DOUGLAS SOCIAL CREDIT

Press, Volume LXX, Issue 21132, 6 April 1934, Page 15

DOUGLAS SOCIAL CREDIT

! TRADE AND MONEY • ADDKKSS 11Y M\{ I>. C HAVIK I 1 An address ~n Hie Douglas social ■ credit plan was delivered by Mr D. C. ■ Davie to about 50 members of the i movement last evening. | Mr Davie discussed at length the ap- | parent deadlock in the trade of the \ world and more especially of the trade j of New Zealand, and propounded his dilution, that the easiest and most leiTective wav to Rive access to wealth ! to all the people was to create money 1 and give it to those in need of it, not i as a loan, but as a gift. ! Social Credit Money ' Al one time it was believed that ! moncv was useless unless it was ' hacked bv gold, but that belief was ' gone, said" Mr Davie. There were still objections to any other system, however. "What value would social credit money have overseas?" was a favourite question. The answer was. "No value at. all." but it did not need to 1,.]•,<• any value: the money used at present did not have any value overseas if the whole question was taken ; literally. ' New Zealand purchased goods from | overseas by sending goods overseas. 1 New Zoala'nders travelled in Britain by exchanging New Zealand money for 1 Kriii.-h money: English visitors travelled in New Zealand by exchanging their money for New Zealand 1 money: American wool buyers wanted ; New Zealand money to buy New Zeaj land wool, and New Zealanders j -wanted American money to buy Ame- ; rican cars, and so the exchange went r :i. 1 !•" Xow '/,' aland notes wore not ivorih ;ni\t 11)11Li in England. America, or Japan l<>r purchasing uoods; they were only good for exchanging for i other money. The position was the ! same all over the world. I ConseoiK-ntly. it was ridiculous to ! suggest that social credit money would ! be valueless overseas and would prc- | vent trade and travel. The C'cnlriil Hank At the present time New Zealand . had a credit balance of £20,000,000 in i London, but it was of very little use to the country. The credit wac there j but the New Zealand Government had | agreed to indemnify the banks against j exchange losses. To buy the overseas I credits from the banks the Government ! had to boriow money from the banks, | so a central bank was to be estab- | iished to handle the exchanges. The ; central bank could buy the London j credit? by writing a cheoue on itself i and could invest those credits overseas. "in other words, the New Zealand pro- ; oncers are going to make the central j bank a present of £20,000,000 to kick ; off with," he declared.