The Social Crediter, Saturday, March 1, 1941.

) THE SOCIAL CREDITERFOR POLITICAL AND ECONOMIC REALISM

Vol. 5. No. 25. 6d. Weekly.Registered at G.P.O. as a NewspaperPostage (home and abroad) Id. SATURDAY, MARCH 1, 1941.

FROM WEEK TO"Mr. Averall Harriman will come

to London within a fortnight. PresidentRoosevelt indicated that Mr. Harrimanwill handle such questions as the BritishDefence Estimates, Priorities, and Con-tracts."- British Press Communique, February

19, 1941.Messrs. Harriman, the New York

financiers, are more or less "Gentilefront" for Messrs. Kuhn, Loeb andCompany. They were granted enor-mous concessions, amounting to thou-sands of millions of dollars, by Leninand Trotsky, for the industrialisation of-Russia. These were carried out inthe Socialist paradise practically byslave labour, directed by Americantechnicians, thus providing the American"Prosperity" boom.

Evidently it is not too early toprepare for the "reconstruction" ofEurope in general, and Great Britainin particular, through the same channelsand by similar "Socialist" methods.

• • •Mr. Knudsen informed the Press

that 957 aeroplanes "went to the fightingforces of the United States and GreatBritain" in January.

You see, we're one great FightingForce. The only difference is that theBritish do the fighting and the paying,and the Americans get the aeroplanesand the money. _ Just like last time.

• • •Amongst the minor horrors of war,

is that we appear to be condemned tolisten to shopkeepers such as Lord Wool-ton, who is ostensibly appointed todistribute food, telling us that we arefar better off if we don't get it. Asquite a lot of people believe that oneof the main reasons that we-don't get it,is Lord Woolton, might we hint, deli-cately, that "Ye take too much uponyourselves, ye sons of Levi"?.)

- -. •Scottish Hill -Sheep farmers, who

WEEKgraze sheep upon the best of the hillpastures, are on the verge of ruin, orover it, owing to Management fromWhitehall. It is felt in Socialist circlesthat the remedy for this is to appointa large body of Civil Servants to draftregulations to force the sheep on LOdeer "forests," which are mainly stones.

• • •One of the great difficulties in the

Food Situation, we are informed, is lackof cheese. The British cheesemakingfarmer, who made the best cheese in theworld, was ruined purposely and con-sciously in the interests of InternationalTrade, and the surplus milk was eithersabotaged or made into umbrella han-dles. Owing to the activities 'of theMilk Marketing Board, the price of milkto the consumer has been doubled, thesupply halved, the farmer is worse off,and the land wrecked.

GARIBALDI ANDFREEMASONRY

A priest, "M.J.F.", writing to theCatholic Herald, quotes the words of thePrime Minister: -"I speak to you whatthe diplomatists call words of great truthand respect. We were the champions ofthe Italian Risorgimento. We were thepartisans of Garibaldi, the admirers ofMazzini and Cavour." -

The correspondent goes on to saythat Garibaldi was Grand Master of theRites of Memphis and Mizraim when,with 1,000 Masonic followers, he in-vaded and occupied Naples. Otherdetails are given associating Englishfreemasons with partisanship of Gari-baldi and Mazzini; and a Garibaldidinner at Venice in 1880 is mentioned,whereat every diner received a cardwith the _words: .,......

-"To make the Italian people strongit is necessary not only to destroyChristianity but also to make every man

an Atheist and then the Italians will bestrong and patriotic.

"Signed: GARIBALDI."

OUR HEAD PLANNER

"That was the way our Alliedcensorship worked in the early monthsof the war. 'For months,' one Londoncorrespondent remarked, 'the Britishbungled the censorship and then'-alook of hopelessness crossed his face-!they named Sir John Reith as headof the Ministry of Information.'

"Sir John had been head of theB. B. C His tenure there wasmarked by a historic broadcast to theArabs during a Government propagandaprogramme in the Middle East. SirJohn's experiences with Arab propagan-da began when Mussolini was floodingthe air waves from Morocco to the Per-sian Gulf with appeals for his ownelevation to the job of protector ofIslam. The British programme was de-signed to combat the Italian radiobroadcasts and win the Arabs back.With that in mind, the British repre-sentatives throughout the Near East

On Other Pages

SIR ARCHIBALD WAVELLON GENERALS

By T. J."THE ECONOMIST"

ENDORSESDOUGLAS'S ANAL YSIS

By J. M.MUD BATH

By _B. M. Palmer

Mr. HEPBURN'S STATEMENT

289

Page 2

invited their most distinguished Arabianfriends to listen to the first B. B. C.broadcast. They tuned in their radiosat the appointed hour and were givena news bulletin announcing that theBritish had executed a famous Arabsheik-who was a rebel and an outlaw,to be sure, but was admired throughoutIslam as a sort of desert Robin Hood.Mussolini's prospects for a triumphalentry into Mecca were never brighter.

" Something of the same techniquewas taken into the M. O. I. by Sir John.He took charge at a time when thenerves of both British and foreign news-papermen in London were frayed. Anychange in direction of the censorshipseemed a good one to the reporters,who crowded into an anteroom seekingto discuss their troubles with the newminister. They! waited for hours.

"At last a deathly cold voicethrough the loud-speaker system gavethem their answer. 'Sir John,' it said,<does not intend to see any journalists.'

"Needless to .emphasise, Sir John'sshort reign at the M. O. I. did little towin the admiration of American re-porters."- "Saturday Evening Post," Janu-

ary 5, 1941.

• • •CATILE CAKE 'SHORTAGE'

"'Many cattle are starving 10

Angus.' This was how a well-knownAngus farmer summed up the effect ofthe rationing scheme.

"And this is not only true .of Angus,but o.ife and Perthshire.

"What makes the position worse isthe fact that this need not be, asapparently there is plenty of cake, butbecause a farmer is 'surplus' the depart-ment says he cannot get any of it.

"The result is that cake manufac-turers find their premises packed withcake, and making more, but with nobuyers to relieve them of what theyhave.

"In fact, unless something is donesoon to get rid of this cake many manu-facturers will have to stop manufacturing.

"I understand many of the largeEnglish and Scottish firms. have threat-ened to close d()W11,if the Ministry donot do something to assist them and,what is more, do it soon,"

- Dundee "Courier," February 18.Further rationing of cattle-cake has

been fe:recast in the national press duringthe week.2,90

THE SOCIAL CREDITER Saturday, March 1, 1941.

FASCIST FINANCIERCount Guiseppe Volpi di Misurata,

one of the most prominent of Mussolini'sbackers, recently visited Vichy and wasreported to be "going on to Spain orPortugal to seek contact with Britishinterests."

U.S. sources suggested, accordingto the News Review, that Count Volpiwas trying to negotiate a separate peacebetween Italy and Britain, and that hisVichy conversations would cover theFrench end.

Volpi negotiated peace betweenItaly and Turkey after Italy had seizedLibya in 1911.

He then entered the Banca Com-merciale Italiana, and became a million-aire. Subsequently Mussolini chosehim as first civil governor of Libya, andit was under his governorship that Libyawas colonised by Italians and the desertround Misurata cultivated to producecrops of fruit and vegetables.

On his return to Italy Mussolinimade him Minister of Finance. He re-tired in the early days of the worldcrisis.

Count Volpi is the chief shareholderof the Lido, and has interests in theInternational Sleeping Car Company,which runs sleeping cars on" Europe'sexpresses. He is also chief of theAssicurazioni Generali, the biggest In-surance concern in Italy, where hereplaced Jewish Edgaro Morpurgo.

His greatest interest, however, is inelectricity concerns. . His companiescontrol most of the hydro-electric powerstations in the Alps which provide thecurrent for the industries of NorthernItaly. Until the war he also ownedseveral electricity undertakings in Eng-lish provincial districts.

