Chapter XV
The Constitutional Solution

The Federal Reserve System banks, with all of their faults have rendered the people two very essential services.  First, they have created the Nation’s money; Second, they have loaned money.  There is a third service which the Constitution imposed on Congress: "regulate the value of money."  If the bankers have ever tried to regulate the value of money they have utterly failed.

Congressman Patman, speaking before the House, August 22, 1957, said:

"The Constitution is very plain that Congress shall have all power over money, but, obviously, Congress cannot administer that power.  So Congress has delegated it to the Federal Reserve System, which is all right if properly administered. . . . I would not offer any suggestion that would lead to the repeal of a substantial part of the Reserve Act, except one.  That is to have the Government and Government officials carry out this important function of regulating the value of money; in other words, to determine the supply of money, the cost of money . . . there is not enough interest in it. . . yet it is the most important subject that the members of Congress have to deal with."

He had just said that "obviously, Congress can not administer the power of 'Coining money, regulating the value thereof.'"  Yet, he insists that Congress must administer the power to regulate the value of money.  And that is the most difficult thing to do with money, "regulate the value thereof."

If Congress can grapple with the most elusive and the most difficult task before the Reserve Banks, the regulating of the value of money; then the "coining (creation)" of money would be just a minor problem.  Bookkeepers could do that!

The coining and regulating the value of money are responsibilities of Congress, delegated to Congress, and the Constitution nowhere gives them the authority to re-delegate that power.  Those are the two most important functions of the Government, the creation of money, and the regulating the value thereof; and they are public services, which no private corporation could possibly render fairly, because profits would lead them to abuse the power.

The other service the banks have been rendering, the lending of money, is not a public service, but a private right.

Article I, Section 10; The Congress shall have power. . . to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.

There it is in black and white.

Amendment X: "The powers not delegated to the United States by the Constitution. . . are reserved to. . . the people" ; therefore Congress has no right to invade the lending of money, for that is a private right, reserved to the people.

While the Constitution gave "Congress the power 'to borrow money on the credit of the United States," it nowhere gave the Congress the power to lend money.  The founding fathers never dreamed that the United States would lend money.  They empowered Congress to collect taxes, duties, imposts and excises to pay the debts of the Nation and to pay the expenses of the Government.  Therefore, they could not contemplate the Government ever lending money — it would never have any money to lend, because all the money the Government would ever have would be taxes paid in by the people; and the Constitution specifically says that "The Congress shall have the power to lay and collect taxes. . . to pay the debts, and pay the expenses of the Government.  So where would the Government get the money to lend?

They never dreamed of Congress lending the Nation's Credit.  They never thought of the credit of the Nation as being something to lend.  They thought of the credit of the Nation as being the security it had to justify lenders to lend money to the Government.  Had they understood the modern mechanics of money as refined by the banking system, they would not have used the word coin, but would have used the word provide.

Therefore, the Congress should provide the Nation its money, and regulate the value of money; but it should not lend money.  And conversely, the Banks should lend money and not provide it.

The two functions of creation and control of money should be restored to Congress; and the lending of money should be the private right of private persons.

To accomplish the returning of these powers to Congress, the Congress should take the following steps:

It should enact the United States Depository law; which should provide:

1.  That the Depository System would be an agency of the Government, under the supervision of the Treasury of The United States.

2.  It should establish Depositories in every community in the Nation, convenient to the people, as post offices are provided.

3.  It should provide that the whole duties of the United States Depositories would be (a) to keep the people’s deposit accounts; (b) to cash their cheques; (c) to accept their cash and cheques for deposit and, (d) provide an ample supply of cash register change; (e) to supply depositors with cheque books, very similar to Travellers Cheques.

4.  It should provide that the depositories could neither lend nor borrow money; that they could not buy or sell investment obligations; therefore there would be no need for loan experts, bond experts, stock experts; just the simple routine of keeping the people’s deposit accounts, cashing and clearing their cheques — bookkeeping would require only the services of clerks, tellers, bookkeepers.

