Money

Farewell to Salvation Island

After the opening of the barrel, and the revelation of his duplicity, nothing further was heard of Oliver.

Shortly after, a ship, crusing off the normal navigation route, noticed signs of life on this uncharted island, and cast anchor a short distance offshore.

The men learned that the ship was en route to their own country. So they decided to take with them what they could carry, and return to their own country.

Above all, they made sure to take back with them the album, “The First Year of Social Credit”, which had proven to be their salvation from the hands of the financier, Oliver, and which had illuminated their minds with an inextinguishable light.

All five solemnly promised to get in touch with the management of this paper, once back in their own country, and to become devoted and zealous apostles of the Cause of Social Credit in their country.

Next - From Parable to Reality

The Fraud Unmasked

To protect themselves against any future claim by Oliver, our five men decided to make him sign a document attesting that he again possessed all he had when he first arrived on the island.

An inventory was taken; the boat, the oars, the little press, and the famous barrel of gold.

Oliver had to reveal where he had hidden the gold. Our boys hoisted it from the hole with considerably less respect than the day they had unloaded it from the boat. Social Credit had taught them to despise gold.

The prospector, who was helping to lift the barrel, found it surprisingly light for gold. If the barrel was full, he told the others, there was something in it besides gold.

The impetuous Frank didn't waste a moment; a blow of the axe, and the contents of the barrel was exposed.

Gold? Not so much as a grain of it! Just rocks — plain, worthless rocks! Our men couldn't get over the shock.

“Don't tell us that he could bamboozle us to this extent!”

“Were we such muttonheads as to go into raptures over the mere mention of gold?”

“Did we mortgage all of our possessions for a few pieces of paper based on a few pounds of rocks? It's a robbery, compounded with lies!”

“To think that we sulked and almost hated one another all because of such a fraud! That devil!”

Furious, Frank raised his axe. In great haste, the banker has already taken flight towards the forest.

Next - Farewell to Salvation Island

The Banker's Despair

Everyone understood. The members of this little community became Social Crediters. The following day, Oliver, the banker, received a letter signed by the five:

“Dear sir! Without the slightest necessity you have plunged us into debt and exploited us. We don't need you anymore to run our money system. From now on, we'll have all the money we need without gold, debts, nor thieves. We are establishing, at once, the system of Social Credit on the island. The national dividend is going to replace the national debt.

“If you insist on being repaid, we can repay you all the money you gave us. But not a cent more. You cannot lay claim to that which you have not made.”

Oliver was in despair. His empire was crumbling. His dreams shattered. What could he do?
Arguments would be futile. The five were now Social Crediters: money and credit were now not more mysterious to them than they were to Oliver.

“Oh!” said Oliver. “These men have been won to Social Credit! Their doctrine will spread far more quickly than mine. Should I beg forgiveness? Become one of them? I, a financier and a banker? Never! Rather, I shall try and put as much distance between them and me as I can!”

Next - The Fraud Unmasked

Remember the Gold Coast City Council election back in March? Although not particularly popular, Ron Clarke was re-elected for two reasons - firstly because there was a wide field of candidates, people were confused and stuck to what they knew, and secondly because Clarke promised a freeze on rate rises.

Other candidates including former City Finance boss Rob Molhoek dismissed the rates freeze saying it was irresponsible and could result in financial ruin for the city. At a budget meeting yesterday Clarke voted against his own rates freeze and apologised for breaking his election promise.

"Just like at the Olympics when I didn't win a gold medal, again I have come up short,"

It was an embarrassing backdown for Cr Clarke as he finally admitted that the city would be left in 'financial peril' if the freeze went ahead. Said Cr Clarke,

"I am sorry to the ratepayers. I wasn't able to deliver the freeze and I'm sorry for that,"

Click to read the report in the Gold Coast Bulletin.
Click to read the story of the Gold Coast City Council election.

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

A Priceless Bit of Flotsam

One day, Tom, the prospector, found on a small beach, hidden by tall grass at one end of the island, a lifeboat, empty except for a trunk in good condition lying in the bottom of it.

He opened the trunk. Among the articles within, a sort of album caught his eye: “The First Year of Social Credit”. Between the covers he found the first of a Social Credit publication.

Curious, Tom sat down and began to read the volume. His interest grew; his face lit up.

“Well, just look at this!” he cried out loud. “This is something we should have known a long time ago.”

“Money gets its value, not from gold, but from the products which that money buys.

“Simply put, money should be a sort of accountancy, credits passing from one account to another according to purchases and sales. The sum total of money will depend upon the sum total of production.

“Each time production increases, there is a corresponding increase in the amount of money. Never at any time should interest be paid on new money. Progress is marked, not by an increase in the public debt, but by the issuance of an equal dividend to each individual... Prices are adjusted to the general purchasing power by a coefficient of prices. Social Credit...”

But Tom could no longer contain himself. He got up and set off at a run, the book in his hands, to share this glorious discovery with his four comrades.

Next - Money - Elementary Accounting