Welcome to the dynamic alternative

Abolition of
Income Tax and Usury

Contact us: P.O. Box 28176, Bothasig 7604, RSA -- Tel & Fax: +27 (0)21-558 2122 -- Email: info@abolishtax.org.za
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“The penalty that good men pay for not being interested in politics is to be governed by men worse than themselves.”

Plato, philosopher (427-347 BCE)


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On this site you will find information concerning our Party's political agenda and much more. But first something about us, our history and a general overview of the South African election scene.

The Abolition of Income Tax and Usury Party is the most dynamic party in South Africa and stands unequivocally for an Honest Money System to replace the dishonest one now in existence.

Our Party is the brainchild of a small number of far-sighted individuals and was first formally structured before the 1994 general elections and had the full intention of taking part in that process. However, due to all manner of reasons, not the least of which were the disinformation, obfuscation and seemingly purposely orchestrated campaign to keep small parties from taking part, we found it impossible to register the party at that time. It was therefore put on the back burner while we cooled our heels for the ensuing five years; years which saw a universally admitted degeneration of everything in this once relatively prosperous, safe and contented country.

Even with more or less the same kind of tactics in evidence before and during the 1999 general elections, we did in the end manage to register and take part. Of course the rules of the "game" had changed drastically and the ruling party had entrenched itself to such a degree that their dictates held sway. For instance, whereas in 1994 the deposit to take part at national level was R25 000, it had been increased to R100 000 and that for participation at provincial level went up from R5 000 to R20 000. Naturally, parliamentary rubber-stamping being what it is, the mainstream parties weren't going to suffer too much. Arrangements were as follows: The ruling party would receive an amount R31 500 000 from state coffers for their election campaign (We're not counting the more than R1.2 BILLION they got for their "war chest" from foreign "questionable sources".) and the other parliamentary parties were allocated varying amounts ranging from R10 500 000 for the official opposition party to "just" R190 000 to the last horse, a minuscule little party run by a single man. That being the case, the "mainstream" parties were happy to be bought off and, of course, they were willing participants in attempting to keep other parties from also running the race.

Our party found it a great hardship to scrape the money together to pay the participation fee (R100 000) and in the end lost every cent we paid over to the so-called "Independent Electoral Commission" (IEC) and towards our relatively shoe-string advertising campaign to make ourselves known to the people of South Africa. The "shoe-string" cost a "mere" R50 000 to R60 000. Even with a rand/dollar exchange rate of R7.50 for a dollar, our overseas readers will understand that R160 000 is a lot of money to lose.

Of course the mainstream parties and the media had a field day in trying to make our party seem to be over the top as far as possible. We were, for instance, the only party ridiculed on local radio stations and also on national television. In these cases the local station as well as the SA Broadcasting Corporation (a state-owned entity) saw fit to use an Afrikaans-speaking economist to "explain" to the listening and viewing public that our party's views were "either complete madness or genius" to paraphrase his remarks. What was obvious to a large proportion of knowledgeable and politically astute news watchers, and politician watchers, was the fact that these were almost the only times a "White opinion" was allowed to be aired during the whole election and it was not favourable towards us at all. The printed media were slightly better in carrying news of our party but they managed to have many "typos" and misstatements slip into their reporting. Even adverts that we paid for managed to get things screwed up unrecognizably. If we were paranoid we would have said it was all stage-managed. The whole thing was, of course, a farce of the first magnitude.

As far as our policies go, you may be the judge. We include lower down our party's Manifesto for your reading pleasure, as well as other material, some of which were used in our media statements while others are being printed here for the first time.

To complete the picture, we can report that we managed to get 12 500 plus votes - at one stage - but this figure was whittled down to 10 611 at the final "count". That is the official figure. What the true figure is, is anyone's guess. If we could, we would most certainly have liked to thank each and every one of the people who voted for us - whether 12 500 or the lower number. They've shown us that there are still some people who can think for themselves. And speaking of gerrymandering and other tricks of the trade:- Most analysts and some parties (notably not the ruling party) have come out against the election results being accurate. Some have also stated publicly that the ruling party could not have received more than 52% of the votes cast. It is general knowledge that an horrendous amount of horse-play occurred before, during and after the elections. It is almost as generally known that about 5 000 000 more votes were "counted" than cast at the polling stations. For the so-called Independent Electoral Commission and the many "expert" organizations who made it their business to have an opinion about our elections, all was "fair and square" or as they normally say - "free and fair". Of course it wasn't free - it cost a tremendous amount of money and time lost - and it was not fair by any measurement. But c'est la vie (that's life) in the political scene in Africa and life goes on. We are sure to do better the next time around.



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P.O. Box 28176, Bothasig 7406 RSA Tel & Fax +27 (0)21 558 2122

And Policy Positions


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A Short History of Income Tax, its Effects and its Remedies

The Abolition of Income Tax and Usury Party holds that Income Tax is a Marxist invention (point number two of the Communist Manifesto) and should be done away with in a reconstructed South Africa functioning under a new economic system. The system is called Zero Income Tax or Z.I.T.

Income Tax is a system of economic enslavement which is relatively new to this country, only coming into use in 1914 in the greater South Africa. We are convinced that it is a disincentive to economic growth, creating individual misfortune and creating a social climate of dishonesty. The system today is in chaos - many people fall outside "the net" while many others side-step it through "legal" avoidance because they are in a position to pay for the services of so-called tax experts. In a reconstructed South Africa the experts - bookkeepers, tax accountants, and such - will still have work, however, and plenty of it.

Our party's economic system will create a climate of growth and new job opportunities will abound. Entrepreneurs and everyone else will be empowered to earn an honest living without the present feeling of guilt and fear of being caught out by what has become a veritable tax police. Because there will be no taxation of income, everyone will reap the benefits of the abundance of local skills, expertise and the fundamental wealth of this country, something which presently is dampened by the ogre of the taxman. Entrepreneurs and ordinary people alike will therefore create jobs for many others and investment by people and businesses from foreign countries will clamour at South Africa's doors to be allowed in.

The "how" of the system can briefly be explained by saying that the state will form partnerships with bigger companies and institutions, such as mines, corporate farming (so-called "agri-business") et cetera. Identified conglomerate and/or monopolistic enterprises will be invited to have the state as a partner in a similar way, for example, that Anglo American Corporation has a partnership with Botswana in respect of their Debswana diamond enterprise as well as their potash venture in that country, and also with the state of Namibia with their diamond mining operation (Namdeb) in that country along the Atlantic seaboard in what is known as the Sperrgebiet

As far as the major mineral and precious metals mining industries of South Africa are concerned, we also plan to become the buyer of first resort of the output of the mines and the major, if not the only, marketing agent. As the major producer of gold and many other minerals (strategic and otherwise), South Africa will eventually have control over the pricing of these commodities.

Mining companies and other large businesses that participate in the partnership scheme will be required to invest their share of the profits in the Republic for a period of not less than five years. This condition will apply in respect of local as well as foreign-based companies. The effect of this will be a lag time of five years which will benefit the Republic's economy while not depriving investors of their legitimate returns on investments.

EXPENDITURE TAX -- Just Another Form of Taxing Income

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When tax on expenditure first came into being, the people of South Africa were promised that it would replace Income Tax in due time. We all now know this never happened and that the General Sales Tax (GST) has until today not relieved the Income Tax burden on the people of South Africa. Over time the then GST which started out at 4% changed into the present-day "Value Added Tax" (VAT) at 14%.

Expenditure tax by whatever name is nevertheless also a tax on income as it is levied on the remainder of one's income after paying Income Tax. The Abolition of Income Tax and Usury Party will discontinue this form of taxing income. This concept is known as "Zero Expenditure Tax" or Z.E.T.

The Rationale behind the Z.I.T. and Z.E.T. System (or Honest Money System)

Before 1914 what became known as South Africa (and this goes for the independent Boer Republics as well) grew economically strong, built harbours, roads, bridges, hospitals, and all manner of other state-owned and serviced amenities for its people (even while being assessed for payments to its colonial power, England) without requiring the Marxist-inspired tax on income or its later offshoot, expenditure tax. It is therefore demonstrably possible to do away with these forms of taxation.

All other taxes, such as excise tax, customs duty, licenses, deposits and so forth, will continue until investigation has proved them also to be redundant, at which time the necessary adjustments will be made. With the system of Z.I.T. and Z.E.T. in full operation, the economy of the Republic of South Africa will boom and continue to boom and its people will be happy, content and peaceful as never before. The fruits of their labour, their income, will belong to them only, and there will not be what can be termed a parasitic government creaming off part of their labour.



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The South African Reserve Bank -- A Private Bank

Full control over the functioning of the S.A. Reserve Bank will rest with the Department of the Treasury of the government of the Republic of South Africa. The present situation that it is owned and controlled by individuals, designs the Act that regulates it, and sets economic policy for the Republic, is indefensible and patently morally and ethically wrong. A central bank which in essence is a private concern cannot be allowed to be a player as well as the referee (see Note 3). Those serving as directors and officials at the time the Abolition of Income Tax and Usury Party assumes power will continue to serve until, if necessary, replaced by other officials. The nation's Bank will be the sole provider/creator of credit out of nothing.

Note 1  The CONSTITUTION of South Africa will entrench immutably the principle that only the Parliament of the Republic of South Africa has the right to print and mint the legal tender of the Republic and set monetary policy and will be charged with monitoring the amount of currency in existence on a regular basis and adjusting monetary policy as and when required by circumstances so as to promote stability in the economy.

The present situation whereby South African commercial banks as well as other entities in fact control our central bank (the S.A. Reserve Bank) is untenable and will not be allowed to continue under the Abolition of Income Tax and Usury Party.

Note 2  For further reading on this subject the speeches of the late Senator Sidney J. Smith in the Senate of the then Union of South Africa (circa 1940) are highly recommended.

Note 3  In his address to the seventy first annual general meeting (1991) of the SA Reserve Bank, the then governor of the bank, Dr Chris Stals, clearly stated that the bank is "a privately owned institution".

Other Banks

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The charging of interest will be phased out in all spheres of banking and the income of banks will be dependent on the service supplied and charged for by this sector of our economy, the profits they can generate by going into partnership arrangements with their clients and other legitimate dealings.

Note 1  The inter-relationship of interest charges and inflation cannot be denied, for, just as in the case of collecting Income Tax and Expenditure Tax from the general public, the charging of interest (usury) is the main driving force of reducing the value of money - i.e. inflation. The view that money is a commodity, to be bought and sold, is another value-reducing (and potentially manipulative) factor in our economy. Both of these will be countered by the envisaged usury-free HONEST MONEY SYSTEM to be inaugurated by the Abolition of Income Tax and Usury Party.

Note 2  The money supply will be effectively monitored on a regular basis so that there will be no extended periods of over- or under-supply which are the root causes of inflation and deflation respectively. The Abolition of Income Tax and Usury Party views money as being important only on a national or regional basis. The value of other currencies will therefore not play a role in determining the value of our currency. Under these conditions there will thus be little or no interference by other countries in setting a value on our currency unit. Any attempts by foreign powers to influence our currency will in the first instance be countered through economic measures.

Note 3  All countries presently linked to our currency will be invited to follow suit and trading arrangements presently in effect will be honoured until such time the envisaged barter system is in full effect. Our immediate trading partners in the rand monetary area (and postal union) will grow economically with us as the benefits of the HONEST MONEY SYSTEM works its way through to full adulthood. Their (and our) dependence on handouts and so-called loans and welfare from international bodies or governments will rapidly diminish.



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The Abolition of Income Tax and Usury Party has a FREE-ENTERPRISE POLICY. Government will exert only the absolute minimum interference with the economy and the people will be allowed to find their own level of economic activity.

Protection will in certain cases be afforded the Republic's producers in line with the incentives, protections and subsidisation policies of our major and minor trading partners.

Incentives in respect of exports (and in certain cases imports as well) will be inaugurated to stimulate trade with other countries. The central theme will be focussed on economic growth and self-sufficiency. Exports of excess agricultural production as well as other produce and manufactures will be encouraged while the importation of luxury goods (as well as services) will be taxed for the benefit of local producers, manufacturers, traders and service providers.

Under the Z.I.T. and Z.E.T. system primary and secondary industries will be encouraged and the government under the Abolition of Income Tax and Usury Party (mainly through the Department of Trade and Industry) will concentrate on smoothing the way for all producers, traders, exporters and importers, and levelling the playing field. The establishment and broadening of a genuine free-market, free-enterprise, culture will be one of the highest priorities.

So-called "free trade" will be systematically discontinued and BARTER with our foreign trading partners will be encouraged, thereby significantly reducing the need to maintain foreign exchange reserves.

The Republic's continued participation in the General Agreement on Tariffs and Trade (GATT) and the later Multilateral Trade Organization (MTO) or World Trade Organization (WTO) will be re-examined as to its beneficiality.

So-called "loans" from the World Bank, the International Monetary Fund as well as other international banks will be discontinued and any existing "loans" will be repaid as expeditiously as possible.

Meddling by foreign countries, corporations and/or individuals will be discouraged vigorously but genuine investment with no ulterior motives will be encouraged. The laws pertaining to those individuals, companies or governments who invest in the building of factories or the setting up of businesses of other descrip-tion in the Republic, will be similar to those pertaining to the mining industry - viz. a partnership arrangement with compulsory re-investment of profits for a period of not less than five years.

Chemical, oil and steel industries, electricity and water supply, roads and bridge building, mass transportation, harbours, airports, forestry and wood production, education, health, security of the state, among others, will all to greater or lesser degree resort under state control as is presently the case.

In respect of those industries which are wholly the responsibility of the state (or where the state plays the major role) the workers will share in profits. The workers will get one third of the profits generated by such state controlled industries and the state the balance. In cases where there are investors (local or foreign) their share of the profits will come out of the state's portion.

Note  The Abolition of Income Tax and Usury Party has the view that the economy is important in as much as it affects the happiness and welfare of the citizens of the Republic and it will make every effort to facilitate this. It is an historical verity that from the time the taxing of income came into being successive generations were systematically led to believe otherwise. Since that time the economy became important to governments only as a source of raising revenue while leaving the issuance of money to private individuals or corporations (i.e. the banking industry) to further tax citizens through usury (the non-productive charging of interest). The disastrous results of this approach are today everywhere visible - in high inflation or deflation, personal debt and so-called national debt, all of which serve to impoverish citizens and the state itself.

The time to shatter the false premises that governments should leave the issuance of money to mere individuals while it concentrates on methods to confiscate a share of the labours, expertise and entrepreneurship of the citizens of whom they are in reality the servants, is long overdue. The Abolition of Income Tax and Usury Party means to set the record straight in this regard.



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With the Abolition of Income Tax and Usury Party in power there will be MORE JUSTICE THAN LAW. There will be clear, simple and understandable laws. The existing laws will be simplified and streamlined. Laws will be applied without favour or exception across the board. The spirit of the law will predominate over the rule of the law. Everyone will be equal under the law.

The legal system will be made affordable and access to legal advice will be open to all. The system of pro bono will be enlarged to assist those citizens who cannot afford legal help. Sentenced criminals will be employed in society as is the case in certain states of the United States of America where chain-gangs are coming into vogue again (e.g. the state of Arizona). Depending on the severity of their offences criminals will be placed in service of those they had preyed upon, the communities they derive from, or society in general.

Criminals so placed will, however, not be treated as slaves as they too have inherent human rights. Those they serve will on the other hand not be used as jailers. Any repeat offence or absconding from such service will add to their terms of service and more stringent measures will be taken to avoid such repeats.

As far as convicted murderers, rapists and drug dealers are concerned, the Abolition of Income Tax and Usury Party would favour the reintroduction of the death penalty as an interim measure. The present Act in this regard which in effect rates the rights of murderers, rapists and drug traffickers higher than those of the victims is no deterrent against such actions and dealings, will be repealed and replaced with a more sensible Act. The Republic's laws will be seen to be applied.

With this approach the Republic's present state of lawlessness, virtual institutionalised corruptness and criminality as well as the violence-prone situation, will diminish in short order.



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Under the Abolition of Income Tax and Usury Party the government will at all times conduct itself in an open and transparent manner and, as is the case in Scandinavian countries, citizens will have the right to inspect anything and everything that passes through ministerial offices. The only exception to this will be where it conflicts with matters concerning the security of the state. All ministers and highly placed government functionaries will be required to submit a statement of all their assets (particularly where it concerns their own or their immediate family's shareholding in public and/or private companies) and this will be required to be updated every three months. Stockbrokers will be required to submit a statement of share transactions as and when these concern such ministers and highly placed government functionaries or their immediate families.

A statement of all gifts offered and/or received by any of the mentioned personages. whether monetary or in another form, above a certain minimum value, will have to be submitted for scrutiny to parliament (and therefore the general public). If a minister or highly placed government functionary is in breach of this stipulation he or she will be required to resign. Failing this he or she will be instantly dismissed with seizure of at least the so-procured assets. He or she will furthermore be arrested and stand trial for this transgression.



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Defence of the State
-- Military

A well paid professional defence force will be inaugurated. The Abolition of Income Tax and Usury Party is against conscrip-tion. There will, however, be service to the state for a period of six months after young adults leave school (and after they had reached the age of 17). The Swiss model in this regard will be followed.

Due to our extensive shorelines and given our nation's expertise in shipbuilding, the Republic can and must become a major naval player. The SA Navy's fleet will therefore be enlarged to the level required to service the Republic's needs in respect of defence and the protection of maritime assets.

-- Police
The police will receive higher pay, commensurate with their responsibilities, and their dangerous working conditions will be improved. The increased emoluments will be over and above the real increases everyone would be receiving as a result of the Honest Money System brought about by Z.I.T. and Z.E.T. and the abolition of usury.

-- Self Protection
The right to defend and protect life and property will be entrenched in the Constitution. The ownership and bearing of arms for self-protection, sport and leisure will be an inalienable right protected by the Constitution.


Electric Power to the People

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Just as in the case of many oil rich countries, the Republic of South Africa has within its borders an energy source which rightly belongs to all. In some oil rich countries, especially those bordering the Gulf, the state supplies free education, health care (state-run hospitals and clinics) and other services. They can do so because they consider the energy source in their soil as a national asset. It works well even while there is sure to be some corruption present.

In South Africa we have only a modest amount of oil, but this country does contain vast reserves of coal, the means to generate cheap electricity. It is this national asset, coal, which can be utilised for the good of all at no cost other than the installation costs at point of use. The actual supply of electricity should not be charged for at all.

As described above, under an Abolition of Income Tax and Usury Party government utilising the Z.I.T. and Z.E.T. system the coal producing companies (like other mining companies, etc.) will be in partnership with the state. However, the provisions pertaining to coal companies will be adjusted so that the state's share will be part of the production, delivered to strategic places where it can be used or exported.

Coal producing companies will be required to deliver the state's share of each grade of coal, some of which will be utilised to generate electric power while others will be exported by the government to its trading partners. In the latter case the earnings, whether in money, credit, specie or other products or commodities, will be for the benefit of the general population. Depending on what arrangements are arrived at, the development and/or upkeep of power stations, as well as the reticulation of the requisite power grid, will be facilitated by the exports.

It is envisaged that this arrangement will first and foremost be applicable to private individuals but there is no reason why it should not also be available to industry in general.



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Schooling will be compulsory to age 16 and will be free. There will be compulsory courses in real history, mathematics and science. In major urban centres communities will be allowed to choose between either English or Afrikaans as the main tuition language. The tuition language(s) of rural communities will similarly be their choice, but due to the national need that citizens should be prepared to function well in society, rural communities will be allowed to choose between English or Afrikaans as their main tuition language from grade eight (standard six). Where the numbers warrant it, all local languages will be available as subjects in the higher classes.

The Abolition of Income Tax and Usury Party has the view that technical training should have a high priority and that life and business skills as well as the development of logical thinking should be similarly prioritised.

Tertiary education will be made affordable to all students with the required pass rates and a certain percentage of admissions will be allocated to universities in respect of those students who cannot afford the fees. In certain cases free universities will be established where the need warrants it.

Private universities and colleges will be encouraged without encumbrances or interference from the state other than the minimum standard of tutors, where at least one of the principal members of the institution will be in possession of the requisite minimum requirements. Accreditation in respect of qualifications achieved at these private institutions will be left to commerce and industry, and society in general.



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The Abolition of Income Tax and Usury Party does not stand for a welfare state. With a system of Z.I.T. and Z.E.T. individuals, (the people), will be afforded the greatest assistance in helping themselves. Education (see separate heading) will assist everyone in preparing for a fruitful economic life.

The state's function will be one of protection and not prescrip-tion as far as the individual goes. Small entrepreneurs will therefore be encouraged and job creation will be left to the people themselves.

Notwithstanding the aforementioned the state will inaugurate voluntary programmes whereby the unemployed will be allowed to do work in service of society in general.



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The cost of health care has been allowed to rise beyond the point of affordability. The Abolition of Income Tax and Usury Party views it as an urgent priority to make health care affordable to all of the Republic's citizens. With the Z.I.T. and Z.E.T. systems in operation and with the benefits of a usury-free banking industry becoming apparent, the cost of health care will almost immediately come down.

