The Social Crediter, Saturday, December 30th, 1939.

THE SOCIAL CREDITERFOR POLITICAL AND ECONOMIC. REALISM

Vol. 3. No. 16. 6d. Weekly.Registered at G.p.a. as a Newspaper1'os tage (home and abroad) ~d. SATURDAY, DECEMBER 30th, 1939.

DOUGLAS, ORAGE: The First Phase:[.A Brief Account of the Social Credit Movement by W. L. Bardsley.

II.The story of The New Age and

its brilliant editor has been told in Mr.Philippe Mairet's memoir "A. R. Orage."At the time of Douglas's first associationwith it, it was well known for its regularteam of first class writers, and for itsfrequent articles by some of the mosttalented men of the day. It was thefundamental philosophical idea in GuildSocialism originated by Ramiro deMaeztu-the recognition of function insociety as well as the individual-thatundoubtedly attracted Douglas, who hasnever shown any great sympathy for anyother aspect of Guild Socialism, whichhe would naturally regard as a complexsystem of administration in vacuo.

The Guild Socialists for theirpart had little sympathy with SocialCredit, and naturally resented its impact,for Orage became rapidly converted andcarried with him a number of others.The effect on Orage may be gauged fromhis own subsequent description- in TheNew Age, April, 1926, of pis meetingwith Douglas.

"His knowledge of economics wasextraordinary; and from our very firstconversation, .everything he saidconcerning finance in its relation toindustry-and indeed to industrialcivilisation as a whole-gave me theimpression of a master-mind perfectlyinformed upon its special subject.After years of the closest associationwith him, my first impression has onlybeen intensified. In the scores ofinterviews we had together withbankers, professors of economics,politicians, and business-men, I neversaw him so much as at a moment'sloss of complete mastery of his subject.Among no matter what experts, he

3 "An Editor's Progress" reprinted fromThe Commonweal, U.S.A.

made them look and talk like child-ren ...

"He said many things in our firsttalk that blinded me with light; andthereafter I lost no opportunity oftalking with him, listening to him talk,reading new and old works on finance,with all the zest of an enthusiasticpupil. Even with these advantagesit was a slowish business; and mvreflections on the stupidity of thepresent day students of Douglas aregenerously tempered by the recollec-tion of my own. It was a full yearfrom beginning to study his ideasbefore I arrived at complete under-standing. Then all my time andlabour were justified."

Orage proceeded to throw all hisenergies and impressive qualities of mindinto a campaign to obtain recognition inresponsible quarters for the. neweconomic policy. For it was whatDouglas had to say about finance andeconomics, with their repercussions inpolitics that gripped Orage. The prin-ciples of organisation and the socialdynamics, to which the other ninechapters of "Economic Democracy" weredevoted, may even have seemed to himthe amiable idiosyncracies of the heavensent genius who had solved, and finally

ON OTHER PAGES

The Princess and theSwineherd

World of UnderdogsA Way of Looking at

ThingsFederation

What We Are About

solved, the economic riddle.From his nature and training this

would be a natural reaction. He wasimmensely widely read in Socialisticliterature, philosophy, oriental mystic-ism. He could sympathise with aNational Guild colleague's protest that"Douglasism is nothing but ignorance ofSocialist literature" even while he knewhow pathetically irrelevant such acomment must be.

Whether Orage felt that the"engineer-economist" (as he liked to callhim), who had taught him all he neededto know about economics, could not inreason also have much to teach himabout philosophy and Social Dynamics,or that in these respects Douglas wastoo far ahead of his time, or simply thatthe solution of the economic problemtook precedence over all other consider-ations, the fact is that it was of theeconomic aspect alone that he wrote andtalked in the next three years and thisalone which he .remembered in his re-trospective article six years later.

So great was this preoccupationwith the economics of the subject, notonly of Orage, but of all that part ofhis Guild Socialist entourage whobecame the nucleus of the Social Creditmovement, that of all the many booksand pamphlets written by propagandists(not by Douglas) during the next tenyears, only one! contained a precis ofthe non-economic concepts. Duringthis period many Social Creditersdiscussed with each other what thevcalled the philosophy of Social Credit,but very few set out to impart it toothers, except those parts of it whichserved to assist an understanding of theeconomic thesis, and fewer still could be

* The first instalment of this articleappeared in "The Social Crediter" forDecember 23rd, 1939.

4 "The Nation's Credit," by C.G.M.

Page 2 THE SOCIAL CREDITER Saturday, December 30th, 1939.

said to have mastered it.There is small reason to doubt that

this concentration on the narrow frontof an attempt to penetrate directly thedefences ·of the money monopoly wastactically sound. In the first placethere was quite widespread consciousdissatisfaction with the working of themoney system, and with the apologies ofits spokesmen, both bankers andeconomists. Secondly the movementwas weak numerically, and could there-fore only hope to obtain action by directinfluence on those who had, or appearedto have powers of action-bankers,economists, big business-men, andmembers of the Government. Thirdlytime was very short.

The last consideration no doubtweighed most strongly with Douglas,who has never failed to follow thechanges in the centre of gravity ofevents. (He has since estimated that1926 was about the last year in whichintervention could have arrested themomentum towards a general disinteg-ration of the present civilisation). Whileat that time he was not only content forthe whole strength of the movement tobe concentrated on the economic front,but also himself devoted a great deal ofhis time to this campaign, he still con-tinued to write books, the greater partof which were concerned with widerIssues.

A prospect upon which the move-ment built a good deal of hope at thatperiod was the Draft Scheme for theCoal Mining Industry", sub-titled "APractical Scheme for Establishment ofEconomic and Industrial Democracy"This scheme with a commentary byDrage was submitted to a large numberof people who were concerned, in variouscapacities, with the industry upon whicha Royal Commission had just made areport. The miserable results of thework done, giving the names of thosewho had begun by showing interest inthe scheme and subsequently pigeonholedit, were reported "without bitterness"in The Nezo Age in August, 1920, andthe scheme itself which had beenprivately circulated during the campaign,was then published. No effective noticewas taken of it at all, at a time whenthe coal mining industry was in extremisand getting worse.

Meanwhile the writings of Douglasand the weekly comments of Orage wereobtaining individual converts to the newideas, and the Social Credit movement

5 Appendix to "Credit Power and Dem-ocracy," by C. H. Douglas.

in this country had started. By the endof 1920 it had over thirty groups invarious towns, and an experimentalmonthly house organ Public Welfareedited by Arthur Brenton. In October,1921, the first Social Credit Conferencewas held at jordans. A contemporaryaccount of it shows that it was entirelydevoted to a disccussion of the economicsof Social Credit, on which Douglas wasclosely questioned.

The years 1921 and 1922 werenotable for a number of publishedcriticisms of the Douglas economicanalysis and proposals. Since one ofthe results claimed for the proposals isthe abolition of poverty and the evilsresulting from poverty, it is of particularinterest that most of these attacks camefrom Socialist or Communistic quarters,and that these all appeared during thedeliberations of a Labour Party Com-mittee appointed "to enquire into theDouglas Credit Scheme."

