“Paper Gold”

Press, Volume CIX, Issue 32126, 23 October 1969, Page 14

“Paper Gold”

Sir,—lf Mr Sadler received in his mail “an incredibly abusive and nastily personal letter from one of the Social Credit participants” in this letters-to-the-editpr debate, as he alleges, then I wish to apologise to Mr Sadler on behalf of all the rest of the Social Crediters of Christchurch, who would not dream of offering abuse to any member of the community who wishes to express his opinion freely, regardless of the validity of the opinion expressed. However, I can assure Mr Sadler that his challenge to debate Social Credit’s election policy is certainly accepted, and he should know by now there is no need to "dare” the Social Crediters to accept such a challenge. If Mr Sadler would like to communicate with me, I will be only too pleased to assist him in arranging the details of this debate.—Yours, etc., G. M. EDMONDS, Publicity Officer, Canterbury Regional Council, N.Z.S.C.P.L. Otcober 22, 1969.

Sir,—So R. G. Dickenson knew all the time, or thought he did. Unfortunately he made no allowance for debt repayment by which money is cancelled nor for interest on debts going back over a hundred years. So great is this that if all money was directed to debt repayment, the reduction would not be noticed, a huge debt would remain and no money at all. According to Hansard, it was Mr Muldoon who said that the S.D.R. was Social Credit. Social Credit would maintain a state of “equation” in which consumer demand would be satisfied and excess exported to liquidate overseas debt and to provide for what we could not produce ourselves. Any businessman or housewife will confirm that people do not have enough money, much less too much. “Whipping of the cat” refers to regrets for opposing just what was wanted all the time—economic security for all, as of right.—Yours, etc., C. E. CULLEN. October 22, 1969..

Sir,—This correspondence is not without humour. Writers have tossed in old bikes, adultery, cats, and now inflation! R. G. Dickinson has overlooked the following facts: (1) The so-called national income is made up of bank credit earning interest for banks. (2) Bank expenditure, the only source of debt-free money available, is lost when borrowers pay interest on bank credit. (3) The total amount of wages paid for production does not equate with the total of retail prices. (4) Time payment is used in an effort to close the gap between wages and prices. R. G. Dickinson defines inflation as too much money chasing too few goods. We have had inflation for years but I cannot see any empty shelves in my shop. Interest, on money at its source, waters the financial pint until it becomes a quart—inflation. —Yours, etc., A. GREIG. October 22, 1969.

Sir,—"Common Sense” questions the motives which govern control of currency. Unless those who control it

are scoundrels, the basic motive must be to make it vigorous and preserve its ability to function. It is dangerously nonsensical to believe that control of currencies lies in the hands of Shylocks. “Common Sense” thinks it would be easy to issue currency just for the exchange of local skills and local goods. If this were not to be a chaotic hand - out, discrimination would be necessary, and to make that valid widespread bureaucratic currency control is necessary. Such control would laboriously reduce productivity as has Cuban Marxism. The right way to make money is not with a printing press.—Yours, etc., A. B. CEDABIAN. October 22, 1969.

Sir,—“Unconvinced Student” has a long way to go before he wins his diploma. If he wishes to twist Sir A. Vicker’s statements, let him try this: “Some day, if sounder counsels prevail, it will be realised that the main purpose of international trade is to import the necessities and luxuries desired; and the purpose of export is to pay for them. This is diametrically opposed to existing orthodox thinking and practice.” Under the present system exporters are unable to obtain sufficient incentives and capital to export the goods the country is capable of producing. Social Credit will maintain the right amount of money in circulation so as to enable the full resources of the nation to be used. Overseas loans will then be reduced and repaid with trade, and not as previous governments have done by further borrowing.—Yours, etc., SIX-OR-HALF-DOZEN. October 22, 1969.

Sir, —Mr Forster and Mr Cullen release their diatribes against opponents of their system to close the ranks of their supporters and fight these nasty people. Immoderate outbursts will only discourage more level-headed people, and confine Social Credit to an ever-faithful group of people. These opponents of Social Credit have no axes to grind and are only interested in guiding readers (other than staunch Social Crediters) through the mire of cliches, analogies, and slogans which hide some of the more worth-while parts of the Social Credit policies. -“Yours etc. UNCONVINCED STUDENT. October 21, 1969.

Sir,—The “paper gold” of Social Credit is a votecatching myth created by a group of financial wizards. If Social Credit were sincere in their desire for monetary reform, Mr Cracknell would have introduced a private bill in the House to try to implement Social Credit policy. Social Credit condemns the present banking system, and yet it puts its funds in banks and receives interest. In 1934, a committee set up by the New Zealand Government described the submissions of Major Douglas as worthless.— Yours, etc., DISILLUSIONED NATIONALIST. October 22, 1969. [This correspondence is now closed.—Ed., "The Press.”]