A SOHEME WITHOUT MONEY.

Waikato Times, Volume 118, Issue 19631, 18 July 1935, Page 9

A SOHEME WITHOUT MONEY.

(To the Editor.)

Sir, —The Dean of Canterbury, Dr, Hewlett Johnson, recently outlined in a -Manchester paper a vast scheme for wiping out all Britain’s slums and building 100 new towns. Naturally people asked, “Where Is the money to come from?” In a following issue of the paper 'the editor says: "Here is the Dean’s reply.” It Is based upon the experience of Guernsey, but is much more extensive than our old friend the Town Hall and Market of Guernsey. The Dean tells how, at the close of the Napoleonic wars, Guernsey was In a parlous state. Her towns, roads and harbours wore derelict. Financially she was penniless, and people were abandoning the island. In 1815, when Waterloo was won, Guernsey had no hanks, but had a Governor with vision, who recommended the local Government to create ami issue its own money. 'They did so, free of interest (paper money, of course), and, according to Dean John son, "a miracle happened and Guernsey became prosperous.” Then he tells ' how, in 1830, the Commercial Bank was established, and a struggle began between the bank ami the Slate for the right lo issue the island's' money, and (he Dean says: "Alter six years the hank won. '.Money was issued as a hank loan at interest, ami Guernsey slipped hack into other ways and methods.” “Slipped hack” is very suggestive.

Hi-. Johnson declares Hint the successful action of Guernsey before the Commercial Bank succeeded in changing Ihe whole financial policy of the island, is "a challenge to the world as to what might well he done without borrowing money from the hanks at interest."

To some of your readers there is •milling very no- in Ihe above, but Ihe eomiiienls of the London liiiaucial cdilor and the literacy editor of (be paper in Manchester are interesting.

The former «aid: "Such a scheme would toe entirely Impracticable (100 new towns), as it would involve an outlay of £100,000,000,000 (one hundred thousand millions), and is merely a dream.” The literary editor’s brief comment is: "Yet dreams often come true." It Is rather intriguing that a few days ago the cables informed us that the Soviet Union planned to rebuild Moscow on a stupendous scale. There aro to be 530 new schools, 17 new hopsitals, 15 new bridges, 50 new cinemas, splendid streets, etc., etc., etc., all on a colos-sal scale. The Soviet Union will not borrow astronomical sums of money and pay interest on it to carry out this great scheme, and when it is accomplished in Hie ten years 'they have planned for, nothing seems more certain than, unless other countries do something drastic to gel rid of Hie silly parrot cry, "Where is Hie money to come from,” every lime any body of sincere reformers suggest any scheme of social hellernienl, then, it requires Ml tic imagination to vision the lime when oilier countries will lie greatly influenced by whlit Soviet Russia is doing. H would seem, then, I hat those who continue to talk about “sound finance” and oppose all suggested schemes of social reform with the cry "Where is the money lo come from?” are ical'y he'ping the. cause of Communism. nf course’ our reaelionaries will say such a sl.ilcmciil is ridiculous: but is il •> _\ s |ias so often been said, fabulous sums of money (or credits) can at, any time be raised for war—sheer

i destruction of life and wealth —but i meanwhile hot for drastic social roi forms, seemingly. Tho money • (credits) will have to he found, and ' without interest attached 'to llie ' credits, unless more and more Comi munlsts arc to bo created. Tho choice •seems inescapable. The majority of Britishers dislike • intensely tho* thought’ of Communism, but many arc so obviously living in a fool’s paradise if they think they can delay for many more years the introduction of drastic economic and social reforms by the stupid cry “Where is the money to come from”? Guernsey made a success of things until thoy were compelled to “slip back” by vested interests. Soviet Russia will attain her idea in another decade or two, so we were told by Mr Anthony Eden, the British Ambassador to -Moscow, so why not face up to Hie facts and do somelhing lo slay Hie march towards Communism if such ! a consummation is not desired? —I am, etc.. JOHN SYKES. Ilami 11 on, July IT, 11)35.