OUR FINANCES!

Bay of Plenty Beacon, Volume 5, Issue 51, 11 May 1942, Page 4

OUR FINANCES!

Sir,—Your correspondent who signs himself "Democracy" asks questions that ought to have been answered in 1936 by our present Government. But the booby trap was set, under the heading of Labour and State Banking, and the people fell for it. We are still in the clutches: of the orthodox banking system. High finance promotes the dance, the Government sets the tune and the people pay the piper. But with a State Bank owned and run on the people's credit by a Government for the people, there would; be no incentive for private loans to reduce socalled inflation. Loans may do their, job. To reduce the spending power of the people. I Avould refer back to Mr Peter Fraser on the Budget forecast from the House of April 30, 1942. "It is a fallacy to say that this country cannot be run without borrowing foreign and private credit for war and other purposes." M.v* friend speaks of borrowing £100 pounds on overdraft for war loans. Well, putting it in a logical way" and presuming that the overdraft lia.s not been reduced for 12 months, with interest at 6 per ccnt the bank having resource to all documents, and you are taking the risks at 3% per cent therefore the Government would be in a better position to take the risks than you, but it would be infinitely better if Ave had State Banking, Social Credit, as there, would be no need to borrow private capital, therefore no external debt for interest. • Yours etc., W. BRADSHAW,