He also has a large stake inSOFINA, the international holdingcompany registered in Brussels whichcontrols electricity companies and trans-port companies all over the world,including (up to the outbreak of war)some in England, Germany and theUnited States of America.

In 1939 Count Volpi received theK.B.E., conferred on him by KingGeorge in recognition of his 'eminentservices to British industry and culture.'

• • •ELEPHANTS NEVER FORGET

In Andre Maurois's new book, WhyPrance Fell, the French author states thatamong the forces which in this COuntry

opposed adequate armed protection toresist Hitler were "the bankers of theCity who were concerned about theirloans to Germany," and also "a certainnumber of persons of importance, terri-fied by Bolshevism, who believed fool-ishly that they had found in Nazism abarrier to the Revolution."

This fact is of course well known toSocial Crediters, who are also aware ofthe names of many of those "terrifiedpersons of importance" now even morefrightened in their fight against Hitler.An illuminating fact is that the abovequotations were not included in the ser-ies of three articles in the Daily T ele-graph recently, giving extracts from thisbook.

Because Westminster has been un-able to sweep aside the canons of ouralleged Sound Finance we are now allhaving to face the cannon kindly finan-ced by those "persons of importance"still unhappily at large. Fearing thatocean of Tartaric acid which is USSRia,"those persons of importance" as well asof unimportance are at last assailed withthe Blood and Iron-mongery of Bis-marck's pupil, the Red paper-hangerwith the brown-shirt busily painting themap of Europe Prussian-blue.

Our "great national dailies"frequently cackle in chorus of themarvellous "news value" they give fora penny or twopence a day. "It paysto advertise" is their favourite slogan.Thus at the cost of a few hundredpounds of inkwell money spent onadvertising the report of an annualmeeting of a bank's shareholders, it"pays" that bank so well that the grate-ful newspaper owners carefully "vet"every unpleasant reference to their all-powerful Dictator's transactions.

"Gratitude is thanks for favoursto come," said La Rochefoucald. Likeelephants., "great national newspapers"never forget. They never forget thekindness of the Money Monopolists whobuy advertisement space, the gratitudebeing two-sided-a double-deal, as itwere. Thus the "Security First" ofthe banks is the corollary to "It PaysTo Advertise" of the newspapers. Soto hell with "democracy" and "currency-cranks" and "social crediters" and .otherperverted busybodies who "ought" tobe confined within prison-walls as wellas within inverted commas wheneverreference is made to the annoying speciesin the chaste columns of our "greatnational dailies."

WU..LIAM BELL,

Saturday, March 1, 1941. THE SOCIAL CREDITEiR Page 3

THE MUD BATHThe Times has recently published

three lectures which were delivered bySir Archibald Wavell at Trinity Collegein 1939. Reproduction in whole or inpart is forbidden, so I cannot quote, butperhaps it is just as well. We should allread these articles in the original. Wehave more to learn from a man like thisthan from all the higher-lifers rolled intoone.

From indications recently given incorrespondence, it seems that there arestill people who do not know we arefighting; or if we are fighting, they im-agine it can be done in white kid gloves,and with a ladylike demeanour. Thesepeople (and please notice the pluralnumber), some of whom are my friends,do not realise that everyone of us isfighting, whether we like it or not. Everydeed that we do, every thought we thinkis part of the campaign. The longerthis war goes on, the clearer it becomesthat the war against Hitler and Mussoliniis merely the more urgent and pressingaspect at the moment, perhaps not soimportant in the long run as may seem,although of course, it must be won.

But Hitler and Mussolini are beingdealt with by those whose duty it is todeal with them, and we others maywaste a good deal of time and energy intrying to understand a military situationwhich is beyond us. Why not get onwith our own work, and tackle the enemywithin our reach ? We can all recognisethe enemy within our gates if we try:the facts are observable, and accessibleto our knowledge. From this point ofview every one of us is a campaigner asvaluable as the soldier in the field.

The first thing to do is to realise thatthe situation is militant.' He who is notfor us is against us. ·We must have thesame attitude to our opponents that theAustralians in the desert have to theIti's. And that does not mean that thereis any need to lose our sense of humour;the British soldier never does (see Gene-ral Wavell on this and a delicious storyabout German staff work in promoting asense of humour in Fritz).

So it is useless to ask me, "Whydon't you make any allowances? Someof the things The Times's leader-writer

\. f says are quite correct-he said the other""'-..J day that the only object of production

is consumption. Why don't you givehim any credit for this?"

By B. M. PALMER

Simply because he is my enemy,and he wants me to give him an ell sothat he can take a yard. He only madethat admission in order to draw a wronginference from it. Why should I standin the line of his bullet? I'll get out ofthe way and let him waste his ammu-nition.

I am not conducting a friendly dis-cussion with these leader-writers, and thesooner everyone knows this the better.My method is to read their articleshoping to catch them out in a foolishadmission; I am hoping for the enemyto make a mistake so that I can takefull advantage of it. I am not givingthe enemy the benefit of the doubt.There is no doubt as far as I am con-cerned-war is a rough and hard game-see General Wavell again (I hope thisisn't quoting).

I have also been asked why I don'tleave the Jews, Freemasons and finan-ciers to their own devices, while I geton with the dissemination of truth. Theyare sure to be defeated in the end.

By whom?This is like saying "Yes, rI'know

the enemy is creeping up in the rear,but it will be best not to pay any atten-tion to what he is doing, as no doubt hewill come a cropper before long."

A soldier can't afford to take risksof that sort. We must fight the enemywhere he is to be found, not wait, hopingthat he will put himself into a positionmost favourable to ourselves. He'll bea fool if he does. And the enemy isn'ta fool, whatever else he may be. Toimagine that all our opponents areearnestly seeking for enlightenment andare willing to learn anything from us isone of the biggest tactical errors we canmake.

The attitude of the enemy has beendefined by themselves at least once:-

"I'm afraid some of my readershave been kidded into trying to argue

.banking and credit in the columns of thelocal press. Believe me, there is no moreunprofitable hobby under the sun. Thereare enough substantial quotations in ex-istence to prove to the uninitiated thatbanks do create credit without restraintand that they do create within themselvesthe means of repayment."-Editorial(page 242) in Branch Banking, July 1938.

That is not the attitude of an earn-

est seeker after truth. It is the attitudeof one who would deny something if hecould. But he has found the positionuntenable. Better abandon it.

We know that we are fighting morethan the "Bankers" now. The war is insober truth a total war. But it is a warjust the same, and we shall have to fightfor every position we take.

It seems that in the light of theseconsiderations there is no such thing as"destructive" or "constructive" criticism.In every case one takes the course thesituation demands. To classify criticismin this way, label one sort "constructive"and the other "destructive" and to saythat the first is "better" than the secondis quite beside the point; it is in fact,trying to bring in the moral questiononce again.

You have to judge by results, andif you can't see any results, I feel rathersorry for you. I won't even take thetrouble to point them out to you. "Noneso blind .... " And this part is meantfor someone. It is for the man who said."Well, it's been going on for twentyyears," implying that we ain't seennothing yet, and never will.

Some people have no time sense.It seems that mountain guns are

tested by dropping them from a greatheight, and rifles for trench warfare areburied in mud for two days before beingpassed as suitable.

These attacks against morale, whichall of us have to bear and which comeindirectly from the enemy (where elsecould they come from?) can only becountered in one way. We have to bestrong enough to withstand them, as itis impossible but that they should come.We know that we are going to be buriedin mud at intervals-Why not be pre-pared?

