GERMAN REARMAMENT

Otago Daily Times, Issue 22987, 16 September 1936, Page 4

GERMAN REARMAMENT

I TO THE EDITOR Sir,—ln Friday's issue of your paper there was a leading article on German rearmament. In short you write that consideration should be given to Germany's economic needs. It would have been helpful if you had gone further and suggested what should be done. I submit that matters would not be rectified even if the former German colonies were returned to Germany for the reason that though in 1914 she had these possessions economic or trade necessity drove Germany into the World War. To a large extent Great Britain and Germany economically are in the same position, both have to rely on the outside world for raw materials and hence world trade. In modern war finance plays the most important part. Germany, though bankrupt in 1931, now appears to have unlimited credit to spend on armaments, and it is obvious that she is making use of costless credit which can be created to an unlimited extent provided no or very low interest is paid on the money. Even if interest is paid and becomes oppressive it can be modified or repudiated. Great Britain, on the other hand, though working on the creating of money through the banks, pays the ordinary interest on this money. I submit that as far as Germany is concerned she would not be on a sound basis unless she is given colonies which make her self-supporting; wool and rubber are, for instance, important requirements. However, if she became self-contained and adopted the economic system which did away with interest payments there is no reason why the German people should not live like millionaires, for, after all, labour is all important. There is another phase of this matter on which it is interesting to speculate. There is no doubt that on many occasions recently the British Lion's tail has been twisted, as for example by Italy through her recent war, which was against the wishes of Britain and incidentally most of the rest of the world. The British Navy could easily have closed the Suez canal and the Straits of Gibraltar, which would have made it impossible for Italy to move her troops to Abyssinia. It appears clear that the financial systems of the various countries are playing the leading part in current events. The capitalist system, in order to save itself for the time being, no doubt welcomed the rearmament of Britain and France, but is it not obvious that a war could not be supported by "this system for any excessive taxation would only mean repudiation which would be fatal to the capitalist system? I, therefore, submit that it is very unlikely that a European war will take place. Germany and Italy obviously realise the limits of British finance, and it is evident that we arc about to witness concession after concession to these countries and also to Japan, which country is said to be working on partial social credit. It is said that British finance is controlled by four or five men not of British blood. If these few men refuse as far as they are able to allow the financial system of Britain to be altered and at the same time refuse the financial support necessary for Britain to protect herself and the dominions by force of arms, then the position of Australia and New Zealand is precarious. Events at present are moving very fast; the financial system which was possible while markets were expanding is near its end, but much damage can be done before the new system based on plenty is adopted by the world. The New Zealand Government, through adopting costless credit for its housing programme, has shown that there is no magic in money, and that the payment of interest, which is the weak point o the capitalist system, is not necessary. When this system is generally adopted wars will cease and the era of plenty dawn. From your footnote to my letter in last Wednesday's Daily Times it might be inferred that I am a devotee of Douglas Social Credit, which is not the case. However, I am convinced this movement is doing splendid work. —I am, etc., C. S. J. Berkeley, Capt. Hyde, September 13.