The Social Crediter, Saturday, March 16, 1940.

~THE SOCIAb~-CREDITERFOR POLITICAL AND ECONOMIC REALISM

Vol. 4. No. 1. Registered at G.P.O. as a NewspaperPostage (home and abroad) lid. SATURDAY, MARCH 16, 1940. 6d. Weekly.

WHOSE SERVICE IS PERFECT FREEDOM (XIX)By C. H. DOUGLAS

It is difficult not to sympathise with the normalindividual who finds discomfort in the - contemplation ofunfamiliar political forces to which is attributed historiccontinuity. It.iis exceptional to find a life steadily andconsciously devoted to an objective which is clearly envisaged,and therefore normal to regard existence as a passiveexperience of uncontrolled and largely uncontrollableincident. The conception of an organisation, and particularlyan organisation whose existence may hardly be recognisedoutside the ranks of those who belong to it, pursuing an endso grandiose and remote as to be almost cosmic, exciteseither incredulity or mild derision.

When the average "practical" man is asked to considerthe possibility that such an organisation and programme haveexisted for hundreds, if not thousands of years, his generalreaction is one of superiority to people with "bees in theirbonnets." If he is directed to the hints in such novels asBenjamin Disraeli's "Coningsby", to mention only one ofmany indications, he is apt to dismiss them as the ingeniousinventions of a literary imagination.

Yet a little consideration ought to convince us that thisattitude, if understandable, is not really reasonable. TheChurch of Rome, originally "The Church", to mention onlyone "religious" organisation, has been in existence for nearlytwo thousand years, and It would be a very ill-educatedindividual who would contend that the Church has not beenthe arena of a struggle in regard to an objective which hasaffected temporal history. The' whole tone of the culturewhich we like to call European, as distinct from that whichwe call cosmopolitan, is the result of the pursuit of a conceptboth of manners and of society which is alive and activeto-day, and is, in fact, one of the underlying realities of theconfused melee into which the European peoples have beenprecipitated, although no one institution may embody it.

But, .it may be contended, the evidence of the existenceof religious organisation exists for everyone to see. It has .buildings and officials whose lives are devoted to thepropagation of a system of morals and belief concerned withthe attainment of happiness in a future state of existence.Sunday is more or .less devoted to its business, and anyconcern with temporal politics is both disclaimed by the

.modern churches, and discountenanced by modern statesmen

. in the plainest language at their disposal.. Yes? Then why does nearly every Great Power

'maintain an Envoy at the Vatican? I have not heard thatthere is an American Minister to Canterbury, although it is

true that the Archbishop is taken for a holiday by Mr._Pierpoint Morgan, when he doesn't need his yacht for otherpurposes.

And then there is Finance, the modern World Religionof the other six days, with Temples everywhere and countlessmillions of adoring devotees to whom the lightest word of itsparish priest, the local bank-manager, is an echo from MountSinai. The more obvious members of its hierarchy, withtouching modesty, disclaim any activities but that of beingpractical bankers; people, you know, who take in yourmoney at one end of a counter, lend it while you don't wantit, and get it back and give it to you when you ask fer. it atthe other end of the counter.

Yes?There are clearly to be. seen, then, at least two organ-

isations having in common the characteristics of an exotericshop-window in which goods are exhibited to the simplepopulace, and an esoteric back-parlour the transactions ofwhich, so far from being advertised, are so secret, and '>0

long-term, that centuries are necessary to provide theevidence from which their nature can be deduced.

Now, any competent historian could trace, and one ortwo competent and mildly courageous historians have traced,not merely the impact of the Churches on events (referenceto which, while risky in the Middle Ages, seems now to bequite safe) but, e.g., the relationship of Sir Ernest Casseland the Egyptian Bondholders to the war of 1882, or that ofthe Beits, the Wernhers,- the Joels, the Barnatos, et 01., to.the South African War to make the world safe for the GoldStandard. But, just as aberrations in the behaviour of theheavenly bodies impelled astronomers to suspect thepresence of Neptune before that planet was identified, I think:that we have indications of the existence of a long-termpolicy which, while it cannot be dissociated from either ofthose to which I have referred, is not entirely accounted for

ON OTHER PAGES-1-~~:

DAWN? by T. J.~_.._...t~ ..

SO NEAR AND YET SO FAR. by Mrs. Palmer

AUSTRALIAN RESOLUTION ON THENATIONAL CREDIT

/

Page 2 THE SOCIAL CREDITER Saturday, March 16, 1940.

by either or both of them. Evidently, some tabulation ofthese indications might be helpful.

The first of them is, fortunately for our purpose, if forno other, available for examination at first hand and at closerange. The phenomenon of a world war carried on byindividuals, not one per cent. of whom desired war, may beconsidered from many points of view. But one aspect of itseems to be quite beyond discussion. Some influence, notthat of the individuals primarily concerned, desired war, andwas able to bring it about. Is it conceivable that anyorganisation or body should consciously work to bring aboutwar, and should have the power to achieve their end? Ifit is, it ought to be possible to see in outline, at least, howthat objective has been attained.

Now, I think that we can dismiss at once, every short-term explanation ("It's that man Hitler"). The first lessonlearnt by anyone concerned with administration is thathuman beings have psychological "mass and inertia" -youcan stimulate one man to action fairly rapidly, but a millionmen can only be made to act quickly if a very long time hasbeen devoted to "organising" them for a particular kind ofaction. We do not need to waste time in enquiring whethermen have been organised for war, but it is highly significantthat England was not normally organised for war, i.e., hadno standing armies, until and after the Cromwellian Warand the foundation of the Bank of "England."

But it is necessary to examine the idea that war isnatural and inevitable, except where "law is supported byoverwhelming force" as Lord Lothian so attractivelyphrases it. We know that it is not natural at present-that "nobody wants war." There is a substantial body of

scientific opinion which is confident that humanity is notnaturally combative, and in any case modern war is socompletely impersonal that only a charlatan would pretend '"that there is any analogy between the emotional quarrels of \individuals and the mass murder of unseen and unknownopponents with the aid of high explosive. There may bemore resemblance to a prize fight, in which the promotergets most of the money.

If war is natural, why is it necessary to foster, themartial spirit by every form of propaganda and hypnoticinfluence, subtle or crude? Why thebrilliant and unsuitableuniforms of the Life Guards, the military bands, the bits ofribbon, the ceremonial ritual-the use of every device withwhich trained psychology can re-inforce defective education?

But to deny the existence of a natural tendency to waris one thing, and to admit "cet animal est mechant, quandon l'attaque, il se defend," is quite another. There maybe no winner in modern war, except the promoter whodoesn't fight, but only bemused theorists would contend thatall the losers lose equally. I do not think that the Poleswould listen very patiently to that kind of nonsense. Clearly,if you can provide an aggressor, sooner or later 'you canprovide a war. To provide an aggressor? Why shouldanyone want to provide an aggressor?

Perhaps a consideration of the position of the promoterwho doesn't fight may help to' answer that question.

(To be continuecl).(World copyright reserved),

The thinly-veiled contempt withwhich bankers and their yes-men, thecity-editors, regard the public is a factnow well-known to Social Crediters.Periodically these omniscient gentlemenlet loose pompous half-truths having aslittle relation to actuality as has ahundredweight of cinders to a ton ofcoal. Recently a Daily Telegraphspecial article by one of its city editorson "Banking during and after the War"was so green with mouldy platitudes thatone could almost smell them.

Mr. Kiddy began with a very rankspecimen of half-truth, thus: "Ourbanks passed through the strain of theGreat War of 1914-18 not only withunimpaired but with enhanced credit,and a strain of a different kind wasimposed by the premature post-warboom of 1920 onwards." In a laterparagraph he said: "In August, 1914, itwas a case of patching up the creditsystem by moratoria on bank accountsand on bills." But he did not print thewhole r-uth that our banking system was

'V

By WILLIAM BELLFOR VICTORY

technically insolvent the day war brokeout in 1914, and that the bankers gotthe Government to proclaim the morator-ium to save the banks from bankruptcy.("He did everything we asked him to,"said Sir Edward Holden, chairman ofone of the bigger banks, of Mr. LloydGeorge, Chancellor of the Exchequerthen.)

