DEBT-FREE MONEY

Wanganui Chronicle, Volume 80, Issue 301, 20 December 1937, Page 9

DEBT-FREE MONEY

| Sir. —Perhaps we did not state our i views very clearly in our previous letter. It is probably true that “beI fore a debt can be created there must Ibe an asset.” What we were chiefly concerned about, however, was not so ' much the manner in which assets are | turned into liabilities but the manner ! iii which assets are turned into liabili- | lies after the original “debts” have been liquidated by the physical efforts I of the community. ! Perhaps we could state the matter more clearly this way: In building the I railway we do not carry out the iwork ourselves, but get the Japanese jto do it for us. A few hundred [Japanese come over here, bringing all ithe necessary foods, clothing, shelter, [and materials with them, and, in due course the undertaking is linished. In these circumstances we are definitely putting ourselves into debt because we have received a service for which | (so far) nothing has been given in [exchange. But when the railway is I built as a result of our own physical : efforts why should there remain any [debt after the work is completed it iwe have been able to supply the majterials and feed, clothe, and house all i the workmen directly and indirectly [concerned? Actually the whole debt •is wiped out when the last physical act has been performed. The undertaking then becomes a communal asset, not a debt in perpetuity. I The Social Credit Movement would [not repudiate any debts that have been contracted by the present re[gime. These would be repaid in full [because they represent assets (in part [at least) that have been loaned to the [Government by divers people. Howlever, if debt free money had been | used for national purposes instead of ipiivate capital our national debt [would be non-existent to-day. I Regarding the vegetables, it was [certainly not our intention to starve lour friend, the Social Credit critic, I until his vegetables grew. We’ll put ■our illustration to the test this way: [Do you, sir, every time you consume [a vegetable grown in your own garI den, note its cost (shop price) and [pay the amount, once, twice, say three I limes, to someone else?—We are. [etc..