The Abolition of Income Tax and Usury Party will invite the Life Assurance industry to participate in building hospitals, clinics and care centres at primary and secondary level and to make available affordable state-of-the-art amenities and services. They may as a first step make their clinics and hospitals available to their policyholders at reduced rates and use this as a selling point to attract more business.

The first benefit of such a programme will be that millions of South Africans will receive less expensive health care because they are policyholders. The second benefit would be that other privately owned clinics and hospitals will have to reduce their tariffs so as to compete. The third benefit would be that sorely pressed medical aid schemes will be relieved of excessively high claims and they will therefore be enabled to reduce their membership rates or at the least to keep them static for longer periods of time.

A healthy approach to living will be encouraged to be taught from early on at school level engendering a healthy lifestyle in future generations. Hygiene, healthy habits and physical exercise will form part of the regimen of primary health education.



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Although the Abolition of Income Tax and Usury Party does not stand for a welfare state per se it acknowledges the legitimate rights of the aged and disabled to a quality life. State-sanctioned inflation and usury as it has been allowed to develop within the dishonest money system have deprived most elderly people of their life savings and destroyed their quality of life. With the HONEST MONEY SYSTEM as advocated by the Abolition of Income Tax and Usury Party this situation will be reversed with the result that the value of money will increase and the cost for goods and services will fall.

All the points of this Manifesto bear out the fact that the Abolition of Income Tax and Usury Party has it as its purpose to improve the welfare and quality of life of all the citizens of the Republic, whether this is in respect of Education, Health Care, Pensions or any of the other needs of citizens.

Old age, disability and war veterans pensions will be set and maintained at a level conducive of achieving a quality of life seldom experienced in the Republic's past.

A State Pension Fund similar to that existing in most European countries will be inaugurated to which all able-bodied and employed citizens will be required to contribute for a prescribed minimum period. The state pension so funded will become payable to all citizens upon reaching a certain age irrespective of other assets owned by pension applicants, their private pension provision or their level of income.

Unemployment benefits will be funded by a State Unemployment Fund to which all able-bodied and employed citizens will be required to contribute while gainfully employed. The deductions in respect of this will be the responsibility of employers who will be required to remit such collected contributions to the State Unemployment Fund. The self-employed may choose to contribute as well. Benefits paid from this fund will be pro-rata the contributions made but will in any event not be less than fifty per cent of the level of income at the time of becoming unemployed. Other parameters such as the waiting period before claiming, the duration of benefit receipt per year and so forth will be negotiated at a later time.

A State Employment Register of the unemployed, detailing their qualifications, experience, skills or propensities will be kept, from which source employers will be enabled to draw their employee needs.



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The Honest Money System of the Abolition of Income Tax and Usury Party will ensure that Citizens can purchase a primary dwelling with interest-free loans. The current situation where commercial banks sometimes charge in excess of 20%, resulting in the owner paying off the entire capital portion of the loan in the space of three and a half years and still owning only a small fraction of his/her property, will be disallowed with immediate effect. Funds thus released will enhance the general wealth of the public and reduce demands on the fiscus.



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The Abolition of Income Tax and Usury Party will make it a priority to investigate, initiate and promote the use of alternative energy sources which will not harm the environment. There are many patents in existence for alternative sources of energy which to date vested interests have not allowed to be implemented. The implementation and use, however, of such clean energy sources, whether for public or private transportation or for the inexpensive, renewable and sustainable generation of electricity and so forth, will reduce our dependence on the fossil fuel culture which has such detrimental effects on the environment and ecology in general. [ As examples of what is meant here one can mention fuel efficient motor vehicles (of which many of the relevant patent numbers are known to the Abolition of Income Tax and Usury Party some of which have a ten-fold improvement on vehicular fuel economy), solar power (proven technology exists), wind power, fuel cells, battery power, flywheel or gyroscope power (as developed in Australia), and hydro-electricity (a well proven renewable and sustainable resource). All of the mentioned sources are to greater or lesser degree already in use but the development and implementation of most, if not all, of them is being purposely held back from development and universal use by vested interests. Most importantly, most of the alternative sources of energy are environmentally very clean sources creating few, if any, detrimental effects and they are infinitely renewable. ]

The Abolition of Income Tax and Usury Party is not for the proliferation of the use of nuclear power in any form. However, the safe continued use of the sole existing nuclear power station (Koeberg) will be allowed to the end of its useful life after which it will be safely and cleanly dismantled.

The Abolition of Income Tax and Usury Party is for better farming methods and less chemical abuse of our soil and water supplies. To this end farmers and similar producers will be encouraged to apply organic farming methods. Education in this respect will be given to our farmers, old and new, with due emphasis on the benefits of the system of crop rotation while on the other hand the public will be educated regarding the benefits of such production methods for their own health and welfare. All of this will be phased in over a relatively short period of time- say five years.

Before the go-ahead is given for the establishment of new industries which have the potential to create pollution the aspirant industrialists, over and above conducting the usual impact studies, will have to sign a code of conduct in respect of their operations. Penalties will be enforced in respect of infringements of the code of conduct and clean-ups as well as the costs of compensation to affected parties will be for the account of the polluters. Established companies will likewise be expected to sign the code of conduct and if there is adequate proof that their activities are detrimental to the communities near which they operate, companies found to be polluting or creating a nuisance through their operations will be required to relocate to other more suitable areas or cease their operations altogether.

The Abolition of Income Tax and Usury Party is wholly against using any area of the Republic for the dumping of foreign-derived hazardous, toxic and radioactive waste. Similarly the processing of foreign-derived hazardous, toxic or radioactive waste will not be allowed under any circumstances.

The Abolition of Income Tax and Usury Party is for the implementation of legislation similar to that existing in the United States of America to which end an Environmental "Super Fund" will be established in the Republic. The "cradle to grave" as well as the "polluter must pay" approaches will be enforced.

The Abolition of Income Tax and Usury Party puts great value on our natural environment and has the view that it must be managed and protected for the benefit of the existing as well as future generations in as pristine a state as possible and that the sustainable utilization of eco-systems are a high priority. To this end all land uses will be scrutinized and, more specifically, national natural park areas will be either consolidated or enlarged and where necessary managed co-operatively with indigenous communities.

The development and promotion of so-called eco-tourism will be a high priority.



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The Abolition of Income Tax and Usury Party stands for strictly controlled immigration. Illegal aliens will be vigorously tracked down and repatriated humanely (see Illegal Immigration).

Immigrants with skills, expertise and proven potential will receive priority treatment. Potential immigrants who offer only their labour will not be highly rated. The internal excess labour must be served first and foremost.

Immigrants who do not become naturalised citizens will be barred from any political activity. The period required to become a South African will be extended to TEN years and the offspring of non-naturalised residents will not be granted automatic South African citizenship.



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The Abolition of Income Tax and Usury Party has the view that illegal immigrants are harmful to our economy and society in general and they should therefore be traced and repatriated to their countries of origin. Our borders should be guarded against the incursion of illegal immigrants. In the case of visitors or tourists who transgress their visa requirements these should likewise be traced and repatriated. In all cases of this nature a record of such persons will be kept and multiple offenders will be dealt with severely, which measures will include serving jail terms before repatriation.



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As an interim step towards the envisaged free enterprise, non-centrally controlled administration of government at every level, local government bodies (municipalities) will be operated in line with the suggestions in this regard which were made to the now defunct President's Council and more specifically to those from the Bothasig Ratepayers' and Residents' Association with the exception of their references to Income Tax other than as can be used in a possible interim phase.



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The Abolition of Income Tax and Usury Party will assist in establishing a healthy approach to recreation and sport at primary level (i.e. school level) but will refrain from active participation at all other levels other than clearing the way for international contact. Sport should regulate itself.



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The Abolition of Income Tax and Usury Party stands for religious freedom, freedom of expression, freedom of association or dis-association, freedom of movement and all the other freedoms generally accepted in democracies world-wide. These freedoms will be entrenched in the Constitution and the Bill of Rights.



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Drug trafficking will be effectively countered with particularly harsh penalties applicable to those found guilty of this heinous crime against society and, as mentioned under "Legal System" (i.e. as an interim measure), this will include the death penalty for convicted drug lords. Those found to be addicted to the use of illegal drugs and other chemical substances will be removed from society and treated in a humane way until cured of their addiction.



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The Abolition of Income Tax and Usury Party will outlaw secret societies. As in the United Kingdom such societies will have to register with the government and a list of their members will have to be submitted and made public.

No member of parliament or highly placed government functionary may be a member of a secret society. For a candidate to be eligible to stand for parliament a period of at least three years will have to elapse from the time of resignation from a secret society.



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The Abolition of Income Tax and Usury Party is pro-capitalist but anti-super capitalist, particularly when last-mentioned are developed into monopolies.



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The Abolition of Income Tax and Usury Party is pro-life. Abortion on demand will not be available without regard to other factors. Abortion will, however, be permitted in cases where the life of the mother is at risk; in cases of rape victims falling pregnant; in cases indicated by the medical circumstances prevailing. The rights of the unborn child will in all cases be taken into account.

The present Act in this regard which in effect encourages sexual relations without responsibility and therefore the decline of the nation's moral standards will be repealed and replaced with a more appropriate Act.



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The Abolition of Income Tax and Usury Party has the view that females are in general more loyal and harder workers than their male counterparts with fewer problems about sex, sports and the use of alcohol. We believe implicitly in equal pay for equal work.



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The Abolition of Income Tax and Usury Party has the view that pornography is unhealthy for society in general and for juveniles in particular and that it is demeaning of women. Pornography involving children is viewed as especially pernicious and unwholesome.

For these and other reasons pornography in no small way contributes to the moral decline of the nation and it will therefore be acted against.



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Ethnicity is a fact of life. The Abolition of Income Tax and Usury Party has the view that those ethnic and/or tribal or cultural groups who wish to have territorial integrity and who can motivate such secession from a greater South Africa on historical or juridical grounds should be allowed to do so. In this way a peaceful confederation between the various population groups can be realised. For example if the Zulu People wish to have their historically founded Kwa Zulu controlled by Zulus only or if the Boers of the old Boer Republics wish to rule themselves, it should not be denounced out of hand. Everything in this regard is after all negotiable; especially to safeguard lasting peace.


(Or a Combination?)

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The rights and aspirations of certain ethnic and/or cultural groupings within the borders of the Republic cannot be ignored for evermore. Quite legitimate claims exist in respect of a number of these groups and their claims and/or wishes will have to be looked at seriously if peace is to be assured in the future.

The Abolition of Income Tax and Usury Party holds the view that the various models that could be utilized to accommodate and/or satisfy the dissatisfied groups have not been exhaustively explored and that something can be worked out to satisfy the legitimate wishes and aspirations of the affected ethnic and/or cultural groupings.

Failure to bring this contentious issue to a satisfactory conclusion will create national problems for many decades if not centuries (e.g. as in the case of the Basques and the Irish). Ignoring the issues will not make them go away and the only way in which they can otherwise be managed would be through state oppression and state-sanctioned propaganda as is quite evident today. However, this latter route which amounts to police-state rule, has not worked anywhere in the world to eradicate legitimate claims; they always resurface with a vengeance.

The Abolition of Income Tax and Usury Party cannot say whether accommodation will be through the granting of self-rule or federalism. This will have to be negotiated with the affected groupings. It may very well be that some may choose self-rule and others, ederalism; while yet others may choose a combination of these and/or other concepts.

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"... Government cannot refrain, any more than can the wage-earner and producer and retailer from stoking the fires of inflation by ever-mounting fiscal demands and imposts. Ours it is argued, is a system -- the result of historical processes -- which automatically and progressively accumulates capital charges as capital expenses. Under it any expansion of the money supply can only be achieved at the price of higher taxes to service and repay the loans which are the source of the increased money supply or by service charges on increased industrial equipment. Yet, with a paper currency now almost wholly divorced from dependence on precious metals there is nothing -- except the vast vested interest which has grown up during the centuries round the existing system of creating money -- to prevent the State from bringing new capital into existence free of interest charges. lf common sense were the only criterion, it would seem a more sensible way of doing so for Government, at the beginning of each financial year or other accounting period to estimate the growth potential of the economy and create an equivalent amount of new interest free money with which to pay the public services instead of as at present, extracting from the taxpayer the wherewithal to do so and pay the accruing interest on it -- a process which automatically increases inflation and tends to discourage individual initiative. Under the seemingly revolutionary, yet simple system I advocate, the burden of taxation would be reduced every year by the estimated growth potential of the economy. The stimulating effect on the production of such a general reduction of taxation, would I believe, be dynamic."
Sir Arthur Bryant in his regular column in The Illustrated London News of February 1973. His words still hold true today.


"At the moment the Reserve Bank has the nation's gold. But when I was the Chairman of the Finance Committee of the Durban Municipality, this thought occurred to me: 'Here is the Durban Corporation with £10,000,000 of real assets over liabilities; machinery, land, buildings and we, its citizens, must borrow from a bank that has not £l,000,000 of capital in the country. We have to pledge our real assets and turn them into a municipal debt.' I realised the impudence and the iniquity of it and that is why I say that all municipal and provincial finance should be controlled by a State institution.

"I have deliberately not used vague labels. I have not talked glibly of a 'State Bank.' If you had a State Bank in South Africa and it was under the present Minister, we would have no more than another branch of Barclay's Bank."
Thus spoke Senator Sidney J. Smith (Labour Party) in the Union Senate, April 1944. Senator Smith was the Senate's youngest member at the time of his election, being then only 38 years of age. A member of the Durban Town Council in 1922, at the age of 21, he was the youngest Councillor in the Union's history. Elected to the Natal Provincial Council in 1933, at 32 years of age, he was probably the "infant" member at that time.

He was an active member of the South African Labour Party since 1919, having held many Organising and Executive positions within the Party. He gave much of his time to a study of the Financial and Monetary Systems and appropriately enough did at least three terms as Chairman of the Finance Committee of the Durban City Council.
Senator Smith's Senate speeches advocating an Honest Money System for South Africa were considered so important that he found much acclaim both near and far. Many overseas journals published his speeches. His words still hold true today.

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( First published in July / August 1959 )

ALBERTUS MAGNUS, saint and doctor of the Church, one of the great figures in the history of man’s struggle for knowledge, sought “concrete, specific, detailed, accurate knowledge concerning everything in nature”. All civilisation and culture has been built up by a few men using their eyes and minds to collect, examine and compare natural phenomena; and out of a perfecting and/or refining of this process has come real knowledge, not only the knowledge of the scientist but of the poet, painter, philosopher, architect. Whenever the scholar of today sees more of the world than his predecessor, it is partly at least because he is standing on the shoulders of his predecessor.

The tragedy of our civilisation has been the separation of monetary economics from general literary culture. Some of the best poets and thinkers through the ages have con­cerned themselves with money, banking, usury and the root meaning of these things, but the power of putrefaction, by a number of fairly well-defined steps and some others not so well-defined, managed to split the culture long before there was any obvious sign of fragmentation.

Not by mere accident but by a combination of sloth and malice the education system has turned men’s minds to believe that poets, almost of necessity, have no concern with reality. Whereas, in fact, the best poetry is deeply rooted in reality, and poets have played an important part in passing on monetary knowledge.

The biologist does not bring out two thousand slides or specimens every time he wishes to make a general state­ment, he simply picks out a few examples which illustrate something present in all his slides, something which applies in all cases. This method I will use here.

Classical studies have been murdered in order to blot out a matter of forty facts of history. The classics have been thrown out, not because they are dull but be­cause they are too interesting for the comfort of the Grand Masters of usury who subsidise and control our university and education system.

Aristotle in the 4th century B.C. described the basic technique of monopoly in his Politics (1.4/5). A student who understands Aristotle on monopoly will have no diffi­culty in understanding the monopolies of his own day. Aristotle also provided a splendid working definition of money in the Nichomachean Ethics where he says that it is human regulation - not some intrinsic value in the metal - that makes a coin into money. For money “is called nomisma (customary currency), because it does not exist by nature but by custom (nomos), and can be altered and rendered useless at will.” We note in passing that where Aristotle used the word demand in writing of price, the translator of the Loeb edition substituted the word value, not, I dare say, because he was a direct pimp for the Usurocracy but because he had been educated in ignorance of economics. We have no means of knowing how many young men have been thrown off the scent by that one mistranslation.

Cicero was concerned with usury and the outflow of gold from Rome, Cleopatra wrote about currency, Pythagoras “made the coinage”. Cato in De Re Rustica has this piece of dialogue:

“And what do you think of usury?”

“What do you think of murder?”

For a long period the Romans valued their money for its usefulness and efficiency in measuring the prices of commodities and services. They were not obsessed by metallic content and saw that the essence of money is in the amount of it in circulation. The emperor Antoninus Pius (2nd century A.D.) pondered the difference between the agrarian usury of Rome and the maritime usury of Rhodes, not in an academic way but as it affected his people. He said that “Money had more to do with the distemper of the Roman Empire than the Huns and the Vandals.”

St. Ambrose of Milan, in the 4th century, cried out against monopoly, and in his De Moribus Brachmanorum very neatly placed his finger on the shepherd or “butchers of lesser cattle” mentality. Among the troubadors of Provence in the early Middle Ages was one Piere Cardinal who used to go about the country singing of oppression and corruption. Barons make war, he said, for their own profit, regardless of the peasant.

Dante consigned usurers to hell, to the same circle of hell as the sodomites, because both are against nature, against natural increase. This was the teaching of the Church in the Middle Ages.

Shakespeare held to the same teaching, and like Dante got to the root meaning of usury as something against nature. That is what The Merchant of Venice is “all about”. Shylock wants more than hand or foot, he wants to end Antonio’s natural increase. Shakespeare saw that gold, unlike wheat or sheep, does not increase by natural process, and he clarified the natural division between animal and vegetable on the one hand, and mineral on the other. “Is your gold . . . ewes and rams?” he asked.

The formation of the Bank of England in 1694 ushered in a new phase of the war between “usury and the man who wants to do a good job”. This phase, which is still going on, is based upon the creation of money out of nothing.

Alexander Pope, smeared as a bitter eccentric - a “logical” description, I suppose, for anybody looking at him through the perverted and perverting haze of “Whig history” - had a good grip on reality, as these lines show:

Blest paper credit ! last and best supply !
That lends corruption lighter wings to fly !
Gold imp’d by thee, can compass hardest things,
Can pocket states, can fetch or carry kings.

Dr. Johnson also managed to throw a little light on mortgages and “everlasting debt”. I wonder how many students of so-called “philosophy” have attempted to discover the truth or otherwise of David Hume’s statement that manipulators “adopt a hundred contrivances, which serve no purpose but to check industry, and to rob ourselves and our neighbours of the common benefits of art and nature”? George Crabbe kept his eye on things and produced some excellent verses, but it was Byron who pinned down his age in Don Juan with the question, “Who hold the balance of the world?" and the answer: "Rothschild and Baring”.

Strands of this tradition reached out to the colonies. “Scrutator” wrote lucidly about banking tricks in the Australian Sydney Herald of November 24, 1842: “As well might the Government confer the power to levy taxes on the community to a company of consuming adventurers”. About the same time the Hobart Town Courier stated that the Tasmanian legislative council had refused a legal limit of 10 per cent because “The president and several of the Council are money lenders, some of them of the first water”.

Browning tried to keep to meaningful or at least adult matter in Inn Album and Ford Madox Ford, Chesterton, Belloc and even Bennett all tried, with varying degrees of success, to get back some of the old teaching or to warn against “the system.

I think it is clear from the foregoing that when Mr. Eliot rhymed “Sir Alfred Mond” with “exchequer bond” he was not being “modern”, but simply going about the true business of the poet which is to record realities, in language charged with meaning “to the utmost possible degree”.

Mr. Pound has given money a central place in both his poetry and prose, because he has discovered that money is one of the keys to history.


P.O. Box 28176, Bothasig 7406, RSA Tel & Fax +27 (0)21 558 2122


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"All the perplexities, confusions and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation."
John Adams, 1787. [ After two hundred years the "perplexities, confusions and distress" still exist. What do our people really know about money and credit? ]

"If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered."
Thomas Jefferson, 1816. [ No wonder then that the mighty USA now harbours millions upon millions of street people and trailerpark dwellers - a veritable new class of people. ]

"Can anything be more absurd than that a nation should apply to an individual to maintain its credit and, with its credit, its existence as a state, and its comfort as a people."
Lionel Rothschild, as cited by Benjamin D'Israeli, 1844. [ For what reason do governments not create money and credit themselves? By carefully crafted ignorance and unnecessary "perplexities and confusions" by "the opinion and duress of small groups of dominant men." ]

"Whoever controls the volume of money in any country is absolutely master of all industry and commerce."
James A. Garfield. (1831-1881) 20th US President.

"A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men…. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world -- no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of small groups of dominant men."
Woodrow Wilson. (1856-1924) 28th US Pres.

"He [the Banker] keeps everything over and above his cost of rent, help, advertising and white carnations. He created money and reaped where he did not sow. This is the so-called credit money. Would you not like to be in the banking business and be able to create ten [or twenty] times as much money as you really have and lend it out at interest at 5%?" [up to 32% in the RSA]

"There can be no Freedom without Economic Freedom and there can be no Economic Freedom without Freedom from Income Tax and Usury."
Slogan of the Abolition of Income Tax and Usury Party, 1999.

