THE DOUGLAS PLAN

Press, Volume LXX, Issue 21123, 26 March 1934, Page 9

THE DOUGLAS PLAN

io iKr ic.io* :ur- JT.r-:--Sir.—As one of the non-combatant readers who heartily appreciate the freedom given to the raar.v who wish to discuss the pros and cons o£ tne above in your columns, I rr.v own word of warm commencKK.o.. of"ycr.r fairness to all. lam sure em one only of thousands of you. readers who value the pii\i.e a e to correspondents on both ~\ Whether wrong or righ.. tnc Do rtheorv obviously does J 0 * m ® r i* exaggerated contempt for .t - bv some of those protest ? to d. cuss- it. It will appear to , have lons ago passed t stqge on its merit 1 , e.e.i should not prove to be tnc ul , solution. 1 here are .. !llan > h Cl " bct;il spondents whose opposi'.ion nas dcl.. courteously expressed. and v. ho ■ f proved themselves keen studems . the vexed problem. povert;. mi .i.l midst of plenty. A literary deba l between protagonists 01 t.i.s - P t educative indeed, and a rea P\ ca -\;'.'-: to read. You have been paa cnt with ail. ~, rf i;. To-dav, "Q.E.D. gives. fui the i fication of those who had asked io. » fair statement of the Dougla.= P»an for New Zealand, the P an Major Douglas for acctlanci. Perh~p you could llso find. room lor a much briefer statement of a plan foi - - tralia, which is muca. neare. horn • It appeared in an Australian paper recently, and here it is for vn...it is worth: "The Douglas proposals aie ba. .1 upon the fact chat industry does not generate purchasing power at the s, ■> rate that it generates costs, that he itis accordingly a great and lncieasu-e. shortage of purchasing power m ic a tion to the goods and services oheu-. for sale. To bridge this gulf _ between purchasing power ana piodutv. capacity. Major Douglas has put v . t ward proposals wnicn the New S < \Vs!o S Douglas Social Credit Associate, should be applied .«> Australia broadly m v.c lw' o>u "-- » C Thc Commonwealth Dank Boaro to open a national credit account, accredit :t wit!, a sum reprcscn.insane financial value of all Australian 1 "Each year credit the account wn.. <he cost value cf all production, capital appreciation, and imports: and deb t it with all consumption, depreciation, and exports, in a proper system oi national bcok-keeping. . . "<2> The credit balance, or social credit of Australia, to be used as toi(b) To finance ail national undeitakings and services. (b) To pay a bounty on all primary exports in order to bring overseas prices up to the average, cost ot production (including profit) m Australia. .... . t'e) To pay a national dividend 'over and above wages) to every mam woman, and child, whether in worK or not. - <d> To reduce prices to consumers by means of a price subsidy, ensuring to vendors the recovery of ail costs of production and agreed margins of profit, thu§ preventing inflation ana Increasing the purchasing power oi money.

<c> To progressively reduce the national debt and remove the need of taxation. "All credits will be issued de'it free, and therefore interest free. They will be issued against the real wealth and productive capacity of Australia, and will not be taken from savings or bank deposits. I <f) The Commonwealth Bank to pro- | vide loan credit, free of interest, to ] local government bodies, manufacturers. farmers, pastoralists, etc., on ap- | proved security." [ It has been "repeatedly stated by. Douglas advocates that banking will ' be increased, and bank staffs will be 1 more numerous and busier than ever j under the new system, which prob- i ably helps to explain why about 80 per cent, of the l.ondon Bank Guild are supporters of the Douglas philosophy. Douglas writers also hint that J here are certain government high officials and many bankers, accountants, professional economists. a"d commercial editors, etc., most of whose names may not be prematurely divulged, who whole-heartedly give ;he_ proposal their approval. This looks as if the opposition is crumbling within the very citadel, if the assertions true. Nevertheless, there are certainly a large and consequential number in financial circles who do not yet approve. It is well for ! correspondents on both sides to face the real facts of the present world need, and the merits and demerits of the remedies suggested, without inveterate bins. What the long-suffer-ing public wants is not a heated and prejudiced faction fight, but an honest and sympathetic examination of every likely solution, even if revolutionary. The present monetary system is certainly a spectacular failure. —Ycurs. etc.. ONLOOKER. march 24, 10"4.