FREE MONEY
[To the Editor of THE SPECTATOR.] SIR, —It is extraordinary how many critics of the scheme for monetary reform which I support imagine, like Mr. Biddalph, that we are solely concerned with an increase of the note issue ; whereas the most casual reading of our literature should show them that we are mainly concerned with the right use of credit. We are not afraid of credit, but of the unjust use which is at present being- made of the monopoly right of creating credit. Seeing that we are at present, at the most conservative estimate, paying £90,000,000 a year in taxation to the credit monopolists for the " service of putting money figures against the wealth which we, and not they, created, it is a little difficult to see- how -the present system can be described as " cheap." . While it is desirable to have some increase in the note issue to enable people too poor to have a bank account to buy regularly their share of the increasing output of goods, and also to back bank deposits, there must always be strict limits to the proportion of tangible currency which is desirable.
I do not suggest that, regardless of all other considerations, every flew unit of goods produced should be accompanied by a new issue of money to the full value of-the goods, but there is surely the happy mean between this and our present policy of having no planned adjustment whatever of the supply of purchasing power to the supply of real wealth.
Velocity of circulation is a factor which has its importance, but as all money travelling back in payment of costs can achieve the purchase and consumption of no second unit of ultimate commodities, even if it passes through a dozen different hands in the process, too much must not be made or expected of velocity without adequate quantity.
Money• is not merely a certificate of indebtedness. It is also a claim on goods and services and can do its work for securing the utilization of goods and services just as well if it has not come into_eicistence in the first place as debt.
The gift " money issued under 'our scheme, or undetected forged money issued under the present scheme, can perform all the necessary functions of money as a medium of exchange and there-will be no rise in prices as long as the money has an adequate backing of goods and the ratio of desired goods to money is not disturbed.—I am, Sir, &c., The Place House, Peasmarsh, Sussex. TAVISTOCK;
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