If all private citizens when infinancial straits enjoyed the boon ofbeing protected by a moratorium-aprivilege only accorded' the Bank of"England" in all of its crises-we toocould come out of a hundred Great

,Wars "not only with unimpaired butwith enhanced credit," as our cityeditor puts it. For why shouldthe community be denied that almostprescriptive right acquired by the Bankof "England" which, after all, is alimited liability company payingdividends to its shareholders in the usualway? .

Another quotation indicates theeditor's contempt for the intelligence of

his readers-mostly discount-brokers,insurance-brokers, stock-brokers, half-commission touts and others living bytheir wits on the gambling proclivities ofthe sporting public. It runs: "Theextreme Socialists persist in regardingthe banks as being the custodians of theirown money instead of their holding intrust the cash resources of the public."Here our bright editor is paraphrasingthe long exploded myth that banks canlend only the money already depositedby their private clients. He is correctas far as he goes, but he goes not evenhalf-way. For .the "extreme Socialists,"poor devils, know well enough now thatin addition to "the cash resources of thepublic" the banks get by far the greaterpart of their mysterious "deposits" fromtheir own inkwells. (Banker McKennaand others told us long ago how thistrick is done.)

Mr. Kiddy next says: "In passingit is satisfactory to record the dose co-operation which has existed between theTreasury and the Bank of England; only

Saturday, March 16, 1940. THE SOCIAL CREDITER Page 3

equalled by the mutual co-operation ofthe joint-stock banks and their loyalco-operation with the Bank of England."This parenthesis recalls the story that onhis being told that a certain blue-stocking"accepted the Universe", Carlyle said:"By gad, she'd better!" Likewise, Bygad! these birds of a feather had better"co-operate" and hang together for fearof their being hanged separately one dayfor having misappropriated the com-munity's credit.

Still another moss-grown platitudestates: "As taxation increases ... tem-porary financial assistance required bythe public from the banks may be on alarge scale ... Probably too ... bankersliabilities in the shape of deposits willtend to expand." Here Mr. Kiddyis trying to "kid" his readersinto believing that bank loans to thepublic are not always balanced by anexactly equivalent expansion of deposits.The 'may be' . . . 'probably' . . . 'willtend to' . . . in that exttact exhibit asublime mock cautiousness which endureswhen our editor sighs for thetime "when Government control andinterference with individual liberty willcease and when prosperity is broughtabout by unrestricted private enterprise."As if he did not know that the day ofunrestricted private enterprise has neverbeen, nor was ever likely to be until thewhole abracadabra of the private controlof public credit has been' relegated to theSocial Credit Museum where it belongs!

The nearest that our financial editorskating on thin ice gets to grips with theNew World Order, the Federal Unionstunt or the United States of Europeplan, without mentioning such ReallyBig Ideas, is in his deprecating "thepre-war spirit of ultra-nationalism." Heprophesies it will be only through ourold friend, "international co-operation,free of all fears of war," that financialprosperity can be hoped for. From thatinspired wise-crack it may be inferredthat in the City of Dreadful Benighted-ness still survives the belief that theEarth is flat.

Despite the fact that this article wasdisplayed in a charrning frame of Bankadvertisements, we feel sure that thetestimonial given to Lord Stamp in hispresence at the House of Commonsrecently by Sir Ralph Glyn appliesequally to Mr. Kiddy. Sir Ralph,deploring the innuendoes made regardingthe Economic Adviser to the Govern-ment-and Director of the Bank of"England,"-said: "No man is moreable to keep quite clearly detached hisvarious duties."

NEWS ANDThere is no truth in the rumour that

the Statue of Liberty has been adornedwith three gilt balls. The commanderof the "Queen Elizabeth" had been therebefore.

• • •£300,000,000. Tax free to non-

residents in the British Isles. All doneby kindness, and a little simple book-keeping.

• • •Doesn't taxation come into it any-

where? Just wait until your next taxdemands come in.

• • •The French for pawn-shop is

""Mont de Piete." No, Clarence, thatdoes not mean, in American, "Moneylent with a Moral Lecture."

• • •It is rumoured that Jewish in-

fluence in Moscow, which was waning, isagain dominant. The B.B.C. hasceased to refer to the Red Invaders, whohave now become the Russian Forces.

• • •GENEROSITY

The Times of March 5, stated thatthe Bank of New Zealand offered to lendthe New Zealand Government £1 millionfree of interest for war purposes.

The actual cost to the Bank by wayof salaries and overhead expenses inwriting this loan (which in itself costnothing) in its books would amount toonly a few pounds-which is the extentof the Bank's generosity. One istempted to wonder whether it alsomeasures its national patriotism?

.' • ••AGAINST Mr. KEYNES

The following letter on Mr. J. M.Keynes's proposals was published in theLiverpool Echo of March 7:

"Even the realisation of theworld's tragedy does not seem to haveinduced in the mind of Mr. J. M.Keynes a willingness to admit thatpossibly professional economists may

BIRMINGHAM & MIDLANDSSOCIAL CREDITERS

You are specially invited to meet Dr.Tudor Jones and Mr. John Mitchellduring their Easter Tour at 6-30p.m., Wednesday, April 3, Wimbush'sCafe, Corporation Street, Birming-ham (opposite County Court).Refreshments 6-30 to 7-30, meetingtill 10 p.m. REMEMBER THE DATE.

VIEWSnot know everything about economics.To humbler students in rapidly in-creasing numbers, it is beginning to beplain that a system which requires thecompulsory deduction of purchasingpower from wage earners and salariatis a system on its last legs. The factis that Mr. Keynes is a bankers' man,and I have yet to see any admission inhis propaganda that:

(a) All money is bank money.(b) There is not enough actual money

(savings available) to carry on the warfor six weeks.

(c) Banks create the means of pay-ment out of nothing (-EncyclopaediaBritannica).

(d) Credits are now being created bythe banks and part of these credits arebeing received as wages and salaries.

(e) 80 per cent. of the debt created in1914 and 1918 are now owing to bank-ing and financial institutions.

(f) These institutions, recognising thedangerous situation which has beencaused in Europe by their methods,desire further control of the moneymarket.

(g) Therefore the workers and rniddle-classes must be hypnotised into the beliefthat to win this war they must repayback to the banks (under the guise ofGovernment) the money received via thebanks on account of war expenditure.

"The inevitable result of Mr.Keynes's scheme will be a further in-debtedness, a devaluation of savedmoney and a sterner struggle forforeign markets-and we know whatthe last will lead to.-E.J.P."

• • •LET THEM EAT CAKE!

After five months of war, unem-ployment is 150,000 more than at theoutbreak of war; and about 500,000 menhave been called into the army, whichsays much for the rate at which we canproduce goods if we mobilised all ourforces. With this man-power availablewhy the call for "sacrifice"? We areadvised to consider our "sacrifices" verycarefully, however, as Professor Pigoupointed out in The Times recently; itwould be unpatriotic to give up smokingcigars and drinking whisky andchampagne, as so much of the cost goesto the government in taxation.

On the other hand, he says, we mustnot want things that need skilledengineers to make; nor anythingimported, because it takes room in ships;nor anything exportable, which wouldallow us to get some more foreignexchange.

Even buying a nail brush will becomea stiff test in general knowledge. .::.

THE! SOCI'AL CREDITER Saturday, March 16, 1940.

