domenica 24 maggio 2020

Power to Create Money is Power to Tax, a Prerogative of the State


Chapter XIII (From: "Money Creators", by Gertrude Coogan, 1935
 
Power to Create Money is Power to Tax
 
Why Money Creation is Rightly the Prerogative of the State

Some will say that it is silly to imagine that money can be created and placed in the blood stream of business by the authorization of the people’s representatives. If this be true, is it not equally silly that we accept the fact that money is now created by private individuals? Is that not true ? Has it not been done in this country ever since the first violation of the Constitution took place — the first delegation of power by Congress to private individuals to coin money and regulate its value ?

Don’t be afraid to think! Our fears with respect to so-called financial "mysteries" have been created and nurtured by the Money Creators. Wide-spread public enlightenment on the subject of what money really is, and how it has been used anti-socially by a small group of world-ambitious internationalists is the one thing they fear and fight with all their power.

The entire proposition is reducible to this: Should the Congress be compelled to exercise the power given it by the Constitution to issue our money on a scientific basis, i.e., in accordance with the volume needed for the Nation’s welfare; or should the privilege be left, as now, in private hands to be manipulated for their own selfish purposes and to the Nation’s "ill-fare"?

Why should a few private individuals form a corporation, call it a Bank, and thereafter manufacture our money ? That right certainly resides primarily in the people, who granted it to Congress. Congress, in violation of the Constitution, passed it on to a privileged few.

One cannot give up what one does not possess. If that right existed primarily in the people, it resided secondarily in their Government, and only through unconstitutional delegation by Congress of that power, in the hands of a favored few. Congress cannot relinquish that power, given it by the people, through the Constitution, any more than it can give up what it does not possess.

Certainly, the right of the Government to issue money is superior to any right of the few, and the Government must withdraw from the few whatever money-manufacturing powers it has previously granted.

It is a duty we owe ourselves, our dependents and our children, to demand of our Congress that it recall the privilege from private hands and exercise its constitutional mandate.

Here the average sincere person strikes a snag which, however, has been placed in his path by the paid "economists" of the private money powers and their representatives. This is—the question of how the Government may issue money, which is value in the form of purchasing power or medium of exchange, and actually place it in the business stream without giving it away.

But what is Government ? It is the expression of the common will of the people, and it is vested with the common welfare, subject to human rights. The Government must pay its expenses. That is, any Government set up by a people must levy on its citizens for its subsistence and continued existence. This right is known as the taxing power, without which no Government can exist and perform the functions laid upon it by the people who created it and vested it with power, with the expectation that it would do what they intended.

Remember what money is. It is a demand claim on wealth. Unless you are a banker, you can get money only by producing or rendering some service to society. The money you receive is a piece of paper, inherently worthless to you, until you can exchange it with some one else for goods or services you want.

The abandonment of barter, and the existence of a medium of exchange, necessitates some group getting something for nothing, because whoever issues money creates claims on real wealth. Justice demands that the National Government be the issuer of money, for then the purchasing power created at the original source benefits all.

Money created and paid into use is interest-free at its source. Contrast money that is interest-free and paid into use by the Government, with money that is created and loaned into use by private individuals. Money loaned into use bears interest at its source, and it may be recalled and cancelled out of use, thereby cutting down the medium of exchange and causing stagnation and foreclosures. Private individuals today exercise the taxing power—they alternately dilute and increase the purchasing power of the money in use.

The Government can regulate new money issues to the annual increase in production without dilution of purchasing power.

That can be very readily judged by movements in prices. Prices can be raised to whatever level is necessary to produce a sufficient national income commensurate with the legitimate debt structure in the nation. Equitable price levels require that goods be exchanged at approximately the same levels which prevailed when the major part of the private debt structure of the nation was created. Production can be stepped up to whatever levels are necessary to absorb the labors of all people who want to work. Under an honest money system, for which the Constitution of the United States provides, there would be no such thing as mystifying business depressions.

If, in setting up a system of "civilized money," a government issues lawful money in the first instance to pay its expenses, that is eminently legitimate. Certainly it is more legitimate than to allow private interests called Banks (all of which, unfortunately, are today controlled by foreign manipulators because they are controlled by the Central Banks) to issue loans (create "money"), and collect interest upon their issues, which is allowing them to take something for nothing. Today banks have the power to create purchasing power. Besides creating purchasing power, they can collect interest thereon, and foreclose on real wealth, if a given number of dollars are not returned to the bank on a given date. Whether or not the dollars returned have a greater purchasing power than the dollars borrowed is not considered, under the present monetary "un-ethics" now in practice. Today private individuals give up valuable goods for privately created money. Thus, the ancient fraud becomes more and more apparent, as repayment becomes more and more impossible.

