DOUGLAS CREDIT SYSTEM

Greymouth Evening Star, 1 February 1934, Page 10

DOUGLAS CREDIT SYSTEM

“TYRANNY OF ADMINISTRATION.” [PKB PRESS ASSOCIATION.] PALMERSTON NORTH, January 31. Major Douglas was accorded a local

reception when he arrived at the Douglas social credit camp at Ashhurst this afternoon. The visit was only short, as he had to catch the express to Wellington. His address to the gathering was followed with profound interest. Mr. Douglas stated that many anxious eyes were looking at New Zealand from many parts of the world. That was particularly true of the people of London. In England, there was a powerful Douglas Credit organisation, that was growing stronger every day. Progress was also beingmade in other parts. There were large groups in Canada, South Africa, France and Norway, while the whole of South West Scotland was solidly social credit. In China and Japan also, the principles of the movement

were being put into operation. Mr. Douglas stated that particularly noticeable among those enquiring into social credit was the confusion of administration and policy. It was. commonly said that they were aiming at nationalisation of banks. That might be so, and it was just possible they might ultimately have to press for that, but as a body of those 'engaged in laying the foundations of a new world, they were primarily concerned with policy and not administration. That was the fundamental object which he must emphasise. There was very great danger of merely shifting one tyranny for another. “The thing of the moment that I want to avert is the danger of imposing the same sort of tyranny in peace time that was imposed on us during the war, namely tyranny of administration. It seems that at the present time there is a sort of dual control of human life in Great Britain and other Westernised nations, including New Zealand. We are under control of finance, which limits our economic possibilities, and are also under the control of the government restrictions of various kinds. If you were to nationalise the banking system, and leave the policy of that banking system as it is, you place undei’ one control these two tyrannies, and that would be a tyranny for which there would be no cure in times of peace. At the present time, we are under consideration or the bringing of the banking system under the powers of the Government, but if you have nationalisation of the banking system before any remedy is applied, you have created exactly the same state of affairs as when the French nationalised railways. There was immediately a strike on the railways, and soldiers were called out. That danger in some form or other will be present, and it is a real danger.”

If the present administration of bankers is so stupid, and so stubborn, that no other methods can be applied, they might have to run the risk of altering the administration. However, it was very frequently said by opponents -of any change in the financial system that it was absurd to suggest there was anything wrong with the financial system, because it was working at the present time, and because it was working it right. There was a very important answer to that statement, namely, the present finan-

cial system was getting continuously worse every day. “The very things they are saying as arguments against us are really arguments for us,” said Major Douglas. “The system did work tolerably well while the country was in the course of expansion, but no country is going to go on expanding. That very fact is one of the urgent reasons why there should be a change in the financial system, and because there is no change, there is danger of catastrophe cumulatively growing day by day. Mr. Douglas said he believed the signs of returning prosperity were being quoted as a reason for not doing anything about the present system, but really those signs were most ominous. They were signs of returning prosperity based, on expectations of war. There were people in New Zealand who believed 'their troubles were over, because the price of wool had risen. “I must tell those people that the rise is the result of Japan buying very largely for war purposes. 1 mention that in order to stimulate you to greater effort than before, because the time is very short.”

TOO MANY ENGAGEMENTS. WELLINGTON, February 1. Major Douglas has arrived at Wellington. The “Evening Post” representative was informed, this morning, that, the arrival was preceded by an urgent telegram from the organisers of the Douglas tour, emphasising the necessity of keeping all newspaper and other interviewers away from Major Douglas for the next few days, in order that he may be thoroughly rested before taking part in the Wellington engagements for the next week or two. The main engagements are a civic reception at noon on Wednesday, over which the Mayor will preside, ■and to which the Scottish element of the community has been specially invited, and a public meeting in the Town Hall on Thursday evening, when the. principles of the Douglas social credit scheme will be explained. Other engagements have been made for Major Douglas, but it is possible that some of them will be omitted.