ISSUE OF CREDIT?

Manawatu Standard, Volume LIII, Issue 264, 5 October 1933, Page 2

ISSUE OF CREDIT?

(To the Editor.) Sir, —In reply to your correspondent "Ignoramus," requesting me to explain through your columns the meaning of the fundamental basis of "Douglas Social Credit," viz., "The real co:t of production is consumption" : This is exemplified in the fa.ct that the "value" of any article derives solely from the desire to possess it. If no one wants it, no matter how beautiful or useful it may be, or how much it "cost" to make, then its (money) value is nil. If, on the other hand, a large number of people want it, then its value may be determined by the amount of money which the highest bidder can afford to pay for it. A neat way of expressing the process is as follows :—Question: ""What is the price of this article?" Answer: "How much have you got?" Then; that is the price of it. In reference to the criticism of the scheme suggested by Mr W. J. Poison for issue of credit which does not provide for ' 'consumer credit" sufficient to fill the gap between purchasing power and cost of production, the undisputed inability of the large majority of the people (consumers) to purchase food., clothes, and the general necessities of life, owing to the so-called shortage of money, better described as "tickets of exchange," is due to the fact that there is not sufficient in circulation to enable this to be done. If you realise this fact, it is necessary to analyse the position, to see how and why this state of affairs exists. The only problem we have now to solve is that of consumption, viz., distribution, and that as we know is merely a question of properly distributing an adequate supply of credit or "tickets of exchange." Under the existing financial system we cannot buy the goods that are produced, even if they were offered at half of what they had "cost" to make, and why is this so? The answer is that the wages, salaries, and dividends ought to be equal to prices, and ascertain whether it is possible to increase the factors on this side, or to decrease the factors on the prices side, or to add some new factor to the consumer side, so that the two sides may properly balance each other. The Douglas formula proposes to issue consumer credit to bridge the gap that has been roughly outlined in this letter. The means of producing wealth is in our hands. It is less selfishness than blind ignorance of the elements of economics and finance that prevents us from stretching out our hands, creating and claiming that wealth. The destiny is within the reach of the people of this country at this moment. Will we rise to its opportunity and inaugurate the age when material poverty reigning amidst a land of plenty shall be no more ? This is the real issue, the people alone can give the answer.—-I am. etc., PROGRESS,