5.  It should provide for the leasing of one-story buildings at no higher rental than commercial rentals, for the work would be very similar to the running of the post offices, construct vaults, install equipment for handling the people’s deposits.

6.  It should have minted ample quantities of coins, and an ample supply of Treasury notes, bills, should be engraved.  Each depository should then be supplied with ample cash to supply the depositors with pocket and cash register change.

7.  It should provide for the employment of a Secretary of each Depository, and such clerical help as needed, as the post offices are manned.

8.  It should provide, after these preparations had been made, that on a certain date, all persons, firms, and institutions, other than banking and related corporations, would turn over to the closest Depository, all cash in their possession for deposit with the Depositories.  Then the Depository would let each draw out at once, the new currency (coins and bills), in sufficient quantity for pocket and cash register change or as much as each wanted.

9.  On the following day, all banks, trust companies, and other financial institutions that carried the people’s deposits would deliver all cash to the depositories, but they would not be given deposit for the cash, and their deposit books to the nearest Depository that Depositories might transfer the people’s deposit accounts to the books of the Depositories.

10.  On the following day, all persons, firms and institutions, and corporations, other than banks and related financial institutions, would deliver to the Depositories all U.S. Bonds in their possession, and the Depositories would give each deposit credits for the principal and accrued interest on each bond — then burn the bonds.

11.  On the following day, banks and all financial institutions would take their bonds to the Depositories, and surrender them to the Depositories; but the Depositories would not give them deposit credits for the bonds, unless it was shown that they had bought them from private persons without using new deposits, — and burn them.

12.  It should outlaw all deposits and cash not surrendered on day designated.

13.  All currency and coin surrendered would be destroyed that is, the bills would be burned, and the silver, nickel and copper coin would be sold as metal.  It would have been replaced with Depository currency.

14.  It should limit cash withdrawals to just pocket and cash register change.

15.  It should declare the deposits of the people money transferable by cheque.

16.  It should make personal cheques legal tender for all debt, both public and private.

17.  It should provide that the forging of a personal cheque, the writing a cheque against insufficient or no funds a felony, punishable as counterfeiting.

18.  It should have no clearing houses; no intermediate station through which cheques would pass when drawn on a Depository other than the receiver of the cheque’s Depository; but each cheque, when deposited in a Depository other than the giver’s account, and sent directly to the giver’s Depository, where it would be debited against the account of the giver of the cheque.

19.  It should outlaw all other monetary funds, such as reserve funds, bank funds, bank credit, reserve credit (all are fictitious funds), etc., and declare the total Deposits the only monetary funds-the Nation’s money.

20.  It should ascertain the volume of money required to carry the Nation’s business for one year; then adjust existing Depository deposit totals on that basis.  If, for example, it required $350 billion to carry on the Nation’s business one year; but the Depository deposits total is $700 billion; 'then the Congress would order the Treasurer to instruct each Depository to cross out the Deposit Balance of each depositor, and write a new balance.  If the depositor’s balance were $400, the new balance would be $200.  This would not cost the depositor a penny, because the commodity prices would be marked down automatically 50 percent, and his $200 would buy as much as his $400 would before the readjustment.

Inasmuch as all investment obligations are as truly monetary values as are deposits, it would be manifestly unfair to cut the people’s deposit in half, and make no adjustment of the investment obligations; so Congress would by legislation devalue all investment obligations 50 percent.  Then the giver of the note would not have to pay a phoney value note with sound dollars.

This has been a trick of bankers for years: fill their vaults with investment obligations — your notes, mortgages, etc., then cause a money stringency which would send the volume of dollars to the bottom of the pit, making your dollar an exceedingly valuable thing, and very difficult to get; then demand payment of this "inflated debt (investment obligation)" with the hard-to-get sound dollar.  This alone should forever condemn private banking, which enables them to fill the bloodstream of industry, business and commerce with hundreds of billions of phoney, counterfeit dollars, then squeeze these phoney dollars out, and demand pay in the 100-cent dollar.

It would be like my filling the pockets of all my neighbours with my "worthless IOUs" then compelling em to pay off the notes I got for my IOUs with gold  dollars.

