BANK DEPOSITS

Wanganui Chronicle, Volume 79, Issue 201, 28 August 1935, Page 6

BANK DEPOSITS

Sir. Your correspondent, Mr. L ‘‘Howard U. Douette,” has published L a fourth letter on the subject of bank | ( deposits, in which he says he is an noyed and exasperated because 1, for I one, ignore his main argument, viz., { that banks create bank credit against ; deposits. L can quite believe his state of mind is as ho says, but I. suspect J the real reason for his annoyance and t exasperation, is that I. have not allowed myself to Im diverted from the , point I raised, which was that Mr. ' H.U.D. had failed to prove that de * posits cannot be lent. Those of your readers who have followed the corres- ■ pondence must have followed the cor r respondent must have noticed how he t first tried to evade the point J raised. s by saying I had misunderstood him. t and afterwards avoided all reference j to it; and 1 expect they have come to ] the conclusion that Mr. H.U.D. is tin- t able to prove that “deposits cannot be lent,’’ and does not want to admit his | failure, lest he prejudice the rest o.* t My object in starting this contro vorsy was to point out the amount of ' incorrect reasoning that is being used ( by some of your “economic” corres t pondenis. Though on the surface “Mr t H.U.D.’s” argument looked very plausible, it was easy to prove that*his conclusion was wrong, because it was } . based on an incorrect statement. I c consider that writers on economic questions might at least take the « trouble to be sure that their reasoning * is correct, ami that they say exactly ( what they mean.—L, am, etc.. “BEADER.” J -0/8/Jo.