We all of us have moments of clearsight when the whole field of battle isfree of mist; we know what has beendone, and what there is to do. Theseare moments of inspiration. We mustremember them when the mist comes

TO LONDONERS

Please see back page for notice ofthe next re-union of the LondonLiaison Group.

291

Page 4.I

Saturday, March 1, 1941.

down and the mud rises. What we havealready seen is still there. We haveto beware of physical and mental stateswhich seem to contradict what we havealready honestly observed. Thoughmillions of people should see nothing

THE SOCIAL CREDITER

but the mud _and mist, such lack ofvision cannot change what is behindthem.

I suppose we have all had the cur-ious sensation of being alone in a world

of lunatics. Of course this is a delusion ,-we never are. But for goodness sake,' IIdon't fall into the opposite error and .~.feel a lunatic in a world of the sane.Don't let the mud down you.February 19.

FLEXIBLE BARTER SYSTEMThe following outline of the proposed expansion of the Interim Programme, Treasury Branch system, in

Alberta (a full account of which appeared in "The Social Crediter" of October 29 and November 5, 1938) istaken from a recent statement by Mr. E. C. Manning. Observers in Alberta are of the opinion that, "with theindicators pointing to imminent financial collapse in Ottwa, the Interim Programme will stand out as a pointerto the pro-per scientific financing of the war."

The right to barter their own goodsis an unquestionable property right ofour people and, therefore, within pro-vincial jurisdiction without a shadow ofdoubt. We have seen how much con-flict can arise from any action whichinvolves the financial system-and weare most anxious that no such controv-ersy should be perpetuated at the presenttime, when the need for national unityand full support for the federal govern-ment in our war effort are so essential.

We are confident that no suchconflict will arise if our people merelyexercise their constitutional propertyrights by using a barter system of theirown, which does not interfere with themonetary system but rather acts as anauxiliary to ensure that it operates moreefficiently. . ...

At first this may appear to be acomplete and far reaching departurefrom the present treasury branchesscheme. Actually, it will involve veryfew changes and will be nothing morethan an expansion of the present serviceswith the introduction of certain newfeatures.

The new features being introducedare:

I-Existing transfer voucher de-posits will automatically become cashdeposits from a date to be announcedlater.

2-A new non-negotiable trans-fer voucher will be introduced for thetransfer of ''trade claims."

3-"Trade claims" will be claimson goods and services as between havingaccounts with the treasury branches.They will not be a claim on cash.

4-Persons may acquire tradeclaims for goods or for services or fromtreasury branches for money. Suchmoney received by the treasury branches292

for trade claims will be available forobtaining goods which have to bebrought into the province or whichcannot be obtained for trade claims orbarter.

5-Retail merchants accepting tradeclaims for their goods will be assuredof satisfactory arrangements for thereplacements of such goods.

6-Consumers obtaining goods fromco-operating retail merchants with non-negotiable transfer vouchers will beentitled to a 5 per cent. bonus in tradeclaims on the price of all such goodsbearing the Alberta Trade Mark and ona like amount of other goods obtainedwith transfer vouchers in any month.

7-Arrangements will be made toprovide proper facilities for retail mer-chants, wholesale merchants, manufac-turers and producers, in order that theymay participate in the benefits of theprogramme with a minimum ot incon-vience to themselves.

8-Contingencies such as leavingthe province for residence elsewhere,travel, etc., will be provided for in caseof depositors accumulating trade claims.

9-In order to assure no disrup-tion of the treasury branch services aperiod of a full month will be providedfor the introduction of these new feat-ures and the signing of new agreements.

I should emphasise that the oper-ation of the interim programme willcontinue to be absolutely voluntary andthe new features like those at present inoperation will depend solely upon theirmerits to win the support and co-opera-tion of all.

The foregoing preliminary an-nouncement is necessarily only a bareoutline of the main features. Furtherdetails will be announced later.

We are inviting the most searching

IN AMERICA

scrutiny of the new features by businessmen in every sphere of production andtrade. Already we have had valuableassistance from the suggestions and con-structive criticisms which some of thesehave made. I am confident that whenthe new services go into operation andthe people have an opportunity of study-ing them fully and carefully, they willrealise their great possibilities for thefuture welfare not only of Alberta butof all Canada.(With acknowledgements to "Today andTomorrow"). ~

SO BOMBS ARE GOOD FOR US-THEY MAKE WORK!"Mr Keynes recently remarked that

war damage to buildings ought not tobe viewed altogether with dismay.'Damage of this kind (he said) is up toa point an opportunity. It is only whenit gets beyond a certain point that itbecomes a disaster.' This dictum can,of course, be read in conjunction withMr. Keynes's suggestion that the com-pulsory savings he advocates-or used toadvocate-should be released at the on-set of the first post-war slump; and itis obvious that rightly timed and exe-cuted, rebuilding might be of thegreatest help when work is mostwanted ..... "- Extract from an article "New Eng-

land" in "The Economist" February15, 1941.

TRIBUTE TO LABOUR"Gossips believed, in fact," says a

contemporary, "that Roosevelt's newchoice [of ambassador] was intended toemphasise his recognition of Labour'sbig stake in the war."

So that's why he chose a million-aire!

Saturday, March 1, 1941. THE SOCIAL CREDITER Page 5

"THE NEEDMr. Hepburn's statement to the press following his speech at the Dominion-Provincial Conference.

REFORM"

My first proposition is that theauthority for creating money now vestedby the Constitution in the DominionGovernment should not be delegated byany other authority, public or private.

The Government being the solecreator of money, it therefore followsthat during this time when the veryexistence of the State is threatened thatthe Government should not be required tohire or borrow money from others and topay high rates of interest, except whatmight be termed a reasonable servicecharge, for the use of the very thingwhich the Dominion Government alonehas the right to create.

By attempting to prosecute the war,which is in fact a great industrial andeconomic effort, by means of moneyeither exacted at burdensome rates fromthe taxpayers or borrowed at unreason-ably high rates of interest, is merely toload down the Government with extraburdens which discourage and preventan all-out participation in the war effortof the democracies.

In Canada the authorities seem tohave determined upon a three per cent.war; but looking at a recent transactionin money in the United States, onerealises how unnecessary it is to payhigh interest rates on money requiredfor the national security. PresidentRoosevelt recently asked for a loan of$500,000,000 at an interest rate ofthree-quarters of 1 per cent. per annumfor a period of four years. The replywas most impressive.

Instead of offering Mr. Roosevelt$500,000,000 the people of the UnitedStates offered him $4,000,000,000.Money, eight times the amount askedwas available at a low rate of interestwhich practically represented a servicecharge. This was the most impressivedemonstration of the fact that, in war-time high interest rates need not standas an impediment in the way of thesovereign power in obtaining moneydesired for Governmental purposes.While President Roosevelt has in manyrespects revolutionised the monetarysystem in the United States there is nopolicy of inflation in that country.Statistics show that the circulation of'0 real money in the United States isapproximately $70 per capita, whereasthe circulation of real money in Canada

MONETARY

is around $30 per capita. By realmoney here I mean what is ordinarilyknown as till-money and I am notdealing with the volume of chequemoney by which American nations carryon a large proportion of their business.

In times of war Governments mustface these facts and must realise thatso long as the goods and servicesnecessary for the prosecution of the warefforts of the nation are available, theproblem of creating money to securethese goods and services is of verysecondary importance. That this truthis disregarded is evidenced by thestatement made last July by the Ministerof Munitions and Supply who said thatthe Government had not yet decidedthat they should build airplane enginesin Canada and cited as the first, andapparently the most important difficulty,the amount of capital involved. Thisstatement, it is interesting to note, wasmade shortly after the disastrous Britishdefeat in Flanders and while Britain'splea for planes and more planes wasstill ringing in our ears. .' :

In this time of great crisis therenow develop two schools of thought-oneholding that money should occupy tl1edriver's seat, that our whole war effortshould be predicated upon our ability totax or borrow at a fixed rate of interest;to tax and borrow with the inevitableresult that the power to produce andexpand is restricted and dwarfed.Whenever you create a condition where-by producers of wealth are so heavilytaxed that they are incapable of payingtheir taxes and enjoying a healthy de-velopment and expansion, you bringabout economic disorder and take awayfrom the nation the very means of savingitself.