The New Statesman, the SocialistReview and the Communist publishedhostile articles by Messrs. PethwickLawrence, J. A. Hobson, and MauriceDobb respectively, the last named con-cluding that "Douglasism is a pitiableattempt of the petit-bourgeoisie andthe bourgeois serving intelligentsia tosave Bourgeois Democracy by fetteringthe power and depredations of Imperial-ist Finance Capital" -a judgement thenaivete of which was to be exceeded bythat of the Labour Party Committeewhen, after nearly sixteen months, itfinally made its report, which refutedthe Draft Scheme for the Mining In-dustry because "it is fundamentallyopposed to the principles for which theLabour party stands.t"

The movement, of course, throve onopposition; the boycott had barelystarted, and the ideas had had a chanceto percolate overseas. In the light ofafter events perhaps the outstandingoccurrence of the year 1922 was theappearance of a sixteen page pamphletin Canada. It was entitled "UnitedFarmers of Alberta, Bulletin No. 20"and the following passage deservesquotation:

"Members of a group of Britishfinancial and commercial experts, who

6 "The Labour Movement will be activewhen the New Age scheme lies amongthe dry bones of discarded creeds, andDouglas joins the shade of Attwoodin mournful contemplation of dustyand futile volumes in the catacombsof the British Museum" 'Said ArthurGreenwood in the Labour Magazinein August, 1922.

declared in February last that therewas no remedy for recurring periodsof depression and unemployment, havesince unanimously reversed theirformer views, and now express theopinion that a remedy may be foundin certain important adjustments ofthe financial and credit systems. Theproposals they have endorsed werefirst outlined by Major C. H. Douglas. .. in Canada they have recently beendiscussed at the Ottawa Rotary Club,and in the columns of the OttawaCitizen and in the Grain Growers'Guide by Mr. Chas. A. Bowman[editor of the Ottawa Citizen].

Unfortunately the movement wasimmediately to suffer a severe and dis-couraging blow. After three years ofunremitting "York, Orage cracked underthe strain of advocating what he knewto be the complete solution of theeconomic dilemma and finding so littleresponse. He threw up his editorshinof The New Age, retired to the semi-monastic Gurdjieff Institute at Fontaine-bleau, and was not to return to Englandfor ten years.

As he has left his consideredstatement of his reason for this in thearticle "An Editor's Progress" alreadymentioned, the relevant passage from itforms a fitting conclusion to the story ofthe first phase of the Social Creditmovement.

"My first reaction to the aston-ishing proposals to 'sell goods undercost' -and not merely as a temporaryexpedient but permanently andprogressively--convinces me, as I lookback upon it, of the utter impractic-ability of the -,suggestion. Not onlyits first shock must be fatal in themajority of cases to any further inter-est in the "crank" who would proposeit; but the time and thought andlabour necessary to understand andappreciate it are beyond the commandof more than a very few. In shortI am as much convinced that thesuggestion will never be put intopractice, as the result of reason, as Iam that reason would, nevertheless,dictate that it should be. The worldhas not free brain enough to com-prehend the simple cure for all itseconomic ills.

"I certainly worked hard enoughto satisfy any possible doubt I mayhave entertained. For three years, inthe closest working association withMajor Douglas, The New. Age weekby week laboured to expound, explain.

(continued on foot of page 3)

Saturday, December 30th, 1939. THE SOCIAL CREDITER Page 3

THE PRINCESS

Once upon a time there was a prince,but he was a very poor prince. Hehad only a very small kingdom, just bigenough to allow him to marry; and thatwas just what he intended to do.

It needed a good deal of self-assurance to say to the Emperor'sdaughter: "Will you be my wife?" Butthe prince possessed that self-assuranceas he came from an illustrious familyknown throughout the world. Hundredsof princesses would only too gladly havegiven him their hands in marriage, butthis one turned up her nose at him.

Now listen!On the tomb of the old king there

grew a rose-tree unlike anything thathad ever been seen; it only flowered oncein every five years and then it only borea single rose, but a rose whose fragrancemade you forget all your worries and allyour sorrows. Furthermore the princehad a nightingale whose song made youbelieve that its little throat contained allthe most lovely melodies in the world.

The prince decided to give his roseand his nightingale to the princess, sohe enclosed them in two large silvercases and sent them to her. TheEmperor had them carried in great stateto the chamber where the princess andher ladies-in-waiting amused themselvesby playing at battledore and shuttle-cock (they did nothing else from morningtill night). When she saw the twolarge cases containing the gifts sheclapped her hands gaily and exclaimed:"Oh, how I wish it was a little kitten."But it was only the wonderful rose thatwas revealed to her. "How sweetlymade!" declared the ladies-in-waiting.

AND THE SWINEHERD

But what was more extraordinarvstill: you had only to put your finger intothe steam to recognise the smell of allthe dishes that were cooking in all thekitchens in the town. Which wasdecidedly more interesting than a simplerose.

At that moment the princess withher ladies-in-waiting passed by. Whenshe heard the tinkle she stopped short,all smiles and delight, because she, too,knew how to play:

Alas! dear Augustine,All is gone.

In fact, it was the only tune she hadever learnt-but to make up for that shewas able to play it with only one finger.

"But it is my very own tune," saidthe princess. "He must be a reallywell brought-up swine-herd. Listen!Go and ask him the price of his instru-ment!"

One of the ladies-in-waiting wasobliged to enter the pig-sty, but she tookcare to put on a pair of large clogsfirst.

"What is the price of yourinstrument?" she asked.

"Ten kisses from the princess! "answered the swine-herd.

"Good gracious!" cried the lady."I cannot let it go for less!" said

the swine-herd."Well, what did he say?" asked the

princess."I dare not repeat it," answered the

(continued on page 4)

Douglas, Drage: The First Phasesimplify, and illustrate the thesis uponwhich the practical scheme [sic] rests.There was organised a Credit ReformLeague . . . Major Douglas gave uphis profession of engineer . . . Wesaw everybody we could ... To saythat we had no success would be un-true. The idea is more alive thanever in England at this moment. Butfor any practical result, search mightbe made with a microscope withoutresult.

"The conclusion my mind in-evitably reached after these experiences

By HANS ANDERSON

It is more than sweetly made," saidthe Emperor, "It is perfectly made."

But the princess touched it with herfinger and almost burst into tears: "Buthow disgusting, papa, it is not made atall; it is real! "Too disgusting," said allthe courtiers. "There, there child," saidthe Emperor. "We mustn't get excited.Let us first see what there is in the othercase." This time the nightingale was.disclosed. The bird began to sing soexquisiteiy that it was impossible to sayanything bad about it straight away.

"I do hope that the bird at least isnot real," said the princess. "But ofcourse it is real," said' those who hadbrought it. "Very good, let it ,fly," saidshe, and she refused to see the princepoint blank.

But the prince was not so easilydiscouraged. He blackened his face,pulled his hat over his eyes and knockedat the door of the castle.

"Hello, Emperor, how are you?" hesaid. "Any jobs going?"

"Hum. If only you knew how manyasked me that question," said theEmperor. "Let me think. I dohappen to need somebody to look aftermy pigs, for I have quite a few."

