HIGH FINANCE

Press, Volume LXXI, Issue 21412, 2 March 1935, Page 7

HIGH FINANCE

TO TDK EDITOR OT THE PRESS. Sir,—l do not propose to refer in detail to the correspondence on this subject, as all the writers except "In Earnest," by wandering away from the point, help to create that confusion of thought between new and old ideas which leads to nothing. The above heading which you gave to the editorial remarks that prompted my letter of February 13, is suggestive of the idea that the financial transaction referred to—the creation by the Minister for Finance of a million out of nothing —is bordering on trickery. The adjective 'high' is used in a derogatory sense, with that fine touch of irony which is achieved by the use of the opposite word. When the banking system creates new money by granting loans the process is quite respectable in orthodox circles and is referred teas finance; but if governments resort to the process it becomes high finance and therefore what you termed a "dangerous precedent." It asked why it should be dangerous and suggested that if the Government would follow up the precedent there need no longer be the time worn excuse that we cannot do this or that because there is no money. My question has not been answered and my suggestion has not been criticised, because the proponents of "sound finance" know that there is no justification for the powers of government being controlled by private interests which have usurped the sovereign right of the State to create its own credit, i.e., money, on its own terms.—Yours, etc., W. B. BRAY. March 1, 1935.

IThis correspondence is now closed. — Ed., "The Press."]