The .Social Credit;:r, Saturday, August 26th, 1939.

THE SOCIAL CREDITERFOR POLITICAL AND ECONOMlC REALISM

Vol. 2. No. 24. 3d. Weekly.Registered at G.P.O. as a Newspaper.'Postaae (home and abroad) 0<1. SATURDAY, AUGUST 26th, 1939.

WHOSE SERVICE PERFECTIS FREEDOM (V)By C. H. DOUGLAS

The preoious parts ot this article have appeared in "The Social Crediter" ot June 3rd and 10th, July 22ndand August 19th) Vol. II, numbers 12, 13, 19 and 23.

It is quite possible that the trans-lation into English and the vernacular inother countries, of the collection ofdocuments known as the Old Testament,is one of the major calamities which havebeen inflicted upon mankind.

As I have suggested elsewhere, thereis a legend, by no means improbable inits nature, that part, at any rate, of theOld Testament, contained a cypher, andthat the cypher was the real justificationfor the preservation of these documents,in their original languages. Colour islent to this theory by the oppositionoffered by the priesthood to translation,and the vague warnings of the dangersand disasters which would be the resultof any such translation. ("The letterkilleth but the spirit maketh alive").The veneration which may, for all Iknow, be due to the information contain-ed in this hypothetical cypher has,however, been attached to a documentwhich, in its translated form, deals withthe relation between an unattractivetribal god, and a definitely repellent andtreacherous tribe of Asiatics. For

,. /

Central Mortgage Bankof Canada

by L. D. ByrneWar!

by A. O. CooperBankers' Ultimatum to

Montreal

On Other Pages

Mrs. Palmer's Page"Ham and Eggs"

"The Press"

reasons which are not very obvious, thetribal God appears to have taken a greatdeal of trouble with them, and wherethe results of such distinguished effortwere so disheartening, it appears to meto be presumptuous to suppose, as it isthe fashion in certain circles to supposein present, that we in England can domuch better. I raise this particularaspect of the Jewish problem because ithas become clear to me that thedifficulties which confront the world'smiserable struggles towards sanity, arenot in the main intellectual difficulties;they are almost wholly problems ofde-hypnotisation, and not the least ofthese is to undo the effects of "Scripturelessons" pumped into immature mindsat school and elsewhere. Just so longas we allow ourselves to be obsessed bythe ideals conveyed in the exotericversion of the Jewish Scriptures, we arein the state of mind which ultimatelymakes the rule of the Jew at onceinevitable, and intolerable. And solong as the Jew is obsessed with the ideathat it does not matter how he behaves,he is one of the race chosen to rule theearth, he will be persecuted, hated, and,if he persists, ultimately destroyed.

No greater service can be renderedto the Jewish race than to treat the OldTestament, as we know it, as the verypatchy literature which it is, containing,rather than a pattern for imitation or acase for blind veneration, a distinctwarning that over the whole periodcovered by its chronology, the peopleswith whom it deals failed to pay anyattention to the justifiable criticismwhich a few of their more common-sense members, the prophets, directedagainst their general behaviour, and aretherefore still less likely to be suitableleaders for the rest of the world.

It is frequently objected that thesins of the financial system are blamed

upon the Jews exclusively, whereas it isa matter of common observation thatmany of the world's largest bankers are,at any rate, so far as can be seen, non-Jewish, not merely in name, but in fact.This is true but it raises the curiousproblems as to the nature of the relation-ship between Judaism and Puritan-Calvinistic- Whigism. It was theCalvinist Whigs associated withCromwell who brought the Jews back toEngland, in the main supported andprofited by the industrial revolution withits horror of child labour and generaldegradation. The textbook of Crom-well's army and its authority for vandal-ism and cruelty, was the Old Testament.The Communist-Quaker-Whig junta ofthe Cromwellian Stanley Baldwin, withthe Calvinist Archbishop of Canterbury,played a typical part in the constitutionalcrisis which resented criticism ofindustrial policy and asserted un-mistakably the supremacy of finance.It was Lutheran Prussia with Jews inkey positions which first plunged Europeinto war and then wrecked Germany.

It would be difficult to over-ratethe importance of these matters tohumanity at large. But to the Britishtheir significance is decisive. At theconclusion of the European War in 1918,an unfettered Britain guided bycompetent statesmanship could notmerely have secured these islands andtheir population from further risk of warbut could have guided the rest of theworld into the paths of economic plentyand political and international peace.Mr. Otto Kuhn or Cohen of Messrs.Kuhn, Loeb and Co., the Jewish bankers,speaking at Ottawa in 1923 said, "Therewas a short period after the war whenwe were very anxious. But we now

. have the situation well in hand." Theyhad. ..

The post war period was for

Page 2 THE SOCIAL CREDITER

England the period of the unquestionedsupremacy of American Jewish Finance.Mr. Montagu Norman, an obscuremember of the London branch of anAmerican banking firm became perm-anent Governor of the so-called Bank ofEngland (i.e., the private bank whichcontrols British Public Credit), and theUnited States sent over an official to"advise" him. When Mr. Stanley:Baldwin's mission crossed to the UnitedStates to discuss the American Debt, Mr.Norman went with it, the missionreturned in almost indecent haste with a"Debt Settlement" of which Mr. BonarLaw, the Prime Minister, is reported tohave said, "If I sign this I shall becursed for generations." From the timeof the signature of this agreement, asMr. John Gunther has pointed out, Mr.Montagu Norman pursued a ForeignPolicy with the aid of British creditwhich was independent of and inopposition to that of the Foreign Office.

In 1928, Mr. Baldwin, having since.become Prime Minister himself, hurriedthrough an Act of Parliament handingthe Note Issue over to the sole control.of the "Bank of England." In thisconnection it is interesting to recall thecircular letter sent to the AmericanCountry Banks after the American CivilWar:-

"It is advisable to do all in yourpower to sustain such prominent dailyand weekly newspapers, especially theagricultural and religious Press, as willoppose the issuing of greenback papermoney, and that you also witholdpatronage or favours from all applicantswho are not willing to oppose theGovernment issue of money. Let theGovernment issue the coin and the banksissue the paper money of the country, forthen we can better protect each other.

"To repeal the law enacting nationalbank notes, or to restore to circulationthe Government issue of money, will beto provide the people with money, andtherefore seriously effect your individualprofits as bankers and lenders."

The {oint management of the affairsof Great Britain on the political andfinancial sides by the persons in whosehands it was placed, resulted in theimposition of the highest taxation in theworld, the rise of the suicide rate tomore than double the highest previousknown rate, the destruction of BritishAgriculture, the devastation of rheEnglish countryside, the wreck of Scot-land and the sabotage of British military,naval and air force strength. WhenMr. Stanley Baldwin retired and becameEarl Baldwin and the administrator. of a

fund of £250,000 "for bettering Anglo-American relations", Mr. Chamberlainwho succeeded him was faced with aGermany built up in record time to thevirtual dictatorship of Europe by meansof loans sponsored by the "Bank ofEngland" and a country so weakenedand disintegrated both in morale andmaterial by mismanagement that hisonly and proper policy in the circum-stances was, for the time "peace at anyprice" -a policy which the Whigs, whowith their banker friends had beenprimarily concerned in producing thecrisis, once again did their best towreck.

There is an ugly story of a bulletinsent out from an official British sourceon the fateful Tuesday of the MunichCrisis which, had it not been interceptedby the energy of Mr. Chamberlain

personally, would have plunged Europeinto war and enthroned Wall Street asthe permanent centre of worldGovernment. But none of the actorsin this tragedy receives suitable treat-ment from the public.

