IN the dawn of man's history, the exchange of goods was done by direct
barter. Men's needs increased until barter became inconvenient, and it
was out of the necessity for facilitating the exchange of the
ever-increasing variety of goods among an ever-increasing number of
producers and consumers that money was invented; money was thus a
ticket for goods, a claim to goods.
There was a time when civilisation was so little developed that you
could only trust a stranger as far as you could see him, or not so far.
During that time, the money took the form of a slab of precious metal;
gold was the most suitable metal, as it was rare and therefore a small
quantity of it represented the price of a large quantity of goods; so
it was easily handled and concealed from thieves, and was practically
indestructible. In Britain, however, we have now reached such a stage
of general stability that pieces of paper of no intrinsic value in
themselves are accepted in exchange for goods; the pieces of paper
(Bank Notes) derive their acceptability from the fact that the
Government of the Country has declared them legal tender, that is,
money by law; so that every trader will accept them in return for his
goods, because he knows that he, in his turn, can buy what he requires
with these same bits of paper. During the War, the pieces of paper
legalised as money by the Government were called Treasury Notes. They
were just as acceptable under that name as the former Bank Notes. No
backing for the Treasury Notes was necessary in the shape of gold; yet,
they did the same work as Bank Notes, which, as we shall now see were
convertible by law into gold. No one inside this country cared a scrap
whether the legalised paper money was convertible or not into gold; he
didn't want gold; he wanted goods, and got them, through the scraps of
paper legalised by the State as National Money. The function of Money
was as a common denominator of values for convenience in the exchange
of goods; it did not need to be convertible into a fixed weight of a
precious metal; it was sufficient, by its legality as money, to be
convertible into the goods or services required by those who presented
it in payment for the same.
THE "GOLD STANDARD."
Under the Gold Standard, our monetary unit, the pound, was made
equivalent in value to 113 grains of gold. If you had pounds, you could
exchange them for gold. Few people wanted to do this, because gold has
limited functions in general utility; you can't eat it, drink it, make
clothes of it or even flirt with it; before you can make use of it, you
have to exchange it for something you want. Until 1914, the money was
partly in the form of gold coins; partly in the form of Bank Notes for
which a stock of gold was kept in the Bank of England for
convertibility of the said notes to Gold if such a demand were made;
partly in silver and copper coins. All were equally acceptable as
money. It did not matter which the money vas actually made of, if the
law made it money.
By the Bank Charter Act, the Bank of England was given a monopoly for
printing Bank Notes; but every Bank Note had to have its equivalent of
gold in the Bank Vaults before it could be issued. (With the exception
of a specified amount of Notes which the Bank of England was authorised
to issue without any gold backing, an authorisation which showed that
those responsible for it did not themselves really believe in a Gold
Standard! This issue was first only =A314 million pounds, but is now
about =A3200 million pounds. It is called the 'fiduciary issue,' which
means that it is backed by faith, not gold.)
This made the issue of National Money, over and above that of the
fiduciary issue, dependent upon the possession by the Bank of an
equivalent in the metal Gold. The effect of this was--
(1). That the issue of Money was divorced altogether from its
original purpose of distributing nature's bounty and the fruits of
civilisation, and became dependent on what amount of Gold the Bank
maintained in its vaults, instead of on the needs of industry.
(2). When other countries also went on to the Gold Standard there
ensued a scramble for Gold by the nations of the world.
(3). Under these conditions, the people who could corner Gold
became masters of the International Industrial situation, because on
the cornerers' willingness to part with Gold depended the ability of
the Gold Standard nations to carry on their own affairs, i.e. to get
enough National Money in circulation to meet the necessities of trade.
(4). Gold was speedily cornered, chiefly by Jews; and ever since,
by the restriction they have been able to place upon the issue of money
in the Gold Standard countries, these Jews have been able to hold out
for their own price for the use of money, i.e. their own rates of
interest or usury. It is necessary to realise that this power was
theirs from the moment the scarcity of national money was deliberately
created and its value made dependent on a commodity--gold--which they
almost entirely control to-day.
