DOUGLAS SOCIAL CREDIT

Taranaki Daily News, 15 September 1934, Page 2

DOUGLAS SOCIAL CREDIT

PLAN SUPPORTED AT KAPONGA. ‘‘BANKERS NOT OPPOSED TO IT.” Keen interest in an address on Douglas social credit was taken at Kaponga on Thursday when Colonel S. J. Closey spoke to an audience of over 50 business men and farmers. His address was on the lines of those previously reported, and at the conclusion the audience agreed with his resolutions that the world's economic troubles were due to monetary causes; that the particular defect was lack of purchasing power; and that the most likely scheme in sight was along the lines of Douglas social credit. On the motion of Mr. R. E. Williams a hearty vote of thanks was accorded the speaker for his interesting address, and a number of th 6 audience put their names down for membership. Mr. A. R. Bates, chairman of the Kaponga Town Board, presided. Mr. H. Finlay, president of the South Taranaki council, appealed for support for the movement stating that the issue would be an important one at the next election.

Mr. R. A. Law raised the question as to why the banks were opposed to Douglas credit. He asked would they not benefit from the prosperity the proposal was expected to bring. Colonel Closey said that in one town there were five bank managers who were members of the society, but they could not show open approval of the proposals. Little opposition to social credit came from bank officials, and the only section which would be affected was the shareholding interests whose advantage it was to manipulate credit. One of the strongest supporters was the head of the Banking Institute, in London, who pointed out that if social credit were not placed in the hands of the people the outcome would be violence.

There were many bankers who helped the society with advice, and one high official had declared that the present banking system could not carry on for more than a couple of years. Mr. P. Harding asked where all the money would come from and if it would be borrowed at interest rates. The lecturer said that there was now more enlightenment on the money system than there used to be and it was known that currency was not backed by gold but by wealth. Gold was no good unless it was backed by wealth, and when money was wanted all that had to be done was to print notes at a cost of 2ld per dozen. But it was necessary to determine the amount of backing of wealth there was to the money issued, and as long as money was not issued without the backing of wealth everything would be all right. Answering another question concerning imports,Colonel Closey said all countries had the “export complex.” The limit of one’s exports was the limit of one’s imports. One of the greatest handicaps today was the £25,000,000 surplus lying in London. If the farmer could buy slag, wire, piping, etc., there would be no need for a quota. If New Zealand bought £25,000,000 of' goods in Britain it would soon sell our butter. Professor Taussig had said that over a period exports and imports tended towards equilibrium. It was important that the farmer should realise it was his own lack of purchasing power that was the cause of his own depression. His ability to buy would help his ability to sell. If New Zealand ran up a bill with the "Jhited Kingdom it had to take New Zealand butter to get the bill right. There was no limit to world trade. Why not sell butter to every nation and take their products in return? If Douglas Credit were operating in all countries there would be no troubles. International trade was a benefit to all if done properly. If there were Sufficient purchasing powef tariff barriers would not be erected. Every country, no matter what its political control, must have an equation between production and consumption.

Mr. Law remarked that there appeared to be some annoyance in the British market that New Zealand had subsidised production by the exchange. Would not social credits further widen this breach? The lecturer replied that he did not think the people in England were concerned how New Zealand ran its money system. They were only concerned about buying from those who bought from them.

Mr. Law asked if Douglas credit would depreciate or subsidise the currency, and would this affect the British exporter. Colonel Closey said Douglas credit was not in the nature of currency depreciation, but brought the amount of money up to the right level. If it bought the same amount of goods in New Zealand as it did before there would be no depreciation. The Douglas plan was not to depreciate money, and as long as New Zealand was a good buyer of England the people there would not worry about the currency.