"DEMOCRATIC DEDUCTIONS"

Otago Daily Times, Issue 22718, 2 November 1935, Page 25

" DEMOCRATIC DEDUCTIONS "

TO THE EDITOR.

Silt, —In reply to your correspondent "Year Book." T would just like to inform him that the owl is one of the few birds that 'can see clearly through the dark. The fact that the Democrats intend borrowing only £5,000,000 per year makes the position more impossible. Mr Coates states that the Democrat Party's policy would cost the country £22,000,000 per

annum. My figure was £17,070,000. Perhaps I have been too modest in my calculations. Anyway, where is this sum to come from? The people, a loan overseas, or from Mr Davy's second-hancl printing press? And in answer to "Year Book's question about Mr Coates, I suggest that perhaps Mr Coates will turn Socialist when the Democrat Party goes into power. So now he will readily understand why Mr Coates can never be a Socialist.— I am, etc., Ally the Owl. October 31. TO THE EDITOR. Sir, —"A!]y the Owl" in a letter in Wednesday morning's paper states: " Even Major Douglas in his wildest moments cannot compete with our worthy Wellington Mayor, etc." The proposals propounded by Major Douglas are the very antithesis of the weak platform submitted to the public by Mr Hislop. As "Ally the Owl " writes in a disparaging way of Major Douglas, it is evident that he disapproves of his deductions, and as he does not admire Mr Hislop's policy, it is difficult to imagine just what policy he does uphold, because in- the last analysis there appears to be little difference between the platform of the present Government and Democratic aspirants.

Any Government that fails to deal with <he money question, that fails to make it the very foundation stone of its activity, cannot greatly vary the performance of its administration. We are living in an airplane civilisation with an oxcart financial system—and even when we travelled by oxcart, the system often bogged the cart. How is it possible under the existing financial system for Governments materially and lastingly to assist the public? Admittedly, temporary assistance can be given by borrowing for national development, but the borrowing increases our indebtedness, and consequently increases taxation, and the taxation is left to be met long after the money borrowed has been paid out in wages and spent. If such is not the case, why is our National Debt nearlv £300,000,000? The control of credit creation, or the ability of the banks to issue money tokens against the wealth produced by the community, is being severely questioned, and when the absurdity of the situation dawns more fully on the populace, a change will be effected. The proposals submitted to the world by Major Douglas take into consideration the fact that, as we are continually endeavouring to repay to the banks more than we borrow, we must borrow more to pay back what we previously borrowed, end each time we borrow, we mortgage more of our real or material wealth —land, property, etc. —all for the privilege of being permitted to name our commodities in money terms. This fact alone is sufficient to strangle gradually all industrial activity, but when the advent of modern machinery is taken into consideration, the seriousness of the position from the human viewpoint, is accentuated, and it is these factors that Major Douglas deals with in a scientifically constructive manner. —I am, etc., Dunedin, October SI. Atlas.