Banks crisis shows we need to control the money supply

AS those naughty bankers yet again throw around their “hard earned” cash to avoid their collective collars being felt by HM Constabulary, it’s worth remembering that we’ve been here many times before.

Indeed, it was one of the founding fathers of modern Conservatism, Sir Robert Peel, who brought the British banking industry to heel with the 1844 Banking Act.

It seems that in the decade before, those naughty bankers had found a wheeze. They could print money and lend it out. As greed is a natural vice of humanity, they began to loan too much, believing they’d make more profit.

Instead, the balloon burst and the economy collapsed with huge debts, massive unemployment and rising prices. Sound familiar?

The Conservatives decided this was enough and passed the Act which gave sole responsibility for the printing of our currency to the Bank of England.

Sadly, the Conservatives forgot about bank deposits. Nor did they know computers would one day be invented. Both of these tools are now used to “print” money and make massive profits. If you deposit £1,000, they lend £9,000 created by your deposit and it’s all moved electronically.

Our only way forward is to seize control of the money supply by amending the 1844 Banking Act.

However, the Tory party is roughly 50 per cent bankrolled by the industry and retired figures, which means they will never reform the industry to benefit our nation.

From: Godfrey Bloom, UKIP MEP for Yorkshire and North Lincolnshire.

IT is interesting that the FSA has expressed concern over the “culture” at Barclays. One might legitimately ask questions over the “culture” at the FSA where failure is handsomely rewarded.

From: Bob Watson, Springfield Road, Baildon.

IT was quite right that former Barclays chief executive Bob Diamond was questioned by Members of Parliament investigating the scandal over the fixing of the Libor rate, amongst other things (Yorkshire Post, July 5).

However, it also served to confirm how rude and obnoxious some of our MPs actually are.

From: Arthur Quarmby, Holme, Holmfirth.

THE bonus culture, established to reward exceptional performance/ achievement in banking circles but very quickly adopted by bureaucracy, rapidly becomes confirmed not as an occasional gift but as an automatic right, to be awarded (as we have seen) even in the case of catastrophic failure.

This culture is hugely damaging to the fabric of society – “if he gets it, why don’t I?” – and needs stamping out without delay. A 100 per cent tax on any bonus would do the job.