Heavy taxation is bound to grinddown the producers and particularly theprimary producers. We are wedded toa condition of affairs brought about bypeople who desire to maintain high in-terest rates .and who constantly spreadabroad the fear of the consequences thatfollow in the train of inflation. Anincrease in the quantity of money is notof itself inflation. The problem as Iunderstand it, is not the issue of newcurrency to retire all existing bond obli-gation, thereby flooding the country withuseless and worthless paper money, but

rather to make available sufficient newcurrency in order to take care of thethe expanding requirements of war time.

I shall be glad at some future timeto discuss this question at further lengthand to deal with some of the conditionsbrought about by high interest rates,particularly those which attach to obli-gations issued long before the war andwhich will continue to burden the debtorGovernmental authorities for more thana score of years to come.

In attacking this problem, Cana-dians will look to the Bank of Canadawhich must not be operated for gain orto serve selfish interest but should ratheraid primary producers and should assistin the solution of the financial problemsof the Provinces and municipalities ofthe nation.

This war in which we are engagedis not being waged for money and itscost will never be expressed in terms ofmoney. The real cost will be writtenin terms of human sacrifice. The soonerwe realise this great truth the soonerwill we bend every effort toward pouringwhat Britain sorely needs-munitions,planes, and ships, regardless of anymonetary considerations.(With acknowledgements to "Today andTomorrow").

DAWES- YOUNG LOANSINTEREST

"Sir Eric Phipps (British Ambas-sador) was present, as was Mr. HarryHopkins, confidant, it seems, of Presi-dent Roosevelt. . ...

"Another guest, George Harrison,president of the New York FederalReserve Bank, was very much concernedabout Germany being commanded byBritain to pay 6 and 7 per cent. intereston the Dawes-Young loans while U. S.creditors under the same plan receivenothing.

"He journeys home in two dayswith Montagu Norman, president of theBank of England. Norman thinks theBritish Government made a mistake indemanding preferential treatment."(June 16, 1934).- The Dodd Diary in the "Sunday

Dispatch."r 7"""'li!III.~ 293

Page 6 THE SOCIAL CREDITER Saturday, March 1, 1941.

THE SOCIAL CREDITERThis journal expresses and supports the policy of the Social." CreditSecretariat, which is a non-party, non-class organisation neither connectedwith nor supporting any political party, Social Credit or otherwise.

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Saturday, March 1, 1941.

Sir Archibald Wavell on GeneralsThe Times has just published

General Sir A. Wavell's Lees-KnowlesLectures on The Art of Generalship.

Generals have had a bad press.They are, however, not the only expertswho have had a bad press. Broadly, agood press has been reserved for rathera long time past exclusively for thoseexperts who specialise in everybodyelse's business but their own. Anyonewho produces anything for other people.to consume must know how to do it.Producers of all kinds have had a badpress, and the bigger the producer andmore vitally important his output theworse the press. The worst press hasbeen reserved for Douglas and his SocialCredit ideas.

T he Times seems loth to break withthis vile tradition even to make an ex-ception of this great general whosesuccesses have .delighted the public."Reproduction in whole or in partforbidden:" The unusual and German-sounding prohibition deprives us ofopportunity to quote from the Lectures.Perhaps The Times feared we mightlaunch out into parallel columns:Wavell on the left, and Douglas on theright. Or it may have thought that ifthe whole tribe of evening-paper leader-writers were let loose indiscriminately onthe subject matter, public morale mightrise to an 'unbalanced' level.

"The general must know how toget his men their rations and every otherkind of stores needed for war."

This is not from Wavell, althoughhe quotes it. The sentence is attributedto Socrates and Plato's copyright haspresumably expired, like Macaulay's,who wrote:-

"In seasons of great peril'Tis good that one bear sway,

294

Then choose we a dictatorWhom all men shall obey.And let him be dictatorFor six months and no more,

"No mystery surrounds the interest

taken by many Social Crediters in theideas of soldiers.

Soldiers and soldiering are con-cerned with the employment of forcesfor political ends. The soldier's policyis given. He takes his policy from his'government,' even when he might easilyenforce his policy on his 'government.'If this should happen, he would, how-ever, only replace his government, andbecome somebody else's 'government' aswell as the enforcer of that 'govern-ment's' policy. Assuming that enoughphysical force is available for the pur-pose compliance with a given policy ofthis kind can be enforced, Agreement,however, is something which cannot beenforced. If agreement can never beeriforced, while compliance can alwaysbe enforced, it seems on the surface asthough the world of human beings weredestined to be conducted eternally onthe lines of a tyranny of some kind-areign of terror punctuated by anoccasional rain of bombs. To mostmen this is an unwelcome conclusion.The moralists seek to escape from it bypointing cut that both. the bombs andthe terror may be avoided. 'Victory'may always be secured by 'not wanting'the result the individual wants. By thismoralistic device of the "larger Vic-tory," compliance and agreement arerendered indistinguishable. At the sametime, the tyrant, supported by themoralistic ingenuity, thinks his will hasbecome indistinguishable from God'swill. The ease, apparently, with which

this transference from one category toanother-from human-tyrannical to Div- \j,'ine, and from resisted to willed-can .be effected suggests that the employmentof forces for political ends has itscounterpart in the employment of forcesfor individual ends. In political dyn-amics, soldiers have probably the lastword; but concerning what that wordmeans for individuals, and for humansociety, social dynamics has the lastword, and for its pronouncement soldiersmight be quite unnecessary. They mightnot. If The Times was right in sug-gesting that we are mistaken in believingthe introduction of bayonets into Albertaimpossible, the generals might be veryuseful to both the social crediters andthe non-social crediters (if any) inAlberta. The social crediter is inter-ested in war because he is engaged inwarfare. But he is not waging war toimpose 'his plan' or his 'government's'plan. He is not waging war to imposehis 'Social Credit Order' on Alberta, oron Canada, or on England, or on Ger-many. His war is being waged to takethe lid off an old natural order whichthe 'new orders' of human devisingsubmerge. The evidences in favour ofthe view that this process of submersionis actually and potentially dangerous tothe whole fabric of human society arenot relevant to this article.

Not altogether irrespective of thenature of the forces, soldier and socialcrediter share a common interest in allmatters concerning the nature and em-ployment of forces.

Do the lectures as reprinted in TheTimes reveal an exceptionally high levelof English competency and practicalcommon-sense? We do not think so.They reveal an exceptional individualadhering with exceptional tenacity tothe standard natural level of Englishpractical common-sense. They come sorefreshingly from the pages of TheTimes only because English practicalcommon-sense rarely finds any repre-sentation therein. T. J..THE ART OF GENERALSHIPBy General Sir Archibald Wavell

(The three Lees-Knowles lecturesrepublished as a pamphlet).

Price': 7d. post free.

Obtainable fromK.R.P. PUBLICATIONS LTD.,

12, LORD STREET, LIVERPOOL, 2.

Saturday, March 1, 1941. THE SOCIAL CREDITER Page 7

"The Economist" Endorses Douglas's

" .... the sum of the wages, salariesand dividends, distributed in respect ofthe world's total production will buy anever-decreasing fraction of it, and cannever control it."-MAJOR DOUGLASinEconomic Democracy, published in 1920.

