BANKS AND CREDIT.

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

BANKS AND CREDIT.

TO THE ED mm. Sir, After reading “Sound Finance’s ” reply to my questions, 1 think the logical reply (from Wodchouse I believe) is “ hence the pyramids.” If my knowledge of economics was complete 1 would not bo requesting our highest living authorities, “ Libra,” the Welfare League, and others, for information. “ Sound Finance ” has certainly furnished none. If our financial system is so sound why do “ millions criticise and propound solutions for the depression,” and why does “ everybody like to talk about the depression, its causes, consequences, and cure ”? These quotations are from ‘ What is Bank Credit? ’ by W. K. M'Connell, M.A., an obscure lecturer in Sydney University. The answer to this is that these millions are suffering, despite the soundness of finance or perhaps because of it. “ Sound,” as aipplied to finance, possibly means free from decay, and although this condition can be applied to purely parasitic financial institutions it is retained at the expense of our farmers and manufacturers. No community can thrive when its agriculturalists and industrialists are bankrupt; it is necessary that these prosper, so that the people may have food, clothing, and shelter. At present our financial system is being kept “ sound ” at the expense of our means of production. The price wo pay is a reduced standard of living for the people, bankruptcies for business men and '-producers, and .starvation for the unemployed. There are millions starving now. That is why “millions criticise and talk about the"depression.” Can “Sound Finance” propound any policy which will enable the country to carry on without increasing the

national debt? If be can not, I can. Or perhaps he can suggest a method of borrowing ourselves out of debt. If these questions are beyond him, I would suggest that for enlightenment he study the beneficial control of credit, by the people, for the people.—l am, etc., Ken. W. Bennet, September 24.