Edition Bobbett1. Texts by Elizabeth F. Bobbett: 1.1.3. Correspondence, Letters to newspapers

1953 Elizabeth Bobbett: Letter to the Wicklow People, 21.03.1953

Bankers Question Cause of High Taxes

Mr. G. F. Klingner, Chairman, Royal Bank of Ireland Limited, speaking at the annual general meeting in Dublin of the Institute of Bankers in Ireland, is reported as saying: “It was very difficult to see any justification for such high rates of taxes as were now imposed on this country. Could they dare hope, he asked, that whatever Government was in power they would make a really serious effort to effect reductions in taxations of all sorts. If this was done it would have a far greater effect in stimulating industry and commerce than many of them realised.”

While expressing satisfaction at the improvement in the balance of payments in 1952, he warns of the danger that such a position may not continue, and in the event of increased imports in the next year or two, points out that we would again be faced with the problem of balance of payments deficits unless there was a substantial increase in exports, almost all of which must come from agricultural sources. I don’t for a moment doubt the sincerity of the gentleman’s statements, but is he so innocent that he does not know the causes for such high rates of taxation? Would he find out and publish in the papers how many millions of pounds are collected in taxes and rates for, say the years 1950/1951, to meet the interest to Banks on Bank Created Credits to the Government and to Local Public Bodies? Will Mr. Klingner deny that under the Tonnage Act of 1694 a provision of that Act is “The Bank hath interest on all money which it creates out of nothing.” A further Act in 1844 called the Bank Charter Act maintains and intensifies the power of those who create, issue and control money.

As long as this country continues to use a financial system which allows the credit of the country to be used by private Banks to create Credit at Interest, we cannot hope to reduce National and Local Debts and therefore taxation. The Credit of the country should be used for the country’s needs and not for private profit. If this huge load of debt collected through taxation and rates to meet interest on Bank Created Credits was wiped out, it would lift a great burden from the people and thereby reduce costs of production and reduce prices and the cost of living.