It is like lending a wheat grower $5,000 when wheat selling for $2.00 a bushel, and compelling him to pay the $5,000 when wheat is selling for $1.00 a bushel.  When money fluctuates investment obligations should fluctuate in lock-step with it.  Of course that would compel Congress to "fix the ceiling over and a floor under prices, wages, rents, and all goods for sale."

21.  Require all persons, firms, and corporations — savings, and Loan corporations, Trust corporations — keep their cash and deposits in the Depositories of the United States.

22.  Since the creation of the Nation’s money, fixing its value, keeping the people’s deposits "cashing and clearing their cheques" is the most important service Congress can render the people all expenses of the Depositories shall be paid out of the Government’s general revenues.  No service charge would be made.  No money orders would be written.  A depositor would mail his cheque to any other community in the Nation in payment of a monetary obligation at a cost of only 3 cents.  The free flow of deposits in the stream of cheques is absolutely necessary that our trade and commerce may be active, unhampered, unimpeded.  A dollar must move to any point in the United States, and pay a dollar obligation.

23.  The Congress, would provide a separate department of the Treasury through which all foreign exchange would be handled, preventing outside money coming in and flooding our money supply, except under express, orders of Congress.  It would, with other nations, arrange exchange ratios, and otherwise keep a close watch on our foreign and domestic money.

24.  Inasmuch as every capital investment, under the erroneous, practice of "the flag follows men and money," in a foreign country, as well as all loans, involving the Government, no investment in a foreign country or a loan could be made by any citizen or corporation to a foreign citizen, except by special permit granted by Congress after careful investigation by its Foreign Finance Commission, with like permit from the Government or Nation where investment, or loan is to be made.  And should foreign investors seek to invest in the United States industries, the same procedure in reverse would have to be followed.  It would be less costly to take these precautionary steps than it would be to send the Marines to collect debt — provided that no investment or loan to a foreign Nation would involve the credit of the United States — all foreign loans and investment would be wholly at the risk of the lenders and investors.  All expenses of the FFC would be paid by lenders and investors.

25.  Congress should provide a neutralizing step to offset the transfer of home deposits to foreign countries, so that foreign loans and investments would not reduce our volume of home deposits.  This could be done by Congress selling the lenders and investors international exchange for their domestic deposits, which the Treasurer would deposit to the credit of the Government.  The Government would cheque these deposits out to the people in payment for services and goods; so it would flow right back into the Depositories.  On payment of the loan, or the return of any foreign investment in the form of international exchange, the Government would buy the exchange and pay for it out of revenues, which would offset the original exchange sold.  All outgoing and incoming deposits would tend to neutralize each other.

26.  The Congress would in co-operation with other nations create and set up an international exchange Depository to be used in all international payments, etc.

27.  After the United States Depository System had been set up, after all monetary funds had been transferred to the Depository books, the Congress would repeal all banking laws, and outlaw the use of the word bank, or the use of terms indicating that the nation was interested in any corporation, or private business-such as "U.S.," "United States)" or "Federal."

28.  In the same act of repealing all banking laws, the Congress would enact lending laws, which would govern all money lending.

Now let’s explain many of these provisions of the Law which Congress shall enact in creating the United States Depository System, in obedience to the must of the Constitution.

First.  There will be no interruption of the flow of money; for the Depositories will be open, operating, with vaults full of currency of the new series-coin and bills.  The day that the customer brings in his cash, the opening day of the Depositories, he will deposit his old cash, and get new cash in lieu of it.  The next day, the deposit books of the banks, trust companies, all institutions that keep the people’s deposits on their books, will be in the Depositories, and depositors will be able to cash their cheques at the Depositories, or make deposits, as usual and in the same manner as when going to banks.  Except that you will go into buildings very similar to post office buildings, and get new money, a new form of cheques, the normal course of your life will not be affected.

You might go into a "store building" re-equipped for the use of a Depository, as you go into a "store building" in small towns, or suburban sub-station post-offices, but your Depository would be as important as any other Depository, and render you the same service any other Depository would render.  All Depositories would be on same basis — no small depository in even cities — all would be directly under the Treasury.

