In his essay, "Billions for the Bankers--Debts for the People: An indictment of the Federal

Reserve System," the late  Pastor Sheldon Emry examines the corruption at the core of the
American monetary system.

01: Billions For The Bankers

02: Money Control
03: The Canadian Conundrum
04: The American Conundrum
05: Three Types of Conquest
06: Money Creation
07: The Great Depression
08: War Profits
09: Power to Coin Money
10: How the People Lost Control

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11: The Fractional Reserve System
12: The Inflatable Currency
13: Repayment of Loans
14: Yes, It's Political, Too!
15: Compound Interest
16: The Solution
17: No Interest No Debt
18: Stable Money
19: Citizen Control
20: Debt-Free
21: Why You Haven't Known
22: Tell The People
23: The Dawn of a New Day
24: Electoral Reform
25: Contractual Democracy
26: Economic Justice & Fairness
27: Sharing Economic Resources
28: Monetary Reform Principles
29: The World Public Opinion Poll
30: The Nature of our Economic System
31: The Capitalist View

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 Billions for the Bankers
Introduction

I want to make it quite clear to the reader that I have no ill feelings towards the people
who work in a bank either as managers or clerks. They are usually the most respected
people in the community. Therefore, when I use the word bankers, I mean the owners,
so when I criticize the banks or bankers, I am criticizing the system and not the
employees. Furthermore, the people who have given away the right to issue our
money supply, namely THE FEDERAL GOVERNMENT, are far more to blame than the
bankers, because they have legalized everything these people are doing. 

The love of money is the root of all evil

1 Timothy 6 : 10 

There are three reasons why people love money:

1.        Money will buy nearly every desire; 
2.        Money makes money, without work, namely interest; 
3.        Money is POWER and prestige, power over the lives of your fellow men. 

CANADA’S TOTAL DEBT BOTH PUBLIC AND PRIVATE FOR 1980

Federal 1979  98,461,000,000
Provincial & Local Government  1978  46,875,000,000
Corporation  1978  421,293,000,000
Consumer’s Credit  1979  37,661,000,000 
SUBTOTAL    604,290,000,000 
Residential  1980  57,950,000,000 
Total for 1980   662,240,000,000
CANADA’S TOTAL DEBT BOTH PUBLIC AND PRIVATE FOR 1992
Federal 1992  429,618,000,000
Provincial & Local Government  1992  209,230,000,000
Corporation  1989  1,536,133,000,000
Consumer’s Credit  1991  99,634,000,000
SUBTOTAL    2,274,615,000,000
Residential  1991  200,673,000,000
TOTAL for 1992   2,475,288,000,000
TOTAL FEDERAL DEBT FOR 1994 TO 1998             ----
Click here
>
TOTAL GOVERNMENT DEBT FOR 1994 TO 1998   ----> Click here

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In 1968, when Pierre Trudeau came to office, our total accumulated national debt
stood at $16.7 billion. 

We had fought two world wars, been through the depression of the 30s and all we
owed was $16.7 billion. 

After 16 years of Pierre Trudeau and the short blip that was Joe Clark, the national
debt had risen to $200 billion. 

What is especially significant about these years is not only that Trudeau left us with
this huge unpaid bill, but that he racked up the debt during a time when the
government had access to more tax revenue than any other government to that point.
Under the Trudeau Liberals, from 1977 to 1984 alone, they piled up more than $150
billion in government debt and increased spending from $43 billion a year to $109
billion. 

It doesn’t take a Chartered Financial Analyst to figure out that moving out of
controlled spending of $43 billion a year to $109 billion in seven years does not
constitute getting control of things. Add to this fact that they increased borrowing
from just over $10 billion a year to $38 billion and one gets an accurate picture of just
how disastrous the Trudeau administration was at financial management. 

After nine years of  Brian Mulroney as Prime Minister, federal spending went from
$109 billion a year to $160 billion a year, government borrowing averaged an annual
$30 billion and the national debt had risen to $429 billion.

By 1992-1993 the federal government was at the point where the interest on the
accumulated borrowing was controlling the federal budget and the lives of Canadians.
It had become the largest single federal expenditure, eating up huge chunks of tax
revenue. Annual interest was in the area of $42 billion, which was an equivalent of
nearly $200 a month for every person in the country who filed an income tax. 

It took all the money collected in corporate income tax from the GST, all the money
collected in sales taxes, all the money collected in excise duties, plus a few billion
more, just to pay the interest. 

What do these figures mean to you? You may have your house, farm, or business paid
for and have no consumer loan. But, your share of the federal, provincial and local
government debt, plus the huge corporation debt (on which you pay the interest when
you buy their product) came to 95,194$ on the 2,475,288,000,000$ principal.
 
At an annual rate of 10% this is $9,519 per person or $38,076 for a family of four in
interest payments alone.

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Money Control

In 1867 the Fathers of Confederation gave the federal government (under section 91 of the
British North America Act) the right to create Canada’s money supply. However, our federal
government has given this right to the private chartered banks. Instead of getting our
money supply for the cost of printing, our federal government now borrows the money
from the chartered banks and pays huge interest charges. Payment takes a big chunk of
the federal budget. This means all business, farmers and individuals also have to borrow
our money supply. Because money to pay the interest is never issued, we have to borrow
the money to pay the interest. Thus borrowing drives all of us, including our governments,
deeper and deeper into debt.

The borrower is the servant of the lender. So most of us, including our governments, are
servants of the lender, namely the private banks.

What the present system has done to us:

Interest on the federal debt alone per person

1914 $       1.64 
1939 - 25 YEARS LATER $     18.36 
1964 - 25 YEARS LATER $     50.52 
1986 - 22 YEARS LATER  $   883.00 
1988 -   2 YEARS LATER $1,230.00 
1990 -   2 YEARS LATER $1,584.00 
1991 -   1 YEAR   LATER $1,652.00

Impossible you say! We can not afford to pay this amount of interest!
You are so right, so we borrowed the money to pay it. This further increased the debt.

Interest payments on the federal debt alone increased a thousand times in only 77 years.
Paying for the interest on the debt means that there will be less and less welfare, health
care, pensions, etc., and finally riots in the streets and a tyrant running our government.
The total debt on which we pay the interest may never be repaid.You may say it can’t
happen here. It is happening in every country of the world where debt and interest can not
be paid.

There is only one answer to calamity and that is monetary reform.

If we do not carry out monetary reform we will continue to be run by internationalist

financiers. Most of the revenue collected by the Federal government in the form of
individual income taxes will go straight to paying the interest on the debt alone. At the rate
the debt is increasing, eventually we'll reach a point where, even if the government takes
every penny of its citizens' income via taxation, it will still not collect enough to keep up
with the interest payments. The government will own nothing, the people will own nothing,
and the banks will own everything. The New World Order will foreclose on Canada.

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It is only a matter of time before the I.M.F. and their fellow bankers refuse more credit.
Canada will then be in the same situation as the third world countries.

There is an answer

Toward a sustainable financial system for Canada by John H. Hotson, professor of

economics Waterloo University.

The most thorough going, and beneficial, reform of Canadian banking would be for the
bank of Canada to buy back from the Chartered Banks all federal debt they hold, plus
sufficient other assets to equal 100% of their demand deposits (M1a) liabilities, and then
require them hence forth to maintain 100% reserves against all deposits transferable by
check. At one stroke this reform would end our present fractional reserve or “private mints
system” by which the banks create 95% of the money we use as they make loans. The bank
of Canada, or the Department of Finance, if this were desired, would then become the sole
creator of money and the private banks would be reduced to their role of re-lending
savings deposited with them without money creation.

The Real Story of Money Control in Canada

Canadians, living in what is called one of the richest nations on

earth, seem always to be short of money. It's impossible for
many families to make ends meet unless both parents are in the
work force. Men and women hope for overtime hours or take
part time jobs evenings and weekends; children look for odd
jobs for spending money; the family debt climbs higher.

Psychologists say one of the biggest causes of family quarrels

and breakups is "arguing over money." Much of this trouble
can be traced to our present "debt-money" system.

Too few Canadians realize why the Fathers of Confederation wrote into Section 91, Clause
14 and 15 of the British North America Act:

"that Legislative Authority of Parliament shall have the power to issue “Currency
and Coinage” and “Banking Incorporation of Banks, and the issue of paper
money”.

They did this, as we will show, in the hope that it would prevent "love of money" from
destroying the Federation they had founded.

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The Canadian Conundrum

Not even the most financially orthodox mind would quarrel with the proposition that the
sovereign prerogative to create money belongs to the Canadian Parliament. You may well
ask:

"Why doesn't the government exercise this power?"

"Why does the federal government jealously guard its right to print the nation's currency
and mint the nation's coins, then borrow its credit requirements from the banks?"

