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(ENTWURF VON ULRICH VON BECKERATH, 21. 5. 1956,

ueber MONETAERE RECHTE zur Arbeitsbeschaffunng.)

From PEACE PLANS No. 740, pages 240 & 241
____________________________________________________________________________________________

Jeder hat das Recht und die Befugnis, in Verbindung mit anderen arbeitsteilig den seiner Arbeitskraft und seinen
Faehigkeiten entsprechenden Unterhalt zu produzieren; er hat auch das Recht und die Befugnis, die
wirtschaftlichen und die technischen Massnahmen durchzufuehren, durch die dieses Ziel erreicht werden kann.

Solche Mittel sowie ergaenzende Rechte und Befugnisse sind unter anderen

l.) Schaffung von Vereinigungen zur Erleichterung des Austausches und desZahlungsverkehrs.

2.) Abschluss von Vertraegen und Uebereinkommen, durch welche Arbeitsprodukte und Dienstleistungen mit
     typisierten und wie Geld gestueckelten Verrechnungsscheinen bezahlt werden koennen.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Gesetze und Verordnungen und dergleichen, durch welche es verboten oder erschwert wird, private
Verrechnungsscheine wie Geld zu stueckeln und zu typisieren sind mit dem Recht und mit der Befugnis eines
jeden, arbeitsteilig den seinen Kraeften und Faehiggkeiten entsprechenden Unterhalt zu produzieren, unvereinbar.

Die bestehenden gesetzlichen Bestimmungen ueber Wetten, Spiele, gewagte Geschaefte sind sinngemaess
anzuwenden auf Vertraege, durch die Gueter oder Dienstleistungen versprochen werden, welche nicht mit
Gewissheit sondern (nur) bei Eintritt oder bei Vorhandensein guenstiger Umstaende geleistet werden koennen, z.B.
Muenzen, Papiergeld und Anweisungen auf bestimmte Bankinstitute und solchen Anweisungen wirtschaftlich
gleichzuachtende Verpflichtungsscheine.

---------------------------------------

3.) Das Recht ohne Angabe von Gruenden Zahlungsmittel abzulehnen, zu deren Annahme man sich nicht durch
formellen oder stillschweigenden Vertrag verpflichtet hat, kann weder durch Gesetz noch durch Verordnungen
eingeschraenkt oder aufgehoben werden. Vertragsgemaessen Leistungen gleichzuachten sind solche, die nach den
Grundsaetzen von Treu und Glauben und gemaess den in den betreffenden Wirtschaftskreisen anerkannten
Verkehrssitten geschehen.

4.) Die Ausstattung von Zahlungsmitteln mit Zwangswert und Zwangsumlauf im allgemeinen Zahlungsverkehr ist
mit den Rechten des Menschen und Buergers unvereinbar.
____________________________________________________________________________________________


(DRAFT BY ULRICH VON BECKERATH, 21.5.1956,

on MONETARY RIGHTS for the provision of employment.

Translated by John Zube, 1.1.1986.)

Everyone has the right and the authority to produce, together with others and under division of labour, his
supporting income, one that corresponds to his labour power and his abilities. Furthermore, he has the right and the
authority to realize those economic and technical measures by which this aim can be achieved.

Such means and supplementary rights and authorities are, among others, the following:
l.) The establishment of associations to facilitate exchange and payment transactions.

2.) The conclusion of contracts and agreements by which the products of labour and services may be paid with
typified clearing certificates in monetary denominations.

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Laws, regulations etc. which prohibit or make it difficult to issue private clearing certificates in monetary
denominations and in typified form, are untenable with regard to the right and the authority of everyone to produce
his livelihood in a division of labour process and in accordance with his strength and abilities.

The existing legal clauses on bets, games and risky dealings are correspondingly to be applied to contracts that
promise goods or services which cannot be supplied unless favourable circumstances exist or occur, for instance,
goods like coins, paper money and assignments to certain banking institutions or promissory notes and certificates
which are economically to be considered equal to them.

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3.) The right to refuse to accept means of payment, without having to state reasons for this, when one has not
      obliged oneself to accept them by a formal or tacit contract, may neither be repealed nor restricted by laws or
      regulations. Contractual services are services done in good faith and in accordance with the usual customs in
      the particular economic sphere

4.) To grant means of payment a forced value and a compulsory circulation (legal tender characteristics) does not
     agree with human and civil rights.

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Please note that Ulrich von Beckerath produced a much longer and more detailed draft of economic rights which I
have microfiched but not yet scanned in.

His three classical books on the subject, which were previously duplicated and then microfiched by me, in PEACE
PLANS 9 - 11, are now available from me by e-mail and will, hopefully, be placed on the Internet by someone.
I do intend to offer them, with much more material on free banking and monetary freedom, also on a CD-ROM.
Until then I can only offer them by e-mail upon request.

Monetary freedom is just on practical aspect of panarchism, which is also extensively dealt with in my PEACE
PLANS series.

An introduction to panarchism can be found on my main website:                          www.acenet.com.au/~jzube and further
material on it on www.panarchy.org & www.panarchism.info

PIOT, John Zube, 29.12.02.            jzube@acenet.com.au

FB Bth 181250 Economic Rights G E

Abschrift

                                         Einige Bemerkungen
                           zu im Jahre 1947 veroeffentlichten Vorschlaegen
                                        zur Waehrungsreform
------------------------------------------------------------------------------------------------------------------------------------------

                                          von Ulrich von Beckerath, 28.12.1950.
-------------------------------------------------------------------------------------------------------------------------------------------
              Aus: PEACE PLANS 589/590: Eine Sammlung von privaten Menschenrechtserklaerungen
               Scanned, zusammen mit der folgenden Englischen Uebersetzung, von J.Z., am 30.12.2002.
-------------------------------------------------------------------------------------------------------------------------------------------

l.) Jeder Autor glaubt, dass sein Vorschlag um so besser sei, je mehr Vorschriften etc. er enthaelt, die das
Zahlungsmittel-Monopol der Regierung befestigen oder gar erweitern und die Macht der Regierung ein fuer alle
Zwecke geltendes Wertmass anzuordnen. Keiner hat sich die Wehe gegeben, mal zu ueberlegen, was geschehen
wuerde, wenn von heute auf morgen alle Vorschriften ueber das Geldwesen und was damit zusammenhaengt,
einfach aufgehoben wuerden, die allgemeinen Vorschriften des Strafgesetzbuchs ueber Betrug etc. aber in Kraft
blieben.

Was wuerde im gedachten Falle geschehen?

Das erste waere, dass sich ein Markt fuer Edelmetalle etablieren wuerde. Im Anschluss daran wuerden private
Medaillen-Fabriken Medaillen zu 1 Gramm Gold, 2 Gramm, etc. herstellen. Den besten Absatz wuerden Medaillen
(man koennte sie ouch typisierte Barren nennen) haben, die durch Aufdruck angaeben: Durchmesser und Dicke in
Bruchteilen van Millimetern, so genau wie technisch moeglich, Feingehalt moeglichst genau, Adresse der Fabrik
und des "Muenzmeisters", Datum der Praegung, Bruttogewicht, Feingehaltsgewicht, obwohl letzteres sich ja auch
aus dem o/oo-Feingehalt und dem Brutto-Gewicht ergibt. So ausgefuehrte Medaillen wuerden mit einem solchen
Aufgeld bezahlt werden, dass ihre Herstellung lohnend waere.

Dann wuerden die Laeden einen Entschluss darueber fassen muessen, welche Zahlungsmittel sie kuenftig
annehmen werden, und in welcher Werteinheit sie die Preise festsetzen. Man wuerde beschliessen: Vorlaeufig
lassen wir's beim alten.

Inzwischen wuerden Besitzer von Feingold, Inlaender und vor allem Auslaender, Nachrichten ueber den Markt
einziehen: sie wuerden feststellen, dass fuer viele Artikel das Gemeinwesen (nennen wir es einfach "Berlin") ein
geeigneter Ort des Einkaufs ist, wenn man Gold in Medaillen umpraegt und mit den Medaillen solche
Zahlungsmittel kauft, die in Berlin von Warenbesitzern angenommen werden. Das wird auch fuer die Ware
"Arbeitskraft "gelten. Viele werden z.B. in Berlin Textilien faerben und naehen lassen. An Auftraegen fuer andere
Arten van Veredelungsindustrie wird es nicht fehlen.

Dadurch werden Medaillen auch in den Verkehr kommen. Die Laeden werden bald Plakate anbringen:
Wir nehmen auch Gold-Medaillen an, 1 Gramm = X Papiergeldeinheiten, 2 Gramm = 2X , etc. Die Behoerden
werden bekannt machen: Wir nehmen bei Abgaben ebenfalls Medaillen an, Wertverhaeltnis: so und so.

Wenn die Menge des umlaufenden Papiergeldes nicht vermehrt wird, so wird sich bald ein ziemlich festes
Wertverhaeltnis zwischen Gold und Papier ergeben. Diese Konstanz wird sehr bemerkt werden und wird der
Anfang einer grossen Reform sein.

Zunaechst werden die Behoerden ihre Beamten mit Scheinen bezahlen, auf denen steht: Mit diesem Schein, lautend
ueber z.B. ein Gramm Gold, koennen Steuern ebenso bezahlt werden wie mit Papier. Der Schein wird mit ABC
Papiereinheiten angenommen. Sehr bald werden andere Scheine als these aus dem Verkehr verschwinden. Mit den
von frueher her dagewesenen Scheinen wird das Volk Steuern bezahlen, es wird die Scheine aber nicht wieder
annehmen, sondern es wird sagen: Gebt uns Goldwert-Scheine, wie sie die Beamten bekommen. Binnen weniger
als 4 Wochen sind dann nur noch Scheine vom neuen Typ im Verkehr.

Viele Laeden werden Noten vom gleichen Typ ausgeben, damit z.B. ihre Angestellten entlohnen und versuchen,
damit ihre Berliner Einkaeufe zu machen. Die ganz grossen, Wertheim, etc., erreichen die Annahme beim
Publikum ohne Schwierigkeit. Noten eines kleinen Gemueseladens aber weist das Publikum zurueck, ausser den
Nachbarn des Gemueseladens, die die Scheine in dem Laden leicht wieder los werden. Sehr bald wird auch das
Publikum die Bedeutung der Nummerierung und der Datierung erkennen. Undatierte und nicht nummerierte
Scheine wird das Publikum ohne weiteres zurueckweisen. Ferner: Die Presse wird darauf hin-

                                                                   -2-

weisen, dass solche Ausgeber von Noten Misstrauen verdienen, die nicht taeglich bekanntmachen, wieviel Noten
sie ausgegeben haben. Der Hinweis wird wirksam. Alle Noten von Emittenten, die solche Bekanntmachungen
unterlassen, werden ebenfalls ohne weiteres zurueckgewiesen werden. Die Namen derer, die nichts bekannt
machen, wird die Presse ver-oeffentlichen.

Nun zeigt sich, was zunaechst niemand erwartet hatte. Die allgemeine Emissionsfreiheit wird durch das Fehlen
eines Zwangskurses so gut we aufgehoben. Nur ganz wenige Emittenten setzen sich durch: Etwa der Magistrat, die
Verkehrsunternehmungen, einige grosse Laeden. Was die Laeden anlangt, so ist es unausbleiblich, dass sie sich zu
Emissionsgemeinschaften zusammenschliessen. Vielleicht wird sich sogar nur eine solche Gemeinschaft
durchsetzen. Die uebt dann alle Funktionen einer alten Privatnotenbank aus.

Anstatt einer allgemeinen Ueberflutung mit Zahlungsmitteln von unbekannten Ausgebern wird sich eher ein
gewisser Deflationsdruck bemerkbar machen.

Der Deflationsdruck wird noch durch folgendes verstaerkt werden. Sowie am Goldmarkt sich zeigt, dass man um
Gold zu kaufen von einem bestimmten Zahlungsmittel mehr aufwenden muss als vorher, anders ausgedrueckt,
dass das betr. Zahlungsmittel - - in Gold gerechnet - - sich entwertet, nimmt es niemand mehr im Verkehr an ausser
mit Disagio.

Die Scheine stroemen zum Emittenten zurueck, und neue kann der Emittent beim misstrauisch gewordenen
Publikum nicht anbringen. Er scheidet auf laengere Zeit oder auf immer als Emittent aus. Das wuerde auch dem
Magistrat so ergehen, wenn er etwa zuviel Noten ausgibt. Da im Anfang die Emittenten die Erfahrung nicht haben,
die sie spaeter mal bekommen werden, so werden manche anfangs zu viel Noten ausgeben. Das Publikum wird sie
ruecksichtslos ausschalten. Neue Ladengemeinschaften werden die Stelle der alten einnehmen, und die werden die
oekonomischen Marktgesetze im eignen Interesse wenigstens eben so sorgfaeltig respektieren als sie frueher die
Geldgesetze respektiert haben.

Der Deflationsdruck, wenn er auch nur leicht sein wird, der bewirkt bald die bei Deflationen ueblichen
Erscheinungen, vor allem eine grosse Ausdehnung des Verrechnungswesens. Beante z.B. werden wieder, wie vor
60 Jahren, viel "auf Buch" kaufen, und sie werden damit einverstanden sein, das "Buch" am 26-sten des Monats
abgeschlossen beim Kaufmann einzureichen. Der Kaufmenn wird das Buch dem Arbeitgeber (Magistrat,
Fabrikanten, etc.) einreichen, und bei der Gehaltszahlung am Monatsende bekommt der Arbeitnehmer das Buch
zurueck. Sein Debet ist vom Gehalt abgezogen.

Ganz loesst sich der Deflationsdruck der bei fehlendem Annahmezweng entsteht, nicht beseitigen. Untragbar aber
wird der Druck nie werden, und in ganz schlimmen Faellenhilft das jedem zustehende Emissionsrecht.
Zahlungsgemeinschaften, wie sie anscheinend schon Knapp geahnt hat (er hat das Wort gepraegt), werden sich
bilden und denVerkehr mit Zahlungsmitteln versehen. Wie das in der Praxis funktioniert, das zeigt sich in den USA
bei grossen Geldkrisen. Naeheres in einem ganz ueberaus interessanten und geld-theoretisch sehr bedeutsamen
Aufsatz von John DeWitt Warner in der New Yorker Zeitschrift "Sound Currency", Jahrgang 1895 (wiederholt
1896), betitelt: "The Currency Famine of 1893". Vielleicht hat Knapp auch die Clearing House Certificates"
gekannt, die in den USA bei grossen Geldkrisen von Zahlungsgemeinschaften der Geschaeftsleute ausgegeben
werden.

Das Endergebnis der monetaeren Freiheit wuerde sein, dass alle Werte in Gramm Gold berechnet werden, und dass
sich als Verkehrssitte herausbildet, dem Gramm Gold gleichwertig anzusehen eine Menge von Papiergeld, fuer die
man am Goldmarkt ein Gramm Gold kaufen kann, vorausgesetzt, dass das Papiergeld zu jeder Zeit anbringbar ist
bei einer dem Publikum bequem zugaengigen Stelle (Laden, etc.), die fuer das

                                                      -3-

Papier etweder Waren oder Dienstleistungen (Waescherei, etc.) zur Verfuegung stellt. Das Einloesungsprinzip aber
wuerde mehr and mehr durch das Annahmeprinzip ersetzt werden. Zuletzt wuerden sogar Wechsel ausgestellt
werden, in denen es heisst:

                      DiesenWechsel nehme ich zu so und so viel Gramm Gold
                      in meinem normalen Zahlungsverkehr, und nach dem (Datum) an.
Zuletzt werden sogar Anleihestuecke, Industrieobligationen, etc. auf Grund dieses Prinzips ausgestellt werden. Es
wird nicht mehr heissen: Dieses Stueck oder die Zinsscheine loesen wir mit so und so viel ein, sondern wir nehmen
sie zum Werte von sound soviel in unserm normalen Zohlungsverkehr an.

Der Goldmarkt funtioniert, wie sich gezeigt hat, auch wenn nur ein paar Kilo Gold taeglich darauf umgesetzt
werden.

Goldmarkt, Abwesenheit von Zwangskurs und unbeschraenktes Ernissionsrecht werden folgendes bewirken:

1.) zu jeder Zeit ausreichende Versorgung mit Zahungsmitteln, wenn auch mit leichtem Deflationsdruck im
      taeglichen Verkehr,
2.) technische Unmoeglichkeit einer Inflation,
3.) voellige Unabhaengigkeit der Wirtschaft und des Einzelnen vom Vorhandensein groesserer Mengen von Gold.

- - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - -

Es ist noch auf einen hoechst wichtigen Umstand hinzuweisen. In Goldwaehrungslaendern da haben die Glaeubiger
alle einen Rechtsanspruch auf Gold. Ob viel Gold im Verkehr ist oder wenig oder gar keines: Der Schuldner muss
Goldmuenzen zahlen, wenn der Glaeubiger darauf besteht. In dieser Bestimmung sind alle Uebel enthalten, die
man bisher ganz irrig der Goldwaehrung als solcher zuschrieb.
Besonders klar ist dies aus Schriften zu ersehen, wie Tolstoy's "Geld". Da beschreibt z.B. Tolstoy die ueberall in
Afrika und auch in vielen anderen Kolonial-Laendern den Eingeborenen auferlegten Huetten-Steuern. Diese
Huetten-Steuern sind in bar zu zahlen. Der Eingeborene hat aber kein Bargeld, nicht einen Cent hat er. Um
Bargeld zu bekommen, muss er sich beim Weissen als Arbeiter verdingen. Das ist ja auch der eigentliche Zweck
der Huetten-Steuer. Tolstoy haelt nun these Abscheulichkeit fuer ein Werkmal der Geldwirtschaft im allgemeinen
und bemerkt nicht, dass die Lage der Eingeborenen ganz anders waere, wenn sie etwa in Produkten zahlen
duerften, die in Geld bewertet werden, oder wenn sie in Einkaufsscheinen zahlen duerften, auf denen steht:

                    Diesen Schein nehme ich - - Haeuptling Mbu-Mbu - -mit 10 L in Zahlung,
                    wenn mir einer Produkte fuer wenigstens diesen Betrag abkauft.

Eine Sonderstellung unter den Goldwaehrungslaendern nimmt Deutschland ein. Der Par. 242 BGB verlangt einfach
Zahlung nach Treu und Glauben und entsprechend der Verkehrssitte. Wenn der Schuldner Verrechnung in
verkehrsueblicher Form anbieten wuerde, so muesste der Glaeubiger zufrieden sein.
Diese Bestimmung ist selbst bei den sogenannten Fachleuten unbekannt, wenn sie auch jeder Rechtsanwalt kennt.
Auf dem grossen, i.J. 1908 von der Reichsbank einberufenen Kongress der Bankfachleute und der
Waehrungs-Sachverstoendigen wurde allgemein die Meinung vertreten, dass der Glaeubiger Gold verlangen
duerfe. Es warf einer die Frage auf, ob gar ouch die Arbeiter bei Lohnzahlungen Gold verlangen duerften. Adolf
Wagner bejahte die Frage (zum Entsetzen der Versammlung). Das Grundsaetzliche wird nicht dadurch erledigt,
dass das Silbergeld ja bis zu RM 40.- pro Zahlung Zwangskurs hatte. Die Bestimmung der Gewerbeordnung (wenn
ich nicht irre von 1869) und der Par. 242 BGB stehen hier in einem gewissen Widerspruch. Nach der
Gewerbeordnung darf der Arbeitnehmer Bargeld fordern. Nach Par 242 aber waere es doch nicht ausgeschlossen,
dass Arbeitgeber und Arbeitnehmer ein Verrechnungssystem vereinbaren.

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                                                                   -4-
2.) Keiner der Modernen, mit ruehmlicher Ausnahme des Prof. Rittershousen, hat eine Ahnung davon, dass es
ausser den politischen "Rechten des Menschen und Buergers" auch auf oekonomischem und auf monetaerem
Gebiet solche Rechte gibt. Es handelt sich hier also um Rechte, die keine Regierung, keine Majoritaet und keine
irgendwie gegruendete und organisierte Gewalt dem Menschen nehmen kann, ohne ihn moralisch zu jeder Art von
Widerstand zu berechtigen.

Einige der monetaeren Grundrechte und unmittelbar damit zusammenhaengender Rechte anderer Art moechte ich
im Nachstehenden kurz skizzieren. Die Liste macht keinen Anspruch auf Vollstoendigkeit. Auch waere an der
Ausdrucksweise noch zu feilen.
I.) Keine Regierung hat das Recht, ihren Untertanen einen bestimmten Glauben an oekonomische, monetaere und
dergleichen Theorien aufzuzwingen oder die Bekanntmachung, Eroerte-rung oder andererseits die Propaganda fuer
oekonornische, monetaere und dergleichen Theorien zu verbieten.

II.) Keine Regierung hat das Recht, ihren Untertanen oekonomische oder monetaere Planungen aufzuzwingen,
auch nicht, wenn sie solche Planungen mit ihr selbst einleuchtenden Theorien glaubt rechtfertigen zu koennen.

III.) Keine Regierung hat das Recht, einen Untertan zu hindern, sein oekonomisches und sein monetaeres
Verhalten nach eignem Ermessen einzurichten, vorausgesetzt, dass er es auf eigne Kosten und auf eignes Risiko
tut. Der Umstand, dass Glaubenssaetze religioeser und anderer Gemeinschaften oder als Saetze der Wissenschaft
geltende Meinungen angesehener Personen oder Gruppen irgend ein Verhalten empfehlen, fordern, seine
Erzwingung fuer erlaubt erklaeren oder aber ein bestimmtes Verhalten verurteilen, braucht fuer keinen Untertan
massgebend zu sein.

IV.) Jeder Untertan hat das Recht, andern Personen von ihm selbst ausgegebene, typisierte Zahlungsmittel
anzubieten, die er bereit ist in seinem normalen Zahlungsverkehr wie baresGeld anzunehmen, vorausgesetzt, dass
die Art der Verwertungsmoeglichkeit solcher Zahungsmittel ihre ausgegebene Menge und andere Einzelheiten, an
denen die Oeffentlichkeitein berechtigtes Interesse hat, genuegend bekannt gemacht sind.

Annahmezweng und noch weniger Zwangskurs fuer ausgegebene Zahlungsmittel darf weder ein einzelner Untertan
beanspruchen noch darf es eine Gruppe noch darf es die Regierung. Die Worte "Annahmezwang" und
"Zwangskurs" sollen hier in der in der Wissenschaft ueblichen Bedeutung verstanden werden.

V.) Jeder Untertan hat das Recht, gemaess Nr. IV, ihm angebotene Zahlungsmittel in solchen Formen
zurueckzuweisen, wie sie Treu und Glauben im Verkehr und guter Sitte entsprechen. Die von dem Untertan selbst
ausgegebenen Zahlungsmittel werden hiervon nicht beruehrt; es gelten fuer sie vielmehr die anerkannten
Grundsaetze fuer die Aufrechnung.

VI. Jeder Untertan hat das Recht, typisierte Barren aus Edelmetall herzustellen oder herstellen zu lassen, sei es in
Form von Medaillen oder in anderer Form, vorausgesetzt, dass den typisierten Barren deutlich aufgepraegt ist: Das
Bruttogewicht, das Nettogewicht an Edelmetall, der sich hieraus ergebende Feingehalt, der Durchmesser, die Dicke
(bei nicht kreisfoermigen Barren die Laenge, die Breite und die Hoehe), das spezifische Gewicht, die Art der
Legierung, die Adresse des Herstellers und das Datum der Herstellung.
Die Zahlenangaben haben mit der Genauigkeit zu geschehen, welche die Technik der in den Verkehr gebrachten
Muenzen erlaubt. Mit den so hergestellten Medaillen darf jeder Zahlung leisten, falls der Empfaenger damit
einverstanden ist. Der Regierung wird das Recht nicht bestritten, von ihr selbst hergestellte Muenzen der
beschriebenen Art mit Annahmezwang auszustatten.

                                                       -5-
-

VII.) Keine Regierung hat das Recht fuer Zahlungen und andere Transaktionen die Verwendung eines bestimmten
Zahlungsmittels oder Umsatzmittels anzuordnen, z.B. Gesetze zu erlassen, wodurch allen Glaeubigern ein Recht
eingeraeumt wird, Goldmuenzen oder Noten zu fordern.
Der Regierung wird aber das Recht nicht bestritten, fuer die Zahlung von Steuern und Abgaben die Verwendung
des von der Regierung selbst ausgegebenen Papiergeldes zu fordern.

(Anmerkung von J.Z.: Dann koennte, theoretisch, eine Regierung ihr Steuerfundationsgeld so knapp halten und den
Aufschlag bei Zahlung in anderen Zahlungsmitteln so hoch bemessen, dass die Untertanen ihr bald in
Schuldknechtschaft verfallen wuerden. Wie er an vielen anderen Stellen sagte: Unter Zahlung eines angemessenen
Aufgeldes oder "Strafgroschens" muss auch die Zahlung von Steuern in anderen Zahlungsmitteln als dem
Staatspapiergeld erlaubt sein. 19/2/83.) (Vgl. unten: XIII.)

VIII.) Keine Regierung hat das Recht, bestimmte Klassen des Volkes unter irgend welchenVorwaenden, z.B. unter
dem Vorwand, dass die betr. Klassen zu unintelligent seien, von bestehenden Einrichtungen zur Aufrechnung von
Forderungen auszuschliessen, auch nicht Arbeiter oder Bauern in bezug auf Lohnforderungen und andere
Forderungen. Keine Regierung hat das Recht die Schaffung von neuen Einrichtungen der bezeichneten Art,
Abrechnungsstellen, Clearing-Haeusern u. dgl., zu verbieten oder zu beschraenken. Das Recht der Untertanen, sich
des Systems der Verrechnung zu bedienen, schliesst das Recht ein, typisierte Verrechnungsscheine auszugeben und
anzunehmen.

IX.) Keine Regierung hat das Recht, unter dem Vorwand eines monetaeren Notstandes, z.B.eines Mangels an
Zahlungsmitteln, bestimmte Klassen zu benachteiligen oder zu bevorzugen, indem sie Forderungen fuer vorlaeufig
nicht eintreibbar erklaert. Das Recht, Moratorien aus andern Gruenden zu bewilligen, soll den Regierungen nicht
bestritten werden, auch nicht das Recht eines Moratoriums fuer solche Schulden, deren Begleichung durch
Verrechnung der Glaeubiger ablehnt.

X.) Keine Regierung hat das Recht, einen eingefuehrten Sprachgebrauch abzuaendern und aus der Abaenderung
die Befugnis zu gesetzgeberischen oder administrativen Massnahmen abzuleiten. Aus Unwissenheit geschehene
Abaenderungen sind absichtlichen gleichzuachten. Keine Regierung hat z.B. das Recht, den Begriff Inflation
anders auszulegen, als:
       Vermehrung des Zwangskursgeldes ueber den Betrag hinaus, den die Wirtschaft ohne Entwertung
       aufnehmen wuerde, wenn das Papiergeld keinen Zwangskurs haette.

Keine Regierung hat das Recht, Bemuehungen um einen erhoehten Lebensstandard, um Lohnerhoehung, um
hoehere Preise auf einem freien Markt, z.B. wegen Knappheit an Vorraeten, als Inflation zu bezeichnen und
daraufhin solche Bemuehungen zu hindern. Wenn eine Regierung zwischen Teuerung und Inflation nicht
unterscheiden kann oder will, so erwachsen ihr daraus keine Rechte.

Das Recht einer Regierung, einer Teuerung durch Verbesserung des Verkehrs, Erleichterung des Kredits und
dergleichen Massnahmen entgegenzuwirken, soll ihr nicht bestritten werden.

XI.) Keine Regierung hat das Recht, einen Teil des Volkes zugunsten des andern zu besteuern oder sonst zu
benachteiligen, indem sie Zoelle erhebt, einschliesslich sogenannter Schutzzoelle, oder den Aussenhandel in
anderer Weise beschraenkt. Durch auslaendische Konkurrenz in ihrer oekonornischen Existenz bedrohte Personen
haben ein Anrecht darauf, dass alle Hindernisse, sich andern Berufszweigen zuzuwenden, beseitigt werden: soweit
Gesetzgebung, Verhalten von Personengruppen oder andere nicht als natuerlich anzusehendeUmstaende ein
Hindernis sind. Wenn einzelne Gruppen zugunsten der in ihnen Vereinigten einen numerus clausus schaffen, so
haben die dadurch Benachtelligten Anspruch auf Schutz seitens der Regierung und alle an wirtschaftlicher Freiheit
Interessierten.
Devisengesetze und ihnen gleichzuachtende Bestimmungen gelten als unzulaessige Beschraenkungen des
Aussenhandels.
                                                       -6-

XII.) Keine Regierung hat das Recht, die Bezahlung von Importwaren mit inlaendischen Zahlungsmitteln oder
Zahlungsmitteln inlaendischen Ursprungs zu verbieten.

XIII.) Keine Regierung hat das Recht, bei der Bezahlung von Abgaben auf der Entrichtung von solchen
Zahlungsmitteln zu bestehen, die der Abgabenpflichtige sich nur unter besonderen, ihm nicht zumutbaren
Schwierigkeiten beschaffen kann. Wenn eine Regierung die Entrichtung von Abgaben in dem von ihr selbst
ausgegebenen Papiergeld anordnet, so muss sie die Moeglichkeit in Betracht ziehen, dass der Abgabenpflichtige
sich solches Papiergeld nicht beschaffen kann und muss ihm daher die Moeglichkeit gewaehren, unter Entrichtung
eines angemessenen Aufschlages andere Zahlungsmittel einzuliefern.

Die Zahlung von Abgaben in Einkaufsscheinen darf nicht ausgeschlossen sein, wobei unter Einkaufsscheinen
solche commercielle Urkunden zu verstehen sind, die der Ausgeber sich verpflichtet bei Einkaeufen zum Nennwert
in seinem normalen Zahlungsverkehr wie bares Geld anzunehmen. Arbeiter, die bereit sind solche Scheine bei
Lohnzahlungen anzunehmen und Bauern, die sie beim Verkauf von Agrarprodukten annehmen wollen, sollen die
Moeglichkeit dazu erhalten.

Zahlungsgemeinschaften zur Erweiterung der Annahmemoeglichkeit und damit zur Verbesserung der Lage der
Regierung, die die Einkaufsscheine annimmt, sollen gefoerdert werden.

Da wo bisher Bauern oder Arbeitern die Bezahlung von Abgaben in Form von Naturalsteuern oder von
Fronarbeiten auferlegt war, ist ihnen die Moeglichkeit des Uebergangs auf das Einkaufscheinsystem zu
ermoeglichen. Dies gilt auch fuer solche Laender, deren Steuerbeamte wegen groeblicher Unwissenheit und
straeflicher Denkfaulheit und aus schlimmeren Gruenden behaupten werden, gegenueber Arbeitern und Bauern
kein anderes System als Naturalabgaben und Fronarbeiten anwenden zu koennen.

XIV.) Keine Regierung hat das Recht, fuer irgendwelche Transaktionen bestimmte Wertmasse vorzuschreiben.
Jeder Untertan hat das Recht, nach Belieben mit andern ausser verkehrsueblichen Zahlungsmitteln entweder den
Wert von Edelmetallen, oder den Wert anderer Waren oder den Wert einer Kombination von Waren, Indexzahlen,
den Wert von Guetern zu frueheren, bestimmten Zeitpunkten oder bisher unbekannte Wertgrundlagen in
Vertraegen zu vereinbaren. Das Recht gilt sinngemaess ouch fuer Auslaender.

Das Recht der Verwendung beliebiger Wertmassstaebe schliesst das Recht von Kaufleuten ein, in Laeden die
Gueter in Einheiten von Edelmetall zu bewerten oder in anderer, ihnen passend erscheinender Weise.

XV.) Jeder Untertan und jeder Auslaender hat das Recht, die Maerkte im Lande zu benutzen, dazu beizutragen, sie
zu verbessern und zu erweitern, neue Maerkte zu schaffen oder sich an der Schaffung zu beteiligen und aus allen
Einrichtungen der Maerkte in handelsueblicher Weise Nutzen zu ziehen, dort erhaltene Informationen zu
verwerten, selbst Informationen zu geben, Angebote zu machen und Nachfrage auszuueben. Jeder Versuch einer
Regierung, den Markt einzuschraenken, gilt als tyrannisch, so dass kein Gut, kein Zahlungsmittel, sei es
inlaendisch oder auslaendisch, vom Markt ausgeschlossen ist. Jeder am Markt Teilnehmende hat das Recht, jede
den Markt betreffende und ihm zukommende Nachricht zu veroeffentlichen.

XVI.) Keine Regierung darf sogenannte Termingeschaefte einschraenken oder sie bestimmten Volksklassen
verbieten. Auch Arbeiter und Bauern sollen das Recht haben, sich zum kuenftigen Kauf von Waren und
Dienstleistungen zu verpflichten aber auch das Recht haben, gegen eine billige Entschaedigung des andern
Kontrahenten von einem solchen Vertrag zurueckzutreten. Jedes Zahlungsmittel darf fuer solche Vertraege
vereinbart werden. In Anbetracht, dass solche Vertraege in ganz besonderem Masse geeignet sind,
Arbeitsgelegenheit und Absatz zu schaffen, muss von der Regierung verlangt werden, dass sie ihre Gerichte mit
besonderen Instruktionen versieht, derartige Vertraege im Rechtswege zu sichern oder mit Hinweisen, wo solche
Instruktionen und sachdienliche Informationen zu haben sind.

                                                                           -7-

XVIII.) Kein Gesetz gilt laenger als 25 Jahre, es sei denn, dass seine Dauer vom Gesetzgeber ausdruecklich
verlaengert wird. Die Dauer der Verlaengerung darf 10 Jahre nicht ueberschreiten. Fuer Verwaltungsvorschriften,
Anordnungen von Provinzialbehoerden, Kommunalbehoerden und andern Instanzen als der Obersten
Gesetzgebung gelten Dauern von 15 und 5 Jahren. (Grundsatz von Jefferson, dass jede Generation sich ihre
Gesetze selbst machen soll. Die Zahlen: 25, 10, etc. sollen nur Beispiele sein.)
- - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Die Fixierung der monetaeren und der oekonomischen Grundrechte begegnet vielen Schwierigkeiten, mit denen
die Vorkaempfer der politischen Grundrechte nicht zu rechnen brauchten.

Mehrere der hier ausgesprochenen Grundrechte sind in manchen Loendern zu manchen Zeiten
Selbstverstaendlichkeiten gewesen. Kein Kongress von Revolutionaeren wuerde sie proklamiert haben aus
Besorgnis sich laecherlich zu machen, abgesehen davon, dass er garnicht darauf gekommen waere.

Das Grundrecht Nr. VI z.B. war in China Jahrhunderte lang eine Selbstverstaendlichkeit. Alle groesseren Bankiers
und viele Kaufleute uebten es aus. Die von Privaten hergestellten Silberbarren hatten die Form von Schuhen. Erst
nach der Revolution von 1912 wurden privatim hergestellte Silberbarren verboten. (Vgl. ein beliebiges Werk ueber
das Geldwesen in China.)

Das Grundrecht Nr. IV galt in den USA noch um 1800 als eine Selbstverstaendlichkeit. Viele uebten es aus.
(Bullock, "Monetary History of the USA", New York 1912.)
Nach einerMitteilung van Henry Meulen ist es in England auch heute noch nicht verboten, nicht on demand
einloesbare, typisierte Verpflichtungsscheine ohne Genehmigung zu emittieren; es macht nur niemand Gebrauch
davon. Einem Bericht des belgischen Finanzministers fuer die Waehrungskonferenz von 1878 habe ich
entnommen, dass damals in Belgien die gleiche Rechtslage bestand. Viele Konsumvereine uebten das
Emissionsrecht aus. Vielleicht duerften sie es heute noch. Sogar im zaristischen Russland hatten in den baltischen
Provinzen wenigstens die Handelskammern das Recht Notgeld auszugeben.
Das Grundrecht Nr. XIII war bis zum ersten Weltkrieg in der ganzen Welt eine Selbstverstaendlichkeit; allenfalls
kam es in Zeiten von Geldklemmen for, dass die Regierungen den Export von Muenzen verboten. Auf den
Gedanken, den Export von Noten zu verbieten, waere schwerlich ein Minister verfallen.
 Aber, in den letzten 30 Jahren ist die Geldgesetzgebung der Welt ziemlich uniform geworden und entspricht im
wesentlichen der sowjetischen.
------

Proudhon macht in seiner Schrift "Immer noch die Marseilleise?" darauf aufmerksam, dass ein Aufruf zur
Wahrung monetaerer Recht (er war wohl einer der ersten, der die Existenz solcher Rechte und ihre Bedeutung
erkannte) beim gegenwaertigen Stand der Kultur nichts Begeisterndes haben koenne, wenigstens nicht fuer das
Volk. Das liegt daran, dass das Volk sich um den Produktionsprozess und um den Zirkulationsprozess nicht
bekuemmert.
                                                   -8-

Das Volk will versorgt sein und es ist bereit, denen die es versorgen, seine Arbeit zur Verfuegung zu stellen. Das
Volk will natuerlich auch moeglichst gut versorgt sein und will unter moeglichst guenstigen Bedingungen arbeiten.
Der Produktionsprozess als solcher und erst recht der Zirkulationsprozess, von dem es ja nie etwas zu sehen
bekommt, das alles interessiert das Volk nicht. Das Volk bemerkt aber einen entscheidenden Umstand nicht:

Diejenigen Klassen, die bisher Produktionsprozess und Zirkulationsprozess dirigierten, ueben these Taetigkeit
nicht mehr aus, sie haben entweder abgewirtschaftet, indem sie ihre Aufgabe, Arbeit zu geben, voellig verkannten,
oder aber sie sind in den Kriegen der letzten Jahrzehnte umgekommen, als Opfer ihrer Passivitaet gegenueber dem
Pazifismus, den zu befoerdern gleichfalls ihre Aufgabe gewesen waere. Eine neue Klasse von Buereaukraten ist
aufgekommen, hat sich der Produktion und der Zirkulation bemaechtigt, begreift aber nicht mehr davon als die
bureautechnischen Einzelheiten. Sie machen Statistiken, schaffen Kontrollen, und wenn sie auf Widerstaende
stossen, dann holen sie die Polizei., wie das der Durchschnittsmensch von jeher getan hat, wenn er auf einen
Widerstand stiess, den er nicht begriff.

In Russland ist schaetzungsweise der zehnte Teil der Bevoelkerung im KZ. Der eigentliche Sinn dieser Tatsache
wird nicht verstanden. Der Sinn ist: Die Bureaukratie stoesst trotz guten Willens (den man ihr gar nicht
abzusprechen braucht) auf unueberwindliche Schwierigkeiten, solche Konsummoeglichkeiten zu schaffen, dass
jeder sich kaufen kann, was er braucht. Zum Kaufen gehoeren Kaufmittel, gehoert also irgend eine Form von
Geld. Mit dem Geldproblem aber wird die Bureaukratie nicht fertig, ruft auch hier bei Reibungen im Mechanismus
nach der Polizei, ist ueberzeugt, dass hier Bummelei vorliegt oder Sabotage (andere Widerstaende kennt die
Bureaukratie nicht), und ein Teil der Burecukratie sperrt den andern ein. Die Eingesperrten aber brauchen nicht
mehr mit Geld versorgt zu werden. Zuletzt werden in Russland so viel Leute eingesperrt sein, dass die noch nicht
eingesperrte Bureaukratie den noch nicht eingesperrten Teil desVolkes mit Geld versorgen kann.

