by
Louis Even
__________
1.
Shipwreck survivors
An explosion had
blown their ship apart. Each one grasped the first bit of wreckage that
came to hand, And when it was over there were five left, five huddled on a
raft which the waves carried along at their will, As for the other victims
of the disaster, there was no sign of them.
Hour after long hour their eyes searched the horizon. Would some
passing ship sight them? Would their makeshift raft find its way to some
friendly shore?
Suddenly a cry
rang out: "Land! Look! Over there in the direction the waves are
carrying us!"
And as the vague
silhouette proved itself to be, in fact, the outline of a shore, the
figures on the raft danced with joy.
They were five,
five Canadians. There was Frank, the carpenter, big and energetic, It was
he who had first cried, "Land!"
hen Paul, a
farmer. You can see him on his knees, one hand against the floor, the
other gripping the mast of the raft.
Next Jim, an
animal breeder; he's the one in the striped pants, kneeling and gazing in
the direction of land.
Then there is
Harry, an agriculturist, a little on the stout side, seated on a trunk
salvaged from the wreck.
And finally Tom,
a prospector and a mineralogist; he is the merry fellow standing in the
rear with his hand on the carpenter's shoulder.
Our men often got together to talk over their affairs.
Under the simple
economic system which had developed, one thing was beginning to bother
them more and more; they had no form of money. Barter, the direct exchange
of goods for goods, had its drawbacks. The products to be exchanged were
not always at hand when a trade was discussed. For example, wood delivered
to the farmer in winter could not be paid for in potatoes until six months
later.
Sometimes one
man might have an article of considerable size which he wished to exchange
for a number of smaller articles produced by different men at different
times.
All this
complicated business and laid a heavy burden on the memory. With a
monetary system, however, each one could sell his products to the others
for money. With this money he could buy from the others the things he
wanted, when he wished and when they were available.
It was agreed
that a system of money would indeed be very convenient. But none of them
knew how to set up such a system. They knew how to produce true wealth -
goods. But how to produce money. the symbol of this wealth, was something
quite beyond them. They were ignorant of the origin of money, and needing
it they didn't know how to produce it. Certainly, many men of education
would have been in the same boat; all our governments were in that
predicament during the ten years prior to the war. The only thing the
country lacked at that time was money, and the governments apparently
didn't know what to do to get it.
5. Arrival
of a refugee
One evening when our boys were sitting on the beach going over
their problem for the hundredth time, they suddenly saw approaching, a
small boat with a solitary man at the oars.
they learned
that he was the only survivor of a wreck. His name, Olivier.
Delighted to
have a new companion they provided him with the best they had and took him
on an inspection tour of the colony.
"Even
though we're lost and cut off from the rest of the world," they told
him, "we haven't too much to complain about. The earth and the forest
are good to us. We lack only one think - money. That would make it easier
for us to exchange our products."
"Well, you
can thank Providence," replied Olivier, "because I am a banker
and in no time at all I'll set up a system of money guaranteed to satisfy
you. Then you'll have everything that people in civilization have."
A banker!... A
BANKER!... An angel coming down out of the clouds couldn't have inspired
more reverence and respect in our men. For, after all, are we not
accustomed, we people in civilization, to genuflect before bankers, those
men who control the life-blood of finance?
6.
Civilization's god
"Mr. Oliver, as our banker, your only occupation on this
island will be to look after our money; no manual labor."
"I shall,
like every other banker, carry out to complete satisfaction my task of
forging the community's prosperity."
"Mr.
Oliver, we're going to build you a house that will be in keeping with your
dignity as a banker. But in the meantime, do you mind if we lodge you in
the building we use for our get-togethers?
"That will
suit me, my friends. But first of all, unload the boat. There's paper, and
a printing press, complete with ink and type; and there's a little barrel
which I exhort you to treat with the greatest care."
They unloaded
everything. The small barrel aroused intense curiosity in our good
fellows.
"This
barrel," Oliver announced, "contains treasure beyond dreams. It
is full of... gold!"
Full of gold!
The five all but swooned. The god of civilization here on Salvation
Island! The yellow god, always hidden, yet terrible in its power; whose
presence or absence or slightest caprice could decide the very fate of all
the civilized nations!
"Gold! Mr.