Another fear fostered by the money creators (in their efforts to strangle money) is the fear very commonly held that once the Government starts to issue money there will be no end to it. But let us reflect upon this libel of the people’s own chosen representatives. Let us always remember that the function of Government, and the duty of controlling the money system, must always rest in human beings. Which type of human beings shall we choose — the money creators who now have the power to manipulate the money system, or some honestly elected representatives of the people ? Statesmen would fill our Congressional Halls if the money system were honest.

The stakes are worth billions of dollars per year to the private individuals who now possess money creation powers. The reason we have many politicians instead of all statesmen, and courts of injustice instead of courts of justice, is because the money factor enters. Were the money system honest, bribery could be practically eliminated. Statesmen could then be elected to the highest offices in the Nation, the States, and the Cities. How omnipotent has been the power over this Nation by the private money creators and their wards, who have fattened on the interest collected on the loans of money they created out of nothing but a people’s ignorance and gullibility.

In 1844 Lord Beaconsfield (Benjamin D’Israeli) cited Lionel Rothschild as saying : “Can anything be more absurd than that a nation should apply to an individual to maintain its credit and, with its credit, its existence as a state, and its comfort as a people?”

Today the United States Government is paying private individuals over one billion dollars per year in interest to do exactly what those same private individuals are telling the people the Nation itself cannot do. Meekly, the citizens also pay an invisible tax levied by the money creators on the medium of exchange, which they create with pen and ink. Yet those privately owned banks have received their power through a delegation of that power by Congress. Congress received that power from the people. Of course, the delegation of that power is a flagrant violation of the Constitution of the United States.

Would the people rather entrust the power to create and destroy money, without warning and to the serious damage of the nation, to a few private individuals, or to Monetary Trustees placed in power by statesmen, who really represented the people ? The Monetary Trusteeship would issue it for value received. Banks create it for nothing—out of nothing.

Readers ! Do not think that because you own a few bonds or an insurance policy that you would not be benefited by the inauguration of an honest money system. Do not heed the cries of the "Invisible Government" — the financial exploiters who live by your wage slavery and meager incomes — that your accumulated "capital" (money) which is now invested in bonds or insurance companies, would be lessened in value if an honest money system came into being. If the affairs of this nation are allowed to continue as they now are, your bonds and life insurance will become worthless because of the deliberate manipulations of these international financiers. But if an honest money system were brought into existence, the values of all of your properties, including your homes and farms, would be restored, as well as your opportunity to obtain an adequate and decent income. Debts under the present system of control of money by the few, are but chattel slavery; debts you contracted honestly are now calling for dollars of greater purchasing power.

When ancient Greece found itself in a predicament like that of the United States today, it urged a Dictatorship on Solon—quite different from thrusting a Dictatorship on the people without any desire on their part for one. Solon’s first act was to take over the silver mines and abrogate the privilege of money issue held by the Nobility, which they had abused, just as our money masters have done in our country and, despite humanity’s deplorable condition, are still doing.

With the resumption of coinage by the Government of Greece began the era which made Greece great. We confront a similar situation and it devolves upon us whether it shall burst into a cataclysm or whether, by the guiding light of the Spirit and the good sense to return to the original provisions of our Constitution, we shall be able to convert obstacles into opportunities, and once and for all establish an honest money system and the regeneration of our national life.

When the single Gold Standard, as now executed, was conceived by the forebears of the world’s present privileged interests, Adam Smith was engaged to write The Wealth of Nations. His work has come down since the time of the French Revolution as the "Bible" of so-called classical Economics. Sadly, economics did not begin as a science at all. Adam Smith and his followers made human beings mere hirelings to the owners and controllers of gold and government debts. Later John Stuart Mill was engaged to write on the principles of currency. He, too, has been accepted through the years as an unquestioned authority on what has been known as classical, orthodox Economics. John Stuart Mill and his writings have been traced directly to the designs of a small group of people who were then planning, and are still planning, to enslave the rest of humanity. That group is still active behind the scenes directing the social discord necessary to accomplish its goal.

Single Tax advocates, now recognized as a part of the Fabian Movement, should analyze the following pertinent observations of Arthur Kitson :
Single taxers and land reformers, who see in the monopoly of land the cause of all social misery, should sit down quietly and make a simple comparison of the total amount of annual wealth production paid in rent of land with that extorted in the shape of interest on loans and capital. For, the monopoly of credit not only determines the rate of interest on all capital, but it is the chief cause of such interest.”

