DOUGLAS CREDIT

Ashburton Guardian, Volume 54, Issue 95, 1 February 1934, Page 3

DOUGLAS CREDIT

AUTHOR'S EXPLANATION. WAR DANGER AND THE WOOL MARKET. fSpec-ial to the "Guardian.") PALMBHSTON N., January ; 31. Major Douglas was accorded -i hearty reception when ho arrived at the Douglas Social Credit Camp, at Ashhurst, this afternoon. His visit was only a short one as he had to catch the express for Wellington. His address to the gathering was followed with profound interest. Major Douglas stated that many anxious eyes were looking to New Zealand from many parts of the world That, was particularly true of the people of London. In England was a powerful Douglas credit organisation that was growing stronger every day. Progress also was being made in other parts. There were large groups in Canada, South Africa, France and Norway, while the whole south-west of Scotland was solidly social credit. In China and Japan, also, the principles of the movement were being put into operation. Major Douglas stated that particularly noticeable among those inquiring into social credit was confusion of administration.and policy. It was commonly' said that they were aiming at rationalisation of the banks.. That might be so, and it was just possii ie that they might ultimately nave to press for that, but as a body of those engaged in laying the foundations of a new world they were primarily concerned with policy and not administration. That was the fundamental object which they must emphasise. There was very great danger of merely shifting one tyranny for another. Two Sets of Tyranny. < ; A thing of moment that I want to avert is the danger of imposing the same sort of tyranny in peace time that were imposed on us during the war, namely, the tyranny of administration," he said. "It seems that at present there is a sort of dual control of human life in Great Britain and other Westernised nations, including New Zealand. We are under the control of finance, which limits our economic possibilities, and also under the control of Government restrictions of various kinds. If you were to nationalise the banking system and leave the policy of that banking system as it is you place under one control these two tyrannies, and that would be a tyranny for which there would be no cure. At present we have under consideration the bringing of the banking system under the powers of the Government, but if you have nationalisation of the banking system before any remedy is applied'you have created exactly the same state of affairs as when the French nationalised the railways. There was an immediate strike on the railways and soldiers were called out. That danger in some form will be present, and it is a real danger." If the present administration of bankers was so stupid and so stubborn that no other methods could be applied they might have to run the risk of altering the administration. However, it was very frequently said ( by the opponents of any change in the financial system that it was absurd to suggest that, there was anything wrong with the 'financial system, because it was working at the present time, and because it was working it was right. There was a very important answer to that statement, namely, that the present financial system was getting continuously worse every day. Ominous Signs. "The very things they were saying as arguments against us are really arguments for us," said Major Douglas. The system did not work tolerably well while the country was in course of expansion, but no country was going to g 0 on expanding. That very fact was one of the urgent reasons why there should be a change in the financial system, and because there was no change there was danger of catastrophe cumulatively growing day by Major Douglas said he believed the signs of returning prosperity were beuZ quoted as a reason for not doing anything about the present system, but really those signs were most ominous. They were signs of returning prosperity based on expectations of war. There were people in New Zealand who believed their troubles were over because the price of wool had risen. "I must tell those people that the rise is the result of Japan buying very largely for war purposes," he said. "1 mention that hi order to stimulate you to greater effort than before, because the time is very short."