IDLE MONEY.

Waikato Times, Volume 110, Issue 18405, 12 August 1931, Page 9

IDLE MONEY.

(To the Editor.) Sir, —The Auckland Harbour Board has taken the opportunity of renewing an overseas loan of £127,000 at 6} per cent. One writer in criticism of the board’s action complains, considering the smallness of the loan, It could have been subscribed between 9 and 12 o'clock any day in Auckland If they had the chance. 1 don’t wish to criticise, the wisdom of the Harbour Board, although the interest seems absurdly high, but I desire to call attention to the fact of so much money lying in a comfortable bed in the savings banks awaiting the first opportunity to Jump into a more comfortable bed, if the opportunity offers, at a higher rate of interest. Now, this money, lying not idle, byt lazy, owing to its being able to live comfortably on the high rate of Interest, can afford to wait Ils time until it can see an opportunity of another gilt-edged security at a higher rate of interest. This money must have been extracted as protlt from industry by some method or other and its owners do not intend it to go back into the risks of industry so long as they can persuade the Government to take the money al h

high rate ot Interest and stand all risk of its being put to useful and profitable expenditure. Is there any wonder

that a depression exists in the medium of circulation, when this money which has been accumulated from industry instead of floating back to extend tho various branches of industry from which It has been extracted and keeping people employed, deckles to retire on superannuation. If the Government did not borrow it, it would have to go back into circulation to earn a living for itself besides keeping someone employed.—l am, etc., SIMPLEX. Hamilton, August 10, 1931.