To permit all sincere workers to earn a decent livelihood, only one conquest should have been necessary — the forces of nature. That conquest has been so complete that men and women could all taste the fruits of economic security and leisure to devote themselves to life’s higher aims; rather than be enslaved to a constant grind to earn sufficient to sustain life. They cannot reach spiritual heights because they are enchained by a constant grind and bitter struggle to earn sustenance for the body. Having conquered natural forces, our next object of attack is the diabolical forces, which stifle our life in all of its phases and ramifications — now it is forward march or sit down and die.

Those who cling to the writings of Adam Smith, John Stuart Mill, and other so-called classical "economists" have failed to understand and realize that as man conquered the forces of nature, he should have been liberated from slavery. As nature became the slave, man should have become free — free from the everlasting terrors of economic pressure. Science has made production of food, clothing and shelter possible in volume never imagined by the industrialists of a few years ago. Today humanity cannot enjoy the real fruits of scientific progress made possible by industrialists, because of man-made restrictions imposed by deception and continued by keeping the public’s eyes filled with the dust of confusing propaganda. The money powers are clinging to the hope of enslaving the world. Such hopes should be destroyed forever. They are inhuman and un-American.

In the multitude of "economic" and "financial" counsellors, there is Babel. The reason for this is that "economics" as taught, and banking as practiced, have all the attributes of magic closely related to the tricks of the well-known Houdini.

Americans ! Is it not worth all effort you can put forth to see that every American is informed as to what an honest money system will really do for him, and to see that no American citizen is satisfied until that honest monetary system is established ? Its operation would be simple. If we do, America will have permanent prosperity beyond anything ever experienced. Corruption and "legal" rackets would practically disappear. They exist because we have a dishonest money system.

An example of how all-important the money system of a nation is, was witnessed from April to July 1933 when, by raising the price of gold, the President, despite the lies shouted ever since by the money powers and their unwitting parrots, caused raw material prices to rise and come into a more equitable relationship with the price of finished goods. If that small step in the right direction was of such tremendous influence, imagine the all-importance of making the entire money system honest.

The invisible forces behind the Government of the United States could be disposed of by the people demanding and obtaining an honest monetary system, as provided for in the Constitution of the United States. Numerous eminent men in all countries have stated unqualifiedly that “whoever controls the money system of a nation governs the nation.” Could there be any doubt as to who controls the money system of the United States ? Not only the Federal Reserve Central Banks, but the United States Treasury, and all but a few banks throughout the country, are subject to manipulation and control of policies by those who are subservient to the private money creators.

The selling to the R.F.C. of Preferred Stock (under force) in most of the banks, has practically placed every business man in the United States under control of the internationalists. The control of individual banks by the National Government ii very dangerous.

The only hope for the United States is to eliminate bank-created money forever; replace every "credit" dollar with a real legal tender dollar; keep banking separate from government, and restore control of our money creation to Congress. The present un-American control of the United States Money System could be overthrown without war; without disturbing the public peace; without public expense; without interfering with the constitutional rights of any single American; without violating but by observing moral and constitutional law; and without upsetting in any manner or taking any value away from an owner of property in any form, whether it be physical, tangible property or stocks and bonds.

However, the establishing process must be dual; real money must be increased, while private bank created money is intelligently and progressively decreased; for today each paper currency dollar "reserved" in a bank allows ten to fifteen bank credit dollars to be manufactured and loaned out. The reform should be openly accomplished with monthly statements in plain English, published by the Monetary Trusteeship, so that the price level can be intelligently, openly and properly adjusted. There is no need for secrecy: the need is for "pitiless publicity."

Humanity will never be free to enjoy the fruits of our vast natural resources; our scientific discoveries, and the willingness of millions to work peacefully, while private banks have two functions: that of creating and destroying money, as well as being custodians and lenders of money. Banks must continue to be privately owned, but they should be custodians of real money which they could lend to worthy borrowers, and only the nation should have the right and power to create money. If the power to create money were honestly managed by Monetary Trustees appointed by the representatives of the people, civilization could then actually strive for its Divinely ordained objective — universal peace and brotherhood under the Golden Rule (not of gold) and material plenty, equitably distributed among all who desire to work with brain and hand. An honest money system would free men from slavery and enable them to march toward the better things of life.

