DOUGLAS PLAN.

Waikato Times, Volume 117, Issue 19545, 6 April 1935, Page 9

DOUGLAS PLAN.

(To the Editor.). Sir, —The New Zealand Welfare League, as they term themselves tsay they have not heard of or seen a Douglas plan. All I can say Is they can not have looked very far, as’ the suggested plan for New Zealand has appeared in your oolumns more than once. However, with your Indulgence, I will briefly outline the plan. The' Douglas proposals simply involve that the nation ishould re-assert it’s right to the ownership and control of money, and that money (financial credit) should be issued to expand or contract with' production (goods) and (Consumption. I trust that is simple arid understandable? Having regained .the control of the money system, that a national oredit authority be set up, to be composed •of, say, nine members, to be elected, three by Parliament (not Government), three by farmers and trade unions, one by universities, one by banking interests and one by municipal bodies.

This National Credit Authority will control money (credit) as the Supreme Court controls justice, in accordance with laws given to them by. Parliament, but free from. Government interference. What it, the nation, can produce in real credit (goods';, and services) will be the limit of its creation of financial, credit. Is that plain? ' Just price means articles or goods will toe sold -at their cost of production by means of a discount on all purchases made. This discount will be paid out of sooial or costless credit. National dividend: Exactly what that will be is a detail which 4 must be determined toy what is required when the system oomes into .operation, or, in other words, after an economio survey has been made. Therefore the Douglas proposals are—1. National Credit Board, controlled toy-the people for the people. 2. Just Price. 3. .National Dividend. No business need toe thrown out of commission; no banks -closed; no dislocation of industries. The only thing necessary Is to alter the system of creating credit to the 'demands of production limit. —I am, etc., E. M. MASTERS. Hamilton, April 4, 1935,