"The problem of the Budget in war-time is a continuous Battle of the Gap.Expenditure is chronically in excess ofwhat can be raised by taxation or bor-rowed from savings. That there shouldbe a gap is almost inevitable;" ...."There is thus a prospective deficit ofat least £3,300 millions, or, say, £300millions a month. But the deficit isnot the same thing as the 'gap,' in whatis coming to be the accepted connota-tion of the word, for there are severalsources of funds at the Treasury's dis-posal which, while not taxing revenue,are nevertheless non-inflationary. Themost important of these is, of course,the borrowing of genuine savings.Another is the realisation of foreignassets and a third is the accruing sur-plus on a number of funds such as theUnemployment Fund. But the conclus-ion reached a fortnight ago was thatwhile the deficit can hardly be put atless than £300 millions a month, thesenon-inflationary sources can hardly beput a more than £150 millions a month,leaving a real 'gap' of £150 millions amonth.

"This distinction between the de-ficit and the 'gap' is the chief sourceof confusion, genuine or induced, indiscussions of fiscal policy." ....

"Out of the present total expendi-ture of, say, £4,400 millions a year, itmay be that £800 millions a year ispaid for by these methods [the sellingof assets in the U.S.A.]. The balancewould then be at the rate of £3,600millions a year now, and we may guessthat it will be at least £4,500 millionsin the coming financial year." ...."Against this £4,500 millions, revenue,as estimated a fortnight ago, will bringin, without any increase in taxes, nomore than £1,700 millions. Havingleft the realisation of foreign assetsaside, we are left, of course, with adiminished total of non-inflationarysources of finance. Indeed they areunlikely to be much, if any, more thanthe gross total of subscriptions to Gov-ernment loans. We can allow a

maximum of £1,200 millions a year,leaving a 'net gap' of £1,600 millionsa year, or, say, £150 millions a month."

". . .. The existence of a 'gap'financed by the creation of credit doesnot make a rise of prices inevitable. Itcreates a greater quantity of purchasingpower than can be spent on the availablegoods at present prices. But if rationingis all-inclusive enough, if the Prices ofGoods Act is strictly enforced, if wagesand material prices are kept down, thisadditional purchasing power may findit impossible to spend itself. It would,therefore, be a mistake to lay the blamefor the rising prices from which we havesuffered, are suffering, and shall sufferon Budgetary policy alone, without alsoblaming the Government's policy forindustrial and raw material prices, whichpositively encourages them to rise, andon its complete lack of any wagespolicy at all. .. :."- Extract from an article entitled "The

Battle of the Gap," in "TheEconomist," February 15, 1941.

We have The Economist's: admis-sion, then, that the banks are creatingat the present time at least £1,600millions of credit a year and lendingthis sum to the Government in orderthat the nation can purchase the. wholeof the products of industry-and thisis with many millions of the able-bodied men of the nation in unproduc-tive services, and industries severelyrestricted by bureaucratic methods.

What is to be noted from this ad-mission by The Economist? Firstly, inthe words of Douglas in EconomicDemocracy: "Now, it must be perfectlyobvious to anyone who seriously con-siders the matter that the State shouldlend, not borrow, and that in this re-spect, as in others, the financier usurpsthe function of the State." So the£1,600 million should be claimed asthe nation's credit, and not regarded asa debt to the banks.

Secondly, this. gap is still presentin time of peace, that is, the gapbetween the aggregate prices on pro-duction and the nation's income and thisgap must be bridged as it is in war-timeby the use of credit created and issuedby the banking system. But in peacetime instead of the Government havingthe spending of this new money it must

Analysis

be distributed direct to the consumersof the country for them to spend. Thus,assuming that the population of .thiscountry is 40 millions and that the Gapis only £1,600 millions, £40 per headwill have to be distributed to everycitizen in the country as purchasingpower over and above what they receiveas wages, salaries or dividend, whetherthis is done by paying them a cash divi-dend or applying the amount or part ofthe amount to a reduction in prices.

J. M.

THE EFFECT OF INCOME TAXIn a recent debate in Parliament

Mr. Culverwell, M.P. for Bristol West,read out part of a letter from a coal-owner:

"Another serious matter is, ofcourse, voluntary absenteeism, and asthe war wage has gone up the absentee-ism has increased. The younger menare the principal offenders and do nothesitate to inform the managers andofficials that they will only sendsufficient coal to enable them to earnthe minimum wage, whereas they couldbe earning considerably more. Anotherreason they give is that they do notintend earning sufficient wages to payIncome Tax."

The same thing occurs in manylarge factories, including those makingmunitions.

Mr. Bevin's solution is to use com-pulsion to abolish voluntary absenteeism.

SIR OTTO NIEMEYERSir Otto Niemeyer has accepted an

invitation to serve as chairman of theCourt of Governors of the LondonSchool of Economics and PoliticalScience in succession to Lord Stamp,who served as chairman from 1935 to1940.

'DISTRUST"Admiral Francois Darlan ... never

liked the British, even when France wasan active ally. 'I don't trust them,' hesaid, 'not even Winston Churchill.'''- "Pertinax" in the Montreal "Stan-dard."

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Page 8 THE SOCIAL CREDITER Saturday, March 1, 1941.

PARliAMENTWAR DAMAGE: MEANS TEST:

February 12.WAR DAMAGE BILL

(102 columns).(FIRST SCHEDULE.-Constitution and

Procedure of the ~ ar DamageCommission.)Major Milner: I beg to move, in

page 52, line 14, to leave out para-graph 3.

I move this amendment in orderto call attention to the increasingtendency in recent Acts of Parliamentto debar Members of this House, notto mention Members of another place,from occupying positions on such aCommission as that which we are nowsetting up. This procedure originatedin the days of Queen Anne, in 1707,when the Succession to the Crown Actmade acceptance of office under theCrown a disqualification for member-ship ....

In 1707, patronage was a verygreat thing and it was necessary toprovide that the Executive should nothave too much patronage, and certainlynot secret patronage. The position to-day is entirely different. All theseappointments are made in the light ofday, and there seems to be no specialreason for debarring Members of Par.liament from acceptance of office, forexample, on the proposed War DamageCommission. In these days, all shouldbe able to pull their weight, not onlyin Parliament, but elsewhere, in anyposition in which their experience andknowledge would be of use. On thecontrary, we see that, little by little,the ordinary Member is being moredebarred. Nevertheless, one reads in

.the newspapers that special provisioncan be made. One reads that it is pro-posed to bring before this House a Billwhereby the right hon. Member for Rossand Cromarty (Mr. M. MacDonald)may take the High Commissionership ofCanada and yet retain his position inthis House. It is possible, in what theGovernment consider to be appropriatecases, to make provision that acceptanceof an office which may last for a longtime and be carried on thousands ofmiles away from here, is not incom-patible with membership of this House.On the other hand, one reads, as I didthis morning, that another hon. Memberhas been appointed to be Governor of296

Burma, and will have to vacate hisseat.

The situation is full of inconsist-encies, and the Government ought totake it up. Members of this House canserve in the Army, the Navy or theRoyal Air Force and can draw doublesalaries whereas, if I may say so withoutoffence, the hon. and learned Memberfor North Croydon (Mr. Willink) isdoing extremely useful work in con-nection with evacuation in London andis not, I think, in receipt of or entitledto take any salary for his work. Thatapplies also, I think, to my hon. Friendthe Member for North Tottenham (Mr.R. C. Morrison) who is filling a mostimportant position connected with theMinistry of Supply, but is similarlynot entitled to draw appropriate remun-eration therefor. If those members hadno private means they would not beable to give their effort and time to theservice of the State and the existenceof these provisions debar those withoutsuch means from doing outside workwithout remuneration. By the WarDamage Bill Members will be-debarredfrom sitting on the Commission buton the Forestry Commission, the BaconDevelopment Board and other Boardsthey are entitled to sit.