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An early cartoon lambasting the impost of Income Tax: a cumbersome weight hung around the neck of the hardworking population while benefiting the lazy, the ignorant, and the unscrupulous -- and, of course, the rapacious, all-devouring, bankers!


Isn't it strange that in all the years of the existence of Income Tax (since 1914 in the greater South Africa) this form of theft has yet to define its underlying basis - that is, INCOME.

The argument of what is and what isn't Income, is from the inception of Income Tax an ongoing theme of the enslavers of mankind. It is an oddity - an aberration of logic - that the word "income" is indeed defined in a negative way - by defining what portions of one's income do not constitute, or rank, as income, and therefore are exempted from this tax. For instance, the so-called "capital gains" which are presently being looked at in a serious way by the Katz Commission.

A deadline (or target date) has even been set for the implimentation of the so-called "capital gains tax" by which date certain (still not fully defined) property will have to be valued and a certain portion of any increase in value (so far 25% has been mentioned) from this date to the eventual sale of such property will be taxed.

Of course the powers behind this further erosion of our liberties, know full well that government-caused and bank-caused inflation will contribute the most to such increase in "value". In other words, while our currency rapidly depreciates in value the numbers get bigger, and therefore there is an apparent increase in value. What it really means, is that our property value essentially remains at the same level but the number of rands it takes to replace it, goes up. And the reason for this is that the banks create too much money (including credit) at times which causes inflation. (At other times the banks can as easily decrease the amount of money [and credit] in circulation causing deflation.)

During an inflationary phase, such as we are in at present, the "value" of property "increases" rather rapidly and therefore it is almost impossible not to have an "increase" by the time one sells such property. And thus "capital gains tax" is assured of becoming a lucrative extension of the Income Tax.

As will have become clear by now to the reader, Income Tax and Expenditure Tax are two methods of state-sanctioned theft of the labour of ordinary citizens. They are basically the same thing. While Income Tax grabs a part of your earnings from your labour and risk-taking when you first earn it, Expenditure Tax grabs a further portion when you spend what is left. Even if you put your money away for extended periods, it will be taxed by way of Expenditure Tax at some stage or another when it is finally spent.

As stated previously, Income Tax was in the recent history of the world the brainchild (so it is purported) of the arch communists, Karl Marx and Friedrich Engels, who made it point number two in their "Communist Manifesto". 

What we are saying is that if the money (and credit) creation process is returned to its proper place, i.e. as a function of the state on behalf of all its citizens, then there would be no need at all for any government to confiscate part of the earnings of the citizens they are supposed to protect.

Income Tax / Expenditure Tax working together in lock step with the bankers' monopoly of dishonest money creation (and destruction) is the basis of the dishonest money system.

If and when the money creation process is returned to its rightful place -- and consequently Income Tax and Expenditure Tax (and "capital gains" tax, as well as many other related confiscations) are abolished -- then we would see the fruits of the Honest Money System, i.e., Progress and Prosperity.

Until that time it is our manifest duty to counter this monstrous injustice and to free ourselves from its shackles. And to accomplish this we need to unlearn what has been taught us over the years - decades and centuries - in such an unscrupulous way by those who wish for us to stay enslaved. Towards that end the reader will find much that is good in the books listed further on.

Please use the system of "each-one-teach-one" to spread the word and help us bring Truth and Honesty back to South Africa and the world by voting for the candidates of the Abolition of Income Tax and Usury Party.

NOTE: -- Since the above was written the infamous confiscatory "Capital Gains Tax" came into being with effect from 1 October 2001. The people have once more been duped and forced into a system they basically do not understand -- and that goes for virtually all of the "captains of industry", the financial pundits, and the rest! And, of course, though a big show was put up to make "the process" appear above board and "open and transparent", this was hardly the case. The wielders of power wanted to enslave us, the people, even more -- and this they did with consumate ease!

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An article from "Cape Town - The Golden Jubilee of Greater Cape Town"
Published by John R. Shorten, 1963. (Pages 289 to 291).

(Uploaded 27 June 2002)

Custodians Of The Nation’s Financial Reserves

AT THE END of the First World War, South Africa’s financial position was characterised by a number of unsatisfactory features. Some of the contributory factors had existed for many years, but others, in turn, originated during the war and had been sharply intensified by the stresses and strains of that difficult period.

From 1914, when the sterling-dollar rate was pegged at 4.76 dollars to the pound, the Bank of England purchased the entire output of the South African gold mines at the fixed price of 85s. an ounce. However, early in 1919 sterling again became freely convertible whereupon the pound immediately began to depreciate in relation to the dollar, with the result that the agreement with the Bank of England for the sale of South African gold was terminated in July of that year. By the end of the year the rate of exchange stood at approximately 3.85 dollars to the pound. This meant an appreciation in the price of gold in terms of sterling. From 85s. an ounce the price rose to 105s. and then to 127s. in February, 1920.

Gold Flowed Out
In those days there was no central bank in South Africa. The commercial banks issued their own notes which they were obliged to redeem in gold on demand. Since the fiction officially persisted that South Africa was still ‘on gold’, the banks themselves had to quote the South African- London exchange rate on the basis of parity with sterling. Thus, to meet their commitments relative to their note issues, the banks were forced to buy gold coin in London at a rising premium, for although an embargo had been placed on the export of gold coin from South Africa, the temptation offered by a premium of almost ten shillings on every sovereign that could be sent out of the country was too great to be resisted. There was smuggling on a large scale.

In these circumstances the banks appealed to the Government to suspend the relevant section of the Banking Act which made their notes convertible into gold. That meant, of course, that they were asking for the suspension of the gold standard itself.

The Government, for its part, was acutely conscious of the position and the added danger existing in the lack of uniformity where the issue of banknotes was concerned whereby there was a possibility of an over-issue of notes under the ordinances of certain Provinces. This situation gave rise to fears, based on experience, that the inflation which had resulted from the war would be followed by an undue restriction of credit once the cyclical movement turned downwards. These and other considerations all pointed to the need for a central bank which could stabilise and safeguard the country’s financial reserves by assuming responsibility and leadership in the currency and banking field.

The Establishment of the Reserve Bank
In 1919 the Government responded to the entreaties of the commercial banks by calling a conference at which the then Minister of Finance, Mr. Henry Burton, presided, its purpose being to decide ‘. . . by a free exchange of views the best ways of safeguarding the interests of South Africa and placing its currency on a natural basis’.

The general managers of the various banks and representatives of the gold mining industry attended the conference which resolved, but not by a very large majority, ‘. . . that the establishment of natural exchanges and a free market for gold in the Union is desirable and that to this end a mint and a refinery be set up’.

The Government then decided to invite Mr. Henry Strakosch (afterwards Sir Henry), the managing director of The Union Corporation Limited in London and a world authority on foreign exchanges, to visit the country and act as an adviser. There is no doubt that Mr. Strakosch’s views had a profound influence on subsequent legislation in connection with the establishment of a central bank in South Africa.

It was his opinion that it would be impossible to remove the embargo on the export of gold without wrecking the country’s economy. He suggested an ingenious alternative whereby the Union was able temporarily to slide off the gold standard without openly acknowledging that it had done so. His proposal was that gold coins should be taken out of circulation and replaced by inconvertible ‘gold certificates’. It was an accepted feature of the scheme that these certificates would be issued with the object of preserving the country’s gold reserve and that their inconvertibility was temporary. In other words, they would be redeemed in gold once circumstances permitted the restoration of the gold standard itself.

Above all, Henry Strakosch insisted on the amendment and consolidation of the South African Banking laws, and the establishment of a central reserve bank charged with the task of setting the discount rate.

The Government accepted these recommendations and drafted three Bills to give them effect. One of these was a measure to establish the South African Reserve Bank.

All aspects of the problem, and the Government’s proposals for dealing with it, were then referred to a Select Committee. Finally, the proposals for issuing gold certificates and for the establishment of the Reserve Bank were presented to Parliament as one consolidated measure. Though there were dissentients on both sides of the House the Bill, now known as The Currency and Banking Act of 1920, was passed on the 10th of August of that year.

In July, 1921, the South African Reserve Bank opened its doors. At about the same time the mining companies established the Rand Refinery at Germiston and in 1923. A branch of the Royal Mint began operations in Pretoria.

The Statutes
The Currency and Banking Act laid down the statutes under which the bank was to operate. It was to be a privately-owned institution with an initial capital of £1,000,000 to which the commercial banks were obliged to subscribe in proportion to their own paid-up capital and reserve funds, though they were debarred from holding more than half of the total between them. Stock to the value of £700,000 was made available to the public at par, but no stockholder, other than the Treasury or a subscribing bank, could acquire holdings in excess of £10,000, it having been laid down that the Treasury itself should take over at par any stock which was not taken up. Initially, public participation amounted to only £379,200, but the Treasury kept the lists open and the full sum of £700,000 was finally subscribed by individuals.

The commercial banks were also required to maintain reserve balances with the Reserve Bank equal to at least ten per cent of their demand liabilities in South Africa and three per cent of their time liabilities to the public.

The Reserve Bank was granted the sole right to issue banknotes in South Africa. This note issue was to be secured by a gold reserve of not less than forty per cent, the balance to be accounted for by trade bills and other securities.

It was charged with the duty of fixing the rate at which it would discount various types of bills, thus establishing a South African Bank Rate as a yardstick for the commercial banks and other financial institutes.

Among a great many other provisions that define the functions of the bank the Act specifically debars it from taking part in transactions which are the normal business of commercial banks.

There were to be eleven directors on the Board of the Reserve Bank of whom six were to be nominated by the stockholders. The other five, including the Governor and Deputy Governor, were to be Government nominees. It thus was provided that the institution’s affairs should not necessarily be controlled by the government of the day.

Mr. W. H. Clegg, Chief Accountant of the Bank of England, accepted the appointment as first Governor of the South African Reserve Bank. He was succeeded by Mr. J. Postmus, who in turn was succeeded by Dr. NI. H. de Kock in 1945 who guided the affairs of the bank for seventeen years. On his retirement as Governor in 1961 the present Governor, Mr. Gerard Rissik, was appointed. Dr. de Kock, however, remains the Chairman of the Board which now consists of twelve directors, half of whom, including the Governor and two Deputy Governors, are appointed by the Government, the remaining six being men who are representative of finance, commerce, industry and agriculture. All directors must be resident in South Africa.

The Advantages of a Central Reserve
In practice the bank’s constitution has enabled a successful combination to be effected between State control of monetary policy on the one hand and the advantages of a privately owned central bank on the other.

The bank’s sole right of note issue has ensured uniformity in the circulation. The commercial banks, which are today required to maintain reserve balances with the bank equivalent to ten per cent of their demand and three per cent of their time liabilities to the public, soon discovered the advantages of maintaining their free cash balances with the central bank as well. Not only did this procedure facilitate the settlement of inter-bank clearing balances, but it also enabled the commercial banks to make more efficient use of their resources as a result of the re-discount and advance facilities which could be obtained from the central bank itself.

At an early stage of its career, therefore, the bank had assumed the recognised central banking functions of responsibility for the note issue, as custodian of the cash reserves of the commercial banking system and central clearing institution, and, of course, from the start it was prepared to act as lender of last resort by way of loan facilities against commercial, agricultural, and Treasury bills and Government stocks.

Purchase of Gold
The assumption of these functions contributed to the Reserve Bank becoming the custodian of South Africa’s gold reserves, a position which was strengthened by arrangements concluded in 1925 whereby it purchased the gold output and attended to its disposal. As gold occupied the predominant place among exports, this arrangement also enabled the bank to assume the leading role in the country’s exchange market.

From an early stage the bank has determined the exchange rates for sterling. The control of these rates, in turn, has enabled it to influence the rates quoted by the commercial banks for other currencies. With the development of trade and financial relationships with the United States, Canada, Switzerland, Italy and Germany, the bank has come to quote directly for the currencies of these countries as well, thus ensuring the public of fine rates in prevailing circumstances. When the need arose the bank also entered the forward exchange market in these currencies.

Another recognised central banking function was assumed in 1927 when the bank took over the Government accounts from the commercial banks and thus became its banker. Subsequently, the accounts of the provincial administrations and those of certain statutory organisations were also transferred to the bank.

Forty-Two Years of Growth
Today the bank operates nine branches. These are situated in Pretoria, where the head office is also located, Bloemfontein, Cape Town, Durban, East London, Johannesburg, Pietermaritzburg, Port Elizabeth and Windhoek.

In the conduct of its varied activities it naturally has become very thoroughly acquainted with economic conditions within the Republic and overseas and has developed close contacts with a number of the leading foreign countries. Automatically, therefore, it also has functioned as the Government’s consultant and agent in a large number of appropriate matters such as the repatriation of Government stocks from overseas during the war years. It administers the exchange control system in the Republic on behalf of the Treasury and acts as agent for the Government in its operations with the International Monetary Fund and in connection with loans granted to South Africa by banks in the United States, Switzerland, Italy and Germany.

The Reserve Bank’s first weekly statement, issued on the 2nd July, 1921, reflected assets equivalent to R11,876,305. At the end of December, 1962, assets stood at R568,600,275 and advances, investments and discounts totalled R113,751,736. Liabilities in respect of notes in circulation amounted to R275,491,305 and deposits to R249,192,017.

The statutes of the Bank have been amended in several important respects since it was founded. These amendments have been effected so as to give it more scope and flexibility in meeting the needs a of developing country under changing world economic conditions. In 1944 the laws governing its operation were consolidated in the South African Reserve Bank Act of that year. However, there have been no fundamental changes of a constitutional nature.

Today, the bank is still a privately owned institution with nearly a thousand individual stockholders, some half of whom hold less than R1,000 of stock each. Annual dividends are restricted to ten per cent, the balance of the net profits being allocated in a small part to the general reserve fund and in the main to the Government and so, indirectly, to the people of South Africa.


(Don't write us that we have NOT allowed you full insight into the workings of "spin". NL)

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Money power

High Treason!

Wing Commander Leonard Young examines the vital connection between credit creation and national sovereignty
(First published: January 1997)
(Uploaded 30 June 2002)

THE foundation of the Bank of England, in 1694, was perhaps the single most significant event in the history of Britain, if not the modern world. For it created the mechanism by which the Crown and Parliament of what was to become the greatest empire ever seen were subordinated to the power of Gold, so that monarchs and politicians were little more than puppets in the hands of shadowy financiers. However much the court historians of the Establishment focus on the drama of all the wars and economic booms and busts which followed, the central historical fact is that they were largely the result of this enthronment [sic] of what is best described as 'the Money Power'.

This disaster came about at the end of the seventeenth century, when William III needed a great deal of money to pay for his wars in Europe. A group of financial sharks, led by one William Patterson, agreed to lend the king the money, in exchange for the right to found a private bank with the grand - though wholly inaccurate - title of the Bank of England. They knew precisely what they were doing; in the initial prospectus for potential investors, Patterson stated openly that "the Bank hath benefit of interest on all moneys which it creates out of nothing." And right from the start, the new bank lent the king money, far in excess of its gold reserves, at eight per cent interest.

This is what the banking system has been doing on all loans ever since. But although the banks issue credit to cover the amount of the loan, they do not issue credit to cover the interest on it. The result of this is that the public is continually being driven further and further into irredeemable debt to the banking system. The National Debt keeps rising, and cannot do otherwise under the system in force, and the same is true of private debt, resulting in repeated waves of bankruptcies, and widespread poverty in the midst of unprecedented plenty and productive capacity.

"Banks lend credit. They create the means of payment out of nothing." (14th Edition, Encyclopaedia Britannica.)

(NOTE: Credit is NOT money.)

During the seventeenth century, the kings of England had given the American colonies the right to create their own money. Towards the end of the following century, the London-based financiers realised that the fast-expanding New World offered rich pickings. So their corrupt placemen in parliament passed laws forcing the colonists to give up the issue of their own money and to borrow book-entry money at interest from the new Bank of England. According to Benjamin Franklin, this was the main cause of the American War of Independence. This was why the Founding Fathers laid down in the American Constitution that Congress should have the power to coin money, and to regulate the value thereof, in order to save their people from coming under the dominion of Finance. In spite of this, Alexander Hamilton fooled George Washington into letting him set up a "Bank of the United States", with the result that the Money Power rapidly gained growing influence in America as well. Within a decade, Thomas Jefferson, the third US President, was moved to declare that:-

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a money aristocracy that has set the Government at defiance The issuing power (of money) should he taken from the banks and restored to the Government and to the people to whom it belongs. If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the corporation that will grow up around them will deprive the people of all their property until their children will wake up homeless on the land their fathers conquered."

While the rulers of Britain were overwhelmingly prepared to sell their souls and their people to the Money Power, successive American leaders kept up the fight against the tyranny of Gold. Abraham Lincoln, US President from l861-65, is quoted on page 91 of Senate Document No. 23, 76th Congress, as saying:-

"The Government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the consumers. The privilege of creating and issuing money is the supreme prerogative of Government, the Government's greatest creative opportunity."

It was Lincoln who, during the Civil War, made the following statement to Congress:-

"I have two great enemies, the Southern Army in front of me and the financial institution in the rear. Of the two, the one in my rear is my greatest foe."

It was the desire of the 'financial institution' to gain control of the South which was the real cause of the Civil War; the slavery issue was only a propaganda smokescreen.

Bismarck knew the truth about this terrible conflict and explained it to Conrad Siem in 1876. His statement was published in La Vieille France, page 216, in March 1921. Maintained Bismarck:-

"The division of the United States into federations of equal force was decided long before the Civil War by the financial powers of Europe. These bankers were afraid that the United States, if they remained in one block and one nation, would attain economic and financial independence, which would threaten their financial domination of the world. The voice of the Rothschilds predominated. They foresaw tremendous booty if they could substitute two feeble democracies, indebted to the financiers, for the vigorous Republic, which was practically self-supporting. Therefore, they started their emissaries in order to exploit the question of slavery and thus to dig an abyss between the two parts of the Republic. Lincoln never suspected these underground machinations. He was against slavery and he was elected as such. His character prevented him from being the man of one party. When he had affairs in his hands, he perceived that these sinister financiers of Europe wished to make him the executor of their designs... His being a candidate had not troubled them; they thought to easily exploit the woodcutter. But Lincoln read their plots and understood that the South was not the worst foe, but the financiers."

After the war, Lincoln was determined to set up a constitutional money system, as proposed by the Founding fathers, for he realised the ultimate fate of the nation if bankers were allowed to dominate. As he struggled to set up an honest money system, the London newspapers - which moulded opinion on behalf of the bankers - expressed great fear over his proposals. The Times was particularly frank:-

"If that mischievous financial policy which had its origin in the North American Republic during the late war in that country should become indurated down to a fixture, then that government will furnish its own money without cost. It will pay off its debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilised governments of the world. The brains and the wealth of all countries will go to North America. That Government must be destroyed, or it will destroy every monarchy on the globe."

The Times' lying and clever appeal to the old ruling elite who had become the debtors of the Money Power was also, of course, a remarkably incautious confession of the efficacy of the 'greenbacks' - currency notes spent into circulation by Lincoln's government without the backing of either gold or bankers' credit.

If Lincoln had succeeded in following up the success of this policy, the resulting prosperity of the US, and the reason for it, would have become obvious to other nations, where pressure would also have grown for the casting off of the shackles of debt slavery. In the event, of course, he was assassinated. Bismarck made the following statement regarding his murder:-

"The death of Lincoln was a disaster for Christendom. There was no man in the United States big enough to wear his boots, and.... (money creators) went anew to grab the riches of the world. I fear that foreign bankers, with their craftiness and tortuous tricks, will entirely control the exuberant riches of America, and use it to plunge the whole of Christendom into wars and chaos in order that the earth should become their inheritance."

In spite of their growing power, it took the financiers another generation to complete their conquest of America. But in December 1913, while most of the members of Congress were away for the Christmas holiday, the Federal Reserve Act was passed, setting up the Federal Reserve Corporation. In direct breach of the constitution, the right to create credit was taken from Congress and vested in the private Federal Reserve.

With the United States safely in the bag, the Money Power was free to use World War One to destroy its last remaining effective opponent - the Russian Empire under the Tsar and the old nobility - who had kept Russia independent. In the last years of the Romanovs, Russia was rapidly becoming a very great power, and while foreign bankers had large investments in the country, the growth was financed without government borrowing from international banks. There was no income tax, a small and shrinking National Debt, no unemployment, the biggest gold reserve in the world, a constantly favourable balance of trade, and the world's fastest annual industrial growth. Under these circumstances, it was impossible for the Money Power to control Russia, except by destroying the entire Tsarist system. Thus, coldly calculated financial interest added to long-nurtured racial hatred of the best of the Russians to encourage various Wall Street bankers to finance the genocidal 'revolution' by their Bolshevik cousins which brought the Russian nation to disaster and slavery.

While such historical facts are not taught by the court historians of the bankers' 'democratic' system, many prominent men have spoken out on this crucial issue, and it is useful to repeat the comments of a few of them as an antidote to the smear that critics of the banksters' swindle are 'cranks' with ideas about 'funny money.'

