THE NEW ECONOMICS.

Waikato Times, Volume 119, Issue 9817, 22 February 1936, Page 7

THE NEW ECONOMICS.

(To the Editor.) Sir, —i have no desire to continue ' further an academic debate with Mr Calshore. It is clear from his letter of February 18 that his knowledge of the new economics is very imperfect and limited. Under our present system we export for money primarily to pay interest and debts of banks, and because it is a method used to aoco-unt partly for the gap between the real and the financial cost. As this gap is ever with us exports are only a palliative as against a free issue of purchasing power to equate real and financial costs. When 1 pointed this out in a previous letter Mr Calshore, in reply, asked a question about wool exports, plainly showing that N he iiad not read that letter, or, as his present reply shows, he does not understand terms used or the principles underlying the new economics. This attitude is confirmed by his statement regarding a proposition of Euclid. If Mr Calshore had investigated the proposals of Social Credit step by step, taking into consideration every factor, the whole case is not only proved, but confirmed, by present facts in our economic life. Regarding his wool example from New South Wales, the amount paid for the wool goes to the primary producer, but that cost must be added to all prices charged for the other processes right up to that of the distributor in the shop, and the customer buying the clothes must pay in the price his proportion of all the costs of production, and that must be accumulative. The example is perfectly clear, and who disputes It? Will Mr Calshore quote in full where Major Douglas mentions assuming a “flow in purchasing power?” I have already suggested that this contributor should attend a meeting of the local branch, and as this discussion is an ancient one, and cannot produce any tangible results, so far as I am concerned the matter is closed.—l am, etc., WATSON HOLMES. , Hamilton, February 21.