A precedent is therefore being setup, with all these new bodies which, inwartime, are more numerous than ever,that Members of this House should bedebarred from appointment to them.That ought not to be the case, particu-larly in wartime. What a good thingit would be if the great majority ofMembers of this House were associatedwith definite work apart from member-ship of this House, in support of the wareffort, and were able to bring theirexpert knowledge and experience to theservice of the country and of the House.The practice of which I complain oughtto be discontinued and, indeed, I shouldbe prepared to do away with the Actof 1707. It does not necessarily ensurethe right men getting the right position,and in these days it does not seemnecessary to debar Members of thisHouse from occupying positions of thissort. Contrary to the old days, all thesematters are now dealt with in the lightof day. Then again, special provision,some Members can occupy some pos-itions while in other cases they cannot

COAL SUPPLIES

do so.Sir H. Williams: I am going to

oppose this Amendment for preciselythe same reason as my hon. and gallantFriend moved it. I have with me acopy of the OFFICIAL REPORT for thelast Sitting Day, containing a list ofmembers of His Majesty's Government.Seventy-one Members of this House arenow Ministers of the Crown; if eachhas 8. Parliamentary Private Secretary,that makes 142. There are also twoAmbassadors and one Commissioner.I am in favour of Queen Anne. Weare getting on to dangerous ground whena quarter of this House is in the serviceof the Crown, and I hope that note willbe taken of a situation which is develop-ing unfavourably.

The Attorney-General: .... Quiteapart from whether it would be rightor wrong in war-time, it is relevant topoint out that the activities of this bodywill certainly last after war-time. There-fore there is no question of what might01' might not be justified in war-time.Another point which I hope the Com-mittee, and perhaps the hon. Gentlemanwho moved this Amendment, will acceptas another reason against the Amend-ment, is that this Commission will becharged with semi-judicial functions.In cases where judicial or semi-judicialfunctions arise it is desirable that hon.Members should debar ourselves fromserving. My hon. Friend who movedthe Amendment suggested that there wassome recent tendency to treat it as auto-rnatic. I do not think that is so. Forexample, in the Regional CommissionersBill this House made the exception bywhich Members of this House weredebarred from serving.

Major Milner: Having regard towhat has been said, I am prepared toask leave to withdraw the Amendment,cut I think that there should be someconsistency in this matter ....

F ebruary 13.

Oral Answers to Questions.(37 columns)

LOCAL AUTHORITIESFINANCIALASSISTANCE

Mr. Denville asked the Minister of

Saturday, March 1, 1941.

J)Health whether he can now make anyfurther statement as to the number oflocal authorities which will, in war-time,require financial assistance to enablethem to carryon; the number andaggregate amount of loans which havebeen sanctioned for the purpose, and thenumber of applications which are stillunder consideration; and whether thisaid connotes any measure of Treasurycontrol?

Mr. E. Brown: Financial assistanceof an aggregate amount of £362,000 hasbeen advanced to 14 local authorities.Applications are under considerationfrom the 28 Metropolitan boroughs andfive other authorities. In addition Ihave received joint representations fromnine county boroughs which havesuffered severely from enemy air raids.No estimate can be made of the numberof local authorities who may eventuallyrequire financial assistance, as this will'necessarily depend on the course of thewar. Assistance will be conditional onthe examination of estimates of expend-iture and receipts and the securing ofreasonable economy consistent with themaintenance of essential services, butapart from this, the receipt of assistancedoes not connote close control of theactivities of the local authority.

Mr. Denville: . Can this money beconsidered as a loan and, if so, whatinterest will have to be paid?

Mr. Brown: Perhaps the hon.Member will put that down in preciseterms.

" DAILY WORKER" AND THE"WEEK"

Sir Waldron Smithers asked theHome Secretary whether he is in aposition, without prejudicing the nation-al interest, to publish a balance-sheet forthe last available financial year of theDaily Worker and the Week?

Mr. Peake: No question of pre-judicing the national interest arises, butmy right hon. Friend is not in a positionto draw up and publish such balance-sheets.

Sir W. Smithers: May I take itthat a balance-sheet is not available?

Mr. Mabane: I am told that theDaily Worker is a private company,and the balance-sheets of private com-panies are not normally available.

THE SOCIAL CREDITER

DETERMINATION OF NEEDSBILL

(73 columns)[This Bill modifies the household

means test for unemployment assistance.An amendment for the complete abolitionof the means test was moved by Mr.Ness Edwards and seconded by Mr. EllisSmith. Supporting the amendmentMr. A. Bevan, while admitting that therewas 'a good deal of advance' in theBill, said: - ]

First, the honour of the BritishLabour Party is involved in it. Thereis no simple political issue upon whichwe have pledged ourselves so deeply asthis matter of the household means test.I was in the House in 1934 when theBill was introduced establishing theUnemployment Assistance Board. Therewere only 40 or 50 of us, and we keptup a day-by-day battle against it. Wehad demonstrations in the country.There is not a Member before or behindme who has not pledged himself moredeeply than any single politician hasever been pledged. Is there a manhere who has not committed himself onthe platform at some time to abolition

. of the means test altogether? Nothingdoes more deadly damage to democraticinstitutions than for politicians to runaway from their pledges. We' sit herebecause we made that pledge. ManyMembers would not be here if it werenot because of that, and it is dishonour-able in the extreme to run away at thismoment. There is no justification forrunning away at all; indeed, the nationalinterest is bound up with it, becausethe morale and well-being of our peopleare the best single contribution that weshould make to the national effort ....

There is another aspect of thismatter which is equally serious. Whenmy hon. Friends entered the Governmentit was recognised that a new and uniqueParliamentary situation had been createdand that it would be a great test of theflexibility, resiliency and dignity of ourParliamentary institutions. I suggested,and I understood that the House andMr. Speaker accepted it, that theOpposition would be wherever oppositiondisclosed itself and that the Govern-ment should collect their majority fromthe House by free and open discussion.I understood that that was to be ourprocedure and that the procedure wouldnot be to attempt to drive an unpopularMeasure through the House by back-stairs methods and by bullying Membersinto acquiescence. Now I understandthat the Parliamentary Committee of theLabour party have decided to hold a

Page 9

special meeting next Tuesday morningin order to bring to book those Memberswho dare to fulfil their pledges in theHouse. Why are they going to do that?Because when they go to their constitu-ents they will be asked why it was thatA, B, C and D went into the Lobby andthey did not, and they do not want tohave the unpleasantness of having toreply. Why should we allow them tobury their consciences secretly? Whyshould we exempt hon, Members herefrom the obligation of making publicexplanations of their public conduct andpermit them clandestinely and secretlyto violate their pledges? It is not inkeeping with the honour of a Memberof Parliament that he should seek to findin closed and secret rooms upstairs an .excuse for betraying the people whomhe represents in the House of Commons.That is exactly what the right hon.Gentleman is doing.

[The Amendment was lost by 173votes to 19.J

February 18.Oral Answers to Questions.

(35 columns)

LOUGH SWILL Y.Professor Savory asked the Secre-

tary of State for Dominions Affairswhether any record exists in his Depart-ment showing whether the Governmentof Northern Ireland was consulted withregard to the abrogation by the Agree-ment of 1938 of the clause in theAgreement of 1921 reserving to HisMajesty's Imperial forces the use ofLough Swilly, situated within a fewmiles of the City of Londonderry?

The Under-Secretary of State forDominion Affairs (Mr. Shakespeare):No, Sir. As has been made clear inpublic statements by the present PrimeMinister of Northern Ireland and hispredecessor, the Northern Ireland Gov-ernment was not a party to theAgreement of 1938 relating to the trans-fer of the ports.

