SOCIAL CREDIT

Wanganui Chronicle, Volume 79, Issue 278, 26 November 1935, Page 4

SOCIAL CREDIT

NUTSHELL DEFINITION CURRENCY AND PRODUCTION NATIONAL DIVIDEND The victory of the Social Credit Party in Übe Alberta elections in Canada has created a great deal of interest. The following facts as to the aims of the Credit Party arc informative, though whether they will be justified is quite another matter (says Public Opinion). Asked to explain the o-peraticni of Social Credit, Mr. Aber*hart said to the Daily Mail Calgary correspondent: “The basis of the scheme is the payment of a monthly dividend of £5 to every man and woman in Alberta. It will not be paid in cash, but in non negotiable credit certificates. “ ‘Every citizen will present his pass-book at the provincial clearing house monthly, w’hen his credit will be entered. He will then be able to pay the grocer and the butcher, for instance, who, in turn, will be credited with the amount then on the accounts of the clearing house in the same manner as cheques are handled. The grocer and the butcher can then use their certificates to pay their own debts, thus circulating credit.’ “Replying to the comment that prices would go sky-high if credit was uncontrolled, Mr. Aberhart declared that it was proposed to apply a levy to ‘retire’ credit in the same proportion as it is issued, and control prices through a board of experts. The credit will be withdrawn through a tex which be calls ‘unearned increment levy’— really a turnover tax. “‘lt is my aim to narrow “piicespreads” through the medium of the levy, and speed up the industry by increased turnover, through augmented purchasing power,’ he said. How It Works. “Mr. Aberhart gave the following illustration of how the levy would work;—• “The ‘fair price’ of wheat is set at, say, 2s 6d a bushel. The farmer will receive 2s 3d, the btete 3d. “The miller who produces 401 b. of flour will sell it at 4s fid, the Government taking 6d. The flour then goes to the baker, who makes 50 loaves and sells them at 3d each, the Government taking id per loaf. “Thus, from a bushel of wheat, the Government levy ucts approximately 2s 9d.’’ “1 set out in search of a ‘nutshell definition’ of Social Credit,’’ writes a special correspondent in the Daily Telegraph. “Mr. W. L. Bardsley, secretary of the London organisation of the Social Credit advocates, explained it to nre. ‘Putting it as shortly and simply as possible,’ he said, ‘it is just this; “ ‘Many goods are now being made which are wanted but cannot be bought because people have not enough money. We propose to increase the purchasing power of everybody, in order that they may buy goods which they cannot collectively afford at, present. “ ‘We propose to do this in a number of ways. The chief way is by means of a national dividend. “ ‘At the moment this is either being destroyed or is being kept out of existence by restriction of output in industry and agriculture. “ ‘All over the world milk, wheat, cotton, and coffee are being destroyed, simply because people cannot afford to buy them. Far more important is' the fact that our fields and workshops are not producing nearly as much as they could. “Inadequate Ways.’’ “ ‘We propose to stop this destruction and to get our fields and workshops producing to capacity by enabling people to buy more. “ ‘Money comes into the bands of the public as payments for services.

All these payments are include prices of things suld. Logi(t|]j should have enough iuun ev J these prices.) Quite obvioJ have not. “ ‘This is because there in lag which increases as comes ever more mechauiied. 1 never have enough money u| the goods produced unless 1 steps are taken to provide it. “ ‘ln the past, bUis has btg in ways that, are present conditions—exploitati overseas markets on credit 1 mental expenditure on publie etc. “ ‘Social Credit proposeiAi amount of the deficiency bctu prices of goods available u money in the bands of the pw want to buy them should lx 3 in accordance with a nationalai sheet. “ ‘The amount of the It would be scientifically estima stock-taking over certain periei issued ns money to everybody 1 ' “ ‘lnflation?’ 1 asked. “ ‘Nothing of the kind.’ repiil Bardsley. Inflation would na scheme. The issue of dividend be accomplished by price a There would be a bonus paid n at certain prices and profit n over would be regulated. *‘ ‘ There are many problai netted with the distribute c! dends, depending on circunuii time, and. place. They would a tied on the principles I hisi gested.’ ” “Credit is faith—an estimate physical possibility of carr.q the work. Ln this faith—vn W mate —money is credited, .and a faith as much money cuuldbet as the estimated productive of of the community justified, 1 Social Credit, the organ oi tit ment. “It is therefore absurd ti community should go etort goods and services it wants fll produce. Productive capacity ill thing; it has been built upbyj tions of industries and iM people; its prose it enornwuitl an inheritance of the present! tion, and shbuld be used fortlt fit of the people of to-day ui future. “Money, on the other b 3l quite a. different nature. It is> and tangible. It costs duIM create, and its function solely to assist in the crdetljl tion of goods and service*, 1 simplify their distribution“Those who have followedl« ments of Major Douglas w why it us that despite a produce which is greater I before in the whole history® the people as a whole arc p® l -- due to an error in iinunciaiJ ancy which could easily w without causing anyone M ” financial sacrifice whatever. “But Major Douglas aj’ 1 porters go further. They d position for the voter. IX'J it is not necessary for ta understand what exactly tnu , still less need he try to know it could be correctsknows, or thinks he kncws< and the how, he should results, and afterward?, « offer his services in ths : , ducing the results he h ftfl “The only thing that it for the people to do is j to demand that thi?- error right—to demand f hat longer be poor v.h.n t ey . rich —to demand big incomes to buy what they duce. “What the people pends on their P ro^'u ': tIT Their porductive cM*a clt J' ' & heritance. The nr^’naT^ n i l {r.B which persons enjoy an 1 the dividend. p 1 “Therefore the people that has inherited a capacity should dravc a • dend.”