Gladstone, for example, had this to say:-

"From the time I took office as Chancellor of the Exchequer (1852) I began to learn that the State held, in face of the Bank (of England) and the City [of London], an essentially false position as to finance.... The hinge of the whole situation was this: the Government itself was not to be a substantive power in matters of finance, but was to leave the Money Power supreme and unquestioned."

His great rival, Benjamin Disraeli, cited Lionel Rothschild as saying:-

"Can anything be more absurd than that a nation should apply to an individual to maintain its credit and, with its credit, its existence as a state, and its comfort as a people."

At about the same time, in 1875, the Lord Chief Justice of England, Sir Alexander James Cockburn warned that:-

"The issue which has swept down the centuries and which will have to be fought sooner or later, is the people versus the banks."

Several leading bankers themselves have also spelt out the situation with admirable clarity. Mayer Amschel Rothschild, who founded the great international banking house which took his name, stated bluntly:-

"Permit me to issue and control the money of a nation, and I care not who makes its laws."

The Rt. Hon. Reginald McKenna, one-time Chancellor of the Exchequer, and for years the Chairman of the Midland Bank, in an address to the banks' shareholders on January 25th, 1924, put it this way:-

"I am afraid that the ordinary citizen will not like to be told that the banks can, and do, create and destroy money. The amount of money in existence varies only with the actions of the banks in increasing and decreasing deposits and bank purchases.... and they who control the credit of a nation, direct the policy of Governments and hold in the hollow of their hands the destiny of the people."

Sir Josiah Stamp, a director of the Bank of England, made the same point more critically:-

"Banking was conceived in iniquity and born in sin. Bankers own the world. Take it away from them, but leave them the power to create money and control credit, and with a flick of the pen they will create enough money to buy it back again."

In 1964, the late Captain Henry Kerby MP put down two Motions in the House of Commons to return the issue of money to Crown authority. These proposals received the silent treatment from the politicians, the media and the rest of the Establishment. A few years later he met with a premature death, and the writer knows of others who also think that he was murdered.

It is interesting to note that President John F. Kennedy ordered the US Treasury to issue four billion US dollars (not Federal Reserve dollars). These were spent, not lent, into circulation, so that they did not add a cent to the national debt. He was murdered shortly afterwards, as had been Abraham Lincoln, who had tried a similar brave experiment.

It is quite impossible for anyone with reasonable intelligence to investigate this subject without discovering facts like these. That being so, the only possible conclusion is that the people who ought to know the truth, but who keep silent, are quite determined to keep their eyes firmly shut.

It is obvious that a country cannot be sovereign unless its government is in complete control of its credit. Yet the Euro-sceptics, who rightly point out the dangers of allowing our money supply to be controlled by foreign and unanswerable bankers in Brussels and Bonn, manage to ignore the equal danger of leaving such power in the hands of unanswerable, and often foreign, bankers in the City of London. This is what marks out their criticism of the EC as safety valve politics; we must not miss any opportunity to point this out, and to win over a people sickened and broken by a system based on debt, to the fight for a real alternative.

"I set to work to read the Act of Parliament by which the Bank of England was created. The investors knew what they were about. Their design was to mortgage by degrees the whole of the country.... lands.... houses.... property.... labour. The scheme has produced what the world never saw before - starvation in the midst of abundance."

Thus wrote William Cobbett in The Political Register XVIII, July 14th, 1810.

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 Published and unpublished articles of note from around the world

Progress and Prosperity just around the corner for Canada
— according to newspaper report.

Klein eyes abolition of income tax

Monday, October 2, 2000
By Lily Nguyen

Calgary -- Alberta income taxes could be eliminated after the province pays off its debt, which could happen as early as two years from now, Premier Ralph Klein said Saturday.

The Premier, who was speaking at an annual meeting of mayors and other municipal leaders in Calgary, said the province would have "tremendous options" once the debt and the cost of servicing it is gone.

Alberta's surplus now tops $5-billion for the fiscal year, compared with the provincial debt of $12.5-billion.

( SOURCE: http://www.globetechnology.com/archive/20001002/UNATSN-4.html )


Naturally Premier Klein’s vision is quite feasible and his plans can be implemented quite easily. However, only time will tell whether he and his cabinet have the political and intestinal fortitude to put flesh to bone in utilising the "tremendous options" he mentioned.

Another thing, of course, is whether the bankers — the usurers — will allow a country, or even just a province such as Alberta, to escape their clutches. What this story from the National Report Alberta shows us, is that there are indeed still some wise people around and that they are finding their way to the seats of power.
Our day is surely coming.

(The following article was written upon request of the Weekend Argus (Cape Town) in November 1999 but it still remains unpublished.)

Suggested title:             USURY HAS DENIED US OUR FREEDOM

What is usury? According to the dictionary definition it is the lending of money at interest - at any rate. According to our law, however, it is the lending of money at exorbitant or iniquitous rates.

In South Africa the law only considers anything higher than 32% per year to be excessive on loans of more than R10 000. On amounts below R10 000 the usurers are allowed to charge almost whatever rate they want with full protection from the law. They may charge "iniquitous" or "exorbitant" rates of interest.

The April 1994 elections, a day of celebrations for most South Africans, held the promise that a democratically elected government would at last care for the needs and aspirations of all our people. However, five and a half years later these expectations of a better life have left a legacy of bitter disappointment for most people.

The promised employment opportunities are yet to materialise. In fact jobs have become fewer. Economic opportunities, especially among the poor have deteriorated markedly. Moral standards have collapsed visibly. And crime and corruption are at an all time high, and soaring higher.

We may well ask why our much advertised new freedom has not brought, at least in part, a realisation of our legitimate expectations of a better life. The answer is simple: We have still not achieved economic freedom. In fact South Africa has been in a state of permanent economic servitude since 1652, except for the periods when the Boer republics had control of their own financial affairs. They had no debt, paid no interest and had no income tax.

Economic freedom can only be achieved with an honest money system where not only the "iniquitous" rates of interest will not apply, but indeed all institutionalised interest charges are outlawed. Then the people will see the benefit of freedom - real freedom.

The current dishonest money system was brought about by usury and is perpetuated by it. Furthermore the usurers are allowed quite legally to create money out of nothing and then to charge interest thereon. That is the money creation process which we have been enslaved to and which people have become accustomed to. And this is the process which brings all our financial misery and suffering. Intrinsically it is dishonest to its core.

The concept of money, in reality quite simple, is nevertheless a mystery to most people - an almost forbidden zone. For most people money is simply there. To get some of it one will have to do some job of work or you would have to produce and supply (sell) something. That does not explain the creation process, however.

The fundamental process of money creation is this: Money is created (out of nothing) by the commercial banks and brought into the game (circulation) through loans being granted at interest for their benefit.

The general conception of money is that it is the notes and coins that we carry in our pockets or the amounts we keep in our bank accounts. Or even that amount we can still draw on our credit cards - i.e. how much more we will be allowed to go into debt.

In the distant past, before the bankers invented their sophisticated ways, before bank accounts and electronic "money" came into existence, only coins of iron, bronze, copper, silver and also gold were used as money. In some parts of the world even stones, shells or buttons were used as money. Paper money came much later

The principal features of money, i.e. coins and notes, are that these means of exchange must be recognisable, acceptable to all members of the community or state in which they circulate and that it must be hard, if not impossible, to duplicate or counterfeit. To facilitate exchange of goods and services, money, of course, must be issued and brought into circulation in sufficient quantities in line with the ebb and flow of the economy. If the amount of money in circulation is kept at the right level there will be no inflation.

When we exchange goods and services, what are we really exchanging? Here is an illustration: Suppose Mr Brown has a piece of leather and Mr Green has a piece of cloth. After a few days Mr Brown has made a pair of shoes and Mr Green a jacket. They decide that these two items represent a fair exchange and they do a trade. What they are exchanging, however, is not a piece of leather for a piece of cloth, but the effort (labour) they have spent working on these materials. In other words labour is money; money is labour.

We may now consider the problem of usury. Of the total money in circulation in South Africa only 7% is represented by notes and coins. These have been printed and minted by the SA Bank Note Company (Pty) Ltd and the SA Mint Company (Pty) Ltd, both of which belong to the SA Reserve Bank Ltd. The other 93% of our money in circulation is in the form of credit which the commercial banks have created out of nothing when they lent "money" to clients. They are merely book entries.

The banks maintain the pretence that they only lend out what they receive from depositors. In this scenario they are supposedly getting R1000 from one depositor giving him or her 10% interest and then lending it out to other clients at 15% interest. The banks would have you believe that they are making only 5% on the R1000. That is simply not true.

The banks operate under a system known as "fractional reserves". This allows them to actually have only a fraction of their "reserves" in cash and this fraction can be as low as 5%. It works as follows: Mr Blue deposits R1000 and this now serves as the 5% reserve that the bank is required to keep in its vaults or some other place of safe-keeping. With its 5% fractional reserve secured, the bank may now lend out R19 000 to other clients. And because it has not got R19 000 in hard cash, it creates it out of nothing by making book entries when they "lend" to borrowers.

Or the bank will give a client or two an overdraft facility (the right to draw more than you actually have) and allow these clients to write out cheques which the bank will honour. The minute the loan (for a house, car, holiday) is granted or the overdraft facility allowed and a cheque written, the money has been created and will now start earning the bank interest (usury) at a healthy rate.

As can be seen from this the bank has to pay interest on the R1000 while it is not earning anything on it, BUT it is earning interest on R19 000. Using our previously mentioned example the picture now looks like this: The bank is earning R2 850 on the R19 000 and has to pay R100 on the R1000. A neat profit of R2 750 or 275% on R1000 that does not belong to them in the first place. Even after allowing for expenses this amounts to a very lucrative business. No wonder the banks consistently report earnings in excess of 35, 40 or even 50%. Even these earnings have to be adjusted because banks have the habit (the right) to show their depositors' money as if it is their own, i.e. as assets and not as liabilities which they in actual fact are.

In all this one can see that the bank has not as much as made one pair of shoes or one jacket from a piece of leather or a piece of cloth. They have merely provided a service. And it is a service which our government can be and indeed, should be, providing at no cost to us the citizens of South Africa.

Usury affects us adversely in every aspect of our economic life. A four-year hire purchase contract (time payment plan) can easily result in one paying almost double the price for an item compared to the cash price. Similarly a housing loan at 16% interest over 25 years means that we will pay the purchase price four times over.

According to the SA Reserve Bank Ltd's latest figures R9,2 billion of housing loans are in default. As most of these "non-performing" loans are in the poorer areas, this translates into 600 000 people who will shortly be forced to abandon their homes. They will receive little or nothing for all the payments they have made in the past and will be compelled to live elsewhere in greatly reduced circumstances, their hopes and aspirations dashed. Victims of the usury system.

Usury also impacts on us negatively through the borrowing activities of the state, the parastatal institutions such as Eskom, and the municipalities. Instead of borrowing money created out of nothing and paying interest (usury) on it, a re-organised SA Reserve Bank - a State Bank - could make the necessary credit available at no interest for the benefit of all the citizens of South Africa.

This year 22% of the budget (i.e. R49 billion) will be used to pay interest on government loans. This sum is roughly equivalent to the amount raised through personal income tax. The termination of this dishonest money system whereby commercial banks create the credit at interest will enable not only the abolition of income tax but also VAT.

Using the Honest Money System, money required to run the state (e.g. payment of salaries, pensions, education, hospitals, roads, and other public amenities) can be catered for. This can be supplemented by partnerships at various rates between the state and certain large mining and industrial companies. This latter arrangement is not far-fetched. To name but two examples where it is already being practised: Botswana has exactly such a partnership with the De Beers diamond company called Debswana, and Namibia has a similar partnership with De Beers, called Namdeb. They are by all accounts very successful.

In this manner the natural resources and wealth of the country, which after all belongs to all of us, can be equitably shared.

A number of Moslem countries have adopted this partnership formula and usury is not allowed under the laws of Islam. In the United Arab Emirates, for instance, there is no income tax, no VAT, no national insurance, and the cost of utilities is very low. In some of these countries even fuel, such as petrol, is supplied free of charge.

Usury is not only responsible for the impoverishment and financial enslavement of the general population, it can also contribute to stress which frequently manifests itself in family slayings, anti-social and criminal behaviour, and reportedly even dread diseases such as cancer.

There are some short term remedies which will help some people:

(1) Pay off your credit card debt and then cut the card in half. If you need the convenience of plastic, apply for a debit card (an account with a positive balance of your own money which can be drawn on by presentation of the card). And repay your overdraft as speedily as you can.

(2) Repay your home loan by accelerating your payments. Rather put your savings account balance into your home loan account - it makes much more sense. It may necessitate "downsizing" your standard of living for about five years, but it is far more preferable than paying for a house four or five times over.

(3) Consider getting an interest-free housing loan from a terminating mutual building society. There are three in Cape Town: Salt River Terminating Mutual Building Society, Cape Town Terminating Building Society and Southern Cross Terminating Building Society. For more details approach them directly.

(4) Establish a LETS (Local Exchange Trading System). They are very popular in England, Australia, New Zealand, and parts of North America. A bit complicated, they involve exchanging services within a specific community, such as lawn-mowing for child minding, a car service for an accounting job, etc. Each activity is awarded an agreed number of points or credits and do not attract income tax or VAT. Look around, there may be a LETS operating in your area.

As can be seen these are more or less centred on individuals or small groups and do not change the existing paradigm. And of course, they fall far short of being the solution to the problems created by usury and a dishonest money system. A lot more can and must be done. We can start by educating ourselves and our youth about the realities of money and credit; how they are created and managed. And how we are enslaved by it when it is dishonest.

For a more lasting and generally more beneficial change, the best that we can do today is to lobby government to adopt the Honest Money System described here. Demand from our elected officials that they do the right things to make us truly free - economically free.

We will only obtain our true freedom once economic freedom has been attained, and that economic freedom is entirely dependent on the abolition of usury and income tax/VAT, and the introduction of a transparent and honest money system.

Further information regarding a local campaign for the abolition of usury (and income tax) can be obtained from the Abolition of Income Tax and Usury Party by writing to them. Their telephone/fax number is (021) 558 2122.

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 -- An excellent article dating back to 1992, and still very pertinent today.
(From NEXUS magazine - see details below) (Uploaded 5 June 2002)

BANKS -- Money from nothing

Sir Josiah Stamp, one-time Governor of the Bank of England, said:
"Bankers own the earth ... if you want to continue to be slaves ...
then let bankers continue to create money and control credit."

There was a time when the Church was the most powerful institution in Western Society and few questioned its right to be so. In some countries governments are still all powerful. In our society today by far the most powerful institutions are banks, supported by a web of financial structures which reinforce this power. It is time we questioned their right to be so mighty and to ask whose interests they serve.

The media beguile us with the impression that politicians hold and wield the power, and we believe them. It is virtually impossible to escape hourly political and current affairs reports which reinforce this misconception. So vast and cleverly contrived is this mass of information that it is difficult to keep in touch with reality. Young people describe things that tru1y impress them as "unreal". How right they frequently are.

While we are thus preoccupied, bankers and financiers go about their business.

Most of us make extensive use of banks -- they inevitably play an important part in our individual and collective lives. Like so many other things, we take our banking for granted, giving it little thought and scant examination. We seldom stop to consider its real nature or its cost to us individually or to the community at large. Many of us do not even examine our bank statements to make sure there are no errors on them. Few of us would have any knowledge of the nature and justification of charges we regularly meet, but we assume that it is all in order. We trust that interest is being charged at the right rates. Above all, we do not check our statement for deliberate fraud.

It would be foolish to argue that banking has no place in society. Quite obviously it is the powerhouse of modern commerce and must remain so. The real point is, however, that banking has two faces -- one socially creative, the other devastatingly destructive. That of course gives rise to a number of challenges.

The first and most demanding is to put in place that model of banking which serves the best interest of Australia. One which is socially creative and not destructive. This is the responsibility of government -- and only courageous governments will do it. We do not have courageous government in Australia and there is none in sight.

The second is that, having built the best banking system possible, we should ensure that no-one destroys it, either deliberately or by neglect. Both have happened in Australia in our lifetimes.

The third challenge is to expose and remove people, be they bankers, treasurers, business people, politicians or whoever, who abuse the system for their own ends or neglect their responsibilities to it. I have given evidence that such abuse and neglect is rampant in Australia today, indeed throughout banking around the world, and that there is little will to reduce this.

It is abundantly dear that banking can help us create a truly free and prosperous society, but it is not doing so. It is equally clear that abuse of banking practice is a major factor in the degeneration of our nation.

How great a hold do banks have over us? To answer this question and to appreciate the potency of the answer, let's start from absolute basics.

Let's consider this. When banks lend us money, (give us credit), we go into their debt. Of course, you say. The bank argues that since it is taking the risk of lending us money (extending us credit), they require some security. So we put an asset on the line such as our home, our business or our farm. The bank then says it deserves a regular fee for its risk taking and for providing credit. That fee is interest, although other fees, such as establishment and management fees are also charged. Finally, the bank requires that if we cannot meet the agreement then they are entitled to any home, business, farm or other real asset that we may have put up as collateral.

This is a simplified but reasonable [sic] accurate description of a bank's money-lending function and of how it goes about it. Let's look at it in detail under three headings: credit, collateral and interest.

When banks give us a loan, does it actually cost them anything? Curiously, it costs them virtually nothing. This is the special privilege of the banker -- the privilege of creating credit.

Many years ago, a report commissioned by the British Government summarised it like this:

It is not unusual to think of the deposits of a bank as being created by the public, through the deposit of cash representing savings or amounts which are not for the the [sic] time being required to meet expenditure. But the bulk of the deposits arise out of the actions of the banks themselves, for by granting loans, allowing money to be drawn on an overdraft, or purchasing securities, a bank creates a credit in its books which is the equivalent of a deposit. (The Macmillan Report, 1929-31, Inquiry into Banking and Finance and Credit, p.34, para. 74)

Here is the crunch concept -- the one we must grasp if we are to truly comprehend the power of banks. Most of us imagine that, when we borrow from a bank, somewhere out in a back room, someone is pairing off our need for an overdraft with somebody else's deposit. We are not so naive as to think that they are counting real, touchable money, and moving it from one persons [sic] pile to another. But at least we think that the bank must borrow before it lends.

But no. The money does not need to exist either in a real, touchable sense or in any other sense. After our interview with the credit manager we walk away and begin to write cheques or use our credit card. All that happens in the back room is that entries are made in books. Nothing more than ink on paper. Even simpler these days -- nothing more than the click of computer keys.

John Kenneth Galbraith, one of the most eminent and respected modern economists, wrote a book with the simple title, Money. In it he writes:

"The process by which banks create money is so simple that the mind is repelled. Where something so important is involved, a deeper mystery seems only decent."

Graham Towers, the Governor of the Central Bank of Canada put it bluntly when asked how banks create money and credit:

"The ... process consists of making a written or typed entry on a card. That is all." (Testimony to the Canadian Committee on Banking and Commerce, Inquiry of 1939)

That was 1939. Clicking today's computer keys makes it easier still.

Is there any limit on the amount they can create? In July l99l, the Joint National Secretary of the Finance Sector Union of Australia wrote this:

"On the basis of advice received from the research department of the Reserve Bank of Australia Bulletin ... we are able to inform you that in Australia the creation of money is achieved by the following equation: M3 divided by Base Money. The result of the equation is a figure close to 14. All banks in Australia create money in this way with creation based on the level of demand. The Reserve Bank has some authority over this process, but not complete authority." (Extract from a letter from L.N. Hingley, Joint National Secretary Finance Sector Union of Australia, to L.F. Hoins, 22 July l99l; my italics)

If the 'equation' doesn't make much sense, don't worry. We'll come to that next. The crucial words are the ones in italics. Banks create money with creation based on the level of demand. If they want more, they just create more.

The only limitations are those of prudence and statutory rules. In March 1988, a General Manager of the National Australia Bank wrote this clear summary of the limitation in Australia today:

"The process ... is called 'create creation' and is the basic process by which deposits and lending are connected in all lending systems.

"There are 2 factors that influence the ability of a lending body to create credit:-

"1. A gearing limitation -- that is the statutory (in most countries) or the prudential limit to which the financial intermediary can gear its capital. Expressed another way this is the amount of capital that must back up each loan.

"At present Australian banks have a gearing imposed of 6.0% which in simple terms means that for every $100 of loans the bank must have $6 of capital.

"With finance companies gearing levels are usually set in their trust deeds.

"In the past gearing ratios of 8 to 1 were common (i.e. $8 of loan for each $1 of capital but over time that has moved out to be closer to 15 to 1) ..."

This is the 'equation: M3 over base money' Mr Hingley was talking about.

The summary goes on:

"2. A liquidity limitation -- for example, Australian banks must keep 7% of their deposits in Statutory Reserve Deposit account with the Reserve Bank and also maintain a Prime Asset Ratio of 12%. The latter means that each Bank must have cash, Bonds, Treasury Notes, etc which represent 12% of their assets. On top of these constraints the Bank must also have enough liquid assets to meet any movements in the ebb and flow of money -- naturally those sums can't be lent to customers. There are varying such requirements in countries around the world." (Extract from a letter from D.M. Cowper, General Manager National Australia Bank, to O.K. Fauser, 21 March 1988).