Oliver, you are indeed a great banker!"
"Oh august
majesty! oh honorable Oliver! great high priest of the god, gold! accept
our humble homage and receive our oaths of fealty!"
"Yes, my
friends, gold enough for a continent. But gold is not for circulation.
Gold must be hidden. Gold is the soul of healthy money, and the soul is
always invisible. But I'll explain all that when you receive your first
supply of money."
7.
The secret burial
Before they went their separate ways for the night, Oliver asked
them one last question.
"How much
money will you need to begin with in order to facilitate trading?"
They looked at
one another then deferentially towards the banker. After a bit of
calculation and with the advice of the kindly financier, they decided that
$200 each would do.
The men parted,
exchanging enthusiastic comments. And in spite of the late hour, they
spent most of the night lying awake, their imaginations excited by the
picture of gold. It was morning before they slept.
As for Oliver,
he wasted not a moment. Fatigue was forgotten in the interests of his
future as a banker. By dawn's first light he dug a pit into which he
rolled the barrel. He then filled it in, transplanting a small shrub to
the spot about which he carefully arranged sod. It was well hidden.
Then he went to
work with his little press to turn out a thousand $1 bills. Watching the
clean new banknotes come from his press, the refugee turned banker,
thought to himself:
"My! how
simple it is to make money. All its value comes from the products it will
buy. Without produce these bills are worthless. My five naive customers
don't realize that. They actually think that this new money derives its
value from gold! Their very ignorance makes me their master."
And as evening
drew on, the five came to Oliver -- on the run.
8. Who
owns the new money?
Five bundles of new banknotes were sitting on the table.
"Before
distributing the money," said the banker, "I would like your
attention.
"Now, the
basis of all money is gold. And the gold stored away in the vault of my
bank is my gold. Consequently, the money is my money. Oh! don't look so
discouraged. I'm going to use it as you see fit. However, you'll have to
pay interest. Considering that money is scarce here, I don't think 8% is
unreasonable."
"Oh, that's
quite reasonable, Mr. Oliver."
"One last
point, my friends. Business is business, even between pals. Before you get
the money, each of you is going to sign a paper. By it you will bind
yourselves to pay both interest and capital under penalty of confiscation
of property by me. Oh! this is a mere formality. Your property is of no
interest to me. I'm satisfied with money. And I feel sure I'll get my
money and that you'll keep your property."
"That makes
sense, Mr. Oliver. We're going to work harder than ever in order to pay
you back."
"That's the
spirit. And any time you have a problem, come and see me. Your banker is
your best friend. Now, here's two hundred dollars for each of you."
And our five
brave fellows went away, their hands full of dollar bills, their heads
swimming with the ecstasy of having money.
9.
A problem in arithmetic
And so Oliver's money went into circulation on the island. Trade,
simplified by money, doubled. Everybody was happy.
And the banker
was always greeted with unfailing respect and gratitude.
But now, let's
see... Why does Tom, the prospector, look so grave as he sits busily
figuring with a pencil and paper? It is because Tom, like the others, has
signed an agreement to repay Oliver, in one year's time, the $200 plus $16
interest. But Tom has only a few dollars in his pocket and the date of
payment is near.
For a long time
he wrestled with the problem from his own personal point of view, without
success. Finally he looked at it from the angle of the little community as
a whole.
"Taking
into consideration everyone on the island, as a whole, he missed,
"are we capable of meeting our obligations? Oliver turned out a total
of $1000. He's asking in return $1080. But even if we bring him every
dollar bill on the island we'll still be $80 short. Nobody made the extra
$80. We turn out produce, not dollar bills. So Oliver can take over the
entire island since all the inhabitants together can't pay him back the
total amount of capital and interest.
"Even if a
few, without any thought for the others, were able to do so, those others
would fall. And the turn of the first spared would come eventually. The
banker will have everything. We'd better hold a meeting right away and
decide what to do about it."
Tom with his
figures in his hand, had no difficulty in proving the situation. All
agreed they had been duped by the kindly banker. They decided upon a
meeting at Oliver's.
Oliver guessed what was on their minds but put up his best front.
While he listened, the impetuous Frank stated the case for the group.
"How can we
pay you $1080 when there is only $1000 on the entire island?"