(5). The Financier can, by using his control of Gold to expand or
contract the volume of Money (currency or credit) in circulation,
create boom or slump in Britain; and his Jewish friends can buy up our
industries during the slump period for an old song.
This is the real cause of nearly all the misery, unemployment and wars
from which we have suffered of late--the struggle for the possession of
a metal of little utilitarian value by the Nations of the World. Comedy
or Tragedy? What matter, if you will only realise it NOW?
The Gold Standard is a false one. It was quickly found that it could
not supply the industrial need for National Money, and for a time the
country was saved from its worst effects by the development of the
cheque system. That is to say, the Private Banks (now practically the
"Big Five") built up a structure of Bank Credit amounting to ten times
the value of the Gold Backing; this was done by playing off debtor
accounts against creditor accounts, i.e. issuing book-entry loans
amounting to ten times the money they possessed, in the hope that all
the creditors would not present their claims at once. This is really
nothing but a gigantic confidence trick, although the vast number of
people employed in Banking have not the least realisation of the fact.
If all "depositors" of a Bank were to present their claims for
repayment together, as they might in a great national crisis, there
would not be 2s. in the =A3 for them; since neither they nor the Bank
possess the Money they claim, it is clear that about 90 per cent. of it
has simply been invented or assumed to exist so that interest can be
charged on it!
On 4th August, 1914, when a run on the Banks became imminent, the only
way that the Banks could be saved from the consequences of this trick,
which even to-day enables them to earn unjustifiable rates of interest
on their depositors' money whilst paying the depositors =BD per cent.,
was by the Government stepping in, suspending the Gold Standard Clause
of the Bank Act and declaring a Moratorium. The Moral here is that the
Real Credit of the Community does not depend on the Banks but on the
Nation, which has to save the Banks from the consequences of their own
confidence trick!
As Hitler said in 1937:--"Work is the safest cover for a currency."
HOW GOLD CONTROLS PRICES AND POLITICS.
PERHAPS the most important point for the public to realise about this
astounding system is that the power to alter the price of goods (taken
as a whole) upward or downward now rests in the hands of those who
control the Banking Machinery. The more 'central' the Bank, the greater
the control. The Laws of Supply and Demand have been suspended in
favour of the dictatorship of the Financiers.
When Money is made abundant to boom demand, more of it is required to
purchase goods, so that the prices of the latter rise. When Money is
made scarce, to cause a slump, it acquires a scarcity value, and the
prices of goods go down, since less money is needed to buy them from
the money-starved producer.
When Prices rise, hope and confidence also arise in the hearts of
producers and their activities are increased; they engage more labour
and extend their businesses. When Prices fall, hope and confidence
vanish, whereupon producers discharge workmen and begin to contract
their business obligations.
The controllers of the Money System therefore arrange booms and slumps
at will, causing Money to be abundant or scarce, never permitting,
however, the volume of the 'abundance' to equal and remain at a point
which could satisfy the full needs of industry, as this would destroy
them--for their very existence, as well as that of the banking system
of usury itself, postulates a stabilised ratio of ten borrowed pounds
to every one deposited.
The War was won on Treasury Notes without Gold backing. But when the
War was over, the Jew Financiers, acting through the League of Nations,
managed to re-impose this false standard on our own country and others,
and thereby to re establish their control over our Industries. The War
left us heavily in debt; and the exchange value of our pound fell
heavily as compared with the dollar. For the benefit of the holders of
Gold, our Democratic Governments deliberately withdrew enough Money
from circulation to make it scarce and give it a scarcity value; thus
artificially restoring the pound to an impossible equality in exchange
value to that which it had before the War when we were the world's
creditors.
This process doubled the amount of work which debtors have to do to pay
off the money obligations; and made it impossible for British Industry
(always a debtor) to recover.
