THE LAST WAR AND THIS ONE

Bay of Plenty Beacon, Volume 6, Issue 4, 14 September 1942, Page 4

THE LAST WAR AND THIS ONE

Sii*,—Dr William Shaw currency historian and keeper of H.M. records of the' British Treasury, in an extract from his work referring to

the Bradbury Note (the fiducary note of to-day): During the 1914-18 war, England discovered the true principles of a State issue of paper money and benefited amazingly. It was used automatically; retired automatically; never redundant; never deficient; neulral in its effect upon

prices, but • rising equal to any strain put on it. The control of the amount of money actually in circulation lay entirely in the hahds of the community and, was determined by the community's need for currency. Neither the State or the Bank of England had any control over the amount of money in circulation. It had no relation to gold cover and was not effected by the fortunes of gold and therefore nei-* ther a source of inflation or deflation ... ,

Britain surrendered her right to do this, to a monopoly bank so little did she understand the true principles of money. The weir known Monetary reformer "Mr A. Kitson" commenting on the above, says: "Here was the safest ancl finest currency system the world has ever known, the National Credit, employed for productive purposes; which belonged to the people ancl could be used by the Nation without any cost for interest charges. Since this war has started Britain has issued £880,000,000 fiduciary notes. The Prime Minister, the lion. Peter Fraser, stated in the July session that he would probably have to get another £100,000,000 from the people by loans ancl or taxation.

Now whilst we are giving our National credit to private financial banking institutions to be returned nt 3 per cent war loans it is not too much to ask that Ave in New Zealand in these times of difficulty, condition our financial system as did the British nation in 1914-18, by making use of our National credit free of interest. Yours etc., W. BRADSHAW.