The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-05-02
New Plan Is Advocated by
Scottish Engineer
Now in u. S.
BY WILLIS THORNTON
NEA Service Writer

By WILLIS IhOhN lON
NEA Service Writer
NEW YORK, April Soft Father
Charles Coughlin has been con-
WINGED by his recent Washington
conference with Major Clifford
Hugh Douglas, America might see the
rise of social credit" movement
which has already spread far
through England, Scotland, Canada,
Australia, and New Zealand.
The Douglas plan is a scheme for
complete reorganization Of the bases
of money and credit. It provides
for issue of credit to citizens as con-
sumers in proportion to national
production, replacing the present
monetary system, which Douglas be-
lieves tends to compel purchasing
power always to fall increasingly
below production and prices.
Little known in America, Major
Douglas has created a stir abroad.
Four or five English publications
boost his plan. In Australia there
are more than 1000 Douglas Credit
Societies, with 100000 members-a
lot for Australia.
Australians Join Group
New Zealand has sixteen men,
bers of its parliament devoted to
the Douglas theory.
Major Douglas has only recently
arrived in New York after a speak
ing tour through western Canada,
where the Alberta government is
preparing to examine officially his
proposals. President De Valera Of
Ireland has studied it carefully.
In England, the Kibbo Kift, a
postwar youth movement. espoused
it and joined with the Legion of
the Unemployed to form the Green
Shirts, a uniformed and disciplined
organization, to carry Douglasism
forward.
Progress in America
The Marquis of Tavistock Is the
active English leader, Major Doug
las himself keeping out of its po-
litical aspects.
Even in America, some progress
has been made by Douglasism. He
recently lectured in New York at
the New School for Social Research,
under auspices of the New Eco
Monies Group. There is such a
group in San Francisco.
The New York group has even
prepared a definite plan to apply
Douglas economics to the state of
New Jersey, and has presented it
to chambers of commerce, members
of the Governors staff, and other
/ influential people. Senators Bron-
son Cutting and Elmer Thomas are
reported much interested.
"Lenin of Conservatives
So if Father Coughlan espouses
! this cause in his forceful radio
speeches, it might give the Ameri-
can phase of the movement a big
boost.
Major Douglas is a sort of 'Lenin
/ of the conservatives, who believes
| that today's troubles are due prin-
cipallv to a mere technical defect
in bookkeeping. and may be RENE
died by a peaceful overturn of that
system of bookkeeping without dis
turbing private ownership or any
of the rest of the system of produc-
ton and social life as they are to-
day-except banking and money.
He believes that private produc-
ton of goods is all right-that in
| asmuch as it has shown the ability
to produce more than is required
it should be let alone.
Explains His Theory
This is where he suffers from So
cialists. Communists, Fascists. and
other lists who center on controlling
means Of production.
The Douglas theory is that where
we have fallen down is on the con-
sumner angle. not the producer an
gle: that what is needed is TO Gre
ate credits for all consumers which
will enable them to buy what is
produced.
The price of anything, Major
Douglas contends, must always
under the present system. be A plus
B-A being all wages, salaries. anc
dividends, and B being banking
charges. taxes, raw materials. over
head. Both go into the price OF
I goods.
Credit to Consumers
But since only the A part is con-
sumner purchasing power. A can
never equal A plus B. and the diff
ference must continually be made
up by money credited by banks
borrowed from banks. and bearing
/ interest.
Thus a continually increasing
debt structure is created. and the
lag between consumer purchasing
power and cost of goods grows
wider.
Douglas then proceeds to argue
that the thing to do is TO calculate
the value of goods produced, and
taking the power to issue money
and credit from private hands, issue
national credit directly to consum-
ers in proportion to the amount OF