Had it been possible for Industry to reduce its wage-bill in conformity
with the increase in the purchasing-power of money, some of the damage
would have been avoided. But a Nation is not an Account-Book, and the
wage-earner, ignorant of his real enemy, Finance, resisted any apparent
reduction of his wages which were therefore maintained at an uneconomic
rate in the sheltered industries, and were forced down by economic
pressure (strikes and lock-outs being the necessary accompaniments) in
the unsheltered ones.
This planned contraction of the currency reduced prices and wages with
the effects already explained. The secret of the Coal Strike and the
Great Strike of 1926, and of our desperate position ever since is to be
found in the Planned Money Scarcity in the interests of what is called
the "Financier." In 1925, when we were put back on the Gold Standard on
the same basis as before the War, the English price-level and
wage-level was given over to American control, and that means control
by the Jew Money Power of Wall Street, for it had the gold!
Observe now, that the Financier is one whose stock-in-trade is Money,
and who manipulates it so as to make more of it. His activities are
contrary to the interests of the Capitalist whose wealth lies in
factories, land, mines or ships, and who uses that wealth to make goods
or services which other people want. It is always the Jews' plan to
divide and rule, so that one Gentile will fight another whilst he
scoops the pool; that is the explanation of Marxism, which sets the
Working Man against the Capitalist whilst the Jew Financier, who
finances Socialism and Bolshevism, looks on and increases his power
over all.
The Jew is now busy pushing forward Plans for greater control over
Industry; he endeavours to side-track the Gentile into the blind alley
of restriction of production, telling him that he cannot manage his own
affairs, that he needs a Brain Trust (Jewish) to do it for him, and, in
short, doing all that is possible to divert the attention of the
Gentile Industrialist' from realising that his trouble is the Money
Fraud for which his Jewish advisers are responsible, and on which their
power over him depends.
Although we are (1938) now nominally "off" the Gold Standard, we are in
reality on a depreciated Gold Standard, our National Credit being still
used and manipulated as though Gold was its real basis.
THE COMMON-SENSE OF REFORM
OUR National Money must be divorced from its association with Gold;
when we buy goods from abroad, we shall not pay the foreigner in gold
which he can take away and spend elsewhere, even building up, in his
own or some other foreign country, industries to compete with ours, as
Germany did on our Gold before the War; we shall pay the foreigner in
paper money, exchangeable for goods and services only in this country,
for we are the best customers in the world and foreigners are obliged
to find a market here, and we can insist they do so on these reciprocal
terms. It is a complete fallacy to think that the pound token has to be
pinned definitely by law to represent a fixed quantity of any one
commodity to be delivered on-demand; from the foreigner's standpoint,
the purchasing-power of a pound is measured by its exchange relation to
the foreigner's own currency unit.
But the amount of money issued has, of course, to be controlled;
otherwise, "inflation" (superabundance of money, which reduces its
purchasing-power, i.e., sends up the price of goods) would result.
The Nation must regain control over its own credit, and Gold take its
proper place as a commodity to be bought and sold like any other
commodity, such as wheat or coal.
A COMPARISON BETWEEN THE ARYAN AND THE
JEWISH IDEAS OF FINANCING
BRIEFLY, the Aryan idea is constructive and the Jewish one destructive.
The Aryan conception of financing an industry is to put his money into
it as a partner or shareholder, take his risks like a man and abide by
the result shown by profit or loss.
The Jewish conception is to lend his money to someone else who will
take all the risk, the Jew having loaned on ample security. Contact
with Jewish methods has now resulted in the judaisation of the Aryan,
and most Britons follow Jewish methods to a certain extent, to the
detriment of our country and its future.
The Aryan conception of interest is reward for risk; the Judaic
conception of interest is ransom for the release of a scarce article,
money.