The prince was appointed Imperialswineherd. He was given a nasty littleroom (with which he had to contenthimself) quite close to the pig-sty. Therehe worked hard all day long and towardsevening he had made a nice little potdecorated with bells all round. Assoon as the pot boiled the bells began totinkle gaily the good old tune:

Alas! dear Augustine,All is gone, gone, gone.

was that reform in any drastic senseis impossible. Douglas, to the bestof my consideration, has got to thevery bottom of economics. Thereare literally no more insoluble or evendoubtful problems in the whole rangeof economics; and this, needless tosay, includes the daughter "science" ofpolitics. Everything is as clear asdaylight in the light cast by Douglas'sanalysis of the nature and role offinance. At the same time, hisanalysis did not leave the situationhopeless theoretically; it was onlyhopeless practically. The Douglaspositive proposals were as impeccable

as his analysis, only they could not becarried into effect owing to thestupidity of the community thatneeded them. What was I to do?I was again at an impasse. Thefirst arose on account of the combin-ation of interests against us; but thissecond was worse, since the combin-ation against us was unconscious andirremediable. There was nothing tobe done but to die with The NewAge or to hand it over to a freshersoul. After fifteen years of editor-ship I sold out and left England."

(To be continuetf).

Page '4 'rHk: sOCiAL CRtDITER Saturday, December 30th, 1939.

From a' friend who has threechildren billeted on her:-

"The· children are not now inrags. The eldest boy was given a suitand a pair of boots from school. Theirmother has sent me about 30/- al-together for clothes. I have notspent much actual money on clothesfor them, but a great deal of time onalterations and mending. Theirparents came yesterday. That meanttwo meals for thirteen people! Themother receives in all £2/1/0 fromthe Government. She pays £1 forrent and rates and 9/- back to theGovernment for the children's keep.That leaves her with 12/- for clothesand food. Of course she can'tmanage; she couldn't even if she weresensible, but she has bought an electric

OFBy B. M. PALMER

radio, has a fur coat, gives the child-ren too much pocket-money and haspromised the girl a permanent wavewhen she is fourteen. This meansthey have to go without necessities.She wept yesterday when the childrensaid they never wanted to go home.Of course they don't. I feel verysorry for her. She adores them, andhas brought them up to be kind,obedient and unselfish."

I remember meeting a schoolmistress who was very indignant aboutwhat she called the complete lack of allsense of responsibility among the parentsof her children. A "boot fund" wasrun by the staff. One of their chiefdifficulties was to get the parents tosend the boots back for repairs whennecessary. They usually allowed the

children to wear them. right down to theuppers, until repair was impossible, Theboots were ruined and had to be thrownaway.

There are lurid pictures of povertyto be found in English literature. Someof the scenes described by SmoUett oreven by Disraeli could not, I think, beparalled to-day. But this does notprove, as so many would have us believe,that wi::. have advanced greatly sincethose times. The degradation to befound in parts of London was frightfulin the eighteenth century; but the pro-portion of comfortably-off people wasfar greater than it is to-day. Only avery small percentage of the peoplewere dependent on charity, and Stateassistance was unknown.

During the nineteenth century

The Princess and the Swineherd-contd.lady-in-waiting. "It is too horrible."

"Whisper it to me." And shewhispered it quite softly.

"But he is indecent!" And theprincess turned quickly on her heel andwent away. Hardly had she taken afew steps when she once more heard thebells tinkle gaily:

Alas! dear Augustine,All is gone ...

"Listen," said the princess, "go andask him whether ten kisses from myladies-in-waiting will not do the trick."

"I do not haggle," said the prince."Oh dear, how annoying," said the

princess: "but then you must hide me sothat no-one sees me."

The ladies-in-waiting placed them-selves in front of 'her, holding out theirskirts: the swine-herd had his ten kissesand the princess her pot . . .

The swine-herd, that is the prince,did not waste his time.

He next made a rattle that as soonas you turned it played all the waltzes,all the polkas, and all the minuetscomposed since the creation of the world.

"But it is superb," said the princess,who was passing by. "I have neverheard so lovely music. Listen, go andask him the price of his instrument. Only,no kisses."

"He demands a hundred kisses fromthe princess," reported the lady-in-

waiting."My word, he is mad" said the

princess, and went away. But a momentafter she stopped: "After all I am theEmperor's daughter, and one mustencourage the arts. Good! He willget his ten kisses as yesterday. As forthe rest let him go to my ladies-in-waiting."

"That's hardly fair on us," objectedthese latter.

"Nonsense. If I can kiss him, socan you. Don't forget that you arehoused and fed at my expense." So thelady-in-waiting was obliged to return tothe swine-herd.

"A hundred kisses from the princess"he said, "or each keeps his own."

"Hide me," she said.All the ladies-in-waiting formed a

circle around them and he began to takethe agreed number of kisses.

"What is all that crowd doing downat the pig-sty?" said the Emperor,coming out onto the balcony. He rubbedhis eyes, and adjusted his spectacles ..."I will wager that it is the ladies up tosome mischief; I had better go and ~t'.!for myself."

So saying, he quickly put on hisslippers (which were really an old pairof shoes that he did not want to throwaway). He ran down the stairs, four ata time, crossed the yard softly so thatthe ladies-in-waiting, engrossed in

counting the kisses in order that the swine-herd should not have one too many ortoo few, were not in the least aware ofhis approach. He raised himself ontip-toe.

"Heavens!" exclaimed the Emperor,in a rage, dealing them severe blows onthe head with his slipper. And theywere both chased out of his Empire.

The princess wept, the swine-herdcursed, and the rain came down intorrents.

"Oh, how unhappy I am," sighedthe princess: "Why did I not marry thehandsome prince? I am the most un-happy person in the world."

Then the swine-herd hid behind atree, rubbed the black from his face,doffed his ragged clothes and appearedin his princely costume so handsome that,quite mechanically, the princess curtsiedto the 'ground.

But the prince rebuffed her: "I havecome to despise you. You would notknow an honest prince. You under-stood nothing of the rose or thenightingale. And, what is more, youcould kiss a dirty swine-herd for awretched musical box. You have gotwhat you deserve."

Then he entered his kingdom,locked and bolted the door, and left theprincess to sing to her heart's content:

Alas! dear Augustine,All is gone ...

Saturday, December 30th, 1939. THE SOCIAL CREDITER Page'S

poverty spread alarmingly. This isgenerally said to be due to "industrial-ism", or "capitalism".

Major Douglas's researches estab-lished the fact that it was due to thefinancing of industry by bank-createdoverdrafts which have to be repaid withmoney which should 'be earmarked tobuy goods. The whole population ishopelessly in debt to the banks. Thetotal price of all goods is always greaterthan the total income of the nation,because industry is always trying torecover the overhead charges.

When we add to this knowledge thealmost incredible fact that Governmentis also in debt to the banks in exactlythe same way to the tune of £1,400 mil-lion on September 1st last-thoughtreels at what the debt must be now-we can understand that financialpoverty is inevitable under the debtsystem.

The people who control thissystem hope to control the world afterthe war. It is impossible to believethat they do not know what they aredoing. The evidence is overwhelming.Their policy is anti-Christian and anti-democratic.

Some people will be shocked whenthey read this, because they do notunderstand the significance of theChristian philosophy. It is, therefore,impossible for them to know what isanti-Christian.