"Why does it progressively pawn the assets of the people to the private debt merchants
when it has the power to create the money which the economy of the nation requires,
without the evil incidence of debt or taxation?"

In other words, the electorate of Canada have elected "servants" to Parliament, armed
them with all the sanctions of physical power, and permitted them to carry out a policy
which is nothing short than a declaration of an economic war against the interests and the
well-being of the very people who elected them.

We boast that the small businessman, the merchant, the exporter, the farmer, and the
home-owner make up the true Canada, along with Parliament which represents Canadians
everywhere.

The truth of the matter is that the Governor of the Bank of Canada has the power, almost
without limit, as he directs and facilitates the control of the economy of the nation without
even reference to Parliament....

Isues of Currency

WILLIAM LYON MACKENZIE KING:  "Until the control of the issue of currency and
credit is restored to government and recognized as its most conspicuous and sacred
responsibility, all talk of the sovereignty of Parliament and of democracy is idle and
futile...Once a nation parts with control of its currency and credit, it matters not who makes
that nation's laws...Usury once in control will wreck any nation"

WOODROW WILSON:  "A great industrial Nation is controlled by its system of credit.
Our system of credit is concentrated. The growth of the Nation and all our activities are in
the hands of a few men. We have come to be one of the worst ruled, one of the most
completely controlled and dominated Governments in the world...no longer a Government
of free opinion, no longer a Government by conviction and vote of the majority, but a
Government by the opinion and duress of small groups of dominant men."

Just before he died, Wilson is reported to have stated to friends that he had been
"deceived" and that "I have betrayed my Country". He referred to the Federal Reserve Act
passed during his presidency.

ABRAHAM LINCOLN:  "The money power preys upon the nation in times of peace, and
conspires against it in times of adversity. It is more despotic than monarchy, more insolent
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than autocracy, more selfish than bureaucracy. It denounces, as public enemies, all who
question its methods or throw light upon its crimes. The government should create, issue
and circulate all the money and currency needed to satisfy the spending powers of the
consumers.

Shortly before his assasination, Lincoln said the following:

"I see in the near future a crisis approaching that unnerves me and causes me to tremble
for the safety of my Country."

"Corporations have been enthroned, an era of corruption in high places will follow, and the
money power of the Country will endeavor to prolong its reign by working upon the
prejudices of the People, until the wealth is aggregated in a few hands, and the Republic is
destroyed."

JAMES A. GARFIELD:  "Whoever controls the volume of money in any country is

absolute master of all industry and commerce."

HORACE GREELY: "While boasting of our noble deeds, we are careful to conceal the
ugly fact that by an iniquitious money system  we have nationalized a system of
oppression which, though more refined, is not less cruel than the old system of chattel
slavery".

THOMAS A. EDISON:  "People who will not turn a shovel full of dirt on the project
(Muscel Shoals Dam) nor contribute a pound of material, will collect more money from the
United States than will the People who supply all the material and do all the work. This is
the terrible thing about interest...But here is the point: If the nation can issue a dollar bond
it can issue a dollar bill. The element that makes the bond good makes the bill good also.
The difference between the bond and the bill is that the bond lets the money broker collect
twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort
provided by the Constitution, pays nobody but those who contribute in some useful way. It
is absurd to say our Country can issue bonds and cannot issue currency. Both are
promises to pay, but one fattens the userer and the other helps the People.  If the currency
issued by the People were no good, then the bonds would be no good either. It is a terrible
situation when the Government, to insure the National Wealth, must go in debt and submit
to the ruinous interest charges at the hands of men who control the fictitious value of gold.
Interest is the invention of Satan."

SIR JOSIAH STAMP:  (president of the Bank of England in the 1920's, the second richest
man in England)  "Banking was conceived in iniquity and was born in sin. The Bankers
own the earth. Take it away from them but leave them the power to create deposits, and
with the flick of a pen they will create enough deposits to buy it back again. However, take
it away from them, and all the great fortunes like mine will disappear, and they ought to
disappear, for this would be a happier and better world to live in. But, if you wish to remain
the slaves of Bankers and pay the cost of your own slavery, let them continue to create
deposits."

MARTIN LUTHER:  Matin Luther was strong in condemning interest on money. He said in
part:

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"Meanwhile, we hand the small thieves ...Little thieves are put in the stocks, great thieves
go flaunting in gold and silk...Therefore is there, on this earth, no greater enemy of man
(after the devil) than a gripemoney, and userer, for he wants to God over all men. Turks,
soldiers and tyrants are also bad men, yet must they let the people live, and confess that
they are bad, and enemies, and do, nay, must, now and then show pity to some. But the
userer and the money-glutton, such a one would have the whole world perish of hunger
and thirst, misery and want, so far as in him lies, so that he may have all to himself, and
everyone may receive from himas from a God, and be his serf forever."

POPE PIUS XII: said in his encylical letter THE RECONSTRUCTION OF THE SOCIAL
ORDER:
"This power becomes particularily irrisistible when exercized by those who, because they
hold and control money, are able also to govern credit and determine its allotment, for that
reason supplying so to speak, the life-blood to the entire economic body, and grasping, as
it were, in their hands the very soul of production, so that no one dare breathe against their
will."

ENCYCLOPEDIA BRITANNICA: "For many people this is a difficult idea to accept. In

essence the process is simple, but the common tendency to identify "money" solely with
coin or currency stands in the way of either understanding or ready acceptance of the idea.
It is worthwhile, therefore, to examine the process in more detail and to anticipate and
reply to some of the questions commonly raised."

"The great contrast is with lending of the third type, where banks furnish neither their own
money nor the money received from others; instead they establish deposit credit against
which the bank's customer can draw checks. These deposits are created as part of the
lending operation. New circulating medium thereby comes into existence."

The American Conundrum

Not even the most financially orthodox mind would quarrel with the proposition that the
United States Congress has the power to coin money and regulate the value thereof and of
any foreign coins.  You may well ask:

"Why doesn't the U. S. Government exercise this power?"  "Why does it pawn the assets of
the American People to the private debt merchants when it has the power to create the
money which its economy requires, without the evil incidence of debt or taxation?"

In 1963, President John Kennedy wanted an end to the Federal Reserve System, which had
a strangle-hold on the United States and virtually the world. By a simple stroke of the pen,
President Kennedy would have dismissed the Federal Reserve System and ordered the
U.S. government to restore its Constitutional-mandate of controlling the money. The
preamble of the bill read as follows:

"By this bill,  Congress resumes its constitutional duty of issuing money and regulating its
value, a duty and a right which it has long been abdicated to the private banking system."

Article I, Section 8, Clause 5, of the United States Constitution provides that Congress shall
have the power to coin money and regulate the value thereof and of any foreign coins. The

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bill would have eliminated the private manufacture of money - a direct contravention of the
mandate of the American Constitution.

This bill would have allowed the U.S. to pay off its national debt and stay out of debt.

President Kenedy was dead three weeks later and the bill was never passed....

    "...their children will wake up homeless..."  Thomas Jefferson

The Federal Reserve System was established by President Woodrow Wilson in 1913. The
premise used by President Wilson and his financial advisors for the establishment of the
Federal Reserve System was to "supplant the dictatorship of the private banking
institutions" and "to stabilize the inflexibility of national bank note supplies". The previous
system of banking was "feudal" in nature, in which private bankers control communities
and could issue their own bank notes. They had little regulations concerning reserve
assets and loan policies. Banking was a patch-quilt of institutions scattered across the
face of the nation with no central policy.

With the advent of the Federal Reserve a new currency was issued - Federal Reserve notes,
which at the time were based on the gold standard. The Federal Reserve was to unite and
supervise the entire banking system, control the expansion or contraction of currency, and
regulate the flow of money to the commercial banks through the establishment of 12
Federal Reserve Banks. The Federal Reserve is controlled by private banking interest and
by Presidential appointment - but it is still a private  organization and not a government
entity. In 1913, President Wilson's creation of the Federal Reserve System established a
three-tier monetary system in the United States - the holders of money (public,
government, business and institutions; the commercial banks that borrow from the public
and issue loans; and the central bank or Federal Reserve that has a monopoly on the
issuing of money. The Federal Reserve is technically owned by the commercial banks.

Just before he died, Wilson is reported to have stated to friends that he had been
"deceived" and that "I have betrayed my Country". He referred to the Federal Reserve Act
passed during his presidency.

