For interest-free loans

The list of towns and cities which have adopted the Union of Electors'resolution a pro- pos of interest free loans, is growing steadily.

The resolution asks the federal government to take the necessary steps to the end that the Bank of Canada will advance credits, without interest charges, to finance developments projected by municipalities, school commissions and other public bodies. The resolution also asks the provincial governments to press the federal government for the adoption of this resolution.

Following is a partial list of those municipalities which have already adopted the resolution.

Montreal-North

Pointe-aux-Trembles

Ville Jacques-Cartier

Quebec-West

Drummondville

Sherbrooke

Asbestos

Granby

Thetford Mines

Black Lake

Lake Megantic

Shawinigan Sorel

Magog

Grand'Mere

Victoriaville

Hull

Gatineau Point

Malartic

Rouyn

East Amos

Chicoutimi

Arvida

Jonquiere

Kenogami

Bagotville

Dolbeau

Alma

Bromptonville

Woburn

Tring Junction

St. Leandre

Fugereville

Ville-Marie

Bryson

Cheneville

La Dorée

St. Clotilde

South Shawinigan

St. Joseph de Sorel

Levis

Roberval

Omerville

St. Aubert

Hawkesbury

St. François de Sales

Lac des Plages

Loverlochere

Soloman

Naudville

Maniwaki

Varennes

St. Stanislas

St. Martin

St. Bruno

Arvida

Metabetchouan village

Ville St. Michel

These are a few of the multitude of communities which are reaching the breaking point under the load of taxation necessitated by our illogical and unrealistic financial system. Taxes can scarcely be increased any more; they are already scraping the bottom of the citizens' wallets. The provincial and federal governments can bring little aid since they too are facing their own excruciating financial problems and can get more money only by more and more borrowing. Which means more and more future taxes on the population to meet the growing mountain of interest charges.

And the tragic side of this story is that there is no physical obstacle preventing any community or agglomeration of communities realizing the projects and works made necessary by the needs of the people. The material is there in abundance; the willing and strong arms are there, as is witnessed by our unemployment figures at any time of the year; the genius and talent is there as is proved by the fantastic projects already realized by the people of our country.

And the needs are there - the need for new roads and highways and the renovation of the old, the need for aqueducts, sewage disposal plants, schools, hospitals, public buildings, parks playgrounds for our children, etc., etc. Yes, the needs are there and the material and labor to meet these needs are there, both in abundance.

Then what prevents a conjunction of these two, needs and the means to satisfy these needs? Nothing natural or divine. One thing and one thing only. A man-made obstacle; our financial system.

When our citizens want to carry out a public work they must pay out to the financiers money which has not been put into circulation by the creators of money who are these same financiers. For that is what interest is. When a municipality borrows in order to build a bridge or construct an aqueduct, it must borrow from the financiers the actual cost of the work, and then, later on, borrow the money with which to pay the interest charges on the first loan. As you can see, this system of financing is admirably designed to keep the people everlastingly in debt to the small and powerful group of men who run the financial system of the country as their own private business, dealing in money as a commodity which they rent to the people. And the laws of our country make it legal for them to do so.

However, as the list of municipalities above shows, more and more towns and cities are beginning to realize that the only solution to this intolerable situation is to make the bank of the people, the Bank of Canada, do that which it was set up for aid the people to realize a life of decent comfort without that sword of Damocles, fear for tomorrow's food, clothing and lodging, hanging over their heads. And how can the Bank help to do this?

By issuing credits, free of interest charges, for the financing of all public works by public corporations. For all such works are works of the people as a whole, not of private individuals only; they are realized, physically by the material which the people together produce through the labor and ingenuity of the people, again, together. Hence there is no logical reason why they should be penalized by having to pay private individuals vast sums for the right to have something which they the people themselves, and they alone, not the financiers, produce.

That is why more and more municipalities are joining those who have already passed and ac- cepted the proposal of the Union of Electors; that the Bank of Canada issue interest free credits for the financing of all projects devised by municipalities and school commissions.

E. M.

Political democracy without economic democracy is dynamite.

(The Monopoly of Credit, p. 120).