Dear Sir,

Bay of Plenty Beacon, Volume 9, Issue 86, 14 June 1946, Page 6

Dear Sir,

Letters to the Editor must be clearly written on one side of the paper only and where a nom-de-plume is used the name of the writer must be included for reference purposes. The Editor reserves the right to abridge 9 amend or withhold any letter or letters. WHAT IS DEMOCRACY? Sir, —Your correspondent “Onlooker” asks! What is Democracy? The word ‘democracy’ is a word which has been battered and torn to suit all political creeds, and my friend “Onlooker” would give it another twist! The true definition of democracy, is a form of Government in which the supreme power is vested in the people. Therefore ‘party politics’ is not democracy! The fiscal policy is controlled by outside monetary conditions which do not coincide with democracy. (1) My friend states that a certain group woke up to the fact that once the State obtained complete control of the banking system, it would create a power in government that could not be broken, except by physical revolution. This would make it appear that his orthodox theory on democracy has broken down, as the banking institutions are in the same position as a Totalitarian Government, i.e. dictators of finance under centralised control. (2) The world is facing famine, etc., etc. I would point out that the world food crisis has been fetched about mostly

through the monopoly of credit, organised by the International Banker and precipitated by the Bretton Woods Pact. (3) The ‘depression’ was caused through the orthodox system of controlled credits operating from Wall Street. The objective of the Bank of International Settlements will afford material by which the general policy of our banking system may be recognised. While no doubt the working banker, may be tempted to deny it, it would appear true and reasonable to say that the system is directed to the constitution of a series of bottle-necks, operating through the financial system to place both production and distribution under the control of financial interests. (4) Under ‘Real Democracy” where the system of economic individualism (collectively) would be carried out without losing the right of private ownership, which is being lost under the centralised control of orthodox finance. (5) My friend says: Under a competitive system of banking there can be no money monopoly, as there is no competitive system in presentday banking, though there may be rivalry amongst managers, the banking administration comes under centralised control! Well I think if my friend’s industry were democratic there would be no monopoly of credit. W. BRADSHAW.