BANK DEPOSITS

Wanganui Chronicle, Volume 79, Issue 182, 6 August 1935, Page 6

BANK DEPOSITS

bn, -I'be New Zealand We I fare League questions Jny quotations ire the l ncyciopaedia Britannica, Keynes, ALcAlilian’s Report, insinuating by in nuendo that 1 have torn Giese quotations from their context. Evidently your correspondent his not attempted to show wuerg, for the simple icuson that he is unable to d» so. I can assure the New Zealand Yv’clfare League that these quotations aie complete statements, not turn froni their contexts, meaning exactly wuat they atiiirm—“A loan made by a bank is a clear addition to the amvunl ui money in the community’’—“that de poists originate in bank loans.” ihu ther that banks do not lend their de posits, but create bank credit again, t such deposits I’he Nevv Zealand Welfare League, 1 must confers, have during the past fifteen years, conducted their correspondence on a high level of debate, and to have to report to sucli tactics evidences weakness and inability io meet lhe new economics. 1 now challenge your correspondents, as the onus is on them, to prove their innuendo, that these quotations were given to mislead. Further, J strongly object to the statement “that there is noth’ng wrong or sinister in the banking business.” Aly quotation did not suggest that there was anything sinister, but endorsing R. (). Hawtrey, Esquire, in his deoate with Major Douglas last year, admitting that the depression had arisen from faults in our banking system. I am vours faithfullv, HOWARD V. DOUETTE.