FEDERAL RESERVE CONTROLS THE MONEY, NOT THE GOVERNMENT

The monetary policy of the United States is the domain of the Federal Reserve Bank and
not the government. This process is in direct contradiction of the U.S. Constitution that
reposes the responsibility of the monetary system with the Congress of the United States.
On April 27, 1936, hearings were held by the House Committee on Banking and Currency.
The preamble of the bill - HR 9216 of the Seventy-fourth Congress, states, "The committee
had under consideration the bill (HR 92163 to restore to Congress its constitutional power
to issue money and regulate the value thereof; to provide monetary income to the people
of the United States at a fixed and equitable purchasing power of the dollar, ample at all
times to enable the people to buy wanted goods and services at full capacity of the
industries and commercial facilities of the United States; to abolish the practice of creating
bank deposits by private groups upon fractional reserves, and for other purposes."

The Congress declared, "Whereas the permanent welfare of the people and the protection
of the economic life of the Nation are dependent on the establishment of a monetary
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system wholly subject to the control of Congress that will promote the interests of
agriculture and labor, of industry, trade, commerce, and finance for the economic well
being of all citizens by the maintenance of an adequate supply of money with a unit of fixed
average purchasing power, which will avoid excessive expansion or disastrous
contraction." That preamble led to the body of the text. "Section 1. That it is hereby
declared to be the policy of Congress to provide such issuances of certificates of national
credit as shall be requisite so to increase the purchasing power of the consumers of the
United States as to make it conform to the capacity of the industries and people of the
United States for the production and delivery of wanted goods and services, which
capacity be declared to be the measure of national credit." The Congress attempted to
issue non-interest bearing Treasury Notes. A Federal Credit Commission linked to the
Secretary of the Treasury was the goal of Congress.

The Commission was to consist of seven commissioners appointed by the President with
approval of the U.S. Senate. U.S. citizenship was a prime requirement and they could not
have more than four from one political party. It was also made unlawful for anyone to
interfere with the commission. The concern of Congress was that banks were issuing loans
without the backing of real deposits and that it was controlling money based on the price it
attracted on international money markets or by the amount of interest they could charge.
The Congress wanted to withdraw from the banks the right to issue credit on fractional
reserves, and leave the banks the right to issue credit on account of actual deposits, which
means that permanent money will be loaned not bank manufactured money. Passing a bill
to that effect would have allowed the U. S. to pay off its national debt and stay out of debt.

PAYING OFF THE NATIONAL DEBT

In one year's time, with this bill, the national debt could have been paid, and without any
tax increases, plus it would have allowed for full employment. "Because of the unsound
practice of relying on the private manufacturing of monetary credits by private groups, you
are preparing to lay heavier taxes on the shrunken income of the people, without hope of
balancing the Budget perhaps for years to come," was the testimony of Allen B. Brown,
chairman of the New Economic Group. Remember, this testimony is in 1936. "In order to
meet the Budget deficits, this administration and the preceding one committed themselves
to a program of borrowing, so that now the national debt has doubled with every prospect
of further increase. More than half of this great sum of added debt represents merely book
figure which the banks have lent the Government. To pay for their service of writing figures
on their books and canceling the Government checks in their clearing system, the
Government has engaged to tax the American people. They must pay back the billions of
book figures with sweat and labor, with goods and services to which they are now denied
access of purchasing power for their families, and they must pay enormous debt charges."
Brown said that the bill before Congress would "put a stop to this process of privately
manufacturing monetary credit for the use of business out of added government debt."

"The banks manufacture, without borrowing it, the monetary credit which they loan to the
Government. For every dollar they themselves contribute to the loaning process, they
manufacture 10 credit dollars, and call them their own, although they base the credit
dollars on human sweat and labor and productive genius that is not their own."

The comments by Brown was a direct slap at the Federal Reserve System - that was only
23 years old, at the time. "The crying fault of our prevailing money system is its
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impermanence. It fluctuates wildly in volume, because it is debt-money, loans, and subject
alternately to the fears and the sanguine expectations and speculative propensities of its
private owners who have become the debt-masters of all business." He added, "We need to
be delivered of the curse of a money system that is not owned, as a cash-credit system, by
the American people. We want no longer a system that can at any time be cancelled out of
existence with the dumping of pledged securities and, simultaneously, with the depression
and deflation of all the physical and intangible assets of the American people."

The bill would have ended immediately the private monetary credit inflation. The Federal
Reserve can create money out of nothing, simply printing it, lending it and printing more.
You could have guessed that this bill never became law in 1936 - the banking interest was
too powerful.

KENNEDY TRIED TO CHANGE IT

In 1963, President Kennedy tried to change it, but was assassinated. When President
Lyndon Johnson took office, he immediately rescinded Kennedy's order and the Federal
Reserve won another round. Representative Charles A. Lindberg, Sr., the father of the
famous aviator, was a member of the Banking and Currency Committee. He opposed the
Federal Reserve Act and gave a speech on January 20, 1915. "The system is private,
conducted for the sole purpose of obtaining the greatest possible profits from the use of
other people's money, and in the interest of the stockholders and those allied with them."
Representative Louis T. McFadden, chairman of the Housing Banking and Currency
Committee, stated on June 10,1932, "Some people think the Federal Reserve Banks are
United States Government institutions. They are not Government institutions. They are
private credit monopolies that prey upon the people of the United States for the benefit of
themselves and their foreign and domestic swindlers; and rich and predatory money
lenders."

FOREIGN BANKERS OWN MAJORITY OF FEDERAL RESERVE

More that half the shareholdings in the Federal Reserve Bank are controlled by large New
York City banks, including National City Bank, National Bank of Commerce, First National
Bank, Chase National Bank, and Marine National Bank. When Rockefeller's National City
Bank merged with J.P. Morgan's First National Bank in 1955, the Rockefeller group owned
22 percent of the shares of the Federal Reserve Bank of New York, which in turn holds the
majority of shares in the Federal Reserve System - 53 percent. But who really owns what?
Here are the top controllers of the Federal Reserve Bank

1. Rothchild banks of London and Berlin.

2. Lazard Brothers Banks of Paris.
3. Israel Moses Seif Banks of Italy.
4. Warburg Bank of Hamburg and Amsterdam.
5. Lehman Brothers Bank of New York.
6. Kuhn, Loeb bank of New York.
7. Chase Manhattan Bank of New York, which controls all of the other 11 Federal Reserve
Banks.
8. Goldman, Sachs Bank of New York.

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This ownership combination has been challenged by the Federal Reserve Bank, but a
study of Standards and Poors will verify the ownerships. This means that the controlling
interest of our national monetary system is foreign. In 1797, John Adams wrote to Thomas
Jefferson, "All the perplexities, confusion and distress in America arise, not from defects
of the Constitution or Confederation; not from any want of honor or virtue, as much as
downright ignorance of the nature of coin, credit and circulation."

In simple terms, the United States Government borrows money from the Federal Reserve
Bank with interest.

Here is how it works: The Government wants $1 billion. The Federal Reserve prints $1
billion - based upon no hard asset - and lends it to the Government at a high interest rate.
The bank did not have the original money, it created it and made a bookkeeping entry - like
you writing yourself a check without funds and cashing it. The Federal Reserve controls
the flow of money, making it tight and creating unemployment or printing more than
actually exists and creates inflation. It is, in essence, a paper corporation, which controls
the entire economic well-being of the nation.

No Congress, no President has been strong enough to stand up to the foreign-controlled

Federal Reserve Bank.

Yet there is a catch – one that President Kennedy recognized before he was slain - the
original deal in 1913 creating the Federal Reserve Bank had a simple back-out clause. The
investors loaned the United States Government $1 billion.

And the back-out clause allows the United States to buy out the system for that $1 billion. If
the Federal Reserve Bank were demolished and the Congress of the United States took
control of the currency, as required in the Constitution, the National Debt would virtually
end overnight, and the need for more taxes and even the income tax, itself.

Thomas Jefferson was concise in his early warning to the American nation:

"If the American people ever allow private banks to control the issuance of their currency,
first by inflation and then by deflation, the banks and corporations that will grow up around
them will deprive the people of all their property until their children will wake up homeless
on the continent their fathers conquered."

Three Types of Conquest

History reveals nations can be conquered by the use of one or more of three methods.

The most common is conquest by war. In time, though, this method usually fails,
because the captives hate the captors and rise up and drive them out if they can.
Much force is needed to maintain control, making it expensive for the conquering
nation.

A second method is by religion, where men are convinced they must give their
captors part of their earnings as "obedience to God." Such a captivity is vulnerable to
philosophical exposure or by overthrow by armed force, since religion by its nature

13
 lacks military force to regain control, once its captives become disillusioned.

The third method can be called economic conquest. It takes place when nations are
placed under "tribute" without the use of visible force or coercion, so that the victims
do not realize they have been conquered. "Tribute" is collected from them in the form
of "legal" debts and taxes, and they believe they are paying it for their own good, for
the good of others, or to protect all from some enemy. Their captors become their
"benefactors" and "protectors".