You would see no long line of desks with "important-looking" men, with a stenographer sitting near by to write dictation, prepare loan agreements, etc.  There would be no "private office" where the "President" worked his game, or where the "Stock Experts" advised you to buy this or that bond or stock.  There would be no U.S. Bond window, nor money order window.  There would be only a "deposit window, or windows," where you would walk up and draw out money, or deposit cash and/or cheques; and another window where you would get your Cheque Books.

There would be no five million dollar structure to fill you with awe; there would be no imposing guards to impress you that our business is very important.  There would be just "our sort of folks" — clerks, tellers, bookkeepers to wait on you.  You would feel so much at home.  And every time you saw the words on windows, on front of building, "United States Depository," and on your currency and cheques "The Treasury of the United States," and remembered that no post office had ever failed, that the United States is, or would be, the soundest institution on earth, there would never again be in your mind a fear that "this Depository may fail, and then I will lose all my money."  Complete confidence in the United States Depositories would quiet your fears, comfort your soul, and calm your nerves.

There would be nothing going on in that building but (a) cashing cheques, or receiving them for deposit; (b) your getting your cheque books; (c) and busy people debiting and crediting the accounts of the depositors would pervade these buildings.

If you wanted to send money to a distant community you would not go buy an Express Money order, or a post office money order, you would just put your own Treasury cheque in a envelop, address it, and place a three-cent stamp on it, and mail it.  Your Depository cheque would be as good as a Nation could make it, as safe as a money order could be; for every cheque you wrote would be "legal tender" money.

The Bureau of Engraving and Printing in Washington would print all Depository Cheques.  They would be blank cheques, similar to an American Express Company cheque.  The cheque would be the same size and design as that chosen for United States Treasury Certificates, with only the capitol building at Washington as background.

The top half of the Treasury cheque would be very similarly worded to the above cheque.  In the left corner the wording "when countersigned below with this signature."  In right corner would be the serial number as above — each depository would have a key number, so that wherever a cheque turned up, its home depository would be easily ascertained.

At top left would be line for signature of cheque holder as on the above cheque, and date line on right, as in above cheque.  Across centre would be printed in large type

THE TREASURY OF THE UNITED STATES OF AMERICA

"The cheque is legal tender for all debts, both public and private," when properly signed in lower right corner with same signature as appears in upper left corner.  In lower left corner would be printed the signature of the "Treasurer of the United States."  Then the following wording would appear as on common cheques:

Pay to the Order of . . . . . . . . . . . . . . . . . . . . . $ Dollars.

Of course no amount would be printed on the cheque, for it would be used exactly as today’s bank cheques.  It would be a domestic cheque, good in any place in the United States or its possessions.  A special form would be used for foreign trade.

You would buy the cheque book and pay with your deposits, which would lower your deposits that amount.  There would be no charge for the book, for it would be a form of money which the Government would provide the depositors.

If you wanted a $500 chequeing account for the immediate future, the Secretary of your Depository would write that amount on record page which each cheque book would have, and he would sign underneath the amount, and the buyer of the cheque book would sign beneath his signature.  There would be lines for entering the date, serial number, person to whom cheque is given, and amount; so that the cheque book owner could keep an accurate record of cheques written; that he might not write a cheque against insufficient or no funds.

The buyer would indicate how many blank cheques he wished to have, and these would be fastened in the book just as travellers cheques are fastened.  If he ran out of blank cheques, he would go and buy another book, adjusting the unused balance, if any, of former cheque book; and this would be repeated as often as he ran out of cheques.

Writing a cheque against no funds or insufficient funds, or forging a cheque would be a felony and punishable as counterfeiting.  There would be no excuse for writing a cheque against insufficient funds, because the person would be able to keep his balance accurately.  Should he write cheques totalling more than his total money written on his cheque book, the last cheque would not be cashed, until he came down and re-adjusted his chequeing funds, it matters not how much he night have to his credit in the Depository.  Of course you could go to the depository and draw out cash just as always, and the free use of-the cheque would not be limited, only protected.

