BENEFITS AND CURSES,

Waikato Times, Volume 118, Issue 19659, 20 August 1935, Page 9

BENEFITS AND CURSES,

(To the Editor.) Sir, —The upholders of our present financial system insist that there are no benefits accruing from inflation, borrowing and war. There are benefits resultant from all these methods, but they are nullified by concomitant faults which could be eliminated by a revision of our principles of financeThe benefits from inflation are: (1) Boom in trade; (2) increased production and consumption exchange; (3) people spend money freely; and (4) increased employment. These benefits are nullified by: (1) Lack of control of issue, and (2) no limitation of prices. The benefits accruing from interest-bearing Joans are the same as those resultant from inflation. These benefits are nullified by: (1) Time limit for repayment; (2) high interest burden, necessitating increased taxation and political squandering; and (3) interest eats up the loan, but the debt remains. The benefits from modern warfare are: (1) Unusual release of credit by financiers to save themselves; (2) internal increase in production and consumption; (3) gross production turned into consumption - (by war sabotage) ; (4) internal money to spend; and (5) increased internal employment- These benefits are cancelled by: (1) The horrors of war; (2) wastage of human life; (3) post-, war debts to financial houses; and (4) economic upset by hysterical contraction of the availability of financeThis analysis I commend to the New Zealand Welfare League, Messrs Douglas Seymour, Earle Vaile and the electors generally.—l am, etc., MARCUS JAMES. Hamilton. August 19, 1935.