Although this is the slowest to impose. It is often quite long lasting, as the captives do
not see any military force arrayed against them, their religion is left more or less
intact, they have freedom to speak and travel, and they participate in "elections" for
their rulers. Without realizing it, they are conquered, and the instruments of their own
society are used to transfer their wealth to their captors and make the conquest
complete.

In 1900 the average Canadian worker paid few taxes and had little debt. Last year,
payments on debts and taxes took more than half of what he earned. Is it possible a
form of conquest has been imposed on Canada? Read the following pages and decide
for yourself. And may God have mercy on this once debt-free and great nation.

Money is "Created", Not Grown or Built

Economists use the term "create" when speaking of the process by which money comes
into existence. New "Creation" means making something which did not exist before.
Lumber workers make boards from trees, workers build houses from lumber, and factories
manufacture automobiles from metal, glass and other materials. But in all these they did
not actually "create."

They only changed existing materials into a more usable and, therefore, more valuable
form. This is not so with money. Here, and here alone, man actually "creates" something
out of nothing.

A piece of paper of little value is printed so that it is worth a piece of lumber.

With different figures it can buy the automobile or even the house. It's value has been
"created" in the truest sense of the word.

"Creating" money is very profitable!

 

As is seen by the above, money is very cheap to make, and

whoever does the "creating" of money in a nation can make a
tremendous profit. Builders work hard to make a profit of 5 % above
their cost to build a house. 
Auto makers sell their cars for 1 percent to 2 percent above the
cost of manufacture and it is considered good business. But money
"manufactures" have no limit on their profits, since a few cents will

14
 print a $1 bill or a $10,000 bill. That profit is part of our story, but
first let consider another unique characteristic of the thing --
money, the love of which is the "root of all evil".

Adequate money supply needed

An adequate supply of money is indispensable to civilized society.

We could forego many other things, but without money, industry
would grind to a halt, farms would become only self-sustaining
units, surplus food would disappear, jobs requiring the work of
more than one man or one family would remain undone, shipping
and large movement of goods would cease, hungry people would
plunder and kill to remain alive, and all government except family or
tribe would cease to function.

An overstatement, you say? Not at all. Money is the blood of civilized society, the means of
all commercial trade except simple barter. It is the measure and the instrument by which
one product is sold and another purchased. Remove money or even reduce the supply
below that which is necessary to carry on current levels of trade, and the results are
catastrophic.

For an example, we need only look at Canada's depression of the early 1930's.

Bankers' Depression of the 1930's

In 1930 Canada did not lack industrial capacity, fertile farmlands, skilled and willing
workers or industrious families. It had an extensive and efficient transportation system in
railroads, road networks, and inland and ocean waterways. Communications between
regions and localities were the best in the world, utilizing telephone, teletype, radio, and a
well operated government mail system.

No war had ravaged the cities or the countryside, no pestilence weakened the population,
nor had famine stalked the land. The Canadian economy in 1930 lacked only one thing: an
adequate supply of money to carry on trade and commerce.
 

Bankers, the source of Canada's money and

credit, had deliberately withheld millions from
circulation by refusing loans to stable and
growing industries, stores and farmers.

At the same time they demanded payments on

existing loans so that money was rapidly taken
out of circulation and was not replaced. Canada
was in deep trouble.

Goods were available to be purchased, jobs

waiting to be done, but the lack of money
brought the country to a standstill. Twenty-five

15
 percent of the workers were laid off.

By this simple ploy Canada was put in a "depression" and bankers took possession of tens
of thousands of farms, homes, and businesses on foreclosure. The people were told,
"times are hard" and "money is short". Not understanding the system, they were cruelly
robbed of their earnings, their savings, and their property. Gloom settled over Canada and
we can only visualize the results if this had continued 20 years instead of 10.

No Money for Peace, but Plenty for War

Our "depression" lasted until 1939. World War II ended the "depression". The Canadian
Government began to spend large amounts of money into circulation for military
preparedness for ourselves and our future allies in Europe. The same Bankers who in the
early 1930's had no loans for peacetime houses, food and clothing, suddenly had unlimited
billions to lend.

A country that in 1934 could not produce food for sale, suddenly could produce war
materials against Germany!

The money supply went up, people were hired, farms sold their produce instead of plowing
it under, mines reopened, factories began to hum, both industrial and residential
construction began anew and "The Great Depression" was over!

Some politicians were blamed for it and others took credit for ending it.

The truth is the lack of money (caused by Bankers) brought on the depression, and
adequate money ended it.

The people were never told that simple truth and in this article we will endeavor to show
how those who "manufacture" and "control" our money and credit have used its profits to
"buy" our politicians and now control our Government.

16
Power to Coin and Regulate Money

When we can see the disastrous results of an artificially created shortage of money, we
can better understand why our Fathers of Confederation, who understood both money and
God's Laws, insisted on placing the power to "create" money and the power to control it
ONLY in the hands of the Federal Government.

They believed that ALL Citizens should share in the profits of its "creation" and therefore
the national government must be the only creator of money. They further believed that ALL
citizens should share in the profits of its creation and therefore the national government
must be the ONLY creator of money. They further believed that ALL Canadian citizens,
regardless of station in life, and therefore, the national government must also be, by law,
the ONLY controller of the value of money.

Since the Federal Government was the only legislative body subject to all the citizens at
the ballot box, it was, to their minds, the only safe depository of so much profit and so
much power. They wrote it out in simple, but all inclusive manner:

"The Federal Government shall have the Power to Coin Money and Regulate the Value
Thereof”.

How the People Lost Control

Instead of the Constitutional method of creating our money and putting it into circulation,
we now have an entirely unconstitutional system. This has brought our country to the brink
of disaster, as we shall see.

A historical sketch of currency and banking in Canada, tracing certain features of the
central banking stystem that have finally led up to the establishment of the Bank of Canada
appears on pages 900 - 905 of the 1938 Canada Year Book. In chronological order these
are:

1. Central Note Issue, permanently established with the issue of Dominion Notes under
legislation of 1868
   
2. The Canadian Bankers' Association, established in 1900 and designed to effect
greater co-operation amongst the banks in the issue of notes, in credit control and in
various aspects of bank activities.
   
3. The Central Gold Reserves, established by the Bank Act of 1913.
   
4. Rediscount Facilities, origined as a war measure by the Finance Act of 1914 and made
a permanent feature of the system by the Finance Act of 1923. This Act empowers the
Minister of Finance to issue Dominion Notes to the Banks on the deposit by them of
approved securities, "thus providing the banks with a means of increasing their legal
tender cash reserve at will".

17
The last line of the above should be emphasized at this point.
"thus providing the banks with a means of increasing their legal tender cash reserve at
will"

This is a most astounding statement!

What it says is that the banks can create their own reserves, and then issue BANK CREDIT
MONEY against these reserves that they themselves have created. In other words, they
now need no gold, no silver, not even paper money, but all they need are government
securities (bonds) as reserve for CREDIT MONEY and furthermore, they can buy these
reserves (bonds) with the CREDIT MONEY that they have created.

Did someone once say you can't get something for nothing?
Let him investigate our monetary system and I am sure he will change his mind.

A small group of "privileged" people who lend us "our" money have accrued to themselves
all of the profits of printing our money -- and more! Since 1913 they have "created" billions
of dollars in money and credit, which, as their own personal property, they can lend to our
government and our people at interest (usury).

"The rich get richer and the poor get poorer" had become the secret policy of the Federal
government. An example of the process of "creation" and its conversion to peoples "debt"
will aid our understanding.

Billions in Interest Owed to Private Banks

We shall start with the need for money. The

Federal Government, having spent more than it
has taken from its citizens in taxes, needs, for the
sake of illustration, $1,000,000,000. Since it does
not have the money, because it has given away
it's authority to "create" it, the Government must
go to the "creators" for the $1 billion
But, a private banking corporation doesn't just
give its money away! The Bankers are willing to
deliver $1,000,000,000 in money or credit to the
Federal Government in exchange for the
government's agreement to pay it back -- with
interest! So the government authorizes the
Treasury Department to print $1,000,000,000 in
Canadian Bonds, which are then delivered to the
GOVERNMENT OWNED BANK OF CANADA.

The BANK OF CANADA sells the BONDS to the privately owned banks. The privately
owned banks pay for the bonds by creating a bank deposit of $1 billion on behalf of the
federal government. This means that the private banks have created a billion dollars that
did not exist before. This creation cost the private banks nothing except the cost of
cancelling out the government cheques as the government spends the deposit by writing
cheques against it.
18
What are the results of this fantastic transaction? Well, $1 billion in government bills are
paid all right, but the Government has now indebted the people to the bankers for $1 billion
on which the people must pay interest! The private banks now own the billion dollars worth
of bonds and at a rate 10% the FEDERAL GOVERNMENT TAXES THE PEOPLE OF CANADA
year after year to pay the interest.