That is the most lucid statement of the current Australian situation that I have ever seen. And all this is enshrined in law. The Treasurer of Australia wrote to me in 1991, saying:

"Various rights and duties have been conferred on banks by legislation, the most important of which is the exclusive operation of the payments system and the unique ability to create credit." (Document 4A)

It might seem, then, that there should be no doubt about the fact that credit creation exists and how it is limited. Yet there are people who deny it.

Mr. Alan Cullen, Executive Officer of the Australian Bankers Association and spokesman for Australia's largest banks, made this statement as recently as November 1991:

"Credit creation is a sort of old fashioned religious idea." (Statement made during an ABC (SA Regional) debate with Paul McLean concerning the Repoort of the Martin Committee, 27 Nov 1991).

Deny it as he might, there can be no doubt that credit is not restricted by the amount the banks have in their vaults.

So banks have this great privilege -- that of creating money and credit. By the exercise of that power, banks determine who sinks and who swims, who eats and who starves, who lives in luxury, and who in poverty.

But back to the day you get your loan. The bank attends to these entries in its double entry books of accounts. Its accounts are in balance. You are in debt to the bank and the bank has given you the green light to go out and do some spending. You can draw it out in cash, but the vast majority of transactions will probably occur on paper (for example, cheques) or via electronic transfer (credit cards, EFTPOS and so on).

But, says the bank, you are forgetting the question of liquidity. It will be our money you draw out, as you have not yet paid any in. True. But what happens to it next? You write some cheques, use the credit card, and spend the cash. All of this goes into the tills of the people you pay it to. And where do they put it at the end of the day? Back in the bank, of course. Not necessarily your bank, but back into the banking system.

If the banks have issued a total of a million dollars in new credits one day, they will have a million dollars in extra deposits the next. And unless something very odd is happening, your own bank will have roughly equivalent shares of both the new credits and the extra deposits. Thus they have only had to use their own money for a few hours and back it comes. In other words, under normal circumstances, bank liquidity corrects itself just as surely as their balance sheets do.

This is why the total amount of credit advanced by all the banks to all their customers can go up and down from day to day, why we can have credit squeezes and credit expansions, all without the banks losing liquidity or unbalancing their balance sheets. But there is a very big difference between the bank's circumstances and yours. When you got your overdraft, what the bank gave you it created with the stroke of a pen, a click of computer keys, ink on paper; what you give back to the bank you earn by your talent, labour, sweat of your brow and risk of your assets.

Even though the purchasing power you now have was created by the bank out of thin air, you as sure as hell are in their debt and the bank may well have control of a real asset of yours which you were required to offer as collateral.

So banks have this great privilege -- that of creating money and credit. By the exercise of that power banks determine who sinks and who swims, who eats and who starves, who lives in luxury and who in poverty.

When it lends us money, does the bank put itself at risk? If it has lent prudently, (that is to someone who will be able to repay and honest enough not to abscond), there is every chance they will pay the loan back. Does the bank then actually need to have our home, business or farm as collateral? Only if it does not trust its own judgement. Demanding collateral is a wonderful way of avoiding the need to be prudent and wise, so they demand it all the time.

This represents a real risk to the borrower. Just as banks can create credit by the click of computer keys, so also they can contract or destroy credit by calling in loans. Experience indicates that there are cycles of credit expansion and credit contraction. Ordinary people and their debts are caught in these cycles irrespective of anything they may have done or not done, and for them the consequences can be great.

There are very few people or businesses which could immediately find the money to pay off all their debts and mortgages. They could not find the money immediately even in the best of times, and if times are tough it is still more difficult. So the bank may move in, sell their collateral assets for fire-sale prices, and leave them destitute.

Of course, this does not mean that every bank foreclosure is unreasonable. But unreasonable foreclosure is the most common malpractice reported to me as a bank-watcher.

Often, the foreclosure is not part of a general credit squeeze, but is imposed by a bank on a single business. This, too, is not necessarily unreasonable. If they have good reason to believe that a business is going bad, banks have to try to get their money out like anyone else. However, thanks to having demanded guarantees, mortgages, floating charges and other forms of collateral, banks are the least likely to lose in any normal business failure. More often, they walk off with all the assets, leaving hundreds of small trade creditors with nothing, so all sorts of innocent third parties are caught in the net.

Despite all these privileges, however, banks have managed to run up mountains of bad debts. How? It is very easy if you are stupid enough, and lending large sums to irresponsible entrepreneurs is a very good start.

All the honest depositors and borrowers of Australia are suffering today because our banks have been in the hands of people who were incapable of recognising a shonky deal when they saw one. These bankers, greedy for a bigger share of the financial market, gave credit to people who were simply corporate raiders, people who were not building genuine businesses or doing anything for the well-being of the community. Bank financed takeover bids did immeasurable harm to many of our greatest companies, while the subsequent corporate collapses left the banks with bad debts which they then claimed as tax deductions, making the taxpayer pick up the bill for 39% of the cost of their folly. They then charged the rest to their surviving customers in increased charges and continuing exorbitant interest rates.

All these bad debts were supposed to have collateral backing, but when the chips were down the collateral was insufficient. How this happened is an object lesson for anyone who believes either in market values or the acumen of the banks. Let us suppose that Fred wanted to buy a television station for $l.2billion. He went to a bank for a loan. They asked for collateral, whereupon he offered the TV station he was buying. They checked the market and found that be had offered $l.2bilhion. To the market value addicts, this was the latest price and hence what the TV Station was 'worth' as collateral. So Fred got the loan. What price the Clever Country when people of such paralysed intellect are holding the reins?

These were the people who were determining the economic future of the country. It was the bankers, not the government who decided that the corporate raiders should be bankrolled and productive industry starved. It was the bankers who created a climate where Australian inventions and innovations of real commercial value have had to be sold to overseas manufacturers for exploitation. "Too risky", they chanted, and rushed off to their appointments with Christopher Skase.

What is worse, these people have not had the decency to crawl away under a stone and die. Look at the names of the people who were running the banks in the late eighties, when the mountains of debt were piled up. They are still in their boardrooms, blaming everyone but themselves for the results of their incompetence.

Perhaps they aren't just bastards after all, but stupid bastards.

The enormity of this power of credit creation and collateralisation of assets is itself stunning, but when one realises how and why it can be used then the situation becomes even more frightening.

Just think about this. Almost all real property in our society is collateralised to banks. In other words it is in 'hock'. When you next look out of your window across our great cities and towns and rolling hlls, realise that the vast majority of everything you look at is in hock to banks -- homes, farms, factories, businesses, cars, boats, TVs -- almost everything. And all in exchange for what banks create out of thin air.

.... realise that the vast majority of everything you look at is in hock to banks -- homes, farms, factories, businesses, cars, boats, TVs -- almost everything.
And all in exchange for what banks create out of thin air.

When next you walk the streets of a major city note how many bank buildings there are. Corner after corner is occupied by huge highrises bearing the names of our masters. Note also the buildings of their subsidiary finance and insurance companies. Then remember that almost all other buildings that do not bear their names are also collateralised to them by their owners.

Several important question arise at this point.

First, is credit so bad? Of course not. It gives rise to actual purchasing power and much of it is exchanged for real goods and services. Without it, it would be very difficult for anyone without capital to establish a business, so the rich would remain in charge and the poor would remain poor. Credit is one of the agents of social mobility. But delivering the power to create and distribute it into the hands of private banks is fraught with danger.

It was the awesomness [sic] and potential abuse of this power that caused Thomas Jefferson to say, two centuries ago:

"I believe that banking institutions are more dangerous to our liberties than standing armies."

Not only is it dangerous. It also means abandoning one of the most powerful tools of a nation's control over its own destiny. Little wonder that Mayer Amschel Rothschild, the founding father of one of the greatest and wealthiest banking families in history said this:

"Permit me to issue and control the money of a nation and I care not who makes its laws."

Abraham Lincoln thought he had the answer:

"The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government's greatest creative opportunity."

And it was this realisation that caused the founding fathers of the Commonwealth of Australia to create a banking system designed to match Lincoln's dream.

What, then, will history say of those who, in the name of deregulation, systematically and deliberately weakened public control and supervision?

The implications of what has been described are that most real property and resources of the world are now in the control of banks. As financiers have increased the availability of credit to individuals, businesses, institutions and governments, so in turn they have increased their control and power.

Because they are inextricably linked, the explosion of credit in recent decades has also been an explosion of debt. Much of the world's productive effort and resources are consumed in servicing the interest and other costs of this deliberately created debt and much of our productive effort is to avoid foreclosure and the loss of collateralised assets.

Moreover, as banking has become global the web of debt now spans oceans and continents. With growing internationalism have come the challenges inherent in the uneven distribution of the world's resources and wealth and the vastly complicated question of international lending, exploitation and indebtedness. Bankruptcy allows an 'out' for individuals and corporations so they may escape permanent debt if they are prepared to part with their assets, but sovereign debt, (the debts of states and nations), is much more difficult to throw off.

In the complex world of international currency dealings, countries which have entered into debt in their own currencies have been able to reduce the damage of their debt by deliberate devaluation of their domestic currencies. However, where debt is in other denominations, as is the case with the greater part of our own national debt, this cannot be readily done.

Furthermore, the international banking community is more willing b accommodate those countries whose monetary policies are judged to be prudent or responsible. This sounds fine. But what is prudence and responsibility? International bankers know the answer: deregulation and free market economics. Such policies are of unquestioned advantage to the bankers themselves but less obviously so the workers of Venezuela, Brazil or, God help us, Australia.

If this is so with business, commercial and sovereign debt, it is much the same for the private individual. Just as all credit is not destructive nor therefore is all debt. Where we can comfortably service debt it works for us in expanding purchasing power and access to resources for a wide variety of uses. Both the degree and nature of indebtedness are therefore important considerations. How we cope with our debt is what is most important. Moderate debt under control is socially creative; debt out of control is socially destructive.

Although individuals may escape unmanageable debt by opting for bankruptcy, this means that the collateralised assets change hands. Governments therefore, have an obligation to create constructive coping mechanisms in the form of compassionate and just bankruptcy laws.

Australian governments have been weak in this law-making role, just as they have been weak in monitoring the system at large, and so Australians, both individually and collectively, are frequently at the mercy of creditors. In efforts to avoid bankruptcy and to retain their assets they frequently commit themselves and their families to virtual permanent indebtedness. For the more fortunate debt may be transient and short lived, but for many it has become permanent. It is their slavery.

The final question in this chapter is that of interest rates. It is this area probably more than any other which concerns ordinary Australians. This is for two reasons; interest is what they have to meet month by month, and it is interest charges that determine whether they sink or swim -- whether they save their assets or go under to the bank. Of course, those who have money to invest welcome high interest rates; but, overall, the prosperity both of individual Australians and of our business enterprises is promoted by lower interest rates.

In its simplest terms, interest is the price of hiring money. Just as you pay a charge for the use of a rented car, so you pay a charge for the use of rented money. And it has been mighty expensive in Australia in recent times. Australians, from the mid '80s through until mid '91, were paying between 13-18% for home mortgages, 18-24% for overdraft funds, 20-25% for rural short term finance, 20-25% on credit card finance and 18-25% on lease and hire purchase finance. Additionally, a range of management charges applied in many cases. Often rates were subject to variation without notice or agreement and borrowers were frequently not clear as to what rates they were paying or what charges applied until they were levied.

By world standards these levels were exorbitant. What, then, is fair?

It is generally reckoned that, in a 'free' money market, the base rate of interest will be between 2 and 3% above inflation. It never works quite like this, however, because the market may take a longer view. There was a period, in fact, when Australian interest rates were actually less than inflation, but this was because the market expected (rightly) that inflation would soon come down. As it did so, the rates dropped, but not as fast as inflation. This, too is to be expected.

At the time I write, however, inflation has been at a rate of 3-4% per annum for two years. This should be long enough for interest rates to come down to match, and would make a 'reasonable' base rate of 5-7%. But they are standing at 8-9% and show no indication of corning down.

When, Congressman Henry Gonzales, Chairman of the US Congressional Committee on Banking, learned of the level of charging by Australian banks he commented, "Any country which tolerates usury cannot prosper". (Comment made to Paul McLean at a breakfast meeting in Washington DC, on July 19th 1991).

"Permit me to issue and control the money of a nation
and I care not who makes its laws."

Usury originally meant 'lending money at exorbitant interest', and this is what Congressman Gonzales meant. How right he was. Australia has tolerated usury and has not prospered because of it.

The next reason for variation in interest rates is the variation in the risk to the lender. Thus the base rate applies to loans where there is assumed to be no risk at all. The extra percentage is then like an insurance premium which you pay for to insure that hank against the risk of not getting their money back. This sounds fair enough, but it results in a Catch 22 situation: if your capacity to repay is in doubt, you are charged extra interest to cover the risk. But if you are a bad risk, the higher interest rate will make you a worse one.

This is the source of one of the most blatant bank malpractices. Say you go to them for a housing loan -- normally one of the safest and hence cheapest loans a bank offers. They know that their money is safe with you, but they want to get a higher interest rate. So they refuse the housing loan, but instead offer you an overdraft or a personal loan, with a lien on your assets as collateral. You are then paying overdraft or personal loan interest rates on a loan which is as safe for them as the housing loan they refused to give you.

Moral: make sure you get a loan whose interest rate matches your trustworthiness and capacity to repay. If you are a longstanding customer with a secure income, do not allow them to persuade you that the only type of loan they can give you is a high-interest personal loan.

Remember: they are not giving you independent advice, like a solicitor might. They are just loan salesmen. Like any other salesmen, they won't show you straight to the best-value car in the yard; they will first try to sell you the one giving them the biggest profit margin. Caveat emptor.

The rate of inflation and risk are two reasonably justifiable reasons for interest rates to vary. However, in contemporary Australia interest rates have served two more purposes which do not sit comfortably together. Banks have used high interest rates as one way of covering the bad debts from their debauches of the late 1980s, while governments have used them as an instrument of monetary policy -- a means of constraining consumer expenditure and therefore inflation and encouraging a flow of funds from overseas to finance our foreign debt. Each has conveniently blamed the other for exorbitant interest rates. Meanwhile the rates have inhibited business investment and caused financial hardship and misery on a massive scale.

We have seen that the banks' power comes from their unique ability to create credit and destroy credit, to collateralise assets and dictate interest rates. The impact of all this was neatly summarised by an eminent Chancellor of the Exchequer in England, Mr. Richard McKenna, who said this:

"I am afraid that ordinary citizens will not like to be told that the banks can and do create and destroy money. And they who control the credit of the nation direct the policy of the governments and hold in the hollow of their hands the destiny of the people."


Paul McLean was a foundation member of the Australian Democrats, and was elected as a Senator for NSW in 1987. He came to prominence especially through his historic battle to get the now infamous "Westpac Letters" before the parliament and public scrutiny.

This resulted from his pursuit of bank malpractice and corruption in the Senate. He constantly called for a Senate inquiry, and moved a bill proposing a full Royal Commission into the banking system.

At the time of his resignation from the Senate in August 1991, he had 600 cases of bank malpractice on his desk.

NEXUS New Times, Volume 2, No.9 (P.11-14 & 64) Aug/Sept 1992
For more details about NEXUS, visit their website at

The NEXUS article had this note attached:

"This article was taken from the recently published book, "Bankers and Bastards" by Paul McLean and James Renton. Published by Hudson Publishing. Recommended Retail Price $I6.95. Available from all good bookshops, ABC Shops, or from the publishers,
P.0. Box 537, Hawthorn Vic 3122."

Back to Index


(A highly interesting - and probably factual - commentary on the 1999 General Elections, published in August 1999. The opinions expressed by the author are not in all cases shared by us - especially his political views. However, the arithmetic and the arguments put forward to show the "cheat " are of such interest that we thought that readers could make up their own minds about the rest of the article.)

NOTE: For the sake of foreign friends visiting our website, here is an alphabetical list of the 16 parties that took part in the 1999 general elections - abbreviations first:

AITUP = Abolition of Income Tax and Usury Party
ACDP = African Christian Democratic Party
ANC = African National Congress
AEB (KP-AEB) = Afrikaner Eenheids-Beweging (& Conservative Party)
AZAPO = Azanian People's Organisation
DP = Democratic Party
FA = Federal Alliance / Federale Alliansie
IFP = Inkatha Freedom Party
Minority Front
NP (NNP) = (New) National Party
PAC = Pan Africanist Congress
GPGP = The Government by the People Green Party
SOPA = The Socialist Party of Azania
UCDP = United Christian Democratic Party
UDM = United Democratic Movement<
VF/FF = Vryheidsfront / Freedom Front


[ NOTE: Underlining of text is in the original ]

“Most South Africans see the June poll as free and fair” reported a Human Sciences Research Council survey. International observers, including Jan Nico Scholten, head of a 40-member mission of the European Parliament, said the election was “free and fair”. But these people were looking in the wrong place...


By "Prof" S

A definitive analysis of the 1992 Referendum was published in Impact, and evidence produced to show how a false result was arrived at. These facts have never been refuted.

The same analyst now looks at the June 1999 general election, discovering that it, too, has been a cheat. He reveals the method - a different one this time.

He begins with a brief explanatory statement relating the issues in this election to “The Struggle” (by the New World Order, to recolonise South Africa) over the past 40 years, since this has been so massively misrepresented by the mainstream media.

Two factors helped those perpetrating this scam: First, proportional voting was used for the first time, whereas up to the 1992 capitulation voting had been done by constituencies; and secondly, this was the first time that computers were used to give the final results instead of the physical count.

Dr Verwoerd’s Apartheid policy aimed to lead the Old South Africa he inherited - a small, advanced white nation surrounded by black nations of subsistence farmers and unskilled labourers - into a peaceful and prosperous New South African grouping of self-governing nations. The revolutionary struggle against this got under way with Dr Verwoerd’s murder in 1966, and culminated 28 years later in FW de Klerk’s desperate establishment of a unitary state, incorporating the black homelands, all under the ANC government.

The 1999 general election gives us an opportunity - when trimmed of its cheat - to assess the further course of the struggle between the NWO/ANC on the one hand and the anti-colonialist peoples of this sub-continent on the other.

Fifteen parties took part in the election. For the purposes of this study, we may reasonably ignore the figures of several small parties which jointly commanded only one-thirtieth part of the Opposition votes: comprising dwindling ANC rivals, plus other small groups having minimal support at this time. The remainder we can divide for analysis purposes into the ANC versus the rest. This analysis therefore has two thrusts: (1) ANC versus the rest, and (2) developments among the Opposition parties.

Computers the weak link
Let me say at once that this election differed from all previous ones in having votes cast and counted at some 12,000 polling stations, with a central computer ostensibly intended to add all the results, classified into parties and provinces, and to give the totals. The computer is the glaringly obvious weak link in all this and the massive effort to have observers present at all polling stations “to prevent cheating” must, in the circumstances, be regarded as probably the biggest and most cynical exercise in deliberate futility that has ever been witnessed.

It is easy to prove the computer was programmed to boost the count of ANC votes and to scale down those of all opposing parties, producing a cheat measured in millions of votes (proof to follow). Since all Opposition parties were treated alike by the computer, changing patterns in the Opposition since 1994 could be analyzed despite the cheat. These changes do not bode well for the ANC, as a rapidly growing sophistication and determination among Opposition voters is revealed.

To explain the nature of the cheat clearly, and how one can prove it, I must give the term "Computer Literacy" an extra dimension. To most people this term implies familiarity with programmes written by others, enabling the performance of bookkeeping, information retrieval, word processing, etc. This encourages a belief that computers will behave in one or more standard manners, like any ordinary mechanical gadget. Nothing is further from the truth.

In essence a computer is a counting machine with a few simple facilities added. These allow it to copy numbers, to add or subtract them (and indirectly multiply or divide them), and to compare numbers - "same or different?". A computer can follow the instructions in the programme in succession, or it can change to a different part of the programme and follow a different set of instructions. This is how the programmer sets the computer to make "decisions".

On the foundation of this very slight group of functions, the whole computer world is built, just as a whole library of books is built out of the alphabet. The computer knows no morality, its good or bad deeds being at the whim of the programmer.

The computer programme used to count up the results in the June 1999 election was designed with a bias, adding 43% to every ANC count before adding it to the total, while the counts of all other parties were reduced by 21% before being added to the appropriate totals.

These percentages as such were not actually built into the programme, rather the final total had to show the ANC being very close to 10,6-million, and the combined Opposition totals slightly less than 5,4-million, for an overall total slightly less than 16-million.

The computer thus had to count a desired average of some 880 votes per polling station. To do this, it took a reasonable sample to find the typical average - say 616. From this, it worked out that it needed a multiplying factor of 1,43, then kept checking as batches of results were added, modifying the multiplier up or down, as necessary, to keep on, target accurately (always aiming for the 10,6-million total). In the same way, it found the necessary factor to keep the average count for the combined Opposition to 450 per polling station, multiplying each party figure also by 'its’ factor.

