INVESTMENT OF FUNDS

Chronicle (Levin), 2 November 1946, Page 5

INVESTMENT OF FUNDS

CHURCHMEN'S DISCUSSION AVAXGANU1, Oct. 31. "If the committee members believe that interest is payable on'ly on money saved up — why it is ama/.ing! Have they never heard of bank-created credit ? Do they think that banks lend the savings of their customers? The banks are allowed to issue credit up to nine times tlie amount of tlieir securities. They issue credit out of nothing," asserted Dr. - D. S. Milne, iii a further attempt to persuade the General Assembly of tlie Presbyterian Church to repudiate tlie practice of investing money at interest. "Hark this well! Ajiart from the limited jssues of Reserve Bank credit, all tlie money you have began as credit issued by a truding bank out of nothing. Almost all 1 vour money began as a rlebt to some trading bank and somebody is paving interest 011 it." 'Iii spite of a vigorous case jiresented by individual members, the assembly ovenvlielmingly voted for the report of the Public Questions Committee Avliicli, stated: "The investment of its various '■apital funds at a moderate rate of interest alone niakes it possible for tlie Cluirch to have a continuitv of policy ii; •idministration of its benevolent activities. Sucli capital as is invested by the "hurch is the result of the labour and sacri/ice of charitable persons. The c'onsidered opinion of tlie committee is. that sueh labour, when used in its accumulated form, is deserving of a fair and reasongtble reward, equally with similar labour when it is directly expended."