[PDF]Money Manipulation and Social Order

The Maria Regina Series — No. 5.



MONEY MANIPULATION

AND

SOCIAL ORDER



BY
REV. DENIS FAHEY, C.S.Sp., D.D., D.Ph., B.A.

Professor of Philosophy and Church History,
Holy Ghost Missionary College, Kimmage, Dublin.



" No servant can serve two masters .... You cannot serve God and
mammon. Now the Pharisees, who were covetous, heard all these things :
and they derided Him" (St. Luke, xvj, 13, 14).



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MONEY MANIPULATION AND SOCIAL
ORDER



OTHER WORKS BY THE REV. DENIS FAHEY, C.S.Sp.

The Mystical Body of Christ in the Modern World.
Browne & Nolan, Ltd., Dublin.

The Mystical Body of Christ and the Reorganization of Society.
The Workingmeris Guilds of the Middle Ages.
The Kingship of Christ and Organized Naturalistn.
The Forum Press, Cork.

The Rulers of Russia.

Holy Ghost Missionary College, Kimmage, Dublin.



Imprimi Potest :

D. MURPHY, C.S.Sp.,

Prtep. Prov. Hib.

Nihil Obstat :

P. SEXTON, D.D.,

Cemor Deputatus.

Imprimatur :

t% DANIEL,

Episcopus Corcagiemis.

Corcagiee, die n B Mali, 1944



First printed, 1944.



Printed in Ireland at Parkgate Printing
Works, Dublin, bv Cahill & Co., Ltd,



DEDICATION

To the Immaculate Queen of Heaven and Earth, to St. Joseph,
the Head of the Holy Family and the Protector of the Universal
Church,, to St. Thomas Aquinas, the Catholic Church's Official
Teacher of order, and to St. Brigid of Ireland, who was so well
versed in the arts of rural life, this book is lovingly and humbly
dedicated by the author, in the hope that by their intercession it
may contribute in some little way to the return of the world to
the full acceptance of the rule of Christ the King, so that social
environment may once more sustain men in their efforts to live
as members of His Mystical Body.

" / have alluded to the appalling progress of desert-making on
behalf of greed throughout the world. Erosion is a symptom of
sickness in any civilization. To-day, as modern civilization is a
world complex, it bids fair to engulf mankind. Already the
spectre of world famine casts its shadow ahead. Even in forestry
there is more need to plant trees to preserve life than there is to
exploit forests for felling. The financial rulers have the greatest
responsibility for all this, since the system they administer has
faithfully impletnented human greed and ignorance. Financial
greed has not only led the van, but directed the attack ; and,
having lent at interest sufficient money to exploit the soil, it has
thereafter diverted the springs of credit that might have repaired
the damage due to soil exploitation to the profitable business of
transport, public utilities and luxury trades. The result is that
it is as devastating to human material as it has been upon the
soil. . . . Most of this degeneration can be laid finally at the
door of finance, just as to the same door we can lay the twenty
to thirty million unemployed who haunted the streets of Europe
and America " (Alternative to Death, by the Earl of Portsmouth,
pp. 40, 37),



FOREWORD

The author begs to thank the Editor of The Standard
(Dublin) for kindly permitting him to reprint the large portion
of Appendix II which appeared in that paper and also for the
permission, generously accorded, to make use of the other
passages quoted from that paper. He begs to thank the
Editor of The Weekly Review (London) for kindly acceding to
a similar request and also the many Publishers, whose works
are quoted. He hopes to interest his readers in some of the
valuable works that have appeared in recent years on this
important subject.

To those who are beginning the study of money, the
author recommends Promise to Pay, by R. McNair Wilson
(George Routledge and Sons), The Root of all Evil, by
Sir Reginald Rowe (Economic Reform Club), and The
Modern Idolatry, by Jeffrey Mark (Chatto and Windus).
These can be followed by Professor O'Rahilly's Money
(Cork University Press) and The Role of Money, by Professor
Soddy (George Routledge and Sons). To those who deplore
the decay of the country-side he specially recommends
Alternative to Death, by the Earl of Portsmouth (Faber and
Faber), Look to the Land, by Lord Northbourne (J. M.
Dent and Sons), and An Agricultural Testament, by Sir
Albert Howard (Oxford University Press).

By an oversight it has not been mentioned in the text
that An Outline of Money, by Geoffrey Crowther, is pub-
lished by Thomas Nelson and Sons, Ltd., and that Professor
Skinner alias Montagu Norman, by John Hargrave, is
published by Wells Gardner, Darton and Co., Ltd.



