The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-04-27
Liberal Viewpoint
by DR.. HARRY ELMER BARNES

Following the first Of series Of three articles
by Mr. Barnes the new social credit idea launched
by Major c. H. Douglas British economists.
This theory, which has found considerable support
throughout the world, is being expounded this
country by Major Douglas
HOWEVER much. they may differ on ways
l. and means, all economists worth their salt
agree today that the critical problems in re-
storing prosperity under capitalism centers in
mass purchasing power
Capitalism rests upon the sale of goods at
an adequate profit. Goods can not be sold I'M
less the customers have the money with which to
purchase. Thus far they have not had slf1-
Gent purchasing power and, therefore, we have
been subjected to recurring depressions. the
last Of which threatens the very foundation of
the capitalistic order
Monetary problems have attracted wide at
tention in the last couple of years Imitation
| has been vigorously debated but difficult as if
may be to deal with the matter of nrintino
money 1t is still more problematical to find some
manner OF getting the money, once printed out
into the hands of the masses Unless this is
done however, imitation can possess no great
practical value.
Two proposals. for example which have
been suggested for distributing this mass mr.
chasing power are the bonus and public works.
The bonus is not only temporary plan but
| also sets bad precedent. Public works are q
Sounder proposition, but they, as we'll are but
OF lnsurlng steady flow of purchasing power.
IT is for this reason that no little interest at
taches to the visit of Major c. H. Douglas
to New York City and other points of the United
States of America.
1 hold no brief for the Douglas plan in par
ucuIar, out 1t is program which is headed in
the right direction. 1t primarily is concerned
With increasing purchasing power
capitalism and democracy. 1t does not resort
to Fascism and to the extreme RECOMMENDATION of
industry. -
Major Douglas is a Scotchman by birth and
an engineer by profession. He spent many of his
carrier years IN India. He developed definite
interest in public finance. During the World
war while he held post in British industry he
became impressed with the fact that the total
wages and salaries of workers did not equal the
retail price Of goods produced
HIS discovery raised the fundamental oues-
n ton OF how we can expect the masses to buv
all the goods produced for home consumption
II their income did not equal the cost Of the
commodities offered for sale
Further pondering this question he evolved
MS social credit idea. 1t is embodied in three
DOCKS economic Democracy" Social Credit
and The Monopoly of Credit" the first of which
was published in 1920
1He movement ne mas launched has gained
heaoWay IN the British Isles and Europe and has
become especially popular in Australasia. Major
douglas has just returned from the latter area
where he addressed great throngs and broad
cast his message to millions over the radio.
Several groups in the United States are de-
voted to his program
The social credit idea is now sponsored nv
several other important English writer's besides
MAJOR Douglas, namely Frederick Soddy, P. w
Martin and H. M Hattersev