The axiomatic statement "theKingdom ofHeaven is within you" maybe said to express one aspect of Christ-ian philosophy. The antithesis of thistruth is the Judaic conception whichlooks outside and beyond the individualfor the state control to which theindividual must submit.

These two philosophies, the Judaicand the Christian, are warring togetherthroughout the world, They have beenwarring throughout the ages. Theenemy is not confined to Germanmilitarism.

When English history is rewrittenit will be seen that the nineteenth centurywas an era of the rampant growth ofJudaic philosophy.

As we have seen, the working of thefinancial system, controlled not by thepeople's parliament, but by a handful ofdictators whose names were scarcelyknown, led to widespread poverty. Thepopulation increased rapidly and theproportion of underfed and ill-clothedwas greater than it had ever beenbefore.

The well-meaning were distressedby the terrible social problems whichappeared around them.

Little did they guess that it wasnow their turn to be exploited. Thenineteenth century saw the firm estab-lishment of those twin scourges ofmodern life, Organised Charity andState Social Services, paid for by tax-ation.

Their ostensible object had a fatalfascination for the puritanical mind. Itwas "Doing Good to Others." Theirulterior object, possibly only known to afew, was the creation of a permanentworld of underdogs by means of volun-tary and compulsory taxation.

Organised Charity is nothing butvoluntary taxation privately organised asa supplement to the compulsory taxationfor State Social Services. Its netresult is to remove all initiative from theindividual by encouraging him to do tessand less for himself, so that as time goeson he has practically no control over hisown environment.

It needs little imagination torealise the effect this must have oncharacter and morale.

We have now had two generationsof organised charity.

These two women now so dramatic-ally brought in contact through thebilleting scheme are each the victims Jfthe logical working of the system.

How thin has grown the linebetween Organised Charity and Com-pulsion is clearly shewn by the workingOut of the iniquitous Billeting Act. Thecompulsion laid on householders to takebilletees was so difficult to resist becauseit was represented as a charity to "savethe children." This blinded people tothe tyranny that compelled them to keepstate boarding-houses at no profit. Noproblem would have existed if thechildren's mothers had been able tomake their own arrangements.

~hy could they not?First, because they were too poor.Secondly because many of them

were too ignorant.And they were ignorant, not because

a greater proportion of lesser intellectsare born to them, but because personalinitiative cannot develop withoutopportunity. Deprive a woman ofmoney' give her "free" doctorinz "free"schooli~g, "free" milk and meal~' for herchildren, send a health visitor to giveher "free" advice, (how I hate to usethe word "free" in this degraded sense)

and she will soon begin to lack self-reliance. Then subject her to all theallurements prepared by those whofeather their nests out of the instalmentsystem (bankers and insurance compan-ies.) Can she resist her fur. coat, herelectric radio, her frequent .visits t~ thecinema? It would take a mind withmore background than this poor mothercould ever have acquired to resist a"temptation" ruinous to no one ifregarded in the light of nationalresources.

She gets into debt, the childrensuffer. And yet "she adores them, andhas brought them up to be kind, obedi-ent and unselfish."

Can anyone deny, that with therights which are hers as a citizen shewould have been as good a mother ascould be desired?

Now her children have been takenfrom her. They "never want to gohome again."

This is the result of OrganisedCharity and Social Services-the break-ing up of home life, the weakening ofmorale, the spread of ignorance andhelplessness. There is another name forit=-communism.

"Our kindly sympathy for theunderdog is being exploited to securethe creation' of a permanent world ofunder-dogs."

It has been going on for generationsnow.

To-day, when I opened The Timesthere was 'a whole' page devoted tovoluntary taxation under the heading"Christmas Appeals."

Organised charity shows every signof breaking up. When it does are wegoing to submit to a complete extensionof State control, so that the middleclasses, too, join the world of under-dogs,and we can all be completely equal likea herd of cows under a state cowherd?

One of the most encouragingdiscoveries of the last three months isthat the Anglo-Saxon character has notbeen ruined by it.

. Is there left enough comprehensionof the term democracy (and of Christ-ianity) for Englishmen to insist thatthere is an end put to the debt system,that the State is there to serve us and todistribute dividends for our personaluse, so that we may make our ownarrangements?

That is the question.B. M. PALMER.

Page 6 THE SOCIAL CREDITER Saturday, December 30th, 1939.

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 30/-; Six months 15/-;

Three months 78. 6d.VOL. 3. No. 16.SATURDAY, DECEMBER 30th, 1939.

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AWay of Looking at Things"Christianity, Democracy, and

Social Credit have all three things incommon; they are all said to havefailed, none of them is in the nature ofa Plan, and every effort of the mostpowerfully organised forces in theworld is directed to the end, not onlythat they shall never be accepted, butthat as few persons as possible shalleven understand their nature."

-c. H. DOUGLAS.

A plan is something finished andfinaL It has no life about it. It isan isolated idea, not hitched on, eitherin front or behind, to the flow, the vitalforce that we call Life. -

A really vital idea, such as SocialCredit, is in itself therefore never ascheme, but a way, a channel for life tomove in. And ultimately, just a pointof view, a manner of looking at things.The difference between a social crediterand another member of the humanspecies is not structural or organic.Social crediters have the ordinarynumber of limbs and they breathe asother mortals do; but they just have adifferent way of looking at some things,-for instance, money, unemployment,leisure, and a few others.

It is obvious that a Way of Lookingat Things is not a matter for card-indexes and blue prints. Social creditersmust make up their minds to doingwithout such aids. The Pharisees askedJesus of Nazareth for plans and eleva-tions of his Kingdom of God that he wasalways talking about, and he told them inthe plainest language possible that ''nosign would be given them", and contin-ued to define his Kingdom from everyconceivable angle; generally as somethingvery small, potent and pervasive-agrain of this, or a pinch of that. Sopersistently did he do so that there canbe no doubt whatsoever that it wassimply a point of view, a way of looking

at life that he had in mind.It may have irritated the Planners

of his day. It obviously did, for theykilled him. No doubt they said he wasa vague and dangerous dreamer. Butsurely no one, however they may regardthe wisdom of the activities of thefounder of Christianity, can reasonablyaccuse him of vague and woolly thinking,or of indulgence in theory withoutpractice.

If ever there was a being on thisearth who gives the impression of know-ing clearly what he was about and wherehe intended to get off, it is Jesus ofNazareth. George Washington's earlvdetermination to be a teller of the truthis only the faintest reflection of thatother concentration and clarity.

At the beginning of a New Yearthat is likely, as the politicians say, to bemomentous, it is wise for social creditersto review their own position and takepersonal stock.

What have they got? In a sense,everything. The one truth that can getthis civilization out of its imminent andimmediate danger of collapse, and pointit on the practicol road towardsrehabilitation. That is no less than afact.

But in another sense, social creditershave almost nothing. No organisation,as such, above all, no plan; no platform;no official recognition. Mr. Keynescan occupy the chief page of The Timeswith his ingenious devices for tighteningup screws that are already screwed homeas tightly as they can go. Mr. HerbertMorrison on behalf of Labour can haveBroadcasting House to advocate anorganisation of Europe on the pattern ofa United States that boasts at the presenttime nine million unemployed. ButSocial Credit-?

