THE DOUGLAS CREDIT SYSTEM

Otago Daily Times, Issue 21446, 22 September 1931, Page 10

THE DOUGLAS CREDIT SYSTEM

TO THE EDITOR. Sib —In your issue of Friday the Bev. W W MacArthur admits that the statement made by Miss King in her lecture that there are more goods and than will meet the needs of everyone is not correct. There is no doubt that the Douglas Credit System is based on a misconception' of the principles of finance and the theory of money. According to Mr Mao Arthur all our economic troubles are due to a shortage of money. He states that the reason why millions or people are dying of staryation in India and China is because they have not the money to buy goods from other people, and that whenever they have the money Western merchants will be glad to sell anything to them. Of course he does not explain what he meant by the term « money.” A few years ago India was the best customer of Great Britain, and probably she still is. I will MacArthur to tell us how the people of India pay for the goods they receive. Do they send shiploads of rupees to London. Mr Mao Arthur then goes on to state that the problems of the larger nations to-day are largely due to a surplus of commodities. If this w up, I will ask the rev. gentleman why the balance of trade is against England and France to day? If they already have a surplus of commoditiee, why are they still importing gooda in such tremendous; quantities. We read that even in America, for the month of August,, the balance of trade was against that country. ... . If our troubles are solely due to a Shortage of “money," that can be rectified soon, according to the Socialists, and I presume Mr MacArthur and Major Douglas agree with them;—all that is needed is a printing press and a bale of paper. At the last general election the chief plank in the platform of the United Party was the proposal to borrow £70,000,000 in London. Evidently tne leaders of that party believed in the Douglas Credit System. I will ask Mr MacArthur what would we have received in New Zealand if we had floated this large loan abroad? We should all remember the statement of Mr Arthur Henderson that international trade must take the form of barter—l am, etc., ■ P, W, Shacklock.