FINDING THE MONEY

Evening Post, Volume CXXI, Issue 83, 7 April 1936, Page 7

FINDING THE MONEY

(To the Editor/!

Sir—Under the heading "Where Will the Money Come From" Mr. Robson makes certain statements which are logically untenable, consequently his -whole argument of Social Credit falls to the ground. The first statement is: "New Zealand's present production and productive capacity is greater than the community's present purchasing power, and that there-' is therefore, a credit balance in terms of real wealth—that is, in terms of goods." (His use of the wprd "real" in reference to wealth is redundant, as if wealth is not real it is not wealth.) Nearly- all the wealth produced in New Zealand is quickly perishable. In this circumstance I fail to see where this surplus or credit is held and who holds it. I am not referring to the credit in the name of the New Zealand Government lying in London. For instance, a farmer produces milk which he takes to the factory. There he is credited with its value' as milk, for which he receives in good time, money.' The whole of his production is monetised to that stage. Follow that milk through to the consumer who buys it as butter, and it will be seen that each stage is valued and monetised. So.it is with all production", the producer at each stage receives in money what' Value he has added to the raw material .on its way to the consumer. Thus far I have demonstrated that consumption equates with production. Each can buy back goods to the value of what he himself has produced. I krfow that there is poverty and great difficulty in earning a living, but the supposedly non-monetising of wealth is not the cause. Assuredly the producer at each stage receives the full value in money of what he has produced, -whether he ,is.allowed to enjoy the whole of it is. another ques tion

lion. ... - The second statement deals with financing Public Works, etc. The answer to "Where is the money to come .from?" is supplied by Mr. Robson. He says it will come, from Social Credit. Credit can only come from wealth or in prepayment of the production of future wealth (mortgaging ahead),'■ and what is termed "Social Credit" is the aggregate of individual wealth production and individual wealth is private property at present. I do not say that the socialisation of private wealth cannot be done for a time, I merely point out that it would amount to .State seizure, and this would tend to still greater poverty. All similar ideas to that of your correspondent spring from the belief that money is wealth, although most of the believers would violently deny holding any such stupid notion, it is this false conception of money which leads to .schemes which have for their pivot the "monkeying with ■ the currency." ' A pound'note is not wealth, if,is merely a • claim on wealth., .In reality it should be, and in most cases is, a certificate showing that the holder has performed certain labour of certain social value. This certificate may, of course, be held rightly or wrongly. The fact that.money is contracted and expanded by bookkeeping, ■ controlled by. Governments, does not alter the fact that such "monkeying with the currency" is dishonest. I would suggest that Mr. Robson think out the facts and cause of poverty and face up to them. —I am, etc., E. W. NICOLA US. ■ Wellington, April 6, 1936.