A good example of Jew methods is the cornering of Diamonds in South
Africa, whereby the price of diamonds is maintained at about ten times
the real value, so that the Jew can make easy profits; whilst ordinary
people are unable to afford to possess these beautiful stones. Huge
stocks of diamonds are kept in safe deposit, whilst rich pot-holes
known to be full of diamonds are concreted over, fenced round and
police-guarded so that no one can exploit them and spoil the market. If
the reader will now reflect that similar measures have been taken by
the Jews (with lots of Gentiles hanging on to their coat-tails) to give
an artificial scarcity value to Money itself, the Means of Exchange,
the nature of the finance racket which keeps millions out-of-work and
which has nothing to do with the real Capitalist, will become clear.
HOW JEWISH MONEY PRACTICES CAME TO
BRITAIN
IN Britain, usury was a practice forbidden by law to Christians until
the reign of Henry VIII, who permitted money to be loaned at a rate
less than 10 per cent. Edward Vi reversed this concession to usurers,
but Elizabeth renewed it. These concessions of Henry VIII and Elizabeth
were due to the fact that Gold and Silver were regarded as practically
the only real money, and had been hoarded by individuals to such an
extent that great scarcity of the means of exchange of goods and
services was experienced until some of the hoarded metals could be made
available to trade as loans on interest. This situation was the natural
result of advancing standards of living and increasing volume of trade,
necessitating more and more money than was available. It gradually
caused men to realise that Gold and Silver were not the only money. The
Bank of Venice was thoroughly successful in working a Money System with
irredeemable paper money, and had the Briton been left to himself to
work out his own destiny according to Aryan ideals, a paper money
system based upon a Goods Standard (the Tithe system was always on a
Goods basis until 1925) would undoubtedly have been a natural
development of the situation. But two things happened which stood in
the way of this typically Aryan conception for the basis of a sound
money system.
One was that Cromwell brought back the Jews to this country once more,
they having been expelled by Edward I in 1290.
The other was that William III came over from Holland as King of
England in 1689, bringing with him his Judaised ideas of Money,
acquired by his contact with the financial power and example of Jews in
his native country. Since his advent, debt has become a national habit
and credit a ruling power. In Holland the Jews who had settled there
after their expulsion from Spain and Portugal in the fifteenth century
had already saddled and bridled the country under the Debt System and
the Bank of Amsterdam, and had acquired a great share in the East India
Company; they financed William in his descent on Britain, and the Jew
Suasso, in particular, was William's adviser in financial (and no doubt
often in political) matters. The Bullion trade was transferred from
Amsterdam to London by the Jews.
In England, the results of this Judaisation was quickly apparent; Isaac
Pereyre, a Jew, was made Commissary-General of the Army in Ireland in
1690; the National Debt was instituted in 1693 to finance William's
continental wars; and in 1694 the Bank of England was established,
without any obligation as to a gold reserve, by a body of merchants who
lent =A31,200,000 to the Government in return for special trading
privileges--and 8 per cent! Ever since, the Jew has reigned supreme as
financial adviser to Britain's monetary policy.
A MODERN IDOLATRY
THE absorption of Jewish ideas of financing has brought about a curious
state of things; "British interests" abroad are now usually considered
to be identical with the interests of those few citizens whose money is
invested abroad.
The Modern Idolatry is the divine right of invested money to draw
interest long after the plant, railways, &c., on which it was spent,
have depreciated to zero.
Let us take the case of Loans from Britain to the Argentine, The
capital value of these loans would be largely spent in the lending
country, and that would cause a temporary boom in industry and
employment in it. But after about twenty years, the interest which the
Argentine would have paid totals more than the original loan itself.
Yet the lender expects to take his interest for ever, and even expects
somehow and some day to receive back from the Argentine the amount of
that original loan as well! It may be stated here that these Argentine
loans will never be repaid; because it is impossible to repay them.
