BILL TO CORRECT MONEY CREATION IN USA IS PASSED BY HOUSE BY 289 VOTES TO 60; Goldsborough Measure Directs Reserve Board to Control Credit and Currency.
This is an impressive document. It articulates policy without specifying details. It articulates:
1. A sound rationale in its preamble for its authority to do so and concise reasons why it is needed – i.e. the precise cause of the gap.
2. A restatement of Douglas’s principle that the purpose of production is consumption and that the best system is the one that gets goods into the hands of consumers as, when and if needed at the lowest possible cost.
3. The basic framework for government administration departments is given; Federal Credit Commission (FCC) and issue of debt-free money under the Treasury.
4. Defines the just price mechanism by which the compensated price discount shall be calculated.
5. The mandate to ensure no more credit is issued than can be supported by social credit – i.e. national productivity.
6. A provision is made for dividends under the guidance of the FCC so that it can be properly factored with the compensated price (CP) in order to meet the policy objective of not causing inflation.
7. Discount only applicable to consumers.
… more, see below…Sincerely, Dean
Positive money in Switzerland , Vollgeld , monnaie-pleine ?
A BILL
To provide a national monetary policy which
will have a definite relationship to the requirements of domestic industry and
trade under the conditions imposed by our power economy, which will enable the
maximum production and consumption of needed and wanted goods and services to
take place within the limits of domestic productive capacity, which will ensure
the maximum delivery of needed and wanted goods and services to individuals,
and for other purposes.
will have a definite relationship to the requirements of domestic industry and
trade under the conditions imposed by our power economy, which will enable the
maximum production and consumption of needed and wanted goods and services to
take place within the limits of domestic productive capacity, which will ensure
the maximum delivery of needed and wanted goods and services to individuals,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
United States of America in Congress assembled,
TITLE I – COMPENSATED RETAIL PRICES
Declaration of Policy
SECTION 1.
Whereas it is the Constitutional prerogative of Congress
to create money and regulate the value thereof, and whereas book entries
representing bank liabilities to their depositors, loan customers, or other
owners or holders of such accounts have the force and fulfill all the functions
of money and are hereby declared to be money, and whereas the value of money is
its purchasing power over goods and services and all other forms of property
or property rights or evidence of ownership of such rights and property, and
whereas the purchasing power of money varies inversely with the price of such
goods, services, property and property rights, and whereas under existing law
regarding the creation of bank deposit liabilities and under existing law and
custom with regard to private ownership, contract and indebtedness the total
sum of prices for goods and services produced tends to outrun the total amount
of money available to buy them except at a financial loss to the producers of
such goods and services, it is hereby declared to be the policy of Congress to
adjust and control the volume of money so as to keep it equal at all times to
the total sum of prices for goods and services on sale plus the total sum of
the properly accounted unliquidated costs of goods and services in process of
production in order to facilitate the maxi~ mum delivery of goods and services
to the people of the United States in conformity with their desires and with
the productive capacity of the national economy.
Whereas it is the Constitutional prerogative of Congress
to create money and regulate the value thereof, and whereas book entries
representing bank liabilities to their depositors, loan customers, or other
owners or holders of such accounts have the force and fulfill all the functions
of money and are hereby declared to be money, and whereas the value of money is
its purchasing power over goods and services and all other forms of property
or property rights or evidence of ownership of such rights and property, and
whereas the purchasing power of money varies inversely with the price of such
goods, services, property and property rights, and whereas under existing law
regarding the creation of bank deposit liabilities and under existing law and
custom with regard to private ownership, contract and indebtedness the total
sum of prices for goods and services produced tends to outrun the total amount
of money available to buy them except at a financial loss to the producers of
such goods and services, it is hereby declared to be the policy of Congress to
adjust and control the volume of money so as to keep it equal at all times to
the total sum of prices for goods and services on sale plus the total sum of
the properly accounted unliquidated costs of goods and services in process of
production in order to facilitate the maxi~ mum delivery of goods and services
to the people of the United States in conformity with their desires and with
the productive capacity of the national economy.
SECTION 2. In
pursuance of such policy national currency notes are to be issued for financing
a discount on prices to consumers at retail, as hereinafter provided.
pursuance of such policy national currency notes are to be issued for financing
a discount on prices to consumers at retail, as hereinafter provided.
SECTION 3. As used
in this title—
in this title—
(a) The term “national currency
notes” means United States currency legal tender
in payment of all debts and taxes but not
available to banks us
notes” means United States currency legal tender
in payment of all debts and taxes but not
available to banks us
364
part of their
cash reserves
against deposit
liabilities
except on a dollar-to-dollar
ratio to
an equivalent
sum of their deposit
liabilities.
cash reserves
against deposit
liabilities
except on a dollar-to-dollar
ratio to
an equivalent
sum of their deposit
liabilities.
(b) The term
“retail
discount” means a
percentage
figure,
to be determined
by the Federal
Credit
Commission
and published
by the Secretary
of the Treasury
as hereinafter
provided, which
may be applied
as a discount
on the prices
of goods and services
offered by retailers
to ultimate consumers.
“retail
discount” means a
percentage
figure,
to be determined
by the Federal
Credit
Commission
and published
by the Secretary
of the Treasury
as hereinafter
provided, which
may be applied
as a discount
on the prices
of goods and services
offered by retailers
to ultimate consumers.
