Some general comments made to a correspondent outside the discussion 
group.  Comments in square brackets [] have been added.  Note the 
references to "Binary Economics":

Dear [   ]:

The association of Social Credit with the political party gathered some 
earlier more sound elements who preceded it but eventually degenenerated 
to the point where it became a distinct liability to the promotion of 
the original philosophy and policy.  What would be left of genuine 
Social Credit if it had not been for those who preserved it in the 
non-party sphere?  The Alberta situation was that a movement had 
developed, more than a political party, and at that time Douglas felt a 
responsibility to offer what sound guidance he could.  But he did not 
promote S.C. as a party.   You will remember, also, that in the early 
days Douglas had hopes that his recommendations would be accepted for 
their soundness but learned very shortly the reality that power politics 
would preclude such acceptance because his policy objectives were not 
compatible with the financial powers and their hanger-ons.  

[Response to the charge that there have been disagreements among 
non-party Social Crediters:] There have often been disagreements among 
non-party Social Crediters but in the main these have stemmed from a 
desire to follow a course that was true to Douglas's proposals and 
differences of opinion in this area, especially regarding tactics and 
strategems for advancement.  The difference is that these differences 
were not generally related to power politics--but rather how to best 
follow and implement Douglas's ideas. [That is, service to social cause 
rather than personal aggrandizement has usually been the motivation.] 
Certainly, whatever party is in office, Social Credit or otherwise, only 
effective militant surveillance and demands by the public with required 
sanctions could effect a sound course.  Politicians will be Politicians! 
 I think the Roman Senator Cicero once said that politicians were not 
born but [censored].  He had a lot of experience in this field--and I 
don't see much evidence of great improvement.
 
I think it would be rather euphemistic to say that Social Credit had 
success in Alberta and Quebec.  An army was recruited but was 
effectively derailed.  Because of earlier associations and some more 
sound elements, I would agree that a resurgence of Social Credit ideas 
would likely be more easily achieved in these two provinces.  But in 
Quebec, i.e., the non-party Social Credit "Michael" people (Louis Even's 
Union of Electors or "White Berets")  [preceded party action and] remain 
as the primary source of Social Credit thought and action.  While I had 
considerable respect for Real Caouette who originated with the non-party 
Union of Electors, the political party which he started 
[characteristically] disintegrated in a disastrous way.  Party politics 
DIVIDES the people--and eventually drives them to disgust and apathy.
 
[Reply to a concern that concentrated support and agreed adherence to 
essential Social Credit doctrine may tend to totalitarian behaviour:] I 
don't think that general agreement on policy, etc. in any way suggests 
totalitarian behaviour.  If that were true nothing would ever get done 
because any strong consensus would be regarded as unacceptable.  I agree 
that--provided it is genuinely engaged in as a quest for 
truth--independent thinking is a sign of intelligence, but totalitariain 
behaviour is only present when people are deceived, compelled, 
intimidated or coerced into thought or behavior modes.  People who are 
forever divided will never achieve anything in association--and the less 
they understand things in a disciplined way, the more divided they will 
be.  The experts must come together through applied study and the 
general masses, in the nature of things, can be unified in general 
policy demands rather than technical matters.  [No one has to accept 
Social Credit but those who profess it have an obligation to understand 
it as thoroughly as possible.  Eclecticism is not helpful to 
understanding the specific subject--especially if it precedes an a 
disciplined study of the subject.]
 
Binary Economics:  Social Credit seeks to restore to the individual his 
or her rightful share in the communal capital via the Dividend and 
Compensated Price.  [Whether the recipients spend or invest funds made 
available via their Dividends is a matter of choice.]Binary Economics as 
I understand it seeks to distribute dividends from WITHIN the 
price-system which is a denial of Douglas's analysis of the costing 
system which demonstrates the impossibility of balancing consumption 
with production via income payments internal to the system.  Moreover, 
my impression is that in order to provide such dividends as Binary 
Economics would provide, an enormous and exponential increase in 
production is posited.  In other words, it would have devastating 
environmental effects, while it still would not deal with the problem 
exposed by the A+B Theorem.  It is still bound to the idea that all 
consumer access to wealth must come from work--do not loans to acquire 
shares have to be repaid?  Many people have neither the interest nor the 
ability to be directly involved in adminstrative aspects of productive 
enterprise but that does not, surely, deny them the right to life and 
the means to it.  If I am stranded on the classical remote island, I am 
going to eat the fruit to be freely found there, I can assure you, with 
an entirely clear conscience.  [And so long as the banana and coconut 
trees produce an abundance to which I have access, I am not going to be 
even slightly concerned that I have no formal ownership of these sources 
of wealth.] You may have noticed some critiques which have recently 
appeared on the Web of this notion that everyone MUST have direct 
ownership in capital.  

What Social Credit wants to do is to ensure that citizens have ACCESS to 
the results flowing from the productive system by crediting them in 
prices with the values of capital appreciation credited against the 
lesser value of capital depreciation.  [The "Binary" obsession with 
direct capital ownership seems to entail a serious confusion of 
function.  Douglas said that we need an "aristocracy of producers, 
serving and accredited by a democracy of consumers"--in other words, a 
body of specialized experts, serving and removable by the general body 
of consumers.  Social Credit seeks a consumer-motivated economy--in 
which economic democracy has been added to political democracy.  The 
only effective means of achieving this end is by giving consumers 
through FULL income the right to exercise choice to which producers must 
respond or cease to exit. Thus the consuming public would have effective 
decentralized sanctions which could never even be approximated by the 
decision-making procedures involved in capital ownership. The aim is 
immanent sovereignty.]
  
My impression of Binary Economics is that it is not very disciplined and 
not realistic.  I have read some of their agonized debates about how to 
effect their policy and it sounds like a nightmare to me.  Social Credit 
believes that everyone has an inheritance to which they have an 
immediate right--not something that might eventuate sometime depending 
upon the success or otherwise of some specific enterprise to which they 
are attached over a given period.  

[Rodney Shakespeare repeatedly, and perhaps sometimes justifiably, 
complains that the critics of Binary Economics have failed to fully 
examine its proposals.  By the same token, his repeated seemingly 
inexplicable suggestions that Social Credit fails to effectively address 
the issues relating to capital ownership and individual citizens would 
seem to indicate that he has not really made a thorough, or 
conscientous, study of Social Credit as put forward by C. H. Douglas.]
 
Anyway, [   ], these are some of my thoughts and impressions.  I attach 
a PDF of Douglas's "The New and the Old Economics" in case you have 
never seen it.
 
Sincerely
Wally

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