There would be no blank cheque pads, as now, lying about in every conceivable place, inviting the witless to write cheques against insufficient funds; or forging a cheque against another person.  It would be a felony for any person to be found in possession of a cheque book, which he had not bought from the Depository.

Inasmuch as money would be available in large volume, the people would use cash a great deal more than now.  A depositor would exchange deposits for cash and exchange cash for deposits — they would be interchangeable.

They would be dual cheques.  They would have the Secretary of the Treasury’s signature, making them legal tender money, when you signed it properly; and this would make them your personal cheques.  Of course with these cheques flowing freely throughout the nation, you would never buy a postal money order, an express money order, nor a travellers cheque from others.  You would use your own cheque instead.  That would save the people of the Nation hundreds of millions of dollars a year, and endless hours going to some money order station for a money order.  This Treasury cheque in a 3-cent postage envelope would pay a bill anywhere in the Nation.

Congress would compel all persons, firms and corporations to keep their money on deposit with the Depository nearest them, and outlaw anyone lending another cash, and taking a note for it, because there would be no way for Congress to keep informed of loans, their size, and the terms of the loans, etc.  This must be known, because the total supply of money must always be under the direct control, and the watchful eyes of Congress.

When the Treasurer orders the Bureau of Engraving to mint and print an abundance of currency, rather prodigally, they might mint and print ten times the amount needed, and that would not affect the total volume of money one penny; because the cash would never be on deposit as money; it would never be used, or even considered monetary values, until a depositor drew cash out, and on it re-entering a depositor’s hands, it would become actual money, legal tender, and serve in lieu of the personal cheque in making small purchases and paying small bills; and the depositor’s account, of course, would have been debited the amount of cash he took out, and when others brought the cash back for deposit, that would raise the deposit level back to normal, and the cash would go back to the vault, to lie there, worthless, as an unsigned cheque, until taken out again by a depositor and put to work.

(Note: I notice that "rags to riches" Texan, Secretary of the Treasury Bob Anderson, is putting "In God We Trust" back on the $1.00 silver certificates.  You recall that it was dropped after Civil War, in 1874.  After stomping the life out of the South, the Treasury saw no need of calling upon God any more; but now faced with another depression, Bob’s putting it back on just $1.00 bills.  That’s a compliment to us common folks; for only we are supposed to believe in God. . . a $1.00 bill is about our limit in size.  Reminds me of Bob’s old grandfather who was shingling his house back in Mississippi.  Near the ridge, he began to slip, and cried, "Oh God, save me."  His pant’s caught on a nail, and the old fellow said, "Never mind, God, a nail stopped me.")

These bills would be similar to a 10 dollar Federal Reserve Note.  "Treasury Note" would replace "Federal Reserve Note, and The Treasury of the United States of America would appear instead of The United States of America.  The picture of a man’s head would disappear, and the picture of the Capitol of the United States would be the background.  At the bottom of the bill would be Ten Dollars only, and the numbers and lettering in the corners would be about the same; but all serial numbers would be left off, with perhaps the seal of the United States superimposed on the picture of the Capitol.  There would be no redeemable clause, but beneath the Treasury of the United States would be "This note is legal tender for all debts, both public and private."  Both sides of the bill would be identical, and printed reverse, so that when you turned a bill over, the top would be right side up.

These bills would be in $1, $3, $5, $10, $25, $50, and $75, all identical except in figures and Ten Dollars.  The colours would be different.  $1, pink; $3, blue; $5, purple; $10, green; $25, maroon; $50, red, and $75 orange.

The Treasury would have the mints to use a very light, hard, durable metal and mint an abundant supply of small change, nothing higher than a 50-cent coin.  These would be different in size, so that these coins would be easily distinguishable.  The coin, as with the bill, would have no intrinsic value.  Each would be stamped with the "United States of America" at top, and at bottom One Cent, or Ten Cents with large figure in centre, and so on.  Both sides of the coin would be stamped the same.  "In God We Trust" and other meaningless words would be left off.  Instead of a "head" a replica of the capitol building would be stamped on each coin with figure superimposed.