Die Geschichte des Orients lehrt, dass wenn das Geldsystem eines Landes unzulaenglich ist, so dass der groesste
Teil des Volkes keine typisierten Zahlungsmittel verwendet, dieser Teil in ein System von Fronarbeit hineingeraet.
Um Fronarbeiter die Lebensmittel zuzuteilenf dazu reicht die Intelligenz von Aufsehern durchschnittlicher
Qualitaet aus.
In manchen Staaten Ostindiens leben heute an 2/3 der Bevoelkerung unter einem System von Fronarbeit, und der
Radscha ist Besitzer fast des ganzen Grund und Bodens. (Typisches Beispiel, wie der Mangel an Zahlungsmitteln
zur Fronarbeit fuehrt: 1. Mos. Kap. 47,20.)

Aehnlich wie es gegen den Despotismus zuletzt kein anderes Mittel gab als Appell an das Volk unter Klarlegung
seiner Rechte, so gibt es auch heute, nachdem die frueher dirigierenden Klassen nicht mehr vorhanden sind, nur
noch ein Hilfsmittel: Appell an das Volk unter Klarlegung seiner oekonomischen und seiner monetaeren Rechte.
Dem Volke wird hier eine Sphaere eroeffnet, von deren Existenz es vorher keine Ahnung hatte, auch wird es
Jahrzehnte oder Jahrhunderte dauern, bis es begreift, was ihm hier eigentlich vorgetragen wird, und was fuer
Rechte es sich nicht nehmen lassen soll.

Mal muss ein Anfang gemacht werden; machen wir ihn, so lange es fuer uns noch eine Moeglichkeit gibt, zu
sprechen und zu schreiben!
(Von einem gaenzlich verschiedenen Standpunkt aus kommt zu aehnlichen Gedanken wie den hier angedeuteten
der Prof. Carl J. Friedrich, Concord, Massachusetts - - langjaehriger, intimer Freund Rittershausens - - in seinem
Werk "The New Belief in the Common Man" - - hoechst lesenswert.)
____________________________________________________________________________________________

(Anm. von J.Z.: Ulrich von Beckerath told me repeatedly that a world-wide monetary revolution could and perhaps
should begin in a village in an underdeveloped country. There it could take root and from there it could begin to
spread like an avalanche, before the top bureaucrats in the capital have even heard about it.
Recently I read a similar remark in a science fiction story by J. Hunter Holly: "TheGrey Aliens", page 119:

                    "We can convince the world, if we can convince one town full of people."

J.Z. 19/2/83.)
____________________________________________________________________________________________

                                                       -9-

Ein Fehler der jetzt lebenden Oekonomisten-Generation - - aber auch schon der frueheren - - ist, dass sie das
Technische der Wirtschaft nicht genuegend deutlich vom Rechtlichen trennen. Manche oder gar die meisten
verkennen sogar, dass hier zwei ganz verschiedene Sphaeren zu unterscheiden sind.
Beispiel: Freihandel. Adam Smith und seine Nachfolger legten dar, dass der Freihandeld das Beste fuer die
Volkswirtschaft und sogar fuer die Staatswirtschaft ist; sie legten aber nicht dar, dass Einschraenkungen des freien
Handels Grundrechte des Volkes und des Einzelnen verletzen, auch dann, wenn die Einschraenkungen unter dem
Beifall einer grossen Mehrheit vorgenommen werden. Erst ein paar Jahrzehnte nach Adam Smith erkannten ein
paar unbeachtet gebliebene Schriftsteller die Natur der durch Handelsbeschraenkungen verletzten Rechte und
sprachen kuehn aus, dass der Schmuggler der wahre Pionier eines Volksrechtes sei. Die ehrbare buergerliche Welt
war natuerlich entsetzt, und die Schutzzoellner schrieen: Zu so abscheulichen Gesinnungen fuehrt also die
Freihandels-Idee!! Dass die Liberalisten recht hatten ergibt sich aus der einfachen Tatsache, dass auch heute noch
im Volke durch Schmuggel die buergerliche Ehre durchaus nicht verloren geht. Von einem Freund, der das Pech
gehabt hat, beim Schmuggel erwischt zu werden, zieht man sich nicht zurueck. Wohl aber zieht man sich zurueck,
wenn man etwa hoert, er habe einen Taschendiebstahl begangen.

Als Adam Smith seine beruehmten Beispiele ueber die Arbeitsteilung gab, da uebersah er (und uebersahen alle
Oekonomisten), das hier auch ein Rechts-Moment in Betracht zu ziehen ist. Angenommen, Robinson und Freitag
teilen sich auf ihrer Insel die Arbeit, so ist der Vorteil fuer beide gross. Wenn aber sich ploetzliche etwa Freitag
weigert, die von Robinson gesammelten Erdbeeren anzunehmen und sich ausserdem weigert, die von Robinson
heimgebrachten Sachen zu kochen, dann ist aller Vorteil der Arbeitsteilung dahin. Die Arbeitsteilung hat also nur
Sinn, wenn alle Beteiligten sich so verhalten, als ob sie die Arbeit der andern bestellt haetten, sie daher auch
annehmen.

Die Bestellung ist ein voellig uebersehener volkswirtschaftlicher Faktor. Wenn alle Menschen ihren Bedarf auf ein
Jahr im voraus bestellten, und bei der Ablieferung imstande waeren, die Bestellung zu bezahlen, so gAebe es keine
Absatzkrisen. In der Praxis werde es genuegen, nur einen Bruchteil des Bedarfs zu bestellen, denn die Uebernahme
des groessten Teiles der Produktion ist beim gegenwaertigen Stande der Kultur zwangslaeufig. (Z.B. ein Minimum
von Brot, ein Minimum von Eisenbahnfahrkarten, etc.)

In meiner Schrift "Muss Arbeitsbeschaffung Geld kosten?" habe ich einiges darueber gesagt, auch erwaehnt, dass
bis jetzt anscheinend nur ein einziger Mensch die Bedeutung der Bestellung erfasst hatte: ein unbekannt
gebliebener, englischer Arbeiter, derdarueber an Robert Owen einen Brief schrieb. O. veroeffentlichte den Brief in
seiner "Crisis".

Die technische Durchfuehrung der Bestellung erfordert gewisse Rechte, an die bisher anscheinend noch keiner
gedacht hat. Allerdings koennte man auch sagen: Waere das Koalitionsrecht in vollem Umfange anerkannt, so
waeren die hier in Frage kommenden Rechte darin enthalten. Vorsichtshalber habe ich unter Nr. XVI der
Grundrechte das hier in Froge kommende Recht angedeutet.

----------                                    U.v.Beckerath,
                                                     28.12.50.     gez. Bth.
____________________________________________________________________________________________

(Anm. von J.Z.: Ich photokopierte diesen Entwurf in 1980 in Prof. Rittershaisen's Bibliothek in Koeln, kam aber
erst jetzt dazu ihn zu lesen. Ich kann nur wuenschen, ich haette ihn bei der Verfassung des
Menschenrechtsentwurfes in PEACE PLANS 4 u. 61-65 zur Hand gehabt. Betreffend Bestellung las ich erst heute
dass die Firma Merzedes ihre Wagen gewoehnlich auf Bestellungen fuer die naechsten 1-2 Jahre hin herstellt und
daher nicht wie andere Autofirmen in Absatzkrisen gefallen ist.

Wie findet man Leute die interessiert sind Menschenrechtsentwerfe wie den obigen zu studieren und weiter zu
verbessern? LMP plant mehrere solche privaten Entwerfe in einer besonderen Mikrofiche Ausgabe
zusammenzustellen. Mitarbeiter und Leser sind gewuenscht! - JZ., 19/2/83.
Zuerst hatte ich diesen Entwurf in den Briefen und Entwuerfen von Ulrich von Beckerath in PEACE PLANS 427ff
verfilmt. - J.Z., 30.12.02.)

==================================================================================



                         SOME REMARKS TO
                     PROPOSALS PUBLISHED IN 1947
                        ON CURRENCY REFORM
                    by Ulrich von Beckerath, 28.12.1950.             Translated by John Zube
                (On currency reform and economic rights, especially monetary rights and liberties,
                together with the draft of a code of such rights. J.Z.)

I.) Every author believes that his proposal would be all the better the more regulations etc. it contains - which
fortify the means of payment monopoly of the government or even expand it and do the same for the power of
governments to prescribe a standard of value valid for all purposes. No one has taken the trouble to ponder, at least
once, what would happen if, from one day to the other, all laws and regulations on monetary matters and
everything connected with them - were simply repealed while the general prescriptions of the penal code which
deal with fraud etc. would remain in force.

                                     What would happen in such an assumed case?

First of all, a market for rare metals would establish itself.

Subsequently, private manufacturers of medallions would produce medallions of 1 gram, 2 grams, etc. of gold. The
best sales would be achieved by those medallions (one could also call them typified bullion bars) which were
impressed with the following details:
diameter and thickness, in millimetres and fractions of millimetres, as exactly as is technically possible, fineness,
as accurately as possible, address of the medallion factory and of the coinage master, date of coinage, gross weight,
net weight of the fine gold, although the latter could be derived from the o/oo degree of fineness, and the gross
weight also. Medallions thus coined would be paid for with such an agio that their production would be profitable.
Then the shops would have to decide what means of payment they would accept in future and in which value
standard they would determine their prices. One would conclude: Temporarily we will continue as before.

In the meantime owners of gold, the own nationals and especially foreigners, would gather news on the market:
They would find that, for many goods, the community (let's call it simply "Berlin") is a good place for purchases, if
one were to coin gold into medallions and to buy with these medallions such means of payment as are accepted in
Berlin by those who have commodities for sale. That will also apply for the commodity "labour". Many, for
instance, will let textiles be dyed and sewn in Berlin. There will be no shortage of orders for other finishing trades.
In this way the gold medallions will also get into circulation. The shops would soon display signs:
'We accept gold medallions also. 1 gram = x paper money units, 2 grams = 2 units, etc.
Government departments would declare: We accept gold medallions in all fees and taxes at such and such rate of
exchange.

Provided the quantity of circulating paper money would not be multiplied, a rather firm value relationship between
gold and paper currency would soon result. This constancy would soon be noticed and would be the beginning of
an important reform.

At first government departments will pay their public servants with certificates bearing the following inscription:

               With this certificate (expressing e.g. the value of one gram gold)
               taxes can be paid as well as with paper money.
               This certificate is accepted like ABC units of paper money.

Very soon afterwards other certificates than these will disappear from circulation. With the previously usual paper
money one will pay taxes. But one will no longer accept this paper money but insist instead: Supply us with
gold-value-scrip, of the type the public servants are paid with. Thus, within less than 4 weeks, only the new types
of certificates would remain in circulation.

Many shops will be issuing notes of the same type and e.g. pay their employees with them and attempt to use them
for purchases in Berlin. The very large ones, like Wertheim etc., will have no difficulties in getting their notes
accepted. But the notes of a small greengrocer will be refused by the public. Only its neighbours, who can easily
use them in his shop, will accept them.

Very soon the public will also recognize the importance of numbering and dating such notes. Unnumbered and
undated certificates will soon be instantly rejected.

Moreover, the media will point out that all those issuers ought to be distrusted who do not daily publish their note
issue. This information will be effective:

All notes of issuers who fail to offer this information will soon be outright refused, too. The names of those who
publish nothing regarding their issues will also be published in the press.

Now something will become apparent that nobody expected:
The general freedom of note issue would almost be repealed in the absence of legal tender. Only very few issuers
will be successful. For instance, the City Council, the public transport enerprises and some large department stores.
For the small retailers there will only be the option to associate, to form issuing centres. Possibly only one such
community will be successful. This centre would then undertake all the functions of one of the old private note
issuing banks.

Instead of a general flood of exchange media from unknown issuers there would rather be some deflationary
pressure.

This deflationary pressure would be strengthened by the following factor:
As soon as the gold market shows that one has to pay more in a particular means of payment than before, when
buying gold, in other words, that this means of exchange has become depreciated, in terms of gold, no one who
participates in the general circulation will continue to accept it without a discount. The certificates will stream back
to the issuer. The issuer will be unable to launch new issues among a public that has become distrustful towards
him. Either for a long time or even forever he will be excluded from the circle of issuers. This would also happen
to the City Council - should it happen to issue too many notes.

Since initially the issuers would not possess the experience which some time later they will have gathered, some
will issue too many notes in the beginning. The public will ruthlessly boycott them. New shop associations will
take the place of the old ones and the new ones will respect the economic laws of the market at least as carefully as
previously they paid attention to the monetary legislation.

The deflationary pressure, even though it will only be light, will soon bring about those phenomena that are
common in deflations, especially a great expansion of the clearing system:
Public servants, for instance, may buy again, like they did 60 years ago, much "on account" and to settle with their
merchant on the 26th. of every month.        This might be done in the following way: The merchant will present
the account to the employer, who will pay him and on pay-day the public servant will get his salary less that
account.

It will be impossible to completely abolish the deflationary pressure resulting in the absence of compulsory
acceptance. But this pressure will never become unbearable and in the worst cases everyone's right to issue would
help.

Payment communities, as apparently already envisioned by Knapp (who coined this term) will be formed and
supply the circulation with means of payment. How this functions in practice, has been shown during the great
monetary crises in the U.S.A. Details can be found in a very interesting article, of great significance for monetary
theory, written by John DeWitt Warner in the New York magazine "Sound Currency", 1895 edition, repeated in
1896, and entitled : "The Currency Famine of 1893". Knapp may also have known the "clearing house certificates"
that were issued in the U.S.A. during monetary crises by payment communities formed by businessmen.

The final result of monetary freedom would be that all values would be reckoned in grams of gold and that, by
commercial custom, a certain quantity of paper certificates for which one could buy, on the gold market, one gram
of gold, would be considered as being equivalent to 1 gram of gold, provided only that this kind of paper
certificates could be spent in places that are easily accessible to the public (shops etc., which offer goods or
services (e.g. laundering) for them.

Thus the "redemption principle" would be more and more replaced by the "acceptance principle".

Finally, even bills of exchange would be issued which declared:

                                  " I will accept this bill like so and so many grams of gold
                               in all my normal payment transactions after the ........ (date)".

At last even loan certificates, industrial bonds etc. will be issued upon this principle. Their wording will no longer
run:

                  "This certificate or interest coupon will be redeemed with so and so much"

                  but:

                  "We will accept this certificate to the value of so and so much
                  in all payments normally due to us."

The gold market does function, as has been demonstrated, even when only a few kilograms of gold are changing
hands every day.

The gold market, the absence of legal tender (forced acceptance and forced currency) and unlimited right to issue
will bring about the following:

1.) At any time the circulation will be sufficiently supplied with exchange media,
     even though under a slight deflationary pressure in daily trading.

2.) Inflation will be technically impossible.

3.) Complete independence of the economy and of individuals of the supply of large quantities of gold.

------------------------------------------------------------------------------------------------------------------------------------------

Still another highly important circumstance must be pointed out:
In gold standard countries all creditors have a legal claim to gold, whether there is much gold in circulation or little
or none at all: The debtor must pay gold coins when a creditor insists upon this. This particular condition contains
all the evils which so for have been wrongly ascribed to the gold standard as such. This can be seen especially
clearly in writings like Tolstoy's "Money". Tolstoy describes there the hut-tax, imposed upon the natives in Africa
and also in many other colonies. This hut tax is to be paid in cash, while the native does not possess cash, not even
a cent. Consequently, in order to obtain cash, he must hire himself out as a labourer to white men. That is, indeed,
the primary purpose of the hut-tax. Tolstoy considers this abomination to be a characteristics of monetary
exchanges in general and does not notice that the condition of the natives would be quite different if, for instance,
they were free to pay in products that are value in money or permitted to pay in goods warrants (purchasing
certificates) with the following inscription:

                  "This certificate is accepted by me, Chief Mbu-Mbu --
                  as 10 Pounds when anyone buys products from me for at least this amount."

Germany has a special position among all the gold standard countries. Par. 242 of its Civil Code (BGB) simply
demands payment according to good faith and fairness, in accordance with commercial customs. If the debtor were
to offer clearing in the customary way then the creditor would have to be satisfied.

This clause is unknown even among the so-called economic experts although it is known to every lawyer. During
the great Banking Enquiry of 1908, called for by the Reichsbank, combining bankers and currency experts, it was
generally held that the creditor may demand gold. Someone questioned whether labourers would also be entitled to
demand gold in wage payments. Adolf Wagner, to the horror of the assembly, answered the question in the
affirmative.

The fundamental problem involved is not answered by the fact that silver coin had legal tender for up to 40 RM per
payment. The particular clause of the "Gewerbeordnung" (Act on Trades) (if I remember rightly, of 1869) and par.
242 of the Civil Code (BGB), do here somewhat contradict each other. According to the Gewerbeordnung the
labourer may demand gold. According to par. 242 BGB it would not be forbidden for the employers and employees
to agree upon a clearing system.

-------------------------------------------------------------------------------------------------------------------------------------------

                                                                   -4-

2.) Not one of the modern school, with the honourable exception of Prof. Rittershausen, has any inkling that apart
from the political rights of man and citizens there are also such rights in the monetary sphere. We have here rights
which no government, no majority nor any otherwise established and organized power may deprive people of-
without, thereby, morally authorising them to any kind of resistance.
In the following I would like to briefly sketch some of the monetary fundamental rights and rights of another kind
that are closely connected to them.
This list neither claims completeness nor final wording of these rights.

I.)       No government has the right to impose upon citizens any particular belief in economic, monetary and
similar
          theories or to prohibit the publication, discussion or propaganda for economic, monetary and similar
theories.

II.)     No government has the right to impose upon its citizens economic and monetary plans, not even when it
          believes to be able to justify such plans with theories which appear to be obvious to the government.

III.)   No government has the right to prevent a citizen from arranging his economic and monetary behaviour at his
         own discretion - provided that he does so at his own cost and risk. The circumstance that articles of faith
of
          religious and other communities or opinions of respected persons or groups which pass as scientific
insights -
          do recommend a certain behaviour, demand it, declare its enforcement to be permissible or condemn
certain
          acts, need not be decisive for any citizen.

IV.) Any citizen has the right to offer other persons typified means of                 payment, issued by himself, when he is
          prepared to accept them in his normal payments received like ready cash, provided only that the
possibility
          of using such means of payment, the issued quantity and other details, in which the public has a
justified
          interest, are sufficiently publicised.
          Neither an individual citizen nor any group nor the government may claim compulsory acceptance and far
          less legal tender (forced value, forced currency, acceptance at face value) for the means of payment
issued.
          The terms "compulsory acceptance" and "forced value" (Annahmezwang und Zwangswert) are here to be
          understood in their scientific meaning.

V.)   Every citizen has the right to refuse to accept means of payment, offered to him in accordance with No. IV,
in
        such a way that it corresponds to good faith and fairness and common usage in commercial transactions.
        This does not apply to means of payment issued by himself. To these the recognised principles of clearing
        do apply.

VI.) Every citizen has the right to produce or order typified bars of rare metals, either in form of medallions or in
       other form, provided the following details are clearly impressed upon them:
               gross weight, the net weight of the rare metal, the degree of fineness resulting from the difference,
        the
               diameter, the thickness (in other than circular bars their length, width and height), the specific
        weight,
               the kind of amalgamation, the address of the manufacturer, the date of production.
       The figures should be as accurate as the coinage technique permits.
       Everybody is free to pay with such medallions provided the payee agrees.
       The government remains at liberty to declare compulsory acceptance for its own coins that are
manufactured in
       this way.

                                                        -5-

VII.) No government has the right to prescribe for payments and other transactions the exclusive use of a particular
       means of payment or payment method. For instance, it may not pass laws authorising all creditors to
demand
       gold coins or notes.
       But the government shall not be denied the right to demand that for the payment of taxes and dues that paper
       money be used which the government has issued itself.

(Note by J.Z., 19.2.83: Theoretically, the government could then keep its state paper money so scarce, or demand
such a premium in cases of payments with other money, that it could reduce its citizens to debt slavery. However,
Beckerath declared on many other occasions that on payment of a "fair" premium or of a "penalty coin"
(Strafgroschen) the payment of taxes must also be permitted in other means of payment than state paper money, but
only at their market value. See under VIII.)

VIII.) No government is entitled to exclude certain classes of the people from existing institutions for the clearing
       of claims. It may not do so under any pretences, e.g. under the pretence that the classes concerned would not
       be intelligent enough. Workers and peasants may not be excluded, either, from clearing, for their wage
claims
       and other claims.
       No government has the right to prohibit or restrict the establishment of new institutions for clearing
(settlement
       centres, clearing houses etc.).
       The right of citizens to use the clearing system includes the right to issue and accept typified clearing
       certificates.

IX.) No government has the right to disadvantage or to favour certain classes, under the pretence of a monetary
      emergency (for example when there is a currency shortage - currency famine), by declaring that for the time
       being due payments could not be claimed.
       But the right to declare a moratorium shall not be denied to a government for other reasons, for instance a
       moratorium for such debts whose payment by means of clearing has been refused by a creditor.

X.) No government has the right to change an established terminology or to derive from this change the authority
       to undertake legal and administrative measures. Changes that occurred out of ignorance are here to be
       considered as equivalent to intentional ones.
       No government has e.g. the right to interpret the concept of inflation otherwise than:
       Multiplication of legal tender money beyond that amount which the economy would accept without
       depreciation (discount, falling exchange rate against the value standard) if the paper money would not
possess
       the legal tender characteristic. No government has the right to declare as inflationary any endeavour to
obtain
       a higher standard of living, higher wages, higher prices, on a free market (due, for instance, to a shortage of
       stocks) or to hinder such endeavours.
       If a government is unable to distinguish between dearth and inflation or unwilling to do so then it cannot
       derive any rights from this inability or unwillingness. But no government shall be denied the right to counter
a
       dearth e.g. by transport improvements, facilitation of credit and similar measures.

XI) No government has the right either to tax one section of the people to the advantage of another section or
       otherwise to disadvantage it by levying of tariffs, including the so-called protective tariffs, or by restricting
       external trade in other ways. All persons whose economic existence is threatened by foreign competition are
       entitled to insist that all hindrances be removed which prevent them from taking up other trades, professions
or
       occupations - to the extent that legislation, attitudes of certain groups and other unnatural circumstances
       constitute such hindrances. If certain groups, for the advantage of their members, establish a numerus
clausus
       (Numerical limitations, quotas, e.g.: closed shop, limited taxi licences. - J.Z.), then the thus disadvantaged
have
       the right to claim protection from the government and anyone interested in economic freedom.
       Foreign exchange control legislation and equivalent restrictions count as unauthorized restrictions of
external
       trading.

XII.) No government has the right to prohibit the payment of imports with internal means of exchange or with
       means of payment originating in its country.

XIII.) No government is authorised to insist in the payment of dues and taxes upon the delivery of such means of
       payment which the taxpayer could obtain only under as great difficulties that this would not be fair to him.
       When a government rules that the payment of dues and taxes is to be undertaken in the paper money which
it
       has issued itself, then it must take into consideration the possibility that the tax debtor cannot obtain this
paper
       money and must therefore give him the option to deliver other means of payment while insisting on no more
       than a fair surcharge.
       The payment of taxes in goods warrants (purchasing certificates) may not be excluded. These goods
warrants
       are commercial documents which the issuer has obliged himself to accept in his normal payment
transactions
       like ready cash.

       Workers prepared to accept such certificates in wage payments and farmers willing to accept them in the
sale
       of their produce shall be given the option to do so.
       Payment communities to widen the acceptance options - and to improve thereby the situation of the
       government, which accepts the goods warrants - shall be promoted.
       Wherever the payment of taxes was imposed upon peasants and labourers in form of produce and forced
       labour, they shall have the option to convert to the goods warrants system. This applies also to such
countries
       whose taxation officials, out of crude ignorance and unpardonable mental laziness or for even worse
reasons,
       do assert that towards such peasants and labourers no other system than levies in natura and forced labour
       could be applied.

XIV.) No government has the right to prescribe for any transactions particular standards of value. Every citizen has
      the right to contract with others, according to their choice, not only to use other than the usual circulating
      exchange media but also to use as standard of value the value of rare metals, or the value of other goods or
the
      value of a combination of goods, index numbers, the value of goods at previous fixed points of time or so
far
      unrecognised value standards. This right does also apply to foreigners.

        The right to use any standard of value at one's discretion (as agreed upon in contracts) includes the right of
all
        merchants to price the goods in their shops in units of rare metals or in other ways which appear suitable to
        them.

XV.) Every citizen and every foreigner has the right to use the markets of a country, to contribute to their
      improvement or enlargement, to create new markets or to participate in their establishment, to profit in the
      commercially usual way from all the institutions of all markets, to use information obtained there, to provide
      information himself, to make offers and to exert demand.

        Any attempt of any government to restrict the market is to count as tyrannical. Thus no goods, no means of
        payment, internal or foreign, is to be excluded from the market. Every participant in the market has the right
to
        publish all news concerning the market that he obtains.

(Note by J.Z.: I would exclude, from free production and trading, radioactive materials and of weapons for the use
of criminal governments and of other criminal gangs. Mass murder and mass destruction devices, systems and
preparations are always to be considered as criminal. - J.Z., 6.8.84.)

XVI.) No government may restrict futures trading or prohibit it to certain classes of the people. Workers and
      farmers shall also have the right to oblige themselves to purchase goods or services in the future but shall
also
      have the right to withdraw from such contracts under payment of a fair withdrawal premium to their
      contractors as an indemnification. Any means of exchange may be agreed upon for such contracts.
      Since such contracts are especially suitable to provide employment opportunities and sales, one has to
demand
      of the government that it provide its courts with special instructions to judicially secure such contracts or to
      point out where such instructions and relevant information can be obtained.

                                                                   -7-

XVII.) No law is to remain valid for longer than 25 years unless its validity becomes expressly prolonged by the
      legislator. A prolongation may not exceed 10 years.
      For rules and regulations of administrations, local governments, municipal authorities and other institutions
      than the supreme legislative bodies, time limits of 15 years and prolongations of 5 years apply. (Principle of
      Jefferson that each generation should make its own laws. The figures given, 20, 10, etc., shall only serve as
      examples.)

----------------------------------------------------------------------------------------------------------------------------------------

The establishment of the monetary and economic rights encounters many difficulties which the pioneers of political
rights did not have.
Several of the principles here expressed were in some countries and for some times considered as being so
self-evident that no congress of revolutionaries would have proclaimed them for fear of making themselves
ridiculous - apart from the fact that such proclamation would not have entered their minds.

The principle of No. VI was, for instance, considered to be self-evident in China for centuries. All of the larger
bankers and many of the merchants practised it. The bars of silver produced privately had the form of shoes. Only
after the revolution of 1912 was the private production of bars of silver prohibited. (Compare any of the textbooks
on the monetary system of China.)

The fundamental right No. IV was considered to be self-evident in the US until 1800. Many people practised it.
(Bullock, "Monetary History of the USA", New York, 1912.)
According to a note by Henry Meulen, in the England of today there exists still no prohibition against the issue of
typified certificates which oblige the issuer and freedom to issue them without any permission, if only they are not
convertible on demand (into gold, silver or notes of the Bank of England. - J.Z.) . But no one makes use of this
option. (Is there really insufficient private initiative and monetary knowledge left in England, assuming Meulen's
report to be true? - J.Z.)

And in a report of the Belgian Minister of Finance for the currency conference of 18781 found a hint that at this
time in Belgium the same legal situation existed. Many consumer cooperatives did then practise the right to issue.
Perhaps they are even today permitted to do so. Even under the Czarist regimes the chambers of commerce in the
Baltic provinces had the right to issue notes.

The right No. XII was taken for granted in the whole world. At most it happened, during currency famines, that the
export of coins was prohibited. Hardly any minister would have thought of prohibiting the export of notes.

Alas, during the last 30 years the monetary legislation of the world has become rather uniform and corresponds,
essentially, to that of the Soviets.
Proudhon, in his article "Still the Marseillaise?" points out that an appeal to uphold monetary rights (he was
probably one of the first who recognized the existence of these rights and their importance) can at the present state
of culture be in no way inspiring, at least not for the people in general. This is due to the fact that the people are
not concerned about the process of production and the process of circulation.

                                                        -8-

The people want to be taken care of and are prepared to put their labour at the disposal of those who take care of
them. Naturally, the people also want to be taken care of as well as possible and want to work under as favourable
conditions as possible. The production process as such and still more so the circulation process, which is never
seen by it, do not interest the people at all. The people do not notice a decisive circumstance:
Those classes, which so for directed the processes of production and circulation, do no longer practise these
functions. They are completely decayed (debilitated) by either failing to appreciate their task to provide
employment or they have been killed during the wars of the last decades, as sacrifices towards their apathy
towards pacifism, the promotion of which would also have been their task.

A new class of bureaucrats has risen, has usurped the sphere of production and circulation but does not
comprehend any more of this than technical bureaucratic details. They compile statistics, establish controls and
when the they encounter resistance then they call for the police, like average people have always done when
encountering a resistance that is incomprehensible to them.
In Russia there are now approximately 10 % of the population in concentration camps. The real meaning of this
fact is not understood. The meaning is: The bureaucracy, in spite of its good will (one need not deny that it has
good intentions) encounters unsurpassable difficulties in establishing such consumer options that each can
purchase for himself what he requires. For purchases some kinds of purchasing means are required, i.e. some form
of money. But the bureaucracy cannot cope with the monetary problem. When frictions occur in its mechanism,
here, too, it calls for the police. It is firmly convinced that it is only a case of negligence and sabotage. (The
bureaucracy does not know any other kinds of resistance.) Consequently, one part of the bureaucracy arrests the
other. Those incarcerated need no longer be provided with money. Finally as many people are imprisoned in
Russia that the not yet imprisoned bureaucrats can provided the not yet imprisoned section of the people with
money.
(Note by J.Z.: Alas, only with the money of monetary despotism, just like in the West. Without proprietary
interests and proper incentives, free choice of professions, free markets, ownership in one's products, free pricing
for goods and services, freedom of movement, free trade, and free exchange, the process of production cannot be
solved by the bureaucracy or by any other dictocrat either. Seeing the general shortage of consumer goods and the
mismanagement of scarce resources in the Soviet Union, there & primarily, the process of production is
misdirected. Without this misdirection of production they would encounter only the same difficulties of sales and
employment which the largely Soviet-type of centrally directed and controlled monetary exchanges and clearing
transactions, including the credit and capital market, provides in the West. The two are all too closely related and
production, price and various exchange controls etc. are also excessive in the West. - 6.8.84 & 31.12.02. - They
have also been quite insufficiently abolished in Eastern Europe and the rest of the former Soviet Empire. Dissenters
are still not free to opt out and do their own things for and to themselves. - J.Z., 31.12.02.)

The history of the East teaches that when the monetary system of a country is insufficient, so that most of the
people do not use typified means of exchange, then this part of the people falls into a kind of servitude.
The intelligence of supervisors of average quality is sufficient to ration out food to serfs. In some States of East
India today ca. 2/3 of the population live under a condition of servitude and the landlord owns almost all of the
land. (A typical instance of how the shortage of means of payment leads to servitude is described in 1 Moses,
chapter 47, 20.)

(Note by J.Z., 6.8.84: The "Welfare State" or the coercive transfer payments society provides only an intermediate
stage. The extreme is described by a note of Ulrich von Beckerath on 22.10.1954:

               "When people only instinctively feel the wrongness of the money monopoly but do not clearly
               realize its very nature and, thus, do not demand, e.g. the right to issue, then they arrive, inevitably,
               at the Spartan-Platonic economic system."

I would add: Or at that degree of it which corresponds to their degree of monetary ignorance.)

In the same way as previously, there was no other means against despotism than the appeal to the people, together
with a clarification of their rights, so today, after the formerly directing classes are no longer present, only one
remedy remains: An appeal to the people, explaining their economic and its monetary rights.

Thus a sphere would here be opened to the people of whose existence it had no inkling before. It will also take
decades, if not centuries, before it fully grasps what is here explained and what kinds of rights it should not let
itself be deprived of.

At some time a beginning must be made. Let us start, as long as long as we still have some options to speak up and
to write!

(From a quite different point of view than the here hinted at, Professor Carl J. Friedrich of Concord, Massachusetts,
a long-time and intimate friend of Rittershausen, comes to quite similar conclusions - in his work: The New Belief
in the Common Man", which is highly recommendable.)

(Note by J.Z. 19.2.83: Ulrich von Beckerath told me repeatedly that a world-wide monetary revolution could and
perhaps should begin an some obscure village in an underdeveloped country. There it could take root and from
there it could begin to spread like a wild-fire before the top bureaucrats in the capital would even have heard about
it. Recently, I read a similar remark in a science fiction story by J. Hunter Holly: "The Grey Aliens", page 119:

                     "We can convince the world, if we can convince one town full of people.")

(Note by J.Z., 6.8.84 & 31.12.02: Beckerath also considered the alternative of a monetary revolution, so
wide-spread in its support, in a large city, and so well publicised, that it could safely ignore the penal clauses of the
monopolistic system, when, due to extremes of unemployment or inflation, quite insufficient power would be left
to the helpless and witless politicians for the suppression of obviously successful monetary freedom experiments,
quite rapidly and efficiently undertaken upon private and cooperative initiative. For instance: The formerly
unemployed and close to bankrupt people, saved by this monetary freedom self-help experiment, could then,
together with their families and friends, be so numerous that they could topple a government intending to enforce
the old restrictions again, which brought about the problem in the first place. For some details see e.g. PEACE
PLANS No. 8, the notes to the essay on devaluations.)

The formerly unemployed and close to bankrupt people, saved by this freedom, would, together with their families
and friends, be so numerous that they could topple a government intending to impose and enforce the old
restrictions again, especially so, when this experiment is undertaken close before a general election. For some
details see: PEACE PLANS" No. 8, the notes to the essay on devaluations. )

------------------------------------------------------------------------------------------------------------------------------------------

                                                                   -9-

One mistake of today's generation of economists - but also of the previous ones - is that they do not sufficiently
separate the technical aspects of the economy from the moral aspect (from the point of view of rights). Many,
perhaps even most do overlook that one has to distinguish here between two quite different spheres.

For example take Free Trade. Adam Smith and his successors explained that Free Trade is the best system for the
economy and even for the State budget; what they did not point out is that the restrictions upon Free Trade do
infringe fundamental rights of the people and of individuals, even when these restrictions were imposed with the
consent of a great majority. Only a few decades after Adam Smith did a few authors, who remained neglected,
recognize the nature of the rights infringed upon by restrictions upon trading and courageously declared that the
smuggler is the true pioneer of a right of the people. The respected middle classes were, naturally, quite horrified
and the Protectionists shouted: The Free Trade idea leads to such abominable attitudes!! That the liberalists were
right can be seen from the simple fact that today, too, among the people, a smuggler does not lose his honour and
good name. One does not withdraw from a friend who had the bad luck of getting caught while smuggling. But one
would keep one's distance if one would hear that he had been a pocket thief.
------------------------------------------------------------------------------------------------------------------------------------------
(Note by J.Z.: Widespread condemnation of dealings in uncommon narcotic drugs has induced a new & widely
unpopular kind of smuggling: of drug smuggling. This would, naturally, not take place, either, if drugs were not
also widely and voluntarily accepted. But the animosity against gold smuggling has soon disappeared with the
removal of prohibitions against gold smuggling and one rarely sees now films in which gold smugglers are
depicted as criminals. Almost everybody tries to "smuggle" untaxed income - and does not blame his friends for
doing so.)

(Alas, presently, under high unemployment and fear of competition for jobs by immigrants, the smuggling-in of
illegal immigrants and asylum seekers has been branded and popularly accepted as the new "crime" of
"people-smuggling" and concentration camps for these people have become all too common and popular among
the voters, who were never enlightened enough to demand free migration, Free Trade, voluntary taxation, voluntary
State membership and monetary freedom. - Naturally, the government restrictions haven't made "people
smuggling" a relatively cheap and safe business like the tourist business. But who is really to blame for that? The
people smugglers or the restrictionists? - J.Z., 31.12.02.)
-------------------------------------------------------------------------------------------------------------------------------------------

When Adam Smith gave his famous examples for the division of labour, he overlooked (as well as all other
economists) that here also a question of rights is to be taken into consideration. Let us suppose that Robinson and
Friday divide the labour on their island among themselves. The advantages for both would be large. When now
suddenly Friday refuses to accept the strawberries collected by Robinson and to cook the produce brought home by
Robinson, the advantages of the division of labour between them would suddenly disappear. The division of labour
makes sense only when all participants do behave in a way as if they had ordered the labour of the others and,
consequently, would also accept its product.

The system of ordering (goods or services) is a completely overlooked economic factor. If all people ordered their
requirements for one year in advance and were also able, upon delivery, to pay, then there would never be any sales
crises (depressions). In practice, it would suffice to so order only a fraction of one's requirements, for the
consumption of the larger part of production is in the present state of culture quite inevitable. (For instance, a
minimum of bread and railway tickets will be consumed.)
In my book "Muss Arbeitsbeschaffung Geld kosten?" (Must Full Employment Cost Money? - in PEACE PLANS
10.) I have said something on this and also mentioned that until now apparently only an English workman, who has
remained quite obscure, comprehended the importance of ordering (one's requirements). He wrote a letter on this to
Robert Owen and Owen published it in his "Crisis".

The technical realisation of ordering does require certain rights, of which, apparently, no one has thought so far.
Although one could say: If freedom of association had been fully recognized then the rights which are here
involved would have been contained in it. To make certain, I have hinted at this right under No. XVI.

                                                                                          U.v.Beckerath,
                                                                                          28.12.50,       signed: Bth.
-------------------------------------------------------------------------------------------------------------------------------------------

(Note by J2., 19.2.83: I photocopied this draft in 1980, in Prof. Rittershausen's library in Cologne but did get
around to read it only now. I could only wish that I would have had it on hand when working on the human rights
draft in PEACE PLANS No. 4 & 61-63, 399-401.
Regarding the ordering system I read only today that the firm Merzedes Benz does usually produce its famous cars
upon orders for the next 1-2 years and that, thereupon, it had not suffered the same sales difficulties as the other car
manufacturers did.

How can one find people who are interested in human rights drafts like the above and willing to study them with
the intention to further improve them? LMP intends to combine several such private drafts in a special microfiche
edition. Collaborators and readers are wanted.)