By 1992, the federal government had piled up a mountainous debt of  $429,618,000,000 and
the interest due on this debt was  $42,500,000,000 yearly or a per capita interest debt of 
$1,652. This means a family of four is taxed $6,608 a year just to pay the interest.

Most of the income taxes that we pay as individuals now goes straight into the hands of
the bankers, just to pay off the interest alone, with no hope of ever paying off the principle.
Our children will be forced into servitude.

The Fractional Reserve

Most of the income taxes that we pay as individuals now goes straight into the hands of
the bankers, just to pay off the interest alone, with no hope of ever paying off the principle.
Our children will be forced into servitude.

You say, "This is terrible!" Yes, it is, but we have shown only part of the sordid story.
Under the FRACTIONAL RESERVE SYSTEM, the private banks can now take the
GOVERNMENT BOND that that they have bought by creating a deposit and use it as
reserve to create more bank deposits.

How much can they create?

Under the 1967 Bank Act they could create 16 times the amount of their reserve.

On page 10 of the book called "HOW THE CANADIAN MONEY SUPPLY IS AFFECTED BY
VARIOUS BANKING AND FINANCIAL TRANSACTIONS" published by the Royal Bank of
Canada, they themselves show how this is done.

Imagine what this means. It means that with one dollar of reserve with the Bank of Canada,
the private bank can loan out $15 dollars of cheque book money and collect the interest on
the loan. At 15%, this gives them $2.25 of interest on every dollar they hold in reserve.

This is still not all!

On November 19, 1980, BILL C-6 was passed in the Canadian House of Commons, which
gave a further concession to the private banks. WHEREAS, the 1967 BANK ACT required a
reserve of 4% on notice deposits and 12% on demand deposits:

BILL C-6 reads as follows:

 

208. (1) A bank shall maintain a primary reserve in the form of:
(a) coins with a face value of two dollars or less that are
 
current      under the Currency and Exchange Act

19
  (b) Bank of Canada notes, or
(c) deposits in Canadian currency, with the Bank of Canada,
  and such reserve shall not be less on the average during any
month than an amount equal to the aggregate of
(d) ten per cent of such of its deposit liabilities as are
 
Canadian currency demand deposit liabilities,
(e) two per cent of such of its deposit liabilities as are
 
Canadian currency notice deposit liabilities.

This reduction in reserves will enable the private banks to issue from 20 to 25 times their
reserves rather than the 16 times - the amount they could under the 1967 BANK ACT.

This lowering of the reserves will mean that the banks can issue at least 25% more money
than they were able to issue under the 1967 BANK ACT. This increase will be needed to
replace the money withdrawn by ever increasing interest, repayment of loans and to make
up for the extra money needed because of inflation. This of course will increase bank
profits.

You may ask why the banks do not show more profits if it is such a lucratif business. Of
course they do show tremendous profits year after year. They have been showing an
increase of profits of anywhere from 20 to 35% for a number of years. But not all of the
profits of banks are reported.

AS FAR BACK AS 1934 BANKS WERE HIDING RESERVES.

Hiding of Bank Reserves -

The following excerpt is from the COMMITTEE ON BANKING AND COMERCE, April 19,
1934:
(before they were on their guard):

Evidence of  Mr. Jackson Dodds of the Bank of Montreal and President of the Bankers'
Association, (at the time), appearing before the COMMITTEE ON BANKING AND
COMERCE:  

Question to Mr What other controlled companies are there?

Dodds:
Mr. Dodds: We have the St. James Land Company Limited with a capital $200,000, owned entirely by
the Bank of Montreal and carried at $1.00. The officers are officers of the bank. The
company was incorporated by the Molsons Bank, which deeded over to it that portion of
their property known as Lot "B", corner of St. Peter and Notre Dame streets, Montreal.
   
The CHAIRMAN: The bank owned the stock?
WITNESS: Yes.
   
Mr. Power: I suppose the Molsons Bank had a controlled company to look after its real estate?
WITNESS: Yes, the property being the head office of the bank.
   
Mr. Power: They only had one property?
WITNESS: Yes.

20
   
Mr. Power: That is now owned and controlled by the Bank of Montreal?
WITNESS: Owned and controlled by the Bank of Montreal.
   
 Mr. Power: The directors are the directors of the Bank?
No. The directors are officers of the bank. The secretary of the bank is the
WITNESS:
president.
   
Mr. Power: Who has the stock?
The bank owns the whole of the stock, which is only $200,000 and is carried on the
WITNESS:
books at $1

Bookkeeping entries -

Evidence of  Mr. Graham Towers: Governor of the Bank of Canada, (at the time), appearing in 1939,
before the COMMITTEE ON BANKING AND COMERCE:  - Government Printing Bureau, Ottawa
- 

Question to Mr Nintey-five percent of all our volume of business is being done with what we call exchange of bank
Towers: deposits - that is. simply bookkeeping entries in banks against which people write cheques?
Mr. Towers: I think that is a fair statement. (p.223)

Issue Of Currency - 

Question to Mr Twelve percent of the money in use in Canada is issued by the Government through the Mint and
Towers: the Bank of Canada, and 88 percent  in issued by the merchant banks of Canada on the reserves
issued by the Bank of Canada??
Mr. Towers: Yes.
   
Question to Mr But if the issue of currency and money is a high prerogative of government, then that high
Towers: prerogative has been transfered to the extent of 88% from the Government to the merchant
banking sysstem?
Mr. Towers: Yes.

How Governments Get Money -  

Question to Mr How do governments get money ?

Towers:
Mr. Towers: A government can find money in three ways: by taxation, or they might find it by borrowing
the savings of the people, or they might find it by actions which is allied with an expansive
monetary policy, that is borrowing which creates additional money in the process. (p.29)

Purchase Of Government Bonds By Banks -  

Question to Mr A banker can purchase a Dominion Government Bond by accepting from the government, we will
Towers: say, a bond for $1000 and giving to the Government a deposit in the Bank for $1000?
Mr. Towers: Yes.
   
Question to Mr ...what the Government receives is a credit entry in the banker's book, showing the banker
Towers: as a creditor to the Government to the extent of $1000
21
Mr. Towers: Yes.
   
Question to Mr
Towers:
And, in law, all that the bank has to hold in the way of cash to issue that deposit is 5%?
Mr. Towers: Yes. (p.76)

Power To Change The Banking System -  

Question to Mr Will you tell me why a government with the power to create money should give that power away to
Towers: a private monopoly and then borrow that which parliament can create itself, back at interest, to the
point of national bankruptcy?
Mr. Towers: We realize, of course, that the amount which is paid provides part of the operating costs of
the banks and some interest on deposit. Now, if parliament wants to change the form of
operating the banking system, then certainly that is within the powers of parliament. (p.394)

Why it is called "INFLATABLE CURRENCY"

The only way new money goes into circulation in Canada under this system is when
someone borrows it from a Banker. When people are confident of success they borrow
much money, which increases the money supply and all seem to prosper for a while. Then
as they pay off their loans, the available money supply shrinks rapidly, and money
becomes "scarce". Since they must always take more out of circulation than they put in
(because of interest and other charges), only other people borrowing still more can keep a
medium of exchange available to the country. An example will aid our understanding:

IF $40,000 IS BORROWED:   $126,432 MUST BE PAID BACK

When a citizen goes to a Banker to borrow $40,000 to purchase a home or a farm, the
Banker's clerk first requires the citizen to assign to the Banker the right of ownership of the
property if the borrower is unable to make the payments. The Banker's clerk then gives the
borrower a $40,000 check, or he signs a $40,000 deposit slip crediting the borrower's
checking account with a $40,000 deposit. The borrower in turn writes the necessary checks
for the builder, seller, subcontractors, etc. (who in turn write checks), thereby putting
$40,000 of "checkbook money" into circulation. However, on a 30-year mortgage with
15.25% interest, the Banker wants $498.97 a month paid to himself or a total of $179,292.
The buyer must take that $179,292 out of circulation, making the amount in circulation
$139,292 less than when he purchased the home.

The Banker has not produced anything of value (except the slip of paper called a check or
a deposit slip), yet he now has $139,292 more than he had before (minus a few hundred
dollars of clerical and office costs) and the people, as a whole, have $139,292 less.

Small loans are disastrous too

For those who haven't quite grasped the impact of the above, let us consider a small auto
loan for only 3 years.

Step 1 :  Citizen borrows $3,000 and pays it into circulation (it goes to the dealer, the
factory, the miner, etc.) and signs a note agreeing to pay back to the Banker $3,600.

