Page 5 - Reflexions of African Bishops and Priests
P. 5


     u  tion, there is none in the monetary system. The
        great American industrialist added: The monetary             Social Credit is based on three
        system is outdated, inefficient and it is high time it           principles (like a tripod)
        be changed.
                             Wealth                                         1. Money issued without
            Money is not wealth, it is only a title to wealth.              interest by society
        Wealth comes from human or mechanical labour                        2. Un dividend  to every
        applied to the natural resources; we are not short                  citizen
        of wealth in Canada, there could be much more                       3. A discount on prices
        wealth  since  there  is  much  human  and  mechan-                 compensated to retailers
        ical labour not being used. Money comes from the
        makers of money, and because there is a shortage
        of it, or since it is not where it ought to be, since
        the titles to wealth are lacking, the wealth is not   from one bank account to another bank account,
        sold, production comes to a stop, poverty reigns     as registered in ledgers.
        amid plenty.                                             Bank deposits make up most of the money in
            Money is made up of metal coins, of bank         circulation. These deposits originate through the
        notes and of bank credits and deposits that are      credits granted by the banks, as loans, discounts,
        put in circulation by our signing cheques. Today,    overdrafts or the purchase of bonds. The banks
        cheques account for more than 95 percent of busi-    are the creators of money. But they destroy this
        ness transactions. Cheques simply shift credits      money by the recalling of loans, by the reduction
                                                             of overdrafts. If the creation of money exceeds its
                                                             recall, the money in circulation increases; if the re-
                                                             call of money exceeds the creation of money, the
                                                             money supply decreases. There is no equilibrium
                                                             sought between production and money. Banks do
                                                             not aim for equilibrium. Their aim is profit.
                                                                 Moreover, it is at the production level that mon-
                                                             etary  advances  are  made.  But  the  rate  at  which
                                                             production credits become consumer credits, is
                                                             less than the rate at which retail prices appear, the
                                                             latter rate being that of production.
                                                                 It is impossible to manage the present monet-
                                                             ary system when both the needs of the population
                                                             and the production capacity to satisfy those needs
                                                             are taken into account.
                                                                 The nationalization of banks would correct
                                                             nothing on its own. Changing rulers will not suffice,
                                                             we must change the policy which governs control;
                                                             in other words, control must pursue another end,
                                                             it must seek constant equilibrium between prices
                                                             and purchasing power.
                                                                       The National Credit Office
                                                                 Money cannot be controlled socially, in accord-
                                                             ance with the facts of the country’s production and
                                                             consumption, unless it is on a national level, with
                                                             respect to national accounting. There needs to be
                                                             a national monetary body, the same way there is a
                                                             judicial body to administer justice.
                                                                 Private banks can aintain their “for profit” oper-
                                                             ations, in return for the services they render, but
            The headquarters of the Louis Even Institute in   they must no longer have the right to increase
         Rougemont, Canada. Left: the House of St, Michael,   or lower the money supply. This function must
                 right: the House of the Immaculate.         be exercised exclusively by a national monetary
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