MR VAILE’S theories.

Waikato Times, Volume 113, Issue 18928, 24 April 1933, Page 9

MR VAILE’S theories.

(To the Editor.) Sir, —One wonders whether lo lake your correspondent .Mr Earle Vnile seriously. For instance, in bis latest letter he says: "It will be remembered that Hie llrsl of Hie great line of kings which Scotland gave to England when she annexed the southern portion of the ‘'right Little Island,’ etc." Apparently Mr Voile is as ignorant of the rudiments of British history as lie is of the. elements of economies. Every sr lined boy knows that, the first of Ibis "great line, of kings" (James 1.) was a foot and a coward; the second (Charles I.J was

—after seeking refuge with the Scots ■ —handed back to the English for a cash consideration and beheaded by the latter for his utter untrustworthiness; that the third (Charles II.) was one of the most Immoral and profligate men who ever disgraced an illustrious throne; whil9 the fourth (James II.), whose bigotry and Intolerance has become a byword, made even patient, steady-going England too hot to hold him after a reign of only three years, and spent the rest of Ids life plotting with England’s Continental enemies to achieve her downfall if possible. The next in the succession was a Dutch prince of remote Scottish descent on ids mother’s side, while the last was a woman who wis an amiable nonentity. "A great line” forsooth I As for Scotland, “annexing’’ England, the idea is 100 absurd for words. Queen Elizabeth on iter deathbed, and with concurrence of her advisers, offered the throne to James, who had the best claim to i! merely by accident of birth. Even then Hie two countries maintained separate Parliaments for another Mi years. But. the facts of history, like the facts of our economic environment, do not trouble your correspondent. la reply to Mr Voile's reiterated questions’, l have already staled that present price indexes in this country are not in “terms id' gold,” but in terms of New Zealand currency, which Is 25 per cent, off “sterling," which is a variable amount, off I lie dollar, which is acting 100 drunkcnly lo say whore it is. By the way, it is unfortunate foe your coiTCspomienl's advocacy of the gold standard that in the evening edition of your paper containing his letter you publish on your

cable page in heavy type the news that America is off the gold standard. Similarly with our bank notes, "On demand we promise to pay one pound,” is not in "terms of gold,” for the banks will not redeem their promise in gold. As the notes are legal tender up to any amount and gold as a form of currency is inoperative in New Zealand, then £1 simply means a certain amount of purchasing power varying according to the fluctuations of the general price level. In accusing Douglas Social Credit advocates of socialism your correspondent is as l'ar astray as in tils other wanderings. Perhaps lie does not realise that, our bitterest opponents are the credit monopolists on the one hand, who see their usurped authority endangered, and the communists on the other, who see in Douglas an economic system which would deprive them of their best asset —a disaffected workless class smarting from a sense of social injustice. Mr Yuile charges Douglas social credit •enthusiasts with advocating “idleness and squandering.” Here lie again reveals 1 1 is igimrance, and, by the way, in spile of repealed appeals, he has never staled what lie has read concerning Douglas Social Credit. Willi one of Me Yaile’s statements I can agree wholeheartedly—viz , "what mailers is not what one lias read, hut what one has understood.” The mere neophyte' in Douglas Social Credit can see at once' that if Mr Vaile has read any recognised Douglas literature he has not understood it. Also Mr Vaile urges the need for us all "lo earn unit’ll and spend less” —that is, lo "produce more and omsnaje 10-s." i nice again may I ask what would happen If we all did this? i

Would not a huge surplus of goods soon accumulate and another depression occur? J. M. Keynes warned the British Government that “a nation earns what it spends.” The same economist, In attacking the popular delusion of reducing wages costs,, says: “There Is no way out on those lines. You will finally balance the budget with a nought on both sides and the whole population flat on its back, dead of starvation.” Is that what Mr Vaile wants?

Finally Mr Vaile has repeatedly accused me of insolence. 1 leave it to your readers as to which of us lias stuck to reasoned and logical argument based on facts and recognised authorities. —I am, etc., lIUIA. Hamilton, April 20, 1033.