(The first such collection of about private human rights drafts was microfiched in PEACE PLANS 589 & 590. It is
far from complete but has so far encountered almost no interest at all in discussing these drafts, improving them
and adding more such drafts to the collection. Are we really "homo sapiens"? - J.Z., 31.12.02.)
==================================================================================

FB Bth Money Notes 1946 150658 160159

SOME NOTES AND A LETTER BY ULRICH VON BECKERATH, 1882 - 1969,
on money, written between 1946 & 1959,
translated by John Zube, 17 Feb. 1995
==================================================================================

    Introductory Note :

"About 8 years ago an authoress challenged me to put down the essence of what I had to say in my writings, in at
most 3 typewritten pages. I did begin the job. Compare the attached concept. However, while I was still at it, we
had another talk which revealed that she was quite fundamentally opposed to economic freedom and especially to
monetary freedom. Consequently, I did not continue this job. Afterwards, I broke completely with this lady, who
has in the meantime published her own social system.     Bth. 3.9.53."

==================================================================================

"U. v. Beckerath.

Some Remarks to the Social System Explained in my Writings.
--------------------------------------------

 Varying a wording from the Bible, one could describe the foundation of the system by the following appeal:

"Strive first of all for the ability to pay of the individual and his associations, so that your WANTS can express
themselves as effective DEMAND. All other social reforms would then become easy. All other achievements,
without the ability to pay, will not help you and you will not be strong enough to preserve them in the long run."
This system is not, like that of e.g. Liefmann, merely descriptive (no attempt is made to make a value judgement on
Liefmann's system), but revolutionary and socialistic in the older sense of this word.

The system is insofar revolutionary as is declares as tyrannical all those laws, regulations and measures which
stand against it and proclaims the right to resist them. On the other hand, the system rests insofar on the principle of
tolerance as it rejects any coercion to enforce its acceptance or realisation among those who reject it.

The system is insofar socialistic as it proclaims the right of the individual and his associations to supply himself
with work and to enjoy the full proceeds of his labour. But the system is insofar directed against the authoritarian
socialism as it will entrust the measurement of that share in the value of production, which constitutes the full
proceeds of labour, to the exchange in a REALLY free market (which has never as yet existed).
Insofar the system is liberal in the older meaning of this word.

Seeing the importance which the system ascribes to associations, one could classify it under the term 'cooperative-
socialism', which was described in the older language of economists as 'collectivism'. (Totomianz and Ch. Gide
wanted to replace the term 'cooperative socialism' through 'cooperatism'. But it seems that this term was not
accepted, at least not in Germany. On cooperative socialism, as developed in the 60-ties of the 19th. century
especially by TOLAIN, compare De Laveleye, 'DieSozialen Parteien der Gegenwart' - The Social Parties of the
Present - in the German translation of 1882.)

The system is directed against the authoritarian socialism in several other ways also, since it denies the right to the
State to force upon the individual and his associations any services which the individual can provide for himself,
eventually with the aid of his voluntary associations. (Welfare, social insurance, custom duties - insofar as they are
to assure employment opportunity and a just price, etc.)"

[Note by John Zube: I am not sure whether here he expresses merely tolerance towards voluntaristic protectionists
or whether he takes such proposals for such aims serious. In all his other writings, that I remember, he stands up,
radically, for free trade, at least among volunteer associations.]

"The system also denies the right of the State to pass laws and undertake measures which, with more -
understanding, wisdom, moral sense and consciousness of his dignity, would not be passed or undertaken by the
regent or lawmaker. In this way, too, the system is liberal.

By declaring the ability to pay as the most important thing, the system considers it as an ELEMENT OF THE
SOCIAL ORDER, one of no less importance than the property relationships regarding the means of production.
None of the so far offered systems has recognised the ability to pay as an element of the social order.

The system, by declaring the CONSUMPTION POWER of the individuals as a mighty, even irresistible weapon to
establish an as just social order as possible, but at the same time recognising that the consumption power cannot be
used as a weapon without ability to pay, and, furthermore, by realising that the consumption power cannot be fully
expressed when the individual cannot freely undertake value estimates, especially upon the market, does thus
reform the older socialistic systems, which, one-sidedly, place LABOUR in the centre, did not want to use it as a
weapon but demanded its PROTECTION and wanted to entrust the valuation of labour and all valuations of every
kind to the State alone, expecting the provision of work opportunities essentially from coercive measures by the
State and wanting to establish the ability to pay of the individual through a primitive labour money, issued by the
State and through which the individual becomes completely dependent upon the State and is intended to be. The
older systems expected the establishment of socialism essentially through military measures, likewise its
maintenance.

By rejecting the establishment of values through coercion (forced values) and by recognising in the wants (needs)
of individuals, the foundation of value, the system associates itself with the 'mathematical" economic school and
declares itself as an enemy of 'prescriptionism' (dirigism, central planning and direction).

The system declares agreement with the view of ENGELS, expressed in his work 'Die Entwicklung des
Sozialismus von der Utopie zur Wissenschaft' (The development of socialism from utopianism to a science), that
the final aim of a truly popular government must be to make itself as much superfluous as possible and to educate
the people to enable them to manage their own affairs.
The greatest opposite to the system is fascism and this especially in the form of fascist socialism.

All other systems that were so far proposed contain fascist elements, from liberalism of the successors of Adam
Smith to the party programme of Erfurt.

This present system does not contain any fascist elements.
                                           Bth.
                                         26. I. 46."
==================================================================================

A later note, undated :

"U. v. Beckerath.

Some further details to the economic system detailed in my writings with some consequences from its principles.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---------------------------------------------------------------------------------

The press confirms at present a very considerable deterioration of the morals of businessmen and consumers. It
also brands part of trade as 'black marketeering', and part of the labour done as 'black labour' etc.

From my system it follows that it is not the people who are in the wrong but the government's departments and that
all the "branded" phenomena are merely an expression of the justified struggle of the people against an unhealthy
currency, which is forced upon it, in a tyrannical way, although the people themselves may not be aware of the true
nature of this struggle forced upon it."

==================================================================================

                                                                 "9.XI. 1953

Some Remarks to the Question : 'Can the System Proposed by Silvio Gesell, to Assure the Circulation of Money,
Replace the Principle of our Society: Securing the SALE of Goods by Means of the Owner of the Goods Paying
with Goods Warrants, which he Obliges himself to Accept in his Payment Transactions like Cash Money?'
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

   The goods warrants issued under the system of our society MUST return to the issuer, once even only ONE
person has accepted the goods warrants. (Here I will not deal with the fact that the owners of diamonds will
probably not find anyone who will accept their goods warrants from them, which the owner of the diamonds will
accept in diamond transactions like cash but with the fact that the KdW (Kaufhaus des Westens, a large department
store in Berlin) will find easily acceptors for its goods warrants and could certainly make even to the diamond
owner smaller amounts of KdW goods warrants available in form of a LOAN.)

    Of the certificates, issued under the system of Gesell, only one thing is certain, namely that the motive, to pass
them on, during normal times (i.e. when one would be least dependent upon the system), is greater than in case the
'sticker prescription' did not exist. But in crisis times, when everything becomes daily cheaper, the incentive to pass
it on does not exist - whenever the expected price falls amount to more than the amount of stamps to be affixed. So
much is clear a-priori. But there are other reasons, especially in crisis times, which make it advantageous to 'remain
liquid'. During crisis times Banks pay very high interest upon deposits and to wait for the offer of banks suggests
itself to every money holder. In the meantime the corresponding funds are simply hoarded.

    Furthermore: In the US, during the crises of 1921 and 1931, one could purchase in clothing stores suits for 1/3rd
or even less of the price of the previous year. Those who know the economy will foresee this and keep themselves
'liquid'. The shopkeepers, in their turn, to not pass on any cash received to those factories which are still working.
Instead, they endeavour to pay with the cash for goods at forced sales. These were then not infrequently obtainable
for 10% or less of the prices in the previous year, so that the shopkeepers did not suffer a loss through the reduction
of the prices for suits. The trustee of the forced sales did not at all pass on the sales proceeds to the PRODUCERS.
Instead, he gave it to the creditors of the bankrupts. And these had quite other uses for the money than to bring it to
the PRODUCERS, who could have kept up their production with it.
With one word: The money only serves to sell the (seemingly) over-produced goods, and not to produce new
goods. If in 1921 and 1931 the Gesell-System had existed, then this system would have chanced nothing in these
transactions.

   Generally one can say: The Gesell-System makes the hoarding of money a little bit uncomfortable, but it does
not at all transport the money there where it is most urgently needed, namely to the employers, who would like to
maintain their production at 100%.

   Only the right of employers (in our system primarily of productive cooperatives) to help themselves monetarily,
can maintan stability in the production process.

   It would realy be curious if the suppression of a RIGHT could be compensated through a TAX (for this is what
the sticker sytem amounts to).
                                           Beckerath."

==================================================================================

A hand-written note :

"When human beings only instinctively FEEL the wrongfulness of the money monopoly but, at the same time, do
not MAKE CLEAR to themselves its true nature, and thus do not demand the right to issue, then and inevitably
they arrive at the spartan - platonic economic system.
                                            Bth.
                                         28.X.54."

==================================================================================

"In the book 'Das internationale Waehrungsproblem' (The international currency problem) Hertzka does not show
himself from his best side. With the MONEY PROBLEM Hertzka has not at all dealt with sufficiently. Where lies
the money problem FOR THE SOCIAL REFORMER? It consists in answering the question:

How can Producers and Consumers be made quite independent from the following cases?:

a) Money is hoarded, as happens in every great crisis and even merely when there is fear of a crisis.
b) The Government simply satisfies its monetary requirements by the printing of money certificates.
d) Some people, who imagine that they, too, are reformers, circulate irrational theories on money and win a part of
    the population over to them.

The Answer to these problems is:

a) The producers pay with goods warrants, redeemable in the products of the producers. Should their products
consist e.g. of railway rails, then these producers BORROW goods warrants from the shops and pay with them.

b) A sufficiently large number of informed producers and consumers refuses to accept the government's
inflationary money and does not let itself be deprived by any professor or news scribbler of the correct concept of
inflation.

c) The producers and consumers tell the 'true believers': Try out your system AMONG YOURSELVES. But when
you want to force it upon others - come on - we are armed!
------

Hertzka proposes in his book: Abolition of gold coins and silver coins and their replacement through coins formed
by an amalgam of 90% silver and 10% gold weights. It is not worthwhile to prove the insufficiency of this measure
in detail. Hertzka says nothing on legal tender, goods warrants and monetary emancipation.
'EVERYTHING good is NEVER together', say the Berliners.

                                                       Bth.
                                                      3.6.58."
==================================================================================

In an unsigned and undated note Bth. made the following relevant remark:

" Political freedom is only insofar possible as the citizen IS ABLE TO PAY. When he depends for the supply of
means of payment upon others then these are simply his masters, regardless of what is written in the constitution."

==================================================================================

"An increased issue of legal tender money, in the sense that KEYNES proposed to president Roosevelt (Reiners,
'Die Sache mit der Wirtschaft', S. 92 - The matter of the economy - ) cannot abolish a crisis in case a crisis does
occur. No central bank can distribute money in such a way throughout the economy that an even flow of goods
occurs from the shops and that an even production continuously replaces the stocks in the stores. (Shops does here
include the stocks of the wholesale traders.)
On the other hand, the right of enterprises to issue, in the sense which John DeWitt WARNER described in his
essay 'The Currency Famine of 1893' (Magazine 'SOUND CURRENCY', N.Y., 1896), will end the crisis without
difficulties. The issued clearing certificates find their way, in the shortest possible time span, back to the issuing
centre, purchase goods there and then the issuing center destroys the clearing certificates so received.

A special CONFIDENCE of the economy, in the sense in which Reiners and Keynes use the word, is not required
in the system of John DeWitt Warner. Why not? The clearing certificates, in Berlin issued e.g. by Wertheim, would
only be accepted as long as one can buy something for them at Wertheim, regardless of whether its manager would
enjoy 'confidence' in the civic sense of the word.
GOODS to redeem clearing certificates exist during crisis times in abundance. What is missing during the crisis is
cash. Warner reminds that during the American crisis of 1893 American enterprises issued certificates for several
hundred million dollars. Although they were not legal tender, they were everywhere accepted, because they were
not to be redeemed in cash but in goods or services, like at railway stations, and thus their redemption was assured.
Warner's system could be further developed and this by replacing, at least during a crisis, the right of the creditors
to payment in cash through a right to "certificates" like those used in1893. The creditor could, upon acceptance of
certificates, claim a premium, and this could, at the beginning of the new system, come to 30% of the amount owed
to him.
                                             Bth.
                                            15.6.58."

==================================================================================

"Dr. Runge                                             16.1.59

In your last letter you told me of your intention to publish something about monetary theory. The opportunity for
this appears to be favourable especially now. Berlin, according to the Russian peace programme, is to become a
free city and is to gain even permission to establish its own currency. Thus a few ask themselves: What could such
a currency be like, IF the Russians realized their programme. (Note by J.Z.: He wrote, already carefully, in
expectation of the possibility of Soviet occupation, or by the East German "people's police", i.e. in a style that
would appear to be harmless to them, at least in this letter.)

Can the modern monetary theory (Roepke, Hahn and such people) serve as the foundation for a useful currency?

The most modern theoreticians of money, whose opinions have been adopted by almost all German newspapers
and journals, do all assert that full employment and stability of the currency cannot be combined with each other.
Keynes, who still rules, proposed to depreciate the currency annually by 1 - 2 %, either by increasing the issue of
legal tender paper money or by a devaluation. Others propose higher percentages. The German Bundesbank has
increased its legal tender paper money by much more than 2% p.a. I suppose you know the figures.

The last consequence of the modern theory is that the government is obliged to artificially produce unemployment
('breaking the overheated economy') when the degree of employment approaches 100%.

According to the modern theory the following are essential:
   a) a continuous deterioration of the currency (and under this these people understand exclusively the legal tender
        paper currency ),
   b) a certain minimum - number in the 'industrial reserve army'.

Would you dare to refute these opinions? And to state how a currency must be constituted so that its stability
would not be in the way of full employment, nay even in case of a war one would not have to inflate it?
--------------------------------------------------------------------------

The non-distinction between price increases that arise from the money-side (inflation through the increase of legal
tender moneyor through devaluation) and dearness that arises from the goods-side, is the great blinder, which all
the moderns put on, before they begin to write on currency. Both kinds of price increases are called 'inflation' and
now in almost all languages even a word is missing to describe inflation in the original meaning of the word.

The beginning of this confusion of terms and language was made - as far as I could confirm this - by the
Americans, and perhaps President Roosevelt was the one who first mixed up the words and the terms. I wish a
German author would undertake a thorough brainwashing in this respect and demand a return to the older use of
the language and with it to the older terms.

Once this would have happened then one could, again, make the following simple truths comprehensible:
   I. Without legal tender one cannot inflate.
  II. Without note issue monopoly one cannot deflate.

(Bismarck's Bank Act prohibited legal tender, quite expressly, in Par. 2. - Par. 1 anticipated that through law - and
aside the Reichsbank - new note issuing banks could be established. Bismarck did not want a note issue
monopoly.)
-------------------------------------------------

Full employment is permanently possible and even for longer periods, only when typified means of payment, free
of legal tender and resting upon the clearing principle, are permitted. These means of payment are by their very
nature goods warrants. They are covered through ready-for-sale goods or services (e.g., at the railway) of those
who issued the certificates. The issuer, by paying, with the certificates, wages, debts, raw materials, taxes, etc., puts
them into circulation. Once they are in circulation, they do return in the most rapid way to the issuer, thereby
realising a sale and make room for new work. Since the certificates possess neither a forced value nor a forced
acceptance (legal tender), they cannot act inflationary, not even with the worst intentions. In case of an over-issue
they could get a discount below their par value. But over-issue would be fraudulent. The paragraph against fraud in
the penal code would suffice for such cases. (The older theoreticians should have pointed this out, especially and
explicitly.)

The issue does not have to occur directly, e.g., without a mediator, through a department store or a shop
association. It can also occur through a bank (although this words should HERE be avoided. The bank would then
LOAN the certificates to those centres which would have to issue them, otherwise.
-------------------------------------------------

Labour is a GOODS (commodity), whereupon one rightly speaks of a labour market. Price increases of this
commodity cannot act inflationary although they can cause a part-dearness. When a few years ago all builder's
labourers realised their well known and very considerable wage increases, those who had to pay the new buildings
had to restrict their spending in other spheres. From this resulted, in these other spheres, corresponding price-
reductions. Cases are known to me where landlords, after receiving increased bills for house repairs, had to do
without new clothing, a planned trip and an x-mas celebration in the style extent that was previously possible.
Analogous cases, not only among landlords, occurred very frequently. If, however, the wage increase was
financed by the note printing press, THEN a price increase resulted in almost all spheres.
                                                     U. v. Beckerath"

=================================================================

For several years now I had these short contributions set aside to be translated. While replying to one of my few
correspondents with interest in monetary freedom, I thought that it would be about time to finally provide at least a
rough translation and to make a few copies for inclusion in such letters. Panarchy means, in the monetary sphere,
monetary freedom or experimental freedom for new or old monetary experiments, all only among volunteers, i.e.
voluntary acceptors, leaving out all those who remain free to refuse any new means or method of payment or any
new or old alternative value standard.

I have still a few boxes of Beckerath notes and correspondence to ready for microfiching. Since this job, too, would
come to many thousands of pages and would require much transcription and copying and hand-correcting labours, I
had postponed it again and again. If you know of an excellent and affordable scanning system, one that I could
connect to my laptop, please let me know.
                                                                       PIOT, John Zube, 17. 2. 96.




Translation of part of a letter of Ulrich von Beckerath, 29.9.1957, to ???,
included in the collection of his papers on page 3794. J.Zube, 4.1.1986

(ECONOMIC AND HUMAN RIGHTS ASPECTS IGNORED BY MODERN AUTHORS)
--------------------------------------------------------------------------------------------------------------

You say "...that the modern authors have dealt with the problems of value, price, wages, interest, rent, money,
capital, currency, markets, etc., together with a l l the questions and problems which belong to them."
Now - I believe to have found, indeed, that they have n o t dealt with a l l the most important and
subsidiary questions and problems. Instead, and essentially, they have been going in circles.

Every single of these problems will be seen in a quite different light when the following possibilities are taken into
consideration:

I.)   The note issue monopoly of the central bank is repealed.

II.) The men in power in the world return to all human beings the freedom, which existed before 1914, to adopt in
      their contracts a value standard of their own choice, whether it be gold, silver, an index, music records or
      canaries.

III.) Patronage (i.e. the splitting up of most enterprises into employers and employees) is replaced. The employees
        constitute themselves into an association and purchase the enterprises.

IV.) Provision is made that every human being may join any productive association as a member, as far as this is
       technically possible. (Hertzka has up to now best elaborated this ideas and hold that this ought to apply
       even if working hours would have to be reduced to half an hour a day.)

V.) The whole population is sworn in upon human rights - to the extent that is is voluntarily prepared to undertake
     such an oath.

VI.) For the protection of human rights an international militia is established. A L L its members are sworn in
      upon human rights.

VII.) Freedom to issue (notes etc.), free choice of value standards, and other freedoms from a money and means of
         payment monopoly, are counted as human and civil rights.

VIII. The principle, recognized already in almost all constitutions, that the authority of civil and military superiors
         to give commands, finds its limit in the rights of human beings and citizens, will be brought to the
         attention of all people at short intervals, so that it will never be forgotten and will be more and more
firmly
         impressed.
The crisis of 1932 would have disappeared in less than 4 weeks if THIS would have happened.
....
Do you know of ONE author among the modern ones who included the above hinted at possibilities in his
calculations? Do not ALL of them consider the absolute power of the legislator as a truism? Is not for all of them
the money monopoly of the State, the exclusive value standard, the authority to introduce central planning etc. a
foregone conclusion? Do you know of even o n e exception?....

                                  Signed: Bth. 29.9.57.

--------------------------------------------------------------------------------
Since then a few authors have questioned some of the premises challenged here - but is there one other author yet
who has challenged a l l of them and made as sensible suggestions on all these points as Ulrich von Beckerath
did? Please tell me his name, his address and give me a list of his writings. For such people I will always make
room in my PEACE PLANS series. J.Zube, 4.1.86.
FB Tolerance




                                                THE CASE FOR

   ECONOMIC AND POLITICAL T O L E R A N C E
                           AS THE ONLY SOUND POLICY
                     BY Ulrich von Beckerath, 1882 - 1968 and John Zube, 1933 - ?
---------------------------------------------------------------------------------------------------------------------------
This article was previously offset printed as a booklet in very small and badly reproduced typeface and also filmed
in this series. I do consider it of sufficient importance to bother retyping and reproducing it here in a more legible
form, at least on microfiche. - J.Z., 9/82. It was scanned & only slightly amended on 29.12.02.
It is freely available for reproduction in any medium, without copyrights restrictions. - J.Z., 30.12.02.
-------------------------------------------------------------------------------------------------------------------------------------------

                                 (1) ULRICH VON BECKERATH'S ARGUMENTS

            (Well, at least some of them, in his preoccupation with all aspects of this idea over many years.
                 Extracted from 3 letters written by Ulrich von Beckerath, 1956 & 1957. - J.Z. 9/82)


Considering the obvious fact that among men, especially those living today, only few have the ability to persuade
others or to become persuaded, one should give up attempts at persuasion (at least if one wants to realize anything)
and rather direct one's efforts to those already converted. One should, instead, propose to realize one's aims within
the circle of like-minded people at the expense and risk of these followers only. Let me give you a concrete
example:

You will remember the monetary crisis from about October 1929 up to the first year of the Nazi's rule. Some
enterprises attempted to help themselves like a small coal mine some-where in Bavaria did ... The mine paid its
miners in goods warrants inscribed somewhat like this:

       '10 Reichsmarks. This warrant will be accepted like cash when somebody offers it in payment for coal.'

For the surrounding district this was an act of salvation. Only few people had money. Thus very many could not
afford to buy coal. There was almost a struggle to get these certificates. All shopkeepers accepted them gladly and
could easily pass them on. The food retailers bought coal for themselves and for the rest, e.g. gloves, toys for their
children etc.
The warrants returned very fast to the mine. Everywhere the home fires were burning again and tradesmen could
heat up their workshops.
So far, so good. But, first of all, the Reichsbank intervened. It demanded that the procedure be stopped, firstly,
because it would be inflationary and, secondly, because the issue of notes would be a monopoly of the Reichsbank,
according to the Reichsbank Act. All large newspapers known to me agreed with the Reichsbank.
The unions pointed out that according to labour legislation all wages are to be paid in cash and that the employer
should be punished.
The professional journals (banking and economic magazines) blew into the same horn.
Among the academics only Rittershausen had the courage to defend the issue of such emergency money.

Was this merely a battle of opinions? No, it was something very different. If only opinions had battled each other
then:

A) The mine owners and his miners would have made their case as follows:
Nobody is forced to accept the warrants, not even the miners.
Please explain how an inflation could occur through these warrants.
Inflation is the multiplication of legal tender money above the limit at which it would be accepted at par and
without any compulsion on a free market. Such a multiplication results normally in price increases - expressed in
legal tender money. Without legal tender one cannot inflate.

B) The professors, with the honourable exception of Rittershausen, the ministers, journalists, union leaders,
bankers and other experts, would have argued: Now, if indeed you want to make yourself unhappy, we do not want
to hinder you. We will warn everybody against accepting your notes which are covered neither by gold nor foreign
exchange but merely by coal. Although we cannot quote a single example for any inflation caused by any money
without legal tender, we are, nevertheless, experts. Respect our professional knowledge, even if it is expressed only
in a professional opinion!

Upon this, group A would have replied: Alright. Let practical experience decide. You may warn us as much as you
like.

But this did not happen. A monopoly was defended by its owner. The Reichsbank did not stop to argue its point but
mobilised the power of the State and simply referred to the banking legislation. Voluntas stat ratione. (Whim
instead of reason.)

Where in any particular case freedom can be established and even should be granted, where even economic and
political tolerance can be exercised and even should be practised, must be determined by a science yet to be
established. To establish this new branch of science is necessary today because no party listens any longer to
reasoned arguments nor possesses authority enough for people to believe that its plans have a reasonable
foundation. …

This has been my theme for 30 years. My insistence has always been no more than to demand tolerance where it
can and should be practised. I have always endeavoured to show why tolerance would be right. If you peruse the
vast literature you will find that not one of the authors studied by you has thought of tolerance. All published only
proposals for new coercive measures and expected the government to find a chance to realize their new kind of
coercion. - (Extract from a letter.)

'What is truth? How does one recognize it?' is an old question. What a pity that you have not yet read Kant on this
(K.d.R.V., Kehrbach, pp. 81 ff.). It would cost you no more than 5 minutes' reading. But, the question of truth
should not be brought up when it is primarily a question of rights!

Instance : A municipality in Baden did not participate in the lost elections. This was a tacit - and yet very loud -
protest against the project to build a large nuclear reactor in the neighbourhood. Written protests had been ignored.
This community had declared, in essence:
1. During the next war the first nuclear bomb will, naturally, be dropped on this reactor. Our town and the city of
Karlstadt etc. will be pulverised. The government has no right to expose our community to such a danger, really, to
the certainty of its destruction!

2. The government has no right to leave unexamined the question whether there are no better, more healthy,
cheaper and more reliable means to produce energy than, of all things, through nuclear installations, which are
extremely unhealthy (radioactive garbage), uneconomical (only in the far future, perhaps, economical) and also
very exposed to accidents. Moreover, they can easily be transformed into nuclear bomb factories.

Concerning the social question:

When a group of men assert that their type of organization, e.g. the open cooperative system of Hertzka, would
remove the old antagonism between 'work' and 'capital', doesn't this group then have the right to realize this form of
organization at its own expense and risk, especially if it respects the right of all others to apply among themselves
even those forms of organization which it considers to be the most foolish, tyrannical and unproductive ones, like
monopolistic private or state enterprises?

Submit at your discretion to the worst economic tyrants, order your affairs according to the spleens of the greatest
fools but do not prevent us from realising among ourselves a quite different system!
Go on believing that your system of uncritical subordination is as suitable, profitable and stable as you like
(although experience shows at short intervals the contrary) but do not force us to participate in them. Do not bother
about us. We refuse to accept your protection. Order your followers about!

This is the sane situation as existed formerly, when the question of the true religion induced people to cut each
other's throats. This question was answered as soon as one recognized the principle of religious tolerance as the
right one.
When under the rule of this principle e.g. a Muslim and a Buddhist argued whose religion would be preferable,
then this was something completely different from e.g. the Muslim declaring:
Muhammad has ordered us to spread Islam with the sword. Thus you have to submit. If you pay the tax on
non-believers, then you may live, as Mohammed allowed. The Buddhist would then declare: When the Chinese
Emperor repeatedly tried to wipe out the followers of such a murderous religion, he was right. I will volunteer for
the Chinese army!

To demand economic and political tolerance is something completely different from propagating the true economic
or political system. The task is merely to explain to people that in such and such a way tolerance is possible.

Should the other then declare: 'You dogs and vermin! You have no right even to be heard! - then, indeed and again,
another situation arises. This situation must be mastered by men who say:

   'Life is not the highest of all goods. The greatest evil is to live under tyrants, especially under irrational ones.'

Consider the social problem from this point of view and 99% of the modern economic and political literature will
appear to you as so much scrap.

The modern 'system' under which less than half a dozen people may command all others:

               'Pulverise yourselves! Here are the technical means for this. Don't complain or argue!'

is the logical expression of the absence of the kind of tolerance I am talking about here.

Under the rule of tolerance, first of all, a referendum would be organized, whether a nuclear installation may be
built and operated in the district. How the people will vote, once they understand what they are deciding about, is
hardly subject to doubt.
If, afterwards, any group of nuclear fanatics attempted to act contrary to the referendum and established secret
nuclear installations and operated them, then aren't these people to be dealt with like poisoners of wells? The
outlawry of such people would only be natural after such a referendum - and would be practised even if the
legislators should omit making it legal …
The advocates of currencies like that of Silvio Gesell and the numerous promoters of 'labor notes' should, naturally,
have every chance to realize their ideals - but not though the use of coercion against the advocates of other systems.

Economics, the science and the practice, will, in future, have an aim very different from all the aims it has ever had
before, namely, to think of ways and means how the diverse systems can coexist side by side - although each
follower holds all other systems to be false and even attempts to prove this.

But today no system can any longer claim authority for itself. Not even a complete agreement on the different
systems is possible - as the systems have confused the language of economics. What is reasonable? What is
logical? What is freedom? Everybody has a different answer. Only on tolerance one should agree.

If we do not succeed with this then our 'culture' will have the same fate as that of the old and vanished ones whose
ruins are now dug up in deserts and jungles.



                        (2)   TOLERANCE                   AND         CAPITALISM
Capitalism by itself, fully and consistently applied, as free enterprise, free trade, free competition, a free market,
extending to anarcho-capitalism or market anarchism and including monetary freedom, is the most tolerant, moral,
productive and efficient economic and political system. But, seeing that it is objectively the best system, most of its
advocates wrongly want to realize it in the usual intolerant way: for believers and dissenters alike. (Sometimes,
they are even intolerant of some of the aspects of capitalism.)

As a result, the efforts of capitalists are vehemently and hatefully resisted, due to prejudices, errors, stupidity and
also contrary convictions. Not only that, they are stopped in their tracks or even driven back or defeated by the
majority: numerous minorities believing in all kinds of other systems. These others are, naturally, at least as
intolerant as most philosophical capitalists still are in their practical proposals (like: introduction of capitalism
through the establishment of limited governments for all alike, whether they want this form of government or not.).

One cannot blame the collectivists very much for being intolerant. Intolerance is consistent with many of their
social theories. But one can blame the capitalists for being intolerant: for only tolerance is consistent with their
individualistic system.

The capitalists, at least, ought to realize that the fastest way to introduce free market capitalism consists in
introducing it in a tolerant and competitive way only - without threatening or destroying the way of life chosen by
others.

The most practical way is to rely mainly on the attractiveness of realisations among volunteers only.
Instance:
Free trade enclaves and duty free shops, internationally federated. Among these the capitalistic principles could be
fully and consistently applied. Here they would find no internal resistance. Moreover, through such practical
demonstrations, the capitalistic principles and institutions could spread in the shortest possible time until they are
finally accepted, voluntarily, by most other people also. There is no other more rightful, more efficient or faster
way to gain adherents for the gospel of capitalism.

Just apply the principle of religious tolerance and the religion of reason will cane out the winner. At least you will
have it, almost as soon as you want to, for yourselves.

Be tolerant or perish! Nuclear weapons will see to that. - J.Z.

               (3) T O L E R A N C E          AND          THEWORKERS                      PARTY
                                            By a dissenting member: J. Z.

The W. P. has, in common with other parties, a basic intolerance: Its platform is to be realised for all, even
dissenters. The possibility for them to opt out or not to be subjected to the W.P.'s laws in the first place, is not
spelled out - or is at most only weakly hinted at or implied in some passages. But such an important truth must be
got across as clearly and unmistakably as possible - if we want to avoid the usual party struggle.
We could gain the good will even of our opponents, their tolerance for all our tolerant experiments, if we would
also and clearly fight for their freedom to experiment among themselves. Instead of a further struggle, we could
and should offer our opponents the fulfilment or continuation of their ideals - for themselves and at their expense
and risk. They cannot rightly ask for more.

When, at the same time, tolerantly realising our ideals for ourselves, we could hope that the others would soon see
the light - our successes and solutions - and join us. In other words:

Tolerant people could gain the support even of their enemies - if only they would leave their enemies alone in their
pursuit of their happiness according to their ideals and utopias. We do not have to love our enemies but we do have
to tolerate them. Then and only then could we expect the same in return.

Our intolerant approach makes us enemies everywhere whilst a tolerant approach could gain us friends
everywhere. Threatening to dominate the followers of other parties - even with the objectively best system - only
gets their hackles up, induces them to resist us. Offer them tolerance and they would also tend to let us go ahead,
minding our own business while they pursue theirs - including their socialistic enterprises - at their expense and
risk.

Tolerance is not just a liberal value, of value only to liberals, but an opportunity and a right and duty for all people
who want to see their ideals realized, peacefully, non-coercively, in the fastest possible and in a completely just
way - by their believers, for their benefit and, exclusively, at their own risk and expense. Nobody could benefit
more from a generalised tolerance of this type than the members of the W.P. could.

If we continue to be intolerant, we will encounter only intolerance, hatred, resistance and prosecution and will not
even gain a fair hearing anywhere - with most people.

But once we became tolerant towards tolerant actions even of our enemies - and were clear and outspoken about
this, then we would have the best chance to be tolerated ourselves in all our projects. What more could we ask for?

Do you doubt the practicability and profitability of freedom? Then you should not be in this party!

Do you doubt that even the smallest business enterprise or market agency based on individual freedom would have
the chance for unlimited and voluntary growth when there is also freedom of expression and information? Do you
doubt the persuasive power of facts, demonstrations, experiments, experience, observation? Then you should not
be a member, either!

Do not expect new laws or regulations - or their repeal - to recover your liberty. Just ask for a 'fair go' - for
exemptions and examples on the basis of the principle of freedom to experiment.

Your experiments are the only ones likely to be successful in the long run and to any large degree. So what are you
afraid of? Are you afraid to appear to be too tolerant? Tolerance for your enemies' experiments would only help
you to reveal the flaws in their theories and thus would make converts for yourself.

Discard the collectivist notion that all must undertake the same steps at the same time, that progress is to come only
through general law repeal - after a change of public opinion. This way only numerous disappointments will be
found. And it is one contrary to your general belief in individualism, free contracts and private initiative and
experimentation.

Masses don't ever act progressively. At most they follow suit. Only individuals and minorities initiate progressive
steps and it would be foolish for them to wait until they have converted the majority. Give them the chance, no
matter under what flag they make their attempts. Or are you afraid that you might lose in free competition with the
collectivists?

In short, claim your equal right to opt out or secede from the socialist and welfarist mess and do your own thing at
your own risk and expense. You have nothing to lose but your subsidies, taxes and restrictions.
 (4) T H E       KIND           OF       TOLERANCE                    EVEN           M I S E S,      HAZLIT
                                               T

                          AND         RAND           WERE             SHORT           OF
Almost everyone subscribes to some general principle of rights, liberty and tolerance but only few bother or dare to
apply it where it is most of all required: in the sphere of social, economic and political activities.

Here, most rights, liberties and tolerant relationships are ignored or outlawed and it is simply assumed that
intolerance must be the rule, that all people in one territory must be subjected to one government, one law, one
system, one set of institutions, that there exists only collective sovereignty and no individual sovereignty and that
no individual or minority autonomy is permissible apart from some comparatively trivial private affairs.

To this single error are due almost all wars and civil wars and now the threat of nuclear war. (See Peace Plans
16-17 & 61-65.) (These books are now online, accessible through either www.exterritorial.info or
www.panarchism.info )

The limits of tolerance in the sphere of social, political and economic actions have not yet been fully explored and
very few people have even looked at this question. This in spite of the fact that in this century, more than ever
before, people have slaughtered each other on the altars of diverse ideologies.

We have still to make the giant step from freedom of thought, belief, expression and information to freedom of
action and experimentation, to individual and minority autonomy, so that tolerance becomes the rule at least as
much in this second sphere as it is now in the first.

How could this extended principle be best worded, to be least misunderstood? I do not have the final answer to that
question. How could any short formula embrace not only freedom of communication but also freedom of action for
all? The old and conventional formulas were apparently expressed in too general terms to be thus interpreted
although, logically, they cover the same ground. In formulating the new principle of tolerance one would have to
account for the fact that actions, quite obviously, tend to clash much more than mere words do.

The degree of intolerance in existence makes the need for the introduction of rational and consistent tolerance into
this mess all the more acute - and the need for a good definition as the first step. We certainly need a workable
formula for peaceful coexistence at a time when socialists are unwilling to tolerate capitalism and capitalists are
unwilling to tolerate socialism - in what each considers to be his exclusive hunting domain, when followers of the
opposed ideologies are armed against each other even with mass extermination devices.

Many approaches have so far been tried and proposed to prevent mutual repression and slaughter, the early ones
usually resting exclusively on domination and subordination:

Submit to my empire, my religion, or else!
Submit to the majority - or else!
Apply my scientific theories - or else!

A long and vain attempt was made to introduce love, even of one's enemy, as a ruling principle - and how many
have been slaughtered under the banners of this religion?

Many attempted to unify and pacify through what they perceived to be justice. They all had to fail due to the vast
discrepancy of views on just what is just. Justice towards one's enemy was too often interpreted as an authority to
exterminate him or to demand his unconditional surrender. The few scholars who had some clear ideas on justice
never succeeded in educating the majority sufficiently. So, the slaughter and repression went on - under the banners
of 'uniform and national justice', 'equal liberty and laws for all'. There were always dissenters, ready to fight or
terrorise in return.

In other words, all attempts to submit all others to one system, one set of principles, one way of life, failed, are
failures and are likely to fail in the future.
Even the least aggressive system, if proposed for all, will not be found acceptable by all or most because so many
people have been conditioned by the bad systems, which they and their ancestors have been living under for
uncounted generations. Thus even the best system is not uniformly suitable for men as they are now. The obvious
conclusion is - and yet it is one hard to draw for most people:

Look only for the best system - or what you think to be the best system - and freedom to apply it to yourself,
leaving all others free to live and suffer or benefit under their own systems, no matter how much these differ from
yours.

Recognition of national independence recognises just one facet of this tolerance but by no means all or most.
Nations themselves (as usually defined and organized) are extremely intolerant towards 'their' minorities and
individuals and rest on the intolerant basis of exclusive territorial rule.

Religious freedom sets another and better precedent - but it took hundreds of years to obtain widespread
recognition for the principle of religious tolerance. Now we do not have hundreds of years left to obtain full
recognition for political and economic tolerance.

Long before this prolonged struggle would be over, we would wipe ourselves out in a nuclear holocaust. We have
at best some years left.

The old formulas for social relationships have prepared the ground but they are still too much misunderstood:

Freedom, to be general, individual rights - to result in a just society, must be consistently granted to all, i.e., no
one's freedom of action may go so far as to infringe the equal freedom and rights of others to act for themselves
and all others must be tolerated in full possession of and the exercise or non-use of their rights and freedoms, as a
matter for individual choice.

Only this would create a general condition of freedom. natural law rule and tolerance. Only this approach would
maximise freedom (as each sees it), rights (as each perceives them) and toleration (as all would have to recognise).

The principle of tolerance is the only one all would have to agree upon - or to suffer the consequences, starting
with forceful resistance.
This means intolerance towards all attempts at centralised and monopolised regulation and domination, totalitarian
regimes, dictatorships, uniform territorial legislation, States, unions, armies and public services -as organised and
driven today, by territorialist notions or fixed ideas. In other words:
                                        Intolerance towards all intolerant actions.

Maximum tolerance for tolerant actions means not only tolerance for actions within one's private sphere, as for
some business and work activities, for artistic and creative activities, for fashions, sexual preferences, food, drug
and drink intakes, for tools, methods, organisational choices, hobbies ands ports activities, religious cults, scientific
and technological experiments by volunteers.

All these may be considered as already or largely achieved or as relatively unimportant - but, moreover, for all
other activities also, for all actions which can be practised tolerantly, especially all such actions in the social,
economic and political sphere. (Which are now mostly pre-empted by territorial governments.)

