BLAMING THE BANKS.

Timaru Herald, Volume CXXXIV, Issue 18818, 5 March 1931, Page 13

BLAMING THE BANKS.

To the Editor of the “ Timaru Herald.” Sir, —Although it is freely stated by those who should know that, Mr Clyde Carr is the most assiduous and attentive Member of Parliament Timaru has ever had, a flippant and scurrilous correspondent, oblivious of the fact that he is unworthy to unfasten the latches of Clyde Carr’s shoes, holds that gentleman up to public ridicule, simply because he spoke the truth, as he knew it, about our banking system. That ZJlyde Carr was not speaking without he book, your readers may gather from he following quotation from an acredited English authority on the subect:—

“Bankers are able to juggle with Tices to an almost incredible extern, tnd, by doing so, reap enormous fortunes from the producing classes. They have the power to stimulate industrial prosperity, and, to destroy it, by increasing or diminishing the available .•old supplies, as well as by the mere nanipulation of credit. Just now, a few f their number are contemplating he most gigantic “deal” that has probvbly ever been conceived

The “deal” is nothing less than the doubling of the national debt, and, incidentally all other debts, by doubling ,he present value of our monetary units. By doubling the value of the sovereign, vhich is very easily accomplished, the crick is done; and, the national debt, ;ay, £6,000,000,000, becomes in reality 312,000,000,000 in terms of the present purchasing power of money compared with that of the money actually loaned. When this deal is carried through, prices will fall owing to a reduction in he volume of currency in circulation, Including bank credit. This means reducing banking accommodation, overdrafts, loans and so on, and consequently curtailing trade and depressing industry. It means reducing wages and salaries. This will add to the depression by •educing still further the demand for oods, since the wage-earners are the ceat consuming classes; and, if you educe their wages, you reduce their power to purchase commodities; in short, reducing prices, or, what is the same thing, raising the ifelue of money, means trade depression, unemployment, starvation, strikes and

riots, with the possibility of a civil war.”

I think your readers will agree tha' the person who so accurately predicted the existing conditions knew what tv was writing about; and, they will agree also that Professor Soddy and Clyde Carr were perfectly right in blaminr the banks for the present world slump and, instead of adverse criticism, thej deserve the thanks of all producers and traders. It is to such men we look for the exposure of the money-lenders. They are usually the pillars of society and for that reason they remain unsuspected by the masses of hardworking and busy men, who are their victims and their unconscious tools. They long remained hidden, but thanks to men like those referred to, they are now known, and their days are numbered.—l am, etc., DINORNIS.