Mrs. PALMER'S PAGE

On February 27, Lord Halifax,as Chancellor of Oxford University,addressed a crowded audience in theSlieldonian Theatre. He told his audiencethat there was no reason to be dis-illusioned about the future, howevermuch they might feel disillusioned aboutthe past. The students are said to havebeen inspired by his speech, probablybecause it was the speech of a man whosincerely believed what he said, and whohad been able to see a little way into themist in which both he and his audiencewere enveloped. But there is adifference between seeing and under-standing what you see in terms of thepast and the future: and a still furtherdifference in knowing what to do aboutit.

Take this, perhaps the most sig-nificant passage he spoke:-

"Your world has been influenced,whether you acknowledge it or not, bywhat I must take leave to term theinhuman conception of the economicman. There has been a tendency forgreat thinkers who have analysed thesocia! and moral values on which thehuman community has been built, to

. stress the need for finding the perfectsystem. There has been a tendencyto explain all history and humanity ineconomic instead' of in human terms.Christianity on the other hand, hasrather made its end the perfection ofthe individual, in the conviction thathere, too, lay the secret of life for allsociety. And this emphasis upon theideal system, instead of the ideal in-dividual, has not helped thedevelopment of the human character."

So near and yet so far. As througha glass darkly, Lord Halifax has almostseen the exact nature of the conflictwhich is raging.

"Are men made for systems, or aresystems made for men?"

The answer has already been givenin' Christian philosophy: "For theSabbath is made for man, not man forthe Sabbath."

"Christianity," on the other hand,as Lord Halifax says, has made its endthe perfection of the individual. Butthere can be no doubt that in its begin-nines it was the interests of the individualwhich the church existed to maintain.It is a subtle point, but of fundamentalimportance. At one time the churchenforced the just price on purelymaterialistic grounds. "Feed my lambs."But when morals and the' preparation for

so NEAR ANDa future life became the first consider-ations of the clergy, men's earthlyinterests were neglected. Thus thechurch became another institution, exist-ing for its own end, that of "perfecting"the individual.

If only Lord Halifax and otherwell-meaning idealists could be broughtto see the problem as it is, they wouldthen be in a position to discuss the meansthat could be taken for solving it.Meanwhile, they must make mistakes,some of which cannot but be disastrous.Yet the problem can be very simplystated. It is to ensure that everyinstitution in existence shall serve theinterests of the individual man andwoman, or be swept away as useless.In other words, men must control theirown environment. And the social credit,the belief that in association men can getwhat they want, is the driving power.The democratic machinery exists-wehave to set it in motion.

That is the core of the wholeproblem, stated in general terms. Butjust as it is impossible to become anengineer simply by reading text books,so men must learn by concrete experiencethe correct way to control theirenvironment. Thus when, two or threeyears ago, the dwellers in a small Englishsuburb decided they wanted betterstreet lighting and instructed their localcouncillors to provide it, they weremaking a simple experiment, and asuccessful one, in practical democracy.

But one feels that it is a misunder-standing of the real meaning of wordswhich may be Lord Halifax's chieftrouble. Take his statement concerningdisillusionment, quoted at the beginningof this article. It is from The Timesreport of his speech. What does itmean? Are illusions at all desirable ornecessary except to those who wish toescape from reality? If we are dealingwith real problems in this country, nomatter whether they are problems of waror peace, they must be approached on abasis of reality with no illusionswhatever. A railway engineer does notapproach the construction of a viaductwhile suffering under illusions as to theproblems of construction. At least wehope he does not, for our own sakes.Railway bridges have been known tocollapse; of course. So far as is known,the collapse has never been due tosupernatural causes. So that it must beall' to the good that we are disillusioned

YET soconcerning the past. But yet we arebidden not to be disillusioned concerningthe future! What an extraordinarystate of mind is this, that prefers imagin-ation to reality. I think it was AldousHuxley who defined a tragedy as a"theory killed by a fact."

The only hope for England is ./that its young (as well as its old) peopleshall face those facts, and refuse to beled along that alluring, flowery path, theillusions of the future. The future isunknown, and in any case, what you cansurmise concerning it, if you would keepyour sanity, must be based on facts'. Allyou can deal with is the immediatepresent, and in that present one stepshould be enough at a time.

But even that step forward cannotbe taken by those who do not knowwhere they stand. Lord Halifax did noteven explain the immediate causes of thepresent war. To describe it as aconflict of youth, in which one side hasbeen deliberately deprived of theelements of true judgment, and to saythat this is the kernel of our futureproblems, is surely so shallow a statementthat even the most callous of under- ~graduates must be left unsatisfied. Whathappened between 1918 and 1939?Youth has a right to know. Let themdemand a true account of what was doneby our leading politicians during thosetwenty years, not merely so that theblame can be apportioned (though LordHalifax seems to fear the adversejudgment of the younger generation) butin order that the present problem can beunderstood and dealt with.

Why did the Bank of England andother financial interests build up a highlycentralised Germany? What is the Bankdoing now? This is only one of thequestions to which they should demanda reply.

If the existence of war is the sign of"something more than failure" in West-ern civilisation, as Lord Halifax says,what is that "something"?

Let the students, if they can, retaininto adult life that capacity for askingquestions and refusing to be satisfiedwith any sort of answer that character-ised the golden age of their childhood.Anyone who has dealt with an intelligentchild of six will know what is meant.

Perhaps the most misleading of allLord Halifax's statements was that \concerning the betrayal of German -~youth.

Saturday, March 16, 1940. THE SOCIAL CREDITER

t

U"And the real tragedy of that

betrayal, as it affects the Germanyouth, is the enlistment of the honour-able instincts of self-sacrifice anddevotion in the service of a crudelymaterialistic philosophy."

The Nazi philosophy is scarcely"materialistic" -it is based on theillusion that "the State," a mereabstraction, has concrete qualities and anexistence more real than those of the

individual men and women who composeit. And there are no "instincts" ofself -sacrificc and devotion: these are alsoabstractions that do not exist. There issimply a correct or an incorrect way ofdealing with any given situation, or ifyou prefer it, a "right" or "wrong" way.A "hero" is one who by reason of hisupbringing, his mental and physicalmake-up, is able to make correct

Page 5

decisions without any waste of time.That is why, after 'he has saved the childfrom drowning, he feels a perfect foolwhen newspaper reporters begin to talkabout "self-sacrifice" and "devotion",and melts away into the crowd. Heknows instinctively that such qualities donot exist in themselves, and that all hedid was to solve his problem correctly,and as-quickly as possible. '

B. M. PALMER.

THE BIG IDEAThere has never been any lack of

good advocates for the further central-isation of power. It is clear that thosewho have already largely benefited bythe success of this policy possess also thepower to encourage its propagation, andthat just so far as the process succeeds,and more and more power is concentrat-ed into fewer and fewer hands, so farwill the policy of still furthercentralisation become the only one whichmay be advocated with impunity byanyone who hopes for preferment, oreven a reputation for respectability.

The best advocates, moreover, arealways sincere men who do not suspect

A this state of affairs, and who are usually.:.::J somewhat surprised at the success andpublicity which attend their efforts.Among these, I think, Mr. W. B. Curry*must be counted. -

It is important to notice therelevant conditions under which this, andother, widely publicised pleas for afurther surrender of local sovereigntyare being made. At the present timein this country centralisation of control,with its attendant evils of red tape andbureaucracy, has already gone so far thatit is incredibly difficult to get even thesimplest matter settled, or the mostobvious wrong put right, because theformal responsibility rests upon someinaccessible official in Whitehall, whosesubordinates have not the authority toact. Yet all Mr. Curry has to offer isanother and larger dose of the drugwhich has already made us desperatelysick!

As if this were not enough, we have,during the last two years in Europe,witnessed two powerful Governmentsmaking deliberate use of the fear of warto force the populations of small statesto surrender their local sovereignty untilat last the people of three countries,

me Britain, France and Finland, have been..."II forced to take up arms, with the grudging

V * "The Case for Federal Union," a PenguinSpecial, 'by W. B. Curry.

admission that even the horror andfutility of war itself is preferable tosubmission to a like fate.

