DEBT-FREE MONEY

Otago Daily Times, Issue 23806, 12 May 1939, Page 3

DEBT-FREE MONEY

TO THE EDITOR

Sir—l was very much surprised on reading that the Labour Conference had decided that there was no such thing as debt-free money, and that the remit implied the issue of credit or bank notes in a form would leave the receiver free from debt. According to the Encyclopaedia Brittannica (fourteenth edition) banks lend by creating credit; they create the means of payment out of nothing. Where does the debt come in? This is the reasoning of the Minister of Finance (Mr w. Nash), and it was evidently accepted by the conference Bank notes, I understand. cost two shillings per dozen to print; the notes would be valueless unless there were goods and services to be obtained in exchange At the conference of the New Zealand Labour Party in April 1933, i financial policy was adopted which was reaffirmed in April. 1934, and it was upon it that the party fought the election of 1935. The policy reads: ‘ Immediate control by the State of the entire banking system The State to be the sole authority tor the issue of credit and currency Provision of credit and currency to ensure production and distribution of the commodities. etc.” These were the wonders the party was going to achieve There were to be no more slumps and no more borrowing. The wings of the banks were to be clipped, aid one Cabinet Minister who is now more at home uprooting trees with tractors than getting at the root of our economic troubles, the debt system. Of course, the idea that bank notes were going to be distributed ad lib debtfree is a bundle of hay for the donkeys that pull the gold wagon and it is based entirely on the banker’s idea that money grows in heaven and is brought to their vaults by angels on account of services rendered to (he Almighty A few more statements like these and Labour’s dictator of finance will have entirely displayed his profound ignorance.—l am etc.. What Ho! She Bumps.