"That's the
interest, my friends. Hasn't your rate of production increased?"
"Sure, but
the money hasn't. And it's money you're asking for, nor our products. You
are the only one who can make money. You've made only $1000 and yet you
ask $1080. That's an impossibility!"
"Now
listen, fellows. Bankers, for the greater good of the community, always
adapt themselves to the conditions of the times. I'm going to require only
the interest. Only $80. You will go on holding the capital."
"Bless you,
Mr. Oliver! Are you going to cancel the $200 each of us owes you?"
"Oh no! I'm
sorry, but a banker never cancels a debt. You still owe me all the money
you borrowed. But you’ll pay me, each year, only the interest. If you
meet the interest payments faithfully each year I won't push you for the
capital. Maybe some won't be able to repay even the interest because of
the money changing hands among you. Well, organize yourselves like a
nation. Set up a system of money contributions, what we call taxes. Those
who have more money will be taxed more: the poor will pay less. See to it
that you bring me in one lump sum, the total of the amount of interest and
I'll be satisfied. And your little nation will thrive."
So our boys
left, somewhat pacified but still dubious.
11.
Oliver exults
Oliver is alone. He is deep in reflection. His thoughts run thus:
"Business
is good. These boys are good workers, but stupid. Their ignorance an
naivety is my strength. They ask for money and I give them the chains of
bondage. They give me orchids and I pick their pockets.
"True
enough, they could mutiny and throw me into the sea. But pshaw! I have
their signatures. They're honest, hardworking people were put into this
world to serve the financiers.
"Oh great
Mammon! I feel your banking genius coursing through my entire being! Oh,
illustrious master! how right you were when you said: "Give me
control of a nation's money and I won't mind who makes its laws." I
am the master of Salvation Island because I control its money.
"My souls
is drunk with enthusiasm and ambition. I feel I could rule the universe.
What I, Oliver, have done here, I can do throughout the entire world. Oh!
if only I could get off this island! I know how I could govern the world
without wearing a crown.
"My supreme
delight would be to install my philosophy in the minds of those who lead
society: bankers, industrialists, politicians, reformers, teachers,
journalists, -- all would be my servants. The masses are content to live
in slavery when the elite from among them are constituted their
overseers."
12. The
cost of living unbearable
Meanwhile things went from bad to worse on Salvation Island.
Production was up, bartering had dropped to a minimum. Oliver collected
his interest regularly. The others had to think of setting money aside for
him. Thus, money tended to clot instead of circulating freely.
Those who paid
the most in taxes complained against those who paid less. They raised the
prices of their goods to compensate for this loss. The unfortunate poor
who paid no taxes lamented the high cost of living and bought less.
Morale was low.
The joy went out of living. No one took an interest in his work. Why
should he? Produce sold poorly. When they made a sale they had to pay
taxes to Oliver. They went without things. It was a real crisis. And they
accused one another of wanting in charity and of being the cause of the
high cost of living.
One day, Harry,
sitting in his orchard, pondered over the situation. He finally arrived at
the conclusion that this "progress", born of a refugee's
monetary system, had spoiled everything on the island. Unquestionably all
five had their faults; but Oliver's system seemed to have been
specifically designed to bring out the worst in human nature.
Harry decided to
demonstrate this to his friends and to unite them for action. He started
with Jim, who was not hard to convince. "I'm no genius", he
said, "but for a long time now there's been a bad smell about this
banker's system."
One by one they
came to the same conclusion and ended by deciding upon another conference
with Oliver.
13.
Interview with the unshackle
A veritable tempest burst about the ears of the banker.
"Money's
scarce on the island, fellow, because you take it away from us! We pay you
and pay you and still owe you as much as at the beginning. We work our
heads off! We've the finest land possible and yet we're worse off than
before the day of your arrival. Debts! Debts! up to our necks in
debts!"
"Oh! now
boys, be reasonable! Your affairs are booming and it's thanks to me. A
good banking system is a country's best asset. But if it is to work
beneficially you must have faith in the banker. Come to me as you would to
a father... is it more money you want? Very well. My barrel of gold is
good for many thousands of dollars more. See, I'm going to mortgage your
latest acquisitions and lend you another thousand dollars right now."
"So! Now
our debt goes up to $2000! We are going to have twice as much interest to
pay for the rest of our lives!"
