THE BUDGET AND COSTLESS CREDIT

Timaru Herald, Volume CXLII, Issue 20493, 11 August 1936, Page 9

THE BUDGET AND COSTLESS CREDIT

To the Editor of " The Timaru Herald ” Sir,—May we refer to certain correspondence in. your columns on June 29 and following issues, which took place between “Undeceived” and this League. In it the first named confidently predicted a “costless credit” policy from Mr Savage. He twitted the League with remaining silent on that issue. We advised him to await the declaration of the Government policy in Mr Nash’s Budget, before crowing over the inauguration of costless credit, and stated that we preferred to wait for that policy before criticising it. The theory of “costless credit”— visualises some form of “credit” which involves no obligation to repay and carries no interest. This theory also visualises no taxation to provide for expenditure—if its advocates are to be believed. It would therefore be interesting to know how “Undeceived” can reconcile the Budget proposals with his confident forecast thatt the Government would bring down a “costless credit” policy. He asked us for criticism of a possible policy, therefore we are entitled to ask him for the same on the actual policy of a Balanced Budget and provision of expenditure out of taxation.—We are, etc., N.Z. WELFARE LEAGUE. Wellington, August 8.