“Paper Gold”

Press, Volume CIX, Issue 32120, 16 October 1969, Page 12

“Paper Gold”

Sir, —If Mark D. Sadler had read with an unbiased mind other letters he would have noticed that one of the fundamentals of Social Credit is an equation between money and goods. This I have explained year after year for 30 years and answer his question again. For “A. B. Cedarian’s” biased nonsense in regard to inflation, let him answer this: “How can a reduction in prices caused by the compensated price discount of Social Credit cause inflation?” Those two fundamentals are the definite answer to the inflation caused by other parties, and

if voters do not elect a Social Credit Government, inflation with increased rates and taxes will continue just as Karl Marx recommended as the best way to ruin the free-enterprise capitalist system and impose his own Communist slavery.—Yours, etc., F. W. STEVENS. October 15, 1969.

Sir,—Replying to “Unconverted Student,” imports would be stepped up to the maximum capacity of the country by subsidising the producers. All loans, except privately owned ones, would be repaid as they became due by the same created money they originated with. The interest saved would transform our economy. Our National Debt alone costs over $2 million a week. All out of nothing. Inflation (an erroneous term) is caused by repaying to banks, by principal and interest. more than they create, an arithmetical impossibility. Interest can only come from subsequent loans. Quite a vicious system.—Yours, etc. C. E. CULLEN. October 14, 1969.

Sir, —While critics conjure up reasons why Social Credit financial methods must fail, the fact remains that managed currency, “paper gold,” or debt-free methods of finance have produced results that confound prophets of woe. We have incurred debt to equip the latest electricity generating plant at Manapouri for which we pay Germany 7J per cent interest. Call this mismanaged currency. Germany learned under Hitler the lesson of misusing managed currency. Physical results were awful to both sides. Germany lost the war and the burden of debt. The Allies survived, with the burden of debt, while Germany profited by turning managed currency

I methods to useful purposes. She restored her ruined cities and factories to produce | goods for peaceful purposes. Ilf other peoples cannot learn the same lesso.i, they have themselves to blame if they have to pay interest to Germany, which seems to have won a worth-while war of another kind, with paper.— Yours, etc., W. B. BRAY. Leeston, October 14, 1969. Sir,—Mr Cullen invites suggestions to improve on Social Credit's plan for financial management “on the lines of our judiciary," which would need a Government department to implement its decisions. The Justice Department has a large staff, prison warders, bailiffs, etc., but the department Social Credit would create to deal with all the ramifications of trade would have to be enormous. It would also be very highly priced. Even so, the affiliation of the Federation of Labour and Public Service Association could empower it to down files and so topple the cracked pillars of Social Credit, a Samson-and-Delilah affair. My suggestion to Social Credit for embellishing the quaintness of its plans is, be sure to include on the board of the “national credit authority” a specialist in | bankruptcy law and, to satisfy; the “managed currency” I curiosity of the likes of Mrj Bray (who falsely states that; Bonn pays nothing for Brit-; ish garrisons), an immigrant; pupil of the war criminal, Dr Schacht.—Yours, etc., A. B. CEDARIAN.

October 15, 1969. Sir,—“Blind Faith” will have to come up with something better than ridicule if he wishes to stop the growth of Social Credit. When he refers to “Alice-in-Wonder-land” debt-free funny money policy, I would remind him that a National M.P. made a similar remark in an advertisement in a suburban newspaper. When this M.P. was publicly challenged to debate the remarks, he discreetly side - stepped behind the scenes. If “Blind Faith" kept his mind on his job he would not say that Mr Cullen is incorrect to call S.D.R. “paper gold.” The managing director of the 1.M.F., Mr Pierre-Paul Schweitzer referred to S.D.R. as “paper gold.” Is he incorrect also? “Blind Faith” must know that Mr Muldoon said in Parliament that he was a better Social Crediter than Mr Cracknell, because he intends to use the “paper gold.” If it is good internationally, then why is it so wrong nationally?—Yours, etc., SIX-OR-HALF-DOZEN. October 15, 1969.