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money parable

------- Forwarded Message

Date: Mon, 5 Oct 1998 23:30:57 +0000
From: Paul Swann <[email protected]>
Subject: I Want The Earth Plus 5%

I Want The Earth Plus 5%

Fabian was excited as he once more rehearsed his speech for the crowd
certain to turn up tomorrow. He had always wanted prestige and power and
now his dreams were going to come true. He was a craftsman working with
silver and gold, making jewelry and ornaments, but he became
dissatisfied with working for a living. He needed excitement, a
challenge, and now his plan was ready to begin.

For generations the people used the barter system. A man supported his
own family by providing all their needs or else he specialised in a
particular trade. Whatever surpluses he might have from his own
production, he exchanged or swapped for the surplus of others.

Market day was always noise and dusty, yet people looked forward to the
shouting and waving, and especially the companionship. It used to be a
happy place, but now there were too many people, too much arguing. There
was no time for chatting - a better system was needed.

Generally, the people had been happy, and enjoyed the fruits of their

In each community a simple Government had been formed to make sure that
each person's freedoms and rights were protected and that no man was
forced to do anything against his will by any other man, or any group of

This was the Government's one and only purpose and each Governor was
voluntarily supported by the local community who elected him.

However, market day was the one problem they could not solve. Was a
knife worth one or two baskets of corn? Was a cow worth more than a
wagon Š and so on. No one could think of a better system.

Fabian had advertised, "I have the solution to our bartering problems,
and I invite everyone to a public meeting tomorrow."

The next day there was a great assembly in the town square and Fabian
explained all about the new system which he called "money". It sounded
good. "How are we to start?" the people asked.

"The gold which I fashion into ornaments and jewelry is an excellent
metal. It does not tarnish or rust, and will last a long time. I will
make some gold into coins and we shall call each coin a dollar." He
explained how values would work, and that "money" would be really a
medium for exchange - a much better system than bartering.

One of the Governors questioned, "Some people can dig gold and make
coins for themselves", he said.

"This would be most unfair", Fabian was ready with the answer. "Only
those coins approved by the Government can be used, and these will have
special marking stamped on them." This seemed reasonable and it was
proposed that each man be given an equal number. "But I deserve the
most," said the candle-maker. "Everyone uses my candles." "No", said the
farmer, "without food there is no life, surely we should get the most."
And so the bickering continued.

Fabian let them argue for a while and finally he said, "Since none of
you can agree, I suggest you obtain the number you require from me.
There will be no limit, except for your ability to repay. The more you
obtain, the more you must repay in one year's time. "And what will you
receive?" the people asked.

"Since I am providing a service, that is, the money supply, I am
entitled to payment for my work. Let us say that for every 100 pieces
you obtain, you repay me 105 for every year that you owe the debt. The 5
will be my charge, and I shall call this charge interest."

There seemed to be no other way, and besides, 5% seemed little enough
charge. "Come back next Friday and we will begin."

Fabian wasted no time. He made coins day and night, and at the end of
the week he was ready. The people were queued up at his shop, and after
the coins were inspected and approved by the Governors the system
commenced. Some borrowed only a few and they went off to try the new

They found money to be marvelous, and they soon valued everything in
gold coins or dollars. The value they placed on everything was called a
"price", and the price mainly depended on the amount of work required to
produce it. If it took a lot of work the price was high, but if it was
produced with little effort it was quite inexpensive.

In one town lived Alan, who was the only watchmaker. His prices were
high because the customers were willing to pay just to own one of his

Then another man began making watches and offered them at a lower price
in order to get sales. Alan was forced to lower his prices, and in no
time at all prices came down, so that both men were striving to give the
best quality at the lowest price. This was genuine free competition.

It was the same with builders, transport operators, accountants,
farmers, in fact, in every endeavour. The customers always chose what
they felt was the best deal - they had freedom of choice. There was no
artificial protection such as licences or tariffs to prevent other
people from going into business. The standard of living rose, and before
long the people wondered how they had ever done without money.

