A MARE'S NEST.

Waikato Times, Volume 116, Issue 19399, 27 October 1934, Page 9

A MARE'S NEST.

(To the Editor.)

Sir, —The essayist who wrote the Majority Monetary Report, in his anxiety to discredit the Douglas proposals, makes some very remarkable statements. On page 82, paragraph 289, a figment of his own Imagination is set up and then knocked dowm The illustration is extremely crude, as readers can judge for themselves. The suggestion had been made that In instituting the just price for a start retail prices of all essential goods should be reduced by one-third —that is to say, the retailer would collect two-thirds from the public and onethird from the credit authority on proof of sale. “If we assume that consumable goods to the extent of £60,000,000 are sold annually and. are subject to the subsidy,' each‘year there would he K the one-third subsidy of £20,000,000 floating about uncancelled; in five years at least £IOO,000,000 would be added to available purchasing power.” "What arrant nonsense I

The essayist overlooks the fact that Douglas proposes to Institute an up-to-date bureau of statistics, and if goods to the value of £60,000,000 are produced, he or any one else of common -sense wants to know how much money was actually paid out in wages, salaries and dividends during the time the goods were being produced. It is idle to “assume” or “imagine"; we 'must know exactly. Statistics may show that only £40,000,000 has been distributed; since goods are produced to be used, it is obvious that in the present case there is a -shortage of £20,000,000, which Douglas proposes to issue as a subsidy to retailers, and so make it possible for the £60,000,000 of goods to be sold if l they are wanted. If the goods ai’e not sold no money is issued, the goods being carried forward to the next accounting period. To issue £20,000,000 over the actual cost of £60,000,000 would be rank Inflation, and foreign to the Douglas proposals. It is comforting —in fact, it gives one that feeling of "confidence” so essential to the national welfare —to know that in the gentlemen who signed this valuable report we have such a reserve of wide financial knowledge to fall back on in case of emergency. The writer has no doubt whatever that if any or all of these gentlemen were called upon to represent New Zealand at .any future monetary conference in London that Sir Otto Niemeyer would meet their boat, give them a good time, and' see them off again with a kindly pat on the back, at the same time telling them that they were very clever fellows.— I am, etc., B. G. YOUNG. Gordonton, October 25, 1934.