MONETARY REFORM.

Taranaki Daily News, 18 February 1933, Page 2

MONETARY REFORM.

J (To the Editor.) Sir,—Appearing in the local columns of your issue for February 9 is an article dealing with a statement attributed to Mr. H. G, Dickie, -M.P.- at a meeting at Westmere on February 6 when dealing with Douglas Social Credit. My association, under whose auspices Dr. Smith lectured at Hawera, directs me to bring under the notice of your readers the facts connected with the issue of "Bradburys" as stated by Dr. Smith at his Hawera meeting. Dr. Smith was illustrating the fact that it was practicable for a Government to isue money with a country’s credit—its productive capacity—as a backing. He quoted 800,000,000 as the number issued and Mr. Dickie asserted it was more like 400,000,000. Dr. Smith agreed that Mr. Dickie might be right and undertook to verify if Mr. Dickie left his name and address. This was no effort at humour on Dr. Smith’s part. He, hailing from Rawene, absolutely did not know Mr. Dickie. However Mr. Dickie left the hall instead. It is true that Mr. Dickie was nearer the mark than Dr, Smith, but the principle Dr. Smith was talking of remains unscathed, and his illustration remains true. Surely, 400,000,000 Bradburys was a big enough issue to prove the point. Douglas Social Credit is a regulated release of credit or purchasing ■ power to the consumer. Douglas holds that money should cease to be a commodity controlled by a monopoly, but should function simply as a ticket, a means of exchange, and that the quantity of such money (regulated by a National Credit Issuing Authority or really National Bank) should be such as will purchase the goods produced. Issue of credit would be by way of old age and disability pensions; family allowances; sustenance grants for secondary students; extended educational, health, and other social services; and diminished taxation—along such lines a substantial householder bonus or national dividend would be absorbed, not by direct payment to individuals as a ‘kick off’ under,

the new scheme, as Mr. Dickie, puts it in his efforts to ridicule the scheme. Under the Douglas scheme, social credit is also released by way of reimbursing traders a regulated discount they have to allow off goods sold. If consumption is 50 per cent ,of production, it is obvious that the people have only half the purchasing power they need, and a 50 per- cent discount is made operative. Factory and wholesalers’ returns in three months’ time may then show' consumption to be 75 per cent of. production, and the 25 per cen; discount would be declared. The next returns might show consumption to be 90 per cent of production, and the discount would become 10 per cent. In this way consumption is stimulated and made equal to production, the retailers being reimbursed their discount by a credit entry in their ledger at the National Bank, which is all they could achieve in the “boomiest” times. Raising of prices, which occurs with “inflation” cannot occur with this regulated issue of credit, which brings about “equation” between goods and purchasing power. The trader is only reimbursed after proof' of sale, and raise’d- prices would stop his sale and the credit issue. The fact that Mr. Dickie has had an unfortunate experience, with his tyres at some free air supply is no reason why he , should not try another free air supply with a pressure gauge attachment; but, as Dr. Smith told him at his lecture, • “there is no pain like, the birth .of a ' new idea.” Thanking you for your , courtesy in permitting us to try to cor- ■ rect the false impressions of Douglas social credit which Mr. Dickie has ; given.—l am, etc, ;

R. D. C. McNeiL Honorary Secretary. Hawera Monetary Reform Association. Hawera, February, 15.