BOOK ENTRY MONEY.

Waikato Times, Volume 113, Issue 18947, 17 May 1933, Page 9

BOOK ENTRY MONEY.

* (To the Editor.) ! Sir, —in his letter dated the 9th ! inst. ‘‘Socrates” contends that because the book entry money (he does not deny bv reasoning that there is sue 1 a thing) is only created on - S°°d j security it is made by the community. Now, seeing that, as “Socrates himself puts it, “the bank does not care a hang for the community," and as It can at a moment’s notice, from | International 'financial headquarters, either restrict or stop altogether creating money, and thereby cause the community to experience poverty amidst a superabundance, as at present, how can he ( still contend that the banks create nothing? , .... Money has no value without wealth, wealth has no value without money; so that if wealth loses its value it can only be because the credit monopolists have restricted the amount of book entry money. “Socrates" says that the statement that banks issue cheque money on the community's wealth is a “new °ne on him.’.’ He then goes on to say, My banker insists on my wealth being good enough to cover my cheques It would seem by this that “Socrates" is confusing wealth with deposits, or he does not know what he is talking about. When “Socrates’ says "I am an ignorant fellow," then goes on to say, “but am eager _to learn," if it were not for a cunning which appears to underlie his otherwise simple statements, one would draw that conclusion. However, if he is really sincere—-I do not want to do any man an injustice-—! advise him, rather than waste time by writing on a subject he tells us ho knows so little about, to obtain some Douglas literature, in which T can assure him he will find plenty for an unbiased mind to educate itself with. —I am, etc., „ ~ A. HANSEN. Orini, May 13, 1933.