The Public must be protected from those who professionally condone and raise a smoke screen around immoral practices of cheating and destroying the medium through which all men’s labors must be exchanged. The public does not have to tolerate merchants deciding in advance whether a yard shall be 36 inches or 24 inches or, perhaps, 47 inches, according as they are sellers or buyers. Does not ethics enter into the question as to whether a dollar shall be worth 100 cents or 300 cents in actual exchangeability for physical goods ? Would-be inventors and dispensers of fraudulent weighing machines would, like immoral teachers and doctors, be placed under the jurisdiction of prison officials until they thought differently of such activities. The time has certainly arrived for Americans to come to an understanding with those who either innocently or maliciously carry on a "science" of swindling. Many economists are self-deceived, but they can be held responsible for continuing in that state after they have been given proper information.

Americans must direct their attention to the heart of the perversion — private money creation and cancellation powers. There is no need to oppose the rich as such. Indeed, real wealth can be accumulated by the many; and an adequate livelihood earned by all.

America must revert to the money provisions of our Constitution, now in abeyance; restore the prerogative of money creation powers to Congress, and enact laws which treat the issuance or destruction of money by private individuals, as high treason. Our present system has evolved sub-rosa, in violation of the Constitution. Exchangeable wealth itself, and not the question and ownership of debts, must be the factor that determines our volume of money.

Nature being enslaved, men may be free. America has opened the road to the greatest and freest development of the individual. The world money powers, through their weapons—Socialism, Fascism and Communism — are struggling to force it closed. True leaders must lead us away from the terrible economic perversion. Practical Christian leaders cannot justify themselves or their offices unless they are willing to attack the heart of this great moral problem. Beware of those spiritual leaders who "plead" for Social and Economic Justice while they refuse to attack the money problem. A practical millennium is at hand if only leaders will accept their responsibilities and arouse themselves to demand moral and economic justice for a people who have, deeply rooted in their own lives, the proper relation of the individual to his fellows, as man to man, and as between men and women.

The normal channels of education are closed to the dissemination of this truth. Why ? Because those who possess the power to pervert our economic system also control, directly or by financial pressure — by advertising volume or suggestion—many newspapers, magazines, and publishing companies. The responsibility of dissemination rests on the conscience and the shoulders of every sincere American who himself becomes informed. Individual initiative is powerful. Have we sufficient patriotism and love for our families to exercise all possible influence to win the greatest fight Americans ever waged — the restoration and preservation of our republic ?

Life should be a series of festivals, interspersed by honorable labor; instead it is a series of needless battles.”—H.V.

By setting the world a good example in the inauguration of a sound money system, the peoples of the world will become so activated in constructive work as to abhor the interruptions of war. Many a war has been precipitated in order to divert people’s minds from the money question. By taking the power of issue and the unearned interest out of the money masters’ hands, the prime incentive to war is eliminated; we can finally have peace on Earth, and the good will that springs from cooperation toward a common purpose: the ennoblement of the races.

The old slogan: “Die for Your Country,” will then become reversed to “Live for Your Country.”

Though lying for hire is now the primrose path to promotion,” there are enough courageous Americans to demonstrate to the world that “honesty is the best policy” !!

Let us lift back our monetary system on to the narrow gauge of honesty as the first step to a leap forward on the broad gauge of human progress.

The monetary system now serves only the convenience of a parasitic and upstart plutocracy practising a worldly wisdom the exact opposite of that which is the foundation of the age. It prefers the dark in times when all men seek the light, and is sowing the seeds of hatred and war in a world weary to death of strife. It is poisoning the wells of Western civilization, and science must turn from the conquest of Nature to deal with a more sinister antagonist, or lose all it has won.” — The Role of Money, by Frederick Soddy.

Now that we know this sinister antagonist—the private money powers—we must fight it with dauntless courage.

And do not for one moment think that your Congressman or Senator will not listen to you, an individual voter with the initiative to demand an interview, or that he will remain unmoved by what is demanded by you and your friends. After all, you knew him “away back when,” and his election to the councils of the Nation has not made him a superman.

Once the international money power is destroyed and the power to coin money and regulate its value is resumed by Congress, as mandated by our Constitution, all of the social experimentation and legislation of the present era; with its high priesthood of theorists, professors, "reformed" speculator stock exchange regulators, Wall Street farmers, professional social "reformers," Judas leaders, Red sympathizers, Constitution ridiculers, college boys, riot agitators, strike agitators, and destructionists in general, can be forgotten as one bad dream.

The abuses that have been sneaked into the Governmental structure of this nation, and of many States and Cities, through the machinations of the international money power to accomplish its own destructive purposes, would be quickly thrown out as relics of a barbarous and almost fatal assault upon the world’s only haven of a Government truly “of, by and for the people.”

There will never be a Utopia on earth; but conversely it is a moral certainty that the Creator never intended that the earth should be made a premature Hell.

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