DOUGLAS PROPOSALS.

Evening Star, Issue 22350, 28 May 1936, Page 14

DOUGLAS PROPOSALS.

TO THE EDITOR. Sir, —Your correspondent “A ” is most unfair in his assertions and inferences in connection with my criticism of the Douglas proposals. Ho knows quite well that I have on many occasions during the last few 'years made it quite plain that I agree with the Douglas supporters that most of our troubles are of a monetary nature. He knows quite well that my difference with them is on the question of what “ money ” really is. To class money and credit instruments as the same is utter nonsense. If credit instruments could be made to perform the same function that money does and have the same effects on the people I should have no hesitation in supporting a more extensive us© of the credit instrument along certain linos! But let me inform my friend “ A” that while he writes and talks of credit, both Major Douglas and Mr Sherwood definitely talk in terms of money being “ created.” In my letter of Monday I asked four questions, three of them arising out of statements made by Mr Sherwood. A sensible and correct answer to these questions shows immediately and clearly the absurdity of adopting the Douglas proposals in New Zealand. It is shown by the exchange rate that New Zealand is working on an inflated currency. In the words of Mr Sherwood we have more money than goods. In spite of this fact Mr Sherwood and our Douglasites have the audacity to a further increase. Now, seeing that the raising of the exchange by the Coalition necessitated the creating of new money—legal _ tender—and that it resulted in a rise in the cost of living to the people of New Zealand and a lowering in the price of our exports on the London market, is it not logical and sound argument to say that an extension of the principle of creating new money as advocated by Douglas and Ur Sherwood and our local advocates would result in benefitting Britain and be disastrous to the workers of New Zealand? I have asked Mr Sherwood to answer four questions which are of vital interest to all who wish to understand the Douglas proposals. If he is honest and sincere in his professed belief that the Douglas proposals are in the best interest of the country he will not be afraid to give an answer through your columns. In conclusion, may I inform “A ” that I do not doubt the sincerity of the Douglas supporters, neither do I doubt that they have men and women in their movement who are as brainy, if not more so, than myself.; .What I believe

is, they are making a big mistake in thinking that what would be -a good thing for Britain will be a good thing for i\ew Zealand.—l am, etc., C. M. Moss. May 23.