HAMILTON EAST GOLF LINKS

Waikato Times, Volume 118, Issue 19648, 7 August 1935, Page 9

HAMILTON EAST GOLF LINKS

(To the Editor.) Sir, —While thanking Mr Masters for the further explanation of ills plan for constructing golf links by means of an interest-free note issue I cannot feel that the position has been met fully. Unquestionably a scheme that, as tills would do, increased the money supply or effective demand on goods and services, while at the same time decreased the amount of goods and services available to meet that demand, would cause a decrease in the value of money, expressed by a rise in prices. This in effect would represent a levy on all holders of money when the effect was fell. These would really pay for the golf links at that lime. To say that the position would be met, by the cancellation of tiic notes toy the accumulation of subscriptions over a period of years is not quite correct. This cancellation would doubtless restore the original price level and shift the cost back lo the users of the golf links, tout it does not at all follow that tiiose who were holders of money when the depreeiation ft took place would ho holders to the same extent at the restoration. II is quite conceivable that one who was a credilor when Ihe depreciation took place would he a debtor at (lie restoration. In such a case lie would pay twice while someone olsc would gain. 1 cannot see how such a scheme could be operated lo any considerable extent without inflicting grave injustice on many. The effect of a loan on orthodox lines is that certain individuals (the lenders) who possess a title lo claim goods and services resign that title for Ihe lime being to others (Urn borrowers) to exercise. Under such circumstances the existing ratio be

tween money on issue, or effective demand, and goods for sale is not distributed, and money value remains stable. The Interest paid on the loan is the inducement offered the owners of the money to abstain from claiming goods and services on their own behalf with it, and to allow the borrowers to exercise that right instead. To say that paying the interest is paying for useless paper is misrepresenting the facts. Because the title is expressed on a piece of paper or in a book entry it is none 'the less a good title; If it were not it would toe no use to the borrower. That being the case, can the borrower ask the owner to deny himself and lend to him without payment and retain his self-respect ! I think not. Interest must then he offered.

Mr Masters will have to make tho matter much clearer before I can believe in ‘the justice and oquity of his scheme, much as I would like lo find such ail easy way out of the economic tangle. —1 am, etc., WAYFARER. Ngaruawahia, August 5, 1935.