It is under these circumstances thatMr. Curry comes forward with his care-fully worded suggestion that what weought to do is to surrender such localsovereignty as we have managed to retainto a Super-Government of such over-whelming power that it will be able toextend its control over the rest of theWorld. Be it noted also that theemotional strength of his argument liesin the merciless use of the fear and thehorror of war.

There is, of course, an importantdifference between Mr. Curry and hisideological rivals, the Nazis and. theComrrl'unists. The difference is' this:whereas the Nazi wants power concent-rated in the hands of Nazis, and theCommunist wants it in the hands ofCommunists, Mr: Curry, who is aLiberal-Democrat, has quite differentaims; he wants a Wodd Government ofLi beral- Democrats.

It is no part of my purpose tounderestimate the difference between aLiberal and a Nazi or Communist, butI cannot avoid pointing out that they areall human, and therefore not to betrusted with power on the scale proposedby the Federal Unionist. Indeed, Mr.Curry grants this point in advance byquoting with approval the dictum, "Allpower corrupts, absolute power corruptsabsolutely." This must force him totake his stand, if he is not to admit thathe wants to establish a World Tyranny,on the untenable assumption that adultsuffrage constitutes an effective safe-guard against the misuse of power, whenthe electorate has to be measured inhundreds of millions, and is thereforeentirely in the hands of the controllers ofmechanically reproduced propaganda.

The course of events since the lastWar has shown again and again thatoverblown 'democracy' of the typefavoured by Mr. Curry gives rise to

autocracy as readily as a chickenis hatched out of an egg.If recent events had been expresslyfashioned as an ironic commentupon the Federal Union proposals theycould scarcely have been more to thepoint. The gigantic Federal constitutionwhich we are asked to accept as the curefor War, is already possessed by theU.S.S.R., which, despite its 'over-whelming power' is unable to 'federate'one of its small neighbours without bitterand destructive warfare. The electoralsystem which Mr. Curry would like tosee imposed upon the World as a safe-guard against autocracy, is that underwhich Hitler was elected to power onlyseven years ago. And if proof wereneeded that war within a governmentalarea can be as horrible as betweensovereign states, Spain would haveprovided it too recently, one would think,for the lesson to have been forgotten.

According to Mr. Curry the FederalUnion Movement in this country 1Sgaining new adherents at the rate of400-500 'per week, and their professedaim is to -force the Government to adoptFederal Union as its official Peace Aim.There are already signs in the Press andon the Wireless that the idea is receivingpowerful support from what are usuallyknown as 'influential quarters'.

At present the neutral countries ofEurope believe that a Hitler victory willmean the loss of their independence,while an Allied victory will preservethem from that fate. If, however, theyfind that their absorption into a Super-State is being plotted by both sides theyare 'likely to ,give -up hope and submit tothe nearer and more dangerous threat,which at present is that of NaziGermany.

The result of this would be that wealso should soon find ourselves drawninto Hitler's Union, instead of Mr.Curry's. r : It would seem, therefore, ofvital importance that this movementshould be checked by effective oppositionwithout delay. c. &. D.

Page 6 THE SOCIAL CREDITER Saturday, March 16, 1940.

THE SO,CIAL CREDITERThis journal expresses and supports the policy of the SocialCredit Secretariat, which is a non-party, non-class organisationneither connected with nor supporting any political party,Social Credit or otherwise. ; ,

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Three months 7s. 6d.VOL. 4. No. 1.SATURDAY, MARCH 16, 1940.

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PALESTINE LANDREGULA TIONS

Mr. Malcolm Macdonald's an-nouncement of new regulations restrict-ing the transfer of land in Palestine byArabs to Jews raised a hornet's nestabout his ears.

The new regulations provide that inthe hill country lying to the north ofJerusalem the transfer of land to anyoneexcept a Palestinian Arab is prohibited;in the plains in the south an Arab cantransfer only to another Arab, subject tocertain exceptions permitted by the HighCommissioner.

After the great war Syrian landlords,owning considerable areas and lettingthem to small Arab cultivators, wereforced to sell out; 80 per cent. of theland was bought by the Jewish Agency,and the Arab tenants dispossessed. Otherland was bought from Arabs who hadfallen into debt.

About 1,000 Jews entered Palestineper month at the end of last year, andas many more went in illegally. Yet theShaw Commission reported ten years agothat there was no further land availablewhich could be occupied by new im-migrants without displacing thepopulation. Many rural Arabs are nowlandless.

A fierce attack on the Land TransferRegulations was launched by theOpposition in parliament. They chargedthe Government with having flouted theLeague of Nations and disregarded theopinion of the Permanent MandatesCommission that British policy inPalestine was inconsistent with the termsof the Mandate.

Jews and Jewish organisations accusethe Government of having set up aGhe'.:',b worse than those of CzaristRussia and Nazi Germany. A Zionist

delegation in New York lodged protestswith Mr. Cordell Hull and LordLothian. The British Board of Deputieshas asked the Government to receive adeputation. Another Jewish Organisa-tion of Great Britain asks what the waris for? "... while waging a war forthe maintenance of international author-ity and the rule of law and, above all,for the protection of the rights of smallpeoples, it takes this step... inderogation of the internationally assuredrights of the Jewish people . . . "

Why have a war if the Jews don'twin it?

• • •

continue to prevent the Allies fromtaking every possible step, while thetime is opportune, to strike back at acountry which is a declared and activefriend of their enemy, and which is aflagrant violator of the rights ofNations."

The Chief Rabbi, who has recentlybeen co-operating with the Archbishopof Canterbury in asking the Nation toSacrifice by saving its money and invest-ing it in the National Savings Movement,sent a telegram to the Archbishopappealing to him "to do your utmost toremove this crying wrong."

• • •

This war has not developed at allaccording to pattern. After the firstsix months there are still numbers ofnon-belligerents, "tightening up" on thehome 'front has not been well accepted,and Finland has made peace with SovietRussia. In this connection it is inter-esting to note the Allies offer of help toFinland, if she cared to ask for it, wasa factor in making the decision reachedby the Finns at least as "free" as waspossible in the circumstances.

As the non-development of the waris fundamentally satisfactory to themajority of peoples concerned, the pro-paganda that is noticeable fromstudiedly separate sources urging theAllies to take the initiative in a morevigorous form of warfare and to extendits area, can only be attributed to thosewho have some ulterior purpose in view.It has been said that only in war or thethreat of war will Britain take to plan-ning. But so far we have been able tomake the war such a curious one that bigbusiness has been faced with the delicatefeat of proceeding with a series ofdrastic 'administrative' changes in fullview of a public whose state of mind hasremained comparatively normal.

• • •

Mr. HORE.BELISHAWANTS MORE WAR

Although Mr. Hore-Belisha hasrelinquished his duties as Secretary ofState for War, his thoughts and his penare still busy (judging from the frontpage article in the News of the Worldof March 10) with the burning subjectof War.

The article is prefaced by a notethat Mr. Hore-Belisha wishes it to beunderstood that the views expressed arehis own personal opinion.

The views expressed are:"That it would be a pity if the

disinclination to accept the risks of anopen state of war with Russia were to

PLENTYIt is estimated that the South

Australian barley crop will 'exceed 10million bushels-a record crop for theState. The total crop for Australia willprobably also be a record.

For the first time in 16 years ironore on a commercial scale is beingproduced in Canada-in Ontario. Witha subsidy from the Ontario Government,development was started there in 1937.

For THE TRUTH IN ALBERTARead "Today and Tomorrow"

Send your Bub. to TODAY AND TOMOAAOWl016-118th Street, Edmonton, Alberta.