As these lines are written I havejust read in my newspaper "The keynoteof the next elections will be 'sacrifice'.It is quite a mistake to suppose that thisis an unpopular cry. In 1931, etc."

Well, as a famous German saidbefore the last war, "We Germans willnever be gentlemen and you English willalways be fools."

(To be continued).(All rights reserved)

STUDY COURSE INSOCIAL CREDIT

There are two courses in social credit which are open to thosewho wish to make a special study of the subject. The courses areapproved by Major C. H. Douglas.

(1) COURSE AThis is the less advanced course, and will be instructive thoughnot compulsory for those who wish to qualify by examinationfor admission as Associate of the Social Credit Secretariat.Course A may be taken in two ways.

Eitherby correspondence (twenty postal communications for whichthe fee is £1/0/0 plus postage 2/6 at home, or 3/6 abroad).

Orby lecture (twenty lecture periods for which the fee is £1/10/0).Centres of instruction have been widely established and willbe increased wherever there is a demand.The examination fee for Associate Membership of theSecretariat is 10/6.The course will begin in September next and the examinationwill be held in March, 1940.

(2) COURSE BThis is the advanced course and no fee is charged, but a feeof 10/6 will be charged on entry for the examination.Successful candidates will receive the Diploma of Fellowshipof the Secretariat.

Calendar and prospectus are now available (3d.)

. Further information may be had from-THE ASSISTANT DIRECTOR,

LECTURES AND STUDIES SECTION,SOCIAL CREDIT SECRETARIAT,

12, LORD STREET, LIVERPOOL, 2.

\

THE SOCIAL CREDITER Page 3

.j-,

.)ODiD, JOTTINGS FROM J. S.

A "Bobby" chatting in Bloomsburythe other day denied that the police areworried about the Irish, but said thatthe Jews are causing them a lot ofanxiety,-"and the working classes aregetting wise to the danger. There arefrequent anti -Jew fights in the EastEnd. They aren't reported in the paper,of course, but they are getting bad. Wethink there will be a revolution. Itcan't go on. It will be either a revolu-tion or war."

• • •Two days later another London

policeman volunteered the news thatalmost every day there are cases ofEast End Synagogues being defiled bypigsheads being thrown in.

• • •Revolution is a harsh term, and it

may, or may not, be coming; but wherethere's smoke there's fire.

• • •

.)Old Marte has just returned to the

Rhein village where she was born 82years ago, after having lived in Kharkow,Russia, for the last 50 years. She isa simple, uninstructed peasant, but wisein her experiences. For 35 years shewas nurse to two generations of a richEnglish family in Kharkow: saw themdisposessed in the revolution, andhunted out of Russia in poverty. For20 years more she stayed behindguarding the family graves fromdesecration, and treasuring a few familybelongings-photos, trinkets, a piece oflace, a baby's shoe, a doll-all the timeat the risk of her life.

The last child she nursed is now agrown man, and it was his fiancee who,a week ago, took Marte first-hand newsof the family. Marte had wonderfultales to tell about them, but of Russianot much. What she did say was,-"You have many Jews in your country?That's bad. When there are manyJews, and they have the money, thenthere is trouble coming. I saw it inRussia in the Czar days. There wereJews everywhere." Marte stroked thebaby's shoe, with a far-away look in hereyes.

• • •J

The papers report that SovietRussia is lending China 700 millionroubles, and that it is the first time thatRussia has appeared as a lending State.., • •

The papers also report that theU.S.A., is buying 2 million dollars worthof silver from the Chinese Government.Thus the U.S.A., and the Soviets arestill marching hand in hand.

• • •Morganthau, the Jew who is

right hand man to Mr. Roosevelt, is inEurope "for a holiday." The answerto that one is "Oh, Yeah!"

According to The United StatesNews, Washington, the World Warmade 3,291 American millionaires.Think that over. How many is thenext making?

• • •Dialogue, Hull Stipendary Court.

Magistrate: "Are you a rich man,Mr. Fountain?"

Mr. Fountain: "I am afraid not,Sir. I have a wife and two children,and they keep one poor."

• • •The Chinese symbol for "Good"

is that of a woman and child.See what a change usury ~a~ made.

• • •According to the Daily Telegraph

the Standard Oil Company has obtainedan extensive oil concession in Arabiafrom King Ibn Saud, in spite of theactive efforts of Italy, Germany, andJapan. "The King apparently does nottrust the Axis Powers-all the EuropeanPowers had political motives in seekinga concession, and he preferred to grantthe rights to an American concern as apurely business deal with the UnitedStates, which .had no political design onhis country."

• • •The Daily Express in a leader on

June 21st said: "Wages are a very smallproportion of manufacturing costs." Anencouraging admission.

• • •At the height of the Steel boom in

May, Middlesbrough recorded a recordoutput of iron and steel, and 9,000unemployed. This is due, of course, tothose beastly engineers who spend theirdays trying to save labour.

• • •According to the Daily Express in

July some 1,500 men in Newfoundlandmet a railway gang sent by the Govern-ment to take up the rails of a branch

OAKrailway which is not paying its way.They warned them not to remove therails, and telegraphed the Governor thatserious disturbances would result. TheGovernment accordingly ordered therailwaymen to abandon work.

• • •The Newfoundland War Veterans'

Association recently warned the Gover-nor that if he did not return from hisholidays for the First of July memorialcelebration they would make a formalprotest to the Dominions Office.

He returned.

Books to ReadBy c. H. Douglas:-

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

AlsoThe Douglas Manual 5/-

The Economic Crisis:Southampton Chamber ofCommerce Report 6d.

Alternative to Disasterby L. D. Byrne 4d.

The Bankers of Londonby Percy Arnold 4/6.

Latest PublicationsThe Purpose of Politicsby H. E 3d.

The Power of MoneyCompiled by J. B. Galway 3d.

Also back numbers and bound vol-umes (vol. 2 only) of The Fig Treeat 3/6 and 15/- respectively.

All from

K.R.P. Publications Ltd.,12, Lord Street, Liverpool, 2.

Page 4 THE SOCIAL CREDITER

Mrs. Palmer's PageLORDLY

By D. M. R.Holiday leisure is departed for

another year. As we unpack our bagswe try to comfort ourselves and perhapshypocritically remark that all goodthings come to an end, and in any case,we should not enjoy holidays nearly somuch if we had too many. We stifleour natural honesty with puritanicassertions, knowing that among ourmany desires lies the wish that we mightmore frequently be allowed to consumethe beauties of the earth. Why onlyJuly or August? Must we always missall the loveliness of autumn and springand winter?

How refreshing are these lines uponAristotle:

"Work, he thought, was somethingnot done for its own sake, but as ameans to something else-affluence,or at any rate, subsistence; .recreationwas rest from work, which took theform of play, and issued in therecovery of poise of body and mind,disturbed and unbalanced by work;but leisure was a noble thing, andindeed the noblest thing in life-itwas employment in work desirable forits own sake. The hearing of noblemusic and poetry, intercourse withfriends chosen for their worth, and theexercise of the speculative faculty. Inthis fine sense of the term, we maysay that we live for leisure, that it isthe end of our being, which transcends

RendezvousMrs. Palmer

is at home to friends onWednesday afternoons from3 to 5 p.m.

(other times by appointment).Tea and biscuits 3d.

It is hoped that visitors toLondon will make a point ofcalling at that time.

On Wednesdays August 16,23 and 30, and September 6

Mrs. Hewlett Edwardswill receive visitors. Mrs.Palmer will be away onholiday.

Note the Address:4, Mecklenburgh Street,

London, W.e.l.(first floor bell).