Professor Savory: Does the hon.Gentleman realise how very seriouslyNorthern Ireland is concerned, and thatLough Swilly is within nine miles of theCity of Londonderry, which is thesecond city of Northern Ireland?

Mr. Shakespeare: I realise that,Sir Hugh O'Neill: In view of the

well-known fact that the Government ofNorthern Ireland were opposed to thehanding-over of the ports to SouthernIreland, might it not have been better

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Page 10 THE SOCIAL CREDITER Saturday, March 1, 1941.

to have had consultations with themofficially and to have paid some attentionto their views?

Mr. Shakespeare: I was asked ona question of fact. Now the right hon.Gentleman asks for an opinion, and Iam not called upon to give that.

WAR AIMS.Mr. Wedgewood asked the Prime

Minister whether he will give time forthe discussion of the Notice of Motionstanding in the name of the right hon.Member for Newcastle-under-Lyme con-cerning war aims?

["That, in the opinion of thisHouse, no statement on war aims shouldbe made by His Majesty's Ministerswithout previous consultation and agree-ment with the Government of the UnitedStates of North America."]

The Lord Privy Seal (Mr. Attlee):No, Sir. I am afraid I cannot hold outany hope of special opportunity beinggiven for discussion of the Motion stand-ing in the name of my right hon.Friend.

Mr. Wedgwood: Will the righthon. Gentleman urge that no statementof war aims should be laid down byHis Majesty's Government without con-sultation with the United States Gov-ernment?

Written Answers (15 columns).POST-WAR RECONSTRUCTION.

Major Lloyd asked the Ministerwithout Portfolio whether it is his in-tention to take into consultation allsections of opinion in this House inconnection with any schemes of post-warreconstruction which may be in thecourse of consideration; and what stepshe proposes to take to that end?

Mr. Greenwood: The Prime Min-ister has stated that in dealing withproblems of reconstruction it is the de-sire of the Government to frame schemeswhich will command the support of thenation as a whole. These schemes willbe submitted in due course to the judg-ment of Parliament. The group ofMinisters of which I am Chairmanrepresents different points of view. Itis my intention to take into full accountall expressions of responsible opinion.

February 19.Oral Answers ('3:5 columns).

FOOD SUPPLIESREINFORCED BREAD

MiT. Stokes asked the Lord Privy

298.

Seal whether the report of the ScientificFood Committee supporting the syntheti-cally reinforced loaf was unanimous; and,if not, which members of that committeediffered from the majority?

Mr. Attlee: It is contrary to accept-ed practice to give information in answerto Questions of this kind, and I amnot prepared to make an exception inthis case.

Mr. Stokes: Will the Lord PrivySeal consider publishing the report, inview of the muddle which has beencreated, and the fact that the policy ofthe Government is now only a half-measure?

Mr. Attlee: I cannot accept the hon.Member's statement. I think the muddleis in his own mind.

Mr. Logan: Would the right hon.Gentleman arrange for bread to be takenout of sausages?

INTERNATIONAL EXCHANGES.

Mr. Stokes asked the Chancellor ofthe Exchequer whether he will give anassurance that no undertaking with regardto the restoration of the internationalexchanges on a pre-war basis will begiven to the Government of the UnitedStates of America without first consultingthis House? .. :

Captain Crookshank: No questionof such an undertaking has arisen, andI am not prepared to give an assurancerelating to a hypothetical, but vague,contingency.

Mr. Stokes: Has the attention of theFinancial Secretary been called to state-ments in prominent financial newspapers,that an undertaking of this kind has beengiven? Will he give an assurance thatthat is not correct?

Captain Crookshank: I am notresponsible for what is in the newspapers.I have stated categorically, on behalf ofmy right hon. Friend, that no such under-taking has been given.

SUPPLY: COMMITTEE-COAL INDUSTRY

(85 columns).Mr. T. Smith (Normanton): .. The

first thing we have to do is to win thewar. I am far from being a prophet,but unless the problem of transport istackled, I am sure we shall have a worseposition next winter than we have now.As a proof of that statement, let me saythat we are at the present time consumingin this country 10 per cent. more coal

than we are producing. We have beendrawing on stocks. Unless the transportproblem is remedied, there will be thepossibility of a coal famine next winter.There is also an industrial side to thematter. In certain counties where in-dustries have grown, as my hon. Friendthe Member for Ince (Mr. G. Mac-Donald) knows, it has been a questionnot merely of a shortage of householdcoal but a shortage of industrial coal.The South Yorkshire coal owners are inthe position that they cannot producethe requisite amount of coal for muni-tions work. The position is serious, andit must be tackled.

Let me say quite sincerely, that Iknow the position is not quite as badnow as it was last winter. This is due,first, to the fact that we have had a lesssevere winter, and secondly, to the factthat my hon. Friend the Secretary forMines succeeded in getting large quan-tities of coal stored in various parts ofthe country .. .In addition, many house-holders responded to the appeal to stocktheir cellars. These stocks, both indumps and in cellars, were not bigenough .... Let it not be forgotten that

. there are thousands of people who wouldbe only too glad and willing to put coalinto their cellars if they had room andif they had enough money to buy thecoal.....

Mr. Grenfell: .... Hon. Membersfrom all the coalfields, and particularlyfrom Durham and South Wales-fromLancashire, too; but the problem is farmore serious numerically in Durham andin South Wales-have asked whetherI am satisfied that I have the powersrequired to prevent pits from closing.The general answer that I would giveis this. We have been unable to getsufficient clearance for all pits; and manyhave closed down for want of trade andfor financial reasons. If orders andtransport are available, we shall call forpowers to keep sufficient pits in pro-duction for all the coal we require.

Mr. Sloan (Ayrshire, South): Afterthe pits have closed?

Mil' Grenfell: We are doing all wecan to prevent pits from closing.

Mr. Tinker (Leigh): Let us getthis clear. My hon. Friend said, "Afterthe pits have closed." I take it thatthe Secretary for Mines means that hewill, definitely, take such powers beforethe pits have closed?

Mr. Grenfell: A large number ofpits have already closed.

Mr. Tinker: I know that pits have

Saturday, March 1, 1941. THE SOCIAL CREDJeTER Page 11

had to close; but if the Minister is" natisfied that pits ought to keep in pro-\,JJuction, will he take steps to see that

they do so?Mr. Grenfell: Let me put it like

this. If we require pits to fulfil thepart allocated to the mining industry inthe national effort, I shall take powerto see that they fulfil that part.

Sir Geoffrey Ellis (Sheffield, Ec-clesall) : Presumably my hon. Friendwill take financial responsibility where apit is unable to go on working econ-.omically?

Mr. Grenfell: Yes; if we want coalwe must take that responsibility. . ....

We have still millions of tons ofcoal in stock, and there will be manymore million tons of Government stockbefore the coming summer is out, if wecan manage it. That is the reserve uponwhich we will hope to draw, but weshall not discourage the private userwho can stock.

Mr. Evans: .... After all, there iscoal in abundance which we can pro-duce, and, despite what the hon.Gentleman said about shortage oflabour, there are thousands of menavailable and anxious to produce coal.For that reason I do not think the hon.

VGentleman is exercising. such authorityas he has over other Departments.It is not a new question at all. The

Government have had plenty of noticeof this. It is exactly 12 months to theday-Wednesday, 21st February-thatthere took place a very interesting dis-cussion on the shortage of coal at thattime, and the same questions were askedas have been asked to-day. . . . . Twelvemonths ago the defence put up by theGovernment was "The weather is sobad that it has increased the demandfor coal and made it difficult to produceit or to move it." The Governmenthave not that defence this year. Theymay have it very early, because thewinter is not over yet, and the troubleis that, despite the comparatively mildweather we have had, there are stillthese complaints of the shortage of coal.

