'To the Editor of the "Nomu-Cuina Dany News'
'Sin—The article in your issue of Jdune 4 by Viscount Snowden is interesting because of the very vital points that are not touched. 'The Statement that in March, 1933, affairs: were so. desperate, 1s nonsense, fun-amentally. The US.A. was' ino really. magnificent position, with almost limitless possibilities of pro-Jduetion and consumption. Famine and Jarought can make a situation deserate, but surely plenty and poten Hlat abundance cannot, except to inverted minds.
Viscount Snowden tells us that farms alone were mortgaged for twelve thousand million dollars. To set against this £600 million was re~ Teased via public works, say dollars: 3,000,000,000, Just a quarter of the: previous farm debt. I, for one, Wonder how much of this sum has disappeared into the "bank. ing system by the repayment jot' farm and similar debts. In other words, it is possible for all have been so disposed, in which case little or no effect would be felt in the commodity market and the banking system would have exchanged a consumer debt for a government debt.
To attain any lasting effect the essential is to cancel out all bank ereatfed debt and to ensure that the consumer receives an issue of costless money. This would raise prices.
The fact that in USA, about halt {he population are living on Govern: ment borrowed money is sinister but. not in the sense Viscount Snowden means. Tt is sinister because it borrowed money and not Govern: ment money, since borrowing creates debt, which is illogical, unnecessary futile, anti-democratic, damaging to the country and antagonistic. to the Jenjoyment of the discoveries and abilities of mankind.
Shanghai, June 7.
W. Pennerr.
Text read from the printed page and cleaned; old type leaves the occasional error.