In practice, with 12 000 polling stations reporting, and with 15 totals each, nobody could hope to check whether the computer was adding correctly or not. I just happen to have been lucky in having two acid tests I could apply, which would show up irregularities, and allow me to count them accurately.

Discrepancies in Pretoria figures
The first of these acid tests was the Pretoria News printout, when the figures were finalised a week or so after 2nd June. This printout gave the voting figures at all the 206 polling stations in the Pretoria area, that is, the actual physical count. The computer gave its total in three separate groups: Pretoria, Verwoerdburg (now named Centurion) and Akasia.

If there were no cheat, the totals for the 206 polling stations in these three regions should naturally be identical. And they are not ! The shortfalls are similar for all Opposition parties, while there is no shortfall - in fact, a slight increase - for the ANC.

Physical sum of Computer sum
206 polling stations of 3 areas
ANC 238,974 240,998
DP 112,529 88,950
NNP 30,721 25,018
FF 14,726 10,949
UDM 10,051 8,379
ACDP 8,744 6,790
FA 7,558 5,687
AEB 2,875 2,130

Anyone checking them will notice the “scaling factors” are not all equal. This is due to ‘noise’ fluctuations of scaling and rounding off. For example, 11 votes scaled to 8,69 rounds off to 9, meaning a scale-down of 2 in 11 or 18,2%. But 12 scaled to 9,48 also rounds off to 9, meaning a scale-down of 3 in 12 or 25%. As the individual numbers become bigger, and the number of samples increases, so the ‘noise’ becomes negligible.

For the DP only, the scale-down is 20,95%, but if we take all seven Opposition parties listed here, it becomes 147 903/187 204, which is a scale-down of 20,994%. So we may safely use the round 21% to scale-up the nation-wide Opposition total of 5 375 812 given by the computer, to get the true total of 6 804 281 (79% of 6,804-million = 5,375-million.)

True total of Opposition votes 6,804-million
LESS 21% scale-down 1,429-million
79% of true figure

Now the other acid test. The Independent Electoral Commission (IEC), who organised everything, were astonished to find the computer giving a total of I5 977-million voles, and they checked thoroughly before announcing that only 14 257-million voting papers had been given out to voters, and that this was the maximum number that could have been counted at the polling stations. In fact, a conservative estimate of spoilt papers would be 57 000 (0,4%), implying a maximum, count of 14,2-million.

We find therefore that the Opposition parties got a true total of 6,8-million of these, or 48% of the 14,2-million; the ANC some 7,4-million, or 52%. However, the computer gave out the figures as: Opposition 5,315-million (33,65%), and ANC 10 601-million (66,35%). Now there is no question here of “merely somebody’s opinion”, or of any “maybe - maybe not”. It is simple solid scientific fact. The ANC barely scraped a simple overall majority. Indeed, there are two reasons - one of them rather nasty - suggesting they did not morally get a majority at all.

All people who voted were given a dab of ink on a finger to prove they had already voted. This made it easy for ANC thugs to find those who had not voted, and to force them to the polling station with threats of petrol bombs through their house windows. It is not possible to estimate on what scale this happened. Furthermore, there were substantial numbers of others, hostile to the ANC, who abstained from voting in what they regarded as an illegitimate process. So for the first time in history, we may reckon the people of South Africa as a whole are living compulsorily under de facto minority rule.

Making 'results' look more plausible
Before taking a look at developments within the Opposition, let us consider the advice the political psychologists seem to have given the planners of this scam in order to make an improbable result look more plausible.

First, as we have already seen, a large number of observers at the polling stations (which is where cheating would be expected to take place) promoted an atmosphere of "no nonsense this time". Secondly - bearing in mind that no one was certain the ANC could get even a simple majority - they were advised to "announce that the goal is a two-thirds majority so as to be able to change the constitution". This would convince the credulous that it was a reasonable goal for the ANC; then they should almost, but not quite reach it, with a cliff-hanger finish. That would disarm the suspicions of even most sceptics.

So the computer was programmed to get the ANC 10,6-million of 16-million total (= 66,25%, giving 265 seats). In fact, 266 seats was an even more desirable total, and I suspect the almost 1% further increase in the Pretoria area from 238 974 to 240 998 was repeated everywhere at the end, to increase the ANC from 66,15% to 66,35%, yielding 266 seats (one seat short of the mystical two-thirds).

Reforming the Opposition
In 1994, almost 19,4-million “votes” were counted, but it seems probable the total number that were legitimate would have been slightly less than the 1999’s 14,2-million. Cheating at that lime was probably confined to the ANC and the NP, but one can only make rough estimates of how they shared the 5,5-million illegitimate votes. Accordingly, for present purposes, I shall take the number of votes the NP was credited with, since that governed how many seats it had in Parliament, whether justified or not.

In 1994, the NP had 56% of Opposition seats. Between them, the NP, IFP and the FF. had more than, I5 times the number of votes credited to the DP and ACDP (Black Christian) between them,. Both the latter parties grew very sharply in 1999, and were joined by two new black parties, the UDM and the UCDP (Tswana Christians led by former Bop [Bophuthatswana] leader Lucas Mangope). The ratio between NP + IFP + FF and these now four parties (DP, ACDP, UDM, UCDP) has dropped from more than 15:1 (in 1994) to 1,07:1 (in 1999). The tree parties (NP, IFP, FF) which were credited with 90,6% of the 1994 Opposition votes have now only 48,3% of the current Opposition support.

It is fair to ascribe these changes to dissatisfaction with the way Opposition has been conducted over the past five years, and a determination to look for more effective Opposition, as voter experience and sophistication increases.

In particular, we are getting a more ethnic Opposition in reaction to the ANC's attempts at detribalisation. In 1994 the Zulu IFP was the only ethnic party. Today there is also the UDM - strictly speaking not ethnic, but with strong roots among the Xhosa (the ANC’s traditional base). The UDM is also starting to make an impact on the North Sotho, who previously strongly supported the ANC. The UCDP is basically a Tswana party. Although it got only one-sixth of Tswana votes this time, it is a very new party, with very good growth potential. This also applies to the ACDP and the UDM. These developments spell doom to the ANC.

In 1994, there was much glib talk about a “New South Africa". In fact, what we have today is an "Interim South Africa”, with two phases: The ANC phase, which is now drawing to a close. And in the second Interim phase on which we are embarking, there will he a better working relationship with a more ethnically-minded Black majority.

Then we will move on to the real "New South Africa” which could well resemble Dr Verwoerd’s vision, since the basis of both is reality. It is a grievous pity we have had to be dragged so far out of our way, and for so long.

The first thing now is to make an honest woman of Parliament: The ANC is entitled to 208 seats; the DP to 55 seats; the IFP to 49 seats, the NNP to 39 seats, the UDM to 19 seats.


Strange aspects of the election

At one point in the announcement of the voting when 10- of the I6-million had been counted the ANC had 65% of the votes. Then, it will seem, the ANC’s votes stagnated, fluctuating between 65% and 66%, until the counting was finalised. This, in spite of the fact that after the I0-million, the majority of votes that still had to be counted were from the Transkei and country districts in Natal. Simply on that account the ANC's curve should have shown an upward movement, because it was virtually only black votes that still had to be counted. It is not logical that the ANC suddenly stood still.

Another strange phenomenon, noted Die Afrikaner, was that announcements of results on the Internet on that Thursday afternoon came to a standstill. Between then till late on Friday afternoon, hardly a million votes were counted on the “unverified" list. On Friday at 15:30 the results on the Internet remained at 10-million. But at 17:00, suddenly the number jumped to 15-milIion. In other words, more than 5-million votes were processed in an hour-and-a-half and placed on the Internet. Was the period between Thursday and Friday late afternoon spent in "negotiation"?

Clearly, it would not have been in the interests of the ANC to attain a full two-thirds majority, which could have looked to the outside world too much like a one-party state. The percentage of 65% must have been decided on as the ideal.


1999 elections results
The final results as announced by the IEC were:

Party Votes 1994 Votes 1999 Percent Seats
ANC 12,237,655 10,601,330 66.35% 266
DP 338,426 1,527,337 9,56% 38
IFP 2,058,294 1,371,477 8.58% 34
NP 3,983,690 1,098,215 6.87% 28
UDM (Holomisa) -- 546,780 3.42% 15
ACDP 88,104 228,975 1.43% 6
FF (Viljoen) 424,555 127,217 0.80% 3
UCDP (Mangope) -- 125,280 0.78% 3
PAC 243,478 113,125 0.71% 3
FA (Luyt) -- 86,704 0.54% 2
Minority Front -- 48,277 0.30% 1
KP-AEB -- 46,292 0.29% 1
AZAPO -- 27,257 0.17% 1

Various smaller parties gained no seats. [ Including the Abolition of Income Tax and Usury Party. ]


It appears now that the vast numbers of abstentions played a significant role in the election. If we are to believe the official figures, 3,6-million fewer people (of all races) voted in 1999 than in the 1994 election. As Finansies & Tegniek put it, this was double the number of votes the DP got. The I,5-million votes of the DP gave it official Opposition status. This means that, with the exception of the ANC, no party got as many votes as the abstentions.

The Freedom Front fared poorly, prompting Gen Constand Viljoen to acknowledge that he no longer represented the Afrikaner. Mbeki was quick to remind him that he never could claim to have spoken for the Afrikaner.

* A representative of the Portuguese community in SA has stated that even though they had always been allowed to vote, after decades of living in SA, the Portuguese were barred from voting in this election, despite being registered, being issued with proper ID documents, in possession of SA passports, although not being SA citizens. However, many black non-citizens were allowed to vole, and many who did not even have correct documents.

* PENCILS, not pens were available at voting booths for voters to make their mark. The IEC stated that “the use of pens, funny faces, scribbles and thumb prints all counted as valid votes, as well as ticks, a long line through the party of choice and a big 'yes’.” Also “This One”, or repeat of the name of the chosen party were taken as valid. A scrunched. crumbled, squashed ballot paper, or a ballot paper folded into an elaborate origami shape, were also valid.

* A letter in The Citizen (11/6/99) says: “With addresses not appearing in the voters register, checking was difficult, but … there were more than 100 000 registrations without supporting application forms and at false addresses given. With the relaxation of the requirement to be on the voters list to be eligible to vote, powerful control by the R200-million computer network was forfeited.
....."No doubt this accounts for up to 300% over-polling at some locations. and an extremely high poll of 87,9%. On the other hand, registered voters with bar-coded and photographic temporary IDs were turned away at some polling stations.
....."It should be noted that the results are skewed: by administrative rules, a large sector of voters, mainly white, was excluded and similarly large numbers of ineligible voters, mainly black, actually voted.”

* UDM leader Holomisa has revealed a letter from Umtata‘s commercial fraud unit, apparently confirming major irregularities in the issue of 1249 IDs in the area. He also asked why the IEC had printed 25-million ballots when there were only I8-million-plus voters. "This fraud is the tip of the iceberg,” he said.

* VOTING in Greenfields, E.Rand, got off to a false start when officials discovered they had been using the wrong ballot papers, intended for registered voters who could not find their names on the voters’ roll.

* HOUGHTON polling station ran out of ballot papers; many zip-zip machines had never been charged; poor organisation had thousands of voters in Alexandra queuing for hours.
.....Most of the cardboard boxes in which the special votes were transported, in the Brakpan district, were damaged. Some boxes were not sealed, none had the official IEC security tape, the cable keeping the lids down broke easily. Most boxes were damaged upon arrival and many were open at the top.

* POLICE arrested a Mabopane man In connection with the theft of 30 bundles of ballot papers. Police in Malelane opened a case against a policeman who illegally handed out ballot papers to voters at a Mpumalanga polling station. The police at Mabopane public order unit are hunting for a group of people who went on a rampage and set alight to an IEC flag at Winterfield. At Bityi a man was arrested after threatening voters with a gun.

* COMMENTS on polling day: (Central Cape Town) “I can’t be bothered to vote. The whole country is run by criminals anyway, so what’s the difference?” (Greenfields) "I voted for the party that will give me food because you can’t eat a house.”

* "WHEN an election day starts with reports of two people murdered in Richmond, a bomb at Lydenburg, boiling anger in 2-km queues in Alexandra and Mamelodi, many hiccups at polling stations, it may seem odd for commentators to keep saying things are going well. How can the verdict be so positive in the face of obvious evidence to the contrary? Are the media trying to do a whitewash job? Undoubtedly there are powerful forces which are determined that there will be a favourable gloss, no matter what the truth, and there is no shortage of sunshine journalists willing to help their cause." (Editorial in The Citizen, Johannesburg)

* "OUTSIDERS should probe the poll," runs a letter to The Citizen. "The IEC have used R500-million of the taxpayers’ money and still they could not do the job properly. They used ballot boxes made out of cardboard and plastic cable ties. The competency of IEC staff is questionable. For example, the unused ballot papers are unaccounted for. This was not a fair election, and somebody from the outside should investigate."

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( Published in THE BARNES REVIEW, November / December 2000 )

(Uploaded 12 August 2003)

Today, in America and throughout most of the world virtually all money is created by private banks and loaned into circulation at interest. The establishment leads us to believe that this is the only possible way of creating money. But just a moment’s reflection is needed to see that it is fundamentally impossible to pay that interest, unless additional money is create4 which in turn results in more interest being due-setting up a vicious cycle of debt. This is the real cause of inflation-a fact few “mainstream economists” care to recognize. Yet-except for the greed of the bankers-there is no need for such an impossible system, history proves.

Debt-free money is nothing new. Originally, money was free from the burden of debt. When such commodities as seashells, tobacco, grains or metals are used as money, they are of course debt free. The European settlers brought little money to the New World. Consequently barter was the primary method of economic exchange. Wampum, a form of shell currency developed by the American Indians, was adopted by the colonists. Although wampum was outlawed by Britain in 1661, it nevertheless continued to circulate as money in the colonies, as did tobacco, deerskins, otter pelts, cattle, gunpowder and bullets.

Everyone knows about the Revolutionary War of 1775-81, but few people are aware that one of the first overt acts of American rebellion was concerning coinage in the Massachusetts Bay colony, and it occurred more than a century before the war. The date was May 27, 1652, when the first mint-an “illegal” one in the eyes of the crown-was established in the British colonies.

Shown is a sample debt-free note for 100 Marks, printed by the Reich Currency Office in Germany. Although dated 1940-41, it was printed 10 years earlier. The obverse shows a portrait of famed economist Silvio Gesell (1862-1930), the inventor of the theory of self-liquidating or stamp scrip. The reverse (not seen here) has three 1-pfennig stamps printed in place, to show their use. This note was never actually issued. Gesell saw a need for a kind of money that would move quickly rather than being hoarded or saved. He promulgated a kind of note that would lose a small percentage of its face value in a specified period, thus encouraging the holder to spend it before it lost part of its value. After thinking about the matter in greater depth, Gesell decided to supply a means of restoring full value to the note. He added spaces for a special stamp to be affixed each week. The cost of the stamp allowing the note to maintain its full face value. This kind of scrip came into use in Germany and Austria, and on a much larger scale in the United States not long afterward.

John Hull, a Boston silversmith, was the courageous minter of that first American mint. Hull was a real patriot and suffered a great diminution of his personal wealth through his years of public service. His early coins were extremely crude, and because the design did not, by any means, fill the coins, they were highly vulnerable to criminal “coin clipping.”

These were, however, followed on October 19, 1652, by the elegant Willow Tree coinage. In 1660, these were superseded by the Oak Tree coins, which were followed in 1667 by the Pine Tree coinage.

All the “Tree coins” (with the exception of the Oak Tree twopence) bore the date “1652” as an evasion, to make it seem as if they had been struck during the British civil war, when Oliver Cromwell was in power. The coinage was abandoned in 1682. A proposal to renew it in 1686 was rejected by the General Court.

Coin clipping was the rule, not the exception, back in the Mother Country. It is written that the Pine Tree shillings were to contain 66 2/3 grains fine silver the same as the actual circulating clipped shilling of England, though not the same as the theoretical or minted shilling of the Commonwealth, which should have contained about 85 3/4 grains” of fine silver.(1)

It is not known whether Charles J. Zylstra of Hawarden, Iowa had seen or heard of the German scrip or Gesell’s important theories, but his ideas were along the same lines. Hawarden was the first city in Iowa to adopt Zylstra’s plan for stamp scrip, but many other communities used it also, as well as the state of Iowa itself and in numerous other states as well. Merchants had petitioned the city to use scrip to help pay for public labor projects, the worker receiving $1 in scrip and 60 cents in cash for each day’s work. The US. Congress considered issuing similar money. On February 18, 1933, a bill, S. 5674, “to provide for the issuance of stamped money certificates, and for other purposes,” was introduced by Sen. John Hollis Bankhead II (D-Ala.). It was read twice, then referred to the Committee on Banking and Currency. The same bill, designated H.R. 14757, was brought before the House of Representatives on February 22 by Samuel Barrett Pettengill (D-Ind.) and was referred to the same committee, where it died.

The whole story of the rebellious colonies probably owes more to monetary contentions than to any other factor. After a century of unparalleled prosperity and progress in England, due to the stimulus afforded by the influx and coinage of silver from Spanish America, the English Parliament foolishly or criminally passed the East India Company’s Mint Bill in 1666 and thus permitted the country to be drained of its measure of value by a band of adventurers. Disastrous consequences ensued, but no one thought of repealing the act, the profits of the Bank of England standing in the way. It was in the midst of the first drainage of silver to the Orient when the coins of England were clipped and “sweated” to two-thirds or one-half of their original weight, that the American colonies were first brought face to face with the subject of monetary law.

At left is the obverse and at right the reverse of the silver Pine Tree shilling of 1667 and following years. The die for the shillings was never changed, and the misleading date of 1652 remained the same until the coins were discontinued in 1682. The coins were a form of money that was free of debt, unlike our modern Federal Reserve notes, and helped the colony of Massachusetts to become prosperous.

The Pine Tree coins authorized by the colony of Massachusetts were issued or withdrawn at the pleasure of private individuals. For this privilege, the issuers paid a seigniorage of 5 percent, while the private bankers who issue our money today pay nothing. The experience of the Pine Tree coins, all of which were melted down either within this country or abroad, proves that a seigniorage of 5 percent, while it may discourage it, will not prevent the melting or exportation of the coins.(2)

Back in Mother England, the profligate King Charles II sold to the East India Company (and the goldsmiths and moneylenders who owned it) the coinage privilege in 1666. This act, approved by a corrupt Parliament, was contrary to the law as established in the case of “Mixed Monies in Ireland.” That famous lawsuit, decided in 1604, declared it to be the law of England that no one but the sovereign could properly possess authority over the state’s monetary system. The East India Company was joined in 1694 by another predatory institution, the privately owned Bank of England-forerunner of our own Federal Reserve System.

Shown is a 1-schilling stamp note from Worgl, Austria, dated 1932. At right are seen the spaces where up to 12 stamps would be pasted on.

In February 1690, Massachusetts issued its own paper money (notes). At first, these were just “promises to pay,” but on July 2, 1692, the notes were made full legal tender. This was freedom indeed: The economic shackles and contrived poverty that had come down through the ages were cast off.

The notes were used to pay public expenses, to finance public works and to lend for lengthy periods at low interest to Massachusetts citizens. The interest from these borrowers was paid into the treasury of the colony, reducing the need for taxes. The colony itself paid no interest to anyone for the use of these notes. Other colonies issued similar notes, and there followed for Americans a period of unrivaled prosperity.

The English Board of Trade (the financiers), looking upon this prosperity and acting through Parliament, was determined to regain, by law, control of the issue of the colonies’ money. In 1720, every colonial royal governor was instructed to curtail the issue of money. The colonists persisted, and prosperity remained high. The royal governors were then ordered to destroy the monetary issue of the colonists, without regard to consequences.

The colonists were tricked into practically demonetizing their notes, and were forced to retire issue after issue, and to refuse notes from other colonies. This resulted in a depression. Prices fell, and trade stagnated.

The Resumption Act, a return to specie, was approved by the king on June 28, 1749. The result, according to the Norburns, was disastrous, with taxes and other debts demanded in gold and silver coins.

Ruin stalked in every home; the people could not pay their taxes, and were obliged to see their property seized by the sheriff and sold for one-tenth of its previous value. The officials and the favored few became rich, the rest impoverished. Every sort of injustice was committed, under color of law.

Many students of history and the money issue agree that this was the real cause of the American Revolution. The bitterness of the colonists grew to a frenzy and resulted in acts of resistance to the crown culminating in the battles of Lexington and Concord. The American Revolution had begun. Less than two weeks later, the Massachusetts Committee of Safety passed a resolution honoring paper money from neighboring colonies and, two days later, empowered its treasurer to issue interest-bearing bills of credit (paper money) and pass them into circulation.

The Congress of all the colonies met on June 10, 1775, and, on June 22, it resolved to emit $2 million (Spanish dollars) in bills of credit, for whose redemption the faith of the United Colonies was pledged. The international bankers’ only possible course was to punish, if possible, these acts of open rebellion. The colonies also had only one course: to stand by their monetary system.