(c) The
term “compensated
price” means
the retail
price of goods
and services
after the application
of the retail
discount. Sales
of second hand goods will
not be eligible
for the retail
discount.
term “compensated
price” means
the retail
price of goods
and services
after the application
of the retail
discount. Sales
of second hand goods will
not be eligible
for the retail
discount.
(d) The term
“retailer”
means any
seller of
goods, including
dwellings
and services,
to ultimate consumers
who are natural
persons,
for their individual or family use
and not for resale,
and also includes service
corporations insofar
as they
supply services
at retail
to the public for personal
or family use.
“retailer”
means any
seller of
goods, including
dwellings
and services,
to ultimate consumers
who are natural
persons,
for their individual or family use
and not for resale,
and also includes service
corporations insofar
as they
supply services
at retail
to the public for personal
or family use.
(e) The
term “services”
means passenger
transportation, distribution
to homes of gas and electricity
for domestic purposes,
rental
of homes,
hospitalization,
medical
care, education,
theatrical
entertainment,
and any other professional
or non–professional
services that
may be supplied
by individuals,
partnerships,
or other organizations,
provided
that the prices
charged for all such services
are based
upon accepted
principles
of cost accounting.
term “services”
means passenger
transportation, distribution
to homes of gas and electricity
for domestic purposes,
rental
of homes,
hospitalization,
medical
care, education,
theatrical
entertainment,
and any other professional
or non–professional
services that
may be supplied
by individuals,
partnerships,
or other organizations,
provided
that the prices
charged for all such services
are based
upon accepted
principles
of cost accounting.
(f) The term
“national
credit” means
the amount of
national
wealth against
which money
may safely
be issued
without resulting
in inflationary
price levels.
“national
credit” means
the amount of
national
wealth against
which money
may safely
be issued
without resulting
in inflationary
price levels.
(g) The
term “national
credit account” means an account
in the Treasury
of the United
States against
which national
currency notes
may be
issued
for the purpose
of giving effect to the
provisions of this Act.
term “national
credit account” means an account
in the Treasury
of the United
States against
which national
currency notes
may be
issued
for the purpose
of giving effect to the
provisions of this Act.
Determination of Retail Discount
SECTION 4.
(a) Beginning
ninety days
after the passage
of this
Act, the retail discount
for each quarter
shall be determined
by the Federal Credit
Commission and proclaimed
by the Secretary
of the Treasury on the
first day of each
quarter or at such
other times as the Federal
Credit Commission
shall recommend.
ninety days
after the passage
of this
Act, the retail discount
for each quarter
shall be determined
by the Federal Credit
Commission and proclaimed
by the Secretary
of the Treasury on the
first day of each
quarter or at such
other times as the Federal
Credit Commission
shall recommend.
(b) Upon
the passage
of this Act and until the retail
discount is determined
and proclaimed
as above
provided, the
retail
discount shall be 20
per centum.
Thereafter
the retail
discount
shall be that
percentage
which the
difference
between
the money
value of
national
production
and that of
national
consumption
bears to
that of
national production.
National
production shall
include all additions
to existing
values
that may be produced
in whatever category
of production,
and shall
include imports,
but shall not
include write-ups
of existing
physical
capital.
National consumption
shall include retail
sales,
but at the
uncompensated
retail price
level,
exports,
and proper
allowances
for depreciation,
waste, and obsolescence.
In arriving
at these
figures only existing
prices and
price levels
shall be used,
in order that
the production
and consumption
values
expressed shall
always be measured
in terms of
the existing
dollar.
the passage
of this Act and until the retail
discount is determined
and proclaimed
as above
provided, the
retail
discount shall be 20
per centum.
Thereafter
the retail
discount
shall be that
percentage
which the
difference
between
the money
value of
national
production
and that of
national
consumption
bears to
that of
national production.
National
production shall
include all additions
to existing
values
that may be produced
in whatever category
of production,
and shall
include imports,
but shall not
include write-ups
of existing
physical
capital.
National consumption
shall include retail
sales,
but at the
uncompensated
retail price
level,
exports,
and proper
allowances
for depreciation,
waste, and obsolescence.
In arriving
at these
figures only existing
prices and
price levels
shall be used,
in order that
the production
and consumption
values
expressed shall
always be measured
in terms of
the existing
dollar.
(c) If national
consumption as
hereabove described
shall at any
time exceed national
production
no retail discount
shall be proclaimed.
After each
proclamation of the
discount the data
used in the determination
thereof shall
be made
a matter
of public record.
consumption as
hereabove described
shall at any
time exceed national
production
no retail discount
shall be proclaimed.
After each
proclamation of the
discount the data
used in the determination
thereof shall
be made
a matter
of public record.
(d) After
the passage
of this Act and
in the event of any
subsequent Act
the passage
of this Act and
in the event of any
subsequent Act
365
by which Congress
should authorize
that direct
payments to
individuals be
made from the national
credit account
but not in settlement
of retail discount
vouchers,
then all
such payments
shall be calculated
by the Federal
Credit Commission
as an addition
to national
consumption
during the period in which they
are to be
paid.
should authorize
that direct
payments to
individuals be
made from the national
credit account
but not in settlement
of retail discount
vouchers,
then all
such payments
shall be calculated
by the Federal
Credit Commission
as an addition
to national
consumption
during the period in which they
are to be
paid.
