Credits for Everybody
By Alfred Lawson
How Everybody Is Milked
Everybody does not understand finance any more than everybody understands physics or chemistry.
Finance is a special study in itself that requires the concentration of mental effort for years to master, especially the crazy finance that enslaves the world today.
Therefore, the author does not intend to befuddle everybody, for whom this treatise is written, with technical language or arguments, or long tailed figures to prove anything. He simply intends, with ordinary language and positive facts, to show the inefficiency of the present financial system and offer a genuine, and up-to-the-minute remedy for it.
A few big figures will have to be shown, however, so that everybody will get a general idea of the subject. In this way everybody will be able to grasp the principle outlined without having to wade through technical details.
It is estimated that the entire wealth of the United States in 1931 has a value of about $400,000,000,000 and that the annual income from the products of its industries is about $100,000,000,000, while the total amount of money in circulation is not more than $5,000,000,000.
These figures show that the usable money in this country is but one twentieth of the amount represented by the annual income from the products of its industries.
That means that $5,000,000,000 in money must be made to finance an annual business of $100,000,000,000 beside the turn-over in bank deposits through petty transactions.
To make Five Billion Dollars in money do the work of more than One Hundred Billion Dollars in business puts a tremendous premium on money and gives to those who own it control of industries, and trade generally, through loans upon which interest must be paid.
Before the wheels of industry can be started; before manufacturers can open their factories; before constructors can erect new buildings; before real estate can be improved; money must be borrowed for the purpose and interest must be paid for the use of it. And, do not forget that this money has no value whatsoever, except that granted by everybody through acceptance as a trade convenience.
And right now, the money that is made for everybody's use and benefit, cannot be had by everybody to use, nor does it benefit everybody. It is manipulated by schemers who control it to milk everybody of the fruit of their labors through a system of graft known as interest paying for money loans. So instead of being a convenience and a benefit for everybody, it is a plague that continuously exterminates the people of all classes and stations.
Ten percent of the population of the United States control 90 percent of the money and if this money slicing is kept up much longer through the payment of compound interest, the percentage of population controlling the money will shrink to 1 percent or a fraction thereof. This shrinkage of the ownership of money will continue as long as the interest system is kept up, all laws for the regulation of industry to the contrary notwithstanding.
Compound interest forces interest to be paid on interest and through this process the big schemers will eventually swallow up the little schemers, and sooner or later, either directly or indirectly, a few enormous gluttons will control all the wealth of the nation.
Today (1931), the heads of 300 corporations control the finances of 600,000 corporations.
Loans, aggregating $5,000,000,000 at 6 percent interest forces everybody to owe the money manipulators $300,000,000 more at the end of the year than at the beginning of the year, for which nothing tangible is given in return.
Then the next year everybody must pay interest on $5,300,000,000 instead of on $5,000,000,000, which then increases the annual amount of interest to $318,000,000, which added to $5,300,000,000 makes a new top of $5,618,000,000 upon which interest must be paid for the third year. And in this way the pyramid continues to grow bigger and bigger each year until the earnings of the interest exceed in amount the original money supply of $5,000,000,000.
Of course, everybody cannot continue to pay interest on loans in money when the interest charges amount to more than there is money in circulation. So to iron out this difficulty and balance things generally the schemers gently but firmly take possession of everybody's real estate, factories, stores, homes, and other valuable things in lieu of the unpaid interest.
So by this legal method, made lawful by legislators who are aided and abetted by those who control the money supply, the biggest schemers will not only swallow up the supply of money now controlled by the smaller schemers, but they will continue to add to their greater wealth such things as real estate, factories, stores, farms, and homes until a small number of them will practically control all the wealth of this country, and thus keep everybody and its government in perpetual indebtedness from which neither can ever escape.
In some states it has been made lawful to charge everybody a legal rate of 6 percent interest on loans while in other states the privateers may put a legal tax of 7 percent interest on money loaned to everybody.
In most states it is made unlawful to charge more than 6 percent or 7 percent interest rates, which proves that even the big schemers realize it is a crooked game and do not want to milk everybody for more than it can produce.
The money privateer, as a rule, is a wise bird who understands that everybody is the goose that lays the golden eggs, and that it is not to his advantage to kill the goose, but simply to take its eggs. He also understands that it is not to his advantage to be bothered with the ownership of the goose with all of the drawbacks of rearing it from infancy, or keeping it when sick or in its old age when it is incapable of laying eggs. In fact, the only time this wise money bird wants to recognize the goose at all is when it s laying eggs.
So, after much consideration of this important subject, the wise bird has decided that it will allow the goose a few of its own eggs for sustaining purposes, while it is capable of laying them, and take from it all of the rest of the eggs it lays through a legerdemain system known as the medium of exchange, with a big price on the medium.
This is remarkably clever from the viewpoint of the wise bird, but the conundrum is, how much longer will the goose stand for it?
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