BANKS AND CREDIT
(To The Editor)
Sir, —Under the signature of “Study Social Credit,” the assertion is made “that banks create credit by a few strokes of the pen.” Does your correspondent study the various bal-ance-sheets of the banks, Reserve, trading and savings, published periodically? Having done so myself I find banks have solid assets to show for whatever credits they claim. Banks show more deposits, i.e., customers’ money, than advances, that is money credit to other customers.
I know from experience they demand security on such valuable realisable property that it is far from being a “stroke of the pen” but solid value.
The Reserve Bank, a Government institute, only has the power to issue notes. Savings banks must trade with your deposits to pay your interest.
Now I am anxious to know on what grounds your friend justifies * the above statement.—l am, etc., W. PARKINSON.
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https://paperspast.natlib.govt.nz/newspapers/HPGAZ19430512.2.38.1
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Hauraki Plains Gazette, Volume 52, Issue 3262, 12 May 1943, Page 7
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147BANKS AND CREDIT Hauraki Plains Gazette, Volume 52, Issue 3262, 12 May 1943, Page 7
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