiritual element in economics and prosper. It is the belief of an ever-in-creasing number of people that we will have to get back to God’s system of economics, as it is given to us in the Bible before we can hope to emerge out of our present troubles. Let us take the question of interest. Now, I am not seeking to hurt people s feelings in this matter; but the truth must be faced if we are to discover our mistakes and learn the better way. I know there are a number of people who have worked hard nearly all their lives and have saved up a bit of money and are living on the interest of it. They well deserve it. But what of the millionaire and multi-millionaire? The charging of interest on money is the surest way known to man of concentrating the wealth of the world in the hands of a few. Alongside the millionaires are millions of people on the verge of starvation. The unequal distribution of wealth is the cause of a lot of our troubles. It would not be so bad if our Government issued credit in the form of loans and charged interest on them, for then, because of the Government receiving the interest on it, we might hope for a proportionate lessening of taxation. But it is groups of private individuals who control the banks and issue credit and charge interest on it, not only to those engaged in industry, but also, mark you, even to the Government. The banks could still carry on business without charging interest. All they would need to do would be to make a slight charge on business transactions to pay expenses, and make a slight profit. They could still issue loans, but without interest because ns long ns the loan is paid back they lose nothing by it even without interest attaching to it. And vet we have allowed euch a thing to go on for centuries. In that period we have accumulated a huge national debt, on which it takes us all'our time to pav the interest. Mr Hawtrey m his book “Trade and Credit” admits that a low interest rate—i.e., cheap money—encourages and increases trade, and that a high interest rate soon stops trade. What would it be like if there were no interest? What a boom in trade there would be! . , .. We hear a lot these days about the gap between purchasing power, and cost of production. Would the elimination of interest close the gap? It would go a long way towards it, and. along with another thing mentioned in Bible economics, would bridge the gap. There are many other interesting things mentioned in the Bible economics about which we would do well to inquire.—l am, etc., R- F.