During the Revolutionary War, the Continental Congress continued to issue paper money The notes remained at par with gold until severe military reversals in 1778 and until the British generals William Howe and Henry Clinton brought in ships loaded with bales of counterfeit colonial notes, and with the help of the Tories, passed them into circulation.

England herself at the time of the American Revolution had a form of debt-free money known as tally sticks, although these, by this time, had been mostly displaced by the Bank of England’s privately issued money. Tally sticks date from long before the Bank of England. The latter was formed only in the late 17th century, but tally sticks were used from about A.D. 1100.

The tally sticks were mentioned in Shakespeare’s writings and were used from the time of King Henry I, son of William the Conqueror, for 726 years, until 1826. Good King Henry required they be used to pay taxes.

Tally sticks were narrow shafts of wood, normally hazel, from seven inches to three feet or more in length, flattened with a knife. Each stick would be notched and inscribed to show its denomination; then it would be split into two pieces, lengthwise, with one piece, the “counterfoil” or counter-tally, slightly longer than the other, the tally or foil.

The tally would be given to the payee and the counterfoil would be retained by the government for reference. The sticks were valuable because they were acceptable in payment of taxes. The practice of issuing wooden tallies was ordered to be discontinued by an act of 1782. The returned tallies were stored in the room that had formerly been the notorious Star Chamber.

In 1834, the tallies were ordered to be destroyed. They were used as fuel for the stoves that heated Parliament. But the honest money got its revenge on the banker-controlled lawmakers on October 16, 1835 when Parliament was burned down by the overheating of the stoves through using too many of the tallies. About 1,300 sticks survived the blaze, but it is said there is only one complete foil among these “survivors of the holocaust.”

Debt-free paper money is also entirely possible. The Massachusetts and other colonial notes led to a golden age of prosperity Other experiments were equally successful. The early French colony in the Canadas had no money to pay its troops, so the colony’s governor, in 1685, made the colony’s own money He requisitioned all playing cards. Using whole cards for the higher denominations and pieces of cards for the smaller “coins,” he wrote on each its arbitrary value and signed his name. He decreed that this playing-card money should be accepted as full legal tender. It was accepted for taxes and then reissued for payment of troops and other government expenses. The improvised money was accepted at once by the people. French kings came and went, and each tried to suppress the playing card money, but the people would not give it up. This was the main money of French Canada for the better part of 80 years. But its fate was sealed when, in 1763, the Treaty of Paris gave Canada to Britain.

Charles II of England touching victims of scrofula, the “king’s evil.” It was his practice to give sufferers his healing touch every Friday in the Banqueting Hall in Whitehall. Samuel Pepys records that Charles went through the ceremony with the utmost reverence and gravity. (In contrast, James I touched unwillingly, and refused to make the sign of the cross on the ulcers of those who were paraded before him.)

Britain was in turmoil and distracted when the Massachusetts Bay Colony first began issuing its own coins, on May 27, 1652. But, following the 1660 Restoration of the monarchy, the British government took a serious look at what was happening. Sir Thomas Temple(1) was ordered by the Massachusetts General Court to meet with King Charles II to discuss the situation.
Temple decided to feign naïveté. He lied, telling the king that the Colonists had no idea that the coining of money in America violated the laws of Britain. They had been faced with a serious shortage of money and knew that the king was so busy with his own problems that he was in no position to order coins for them.
The king asked to examine the coins, and Temple handed him one of the “Oak Tree” pieces. He told the king it was the royal oak and had been placed on the coins as a token of loyalty. This flattery pleased the king, who called the people of Massachusetts “a parcel of honest dogs” and allowed the mint to continue.(2)

(1) Temple, an ardent supporter of Massachusetts Bay, was baronet of Nova Scotia and governor of Acadia. These lands were later ceded to the French by the Treaty of Breda in July 1667 but were not turned over until 1670, at which time Temple took up residence in Boston.

(2) In 1684 a committee was appointed to produce a response to King Charles II from the General Court. In a draft of a report by the committee dated October 30, 1684 outlining a proposed response to the king there is a passage about the mint that included the following detail: “For in 1662, when our first agents were in England, some of our money was showed by Sir Thomas Temple at the Council-Table, and no dislike thereof manifested by any of those right honourable persons: much less a forbidding of it.” Later retellings of this event embellished the Temple presentation to include the story of Temple telling the king the Massachusetts coins displayed the royal oak at Whiteladies, where Charles had hidden on September 6,1650 to escape capture following his defeat at Worcester on September 3 by Oliver Cromwell’s forces. Unfortunately, the month and day of Temple’s presentation was not recorded, in fact the entire mint passage was struck from the final version of the official response. The 1684 document stated this specific presentation by Temple took place after the Massachusetts Bay delegation was in London.

Gosaba, an island in the Indian Ocean off the Bengali coast, was leased in 1902 from the Indian government by Sir Daniel Hamilton, a businessman from Calcutta. This was an uninhabited island. usually submerged at high tide. Hamilton brought labor from the mainland and built dikes to keep out the sea and a plant to distill sea water for drinking. He issued notes of his own, which promised to pay the bearer one rupee’s worth of rice, cloth, oil or other goods. The laborers accepted these notes as wages and the island began to flourish. Villages were built, and each had its own school. Eventually Gosaba had a population of 12,000. Gosaba was unique among Indian agricultural communities, in that nobody owed a single rupee to money lenders. This was certainly a remarkable achievement for a desert island.

The island of Guernsey is another example. Guernsey is one of the Channel Islands, situated in the French Golfe de St. Malo. Although the Bailiwick of Guernsey is a British colony, it enjoys a degree of autonomy, with its own constitution and elected government. Norman French is the language of the people.

In 1815, the suggestion was put forward that Guernsey should take advantage of its own ancient prerogative and print its own notes to finance various projects. The Finance Committee reported that 5,000 pounds were needed for road construction, and they had only 1,000 pounds on hand. It was agreed to raise the remaining 4,000 pounds by issuing one-pound notes. This was done, and the result was so successful that it was followed by further creations of Guernsey money. In 1827, Bailiff Daniel de Lisle Brock said that Guernsey had issued notes amounting to 55,000 pounds.

By the end of World War I, a total of 200,000 pounds had been issued by Guernsey. Guernsey’s notes were issued free of interest. And it is significant that the Great Depression never troubled Guernsey. There was no unemployment. Guernsey’s notes were still circulating as of the early 1980s alongside Bank of England notes.

Above is a debt-free 1-Wära note from Erfurt-Hochheim, in Saxony, Germany. The term “Wära” is a compound word meaning goods and currency. Issues like this were suppressed by the government before they had much impact, but they were accepted as long as they were permitted to circulate.

Here are two more examples of the successful use of debt-free money. These efforts took place in Bavaria and Austria, both in 1931:

The coal mine at Swanenkirchen (in Bavaria) had closed down, and the district was a distressed area. A mining engineer called Hebecker bought the bankrupt mine but found he would need 40,000 Reichsmarks to start operations again. The banks offered him a loan at 5 percent interest, but Hebecker had other plans.

He was a disciple of a monetary reformer-Silvio Gesell-whose followers had formed an association and issued their own money, which, needless to say, they used only among themselves.

They called this private money the “Wära,” and Hebecker borrowed 40,000 Wära notes from them and offered to employ any miner who would accept them as wages. He also made the Wära redeemable in coal. At the same time, he opened a shop in which the workers could spend their Wäras. Thus the Wäras derived their value directly from the goods in his shop. He had to pay for these in Reichsmarks, but as his coal was also paid for in Reichsmarks, this was no difficulty. The unemployed miners welcomed a chance to start work again, and all went well.

The miners’ wages had been the principal source of income in Swanenkirchen, and when the shopkeepers saw that they were all finding their way to Hebecker’s shop, they decided the only way to get their customers back was to accept payment in Wäras. They brought pressure to bear on the wholesalers to do so, too, and they in turn prevailed upon the merchants who supplied them. Soon everyone in that corner of Bavaria was buying and selling in Waras.

Swanenkirchen became prosperous. There was no unemployment. Commodities were obtainable. Debts were paid. Other villages saw this and wanted to share in the new prosperity. Even some banks agreed to accept Wäras.

But the Reichsbank (a central bank, Germany’s equivalent of the privately controlled Federal Reserve banks in the United States) frowned. The German government surrendered to the Reichsbank, and in November 1921, Wäras were made illegal.

The sensational success of the Wära made a deep impression on the Austrian side of the border, and, in December, the mayor of Worgl decided to follow the example set by Swanenkirchen. There was a great deal of unemployment and general distress. Taxes were in arrears and the streets and public buildings neglected. The mayor formed a committee, consisting of himself, the priest, the town treasurer and the commander of the garrison, to put the new money into circulation. They called it “Notgeld.”

They started work on a new town hall and a bridge over the river, both of which they paid for in Notgeld. The treasurer agreed to accept Notgeld in payment of taxes and used it to pay municipal creditors. At the end of the first year, the town was transformed: 100,000 schillings had been spent on pubic works. Everyone seems to have been happy-except the banks.

In January, 1933, the Austrian National Bank sued the mayor and town corporation for infringing its right to be the sole issuer of bank notes. The bank won, and the Notgeld was withdrawn.

We conclude that if currency, which need not (and probably should not) be based on any commodity, is properly issued and guarded against counterfeiting, with the limits of issue being firmly observed, and competing forms of money being forbidden, there is no reason why the notes should not only maintain their value, but might not in time advance to command a premium in terms of coins of like denomination. Once this object is shown to be capable of attainment, the use of other forms of money such as the debt-based Federal Reserve note and gold and silver coins would become just a memory of a more primitive past, and the road to true prosperity will lie open to all.

(1) Del Mar, p. 75.
(2) Del Mar, p. 91.


Adams, Silas Walter, The Legalized Crime of Banking, Omni Publications, Hawthorne, California, 1958.
Astle, David, The Babylonian Woe: A Study of the Origin of Certain Banking Practices, privately published by the author, Toronto, Ontario 1976.
Del Mar, Alexander, The History of Money in America from the Earliest Times to the Establishment of the Constitution, Omni Publications, Hawthorne, California, first published 1899.
Hudson, Michael, The Lost Tradition of Biblical Debt Cancellations, Henry George School of Social Science, New York, NY, 1993.
Norburn, Charles S., and Norburn, Russell L., Mankind’s Greatest Step: A New Monetary System, Vantage Press, New York, Washington and Hollywood, 1971.

John Tiffany is the editor of THE BARNES REVIEW. He has long been concerned with the subject of debt-free money and the manipulation of our money system.

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[ NOTE: During October 1999 we had occasion to write to the Katz Commission concerning its plans to tax land. This proposed tax is another sweeping change, the economic ramifications of which will leave no one untouched. It can only impact negatively - firstly on the farming community and secondly on everyone in this country - i.e. the whole of society. What appears here is our covering letter (in Afrikaans) to the Transvaal Agricultural Union with full disclosure to that association of our presentation to the Katz Tax Commission. ]

Abolition of Income Tax and Usury Party

( Afskaffing van Inkomstebelasting en Woekerrente Party )

P.O. Box 28176, Bothasig 7406   Tel & Fax 021-558 2122

Die Bestuur
Transvaal Landbou-Unie
Versend: dmv e-pos tlu@lantic.co.za



Dit is ons aangename voorreg om ons voorlegging aan die Katz Tax Commission, wat ons Party se manifes insluit, aan u te stuur.

Ons vertrou dat u die materiaal interessant en insiggewend sal vind.

Wees verseker daarvan dat ons aan die kant van die landbouers en veetelers van Suid Afrika is en dat ons die voorneme om plase en/of landbougrond te belas, afstootlik vind. Soos u van ons materiaal sal aflei, is ons vir MINDER BELASTING op alle fronte asook 'n EERLIKE GELDSTELSEL. Hierdie heel haalbare en werkbare stelsel sal die meeste (indien nie alle) probleme van Suid Afrika oplos.

Ons beste groete en wense gaan aan julle. Hou aan om sulke stoere werk te doen!

N.S. Ons vra om verskoning dat ons materiaal tans nie in Afrikaans beskikbaar is nie.

-----------------begin van Voorlegging en Party Manifes aan Katz Commission-----------------

6 October 1999 Page 1 of 2

The Portfolio Committee on Finance
P.O. Box 15

By telefax to (021) 461 7969 FOR ATTENTION MR. ANDRE HERMANS

Sirs and/or Mesdames


With reference to the advertisement in the Cape Times of 23 September 1999, concerning the "recently released Katz Tax Commission recommendations" we would like, at the outset, to make the following key observations.

An illusion has been created, whether by the Tax Commission or some other agency, that there is an acceptance that a tax on land is desirable and/or needed in South Africa. We think that this is debatable. The advertisement creates the impression that the tax will be implemented and that it is a fait accompli - with only fine tuning needed.

Our research shows that the idea of taxing land, particularly agricultural land, dates back about a decade and that a Mr Mike Lamont of the SA Reserve Bank first mooted the tax and had suggested a number of proposals, or models. At that time, as now, very little detail was given to the public. His "models" for taxing agricultural land received very little publicity, and its ramifications and possible effects thus bypassed the general public.

This kind of taxation has the ominous overtones of broadening Marxist agenda and as such is undesirable in a democratic South Africa. It underscores the influence of the SACP, a party which has never separately taken part in democratic elections in South Africa, but nevertheless, through its behind the scenes involvement with the ANC, has a greater influence on South African politics than its support base entitles it to.

Our initial objections are as follows:

The tax is unnecessary. (See our Party's Manifesto appended hereto as a viable alternative to Income Tax, VAT and many other taxes, including the suggested land tax).

The methodology used is at variance with the much-touted openness of government.

The run-up time is too short by several years. It should at least be a point of debate in the public arena for a considerable length of time before any legislation is drafted, or even considered for drafting.

We consider this kind of taxation to be draconian and unrequired and that it will have a crippling effect on our country's primary economic sector, viz agriculture. It will furthermore change the face of the very nature of South Africa, its peoples and the general citizenry. It is sure to have an adverse effect on the agricultural sector's ability to provide for all the needs of our country's inhabitants. It will also impact negatively on South Africa's balance of trade and balance of payments.

The Katz Commission Report, stated as available from the Government Printer in the mentioned advertisement, is not as easily obtainable as is being suggested. In fact the Government Printer informed us that there was not a single copy available beyond the 5th Report and that they do not know when it will be available. We have thus not been able to obtain a copy of the 8th Report for perusal.

The statement in the advertisement that "Organisations representing large groups" may make oral representations, excludes a large section of the citizenry and is thus inconsistent with the previously mentioned much-touted openness of government. We are forced to ask: Why only "large" groups and how does one define what a "large" group is?

Page 2 of 2

Further questions that immediately come to mind at this time, are as follows:

How long has the Commission been working on plans to levy a tax on land?

For what period of time has the general public been aware of these plans?

How and when did the idea to levy such a tax come into being?

Why does the Katz Commission deem it advisable to levy such a tax?

What means have the Commission employed to publicise its plans to tax land? Did the Commission take out large-size advertisements in many prominent newspapers? Were there any discussions concerning this on national television or in venues open to the public? Did the Commission travel the length and breadth of the country - particularly the rural parts of South Africa - to explain its motivations and make its plans transparent?

Further observations:

With reference to how the Value Added Tax (VAT) came about in South Africa as a result of the efforts of the International Monetary Fund (IMF) together with Mr Katz of the Katz Tax Commission, who was at that time the president of the Jewish Board of Deputies, we would like to know what, if any, international or local bodies presently have, or have had, a hand in suggesting such a tax and/or are involved, or have been involved, in drafting the preliminary Interim Reports and/or the drafting of the planned legislation and whether their involvement (if any) has been made public to the citizens of South Africa.

The advert was placed in the Cape Times of 23 September 1999 with the announcement that written submissions be made by no later than Friday, 26 October 1999. We do not consider this to be sufficient time to draft adequate representations.

The advertisement gives the e-mail address as financecom@anc.org.za. As this suggests that the whole effort is an African National Congress (ANC) motivated venture, may we enquire whether there is a connection between this party and the Katz Tax Commission?

Our most earnest suggestion is that more time, at the very least several years, should be allowed for public discussion before this potentially catastrophic legislation is considered further.

Your detailed and timeous response to this letter will be much appreciated.

Yours sincerely


Inclusion: Highlights from the Manifesto of the Abolition of Income Tax and Usury Party. *


Political: All political parties.

Media: The general print and electronic media.

Agriculture: Various agricultural unions.


* By e-mail to financecom@anc.org.za


The Portfolio Committee on Finance
The Katz Tax Commission


Further to our letter which was sent earlier today to telefax no. (021)461 7969, we have pleasure in submitting the therein mentioned "Highlights From The Manifesto" of our Party, the Abolition of Income Tax and Usury Party.

As this forms an integral part of our submission, we trust that it will be appended thereto.

Yours sincerely

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Letter in The Citizen dated 21 May 1999

I write in support of AITUP, the Abolition of Income Tax and Usury Party.

A usury money system, where a central bank issues R10 and then demands R11 in return - when it has only put 10 into circulation - is a fraudulent operation, designed in the long run to dispossess people of their belongings.

It is predicated on banks failing periodically, inevitably leads to concentration of money in fewer and fewer hands, and causes misery and war wherever it acts.

It is basically theft, and the attitude it creates in society was summed up perfectly by an Afrikaans song - "Dis tog maklik om geld te verstaan, Vat wat jy kan van die ander man". ["It's after all easy to understand money, Take what you can from the other man."]

There are organic, humane alternatives to this vicious private monopoly, and AITUP are to be commended for their courage in taking on the system (and for their singular efficiency in following the registration process).

It's not possible for some of us to register to vote and have our names and addresses on a public roll, but for those who are not disenfranchised for one or another reason, I sincerely recommend a vote for AITUP for a real change to the political landscape.

Karl Mosupatsela Muller, Johannesburg.
["AITUP" says: Thank you Karl.]


Letter in The Cape Times - Business Report: Letters to the Editor dated 6 June 2000
Heading: Banks are not like other business

Derek Cohen (Business Report, May 26) claims that banks are really just like any other business venture. This disingenuous statement does not reflect the reality that commercial banks have the unique right to create money and credit out of thin air.

The common perception is that banks are simply lenders of depositors' money, when in fact about 90 percent of all funds loaned are created out of nothing on the basis of fractional reserves (government stock, treasury bills etc.). On this new money interest (usury) is levied and security of up to two to three times its value is often required. After deducting rent, help and advertising the balance represents the banker's exorbitant profit.

Until an honest money system is introduced whereby a citizen's bank is solely responsible for issuing debt-free, interest-free money into circulation, our manifold economic, social and moral woes will continue unabated.
Abolition of Income Tax and Usury Party
Cape Town


Letter in The Argus: Letters to the Editor dated 22 November 2000
Heading: Unicity's debt of R6-billion is a reality

Your correspondent Michael Burrowes (November 17) describes the Abolition of Income Tax and Usury Party as an "anti-maxillo-facial-surgery-and-cow-disease party ... so out of touch with reality (that) it is eerie".

The reality of which I spoke at the Observatory Civic Association concerns the Cape Town municipality's burgeoning debt, which now exceeds R6-billion. Ratepayers are being asked to foot an annual interest bill of R800-million. It is a peculiarity of the election campaign that none of the other parties seem to be aware of this significant fact, and if so none are prepared to make an issue of it.

Escalating interest payments will inevitably reduce the services ratepayers receive. Reduction and liquidation of municipal debt has to be given priority over election gimmicks like free water and electricity. At 14%, R6-billion of debt will double in five years.

The other major point I made concerned the serious situation of the poor, who, because they are unable to meet mortgage repayments, cannot pay their rates. In the past year mortgages in default nationwide have risen by 30,4% from R9,2-billion to R12-billion. In the unicity this will result in at least 100 000 people being made homeless in the next 12 months.

Our honest money system proposals, which call for the nation's credit to be created at zero interest by a state bank, will resolve almost all of our problems.


Updating of our website is an ongoing process; more letters, etc., will be added from to time to time.

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 Join our Party

You can join the Abolition of Income Tax and Usury Party by sending us a Letter, Fax or Email giving us your Name and Title, your Address and your Contact Details (i.e. telephone number/s and Email, if any) AND with the following wording contained in your communication:

"I hereby apply for membership of the Abolition of Income Tax and Usury Party and bind myself to its Constitution.
"I can assist in the following way/s: *Active Participation; *Willing to be a Candidate; *Financial Support; *Other (Please specify)" (Any or all of these categories may be chosen.)

It will also be helpful if you could indicate your age, your fields of expertise or knowledge, and any other information you are willing to share with us that may come in handy for our Party.

The annual membership fee is R50,00 per family living together, which amount can be remitted to our postal address. If you would like to make a free-will donation towards our costs, over and above your membership fee, do feel free to do so.

Thank you for your time and trouble so far. We're looking forward to hearing from you.

P.S. 1. Of course you know that you can simply Copy and Paste the above into your Email or letter/fax and then formatting it before sending.

P.S. 2. Of course you may become a supporter of our Party without joining formally. Just drop us a line giving us your details.