22
Step 2 :  Citizen continues to work and pays $100 per month to the Banker. In 36 months,
he has taken $3,600 out of circulation and paid it to the bank, where it remains until
someone else borrows it out again. Net result? $600 less money in circulation than before
he made the loan. Since money requirements, as is well known, INCREASE with increased
population and production, and paying off any loan DECREASES the available supply of
money, it is obvious that we would quickly run out of money completely UNLESS MORE AND
MORE PEOPLE BORROW MORE AND MORE MONEY TO KEEP MONEY IN CIRCULATION!

The cost to them?  Practically nothing

In the tens of millions of transactions made each year like those above, little actual money
changes hands, nor is it necessary thta it do so. 95% of all "cash" transactions in Canada
are by check, so the Banker is perfectly safe in "creating" that so-called "loan" by writing
the check or the deposit slip, not against actual money, but against YOUR PROMISE TO PAY IT
BACK!  The only cost to him is the paper, ink, and a few dollars in salaries and office costs
for each transaction. It is "check-kiting" on an immense scale.

This means that the banks get this money for only the cost of issuing this credit and the
bank's expense of cancelling out the cheques. They do not pay depositers a share of this
interest as the Credit Unions do.This means a tremendous profit on the first use of this
money.

This benefit should go to the people of Canada rather than to the private banks.

This is how 95% of our money is created. The private banks create a bank deposit against
which the customer can write cheques. These cheques move goods and services the same
way as dollar bills. The amount of real money in Feb 1980 was $8,952,000,000 in dollar bills.
The amount of bank deposit cheque money was $135,345,000,000 and there was
approximately 14 times as much chequing money as there was real money (dollar bills).

The Repayment of Loans

The "Calling of Loans" or "Tight Money Policy" was discussed previously when we
discussed the creation of money and how the repayment destroys it. However, a brief
refresher may be in order. We said that when loans are repaid to the bank, the money
supply is reduced. This is illustrated in the following picture:
 

This illustration should give the readers

a good idea of how drastically the money
supply can be affected by calling loans.
The calling of loans was one of the main
reasons in creating the Great
Depression.

In 1929 the total money supply per capita

was $302.00  

1929 $302.00
1933 236.00
23
 1934 237.00
1935 247.00
1936 262.00
1937 273.00
1938 274.00

This is an average increase of $7.65 per year. However, the war broke out in 1939.
This started a war economy. By 1945 the per capita money supply had risen to
$531.00 and by 1969 it had risen to $1,571 per person.

There is no more damaging evidence available that the MONEY MONOPOLISTS were
the culprits that were responsible for the Great Depression. It also clearly shows the
power that these Financial Monopolists wield over the economy and therefore over
the lives of the people.

The truth is that periodic withdrawal of money through interest payments will
inexorably transfer all wealth in the country to the receiver of interest. Imagine
yourself in a poker or dice game where everyone must buy the chips from a "banker"
who does not risk chips in the game, but watches the table and every hour reaches in
and takes 10% of all the chips on the table. As the game goes on, the amount of chips
in the possession of each player will go up and down with his "luck". However, the
TOTAL number of chips available to play the game (carry on trade and business) will
decrease.

The game will get low on chips and some will run out. If they want to continue to play,
they must buy or borrow them from the "banker". The "banker" will sell (lend) then
ONLY if the player signs a "mortgage" agreeing to give the "banker" some real
property (car, home, farm, business, etc.) if he cannot make periodic payments to pay
back all of the chips plus some EXTRA ones (interest). The payments must be made
on time, whether he wins (makes a profit) or not.

It's easy to see that no matter how skillfully they play, eventually the "banker" will end
up with all of his original chips back, and except for the very best players, the rest, if
they stay in long enough, will lose to the "banker" their homes, their farms, their
businesses, perhaps even their cars, watches, rings and the shirts off their backs!

Our real-life situation is MUCH WORSE than any poker game. In a poker game none is
forced to go-into-debt, and anyone can quit at any time and keep whatever he still has.
But in real life, even if we borrow little ourselves from the Bankers, the local,
provincial and Federal governments borrow billions in our name, squander it, then
confiscate our earnings from us and pay it back to the Bankers with interest. We are
forced to play the game and none can leave except by death. We pay as long as we
live and our children pay after we die. If we cannot pay, the same government sends
the police to take our property and give it to the Bankers.

The Bankers risk nothing in the game; they just collect their percentage and "win it
all". In Las vegas and at other gambling centers, all games are "rigged" to pay the
owner a percentage, and they rake in millions.
24
 Canada's monetary system "game" is also "rigged" and it pays off in billions!

In recent years Bankers added real "cards" to their game. "Credit" cards are promoted
as a convenience and a great boon to trade. Actually they are ingenious devices by
which Bankers collect 2% to 5% of every retail sale from the seller and 18% interest
from buyers. A real "stacked" deck.

It's Political, Too!

The Liberal, Reform, Bloc and N.D.P. voters who have wondered why politicians always
spend more tax money than they take in should now see the reason. When they begin to
study our "debt-money" system, they soon realize that these politicians are not the agents
of the people but are the agents of the Bankers, for whom they plan ways to place the
people further in debt. It takes only a little imagination to see that if Government had been
"creating" and spending or issuing into circulation the necessary increase in the money
supply, THERE WOULD BE NO NATIONAL DEBT, AND THE $500 BILLION OF OTHER
DEBTS WOULD BE PRACTICALLY NON-EXISTENT. Since there would be no ORIGINAL
cost of money except printing, and no CONTINUING costs such as interest, Federal taxes
would be almost minimal. Money, once in circulation, would remain there and go on
serving its purpose as a medium of exchange for generation after generation and century
after century, just as coins do now, with NO payments to the Bankers whatever!

Mounting Debts and Wars

But instead of peace and debt-free prosperity, we have ever-mounting debt and periodic
wars. We as a people are now ruled by a system of Banker owned mammon that has
usurped the mantle of government, disguised itself as our legitimate government, and set
about to pauperize and control our people. It is now a centralized, all-powerful political
apparatus whose main purposes are promoting war, spending the peoples' money, and
propagandizing to perpetuate itself in power. Our political parties have become its
servants, the various departments of government its spending agencies, and the Federal
Revenue its collection agency.

25
The Tyranny of Compound Interest

The biggest EVIL about interest is that it cannot be paid. Therefore it is COMPOUNDED.

Let me give you an example of the difference of COMPOUND INTEREST and SIMPLE
INTEREST.

$1  loaned out at the time of the birth of Christ at 3%, compound interest, would be a debt
of: $19,342,814,713,834,066,795,298,816.

At 6% interest it would be:

$2,075,564,540,495,770,000,659,356,622,933,159,968,008,080,198,784.

At SIMPLE INTEREST the interest would be $59 and $118 respectively.

Let's say, you borrow $1,000 at 15%. At the end of the year the banker wants back $1,000
plus $150, for interest. However, the $150 for interest doesn't exist. The banker only
created $1,000, but he wants back more than he loaned you. This is the flaw in our
monetary system and this is why it will not work.

So here is what happens. You pay your principal of $1,000, which leaves you the interest
debt of $150. Because there is no money with which to pay it, you start your second year
borrowing a new $1,000. Now you owe $1,150. And, at 15%, by the end of the second year
you owe $1,322.50. You again pay your principal, but you now owe $322.50. This is
COMPOUNDING INTEREST. But, your friendly banker will continue to loan you money as
long as you have unmortgaged collateral, that is, a factory, a farm, a house, etc. etc.

But this increased borrowing and paying interest has now become a part of your business.
And, in order for you to continue, you must pass this extra cost on to the consumer. So
you raise the price of your merchandise, AND LO AND BEHOLD! INFLATION IS BORN!!

But now, because you have increased the price of your merchandise, your workers need
more money if they are to buy the goods they have helped to produce. Of course, this is
only the beginning of the problem. As your debt and interest increases year by year, you
are forced to keep raising prices. By this time your workers are convinced that you are the
one creating inflation. So they have to respond by demanding a yearly increase in wages.
This has created enmity between business and labour, each blaming the other for the
cause of INFLATION.

However, the banker, is the prime mover in creating inflation because he has put a cost on
the use of money (namely interest).

It was this interest which forced you to increase the price of your merchandise. The Labour
increase in wages was secondary. And the continuing increase in your debt and interest is
continuing to create inflation..

26
The Solution to the problem

The problem is that interest is charged at the origin of money. This is caused by our federal
government giving away the right to issue and put into circulation our total money supply.
It has given this right to the private chartered banks. Under this system all money now
comes into circulation as a debt to the private banks. The private banks charge interest on
this money. This interest becomes an additional debt above the principal we borrow. This
addition cannot be paid because no money is issued to pay it. If you borrow this addition
you go deeper into debt. If you pay the interest out of the principal, this reduces the money
you borrowed and the debt cannot be repaid. Furthermore, it reduces the money supply
and causes a depression. In both cases we pile up a mountain of debt that cannot be paid.
The interest on these mountains of debt is large and ever-increasing because of
compounding interest. This causes inflatation which is passed on to the consumer. Those
that have the power to pass this interest cost on to the consumer not only cause additional
inflation but force the consumer to go even further into debt. With the added interest costs
there is not enough money left in circulation to buy all the goods and services available.