LEISUREwork and far transcends recreation;that it is the growing time of thehuman spirit."

I feel that many of us must heartilyagree with this; "Poise of body and minddisturbed and unbalanced by work-.""You will soon break the bow if youkeep it always stretched." For most ofus there are only two alternatives: towork hard and long at tasks which havevery little real value for us as individualsor to languish underfed, badly housed,and wretchedly devitalised on unemploy-ment pay. We know that in our leisurehours we are pleasant beings, able to usea sense of proportion and justice whichis often lost under the pressure ofsecuring a 'living'. We think moreclearly, and those activities in which wechoose to engage are conducted withcare and enthusiasm. We know thatwith more leisure, always provided it isadequately financed, we would make avery much better job of our lives, yetthere is a section of opinion whichinsists that the end of man is labourand unless a man work neither shall heeat. This long encouraged attitude isresponsible very largely for all the majordifficulties in which we find ourselvesto-day. It is responsible for war, forthe production of 'C3' people, and forthe aoparent incbility of all governmentsto solve the outstanding problems oftheir countries.

War is contemplated not as a meansfor preserving a race's peculiar character-istics and culture, but to establishartificial markets for wealth which eachcountrv is disabled from enjoying:neople are "C3" not because of 2.

nhvsical scarcety of things necessary forthe maintenance of health nor becauseof apathy but because they are notsupplied with buying power; crimeincreases. discontent ravages, notbecause we are born wicked but becauseof the general nervousness, instability»nd frustration nermearinz society. Thework bozev is the nowerfnl deterrent tohannv development. A~ Major Douglassays:-

"The best brains of this andevery other country in the industrialand scientific field are-c-endeavourinzto nut the world out of work, tocreate what is miscalled an unemnlov-ment problem. but what shouldproperly be called a condition of

leisure."That this condition of leisure is

fully recognised is obvious from themany literary excursions into fancywhich are made by leading writersto-day, most of whom, like Aldous S.Huxley, visualised this condition ofleisure as something to be canalised,organised to the last moment. In hisproposals if he were dictator, Huxleysays "From being an unattainable idealit (leisure) will become a practicalproblem; from a rare luxury to besquandered in hectic enjoyment and usedmerely for rest as a restorative beforetaking up the grind again, it will takethe character of a major part of life tobe used and lived in its own way."

He continues by stating how hewould organise for adult leisure, regard-ing leisure as a menace rather than anew condition which, given theopportunity and means, we as adultswould perfectly well be able to deal withourselves. Huxley gives us his policyfor leisure before we have assented to a "'i_policy of leisure. Remove the policyof work enslavement and replace it by apolicy of leisure and liberty and theengineers and scientists will soonestablish their ability to give us themeans of supporting life in abundancewith the minimum of difficulty. Butthe policy is ours to decide and if werefuse to make the decision it willalways, as now, be made for us by thosewho know what they want and aredetermined to get it.

"Practically all advance in theworld's history can be traced to acondition of leisure, however thatleisure was obtained." (My emphasis).

We know that it was obtained eitherby the advantages wrested from thedeliberate maintenance of a slave class,or, at the other extreme, the sacrifice ofall the amenities of living. To-day theperversion of the leisure issuing from thenew slavery-machinery and power--isworking in opposition to the realisationof the happiness which human beings

The NEW ERAAustralia's Social Credit Weekly

24 Pages, Illustrated. 12 months, 12s. V.

The New Era, Radio House, ~

232 Castlereagh Street, Sydney, Australia.

THE SOCIAL CREDITER

EGGS""might choose. When we establishlordly leisure, endowed with security andabundance and individual freedom, theproblems inherent in the present worksystem will disappear naturally andwithout disruption.

But we are poor mortals if we candream dreams and see visions and yetremain inactive. If we will be realistsand, recognising an opposition, steelourselves to breaking every thread of therestricting net as it becomes obvious,however thin a thread it might be, wewill attain the leisure which will give usall the "growing time" we so much needin the rich garden we have inherited.

D.M.R

LEISURE SPONGETake a very lovely morning in

September when the lawn has just beenmown and the borders are rich with theearly autumn flowers. Beat into abasin a quarter pound of fresh Englishbutter to a rich cream. Add to this theslightly beaten yolks of four fresh eggs.Take a second basin, into which youhave dropped the egg whites, into thegarden and for as long as you feel in-clined or until they are stiff, beat thesunshine into the whites adding atablespoonful of cool, but boiled water.Add to the butter quarter pound of finelysifted flour, freshly bought and self-raising, and lastly beat in the stiffenedwhites.

Pour the mixture, which should bethick enough to spread to the side leavingit thin in the centre, into a 12 inchsandwich tin and bake in a hot ovenuntil pale brown and resilient to thepressure of one finger.

As soon as the sponge is coolenough split across and fill with freshcream beaten together with home-maderaspberry jam. Telephone your husbandto take the afternoon off and serve withtea in the prettiest corner of the garden.If you have any children under eighteenmake three cakes.

D.M.R

KIND HEARTLady Baldwin prays for the Duke

of Windsor every night, according to aninterview published in the New YorkWorld Telegram to-day.

She is quoted as saying: "TheDuke had charm, very great charm. Ipray for him every night."

-Daily Mirror, August 17th.

ANDBy R. L. N.

(The American journal "National Ham and Eggs" advocates theRetirement Lite Payments Act).

"HAM

The Californian Retirement LifePayments Act has once more broughtinto prominence Gesell's idea of adepreciating currency. It is not pro-posed here to discuss the chances for oragainst the "Ham and Eggs" Act frombecoming law, but rather, since there isa distinct possibility of its adoption, toconsider its economic effects upon theState.

The Act proposes to pay $30 perweek to all Californians who are notgainfully employed and are over the ageof 50; this pension will be paid in $1,$5, and $10 warrants issued by the Stateand are legal tender for all obligationsdue to the State, provided that they areproperly stamped. A 2-cent stampmust be affixed each week to the back ofthe $1 warrants, and bills of higherdenominations must be stamped pro rata.When the warrant has been outstandinga year, and thus bears stamps to thevalue of $1.04 for every $1 of its facevalue, the warrant is to be exchanged for"lawful money of the United States."

With an emission of $100 of suchcurrency per week, there will De' $2,548outstanding at the end of a year, $2,652having been withdrawn through thepurchase of stamps. (The peak isreached in the 50th week at $2,550).Each week thereafter, while $100continues to be issued, $104 is collectedfor stamps, so that the amount out-standing is steadily reduced by about 8per cent. per annum for administrationexpenses.

The Act has other provisions thatneed not be considered in this briefsurvey: for example, an additionalIncome Tax of 3 per cent. on incomesabove $3,000 appears to be designed tocause wealthier members of thecommunity to accept the warrants, asthey could be used in payment of thetax. Business transacted in thewarrants is exempted from 3 per cent.Sales Tax, 3 per cent. Use Tax and allIncome Tax; the saving in relief pay-ments is expected to go far towardsmaking up the missing revenue.

Supposing that means are found toadopt these proposals and give them afair trial, a number of interestingreactions are probable. A rise in theprices of consumable goods is certain,though the rise will not be in proportionto the amount of new money issued as

the present unpurchasable surplus ofgoods will operate to depress prices."Lawful money of the United States"will tend to disappear, and may evenchange hands at a premium in terms ofpension money, since all saving will bedone in lawful money which will also berequired for purchases outside the State.

