DOUGLAS CREDIT.

Waikato Times, Volume 114, Issue 19012, 1 August 1933, Page 6

DOUGLAS CREDIT.

MORRINSVILLE INTERESTED. MR ROBINSON’S LECTURE. Interest In the Douglas Social Credit proposals as a remedy for the existing ills of the economic system continue* to grow r in Morrinsville, where in spite of the inclemency of the weather last evening, people from as far afield as Tahuna and Hamilton gathered in goodly numbers to hear a lecture by Mr A. E. Robinson, Auckland secretary of the Farmers’ Union. Mr Robinson made it clear that ail new money came into existence in the shape of a debt to the banks. “ Contrary to popular misconception banks do not lend their' deposits but by the expansion of 'credits create deposits and no modern economist denies this contention any longer," said the speaker. Mr Robinson went on to point out that over 99 per cent, of British finance consisted of bank credit and less than i per cent, of notes and coins or legal tender currency. The continual strain to repay the borrowed money left a gap between the purchasing power available in the community and the costs created by. industry which industry reckoned to recover from the ever decreasing purchasing power available in the community. By means of a diagram Mr Robinson showed how in the exports and imports alone in New Zealand’s trading a deficiency of £16,500,000 had occurred, basing his contentions on figures taken from the New Zealand Year Book-

Butter Quota. i “ Consider the position with regard to our butter,’’ said the speaker. "In New Zealand the average annual consumption of butter is about 3Glbs. per head; in Great Britain it is only 121bs. per head. If the people of Great Britain could buy all the butter they required there would be no talk of quotas. Moreover, we would be able to import more British goods, which would create more employment in England. Because they lack the purchasing power to buy our goods we cannot purchase theirs, and industry in both countries is slowing down to a standstill. The present financial system is the clog which has to he removed."

The speaker went on to show how under the Douglas Social Credit proposals the trouble would be rectified, and after answering a number of questions was accorded a hearty vote of thanks.