What is fooling so many well-meaning people is that they have been led to beleive that they
are doing well under this system. For example:

Assets in gov't bonds $100,000

Interest income at 12% $12,000
Total assets $112,000
11% inflation income $12,320
Value of assets after inflation $99,680
Income tax on $12,000 - exempt
$2,755
$1,000
Your assets will now be worth $96,925
 -  
The result is a loss
$3,075

(1) In order to solve the problem, the government must take back the right they have given
the private banks to issue the country's money supply. The benefits of this one reform
would be tremendous. Money could be put into circulation DEBT AND INTEREST FREE.
This would mean that the government could pay back its debt and save the people
$BILLIONS in INTEREST PAYMENTS and therefore $BILLIONS IN TAXES for the People.
Furthermore, everytime the G.N.P. would increase, the government could issue new money
to the amount of the increase of goods and services. This means that many of the
government services could be provided without taxation. The reduction in taxes would not
only stop inflation but reverse it.

(2) Putting the banks on a 100% reserve would stop the private banks from creating
money. What is more, the banks would have to cash in their bonds as their reserves would
be increased. This would reduce the national debt tremendously without it costing the
government a single dollar, because the government would pay for the bonds with money
that cost the Bank of Canada nothing except the cost of printing.

Thomas Edison said, "It is absurd to say our Country can issue bonds and cannot issue
currency. Both are promises to pay, but one fattens the userer and the other helps the
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People. If the currency issued by the People were no good, then the bonds would be no
good either."

The money issued to the federal government can be put into circulation in a number of
ways. One of the first should be to pay off the national debt and save BILLIONS in interest
charges which continue to be exorbitant. This reduction in government expenditure could
then provide the necessary services that the People need.

Secondly, the money could be spent into circulation by giving government services
without taxation.  For example, if the money spent on building schools, hospitals,
government buildings and on providing pensions and family allowances were spent into
circulation rather than borrowed by the government, it would stay in circulation, until it was
worn out and then it could be replaced at a very small expense. Today, however, money is
borrowed by the government into circulation and withdrawn leaving the principal of the
loan unpaid to be compounded, exasperating the problem year by year.

If, however, the money were spent into circulation, the people receiving this money would
own it and when they used it to buy the necessities of life, the money would keep
circulating. In a few years, the money in circulation would all be debt and interest free.
Once the governments, the corporations, and the small businesses, as well as individuals,
would all be free of debt, the saving to the people would be in the hundreds of billions. This
is not a dream but can become a reality, if we the people, take action.

No Interest No Debt

History tells us of debt-free and interest-free money issued by governments.

The American colonies did it through colonial script in the 1700's. Their wealth soon
rivaled that of England and brought restrictions from Parliament, which led to the
Revolutionary War. Abraham Lincoln did it in 1863 to help finance the Civil War.

He was later assassinated by a man many consider to have been an agent of the Rothchild
Bank. No debt-free or interest-free money has been issued in America since then.

The Saracen Empire forbad interest on money for 1,000 years, and its wealth outshone
even Saxon Europe. Mandrarin China issued its own money, interest-free and debt-free,
and the European traveler, Marco Polo, was astounded by the wealth and civilization of the
Mandarin Empire. Today, historians and art collectors consider those centuries to be
China's time of greatest wealth, culture and peace.

Several Arab nations issue interest free loans to their citizens today. (Now you can
understand what all the commotion in the Middle East is all about, and why the banker-
owned press is brainwashing citizens to think of all Arabs as terrorists).

Germany issued debt-free and interest-free money from 1935 and on, accounting for its
startling rise from the depression to a world power in 5 years. Germany financed its entire
government and war operations from 1935 to 1945 without gold and without debt, and it
took the whole Capitalist and Communist world to destroy the German power over Europe
and bring Europe back under the heels of the bankers. Such history of money does not
even appear in the textbooks of public (government) schools today.
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Issuing money which does not have to be paid back in interest leaves the money available
to use in the exchange of goods and services and its only continuing cost is replacement
as the paper wears out. Money is the paper ticket by which transfers are made and should
always be in sufficient quantity to transfer all possible production of the nation to the
ultimate consumers. It is as ridiculous for a nation to say to its citizens, "You must
consume less because we are short of money," as it would be for an airline to say, "Our
planes are flying, but we cannot take you because we are short of tickets".

By the issuance of money and credit as discussed above, the country's total money supply
can be increased to meet the nation's needs with no disadvantage to anyone and with
advantage to all. All will benefit from the increased ease of exchanging goods and services
with more money available.

THE IMPORTANT THING IS THAT THE MONEY DOES NOT HAVE TO BE TAXED OR TAKEN
OUT OF CIRCULATION TO PAY BACK TO THE PARASITIC BANKERS.

As stated previously, it would remain in circulation for generations at no cost to the

citizens, except for printing replacements for paper currency as it wears out.

Stable Money

Money, issued in the way previously described, would derive its value in exchange from
the fact that it had come from the highest legal source in the nation and would be declared
legal to pay all public and private debts.

Issued by a sovereign nation, not in danger of collapse, it would need no gold or silver or
other so-called "precious" metals to back it.

As history shows, the stability and responsibility of government issuing it is the deciding
factor in the acceptance of that government's currency--not gold, silver, or iron buried in
some hole in the ground. Proof is Canada's currency today. Our gold and silver is
practically gone, but our currency is accepted. But if the government was about to collapse
our currency would be worthless. Also, money issued through the peoples' legitimate
government would not be under the control of a privately owned corporation whose
individual owners benefit by changing the money amount and value to fluctuate and the
people to go into debt.

Under the present debt-usury system, the extra burden of usury forces workers and
businesses to demand more money for the work and goods to pay their ever increasing
debts and taxes. Since it is a demand for more dollars for the same work or goods, it is a
DEFLATION of the dollar (erroneously called "inflation" by the money propagandists).
Bankers, politicians and "economists" blame it on everything but the real cause, which is
the interest levied on money and debt by the Bankers.

Today, deflation of money value is totally to the benefit of the money-lenders, since it
wipes out savings of one generation so they can not finance or help the next generation,
forcing them to borrow from the money-lenders and pay a large part of their life's labor to
the usurer.

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With an adequate supply of interest-free money, little borrowing would be required, usury
would be non-existent, and prices would be established by people and goods, not by debts
and usury.

Citizen control

If the Federal Government failed to act, or acted wrongly in the supply of money, the
citizens would use the ballot or recall petitions to replace those who prevented correct
action with others whom the people believe would pursue a better money policy. Since the
creation of money and its issuance in sufficient quantity would be one of the few functions
of Parliament, the voter could decide on a candidate by his stand on money instead of the
hundreds of lesser, and deliberately confusing, subjects which are presented to us today.
And since money is, and would remain, a national function, local differences or local
factions would not be able to sway the people from the nation's (citizens' interest). All other
problems, except the nation's defense, would be taken care of in the provincial and local
governments where they are best handled and most easily corrected.

A Debt-Free Canada

With debt-free and interest-free money, there would be no confiscatory taxation, our homes
would be mortgage-free with no $5000-a-year payments to the bankers, nor would they get
$500 to $1,500 per year from every automobile on our roads.

We would need no "easy payment" plans, "revolving" charge accounts, loans to buy
engagement and wedding rings, loans to pay medical or hospital bills, loans to pay taxes,
loans to buy furniture, loans to pay for burials, loans to pay loans, nor any of the thousand
and one usury bearing loans which now suck the life blood of Canada's families. There
would be no unemployment, inadequate pensions, destitute old people, or mounting crime,
and even the so called "deprived" classes would be deprived of neither job nor money with
which to buy the necessities and even the luxeries of life.

Criminals could not become politicians, and politicians would not become criminals in the
pay of the Money-lenders. Our elected officials, at all levels of government, would be
working for the people instead of devising means to spend more money to place us further
in debt to the bankers. We would get out of entangling foreign alliances that have engulfed
us in two major wars, alliances which even now prevent Canada from preparing its own
defense in the face of mounting danger

A debt-free Canada would mean mothers would not have to work and could rear their
children to be good citizens instead of juvenile delinquents. The elimination of the interest
and debt would be the equivalent of a 50 percent raise in the purchasing power of every
worker. With this cancellation of all debts, the return to the people of all the property and
wealth the parasitic Bankers and their quasi-legal agents have stolen by usury and fraud,
and the ending of their theft of $60 billion every year from the people. Canada would be
prosperous and powerful beyond the wildest dreams of its citizens today. And we would be
at peace to pursue more important things in life other than our survival.