At the end of the year, Fabian left his shop and visited all the people
who owed him money. Some had more than they borrowed, but this meant
that others had less, since there were only a certain number of coins
issued in the first place. Those who had more than they borrowed paid
back each 100 plus the extra 5, but still had to borrow again to carry
on. The others discovered for the first time that they had a debt.
Before he would lend them more money, Fabian took a mortgage over some
of their assets, and everyone went away once moreto try and get those
extra 5 coins whichalways seemed so hard to find.

No one realised that as a whole, the country could never get out of debt
until all the coins were repaid, but even then, there were those extra 5
on each 100 which had never been lent out at all. No one but Fabian
could see that it was impossible to pay the interest - the extra money
had never been issued, therefore someone had to miss out.

It was true that Fabian spent some coins, but he couldn't possibly spend
anything like 5% of the total economy on himself. There were thousands
of people and Fabian was only one. Besides, he was still a goldsmith
making a comfortable living.

At the back of his shop Fabian had a strongroom and people found it
convenient to leave some of their coins with him for safekeeping. He
charged a small fee depending on the amount of money, and the time it
was left with him. He would give the owner receipts for the deposit.

When a person went shopping, he did not normally carry a lot of gold
coins. He would give the shopkeeper one of the receipts to the value of
the goods he wanted to buy. Shopkeepers recognised the receipt as being
genuine and accepted it with the idea of taking it to Fabian and
collecting the appropriate amount in coins. The receipts passed from
hand to hand instead of the gold itself being transferred. The people
had great faith in the receipts - they accepted them as being as good as

Before long, Fabian noticed that it was quite unusual for anyone to
actually call for their gold coins.

He thought to himself, "Here I am in possession of all this gold and I
am still a hard working craftsman. It doesn't make sense. Why there are
dozens of people who would be glad to pay me interest for the use of
this gold which is lying here and rarely called for.

It is true, the gold is not mine - but it is in my possession, which is
all that matters. I hardly need to make any coins at all, I can use some
of the coins stored in the vault."

At first he was very cautious, only loaning a few at a time, and then
only on tremendous security. But gradually he became bolder, and larger
amounts were loaned.

One day, a large loan was requested. Fabian suggested, "Instead of
carrying all these coins we can make a deposit in your name, and then I
shall give you several receipts to the value of the coins." The borrower
agreed, and off he went with a bunch of receipts. He had obtained a
loan, yet the gold remained in the strong-room. After the client left,
Fabian smiled. He could have his cake and eat it too. He could "lend"
gold and still keep it in his possession.

Friends, strangers and even enemies needed funds to carry out their
businesses - and so long as they could produce security, they could
borrow as much as they needed. By simply writing out receipts Fabian was
able to "lend" money to several times the value of gold in his
strong-room, and he was not even the owner of it. Everything was safe so
long as the real owners didn't call for their gold and the confidence of
the people was maintained.

He kept a book showing the debits and credits for each person - the
lending business was proving to be very lucrative indeed.

His social standing in the community was increasing almost as fast as
his wealth. He was becoming a man of importance, he commanded respect.
In matters of finance, his very word was like a sacred pronouncement.

Goldsmiths from other towns became curious about his activities and one
day they called to see him. He told them what he was doing, but was very
careful to emphasize the need for secrecy. If their plan was exposed,
the scheme would fail, so they agreed to form their own secret alliance.

Each returned to his own town and began to operate as Fabian had taught.

People now accepted the receipts as being as good as gold itself, and
many receipts were deposited for safe keeping in the same way as coins.
When a merchant wished to pay another for goods, he simply wrote a short
note instructing Fabian to transfer money from his account to that of
the second merchant. It took Fabian only a few minutes to adjust the

This new system became very popular, and the instruction notes were
called "checks".

Late one night, the goldsmiths had another secret meeting and Fabian
revealed a new plan. The next day they called a meeting with all the
Governors, and Fabian began. "The receipts we issue have become very
popular. No doubt, most of you Governors are using them and you find
them very convenient." They nodded in agreement and wondered what the
problem was. "Well", he continued, "some receipts are being copied by
counterfeiters. This practice must be stopped."

The Governors became alarmed. "What can we do?" they asked. Fabian
replied, "My suggestion is this - first of all, let it be the
Government's job to print new notes on a special paper with very
intricate designs, and then each note to be signed by the chief
Governor. We goldsmiths will be happy to pay the printing costs, as it
will save us a lot of time writing out receipts". The Governors
reasoned, "Well, it is our job to protect the people against
counterfeiters and the advice certainly seems like a good idea." So they
agreed to print the notes.