Although the emission will reach itspeak in the 50th week, the sponsors ofthe scheme have declared their intentionof increasing the amount of the individualpension if prices rise-a course which.can hardly fail to raise prices stillfurther. However, if the revolving fundis held at a fixed amount and conditionsstabilise themselves, it is easy to see thatthe recipients of the pensions gain themat the expense of the users of the taxedcurrency-s-in practise, the entire body ofconsumers, the recipients themselvesincluded. The flaw in the price system;and the consequent shortage of purchas-ing power, remains uncorrected. Theflaw will be affected only during the firstyear, when the volume of money is beingrapidly increased, but at an arbitraryrate which no steps have been taken torelate to the deficiency of purchasingpower.

The general inconvenience of"depreciating money" and the imposingof spending upon the community (thustampering with the freedom of the"money vote") will not require pointingout. Some observers attribute "Ham andEggs" to the machinations of highfinance, anxious to focus popular' dis-content on a demand that will finallydiscredit monetary reform, but it hardlyseems necessary to go as far for anexplanation. It is merely one moreexample of the folly of a democraticdemand for methods instead of solely in:results; if the electors of Californiawould demand only "30 a week pension,with no increase in taxation or the costof living," they might yet make history.As things are, they are only makingtrouble.

PORTRAIT OFMAJOR DOUGLAS

Our readers will be interested tolearn that the portrait of Major C. H.Douglas by Augustus John, RA., will beon exhibition for some months at theWalker Art Gallery, Liverpool.

Page 6 THE SOCIAL CREDITER

THE SOCIAL CREDITERThis journal expresses and supports the policy of theSocial Credit Secretariat, which is a non-party, non-classorganisation neither connected with nor supporting anypolitical party, Social Credit or otherwise.

SUBSCRIPTION RATES:Home and abroad, post free: One year 15s.; Six months 7s. 6d.;

Three months 3s. 9d.VOL. 2. No. 24.SATURDAY, AUGUST 26th, 1939.

12, LORD STREET,LIVERPOOL, 2.

THEA typical instance of old-style

political organisation is the LabourParty.

In its early days, the Labour Partyhad an objective, namely representationin Parliament of the working classes.This more or less concrete crystalizationof the notion of policy-representation (orpolitical representation) was good in thatit was concrete; bad in that the object-ive was not necessarily a means to thedesired end. Labour M.P.'s haveprobably spent much more time inexplaining why their constituents couldn'tget what they wanted than in gettingwhat they wanted for them. OtherM.P.'s are no better.

These relatively true statements areapt to annoy party adherents instead ofeliciting the common-sense reaction: "ByJove, no; we haven't got what we want,have we? And we're not getting iteither. We must do something aboutit!" This is not because Englishmen arenot at heart sensible men. It is ratherbecause it is someone's conscious policynot to let Englishmen get what theywant, and this policy, which is, un-fortunately, the over-riding policy, isbetter equipped to overcome thedifficulties in its way than is the common-sense Englishman.

The major items of this superiorequipment are, I should say, considerablefamiliarity with the sphere of operations,definiteness in regard to the main out-lines of the real objective, and the trapsfor the unwary which lie hiddenunderneath the orderly surface of theCommittee Method. It helps, althoughit is not part of the war-like equipment,that more force is required to setanything moving than to keep it movingonce a start has been made. There isreally no question of superior power.The boasted, and feared, power ofFinance is completely illusory; although

PRESSmuch that is said about it might bejustly attributed if its name werechanged to 'the power of illusion.'

The effectiveness of the organisa-tion (i.e., its effectiveness to do what itdoes, not its effectiveness to do whatpeople think it does or what its support-ers really wish it would do) seems toarise from certain stereotyped activities:speeches, articles, stunts. These insensib-ly alter the direction of the expressedpolicy of the followers, while at the sametime generating the 'steam' required tokeep the thing going.

Many friends of the social creditmovement are fond of telling )1& aboutthese things. They wish the socialcredit movement to be effective; this ishow the Labour Party has become'effective'; these are the means it hasemployed; and therefore - The shortanswer is that all that is not what weare after; while we quite agree that ifwe employ the same or similar means itis probably what we shall get.

At the same time social creditershave undeniably made speeches, andsome have even felt hurt at Douglas'ssuggestion that it. is quite easy to attachfar too great importance to speeches,and even to writing. Notwithstandingthe warning, social crediters, ourselvesamong them, still write articles and growanxious over the circulation figures ofnewspapers; while, if we do not, theopposition as familiarly refers to our'stunts' as to their own. We seem tohave still far to go before the 'new-style'political organisation is fully distinguish-able from the old. As Lecky remarked,"It is only by a very slow process thatthe human mind can emerge from asystem of error."

Fortunately, we are not trying toliberate 'the human mind' from a'system of error.' What we are tryingto do is to secure the exemption of our-

selves from the ejiects of a 'system oferror.' The belief that other folk wouldlike to be relieved of similar burdens hasmuch to be said for it, and if truepromises at least some moderation ofthe opposition to the attainment of ourown goal. But it is a ticklish business.

"For some years now," wroteHenry Ford, "I have been working outa system of education to the end ofhaving pupils use their eyes really to seewith, so that their brains may make useof what they see and thus give theopportunity for thinking from thingsinstead of from words. This, it seemsto me, will shorten the processes ofthought." Quite so. We have beendoing the same. The processes of.thought are much too long. Civilization,if we are not careful, will be dead andgone before the processes of thoughtnecessary for its salvation are completed!

Yet, with all due appreciation of thegreat practical ability of Mr. Ford, eventhe intangible elements which go to theproduction of a cheap and reliable motorcar are more familiar than the tangibleelements which will make up a successfulonslaught upon the 'system of error'embodied in the financial system.Ford's workmen did not answer backthat 'complete interchangeability ofparts' was something which could onlybe secured in very small quantitiesbecause it all had to be 'backed by gold.'But our public does answer back thatexchange of available commoditiesis something only attainable toa very limited extent because there is notenough money. An even subtlerdifficulty lies in the fact that whereasMr. Ford's workman was content tostart working with full knowledge thathis share in car-production was a smallone, and that what was happeningelsewhere in the factory was completelyoutside his knowledge, the moderncitizen, whether he reads the Daily Mailor the New Statesmen, is fully convincedthat what is happening in the British.Empire (and elsewhere) is wholly withinhis grasp. It would be no seriousreflection upon the ability of even aneditor (let alone a cabinet minister) tosay, categorically, that it isn't. Thedelusion (for it is a complete delusion)to the contrary is sedulously fosteredbecause it is the chief means ofdevolving responsibility for results uponthe shoulders of those to whom thoseresults are most offensive-the generalpublic. Of every 'well-informed'

(continued on page 11)

\.

THE SOCIAL CREDITER Page 7

CENTRAL MO,RTGAGE BANK OF CANADA(An address given by L. D. BYRNE to a group of business men in Edmonton).

(The [irst part ot this address appeared in "The Social Crediter" of last week.)

The provisions of the Act in regardto new mortgages is most enlighteningand interesting.

The Central Mortgage Bank isauthorized to sell debentures in the openmarket for the purpose of providingmember institutions with funds forinvestment.

The subscribers to these loans will,in the main, be the lending institutions,including banks,-both national andforeign.

Suppose that the Central MortgageBank obtains these funds at 3 per cent.(The rate of interest will be largelydetermined by the banks and lendinginstitutions). Then under the provisionsof the Act the ruling rate of mortgageswill be 5 per cent. and the CentralMortgage Bank will lend the money ithas largely obtained from the banks andlending institutions to its memberlending institutions to loan at a rate of3! per cent.

The lending institution will relendthis under the auspices of the CentralMortgage Bank at 5 per cent. Thus,the lending institutions secure theauthority of the state, the guarantee ofits debts by the nation, a substantialsaving in collection costs and a completedomination of the mortgage debtstructure at the very modest cost of !per cent.

