A journal of Catholic patriots
for the Social Credit
monetary reform

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A Sound and Effective Financial System

by Louis Even

A Sound and Effective Financial SystemThe sound and effective financial system which we will discuss in this small volume is the financial system generally known under the name of Social Credit, not applied yet anywhere, but of which the principles were established by the Scottish engineer and economist C. H. Douglas, published by him for the first time in 1918, propagated since through a whole school in a great many countries.

Douglas expressed propositions which, once put into practice, would conclusively eliminate all financial problems where there is no physical problem of production nor of distribution. His system gives finance a role of service, and no more one of command, in the country's economy.

Douglas drew up his propositions with precision, but without entering into the methods of their implementation. Besides, he pointed out that these methods can be various, according to the different places, established customs, etc., and modifiable according to the results from experience, but without straying from the principles.

“Michael” and “Vers Demain”, the Social Credit journals, and the other writings from the same source, have refrained generally from entering into the domain of the possible methods of establishing a financial system in keeping with Douglas's principles.

We think that our role is, above all, to show what men must get from their economic activities. Also, the why; the reasons why they are entitled to these results.

As for the how, how to put Douglas's propositions into application to achieve these results, in our opinion, it is rather a matter for experts. Experts, not ministers nor governments; the role of the latter being rather to dictate what to do to the experts, letting them decide the how.

It is with this knowledge in mind that Douglas, addressing one day a meeting of Social Crediters, said that, according to him, it is the bankers who will establish the Social Credit financial system – of course when they win receive the orders to do so.

On another occasion, he suggested that, in order to get out of the financial rut into which individuals and governments were groaning during the 30's, the Government ought to assemble a few of the country's leading bankers, lock them up and keep them locked up, until they found a remedy to the evils which afflicted the world. (This remedy, they would have found it quickly!)

However, in the present work, we are getting a little into the how. How one could implement Douglas's propositions. How to establish a constant equilibrium between prices and the purchasing power in the public's hands. How one could finance any new production, not with savings, but with new credits.

Our goal is simply to show the possibility of the implementation of Douglas's propositions, not to present this way as the only possible one. The methods set out here are, therefore, neither dogmatic nor exclusive. But we advocate what seems to us to be more practical, less disconcerting, generously making use of the existing financial mechanisms, while purging them radically of the fundamental financial defect which diverts them from the real end of the economy: the service of human needs.

Louis Even