Why you haven't known

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We realize that this small, and necessarily incomplete, article on money may be charged
with oversimplification. Some may say that if it is that simple the people would have known
about it, and it could not have happened.

But this MONEY-LENDERS' conspiracy is as old as Babylon, and even in Canada it dates
far back before the year 1913.

Actually, 1913 may be considered the year in which their previous plans came to fruition,
opening the way for complete economic conquest of our people. The conspiracy is old
enough in Canada so that its agents have been, for many years, in positions such as
newspaper publishers, editors, columnists, church ministers, university presidents,
professors, textbook writers, labor union leaders, filmmakers, radio and television
commentators, and politicians ranging from school board members to members of
parliament.

Controlled News And Information

These agents control the information available to our people. They manipulate public
opinion, elect whomever they want locally and nationally, and never expose the crooked
money system. They promote school bonds, expensive and detrimental farm programs,
"urban renewal," foreign aid, and many other schemes which place the people more deeply
in debt to the bankers.

Thoughtful citizens wonder why billions are spent on one program and billions on another
which may duplicate it or even nullify it, such as paying some farmers not to raise crops,
while at the same time building dams or canals to irrigate more farm land.

Crazy or stupid?

Neither. The goal is more debt. Thousands of government-sponsored methods of wasting

money go on continually. Most make no sense, but they are never exposed for what they
really are: siphons sucking our Nation's economic lifeblood. Billions for the Bankers, debts
for the people.

So-called "economic experts" write syndicated columns in hundreds of newspapers,

craftily designed to prevent the people from learning the simple truth about our money
system.

Commentators on Radio and Tv, preachers, educators, and politicians blame the people as
wasteful, lazy, or spend-thrift, and blame the workers and consumers for the increase in
debts and the inflation of prices, when they know the cause is the debt-money system
itself. Our people are literally drowned in charges and counter-charges designed to
confuse them and keep them from understanding the unconstitutional and evil money
system that is so efficiently and silently robbing the farmers, the workers, and the
businessmen of the fruits of their labor and of their freedoms.
 

When some few Patriotic people or

organizations, who know the truth begin
to expose them or try to stop any of their
31
mad schemes, they are ridiculed and
smeared as "right-wing extrenists",
"super patriots", "ultra-rightists",
"bigots", "racists", even "facists", and
"anti-semites".
Any name is used which will cause them
to shut up or at least stop other people
from listening to the warning they are
giving. Articles, essays and documents
such as you are now reading are kept out
of schools, libraries, and book stores.

Some, who are especially vocal in their exposure of the treason against the people, are
harassed by government agencies, forcing them into financial strain or bankruptcy. Using
the above methods, they have been completely successful in preventing most Canadians
from learning the things you have read in this essay.

However, in spite of their control of information, they realize many citizens are learning the
truth.

Therefore, to prevent armed resistance to their plunder of Canada, they plan to register all
firearms and eventually to disarm all citizens. They have to eliminate most guns, except
those in the hands of their government police or military forces.

Tell The People

The "almost hidden" conspirators in politics, religion, education, entertainment, and the
news media are working for the banker-owned Canada, in a banker-owned World under a
banker-owned World Government! (This is what all the talk of a New World Order is all
about.)

Love of country, compassion for your race, and concern for your children should make you
deeply interested in this. Canada's greatest problem, for our generation has not suffered
under the "yoke" as the coming generations will. Usury and taxes will continue to take a
larger and larger part of the annual earning of the people and put them into the pockets of
the bankers and their political agents. Increasing "government" regulations will prevent
citizen protest and opposition to their control.

It is possible that your grandchildren will own neither home nor car, but will live in
"government owned" apartments and ride to work in "government owned" buses (both
paying interest to the bankers), and be allowed to keep just enough of their earnings to buy
a minimum of food and clothing  while their rulers wallow in luxury. In Asia and eastern
Europe it is called "communism;" in America it is called "Democracy" and "Capitalism."

Graham Towers: (Governor of the Bank of Canada (at the time), appearing in 1939, before
the Committee on Banking and Comerce:)- Government Printing Bureau, Ottawa -

Banks Create Money Through The Creation Of Credit -

Question to Mr You have agreed that the banks do create the money.
32
Towers:
Mr. Towers: They, by their activities in making loans and investments, create liabilities for themselves
in the form of deposits.
   
Question to Mr But there is no question about it that banks create the medium of exchange?
Towers:
Mr. Towers: That is right. that is what they are for....That is the banking business; just in the same way
that a steel company makes steel. The manufacturing process consists of making a pen-
and-ink or typewritten entry or in a card in a book. That is all. Each and every time a bank
makes a loan (or purchases securities), new bank credit is created - new deposits - new
money. (pp.113,328) As loans are debt, then under the present system all money is debt.
(p.459)
   
Question to Mr When you allow the merchant banking system to issue bank deposits, with the practice of
Towers: using cheques, you virtually allow banks to issue an effective substitute for money do you
not?
Mr. Towers: The bank deposits are actually money in that sense.
   
Question to Mr ...as a matter of fact, they are not actual money, but a substitute for money?
Towers:
Mr. Towers: Yes.
   
Question to Mr Then we authorize the banks to issue a substitute for money?
Towers:
Mr. Towers: Yes. (p.285)

Canada will not shake off her Banker-controlled dictatorship as long as the people are
ignorant of the hidden controllers. International financiers, who control most of the
governments of the nations, and most sources of information, seem to have us completely
within their grasp. They are afraid of only one thing: an awakened patriotic citizenry, armed
with the truth, and with a trust in God for deliverance. This material has informed you about
their iniquitous system. What you do with it is in your hands.

The Dawn of a New Day

In years gone by, when someone advocated monetary reform, he was immediately
ridiculed and branded as a crackpot or a funny money advocate. However, those days are
gone. Most people today know that there is something wrong with our monetary system.
When they see the value of money fluctuating....going up and down like a yo yo, they know
there is something wrong. They may not know the nature of the problem, but they know
that there is no stability in our money.

Most people look upon money as a medium of exchange. But, money is more than a
medium of exchange. It is also a measure of values, a standard of deffered payment, as
well as a store of values. Therefore, if money is to be a true measure of value, it must have
stability.

You can imagine what would happen if the pound was 16 ounces one day and 12 or 14
ounces the next day; or if the foot had 12 inches one day and 10 inches the next day. The
same applies to the gallon measure. If this was done, chaos would follow. The same
applies to money. Saving, borrowing and repayment become a highly risky business when
money is unstable. We see what confusion was caused by changing to metric, although at
33
least this was one stable method to another and there was no fluctuation in either system.
No, there is no doubt we must bring back stability into our monetary system.

But at last news is coming froman increasing number of economists who are advocating a
sound and stable monetary system. The governments made a bad decision back in 1936
when two systems were offered to them. One was by John Maynard Keynes, the other by
Irving Fisher. Keynes wrote a book called The General Therory Of Employment, Interest
and Money  in which he advocated that the government should borrow hugh sums of
money and then spend this money on a public works program. He called it priming of the
economic pump to get the economy rolling again.

Irving Fisher, an economics professor at Yale University, also wrote a book about the same
time called 100% Money. In this book he advocated that the government should issue our
money rather than let the banks create the money and have the government borrow it and
pay the interest on it as Keynes proposed. This is so important, let me repeat it. Fisher
advocated that the government should issue the money, thereby creating neither debt nor
the burdensome interest which must be paid through taxation. Had we followed Fisher
rather than Keynes, Canadians would be in clover today.

Irving Fisher was not the only one at the time advocating that the government issue our
money supply. Government issuance of the the money supply was also advocated by the
Chicago Group of economists. This group was comprised of Professors Harvey Simons,
Lloyd Mints, A.G. Hart, Frank Knight, Garfield Cox, Henry Schultz, and Paul H. Douglas.
There are so many economists, businessmen, and even former bankers in the U.S.A. now
supporting this view that space does not permit the publishing of all their names.

There is one more outstanding economist who has backed monetary reform. It is our Nobel
Prize winner Milton Friedman. He wrote a book in 1960 called, A Program For Monetary
Stability. On page 65 he stated that he was in favor of what Henry Simons and Lloyd Mints
were advocating, that is, 100% reserve. In other words, he advocated that governments,
rather than private banks, issue the money supply.

We also have some outstanding Canadians advocating the same, John Hotson, Professor
of Economics, University of Waterloo, Professor Gordon Burnham of the University of
Ottawa, (Economic Thinking in a Canadian Context, page 589), and Professor Warren
Blackman of Calgary University.

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