You see, they lend to the CentralMortgage Bank at 3 per cent. Theyborrow [rom the Central Mortgage Bankat 3! per cent. They then lend to thepublic at 5 per cent. Thus, they net4! per cent. with an absolute guaranteein regard to their debts. And by thislittle bit of trickery it is possible for theCentral Mortgage Bank to plead thatthe funds involved being moneys raisedon the national credit of Canada, theterms of the contracts must be rigidlyenforced.

• ••Now I have no doubt whatever that

the enforcement of the Central MortgageBank Act will be rushed, accompaniedby a carefully planned campaign torepresent it as the greatest boon whichhas been conferred upon the West.

Actually, the Act is the most bare-faced piece of financial thuggery which

has been forced through Parliament andclamped down on the nation. It willresult in a complete centralization ofcontrol of all mortgage debts; it infringesthe provincial right of jurisdiction overits citizens' property and civil rights,thereby striking one more blow atprovincial authority and a blow which,in the west where the majority offarmers and home owners are debtors tothe lending institutions, will reduce thelegislative authority of the provinces ina manner that leaves them helpless todeal with their acute economic andfinancial problems. The Act brushesaside the small creditor; virtually putssmall lenders out of the mortgagebusiness; increases the public debt for thebenefit of the lending institutions, placesall the credit and authority of the nationat the disposal of the lending institutionsto safeguard their interests and permitthem to take an ever-increasing [irstcharge on the national wealth. In short,the Central Mortgage Bank Act is theMoneylender's Charter.

So far I have given you 'merelydestructive criticism. And you wouldbe justified in asking-"Well, what couldthe Minister of Finance have done todeal effectively with the debt situation?"

May I draw your attention to anastonishing sequence of events in Parlia-ment leading up to the introduction ofthe Central Mortgage Bank Act. These'give us the key to how the Minister ofFinance could have acted.

For some weeks a terrific battle waswaging, both inside and outsideParliament in connection with theFederal Government Wheat proposals.The 60 cent initial payment minimumguarantee called forth a storm ofprotest-for it would have meant ruinfor the West. About the same time,Mr. Graham Towers was being subjectedto questioning by the Banking andCommerce Committee. With theadroitness of a skilled fencer armed withexpert technical knowledge, he was ableto keep at bay the thrusts of the layquestioners whom he faced. Butoccasionally he was unable to side-steptheir questions-and among other thingshe was forced to admit that Parliamentcould instruct the Bank of Canada tocreate and issue money. Of course he

was opposed to any such procedure.Subsequently, the Government in-

creased the 60 cent initial minimumguarantee to 70 cents under the pressurewhich was brought to bear upon them.In reply to the perfectly reasonable casethat even this was entirely inadequate, itwas pleaded that a more substantialguarantee would be too costly, presum-ably under orthodox financial methodswhich demand that money used by theGovernment must be either borrowed, orelse taxed out of the public.

Now if the farmer received 85 centsa bushel, on the basis of No.1 NorthernHard at the point of purchase-whichwould mean an average for No. 1 of$1.00 FOB Fort William-it would haveinvolved an additional cost to theDominion of possibly $80 million. Thiswould have placed Western agricultureon a paying basis. Farmers wouldhave been able to net a reasonable profit,a portion of which would have gone tomeet their outstanding liabilities in part,some would have been applied to themuch needed re-equipment of homes,machinery and so forth and the balancewould have been expended in directionswhich would have benefitted Easternmanufacturers to a considerable extent.

In order to ensure that the hopelessdebt situation was placed on a footingwhich would enable creditors and debtorsto obtain fair treatment, the provincescould have been approached to agree tosome such arrangement as the limitationof interest to 5 per cent., the cancellationof all accrued interest except in respectof the last two years and repaymentover a period of 20 years. I have ad-hered closely to the provisions in thisregard which were embodied in the Act.The important difference would havebeen that administration of the pre-visions would have been left to provincialDebt Adjustment Boards and the Courts-and would have applied to all debtors

For THE TRUTH IN ALBERTARead "Today and Tomorrow"

Send your sub. to TODAY AND TOMORROWl016-118th Street, Edmonton, Alberta.

Subscriptions $1.50 a year(at the present rate of exchange about 65.)

You can subscribe by International Money:Order, obtainable at any Post Office.

Page 8 THE SOCIAL CREDITER

and creditors. Instead of the monetarybenefits being handed over to a fewlending institutions, they would havebeen given to the farmers, thereby in-creasing their security and freedom.The lending institutions and privatecreditors alike would have benefitted forthe concessions they granted-but theywould have shared the benefits with thenation as a whole.

Why was this not done? TheFederal Government pleaded its inabilityto meet the cost of an adequateguaranteed price for wheat. Theycould not face a possible subsidy of, say,an additional $80 million. Yet on theevidence of the Governor of the Bankof Canada, there was no need to resorteither to taxation or borrowing for thepurpose-particularly when in the mainit would have been used to liquidatedebt. Yet within a few days the samegovernment introduced legislation pro-viding for raising an initial amount of$200 million by borrowing, thus placingthe nation further in debt to its financialinstitutions, for the purpose of protectingthe lending institutions, increasing theircontrol and further reducing the securityand freedom of the farmers and othersinvolved.

Why was this thing done? Wecannot have an understanding of thisunless we know something of the natureof the general situation.

In the first place, the plea underwhich the Central Mortgage Bank Actwas introduced was that something hadto be done to meet the debt situation.Now the debt situation is the result of afinancial system which inevitablyproduces pyramiding debts. This isnot theory. It is fact-and the evidenceis the mounting debt structure of everynation.

The only manner in which to dealwith the debt situation is to deal with thecause from which it has developed.

It is fantastic nonsense to imaginethat a measure like the Central MortgageBank Act which merely increases thepower of the lending institutions isgoing to do anything but intensify thedebt situation.

Permit me to quote from an articleof mine which appeared in the EdmontonBulletin of June 2:

"Debt is an obligation to pay money.And the only manner in which a personcan secure money under the present systemis to exchange his product or services forit. So, in the last resort, debt is anobligation by a debtor to transfer to hiscreditor goods and services of an unspeci-

fied amount to be determined by theamount of money for which they can beexchanged.

"This may appear to be labouring thepoint; but it is not. Its significancebecomes obvious when we realize that theamount of goods and services with whicha debtor has to part is dependent upon theamount of money available to buy thetotal production. Prices, the link betweenmoney and goods, determine the amount ofdebt in terms of goods and services. Ifmoney is scarce and goods are plentiful,prices are low and more goods are requiredto meet a fixed amount of debt, than ifboth money and goods were plentiful andprices were high.

"Strangely enough, under the systemas it operates, the amount of moneyavailable and. the prices of goods is notdependent upon production. Productionand prices are both dependent upon theamount of money. And the moneybusiness, which we must bear in mindshould be essentially a book-keepingsystem, is something apart from the pro-ductive system. In fact, it is not evenunder the control of the people. Thebusiness of manufacturing money andissuing it has become the most lucrativeand powerful business in the world, for itcontrols all activity.

"This becomes apparent when we findthat the money business is under thecontrol of a highly centralized monopoly.The power of this monopoly exists in itsability to increase or decrease the amountof money available at will, and to issuemoney only as a debt which must berepaid. Moreover, the monopolists arenot responsible to any body" for themanner in which they conduct theirbusiness. The truth of these statementsis supported by a mass of incontrovertibleevidence.

"Now the development of the Westwas largely assisted by money lent at highrates of interest by eastern and foreigninstitutions, such as banks, insurancecompanies and other concerns dealing inmoney.

