I Want The Earth Plus 5%

By Larry Hannigan,

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 noisy 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 men.

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 – 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 system.

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 watches.

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 more to try and
get those extra 5 coins which always 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

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 coins.

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

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 every 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 figures.

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

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

“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 guarded.

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

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

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 matters.”

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 than 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

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 machine.

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

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.”

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 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 employment.

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 Directors.

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

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 year.

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

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

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 government.This is not true. In 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 tyranny.”

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. 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

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.

Go on to the
Analysis of “I Want The Earth Plus 5%”

Copyright at Common Law, West El Paso Information Network,

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