LUCERNE GROWING AT TAUPO

New Zealand Herald, Volume LXX, Issue 21562, 5 August 1933, Page 15

LUCERNE GROWING AT TAUPO

Sir, —Your correspondent, Mr. J. Johnstone, Manurewa, is the despair of all writers to your columns, but I am tempted to reply to his attack on my proposals regarding a land-.settlement scheme at Taupo, as he has mis-stated its relevance to Douglas social credit. This scheme was sketched merely as a model to show the issue, flow and extinction of credit, but I cannot admit his criticisms as to its economic unsoundness, for I advanced this project because of a focus of expert opinion. Mr. Aston, the Government authority on soil chemistry, has stated his high opinion of the prospects of these regions, and Mr. Levy, the agrostologist, has most definitely endorsed the vast possibilities of legume production there, while Dr. Annet's recent works on forage as an adjunct to summer grazing make this project appear to me as the outstanding opportunity for a developmental undertaking with a nation trained and equipped as wo are. The establishment of a city at a high altitude occurred to me after conversations with Dr. Bernstein, a New Zealand authority on pulmonary complaints, who deplored the fact that in this Dominion, with all its cities sited on low levels, there is no opportunity for a professional or business man to secure a vitally necessary change of air without sacrificing his occupation. However, my object in putting forward this scheme was to test out tho financial side, and I claim that the issue of currency in the course of such development would salvage the labour of unemployed and partly employed, which is at the present time running to waste. The wages so issued would be tendered in the purchase of goods and produce at present unsaleable or crowded on to export markets. This money would flow to city merchants and provincial tradesmen, restoring their financial vitality and the backing for the currency issue would be the new province taking shape. After accomplishing this wealth creation and restoration it would be found to diminish by way of debt repayment upon past liabilities, and it is at this stage that the peculiar Douglas method would operate. The rate and volume of these redemption payments would be calculated as disclosing the loss of purchasing power being brought about, and this loss would be restored by means of consumer credits. I consider the area concerned would not swell the exportable surplus of primary products for at least 10 years by which time a resumption of immigration is not impossible. S. J. E. Closey.