DOUGLAS CREDIT.

Waikato Times, Volume 113, Issue 18876, 21 February 1933, Page 2

DOUGLAS CREDIT.

SUCCESSFUL MEETING. HAMILTON BRANCH. OBJECTIONS -ANSWERED. Various aspects of the Douglas Social Credit proposals were thoroughly canvassed and formed the basis of a keen discussion at last night’s meeting of the local branch of the Douglas Social Credit Movement. In presiding over an increased attendance, Mr C. A. Magner, -of Te Kowhai, stated that the meeting would take the form of a discussion circle, in which any one present 'could ask any question relevant to the Douglas scheme. “If the Douglas proposals . were adopted, where is the necessary increased money to come from?" was the first question asked by a newcomer to the movement. \ “ I cannot do better than show where the money comes from at present,” replied Mr Magner who quoted from several authorities, including the Rt. Hon. Reginald McKenna, ex-Chan-cellor of the Exchequer and chairman of the Midland Bank. McKenna -states: “ The amount of money in existence varies only with the action of the ■banks in increasing or decreasing deposits; every loan or overdraft creates a deposit and every repayment of a loan or an overdraft destroys a deposit.” Under a Douglas economy the necessary credits would be issued free by a national credit authority functioning as a central bank but controlled by the community and not by individuals for private profit.

The A Plus B Theorem. “ What about the A plus B theorem, con you show us how the purchasing power released by industry is never sufficient to buy back the products of industry?” was another question. With -the aid of a blackboard one of the advanced students in the movement demonstrated the working of a modern industrial process, whereby the gap existing between prices and purchasing power was clearly -shown. “ If you wayt practical proof of the Douglas analysis consider the effect of modern labour-saving machinery. Every labour-saving device destroys some purchasing power in the channel of wages, but the cost of the machine is lumped into the final price of the goods produced and no money is available to buy those goods when 'they are on the market,” was the final answer.

“ Can the Douglas proposals be adopted by any one country?” was another question. “ Certainly,” replied Mr Magner. ” If New Zealand adopted social credit we should continue to meet our overseas commitments and pay for our imports as we do at present; that is out of the proceeds of our exports which are sold on the London market for English money." The rest of the disousslon was largely on academic lines. ' At of the meeting several new members were enrolled.