Subscriptions $1.50 a year(at the present rate of exchange about 6s.)

You can subscribe by International MoneyOrder, obtainable at any Post Office.

Saturday, March 16, 1940. THE SOCIAL CREDITER Page 7

The great majority of mankind always desire material prosperity, and a small minority always desire knowledge;but in nations that are undeveloped, or are declining, these desires are unable to overcome the listlessness that isgeneral. There is then no buoyancy in the national character. All lively curiosity, all the fire and energy ofenterprise are unknown. Men may love wealth, and even sacrifice moral principles to attain it, but they areunable to emancipate themselves from the empire of routine, and their languid minds recoil with the same antipathyfrom novelty, whether it comes to them in the form of industrial enterprise or intellectual innovation . . . In sucha state of society, the creation of a spirit of enterprise is the very first condition of mental as of material progress;and when it is called into existence in one department, it will soon be communicated to all. - Lecky.

f:

Twenty years late, the meaning of Douglas's thesis thata future of unprecedented splendour lies before the peoplesof the world, or before any people with the vision anddetermination necessary to enter upon it, is at last penetratingthe minds of some of the people entrusted with the directionof public affairs.

They are, primarily, parliamentarians who have madethemselves responsible for the dissemination of informationconcerning the political state of the world in order that thefalse emphasis conveyed in the ordinary vehicles ofpublicity may be corrected-or that is what they say. Also,they say:-

The first success must be won at home. It is, ofcourse, very difficult to bring this about at a time whenwe are also engaged upon the production of munitions ofwar and the creation of a great fighting force, but thetask is not impossible. This is a moment for vigorousstatesmanship. We could and should grasp immenseadvantages from the very emergency in which we findourselves and use the difficult conditions in which we livefor the achievement of tasks long neglected and which innormal times might have been left undone for a generation.In the British Commonwealth are to be found almostlimitless resources of man-power and natural wealth. Thecommand of the sea is ours; if we will we can not onlycreate military forces sufficient for the defence of all themain strategic points of the Empire, but we can soreorganise our whole economic system that from thepresent emergency immense benefits for future generationscan be derived. The home front can and should be soorganised that the example we set to the rest of the worldwill be irresistibly attractive and the period of stalematecan be safely passed.

No people was ever endowed with greater advantagesthan we have been. There is no reason whatever whythe productive capacity of the Empire should not be raised,our standard of living improved, and a fresh vigourbrought into every phase of national life, at the same timethat we maintain forces sufficient to secure the defence ofevery part of the Empire.

In principle this was the policy which Queen Eliza-beth followed. Militarily, she bided her time, allowingthe enemy to take the initiative. We know what happened.In other ways, however, she was desperately active. Sheallowed the enemy to be harassed by privateers to whomshe gave her blessing and at home she laboured unceasinglyfor the benefit of her realm. Nothing could be moredisastrous than if we followed exactly the opposite course;for example, if we curb all activity and postpone alldevelopment within the Empire because a state of warexists and at the same time we allow ourselves to be ledinto premature military action, we may witness a gradual

deterioration on the home front and give the enemy allthe benefits of the defensive.

The policy which will lead us to success will demandunceasing toil on the part of statesmen who must bepossessed of long vision and .vivid imagination. Thepeoples of the whole Empire must be inspired by a greatidea which will fire their efforts. Behind it all theremust be a spiritual awakening which is already longoverdue. We need to recapture the Faith upon whichthe strength of Britain has always rested and which hasbeen disastrously neglected during the last twenty years,upon which we cannot look back with much satisfaction.But it is with the future we are concerned, not with thepast. We have within our grasp unprecedentedopportunities which must be seized:

The passage is from the monthly bulletin, just published,of the Imperial Policy Group. While, on the surface, itappears to be an unequivocal answer to those who believethat those who have created the present crisis, including thatphase of it which is the war, are either not so powerful asis suggested or "they must be a collection of demiurgesagainst which nothing has prevailed or will prevail," it is notnecessarily so. Both in the direction of clarification of whatare, after all, only broad generalisations, and because thedissemination of opinions is, in itself, wholly insufficient toproduce results, the group's inspiring sentiments stand inneed of annotation.

It is said that large and increasing numbers of membersof parliament, public 'servants', university professors,journalists, preachers and the like receive the group'sbulletins. Most of these excellent people have long been inthe habit of reading, in the past literature of mankind,Christian and pagan, classical and romantic, religious andsecular, passages of even greater warmth, and have turnedover the pages with relish, but without doing anything aboutit. Reading, said Bacon, maketh a full man, writing anexact man, and speaking a_ready man. The world wantsready men; and most readers become merely full.

Elizabeth, it is said, bided her time, while at home shelaboured unceasingly for the benefit of her realm. She isto be imitated, for the resuscitation of Merry England, in the"unceasing toil" of our statesmen. But why unceasing?And why much toil? Elizabethan England saw, it is true,the first silk stockings. They were black, woven by hand,and after trying them on the Queen vowed she would neverwear cloth hose again. She never did. But her Englandlacked power plants, the jenny and the mule. Surely thesehave made even the infinite labours of sovereigns lighter, notto speak of mere ministers, who at least divide their labours?

Let it be granted that something is possible: tb-t thedescent into universal servitude to money is escapable, and

Page 8 THE SOCIAL CREDITER Saturday, March 16, 1940.

that the political horizon is not bounded by a ring ofInternationalist bombing stations, or resting upon an infernoof perpetual taxation, and a beginning is made. It is asmaller beginning than we made ourselves. The ImperialPolicy Group limps after us, but may be trained in thesteps. Its gaze is, perhaps, focussed a little traditionallybut self-consciously upon the Empire (an invention ofDisraeli's). If it is right in thinking that we need by nomeans' be satisfied with a Mining Industry released fromattachment to the consequences of misapplied credit-banking,a Scheme for Scotland, or an Alberta Experiment (all fruitsfrom the Douglas tree), but may have a whole Empire flunginto the brave light of the New Era-so much the better!But, whatever it cost great Elizabeth in effort to makespacious times, it should not, in accordance with Social Creditprinciples, cost our statesmen much. If there are 'almostlimitless resources of man-power and natural wealth' in theBritish Commonwealth (as there are, and as the groupasserts) they may appropriately be devoted to the sparing ofundue effort on the part of worn statesmen? The standardof living of statesmen, though doubtless high if measured asa percentage of goods delivered to .non-statesmen (thestatesman's function!), has surely not reached its upwardlimit, and the fresh vigour which the group rightly claims asthe resources of 'every' phase of the national life, mightjustly be made available to our political leaders? Whyshould they not share in the general Alleviation of Lots: inthe Resurrection?

That 'the example we set to the rest of the world willbe irresistibly attractive' can only be secured by therealisation of irrisistible attraction. It is sound sense, andit is what w,'! have been saying. In the first place it mustbe irresistibly attractive to us; there is nothing to prevent therealisation of as irresistible an attraction in full sight of allthe peoples of the globe. If we are fortunate in thepossession of almost limitless resources, we're only quits withthe rest of the earth: the whole of it has almost limitlessresources in man power and natural wealth, barring Israel,which may have the same when it wills to discard a parasiticexistence and to reconstitute for itself the digestive organsproper to a complete organism. The amazing spectacle ofa world bled white for centuries, if not for millenia, coaxed,tricked and guarded from a natural, healthy development,

"Tax -Bonds or. Bondageand

the Answer to Federal Union"By JOHN MITCHELL

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should have an amazing termination. Concentration upona narrow policy implies the loss of the instruments necessaryfor a wider policy. Parasitism consists as much in the lossof the power to gain sustenance for oneself, as in theperfection of the means of gaining it from somebody else.It is the end point of a very long-term policy. To play fora fall for a long time may be to play for a long fall. Inany case there certainly is no people on the face of theearth, unless it be the Jews, who do not share in 'almostlimitless resources of man-power and natural wealth' and ifthey do not, whose fault is it? 'The perspective widens outbeyond the confines of Empire.