Live according to your own system, plan, errors, beliefs, philosophy, religion, reasoning, your own organisation.
methods, tools, media, banking, credit, finance and insurance system, experts, protection agencies, utilities, laws,
rules and regulations, all for yourself and your followers or fellow-members - but do not force them on anyone
else.

Towards others use only your example combined with persuasion and the invitation to join you. Organise with
like-minded people in your municipality, your state or continent. or the world, as you please, but leave all
dissenters alone, as long as they do only their own things for or to themselves. Claim only the right to secede from
them and grant them the right to secede from you.
Give up all attempts at territorial and uniform rule - extending beyond your private real estate property and
concentrate on using, to your best advantage, and defending, what is yours.
You can defend yourself and what is yours not only alone but together with the other autonomous and exterritorial
communities of volunteers, all united by the principle of mutual tolerance, only against all intolerant people and
groups, against all aggressors, the common enemies of all rational individuals and groups.

In practice you will need at least:

a) an ideal wording for this kind of tolerance. Any suggestions?
b) A code of basic rights - which you would have to respect in others (who do claim them) even if you do not want
    to claim them for yourself.
c) Recognition for individual secession and exterritorial and autonomous organizations of volunteers (individual
    sovereignty and minority autonomy).
d) A militia of volunteers for the protection of human rights.
e) Arbitration courts to settle the remaining relatively few cases of clashes between personal law systems.
f) A new free market system of adult education in order to speed up the process of enlightenment sufficiently.
g) A revolutionary and warfare programme based on the new concept of tolerance and assuring its victories against
    all kinds of totalitarians with a minimum of bloodshed, particularly by fully respecting the rights even of
    enemies, most of all those of the conscripted, taxed and oppressed victims of enemy regimes.

The further and particular institutions required, e.g. free banks, free trade associations, leagues of nuclear
disarmers, would all be natural offshoots of the above.

                         (5) A D V A N T A G E S             OF         TOLERANCE

                                         "A wise man will find his enemies
                                         more useful than a fool his friends."

1. It is the only moral approach, one fully respecting individual rights and liberties.

2. It makes peaceful coexistence possible - preventing wars and revolutions - especially nuclear war, and even
     party struggles.

3. Through successful experiments it would soon do away with compulsory taxation, inflation, unemployment and
    other poverty-promoting policies. Most people understand and appreciate alternatives only once they are
placed
    before their eyes.

4. It would minimise the power of States and bureaucracies, eliminate most corrupting offices and leave largely
     only a system of division of labour among experts.

5. It would largely eliminate the political process - wherever it is not continued on a completely voluntary basis and
     for these volunteers only.

6. It would promote the social sciences as it did the natural sciences and technology - through experiments.

7. It would speed up progress, education and enlightenment, mainly by example, avoiding most of the difficulties
     of persuasion and agitation. One man's mistake is a lesson for others. It is visibly put before him, in all its
     effects. Moreover, it does not become imposed on all others. (Few are inclined to study experiments
undertaken
     far away, in other nations and other language areas, and under territorial rule these are also not as diverse,
radical
     and instructive and segregated as they could and should be.)
     Quite a few men would become wise only through their own experiences:

                       "One of the best ways to convince someone he's got a wrong idea
                       is to mousetrap him into trying to make it work."
                       Robert Silverberg in "Precedent", ASTOUNDING SF, 4/58.
      It will teach by example. Albert Schweitzer, when someone asked him what was the greatest power and force
in
     the whole world? replied:

                          "Reason, persuasion and example, but the greatest by far is example."

     Another aspect is:

               "How will you succeed in doing it on a large scale if you do not begin on a small scale?"
                            F. Doubla Nieuwenhuis, "The Pyramid of Tyranny", 1909.

8. It would make progressive individuals and minorities independent of majority views and thus not hinder them in
     any way.

9. It would largely disarm terrorists and fanatics. Instead of being motivated to fight their opponents (these having
     disappeared except in discussions and debates), they would have their hands full coping with all the practical
     difficulties in realising their systems and ideals among themselves.

10. Such groups could not even grow dangerously large and powerful any more since already their first small
     experiments would soon fail due to flaws in their theories, thus cutting off the influx of further believers.
     No longer would anybody be able to fob-off his critics and followers with long-term promises unbacked by
     experience. They would want to see some immediate results and successes - in order to become or remain
     convinced. These groups would also have to do without the propaganda asset of having prosecuted martyrs.

11. It would largely do away with compromises and corresponding in-fighting, excuses. white-washing and
       scape-goatism.

12. It would largely replace the struggle of conflicting interests by a harmony of interests.

13. It would do away with most propaganda lies. They could not persist in the presence of non-working models of
       new societies and of successful alternatives to them, sometimes right next door.

14. It would minimize the effects of mistakes which are now maximised through monopolistic and territorial
       experimentation by goverments, usually wronging and harming whole people and "their" countries.

15. It fits human nature and the diversity of views and characters represented among men.

16. It would establish and prove even to dictocrats the usefulness and morality of freedom. Freedom will win this
       competition in the not so far future. The free systems would find the widest possible acceptance. Tolerance
       itself is already a great step towards freedom. "The stars shine only in the dark" - " all the darkness in the
world
       cannot extinguish the light of a single candle" - and "a single candle can light a million others".

17. It would make use of individual consumer choice and the free pricing system to settle controversial social
       questions. The inefficient systems would price themselves out of the market. The disservices would no
longer
       be widely or involuntarily bought.

18. This could almost create a paradise on Earth - according to the diverse happiness standards existing - and
      nobody would be prosecuted or thrown out by any authoritarian - because he ate his apple.
      At most we would see excommunications of dissenters, non-conformists and Protestants. But mostly they
      would not even wait for excommunication but simply secede.

                    (6) A        SHORT              A-Z         FOR          TOLERANCE
ACTION, FREEDOM FOR TOLERANT ACTIONS :
Freedom of expression and information is not enough. Tolerant actions must also be tolerated. In case of
differences of opinion everyone has the right to realize his own opinions at his own expense and risk.
Tolerance does not mean that you should stop criticising others but just that you should not interfere when they do
their own thing - to or for themselves. Tolerate even ignorance, foolishness and stupidity - as a matter of individual
choice, whenever they are expressed in actions not infringing the rights of others.

ANARCHO-LBERTARIANISM:
"This is the beauty of anarcho-libertarianism: utter and complete toleration for any and all styles of life so long as
they are voluntary and non-aggressive in nature. Only under such a system can the capitalist and socialist mentality
coexist peacefully, without infringing the rights of other individuals and communities." - J. Tuccille, Radical
Liber-tarianism, p. 60.

AUTONOMY:
You want autonomy? Grant it to others! Never insist upon unconditional surrender of your enemies. Always offer
them autonomy over their own affairs.

BELIEFS:
Tolerate the practice of other beliefs among their believers.

CAPITALISM:
Capitalism, at least in the way it is usually advocated, is as intolerant as socialism and for this only the
philosophers of capitalism are to blame. There should only be a tolerant advocacy, practice and ideal of capitalism,
in order to gain its victory in the speediest way possible and with complete justice.

CHOICE:
"We have the right to choose the society most acceptable to us." - J. S. Mill, On Liberty, Great Books, 304.

"People ought to be free to choose - individually or collectively - whatever economic, social, moral etc., system
they want." - Jerry Millett. Texas, ANALOG, June 61.

When people are free to refuse or to buy capitalism, free enterprise and free market services then capitalism will be
sold in the fastest possible way.

CIVILISATION:
Respect for others, tolerance of their ideas and foibles. compassion in their misfortunes, are the marks of the truly
civilised human being. - IPA Facts, 12/68

COERCION:
Especially in economics nobody is authorised to impose any coercive system upon his fellow citizens. He may not
even impose a free market system.

COLLECTIVIST OBJECTIONS:
Two standard collectivist objections are:
1. The old must be destroyed before the new can be constructed and
2. Only large-scale experiments can succeed.
In reality, the old can remain for its adherents while the new can be constructed and used by its followers.
Large-scale experiments guarantee large-scale failures and nothing is likely to succeed on a large scale which fails
already on a small scale.

COMPULSION:
"… the only purpose for which power can be rightfully exercised over any member of a civilised community,
against his will, is to prevent harm to others. His own good, either physical or moral, is not sufficient warrant. He
cannot rightfully be compelled to do or forbear because it will be better for him to do so, because it will make him
happier, because in the opinion of others to do so would be wise, or even right. These are good reasons for
remonstrating with him, or reasoning with him, or persuading him, or entreating him, but not for compelling him,
or visiting him with any evil in case he does otherwise." - J. S. Mill, On Liberty, G.B. 271.

CONSCIENCE:
Toleration means freedom to follow the dictates of one's own conscience, reason and belief - as long as one can do
so at the own risk and expense.

"You contend that I am wrong to practise Catholicism; and I contend that you are wrong to practise Lutheranism.
Let us leave it to God to judge. Why should I strike at you, or why should you strike at me? If it is not good that
one of us should strike at the other, how can it be good that we should delegate to a third party, who controls the
public police force, the authority to strike at one of us in order to please the other? You contend that I am wrong to
teach my son science and philosophy; I believe you are wrong to teach your's Greek and Latin. Let us both follow
the dictates of our conscience. Let us allow the law of responsibility to operate for our families. It will punish the
one who is wrong. Let us not call in human law; it could well punish the one who is not wrong." - Bastiat, quoted
in Roche III's biography, Bastiat, 193.

CRIME:
Every action that is tolerant is not a crime but every action that is intolerant is!

DECENTRALISATION:
"The wearer only knows where the shoe pinches."

Only under individual secessionism and exterritorial autonomy for volunteers could decentralisation reach its
optimum.



DEFINITION ATTEMPTS:
1. The only tolerance in the political sphere which is sensible and justified is one which respects the right to
organise or participate in all kinds of social, political and economic experiments undertaken by volunteers, at their
expense and risk, without let or hindrance by the majority or any of the minorities.
All experiments which are forced upon a disagreeing majority or minority or which occur at the expense or risk of
others than the voluntary members, offend against this principle of tolerance and should, therefore, not be tolerated.

2. "No government has the right to force individuals not to do something which they may desire to do at their own
risk, provided that they, in turn, do not force their will on others or put others at risk." - From a W.P. discussion
paper on drugs, 1975.

3. Tolerance means fully free competition for all, even those who offer disservices for sale, as long as they do so
without deceiving their customers any more than they are deceived themselves.

4. Tolerance means self-ownership and the abolition of monopolies, especially the economic and political ones.

5. Don't desire for others what you desire for yourself. Let them follow their own aspirations. Tolerance demands
that you not only tolerate what you love or could not care less about - but also what you hate - as long as it is
tolerantly practised.

DEMONSTRATING TRUTH:
Don't argue the truth - demonstrate it, and allow others to demonstrate even their errors, at their expense and risk.

DISSENTERS:
No group has the right to impose upon its fellow citizens rules not approved by them, when through disregard of
these rules only the lives, the health, the property, the earnings and the employment opportunities of those are
affected who disagree. - U. v. Beckerath, 1953

DIVERSITY:
"Let them do their countless things ... permit ... me to do my thing." - L. E. Read, THE FREEMAN, 3/74.

"It takes all kinds to make a world." - Common proverb.

DON'T:
"While my mother believes in the Golden Rule, she also advocates a second maxim, which she terms her Iron
Rule: 'Don't do for others what they wouldn't take the trouble to do for themselves.' " - Mrs. D. Fulton, Reader's
Digest, 1/65.

DO YOUR OWN THING:
Do your own thing and let others do theirs - that's all that tolerance demands.

ENEMIES:
One can be intolerant in a thousand different ways but tolerant only by fully recognising the natural rights even of
one's enemies, by sticking to one's contracts and letting one's enemies stick to theirs.

One does not have to love one's enemy but one ought to tolerate his tolerant actions.

"The best way to defeat an enemy is to make a friend of him."- Friendship starts by respecting the autonomy of
others.

Become tolerant, otherwise "we become what we fight", said Roy Campbell, in a poem, 1965.

EXPERIENCE:
Everyone is authorised to gain experience at his own expense and risk, even when the methods tried by him are
considered as unsuitable by others who consider themselves as experts.

EXPERIMENTS:
"The most important one of all - freedom to try." - John C. Sparks.
"Give it a try!"- "Have a stab at anything!" - "Fair go!" - are supposedly typical Australian sentiments.

"Men must be free to try their ideas in a competitive and voluntary market." - John C. Sparks.

Don't experiment with other people than yourself and volunteers.

"The people, organizations and individuals, have the right to undertake at the own expense and risk social
experiments - even when based on errors and when making mistakes. The freedom to correct their errors and to
learn from the own experiences and then to undertake, at the own expense and risk, new experiments, belongs to
the human rights." - free after U. von Beckerath.

Nobody may be forced to adapt his life-style to any temporarily prevailing theory. Thus the State may not interfere
with any law in any theoretical scientific dispute and any scientific experiment in the economic, social, juridical
and political sphere, as long as they take place exclusively at the expense and risk of the experimenters.

"Groups and associations intending to realize at their own expense and risk any particular economic system among
themselves, may not be hindered to do so, even when those who believe to be experts do not agree with the
system." - U. von Beckerath, 1953.

Everyone has the right to undertake social, economic and political experiments at his expense and risk - as long as
he does not infringe the principle of tolerance.

Grant experimental freedom even to socialists and others of your enemies.

Governments should not be free to experiment with individuals but individuals should be free to experiment with
themselves and like-minded individuals - under their own exterritorial governments, or free societies, which are
truly based on individual consent.

EVIL:
To tolerate an evil is not an evil if it is a self-chosen evil. A self-chosen evil is not even an evil as it has great
educational value for people unwilling or unable to pay heed to rational warnings.

FOOLISHNESS:
"We have no patience with the mawkish philanthropy which would ward-off the punishment of stupidity. The
ultimate result of shielding men from the effects of folly, is to fill the world with fools." - Herbert Spencer, Essays,
State-tamperings with Money and Banks."

"Everybody considers himself an expert and almost all others consider him a fool. Thus only one way out remains:
Each tries his system with his followers - at the own expense and risk - and also concedes to all others the right to
take measures at their own expense and risk, regardless of whether they appear to him to be completely foolish. U.
v. Beckerath, 1953.

Be a fool at your own expense and risk.

FORCE:
Tolerance could also be defined as non-initiation of force or fraud. The State may not force any services upon the
citizens which they are willing and able to supply themselves or which they do not want for themselves.

FREEDOM:
"Freedom is the only thing you cannot have without also granting it to others."

"The only freedom which deserves the name is that of pursuing our own good in our own way." - J. S. Mill

"There is a natural freedom to promote one's well-being without infringing the rights of others."

Freedom consists in the authority to do everything that does not infringe the natural and equal rights of others.

"We should agree upon a convention conceding to every group the right to practice the principles of its ideal social
order within the circle of like-minded people..." - Karl Walker.

Tolerance means granting freedom even to your enemies - freedom to do their own thing and no chance to meddle
with your affairs.

Nobody should be forced into freedom or given it against his will. Freedom embraces the choice not to be free, to
voluntarily accept a condition of slavery - as long as one likes it. Freedom should also be a matter of individual
choice - one should be free to decline its benefits and responsibilities.

You can have whatever ism you want to have - but I want to be free.

Don't ever force freedom on anyone. Leave people in self-chosen slavery as long as they prefer it. Otherwise, you
might get a slave rising against you, by slaves who want a new master and will see to it that you get one also and
again. If you are not tolerant then you are not for freedom!

FREE MARKET:
To "sell" the free market in the most efficient way, you should not force it upon anybody but allow it instead, for
everyone who already appreciates it and who is willing to pay free prices. Free market salesmanship sells the free
market best.

HAPPINESS:
"I should, of course, like to see society organized so that the individual would be free to carry on his 'pursuit of
happiness' as he sees fit and in accordance with his own capacities. That is because I assume that the individual is
endowed at birth with the right to do so. I cannot deny that right to my fellow man without implying that I do not
have that right for myself, and that I will not admit." - Frank Chodorov, Out of Step, 105.

"Various routes to happiness lie open and he is free to choose what seems to him the best for the purpose." -
Etienne Gilson, "The Spirit of Medieval Philosophy".

HUMAN RIGHTS:
Respect for human rights is the greatest degree of tolerance which is morally still justified and it implies
anti-totalitarianism or condemnation of communist, Nazi and other dictatorships. There is no justification for
tolerance towards the intolerant.
INDEPENDENCE:
"When I signed the Declaration of Independence I had in view not only our independence from England but the
toleration of all sects." - Charles Carroll, letter to G. W. Parke Custis.

INDIVIDUALISM:
Tolerance is inherently individualistic, intolerance is inherently collectivistic.

"No matter what anybody else thinks and acts like - think and act for yourself!" - D.Z.,1975. - and let them do the
same!

Be yourself and allow others to be themselves: "In spite of that I am the Illuminated, if you disagree with me -
follow your own convictions, not mine!" - Buddha

INEQUALITY:
If men would recognize the imperative need of others to be themselves, to be different, most of the ills of the world
would vanish. - Free after IPA Facts, 12/68.

INTERFERENCE:
"...the sole end for which mankind are warranted, individually and collectively, in interfering with the liberty of
action of any of their number, is self-protection..." - Mill, On Liberty, G.B. 271.

INTOLERANCE:
The worst examples of intolerance are wars and revolutions.
LIBERATION:
"Let us hang no one, and set everybody free." - F. Bastiat, Economic Sophisms, 241.

LICENSING:
All compulsory licensing is intolerant.

LIFE:
Tolerant actions promote life, intolerant actions promote death.

LIMITS OF TOLERANCE:
Nobody is wholly tolerant. The more you believe in tolerance, the less you can tolerate the intolerant." - R.Q. in
Readers' Digest, 7/66.

Be tolerant to all tolerant people and intolerant to all intolerant people.

Be intolerant of intolerant actions and opinions furthering them, but tolerant of tolerant actions and the views upon
which they are based.

Tolerate only tolerant people and offer intolerant people tolerance only on condition that they become tolerant also.

Others have the right to protect their liberty against you but they have no right to interfere with yours. Tolerance
does not demand any more. Don't tolerate intolerance!

Don't tolerate ABC mass murder devices - the worst instances of intolerance!

LIVE AND LET LIVE:
Live and let live - is the essence of tolerance.

MEASURES:
Everybody has the right to take measures at the own cost and risk which others consider as impractical - even those
who are regarded as experts.

MEDDLING:
Tolerance means a mutual agreement to refrain from meddling.
MISTAKES:
Everyone has the right to make mistakes, to try out his errors in practice - at his own expense and risk.

MUSIC: LET EACH DANCE TO HIS OWN:
"If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step
to the music he hears, however measured or far away." - Thoreau

MYOB: MIND YOUR OWN BUSINESS:
A condition where everyone minded only his own business would be a condition of maximum tolerance.

NONCONFORMISM:
Nonconformism is a virtue, not a vice, in most instances. Thus it should not be generally outlawed.

NONINTERFERENCE:
Tolerant people "make a religion of not interfering with each other." - J. R. Wilson, The Side of the Angels,
Collins, London, 1968, p. 86.

OBJECTIONS AGAINST TOLERANCE:
I for one am intolerant even of mere objections against tolerance. People who would argue even against tolerance
should be stopped with a big stick! Or at least ignored and ostracised and never be given any offices and powers
with one's consent.

OWN AFFAIRS: You be the judge - on all your own affairs!
PARTIES:
Let each party struggle only for the benefit of its own members and voters - and exclusively at their expense and
risk. This would end all party struggles and replace them by peaceful and non-coercive competition.

PERSONAL LAW:
"Make your own law for yourself, no matter what anybody else thinks about it." - D. Z., 1975.

Exterritorial personal laws would beat the existing territorial and uniform laws anytime - in free competition.

PIONEERS:
We have to be pioneers. We have to establish a new world in this chaotic, barbaric wilderness, called our
civilisation and culture - but without chopping it down or setting fire to it.

PLANNING, PRIVATE AND VOLUNTARISTIC:
Whosoever attempts with his followers to realize an economic plan that he considers to be good, may not be
forced, not even by the State, to submit to any other plan nor may he force anyone to submit to his.

POLICY:
Tolerance is the best and the only sensible policy. Every policy coercively regulating the affairs of others amounts
to a declaration of war.

POWER:
Exercising tolerance is the opposite of exercising power.

"With power comes the exercise of intolerance" - said Mises in "Socialism", p. 189.

While tolerance means: no power over the affairs of others, it also means: full power over the own affairs.

PROPERTY:
Private property (which may also be used as voluntarily pooled, collectivised or socialised property) forms the best
basis for a tolerant and peaceful coexistence between the members of diverse ideological groups. To each his own,
no more, no less!

PROPHETS:
Toleration for the followers of all prophets, be they Marx and Lenin or Mises and Rand.

RECONCILIATION:
"It is much better to reconcile an enemy than to conquer him."

Tolerance optimises the chances for reconciliation.

RELIGION:
"If governments had ever tried to dominate physical and mathematical opinions of the public as much as political
and religious views, then we would have wars for and against differential calculus as we had for the Holy Trinity of
God."- Franz von Bader.

RESISTANCE:
When the followers of any system attempt to coerce others to apply this system, then this is tyranny and it
authorises resistance.

REVOLUTION:
The revolution that establishes tolerance is the only worthwhile and probably last revolution.

RIGHT:
Right is the restriction of arbitrary actions of each so that they can agree with the arbitrary actions of others
according to a general law of freedom. - Free after Kant, Populaere Schriften, 63.


RISK:
If tolerance of diversity involves an admitted element of risk, intolerance involves a certainty of destruction.

SOCIALISM:
If you don't like it for yourself - at least tolerate it for others - including all types of socialism.

Allow a safety valve: permit the socialists to become educated through the failures of their own free experiments.

You have no chance or serious intention or hope of shooting or converting all socialists. So, start by tolerating them
or seceding from them.

I plead for a declaration of rightful 'war aims' towards the socialists. Don't demand unconditional surrender of
them. Leave them an honourable way out, a chance to practise their religion. Offer them autonomy on a voluntary
basis, at their expense and risk, under their own exterritorial and personal laws.

First step towards turning State socialists into tolerant people is for free enterprise advocates and capitalists to
become tolerant themselves, to mind their own business, not asking for hand-outs any longer, for privileges or
limited government laws, becoming instead, fully tolerant towards tolerant actions of socialists.

Socialists will appreciate economic freedom only when they can freely buy or refuse to buy its services, goods and
institutions, over the counter, so to speak, and individually. Groups declining all the progressive steps proposed by
us should not be obstructed when among themselves they organise production and exchange according to their
customary way of thinking and acting. But they have, naturally, to cease exploiting us or forcing upon us methods
of production and exchange which they consider right. The more this becomes a published and practised policy, the
more the animosity against us must decline.

SOCIAL REFORM EXPERIMENTS:
Everyone is entitled to associate with like-minded people in order to try out social reform proposals within the
group and at its expense and risk and to invite everyone to join, no matter whether the 'experts' consider their
principles to be right or wrong. I predict that the capitalistic experiments will be the most successful ones.

SOLIDARITY:
A solidarity of all tolerant people against all intolerant people is required, regardless of ideology, comparable to the
solidarity of resistance fighters against the Nazis.
SPONTANEITY:
"In each person's own concerns his individual spontaneity is entitled to free exercise." - J. S. Mill, On Liberty, G.B.
303.

SPREAD OF TOLERANCE:
"There are only few friends of tolerance left in the West" said Mises in Omnipotent Government, p. 11, and
perhaps none in the East. (Mises himself was not a friend of the degree of tolerance here advocated.)

STRENGTH:
Only tolerance can make you strong enough for whatever you want to do - for it disarms your enemies.

STUPIDITY:
Everybody has the right to be stupid - at his own expense and risk.

SYSTEMS:
Everyone has the right to search for an economic system he considers to be right and, when he has found it, to try
it out in practice, together with his followers.

Everyone may, together with his adherents, form a group practising at the own expense and risk whatever system
he and they like for themselves. More cannot be demanded by any group which does not want to be accused of
attempting to set up an economic tyranny. Economists may say: Your system of typified clearing-house cheques
will result in chaos and we do not have to put up with this. Answer: No, indeed, you do not have to put up with it.
You have the right to be fools at your own expense and to consider the solution as chaotic. This is your right and it
shall not be infringed. But it would go too far to legally stop us from applying among ourselves a system which we
found suitable. Be tolerant or the devil may take you by milligrams. Starve with your system - if you like. We will
not hinder you. It will be a task of the future political science to describe the spheres in which one cannot be
tolerant. - Free after U. von Beckerath.

THEORIES:
Nobody has the right to force his own economic and other theories upon his fellow citizens, as guidelines for their
actions.

The State may not put into force, by legislation, any scientific theory and force the opponents of this theory, and
the people in general, to act as if this theory were right.

TOTALITARIANISM AND NUCLEAR WAR:
Unless you learn to become tolerant - prepare yourself to become a slave or to die!
(Compare especially PEACE PLANS 16-17 and 61-65, now online: www.exterritorial.info
www.panarchism.info )

VIOLENCE:
                                              "Everything would be alright
                                              if only we could wipe out
                                              all those who think that
                                              everything would be alright
                                              if only we could wipe out..." - Hassan

VOLUNTARISM:
"There is a sphere of action in which society, as distinguished from the individual, has, if any, only an indirect
interest; comprehending all that portion of a person's life and conduct which affects only himself, or if it also
affects others, only with their free, voluntary and undeceived consent and participation." - Mill, On Liberty, G.B.
272.

WAR:
Be tolerant or perish!
The alternative to the maximisation of tolerance is the maximisation of murder and destruction through mutual
mass extermination. What helps it if man wins the whole world - but cannot stand himself, cannot be tolerant?
Then he will lose it again and perish. He has prepared the means for his destruction.

Tolerance is the shortest connection between war and peace, poverty and wealth, oppression and liberty. Take your
pick. There is also a unique kind of tolerant warfare and revolutionary action, yet to be consistently and
comprehensively practised. It outmodes all current military theories and preparations. (See Peace Plans 16-17 &
61-65.)

WAY:
Have it your way. If you think this is the way then this is the way - but only for you.
____________________________________________________________________________________________

Much more could and should be said on this subject. Say it, at least to me. I am willing to listen or read, not
necessarily to reply.
Practically all these terms and ideas are supplemented and developed under about 500 points in my ABC
AGAINST NUCLEAR WAR, 260 pp. - J. Zube, 35 Oxley St., Berrima 2577.
____________________________________________________________________________________________


(7) T H E     MAIN         TERMS           OF      THE        VOCABULARY                     OF      TOLER
ANCE

Abdication                                                  Denationalisation
Action, freedom of                                          Desertion
Allegiance, voluntary -                                     Development, free
Alternative institutions                                    Discrimination, voluntary
Amnesty                                                     Disobedience
Anarchism                                                   Disassociation, individual
Anarcho-capitalism                                          Diversity
Anarcho-libertarianism                                      Divorce
Apartheid, voluntary                                        Duties, self-chosen
Appeals, public                                             Economic freedom
Arbitration, voluntary                                      Emigration, internal & external
Autarchy, in LeFevre's meaning                              Equal rights
Anti-monopolism Anti-totalitarianism, consistent            Example
Autonomy                                                    Experience, right to gain it at the own expense
Avoidance.                                                  Experimentation, voluntaristic
Bill of Rights                                              Exterritorial autonomy
Boycotts, voluntary                                         Fees
Capitalism, laissez faire type                              Force, defensive
Choice, individual                                          Free competition
Coexistence, peacefully competing exterritorial             Freedom, individual
governments of volunteers                                   Freedom of action
Competition                                                 Freedom of contract
Conscience, freedom of                                      Free enterprise
Conscientious objection                                     Free market
Consent, individual                                         Free Trade
Consumer choice                                             Friendship
Consumer sovereignty                                        Golden Rule
Cooperation, voluntary                                      Growth, natural
Crimes without victims                                      Harmonies, natural, economic -
Decentralisation, voluntary                                 Home rule
Decision-making, individualized                             Human rights
Defection                                                   Ignoring the State
Defence, individualized                                     Independence, individual
Demonstrations, practical                                   Individualism
Individual responsibility                                Property
Individual sovereignty                                   Pursuit of happiness
Inequality                                               Reconciliation
Insurance, voluntary, private & competitive              Reprivatization
Integration, voluntary                                   Revolution, individual, libertarian, voluntaristic
Justice                                                  Rights, individual, human, natural
Laissez faire, laissez passer                            Right to err and make mistakes
Law repeal                                               Right to own property
Leadership, non-coercive                                 Right to pursue happiness
Liberalism, classical                                    Right to associate in exterritorial and autonomous
Liberation                                               communities of volunteers
Libertarianism                                           Right to dissociate oneself
Liberty, individual                                      Right to secede or opt out
Life                                                     Right to resist
Love                                                     Rightful war aims
Minority autonomy                                        Secessionism, individual
Monetary freedom                                         Segregation, voluntary
Mind your own business                                   Self-defence
Natural law                                              Self-determination
Non-aggression                                           Self-discipline
Non-conformism                                           Self-government
Non-initiation of force                                  Self-help
Non-interference                                         Selfishness, rational
Non-intervention                                         Self-reliance
Non-violence                                             Self-rule
Opting out                                               Separate development, voluntary
Outlawry of tyrants & their helpers                      Sovereignty, individual
Panarchism                                               Spontaneity
Parallel institutions                                    Subscriptions, voluntary
Peaceful coexistence                                     Sympathy
Personal law                                             Voluntarism
Pioneering                                               Voluntaryism
Pluralism                                                Voluntary Taxation
Power over self                                          Voting an one's own affairs
Privacy                                                  Warfare, revolutionary, libertarian
Private enterprise                                       Welfare institutions, voluntaristic.
Private initiative                                       PLEASE, ADD TO THIS LIST!
Progress


(8) T H E     MAIN         TERMS              OF   THE    VOCABULAR                   OF INTOLER
ANCE
Aggression                                               Censorship
Alien Acts                                               Centralisation
Allegiance, enforced                                     Civil War
Anarchism, terrorist type                                Coercion, initiated
Animosity                                                Collective responsibility
Annexation                                               Collectivism, coercive
Anti-communism, with the bomb                            Command system
Antisemitism                                             Communism, coercive
Apartheid, enforced                                      Compulsion
Atrocities                                               Conformism, enforced
Authoritarianism                                         Compromises, compulsory
Blackmail                                                Conquests
Borders                                                  Conscription
Bureaucracy                                              Conservatism, conventional
Constitutionalism, conventional                       Rule over others
Control, coercive                                     Segregation, enforced
Crime with victims                                    Selfishness, short-sighted & irrational
Cruelty                                               Socialism, statist, coercive type
Death                                                 Standards, imposed
Democracy, imposed                                    Statism
Despotism                                             Suppression
Development, forced                                   Subordination, compulsory
Dictatorships                                         Taxation, compulsory
Dictocracy                                            Territorial nation States & sovereignty
Discipline, imposed                                   Terrorism
Discrimination, compulsory                            Theft, including that camouflaged as 'fiscal policy'
Domination                                            Totalitarianism
Duties, imposed                                       Torture
Economic warfare                                      Tyranny
Employer-employee relationship                        Unconditional surrender demand
Enemy, conventional concept                           Uniformity, enforced
Envy                                                  Unity, enforced
Etatism                                               Violence, initiated
Exclusiveness, coercive                               Voting on other people's affairs
Extortion, as practised e.g. towards all tax payers   War, collectivist type
Fanaticism                                            War aims, unjust
Force, initiation of force                            Weapons monopoly
Foreign policy, conventional                          Welfare Statism, imposed. etc.
Frontiers, imposed and forcefully preserved ones
Growth, forced                                        PLEASE ADD TO THIS LIST!
Hate                                                  Test yourself whether you would pass a test for
Hierarchical systems, coercive                        tolerance!
Immigration restrictions
Immorality
Imperialism, coercive
Indiscriminate warfare
Injustice
Insurance, compulsory and regulated
Integration, enforced
Interference
Intervention
Invasion
Law & order, imposed, uniform
Laws, territorial
Legislation, uniform and territorial
Leadership, coercive
Liberalism, modern
Liberation wars, conventional
Licensing, compulsory
Obedience, unlimited - Oppression
Party politics
Planning, coercive, centralised, monopolised
Politics, conventional
Power over others
Protectionism, coercive or fraudulent
Quotas
Questionnaires, compulsory
Racism, coercive
Registration, compulsory
Restrictions, imposed
Revolutions, conventional
Robbery, even in its democratic forms
____________________________________________________________________________________________


PEACE                        PLANS
Tolerance is the guiding idea of my PEACE PLANS publication which in 15 issues between 1964 and 1971
published 250 peace plans - and has since published hundreds of full-length peace-through-freedom books on
microfiche. (By now there are 1779 issues of PEACE PLANS!)

In this form Peace Plans continues and will continue.

Peace Plans No. 16-18 appeared as a combined issue in book-form, however primitively printed and bound, 260
pp., as a large paperback (half foolscap size), containing about 175.000 words, as an ABC or handbook against
nuclear war.

It contains not just a single panacea but about 500 suggestions summing up past and future peace plans. If you
tolerate nuclear devices without even protesting about them, then this book is not for you. You have already written
off yourself and man.

If you value your life and freedom and realize the threat and how powerless you presently are to counter it directly,
if you want a future for yourself and your children, then learn what to do about it, how to gain sufficient freedom of
action to become effective in your resistance. Its appendix No. 15 alone: "PANARCHY", is worth acquiring this
book.

I assert that PEACE PLANS 16-17 together with the previously written but only later translated PEACE PLANS
61-63, both now online, form the only consistent, workable and comprehensive anti-nuclear bomb and anti-war
programme around. No other peace or libertarian book offers all the essential steps described in it.
To be or not to be is now the question. Our time is running out. Almost everything in our society (East and West)
makes for nuclear war. Only individual liberty in all spheres (or voluntarist collectivism, which is just one
application of it) could drive out war and only freedom works peacefully, as these two books demonstrate. The
penalty for not gaining individual liberty soon, is death by holocaust. Do your share to prevent it - or coddle your
death-wish.

I would really not mind if you remained wilfully ignorant of this solution - if only you wouldn't, by your inactivity,
or wrongful activity, take me and my family and friends with you. Unfortunately, the characteristic of nuclear
'weapons' is that they cannot discriminate. If you don't choose liberty you vote, effectively, for nuclear war and you
will get it.

I hold that libertarians have no excuse for not learning the consistent application of their principles in the
international sphere (which consists in much more and better alternatives than the international equivalent to
homestead-retreatism) and other peace-lovers have no excuse, either, for not studying the only comprehensive
peace programme offered.

For peace through the maximisation of freedom in our time (including the freedom not to be free, according to
individual choice ), or: PIOT
(Panarchy In Our time or: To each the government or non-governmental society of his or her dreams!),

John Zube, PEACE PLANS, ON PANARCHY, SLOGANS FOR LIBERTY, MONETARY FREEDOM SERIES,
etc.:

35 Oxley St., Berrima, NSW, Australia 2577, tel. (02) 48 771436, NO Fax! jzube@acenet.com.au
www.acenet.com.au/~jzube www.butterbach.net/lmp/
www.exterritorial.info www.panarchism.info www.panarchy.org
www.butterbach.net/project.htm
www.butterbach.net/freebank.htm

Translation by John Zube of part of a letter by
ULRICH VON BECKERATH, Berlin, 1.5.1959,
to Dr. A. Schinnagel, Berlin.

(On Defence, War Aims, Minority Autonomy, Panarchism, Social Reforms, Monetary Freedom, Productive
Cooperatives, Militias, Nuclear Weapons, International Law and Human Rights.)

Dear Dr. Schinnagel,

....................................

Mr. A..... distributed copies of his articles on topics, as it seemed to me, of a VERY general kind. Upon my
question, what positive proposals Mr. A. would have to make, he replied in a rather restrained way and asked me
what proposals I would have to make. UPON THIS I could answer.

Considering that the Soviets quite obviously prepare for a war and that the West has not prepared a
PROGRAMME for THIS case, one suitable to enlighten the people of the East on the true intentions of the West, I
propose
that an association be formed in Berlin whose programme contains, among others, the following points :

a.) The people of Berlin wish friendship with the Russian people and with all other people who are now dominated
by the Soviet system.

b.) The Berliners desire that the people of the East regain their independence after a successful defensive war
against the Soviets.
Those peoples, who live dispersed over large territories and who, consequently, form almost everywhere only
minorities, shall be given minority rights which in international law would give them the same status as the peoples
organized in States.
As long as the details of these rights have not been elaborated, those principles of minority rights shall apply which
were formerly in force in the Baltic States, e.g. in Estonia.

c) All groupings among the people that are not united by national memberships but by common religious, scientific
or economic views or opinions on social rights, shall be given, to the limits of what is technically possible, the
same status as the national groups among the people.
The International Court of Law in The Hague shall be so developed and authorised that it becomes responsible for
decisions on disputes of national and other groups. This international court shall also be given a police force for the
execution of its decisions.

d.) No sanctions shall be imposed upon any group.
No reparations shall be demanded from any group.
War criminals shall be punished in accordance with the now recognised principles. No war criminals shall be able
to merely refer, to his advantage, to the orders of his superior.

e.) Where a governmental and collectivist economy is introduced, these collectives shall be transformed into a
productive cooperative. The transformation will be undertaken upon a resolution by the members and eventually by
subdivisions if no agreement can be achieved on the type of the new organization.

f.) In order to prevent the development of a cooperative capitalism, every productive cooperative, whose
production is economically of considerable importance, shall be under an obligation to accept new members up to
the limits of what is technically possible. (Open cooperatives on the model supplied in Theodor Hertzka's works.)

g.) In order to prevent the establishment of a capitalism based on money-power, all laws, regulations etc. will be
repealed which restrict the authority of cooperatives, firms and enterprises of other types and of associations to
issue typified goods warrants without the legal tender characteristic, that means, to offer and use them as means of
payment, in case money, in the narrower sense of the world, is not or not sufficiently available to maintain jobs
opportunities or to improve them.
Whether or not money is sufficiently available is to be conscientiously decided by the issuing institution itself.
As before, it shall be considered a fraud if the issuer were to issue too may goods warrants.
An excessive issue will be presupposed if the bearer of the goods warrants cannot utilise them as easily towards the
issuer as if he offered him money.
Institutions issuing goods warrants shall have the right, without any restrictions, to associate into payment
communities.

h.) To maintain their liberties and to protect them against attempts to force them to participate in wars, the citizens
shall have the right to form militias which elect their own officers.
But any attempts to acquire any armaments which cannot be used without killing non-participants or those standing
under the protection of human rights or of international law, shall be considered as attempts to organise a war of
aggression.
As armaments of this kind are to be considered nuclear destructive devices, heavy artillery and war planes,
preparations for chemical or bacteriological warfare and similar means.
To resist attempts to organise an aggressive war is the duty of every human being and citizen.

i.) All penal laws and other laws which do not agree with recognized human rights or with international law are
repealed.

