DOUGLAS CREDIT SYSTEM.

Southland Times, Issue 22188, 2 December 1933, Page 9

DOUGLAS CREDIT SYSTEM.

To the Editor.

Sir, —In to-day's issue of the Southland Times there appears a condemnation of the above system by Mr E. S. Spooner, New South Wales Minister of Local Government. Mr Spooner is apparently an apologist for the present financial system and because Major Douglas has found the . weaknesses of that system he doesn’t like it. If Mr Spooner was a little nearer I would ask him to disprove the following :—

(1) That all past business booms were periods of rising prices and increasing national debts. (The post-war period was a notable example of this delightful process.) (2) That the only way of achieving Mr Spooner’s brand of prosperity is by allowing the banks to create huge sums of new money. (3) That the increased supply of new money will be inflation, i.e., a period of rising prices, and that this new money will be debited against the community as a debt due to the banks. (4) That the calling in and cancellation of this new money will precipitate another depression, i.e., deflation. (5) That this process of “boom and bust” has been going on for. the past 150 years and will continue as long as the existing financial

system is maintained. It will be interesting to know that in November last year a deputation from the D.S.C. Association of N.S.W. interviewed Mr Spooner with regard to the Government making an inquiry into the Douglas proposals. Mr McReaddie, spokesman of the deputation, is reported to have said the following in his reply to the Minister: “We, like yourself, are trying to find a method which will bring some sort of light into the present economic gloom. I may also mention that the members of our association generally are firm upholders of all that the British Constitution stands for, and we would be the last to suggest anything which in our opinion would be detrimental to the public benefit.” In conclusion, may I say that Mr Spooner did not give the deputation the opportunity he promised it, with a result that the Government Statistician held a hole and corner “inquiry” in his spare time. —I am, etc., DIZZY. Riverton, Nov. 30, 1933.