8.—3.

and shall be registered as non-transferable and as not good security for loans. On the death of a holder, or his permanent residence outside the Dominion, such shares shall be cancelled. VIII. (Insurance) Suspense Account No. 2 shall be retained as a Dividend Equalization Fund to ensure that the dividend on all preference and debenture stocks allotted under the preceding clause shall receive a dividend at the agreed rates. Should this fund increase at a rate exceeding five per cent. (5%) per annum, such excess shall be allotted to a pro rata increase in the dividend on such shares as have been subscribed for under clause VII. IX. These proposals are intended for consideration in the light of the correspondence which precedes and accompanies them.

Government Monetary Committee, Parliament Buildings, 22nd February, 1934. . Major C. H. Douglas, Fifth Floor, Evening Post Building, Willis Street, Wellington. Dear Sir, — I have received your letter of the 21st instant, together with the proposals put forward by you for the better working of our monetary system. The Chairman has directed me to reply that the Monetary Committee wish to take advantage of your offer to elucidate any points in your scheme which may not be perfectly clear, and for this purpose the Committee will meet you, as you suggest, at 9.30 on Saturday morning, the 24th instant. The Whips' Room, Parliament Buildings, will be used for the occasion. As was indicated in my letter of the 19th instant, the inquiry into proposed monetary systems was set up with a view to examining all alternative schemes in relation to the existing monetary system. The Committee, therefore, cannot agree that it would be wise or logical to bring down a report and later take further evidence as to alternative monetary systems, especially in view of the fact that your presence in New Zealand gives the Committee an opportunity to discuss personally with you your social-credit plans. As you will be in New Zealand until 6th March, the Committee extend a further invitation to you to place before them the general outline and basis of your credit proposals. This, of course, may involve an examination of the working of the present monetary system ; to this end, the Committee will call all possible evidence in order that there may be a searching examination of all proposals placed before them. The Committee are, of course, prepared to suit your convenience and to meet you in Auckland or any other town in New Zealand in which you may have engagements. Yours, &c., W. B. Sutch, for the Secretary.

Fifth Floor, Evening Post Building, Wellington, N.Z., 23rd February, 1934. The Secretary, Government Monetary Committee, Parliament Buildings, Wellington. Dear Sir, — I am obliged by your letter of the 22nd instant, and will be at the Whips' Room, Parliament Buildings, at 9.30 a.m. to-morrow. I note your remarks in regard to the submission of further matter for the consideration of the Committee, and as stated, 1 shall be happy to render any further assistance at a somewhat later stage of the proceedings, should you find that your examination of the existing system warrants procedure which would traverse the general propositions upon which current finance is based. I regret, however, that the whole of my time prior to my departure from New Zealand is now allotted, and any further assistance I am able to render will either have to be by correspondence or on a future visit to New Zealand. I will furnish you from time to time with my address, between my departure from New Zealand and my arrival in Great Britain, probably about the beginning of May. Yours, &c., C. H. Douglas.

Wellington, Saturday, 24th February, 1934. Witness : Major C. H. Douglas. The Chairman : I am sure it is a very great pleasure to us this morning to be privileged to welcome Major Douglas at this meeting. We look upon him as a distinguished visitor, and one who has spent many years studying the question of social credit and purchasing-power, and all other monetary matters, and coming as he has done to New Zealand on this occasion and the Committee having been set up as the result of petitions that were forwarded to Parliament asking that the present monetary system should be considered, it is fortunate that his visit has taken jjlace during the Committee's investigations. Unfortunately for us, from the correspondence that we have had from Major Douglas, while he has suggested that he could evolve a plan for New Zealand, he unfortunately finds himself in the position that there would not be sufficient time during his present visit and he has made certain proposals to the Committee for their consideration. However, I would say even now, at this late

167