These tokens along with the paper tokens would be in such ample quantities, and they would be so durable, that replacements would be rare; so the mints would not have much to do; and the Government might make a small income by letting them coin souvenirs for the folks.

Expenses of the Government would tumble.  You might say that our taxes would jump and jump, but when you cut the Government out of business, and confine its official family to essential routine duties, thousands of unneeded employees would be dropped from the pay rolls, and the soaking of the Government in "foreign" loans, parity payments, and the hundreds of other spillings from Uncle Sammy’s pockets, our national expense account would be reduced to an easy load.

You are thinking about what it will cost to "pay out of the general revenues the expenses of the Depositories."  Well, remember that you would cease paying the bond holders (bankers) $10 billion a year, and there would be no bonds to pay ultimately.  Of course, bankers and bond holders do not expect or want the Government to payoff the bonds.  Pay them off and they would not get that $10 billion annually from the tax payers.  It would be like taking away from them a great estate that paid them $10,000,000,000 annual rental — these Bonds are one of the geese that now lay the golden eggs, and you would save (taking into the picture the exorbitant rate of interest the Government pays on short-time loans) $20 billion in interest annually.  In fact, on public and private debts, the people pay much above $50 billion in interest annually!

So this saving alone would many times pay the expenses of the Depositories.  But, as I sit here, this morning, any morning, and write this story, constantly there is the thunderous noise our "jet fighter planes" fill the air with.  When we get control of our money, arrange amicable international exchange, these army camps all over the world, which we must pay the costs of, will disappear.  Great armies will disappear; the Federation of the World will become a reality; and there will be no "ghastly dew from the Nations’ airy navies grappling in the central blue; far along the world-wide whisper of the south wind rushing warm, with the standards of the people plunging through the thunder storm (for) the war drums will throb no longer, and the battle-flags (will be) furled in the Parliament of Man, the Federation of the World.  Then the common sense of most (the masses) shall hold a fretful realm in awe, and the kindly earth shall slumber, wrapped in universal law."

You are fed daily by radio TV, and Press awful hates, the national and international bankers shovel out to you.  Once hate of the Kaiser, then the Hitler, then the Stalin, the Japs were peddled, now the Russians, the Nassars, the Tartars, the Chinese are held up in scorn that we may hate them.  And back of it all is "international money," the desire of each nation to control.

Until the Russian revolution in 1917, all of our national life, Russia had been our bosom friend; and never a note of her feudalism; but when the masses revolted, and their leaders set up "communism," and quit using our money, the bankers and international money lenders began a systematic hate campaign, trying to keep the people hating the Russians; because after all is said and done, the only power on earth that the despoilers of men fear is the aroused enlightened masses.  They have no fear of brainwashed people.

These people who are leading our war manoeuvres — now a perpetual war — a cold war when not hot with shooting — not only keep the masses in bondage, but make billions, aye, trillions out of wars.  Today, with no Nation on earth wanting to make battle with us, we keep calling Nassar, King Saud, the Russians sons of bitches, and continue to drop those ghastly bales from the central blue, as a threat and warning that "you’ll get it, if you attack us."

This insane thing is costing the people of the United States $65 billion a year, or $130 billion every two years as against $7 billion on all other government expenditures!  With the Federation of the World, there would be no "national armies," just a small police force under the Federation of the World.

The Reader’s Digest carried a story the other day about the miraculous comeback of the West Germans.  It said that West Germany had made a miraculous comeback, and gave three reasons:

(a) money pouring in from the United States,
(b) no army to support, and
(c) hard-working Germans.

Then it said that the Minister of Finance had squeezed the water out of the Reichsmark, etc.

Suppose we could squeeze that $65 billion a year out of our budget!  We could as we would squeeze (if the Congress takes over the creation and control of money) the $10 billion out of Bond taxes.

Let Congress take over the creation of money, the cashing and clearing of our cheques, with the safeguards we have set forth above, and there will always be sound money, fluid money, ample money, universal confidence in our money, and all thought of "bank failures" will forever disappear.