It is true, social crediters possess

none of those advantages; but they haveone asset that all these other people lack,and that is that what they stand for issomething that all men want, and some-thing all men may have. It is reallytheir only asset.

Social Credit represents somethingin every man's heart-something hewants whether he has put it to himselfor not. Just as Christianity promisesliberty, so does Social Credit. Andthe common man wants Liberty. Helongs for it far more ardently than hedoes even for the most cleverly graduat-ed Forced Loan, or an income tax of7/6 in the pound. N. F. W.

CURFEWPoland. At 7 p.m. curfew is

strictly enforced in Warsaw and anyonefound in the streets after that hourwithout a permit is promptly shot.

(Daily Telegraph, Dec. 13, 1939).•

England. Black-out 4-21 p.m. to7-36 a.m.

(Daily Telegraph, Dec. 22, 1939).•

"At a city inquest this week itwas reported that a woman, whosebody was found in a roadway nearMansion House Station had beendragged nearly two miles under a 'bus,after being knocked down in theblack-out."

(Daily Telegraph, Dec. 16, 1939).

CIRCULA,TION DRIVEThis issue of The Social Crediter is

one of a series containing articles cfspecial interest to the new reader.

We are anxious that as manv newreaders as possible should have the opport-unity of using this introduction to our views.and to this end we are offering a specialmonthly trial subscription for 2/6 with ~commission of 1/3 to the supporter whointroduces the new subscriber.

Further details and special aids to helpincrease the circulation will be sent post freeon application to:

K.R.P. PUBLICATIONS LTD.,.12 LORD STREET. LIVERPOOL, 2,

A reader in Newcastle says:"I am pleased to say that I have

found Iittle difficultv in getting people totake out a trial subscription. I bagged fivesubscriptions in two hours and those in thecourse of business. and I hope to get manymore. I may say that none of t1,e five knowmuch, if anything, about social credit."

Another reader writes:"I shall be very glad if Y011 will let

me have 8 much larger number of leafletsand order forms . . . we are all busy 0nthe circulation drive, and hope to presentsome first class results."

Saturday, December 30th, 1939. THE SOCIAL CREDITER Page 7

FEDERATION: A SURVEYIn all known cases of Federation (America, Russia, Canada, Australia, South Africa) the introduction of the

Federal System has led to a marked increase in the centralisation of potoer and an equally marked decrease ofindividual freedom. The way to ensure increasing personal freedom is not, as MI'. Streit suggests, to universaliseFederation (i.e., to create a world government 'backed by overwhelming power') but, on the contrary, to decentral-ise power (i.e., give power back to the individual.)

In one of H. G. Wells's early tales a vivid descriptionis given of the emotions of a traveller in Time on discoveringthat 2,000 years or so hence one half of humanity wasbeing reared by the other half expressly for food.

The position of the individual American to-day remindsone faintly of this situation, in spite of the elaboration ofhis "culture" and the potentially immense economic wealthwith which his country is provided. Everywhere immensecentralisation of power has led to the exploitation of theindividual by the institution so that one is almost temptedto think that the individual is kept merely for the purposeof being a good investment for the few people in controlof the trusts. In which case "Federation" would merelybe the means of keeping him in order during the process.

"The object of Union," says Mr. Clarence Streit inhis book advocating Federal Union on a far wider scale,

"being to advance the freedom and individuality of theindividual it can include no thought of standardising orregimenting him, nor admit the kind of centralising thatincreases governmental power over him. These are theevils of nationalism, and Union would end them."

After a glance at the United States one wonders whetherMr. Streit is consciously or unconsciously talking throughhis hat?

He praises the clearly formulated constitutions of theearly American states to which he refers us. Of the historicalfight between the individual states and the central govern-ment, which lasted for the better part of a century, he haslittle to say. Some of the main points, however, will bearrecapitulation.

"By the Declaration of Independence in 1776, thethirteen American colonies of Great Britain expressedtheir action as ..that of 'these united colonies', but theterms of the declaration implied that each became anindependent State . . . The articles of Confederation,adopted in 1781, constituted a legal symbol of union, butthe Central Government under these articles had noco-ercive power. over the States, and no power whatevercapable of exercise directly upon the citizens of theStates. The National Constitution framed in 1787 andput into effect in 1789, was intended to remedy thissituation by creating a Central Government with largepowers not merely upon the States, but directly upon allcitizens of the country."

-i-Encyclopaedia Britannica.

The Federal Government showed from the outseta remarkable talent for organisation, which talent resultedfirst of all in the setting up of departments for war, foreignrelations and finance, and proved eminently capable oftackling the exigencies of the times.

The first test came in 1812 when the Americanschallenged the right of the British to impress sailors. The

war which cost 100,000,000 dollars and fifty thousandAmerican lives at least proved the efficiency of the FederalWar Department. Against heavy odds the Americans heldtheir own: no one came out victorious, but no territory waslost; shortly after the Peace treaty the Bank of America wasre-chartered.

The Federal machinery again justified itself in thewar with Mexico; at the Peace Treaty (1848) California,Nevada, Arizona and New Mexico fell to the Union.

The final test, of course, came with the Civil Warwhen the Southern States maintained their right to secedefrom the Union. The war, which cost almost a millionlives, and resulted in an enormous increase of the publicdebt, disposed finally of the right of member states to actindependently.

Having weathered this storm the Federal Governmentthought it expedient to keep a standing army of 50,000 men.Both the American Army and Navy saw active service inthe Spanish-American War of 1899 (as a result of whichCuba and the Phillipines became American Protectorates)and in the first Great War (during which these protectoratesfederalised, and the Danish West Indies were incorporated).

Both Navy and Army have, moreover, been employed"lith effect in times of peace. The American Men of Warhave more than once been sent on 'trips of warning' to smallSouth American republics in arrears with their payments toWall Street bankers ('Dollar Diplomacy') and the army hasrepeatedly proved useful in suppressing labour troubles onthe home front (Daily Telegraph, August 17th, 1939:-TANKS SENT TO PIT STRIKE.)

The price paid for the long and arduous transformationof the thirteen 'united colonies' of Great Britain into the48 United States of America was the sovereignty of theindividual states: .

"So far as they influence the organisation of theGovernment of the Nation. they have tended to becomemerely units for national election purposes. The Statehas to a large extent lost its political individuality . . .the Civil War settled finally and conclusively that thestates are merely units . . . in the formation of a singlenational organisation.

"States are forbidden without the consent of Congress'to keep troops or ships of war in time of peace, enterinto any agreement or compact with another State orwith a foreign power, or engage in war unless actuallyinvaded, . . . they are forbidden to enter into treaties,alliances, and confederations.' These types of limitationsupon the States indicate a definite purpose to deprive thethe State of any independence . . . and this purpose IS

supported by the language making the 'Constitution andthe laws of the United States which shall be made in

Page 8 ,THE SOCIAL CREDITER Saturday, December 30th, 1939.

pursuance thereof, and all treaties made or which shallbe made under the authority of the United States' thesupreme law of the land."

-Encyclopaedia Britannica.