"Secondly," Fabian said, "some people have gone prospecting and are
making their own gold coins. I suggest that you pass a law so that any
person who finds gold nuggets must hand them in. Of course, they will be
reimbursed with notes and coins." The idea sounded good and without too
much thought about it, they printed a large number of crisp new notes.
Each note had a value printed on it - $1, $2, $5, $10 etc. The small
printing costs were paid by the goldsmiths.

The notes were much easier to carry and they soon became accepted by the
people. Despite their popularity however, these new notes and coins were
used for only 10% of transactions. The records showed that the check
system accounted for 90% of all business.

The next part of his plan commenced. Until now, people were paying
Fabian to guard their money. In order to attract more money into the
vault Fabian offered to pay depositors 3% interest on their money.

Most people believed that he was re-lending their money out to borrowers
at 5%, and his profit was the 2% difference. Besides, the people didn't
question him as getting 3% was far better than paying to have the money

The volume of savings grew and with the additional money in the vaults,
 Fabian was able to lend $200, $300, $400 sometimes up to $900 for every
$100 in notes and coins that he held in deposit. He had to be careful
not to exceed this nine to one ratio, because one person in ten did
require the notes and coins for use.

If there was not enough money available when required, people would
become suspicious, especially as their deposit books showed how much
they had deposited. Nevertheless, on the $900 in book figures that
Fabian loaned out by writing checks himself, he was able to demand up to
$45 in interest, i.e. 5% on $900. When the loan plus interest was
repaid, i.e. $945, the $900 was cancelled out in the debit column and
Fabian kept the $45 interest. He was therefore quite happy to pay $3
interest on the original $100 deposited which had never left the vaults
at all. This meant that for every $100 he held in deposits, it was
possible to make 42% profit, most people believing he was only making
2%. The other goldsmiths were doing the same thing. They created money
out of nothing at the stroke of a pen, and then charged interest on top
of it.

True, they didn't coin money, the Government actually printed the notes
and coins and gave it to the goldsmiths to distribute. Fabian's only
expense was the small printing fee. Still, they were creating credit
money out of nothing and charging interest on top of it. Most people
believed that the money supply was a Government operation. They also
believed that Fabian was lending them the money that someone else had
deposited, but it was very strange that no one's deposits ever decreased
when a loan was advanced. If everyone had tried to withdraw their
deposits at once, the fraud would have been exposed.

When a loan was requested in notes or coins, it presented no problem.
Fabian merely explained to the Government that the increase in
population and production required more notes, and these he obtained for
the small printing fee.

One day a thoughtful man went to see Fabian. "This interest charge is
wrong", he said. "For every $100 you issue, you are asking $105 in
return. The extra $5 can never be paid since it doesn't exist.

Farmers produce food, industry manufacturers goods, and so on, but only
you produce money. Suppose there are only two businessmen in the whole
country and we employ everyone else. We borrow $100 each, we pay $90 out
in wages and expenses and allow $10 profit (our wage). That means the
total purchasing power is $90 + $10 twice, i.e. $200. Yet to pay you we
must sell all our produce for $210. If one of us succeeds and sells all
his produce for $105, the other man can only hope to get $95. Also, part
of his goods cannot be sold, as there is no money left to buy them.

He will still owe you $10 and can only repay this by borrowing more. The
system is impossible."

The man continued, "Surely you should issue 105, i.e. 100 to me and 5 to
you to spend. This way there would be 105 in circulation, and the debt
can be repaid." Fabian listened quietly and finally said, "Financial
economics is a deep subject, my boy, it takes years of study. Let me
worry about these matters, and you look after yours. You must become
more efficient, increase your production, cut down on your expenses and
become a better businessman. I am always willing to help in these

The man went away still unconvinced. There was something wrong with
Fabian's operations and he felt that his questions had been avoided.

Yet, most people respected Fabian's word - "He is the expert, the
others must be wrong. Look how the country has developed, how our
production has increased - we must be better off."