Meanwhile, what effect has the arrangement upon the British citizens,
employers and employed--yes, and unemployed, who do not themselves draw
interest on Argentine loans? The effect is this:--As the Argentine has
to pay annually a large amount in interest to the individuals who do
the lending, it cannot afford, by about that amount, to buy British
coal and manufactures; thus, the interest on British loans actually
causes unemployment in mines and factories. But there is a worse aspect
even than that; because the moneyed individuals who make the loans
become, by the power of their money, a tremendous force in a democratic
(and therefore corrupt) State, and their influence, as far as the
Argentine is concerned, will be towards the encouragement of Argentine
industry, so as to enable it to pay their interest; observe, Argentine,
not British, industry! So, this powerful moneyed political force which
is exerted in all parties alike. encourages the export from the
Argentine into Britain of food products, whilst the British farmer and
agricultural labourer, who could, if paid fairly, produce better food,
remain in a state of unwilling, despondent unemployment, and the Land,
Britain's greatest asset, is left to go "back to the jungle," a fact
alone that means a stupendous capital loss to the nation.
It must be remembered also that even the interest that comes here from
the Argentine has been very largely re-spent in fresh loans either to
that country or to other countries.
Under Racial Fascist rule, "British interests" will be those of British
people as a whole, not those of individuals who lend money abroad.
TWO KINDS OF BANKS
IT is to be noted that the National Deposit Banks, such as are the "Big
Five", (Midland, Barclays, National, Lloyds and Westminster) are not as
a rule directed by Jews, but the International Loan Banks are almost
exclusively Jewish, such as N. M. Rothschild and Sons, S. Montagu and
Co., M. Samuel and Co., Seligman Bros., and S. Japhet and Co. All gold
bullion passes through the hands of three Jewish bullion firms who
govern the price of gold from day to day; these are N. M. Rothschild
and Sons, Mocatta and Goldsmith and Samuel Montagu and Co. In other
countries, it is much the same; international loan banks are in the
hands of Jews, and their interests are intricately interlocked. The
International Loan Banker, owing to his power over the exchange level
of sterling, governs the conditions under which the National Deposit
Banker works, and is the true governor of general wage levels in
Britain, and in consequence has immense political power to force the
British Government to follow a Jewish policy.
THE DOUGLAS SOCIAL CREDIT SCHEME.
THIS much advertised 'scheme,' which is attached to a destructive
criticism of the present financial system, a criticism which is sound
but not original, is entirely barren as far as any practicable reform
is concerned. It acts as a sort of side-tracking movement to prevent
people from getting on with sound monetary reforms. It attempts to
solve by mathematics a problem which is not mathematical, and that is
the explanation of the severe mental strain which is experienced by all
Social Credit students.
It postulates a National Dividend for everyone, which is several
degrees more immoral than the Universal Vote, for it takes no account
of the fitness of the individual to receive it; it is a miserable
appeal to the Mob by bribery. The schemes that have been published by
the Social Credit authorities are all utterly impracticable, either
because of the impossibility of a national stock-taking of any accuracy
or because of the enormous staff of clerks which would be necessary to
check up adequately the retail transactions on which the National
Dividend would be "calculated."
THE MONETARY REFORM POLICY OF THE
IMPERIAL FASCIST LEAGUE
THE monetary policy of the Imperial Fascist League and of the future
Fascist State that will grow out of it in England (which incidentally,
is inevitable in spite of the scoffing and lying of the Fabian
Internationalist and Jew-directed "National" Press) is, as with all
true Fascist measures, a return to REALITY and STABILITY. It
postulates, inter alia, the following procedure:--
The creation of a State Department of Issue to control absolutely the
issue of currency and credit to ensure:--
(1) The gradual controlled inflation of currency and credit until
the price level of commodities shall reach the level at which the bulk
of the National Debt has been incurred, thereby restricting the
lenders' rights to repayment to the original commodity value of the
loans (excepting that part of the National indebtedness dishonestly
forced upon us by International Swindlers, which would be repudiated).
