NEW YORK BANK’S CRITICISM.

Waikato Times, Volume 118, Issue 19662, 23 August 1935, Page 9

NEW YORK BANK’S CRITICISM.

iiiavi/ ■ vniv uniii* w , (To the Editor.) | Sir, —An outside point of view is | helpful in the study of our world problems. I The issue of a report in October, i J 98-i, upon economic conditions in | America, by the National City Bank of i New York, is interesting reading. A | decline in bank reserves in September i of 58,000,000 dollars put into circulation increased pay-rolls and produced more activity in retail trade. Commercial borrowings of 265,000,000 dollars during August and September also increased commercial activity. The bank discusses Dr. Townshend's plan of 200 dollars per month pension scheme. “That the weak, helpless and the unfortunate should be provided with the common necessities of life by the State at the publio expense is a tribute humanity owes to its- kind-” The proposal is welcomed by the bank, but they refer to the age-long “common-sense’’ conclusions. “Save for a rainy day; you cannot have your cake and eat it; you cannot have it both ways,’’ etc. These old proverbs were common sense in an era of scarcity, but as conditions alter the case is altered. “The obvious truth is,’’ continues the bank, "that commodities and services are purchasing power, and that 90 per cent, of a country’s, trade settles itself without money." This obvious truth does not gratify the millions of citizens of the United States of America and their dependents, who have no 'money- That is a factor the bank does not consider Wo have had many definitions ot Credit, but here is what the National City Bank of New York 'States: "Credit is a mortgage upon future prosperity.” Employment and income form an interesting paragraph. In 1929 nearly 49,000,000 people were “gainfully’' employed, and the income value was 88,032,000,000 dollars, or 1700 dollars per person—not sullicient for a decent living. Prom 1929 to 1932 tills value of Income dropped to 39,365,000,000 dollars and wages dropped from 52,792,000,000 to 31,533,000,000 dollars. The bank places the cause of unemployment upon the “disruption of price relations," and states, that "all cqsts must be charged to consumers. ’’ —I am, etc., FINANCIER. Hamilton, August 21, 1935.