"As a matter of policy, banks havealways maintained money in short supply-for the more scarce money is kept, themore valuable and more influential it willbe.

"When it is realized that the debtsof the West are owed, in the main, toEastern financial institutions, and tosimilar institutions in the United Statesand Great Brtain, it will be obvious thatthe western producer is but a vassal ofthese concerns. He produces to send theproceeds from his work out of theprovince to meet interest charges andpayments of principal. Moreover, theamount of his product with which he hasto part to meet his debt charges is deter-mined by its price; and, in the lastanalysis, the price he gets is determined bythe policy of the financial interests towhom he is in debt.

"From whatever angle the matter isviewed, the West is in vassalage to thesefinancial institutions. And because ofthe location of these institutions outside thewestern provinces) the West derives nobenefit, even in the form of crumbs which

might fall from the table, in return for thewealth which has been poured out to meet \.ithe ever-increasing debt obligations. Howcan these debt obligations do otherwise v .than increase when all money is issued in ~a manner which creates debt and allsaving merely pyramids this debt? Theeffect of such a system on a developingarea must be the progressive rise of debt,and this must constitute an ever-increasing drain on the security of theindividuals living in that area."

"Debt is a mechanism for control--control of the debtor by the creditor. Itis no accident that the outstanding featureof the established financial system is rapid-ly pyramiding debt everywhere. it hasbeen accompanied by a rapid centralizationof effective power in the economic spherein fewer and fewer hands until to-day thebalance of this controlling power is in thehands of two groups of internationalbankers."

You will, I hope, now recognise thepurpose behind the Central MortgageBank Act. It is to centralize control ofthe debt structure under the Bank ofCanada, and to render this controlsuperior to any rights of citizenship orthe authority of provincial governments.The balance of voting power in Parlia-ment being held by the Easternmembers, and this legislation beingmainly concerned with Western debtors,for all practical purposes the controlexercised by the Bank of Canada would "be absolute so far as the West is "'"'concerned. And it is important to thebankers in the present situation that theyshould get this strangle-hold on the West.

The Act is, in particular, directedagainst Alberta, for it provides that theadvantages of this beneficent measureshall not be available to any provincewhere the protective debt legislation willinterfere with the authority of the CentralMortgage Bank and the free operation ofthe scheme in favour of the lendinginstitutions. This is another way ofsaying that the provincial governmentsmust surrender their jurisdiction over theproperty and civil rights of their peoplewho are debtors,-and those are themajority-thus leaving them entirely. tothe mercy, if they have any, of thefinancial institutions.

I hope that every organization inWestern Canada will unite in publicisingthis blatant and iniquituous piece ofbankers' legislation-so that the peoplewill be warned of the wicked plot tofurther enslave them to the MoneyPower. Moreover, its attack onprovincial rights will not be confined tothe West-and for this reason it shouldcall forth equally strong opposition fromthe East. It is impossible to use termsstrong enough to condemn this piece offinancial gangsterism.

THE SOCIAL CREDITER Page 9

War is an art employed by certainpeople to impose their will on others,and the essence of strategy is the cent-ralization of a stronger force or powerwhere the enemy is weakest. Subterfugeis resorted to, and misrepresentation andconcealment of true intention togetherwith accurate timing of an action areother important factors.

The more obscure and camouflagedthe promoters' real objective, the morecertain it is that the means or method'employed will tend to become regardedas an end in itself.

Since no objective other than theobjective of the means has ever yetdisplayed itself-notwithstanding abstractwords-in any of the three methods ofwarfare with which we are most familiarin Great Britain, the administrators ofthe method concentrate on imposingtheir will or policy on their selectedvictims or enemy.

The Military Method.Military war is administered or

rather supposed to be administered-byindividuals called Field Marshals andGenerals, and it differs from theeconomic and political methods, in thenature of the weapons or instrumentsused, the prospective victims and thetreatment of casualities.

The objective is to slaughter,mutilate, or inflict severe physicalsuffering on as many individuals aspossible of the opposing force. Thatis to say to deprive them of their lives.portions of their bodies, or their naturalenjoyment of life. The instrumentsused being aeroplanes and bombs,machine-guns, liquid fire, poison gas andso forth.

Although this method could un-doubtedly be employed, and has beenemployed between two or more mem-bers of a group society, the practice isneither encouraged nor regarded asmoral behaviour because it poaches onthe domains of the economic andpolitical methods, and hence convention-ally it is more or less reserved for thebenefit of international opponents.

Casualities-friend or foe-aretreated with the utmost consideration,their wounds are tended, they areclothed, housed, fed, and generallylooked after as well as circumstancespermit. This paradoxical behaviour,

WAR!By AUSTIN O. COOPER

correctly attributed to the innatedecency of man, automatically ceaseswith the declaration of the more brutalmethod-economic war, which is notwaged by soldiers.

T he Economic MethodTIns, the favourite method, (since

the logical termination of military warwould be the survival of one man) iswaged against internationals and nat-ionals, the latter being regarded as themore dangerous and deadly, especiallythe women and children. Hence theabsolute necessity to reduce them to acondition of utter helplessness beforeengaging the internationals. So success-fully has this been conducted in GreatBritain that over half the population ison or below the poverty Iine.!

Its administrators are individualslabelled Financiers and Bankers who areassisted in the execution of their policyby a most peculiar class of professionalartists called 'Economists' -a worddevoid of all meaning.s

The objective of this method is todeprive as many individuals as, possibleof the necessities of life without causingwholesale death, only distress in'distressed areas'. It is accomplishedby deliberately restricting production,thereby creating an artificial scarcity,and by the simple process of destroyingor sending out of the country such goodsas have been produced.

The weapons or instruments usedare mainly psychological and essentiallythose associated with Black Mazic-s-fearand superstition. Pride of -place isoccupied by a device called money whichis a book-keeping system. although forcirculation purposes a few not alwayshygienic pieces of paper and debasedmetal discs, are used. This thing(money) is, of course; created quitecostlessly by the administrators byadding noughts to figures in books.' Thenumber of noughts bearing an ascertain-able ration to the numher of crosseserected in our cemeteries. This rationbeing useful for 'life' insurance! Thematerial weapons are printing presses,inks of various colours. and pens to makemarks on paper. Keeping the noughtsin short supply, grinding taxation, andother auxiliary schemes, not onlyincreases the numher of crosses, butenslaves those whose lives are not yetcrossed out.

It is against these living casualitiesthat the main attack is concentrated, andagainst whom the policy is-no quarter.The possessed, conscripted by whig andpagan propaganda, and pride of theirown petty successes and chattels, areused as pawns for furthering a relentlesspolicy of persecution against the aged,feeble and helpless dispossessed. De-prived of their means of access to life, themisery and sufferings of the latter canbest be understood when it is remember-ed that their pittances represents lessthan half that doled out to HisMajesty's guests-prison, workhouse andlunatic asylum inmates.

The Political Method.This is waged by the 'rulers', who-

ever they may be, against the ruled.The last battle fought in Englandoccurred shortly before the foundation

1938 --1939

In SeptemberThe Social Crediter

enters upon its secondyear of publication.

TheSocial Crediter

Vol. 3. No. 1. Sept. 16,will be a special number.

Order your extra copies nowfrom-

K, R. P. Publications Ltd.,12, Lord Street,

Liverpool, 2.

Page 10 THE SOCIAL CREDITER

VIEWSof the Bank of England (so-called). Theresult was a 'Government' victory whenthe remains of Charles I, and of dem-ocratic government were alike laid to restin Westminster - although in differentbuildings. The essential strategic differ-ence between this and the militarymethod lies in the fact that whereas theforces of the latter are only fullymobilized when actively engaged on theoffensive, the forces of the latter arealways fully mobilized and only foundon the defensive at election times.

