WAR AND INFLATION
May I correct a most inaccurate statement of Mr. Johnstone when he says that Major Douglas proposes.to pay money to consumers. The true position is as follows: A national credit board, with full authority, is set up to ascertain, inter alia, the gap between costs of national production and our incomes. That gap will be monetised under the direction of the board a.nd paid to the credit of the New Zealand Government, who will then be in a position to subsidise the retail seller, not the consumer, on condition that the seller reduces his price by an ascertained amount. Whatever Douglas' crimes are, inflation certainly is not one of them. Curiously enough, on the advice of Lord Keynes, the British Government is subsidising the retail seller by taxation money, which itself causes inflation, on condition that he does not raise his price, thereby using inflation to stabilise. It seems to me that an attempt is being made to put out a fire by throwing kerosene on to it. H. S. WINTHROP.
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Auckland Star, Volume LXXV, Issue 290, 7 December 1944, Page 4
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174WAR AND INFLATION Auckland Star, Volume LXXV, Issue 290, 7 December 1944, Page 4
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