-----------

A more detailed exposition was, naturally, not possible. ...

                                          signed: U.v. Beckerath.
Translation of a letter by Ulrich von Beckerath, 1951,

ON FLAWS IN THE UN DECLARATION OF HUMAN RIGHTS,
WITH STRESS UPON:
THE RIGHT TO ORGANISE EXTERRITORIALLY AND AUTONOMOUSLY.
-------------------------------------------------------------------------------

U. v. Beckerath 21.11.1951.

Dear Mr. Clauss,
                            in case you have not yet given up your plan to re-issue "Die Weltbuehne":

I submit in the enclosure the "Universal Declaration of Human Rights" of the United Nations. Would it be
advisable, to reproduce it in the first issue? I estimate that the text is unknown to about 99% of all Berliners.
The "Weltbuehne" could prepare a supplement to this declaration.

The most important supplement would be the statement of a duty for every human being to help in the realisation
and maintenance of human rights. To this would belong an active struggle against all those who by their words
and deeds have proven that they have no respect for human rights and that one can expect offences against human
rights from them. Furthermore, it would follow from this duty that those, whose human rights were offended
against or threatened, have the duty to inform the civilized world of these offences and threats and to form
resistance organizations and to seek and maintain alliances with those who are prepared to help them.

A further supplement would consist in the declaration that all States, whose governments show not respect for
human rights, do have to submit to corresponding limitations of their sovereign powers. Among such limitations
are, e.g.

   1.) Tolerance for autonomous protective associations of those inhabitants
       who are determined to take their own affairs into their own hands,
       to resign from their membership in the particular State and to live in
       its territory as neutral foreigners.

   2.) Exemption of the members of these autonomous protective association from
       all laws and regulations of that State which would offend against this
       autonomy, like conscription, compulsory social insurance, custom duties
       and other economic legislation.
The declaration should state that each peace treaty, after a war with such a State and each declaration on the ending
of hostilities, that replaces a peace treaty, has to include a clause for this kind of restrictions upon State Sovereignty
or it must be tacitly included, when not expressly mentioned. (Compare Beckerath's essay on this in PP 14 &
61-63. - J.Z.)
------------------------------------------------------------------------------------------------------------------------------------------

Some articles are formulated in a way that one can immediately see that a former trade union secretary has
participated in wording it.

In Article 23, No. 1, "protection against unemployment" is called a human right. Obviously, unemployment is here,
exactly as in article 25, No 1, considered as an accident, like sickness, invalidity etc. which involves the
employees.

No. 2, if it is to make sense at all, applies o n l y to employees, likewise No. 3. But, does a human being
absolutely have to be an employee? Couldn't he be independent, too? Could not independent people associate in
cooperatives and similar organizations? How much sense is there in recognising a "protection against
unemployment" for independent tradesmen?

   Unemployment is not an accident like sickness etc. Unemployment can have two completely different causes:

   1.) It can happen that the unemployed has acquired capabilities for which there is no demand. When King
Friedrich Wilhelm III. abolished pigtails at his court, ca. 150 years ago and with this gave a signal for almost all of
Germany, to do away with this hairstyle. Many barbers had to change their jobs in order not to become
unemployed. A p r o t e c t i o n against this kind of unemployment is obviously out of the question. But one
has to demand the abolition of all obstacles which are now frequently laid in the way of changing one's profession.
In the Anglo-Saxon countries, one of these obstacles, not to be overlooked, is the monopolisation of many
occupations by the unions. A few years ago, I read of an association of West-American glass workers, who not
only turned all glass manufacturing plants in their area into "closed shops" but who demanded an entrance fee of
$1500, too. We have here a guild monopoly that obviously offends against human rights.

    2.) It may happen - and this is the normal case - that raw materials, machines, great needs and people willing to
work are present but that these four factors do not get together because there is not enough m o n e y. Here a right
is needed to ignore the existing monetary legislation. H o w could this be done? That remains to be discussed.
-------------------------------------------------------------------------------------------------------------------------------------------

    The former union secretaries, who participated in formulating these rights, did not think of the right to leave the
status of a dependent worker and to become an independent one. Their independence could be realized by their
association into cooperatives of independents, when there are technical reasons for this as e.g. in mining and
machine construction. The thought to abolish the wage system and not to replace it with dependent labour in State
enterprises (thereby, it would not be abolished), is not at all new. It was often discussed in detail in the circles of
the old International.
--------------------------------------------------------------------------------
Here I have to confine myself to these hints.

--------------------------------------------------------------------------------
What do you think of the following quote from Immanuel KANT as a MOTTO, upon the first page of each issue of
the "Weltbuehne", similar to the "Rerum cognoscere Causas" of the "Tagesspiegel"?

  "Do not become the servants of men. Do not let your rights be trampled upon with impunity."

This is taken from his "Tugendlehre", Par. 12. This book appeared in 1797. Kant was then already 73 years old.
The older he became, the more revolutionary* he became. That Kant understood under "Tugend" (virtue)
something very different from what the Churches meant, follows from the above quotation.

   To read Kant is worthwhile. Do you possess Kant's "Eternal Peace"? I have a spare copy of it.

 With best greetings,
                                             signed U.v.Beckerath.

********************************************************************************************

Jochen Clauss, Berlin, 23.11.51.

Dear Mr. von Beckerath,

Please excuse my neglect of answering only today. Mr. Hirschel did, unfortunately, become sick, so that we had to
postpone the intended talk for one week, when he is discharged from hospital.

I thank you for your very interesting letter of 21.11.
Permit me to reply to it orally. The draft Brandenburg/Berlin (**)I would like to keep for a few days longer, since
Mr. Hirschel also expressed the wish to read it.

For today, sincere greetings,

                                     Your faithfully, Jochen Clauss.
-------------------------------------------------------------------------------------------------------------------------------------------

*) How many others are there, besides I. Kant and L. Spooner, who became more radical with advancing age?
Have many (perhaps most of those, 'who gave up the ghost', resigned, compromised or kept silent etc.) had been on
the wrong path, anyhow? Will someone please make such a survey for me? The subject might even be suitable for
a dissertation.
K.H.Z. Solneman's point of view remained largely unchanged, as far as I can judge, since ca. 1930. But sometimes
it is already an achievement merely to maintain one's convictions. Lafayette did so to his death.
I believe that I have come to see more and more of all the points that need changing and of the tools required for
the job but I see no other way to initiate these changes by myself than via the realisation of a programme for a
genuinely cultural revolution, to speed up the process of enlightenment - of which extensive use of microfiche and
of personal computers are just two important factors. And this realisation may already be too large a job for one
person.

**) The Brandenburg/Berlin draft of U. v. Beckerath got somehow lost by one of those who "borrowed" it. If I
remember right, what B. told me, it involved the reunification of West and East Berlin, together with the province
of Mark Brandenburg, which enclosed both of them and the neutralisation of this new association. Most likely, it
also contained a declaration of independence and a bill of rights. Finder's fee in microfiche!

J.Z., 4.1.1986.
PP41-45-66 Berlin Programme

PEACE PLANS 41 pages 45-66 (1-22)

                                 THE           BERLIN                  PROGRAMME

                                                           OF          THE

   BERLIN SOCIETY OF 1952 TO FIGHT THE CAUSES OF UNEMPLOYMENT
                                  (BERLINER GESELLSCHAFT VON 1952
                        ZUR BEKAEMPFUNG DER URSACHEN DER ARBEITSLOSIGKEIT)

                                  WRITTEN IN COMMISSION FOR THE SOCIETY
                                        BY ULRICH VON BECKERATH
                             FIRST TRANSLATION INTO ENGLISH, 1979 BY JOHN ZUBE

                                      PUBLISHED IN THE "PEACE PLANS" SERIES,
                            AS PART OF PEACE PLANS No. 41
                                      AND FOR
       THE RESEARCH CENTRE FOR MONETARY AND FINANCIAL FREEDOM (Same ADDRESS)

LIBERTARIAN MICROFICHE PUBLISHING, c/o John Zube, 35 OXLEY ST., or P.O. Box 52, BERRIMA,
NSW 2577, AUSTRALIA, TEL: (02) 48 771-436 NO FAX!
www.acenet.com.au/~jzube          www.butterbach.net/lmp/        jzube@acenet.com.au
www.butterbach.net/project.htm      www.butterbach.net/freebank.htm      www.butterbach.net/epinfo/abc.htm
www.butterbach.net/epinfo/peace.htm    www.exterritorial.info      www.panarchism.info
____________________________________________________________________________________________

Peace Plans 41/46ff
2

                                            CONTENTS
Introduction   …………………………………………………………………………………………………………
3

Declaration of some Principles, Aims and Demands of the Society ……………………………………………….
5

I.       A New Version of the Right to Work ……………………………………………………………………….
5

II.            The Right to                                    Associate       and        the         Unemployed
………………………………………………………………… 6

III.   Limits of Legislation …………………………………………………………………………………………
6

IV.     Freedom of Contract as a Means for the Reconstruction of Berlin …………………………………………..
7

V. The Injury Inflicted upon the Unemployed by Prohibiting the Issue and Use of Private Typified Means
    of Exchange without Legal Tender, Especially for the Purpose of Wage Payments
…………………………. 7

VI.     Foreign Exchange Control Legislation and Unemployment ………………………………………………...
8

VII.   Bills of Exchange for Clearing Only - for Berlin ……………………………………………………………
9

    A) The Distinction between                 Clearing     Bills    and     other   Bills      of      Exchange
…………………………………… 9

    B) How the "Bill              of   Exchange    for    Clearing   Only"    can    replace        missing    cash
………………………………. 9

    C) How Clearing Bills Assure Wholesale Exports from Berlin and thereby
        Provide                 Job               Opportunities                      in                       Berlin
……………………………………………………………………. 10

    D) Break with Schacht's Principle: Pay Externally with Foreign Exchange,
        Gain     this   Foreign       Exchange      by    Export     and    Import           only      Afterwards
…………………………………… 11
    E)     Trade   between   East                                                and             West
…………………………………………………………………………… 12

           F) The Principle Summarised ………………………………………………………………………………
12

VIII.    Gold Value Reckoning and Gold Coins …………………………………………………………………...
13

          A) Gold as a Standard of Value …………………………………………………………………………….
13

          B) Gold as a Means of Exchange ……………………………………………………………………………
13

          C) The Establishment of Monetary Freedom in Berlin ……………………………………………………..
14

          D) Monetary Freedom even for the Senate …………………………………………………………………
14

          E) Capital Will Flee to Berlin - after It Establishes Monetary Freedom …………………………………...
15

IX.      Changeover Credits ………………………………………………………………………………………….
15

X.      Productive Cooperatives and the Monopoly of Disposition over the Means of Production …………………
16

XI.     The German Law of 16/7/1927 on Unemployment Agencies and Unemployment Insurance, Par. 54-57…..
17

XII. The Principle of Satisfying Demand by Freedom to Purchase as Opposed to a
      Government Planned Economy ……………………………………………………………………………..
17

XIII. Final Aim      …………………………………………………………………………………………………..
18

XIV. Towards a Modernisation of Berlin's Legislation ………………………………………………………….
18

XV. Preliminary Compilation of some Legal Clauses Whose Immediate Repeal for Berlin
     Is Demanded by Our Association ……………………………………………………………………………
19

CONCLUSION            ………………………………………………………………………………………………….
21

********************************************************************************************
                                             ***

Peace Plans 41/47
3
                           THE BERLIN PROGRAMME OF 1952
                      TO FIGHT THE CAUSES OF UNEMPLOYMENT
                                                INTRODUCTION

The following programme was worked out by the
"Berliner Gesellschaft von 1952 zur Bekaempfung der Ursachen der Arbeitslosigkeit"
(Berlin Society of 1952 to Fight the Causes of Unemployment)

This was only a small circle of friends, mainly unemployed, whom Ulrich van Beckerath had gathered around
himself during the worst times of post WW II unemployment in West-Berlin, when it ranged from 25-33%. None
of the other members, including myself, were scholars. Only one had studied commerce and had some business and
writing experience. (I do not believe in arguments from authority!) Thus this text, although discussed with all
members, was almost exclusively written by Ulrich von Beckerath. Others made merely some minor research
contributions.

I had also joined this group in 1952, after contacting Ulrich von Beckerath upon recommendation by my father -
who has probably regretted this recommendation ever since, because B. rather than my father, became my mentor.
(My father lived then in Austria and later in West Germany.) My father knew Ulrich von Beckerath from the early
thirties, as a fellow member of Werner Ackermann's "Cosmopolitan Union" (see Peace Plan 130) which advocated
individual secession, voluntary and exterritorial and autonomous association, world-wide, on a personal law basis,
and, naturally, with von Beckerath as a member, free banking.

My very first talk with him dealt mainly with "Zwangskurs" (legal tender), a concept which itself and in its
consequences was then entirely unknown to me. (Who reads and ponders the small print on paper money
sufficiently?) It took place in 3 rooms literally loaded with books, in every conceivable shelving, up to 4 rows
thick, on and under tables, on and under chairs, in large stacks on the floor, books and papers everywhere, with
hardly room in-between to pass - and yet he could lay his hands on any reference he wanted within minutes at
most. More often he quoted it literally, from memory.

From then on I was in contact with him at least once a week until my departure for Australia in 1959.

I doubt that we had ever more than 12 members - and our means were still smaller.

The aim was to create a core familiar with the ideas and practices of monetary freedom. Excepting von Beckerath,
these ideas were new to us. None of us was a professional, specialist or writer on them and even if we had been,
there was then no avenue to express these or similar ideas. For instance, the coffee house tradition had been killed
by the Nazis and was still dead. Our small attempts to revive it failed. Open air speaking places did not exist any
more and revival attempts failed.

Public bulletin boards were largely non-existing, too. The mass media were closed to us. Meeting rooms were few
and expensive. There was no satisfactory advertising medium for upcoming meetings. The pinning up of some
notices led to police charges of "illegal placardeering".

Public opinion was generally then and there and still is opposed to such ideas.
To refute all myths, errors and prejudices on the subject would have taken more time, means, opportunities and
patience than we possessed. (A really encyclopaedic effort would be required.) Self-publishing was out of the
question, seeing our very limited funds.

One of the personal reasons for the failure of this little group was that the members were regularly snowed under
by an avalanche of clippings, papers, books and written and oral comments emanating from von Beckerath - which
touched on more subjects, facts and questions than the members found time to explore. For instance, I took notes
for more than 200 reform proposals.

Other individualist radicals like Ulrich von Beckerath did not seem to exist among the 3 1/2 million people of
Berlin - or we failed to contact them.
Peace Plans 41/48
4

Thus we were only able to get the blueprint for this programme down in a few typewritten copies. (An archive and
information service for such proposals does still not exist - apart from the one initiated by PEACE PLANS No. 20
& 183.)

I was later in touch, apart from Ulrich von Beckerath, only with one former member of this group, Egon Kortmann,
… West Germany.
Egon Kortmann has so often run into brick walls with these ideas that he had reverted back to some of the
conspiracy beliefs - upon the assumption that as bad monetary, credit and finance legislation as exists now,
everywhere, cannot be due merely to ignorance but must be due to bad intentions. (For me the abundance of errors
and prejudices on the subject is a sufficient cause.) He also runs a small German educational archive and
information service but does not speak or read English. (He died a few years ago. - J.Z., Dec. 02.)

The difficulties commonly experienced in spreading such and other reform ideas led me to compile a programme
for a GENUINELY CULTURAL revolution which was published in my CONTACTS series for Sydney, a few
years back and whose programme points are listed among the 1,000 projects in Peace Plans No. 20: "The Need for
and Financing of AN IDEAL MARKET FOR FREEDOM IDEAS - and for other Ideals as well." A future fiche
will deal especially with this programme.

This is to my knowledge the first ever translation of the BERLIN PROGRAMME of 1952. With minor changes -
the legislative restrictions referred to being essentially the same in all countries - this programme can be applied in
any city or country suffering from genuine mass unemployment as Berlin did then. These restrictive laws have to
be repealed in all countries before a natural and fast recovery and development on a self-help basis becomes
possible.

I would gladly engage in a discussion of this programme and could append it to future fiche issues of it. Those
interested in this programme will also find the other monetary freedom writings in this series of interest to them.

                                         John Zube, Berrima, February 1979.


Peace Plans 41/49
5

DECLARATION OF SOME PRINCIPLES, AIMS AND DEMANDS OF THE SOCIETY

Our society sees the final cause of unemployment in the misunderstanding of certain natural rights of human beings
and citizens, rights of an economic and particularly monetary kind which were so far not yet included in the
constitutions and in the Universal Declaration of Human Rights of the UN. The misunderstanding of these rights
has led to a situation where the people are also unfamiliar with useful democratic methods to enforce and utilise
these rights. Our society considers it as its task to point out these rights to its fellow citizens and to describe
methods for claiming them - without infringing thereby all those rights of others, which are recognised as general
human rights and rights of citizens.

Our society is convinced that the recognition and realisation of so far misunderstood rights will, especially in
Berlin, lead very fast to a demand for labour which will exceed its supply so that full employment is achieved for
the unemployed of Berlin and for the refugees.

Our society declares that this aim can be reached without any limitation of liberties, without new taxes, without any
enforced and general reduction of working hours, as e.g. by the introduction of the 4o hour week, without restraints
on the work of double earners or any import restrictions.

Our society, furthermore, declares that the reconstruction of Berlin, the production of the household articles
destroyed by the war and the achievement of a standard of living corresponding to the technical and working
ability of our people, will require the whole strength of all Berliners and that of all refugees arriving, to the limit of
their physical working capacity - if only the legal obstructions are removed so that these energies can be applied
and if the prejudices are renounced which hold that these laws are beneficial although they actually restrict labour.

In the following some of the fundamental rights asserted by us are described and explained.

I. A NEW VERSION OF THE RIGHT TO WORK

The unemployed have not lost (as a result of their unemployment) the corresponding right, a right which can be
claimed by all human beings, namely: to produce their own livelihood, using division of labour, not to be exploited
while doing this, and to undertake or realise all economic, technical and organisational measures which appear
suitable to them to make this production possible.

Quite obviously, in this way neither the employment rate, the national product, the chances for general progress,
the quantity and the quality of the means of production would be reduced nor the natural liberty of their fellow
citizens be diminished.

Our society is aware that the above expressed right goes beyond the right to work previously demanded by the
unemployed. While the previous right to work was merely meant to indicate an obligation of others, especially of
the government administration, to somehow employ the unemployed for wages, or let them be so employed, the
right proclaimed by our society embraces the authority of the unemployed to try to employ themselves in the
above-mentioned sense, to create the preconditions for this and to have a decisive influence on the kind of their
employment.

As the authorities and the economic advisors of the government, in spite of many, honest and praiseworthy
endeavours, did not succeed to realise the previously demanded right to work, our society and the unemployed
must conclude from this that this right, and with it the abolition of unemployment, cannot be realised at all with the
means considered so far and under the previous assumptions of the government and its advising economists. The
development of the labour market in Berlin so far - and previous experiences - have, instead, convinced us, and
should also convince the unemployed, that the improvements which occurred since the currency reform in the

Peace Plans 41/50
6

degree of employment, in some fields, have either causes which must be considered as accidental, and may not be
expected to last, or, alternatively, such as, however unintentionally, do at least to some extent correspond to the
rights explained here. They are in no way the result of a centrally planned economy in the usual sense of these
words. There are only seeming successes of planned economies during which, as here and there happens in foreign
countries, the standard of living of the workers considerably deteriorates and prices continuously rise. This happens
while a world surplus of food and other kinds of goods exists. The old age pensions of all working people are
threatened and people more and more cease to save voluntarily and to form economically useful capital. These
price increases are, obviously, of an inflationary nature because they are not caused by a genuine shortage of
goods. Such seeming successes are not recognised as successes by our society. Instead, we protest against the
economic methods they are based on - in spite of the favourable statistics which result from them, on the level of
employment.
Our society invites the unemployed of Berlin to join our protest in case an attempt should be made to introduce the
same methods in Berlin. The seeming successes achieved in other countries may satisfy the right to work among a
population which does not care about the kind of labour assigned to it and is prepared to sacrifice essential
freedoms to its planners. But for the unemployed in Berlin these examples can only be one more reason to demand
the right to work (in the version previously thought to be sufficient) from now on as a right to produce one's own
livelihood oneself, under division of labour and without being exploited.

II. THE RIGHT TO ASSOCIATE AND THE UNEMPLOYED

The right to associate, recognized in the constitution, is not lost by becoming unemployed. On the contrary, the
unemployed have the right to associate in order to abolish their unemployment and this in any legal form which
they hold to be suitable. Legal forms which according to present legislation are closed to the unemployed, they are
authorised to improve by means of contracts agreed upon between them. For instance, the legal form of
cooperatives, with its compulsion, enforced by legislation on cooperatives, to immediately pay up some of the
cooperative shares in cash. Unemployed possess cash for such purposes only in exceptional cases.

III. LIMITS OF LEGISLATION

The unemployed are not obliged to recognize as binding any legislation which makes it legally, technically or
economically impossible for them to produce their own livelihood in a process of division of labour or to exchange
that part of their production which was produced for others, with these others. Such a legislation is shown to be
misdirected or at least faulty in its formulation - merely by the fact that it hinders the process of production and
exchange.

It is the duty of legislators to institute reforms in this area but it is not the duty of the unemployed to act against the
proper meaning of legislation by subordinating themselves to faulty laws. The proper meaning of a law, in a
community based on democracy, can never be to suppress any useful activity. In cases of doubt, the law is to be
interpreted in the opposite sense, regardless of a wording which does not carry this sense.

Article 49 of the Berlin constitution on the possibility of a referendum, shows the way which the unemployed could
and must ultimately take to achieve a reform of the legislation.

Peace Plans 41/51
7

IV. FREEDOM OF CONTRACT AS A MEANS FOR THE RECONSTRUCTION OF BERLIN

As the reconstruction of Berlin and with it a revival of the building industry up to the limits of what is technically
possible, is essential for the abolition of unemployment in Berlin and because houses cannot be built without credit
- as the economy and technology stand at present - and as credit cannot be obtained in sufficient amounts without a
value-preserving credit base, exemption from interest rate restrictions and other restrictions on capital, sufficient
protection from taxes which are not economically justified and complete freedom for the transfer of property and
especially of property in houses, the following demands arise for all active participants in the reconstruction of
Berlin:

A) The right to conclude contracts using any value standard which appears suitable to the contractors themselves,
stable money contracts not excluded.

B) The right to so arrange the contract conditions (apart from the standard of value used) that creditors (those
seeking investments) are induced to make investments which would reduce unemployment in Berlin rather than
somewhere else.

C) Tax exemption for newly built houses, for the blocks of land they are built on, for all incomes deriving from the
property in these houses and from loans for such properties and for all transfer transactions. Required is thus:
Freedom from the added value tax, the stock exchange tax for mortgages, and from taxes on all other securities
used to finance building, exemption from turnover tax, death duties and so on.
This tax exemption should last as long as these houses stand. Destruction by acts of nature and reconstruction
through insurance shall not affect this tax exemption.
Our society advises especially the unemployed to fight for the realisation of these demands as they would have the
most direct interest in them.

V. THE INJURY INFLICTED UPON THE UNEMPLOYED BY PROHIBITING THE ISSUE AND USE

     OF PRIVATE TYPIFIED MEANS OF EXCHANGE WITHOUT LEGAL TENDER,

     ESPECIALLY FOR THE PURPOSE OF WAGE PAYMENTS

As the shortage of cash in Berlin is by far too large to expect that all wages can always be paid in cash,
as one cannot renounce full employment just because of this existing shortage which can also be foreseen for the
future,
as the supply of Berlin with cash depends on a single office which must undertake its cash distribution not only
with regard to the requirements of financing production but must also consider that its cash currency has a forced
value and a forced circulation and is therefore subject to the danger of inflation,
as this office, moreover, also holds the monopoly to issue money and thereby the economy is continuously
threatened with deflation, i.e., with an insufficient supply of cash,

- the workers and the unemployed must demand the right to be included - with the employers - in cash saving
clearing transactions, in a form suitable for them, as well as the authority to establish clearing exchange
themselves.


From these considerations the following demands arise:

a) the right to exclude par. 115 and the following of the "Gewerbeordnung" (trade regulations outlawing "truck"
payment arrangements),

b) the right to establish clearing houses which may issue and lend out clearing cheques and similar documents for
the purpose of clearing - which are in money denominations and standardised and have neither a forced value nor a
forced acceptance (no legal tender).

Peace Plans 41/52
8

c) All suppliers from whom workers, tradesmen and other employees purchase, must also be conceded the right to
issue, lend to employers for wage payments and accept in their trade, like cash: goods warrants (or purchasing
orders) not redeemable in cash and similar binding notes (scrip) based on the clearing principle, in money
denominations but without enforced value and enforced acceptance (legal tender).
In future, all shops, retailers' associations, consumer cooperatives, but also employers and associations of
employers, must have this right - if only they are prepared to submit to control measures which lie on hand and
guarantee that these certificates can be used in all their sales outlets at any time and are prepared to make their
business affairs accessible to the public and if the employees are prepared to accept these notes in wage payments.
None of the old laws and regulations may remain valid for Berlin that force employers to put their employees on
the street, in cases of cash shortages for wage payments. It is the duty of the legislative bodies to repeal these
clauses for Berlin.

A special technique is required to issue these certificates effectively, to assure that they serve only for the payment
of work incomes, to achieve the reflux of the certificates in time, to keep proper control and to keep in balance the
quantity as well as the choice of ready for sale goods - with the issue of goods warrants. This technique was well
known at the time of the old note-issuing banks in Germany (When the German Empire was founded, there were
34 note issuing banks in Germany and 4 existed still until 1934.) but has been lost to our generation. To establish
special courses, to acquaint all those interested with these techniques, is one of the aims of our society.

VI.    FOREIGN EXCHANGE CONTROL LEGISLATION AND UNEMPLOYMENT

As is revealed in many articles in the commercial section of all Berlin newspapers, the foreign exchange control
legislation makes the supply of Berlin with raw materials and machinery extremely difficult. When the supply of
resources and equipment is insufficient, then the number of job opportunities must also be insufficient and the
quality of the products of Berlin must suffer. No good reason can be given for the maintenance of foreign exchange
control. Its continuance does not agree with the right of the unemployed to produce - in division of labour - their
own livelihood and to create the preconditions for this. Undoubtedly, the supply of raw materials belongs to these
conditions.

The employed and the unemployed of Berlin must therefore demand that the legislative bodies repeal, immediately,
the whole foreign exchange control system for Berlin and permit a completely free market for foreign exchange in
Berlin, including a completely free market in rare metals.
As foreign exchange legislation has no basis which is economically justified and never had such a foundation, the
demand must also include an amnesty for all condemned for offences against foreign exchange controls and for the
deletion of these penalties in all penal records.

One can cope with the foreign exchange control legislation of foreign countries. A stronger force than that of
Berlin and even that of the German Federal Government will defeat them. The own subjects of foreign
governments will, indeed, demand that these laws are no longer applied to trade with Berlin - when Berlin
introduces Free Trade. The foreign exchange control legislation of foreign countries has for its purpose the
promotion of their exports and not to hinder them.

Nobody can seriously maintain that foreign countries are irrevocably determined to supply Berlin with raw
materials - and other goods - only for payment in foreign exchange. But few are aware that under the German
foreign exchange control legislation one can already be punished merely for offering payment otherwise than in
foreign exchange and without permission by the Central Bank. The German foreign exchange control legislation
makes the Central Bank an absolute master of external trade. Berlin does not need such a master. The Berlin
economy is fully able to conduct Berlin's external trade by itself.

Peace Plans 41/53
9

VII. BILLS OF EXCHANGE FOR CLEARING ONLY - FOR BERLIN

A ) THE DISTINCTION BETWEEN CLEARING BILLS AND OTHER BILLS OF EXCHANGE

Although at present the cash-less clearing transactions of Berlin do not embrace the employees, most tradesmen
and many smaller businessmen, it is nevertheless, already far enough developed to easily permit the immediate
introduction of typified and not typified clearing bills and of similar clearing documents, even for the turnover of
wage earners, tradesmen and small businessmen.

Bills of exchange for clearing only are imitations of the clearing cheque in bill of exchange form. The drawer (bill
debtor) is not obliged to redeem the bill in cash but he is obliged to accept it, after its due date, against himself, like
ready cash, when somebody presents him the bill, as means of exchange in purchases or in payment of debts owed
to him. Acceptance of the "bill of exchange for clearing only" by the issuer amounts to a clearing of the amount of
the money stated in the bill - between himself and whoever presents this bill.

With most of the bills of exchange of the older kind this usage is normal already now - especially when the issuer
conducts all his payment transactions through his bank. Thus the "bill of exchange for clearing only" does indeed
merely legitimise a long existing payment method, one generally recognized as beneficial, but it prevents creditors
from refusing clearing during a monetary crisis and demanding precisely then and "as a precaution" cash from their
debtors. This latter phenomenon, that everybody, especially during a general shortage of cash, nevertheless
demands cash, as far as this is legally permissible, is well known and contributes very much to turn monetary crises
into economic crises, e.g. in the year 1932.

B ) HOW THE "BILL OF EXCHANGE FOR CLEARING ONLY" CAN REPLACE MISSING CASH

In no economy is there as much ready cash available that all imports required could be paid with it. The reason for
this is very simple. Cash circulates continuously between shops, customers, banks, employers, employees etc. and
the external trade has only small opportunities to draw cash from this circulation for its own purposes. Thus the
endeavours of importers to arrange some kind of clearing with the exporters and thereby save ready money, are
really necessary.

Such clearing becomes impossible when normal banking transactions become disturbed, for instance by
extraordinary withdrawals of deposits from the bank or by interference of the authorities in free trading with
foreign exchange. Reductions in foreign trading are then an unavoidable consequence and likewise dismissals of
workers in the export industries.

Such disturbances could be avoided by the introduction of "bills of exchange for clearing only". Contrary to ready
cash and foreign exchange, the "bill of exchange for clearing only" is always available as a means of payment for
exports, even during economic disturbances, when all other means of payment have disappeared from the
circulation. Only the goods and services which serve as "cover" for these clearing bills must not be short. But
especially during sales difficulties the stock of goods ready for sale is exceptionally large.

The "bill of exchange for clearing only" can be written out in any currency desired by the creditor. It can be
typified or not. Thus a debt of $ 367 could very well be recognized in form of 7 bills of $ 50 each and one for $ 17.
The dollar value of such means of exchange from Berlin could be determined in accordance with the rates at the
Berlin or some other exchange.




Peace Plans 41/54
10

Such bills of small denominations are easily transferable and can replace ready cash in many instances.
If Berlin firms would, for instance, issue such bills and pay with them for their imports, then they would be
protected from any disturbance in banking and international bill clearing transactions.

The cover of these bills would be, as must be pointed out here, again, the ready-for-sale goods and services of the
Berlin economy. For the middle of the year 1952, the monetary value of these can be estimated to be around 500
DM for each inhabitant of Berlin.
(An estimate by Prof. Hirsch for the German economy, in Reichsmark of 100 gold Pfennigs each, resulted in an
amount of about 500 RM for each inhabitant of the Germany of that time. As today's DM, according to the
currency laws and the free market gold price, is worth less than 100 gold Pfennigs, and as in Berlin there are, per
head of the population, more ready for sale goods than in the rest of Germany, this estimate of 500 M must be
considered as moderate.)

Our society does not insist on a compulsory introduction of "bills of exchange for clearing only" into Berlin. It only
demands that the authorities make no difficulties for it. Nor does our society demand that firms which do not trust
their own judgement in external trade and foreign exchange matters should now, suddenly, act independently and
without subordinating themselves to an authority recognized by themselves. They may freely refuse to use "bills of
exchange for clearing only" and they may even contract high penalties among themselves (in place of the present
liability to fines) which become due when any of them ignores the instructions of the authority recognized by them.

But should this firm gain a deeper insight and come to recognize that they were in error, then they should be free to
renounce allegiance to the authorities previously recognized by them and they can base their action on article 16 of
Berlin's Constitution, which runs:

       "Any abuse of economic power is outlawed. Especially, all private monopoly organizations aiming at the
       domination of production and the market, are an abuse of economic power and are thus prohibited."

Even an abuse practised in good faith must be counted an abuse as this kind of good faith is not protected by the
constitution - as the constitution does not mention it at all.

It corresponds more to the spirit of the constitution to appeal to reason and the better insight and common sense of
those concerned and, if necessary, to the people (see article 49 on referendum) in all cases of originally well-meant
laws or corresponding private agreements which have turned into abuses.

C) HOW THE CLEARING BILLS ASSURE WHOLESALE EXPORTS FROM BERLIN

    AND THEREBY PROVIDE JOB OPPORTUNITIES IN BERLIN

"Bills of exchange for clearing only", drawn by Berlin firms, enforce the compensation of all imports to Berlin paid
with such bills - by corresponding exports from Berlin.

How? Very simply, by the use of these clearing bills in Berlin as means of payment towards Berlin firms. Then the
Berlin firms concerned will place stock orders with their manufacturers or wholesalers, approximately to the value
of the goods sold. This stock order contributes directly or indirectly to the reduction of unemployment. It does so
directly when the stock order is placed with a Berlin firm and indirectly when it is placed, for instance, in the
German Federal Republic or in a foreign country - but is paid, again, with clearing bills. No matter how many
hands the Berlin clearing bill will pass through, finally it will land again in Berlin and will have to be exchanged
for Berlin goods or Berlin labour. Thus any danger through additional imports to Berlin is removed. On the
contrary, additional imports must reduce the existing unemployment. This happens necessarily, not only when raw
materials and semi-finished products are imported but also when finished products are imported whose
consumption improves the standard of living in Berlin.

A change-over of Berlin industry as a result of imports is naturally not excluded. Only a reduction of the all-over
employment level is impossible. This can be easily deducted from the following consideration:

What, for instance, could an American cotton or a banana exporter do otherwise with a Berlin clearing bill, given
to him as means of payment, than either ordering himself goods with it, from Berlin, or selling it to someone who
either can use Berlin goods or owes some thing to a Berliner? That a foreigner could e.g. pay for a radio from

Peace Plans 41/55
11

Berlin with a clearing bill drawn by a Berlin tobacconist, that would be no problem at all and has not been one for
more than 200 years. There are banks and large merchants who purchase foreign bills and see to it that they are
used in payment against the drawer. This applies to bills of exchange of the usual kind and will in future apply to
the clearing bills as well.

The payment of imports for Berlin with clearing bills drawn in Berlin would also abolish the often lamented "dollar
shortage". These bills can be expressed in any currency and thus, naturally, also in dollars. This payment method
thus replaces dollars of American origin with dollars originating in Berlin. The foreign exchange control legislation
knows already such dollars and, quite illogically, declares them to be foreign exchange. So far the authority
commissioned to carry the foreign exchange legislation into effect, has not permitted Berlin dollar bills. This it just
one more reason for the repeal of the foreign exchange control legislation. (Why didn't it permit Berlin dollar bills,
by the way, already during the Nazi regime? The reason could be that American dollar certificates are allocated
by the Central Bank in its capacity as foreign exchange bank, while dollar certificates of Berlin origin do not
require any allocation and the Central Bank is thereby excluded as a middleman.

As the payment of imports with clearing bills permits any kind of imports to Berlin, especially when no custom
duties are any longer levied in Berlin, the whole world is turned into trading partners of Berlin and thereby also
into political friends. Moreover, this way of payment turns the whole requirements of Berlin into demand supplied
with means of exchange (purchasing power), into a demand behind which stands as cover, lastly, Berlin's labour
power and the abundance of its ready for sale goods. This cover is, inevitably, claimed under the new system -
unless those exporting to Berlin want to make a present to the Berliners.

As was already indicated above, Berlin's clearing bills are adverse only to one institution in the world, namely to
the Central Bank as a centre for foreign exchange. It will then become superfluous for Berlin. What applies to
imports from foreign countries does, naturally, apply correspondingly to imports from the German Federal
Republic.

Measures to obstruct imports to Berlin from anywhere in the interest of a higher level of employment in Berlin,
become unnecessary after the introduction of the clearing bills.

A gold coin or a dollar flowing into a foreign country in payment of imports would, probably, not come back to
Berlin and finance here new employment. But the clearing bill returns under all conditions to Berlin and thus must
finance new employment opportunities here, whether the foreign countries like that or not.

Therefore, one has to see to it that Berlin's legislation, administration and jurisdiction do not obstruct the use of
clearing bills, a right of the people which every Berliner shares, especially every unemployed. On the contrary,
they should rather facilitate it as much as possible, especially for the cooperatives formed by the unemployed.
On the other hand, for the employed and still more the unemployed, a duty arises to study the new system and to be
more concerned with the essence of free trade and a free circulation. The subject of both is lastly the labour power
of the workforce. When workers do this, then they will soon recognize that the old principle:
         "The liberation of the workers can only be the work of the workers themselves"
- is not just a phrase but does have some deep meaning.

D) BREAK WITH SCHACHT'S PRINCIPLE: PAY EXTERNALLY WITH FOREIGN EXCHANGE,

     GAIN THIS FOREIGN EXCHANGE BY EXPORT AND IMPORT ONLY AFTERWARDS

It is necessary to view the new system from as many different angles as possible. The following thoughts may
serve this objective :
For a long time we lived under economic conditions where the purchaser who is supplied with means of exchange
is generally economically stronger than the seller waiting for means of exchange.

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The necessity to sell and to export is in all countries of the world so forceful that it gives the appearance as if sales
resulting in means of payment and thus also export, are the most essential necessity. Almost every day do the
newspapers report such utterances by leading statesmen in all countries. The system of clearing bills would enable
Berlin, under the present conditions, to appear in all countries of the world not as a salesman but, instead, as a
promptly paying purchaser who is looking for the best sources of supplyand is, thereby, commercially in the
stronger position.
This supremacy of Berlin would last as long as the world persists in its present errors on financing wholesale
trading. Berlin's limits for importing its own requirements would then be equal to the limit of its working power.
This limit Berlin could not and must not exceed. Fortunately, it is rather expansively drawn and exceeds many
times the present capacity of Berlin.

It is quite possible that the government of a country is prepared to permit an export to Berlin but would not allow
imports from Berlin to come into its country, neither direct nor indirect ones. But in such a case there remains still
the possibility to transform the obligation of Berlin, to supply the equivalent, into a long term loan whose first
repayments are postponed for a few years. It is not unlikely that one or the other foreign government will make this
choice and will thus assist its exporters financially. A similar thing happened, for instance, in the case of the
German reparations after 1918.

At most there is the other possibility that the foreign government banks for export and import will simply let expire
the clearing bills, which they received from Berlin. They will do so in order to keep the Berlin exports away - to
the advantage of the own industry and will recover the losses from the employment funds of the government
concerned. It requires no exposition that such behaviour is more favourable for Berlin than for the foreign country.
Berlin would thus receive suddenly the long-term loans from private sources for which it had waited for so long in
vain - under the old system.