What defence has been put up?None so far. We have heard the samething. The hon. Gentleman says thereis a shortage of wagons. I travel toSouth Wales every week-end and backon Monday. There are miles of sidingsoccupied by empty wagons. What isthe good, of talking of shortage ofwagons if you see that confronting youevery week? ....

We are told that the civilian pop-ulation is in the front line of the war.The War Office, the Admiralty, the AirMinistry and the Home Office say it.When you are relying upon the courageand endurance of the civilian population,

why should you :deprive them of acomfort which you have in plenty butwhich you will not take the trouble todistribute? It is a very serious matter,not only from the point of view ofdomestic consumers, but of industry andof the public utility services. . ...

W ARBURG: BERLIN, 1934.Max Warburg's fears for his safety

in the Berlin of August, 1934, arerepresented curiously by the lateAmbassador Dodd in the instalment ofhis diary now being published by theSunday Dispatch. "The eminent Ham-burg banker and brother .of FelixWarburg, of New York" was not,apparently, afraid of sharing the fateof fellow Jews as a 'jew; but "he showedthe effects of his troubled life the lastyear and now stands in danger of losinghis life if he ever allows his opinionsto become known to authorities here."Says the diarist: -"I was glad to speakfrankly with such a, man." ....

"Warburg suggested that one manliving quietly in Berlin might do morewith the German Government thanMcDonald, and I agree with him."(McDonald was League High Commis-sioner for German Refugees, and isaccused of having shown "so much self-esteem.")

DIARY O,F EVENTSFEB. 19-Ministry of Home Security stated that 1,502

civilians were killed by air raids in 'january.Proposed orders for the registration - 01'- men- andwomen, and of undertakings engaged on essentialwork, approved by Joint Consultative Committeeof Ministry of Labour.

FEB; 20-Australian Troops arrived Singapore.FEB. 21-Mr Menzies, Prime Minister of Australia, arrived

in England; Mr. Eden, Foreign Secretary, and SirJohn Dill, Chief of the Imperial General Stafl,

~. arrived in Egypt.Swansea bombed last night.

FEB. 22-Germans have been preparing openly to invadeBulgaria. R.A.F. raided Sicily. Swansea againbombed.Mr. Eden conferred with General Catroux, FreeFrench Leader in the Middle East.Mr. Harry Hopkins appointed member of newProduction Planning Board in U.S.A. which will\J) advise Defence Commission on industrial planning.

FEll. 23-Swansea again bombed.Day-time air-fight over the Channel.

In a speech to Rome branch of Fascist PartyMussolini admitted loss of one-tenth of army, one-fi{th- of- airmen.

FEB. 24-R.A.F. attacked invasion ports.Conscription of women held up, T.U.C. andemployers promised to find war workers to replacemen called up.Sir Walter Citrine, back from U.S.A .., said: "Thepeople in authority in the U.S.A. know that, withthe best will in the world, it will take to themiddle or end of 1942 before American planeproduction can reach its peak."Hitler, in a speech at Munich, said: "BasicallyNational Socialism and Marxism are the same."

FEB. 25-Allied forces have continued advance in Eritrea,Abyssinia and Somaliland.Admiral Darlan has formed a 'cabinet: AdmiralDarlan as Vice-Premier, Foreign 'Minister, Min-ister of the Interior, Minister of the Navy; GeneralHunrziger, M. Barthelemy, M. Bothillier and M.Caziot as Ministers of Defence, Justice, Financeand Agriculture respectively.

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Page. 12 THE SOCIAL CJ~.EDITER Saturday, March 1, 194L~ . - . .

ANNOUNCEMENTSBooks to Read

ANI) MEETINGS

Will advertisers please note thatthe latest time for accepting copyfor this column is 12 noon Monday

.for Saturday's issue.

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 Association: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. En;quiries to R. J. Northin, 11, Centre Street,Bradford.

DERBY and Di.trict-THE SOCIALCREDITER is obtainable from Morley's,Newsagents and Tobacconists, MarketHall.

LIVERPOOL Social Credit Association:Meets regularly on the first and third Sun-days in the month. Time 2-30 p.m. En-quiries to Wayertree 435.-----------------------------------LONDON LIAISON GROUP.Lunch-hour reunion on the first and thirdThursday in each month at 12-30, at thePlane Tree, Great Russell Street. Nextreunion on March 6.Enquiries to Mrs. PaImer, 35, BirchwoodAvenue, Sidcup, Kent.

NEWCASTLE and GATESHEAD SocialCredit Association. It is important thatall Social Crediters on Tyneside should main-tain contact. Write Hon. Secretary, R.Thomson, 108 Wordsworth Street, Gates-head.

PORTSMOUTH D.S.C. Group:Enquiries to 115, Essex Road, Milton; or50, Ripley Grove, Copnor.

SOUTHAMPTON Group: Secretary C.Daish, 19, Coniston Road, Redbridge,Southampton,

The Social CrediterIf you are not a subscriber to THESOCIAL CREDITER, send this orderwithout delay.K.R.P. Publications Ltd.,12, Lord Street, Liverpool, 2.

Please send THE SOCIALCREDITER to me

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F9r Twelve Months-I enclose 30/-" .Six " ,,15/-"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.

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Address ..(Cheques and Postal Orders should becrossed and made payable to the SOCIALCREDIT EXPANSION FuND.)

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Address .•••••.••••••.•••••••••••....•••..•.••••••••..•.......................................TO THE DIRECTOR OF REVENUE,THE SOCIAL CREDIT SECRETARIAT,12, LORD STREET, LIVERPOOL, a

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 the Social Credit Secretariat.

Signature : .I herewith enclose the awn of £

the above mentioned funds.

Signature .(Cheques and Postal Orders should be crossed and made payable to the socisr,CREDIT SECRETARIAT.)

300

, as a donation ·towards

By C. H. Douglas:-Economic Democracy .

. (edition exhausted)Social Credit .

(temporarily unobtainable)Credit Power and Democracy 3/6The Monopoly of Credit .

(temporarily unobtainable)Warning 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 !d.

.and"This 'American' Business" 3d. each

12 for 2/-

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

ALSOThe Douglas Manual ..

(edition exhausted)The Economic Crisis:Southampton Chamber ofCommerce Report .

(temporarily unobtainable)The Bankers of Londonby Percy Arnold 4/6Economics for Everybodyby Elles Dee " 3d.The Power of Moneyby J. B. Galway 3d.The Purpose of Politicsby H. E 3d.Tax-Bonds or Bondage and theAnswer to Federal Unionby John Mitchell ... 1/ - (postage 2!d.)Barrier to Healthby Dr. Douglas Boyd............ 6d.

LeafletsInvincible Britainby John Mitchell ......... 2d. each,

1/6 doz.What we are aboutby H. E _ 50 for 1/6Hitler and Churchill Financeby John Mitchell ......... 50 for 1/9Bomb Hitler!by C. H. Douglas ...... 100 for 1/3

All fromK.R.P. PUBLICATIONS LTD.,

12, LORD STREET, LIVERPOOL, 2.

I

V

BELF AST D.S.C. GROUPGroup Meeting on March 6, 1941.

Subject: Social Credit Abroad.In the Lombard Cafe, Lombard Street, at8 p.m. Correspondence to the Hon Sec.,17 Cregagh Road, Belfast.

Published. by the .proprietors, K.RP. Publicasion••~Ltd., at 12, Lord Street, Liverpool, .2•.. '. ..

Printed by 1. Hayes & Co., Woolton, Liverpool.