On other grounds, too, the group has an unansw~rablecase (our case). What policy other than this of theirs (andours) is there before the country? - Or the World?Keynes's? It is the opposite: it is the policy the groupcondemns, the policy of 'a gradual deterioration on the homefront, giving the enemy all the benefits of the defensive.'The whole country is already in incipient revolt against it.'It is an impossible policy, only to be entertained in a landwhose people have already taken leave of their senses.Quem deus perdere vult, prius dementat. Keynes is thepreparatory madness before destruction. The world,including the stock exchange, knows it.

Perhaps there is still some other policy? TheGovernment's? It is said to have none. Then Socialism?It is what we are getting: it is what we have got. Judaism?- It is what we are fighting. The group has a walk-over.Even the Economist (Chairman, Sir Henry Strakosch) isbusy distributing timely quietisers of instruction in Money.As though to keep at least a step in front of Sir John Simon,it has found the idea of Social Credit quite an easy one tograsp, possibly from long practice. Since conviction is nowso general what is lacking?

What is lacking is what we have been ready to supplysince Douglas began, and what we have been organised tosupply at least since 1934. It is the vision, the imaginationand, above all, the method necessary for the translation ofidea into action. The 'Faith upon which the strength of'Britain has always rested' is not a formula but a fact.The group says 'it must be 'recaptured'. Well; but, bywhom? Not by those who 'captured' it before! It mustbe re-possessed, if you like. And how can that .be done butby the individuals who possessed it? Faith is an individualthing. It is the thing from which the spirit of enterprisegrows up (up, not down), the spirit, as Lecky said, which'is the very first condition of mental as of material progress.'The beginning of Faith is in the evidence of things not seen:it is a positive possession not a blue print. Faith is some-thing you keep, not something statesmen give away. If thedefinition is double-edged, Faith is not a belief in theself-consistency of experience, it is actual experience of theself-consistency of Reality. Faith is not something lost toone and passed on to another, but something kept or broken,and where it is broken it must be remade, whole, from itsorigins. It is not something which can be patched withwords, but something which must be fashioned from thingsdone. And, if the things chosen to do are not in all respectsthe RIGHT things, Faith is not fashioned. What theImperial Policy Group lacks is the machinery to shift thecentre of gravity of policy from the few to the many. Itlacks the po weI' to turn resistible enticements into irresistibleattractions. That such a power exists is a delusion: thedelusion upon which Society rests-and breaks. T. J.

Saturday, Marek 16, 1940. -THE SOCIAL CREDITER

Australian on the National CreditResolution

"That an Address be presented to the Governor,praying His Excellency to transmit to His Excellency theGovernor-General the following resolution:

" 'That, in the opinion of this House, the nationalcredit of the Commonwealth should be used in the interestof defence, the primary industries, and the general welfareof the people of Australia.' "

m'1~/

This resolution was moved in theSouth Australian Parliament by Mr.Macgillivray recently, and was carried by17 votes to 13.

In his speech introducing theresolution Mr. Macgillivray urged StateGovernments, as the natural guardians ofthe welfare of their peoples, to. putpressure on the Federal CommonwealthGovernment which possesses but does notuse the powers to control national creditby means of currency and banking laws.He then went on to define the nationalcredit as its real credit-its ability toproduce goods and services.

"The logical standard of living inany country under a logical systemwould be the ability of the people ofthat country to produce goods andservices, and provided they can do thatthey are entitled to all they can get."

Continuing, he said:~'As far as a country like Australia

is concerned, possessed of greatnatural wealth and an intelligent andorderly population, no definite limitsto the value of its real credit can befixed. All we can say is that it iscertainly very far in excess of theinterest bill upon both its public andits private debts, since it is based uponthe value of the goods and servicesthat can be produced ... Our nationalcredit . . . rests upon two factors-onability to produce and on needs ableto be satisfied.

Either of the two factors I havereferred to is useless without theother, for a producer of goods thatnobody wants is of no more valuethan a consumer of goods that "ire notproduced. In other words, theconsumer is quite as necessary for theproduction of real credit as theproducer, the real credit being theirjoint and common creation.

From an economic point of view,a nation'is an' association of people

engaged in the creation of real creditby means of producers and consum-ers. Anything, therefore, that tendsto raise the standard of life in anycountry increases its consuming power,stimulates production, and so tends toincrease the real credit of that country.

Speaking generally, the value ofthe consumer to the productive systemhas been often overlooked. When weattempt to solve the problem ofproduction we usually do it by givingbounties to the producers. If he lS

considered at all, the consumer isusually brought in as an afterthought

I think Ruskin pointed: but anumber of years ago that the purposeof production is consumption. Unlessgoods' produced are consumed thewhole thing is useless.

Under our present system goodsare produced with little or no humanlabour, and it would pay us as aresponsible body to give more attentionto the needs of the consumers. Byhelping them we can solve the problemof production.

Under any monetary system thenational or real credit-the ability toproduce and to consume-cannot betransformed into actual production andconsumption until there is createdagainst it, either by the Government orby private' institutions, a correspond-ing amount of financial credit, whichconsists of acknowledged and transferable claims to the goods andservices produced. The claims areknown as currency or money.

Until now I have not saidanything about financial credit. Ihave been speaking of real credit, thatis, the ability of the nation to producegoods and services. Now we come tothe point where financial credit mustbe considered. The financial credit ofa nation is; therefore, its ability to

Page 9'

produce money, and although moneyis not itself wealth it is the only claimupon any wealth which may exist.

Therefore, it is just as importantas the wealth itself, for, lacking it,men will starve, no matter whatquantity of real wealth is available fordistribution.

It will be agreed that this is afair statement because it is typical ofwhat is hapenning now in Australia.We have ample for everyone, yet, inspite of the wealth of real credit,people are starving. I do not use theword "starving" in the accepted term,but use it so far as malnutrition isconcerned. People are lacking thosethings which are so essential to health.

They may not go hungry, butthey are not properly fed. We havea definite shortage of money. Wehave solved the problem of production,but we have not faced up properly tothe money problem.

The distinction between these twoforms of credit must be carefully noted,real credit being based on goods, butfinancial credit upon money. Financialcredit is always issued against the realcredit of a nation, the process beingknown as the monetisation of realcredit, and, as the price of the goodsproduced, monetisation of goodsincludes that of services also.

Therefore, as we have seen thatall real credit is the joint property ofproducer and consumer, it follows thatall financial credit is national propertyand no one but the nation has anyright at all to create or destroy it, or toenjoy the fruits of its use.

This was so well understood inmediaeval England that anyone caughtissuing financial credit, or money, out-side of the King's Mint, was promptlyboiled in oil, an even worse punish-ment than that meted out to theordinary thief of those days.

I hope members will note thewords "ordinary thief." In Australiathe private banking system by a seriesof clever manoeuvres has obtainedcomplete control of the issue of finan-cial -againg our real credit.

It is an absolute monopoly.The power which was formerly in

the hands of Parliament has beenfilched away and monopolised byprivate organisations entirely to", theirown benefit: -..r

Page 10 THE SOCIAL CREDITER Saturday, March 16, 1940.

I am not complaining about theprofits that these private organisationsmake, nor do I suggest that theyshould be wiped out of existence. IOBJECT TO A MONOPOLY OFTHE POWER. It is a right thatthese people have usurped, and theysay in effect, "We are the only peopleallowed to make money available forthose in Australia."

That is why the people of SouthAustralia have to go cap in hand andask for some of the real credit whichwe have created. We are turnedaway with about half what we need.It is a most degrading position forthose who consider themselvesresidents of a sovereign State. Webelieve that we have a direct connec-tion with the Crown. It is an insultto the Crown when we have to go andask for money. The time has comewhen the people must examine theposition and get back the right whichbelongs to them.