E) TRADE BETWEEN EAST AND WEST

The new system would also provide new opportunities for the East-West trade. Berlin will not supply any war
materials to the East but agricultural machinery, wind motors, irrigation equipment etc. Berlin's labour would be
free and would, after the introduction of the new system, be the freest in the world for a considerable period. The
labour in the East is unfree and thus exposed to the disadvantages of unfree labour which are known already for
thousands of years.

Berlin would supply the East the essential goods for the development of a really peaceful production, at better
prices than any other country, precisely because its labour would be the most liberated one. This fact will not
escape the economists in the East. Thus, lastly, the example of Berlin will affect even the organization of the
economy in the East.

F) THE PRINCIPLE SUMMARIZED
Berlin pays in future for its requirements not with gold, silver or foreign exchange but, instead, with its own
assignments upon its own labour and its products. Berlin does no longer implore others to be permitted to sell.
Instead, it will be beseeched by others to purchase from them.

So far, Berlin paid for its consumption essentially with such means of payment, which its products obtained when
sold outside of Berlin, under great difficulties and in all too small quantities - because it was considered as an
undesirable competitor by the foreign producers. Indeed. Berlin did even pay for a considerable part of its
consumption with borrowed and also with donated means of exchange. This was humiliating and a great burden for
its fellow citizens in Western Germany. All this must be changed and will be changed.

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VIII. GOLD VALUE RECKONING AND GOLD COINS

A ) GOLD AS A STANDARD OF VALUE

The Berlin regulations applying to gold are essentially part of the foreign exchange legislation. Thus they will fall
with these laws. Generally, the people hold towards existing laws a prejudice in their favour, assuming that they are
good, i.e. based on reason. Thus the people have welcomed the abolition of gold from our monetary system. To
remove this prejudice is still more important than to remove the legislation, which gave rise to this prejudice. The
following simple thoughts may serve for this purpose.

One may consider gold as a monetary evil. Nevertheless, it is certain that freely transferable gold, in its capacity as
standard of value, is for prolonged periods the smallest monetary evil that so far has become known. For instance,
the present prices in Berlin, if they are converted from their paper marks amounts into gold marks, are not very
dif-ferent from the prices a quarter of a century ago.

When foreign exchange control legislation has been repealed in Berlin and the choice of the standard of value has
become free (and e.g. wages and unemployment benefits are paid in accordance with gold values) then the Berlin
economy and the Berlin Authorities will accept freely transferable gold as a standard of value, at least until
something better becomes known. The goods in the shops will also be priced in gold units (hopefully, in grams of
fine gold) and likewise the wholesale prices. In this we must, naturally, not forget that the high quality of gold as a
standard of value is only an experience of, approximately, the last 100 years but not at all a dogma. For centuries,
for instance, silver was monetarily superior to gold and one day in the future gold will also have to give way to a
better standard of value. Nobody knows when this will happen. Perhaps it will occur already tomorrow. Our
society demands therefore, for all contracting parties, the right to choose for themselves, at their own expense and
risk, whatever standard of value appears suitable to them. In other words, our society insists on free choice of value
standards in contracts. Consequently, it demands that all those deciding in favour of gold should also have this
right.

B) GOLD AS A MEANS OF EXCHANGE

Regarding the characteristics of gold as means of payment, here as freely transferable gold coins, one has so far not
sufficiently distinguished between:

a) the lawful claim of creditors to demand gold, which was recognized under the old gold standard (in other words,
     his right to get his gold claim paid out in gold coins) and

b) the right of the debtor to pay the creditor in gold coins in case he, the debtor, possesses gold coins and wants to
     pay with them.

The latter right does obviously do no harm to anyone. Every creditor is indeed satisfied when his debtor pays him
voluntarily in gold coins. On the other hand, the right of creditors to demand gold has several times led to trade
crises.

Moreover, all economic objections so for raised against gold coins apply in reality exclusively to the right of
creditors to demand gold coins. Those who object against gold have so far not noticed this circumstance.
According to the present legislation this claim has been abolished. There is no reason to re-introduce it. But there
is, likewise, no reason to prohibit debtors to pay in gold coins when they have them and want to pay with them.
Why, for instance, should one prohibit foreign debtors to pay Berlin firms, e.g. a cooperative of unemployed, in
gold, when they consider it as appropriate? Essential is only that no Berliner is obliged to pay his debts in gold,
either to foreigners or to others.




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C) THE ESTABLISHMENT OF MONETARY FREEDOM IN BERLIN

The world would trust the security of investments in Berlin more than at present and would invest capital in Berlin
- if gold coins could be coined here, even if only by private enterprises and in the form of medallions. But they
must actually circulate in Berlin and this as a means of payment which debtors may voluntarily offer to their
credi-tors. This trust would become complete if a referendum introduced such a legal condition.

At the same occasion the forced value and the forced circulation (the legal tender characteristic) of the notes of the
Central Bank should be repealed by the referendum. The Central Bank may try to operate without this coercion -
unless it prefers to go into liquidation. The same applies to the note issue monopoly of this bank.

Forced value and forced circulation (the legal tender characteristics) are the absolutely needed technical and legal
requirements for inflation. Whosoever holds another opinion on this should explain to his fellow citizens how one
could inflate without enforced value and enforced acceptance. Likewise, a deflation is impossible without the
monopoly for the note issue. Whoever dares to attempt to prove the opposite should do so right now!

Only very few do still know that the right to refuse paper means of payment, including the notes of the State's
banks, was an old German right of the people. This right was recognized by many laws, first by a decree of
Frederic II of Prussia to Berlin's highest court of appeal. In the Acts Marchiarum and in the Prussian law collection
this clause can be found and the following provisions passed for Prussia. Still in Bismarck's Bank Act of 1875,
article 2 expressly stated that there would be no compulsion to accept these notes. And why were such provisions
made? Because at that time one knew that such provisions make an inflation impossible and the people were to be
convinced: This paper money is not an inflation money and cannot be one as long as these provisions apply.

Not until the Imperial Law of 1/6/1909 were the notes of the German Central Bank given the legal tender
characteristic - and this was done, as the then President of the German Central Bank, Havenstein, openly declared,
with a view to the war which already threatened then. (By the way, Prussia conducted the wars of 1864, 1866 and
1870/71 without legal tender for its notes.)

The referendum would prove that the people of Berlin would have finally dissociated themselves from the legal
tender paper currency which is subject to the inflation risk and that they are no longer willing to submit to
depreciations of wages, pensions etc., combined with general price rises, developments which occurred, lastly,
under any legal tender paper currency, excepting only the few cases where the government previously repealed
legal tender. It would prove that especially the workers would not longer submit to a reduction of their standard of
living by inflation.

If the referendum were also to proclaim free choice for the standard of value, then the people would also be
protected from devaluations which, as is known, have essentially the same effect as inflations.

The freedom to choose the standard of value would give the people the right simply to refuse to accept a
depreciated currency and to create for themselves a better one, e.g. by the acceptance of a gold weight unit as a
standard of value.
This resistance of the workers would also benefit the creditors, who provide capital investments which create jobs
and the creditors would, indeed, notice this additional security.

D) MONETARY FREEDOM EVEN FOR THE SENATE

There is no good reason to exclude the Senate (the government) of Berlin from the monetary freedom introduced.
The laws on taxation give the Senate an asset with every single Berliner subject to taxation. There is no reason why
the Senate should be prevented from disposing of these assets in the economically most appropriate way. This way




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consists in a clearing of the expenditures of the Senate against the taxes owed by Berlin to the Senate. This clearing
would take place, in the most simple and appropriate way, by the Senate paying each of its creditors (public
servants, suppliers etc.), who is prepared to accept them, with typified warrants in money denominations and
without legal tender. In all tax payments, including tax payments in advance, the Senate would accept these
warrants like ready cash and at their nominal value.

The older economic science teaches, and an easy reflection confirms, that any community can issue an amount of
warrants, as are here in question, that corresponds to the revenue of about three months and in special cases to even
more, without these warrants suffering any discount in circulation. The limit for the issue of these warrants is easily
recognisable: When at the Berlin Exchange these certificates begin to be discounted - then the limit is reached and
the issue must cease for the time being.
The so far applied method of raising taxes forces each taxpayer, to enable him to pay his taxes, to first acquire
means of payment for this by the sale of his products or of his labour. This method does not take into consideration
whether trade is sufficiently supplied with means of payment. The extension of monetary freedom to the Senate
would, immediately, turn all those Berlin taxpayers who are also creditors of the Senate, into owners of exchange
media to pay taxes with. Moreover, immediately afterwards and indirectly, it also supplies with purchasing power
the creditors of the second degree, among others, the shops in which the public servants do their shopping.
Moreover, it makes those factories able to pay from which the suppliers of office equipment to the government
receive their goods, etc. Most of the tax debtors are thus rapidly provided with means to pay their taxes. The rest
should be allowed to pay their taxes with private goods warrants, even with their own, if only these certificates can
be used in trading without difficulties, like money, or are traded at the Berlin Exchange without a discount.

By means of the above indicated method to facilitate tax payments which is, by the way, known in the science of
economics, the work of offices is recognized as equivalent to other productive labour - as it is fundamentally
financed in the same way.
Thoughts on whether it conforms to democratic principles when the authorities sometimes force services upon
citizens which the citizens in their opinion could better and cheaper provide for themselves, or which they would
rather do without, lie beyond the sphere of our activities.

E) CAPITAL WILL FLEE TO BERLIN - AFTER IT ESTABLISHES MONETARY FREEDOM

There is no reason not to arrange the legal situation in Berlin in a way that Berlin would become, within a short
time, the centre for all capital in the world that seeks a refuge. Thus foreign countries would help to undo the
damages Berlin suffered during the war. The unemployed of Berlin have a special interest in achieving this aim.

IX. CHANGEOVER CREDITS

The Berlin economy was always and to an especially large extent since 1933 subject to changes. Through these
alterations the acquired knowledge and abilities of Berlin workers become continuously superfluous and new kinds
of knowledge and abilities are required. These changes also make much invested capital superfluous and the owner
of these workshop facilities become impoverished.
Our society demands that all those suffering such losses should in future have a legal claim for a changeover or
retraining credit under acceptable conditions. To be sure, our society also demands that the loan conditions are also
acceptable to the creditor.

For all credit institutions granting changeover credits or mediating them, a complete exemption from all taxes on
this turnover, of these credits and interest rates, must be demanded. To tax them would mean that Berlin would
profit from an emergency of its citizens and is, therefore, out of the question.




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A great deal of unemployment is caused by the fact that those concerned cannot change their trade rapidly
enough, especially not when they are older workers. By proposing a law on changeover (or retraining) credits, our
society hopes to make a contribution towards the abolition of unemployment caused by economic and
technological changes. We stress that employers, businessmen, small tradesmen and cooperatives of so far
unemployed people should also have a lawful claim to such changeover credits.

Our society suggests to those interested to obtain a credit insurance for these credits. Moreover, it demands than in
Berlin and in the future all credit-insured changeover credits are to be considered as sufficiently safe for the
investment of trust funds in the meaning of the Civil Code's par. 1807 and the following, so that the means of the
social insurance companies and of other financial institutions may be invested in such credits.

X. PRODUCTIVE COOPERATIVES

     AND THE MONOPOLY OF DISPOSITION OVER THE MEANS OF PRODUCTION

The private entrepreneurs in Berlin have not conducted the fight against the causes of unemployment as vigorously
as would have been necessary for a success, or could not do so. As yet they have, for instance, never called for a
public meeting in which the repeal of foreign exchange control was demanded or the extension of the clearing
system to wage payments, at least in those cases where it would have made the employment of more workers
possible. Some such public meetings could at least have prepared public opinion for such reforms. Later, public
opinion could have been changed in their favour and thereby the support of the employers, as well, could have been
gained.
Without wanting to blame any particular person, our society, nevertheless, feels induced to point out that the
economic initiative of the employees and especially the unemployed in the areas here in question, can no longer be
considered as superfluous. This initiative requires the assertion of so far ignored economic rights towards the
privileges practised by various groups and persons.

This applies especially to the authority to dispose of means of production which includes the authority to permit or
refuse their use - which amounts to a monopoly.

Considered is here not only the corresponding authority of employers to hire or refuse to hire workers but, for
instance, also the almost as large authority of some "Betriebsraete" (Members of advisory councils, set up by
unions, with legal privileges.) on the employment of further workers. These offend against a general and social
right of the unemployed.

The economic situation of Berlin and the mentality of the Berliners, which is adverse to unnecessary compulsion,
are, from the point of view of our society, not of a kind that would require the abolition of the above indicated
monopolistic authorities by means of special legislation. We see the possibility of a direct agreement between the
groups concerned. Thus we propose the following:

A) The workforce of the larger Berlin enterprises, perhaps of all those employing 50 or more people, urge the
owners of the enterprise, i.e. private proprietors, corporate bodies or the City of Berlin, to enter into negotiations
with them concerning the take-over of the enterprise by all employees, organized in form of a productive
cooperative.

B) The take-over could either be done by means of a lease or by purchase. The lease could be paid in clearing
certificates. To pay the purchase price, bonds, similar to industrial bonds, could serve. An agreement would have to
be achieved to redeem the bonds after the due date not in cash but by means of the readiness of the cooperative to
accept them in all its payment transactions like ready cash, for instance, when someone buys something from the
cooperative or pays debts to it and for this purpose presents due bonds as means of payment. The same applies to
interest coupons. These bonds should be covered by a credit insurance and what has been said in Section IX for
"change-over credits" should correspondingly apply to credit-insured bonds.

C) The productive cooperatives should, voluntarily, set an example to the world of the renunciation of any
monopolistic disposition over the means of production. Thus the cooperatives should abandon the right which is

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now conceded to entrepreneurs and, almost to the same degree, to the councils of unionists in each firm, to reject
people applying for jobs. Instead, the cooperative should declare that it would accept anyone desiring to work with
it, even when as a result the working hours in one or several sections or even in the whole enterprise, have to be
temporarily shortened. Any such obligation has quite another meaning under full employment than it would have
under an economic condition where a large industrial reserve army fights for jobs with the industrial frontline
troops.
Our society points out that older unemployed workers can associate in their own cooperatives and thereby integrate
themselves again in the process of production. All legal clauses, which would hinder them, should be compiled
and, if necessary, repealed by a referendum.

It must not be overlooked that under this new system everyone able to work, who migrates to Berlin, is
economically an asset. Division of labour is one of the strongest productive forces and each new labour power
helps to promote it further. Under the new system, the cooperatives will be able to cope with any influx of
immigrants. In extreme cases the immigrants could form cooperatives for themselves.

The above recommended voluntary obligation to accept all who appear for work, will unburden the City of Berlin.
This fact justifies a considerable tax reduction for the cooperative as a whole and for its individual members.

XI. THE GERMAN LAW OF 16/7/1927 ON UNEMPLOYMENT AGENCIES

       AND UNEMPLOYMENT INSURANCE, PARAGRAPHS 54-57

By means of the above paragraphs, professional private employment agencies were outlawed after 31/12/1930.
When this law was passed, we had not yet had the present experience with government employment agencies. It
has been shown that they have not achieved what workers once expected from government employment agencies
and this in spite of the good will and special knowledge of many on their staff.

Our society is convinced that the frequently observed abuses in government employment agencies are much less
the fault of particular public servants than the fault of the system. Private employment agencies, operating under
the control of public scrutiny, would achieve more than this system. Our society thus demands, in the interest of the
unemployed, the readmission of private employment agencies - by the repeal of the above clauses for the area of
Berlin.

Our society has reasons to assume that many of those now employed in government employment agencies could do
much more for the unemployed than they can do now, once they work in private employment agencies and are
freed of the bureaucratic fetters which are inevitable instate enterprises. They would probably join private
employment agencies as soon as these become legally possible.

XII. THE PRINCIPLE OF SATISFYING DEMAND BY FREEDOM TO PURCHASE

        AS OPPOSED TO A GOVERNMENT PLANNED ECONOMY
As long as politics, economics and even public opinion concede to the government an exclusive privilege (as if it
were a self-evident monopoly) to issue standardised means of payment, and thus as long as workers are not
permitted to pay anyone prepared to accept such certificates, with assignments on the own labour power, the
control of an economy, by means of central government planning, must appear as an obvious necessity. But such a
denial of rights has led to chaos. As soon as workers and unemployed recognise and assert their monetary rights,
full employment will result and thereby, automatically, all the disorder will disappear which planning intended to
abolish. (But which bureaucracy had really caused in the first place, by various interventionist anti-economic
practices. - J.Z.,, 28.12.02.)

Whoever rejects freedom as a means to reach full employment, falls inevitably victim to the error that full
employment must be achieved by coercion. Moreover, he then becomes a victim of the further error that this

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coercion must, naturally, be exercised by the strongest social power, namely by the government. He does not notice
that the government, even when its members are inclined towards liberty, has become, by means of this monetary
monopoly, the strongest social power, a power that always threatens to exceed the limits drawn for it by the rights
of the people.

To issue typified means of payment, which are the most essential of all goods, must not be a monopoly. The
workers overlooked that man is only insofar economically and lastly even politically free as he has an immediate
influence on his supply with typified means of payment. Without this influence he becomes the slave of whoever
feels inclined to make him solvent, even when the constitution recognises all other human rights and rights of
citi-zens.

XIII. FINAL AIM

From this insight follows the final aim of our society: Neither production planning by the government, nor
direction of consumption, but replacement of the command economy by self-help satisfying the needs of the
workers, and this by means of purchases of the labour and labour products of others, organized, as is customary in
banks, and using typified purchasing certificates which represent assignments upon the own work, the latter
corresponding to the demands of the others.

XIV. TOWARDS A MODERNISATION OF BERLIN'S LEGISLATION

In Berlin today many laws and regulations still apply which originated in the time of the Prussian kings, the
German Empire, the Hindenburg period, the Nazi regime and in the first years of the occupation (when the
exclusive aim was to deal with the immediate consequences of Nazism and the war). Many of these laws and
regulations obstruct directly or indirectly the free development of the productive forces of Berlin.
For only very few of these laws a time limit was predetermined for their validity. This in spite of the fact that many
of these laws and regulations were expressly designed merely to mitigate or abolish an emergency which was
recognized as temporary. With others one could foresee that they would soon become outdated. Moreover, one did
not take sufficiently into consideration the old experience that it is impossible to foresee all effects when passing
new laws.
Sometimes, by means of these effects, a well-intentioned law passed with the approval of the contemporaries,
becomes tyrannical, obstructs the efforts of the people and infringes rights of the people, which so far had not been
considered. All laws that fetter economic life today were once passed with good intentions and without foreseeing
their consequences.

Considering that legislative bodies, overburdened as they are all the time, cannot possibly act immediately when
the imperfection of laws becomes recognisable, so that sometimes, in spite of good will, they have to leave in force
clearly recognized imperfections for many years, our society believes that it should take up the following proposals
raised long ago by discerning jurists:

Each generation should mainly establish its own legislation. Each following generation should have the right and
the opportunity to continuously test the usefulness of older legislation and its applicability under the changed
conditions of the times. The simplest way to achieve this aim would be to put a time limit on the validity of all laws
and regulations.

One can estimate that ca. 30 years after a law was passed, its defects have become visible. One could also estimate
a generation as lasting approximately 30 years. Thus we demand that no law should be valid for more than 30
years. For departmental instructions, police orders etc., a maximum period of 20 years' validity appears suitable.
Laws and regulations, which turned out as still good after these periods, could again be put into force by a very
short resolution of the legislative body.

We ask the political parties and other institutions called upon to assist legislation, and all the jurists of Berlin, to
submit to Berlin's parliament, as soon as possible, proposals for a new law which supplements all older legislation
in the here explained way.

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We ask the jurists of Berlin to compile a list of good and proven laws and regulations whose unchanged
continuance for the next 30 or 20 years they would recommend, according to their experience.

For the period of transition, our society recommends the following rule:
The Mayor of Berlin receives the authority - for a period of ten years - to keep all laws older than 30 years and
regulations older than 20 years, in force for another 2 years and, if necessary, to make use of this authority again,
provided only these particular laws and regulations are clearly named and parliament or a referendum have not
decided otherwise in the meantime.

This rule would not cover laws not yet 30 years old and regulations not yet 20 years old. Experience has shown that
some laws and regulations are, very soon after their passing, revealed as unsatisfactory, unsuitable or too vaguely
worded. Today's legislation does not refute this old experience. Our society thus reminds that the older Prussian
(and therefore also applicable to Berlin) legislation did impose a duty upon all judges to point out all defects they
experienced in laws and regulations and to make proposals to improve them, which correspond to their experience.
Our society recommends the passing of a similar instruction to all public servants and employees of the City of
Berlin. Each should at least once a year report to the Mayor of Berlin all defects he has found, pointing out
individual cases and submitting proposals for improvements. The ruling Mayor should be authorised to refer such
reports and recommendations who whoever he thinks suitable, asking for comments and also to publish them.
Those reporting these defects should not be compelled to submit these reports to their superiors. Our society is
convinced that a continuous checking of laws and regulations, initiated in this way, by those called to apply them,
would considerably improve Berlin's legislation and administration within a few years.

Our society also points out that for years the press has published letters by citizens which reveal glaring abuses in
the administration, jurisdiction and organization of departments. But the necessary reforms did not always follow
these disclosures. A better result might be achieved if the Senate were to publish an information sheet to publish
the full text of all hints submitted by the public towards defects of the above kind.

The ruling mayor should be authorised to insist that the departments concerned reply in this information sheet.
Charges for the publication of these submissions should not be levied. This publication should be distributed
through the book trade at cost and be made freely available to the press. Whole reform proposals of a general kind -
for which, as is well known, there is no publicity avenue in Berlin, should be published free of charge and without
abbreviations, in this publication, provided only full name and address is given.

Although these suggestions, in the eyes of some, seem to go beyond the realm of a society to fight the causes of
unemployment, nevertheless, we want to submit them to our fellow citizens for their criticism. It has happened in
numerous instances that abuses, which seemed to be confined to jurisdiction or administration, nevertheless had an
indirect and considerable effect on the level of employment.

If a statistic could be compiled about the working time lost to the people, diminished productivity and lost
opportunities for economically useful activities, all due to being given the run-around and to various annoyances,
then an altogether horrifying loss would be revealed which is also associated with a great dissatisfaction with
official institutions, which could easily have been avoided. Those who know the conditions of the people and
economic life do indeed not require such a statistic.

XV. PRELIMINARY COMPILATION OF SOME LEGAL CLAUSES

       WHOSE IMMEDIATE REPEAL FOR BERLIN

       IS DEMANDED BY OUR ASSOCIATION

Our society is unable to submit already now a complete compilation of all legal clauses which obstruct productive
labour today, although they were all once passed with good intentions and for purposes which appeared good
when their effect on the level of employment was not foreseen.


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Once the Berliners begin to establish all the organisations required to abolish the causes of unemployment and
seriously begin to produce, under division of labour and without exploitation, their own livelihood - a production
which immediately opens up unlimited opportunities for work - once, in order to carry out their resolution, they
refuse to accept all means of payment which were so far prescribed for them - to the extent that they hinder the
achievement of their great aims - and once Berliners insist in paying in all transactions with assignments upon the
own labour, then there will not be a shortage of legal men who will dig up from old laws, regulations, directives
etc. numerous clauses which prohibit such an advance, clauses which may have been bearable for an economically
immature people. The Berliners are no longer such people.

As by far the greatest part of the German libraries has been burned and, consequently, these old rules can only be
known to a few jurists, who possess or have access to saved official printed matter, a compilation of these old rules,
professionally done, could be of great historical importance. Perhaps such a compilation of Berlin legislation will
be an occasion to formally repeal it insofar as it infringes the general rights of human beings and citizens or the
articles of the Berlin Constitution. Perhaps one will simply refer to article 3 of the Berlin Constitution which runs:

       "The legislative power is the exclusive province of the representatives of the people and, by means of
       referendums, of the people. The executive power lies in the hands of the government and its subordinated
       administration, the juridical power in the hands of independent courts."

Royal Prussian Ministers and, even less so, Nazi leaders, are not representatives of the people in the modern sense.


THE FOLLOWING IS ONLY A PRELIMINARY COMPILATION

A) Par. 3 of the Law No. 61 for the area of the Federal Republic of Germany of 20/6/1948 (Currency Act) and
Berlin laws applying this law to Berlin. This par. 3 runs:

       "Monetary debts may only be occurred in other currencies than Deutsche Marks with the permission of the
       authority responsible for foreign exchange licences.
       The same applies to money debts whose amount in DM is to be determined by the exchange rate of another
       currency or by the price of a quantity of fine gold or of any other goods or services."

B) Law No. 62 for the area of the German Federal Republic of 20/6/1948 (Note Issue Law) and the Berlin laws
applying this law to Berlin. The essential clauses of this law are:

       Par. 1, No. 1: The "Bank Deutscher Laender" (Bank of German States) is hereby granted the exclusive
       privilege to issue banknotes and coins in the currency area (Law No. 61, Currency Act). The banknotes and
       coins are expressed in Deutsche Mark or Pfennige.

       Par. 7, No. 1: With imprisonment for up to 5 years or with fines up to 100,000 DM or with both penalties
       anybody will be penalised
           1) whoever, without authority, issues money tokens (tickets, coins, certificates or other documents which
               are suitable for use in general circulation in place of the legally permitted coins and banknotes) or
               bearer bonds which do not pay interest, regardless whether the money tokens or bearer bonds are
               written in Deutsche Mark or any other value standard.
                    Whoever knowingly uses for payment in the currency area any money tokens or bearer bonds
which do
                    not carry interest and have been issued without authorisation, or whoever does the same with
such
                    money tokens which were issued outside the currency area and are exclusively or parallel to
other value
                     standards, ex-pressed in Deutsche Mark.
           2) The attempt is punishable.




Peace Plans 41/65
21

C) All labour legislation which, as experience has proven, harms the older unemployed by making them less
desirable contract partners for employers. In question are especially rules on remuneration.

D) Par. 115 and the following of the "Gewerbeordnung" (Trade Regulations ). Section 1 of par. 115 runs:

       "All employers are obliged to calculate the wages of their employees in "Reichswaehrung" (Imperial
       currency) and to pay them in cash."

E) The whole tariff legislation. Berlin needs Free Trade.

F) All tax provisions named above in the text.

G) The Nazi law of 3/7/1934, which the Nazi regime proclaimed under the very misleading title:
"Gesetz gegen Missbrauch des bargeldlosen Zahungsverkehrs" (Law against the Abuse of Cash-less Payment
Transactions).
Par. 1, sec. 1 of this law states:

       "All enterprises are subject to the provisions of this law which establish cash-less accounts, mainly for the
       purpose of granting credits which can be transferred according to business customs either by cheques,
       assignments of any kind or clearing orders - but not by means of cash withdrawals."

H) All provisions of the law on cooperatives that make it difficult now for unemployed people to form
cooperatives, e.g. by the demand to pay up a part of the cooperative shares in cash. The same applies to the
requirements of the "Revisionsverbaende" (Inspection Associations).

I) The existing provisions on the safe investment of trust-funds - with regard to loans reducing or preventing
unemployment. Especially, credit-insured investments should be considered as safe in the meaning of par. 1807 of
the German Civil Code.
(By instructions of the supervisory boards, many financial institutions are forced to invest their funds in accordance
with this paragraph and thereby they are made practically unavailable for the purpose of financing employment.)

J) Paragraphs 54-57 of the German law on employment agencies etc. of 16/7/1927.

K) The regulation on emergency money of 30/10/1931 by the Finance Minister of the German Reich, H. Dietrich.
(This regulation is still more restrictive than the Note Issue Law of 1948.)
                                                  CONCLUSION

Our society is aware that the rights and reforms here demanded can be only a beginning. It reserves the right to
point out, when required, the necessity to recognise further rights and to introduce further reforms, while
explaining the details.

Our society is also aware that new duties arise for Berliners with the achievement of full employment in Berlin,
duties whose fulfilment cannot be demanded from them in their present situation.
After full employment is achieved, Berlin will no longer require the subsidies from the German Federal Republic.
On the contrary, Berlin con then gradually repay the support it has received. The repayment could begin by the
transfer of all West German notes and coins received at public pay offices, to the Federal Republic.

After the introduction of the here demanded reforms, Berlin does no longer require West German means of
payment as general means of circulation. On the other hand, their circulation shall not at all be prohibited. Every
means of payment, which can serve to finance useful work and any standard of value, should be permitted in Berlin
without being subjected to legal tender or similar restrictions.

From the above expositions follows that our society is not a party. Instead, it appeals to all parties and to the people
of Berlin, its government and its parliament.

Moreover, from our exposition it becomes clear that our society refuses to blame any particular persons or groups
for the existing unemployment.

Neither do we insist on new elections or new taxes or any expropriations.

We demand exclusively reforms which can be achieved by a simple legislative act.

Peace Plans 41/66
22

Certain political preconditions must, indeed, be created. But the present circumstances are very favourable for this.
The whole world, as far as it is sympathetic to freedom, has often shown that it is prepared to grant Berlin all
necessary relief. It is now only a question of expressing these necessary relief measures in a clear and popular
programme and to formulate drafts for the necessary reform laws. Our society will endeavour to contribute to this.

                                             ***
____________________________________________________________________________________________

The programme text ended here. It was only followed by some lines on how to contact the now defunct society and
how to find out about its events.

For a discussion of this programme contact:
John Zube, 35 Oxley St., Berrima NSW, Australia 2577 jzube@acenet.com.au              www.acenet.com.au/~jzube

==================================================================================

       "ALL THE PERPLEXITIES, CONFUSIONS AND DISTRESSES 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 N A T U R E OF COIN,
       CREDIT AND CIRCULATION."
       - John Adams, in a letter to Thomas Jefferson, 1787, quoted by Irvin A. Schiff in "The Biggest Con", p. 13.


Workers, industrialists, farmers, graziers, miners, retailers, tradesmen, professionals, exporters and importers, all
alike, do all too passively, dumbly, apathetically and in hopeful ignorance expect, of all people, the bureaucrats to
supply not only the bureaucrats themselves and their favourites, but also the customers of all the listed productive
people, with the required sufficient purchasing power to buy the private services, goods and produce from them
which these hopeful no-hopers so abundantly, industriously, skilfully and even intelligently provided and offer for
sale.
They persist in this vain hope in spite of the fact that the government has nowhere any oustanding efficiency record
with its nationalised and monopolised services.
They ignore the fact that it has a very bad record in this particular sphere as is proven by inflation, deflation,
stagflation, unemployment, depressions, credit restrictions and devaluations.

The supposedly more enlightened people, academics, do , as a rule, in no way try to shake them out of this lethargy
and misplaced confidence and hope - by proposing monetary emancipation from the incompetent controllers.

Nay, on the contrary, they tend to share and strengthen the popular myths and prejudices on the subject. Thus they
encourage the consent of the victims of an extremely wrong and harmful monetary system, one of monetary
despotism, which prevents the development of a truly free, wealthy and peaceful society.

How much longer will you put up with it???             J.Z.   3/79.

==================================================================================
PP41RiU

41/1

                                    UNEMPLOYMENT

AS         A        PROBLEM                         OF   TURNOVER                                        CRE
                                                    DITS

AND            THE           SUPPLY                OF MEANS                                  OF           PAY
                                                  MENT

                     BY DR. HEINRICH RITTERSHAUSEN,
                         Private Lecturer at the University of Frankfurt o/M, observer and
                               advisor at the Bank Enquiry at the Reichsbank, 1933.

       A DEFENCE OF THE "BANKING SCHOOL" OR "REAL BILLS DOCTRINE"
       AGAINST THE   INFLATIONISTS, THE DEFLATIONISTS     AND THE "CURRENCY
       SCHOOL",
       WITH A FUNDAMENTAL DISCUSSION OF "FREE BANKING" PRINCIPLES & PRACTICES.

First published in Jan/July 1934 in the "Annalen der Gemeinwirtschaft" (Annals of Cooperative Economy), edited
by Prof. Edgard Milhaud, 10th. year, vol. 1, entitled:
"Zahlungsverkehr, Einkaufsscheine und Arbeitsbeschaffung, S. 153-207. (Payment Transactions, Purchasing
Certificates and the Provision of Employment.)

The first English issue appeared as part of the same essay collection but under the heading: "Ending the
Unemployment and Trade Crisis", William and Norgate Ltd., London, 1935, pp. 137 - 187. Translator of this essay
was G. Spiller, London.

This translation is by John Zube and was made in continuous comparison with Spiller's translation in an attempt to
improve upon it. An ideal translation is still to come. Some notes by John Zube are added in brackets.
Published in March 1979 by LIBERTARIAN MICROFICHE PUBLISHING, in the "PEACE PLANS" series, in
PEACE PLANS No. 41, for the RESEARCH CENTRE FOR MONETARY AND FINANCIAL FREEDOM,
Sec. John Zube, 35 Oxley St., Berrima, NSW 2577, Tel. (02) 48 771 436. (2002 address & tel. No.)
Main literature list: www.acenet.com.au/~jzube Supplementary list: www.butterbach.net/lmp/ Extensive
alphabetized notes on monetary freedom: www.butterbach.net/freebank.htm E-mail: jzube@acenet.com.au
Two peace books by John Zube contain also much on monetary freedom. They are now accessible either through
www.exterritorial.info or www.panarchism.info
The libertarian CD-ROM project is also especially intended for free banking writings:
www.butterbach.net/project.htm

                     Many more monetary freedom titles can be found in LMP's literature lists.

           This text was scanned and somewhat proof-read and annotated by John Zube in December 2002.

41/2

                                               CONTENTS
       A) Banks of Issue and Banknotes as Means for Organising Mutual Turnover …………………………….
       4

             1. Need for an Organization Linking Production and Consumption …………………………………….
       4
             2. Bill Transactions ……………………………………………………………………………………...
       4
            3.         The         Transition         to        the         Modern         Credit     System
       ………………………………………………………... 4
            4. The Scottish Banknote as the Basis for the Classical System of Note-issuing Banks
       ……………….. 5
            5. The          Deferred Proceeds from Sales as the Basis for Turnover Credits
       ……………………………….. 5
            6.                    The                                          Turnover                Credit
       …………………………………………………………………………………. 5
            7.          The                   Turnover         Credit          Business         of     Banks
       ……………………………………………………………... 5
            8.          The                  Redemption           of         the        Banknotes      Issued
       …………………………………………………………… 6
            9.      The             Note       Credit      as      Exchange       or      Conversion   Credit
       …………………………………………………..7
          10.             The                         Source             of           Turnover         Credit
       ……………………………………………………………………… 7
          11. Elasticity and Prevention of Abuses ………………………………………………………………….
       7
          12. Excluding the Danger of Inflation through the Principle of a Free Market Rate for Means of
       Payment,
                thus     Avoiding    Compulsory       Acceptance     and    Forced    Value    (Legal Tender)
       ………………………….. 7
          13. Provision of Employment through Turnover Credit or through Investment Credit? …………………
       8
          14. The Concepts 'Value Standard" and "Forced Currency" (Legal Tender) ……………………………..
       9
          15. A Danger of Inflation in Providing Employment Exists only when there Is a Forced Currency ……
       10
          16. The Giro Transactions as the Completion of the Classical System ………………………………….
       11

       B) The Gradual Destruction of the Classical System, from 1909 to 1932, as Cause of the Difficulties
       Encountered in Re-Integrating the Unemployed ……………………………………………………….
11

       1. Culmination and Decline of the Classical System …………………………………………………..
11
     2. The Obscuration of the Classical Banking Concepts through the Separation of Functions
          between                   Note                 and                 Deposit             Banks
……………………………………………………………………12
    3. The Centralisation of the System of Note Issue as an Indication
         for the Transition from Banknotes to Paper Money ………………………………………………….
13
    4. The Fall of the Classical System through the Abandonment of Convertibility and
         the Introduction of a Forced Currency (Legal Tender) ……………………………………………….
13
    5. The Abandonment of the Redemption Obligation and its Consequences ……………………………
14
    6. The Identity of the Rule of Legal Tender, the Central Banking Concept and Inflationism ………….
14
    7. After the Fall of the Banks Followed the Destruction of the German Monetary System by the
         Changeover from Money Based on Commercial Bills to Money Based on Financial Bills …………
15
    8. The Reichsbank Is, Temporarily, the Largest Mortgage Bank.
         Lack of a Healthy Bank System Prevents the Re-Integration of the Unemployed in the Economy ….
15
    9. The Fateful Compensation of an Inflation of Financial Bill Money by
         a Deflation of Commercial Bill Money ………………………………………………………………
17
  10. The False Support of the Banks Increases Unemployment ………………………………………….
17
  11. Unnecessary Sacrifice of the Gold and Foreign Exchange Reserves Intensifies the Unemployment
19
  12. Where Does the Inflation Danger Lie Today? ………………………………………………………
20
         (Hayek misunderstood R. so much that he called him an inflationist! - J.Z.)
  13. The Aggravation of the Situation by the False Cure of Devaluation ……………………………….
20
  14. Is the Central Bank System or Free Banking More Suitable
         to Provide Employment and End the Crisis? ………………………………………………………..
23
  15. Decline of the Credit System and Aggravation of the Unemployment Problem
         as the Outcome of an Unhealthy Development over Several Decades ……………………………...
23

41/3

C) The Clearing Principle and the "Vier Gesetzentwuerfe" (Four Law Drafts)

       to Re-integrate the Unemployed in the Economic Process …………………………………………….
24

       I. From Payment to Clearing ……………………………………………………………………………
24
     II. Draft of a "Law" on Clearing Banks …………………………………………………………………
26
     III. Draft of a "Law" on the Issue of Reich Treasury Notes ……………………………………………..
31
     IV. Draft of a "Law" on Raising the Price of Securities and Lowering the Effective Interest Rate
             by the Introduction of Clearing in the Sphere of Loans ……………………………………………..
     34
          V. Draft of a "Law" on Stable Value Reckoning ……………………………………………………….
     36

     D) Conclusion      …………………………………………………………………………………………….
     38

          I. Fundamental Conclusion: Necessity of a Saturation with Means of Payment ………………………
     38
         II. Practical Part-Solutions: The Central Banking System and the Future of
              Our                   Bank                  and                 Payment System
     ……………………………………………………………………... 38
        III. The Limits of the Importance of Turnover Credit
              for the Solution of the Unemployment Problem ……………………………………………………..
     39

     FOOTNOTES            .................................................................………………………………………………..
     41

      AN EDITORIAL NOTE ON OTHER WORKS BY PROFESSOR RITTERSHAUSEN
      AND ON CURRENT MONETARY FREEDOM THEORIES …………………………………………
      44
____________________________________________________________________________________________


            "Since banks cannot even issue their own currencies, they are not allowed a free market
            in the very commodity (money) in which they deal!" - Terry Arthur in "95% is Crap".

     "All writers on Scottish banking agree in praising its effects on the prosperity of the country. Within 150
     years, under the double influence of her banking and educational system, Scotland sprang from her
     barbarous state to the position of being the most prosperous country in Europe. Adam Smith, quoting from
     a report, states that the trade of Glasgow doubled within fifteen years of the establishment of banking
     there." - Henry Meulen in "Free Banking, chapter VIII.

                                  "Credit money, based on human products:
                                  Each producer mints his own money
                                  in conjunction with his own banker.
                                  That is the true function of bankers - dealers in debt."
                                  Dr. H. G. Pearce.

