COMPENSATING PRICES.

Waikato Times, Volume 121, Issue 20126, 23 February 1937, Page 9

COMPENSATING PRICES.

(To the Editor.) Sir,—Your readers may have noticed that the most earnest advocates of compensating prices are also prominent members of the Douglas Social Credit Movement. Many of them hold office in the two organisations. so that, obviously, the aims must be identical. Perhaps they urge the adoption of compensating prices because they believe that the only way they could be financed is by the issuing of new money along the lines laid down by Major Douglas, Colonel Closey, Mr Furniss, Mr Hunter and Mr Penniket, to name only a few, aro active in both camps, so that they must be allied forces.

When new ideas like these arc brought forward, naturally one commences on the financial end. Whenever an advocate of compensating prices is asked about this matter lie usually says that the workers who go to Hie Arbitration Court and demand higher wages do not ask where the money will come from, so why should Hie farmer? That sounds well, but it is not realty convincing. The worker knows llial if lie gels more wages, then the employers will get reduced returns, or prices will rise and the consumers will have to pay. That is so obvious that lie does not need to face the question. He demands a larger share of what there is. Now tlie man who wants compensating prices cannot argue along those lines. There are no employers to be mulcted, and no consumers here who can lie forced to pay anything like sufficient lo give him what lie wants. So that the question as fo where the money will come from is quite to the point. And it is clear that It could only come from a free issue of money, to he paid lo I lie producers. A debit would lie created somewhere, and of course in Hie books of Hie Reserve Bank. II would appear nominally as an asset, but what would be tiie value of an asset that could never be transferred or liquidated ? II seems clear 1., me that Hie movement for compen - sating prices is solely a means for achieving the Social Credit end. and that explains Hie presence of so many men under both banners. in die meantime the Social Credit aspect is being kept under Hie soft pedal. \Ye have heard little «»f it of laic. The idea is to force the Government, if possible, into accepting Hie compensating price scheme in the belief that it. in turn, will force the Administration to resort to Douglas credit ideas. That is why Hie question as to money is so quickly swept aside.—l am. etc., It. POYALL. Hamilton, February 22.