(e) It shall
be unlawful for any
member or employee
of the Federal
Credit Commission
to disclose the
retail discount or any
information received
or employed
in connection with the determination
of the retail
discount before said
discount shall
have been
proclaimed by
the Secretary
of the Treasury.
Whoever
violates any
provision of
this subsection
shall be dismissed
from such membership
or employment
and shall
be punished,
upon conviction
of such violation,
by a fine of
not more than $1,000
or imprisonment for not more
than one year,
or both.
be unlawful for any
member or employee
of the Federal
Credit Commission
to disclose the
retail discount or any
information received
or employed
in connection with the determination
of the retail
discount before said
discount shall
have been
proclaimed by
the Secretary
of the Treasury.
Whoever
violates any
provision of
this subsection
shall be dismissed
from such membership
or employment
and shall
be punished,
upon conviction
of such violation,
by a fine of
not more than $1,000
or imprisonment for not more
than one year,
or both.
Application of Retail Discount
SECTION 5.
After the passage
of this Act
the retail
discount
shall be applicable
to purchases
of goods
and services
from retailers
as defined
in this Act, made
by consumers
who are natural
persons, for
the personal
use of the consumer
or his family
and not
for resale, trade,
or manufacture.
The application
of said retail
discount in trade
shall be evidenced
by suitable vouchers
or forms
prescribed
by the Secretary
of the Treasury.
Said vouchers
shall be used
in reimbursing
the retailer
for selling goods
and services at the
compensated
price. The intent
of this Act
is to provide
a continuous settlement
through the banks
to retailers
for sales
at the compensated
price as provided
in section 7 of this title.
After the passage
of this Act
the retail
discount
shall be applicable
to purchases
of goods
and services
from retailers
as defined
in this Act, made
by consumers
who are natural
persons, for
the personal
use of the consumer
or his family
and not
for resale, trade,
or manufacture.
The application
of said retail
discount in trade
shall be evidenced
by suitable vouchers
or forms
prescribed
by the Secretary
of the Treasury.
Said vouchers
shall be used
in reimbursing
the retailer
for selling goods
and services at the
compensated
price. The intent
of this Act
is to provide
a continuous settlement
through the banks
to retailers
for sales
at the compensated
price as provided
in section 7 of this title.
Contracts and Regulations
SECTION 6.
(a) No retailer
shall be entitled
to compensation on sales
at the discount unless
he has applied
to the Secretary
of the Treasury
for, and
has received, a certificate
of authority
or license,
and has agreed
to conform to such
regulations as
to cost accounting
and maximum rate
of profit on
turnover of sales
as shall be determined
by the Secretary
of the Treasury
after public
hearings
open to all
interested
parties.
It shall be the
duty of the
Federal
Credit Commission
to be represented
at such
hearings, to defend
the general
interest of the
consuming
public, and
to subordinate
all questions
of special
interests
to that of the
national
credit as defined
in this title.
Decisions
of the Federal
Credit
Commission
as to the national
credit shall
be final.
shall be entitled
to compensation on sales
at the discount unless
he has applied
to the Secretary
of the Treasury
for, and
has received, a certificate
of authority
or license,
and has agreed
to conform to such
regulations as
to cost accounting
and maximum rate
of profit on
turnover of sales
as shall be determined
by the Secretary
of the Treasury
after public
hearings
open to all
interested
parties.
It shall be the
duty of the
Federal
Credit Commission
to be represented
at such
hearings, to defend
the general
interest of the
consuming
public, and
to subordinate
all questions
of special
interests
to that of the
national
credit as defined
in this title.
Decisions
of the Federal
Credit
Commission
as to the national
credit shall
be final.
(b) The
Secretary
of the Treasury
may suspend
or revoke any
certificate
of authority
or license
issued
by him to any retailer,
after reasonable
notice and opportunity
for hearing
to the retailer,
upon satisfactory
evidence that
the said retailer
has not conformed
to the regulations
under which his certificate
or license
has been issued.
An order
suspending
or revoking the
certificate of
license issued
by the Secretary
shall be final
and conclusive
unless within
ninety days
after its
service the
retailer
appeals to the circuit
court of appeals
for the circuit
in which he is doing
business by
filing with the clerk
of said court a written
petition
praying that
the order of
the Secretary
be set aside.
Such order
shall be stayed pending
the disposition of
appellate
proceedings
by the court. The
clerk of
the court in which
such a petition
is filed shall
immediately
cause a copy
thereof
to be delivered
to the Secretary and he shall forthwith prepare, certify, and file in the court a full and accu-
Secretary
of the Treasury
may suspend
or revoke any
certificate
of authority
or license
issued
by him to any retailer,
after reasonable
notice and opportunity
for hearing
to the retailer,
upon satisfactory
evidence that
the said retailer
has not conformed
to the regulations
under which his certificate
or license
has been issued.
An order
suspending
or revoking the
certificate of
license issued
by the Secretary
shall be final
and conclusive
unless within
ninety days
after its
service the
retailer
appeals to the circuit
court of appeals
for the circuit
in which he is doing
business by
filing with the clerk
of said court a written
petition
praying that
the order of
the Secretary
be set aside.
Such order
shall be stayed pending
the disposition of
appellate
proceedings
by the court. The
clerk of
the court in which
such a petition
is filed shall
immediately
cause a copy
thereof
to be delivered
to the Secretary and he shall forthwith prepare, certify, and file in the court a full and accu-
366
rate
transcript of the record
in the proceedings
held before
him under
this subsection,
the charges,
the evidence,
and the order
suspending
or revoking
the certificate
or license.