The supposed administrators arecalled Politicians and Cabinet Ministersand the objective is to assist the admin-istrators of economic war. The instru-ments used are called 'Acts ofParliament' which in large measure area collection of ambiguously phrasedsocial prohibitions with financial andother penalties attached, and are aimedat interfering with and curtailing theliberty of the individual. Though notfavoured in its active form political warhas again become fashionable, andfollowing the three hundred year oldprecedent the attack was launchedagainst King and people. In 1936pressure was brought to bear on KingEdward VIII, to compel or force himnot to proceed with his legal intention.He resisted that pressure, changed hisname and domicile-though not theaffection of his peoples-and married thelady he loved.

History does not record if adeclaration of political war is customary,but since we are not at military war, Mr.Chamberlain can be assured that hiscourtesy in informing us that we are not'at peace' has been greatly appreciated.

AUSTIN O. COOPER.NOTES-(l) See Sir John Boyd Orr's

report on nutrition.(2) The word 'economics' has no

accepted definition. In recent years itspolitical significance has been concealed bydropping the older term 'Political Economy.'

Prince P. Kropotkin said: "The mainsubject of social economy, i.e., the economyof energy required for the satisfactionof human needs, is .... the last subject whichone expects to find treated in a concreteform in economical treatises." (1898)

(3) "Banks lend money by creatingcredit, they create the means of payment outof nothing." (Encyclopaedia Britannica).

In the event of war everyone willhave a number: these will be allottedaccording to district of residence. Withthe production of a card all relevant in-formation about a person can be foundfrom the central register.

NEWS ANDGerman-Russian Pact

Announcements from Germany andRussia state that these two countries haveagreed to conclude a pact of non-aggression.

The texts of the statements inBerlin and Moscow were:

BERLIN: The German Governmentand the Government of the SovietUnion have agreed to conclude a Non-Aggression Pact. Herr Von Ribbentrop,the Foreign Minister, will arrive inMoscow on Wednesday to complete thenegotiations.

Moscow: After the conclusion ofthe Soviet-German Trade and CreditAgreement, there arose the problem ofimproving political relations betweenGermany and the U.S.S.R. An exchangeof views on the subject which took placebetween the Governments of Germanyand the U.S.S.R. established that bothparties desired to relieve the tension intheir political relations, eliminate the warmenace and conclude a Non-aggressionPact. Consequently the German Ministerof Foreign Affairs, Von Ribbentrop, willarrive in Moscow in a few." days forcorresponding negotiations.

Negotiations were running con-currently with the Anglo-French-Sovietstaff talks.

• • •August 23rd

The fixed flow of a major cnsrscontinues. Parliament meets on August24th specifically to pass a bill giving thegovernment emergency powers to take"any necessary measures" without delay.A press communique states that certainpersonnel of the Navy, Army, AirForce and Civil Defence are being calledup. This has reached the public andeverywhere there is an atmosphere ofexpectancy and subdued excitement.

Do you remember last year?

Essential exports have been re-stricted: that is to say that exports fromthis country to Germany of substancessuch as rubber, nickel and copper havebeen stopped.

In France it is reported thatimportant military measures are beingtaken including the calling up of thereservists.

In Germany military preparations

are said to be proceeding at great speed:reservists and men who were officers inthe Great War are being called up.

Determination to defend theircountry remains steady with the Poles.

Finally, the effect on the City wasa break in the markets, which laterrecovered. According to The Times,drain on the exchange resources of thiscountry has been nothing like so great asit was this time last year.

• ••A preliminary survey of the results

of any non-aggression pact betweenRussia and Germany suggests that attackon Japan, through the medium ofcommunist China will probably beaccentuated. Japan, of course, isregarded by the United States ofAmerica as a rival in the economicsphere, and a danger because of her'nationalistic' ideology.

• ••Reiugees

The Chancellor of the Exchequerand the Home Secretary have received 'a deputation of M.P.'s representing all \"parties in the House of Commons whourged the need for further financialassistance for refugees from Czecho-Slovakia. The deputation was led by Mr.Amery. A memorandum was submittedto the Ministers suggesting that a gift of£4,000,000 from the British Governmentfor the assistance of Czech refugees wasinadequate to the present need, and thata further sum of £2,000,000 should bemade available.

• ••The boundless charity of the

taxpayer!• • •

The City Editor of the Daily Mail(August 9th, 1939) estimates that £10millions of the £ 16 millions loan to NewZealand has been taken up by the banks.

Glyn, Mills & Co.The Royal Bank of Scotland and

Glyn, Mills & Co., have announced that"arrangements are in the course ofcompletion for the purchase of thecapital of Glyn, Mills & Co., by theRoyal Bank of Scotland."

Glyn, Mills & Co., are bankers to \all the English main line railways andto others of the largest corporations in ,the country.

THE SOCIAL CREDITER Page 11

BANKERS' ULTIJ\tlA TUM MONTREAL"I) The [ollozoing is the text of the letter rejerred to by L. D. B. in his memorandum published in "The Social

Crediter" ot July 29th, 1939.

..)

(Text of letter [rom the Canadianbanks to the Mayor ot Montreal City) aspublished in the "Montreal Daily Star"on Saturday) June 10, 1939).Dear Mr. Mayor,

"We regret that we should be underthe obligation of again stressing theunsatisfactory condition of the City'saccount with the undersigned. When,on the 1st May last, the banks author-ized an additional loan of $3,000,000 totake care of the City's bonds maturingon that date, it was on the understandingthat within a period of thirty daysdefinite evidence would be forthcomingthat steps were being taken to rehabili-tate the credit and financial standing ofthe City. The various meetings heldsince then have not produced a conclus-ive solution or a constructive policy thatwould warrant the banks in furtherextending the facilities made availablein the past. The amount of advancesauthorized by the banks, some $40 mil-lion, has reached an unprecedented totaland we must now advise that we willdecline to grant further credits whichcould be repaid by the City only throughthe making of public issues. As totemporary loans, we will consider onlythose in regard to which satisfactoryproof is adduced that taxes and otherrevenue will be available in the nearfuture in amounts sufficient to repay thepresent and future relative advances.

"We should point out that thegenerous co-operation of the banks has .been extended to the City, at low ratesof interest and without interference onour part in the conduct of the affairs ofthe City by the Council, the ExecutiveCommittee and the Mayor. As bankerswe must confine ourselves to the con-sideration of the banking aspect of ourrelationship with the City. However,we cannot ignore what is taking placebefore our eyes, and we must takeaccount of what we hear on all sides.You and your colleagues are aware,even better than we are, of the creditstanding of the City and of the lack ofconfidence in City of Montreal securitiesmanifested by the investing public. Thissituation has been developing from badto worse. What courageous attempthas been made or is under considerationby those responsible for the administra-tion of the City to remedy and rectifythe deficiencies or defects and to restore

,J

confidence?

"Were the banks answerable to thecitizens of Montreal for the presentstate of affairs they would feel in dutybound to take immediate steps to stemthe tide of distrust. They would bearin mind that the City already has onhand expert advice as to the ways andmeans of improving the efficiency of itsadministration. They would endeavourto find a small body of public spirited,trustworthy and competent men whowould undertake to restore the financesof the City to a condition of healthyequilibrium. They would expect thatthese men would receive the support ofthe best elements of the population.They would look to these men to reducesuch taxes as are detrimental to thegrowth and welfare of the City. Theywould feel that capable management,undivided in its attention, should in arelatively short space of time bringabout redress, confidence and progress.

