“LABOUR’S FALLACIES”

Nelson Evening Mail, Volume LXXI, 17 November 1937, Page 9

“LABOUR’S FALLACIES”

ITo I In- Editor) Sir. Labour lias now been in office almost two years, pitchforked into power hv an unthinking minority, some of whom, no doubt, sincerely believed that the stupid, impossible promises of Labour's platform could, in fact, be carried out. The depression has produced (he usual "flotsam and jetsam" of cranks and hopeless visionaries. Tims we hear of "costless" credit, changed by some now to "public” credit. We hear also that "unemployment is a sign of progress,” that hanks do not. loan their deposits (we can expect soon to he told that cows don't give milk) and Major Douglas still has a following. I will not waste time on Major Douglas except to say that, for about ten welds "work" in Alberta the government there paid him ten thousand dollars in real money, not in costless credit or Abcrhart scrip, and then Major Douglas got far away from Alberta. The latest promise made by Labour which cannot he carried out is the "equation” theory. Money is or was to "equate” productions. Wc arc going to see to it, said Mr Savage, that if the people can produce goods, the money to pay for same will not be lacking; and at tiie Imperial Conference Mr Savage spurned the very idea of a stable currency; our currency or our monetary system, he said, is to be our base of production. Now, sir, llie lie that has a bit of truth in it is said to be the blackest lie of all. And so it is in many respects that this "equate” idea is the biggest lake of all. We all know, of course, that behind money there should be value in the form of work and production, but only a shallow brained costless credit crank would suggest that money should blindly be equaled to production with no regard at all to the inexorable law of supply and demand. On page 8 of the "Evening Mail” of flth November, we have a classic example of the dilemma the Government finds itself in with regard to the footwear industry. Wc read of 100 employees in one firm working only three clays a week; another firm dismissed 10 hands, and working the remainder half time; another firm dismissed 31, another 70, another 80, another 32, and then 9, and so on. Further on we rend a radio parts manufacturer had to dismiss 62 out of a staff of 107. What a glorious opportunity for “equating.” Why does Mr Savage not keep his promises? Here we have hundreds being thrown out of work when all Mr Savage has to do is to gel his "equator” busy.

I have askccl why Mr Savage does not ;eep his word and I w.„ M ,wcr it nysclf by saying he simply can’*; it is ike many of his other promises, it is mpossible to carry it out for he is up gainst stark facts. I once used the term "six year old noron” in regard to the mental outlook if some people, and I will say again . six year old moron would not sug- ;• t the equating theory as a solution if the unemployment problem. Called into action, what does it mean, imply inflation and unbridled meaningless production without regard to the one immutable and ever unchanging law, viz, the law of supply and demand. What a costless credit “equatorial" fools’ paradise we would find ourselves in if this silly equating theory was carried out even for six months. The boot-makers could get busy and manufacture two dozen or more pairs of footwear per capita per annum, the tomato grower could grow tons of tomatoes per capita per annum, the apple, peach, pear and grape grower could do likewise, the undertaker could lrufkc a dozen coffins iconic and pick your choice before you die) per capita, the jeweller could turn out a dozen watches and a score of engagement rings per capita, plus a dozen cuckoo clocks for every home. The motor care manufacturer could go on manufacturing cars away beyond the demand, six to every home would be nice, and so on and on, and everyone send in their bill to the ‘'Equatorial" department of the Prime Minister, and he would see to it that once he waved his magic wand, his “equating" rod, the money would be forthcoming to pay for this production.

One wonders just how long the people will stand for this unadulterated rubbish being dished up to them. The four and six year old child is not fooled when lie secs the conjuror apparently take rabbits out of a hat. No knows finite well it is a clever trick of a legerdemain, but strange to say, the forty year old and sixty year old child, fortunately not many of them, can fool themselves into believing that Hie impossible is possible, that thrift, honesty and hand work must go and be replaced by loafing, dishonesty and quackery. Let us hope the people will see the truth inside twelve months.—l am, etc., "PLAIN FACTS.” Nelson, illli November.