SOCIAL CREDIT

Otago Daily Times, Issue 22654, 20 August 1935, Page 12

SOCIAL CREDIT

TO: THE ’ EDITOR ■ -

Sip,— The passage from Aristotle' quoted by “ Veritas ” shows the same error as is frequently made ,by the , Douglasites. The Greek philosopher did ’ not distinguish, between ,use ; value and exchange value. Karl Marx explains how Aristotle, the greatest ’ thinker of antiquity, fell into such an error. Greek society was based,oh slavery, and the fact that Aristotle defended slavery proves that his mind could not escape the limitations of his environment. Slaves, animals, and tools were all classed among the ancients as instruments of pro-, duction, and , designated, respectively as speaking instruments* semi-articulate instruments, and dumb instruments. Hence there was no conception that human labour, and human labour only, constituted exchange value. Though nothing can have exchange value, that has not use value, there is not necessarily any proportional relation between the two. For we shoufd perish without air and water, but air and water have no ex- 1 change value, because no human labour has been expended in their production. “Veritas” quotes Aristotle as saying’ that he who is rich in coin may perish of hunger, and that therefore money cannot be wealth. But economics deals with the life of man in society, not with the problems of Robinson Crusoe. Gold is money for the reason that it is a commodity, having both use value and exchange value, which is . universally accepted in exchange for all other' commodities. The Douglasites refer to gold as a useless commodity, but in. all, civilisations gold has been highly prized-' on account of its beauty and physical qualities, which form the basis of its use value. On the other hand, its high exchange value is the result of the labour that must be expended in appropriating it.

It is impossible to understand - the nature and function of. money without a clear conception of exchange value as distinct from use value. The Douglasites deny that money has value, and propose to introduce a. system under which the currency would soon be reduced to paper which could have neither value nor cre n dl , 7f, am > etc -> H.-Gow. Balclutha, August 17.