Upon the filing
of the transcript
the court shall
have jurisdiction
to affirm or
set aside
the order
of the Secretary or
to direct him to
modify his order,
and the findings
of the Secretary
as to the
facts, if supported
by the weight
of evidence,
shall be conclusive.
transcript of the record
in the proceedings
held before
him under
this subsection,
the charges,
the evidence,
and the order
suspending
or revoking
the certificate
or license.
Upon the filing
of the transcript
the court shall
have jurisdiction
to affirm or
set aside
the order
of the Secretary or
to direct him to
modify his order,
and the findings
of the Secretary
as to the
facts, if supported
by the weight
of evidence,
shall be conclusive.
(c) Whoever
falsifies any
account relating
to the issuance
of the discount
at retail,
or the goods pertaining
thereto, shall be guilty
of a misdemeanor.
Whoever
by collusion
falsifies
accounts arising
in the costs
of production
and distribution
to the retailers
shall be guilty
of conspiracy
to defraud.
Whoever violates
any provision of
this subsection
shall be
punished,
upon conviction
thereof, by
a fine of not more than
$1,000 or
imprisonment
for not more
than one
year, or both.
falsifies any
account relating
to the issuance
of the discount
at retail,
or the goods pertaining
thereto, shall be guilty
of a misdemeanor.
Whoever
by collusion
falsifies
accounts arising
in the costs
of production
and distribution
to the retailers
shall be guilty
of conspiracy
to defraud.
Whoever violates
any provision of
this subsection
shall be
punished,
upon conviction
thereof, by
a fine of not more than
$1,000 or
imprisonment
for not more
than one
year, or both.
Compensation of Retailers Through Banks
SECTION 7.
(a) In
order to compensate
retailers
for their disbursal
of the
retail
discount, all banks
in the United
States, its Territories,
and possessions,
engaged in
interstate
commerce,
are hereby authorized
and directed
to accept all vouchers
evidencing
disbursal
of the retail
discount and
included in
the regular
deposits
of their
customers who hold
licenses
to disburse the
discount,
and to honor
such vouchers
as if they
were cash deposits,
in the amount
of the disbursals
evidenced thereby.
order to compensate
retailers
for their disbursal
of the
retail
discount, all banks
in the United
States, its Territories,
and possessions,
engaged in
interstate
commerce,
are hereby authorized
and directed
to accept all vouchers
evidencing
disbursal
of the retail
discount and
included in
the regular
deposits
of their
customers who hold
licenses
to disburse the
discount,
and to honor
such vouchers
as if they
were cash deposits,
in the amount
of the disbursals
evidenced thereby.
(b) Banks
entering credits
to depositors
on account
of retail–discount
vouchers
shall charge
them to their
national currency
notes account,
and the Secretary
of the Treasury,
or his agent,
shall deliver
to said banks,
on request,
national
currency notes
to a face value
equivalent
to the amount
of the retail vouchers
entered
in the books of
the bank. The
banks shall
be entitled
to make a reasonable
service
charge to
such depositors
for the services
rendered.
The amount
of such
charge
shall be
fixed by the
Federal
Credit
Commission.
entering credits
to depositors
on account
of retail–discount
vouchers
shall charge
them to their
national currency
notes account,
and the Secretary
of the Treasury,
or his agent,
shall deliver
to said banks,
on request,
national
currency notes
to a face value
equivalent
to the amount
of the retail vouchers
entered
in the books of
the bank. The
banks shall
be entitled
to make a reasonable
service
charge to
such depositors
for the services
rendered.
The amount
of such
charge
shall be
fixed by the
Federal
Credit
Commission.
(c) Retailers‘
deposit
accounts written
up by the
method herein
provided
shall be
treated
by all banks
as part of their
circulating
deposits just
as if the write-up
had occurred
through the
discounting
of their customers’
own notes, and the
checks
drawn against
them shall
circulate
in the usual
manner.
deposit
accounts written
up by the
method herein
provided
shall be
treated
by all banks
as part of their
circulating
deposits just
as if the write-up
had occurred
through the
discounting
of their customers’
own notes, and the
checks
drawn against
them shall
circulate
in the usual
manner.
(d) Any person
who makes
a false entry on
a retail
discount voucher,
or who presents
a false
retail
discount
voucher
to a bank
for deposit,
or any retailer
who manipulates
his sales
totals
in obtaining
settlement
of the compensated
prices shall
be punished,
upon conviction
thereof
by a court of competent
jurisdiction,
by a fine of
not more
than $10,000
or by imprisonment
for not more than two years,
or both, and
in addition
his license
to dispense
the discount
shall be
revoked.
who makes
a false entry on
a retail
discount voucher,
or who presents
a false
retail
discount
voucher
to a bank
for deposit,
or any retailer
who manipulates
his sales
totals
in obtaining
settlement
of the compensated
prices shall
be punished,
upon conviction
thereof
by a court of competent
jurisdiction,
by a fine of
not more
than $10,000
or by imprisonment
for not more than two years,
or both, and
in addition
his license
to dispense
the discount
shall be
revoked.
TITLE
II – FEDERAL CREDIT
COMMISSION
II – FEDERAL CREDIT
COMMISSION
Organization of Commission
SECTION 201.
(a) To
carry out the
purposes of this Act
there is
hereby
created
a Federal
Credit Commission
(referred
to in this
title as the
“Commission“).
