COSTLESS CREDIT.

Manawatu Standard, Volume LIII, Issue 256, 26 September 1933, Page 6

COSTLESS CREDIT.

(To the Editor.) Sir, —The bare outline of the proposed issue of producers’ credit made by Mr W. J. Poison at the Rotary Club’s luncheon yesterday should be of general interest to all sections of the community, as it follows the principles of the ‘Douglas Social Credit” proposals more closely than other suggested monetary reforms, but, as Mr Poison states, this scheme has its imperfections, the most striking of which is that it does not provide that the issue of credit must be sufficient to fill the gap between purchasing power and cost of production, and any issue of credit that does not follow this course can only prove at the best a palliative, and can have no power of permanent stability. It may be confidently stated that there have been many schemes propounded for a reform of the monetary system, but the only one that is now universally supported to fit the bill is the analysis put forward by Major C.*H. Douglas; this has all the banking economists working overtime looking and striving to find a legitimate way to sweep aside this movement of social credit, but one after another they have been forced to capitulate, not being able to overcome the economic fact, “that the real cost of production is the power of consumption,” and that there is not sufficient purchasing power to purchase the product of any industry at any given time. The means of. overcoming this difficulty was discovered by Major Douglas by the issue of costless credit issued against goods actually sold, thereby making it possible for all people to benefit by increased production, “not less for some, but more for all.” Such a monetary reform has the outstanding advantage of increasing the national wealth without depriving any section of the community of their personal wealth. —Yours, etc.,

PROGRESS,