"The banks are often confrontedwith the remark: 'Why do .you notinsist upon some form of control overthe affairs of the City?' The answerof the banks is that it is not theirbusiness or their responsibility torecommend or establish systems ofgovernment. It is, however, becomingquite evident that the investing public isshowing a strong if inarticulate desire tohave control established and unless thesewarnings are heeded a more serioussituation may develop forthwith.

"We have advised you in this letterof the attitude of the banks, in so far asthey are concerned as bankers, and wehave conveyed what information wehave received through our relations withthe investing public, but we mustemphasize what we have said in the firstparagraph of this letter, that we willdecline to grant further advances whichcould be repaid by the City only bymeans of public issues. Any furthermeasure of co-operation on the part ofthe banks beyond what we have statedwill be based upon the achievement ofreform measures in process of successfulrealization.

"We are,"Yours very truly,

"Banque Canadienne Nationale,(signed) C. St. Pierre,

General Manager.

"Bank of Montreal,(signed) Jackson Dodds,

General Manager."The Royal Bank of Canada,

(signed) S. G. Dobson,General Manager.

"His Worship,"The Mayor of Montreal,"City Hall,"Montreal. "

(continued [rom page 6)

individual one may meet, it is far moreimportant to know who 'informed' him.and what motive the informer had thanto know what the nature of the inform-ation is.

Yet, concerning all matterspolitical, this is very hard to ascertain. Iam one of those who believes that verylittle error appears in newspapers. Iam also one of those who know that agreat deal of both truth and errorappears in the waste-paper basket. Itis important to grasp the fact that theseparation of the published from theunpublished is a matter of policy andthat generally speaking, that policy isnot yours and mine. It is more im-portant still to know how to put a stopto all this, for it is essentially a poisoningof the springs of social truth, for thosesprings are in us and in us collectivelyonly.

The theme is familiar in the form:"Public demand, to be effective, must bea demand for results"; but I am notsure whether we are as yet fully awareof all the implications of this doctrine.If we were, and if at the same time weacted in the light of our understanding,we could dethrone the Press. But youcannot dethrone the Press by becomingthe Press, which, incidentally, is one ofthe things our critics would have usbecome.

A sea captain, having read bychance one or two numbers of TheSocial Crediter between voyages, laid ina stock of the entire publication, startingfrom Number 1, and took it to sea withhim. This is not the sort of thingthat happens to "the Press", and it is aconsolatory fact. But it is not enough.It discredits those social crediters whostay "at sea" without The SocialCrediter, but it doesn't discredit thePress T. J.

Page 12

ANNOUNCEMENTS

THE SOCIAL CREDITER

AND MEETINGS

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

BELFAST D.S.C. Group. Headquarters:72, Ann Street, Belfast. Monthly GroupMeetings on First Tuesday in each month.

8.1RMINGHAM and District. SocialCrediters will find friends over tea andlight refreshments at Prince's Cafe,Temple Street; on Friday evenings, from6 p.m.. in the Kina's Room.

BLACKBURN Social Credit Study Group.Enquiries to Hon. Sec., 47, Whalley NewRoad, Blackburn.

BRADFORD United Democrats. All en-quiries welcome; also helpers wanted.Apply R. ]. Northin, 7, Centre Street,Bradford. .

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

LIVERPOOL Social Credit Association:Watch this notice for further informationabout Thursday meetings. All membersshould be present as frequently as poss-ible and others who are interested ininformative discussion. Hon. Secretary:

. "Gr~Eg~~s", Hillside Drive, Wool ton.

LONDONERS! Please note that THESOCIAL CREDITER can be obtainedfrom Captain T. H. Story, Room 437.Sentinel House, Southampton Row,London, W.Cl.

NEWCASTLE D.S.C. Group. Literature,The Social Crediter, or any other inform-ation required will be supplied by theHon. Secretary, Social Credit Group, W,Warrington Road, Newcastle, 3.

PORTSMOUTH D.S;C. Group. ·Weeklymeetings every Thursday at 8 p.m, 16,Ur snl« GrovP. Elm Grove. Southsea.SOUTHAMPTON GROUP - MonthlyMeeting,-Angust. The Monthly meet-ing will take place 011 Monday, August14th, (instead of 7th August) at the AdyarHall, Carlton Crescent, at 7-45 p.m, Mem-bers and fr icrids .all welcome,-come andsee our new meeting place. All com-munications should be addressed to CDaish, (Secretary), D.S.CA., 19 MerridaleHoad, Southampton.S:lDMOUTH, Devon - Association forLower Rates, Hen. Sec. Mrs. Miller,Squirrels, Redwood Road.-~---------.-.-----~---.SUTTON COLDF'lELD Lower RatesAssociation. A complete canvass of everyhouse is being undertaken. Any assistancewelcomed. Campaign Manager : Whit-worth Taylor, Glenwood, Little SuttonLane, Sutton Coldfield.TYNESIDE Social Credit Society inviteco-operation to establish a local centre forSocial Credit action in all its aspects.Apply W. L. Page, 74-6, High WestStreet, Gateshead.

WALLASEY Social Credit Auociation.Enquiries welcomed by Hon. 'Sec., 2,Empress Road. Wallasey.

Miscellaneous Notices.Rate Is. a line. Support our Advertisers.

TO LET-For winter months, proportionof rent to Expansion Fund. Two verysunny and comfortable furnished cottagesiru North Devon, glorious views. I.-haselectric light, bath and h. and c., indoorsarr., oil cooker, large living room, kitchen-dining-room, 3 bedrooms (sleep 3--4).Garage available.2.-ha5 two sitting, three bcd., (sleep 5)kitchen, oil cooker, lamps and radiator,drinking water laid on; e.c. under cover.Garage.

Part time labour available for both.Apply H. M. C, Beaford House, N. Devon.

Name .

Address .TO THE DIRECTOR OF REVENUE,THE SOCIAL 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 Chairmanship of--Major 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 sum of £the above mentioned funds.

, as a donation towards

Signature .

DERBY & DISTRICT Lower Rates \.,;Demand Association: Fortnightly meet- (ings suspended until October. '-

The NORTH DURHAM Ratepayer.'Advisory Association would welcome-support, physical or financial fromsyrnpathisers in Gateshead and Districtto carryon their campaign for LowerRates and no Decrease in Social Services.Campaign Manager, N.D.R.A.A., 74-76High West Street, Gateshead.

·UNITE.D RATEPAYERS' ADVISORYASSOCIATION. District Agent for New-.castle-on- Tyne area, W. A. Barratt, l~,Warrington Road, Fawdon, Newcastle-on-Tyne, 3, will be pleased to assist anyoneon new Lower Rates Associations.

UNITED Ratep~yers' Advisory Anod,,-tion. District Agent for S. Wales andMonmouthshire, Mr. P. Langmaid, 199,Heathwood Road. Cardiff.

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 SocialCredit Expansion Fund, to be /expended by the Administrators at \,_..the Sole Discretion of Major C. H.Douglas.

Name .

Address .

The Social CrediterIf you are not a subscriber to THESOCIAL CREDITER, send thisorder without delay.K.R.P. Publications, Ltd.,12, Lord Street,Liverpool, 2.

Please send THE SOCIALCREDITER to me

Name ......................................•. _

Address _For Twelve Months-I enclose 15/-" Six " 7/6"Three.. ,. 3/9

(Cheques and Postal Orders should becrossed and made payable to KR.P.. \.Publications, Ltd.) ,

..Published by the proprietors, K.R.P., Publications,Ltd., at 12, Lord Street, Liverpool, 2.

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