The Commission
shall be
composed of seven
Commissioners
who shall be appointed
by the President
by and with
the advice
and consent
of the Senate.
carry out the
purposes of this Act
there is
hereby
created
a Federal
Credit Commission
(referred
to in this
title as the
“Commission“).
The Commission
shall be
composed of seven
Commissioners
who shall be appointed
by the President
by and with
the advice
and consent
of the Senate.
367
No person
shall be eligible
for appointment
as Commissioner
unless he is
a citizen
of the United
States
and in the judgment
of the President
qualified to develop
expert
knowledge
of economic,
industrial, and
statistical
problems and
to perform
efficiently
the duties
required
by this Act.
Not more
than four
of the Commissioners
shall be members
of the same
political
party. Terms
of office
of the Commissioners
shall expire,
as designated
by the President,
one at the end
of each of the first seven
years after
the passage of
this Act.
The term
of office of
a successor
shall expire
seven years
from the date
of the expiration
of the term for which his predecessor
was appointed,
except that
any Commissioner
appointed to fill a
vacancy
occurring
prior to the
expiration
of the term for
which his predecessor
was appointed
shall be
appointed
for the
remainder
of such term.
Commissioners
shall be
eligible
for reappointment
and shall
receive
a retiring pension
of $2,000 per
annum for each
year of service,
but not in excess
of $14,000
per annum.
shall be eligible
for appointment
as Commissioner
unless he is
a citizen
of the United
States
and in the judgment
of the President
qualified to develop
expert
knowledge
of economic,
industrial, and
statistical
problems and
to perform
efficiently
the duties
required
by this Act.
Not more
than four
of the Commissioners
shall be members
of the same
political
party. Terms
of office
of the Commissioners
shall expire,
as designated
by the President,
one at the end
of each of the first seven
years after
the passage of
this Act.
The term
of office of
a successor
shall expire
seven years
from the date
of the expiration
of the term for which his predecessor
was appointed,
except that
any Commissioner
appointed to fill a
vacancy
occurring
prior to the
expiration
of the term for
which his predecessor
was appointed
shall be
appointed
for the
remainder
of such term.
Commissioners
shall be
eligible
for reappointment
and shall
receive
a retiring pension
of $2,000 per
annum for each
year of service,
but not in excess
of $14,000
per annum.
(b) The
Commissioners
shall be ex–officio
members
of the Federal
Reserve Board.
Commissioners
shall be ex–officio
members
of the Federal
Reserve Board.
(c) The President
shall annually
designate
one of the Commissioners
to act as Chairman
of the Commission.
Each Commissioner
shall receive
a salary
of $20,000
per year.
No Commissioner
shall engage
in any other
business, vocation,
or employment
than that
of serving
as Commissioner.
shall annually
designate
one of the Commissioners
to act as Chairman
of the Commission.
Each Commissioner
shall receive
a salary
of $20,000
per year.
No Commissioner
shall engage
in any other
business, vocation,
or employment
than that
of serving
as Commissioner.
(d) The Commission
shall have
authority
to employ
and to fix
the compensation
of such special
experts, examiners,
statisticians, clerks,
and other
employees
as it may
from time to time find necessary
for the proper performance
of its duties.
shall have
authority
to employ
and to fix
the compensation
of such special
experts, examiners,
statisticians, clerks,
and other
employees
as it may
from time to time find necessary
for the proper performance
of its duties.
Duties of the Commission
SECTION 202.
(a) There
is hereby created
an account in the Treasury
of the United States
to be known as
the national credit
account. This account
shall be credited
from time to
time at the direction
of the Commission
with the difference
between
the dollar
value of the national
production and
that of the national
consumption,
as determined
by the Commission,
when the value
of the national
production
is greater
than that of the national
consumption.
At the end
of each period
the amount
in the national
credit account
which shall
not have
been drawn
upon in that period
shall be written
off. If before
the end
of any period
the national
credit account
shall have
been entirely
drawn down,
while retail
sales and
bank acceptances
of retail
sales vouchers
are continuing
at the authorized
retail
discount, the Commission
may at its discretion
empower
the Secretary
of the Treasury
to continue
to issue
national
currency
notes upon
the demand
of the banks
until further
notice from
the Commission
and such additional
currency
will not be a charge
upon the national
credit
account
in any future
period.
The Commission
may also
reduce
or suspend
the retail
discount before the
expiration
of any period in accordance
with later
figures for
national production
and consumption
which may
be in its possession.
is hereby created
an account in the Treasury
of the United States
to be known as
the national credit
account. This account
shall be credited
from time to
time at the direction
of the Commission
with the difference
between
the dollar
value of the national
production and
that of the national
consumption,
as determined
by the Commission,
when the value
of the national
production
is greater
than that of the national
consumption.
At the end
of each period
the amount
in the national
credit account
which shall
not have
been drawn
upon in that period
shall be written
off. If before
the end
of any period
the national
credit account
shall have
been entirely
drawn down,
while retail
sales and
bank acceptances
of retail
sales vouchers
are continuing
at the authorized
retail
discount, the Commission
may at its discretion
empower
the Secretary
of the Treasury
to continue
to issue
national
currency
notes upon
the demand
of the banks
until further
notice from
the Commission
and such additional
currency
will not be a charge
upon the national
credit
account
in any future
period.