RULE OF LAWThe British system of government differs from the

American chiefly in that:"A British court must obey the Act of Parliament;

the American court is bound to obey the Constitutionfirst, and the Act of Congress or of the State legislatureonly so far as it is warranted by the Constitution."

The Constitutionality or otherwise of a measure isdecided by the Supreme Court, whose members keep theiroffice 'during good behaviour' and are appointed by thePresident, (who possesses vast powers of veto, appointmentand removal of officials).

"The Federal Courts are the principle agents insecuring this essential power over individuals . . . and itis a most important agent in securing the NationalGovernment its supremacy over the States.

"The 25th section of the Judiciary Act of 1789permitted any Supreme Court justice to grant a writ oferror to a State court in a case in which the constitution-ality of a Federal law or treaty had been denied ... Itwas not until 1816 (in which year the Bank of Americawas re-chartered) that the Federal Power undertook toexercise this power; it raised a storm of opposition, butit was maintained, and has made the Constitution whatit professed to be 'The Supreme Law of the Land.' "

Thus safeguarded, the"Constitution has been carried safely through a period

which has radically altered every other civilized govern-ment."

The American Constitution professes sharp divisionbetween the legislative, executive and judicial powers, butin reality

"there are no Clear lines separating one governmentalfunction from another, and .the courts have therefore beenunable to develop any logical lines of division . . . thecourts frequently say that legislation may not be delegatedbut the very necessities of modern life* have forced in theUnited States as in England and on the Continent, thevesting of a large amount of subordinate legislativeauthority in permanent administrative bodies within theexecutive department. In order to avoid terming this adelegation the courts have corne to designate such powersas 'quasi-legislative' rather than legislative. In the samemanner, administrative bodies within the executivedepartment have come to exercise powers that are sustain-ed on the ground that they are 'quasi-judicial' rather than'judicial.' "

The custom of having anonymous administrators makelaws and judge cases (which thus appears to be longestablished in the States) has latterly (c. 1925) been intro-duced into England and dubbed by the Lord Chief Justice'administrative lawlessness.'

A recent example of this method of separating powerfrom responsibility is the appointment by Mr. Roosevelt ofa body of law-framers known as his brain-trust. Theyare mainly responsible for the New Deal. Theessentially confiscatory (Socialist) nature of the measures ofthe Roosevelt plan may perhaps be traced to the fact that a

'" our italics.

large percentage of the brain-trusters were born in the pre-warRussian Ghetto and carried into the States in infancy.Politically at all events, the British counterpart of this bodyis the organisation known as P.E.P. (chairman, Moses IsraelSieff; former secretary, Kenneth Lindsay, M.P. is connectedwith the American financier of Dartington Hall. To theheadmaster of Dartington Hall, W. C. Curry, was 'entrustedthe preparation of a Penguin Special on "Federal Union."

TAXATIONTaxation is the most effective modern method of keeping

the individual in subjection. Jacob H. Schiff, for twentyyears the head of the well-known firm of Kuhn, Loeb andCompany, has called it "a weapon of destruction."

Before the War of Independence the public debt of theUnited States was nil; in 1938 it amounted to $432.6 perhead of the population. Between 1935 and 1939 it hadincreased fourfold, and during the Great War of 1913-18 itincreased sevenfold-only a slightly smaller increase thanin England which had taken part in four years of war insteadof one.

In the eighteenth century it was almost impossible toextract taxes from good Americans but this was remediedby a series of wars. Before the war of 1812 Treasuryreceipts and expenditure were generally less than $10 mil-lions; between 1812 and the Civil War to the World Warin hundreds of millions, and after the war in thousands ofmillions.

President Wilson was inaugurated as President in March,1913; on October 3rd he introduced the income tax, and onDecember 23rd the Federal Reserve Board.

Taxation now amounts to $22.7 per head of thepopulation, compared to $25.8 per head in the UnitedKingdom: but the National Industrial Conference Board ofNew York estimates that on an average the Governmenttakes 22.4 per cent. of an American's income as comparedto 21.7 per cent. of a man's income in Britain.*

So that the individual suffers slightly more restrictionof freedom by means of taxes in the United States than inEngland. .

Taken in conjunction with the vast economicriches of America the growing number of unemployed(now at about 10 million) provides a measureof the restriction of liberty imposed through the monetarymechanism, while their regimentation in Civilian Conserva-tion Corps shows the extent to which a (fostered) devotionto the theory that he who does not "work" shall not eat,invites "discipline."

TRUSTSAlong with the steady increase of centralisation of

power in the United States there has been a paralleldevelopment in the "business" world; business and financialfirms combining into larger groups, concentrating the powerinto few hands. Of this the Encyclopaedia Britannica says:

"In the organisation and conditions of business therecould be traced some startling contradictions between theword liberty and the fact. Nominally all kinds ofbusinesses not prohibited by law were open to all comers... In reality by 1908, a considerable number of both

* It is interesting to note that the German Government taxes (in1938) took an equivalent of $109.7 per head, being 26.2 per cent.of the average income.

Saturday, December 30th, 193'9. THE SOCIAL CREDITER Page 9

employers and employees were engaged in a combatoutside the laws, constant and conscienceless . . . Politicalorganisations were on nearly the same basis as businesscompanies. They also grew bigger and more powerfuland gathered into fewer groups. Nominally parties aresimply associations of voters for common ends. Actually,they.are armies acting under commanding leaders who, inin many cases, hold no offices. The Sherman Anti-TrustAct of July 2nd, 1890 declared combinations affectingcommerce between the several States or with foreignnations, illegal and punishable by fine or imprisonment orboth . . . the trusts, although embarrassed, soon showedtheir ability to find other devices to maintain their unifiedcontrol ...

"The steel industry . . . was united by PierpointMorgan into the United States Steel Corporation, withstocks and bonds aggregating $1,400 millions.

"In the field of railway transportation Harriman usedthe bonds of the Union Pacific to acquire the SouthernPacific with the Central Pacific and by 1906 he wasdictator of one third of the total mileage of U.S.A.

"Following a similar tendency the great Wall Streetbanking houses were dominated by the large financialgroups in the interest of speculatory undertakings, thedirectors of banks loaning to themselves, as directors ofindustrial combinations, the funds which flowed into NewYork from all the banks of the interior [sic] . By asimilar process the great insurance and trust companies ofNew York became lenders to the same operations. Thusa community of control over the fundamental economicinterests of the nation was lodged in a few hands."

GOLDMr. Streit suggests that his proposals for the futur-e

arrangement of Europe would ensure sufficient stability to"bring back the gold standard", which he evidently countsas the only respectable basis of finance. He does not, ofcourse, speculate about the power over individuals thatthis gives to the -owners of gold, although he mentions thefact that the United States holds over 50 per cent. of theworld's gold stock. The grasp of world power gained byU.S. financiers during the European War is in danger ofbeing lost unless .some way can be found .of inculcatinggenerally the old faith in the talismanic power of someconvenient set of financial rules-such as the "goldstandard." There is, in fact, sound basis for the suggestionthat one of the purposes of the present war is to forceBritain and France back on to the gold standard and morefirmly into the grasp of the powerful financiers of WallStreet, William Street and Pine Street, New York.

