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Free issue of MICHAEL

depreciation) would then be entered as a decrease

of wealth. The net increase in wealth would be pro-

duction minus consumption.

With very few and passing exceptions where a

country would live at the expense of another, the

production of a country surpasses its consump-

tion. The country is becoming richer. It is therefore

absurd to say that it is going into debt. The public

debt is an absurdity.

A dividend to all

And when a country is getting richer, its citizens

must certainly draw advantage from this. This is

what Social Credit recognizes, when speaking of

a dividend to all. The modern production, in fact,

is more and more the result of applied science,

of inventions, of improvements in production

techniques, and of all these things that consti-

tute a common good: a heritage transmitted and

increased from one generation to the next. Modern

production is less and less the result of individual


Hoping to distribute the production only through

the reward of human labour, is therefore contrary

to the facts. It is at the same time impossible, for

the money distributed as recompense for work can

never buy the production that contains other ele-

ments in its prices.

Seeking salary increases with decreases in

human labour, is also to change the meaning of the

word salary. It is no more a recompense for work;

it is the inclusion in the salary of the hired persons

of what should be a dividend for all, since it is the

fruit of progress and not of labour. This deviation

is a hindrance to the desired goal, since in becom-

ing a salary instead of remaining a dividend, these

additional amounts go into the prices.

Social Credit would distribute the dividend to

everyone, directly, without charging it to industry.

It would truly raise everyone’s purchasing power.

Besides being the recognition of a very product-

ive community capital, this social dividend would

at the same time be an excellent way of satisfy-

ing the primary destination of the earthly goods.

“Earth and its riches were created for all men” (Pius

XII). This is totally ignored by the present economic

regime in its financial technique of distribution.

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ty of the current system is that the total price of the

finished goods is always higher than the amount

of money distributed as purchasing power in the

course of their production. This is inherent to the

accountancy of the present system of finance

which has no mechanism to fill the gap.

The capacity to pay is not made to equal the cap-

acity to produce. Finance and reality do not work

at the same rate. Reality means an abundance of

goods easy to produce. Finance means a shortage

of money whch is hard to obtain.

To correct what is wicked

Thus the present money system is truly an

oppressive one, when it should be a system of ser-


This does not mean that we must do away with

it, but we must correct it. The application of the

financial principles known as Social Credit would

make this correction magnificently. (Do not con-

found Social Credit with the political parties which

usurped that name while pursuing other ends and

practising an adverse policy.)

The principles of Social Credit, when applied,

would make the money system a servant instead of

a master. They were discovered and enunciated by

a genius, C. H. Douglas (deceased in 1952). His first

writings on this subject were published in 1918.

Social Credit gives priority to the realities over

the financial symbols that are not realities, sym-

bols that must simply represent, and faithfully

represent, the realities. This is why Social Credit

makes a distinction between real credit (a reality)

and financial credit (a representation or symbol).

The word “credit” comes from the Latin word

“credere” and bears the idea of confidence. Even

in everyday language, to give credit to someone, is

it not to indicate that we have confidence in him?

Social Credit calls real credit of a country what

really gives confidence in that country, confidence

that one can live there without too much difficulty.

The real credit of a country is its production cap-

acity. It is its degree of possibility to produce and

deliver the goods to the needs.

And Social Credit affirms that financial credit

must be the exact representation of the real credit.

It is therefore the production capacity that must

determine the movement of finance. It is abso-

lutely not for finance to command, paralyze or limit

the production capacity.

This is why Social Credit demands the establish-

ment of a credit office that would keep an account

of national (or provincial) credit. Any production,

those of consumption goods and those of capital

goods, would then be entered as an increase of

wealth. And all consumptions (or destruction, or