CURRENCY FIGURES.

Waikato Times, Volume 118, Issue 19758, 13 December 1935, Page 9

CURRENCY FIGURES.

_ —< I (To the Editor.) Sir “Lowbrow" has furnished us iviih 'n mass of data regarding curin mshf. Times. He o-ur currency upon coins and bank notes and lie comes to the remarkable conclusion that this display o figures explodes the idea that a slioit age of currency caused the slump and that an increase of currency produces a tom. This array of Hala ami He conclusions arrived at pio\e wg “Lowbrow” is ignorant of tho tacts of modern banking. , ~r , As currency, according to Lo\> brow,” is only £12,683,57b, this flgur is a very small percentage of currency in circulation; our deposits and savings exceed £100,000,000, and i all depositors claimed their cash on demand at any given time they could not collect. How does Lowbiow account for the odd i Where does this balance come liom . 1 low is it extinguished, and where is tiic currency coming from to pay the interest charges? If “Lowbrow” will obtain the statistics from the Audit Department dealing with production and consumption for 1932 he will find that we had a shortage of purchasing power (currency) to tlie extent ot £50,000,000. That Is why we had a depression. “Lowbrow” misses out of his calculations that important item known as bank credit. —I am, etc., HUGH CLIFFORD. Hamilton, December 12.