To cover the interest on the money they had borrowed, merchants were
forced to raise their prices. Wage earners complained that wages were
too low. Employers refused to pay higher wages, claiming that they would
be ruined. Farmers could not get a fair price for their produce.
Housewives complained that food was getting too dear. And finally some
people went on strike, a thing previously unheard of. Others had become
poverty stricken and their friends and relatives could not afford to
help them. Most had forgotten the real wealth all around - the fertile
soils, the great forests, the minerals and cattle. They could think only
of the money which always seemed so scarce. But they never questioned
the system. They believed the Government was running it.

A few had pooled their excess money and formed "lending" or "finance"
companies. They could get 6% or more this way, which was better than the
3% Fabian paid, but they could only lend out money they owned - they did
not have this strange power of being able to create money out of nothing
by merely writing figures in books.

These finance companies worried Fabian and his friends somewhat, so they
quickly set up a few companies of their own. Mostly, they bought the
others out before they got going. In no time, all the finance companies
were owned by them, or under their control.

The economic situation got worse. The wage earners were convinced that
the bosses were making too much profit. The bosses said that their
workers were too lazy and weren't doing an honest day's work, and
everyone was blaming everyone else.The Governors could not come up with
an answer and besides, the immediate problem seemed to be to help the
poverty stricken.

They started up welfare schemes and made laws forcing people to
contribute to them. This made many people angry - they believed in the
old-fashioned idea of helping one's neighbour by voluntary effort.

"These laws are nothing more than legalised robbery. To take something
off a person against his will, regardless of the purpose for which it is
to be used, is no different to stealing." But each man felt helpless and
was afraid of the jail sentence which was threatened for failing to pay.
These welfare schemes gave some relief, but before long the problem was
back and more money was needed to cope. The cost of these schemes rose
higher and higher and the size of the Government grew.

Most of the Governors were sincere men trying to do their best. They
didn't like asking for more money from their people and finally, they
had no choice but to borrow money from Fabian and his friends. They had
no idea how they were going to repay. Parents could no longer afford to
pay teachers for their children. They couldn't pay doctors. And
transport operators were going out of business.

One by one the government was forced to take these operations over.
Teachers, doctors and many others became public servants.

Few obtained satisfaction in their work. They were given a reasonable
wage, but they lost their identity. They became small cogs in a giant

There was no room for personal initiative, little recognition for
effort, their income was fixed and advancement came only when a superior
retired or died.

In desperation, the governors decided to seek Fabian's advice. They
considered him very wise and he seemed to know how to solve money
matters. He listened to them explain all their problems, and finally he
answered, "Many people cannot solve their own problems - they need
someone to do it for them. Surely you agree that most people have the
right to be happy and to be provided with the essentials of life. One of
our great sayings is "all men are equal" - is it not?"

Well, the only way to balance things up is to take the excess wealth
from the rich and give it to the poor. Introduce a system of taxation.
The more a man has, the more he must pay. Collect taxes from each person
according to his ability, and give to each according to his need.
Schools and hospitals should be free for those who cannot afford them Š"

He gave them a long talk on high sounding ideals and finished up with,
"Oh, by the way, don't forget you owe me money. You've been borrowing
now for quite some time. The least I can do to help, is for you to just
to pay me the interest. We'll leave the capital debt owing, just pay me
the interest."

They went away, and without giving Fabian's philosophies any real
thought, they introduced the graduated income tax - the more you earn,
the higher your tax rate. No one liked this, but they either paid the
taxes or went to jail.

Merchants were forced once again to raise their prices. Wage earners
demanded higher wages forcing many employers out of business, or to
replace men with machinery. This caused additional unemployment and
forced the Government to introduce further welfare and handout schemes.

Tariffs and other protection devices were introduced to keep some
industries going just to provide employment. A few people wondered if
the purpose of the production was to produce goods or merely to provide

As things got worse, they tried wage control, price control, and all
sorts of controls. The Government tried to get more money through sales
tax, payroll tax and all sorts of taxes. Someone noted that from the
wheat farmer right through to the housewife, there were over 50 taxes on
a loaf of bread.

"Experts" arose and some were elected to Government, but after each
yearly meeting they came back with almost nothing achieved, except for
the news that taxes were to be "restructured", but overall the total tax
always increased.