The Commission
may also
reduce
or suspend
the retail
discount before the
expiration
of any period in accordance
with later
figures for
national production
and consumption
which may
be in its possession.
(b) The
Commission
shall use
all reasonable
ways and means
to determine the
retail
discount as
accurately
as possible
strictly in accordance
with‘ the
methods prescribed
in section
4 of title I of
this Act and without
any extraneous
influence or
advice. The decisions
of the Commission
as to the retail
discount shall
be final.
Commission
shall use
all reasonable
ways and means
to determine the
retail
discount as
accurately
as possible
strictly in accordance
with‘ the
methods prescribed
in section
4 of title I of
this Act and without
any extraneous
influence or
advice. The decisions
of the Commission
as to the retail
discount shall
be final.
(c) The Commission
shall establish
and maintain a statistical bureau
to
shall establish
and maintain a statistical bureau
to
68
collect and coordinate
the data necessary
for carrying out the provisions of this Act and shall be
guided in its decisions
by the facts disclosed.
All statistical departments
of the Federal
Government
shall furnish such
aid and
information as may be required by the
Commission. The Commission
shall have authority to call for data
and statistics from
all economic
organizations,
trade associations,
and private business
which may
be required
in the judgment of the Commission
for carrying
out the purposes of this
Act.
the data necessary
for carrying out the provisions of this Act and shall be
guided in its decisions
by the facts disclosed.
All statistical departments
of the Federal
Government
shall furnish such
aid and
information as may be required by the
Commission. The Commission
shall have authority to call for data
and statistics from
all economic
organizations,
trade associations,
and private business
which may
be required
in the judgment of the Commission
for carrying
out the purposes of this
Act.
(d) It shall be the
duty of the Commission
to fix the
service charge
for handling of retail
discount vouchers by the banks
for their customers
as prescribed in this
Act.
duty of the Commission
to fix the
service charge
for handling of retail
discount vouchers by the banks
for their customers
as prescribed in this
Act.
(e) It shall also be the
duty of the Commission
to hold hearings upon and
to give publicity
to the earnings of
wholesalers,
manufacturers, prime producers,
and commodity
speculators,
and to recommend
to Congress
remedial legislation
or special
tax measures
with respect
to such earnings
if in the
judgment of the
Commission they are
derived
from an unnecessary rise in
factory, raw
material, or wholesale
prices which
by unduly raising the
dollar value of the
national
credit account
would cause it to contribute
to an artificially
sustained inflation and unfair distribution of the total national income to the
disadvantage of any class
or section.
duty of the Commission
to hold hearings upon and
to give publicity
to the earnings of
wholesalers,
manufacturers, prime producers,
and commodity
speculators,
and to recommend
to Congress
remedial legislation
or special
tax measures
with respect
to such earnings
if in the
judgment of the
Commission they are
derived
from an unnecessary rise in
factory, raw
material, or wholesale
prices which
by unduly raising the
dollar value of the
national
credit account
would cause it to contribute
to an artificially
sustained inflation and unfair distribution of the total national income to the
disadvantage of any class
or section.
Interference with Functions of the Commission
SECTION 203. (a) It shall be unlawful
for any person –
for any person –
(1) To prevent, or attempt to prevent,
by force, intimidation, threat, promise, or in any
other manner,
any member
or employee of
the Commission from exercising
the functions imposed
upon the Commission;
by force, intimidation, threat, promise, or in any
other manner,
any member
or employee of
the Commission from exercising
the functions imposed
upon the Commission;
(2) To induce,
or attempt to induce,
by like means, any
such member
or employee to make
any decisions or order,
or to take
any action with respect
to any matter
within the authority of
the Commission; or
or attempt to induce,
by like means, any
such member
or employee to make
any decisions or order,
or to take
any action with respect
to any matter
within the authority of
the Commission; or
(3) To induce,
or attempt to
induce, by like
means, any
such member
or employee to disclose any information
whatever except
through the channels provided in this Act.
or attempt to
induce, by like
means, any
such member
or employee to disclose any information
whatever except
through the channels provided in this Act.
(b) Whoever
violates any
provision of this
section shall
be punished, upon conviction of such violation,
by a fine of
not more than $1,000
or imprisonment for not more than one year, or both.
violates any
provision of this
section shall
be punished, upon conviction of such violation,
by a fine of
not more than $1,000
or imprisonment for not more than one year, or both.
TITLE III – GENERAL
PROVISIONS
PROVISIONS
SECTION 301. Any
person who violates any of the provisions
of this Act shall, in cases where no other
punishment is expressly
provided in this Act, be punished, upon conviction
thereof, by a fine
of not more than $1,000
or imprisonment for one year,
or both.
person who violates any of the provisions
of this Act shall, in cases where no other
punishment is expressly
provided in this Act, be punished, upon conviction
thereof, by a fine
of not more than $1,000
or imprisonment for one year,
or both.
SECTION 302.
The Secretary
of the Treasury
is authorized
to make such rules and regulations
as he may deem
necessary to carry
out the provisions
of this Act.
The Secretary
of the Treasury
is authorized
to make such rules and regulations
as he may deem
necessary to carry
out the provisions
of this Act.
SECTION
303. There
are hereby
authorized to be appropriated
annually such sums as
may be necessary
to carry out the provisions
of this Act.
303. There
are hereby
authorized to be appropriated
annually such sums as
may be necessary
to carry out the provisions
of this Act.
