SOCIAL CREDIT

Otago Daily Times, Issue 23516, 2 June 1938, Page 3

SOCIAL CREDIT

“FREEDOM IN SECURITY” In the course of an address on “Freedom In Security,” which was delivered before the members of the Dunedin Branch of the Douglas Social Credit Movement, Miss Mary Graham, of Wellington, spoke as follows: — “ The pioneers who came 12,000 miles to New Zealand were the most enterprising of all those who left Britain to seek freedom with security in a new land,” she said. “ Strange to say,' those same people in whom burned the desire for a fuller life with freedom, brought with them the seeds of slavery when they perpetuated the System of loans with mortgages on their lives and properties. In no other country has speculation gone to greater lengths. Land has been forced up to preposterously high values and the people have enslaved themselves more surely as the land reached high figures.” • The early pioneers seemed, she continued, to have no idea of existence free from debt, from loans borrowed from overseas money-lenders and from loans obtained from themselves and their banks. The policy of regarding all production of goods as a means of investment of capital with a high rate of interest had resulted in the ever-increasing national debts of Great Britain and ■ the dominions. The seeds of destruction were within it. All leading financiers were solemnly warning the people of the coming crash. Debt could have been avoided from the start if the people had known how to monetise their production of goods and services. Prices of goods could be fixed by common assent. For 200 years in England, from 1150 to 1350 a fixed price was in operation, living was secure, people worked only 178 days in the year and had ample for all. The great cathedrals were built in those years. The year books of New Zealand disclosed that the average production was estimated to be over £100,000,000 a year, in goods and services. For the past 100 years the people had produced wealth equivalent to £200,000,000 if expressed in figures. This actual wealth, represented by roads, railways, farms, houses, public buildings, ships, harbours, etc., should be monetised and the equivalent sum in credit should be placed in the Reserve Bank by the Government. This credit represented the increment of association by the people who had developed the country to its present high state. The Government should obtain the facts of production each month from the people and issue bulletins to be placed in all post offices, and the Government should then compel sufficient purchasing power to be in distribution as wages, salaries and dividends to enable the people to buy their production of goods and services free of all taxation, and free of debt. At the end of five years those who own mprtgaged houses and farms would be in easier positions as they would have been able to repay some of their obligations, and at the end of 10 years many of the mortgages might be totally repaid. , . 4 , People who had invested capital in loans and mortgages, she said, could then deposit their money in the post offices and obtain 4 per cent, or 5 per cent, for their lifetime, which money would be drawn from the accumulated wealth in the Reserve Bank, and would be free ot taxation. Without taxation, prices would drop, and the income? of all would purchase more goods. The ,national debt could be progressively lowered by sending wool, butter and cheese to be sold in Great Britain, and the proceeds of the sale paid to the holders of the bonds. Each child born represented an undoubted addition of real wealth to any State. Parents should demand that their production of wealth should be monetised by the State, and for each child born, a sum ot £2OOO should be placed to their credit in the Reserve Bank. This sum would then become the basis for issuing a bonus to each mother ot £2 a week for each child. The money could be paid her for six months before the birth of a child to enable her to bring it to birth in peace and security. Further .ances could be drawn from the credit deposited in the Reserve Bank to build more schools, more maternity homes, and for general improvements for all the people. All this could be done if the pfeople united and demanded these results, she concluded.