Fabian began to demand his interest payments, and a larger and larger
portion of the tax money was being needed to pay him.

Then came party politics - the people started arguing about which group
of Governors could best solve the problems. They argued about
personalities, idealism, party labels, everything except the real
problem. The councils were getting into trouble. In one town the
interest on the debt exceeded the amount of rates which were collected
in a year. Throughout the land the unpaid interest kept increasing -
interest was charged on unpaid interest.

Gradually much of the real wealth of the country came to be owned or
controlled by Fabian and his friends and with it came greater control
over people. However, the control was not yet complete. They knew that
the situation would not be secure until every person was controlled.

Most people opposing the systems could be silenced by financial
pressure, or suffer public ridicule. To do this Fabian and his friends
purchased most of the newspapers, T.V. and radio stations and he
carefully selected people to operate them. Many of these people had a
sincere desire to improve the world, but they never realised how they
were being used. Their solutions always dealt with the effects of the
problem, never the cause.

There were several different newspapers - one for the right wing, one
for the left wing, one for the workers, one for the bosses, and so on.
It didn't matter much which one you believed in, so long as you didn't
think about the real problem. Fabian's plan was almost at its completion
- - - the whole country was in debt to him. Through education and the media,
he had control of people's minds. They were able to think and believe
only what he wanted them to.

After a man has far more money than he can possibly spend for pleasure,
what is left to excite him? For those with a ruling class mentality, the
answer is power - raw power over other human beings. The idealists were
used in the media and in Government, but the real controllers that
Fabian sought were those of the ruling class mentality.

Most of the goldsmiths had become this way. They knew the feeling of
great wealth, but it no longer satisfied them. They needed challenge and
excitement, and power over the masses was the ultimate game.

They believed they were superior to all others. "It is our right and
duty to rule. The masses don't know what is good for them. They need to
be rallied and organised. To rule is our birthright."

Throughout the land Fabian and his friends owned many lending offices.
True, they were privately and separately owned. In theory they were in
competition with each other, but in reality they were working very
closely together. After persuading some of the Governors, they set up an
institution which they called the Money Reserve Centre. They didn't even
use their own money to do this - they created credit against part of the
money out of the people's deposits.

This Institution gave the outward appearance of regulating the money
supply and being a Government operation, but strangely enough, no
Governor or public servant was ever allowed to be on the Board of

The Government no longer borrowed directly from Fabian, but began to use
a system of I.O.U.'s to the Money Reserve Centre. The security offered
was the estimated revenue from next year's taxes. This was in line with
Fabian's plan - removing suspicion from himself to an apparent
Government operation. Yet, behind the scenes, he was still in control.

Indirectly, Fabian had such control over the Government that they were
forced to do his bidding. He boasted, "Let me control the nation's money
and I care not who makes its laws." It didn't matter much which group of
Governors were elected. Fabian was in control of the money, the life
blood of the nation.

The Government obtained the money, but interest was always charged on
every loan. More and more was going out in welfare and handout schemes,
and it was not long before the Government found it difficult to even
repay the interest, let alone the capital.

And yet there were people who still asked the question, "Money is a
man-made system. Surely it can be adjusted to serve, not to rule?" But
these people became fewer and their voices were lost in the mad scrabble
for the non-existent interest.

The adminstrations changed, the party labels changed, but the major
policies continued. Regardless of which Government was in "power",
Fabian's ultimate goal was brought closer each year. The people's
policies meant nothing. They were being taxed to the limit, they could
pay no more. Now the time was ripe for Fabian's final move.

10% of the money supply was still in the form of notes and coins. This
had to be abolished in such a way as not to arouse suspicion. While the
people used cash, they were free to buy and sell as they chose - they
still had some control over their own lives.

But it was not always safe to carry notes and coins. Checks were not
accepted outside one's local community, and therefore a more convenient
system was looked forward to. Once again Fabian had the answer. His
organisation issued everyone with a little plastic card showing the
person's name, photograph and an identification number. When this card
was presented anywhere, the storekeeper phoned the central computer to
check the credit rating. If it was clear, the person could buy what he
wanted up to a certain amount.

