DOUGLAS CREDIT

New Zealand Herald, Volume LXX, Issue 21560, 3 August 1933, Page 12

DOUGLAS CREDIT

I REV. W. AVERILL IN REPLY PRESENT POLICY ASSAILED PLEA FOR OTHER METHODS Rev. W. Avorill, of All Snints', writes: —My sole reason for entering into the present discussion with Professor Bolslmw is to seriously suggest that the full force of the world slump might haVo boon avoided ns far as this country is concerned had our leaders been better advised, and that even now conditions could be immediately relieved were a bold reversal of tho policy of deflation to bo undertaken. I notico with surprise that the professor disclaims on bohnlf of the economists any responsibility for our present troubles. Unfortunately his nanio, with the names of James Hight, D. B. Copeland, A. I). Park and A. H. Tocker, appear as signatories of tho Economic Committee's report of February 24, 1932, which formed tho basis of the present Government's policy of wage-cutting. Moreover, the. professor took a loading part in the advocacy of the present exchange policy which, it was claimed, would solve unemployment. I may surely bo pardoned for concluding that the economists have had a great • deal to do with the policy of tho present Government, and 1 claim that that policy has been ill-advised and has aggravated rather than relieved tho situation. I, give Professor Belshaw and his colleagues fill 1 credit for having done what they thought best to deal with a most difficult situation, but I submit that, in view of the obvious failure of their efforts, tho time has come when other methods must bo given a -fair trial, even if theso appear to be unorthodox. Tho professor assures mo that economists arc agreed that Douglas Social Credit is not tho remedy. Well, I seem to remember that exactly 100 years ago two great reforms, tho Emancipation Act and the Factory Acts were opposed tooth and nail by the commercial and financial experts of the day as being certain to wreck tho industrial system. To-day the national conscience is similarly aroused and is demanding the abolition of another form of slavery—tho tyranny of money. May not tho opposition of our professional advisers prove in the long run to be a caso of history repeating itself? Desperate diseases sometimes demand desperate remedies, and I believe this country is prepared to take the risk of a major operation upon its currency and credit system.

TOO MUCH "WISHFUL THINKING" UNEMBARRASSED ARGUMENT "Anglicanus" writes: —Because Professor Belshaw and the other orthodox economists offer no single magic panacea for tho world's manifold economic ills, the Rev. Mr. Avorill charges them with having "no solution." As an Anglican minister, Mr. Avorill will probably respect the following words by a divine of his own Church, the iate Bishop Gore: "We are perhaps encouraged to meet claims made in tho name of logic with a good heart by the consideration that logic, in the sense of argument, is apt to bo most efficacious when it is most one-sided and content to ignore everything in the facts which does not suit its caso. 'Reason,' it has been most, wisely said, 'is wide, and manifold, and waits its time; and argument is partial, one-sided and often then most effective when least embarrassed by seeing too much.' The most plain case is by no means always the most-true. Thus Hooker remarks about the early heresies of tho Incarnation, that 'because this divino mytitery is more true than plain, divers having framed the same to their own conceits and fancies, are found in their expositions thereof mors plain than true.' " One may add that the Douglas theories have not even the merit of plainness, except as expounded from tho platform to a sympathetic, uncritical and economically-ignorant audience. Mr. Averill, no doubt, is brought much into contact with poverty, and his "divine discontent" does him credit, but he has let "wishful thinking" lead him out of the way.

DESIRE FOR CHANGE ROOM FOR IMPROVEMENT Mr. 1?. S. Mackay writes: —We have been assured that the factors of supply and demand, with the fluctuations resulting from them, are inexorable and unavoidable as to f,he manner in which they operate, and are therefore practically beyond the possibility of control or regulation. Some laymen, however, venture to doubt this, and are firmly convinced that some measure of control and regulation is possible, and that a considerable improvement of the economic conditions at present prevailing could bo very readily effected. I would suggest that Professor Belshaw's able and convincing criticism of Douglas Credit does not cut much ice unless lie puts something else in its place, or clearly demonstrates that the present system cannot bo in any way improved. 1 feel sure, however, that everyone would agree that there is room for improvement, and 1 would suggest that Professor Belshaw and his fellow economists study the present system, Douglas Social Credit, the Labour Party's policy as recently enunciated, and any other proposals which are being put forward, with a view to formulating a policy embodying all tlio best and eliminating the worst features in each of the systems considered. Jf such a policy were honestly formulated it, would without doubt receive considerable support from the general public. By formulating such a policy tho economists would confer a benefit on tho community and also on (lie science of economics. By adding to it such a practical value, it could well be described as the joyous rather than as the dismal science.

DOUGLAS GENEROSITY OTHER PEOPLE'S PROPERTY " Non-Raider " writes: —What a groat appeal is in that phrase, " Starvation in the midst of plenty," and how carefully is tho fact concealed that the "plenty" has been provided and is the property of some other person, and that an equivalent "real value" must be given in exchange for it. Tho crusaders are very liberal when it comes to disposing of this plentitudo. Their generosity compels one to wonder if thej', themselves, have produced any of it and have saved some, which will bo included in the distribution. Mr. Averill also says, "Tho layman has waited for tho economist to put forward a programme by which men and women may receive their just share of the good things that God has provided for them." It is only the primitive who depends on this provision. Man has been deputed to provide lor himself, and what he provides is, or should be, his own, and neither the economist nor the Douglas crusader has the right to dispose of it. There is no irreverence in stating that if all the farms in the Dominion woro loft to the Doity's provision, the resulting crop would bo docks, thistles and blackberries.