SOCIAL CREDIT MOVEMENT

Evening Star, Issue 23270, 19 May 1939, Page 14

SOCIAL CREDIT MOVEMENT

Addressing a public meeting in the Douglas Social Credit Had, Dunedin, on the evening of May 17, Mr Poole referred to tne confusion that still exists in the minds of many people between a Socialist and a Social Crediter. He defined a Socialist as one who believes that industry distributes sufficient purchasing power to buy hack what it has produced, and, therefore, that there is enough money in the community but a maldistribution —in short, the poor are poor because the rich are rich, and the remedy is steeply graded taxation. Ho defined a Social Crediter as one who believes that there is insufficient purchasing power in the community to buy the goods and services that industry can produce, and that the gap between production and i

consumption can only bo bridged by an issue of new money. Mr Poole gave two main reasons for the return to power of the Labour Party in 19.‘35: (1) The general dissatisfaction caused by the depression ; and (2) the use by the Labour Party of Social Credit slogans. Much had therefore been hoped in the way of financial reforms, hut to-day with the floating of a new internal loan, we were still victims of the old system of orthodox finance, with its accompanying debt and taxation. Although a national accounting system would soon show Hint Now Zealand was potentially rich, yet her people were being taxed to pav oil' loans in order to keep going an obsolete monetary system. Mr Poole stated that 48 ner cent, of the rates goes to pay off loans, and ho also emphasised the 'burden of indirect taxation—more obnoxious even than the direct —because less obvious and there-

fore unchallenged. Discussing'the effect of saving—since we were now being exhorted to save by the Minister of Finance, Mr Poole suggested that the Government might be given an object lesson if the whole community decided at the same time to spend a mere fraction of incomes. He showed how, carried to its logical conclusion, saving would moan the crippling of industry, as the constant flow of money is absolutely necessary to keep the industrial system running. In outlining the Social Credit proposals Mr Poole was emphatic on the need for a national dividend. Lie explained that with the ever-increasing mechanisation of industry the dividend must progressively displace the wage, and he justified it further on the grounds that the people of a rich country should be rightful shareholders in the social heritage.