Social Credit policy

Press, 3 June 1981, Page 20

Social Credit policy

Sir,—“Economists have always recognised explicitly that bank lending affects the money supply and that total bank lending is closely related to the level of bank deposits,” says Dr McCann. What is this close relationship? Are bank deposits the basis of bank lending or are they simply the end product of bank lending? Banks create credit, the Government creates credit, financial nonbanking institutions create credit; in fact every organisation or person who extends credit or transacts business on a pay later basis, creates credit. The basis of all credit is the assumption that somehow, somewhere there is “money” in some real form to give substance to our belief in “credit.” If we don’t know where credit all comes from or even what it really is, all forms of financial control are sheer illusion. — Yours, etc, JIM TIMINGS. May 28, 1981.

Sir,—ln answer to H. R. Peers’s criticism of Social Credit’s agricultural policy, Social Credit would assure farmers of meeting their costs of production and a reasonable profit on capital invested. Increased production over the previous three years would be tax exempt, thus providing a motive to improve efficiency. Assistance by way of low interest loans for farm purchase, irrigation, etc., would be available; taxation relief for housing; easing of death duties; tax deductions for farm workers similar to those already available to farmers would assist staffing problems. If these and many more policy statements made in 1978 and valid today show evidence that Social Credit has no recognition of the true problems of New Zealand agriculture, I would suggest a lack of ' communication between farmers and the league. — Yours, etc., R. J. AUTRIDGE. May 29,' 1981.

Sir.—l have just found in my letterbox a pamphlet headed “The Myth of Social Credit.” In it, I find the most naive piece of propaganda I have ever found in a political pamphlet. I quote “Overseas countries would not accept their home-made money in exchange for the foreign goods New Zealand relies on.” Surely the National Party is not suggesting we now buy overseas goods with New Zealand banknotes? I am not a Social Creditor but I find such propaganda an insult to the intelligence of the average voter. — Yours, etc., T. R. RICHARDS. May 30, 1981.