CONTENTS

PAGE

Dedication v

Table of Contents. ... ■ vii

CHAPTER f
Demand for Monetary Reform in England i

CHAPTER II

olitical, Economic and Financial Principles of St.
Thomas Aquinas . . . . • 7

CHAPTER III

The Functioning of the Gold Standard Monetary
System :
Money-Manipulators and Governments — Defective
Principles adopted by the Bank of England with
regard to the Issue of Money — The Bankers' Discovery 1 1

CHAPTER IV

National Finance and the Gold Standard :

The Meaning of Inflation and Deflation — Some Historical
Examples of Planned Deflations 20

CHAPTER V
nternational Trade and the Gold Standard :

The Urge to War and Destruction 31

CHAPTER VI

The Effects of the Gold Standard System on Human
Life :

Farming — Bread . . . . 40

Vll



viii Table of Contents

CHAPTER VII

Usury :

The English Monetary System and Ireland . . . . 52

CHAPTER VIII

Outline of Principles of Monetary Reform :
National Monetary Reform :

(a) Abandonment of the Domestic Gold Standard.

(b) Issuing of Lawful Exchange-Medium by the

State.

(c) Lending of Lawful Exchange-Medium by

Banking Guild.

(d) Stability of Price Level 60

CHAPTER IX
The Full Return to Order 76

APPENDIX I
Money— Bank— Deposit 85

APPENDIX U

Gardens, Fertilizers and Finance :

Inorganic Fertilizers — Artificial Manures and Finance
— The Ideas Underlying the Bio-dynamic Method of
Composting . . . . . . . . . . . . 87

APPENDIX III
Destruction of Quinine to keep up Price . . . . 96

APPENDIX IV
Outline of English History 98

Index of Proper Names 101



CHAPTER I

DEMAND FOR MONETARY REFORM IN ENGLAND

The following letter was addressed in 1943 to His Excellency,
Most Reverend William Godfrey, the Apostolic Delegate
to Great Britain, to the Anglican Archbishops of Canterbury,
York and Wales, and to other Ecclesiastical Dignitaries
in Great Britain. It was accompanied by a proposal to
form an association having for object an honest National
Money System for England. The letter runs as follows :

Your Grace,

(1) We, all of British blood and descent, having studied the
fundamental causes of the present world unrest, have long
been forced to the conclusion that an essential first step towards
the return of human happiness and brotherhood with economic
security and liberty of life and conscience, such as will permit
the Christian ethic to flourish again, is the immediate resump-
tion by the community in each nation of its prerogative over
the issue of money including its modern credit substitutes.

(2) This prerogative has been usurped by those still termed
in general " bankers," both national and international, who
have perfected a technique to enable themselves to create the
money they lend by the granting of bookkeeping credits, and
to destroy it by the withdrawal of the latter at their discretion ,
in accordance with entirely mistaken and obsolete ideas which
they do not defend against impartial and informed scientific
criticism and examination. In this way a form of national
money debt has been invented, in which the lender surrenders
nothing at all ; and which it is physically an impossibility for
the community ever to pay. Any attempt to do so produces
the artificial " economic blizzard," as it did after the 1914-18
war.

(3) This has led to the gradual rise of a form of national,
international and supra-national power, dominating through
its monopolisation of the National social credit all the basic



2 Money Manipulation and Social Order

creative activities of mankind. Thus, in this as in other
countries, it has become impossible to obtain publication in
the Press, or to broadcast on the radio, the truth concerning
this economic enslavement which holds the peoples of the
world in thrall.

(4) Under the world's present financial system the money,
except for a now trifling proportion, is originally created by
the issue of a loan' at interest by the " bankers," who lend
nothing themselves but in effect make a forced levy in kind
on the Nation by conferring on the borrower the power to
purchase a corresponding amount of wealth on the market,
which wealth does not belong to them, or those who borrow
from them, but to the community. The proceeds of the issue
of new money — whether of paper or any other form of credit
money — belong to the Nation in which it is, or is accepted
as, legal tender, and not to the issuer. Herein lies the basic
flaw of the existing monetary system.

(5) By this method, which has come to be regarded as legal
by virtue of established practice, the banks in our country are
responsible for the issue of new money of their own creation
amounting to-day to between two and three thousand million
pounds — this being the difference between loans extended,
including those to themselves, and those repaid since they
instituted the system a number of years ago — and are thereby
extracting by means of interest an annual tribute from the
Nation of over £100,000,000 for what has now become to
them a relatively costless and riskless service. But the real
danger, well understood in every preceding era of history, is
the undermining of all lawfully constituted authority by the
creation and destruction of money carried on in secret for
private gain and the acquisition of power.

(6) All forms of government, whether conservative, liberal
or labour, fascist, socialist or communist, fall alike under the
control of a political Power Group, which is ultimately, and
in large measure unwittingly, dominated by the Money
Creators and Manipulators. In this way the national political
power, which, if the individual is to enjoy the maximum of
personal freedom consistent with his duty to his conscience
and his fellows, should be distributed throughout the people,
has been usurped without their knowledge or consent.

(7) It will be seen that the present monetary system, which
by its disregard of primary physical and ethical laws is inevit-
ably destroying the civilisation into which it has been
introduced, requires rectification both in its material technique



Demand for Monetary Reform in England 3

and in the ethics which at present inspire and control this
technique. It is particularly in view of its devastating effects
in the moral sphere that we have ventured to refer to
Ecclesiastical Authority, and to invoke the Churches to action.

