REHABILITATION COSTS & WHY

Bay of Plenty Beacon, Volume 8, Issue 63, 10 April 1945, Page 4

REHABILITATION COSTS & WHY

Sn', —I would like to draw attention to just one or two< remarks that Mr C. W. Good has made in defence of orthodox banking. In the first place I would ask whether the production and resources of this country represent the wealth of the country? This being the production and . resources represent credit. Now credit represents currency . Free currenacy would have no but for production; currency being the exchange for goods and services on production. Therefore if the banks belonged to the people, it (credit) could be administered to the people's wants in the form of paper currency or coin (exchange) free of interest. Mr Good refers to the word "inflation.^ 7 a production of orthodox banking, as is also the word 'deflation.' The two represent '"Boom and Slump'" and would be wiped out by a banking system conducted by national authall created credit would be balanced by production and consumption. Therefore the soldier would be a potential producer from the start and the bank of authority ■would be New Zealand Ltd. i and not the orthodox international "Debt System." Money produced by the State (Treasury Bills) is costless credit ? as we know it } btfftl whep. transferred to the trading banks becomes a debt on national production. This happened when the last Government transferred the State Advances to settlers (Soldiers' Settlements) to the State. Advances Corporation. When we look for the holder of Mr Good's axe we find the present day banking system js the cause of all our economic troubles, — demanding something for nothing commercialising our currency and demanding interest on it. Interest does not produce goods but is a debt against production. Yours etc., W. BRADSffAWk