                      "Good and honest banking is not impossible - it's just illegal." JZ.

                                  "As the government obviously cannot supply
                                  an honest and inflation-proof currency -
                                  let private enterprise do the job!" - J.Z.

              To provide for monetary exchanges is no more a sovereign right of governments
                                 than to provide nappy exchanges. - J.Z.

                  "... governments cannot be trusted with power to determine what traders
              should use as a medium of exchange." - Leonard E. Read, THE FREEMAN, 1/75.

                   "Cetero censeo: Exclusive and forced currency must be destroyed -
                      in a monetary revolution, by being out competed and refused.
               We won't have widespread peace, freedom and wealth without this step." - J.Z.

            "It is State interference with the money supply that causes the alternation of boom and slump -
               the succession of boom and slump that provides the chief target
               of criticism in the socialist attack on capitalism."
               Henry Meulen, in "THE INDIVIDUALIST", 6175 .

                              ... state control of money was generally started
                              as a source of revenue."
                              Henry Meulen, in "THE INDIVIDUALIST", 12/74.

____________________________________________________________________________________________

41/4



       UNEMPLOYMENT AS A PROBLEM OF TURNOVER CREDITS

                    AND THE SUPPLY OF MEANS OF PAYMENT
A) BANKS OF ISSUE AND BANKNOTES

       AS MEANS FOR ORGANISING MUTUAL TURNOVER
1. NEED FOR AN ORGANIZATION LINKING PRODUCTION AND CONSUMPTION.

It is manifestly not enough to state theoretically that the proceeds resulting from production are turned into incomes
by the payment of wages and other costs. Instead, a firm and regular organized relation between production and
consumption must be established.

One might see the ideal of such an organization in a CONTRACTUAL AGREEMENT of the individuals
concerned, to obtain goods and services of every kind ONLY FROM ONE ANOTHER. In such an association,
under proper organization, unemployment could never exist. Thus it could guarantee job opportunities to its
members. (2)

During the historical development, not such marketing associations but historically grown communities played a
role. During the Middle Ages it was especially the village and town economy which served, extraordinarily, to
organise the relations between producers and consumers. With the end of the medieval system these organizations
were largely abolished. Their place was taken, in the modern economy with its numerous private exchange
communities, by the BANKS. Thus the banks should not only be considered as profit-making enterprises.
Right from the beginning they had to fulfil certain functions in the life of the community which were of the greatest
importance for the mutual employment of the citizens. One of the most important means of the financial technique
used was the BILL OF EXCHANGE.

To describe in detail the development of banks as the payment and sales communities of the present, out of the
transactions in bills of the late Middle Ages, would require too much time here. Thus it should suffice to
reconstruct and isolate this development for today with the example of an ISLAND economy.

2. BILL TRANSACTIONS

Let us leave for a moment our modern and all too complicated environment and examine the simple economic life
on a small island. Everybody produces and everybody exchanges his goods for those products of other producers
which he requires. The necessary import is paid for by exports. As MEANS OF EXCHANGE in the widest sense,
only CONVEYANCES and MONEY are required for this. The problem of the PHYSICAL TRANSPORTATION
of goods from place to place is today almost entirely solved. Railway and automobile see to that. But the monetary
transactions are still unsolved and misunderstood.
How can one best explain money and credit transactions under such simple conditions? We need merely assume
that EVERYTHING IS FIRST PAID FOR WITH BILLS. Thus, through the sale of my products, I acquired a
CLAIM FOR THE SALES PRICE, an ASSET IN MONEY. The thus acquired asset is here, as in the modern
economy, the NATURAL MEANS OF PAYMENT OF THE INDIVIDUAL, which, in principle, suffices
everywhere:

When I buy my own requirements from various suppliers, then I have to give these suppliers only BILLS by which
I CEDE to them this claim. The suppliers, in turn, can now use the claim, which belongs now to them, in order to
pay for THAT which they had bought. If the bills are made to fall due at the day of the most important annual fair,
then they need only be CLEARED when due, precisely as is done now on the Exchange settlement days. Thus all
payment transactions could be settled. Should some traders have bought MORE than they had received for their
own products, then the small remaining balances had to be paid in CASH, e g. in coins, which usually did not make
any difficulties. It is clear that this method of payment, which existed for centuries, served best for the exchange of
goods. Moreover, it could NOT be DISTURBED BY FOREIGN INFLUENCES, unless a shortage of paper or ink
arose.

3. THE TRANSITION TO THE MODERN CREDIT SYSTEM

This type of economy presupposed that everybody associated in this payment community, was known to the other
members and thus had a certain amount of CREDIT. (That credit would have permitted the carrying over of small
and still unsettled balances from the last clearing day to the next one, rather than forcing the debtor to pay in cash. -
J.Z., 26.12.02.)

41/5

This fundamental condition was shaken WITH THE ABOLITION OF THE GUILDS. A nameless proletariat arose
of workers working by the day or week. These did no longer receive the major part of their income in free board
and lodging at their master's house and a single payment at the annual fair. Instead, they were more and more paid
weekly, with a cash wage which, originally, could not be supplied in cash means of payment. The old system could
no longer cope with this new task. The bills were mostly for large and uneven amounts. They were indivisible and
thus useless for wage payments. They were neither guaranteed not, as yet, due. Thus they were unsuitable as
general means of payment.

4. THE SCOTTISH BANKNOTE AS THE BASIS FOR THE CLASSICAL SYSTEM
    OF NOTE-ISSUING BANKS

From 1695 onwards the SCOTTISH NOTE-ISSUING BANKS created the BANKNOTE and thereby established
the modern money and credit system. THEY CONVERTED the bills made out in uneven and much too large
amounts into TYPIFIED PIECES, let us say of 10, 20, 50, 100 RM (or Francs, Pounds or Pesos) and ADDED
THEIR OWN SIGNATURE. Thus they INSURED them in order to eliminate the credit risk. These banknotes
were, so to speak, "CUT UP BILLS". They must not be confused with the notes of the Bank of England, which
originated from the deposit certificates of the goldsmiths and which, under Peel's Bank Act, have still not entirely
lost the character of gold deposit certificates, even today.

While the rise of the modern factory system had INTERRUPTED the circulation of the means of payment (the
bills) at the point where the manufacturer wanted to pass on to his anonymous workforce the means of payment he
had received, as wages, the circulation became CLOSED AGAIN by means of this invention. THE BANK, AT
THIS POINT, CONVERTED THE CUMBERSOME BILLS INTO HANDY AND GUARANTEED PIECES
WHICH THEN CONTINUED THE PROCESS OF CIRCULATION.

Now we need ONLY insert ANOTHER THREE COMPLICATIONS: TURNOVER CREDIT, CASH-LESS
BANK TRANSFERS and the MONOPOLISATION OF THE NOTE ISSUE, to find ourselves IN THE MIDST
OF THE MODERN MONEY AND CREDIT SYSTEM and to be able to understand HOW IT IS POSSIBLE
THAT THE UNEMPLOYED MAY NOT PRODUCE THAT WHAT THEY WANT TO CONSUME AND WHY
THE WORKERS ARE NOT PUT INTO THE POSITION WHERE THEY CAN CONSUME WHAT THEY
HAVE PRODUCED..

5. THE DEFERRED PROCEEDS FROM SALES AS THE BASIS FOR TURNOVER CREDITS
Let us look, first of all, somewhat closer at HOW the SCOTTISH BANKNOTES GET INTO CIRCULATION
and, what is almost still more important, HOW THEY RETURN FROM CIRCULATION.

The manufacturer, who delivers the bill to the bank, almost always sells ON CREDIT. The wholesaler, supplied by
him, PASSES THIS CREDIT ON to the retailer. Thus is made possible the GOODS STORAGE at the retailers
which has become economically indispensable and without which neither the selection of goods nor their
continuous supply are possible.

While the manufacturer receives only bills when selling his goods, bills which fall due in e.g., 2 months, he has
IMMEDIATELY to pay the WAGES for the labour spent on the products, to his labourers. THIS TIME
INTERVAL IS ALSO BRIDGED BY THE SCOTTISH NOTE-ISSUING BANK.
It replaces the later due bills with IMMEDIATELY DUE ONES and with this "DISCOUNTING" it supplies a
further extremely valuable service in addition to the "TYPIFICATION" and the "GUARANTY" which were
already spoken of.

6. THE TURNOVER CREDIT

The bank which discounts the customers' bills handed in by the manufacturer, and which thus converts an
inconvenient means of exchange into a convenient one, does also grant CREDIT as it simultaneously discounts, i.e.
supplies IMMEDIATELY DUE SECURITIES for those which are NOT YET DUE. It gives the credit exclusively
in its own notes.
This credit is a pure goods and turnover credit since it serves not for a loan on stocks, for speculation or other
purposes, but, exclusively, for facilitating the sale of goods on short terms, i.e. for bridging the transport and sales
period. Genuine turnover credit is only granted on the proceeds of goods already sold.

7. THE TURNOVER CREDIT BUSINESS OF BANKS

While circulating, the banknotes, thus put into trading, represent the equivalent to the products sold by the
manufacturer but which have not yet got into the hands of the ultimate consumer.


41/6

When the manufacturer has sold goods for 100,000 RM (Francs, Pounds, Pesos) and, correspondingly, discounted
bills for 100,000 RM (3) then these 100,000 RM wage monies must remain in circulation UNTIL THE DAY on
which the wage earners decide upon PURCHASES in the stores. For the same period, naturally, the products
remain unsold to the ultimate consumers. On the day of the sale to the ultimate consumer, THE PATH OF THE
GOODS ENDS AND THE REFLUX OF THE NOTES BEGINS. Then the goods have been removed from the
storekeepers' shelves and require no further financing. The storekeepers use the banknotes received to pay the
WHOLESALERS from whom they received the goods and the wholesalers pay with these receipts the
MANUFACTURERS who, in turn, and with these means repay their credits from the bank.

Hence the circulation period of the sold goods BEGINS approximately when the corresponding wages are paid and
it ENDS through the transfer of the goods into the hands of the ultimate consumers, exactly AT THE POINT where
the notes in the pockets of the wage earners are spent and begin their reflux.

The circulation period of the goods and that of the commercial bills, that is, the length of the goods credit and the
circulation period of the banknotes, must therefore have been approximately EQUAL in the classical banking ideal.

By this correspondence of the origin of the goods with the origin of the money circulation, and of the end of the
goods with the end of the money circulation, which was always DEMANDED by the BANKING THEORY and
which was realized by the practice of the Reichsbank                   until1914 (4), a MUCH MORE PRECISE
QUANTITATIVE REGULATION OF THE MONEY CIRCULATION is achieved, as well as a much more
certain exclusion of unsuitable credit demands, than con ever be offered (5) by the CURRENCY THEORY and the
policy to stabilise the price level, especially after the ruinous experiences of the last few years.
IT IS THUS THE TASK OF SUCH A BANK TO GRANT THE BILL CREDIT FOR JUST AS MANY DAYS
AS THE NOTES USUALLY REMAIN IN THE POCKETS OF THE WAGE EARNERS (which depends on the
distribution of the household budget expenditures over the whole wage period), PROLONGED BY THE PERIOD
REQUIRED FOR THE REFLUX OF THE NOTES FROM THE STOREKEEPER TO THE BANK.

Should the wholesaler, or any other link in the chain, feel inclined to temporarily invest the money received, then
the maturing of the bills will prevent him from obstructing the rapid reflux of the notes.

Many bank directors of today will, it is true, not want to admit THAT TODAY ALSO the activity of the credit
bank ought scarcely to differ from this process - as will soon be shown. For then they would confess that their own
operations with parcels of shares, large scale credits and other "transactions" have not the significance which one
would like to ascribe to them.

8. THE REDEMPTION OF THE BANKNOTES ISSUED

With what means, therefore, does this ideal turnover credit bank redeem its banknotes?
Not by keeping a gold treasure in readiness, like a goldsmith's bank which issues gold deposit certificates in the
speculative hope that the bearers will hold on to the notes for a long time (Bank of England) - but, simply, through
a kind of WITHDRAWAL WHILE RETURNING THE BILLS OF EXCHANGE RECEIVED. This withdrawal is
nothing but the reversal of the exchange act which was first undertaken. The credits were granted for the period
corresponding to the movement of the goods from the manufacturer into the hands of the ultimate consumer. They
become due when the stocks of goods are sold. The manufacturers are also ready and forced to repay them
(because they must have sales receipts and must redeem the discounted bills), and the bank does nothing else but
merely reverse the initial exchange.

Upon return of the banknotes, it surrenders the now paid for bill documents. IT EXCHANGES THE
BANKNOTES INTO BILLS OF EXCHANGE. AFTER, PREVIOUSLY, HAVING CHANGED THE BILLS
INTO NOTES, THAT IS, IT UNDERTAKES A RETURN DEAL.

Provided, it issues all notes in the indicated manner then it requires no gold reserve.

The note circulation is sound if the bank declares itself willing to accept its own notes in this way, in all payments
to itself and at any time, and if, moreover, it takes care that continuously as many payments as possible are to be
made to its cashiers - by granting SHORT term credits and credits exclusively upon sales proceeds and to sound
debtors only.

The secret of the value of such free notes lies in the continuous DEMAND for them - because notes are
continuously needed for making due payments to the bank.

41/7

9. THE NOTE CREDIT AS EXCHANGE OR CONVERSION CREDIT

According to the admirable classical system, a turnover credit is thus merely an exchange or conversion credit in
which inconvenient means of payment are transformed into convenient ones or claims from sales are transformed
into claims against a bank. All the disturbances under which today's credit system suffers, cannot happen under this
system as discount or exchange credits, to state it again, are only granted for as many days as are needed to get the
goods from the sale at the factory into the hands of the ultimate consumer. This period coincides with the number
of days for which the wage earners retain the banknotes in order to have enough means of payment until next pay
day.

10. THE SOURCE OF TURNOVER CREDIT

It is thus ALL NOTE HOLDERS TOGETHER who finance the whole goods turnover from the producer to the
consumer. The note holders, between them, have in this always as much purchasing power as there are goods in
transit and in the hands of the wholesalers and retailers. Through holding the notes, the note holders extend to the
banks as much credit as is required for financing the passage of these goods.
With the spending of every 100 RM (Francs, Pounds or Pesos note by the note holder, in the stores, the equivalent
of 100 RM worth of goods are paid for and require no longer any financing. The note circulation is,
correspondingly, reduced and, lastly, the credit to the bank and by the bank is reduced by 100 RM.

Thus the goods turnover is financed from a source which is ADEQUATE regarding amount and duration and is
inexorably correlated to the yield.

11. ELASTICITY AND PREVENTION OF ABUSES

Always as much money is issued under this system as goods are produced and, continously, as much money is
withdrawn from circulation as goods are consumed. It need never happen that goods in all spheres are
simultaneously unsaleable due to there being not enough money around because any "increase of the quantity of
money would bring the danger of inflation" etc. Here we can never have either a shortage or an excess of turnover
credit because RISING SALES by manufacturers PRODUCE also additional bill material and additional amounts
in banknotes, in the pockets of additionally employed labourers, during the payment period, and vice versa, - if
only no serious technical mistakes are made.

DEFLATION is not possible under this system since the banks will compete with each other to grant advances
upon the rather limited genuine claims out of goods sales, with the result that the interest rates for sound credits
cannot rise by much above the handling costs of the banks.

An EXCESS is likewise not possible, in spite of the absence of a metallic cover, for on the same day that the notes
return, the advanced sales proceeds of the goods also arrive at the bank. On this day the notes are returned to the
bank by people who want to repay credits just due to be repaid. The notes are RE-EXCHANGED just like
mortgage bonds of a mortgage bonds are credited on the current account of a mortgage debtor, when he hands them
in for amortisation purposes.

ONLY A CREDIT TRANSFORMATION, NOT A CREDIT CREATION occurs. The mortgage banks are
likewise incapable of producing an inflation, if they do nothing but transform difficult fungible mortgages into
easily fungible mortgage bonds, thus giving an existing claim a better form. Every abuse, every step beyond this,
spells INFLATION.

Apart from credit transformation there exists only the credit creation which is ALWAYS inflationary. Only the
absolute restriction to transformation excludes inflation. (On the qualification on this statement see below. Legal
tender is required to inflate a paper currency. Otherwise this "creator" creates merely a discount of his currency. -
J.Z., 26.12.02.)

12. EXCLUDING THE DANGER OF INFLATION THROUGH THE PRINCIPLE OF A FREE MARKET RATE
FOR MEANS OF PAYMENT, THUS AVOIDING COMPULSORY ACCEPTANCE AND FORCED VALUE
(LEGAL TENDER).

This restriction to transformed credit requires effective safety measures so that it does not remain a mere idealistic
principle with compliance being left to the good will and discretion of the banker. The Scottish system recognises

41/8

the weakness of men and is distinguished from all other systems by technically excluding inflation through an
organisational measure, i.e., THROUGH THE FREE MARKET RATE FOR BANKNOTES, which is the opposite
of compulsory acceptance and forced currency (legal tender), both of which are not improvements but a
"deterioration" of banknotes.

Once the bank issues TOO MANY banknotes, i.e. as soon as it makes advances upon other claims than for the
purchase price claims from goods sales, or grants longer credit periods, it can no longer redeem the notes by
re-exchanging them. Then it must try to pay with somehow obtained cash means, gold, foreign exchange etc., when
the notes return. When this abuse reaches noticeable proportions, then the notes are depreciated (discounted) as the
necessary demand for them is no longer achieved by sufficient maturities of bills. The notes of this bank depreciate
by comparison with other sound means of payment in the country. They are then only reluctantly accepted and only
at a discount at perhaps, 90 % or even 70 % of their nominal value.
Such a bank could not grant any new credits at all as the debtor would receive only 70% and would risk having to
repay the depreciated credit at 100% and, moreover, his labourers would refuse to accept as bad means of payment.
One would refuse to accept such notes like one refuses to accept cheques drawn upon an insolvent bank.

(Note by JZ: Here Rittershausen seems to overlook the other side of the coin: A new debtor does not have to take a
loan of 100 RM in these banknotes as a loan of 100RM, reckoned in stable value RM, but e.g. only as one of 70
RM, if this rate corresponds to their exchange rate on the market. Naturally, he could also altogether refuse these
notes. But he would not be likely to do so in our example. Seeing that the issuer has to take his own notes at any
time at par (otherwise he would be liable to fraud charges), the debtor could immediately repay his 70 RM - in
stable RM - with a mere 70 RM - in nominal values - of these depreciated notes, thus leaving the bank with a
loss of 30% and him with a profit of 30 RM - in, admittedly, depreciated - notes. This, probably more than the
reverse, would prevent the bank from over-issuing - in its own interest!)

Such a system is only feasible when several note-issuing banks exist parallel to each other and when, apart from
the banknotes, also sound coins and State paper money circulate. It existed, in almost all countries of the world, for
more than 100 years.
(Note by JZ: The sound coins could be private ones. Likewise, the sound State paper money could be replaced e.g.
by sound private local currencies made of paper. What is really necessary for the development of a free market rate
of means of exchange, is only stable value reckoning. This could, for instance and for the time being, be achieved
by a free gold market, freedom for pricing in gold weight units and a free market rate for all exchange media which
transfer such gold weight values.)

13. PROVISION OF EMPLOYMENT THROUGH TURNOVER CREDIT

       OR THROUGH INVESTMENT CREDIT?

Time and again we meet the assertion that the provision of employment through sound exchange of consumer
goods by means of credits would act inflationary. This question is, therefore, of decisive importance.

If one will not or cannot employ labourers through investments by means of latent capital formation then,
obviously, one must achieve that the unemployed produce themselves those goods which they want to consume
and, furthermore, that they are placed in a position where they can consume what they have produced. For this only
sound banks and turnover credits are prime necessities. Means of production and tools are mostly available in
abundance, in the form of shut-down factories etc. Moreover, the still operating factories and agricultural
enterprises would gladly engage unemployed, if sales were no problem. And additional sales would begin from the
moment the unemployed are set to work in these factories - because from then on they would receive wages and
additional income which they would spend (thereby giving orders).

Such income would, in the meantime, consist in the advances of the banks, until the money circuit is completed,
the goods circulation made possible thereby, the money has flown back to the issuing bank and the goods are
consumed.

Advances and banknote issue must precede. They cannot follow the turnover of goods, for otherwise, because of
lack of means of exchange, there would be no such goods turnover.

Once the money circle is closed and the goods are consumed, then this game can begin anew. Thus a continuous
process of exchange is begun whereby in most countries more than 3/4 of the population live:

41/9

Namely from the mutual production for one another, from the mutual sale to one another.

Although in most countries the present crisis was probably initiated by a disturbance of the process of investment
and capital accumulation, it has, nevertheless, been greatly aggravated by the subsequent increasing disturbances of
the turnover and ex-change process.
Every attempt to provide employment in this way is, usually, thwarted by the argument that inflation would occur.
This is all the worse as this way of providing employment is, obviously, the easiest and most natural one. It does
not require any long-term indebtedness with all its dangers. Neither customers nor banks run greater risks: the
turnover credit is usually repaid within a few weeks. The unemployed are not employed just ONCE for one or two
years, for an expenditure of several milliards, instead, they are PERMANENTLY RE-INTEGRATED in the
natural process of production.

That a healthy process of capital formation and investment is always continuous but works over longer periods of
time, the author has shown in his monograph "Arbeitslosigkeit und Kapitalbildung (Unemployment and Capital
Formation ), Fischer, Jena, 1930. But there the continuity is more difficult to recognize, more dangerous and less
popular. This is one reason to PRIMARILY restore the turnover process, the basis of our whole economic life, the
precondition for the activity of saving and investing.

14. THE CONCEPTS "VALUE STANDARD" AND "FORCED, CURRENCY" (LEGAL TENDER)

To understand the argument of a danger of inflation, which is always upheld against any provision of employment
by means of organising the turnover credit, we have to briefly analyse these two basic concepts and to call attention
to certain aspects which were no longer sufficiently observed by the schools of monetary boom and bust theories of
the last few decades, no matter how dominant they had been before the war in all large countries of the continent,
from Germany to Spain.

The VALUE STANDARD is no more than the legal declaration that the legal unit for measuring values is called
this or that name, say Reichsmark or Peso, and is equal in value to so or so many grams of fine gold. The best
parallel for this is the MEASURE OF LENGTH called the "metre", which is equal in length to a bar of platinum
kept in a deep cellar in Paris. All metre measures the world over which are longer or shorter than this bar are
wrong. They are not metres. Likewise, all Reichsmark notes which are worth less or more than the determined
amount of gold, are wrong and are not Reichsmark. In this simple situation it seems inconceivable how an inflation
is possible at all.

But even this is explained by the metre parallel. If the government, e.g. in order to aid the textile industry, passed a
law that a metre measure need merely be made of PINE-WOOD in order to be a legal metre measure (Forced
Metre), then the inflation begins. Then the dishonest merchant, who would cut a piece from this metre measure off,
in order to receive more money for the same bale of cloth, could no longer be prevented from doing so, for in every
prosecution the court would have to admit that the quantity of the cloth was correctly measured inasmuch as the
legally prescribed pine-wood metre was used. This economic abuse would not at all be stopped by e.g., breaking
the platinum bar in Paris (or by abolishing the gold standard), BUT, EXCLUSIVELY, BY REVOKING THE ACT
WHICH CONFERS LEGAL MEASURING POWER TO ANY OTHER METRE MEASURES THAN THE ONE
ORIGINAL METRE IN PARIS.

(Note by J.Z., 26.12.02: In this version this is not a good analogy. Wooden, plastic, cloth and steel tape meters are
extensively used and mostly reasonably accurate. Shortening would be noticed because they have millimetre and
centimetre markings and because numerous competing measures are owned by the buyers. Thus a cheating
merchant would soon be found out and denounced and might lose his business. Without legal tender the cheap
length measures are, nevertheless, good enough & voluntarily accepted substitutes length measures for most
purposes, just like the agreement upon a gold weight unit for pricing and clearing only, would be a good substitute
for a gold coin or gold bar of the same weight. Thus the single metre standard, in rare metal, can be cheaply and
effectively substituted by millions of meter measures made out of cheap materials, serving many of the length
measuring requirements of the world, while the single and original one in Paris could serve only for a small
fraction of all needed length measures. The rare metal original does not have to be present for all or even any
transactions, except a standard for checking cheap substitutes that are mass produced. Even this checking is done
mainly with cheap substitutes. It does not have to be used in payment. Nor do accurate gold weight units have to be
stored by issuers as a security or redemption fund somewhere. A free gold market would be enough to test the
value of any paper currency reckoning in gold weight values. Through the free gold market the whole stock of
gold, that is on the market at any time, could serve as a "redemption fund", while the issuer need neither possess
any and nor redeem any of his notes with gold - but just with goods, services and receipts for the payment of other
debts owed to him. Legal tender for shortened length measures would permit a government to pass as metres
deteriorated length measures of, say, 95 cm, 90 cm or even less. The fraud involved would be so obvious even to
not so intelligent people, that it could not be continued for long, as can be a depreciated and depreciating paper
value standard under legal tender and the issue monopoly.)

Likewise, INFLATION OF MONEY CAN ONLY OCCUR WHEN ONE CONCEDES CERTAIN PAPER
MEANS OF PAYMENT THE LEGAL TENDER CHARACTERISTIC according to which they have still to be
taken as 100 even if their value is only 90, i.e. when money is given FORCED CURRENCY.

It is inconceivable how the original metre in Paris could be changed by some ironmonger selling spurious metre
measures. Likewise, I could not understand how the gold currency of a country could be inflated by some bank
issuing private notes that are worth only 90 or 80. Certainly, the note-holders can be cheated - but a general price
increase cannot happen. At most, when no redemption is provided, everyone would hurry to bring the notes TO
THE BANK for payments (at their nominal value) and the bill debtors of the bank would express a keen demand
for these notes.

However, if the bill is bad, the bills had to be continuously prolonged - because the bank had issued notes on long
terms, or the debtor got into undisclosed payment difficulties, then there is no application for such deteriorated
notes, NO DEMAND for them, which could raise their exchange rate to par within a few hours. Instead, a lasting

41/10

discount occurs - as we have seen in the history of the note-issuing banks, again and again. The bank is then
paralysed. It is ripe for liquidation and other banks take its place.


15. A DANGER OF INFLATION IN PROVIDING EMPLOYMENT EXISTS ONLY

        WHEN THERE IS A FORCED CURRENCY

This principle cannot be stressed enough against the argument that inflation would threaten. All accessory means of
payment which are not legal tender can, in case of abuse or over-issue, only ruin themselves but never the legal
currency. The problem of a double currency can also no more arise among such free means of payment than with
payment by cheques.

Value standard and means of payment should be sharply distinguished.

Gresham's Law applies only to the coexistence of two inconvertible forced currencies and not to means of payment
with a free market rate.

With non-compulsory private means of payment one can no more inflate THAN ONE COULD DESTROY THE
VALUE OF SHARES ON THE SHARE MARKET WITH DEPRECIATED SHARES. If Mr. L. issued 100
million Reichsmarks of worthless shares of a "Gigantic Share Company", and if he found buyers, then these
unfortunate people have certainly lost their money. But it would not be obvious how the market price of IG Farben
or Rio Tinto shares could possibly be reduced thereby. On the contrary, this instance demonstrates that the IG
Farben Share would only be ruined if the government passed a law to give the Gigantic shares legal tender, if, to
stay with our image, it declared these shares to be DELIVERABLE FOR IG FARBEN SHARES. Then,
indeed, the IG Farben shares would fall very much and then Gresham's Law would also come into operation The
old and genuine IG Farben shares would disappear from the market.

Exactly as on the share market, so also on the money market (for banknotes etc.), the multiplication of redeemable
money substitutes can never depreciate the currency (valuestandard). This followed already from the example of
the metre measure.

The great money theorists have expressed themselves unambiguously on this subject:
Compare, among others, Knapp, "Staatliche Theorie des Geldes (State Theory of Money, 4th. edition, p. 161,
von Mises, "Theorie des Geldes und der Umlaufsmittel" (Theory of Money and of Circulating Media ), 1924,
p.331, Adolf Wagner, "Zettelbankpolitik" (Banks of Issue Policy), 1873, p. 36, Lexis, "Handwoerterbuch der
Staatswissenschaften" (Encyclopaedia of Social Sciences), 3rd. edition, article "Cheque" etc., Carl Menger, ibid,
article "Geld" (Money), vol. IV, pp. 601-603, J .G. Courcelle-Seneuil, "La Banque Libre" (The Free Bank), Paris,
1867, Horn, "Bankfreiheit" (Free Banking ), 1867, - it was also published in French, de Viti de Marco,
"Finanzwissenschaft (bei Staatspapiergeld)", (The Science of Finance) (under state paper money ), 1931, see also
the Acts concerning the "Kgl. Giro- u. Lehn Banco", 1765, the Royal Prussian Bank and the Reichsbank until 1910
(continuing explicit rejection of compulsory acceptance), R. Just, "Geldinflation" (Money Inflation ), Jena, 1921, p.
113 ff., Dr. Walter Zander, "Eisenbahngeld und Arbeitslosigkeit" (Railway Money and Unemployment ), Annalen
der Gemeinwirtschaft, 1934, vol. 1, U. von Beckerath, "Die Durchfuehrung der Vorschlaege von Milhaud", (The
Realization of Milhaud's Proposals), ibid, 1934, vol. X/1, Henry Meulen, Industrial Justice through Banking
Reform, London,1917, etc.
Even Lord Overstone has said:
        "When I mismanage my private bank then I am ruined but the public will suffer only little. But if the Bank
        of England makes a large mistake, then the bank can, indeed, save itself" (with the aid of legal tender - the
        author) "but extensive harm is caused for the whole community."
        (Note by JZ: The last quotation is re-translated from German into English!)

A revival of the theory of a free market rate for means of payment appears, therefore, urgently necessary - in the
interest of providing employment. Probably the period from 1815 to 1844 in England, with its doctrine resting
wholly on legal tender, was as much a temporary error in the history of money as the after war period which we
experience now.
The above named authors! whom we cannot quote here for lack of space, bring convincing and astonishing proofs
for this supposition.

41/11

16. THE GIRO TRANSACTIONS AS THE COMPLETION OF THE CLASSICAL SYSTEM

In principle, this originally Scottish credit and banknote system - this system of
well thought out mutual provision of jobs, does not differ from the simplest bill of exchange operations which were
our starting point. Even the GIRO TRANSACTIONS which we will now describe, amount only to a refinement
and not to a deviation from the idea that the BANKING SYSTEM IS AN ORGANIZATION FOR MUTUAL
GOODS SALES and has no other purpose than this.
("The banking system" as far as note issuing banks are concerned, issuing banknotes and other paper means of
exchange. There are several other kinds of banks for other purposes. - J.Z., 26.12.02.)

We have so far assumed in our sketch that the entire payment circle is achieved entirely with banknotes. But today
we see a large part of all payment transactions conducted in the much more simple and cheaper cash-less method of
GIRO TRANSACTIONS: The retailers, who received from the 45 milliard Reichsmark of wages and salaries in
Germany, in 1927, almost 40 milliard Reichsmark, do not attempt to bundle up these notes and dispatch them by
registered mail to their suppliers (usually in other locations). Instead, THEY PAY THE DAILY TAKINGS
ALREADY ON THE NEXT DAY into the nearest deposit and cheque bank and use the credit balance thus gained
FOR TRANSFERS TO THEIR SUPPLIERS. While formerly the circuit for about 90% of the circulating cash ran
as follows:

PART 1: Bank - pay office of the manufacturer - wage earner - shop,
PART 2: Shop - wholesaler - manufacturer - return to the bank,

today only the first part of this circuit is undertaken by the cash circulation as already the shopkeeper returns the
notes to the bank and thereby ends the note circulation. Indeed, the retailer does not deposit this money into the
account of the MANUFACTURER, who was debited with the turnover credit when the banknotes were originally
issued, but, instead, he deposits them on HIS OWN account. Thus, with this deposit, the credit transaction is not at
all finished but merely transformed. In this way the GIRO DEPOSITS at the bank RISE by exactly the amount that
the banknote circulation was diminished on the same day. With the additional deposits the credit grant is
CON-TINUED. These new transferable deposits, taking the place of the second part of the of the classical circuit
scheme, now WANDER, in form of bank transfers, THROUGH a long chain of bank accounts of the suppliers and
sub-suppliers, until they arrive at last at the account of the original manufacturer. With that the bank credit which
originated the banknote circulation is repaid. Simultaneously, the giro deposits drop to the original amount.
Detailed researches showed that the cash circulation in Germany lasts today about 11 days and the subsequent giro
circulation through the various clearing networks, another 15 days. Thus the CREDIT LIMITS of the banks for
such credits should, in the average, be set for about 26 days.
Thus it is no longer all banknote holders together who today, by their possession of the notes which represent a
credit grant, finance the goods circulation in an elastic way. Instead, almost 3/5 of the credit sphere does now
originate from the owners of actually continuously turned-over giro accounts.

NOTE circulation and giro accounts COMBINED, however, have remained as elastic as, previously, the note
circulation was on its own. Both ARISE from a TURNOVER CREDIT and DISAPPEAR through its
REPAYMENT. Both are independent of the amount of savings deposits and of capital accumulation in a country
and, also, independent from the intake of foreign credits. It is thus incorrect to speak of the necessity to accept
foreign turnover capital. Both (note circulation and giro accounts), do not represent a fundamental change
compared with the previous simple bill of exchange circuit but merely a refinement.



B) THE GRADUAL DESTRUCTION OF THE CLASSICAL SYSTEM,

        FROM 1909 TO 1932, AS CAUSE OF THE DIFFICULTIES

        ENCOUNTERED IN RE-INTEGRATING THE UNEMPLOYED

1. CULMINATION AND DECLINE OF THE CLASSICAL SYSTEM

With the development of the GIRO AND CHEQUE TRANSACTIONS (which, however are yet capable of a large
expansion as should be stated here quite expressly), the classical system could be considered as essentially
COMPLETED. It was working for more than a century in Europe without leading to serious inflations or abuses. It
has survived economic CRISES like that of 1857, which were equal to the present one. It has, therefore,
undoubtedly, PROVEN itself.

41/12

How the decline and fall of this once famous system is to be explained may here remain undiscussed. It happens,
indeed, quite often that too great successes lead to stagnation, to a replacement of leading personalities by mere
representative people - until it is almost too late, even for the best manager, to save the old system.

2. THE OBSCURATION OF THE CLASSICAL BANKING CONCEPTS

    THROUGH THE SEPARATION OF FUNCTIONS BETWEEN NOTE AND DEPOSIT BANKS

We will confine our description to the German conditions. This development went on in England, France, Spain,
Italy and the U.S. almost exactly alike, as the reader can easily ascertain. Just as with the rise of the system, so also
with its decline - only the general outlines of developments can be described here as the intention is ONLY to point
out THE TEACHINGS of this great development over a century, the lesson for the catastrophic position of the
banks AT PRESENT.

The first downward step is certainly to be seen in the SEPARATION OF THE NOTE ISSUE from the deposit bank
business, by which our present-day banking operations are already externally distinguished from the Scottish Bank
System. With this we come to the CENTRAL NOTE-ISSUING BANKS, today existing in almost all countries,
and regarded as an untouchable achievement of the human spirit, but which, perhaps already in 50 years, will be
abandoned in the lumber room of history as a scarcely intelligible concept.

This separation of functions was essentially HISTORICALLY developed. Aside the banks of issue, which
discounted bills and also accepted deposits, there arose, in most countries (6) large JOINT STOCK BANKS which
practised the deposit business and, as a counterpart, also the current account credit system (originally as an open
financing of turnover without the bills of exchange discipline) and they DEVELOPED OVERPOWERINGLY.
Naturally, they could only finance the last 3/5 of the goods turnover according to the classical system, as they could
only seize for themselves the CASH-LESS part of a portion of the payment transactions. With regard to cash they
remained dependent on the banks of issue.

(Note by JZ: 1 suspect that the growth of the banks of issue was retarded largely by the convertibility requirements
imposed by the Currency School - which also led to a much smaller involvement in the growth of the clearing and
transfer transactions.)

Thereby the simple structure of the classical system was OBSCURED for the first time. The banks of issue thus
became "banks of banks". Today they issue about 80% of their notes no longer to businessmen whose orders for
raw materials and goods turnover they can clearly see in their accounts, but to BANKS which assure them that the
NAMES of the bill debtors SOUND so well that they would even "unseen" stand surety with their endorsement, an
assertion that has ALMOST NOTHING TO DO any longer with the INTENDED TURNOVER OPERATION and
with the TRANSFORMATION OF SALES PROCEEDS into means of PAYMENT. It already embodies the fatal
substitution of the security principle for the turnover principle.

Moreover, the large deposit banks do not present ALL goods bills to the central bank but merely some and this
sporadically, when they are in need of cash. Thus the note issuing bank has lost all effective control.

Finally, the deposit banks offer their customers convenient current account credit and hence the businessmen have
forgotten how to pay with bills of exchange - while the note-issuing banks continued to insist upon the old
principle of commercial bills. Thus the banks of issue had finally to be satisfied with receiving obvious finance
bills as the good bill material had become very rare.

NOW THE BANK OF ISSUE HAD TO ATTEMPT TO "FEEL OUT" (7) THE PROPER QUANTITY OF
NOTES AS IT HAD LOST THE DIRECT CONTACT WITH THE EXCHANGE PROCESSES OF THE
BUSINESS WORLD. INSTEAD, IT BECAME A CASH SUPPLY CENTRE FOR THE LEADING BANKS. Not
the bank of issue determined how much it should issue but the leading banks fetched as much as they just needed.
BUT WITH THIS ONE ARRIVED AT THE BORDERLINE OF THE NOW ENDLESS AND NOW
RESTRICTED ISSUE OF NOTES WHICH IS CHARACTERISTIC FOR THE PAPER MONEY THAT, IN
CONTRAST TO BANKNOTES, HAS RIGHTLY GIVEN THIS DANGEROUS TYPE OF MEANS OF
PAYMENT A BAD NAME and which is an obstacle to the provision of employment.

41/13

3. THE CENTRALISATION OF THE SYSTEM OF NOTE ISSUE AS AN INDICATION

    FOR THE TRANSITION FROM BANKNOTES TO PAPER MONEY

Hand in hand with this development ran the centralisation of the system of note issue. The State entered into close
relations with one of the note issuing banks. He gave it privileges and entrusted all its payment transactions to it
and accepted its notes at its pay offices. The notes of such a bank were bound to gain an unsound diffusion. They
were NO LONGER EXCLUSIVELY based upon the fact that the institution EXCHANGED the new sales
proceeds, daily arising from the continuous sales of the whole production, or rather the bills based on this, into a
more convenient means of payment, but also, to some extent, upon the CREDIT OF THE STATE. This bank
became the "central bank of issue" while the other banks of issue either disappeared or became insignificant.