(8) We therefore appeal to you in your position of great
authority and influence to proclaim the truth to the Nation
on this subject and in the hope that you may see fit to
disseminate as widely as possible the text of this statement,
whereby this vitally important question may be brought to
the light of day and earnestly enquired into by the peoples of
the British Commonwealth.

(9) We do so in all Christian fellow-feeling, knowing and
honouring the efforts you are making against the abuses of
our present economic system and the evils of usury, and
believing that the world is now in the gravest crisis of its
history. The issue of new money by the money-lender is an
unforeseen result of the modern cheque as a substitute for
national money — a valuable invention which in itself was
undoubtedly social and benevolent in intention and effect. If
the cheque system were corrected, as it can be simply
corrected, to restore to the nations their rightful prerogative
over the issue of money, there is every reason to retain it.
We fully appreciate the services which banking organisations
have rendered and can continue to render to the community.
But the issue and destruction of money by the money-lender
is not a service, but a weapon which can be and has been used
to perpetuate poverty amidst abundance, which renders
individuals and nations powerless to protect themselves, and
which may even be perverted to serve vast designs for the
complete subjugation of the human race to tyranny, exploitation
and the powers of darkness and evil.

NORMAN A. THOMPSON

(A.M.I.E.E., Research Engineer, Inventor of the Norman
Thompson Flying Boat, 1914, and other developments in
aviation and in mechanical propulsion ; Originator of this
Appeal)

FREDERICK SODDY

(M.A., LL.D., F.R.S., Nobel Laureate in Chemistry, 1921 ;
pioneer in the Economics of Wealth, author of Wealth, Virtual
Wealth and Debt (1926), Money versus Man (1931), Role of
Money (1934), etc.)

THE REV. P. T. R. KIRK

(Vicar of Christ Church, Westminster)



4 Money Manipulation and Social Order

MAURICE RECKITT

(M.A., Editor of Christendom, a Journal of Christian Sociology ;
author of Faith and Society, 1932)

the rev. p. Mclaughlin

(Warden of St. Anne's House, Soho, London, W. 1)

J. CREAGH SCOTT

(D.S.O., O.B.E., Lt. Colonel ; Chairman, The Farmers' Action
Council ; Advisory Chairman, The Service for Economic
Action)

REGINALD ROWE

(Kt., President, Economic Reform Club and Institute, and of
Nat. Fed. of Housing Societies ; a Governor of the Old Vic.
and Sadler's Wells ; author of The Root of All Evil)

JOHN HARGRAVE

(F.R.S.A. ; inventor of the Hargrave Automatic Navigator for
Aircraft (1937) ; Econ. Adviser to the Planning Comm. H.M.
Govt, of Alberta (1936-7) ; Founder and Leader of the Social
Credit Party of G.B. ; author of Summer Time Ends, etc.)

ROBERT J. SCRUTTON

(Founder-President pf the People's Common Law Parliament ;
Monetary and Constitutional Reformer to establish a Christian
Social Order. Books : A People's Runnymede, Let the People
Rule, etc.)

WILFRID HILL

(Industrialist, Birmingham and London ; Pres., Comite
International des ^changes, Paris ; Chairman, Econ. and
Monetary Joint Council, London ; Anglo-American Committee
World Trade Alliance)

GLYN THOMAS

(Manufacturer ; author of The Hour Sterling)

CHARLES TURNER

(Mech. and Mining Engineer ; Knowles Gold Medallist ;
inventor of the Oil-from-Coal Process and Plant)

CHRISTOPHER A BECKETT WILLIAMS
(Political Journalist)

ALLIOTT VERDON-ROE

(Kt., O.B.E., F.RJLe.S., M.IAe.E. ; pioneer of Aviation and
Money Reform. Books : Alberta is Fighting our War (1937) '■>
A World of Wings and Things (1938) ; etc.)



Demand for Monetary Reform in England 5

L. B. POWELL

(Editor of Cavalcade)

R. R. STOKES

(Member of Parliament for Ipswich)

H. J. MASSINGHAM

(Author of Wold Without End, The English Countryman,
Remembrance, etc.)

MRS. GLADYS BING

(Speaker and writer on Social Credit. Author of The Fraud of
Taxation)

C. H. CLENDINING

(Founder and Chairman of The Ex-Service Party ; North
Atlantic Air Route Development ; Chairman, Irish Trans-
Atlantic Corp., Ltd., 1932-8)

I. V. ROBINSON

(M.Inst.C.E., M.LMech.E., Whitworth Scholar, M.Amer.
S.M.E., F.S.S. ; Hon. Treas. London Social Credit Club, etc.)

A G. SEAMAN

(M.I.E.E. ; inventor of Automatic Sorting of Heavy Goods)

B. D. KNOWLES

(Author of Britain's Problem)

A. ROMNEY GREEN

(F.R.Econ.S. ; Geometrician and Writer ; Promoter for a
Scheme for Minimum Incomes without State Regimentation ;
author of Rehabilitation of the Small Man, Christendom, 1943)

C. MARSHALL HATTERSLEY

(M.A., LL.B. ; Solicitor ; author of The Community^ Credit
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