As if Quantitative Easing wasn’t enough, the Blogosphere is buzzing with the notion that the Government should use a financial aid tactic called the Bradbury Pound.
Apparently in the summer of 1914, the Government issued Treasury notes signed by John Bradbury to avoid a run on the banks. It was literally a licence to print new money for infrastructure investment.
Reviving this notion seems a bit of a crackpot idea to me, but, people are putting a lot of effort into making a case for it in the run up to its 100th anniversary.
Whilst Government spending on infrastructure is probably more desirable than just expenditure on current activities, surely, total expenditure still has to be controlled and restrained?
There are those who want the Treasury to start issuing interest-free money, based upon “ wealth, integrity and potential for the country”.
They say such an initiative would completely remove the hold the banks have over the nation and would kick-start a productive economy.
Whilst it is galling that at present Banks appear more interested in building up their own balance sheets and profits than helping businesses, the alternative of some sort of nationalised bank is even more worrying to me, as no government has ever shown it is capable of running a business. But, there is a politically driven petition going the rounds to raise 1000 signatures to get a debate in the House of Commons.
In my opinion one of the best things the Government has done lately to make business life easier is to make funds available for Peer to Peer lending groups rather than just to the banks. I suggest you check this out too. That makes more sense to me. For details about this Bradbury business check out the rather jingoistic stuff on the internet. There’s a good bit of video footage on YouTube above…
Carla Delaney Communications
Business Writer of the Year Award Winner