FINANCIAL NOSTRUMS.

Evening Star, Issue 22142, 24 September 1935, Page 12

FINANCIAL NOSTRUMS.

TO THE EDITOR. Sir, —In that editorial in which you were at pains to disparage new economic theories and the statements of Mr Savage in particular, you say that the illustration of a train, and the lack of technical knowledge on the part of a traveller regarding its mechanism, does not apply when it is not a recognised form of conveyance or has not run before, except for the shortest journey. By this statement you imply that the proposed economic adjustment has not been tried as yet, or has not been give a fair trial owing to the danger of adopting such measures. As Mr Savag ha's gone on record, according to yon. own columns, with an indication as i how he would provide money for the monetary proposals he has in mim l and as they are along the lines of the Social Credit proposals, I would suggest that there is nothing really new or i • volutionary in what is going to be done. Money is created to-day by the banking system, as has been stated by one critic, “ by the not very arduous task of writing figures in books.” We are unable to see why a Social Credit Government could not order the same thing to be done. As a matter of fact, the “ train-” has been running regularly for a long time now, only it has been carrying a few passengers compared with what it could, and should, carry. With the creation of an additional supply of tickets along the lines indicated by Mr Savage, the train would run more regularly, and there would not be left on the platform a large number of passengers who would travel, but who are debarred from doing so now because those providing the tickets do not regard the full use of the train as possible. Granted that an entirely new mechanism would excite comment and possibly suspicion, yet as the proposed methods are only an-ex-tension, of the present ones, with the vital difference of a new policy, there is obviously no cause for alarm on the part of anyone. Even an entirely new mechanism could hardly hope to equal the grisly record of the present system, with its criminal “ poverty amidst plenty.”—l am, etc., A. September 23,