THE DOUGLAS ANALYSIS

Evening Star, Issue 21147, 6 July 1932, Page 3

THE DOUGLAS ANALYSIS

ADDRESS DY MISS KIND

The .Returned Soldiers’ Club social hall was filled last night, when Miss M. H. M. King delivered an address on ‘ The Douglas Analysis.’ The president of the Returned Soldiers’ Association (Mr P. S. Anderson) was in the chair. Progress in the art of living, said Miss King, consisted in bringing more and more of the phenomena of existence within the scope of the-understanding. While we failed to understand the conditions that brought about certain effects we had only two alternatives—prayer to some outside power for deliverance. which was not on the whole a very hopeful undertaking—or submission without even a prayer to what we termed our fate. It might be that the true answer to prayer was increased understanding. The World War was well over in its military aspect before any really searching analysis was made of the conditions out of which it sprang, and to the alteration of which wo must look before any assured prospect of peace could dawn upon the world. So far the “ war to end war ” had only been continued in a different form, and that despite much effort, most of it sincere enough, after international goodwill, and the fight “ to make the world safe for democracy ” had, despite the victory of the Allied cause, been followed by conditions of widespread misery, with consequent social discontent that was rapidly undermining the loyalties and the morale that were the foundation of civilised life. In accordance with the idea from which we started progress must mean in this sphere a clearer comprehension, of the causes producing these effects, for, obviously, unless wo had identified the cause or diagnosed the disease correctly, wc could not apply the cure. It was, then, interesting to know that the diagnosis now becoming famous as the “ Douglas Analysis ” came from the activity of an independent mind working upon conditions during and after the war. The foreword to ‘ Economic Democracy ’ described the book as an attempt to disentangle from a mass of superficial features ... a sufficient portion of the skeleton of the structure we call society as will serve to suggest sound reasons' for the decay with which it is now attacked; and afterwards to indicate the probable direction of sound and vital reconstruction. It was also interesting to note in passing bow many* of the prominent writers who followed in Major Douglas s footsteps were men who had seen war service. It was a mistake to think of the Douglas analysis merely as a new theory in economics, and still more so to envisage it as a scheme lor the reform of the present money system. It was first an examination of the philosophy. upon which the existing structure of society was built and of the motive or force at work in its mechanism; and, secondly, it was an analysis of the financial' system as the instrument by means of which that motive power gave expression to the philosophy by which it was inspired. The Douglas analysis disclosed the structure of society as framed to procure centralised control, the expression of the will to power, involving everywhere the subordination of the individual to the group and enforcing its decrees by means of a system of rewards and punishments that was a distorted reflection of the truth in the relation of cause and effect. The existing financial system Douglas found to be an almost perfect instrument for the enforcement of this system —not a mechanism for the distribution of goods and services, but a system of government, and as a system of government it was more and more emerging into the light of day. The centre of gravity of world affairs had shifted from Parliaments and embassies to bank parlours and board rooms. The lecturer then entered upon an analysis of the financial system, stating that moyiey is honoured by the community and received its value from the willingness of the community to receive it in exchange for goods and services. The cause of the existing industrial depression and consequent unrest was financial—that was, it was duo to money relationships which were governed primarily liy the financial system, and, secondly, by financial policy, f The inherent defect of the system was mathematical, producing an increasing gap between total prices and total purchasing power in any credit area. Any effective remedy must traverse the claim of the banking system to the ownership of the credit system which is administered. In virtue of that claim the existing financial order was able to control and manipulate the activities of the community to its own ends. This was illustrated by incidents in the history of war and post-war finance.

At the conclusion of her address Miss King was accorded a hearty vote of thanks.