(2) The stabilisation at that point despite further expansion of
credit as in (3) of the purchasing power of money, so that it shall
become a real standard measure like all other standard measures such as
the yard, the pint and the hundredweight, to ensure that the worker
shall have a perpetual State guarantee of the value in goods of that
which he receives for the goods he produces or the services he renders;
in other words, a Goods Standard will be maintained by issuing new
currency or contracting the currency as the price-index of the
essentials of life tends to fluctuate, so as to maintain the general
price-index at a stable level.
(3) The closest possible adjustment of currency and credit to the
National capacity of production until such time as actual production
shall be sufficient to satisfy the needs of the whole Nation and its
held of exportation overseas; to ensure thereby the re-absorption of
all employable citizens into agriculture and industry.
(We absolutely give the lie to the paid politicians and professional
economists who state that over-production exists in a world drained of
currency and credit; a world denuded of thirty million unemployed
potential spenders and of the once unlimited and ever-growing
purchasing power of India, China and the old Russian Empire, the last
now doomed to the lowest level of living ever experienced by 'civilised
' human beings).
(4) The gradual retirement of all external and internal
interest-bearing Government securities by repayment in non-interest
bearing currency (the stabilised purchasing power of which will be of
far greater value to the recipient than the present interest-bearing
fluctuating currency controlled by alien Jews) which will effect the
saving of at least =A3230,000,000 per annum in interest payment out of
the taxpayer's pocket and direct the capital so repaid back into
agriculture and industry. Incidentally there will be no need for the
so-called "Gilt-edged" securities when all agriculture and industry is
grounded on the stability of good government, with currency and credit
adjusted to production, and the gradual diminution of taxation to the
bare cost of running the State unburdened of unemployment and the
vested interests and parasitical growth of so-called Social Services.
(5) Gradual adjustment to the new values by limiting currency
inflation, in the early stages, to State disbursements; firstly, for
salaries and emoluments for all in service to the State and
decentralised Authorities; secondly, for social services (until they
have been brought to an irreducible minimum, and thirdly, for
government and public works.
(6) The equitable distribution of credit inflation to agriculture
and industry through sectionalised Fascist Corporate Councils, set up
for the purpose by, and in subordination to, the State Department of
Issue.
(7) The balance of the import and export volumes by the
establishment of a real Department of Empire and Foreign Trade which
shall have absolute control of tariffs, embargoes and trade pacts
enforcing equality in the exchange value of exported surpluses until
such time as the whole world shall adopt the "goods basis" as
fundamental.
It must be emphasised here that it is not part of the Imperial Fascist
League programme to bring Deposit Banking itself under Government
management: the business of banking is not one which is likely to be
successfully carried out by State Officials. It is however necessary to
prevent the Banks from usurping the function of the State in the matter
of manufacturing money as they now do by making loans by book entries
to the amount of ten times the amount of currency they possess. It will
be necessary to compel the Banks to act as agents for the distribution
and management, under regulation, of the National Credit. Their
liabilities to current account depositors must be covered by the
possession of National Money to the full amount of their liability.
National Money will be issued to them by the National Currency
Authority partly in exchange for National Debt Securities which would
then be cancelled, partly on day-to-day loan at a fractional rate of
interest. The only instrument for creating mortgages will be the State,
operating through the Issue Department of the central National Bank,
which in turn lends to the Deposit Banks. When Banks lend, the loan
will be real State Money, not unbacked Book Credit; the rates of
interest on such loans will then be decided, under regulation, by the
risk involved, so as to leave a margin of profit to the Deposit Banks;
and the onus of risks or loans made by the Banks will be on the Deposit
Banks; this will eliminate the speculative element.
Thus, under the Racial Fascist State shall prosperity be restored to
our Country and Empire and to all those countries which shall follow
our example of internal national prosperity instead of the external
international bankruptcy and serfdom to which the long-continued
absence of a sane monetary Policy has brought us.