The Temuka Leader THURSDAY, DECEMBER 10, 1908. Political Problems.

Temuka Leader, Issue 5752, 10 December 1908, Page 2

The Temuka Leader THURSDAY, DECEMBER 10, 1908. Political Problems.

(liy J. M. Twoiuuy).

NOTK litiUE.

So far I hiiVe endeavoured to show that the note i.-suu of this country at anv rate is :---

1. That sum of muuey which } v-.)•!'■ carry in ibeir pocket.-;, i,r l><cp in their safes fo.r the pur i .;-,■., of change. 2. That as soon as the people get into their possession more paper ; money, or iuiy other kind of ! money, than is necessary for the purposes of their business, they I [»ay it into their accounts in the ; bank, and it ceases to be in circulation. 3. That because the people return to the banks the notes when they , do not want them, it is itnpos- ! sible to put into circulation nioiv i paper numey than the people require. ■I. 'I hat as it is impossible io put into circulation more notes than the people require for the purposes of change, it must be impossible for the Governmen 1 to carry out any large undertaking by issuing paper money. 'This will show that it is absolutely no use to establish a State Bant: in expedition of being able to do with out. borrowing, or to make railways, or buy land, and settle the people thereon. That cannot be done. Supposing for iiedance. (he (!o\ernincn( paid ail the Civil Servants, and t<\ery liability (hey have to meet, in State Bank notes ai the end of a n,oi>th. what won'd happen '*. Simply (hat in a vi'i'v short time all these notes would be paid i;i(o some bank ; that that bank would present ilie/n to the I Jovermvient, and demand gold for them, and the Government would have (o JSnd (he gold. In that case what good would the notes be ? They Would lie no good. My hoiiei-l- opinion is that (he present, banks make very blile profit if anv out of bank note-, that, a eHate Bu;;k v. oiijd m;t make a e-reat de-i! more i,ui ~\ tjjem, and that eon-e.aieiitl\ ii \< not uoittilalv ing them into eon-ideration at all. ',' 'he l|o(e-- co. ( (lie pie-rllt batikabout ■■> pe, ..io , and u ien i hey- can ..,.( nioiiex oi d. p.. ii a» ti.ai rale ihcir /.I. •I'd Oi! Ihe p., p. . |,|..|,e,. ,■ ~, n,.f P.- vei \ ■..•!.-a I.