"Well, yes
-- but I'll lend you more whenever the value of your property increases.
And you'll never pay anything but the interest. You'll lump all your debts
into one -- what we call a consolidated debt. And you can add to the debt
year after year."
"And raise
the taxes year after year?"
"Obviously.
But your revenues also increase every year."
"So then,
the more the country develops each year because of our labor, the more the
public debt increases!"
"Why, of
course! Just as in your Canada -- or in any other part of the civilized
world for that matter. The degree of a country's civilization is always
gauged by the size of its debt to the bankers".
14. The
wolf devours the lambs
"And that's a healthy monetary system, Mr. Oliver?"
"Gentlemen,
all sound money is based on gold and it comes from the banks in the form
of debts. The national debt is a good thing. It keeps men from becoming
too satisfied. It subjugates governments to the supreme and ultimate
wisdom, that which is incarnate in bankers. As a banker, I am the torch of
civilization here on your little island. I will dictate your politics and
regulate your standard of living."
"Mr.
Oliver, we're simple uneducated folks, but we don't want that kind of
civilization here. We'll not borrow another cent off you. Sound money or
not, we don't want any further transactions with you."
"Gentlemen,
I deeply regret this very ill-advised decision of yours. But if you break
with me, remember, I have your signatures. Repay me everything at once --
capital and interest."
"But that's
impossible, sir. Even if we give you all the money on the island we still
won't be square with you."
"I can't
help that. Did you or did you not sign? Yes? Very well. By virtue of the
sanctity of contracts I hereby seize your mortgaged property which was
what you agreed to at the time you were so happy to have my help. If you
don't want to serve willingly the supreme authority of money then you'll
obey by force. You'll continue to exploit the island, but in my interests
and under my conditions. Now, get out! You'll get your orders from me
tomorrow."
15.
Control of the press
Oliver knew that whoever controlled the nation's money, controlled
the nation. But he knew also that to maintain that control it was
necessary to keep the people in a state of ignorance and to distract them
by a variety of means.
Oliver had
observed that of the five islanders, two were conservatives and three were
liberals. That much had evolved from their evening conversations,
especially after they had fallen into slavery. And between the
conservatives and those who were liberals, there was constant friction.
On occasions,
Harry, the most neutral of the five, considering that all had the same
needs and aspirations, had suggested the union of the people to put
pressure on the authorities. Such a union, Oliver could not tolerate; it
would mean the end of his rule. No dictator, financial or otherwise, could
stand before a people united and educated.
Consequently,
Oliver set himself to foment, as much as possible, political strife
between them.
The refugee put
his press to work turning out two weekly newspapers, "The Sun"
for the liberals and "The Star" for the conservatives.
The general
tenor of "The Sun" was: "If you are no longer master, it is
because of those traitorous conservatives who have sold out to big
business".
That of
"The Star": "The ruinous state of business and the national
debt can be traced directly to the political responsibility of those
unmentionable liberals".
And the two
factions wrangled ferociously, forgetting the one who had forged their
chains, that money master, the banker Oliver.
16. A
priceless bit of flotsam
One day, Tom, the prospector on a small beach hidden by tall grass
at one end of the island, a lifeboat, empty except for a trunk in good
condition lying in the bottom of it.
He opened the
trunk. Among the articles within, a sort of album caught his eye:
"The First Year of Social Credit". Between the covers he found
the first volume of a Social Credit publication from Canada.
Curious, Tom sat
down and began to read the volume. His interest grew; his face lit up.
"Well just
look at this!" he cried out loud. "This is something we should
have known a long time ago."
"Money gets
its value, not from gold, but from the products which that money buys.
"Simply
put, money should be a sort of accountancy, credits passing from one
account to another according to purchases and sales. The sum total of
production.
"Each time
production increases there is a corresponding increase in the amount of
money. Never at any time should interest be paid on new money. Progress is
marked, not by an increase in the public debt, but by the issuance of an
equal dividend to each individual... Prices are adjusted to the general
purchasing power by a coefficient of prices. Social Credit..."
But Tom could no
longer contain himself. He got up and set off at a run, the book in his
hands, to share this glorious discovery with his four comrades.
17.
