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Social Credit, to Check Centralization

on Wednesday, 01 October 1958. Posted in Social Credit

This is from a lecture by Mr. EARL MASSECAR, of Montreal, broadcasted from St. John, New Brunswick, October 2

Major Douglas, the Scot whose genius put together the body of principles known as Social Credit, once said:

"As I conceive it, Social Credit comprehends a great deal more than the money problem. Important as that is, primarily because it is a question of priority, Social Credit fundamentally involves a conception, I feel a true conception, of the relationships between individuals and their association in countries and nations, between individuals and their association in groups. (The Approach To Reality)

In other words, Social Credit is concerned with the money problem. Very much so, because it is the one, outstanding problem which must be solved before any reform can be contemplated in the economic life of society.

But Social Credit looks beyond the reform of the financial system. This reform is not an end in itself. Far more important, as Douglas says above, are the changes which would be brought about between individuals and individuals, and their groupment into societies — municipalities, nations, families of nations.


Society today is threatened by a number of evils. One of these is the danger of centralization — which leads to Socialism with its degradation of the human individual. As municipalities and provinces find themselves less and less able to finance their own activities, they are forced to rely more and more on the central government. The burden of debt, which results from our existing financial system, is forcing the smaller types of localized government out of existence. Just as it is forcing small businesses out of existence. As a result, the citizen finds that the type of government in which he can most directly participate, is rapidly being reduced to an organization whose purpose it is to make the levying of taxes easier for the central government. This deprives the citizen of his liberty. It makes him subject to regimentation. And, what is worse, if left long in such a condition, he comes to accept this lot as something quite natural. He is then an easy prey for the first dictator who comes along.

So too, in the matter of employment. Lack of money, lack of jobs, lack of employment, lack of revenue — and the individual is then forced to turn to the government for handouts — relief. And this is not given to him as something to which he has a right. No indeed. To get it, he must be dragooned into a procedure which is little short of degrading. And for those unfortunates who are for long unemployed there arrives the misfortune of growing complacent with their lot. They lose their pride. They lose their dignity and independence — two qualities which are essential in a man if he is to be a citizen: in the real sense of the word.

Again when such a condition comes about among a large part of the people, you have a situation admirably suited for the setting up of a highly centralized form of government. This is only a step away from Socialism or downright dictatorship.

Then, there are the dangers which threaten men in their association as nations. As a result of the tremendous strides made in our capacity to produce goods and the contrary lack of progress in the financial system, you have whole societies and nations facing the problem of mass unemployment. Man's genius has made him able to produce far more goods than are actually needed by the mass of the people to live decently. But the financial system as we know it, makes it impossible for men to share in these goods. According to the dictates of our present financial system, a man has no right to share in the product of a country unless he has money. He can have money only if he is employed — again the rule of the existing system. So countries strive and compete for foreign markets which will drain off excess production, bring in money and keep the people employed. And this is conducive to wars. Also, wars are a very convenient solution to the unemployment problem — men are needed for the army and for producing the materials of war.

And again — when the time arrives when the mass of the citizens are faced with unemployment because of technological progress, what will the governments do? Turn back the hands of time? Banish all forms of automation? Call a halt to progress in industry? Well, it is either that, or go to war, or regiment the people for mass charity, nationwide relief.


Now what has all this to do with Social Credit? Well, with the application of Social Credit, order would be restored in the domain of money and in consequence, in the domain of economics. Man, is the highest of God's creatures. Money, is an inanimate thing, something non-intelligent. Consequently it comes after and below man. Hence it should be at the service of man. As it is, money comes into existence as debt owed by man. He is, in fact enslaved by money. Social Credit, would make money the servant of man. The dividend would make money serve man; not man, money. As a consequence, money would be what it should be, an instrument to command the goods of our productive system. The standard of living for all could be set according to the country's ability to produce. There would be no need to fight for foreign markets. The development of the country would be marked by an increase in the prosperity of all, not by the greater indebtedness of all.

Another consequence, would be the enhancement of liberty for man. We have said that the lack of money is driving society towards Socialism and the loss of individual liberty. With the control of money in the hands of society itself, this danger would vanish. Money would be available for all new production, private or public. This money would not entail an ever-growing, unpayable debt. So, men would find themselves free of the bonds cast about them by those who control finance and money today. Man would be free from the worry about tomorrow's dinner. He would be free from the constant drain of his savings through taxes. He would be free to express himself, since he would not be dependent upon others for what he needs in order to exist. His dignity and independence as a citizen would be restored. And where a man has his dignity and independence, he will not brook that infringement of his liberty through a centralized government or through socialism.

Again — governments would become in fact, governments. Today, governments must go on their knees to the money makers in order to get money with which to make it possible for them to continue to exist. Once liberated from the nightmare of utterly impossible budgets and unpayable debts, the government will better be able to protect the interests of the people.

Then too, the party system, which is a great detriment to true democracy, would have no cause to exist. Patronage, that source of corruption would vanish. The Social Credit universal dividend would see to that.

With a reformed monetary system, production could go ahead full steam to produce all that the people required. Science would not have to fear the shadow of unemployment, since revenues would no longer be linked solely to employment. Scientific progress would gradually liberate man more and more from the necessity of obligatory toil. Man would become free to employ himself at those pursuits for which he is best suited. Each would be able to develop his talents. As a result the whole body of society would benefit.

These are some of the far-reaching consequences of a Social Credit regime, which Major Douglas foresaw. These are the implications which go far beyond a mere reform of the money system. Man, in relation to himself, to his neighbour, and men in their relationships to one another as communities and nations, would see the dawn of truly greater and nobler era.

This is what we of Social Credit are fighting for. And I mean fighting. For the forces which oppose this great ideal, are truly formidable. They will fight silently, vociferously, in any way they can, to silence the voice of the Social Credit movement. And then too, there is the great apathy of so large a part of the people; not only the apathy, but the dislike, the distrust of those who are afraid to face a new idea.

But we are not going to bow down before the sacred cow of our existing financial system. It is a vicious thing. We intend to fight it, to replace it, with a regime which respects the nobility of man as a creature of God; to realize the concepts, which Major Douglas has spoken of; to make society a place for man to live in, not a condition of slavery for him.


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