GRAFTAs was to be expected the development of centralised

power by two groups of persons; the federal government andthe business men, led to a degree of 'coalescence' by way ofthe corruption of government officials. As early as 1875there were enormous frauds in the collection of the internalrevenue by the whisky ring, with the connivance of FederalOfficials. With the growth of wealth and enterpriseaccusations and investigations reached even the President'scabinet. In 1922 there was a scandal over the transfer andleasing by the 'Secretary for the Interior of some oil bearingland, involving cash payments of $100,000 in cash from theoil magnates concerned. The publication of the facts asestablished by a committee of the Senate led to the resigna-tion of the Secretary of the Navy and the institution of

criminal proceedings against the Secretary of the Interiorand the oil magnates.

In brief, the working in America of at least three ofthe five points on which Federal Union is advocatingfederalisation (finance, citizenship, defence forces, customs

-and communications) is a strong warning against any suchproceeding. The Union Citizenship, while giving greatpower to the congress or senate, by the size of its constit-uencies makes it impossible for the electors to have thecontact necessary to enforce the realisation of responsibility.(The suggestion for European constituencies of half a millionor a million people is illustrative). Union Money has ledto the concentration of the tremendous power of finance intothe hands of a few people, and to the taxation of theAmerican people to an extent greater than in Britain. Uniondefence forces have led to the application of the army ininternal class warfare. As for communications, it is nobody'sbusiness but the inhabitants of a country to decide whetherthey want traffic through their own country-and to arrangecommunications accordingly.

In fact, all the five points mentioned by Mr. Streitare purely secondary: give individuals economic freedomand they will themselves create an organisation suitable. tothe objectives they wish to achieve.

U. S. S. R.In conclusion a word on the second large existing Union*

(born like the first amidst the troubles of a world at war),the Union of Socialist Soviet Republics mightcomplete this brief survey of the workings of the FederalSystem.

"The constitution of the new state, The Union ofSocialist Soviet Republics, was accepted by the CentralExecutive Committee, 1923. Each republic had its ownCouncil of Commissars, but the Union reserved for itselfthe Commissariat of Foreign Affairs, War, and Marine,Trade, Transport and Posts and Telegraphs.

"Paradoxically, the most important unifying forceof the new state [Communism l which contained so manyraces, creeds and languages was not mentioned in the

."constitution. The Communist party with its rigid~.-discipline and centralized authority was destined to control..each of the constituent states and to ·cement them morefirmly 'together . . . "

And in the sphere of finance:"As the New Economic Policy developed industry

was divided into 'trusts' as they were called. With thetrusts which were organs of production were associated,organs of sale and purchase handling both foreign andinternal trade. United action and government controlwere secured -by the expansion of the Supreme EconomicCouncil to include representatives of the trust sections, soas to form a kind of industrial General Staff:"

-British Encyclopaedia.Judging from recent events the authors of Unions are

determined to realize the ideal expressed by Trotsky in "TheBolsheviki and World Peace":

"The task of the proletariat is to create a far morepowerful fatherland, with far greater power of resistance-the Republican United States of Europe, as thefoundation of the United States of the World."

* The connecting 'link between the two Federations is the Jewishbanking house of Kuhn, Loeb and Company, which was instru--mental in financing the Bolshevik Revolution.

Page 10 THE SOCIAL CREDITER Saturday, December 30th, 1939.

WHAT WE ARE

MONEY is the MEANS OF ACCESS to Freedom.Banks, (ultimately international finance) have the monopolyof the issue of money; that is to say, a monopoly of thecontrol of freedom.

THE FINANCIAL SYSTEM, by issuing money asdebt, and by refusing to issue it except in return for work(production) sets up a conflict between individuals-toOBTAIN MONEY from a constricted supply in the handsof other individuals, and to OBTAIN WORK (from adiminishing supply and in competition with other indiv-iduals.)

THIS CONFLICT spreads from individuals tonations, taking the form of an insatiable demands for rawmaterials and exports. This is the proximate cause ofmodern war.

THE CENTRAL KNOT in this tangle can be untiedby the issue of money as CREDIT, and in a form increas-ingly detached from WORK.

THE IMMEDIATE APPLICATION of theseprinciples is in the finance of WAR, as embodied in pro-posals published by Major Douglas. These make possiblethe maximum national effort; while reducing taxation, andavoiding debt and inflation.

THE PERMANENT APPLICATION is the financeof PEACE. PEACE can be secured by the provision ofsubstantial security to each individual; and that meanspersonal access to goods and services in a form which isdetached from work; that is a National Dividend, a vehicleof personal freedom.

PERl\1ANENT PEACE is the result of such freedom.PHILOSOPHIC and POLITICAL SYSTEMS either

retard or bring nearer the common objective of Real Free-dom.

COMMUNISM, SOCIALISM and TOTALITAR-IANISM all result in the subservienceof individuals toinstitutions. These are diametrically opposed to the useof social credit, which springs from the freedom of theindividual.

NATIONALISATION and STATE CAPITALISMcan be added to this list. They lead inevitably to "theexaltation of the functionary at the expense of the humanbeing-governmentalism, the increasing, deadening grip ofinstitutions."

CHRISTIANITY (The NEW Testament) "I came thatyou might have life, and have it more abundantly" ... "TheSabbath was made for man, not man for the Sabbath" . . ."The Kingdom of God is within you." These sayings aresignposts towards freedom.

JUDAISM (The OLD Testament). "The Lord thyGod is a jealous God" ... "An eye for an eye and a toothfor a tooth." 1udaism stands for blind obedience to

THE LAW; the law being imposed upon the individ-ual by an external authority.

PURITANISM is focussed on the OLD Testament.Its teachings emphasise "Thou shalt NOT ... " which isprecisely the effect of the restriction of money by theMoney Power.

By H. E.

"LIBERTY is really a simple thing, although difficultto come by. It consists in freedom to choose one thingat a time." How far can you do what you want; spendtime on desired pursuits, refuse distasteful work? Peopleare free to the extent of their choice, and it needs noargument to show that everyone wants this practical andpersonal liberty.

The DEGREE of freedom available depends uponproduction. No one can choose from many alternativesuntil certain of the first necessities-food, clothing andshelter. The application of scienceto industry has resultedin the position that everyone could have enough of these;and then have freedom to choosemany other things beyondthem.

The USE to which the individual may put this freedomis his own affair. Without it the "inalienable right to life,liberty and the pursuit of happiness" has no meaning.

. ACCESS to this practical freedom is by means ofmoney. People are able to do this or that if they havemoney to foot the bill: and not otherwise.

INDIVIDUALS can only obtain money from otherindividuals; they cannot make it, except by forgery.

WAGES, SALARIES and DIVIDENDS are the only'Channelsby which individuals can get money.

WAGES and SALARIES are only received in returnfor work.

PAID EMPLOYMENT is being replaced by machines,which require no wages.

SCIENCE and INVENTION which have producedmachines are a common inheritance which should bring a<dividendof increasing freedom to everyone.

THE DISTRIBUTION of increasing leisure andfreedom entails the distribution of money (the "wages of themachine") to individuals. •

MONEY IS MADE by writing entries in books. (Alsoby printing notes and minting coin, but these are only thesmall change of finance.) The COST of making moneyis practically nothing.

