THE A PLUS B THEORY

New Zealand Herald, Volume LXX, Issue 21553, 26 July 1933, Page 13

THE A PLUS B THEORY

Sir. —At length Colonel Closey has defended this theory at the length of a column and a-quarter, and his effort brings vividly to my mind a remark attributed to Sir Oliver Lodge, wherein he confessed that lie did not understand relativity and he was certain that Einstein did not. T cannot comprehend what Colonel Closev is driving at and I feel sure he does not know himself. Now the A plus B theory claims that it is essential that those engaged in a factory he put in a position to purchase the whole of its output. Let us suppose that the work of the factory adds 50 per cent to the value of the goods which it processes. It is plain that, of the value of the resulting goods, the work of that factory has produced onethird. A greater man, Major Douglas, has stated an eternal truth in the axiom that the whole is greater than its part. One-third cannot purchase the whole, Douglas or no Douglas. But the gallant major proposes to achieve the impossible by the issue of vast quantities of paper tickets to all and sundry without an equivalent of labour or anything else. And he cannot even say what words he is going to print on these tickets! Could anything be more childish and unpractical? Douglas Credit Socialists are for ever harping on "costless credit," stating that money is created merely by writing figures on paper. There is sufficient of apparent validity in this to deceive the unthinking. But if these figures are written except for value and in support of legitimate business they will soon bring all concerned to ruin. If 1 s 'K n . a . missory note in support of a legitimate trade in goods T create good money. That paper is good «ind discountable. But if I sign a promissory note merely to oblige a friend, that is accommodation paper and is valueless m the markets. And Douglas Social Credit paper, issued without consideration, would have exactly the same valuenothing. Again, I would remark that it is by no means necessary that those encaged in a factory should buy all its output. There are many other buyers not engaged in manufacture those despised and neglected folk the consumers. LaHI-K V AIL*,.