At first people were allowed to spend a small amount on credit, and if
this was repaid within a month, no interest was charged. This was fine
for the wage earner, but what businessman could even begin? He had to
set up machinery, manufacture the goods, pay wages etc. and sell all his
goods and repay the money. If he exceeded one month, he was charged a
1.5% for every month the debt was owed. This amounted to over 18% per

Businessmen had no option but to add the 18% onto the selling price.
Yet this extra money or credit (the 18%) had not been loaned out to
anyone. Throughout the country, businessmen were given the impossible
task of repaying $118 for every $100 they borrowed - but the extra $18
had never been created at all.

Yet Fabian and his friends increased their standing in society. They
were regarded as pillars of respectability. Their pronouncements on
finance and economics were accepted with almost religious conviction.

Under the burden of ever increasing taxes, many small businesses
collapsed. Special licenses were needed for various operations, so that
the remaining ones found it very difficult to operate. Fabian owned and
controlled all of the big companies which had hundreds of subsidiaries.
These appeared to be in competition with each other, yet he controlled
them all. Eventually all competitors were forced out of business.
Plumbers, panel beaters, electricians and most other small industries
suffered the same fate - they were swallowed up by Fabian's giant
companies which all had Government protections.

Fabian wanted the plastic cards to eliminate notes and coins. His plan
was that when all notes were withdrawn, only businesses using the
computer card system would be able to operate.

He planned that eventually some people would misplace their cards and be
unable to buy or sell anything until a proof of identify was made. He
wanted a law to be passed which would give him ultimate control - a law
forcing everyone to have their identification number tattooed onto their
hand. The number would be visible only under a special light, linked to
a computer. Every computer would be linked to a giant central computer
so that Fabian could know everything about everyone.


The story you have read is of course, fiction. But if you found it to be
disturbingly close to the truth and would like to know who Fabian is in
real life, a good starting point is a study on the activities of the
English goldsmiths in the 16th & 17th centuries.

For example, The Bank of England began in 1694. King William of Orange
was in financial difficulties as a result of a war with France. The
Goldsmiths "lent him" 1.2 million pounds (a staggering amount in those
days) with certain conditions:

a.The interest rate was to be 8%. It must be remembered that Magna Carta
stated that the charging or collecting of interest carried the death

b.The King was to grant the goldsmiths a charter for the bank which gave
them the right to issue credit.

Prior to this, their operations of issuing receipts for more money than
they held in deposits was totally illegal. The charter made it legal.

In 1694 William Patterson obtained the Charter for the Bank of England.

© Larry Hannigan, Australia


Encyclopaedia Britannica, 14th Edition - "Banks create credit. It is a
mistake to suppose that bank credit is created to any extent by the
payment of money into the banks. A loan made by a bank is a clear
addition to the amount of money in the community."


Lord Acton, Lord Chief Justice of England, 1875 - "The issue which has
swept down the centuries and which will have to be fought sooner or
later is the People v. The Banks."


Mr Reginald McKenna, when Chairman of the Midland Bank in London - "I
am afraid that ordinary citizens will not like to be told that the banks
can, and do, create and destroy money. And they who control the credit
of the nation direct the policy of governments, and hold in the hollow
of their hands the destiny of the people.


Mr Phillip A. Benson, President of the American Bankers' Association,
June 8 1939 - "There is no more direct way to capture control of a
nation than through its credit (money) system."


USA Banker's Magazine, August 25 1924 - "Capital must protect itself in
every possible manner by combination and legislation. Debts must be
collected, bonds and mortgages must be foreclosed as rapidly as possible.
When, through a process of law, the common people lose their homes
they will become more docile and more easily governed through the
influence of the strong arm of government, applied by a central power of
wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming
an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get
them to expend their energies in fighting over questions of no
importance. Thus by discreet action we can secure for ourselves what has
been so well planned and so successfully accomplished."


Sir Denison Miller - During an interview in 1921, when he was asked if
he, through the Commonwealth Bank, had financed Australia during the
First World War for $700 million, he replied; "Such was the case, and I
could have financed the country for a further like sum had the war
continued." Asked if that amount was available for productive purposes
in this time of peace, he answered "Yes".


>From "Hand Over Our Loot, No. 2, by Len Clampett:

"There are four things that must be available for paid work to take

*The work to be done.
*The materials to do the work.
*The labor to do the work.
*The money to pay for the work to be done.