SECTION 304. All
laws and parts of laws inconsistent
or in conflict with the provisions
of this Act are hereby
repealed to the extent
of such inconsistency or conflict.
laws and parts of laws inconsistent
or in conflict with the provisions
of this Act are hereby
repealed to the extent
of such inconsistency or conflict.
SECTION 305. If any provision of this Act, or the application
thereof to any person or circumstance, is held
invalid, the remainder
of the Act, and the
thereof to any person or circumstance, is held
invalid, the remainder
of the Act, and the
369
application of
such provision to other
persons or circumstances,
shall not be affected thereby.
such provision to other
persons or circumstances,
shall not be affected thereby.
* *
*
*
Let one further
word be added on the question of
the automatic cancellation of consumer
credits. H. L. Northridge, a
Social Credit
technician, writes:
word be added on the question of
the automatic cancellation of consumer
credits. H. L. Northridge, a
Social Credit
technician, writes:
If the [A
+ B] theorem
is true at all,
it is true
continuously. So long as the
present system of
industrial accounting
is maintained
(and Social Credit,
at least,
does not propose
to alter
it), so long
will it be impossible
to recover
in full each cycle
of production credit.
It will therefore
not be sufficient
to liquidate
industry’s
present debt
by an issue
of consumer credit;
every future production cycle
will require
a fresh issue
of consumer credit
if the production
credit initiating
it is to be
recovered
in full. In other
words, every
future production cycle
will produce an
increment of debt,
i.e., “cancellation
power,” and it is this
continuous stream
of cancellation
power that
is the justification
for a continuous stream
of consumer credit and
the guarantee
for its cancellation
. . . The question
of special machinery
for retiring
consumer
credits does
not arise at all, if their issue
is properly
related
to the ascertained
deficiency of purchasing power.
+ B] theorem
is true at all,
it is true
continuously. So long as the
present system of
industrial accounting
is maintained
(and Social Credit,
at least,
does not propose
to alter
it), so long
will it be impossible
to recover
in full each cycle
of production credit.
It will therefore
not be sufficient
to liquidate
industry’s
present debt
by an issue
of consumer credit;
every future production cycle
will require
a fresh issue
of consumer credit
if the production
credit initiating
it is to be
recovered
in full. In other
words, every
future production cycle
will produce an
increment of debt,
i.e., “cancellation
power,” and it is this
continuous stream
of cancellation
power that
is the justification
for a continuous stream
of consumer credit and
the guarantee
for its cancellation
. . . The question
of special machinery
for retiring
consumer
credits does
not arise at all, if their issue
is properly
related
to the ascertained
deficiency of purchasing power.
As the matter has
sometimes been
put, when consumer
credits meet
producer debts, it is like a
positive charge
of electricity
meeting a negative
charge. The two
forces neutralize each
other and vanish.
…
sometimes been
put, when consumer
credits meet
producer debts, it is like a
positive charge
of electricity
meeting a negative
charge. The two
forces neutralize each
other and vanish.
…
In this chapter “motivated economy” was defined only in terms of consumer motivation, but it means producer motivation as well. The following excerpt from the prospectus of the American Social Credit Movement, 1133 Broadway, New York, 10, N. Y., includes both types of motivation:
The object of Social Credit is the creation of a new democracy.
Social Credit will bring about economic democracy so that the promise of political democracy which inspired our forefathers can be fulfilled.
What is economic democracy? Many talk about it in a superficial way. Social Credit gives a clear fundamental answer. Economic democracy means that the individuals in society are gaining increased individual control over their material environment. Specifically it means that the individual is (1) able to command by increased purchasing power a greater amount of personal consumption-goods, and (2) able to exercise a greater choice in the productive occupations he wishes to enter. The tests of economic democracy are a rising standard of living for all and expanding opportunity for productive activity either in employment or in leisure. The theory of democracy is that society is organized for the welfare of the individual. Social Credit is ultra-democratic and individualistic. Its goal is not the Regimented Work-State (cf. Russia, Germany, Italy) but the Leisured Society.
Douglas’s second principle for financial redesign, “that the credits required to finance production shall be supplied, not from savings, but be new credits relating to new production,” does not say that these new producer credits should be created by the State. They could be, but they could just as well be bank credits as now. That would not matter, since the application of Douglas’s first principle of cash credits of the population being collectively equal to collective cash prices for consumable goods would neutralize the bad effects of the working of the A + B Theorem. His second principle is intended to obviate money shortages arising from savings and investments in fresh production.
C. H. Douglas’s most important books are Economic Democracy, published by Cecil Palmer, London, in 1920, Credit-Power and Democracy, published in 1920 by Cecil Palmer, London, and The Monopoly of Credit, published by Chapman and Hall, London, in 1931. Credit-Power and Democracy includes a Draft Scheme for the British Mining Industry, one of Douglas’s very few blueprints of applied Social Credit. His first book, Economic Democracy, was published in America, too, hut has long been out of print. Another book of his, Social Credit, was brought out in a revised edition in America (W. W. Norton, 1933) and carries as an appendix the Draft Scheme for Scotland. This last scheme inspired the drafting of a bill by the New Economics Group of New York which came to the attention of Congressman T. Alan Goldsborough, and with some modifications was introduced by him into Congress on August 23, 1935, the day Aberhart swept the Alberta elections. A two-day hearing of this bill occurred the following spring. In 1937, after making further modifications, Congressman Goldsborough reintroduced his bill, and this time there were protracted hearings at which testimony was given by Major L. L. B. Angas, James H. R. Cromwell, Professor Walter E. Spahr, and a number of others, the Social Credit point of view being presented by myself. Under the title of Monetary Policy of Plenty Instead of Scarcity: Hearings before the Committee on Banking and Currency, House of Representatives, Seventy-fifth Congress, on H.R. 7188, the testimony running to 611 pages was published by the United States Government Printing Office, Washington, D. C.
