DOUGLAS SOCIAL CREDIT SCHEME.

Evening Star, Issue 20980, 19 December 1931, Page 20

DOUGLAS SOCIAL CREDIT SCHEME.

TO TUB EDITOR. Sir, —I am reading Mr Lloyd Bosses criticism of tlie Douglas social credit system, and it seems to me that he is taking a long time to reach the point. It seems to me that Major Douglas and his friends here in Dunedin aro subject to “money fetish-

ism.” The real nature of money is to them a mystery, a fetish, before which they prostrate themselves m superstitious veneration, attributing to it miraculous powers to cure ail social ills. By means of printing “ tickets ” (money) everyone will be able to share in the “ banquet ” (social production). Money will be regulated according to the mass of commodities to ensure that production will be equated by adequate provision for consumption. The class struggle will disappear from society, and all sections —owners and workers —will receive a just share and be happy and contented. For the benefit of the champions of the system in Dunedin X must state a few elementary facts which do not support their misconceptions:—Commodities exchange according to the amounts of social labour which they contain. Money is that commodity which is universally accepted as the equivalent for all other commodities. Money can function thus only because it contains labour, like all other commodities. Experience over a long period has resulted in gold becoming the money commodity because of its special qualities; it is durable, it comprises a relatively large amount of labour in a small quantity (compactness), it can be divided and reunited at will without loss. In its capacity as a means of circulating gold can be represented by tokens, including paper money, but, unless real money is in existence, there could not exist its representative, paper money. The amount of money in circulation is determined by the total sum of prices of goods exchanged divided by the average number of times each piece of money serves in exchange. Should the rule that paper money must serve only as a representative of real money be broken, and should additional quantities of paper money be thrown into circulation, then we have inflation (decrease in the value of currency expressed in a rise in prices). To humour the champions of the Douglas credit system, letiis assume such a stage is reached. Who suffers? All those depending on money incomes, and particularly the wage workers, are impoverished. To humour them further, let us put forward the proposal that the class of owners would be prevented by law from raising prices; that the capitalist class would be compelled bo exchange goods possessing certain quantities of labour for amounts of inonev representing much lesser quantitiesVf labour. Then, disregarding the fact that the capitalist class is rite State, the makers of law and Constitution, we arrive at a stage when the capitalists would stop production, a* capitalist production is carried On far profit and not to satisfy social needs.— I am, etc., M. O'R. December 18.