If any of those four things are missing, no paid work can take place.
It is a naturally self-regulating system. If there is work to be done,
and the material is available and the labour willing, all we have to do
is create the money. Quite simple."

Ask yourself why it was that depressions happened. All that went
missing from the community was the money to buy goods and services. The
labour was still available. The work to be done was still there. The
materials had not disappeared, and the goods were readily available in
the shops, or could be produced but for the want of money.


Extract from a letter written by Rothschild Bros of London to a New York
firm of bankers on 25 June 1863:

"The few who can understand the System (Cheque Money and Credits) will
either be so interested in its profits, or so dependent on its favours,
that there will be no opposition from that class. While on the other
hand, the great body of people mentally incapable of comprehending the
tremendous advantage that capital derives from the system, will bear its
burdens without complaint and perhaps without even suspecting that the
system is inimical (hostile, hurtful) to their interests.


The following quotation was reprinted in the Idaho Leader, USA, 26
August 1924, and has been read into Hansard twice: by John Evans MP, in
1926, and by M.D. Cowan M.P., in the Session of 1930-1931.

In 1891 a confidential circular was sent to American bankers and their
agents, containing the following statements:

"We authorise our loan agents in the western States to loan our funds on
real estate, to fall due on September 1st 1894, and at no time

On September 1, 1894, we will not renew our loans under any

On September 1st we will demand our money - we will foreclose and become
mortgagees in possession.

We can take two-thirds of the farms west of the Mississippi and
thousands of them east of the great Mississippi as well, at our own

We may as well own three-fourths of the farms of the west and the money
of the country.

Then the farmers will become tenants, as in England."


>From "Hand Over Our Loot, No. 2"

"In the United States, the issuing of money is controlled by the Federal
Reserve Board. This is not a government department but a board of
private bankers.Most of us would believe that the Federal Reserve is a
federal arm of the national governmentŠ.This is not trueŠIn 1913
President Woodrow Wilson signed the document that created the Federal
Reserve, and committed the American people to debt slavery until such
time as they awake from their slumber and overthrow this vicious

The understanding of this issue of money into the community can be best
illustrated by equating money in the economy with tickets in a railway
system. The tickets are printed by a printer who is paid for his work.
The printer never claims the ownership of the tickets Š And we can never
imagine a railway company refusing to give passengers seats on a train
because it is out of tickets. By this same token, a government should
never refuse people the access to normal commerce and trade by claiming
it is out of money."

Suppose the government borrows $10 million. It only costs the bankers a
few hundred dollars to actually produce the funds, and a little more to
do the book-keeping. Do you think it is fair that our citizens should
struggle to keep their homes and families together, while the bankers
grow fat on these profits?

Credit created by a Government-owned bank is better than credit created
by private banks, because there is no need to recover the money from
people by way of taxes, and there is no interest attached to inflate the
cost. The public work completed with the credit by the Government bank
is the asset that replaces the money created when the work is finished.

None of our problems will disappear until we correct the creation,
supply and circulation of money. Once the money problem is solved,
everything else will fall into place.

Each of us can help to turn this ship around:

*The first thing is to teach people. VERY FEW know about or understand
this information yet. Please pass this information on to those on and
off the net.

*Research this subject for yourself to increase your understanding.

*Join with others who want to return the control of government to the
people. Remember - they are 'public SERVANTS'! We are not their servant.
They should do OUR bidding.

*Regardless of your political leanings, encourage your local Member to
investigate and correct our money system. (They probably need to be
educated too!). You can do this by email, letter, telephone or personal

*Legislators receive an average of only 100 letters on any given issue.
So if you write you opinion and get others to write, say 25 letters, you
send a strong message. (Have a letter writing evening).

*To contact members of Congress or the House of Representatives go to


All You Were Never Told About the US Monetary System


Billions for the Bankers


Please advise us of other noteworthy links that you know of.

"None of our problems will disappear until we correct the creation,
supply and circulation of money. Once the money problem is solved,
everything else will fall into place."

I Want The Earth Plus 5%

"None of our problems will disappear until we correct the creation,
supply and circulation of money. Once the money problem is solved,
everything else will fall into place."

I Want The Earth Plus 5%

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