Page 5 - Reflexions of African Bishops and Priests
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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system is outdated, inefficient and it is high time it principles (like a tripod)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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