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Money - Elementary Accounting
So Tom became the teacher. He taught the others what he had learned from that God-sent Social Credit publication.
“This,” he said, “is what we can do without waiting for a banker and his keg of gold, nor without underwriting a debt.
“I open an account in the name of each one of you. In the right hand column are the credits which increase your account; to the left are the debits which subtract from your account.
“Each wants $200 to begin with. Very well. We write $200 to the credit of each. Each immediately has $200.
“Frank buys some goods from Paul for $10. I deduct $10 from Frank, leaving him $190. I add $10 to Paul, and he now has $210.
“Jim buys from Paul to the amount of $8. I deduct from Jim $8, leaving him $192. Paul now has $218.
“Paul buys wood from Frank for $15. I deduct $15 from Paul, leaving $203. I add $15 to Frank's account, and it goes back to $205.
“And so we continue; from one account to another, in the same fashion that paper banknotes go from one man's pocket to another's.
“If someone needs money to expand production, we issue him the necessary amount of new credit. Once he has sold his products, he repays the sum to the credit fund. The same with public works; paid for by new credits.
“Likewise, each one's account is periodically increased, but without taking credits from anyone, in order that all may benefit from the progress society makes. That's the national dividend. In this fashion, money becomes an instrument of service.”
Next - The Banker's Despair
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