BANKS create money in this way. They create it asDEBT, which must be repaid by the public.

TAXES are the repayment of this debt.This money NEED NOT be issued as debt provided

the amounts issued are related to the goods produced andsuitable measures are taken to avoid inflation. This isa simple adjustment.

THE NATIONAL DEBT~ which in 1914 was £650millions,was before the war began £8,000 millions, althoughsince then we have "paid off" £5,500 millions. The LocalGovernment Debt is £1,500 millions, nearly three times asmuch as in 1914. Income Tax is now 7/6 in the £ andRates are something else. Whitakers Almanack allotsfourteen pages to enumerate actions which the individualmay not perform without money payment, or license.

This is "SOUND FINANCE". It is also DEBT andTAXES. And it is the control of the individual by themoney system.

Saturday, December 30th, 1939. THE SOCIAL CREDITER Page 11

INSTITUTIONS and ORGANISATIONS aresecondary to individuals. They are only useful in so faras they produce results which people want.

BUREAUCRACY did not spring from the choice ofthe electorate; its result is the subjugation of the individualto the Institution.

THE BANKING SYSTEM produces Debt, a form ofslavery; not Credit, a means to freedom.

THE POLITICAL PARTIES exemplify "divide andrule." They are permeated by interests which areultimately financial, and have reduced democracy to ameaningless facade.

INDUSTRIAL and TRADING COMBINES are theproduct of financial dictation. Increasing ability of thepublic to choose goods; and of employees to refuse workwill profoundly modify such organisations.

"P.E.P." propounds a host of schemes to rule andregulate the trade and affairs of individuals. From whenceand to what end? They have one common result; andthat is Centralised Control directed by Bureaucracy.

Increase the ability of the individual TO CHOOSE,and organisations will arise to fulfil the choice. Increasethe ability TO REFUSE, and those organisations whichremain anti-social will cease to exist.

NATIONAL POLICIES AND PLANS arenecessarily governed by' considerations of money, which meansdebt; repayment; taxes. This is automatic and in thepresent system inevitable.

STUPENDOUS POWER is in the hands of those whocontrol the issue of money, for by that means they controlNational Policies.

THIS CONTROL is exercised by InternationalFinance, now centred in Wall Street, U.S.A. As shownin its effects, this power is used to enforce the Jewishphilosophy of DOMINATION by the Few; SUBMISSIONby the many. '

THESE FINANCIERS (the central core is Jewish)are implacably opposed to the surrender of control, and toits restoration to Democracy, to whom it belongs.

ALBERT A is contesting this. In 1935 she decided -to .assume the control of her own credit. Since then everyParliamentary Bill designed to implement Alberta's ownsocial credit has been blocked and annulled at the instance ofFinance, by the Federal Parliament. Social Credit, likeChristianity and Real Democracy, has not yet been tried.

THE FINAL ESTABLISHMENT OF WORLDCONTROL is the objective of International Finance."Sound finance" demands "Sound security."

SOUND SECURITY, for these financiers, means thatthe borrower of their "loans" (from costless credit) is soplaced that he must "repay" them or suffer penalty; withbankruptcy; starvation; imprisonment, etc: as the alternative.

THE LAW of all countries contains such provisions, butNations themselves can still "default" and get away withit.

FEDERAL UNION is designed to prevent this. Itis a plan for European Nations to surrender their Sovereigntyin favour of this UNION which is to have Military Powerto enforce its decisions. The overriding control of theUnion must inevitably fall to the Money Power-which will

finance it, and 'he who pays the piper calls the tune.'EUROPE IN PAWN TO WALL STREET is the

underlying objective. To this end the Money Monopoly,by means of the universally accepted (but radically defective)"sound finance" moves nations as pawns.

TO THIS END, this POWER extends support toANY organisation or plan which involves centralised controlof the individual-knowing that control of the organisationwill lie with it.

"LEADERS" political and otherwise, whose realobjective is the expansion of their own desire for domination,invariably fall for this support which confers influence,power and wealth to its exponents.

BANKERS and POLITICIANS of the rank and file,whether Jew or Gentile, do not necessarily understand theconsequences of their action, but that action must beadjudged by its effects.

Mr. CHAMBERLAIN has preserved a steadiness ofvision; a determination in action, and a persistence in keepingopen the possibility of a return to sanity which stands highin the national assets.

- THE PRESENT WAR has been forced upon us; it isvital that we preserve our national independence, both fromwar, and from internal subversive planning such as FederalUnion.

GREAT BRITAIN-the whole World-is facingissues which cannot be evaded. The present war is onephase only of events which must lead to the emergence ofa new order-"either a pyramidal organisation," having atits apex supreme power, and at its base complete subjection... or else a more complete decentralisation of initiative thanthis civilisation has ever known."

THE ACTION OF SOCIAL CREDITERS isdirected towards the latter alternative. The result will notbe domination, for rule by reality will replace the hypnotismof abstractions. And every man and woman (who is madeof flesh and blood and not of parchment) stands for freedom.

DEMOCRACY is the vehicle to implement this Will.Not the democracy of Parties and Debates, but of a Peopleunited and determined to secure the Substance of Freedom.

H. E.

ACTION NOW

A Summary by H. E. will be sent post freeon application of any subscriber.

For THE TRUTH IN ALBERTARead "Today and Tomorrow"

Send your sub. to TODAY AND TOMORROWl016-1l8th Street, Edmonton, Alberta.

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

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

Page 12 THE SOCIAL CREDITER

ANNOUNCEMENTS

Saturday, December 30th, 1939.

AND MEETINGS

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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, Blackbur.n.

BRADFORD United Democrats. All en-quiries welcome; also helpers wanted-apply R. J. Northin, 11, Centre Street,Bradford.

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I will, until further notice, contribute

£ : : { per month,____ ....:... ..:___ ..!.' per quarter,

per year,towards the funds of the Social Credit Secretariat.

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

Signature •.................•...•..•..•......•........•......•••..•..••••.•, as a donation towards

Signature ...............•.................................................

NEWCASTLE D.S.C. Group. Literature,The Social Crediter, or any other inform-ation required will be supplied by theHon. Secretary, Social Credit Group, 10,Warrington Road, Newcastle, 3.

PORTSMOUTH D.S.C. Group: Weeklymeetings every Thursday at 8 p.m., 16,Ursula Grove, Elm Grove, Southsea.

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

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.

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

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

ROOMS OR RESIDENCE, small countryhouse in pleasant rural district, SO milesNW. London. Replies to c/o "TheSocial Crediter," 12, Lord St, Liverpool;

ERRATA

The words 'curative' and 'desired'towards the end of an article, headed'The Key of the Door', which appearedin The Social Crediter last week, shouldhave been 'creative' and 'described'respectively.

EXPANSION FUNDTo the Treasurer,Social Credit Expansion Fund,c/o The Social Credit Secretariat;12, Lord Street, Liverpool. Z.

I enclose the sum of £ : : ,2S a donation towards the Social CreditExpansion Fund, to be expended bythe Administrators at the Sole Discretionof Major C. H. Douglas.

Name :..

Address .

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

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