In sending us the following material, Major Jukes describes it as "rough notes for a broadcast he was preparing", to be delivered over CJOR (Dominion Network), Vancouver, B.C. The subject: WHAT HAS MONEY TO DO WITH PROSPERITY?
Prosperity should not depend upon money alone. But today, we do not believe we can have prosperity unless we have lots of money.
The dictionary does not mention money under the definition of Prosperity.
A truly prosperous man has good health, peace of mind, and is filled with hope and a zest for living. In other words, he gets the results he wants from life: good food, good home, good education, good working conditions, etc.
When we examine these, we find it is physically possible to place them within the reach of ALL. To do this, we depend primarily on our belief that in association we have the ability to produce the goods and services we need. This is our real credit.
This is the realistic approach, but we have allowed money to become the controlling mechanism in all our activities.
Money is not made by God, nor is it found in nature. It is man made. The function of money is not to make money, but to facilitate the distribution of goods and services.
Money should not be our master, but our servant.
Before, however, we can combine our labour, material, machinery and skill to produce what we want, we must have a licence to act; and this licence is provided by financial credit, the control of which we have ignorantly given to the private monopoly of banking, who can extend or withdraw financial credit as they see fit.
As the credit manager of the Federal Reserve Bank put it:
"If all bank loans were paid back, no one would have a bank deposit, and there would not be a dollar in circulation."
This is a staggering thought. We are completely dependent on the banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve.
When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible — but there it is.
By varying the volume of money, the banks create a concertina effect: out, for booms; in, for slumps.
Every slump has been artificially created by those within the banking system. The banks withdraw money irrespective of the needs of industry:
“To the banker, the satisfactory conditions of industry at any time are those which make the banking system work more smoothly. If it cannot be made to work smoothly, it must be made to work, though in the process every other interest is sacrificed."
According to Senate Document 23, the American Banks, beginning in 1929, arbitrarily reduced the income of the people from 81 billion to 67 billion bringing on the greatest slump ever recorded, causing utter ruin to millions of innocent people.
To protect ourselves, we authorized our Central Bank "to regulate credit and currency in the interests of the economic life of the nation; to control and protect the external value of the national monetary unit, and to mitigate by its influence fluctuations in the level of production, trade, prices and unemployment; and to promote the economic and financial welfare of the Dominion".
This remains so much all moonshine, unless we insist that our member in Parliament see that it is made effective.
In 1952, our production in Canada was valued at 23 billion, while our income was only 18 billion. 5 billion worth of goods exist for which there is no purchasing power.
From this disparity between purchasing power and goods available, arises almost every material economic ill from which the world suffers today, including that of war. This disparity produces the same effect as throwing one bone to two dogs, one job to two men, one contract to two firms, one market to two nations.
Another form it takes is the game of "who-beat-who" known as party politics, in which we are divided into warring gangs, fighting for the loot purposely kept insufficient by those who profit from its continuance. It is gangsterdom in infancy. The present money errors are perpetuated by the party system.
Similarly, labour is made to fight management, each demanding of the other something which neither produces, viz. money. Labour leaders are blind leaders of the blind, for instead of demanding lower prices with no loss to the producer, they demand more wages, hence higher prices, hence the need for more money to run the economy.
Labour thus plays right into the hands of the creators of money, who are only too ready to create and lend more of their money, charging usury, of course.
Usury is mathematically unsound and contrary to nature, because money being inanimate cannot breed. Usury ultimately falls on the land. The farmer, faced with increasing taxation, rapes the soil, by using chemical fertilizers, etc. In consequence, we are getting less of the vital fresh foods. We cannot build hospitals quick enough to catch those who fall, poisoned or starved by chemicals and processed foods.
Debt, taxation, rising costs and prices, mortgages, production, employment, and health, are all directly connected with the money system, and are indices of what we call a prosperous state.
As Lord Peel once said, "there is no contract, public or private, which is unaffected by the operation of the money system”.
The importance attached to money as a system of administration which can disrupt our whole economic life, has been amply demonstrated by the recent revelations of communist infiltration into the Government of our neighbours. In nearly every case, it was the Departments dealing with money which had the Communist cells.
We have seen the trouble which can be produced by such monetary agreements as Bretton Woods and Dumbarton Oaks, and by such agencies as the World Bank and the International Monetary Fund.
Domestically, we have evidence that the facts concerning the creation of money are unknown to the CBC, the PTA and the Farmers Institute. Some of the forums conducted by the CBC seem deliberately misleading.
The price system is not self-liquidating; and until it is, we will never establish a truly prosperous state.
Social Credit is the remedy.
Major A. H. JUKES, D.S.O., O.B.E.