The banks treat this financialcredit as their own property and lendit out to the community at interest. Asprosperous people do not as a ruleborrow money, it is to the interest ofthe banks to see that as few people aspossible are allowed to become pros-perous and financially independent.

They accordingly grant theAustralian citizen credit or withhold itas they see fit, and charge exorbitantrates of interest for it when they dogrant it. From time to time they

unexpectedly call it in again and ruin signed by as many people as possible,him, in order that he may be kept running as follows:humble and submissive.

• Haoing read the above I herebyElectors in other states of Australia append my signature.sending a letter to their M.P.'s Name Address '" ..

By alternate periods of inflationand deflation they interfere with andchange his standards of life. Theyraise the prices of the commodities hebuys and lower the prices of those hesells, until he can scarcely exist. Atthe same time he is taxed to thebreaking point in order to pay theinterest on the loans of his own creditthat the banks have advanced to theGovernment. "

After discussing with anothermember the application of these ideas towheat-growing, Mr. Macgillivray re-viewed the evidence for the control ofgovernments by banking and financialinstitutions, and went on to name someof the individuals concerned.

Concluding, he pointed out that theissue of financial credit for the benefit ofthe people would not necessitate anyvast change in the present machinery ofgovernment. He said:

"I am simply outlining the broadprinciple in which I believe the wholefuture of Australia is bound up. Anew country like Australia, not tieddown by tradition like the oldercountries, could give a lead in theright direction, and I believe that othercountries would not be slow tofollow."

are

Mi".. . .. Member for ..Parliament House

Dear Sir,I refer you to a report of the speech

by Mr. Macgillivray in the SouthAustralian Parliament, copy of which Iam informed has been sent to you.

I desire you, as my Representative,to endeavour to have similar action takenin this Parliament.

You must surely realise that thepresent debt system under which allGovernments in Australia are nowworking cannot continue. The time hasarrived when action must be taken touse the Nation's Credit, through theCommonwealth Bank, for the necessarydefence of this Country instead of raisingthe money by interest-bearing loans.

If this war continues for any lengthof time the enormous debt that will beincurred under the present system will beentirely beyond the capabilities of thepeople to pay. The inevitable resultmust be the absolute enslavement of ourpeople to the International Financiers.

On you, with others in Parliament,lies the responsibility of safeguarding thepeople of Australia from such an in-tolerable condition.

JI

CANADIAN NEWSThe success of the government of than in January, 1939, an increase

Alberta must be measured by its greater than the general increase ofachievements during its term of office, butter production throughout Canada.and the extent of these is being widely Many towns and villages in the Provincereviewed in the course of the election report cash balances at the bank, and thecampaign now in progress. number of municipalities completely out

Last year Canada produced of debt has increased in the last fiscal7,837,503 barrels of oil, of which year.7,5?4;411 c~e from Albe.rta wells. A clue to the productive possibilitiesBUl~dmg permits taken out m Alberta of Canada is given by figures recentlydurmg th~ year amounted to more than published which showed that, up toone-twentieth of the ~otal for all Cana~a: January, Canada's war effort in the in-$3,000,000. . ~er1Dlts are only required dustrial field alone was equal to thefor town. building, so these figures ~o combined labour of 45,000 men working,not take mto account the development III with machines for a full year. Yet therural areas. As "loa.n companies':-have majority of established manufacturingnot resumed the making of loans m the plants are not working to capacity.Province, it shows that Albertans arequite able to do a considerable amount ofnew construction without their assistance.In t:Ht! month of January Alberta's butterproduction was larger by 6.8 per cent .

•In a discussion on the wireless

between Mr. Aberhart, the Hon. E. C.Manning and Mr. Adams, chairman of

• ----~ -_'--- ~-

the Alberta Board of Industrial Relations,the work of the board in supervisinghours of labour, minimum wages andworking conditions was described. Mr.Aberhart's government introduced anAct regulating the maximum number ofhours that employees may be required towork, both daily and weekly: womenmay not work more than eight hours aday and 48 hours a week; for men themaxima are nine and 54. The Act alsoprovides for one day of 'rest in everyseven days of work. The MinimumWage Act was extended in its applicationto female workers in centres with apopulation of less than 600, who hadbefore been exempt, and a minimumwage has been established for part-timeworkers.

•A report in the Edmonton Bulletin

- --=-=-=-"---- ------~~

Saturday, March 16, 1940. THE SOCIAL CREDITER Page 11

recently, summarising the annual report" • of the Social Credit Board, says:-j) "In presenting the report on the

interim treasury branches, the boardshowed an expenditure in establishingand operating the branches andagencies as $326,702, which includesthe $69,927 paid to depositors inbonuses under the plan whereby athree per cent. bonus per month ispaid if one-third of the goods pur-chased were made in Alberta.

But the board deducts the$69,927 to show the actual net cost ofestablishing and operating the branchesand agencies as $256,775.

'An orthodox bookkeeping profitcould be shown by the treasurybranches only if they had withdrawnfrom the people more purchasingpower than they had distributed. Forexample, the banks can make a bookprofit only at the expense of thepublic's purchasing power. As thepurpose of the treasury branches is toincrease and not decrease purchasingpower, it would have been an alarmingsituation had an orthodox bookkeepingprofit been shown as a result of theyear's operation.

'It may be argued . . . that theconsumer's bonus shown as a deduc-

~ tion from cost of establishing andoperating the treasury branchesstructure should be shown as anexpense.

'This is an entirely false view, asthe bonus allocations represent claimson goods and services being transferredfrom one account to another, and needno more become a claim on the cashfunds of the Province than, forexample, the aggregate credit balancesof the banks will have to be met bythe cash holdings of those institutions.

'The essential difference is, ofcourse, that the consumers' bonusis a debt-free addition to the purchas-ing power, and represents a modestinstalment of the 'credit in association'of those using the treasury branches.

'For bookkeeping purposes, it isshown as a liability against provincialrevenue, but it is a liability for whichprovision need be made only in theevent of liquidation being contemplat-ed, which is not the case. However,because of the buoyant condition ofprovincial revenue due to the markedimprovement in conditions, there isbeing maintained at present 100 percent cash reserve .against all consumerbonus allocations.

I, ' , 'A criticism has been raised to the-./; effect that the treasury branches have

,',

not shown a profit. On the contrarythe treasury branches have shown anamazingly large profit-to the peopleof the Province.

'Owing to the false accountancymethods employed under orthodoxrules, there is a tendency to view thismatter from a false angle.' "

•After showing the achievement of

the treasury branches, the report of theSocial Credit Board continues:-

"Taking the situation as it is, theclear indication for the development ofthe interim program is to provideadditional facilities for the greater useof their credit resources by the peopleof Alberta. While this can be doneto a limited extent within the existingframework of the treasury branchessystem, the development would beslower and the difficulties greater thanwould be the case if the Provincecould operate under a suitable bankcharter granted by parliament, toensure non-interference from thefederal government. Provided thescope of the charter was sufficientlycomprehensive, the Province could,within a reasonably short time, demon-strate conclusively the inherent sound-ness of the reforms it is advocatingand which it has elaborated in-Part IIof The Case for Alberta."

The Hon. E. C. Manning, Ministerof Trade and Industry, announced theresignation of G. L. MacLachlan, theChairman of the Alberta Social CreditBoard, in order to take up a commissionin the army. A board consisting ofthree members, under the chairmanshipof Floyd M. Baker, will be appointed.

•The bill authorising establishment

and operation of a Provincial bank waspassed by the legislature with littleopposition.

Another bill that was brought inamends the Treasury Act and enables thetreasury branches to make loans andfinance purchase of Alberta made goods.