Money-- elementary accounting
So Tom became the teacher. He taught the others what he had learned
from that God-sent Social Credit publication.
"This",
he said, "is what we can do without waiting for a banker and his keg
of gold or without underwriting a debt.
"I open an
account in the name of each of you. In the right hand column are the
credits which increase your account; to the left are the debits which
substract from your account.
"Each wants
$200 to begin with. Very well. We write $200 to the credit of each. Each
immediately has $200.
"Frank buys
some goods from Paul for $10. I deduct $10 from Frank leaving him $190. I
add $10 to Paul and he now has $210.
"Jim buys
from Paul to the amount of $8. I deduct from Jim $8 leaving him $192. Paul
now has $218.
"Paul buys
wood from Frank for $15. I deduct $15 from Paul leaving $203. I add $15 to
Frank's account and it goes back to $205.
And so we
continue; from one account to another in the same fashion as paper
banknotes go from one man's pocket to another's.
"If someone
needs money to expand production, we issue him the necessary amount of new
credit. Once he has sold his products he repays the sum to the credit
fund. The same with public works; paid for by new credits.
"Likewise,
each one's account is periodically increased but without taking credits
from anyone, in order that all may benefit from the progress society
makes. That's the national dividend. In this fashion money becomes an
instrument of service."
18. The
banker's despair
Everyone understood. The members of this little community became
Social Crediters. The following day, Oliver, the banker, received a letter
signed by the five:
"Dear sir'
without the slightest necessity you have plunged us into debt and
exploited us. We don't need you anymore to run our money system. From now
on we'll have all the money we need without gold, debts or thieves. We are
establishing, at once, the system of Social Credit on the island. The
national dividend is going to replace the national debt.
"If you
insist on being repaid, we can repay you all the money you gave us. But
not a cent more. You cannot lay claim to that which you have not
made."
Oliver was in
despair. His empire was crumbling. His dreams shattered. What could he do?
Arguments would be futile. The five were now Social Crediters: money and
credit were now not more mysterious to them than they were to Oliver.
"Oh!",
said Oliver, "these men have been won to Social Credit. Their
doctrine will spread far more quickly than mine. Should I beg forgiveness?
become one of them? I, a financier and a banker? Never! Rather, I shall
try and put as much distance between them and me as I can!"
19.
Fraud unmasked
To protect themselves against any future claim by Oliver, our five
men decided to make him sign a document attesting that he again possessed
all he had when he first arrived on the island.
An inventory was
taken; the boat, the oars, the little press and the famous barrel of gold.
Oliver had to
reveal where he had hidden the gold. Our boys hoisted it from the hole
with considerably less respect than the day they had unloaded it from the
boat. Social Credit had taught them to despise gold.
The prospector,
who was helping to lift the barrel, found it surprisingly light for gold.
If the barrel was full, he told the others, there was something in it
besides gold.
The impetuous
Frank didn't waste a moment; a blow of the axe and the contents of the
barrel were exposed.
Gold? Not so
much as a grain of it! Just rocks -- plain, worthless rocks!
Our men couldn't
get over the shock.
"Don't tell
us he could bamboozle us to this extent!"
"Were we
such muttonheads as to go into raptures over the mere mention of
gold?"
"Did we
mortgage all our possessions for a few pieces of paper based on a few
pounds of rocks? It's robbery compounded by lies!"
"To think
that we sulked and almost hated one another all because of such a fraud!
That devil!"
Furious, Frank
raised his axe. But already the banker had taken to his legs in full
flight towards the forest.
20.
Farewell to Salvation Island
After the opening of the barrel and the revelation of his
duplicity, nothing further was heard of Oliver.
Shortly after, a
ship, cruising off the normal navigation rout, noticed signs of life on
this uncharted island and cast anchor a short distance offshore.
The men learned
that the ship was en route to America. So they decided to take with them
what they could carry and return to Canada.
Above all, they
made sure to take back with them the album "The First Year of Social
Credit" which had proven to be their salvation from the hands of the
financier, Oliver, and which had illumined their minds with an
inextinguishable light.
All five
solemnly engaged themselves to get in touch with the management of this
paper, once back in Canada, and to become devoted and zealous apostles of
the cause of Social Credit in Canada.
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This page was last updated on 02/25/02.