It is astounding that millions of people in all depressions and bank failures lose billions of deposits, yet grumble to themselves, and go right on doing business with the same gang who has robbed them for 150 years here in the United States. . . it was more decent of the Government from the closing of the Second United States Bank by Andrew Jackson to the passage of the Reserve Act in 1913, under Woodrow Wilson, because they merely sat idly by and let private bankers go ahead in their boom and bust muddling of the people’s economy than since 1913, because in the Reserve Act Congress adopted as law the rules bankers wrote, and permitted the impression to grow in the minds of the people that the Government creates and issues all of our money.

Finally let me point out to you that governments have uniformly punished severely counterfeiters because adding new and uncontrolled money to a nation’s money supply brings the counterfeiter into competition with the producers of goods, and every dollar added above the existing supply cheapens every man’s dollar.  It lets the man who does not produce or serve, take of the products of others and their services without giving value received in return.  They fight counterfeiters because it is an axiom in money that every time you increase the volume of money in circulation, you lower the buying power of the dollar.

That is the basic reason why we should forever destroy the debt dollar.  It is a phoney dollar, and not only competes with the sound, honest dollar, but utterly destroys the fixed value of a dollar.

So accustomed to the creation of money by making loans and buying investment obligations have we become, that even Congressmen are praising our "debt dollar."  Debt has always been the enemy of sound business practices, the bane of stable governments.  The wisest plan ever set up for industry, business) individuals, and governments is the "pay-as-you-go" plan.  Corporation fighting to lower their income 'tax burdens uniformly have pleaded "we must have funds for replacement, improvements, advancements," which simply says, "we must pay-as-we-go to be successful."

Therefore, there should be no "debt-created dollar."  When the Treasury (when there comes a need for greater volume of money to meet the business demands), gives the Government credit for say $10,000,000, this would not be a debt dollar; for there would be no bonds issued as evidence of a debt, as now under the Reserve System.  It would be all of the people adding more dollars to the money supply, that there might be enough to meet their business demands.  The dollar would immediately begin serving all of the people, because the Government would cheque it out to all of the people who sold goods to the Government, or served the Government, thereby saving for the time being the collection of $10,000,000 in taxes.  These dollars would find a welcome place in industry, not as cheaters of the old dollars, but as helpers making it easier for the old dollars to carry the economic load of the Nation.

As often as, business increased to such volume that the current volume of deposits would be inadequate to carryon the Nation’s business; or, should an emergency come as in the 30s, or due to war, and there became a need for greater funds than taxes and revenues provided for the Government, Congress would by Act instruct the Treasurer to give the Government deposit credit for the money needed, say $100,000,000,000 (billion).  This would be chequed out to the citizens of the Nation for goods and services, and would immediately become earned dollars, and remain in the hands of the people, enabling the Government to meet the emergency; and when the emergency was over, Congress would ascertain the period over which the Nation could retire these excess deposits, and, say it is 20 years, each year the Treasury would fail to take deposit credit for $5 billion, which would restore the volume of deposits to peace-time level.  AND THERE WOULD BE NO $100 BILLION IN U.S. BONDS ISSUED TO PRIVATE CORPORATIONS.  It would be then as now, except the bonds would not be printed!  That would be a saving of the principal $100 billion, and $3 billion a year interest.

No, no my fellow-citizens; not a debt dollar, but an earned dollar, and these $10,000,000 would enter the hands of those who earned them, because each had rendered service or sold the Government goods.  And every person thereafter who would receive one of them would have earned it.

The dollars themselves would be as negligible as the white slips of paper put into voters hands when they are called upon to vote in an election.  The act of putting them into the voters’ hands would mean nothing.  The writing of the name of person on it and placing it in the hat would give it value.  When the Government was given credit for the $10,000,000, it was like putting the slips of white paper on the voting table; but when the Government wrote cheques and sent them to those who sold goods or rendered the Government service, those $10 million became actual money in circulation. . . the best money in the world, "earned dollars."