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 Some worthwhile books on the subject of Money, Banking, ....and the rest

The following list, although by no means complete, would be a good start towards understanding the present corrupt money system and what steps need to be taken to halt its influence over our lives. Over the years a relatively small (but growing) number of astute people have discovered the secrets of the banks and the other money manipulators and they have fortunately left us books containing these. However, few if any schools, colleges and universities have taken this knowledge up into their curricula so we will have to suffer the consequences of "education" a bit longer. Of course we can educate ourselves in the meantime, and this book list is sure to go a long way towards this end.

>>> NOTE: The reader will naturally have to apply a certain amount of discretion in some cases but generally he or she will not have a hard time understanding and absorbing the information revealed. The books do not only cover money matters but, due to the nature of the beast, many other issues criss-cross this fascinating topic - such as economics, politics, education, mining, energy sources (oil and coal), commercial and industrial production, national and international trade, armed conflict, etc., etc. At times the thought may cross the reader's mind that everything is governed by a conspiracy or conspiracies. However, while this may be true in some instances, it is not the truth in all cases. The reader will have to make up his or her own mind about this.

The list is arranged alphabetically.

A HISTORY OF MONETARY CRIMES (Original title: BARBARA VILLIERS) by Alexander del Mar. A learned, fluent account of how private and alien interests have conspired time and again to gain control of the nations’ monetary systems, from seventeenth century England to the abolition of bimetallism in the U.S. in 1873, with a program for the restoration of “equitable money.” Pb., 104 pp., illus., index.

A MATTER OF LIFE AND DEBT by Eric de Mare, As America’s staggering national debt continues to soar, this most up-to-date study of Social Credit, the economic philosophy of Major C. H. Douglas, offers an exciting alternative to the shackles of bank credit and debt money. Pb., 121 pp. biblio., index.

A PRIMER ON MONEY AND MONEY FACTS: 169 Questions and Answers on Money published under the auspices of the late Congressman Wright Patman. Centennial edition of a dead-on challenge to the Federal Reserve by that body’s most influential critic in the last fifty years. This Congressional document is an authoritative, timely, and indispensable critique of the shadowy machinations whereby private bankers manufacture debt money in defiance of the substance and spirit of our Constitution. Pb., index, 140 pp.

BANKERS AND BASTARDS by Paul McLean and James Renton. Published by Hudson Publishing. Available, in Australia, from all good bookshops, ABC Shops, or from the publishers, P.0. Box 537, Hawthorn Vic 3122.

BATTLE YOUR BANK AND WIN! by Edward F. Mrkvicka, Jr. (1985) An ex-bank president’s handbook on standing up to your local bank Useful information and practical advice on credit, “services,” and the numerous scams by which your friendly neighborhood banker takes advantage of you. Indispensable for getting the best value for your money. Hb., 191 pp., glossary, index.

CENTRAL BANKING by M.H. de Kock - former Governor (i.e. President) of the so-called "South African Reserve Bank". First written in 1939, and reprinted and revised several times, (last, as far as can be ascertained, in 1974 when it was published in its fourth edition) this book is a treasure trove of facts concerning the establishement of so-called "Central Banks" around the world in what is still purported to be the "free" world. Although the author obviously tried to justify the take-over by the banks of our economic lives, and wrote it from a "Central Banker's" perspective, it is surprisingly revealing as far as the inner workings and legerdemain of the "central", "commercial" and "international" banks and other financial institutions are concerned. Hb., 325pp., index.

COIN’S FINANCIAL SCHOOL by William H. Harvey. “Coin” Harvey’s popular American classic, a trumpet blast against the Rothschilds and other international “gold bugs,” inspired William Jennings Bryan in his 1896 crusade to free America from its “cross of gold.” Brisk text, period cartoons, and Establishment historian Richard Hofstadter’s skeptical but informative introduction make this an excellent introduction to the money question during the first century of the Republic Pb.. 252 pp., illus., index.

ECONOMIC DEMOCRACY by C.H. Douglas. Since before the First World War, Douglas, brilliant political and economic analyst and founder of the Social Credit movement, saw the ominous worldwide trend toward centralization of finance-capitalism in a form of socialism that made the all-powerful State the sole employer. Given events since the 30s, the author’s words strike home with a force even greater than when they were written in 1919. Pb., 166 pp., index.

EMPIRE OF THE CITY — WORLD SUPERSTATE by E.G. Knuth. A concise, informative guide to how international finance, in tandem with British imperialism, exploited and even created geopolitical rivalries during the 19th and 20th centuries, Crammed with facts and revelations of the subterranean maneuvering that brought untold wealth to the bankers but only “blood, sweat and tears” to the people, including the English people, from the Opium War to the Boer War to and through the world wars. Pb.. 111 pp., index

HAND OVER OUR LOOT! by Len Clampet. This book tells you what the bankers do not want you to know, i.e. the stark simple facts about money and money flow. It deals with things such as credit creation, (which is only allowed by the Reserve Banks), [sic] and has some quite remarkable facts about the history of money and banking. As the editor of The New Citizen remarked, anybody who has ever complained about bank interest rates should read this book or shut up! [Write up lifted from Nexus New Times Vol.2 No.2 Feb/Mar 1991, P.55. Address given: Publisher: Len Clampet, P.O. Box 1863, Launceston. Tasmania 7250. Further details lacking.]

LAWFUL MONEY EXPLAINED: How to Win Back Your America by Gertrude M. Coogan. Twelve lectures on money which demystify and explain clearly money, its purpose, its perversion by private banking interests, Originally published in 1939, Lawful Money Explained remains a useful introduction to the money problem. Large format, Pb., 65 pp., illus., biblio.

LET GO OUR MONEY by Senator Sidney J. Smith. (1946). A concise rendition of two hard-hitting speeches delivered by Senator Smith in the Union of South Africa's Senate (in 1944) on how people are enslaved by the dishonest money system. At the age of 38, Senator Smith was the youngest member of the Senate at the time of his election. A member of the Durban Town Council in 1922, at the age of 21, he was the youngest Councillor in the Union's history. Elected to the Natal Provincial Council at 32 years of age, he was probably the "infant" member at that time. These well-researched speeches challenged the government with regard to the control of the financial system. Pb., 48 pp.

LIGHTNING OVER THE TREASURY BUILDING by John R. Elsom. New reprint of the classic 1941 exposé of America’s currency and banking racket focusing on national debt, national bankruptcy and national suicide. From the Bank of England and the House of Rothschild, to the demonetization of silver and the establishment of the Federal Reserve, this study is clearly written and easy to read. Pb., 128 pp.

LINCOLN: MONEY MARTYRED by R.E. Search. Dr “Search” provides a strongly populist history of banking and money, from Greece and Rome to the 1930s, together with a hearsay account of the assassination of Abraham Lincoln by a banker’s conspiracy. A comprehensive survey for the case against usury over the ages. Pb., 153 pp.

LINDBERGH ON THE FEDERAL RESERVE by Charles A. Lindbergh, Sr. How panics are engineered; origins of the capital vs. labor conflict; how the bankers get the press in their pockets; what the Federal Reserve Act really accomplished; the real purpose of war; economic and financial evils, and the way out: expert observations and wise commentary by a man in a position to know — Congressman Charles Lindbergh, father of the famed aviator. First published in 1923, this book is every bit as relevant today as it was then — perhaps even more so. Pb., 249 pp., index.

MANKIND'S GREATEST STEP: A NEW MONETARY SYSTEM by Charles S. Norburn and Russell L. Norburn. Vantage Press, New York, Washington and Hollywood, 1971.

MONEY: A MEDIUM OF POWER by Roger Elletson. In this book the author demystifies money and defrocks the Money Power. He heralds the new intellectual paradigms of power and organic law that supplant traditional economics. He uses the Parapometrics(R) methodology, the science of power, to refute the myth of money as a medium of exchange and reveal it as a medium of power. This definitive work reveals the subjects of money and the Money Power as the most important issues to face mankind at the beginning of the third millennium. No academic disciplines are more cloaked in mystery and misinformation than the study of money and the pseudology of economics that protects it. No constituency more urgently needs to be brought into the mainstream of academic awareness and public debate than the Money Power -- the private monopolists of money and controllers of international trade. Pb. Published by Grand Teton University Press, P.O. Box 15480, Jackson, WY 83002.

MONEY: QUESTIONS & ANSWERS by Rev. Charles P. Coughlin. The dynamic Irish-American radio priest supplies a lucid, well-reasoned introduction to the vexed question of money, banking, debt, taxation, and the Federal Reserve. Written before Father Coughlin was muzzled half a century ago Money’s easy-to-read question and answer format makes this an excellent book for beginners. Pb., 190 pp.

OUT OF DEBT, OUT OF DANGER by Congressman Jerry Voorhis. Voorhis was resolutely opposed to the Federal Reserve Banking System on Constitutional and ethical grounds, and authored model legislation that would have abolished the Fed as constituted, transforming it from a debt-spawning monster into a true servant of the public. Voorhis was unique in his grasp of the harmful effects of the Fed on America, and in his courage as a prominent elected official to publicly, vigorously oppose it. After you have read this book you will know the Fed as Congressman Voorhis knew it — how it serves the interests of a privileged few while bleeding the public — and what can be done to turn it into a resource that will serve the broader interests of all citizens. Pb., 238 pp.

STABLE MONEY by W.E. Turner. A conservative American takes on the Federal Reserve as well as left-liberalism in this systemic treatise on the money problem in America and abroad. From “Business cycles” to taxes, debt, inflation, the role of the Fed, foreign trade and trade wars, the author clarifies the often deliberately obscure theories and practices which make economics and money mysterious. Foreword by legendary Fed foe Congressman Wright Patman, Hb., 547 pp., illus.

STORED LABOR — A NEW THEORY OF MONEY by Hugh A. Thomas (1991) A concise, hard-hitting demonstration of how bankers and governments steal the rewards of your hard work by meddling with money and credit. Explains what real money is — and why our masters don’t want us to have it. Pb., 89 pp.

THE BABYLONIAN WOE: A STUDY OF THE ORIGIN OF CERTAIN BANKING PRACTICES by David Astle. Privately published by the author, Toronto, Ontario 1976.

THE COLLECTED SPEECHES OF CONCRESSMAN LOUIS T. MCFADDEN as compiled from the Congressional Record. Trip-Hammer congressional speeches by Depression-era statesman Louis T. McFadden, one of the most powerful and convincing voices ever raised against the internationalist conquest of the American economy. This courageous American lawmaker dared to battle the Federal Reserve and the international banking racket not least for their ruthless exploitation of post-Versailles Germany, mincing no words on the shadowy forces behind banking and Bolshevism. The theme of these speeches is the question, unanswered by the Establishment to this day. Congressman McFadden thundered 60 years ago: “Why not an American policy?” Pb., 539 pp., biblio., index.

THE DYNAMICS OF WAR AND REVOLUTION by Lawrence Dennis, The man best known to revisionists for his role in the FDR’s 1944 Sedition Trial was one of the 20th century’s most original and trenchant thinkers. Dennis, who saw the forces that make for international political upheaval up dose as a State Dept. diplomat and international banker, defies standard “liberal” and “conservative” shibboleths alike to reveal the role of over-production and hyper-capitalism, international banking and debt money in producing internal chaos (revolution) and external strife (war). Pb., 259 pp., index.


THE FEDERAL RESERVE HOAX by Wickliffe B. Vennard, Sr. An exposé of the hidden methods and motives behind the Federal Reserve System and of its monetary crimes against America since its inception, as well as a look at its shadowy supporters, its outspoken opponents, and an analysis of their arguments. Pb., 330 pp., biblio., index.

THE HISTORY OF MONEY IN AMERICA FROM THE EARLIEST TIMES TO THE ESTABLISHMENT OF THE CONSTITUTION by Alexander Del Mar. Omni Publications, Hawthorne, California, first published 1899.

THE LEGALIZED CRIME OF BANKING by Silas Walter Adams. Omni Publications, Hawthorne, California, 1958.

THE MONOPOLY OF CREDIT by C.H. Douglas. How can a world suffering from over-production be in economic distress? Where do money and credit really come from? What makes universal price inflation a permanent built-in feature of the world’s monetary system? Will balancing the budget help? What causes war? These questions and more are answered by the author. Pb., 189 pp.

THE NAKED CAPITALIST - A Review and Commentary on Dr. Carroll Quigley's Book: Tragedy and Hope by W. Cleon Skousen (1970)

THE LOST TRADITION OF BIBLICAL DEBT CANCELLATIONS by Michael Hudson. Henry George School of Social Science, New York, NY, 1993.

THE ROBBER BARONS by Mathew Josephson tells the incredible story of the rise of the Rockefeller, Morgan, Vanderbilt and Carnegie empires — the giant American capitalists who ruthlessly seized economic power after the Civil War and altered the shape of American life forever. Henry Hazlett in The New York Times Book Review said Josephson “. . . is particularly to be congratulated upon the lucidity with which he set forth the complex financial transactions and the uncanny legerdemain by which most of the barons built up their fortunes.” Pb., 474 pp., index.

WAR CYCLES/PEACE CYCLES by Richard Kelly Hoskins. Cyclical interpretations of the boom/bust phenomenon that has dogged organized economies since antiquity are in vogue once again. This one, by stock broker and financial consultant Hoskins, examines the process in the light of time-dishonored manipulation by international usurers, from Babylon to today’s Wall Street. Pb., 250 pp.

WEALTH, VIRTUAL WEALTH AND DEBT by Frederick Soddy. The cardinal importance of a sound, sane monetary system to the maintenance and progress of civilized society. In this challenging, informative and superbly argued analysis of wealth, money, and debt, British Nobel laureate Soddy (Chemistry 1921) banishes fallacies and offers solutions to a perennial problem. Pb., 320 pp., index.

>>>>> (Many more books will be added to this list in due course.)

Please don't forget to drop us a line with your brickbats and bouquets.
We will really appreciate it.
Email: info@abolishtax.org.za

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 Our Platform for the Municipal Elections

 - 5 December 2000 -

This final year of the millennium brought with it far-reaching and sweeping changes as far as local government is concerned. After six years in power the ruling party is seeking to consolidate its hold on the people of South Africa.

First it was Central government and Provincial government that were changed beyond recognition, and now it is Local government's turn.

True to the dictates that govern their thoughts, more and more power must be put in the hands of fewer and fewer people. This is typically élitist.

The practical consequences of this grab for total power is the formation of what is called the "UniCity" or "MegaCity".

Ridiculous as it may sound, there is for the first time in our history the payment of a "participation fee" or "deposit" to be paid up front to take part in local elections. A deposit which will be lost if the participating Parties or candidates do not attain a seat on the Unicity council.

For political parties, the deposit is exorbitant at R3 000 for a Metro Council, R2 000 for a Local Council with wards, R1 000 for a Local Council without wards and R1 000 for a District Council, while an "independent" ward candidate has to fork out R500 to participate. (The exchange rate is about R7.50 for a dollar and heading higher.)

It can thus be seen that it would take a fortune to take part in all the hundreds of councils around the country. So it is out of the question for a small party with extremely limited funds, such as ours, to participate on a large scale.

Our political scene has truly degenerated into a big money game, where those parties and individuals with huge reserves of capital are almost guaranteed to win most, if not all, the seats, while participation by those who are cash-strapped is severely frustrated.

As a result of the above-mentioned monetary constraints, we decided to take part in only one Metropolitan region - i.e. Cape Town. This is where we are based and where we attracted a substantial number of votes in the general election of 1999.

Considering the large amounts we'll have to expend on advertising, pamphlets, posters and postage, our "shoestring" budget simply does not permit us to do more at this stage.

The "shoestring" we are speaking of amounts to about R20 000 (twenty thousand rand), so if anyone out there wishes to contribute towards our efforts to secure a safe, contented and equitable society for all our people, please feel free to dig deep in your pockets.

What follows is the wording on our pamphlet.

( As contained in our A5 pamphlet )

"High time for Dynamic Change"

Vote - Abolition of Income Tax and Usury Party

The only party concentrating on the economy for
Economic Freedom = Progress & Prosperity


The Abolition of Income Tax and Usury Party seeks to:

Reduce rates and taxes to the barest minimum - because high rates and taxes are the result of incompetence, corruption and theft. With our Honest Money System in place this will stop.

Reduce Councillors' salaries and fees to the barest minimum - because councillors are paid far too much and this encourages the wrong kind of person to seek office.

Provide fair and equitable services to all ratepayers and residents - not because it is the right thing to say, but because it is indeed possible.

Limit the term councillors may remain in office - because "career" councillors are motivated not by service but by other factors. We suggest an equitable period in office may be just one or two terms.

Introduce the system of RECALL - because it puts the power back in the hands of the people. When councillors or parties do not deliver, the serving councillor must be recalled by way of petition signed by, e.g. 5000 ratepayers in a large Metropole.

We say:

(1) Councillors are duty bound to serve and not govern. - The difference is that "governing" implies that councillors are higher than those they serve.

(2) Councillors must act responsibly in their public and private lives and seek to satisfy the legitimate needs and aspirations of those they serve, i.e. the ratepayers.

(3) Local government (municipalities/councils) must not borrow money from banks, local or international - because it makes ratepayers indebted to their detriment through usury.

(4) Local government must not establish "reserves" - because each year's expenditure should equal the income from rates and taxes.

(5) Local government must not make "investments" - because it impacts on budgeting, puts ratepayers at risk, and results in subsidisation of future generations.

(6) Local government must provide services, safety, and a clean environment.

(7) There must be no interference by Local Government in the legitimate affairs of the people.


"High time for Dynamic Change"

Vote - Abolition of Income Tax and Usury Party

The only party concentrating on the economy for
Economic Freedom = Progress & Prosperity


The Abolition of Income Tax and Usury Party seeks to:

Abolish Income Tax - because it is theft of your labour; it holds back development; it causes unemployment and crime. South Africa, as elsewhere in the world, will prosper without this tax.

Abolish Interest (Usury) - because only the banks profit from interest; you are enslaved by interest; the banks end up owning everything.

Establish an honest money system - free of interest (usury) and free of inflation.

Protect our Natural Environment - so that we may live, work and play in good health.

We say:

(1) The creation of Money (coins and notes) and Credit (lending money into creation) must be left to the State (that's all of us) and not to the commercial banks.

(2) The State must not borrow money from banks, local or international.

(3) The State must be in Partnership with big companies and mines.

(4) Banks must only lend out what they get in as deposits.

(5) Banks must share responsibility with their borrowers.

(6) Banks must charge only normal service and other fees, but not interest.

(7) There must be no interference by Government in the legitimate affairs of the people.

The Abolition of Income Tax and Usury Party will fight for your rights inside and outside the council chambers of the Unicity. Therefore, at the 2000 municipal elections, remember to

VOTE Abolition of Income Tax and Usury Party - for DYNAMIC CHANGE.

For our Manifesto please send five standard postage stamps. Phone or fax us to join or assist.)

See our Manifesto and Policy Positions on our website at: http://www.abolishtax.org.za

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When you're farming for the Bankers
Bankruptcy is the ever-present ogre

Money, money, money...
Whose is it anyway?

Why isn't it ours to keep?
We work for it after all!

With our Party's Honest Money System, it would be ours.
Let's make it happen for our nation. Let's take back the power.
Why leave the creation of our money and credit to the faceless bankers?

Vote for the Abolition of Income Tax and Usury Party.

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The Scots' Land -- http://www.scotsland.org -- Land Reform for Scotland

ProsperityUK -- http://www.ProsperityUK.com -- PROSPERITY: Freedom from Debt Slavery, is dedicated to the proposition that the State should create a supply of debt-free money, which should be spent, not lent, into the economy.

ScotBarter -- http://www.scotbarter.org.uk -- Scotland's Business Barter Network.

whirledbank -- http://www.whirledbank.org -- A website critical of World Bank Policy.

go-oaktree -- http://www.go-oaktree.com/3.htm -- Joseph Phelps, an American money reformer.

BAMR -- http://www.users.globalnet.co.uk/~bamr1 -- The British Association for Monetary Reform, which also publishes booklets.

Professor Giacinto Auriti -- http://www.calneva.com/money/italy/lire-1e.htm -- An essay by the Italian Professor whose experiment in local currency was reported in the Independent on Sunday (8 Oct 2000, p.22) by journalist Frances Kennedy as "Everyone Gets Richer as Professor Prints Money".

Coalition to Reform Money -- http://www.wavefront.com/~moneytalkscrm -- A Web-based version of the MoneyTalk$ journal, a First Amendment educational project by Americans for Better Transportation.

Monetary Reform -- http://www.monetary-reform.on.ca -- A Canadian publication campaigning for "a just monetary system, where above all a far greater share of the nation's wealth supply is composed of government created debt-free money."

Intraforum -- http://intraforum.com/money -- Sabine McNeill's website. She organises meetings which are held regularly on the subject of money reform in the House of Lords.

The Money Masters -- http://www.themoneymasters.com -- An American website based on the extraordinary video and book: The Money Masters: How International Bankers Gained Control of America. As the economist Milton Friedman, Nobel Laureate in Economics and Senior Fellow, the Hoover Institution on War, Revolution and Peace, has told the authors, "As you know, I am entirely sympathetic with the objectives of your Monetary Reform Act..."

Fraud - Credit Card Fraud Nsw Australia Penalty -- Fraud Prevention, Information and News about Fraud Online

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