From a Social Credit point of view, the Goldsborough bill was loosely drawn in several places; it was revised by the Technical Studies Department of the American Social Credit Movement, and the text they circulated
363
among their members is reprinted below. This draft does not make provision for a specific issue of National Dividends, but sub-section (d) of Section 4, Title 1, anticipates subsequent Congressional action for National Dividends. A careful study of this bill will supply the answers to many questions relating to details of administration that no doubt sprang to the reader’s mind after his first perusal of the Douglas blueprint for a producer-and-consumer motivated economy….
https://drive.google.com/file/d/0B-p0lmjLtiXzclZ1TUhyWDFTaWQxVXJybThzam1MZWEyMDVB/view
FAIR USE CLAIMED FOR NON-COMMERCIAL AND STUDY PURPOSES ONLY
Excerpts from Gorham Munson, Aladdin’s Lamp: The Wealth of the American People (New York: Creative Age Press, 1945)
THE AUTHOR’S WORKSHOP
This is an impressive document. It articulates policy without specifying details. It articulates:
1. A sound rationale in its preamble for its authority to do so and concise reasons why it is needed – i.e. the precise cause of the gap.
2. A restatement of Douglas’s principle that the purpose of production is consumption and that the best system is the one that gets goods into the hands of consumers as, when and if needed at the lowest possible cost.
3. The basic framework for government administration departments is given; Federal Credit Commission (FCC) and issue of debt-free money under the Treasury.
4. Defines the just price mechanism by which the compensated price discount shall be calculated.
5. The mandate to ensure no more credit is issued than can be supported by social credit – i.e. national productivity.
6. A provision is made for dividends under the guidance of the FCC so that it can be properly factored with the compensated price (CP) in order to meet the policy objective of not causing inflation.
7. Discount only applicable to consumers.
My only concern is that the CP is mandated to be via vouchers. With our modern debit and credit card systems, it would be far better to just let retailers set their price and for consumers to have their accounts directly credited with the CP – as long as the issuing financial institution (FI) is a domestic bank. This will take businesses out of the equation for all electronic funds transactions. For payments by cash or cheque, the sales receipt can be presented to bank tellers for “deposit” and banks can use them to obtain credits from the FCC or the Treasury. Upon further consideration, a voucher as envisioned by this act might be the best policy.
In order for FCC to properly compute the just price, it needs to know from each business:
1. the exact level of retail consumer sales for the fiscal period
2. the exact amount it spent on wages, earnings and dividends – it’s A costs
3. the exact amount it spent on all other costs of sale – its B costs.
This must be reported by all businesses. It is not much different than what is already done today. All the requisite information is already tabulated for the purpose of computing business profit and subsequent tax liabilities. It will be a simple matter to deduce these three numbers. Appropriate punishments for non-compliance are warranted.
One thing I feel strongly against is section 201, Title 2 (b) where commissioners are ex-officio Federal Reserve Board. Absolutely not! We want people with demonstrated expertise in Social Credit economics.
I am not at all certain about the merits of section 202 (a). It seems like flawed reasoning and not is step with the just price mechanism as I understand it – particularly the part about writing off the national credit. If there is a shortage or surplus, it will not just go away. It needs to be deliberately dealt with by way of adjusting the dividend and/or CP. This sounds like a scenario where politicians tried to legislate a solution out of their depth.
I don’t believe the penalties under section 203 are evenly remotely stiff enough. These are essentially acts of treason that serve to undermine the very stability of our society. Ditto for acts of malfeasance by FCC employees and/or third parties.
The R. L. Northridge quote on page 269 is particularly apropos and should be incorporated in the legislature preamble as the concrete justification for all of this in the first place; particularly the notion that it must be continuously be replenished and is not a one-time dispensation.
In general, I like how concise this is but again, I encourage everyone to consider all of the aspects raised in the specific recommendations of Liam Allone’s Economic Cures book. It incorporates other important aspects not envisioned by this legislation – such as import/export and trade, incorporation of Jury as a fourth pillar of power that will trump the executive, legislative and judicial branches as the final recourse for We the People. The rogue behavior of the present out-of-control three branches of governments everywhere are more than adequate justification for such a measure that needs to be enshrined in law. A stable chair stands on four legs – not three. Here is an excerpt from that book FYI. Let me preface it with one remark. It calls for eliminating the banks’ ability to issue money. I back away from that stand because the simple truth is that interest is just profit. That is not to say that I think any aspect of this proposal is unworkable. Rather, I just think such a constraint is unnecessary. What is necessary is that the gap be filled – period, end of story.
The hyperlinks in the following web page clearly distinguish the original constitution, the revisions since its inception and the proposed revisions. The original text that has been modified by proposed revisions are clearly cross-linked with the amendment – as are the actual amendments that have also been modified.
The cornerstones of this are:
1. The law of love – do unto others…
2. Jury enshrined as the supreme pillar of government.
Sincerely,
Dean
Here are some possible sources:
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