•In the federal elections the Social

Credit nominees will contest theirconstituencies under the New Democracybanner, led by Hon. W. D. Herridge.An editorial in To-day and Tomorrowpoints out the difficulties besetting theconduct of the federal campaign by thenew party:

" . . . all radio addresses of all con:"testing candidates must be examinedby the censor before delivery. Thecensor, naturally, operates under thedirection of the federal government.And the radio, too, is controlledultimately by the federal government."

EASTER TOURSocial Credit Secretariat

Speakers: Dr. TUDOR JONES.Mr. JOHN MITCHELL.

Meetings have _b~~11arranged at:BRADFORD on MARCH 27.

Enquiries to R. J. NORTHIN, 11, Centre Street,STOCKTON-ON-TEES on MARCH 28.

Enquiries to A. E. THOMPSON, Langdale, 5, Dunottar Avenue,Eaglescliffe, County Durham.

NEWCASTLE-ON- TYNE on MARCH 29.Enquiries to W. A. BARRATT,10, Warrington Road, Fawdon.

ABERDEEN on APRIL l.Enquiries to W. J. SIM, 12, Broad Street.

BIRMINGHAM on APRIL 3.Enquiries to J. G. MILNE, 78, Baldwin's Lane, Hall Green.

LONDON on APRIL 5.Enquiries to Mrs. PALMER, 35, Birchwood Avenue, Sidcup.

H. DIXON, 28, Chigwell Road, E. 18.A meeting at BELFAST 'is also being arranged, the date of whichwill be announced later.At LrVERPOOL~ 'MI . ..'rohll Mii:cheli will speak at a meeting of theLiverpool Tax-Bonds Association on "Tax-Bonds or Bondage?"Sandon Studio, Bluecoat Chambers (School Lane) on TUESDAY,MARCH 19, at 6-30 p.m.

Page 12 THE SOCIAL CREDITER Saturday, March 16, 1940.

Books to ReadBy C. H. Douglas:-

Economic Democracy .(edition exhausted)

Social Credit 3/6Credit Power and Democracy 3/6The Monopoly of Credit 3/6Warning Democracy .

(edition exhausted)The Tragedy of Human Effort 6d.The Use of Money .. 6d.Approach to Reality 3d.Money and the Price System 3d.Nature of Democracy 2d.Social Credit Principles Id.Tyranny Id.

By L. D. Byrne:-Alternative to Disaster . 4d.The Nature of Social Credit 4d.Debt and Taxation 2d.

ALSOThe Douglas Manual S/-The Economic Crisis:Southampton Chamber ofCommerce Report :....... 6d.The Bankers of Londonby Percy Arnold : 4/6Economics for Everybodyby Elles Dee 3d.

All fromK.R.P. PUBLICATIONS LTD.,

12, LORD STREET, LIVERPOOL, 2.

ANNOUNCEMENTS AND MEETINGS

Will advertisers please note thatthe latest time for accepting copyfor this column is 12 noon Mondayfor Saturday's issue.

BELi:' AST D.S.C. Group. Monthly GroupMeeting on First Tuesday in each month.Special Open Meeting on Third Tuesdayin each month, to which the public isinvited. "All meetings in the LombardCafe, Lombard Street, at 8 p.m. Corres-pondence to the Hon. Sec., 17, CregaghRoad, Belfast.

BIRMINGHAM and District., SocialCrediters will find friends over tea andlight refreshments at Prince's Cafe,Temple Street, on Friday evenings, from6 p.m., in the King's Room.

BLACKBURN Social Credit Al8ociation:Weekly meetings every Tuesday eveningat 7-30 p.m. at the Friends Meeting House,King Street, Blackburn. All enquiries to168, Shear Brow, Blackburn.

BRADFORD United Democrats. All en-quiries welcome; also helpers wanted

.-apply R. J. Northin, 11, Centre Street,Bradford.

CARDIFF Social Credit Association:Enquiries to 73, Romilly Crescent, Cardiff.N ext meeting on March 19, at 10 ParkPlace, starting promptly at 7-30 p.m.

DERBY and District-THE SOCIALCREDITER will be obtainable outsidethe Central Bus Station on Saturdaymornings from 7-15 a.m. to 8-45 a.m.,until further notice. It is also obtainablefrom Morley'S, Newsagents and Tobaccon-ists, Market Hall.

LIVERPOOL Social Credit Association:Weekly meetings of social crediters andenquirers will continue, but at varyingaddresses. Get in touch with the Hon.Secretary, at "Greengates", Hillside Drive,Wool ton, Liverpool.

Name ..•...•.•••••.••..••••••••..•.......•..•....••..••••••..•...••••••••••••••••••.••.•••••

Address ..•...•••••.••••••..•.•.••..•..•...•......•.•..•..•..•...•.•••••••..•..•.••.••••••••••TO THE DIRECTOR OF REVENUE,THE SOClAL CREDIT SECRETARIAT,12, LORD STREET, LIVERPOOL, 2.

I wish to support Social Credit Policy as defined in the terms of association ofand pursued by The Social Credit Secretariat under the Advisory Chairmanship ofMajor C. H. Douglas. .

I will, until further notice, contribute

{per month,

£ : : ,per quarter,per year,

towards the funds of llre SooiaLCredit Secretariat.

I herewith enclose the sum of £the above mentioned funds.

Signature ••••••.••.•• ~••••••••••••••••••••••••••••••••••••••••••••••••••••• as a donation towards

Signature ..e' ,-. .,.._ ••• ',i.!._•.•• ~ c .

(Cheques and Postal Orders should be crossed and made payable to the SOCIALCREDIT SECRETARIA.T.)

LONDON Liaison Group: Special meeting', ,)on April 5, see page 11. Enquiries to B. M. \.. .J.Palmer, 35, Birchwood Avenue, Sidcup, ....Kent.

LONDON Social Crediters: Lunch-timerendezvous. Social crediters will meetfriends at The Cocoa Tree Tea Rooms, 21,Palace Street, Westminster (5 minutesVictoria) on Wednesdays from 1-30 to 3

.p.m. Basement dining room.

NEWCASTLE and GATES HEAD Social lCredit Association are compiling a register 'of Social Crediters on the Tyneside. Reg-ister now and keep informed of localactivities. What are YOU doing? Let •us know, we shall be glad of suggestions. .Write W. Dunsmore, Hon. Secretary, 27,Lawton Street, Newcastle-on-Tyne.

PORTSMOUTH D.S.C. Group: Enquiriesto 115, Essex Road, Milton; 16, St. UrsulaGrove, Southsea; or 50 Ripley Grove,Copnor.

SOUTHAMPTON Group: Secretary C.Daish, 19, Merridale Road, Bitterne,Southampton.

WOLVERHAMPTON: Will all socialcrediters, old and new, keep in contact bywriting E. EVANS, 7, Oxbarn Avenue,Bradmore, Wolverhampton.

The Social CrediterIf you are not a subscriber to THESOCIAL CREDITER, send this ordef-Jwithout delay.K.R.P. Publications Ltd.,12, Lord Street, Liverpool, Z.

Please send THE SOCIALCREDITER to meName .

Address .For Twelve Months-I enclose 301-"Six " ,,151-"Three" ,,7/6

(Cheques and Postal Orders should be crossedand made payable to K.R.P. PublicationsLtd.)

EXPANSION FUNDTo the Treasurer,Social Credit Expansion Fund,c/o The Social Credit Secretariat,12, Lord Street, Liverpool, 2.I enclose the sum of £ : . ,as a donation towards the Social CreditExpansion Fund, to be expended bythe Administrators at the Sole Discretionof Major C. H. Douglas.Name .Address .(Cheques and Postal Orders should ,.crossed and made payable to the Soc\.CREDIT EXPANSION FUND.)

. ..... . .~Published by the proprietors, K.R.P. Publication••

Ltd., at 12, Lord Street, 'Liverpool, 2.Printed by J. Hayes & Co., Woolton, Liverpool.