THE BANKER'S RESPONSIBILITY.
Again, and in view of the nonsense which has been talked in some quarters with regard to the monetary authorities, whether here or in the United States, having no right to interfere with speculative operations by posing higher Bank Rates, the public should consider what are the actual facts. The problem resolves itself into this. " A " and " B," whether in this country or in the United States, have, in the first place, a perfect right to select their own investments or speculations, and if they prefer Gramophone shares to Consols it must be for them to act in accordance with their wishes. And further, if " A " and ".B " actually wish to speculate in shares on borrowed money, there is nothing to prevent their taking that course if a bank is willing to lend mid adequate security is provided. If, however, the innumerable operations of A " and " B " involve a strain upon the available supplies of loanable capital which are required mainly for the trade of the country and for the main- tenance of a sound position, then those who are responsible for maintaining sound monetary conditions have not only a right but a duty to perform in placing difficulties in the way of an abuse of credit facilities. It is a possibility for which all borrowers of Maney-must, if they are reasonable, be at all times prepared. Of course, in this statement we get very near to the old question of irielim and tuum. We know that in the present Bolshevik age there is a tendency in some quarters to diiregard even the rights of holders of property, and there seems to be something akin to that notion in borroWers of money who often speak and act as though the position should be that they have only to ask and to have, and, moreover, to have at a low price irrespective of the demands for the article. Such an idea, however, cuts at the very roots of any sound currency and banking -system, for such a creed must necessarily result in chaos and Bolshevik conditions of finance such as those which result from revolt in the political or social world against soundly constituted authority;
Previous page