THIS MONOPOLISTIC SYSTEM which in such purity exists in no other sphere, could never have maintained
itself if it had not offered - not to the State as a community of people - but, instead, to the STATE AS THE
EXCHEQUER, IMMENSE ADVANTAGES.
FR. KNAPP described the frequently recurring cases in which the State, in its emergencies, EXPLOITS THIS
RICH BANK AS A SOURCE OF CREDIT:

        "When this bank, semi-coerced, grants its "guardian", the State, large credits, which have nothing to do with
        the goods turnover, the question arises: '... HOW CAN IT REDEEM THE BANKNOTES
        FURTHERMORE? IT IS IMPOSSIBLE.' "
        (Because the State cannot repay on the day the notes are presented for payment, i.e. after about 26 days.)

Knapp continued:
        "This is well understood by the State. Accordingly, it decides, first by decree and later by law: The bank is
        released from the obligation to redeem."

The State then declares
       "these notes to be legal currency (equal to LEGAL MEANS OF PAYMENT) ..."

Thus these notes get LEGAL TENDER for all payments between private people. Through this highly noteworthy
process, which is usually only seen as a terrible accident, the cool observer can state the following: Money
transactions do not come to an end although the currency HAS CHANGED ITS CHARACTER. IT DOES NO
LONGER CONSIST OF SPECIE BUT OF PAPER. THE STATE HAS FALLEN INTO THE PAPER MONEY
ECONOMY" (8 & 9)

The legal tender money represented by such "banknotes" with forced currency, obeys quite different laws than the
genuine turnover bank money of the private payment community which has been described by us. In particular, IT
CAN BE MULTIPLIED WITHOUT LIMITS AND IT CAN BE FORCED UPON PEOPLE AND IT IS THUS
EXTREMELY DANGEROUS WITH REGARD TO INFLATION.

4. THE FALL OF THE CLASSICAL SYSTEM THROUGH THE

   ABANDONMENT OF CONVERTIBILITY AND THE

    INTRODUCTION OF A FORCED CURRENCY (LEGAL TENDER)

Thus F. Knapp, the past master of German monetary theory, has described also for those, who cannot always
follow his views, in a convincing and impressive manner and already a decade before the war, the approaching
downfall of the classical credit system which, not so long afterwards was realized in Germany and in almost all
countries, France excepted. Germany declared by an Act in 1909 the REICHSBANK NOTES TO BE LEGAL
TENDER. Hence anyone had to accept them, nilly willy, at 100% . From then on no one could refuse them even
when they were worth less than the gold value of the creditor's claim. The REDEMPTION OBLIGATION, this last
weak barrier, fell later, in 1914. After the war, during the period of reconstruction of the German economy,
precisely when a return to the sound pre-war principles would have been most advisable, in order to expedite a
healthy recovery and to avoid spurious credits and non-transferable reparation payments, one has not even
recognized the need to get away, again, from legal tender. The author has not heard of a single case of such a
demand having been made.

The less important redemption obligation existed for little more than one year, from 17/5/1930 to 13/7/1931, at a
time when the German credit system already threatened to break apart under the burden of the unbearable short
term foreign indebtedness.

In such a desperate situation the redemption policy was unable to develop its healing powers - as the free market
rate and the understanding of it were missing.

41/14

5. THE ABANDONMENT OF THE REDEMPTION OBLIGATION AND ITS CONSEQUENCES

As long as the redemption obligation existed, or, to quote Knapp again,



        "as long as the bank is obliged to redeem its notes in money issued by the State, the State need take no
        further steps to keep the banknotes in their accessory position." (10).

Thus all other precautionary measures against the danger of inflation were superfluous because inflation is only
possible under the rule of legal tender.
(Note by JZ: If the latter is true then rare metal redemption by the issuer, like other precautionary measures, is also
unnecessary.)

Now, after the ABANDONMENT OF CONVERTIBILITY of the notes, SPECIAL BRAKES BECAME
NECESSARY: THE GOLD BRAKE or gold cover, the unreliable and always lagging PRICE STATISTICS and,
finally, after these have become unsuitable, the foreign exchange brake. With this the classical concept, whose
renewed realisation is so necessary today, which sees in the money and credit system an aid to the goods turnover,
has become ABANDONED AND A QUITE DIFFERENT KIND OF MONEY has been raised to the throne, i.e.,
PAPER MONEY as opposed to the banknotes. It is a peculiarity of paper money to fluctuate widely and without
any stability between inflation and deflation. Only paper money can be subject to the excesses which we
experienced in the years 1923 and 1931/2. Moreover, paper money deals with the financing of turnover only, so to
speak, by the way, without achieving substantial results.

6. THE IDENTITY OF THE RULE OF LEGAL TENDER,

    THE CENTRAL BANKING CONCEPT AND INFLATIONISM

This dangerous and economically condemnable regime of legal tender (11) would never have been resolved upon if
it had not, apart from its advantages for the Exchequer, one characteristic which defeated all objective
considerations:
According to the dominant view the FINANCING OF WAR was impossible without a "strong bank of issue".
Accordingly, in Germany in the year 1909, following the precedent set by other countries (12), as a preparatory
measure for the possible war, the REICHSBANK NOTES WERE DECLARED LEGAL TENDER. Again and
again and in all countries, during discussions of the central bank problem, it was stressed how important a strong
central bank of issue would be in case of war. With this argument the purely economic arguments, which mostly
favoured decentralisation, were silenced, in all countries. (13)
In reality, the FREE NOTE-ISSUING BANKS were, in case of war NOT 'STRONG',' MERELY BECAUSE
THEY COULD NOT CAUSE AN INFLATION. THEY COULD not give the State any war credits because four
weeks later they would have gone bankrupt because of this inflationary abuse.
It was overlooked that, according to Frh. von Stein (1812), we have, in a properly managed STATE PAPER
MONEY WITH A FREE MARKET RATE, a much stronger and a harmless means to finance war.

(Note by JZ: Here it should be admitted that a large scale and unpopular war could be easier financed with inflation
because thus its true costs could be better hidden from the population. Naturally, for the peaceful man this is only
one more argument against legal tender.)

BEHIND THE DRIVE TOWARDS A "STRONG CENTRAL BANK" THE INTENTION WAS HIDDEN TO
PRODUCE AN INFLATION, SOMETIME, and this is only conceivable when the redemption obligation is
repealed and LEGAL TENDER IS INTRODUCED. THE IDEA OF CENTRAL BANKING AND
INFLATIO-NISM ARE IDEOLOGICALLY AND HISTORICALLY INSEPARABLE. It is thus not surprising
that Cassell and more and more representatives of the central banking system do recommend today the abolition of
the gold standard and thereby publicly reveal themselves as inflationists. Every radical opponent of inflation must
lastly also be an opponent of a "strong central bank" because this inevitably seduces into a legal tender regime and,
thereby, into inflation. Likewise, he must wish for a restoration of the currency conditions prior to 1910, when the
German economy, not without reasons, passed through an unprecedented period of prosperity without being
threatened by inflation.

41/15

7. AFTER THE FALL OF THE BANKS FOLLOWED THE

    DESTRUCTION OF THE GERMAN MONETARY SYSTEM -

    BY THE CHANGEOVER FROM MONEY BASED ON COMMERCIAL BILLS

    TO MONEY BASED ON FINANCIAL BILLS
This long prepared decline was followed by a CATASTROPHIC BREACH which is now to be described. Until the
summer of 1931 the Reichsbank complied with the paragraphs 28 and 25, sections 6 and 21 of the Bank Act which
limited the activity of the Reichsbank quite definitely, namely, in essence, to the discounting OF BILLS OF
EXCHANGE MATURING IN AT MOST THREE MONTHS. Aside from gold, and cheques in transition! these
ALONE WERE PERMITTED AS COVER FOR THE NOTE ISSUE.
Par. 28 runs:
        "a) Gold cover of 40%.
         b) For the remainder, discounted bills and cheques which satisfy the requirements listed in par. 21."

This Par. 21 determined, at the end of section 2:
       "THE BILLS DISCOUNTED BY THE BANK SHALL ONLY BE GOOD COMMERCIAL BILLS."

Dr. Hjalmar Schacht commented upon this important clause in his Commentary, on p. 142, as follows:

        "With regard to the purpose of the banks of issue, the previously applied principle that the bills discounted
        by the bank must exclusively be good commercial bills, has been expressly laid down in the new Bank Act.
        Thereby the Bank is PROHIBITED from discounting any other bills, e.g. the so-called FINANCE OR
        CREDIT BILLS or of bills which are drawn for speculative purposes."

The penal clauses also refer to these two paragraphs, thereby stressing their importance still further.

CONSEQUENTLY, the Bank Act allows ONLY TWO KINDS of banknotes which we may name, with G. Ramin,
in order to state the subject quite plainly, GOLD MONEY AND COMMERCIAL BILL MONEY. (14)
This does also correspond to the terminology of paragraph 28.

CONTRARY to these provisions, since the credit crisis of 1931, THE REICHSBANK HAD DISCOUNTED
FINANCIAL BILLS to the amount of about 2,000 million Marks. This is generally known and documented by the
creation of the "Akzept und Garantiebank" (Acceptance and Guaranty Bank). These financial bills were accepted to
maintain the solvency of the illiquid credit banks which had exaggerated the deposit system. Here the Reichsbank
did not give advances upon sales proceeds but, instead, took over the illiquid assets of the large banks and savings
institutions, assets which do not liquidate themselves but require continuous prolongations, contrary to the 3
months limit. In addition, it granted the municipalities and savings institutions credits of over 1,300 million RM,
also of a long term kind. As it was not authorised to grant these credits, either, it masked these illiquid loans by
transforming them into bills and by the involvement of the "Akzept und Garantiebank" (Acceptance and Guaranty
Bank) which was especially founded to bypass the law. Thereby it offended against a further clause of the current
Bank Act: Par. 25, sec. 6 determines that the Reichsbank may NEITHER INDIRECTLY NOR DIRECTLY grant
any credits to the Reich, its component States and the municipalities, apart from a current account credit of 100
million RM and a treasury bill discount of up to 400 million RM (paragraphs 21, Nos. 2a and 3g).

Moreover, the Reichsbank neglected everything necessary to ensure the disappearance of this illegal and dangerous
financial bill money and to restore the lawful condition.

8. THE REICHSBANK IS, TEMPORARILY, THE-LARGEST MORTGAGE BANK.

    LACK OF A HEALTHY BANK SYSTEM PREVENTS

    THE RE-INTEGRATION OF THE UNEMPLOYED IN THE ECONOMY

Through the Reichsbank's ignoring, from 1931 to March 1933, the provisions of the Bank Act and issuing financial
bill money for half to two thirds of its note circulation, a prolonged moratorium for the banks was, indeed, avoided.
But this did not improve the situation of these institutions and of the industries and masses of workers dependent
upon them. The obligation towards the Reichsbank took the place of the vanished deposits. The Reichsbank thus
became, so to speak, the largest depositor of the banks and was prevented from taking action. It become
increasingly more dependent on the banks. The debtors became less and less solvent since the goods turnover
steadily diminished because the healthy turnover credit could no longer be sufficiently financed. (Compare on this
the remarks of Dr. Schacht, among others.)

41/16
Only the forced sales of the means of production themselves remained, that is of the factories and the real estate
and they would yield almost nothing and led to the total depreciation of all book values and to the greatest
discontent of the masses of unemployed which grew parallel with this development. No longer goods turnover but
real estate assets become now the basis for Reichsbank loans. Therefore, it became, for a time, the LARGEST
MORTGAGE BANK OF GERMANY and its notes at that period might accurately be called non-interest bearing
MORTGAGE BONDS in small denominations. The German banks, being dependent upon the Central Bank, were
also paralysed thereby. A BANKING SYSTEM WAS LACKING to make the circulation of goods possible and to
organise the mutual securing of employment by the people, by mutually giving orders. In consequence, under the
influence of these and the following mistakes, THE NUMBER OF UNEMPLOYED in Germany INCREASED TO
6 MILLION. If one includes the statistically not recorded and thus omitted unemployed, then one arrives at
approximately 8 million. (Compare the table below.)


                                         TABLE I
____________________________________________________________________________________________

At the close                 Number of                     Social Service Recipients                      Welfare
Total of
         of                                            Employed                        Unemployment         Crisis
Unemployed              Unemployed
                                 (1)                                  Insurance                         Assistance
(2)                         (3)

                                                                         IN THOUSANDS

 March   1931       14,092          2,317               923                1,027                4,744
 June    1931       15,253          1,412               941                1,098                3,954
 Dec.    1931       12,440          1,542            1,506                 1,697                5,668
 Jan.    1932       12,085          1,885            1,596                 1,858                6,042
 Feb.    1932       11,928          1,852            1,674                 1,994                6,128
 Sep.    1932       12,834             618           1,231                 2,550                5.103
 Dec.    1932       11,983             722           1,281                 2,800                5,103
 Jan.    1933       11,487             953           1,419                 2.860                6,014
 Feb.    1933       11,533             942           1,513                 2,880                6,001
 June    1933       13,307             416           1.310                 2,430 (4)            4,857
 Oct.    1933       14,063             317           1.072                 1,487                3,745
 Nov.    1933       14,020             345           1,058                 1,434                3,715
 Dec.    1933       13,020             554           1,175                 1,410                4,058
 Jan.    1934       13,518             549           1,166                 1,317                4,058
 Feb.    1934       13,690             419           1,087                 1,188                3,374
 March   1934       14,687             249              911                   984               2,798
 April   1934       15,362             219              841                   884               2,609

(1) According to the (purged) statistics of the health insurance companies.
(2) According to the local welfare associations. The number of the welfare recipients simultaneously recognized by
      the employment offices is always lower.
(3) At the employment offices.
(4) The number of the welfare-unemployed for April to June has afterwards been corrected by the German
      "Gemeindetag". Since June it does no longer include welfare and emergency programme workers.
____________________________________________________________________________________________

Of the trade union members finally more than 45% were unemployed. (They kept their wages above the market
level! - J.Z., 26.12.02.)

The causal and simultaneous connection with the degeneration of credit could be shown in details. But we will now
continue listing the phenomena in the decline of the turnover credit which caused these terrible disasters.
41/17

9. THE FATEFUL COMPENSATION OF AN INFLATION OF FINANCIAL BILL MONEY

    BY A DEFLATION OF COMMERCIAL BILL MONEY

If one had issued as much financial bill money in normal times, then an inflation would have resulted. That, at that
time, no inflation followed, is explained by the fact that a corresponding amount of sound commercial bill money
was displaced.
In order to be able to maintain the numerous rotten credits, one organized AN ABNORMAL AND
DEFLA-TIONARY RESTRICTION OF THE COMMERCIAL BILL MONEY. Since turnover credit is as
indispensable for the marketing of goods as their dispatch by railway and trucks, the goods turnover of the
economy was thereby most seriously disturbed. ONE HAD PARALYSED ABOUT ONE THIRD OF THE
TOTAL GOODS TURNOVER IN THE COUNTRY in order to be able to fulfil the categorical demands of rotten
institutions whose interests were separate from those of the whole community, and in order to save their managers,
whose debit balan-ces one could not examine because some of these personalities called themselves experts and
even resorted to scientific arguments.

Through the thus enforced unsaleability of goods, at a time of greatest unemployment, so many even of the solid
enterprises were brought to the edge of the abyss that the whole of the assets of the banks were in jeopardy. The
remedy commonly recommended by egoistic, naive and scientifically untrained "experts" proved to be a
DESTRUCTIVE MEASURE OF THE FIRST ORDER for the banks. It could not even safeguard the private
fortunes of the bank directors as the disaster assumed unexpected proportions and spread like wild fire.

It was assumed, when the financial bill money was issued, that a high interest rate would soon achieve its reflux.
Accordingly, an increase of the discount rate to 30% was demanded. In this one forgot that with FINANCIAL
BILL MONEY, which was the ultimate cause of all inflations yet experienced, the effective reflux of the
commercial bill is entirely absent since the underlying credits are economically long term ones.

The PERNICIOUS CONSEQUENCE of this false theory of the advantage of a high interest rate was that THIS
ENORMOUS DISCOUNT RATE of, at times, 15% and, later, still 10 and 7%, was ALSO applied TO THE
COMMERCIAL BILL MONEY whereby the deflationary paralysis of the goods exchange was carried still further.
Thus, by 1932, WE WERE CONFRONTED WITH THE ALTERNATIVE OF EITHER A PRIMITIVE BARTER
EXCHANGE OF GOODS or a radical break with the present system, combined with a return to proven credit
principles.

10. THE FALSE SUPPORT OF THE BANKS INCREASES UNEMPLOYMENT

The Reichsbank thus supported sick banks and gave the impression that they were backed by the Reich. This
"virtual State guaranty" led the population to withdraw, in the middle of the crisis, their balances from the healthy
banks that were actively concerned with turnover and the provision of employment. Furthermore, the healthy
enter-prises were saddled with the cost of this assistance to the banks, of over 1.5 milliard Reichsmark, through
taxation, whilst the sick banks paid almost no taxes or were altogether exempted. This penalising of good economic
conduct and of the ACTIVE PROVISION OF EMPLOYMENT WAS FOLLOWED, IN THE SUCCEEDING
YEARS, BY THE WORST CONSEQUENCES:
A large proportion, especially of the best entrepreneurs, of the medium and small scale industries, upon whom
Germany's wealth in manpower and jobs and its strength, especially in exports, had rested, were wiped out while
speculative corporations, built by economically inexpert persons, remained in operation, with greater and greater
losses, until Dr. Schacht, here also, came to the rescue in the Spring of 1933.

Dr. LUTHER had taken over from his predecessor, Reichsbank President Dr. Hjalmar SCHACHT, in Spring 1930,
a sound Reichsbank, holding almost 3 milliards in gold and foreign exchange and ample reserves. According to its
balance sheet it disposed on 31/12/1931 still over the following imposing holdings in gold and foreign exchange:

                                                    ASSETS

1. Gold holdings, unencumbered (bars, domestic & foreign coins):
    a) in the bank safes …………………………………………… 1 993 550 688.00 RM
    b) with foreign central banks …………………………………            222 230 965.00 RM
2. Holdings in foreign bills and cheques …………………………     290 733 661.00 RM
_______________________________________________________________________

                                       Gold and foreign exchange total:                 2 506 515 314.00 RM


41/18

These assets were taken over by Dr. Luther. When he departed and handed back the management to Dr. Schacht,
he left him a seriously sick institution, over-loaded with financial bills and bad credits, deprived of its reserves,
with only about 200 million RM in gold and foreign exchange left, an institution which was quite incapable to
finance the goods turnover of Germany as was its duty according to the Bank Act. Thus it was surrounded by the
greatest unemployment and numerous collapsing firms.

The Reichsbank itself, at the beginning of the bank crisis of 1931, had almost no debts and liabilities abroad, as
little as the four small banks of issue in Germany. Hence the withdrawal of credits from Germany could not affect
it at all. The majorityof the 800 private German bankers, the independent large banks of Southern Germany with
their branches (15), two large-scale Berlin banks without branches, the 2,100 co-operative banks and a large
section of the 3,200 Savings and Municipal Banks, in numbers over 90% of the German banks, were equally well
prepared to meet the foreign exchange problem arising from the sudden recall of 10,000 million Reichsmarks in
foreign bank credits.

The three large-scale Berlin banks with their 1,323 branches, a few mismanaged municipal banks and a
comparatively small number of less important institutions, had taken up foreign short-term credits on a vast scale
and had lent out these funds, against all rules, on long terms. Thus the Reichsbank and the government, in July
1931, were faced with the problem whether they should preserve the more than 35,000 sound banks and bank
branches, which regulated the exchange of goods among 20 million working people, leaving the over-indebted and
illiquid large-scale Berlin Banks with their branches to the settlement procedures of the courts, or the reverse. (16)
- See below:

According to the information published by the economic and statistical section of the Reichsbank for the Bank
Enquiry of 1933, the number of German banks and their branches was made up as follows, at the end of 1931:

                                                   TABLE          II

  Number of the German Banks               No. of the            No. of the           Total of         Grand Total
  and their branches                       Institutions          branches,            existing         at the end of
                                                                 agencies etc.        bank centres     1931
  I. Private credit banks in form of
       joint stock companies:
      1. Berlin large-scale banks
       a) without branches (sound)                        2         -                        2
       b) with branches                                   3      1,323                  1,326
      2. Other joint stock banks,
          among them 50 with                       170           1,707                  1,877
  branches
      3. Overseas branches (3) and                   65                151                  216
          special banks (62)                       800                 180                  980
  II. Private Banks, about
                                                                 Sub-total,           I & II :           4,401
  III. Cooperative banks
        (6.8 million members)
        1. Workers' banks                            82                781                 863
        2. Industrial credit coops              1,328                    -              1,328
        3.     Agricultural       credit      19,910                     -            19,910
  cooperatives
       4. Consumer cooperatives
  with                                        1,229                    -                 1,229        23,330
            savings facilities

  IV. Public credit institutions
        1. State banks & giro centres
            27 with a branch network               39                 396                   445
        2. District banks                            8                  61                    69
        3. Municipal banks                       584                    65                  649
            (& Saxon Giro centres)
        4. Savings banks                      2,570              10,510                 13,080        14.233

  Grand Total of Table II, sum of        columns I - IV,         at the      end   of
                                                                 1931:                                41,964 banks
                                                                                                      & branches


41/19

According to the amounts of the balances, the about 35,000 banks and bank branches embraced approximately two
thirds and the sick three large banks etc. about one third of all banking. The big banks had their interests
predominantly with the big firms of industry - of which there were, according to the official count of 1925, only 66,
each with more than 5,000 workers. Between them they employed only 559,000 workers whilst the total number of
those gainfully employed in Germany at that time was between 25 and 30 million.

The German Bank Act, based on the experiences gathered in crises during more than 150 years, had obliged the
Reichsbank, by its provisions and penal clauses, to grant credit only to sound banks and this only for the turnover
of goods and the provision of employment through the exchange of goods and services - and to leave the unsound
banks to their fate. However, Reichsbank and the Reich Government decided upon the reverse: They broke the
Bank Act, a protective law of the first order against such abuses. They supported the unsound banks with almost
2,000 million Reichsmark in subsidies, out of tax funds. They thereby offered a camouflaged government guaranty
to unsound banks and thus deprived the sound banks of their customers.
They declared that "Germany's" credit was at stake, that "Germany" had contracted these debts, that a "run" upon
"Germany" had broken out, whilst, in reality, only the credit of some badly conducted banks was in doubt, banks
which had bank debts abroad. These, as was only right and proper, were called on by their careless creditors in
England, Holland, the U.S.A. etc. to repay their debts. While government and people rightly fought against the
Reparations - whose goods equivalents, moreover, the creditors refused to accept - some of those interested only
joined this fight with the separate motive to conceal their state of affairs. Thus thousands of banks and bank
branches were sacrificed in order to save the few who had their hands on the rudder of the State. During the
decisive discussions the other, the healthy banks, were not consulted at all. Instead, the three sick banks were
identified with the "German banking system".

11. UNNECESSARY SACRIFICE OF THE GOLD AND FOREIGN EXCHANGE RESERVES

        INTENSIFIED THE UNEMPLOYMENT

The sacrifice of the gold and foreign exchange holdings of the Reichsbank proved soon to have been a serious
blunder. Dr. Schacht will have to work for years, with extraordinary energy and expertise, to make good this
mistake. As the few large deposit banks which were overloaded with short term foreign debts, no longer possessed
good commercial bill material in considerable quantities - which the Reichsbank, perhaps, in a liberal interpretation
of its duties, might have been morally obliged to discount, there was no reason for the Reichsbank to take over the
dubious assets of these banks and to hand over to them, in exchange, gold and foreign exchange by the milliards, in
cash, amounts which were later urgently needed by the sound economy.

After the gold and foreign exchange reserves of the Reichsbank were in this way aimlessly squandered, it turned
out that only a portion of the debts had been repaid.
Thus the calamity continued and turned into an emergency for all German banks, into a threat for the Reichsbank
and for the stability of the currency. One cannot link the fate of a bank of issue with an unsound banking group and
failing industrial corporations without jeopardising the currency and foreign exchange position.
(I hold that such reserves are not needed for a sound currency. They represent unused and wasted capital reserves. -
J.Z., 26.12.02.)
The bank of issue thus took over the debts of third parties. Without reason it took up the obligations of others - and
had to surrender for them its gold holdings. The subsequent shortage of gold and foreign exchange is not a
consequence of an unfavourable balance of trade but of the existence of matured foreign debts which one has, so to
speak, declared to be one's own, without any good reason. WITH THIS FOREIGN EXCHANGE SHORTAGE
AND FOREIGN EXCHANGE DIFFICULTIES ONE HAS THEN EXCUSED, FOR YEARS, THE FAILURE TO
ADOPT ANY MEASURE TO PROVIDE EMPLOYMENT. In these mistakes lies thus one of the so far neglected
major causes of the worsening of unemployment.
(Foreign exchange is not necessary for trading with foreign countries. One can pay with assignments upon the own
goods and services. - J.Z., 26.12.02.)




41/20

12. WHERE DOES THE INFLATION DANGER LIE TODAY?

Against the inflation argument, which is constantly used to fight the natural provision of employment by turnover
credit, one can simply say that the cart is put before the horse when the private financing of new and additional
turnovers is stigmatised as dangerous while, at the same time, the OLD credit grant system by means of the
creation of prohibited financial bill money, through prolongations, is uncritically passed over. In this situation the
only right thing to do can only be to promote the payment transactions concerned with turnover and to proceed
against the old, frozen and inflationary mass of means of payment, which is hoarded to a threatening degree, by
abolishing their compulsory market rate (legal tender) and by withdrawing them. Prof. Lexis, then advisor of the
Reichsbank, and others, had made similar observations during the crisis of 1907.

No one should be permitted to assert here (uncontradicted) that a small inflation is the unavoidable medicine and
that the proposal represented here would also amount to a minor inflation and that this should be frankly admitted.
On the contrary, inflation is a means of destruction. The applause it finds in certain business circles is due to the
fact that it makes the prolongation of bad credits possible, at the expense of the healthy requirements of turnover
credit and that it prevents clear understanding of the true causes of the disease.

13. THE AGGRAVATION OF THE SITUATION BY THE FALSE CURE OF DEVALUATION

From this general unemployment, foreign exchange crisis, illiquidity and ficticiousness of values and prices, one
should have boldly returned to the simple and solid principles of banks of issue. However, this return would have
revealed grave abuses, especially in highly respected firms. Hence, in England, the U.S.A. and in many other
States, one decided to follow the road to disaster and artificiality one step further and, thereby, to reach ROCK
BOTTOM IN THE DEGENERATION OF THE BANKNOTE ISSUE SYSTEM: DEVALUATION. The rate of
foreign exchange on foreign markets was left FREE and thus one seemingly responded to the healthy demand for
the restoration of the market. But, simultaneously, one played a trick which annulled the favourable effect of the
free market rate. This method, of a single or continuous alteration of the gold purchase rate of the central bank, has
been revived by IRVING FISHER and, unfortunately, also by I. M. KEYNES, who have therefore, apart from their
very great scientific renown, the doubtful merit of having added another link to the chain of degenerative
phenomena of the present banknote system. This method was formerly known only from the legal proceedings
taken against insolvent banks of issue.

Devaluation and free market rate are completely different. Under a pure gold currency and a free market rate for
means of payment, when a free gold market exists and the foreign exchange control is repealed, then e.g.
Reichsbank notes could be freely exported and valued. Under this system, Reichsbank notes could suffer a
considerable discount for a few days. Their only value would consist - as the redemption obligation is abolished -
in their usefulness for purchases in Germany. That would be a strong stimulus for German exports. The tariff
barriers encircling the country concerned could be partly or wholly surmounted. The market rate of the banknotes
would, to some extent, be a function of the height of tariffs of THAT country in which the banknotes are. When
tariffs are low, then one would value the notes in foreign countries, presumably, at par, under prohibitive tariffs,
theoretically, at zero. It would then be ENTIRELY A PROBLEM OF THE FOREIGNERS AND THEIR
GOVERNMENTS to give or destroy the value of the German notes held by them. Presumably, one would make
EFFORTS TO REDUCE TARIFFS, particularly in those countries which so far had prohibitive tariffs against
German goods and, at the same time, a favourable balance of payments against Germany, i.e. in countries where
one claimed payment without being prepared to accept goods.

The some applies to all debtor countries, hence, especially, to most of the South American States. Their creditors
would then, presumably, endeavour to induce their own governments to reduce the tariffs so that South American
goods could enter, in payment.

An ABUSE FOR DUMPING PURPOSES need NOT be feared for only the export of the DEBTOR COUNTRIES
to the extent of the so far unpaid DEBT BALANCE becomes possible and nothing more.
Thus the par value of the German banknotes on foreign markets would, presumably, be soon restored.



41/21

Nor could a foreign exchange shortage happen for, e.g. in the case of Germany, the "misfortune" would consist in
the fact that the foreigners could continuously raise MORE payment claims against us than we could against them.
In the foreign portfolios German banknotes, commercial bills etc. would accumulate which have value only when
something is PURCHASED with them. Thus MORE export is enforced - unless one proceeds, in the foreign
countries, to burn or hoard the German notes. Thus the free market rate turns the Reichsbank notes into Milhaud's
"purchasing certificates" (17). They help to adjust the balance of payments without the Reichsbank having to worry
about it.

HOW MUCH THIS SYSTEM OF THE FREE MARKET RATE, that prevailed before the war in almost all
countries, IS IN CONTRAST TO TODAY'S DEVALUATION, we can gather from the following considerations.
When the bank of issue grants long term credits, "internally" and especially "externally", then there are no
immediate payments due from abroad. Little comes in but much goes out. This is called a foreign exchange
shortage. The redemption in gold is then mostly abolished. Under the legal tender regime, the foreign exchange
control system is then, usually, introduced. But if a free market rate for banknotes exists - and outside a country's
borders it always exists - THEN A DISCOUNT OF THE NOTES OCCURS. In this case the bank can choose one
of two roads:

1. EITHER THE BANK KEEPS TO ITS TRADITIONAL AND LEGAL PURCHASE PRICE FOR GOLD. Then
it neither receives additional gold nor can it increase its shrunken holdings of gold because gold is at a premium,
i.e., it is too expensive. It does not grant any further new credits than those necessary for short goods turnover.
THEN SOMETHING AMAZING HAPPENS: The "run" of consumers on the goods in shops, of the debtors on
creditors, especially on the bank as creditor of bills, and on the taxation offices if, as in Germany, the tax offices
have still to take these notes at par value. For only at three places can the holders of such notes, depreciated for a
few days, pass their paper notes on at par value - while all other places reckon in stable values (in gold) and
demand a premium when payment is in these banknotes:
in debt payments to the BANK,
in tax payments to the TAXATION OFFICES and
in the SHOPS, because lastly, all turnover credits of the bank of issue are represented in the shops which offer
goods in return for them.

This "terrible" run is not evil at all for it happens in the economically desirable direction: In the end and for some
milliards, goods are sold, taxes paid and warehouse stocks reduced and the bank of issue is again liquid because it
has received a torrential reflux of notes.

This reflux of notes also happens from abroad, for we assume that the export of notes is again free and that note
holders will hurry to purchase with them in Germany - which is excellent for the balance of trade.
By means of this salutary crisis the equilibrium in internal and external credit operations is thus restored within a
few days. The surfeit of notes and the foreign exchange shortage, as well as the discount, have disappeared:
THROUGH STIMULATING PURCHASES WHILE MAINTAINING THE PURCHASE PRICE FOR GOLD.

This road has been prescribed as the only permissible one by the provisions of at least the continental banks of
issue - which are based on the identical experience during the crises of centuries. (For instance: Par. 22 of the Bank
Act.)

2. THE OTHER ROAD is the following: The note-issuing bank acts like a mismanaged mortgage bank on the day
before it closes its doors. It does not care about the losses of the holders of its mortgage bonds. Instead, it attempts
even now TO FORCE GREAT QUANTITIES OF ITS SICK NOTES (MORTGAGE BONDS) INTO
CIRCULATION, BELOW PAR AND AT FALLING MARKET RATES, THUS IMPUDENTLY
AGGRAVATING ITS ABUSES. As it is not interested in the credit business but solely in gold and a profit margin
on gold and as no one will accept its depreciated papers at par, IT HAS TO INCREASE THE LEGAL
PURCHASE PRICE OF GOLD FOR THIS PURPOSE! It can now buy masses of gold, that is, offer notes at the
expense of the speculative losses of the note holders, who are cheated out of the automatic restoration of the par
value. Then the bank asserts, boastingly, that it has done much for the (depreciated) currency!

All embarrassed bank managers have acted thus during the older period of free note issuing banks in Europe (until
about 1850 or 1900).

41/22

Exchange and employment opportunities were thus harmed IN THE LONG RUN. The penal laws have
counteracted such abuses. (Compare the Bank Acts.)

THIS SECOND WAY IS NOWADAYS CALLED DEVALUATION. If the central banks or treasuries of the
devaluation countries since 1931 would not have increased their gold purchase price, then the notes of the Bank of
England etc. could have shown a strong discount only for a few days. After that the above indicated recovery
tendencies would have triumphed. It required enormous gold purchases at increased prices, in other words,
COLOSSAL SALES OF ENGLISH ETC. CURRENCIES, AT RIDICULOUSLY LOW PRICES, TO NULLIFY
THESE TENDENCIES. As everyone knows, one tried, repeatedly, during the first months, to enforce a return to
the old par value. (The Bank of England, for instance, and the TREASURY, had to purchase gold stocks
amounting probably to 100 to 200 million gold Pounds!)

We seek (in this paper) to combine the advantages of the free market rate and of the pure gold standard, an elastic
balancing and export incentives with the safeguarding of contracts and capital investments. The system of 1909
contains them. With such a German tradition it is not surprising that it was Dr. SCHACHT who, in April 1924, in
the midst of the greatest foreign exchange shortage, and a command economy, ended speculation and restored
freedom in German foreign trade and foreign exchange transactions, and enforced the strongest reflux of notes.,
with one stroke - by freeing the market rate and HOLDING FAST TO THE OLD GOLD PURCHASE PRICE.
This procedure was, unfortunately, not understood by a false monetary theory so that public opinion is today
unaware of this experience. Probably this is the only example in the history of modern crises were such a huge
central note issuing bank acted quite correctly during the crisis.

Regarding the GOLD PURCHASE PRICE of the central bank there are only two systems: the RETENTION of a
fixed rate at which the bank of issue purchases gold or ABOLITION and deliberate alteration of this rate.
The former is the successfully tested PRE-WAR SYSTEM of the well-administered countries (a pure gold
currency with a free market rate for notes but fixed purchase price for gold at the bank of issue).
The other is inflation or devaluation which are both only different aspects of the same reality (compulsory
acceptance or legal tender within and alteration of the purchase price for gold by the bank of issue).

That one can solve the problem of unemployment with inflation, TEMPORARILY, at the price of extraordinary
sacrifices and with the greatest destructive effects, is known. The contribution of J. Fisher and Keynes does,
therefore, not mean anything new, especially not a lasting recovery, but a FURTHER DESTRUCTION OF
CREDIT.
We are here not confronted with an INCREASE IN THE VALUE OF GOLD which makes a devaluation
necessary, as it is only the PRICES OF GOODS which have been driven downwards by a destruction of turnover
credits and markets which continued for years. Gold had nothing to do with that.

The justification of devaluation with an alleged inability to compete abroad and with the fall of exports because of
excessive inland prices, is also untenable. The OVER-PRICING OF GOODS in certain countries finds its cause in
the growing price control by large trusts whose price policy knows no bounds and who thereby ruin the provision
of employment and the currency.

(Note by JZ: I would deny the latter - unless one takes into consideration the indirect effect: the readiness of most
governments to devaluate the currency in order to enforce, temporarily, exports of the overpriced goods of these
influential trusts.)

A RESTRICTION OF THE ACTIVITY OF TRUSTS WOULD, WITHOUT A TRUE DEFLATION, LEAD TO
AN EFFECTIVE REDUCTION OF PRICES.

(Note by JZ: I do not think Prof. Rittershausen had in mind trust-busting through special legislation and court
actions of the present type. I believe that he would favour, instead, a repeal of all their legal privileges, their tariff
protection, their tax concessions and subsidies, their preferred treatment in credits given by a monopolised system
and the repeal of the regulatory and licensing system restricting their competitors. In a truly competitive economy
they would hardly constitute a threat.)

41/23

All savers together would then no longer have to pay the costs of this selfishness, which has been pursued too far.
The producers must make efforts regarding quality and prices. Artificial means should not deceive us on this.

14. IS THE CENTRAL BANK SYSTEM OR FREE BANKING MORE SUITABLE

        TO PROVIDE EMPLOYMENT AND END THE CRISIS?

Already Hock uttered prophetic words on this subject, sounding like a judgement on today's banking and currency
crises in all countries. (Quoted here from Leopold Lasker's "Bankfreiheit" (Free Banking ), 1871, page 66.):

         "For a monopoly bank the State must step in, in times of a crisis, granting advances, standing guarantor for
         it, infringing the law in its favour, permitting a moratorium, authorising its notes to circulate further,
         although it can no longer redeem them, perhaps conferring a forced rate (legal tender) on them, all this
         because, otherwise, the whole trade of the country, which is dependent on this bank, would be, forcefully,
         brought to a standstill.
         Under a system of free banks the failure of a bank passes as unnoticed and is so completely dealt with by
         the law as the insolvency of any other business.
         Many banks of North America have often and repeatedly suspended payment during the great trade crises
         of 1837 and 1857, but the effects of these events barely lasted a yearl New banks were established or the
         old ones rehabilitated themselves and trade became brisk again.
         In Austria, on the other hand, the cessation of redemption led to most deplorable interferences by the State
         with private rights and caused a paralysing fluctuation of the currencies and the rate of foreign exchange"
         (foreign exchange shortage! - the author.) "lasting until today."

Who would deny that this is a pregnant description of today's conditions and that most countries in the world
repeated the policy of the Austria of that time and have, thereby, either retarded the cure of the crisis and of
unemployment or made them impossible?

15. DECLINE OF THE CREDIT SYSTEM AND AGGRAVATION OF THE UNEMPLOYMENT PROBLEM -

        AS THE OUTCOME OF AN UNHEALTHY DEVELOPMENT OVER SEVERAL DECADES
Thus is was not transitory errors of economic policy or faults in the organisation of the world economy that have
caused the long-continued worsening of the crisis - but they were basic misconceptions which had been growing
over decades and were, by custom, almost legalized:

a) THE SEPARATION OF NOTE ISSUES FROM THE GOODS TURNOVER THROUGH THE SEPARATION
    OF FUNCTIONS between banks of issue and deposit banks,

b) the MONOPOLISATION of the note issue by a central bank. which is always restrictive and deflationary,

c) the transition from the BANKNOTE which is serving turnovers and which remains, with its free market rate,
     under the control of the market, to an irredeemable PAPER MONEY WITH COMPULSORY ACCEPTANCE
     (legal tender),

d) the inflation and devaluation tendencies which are inherent in the SEMI-OFFICIAL CENTRAL BANK and in
    the rule of COMPULSORY ACCEPTANCE (legal tender) for notes, (and COMPULSORY VALUE! - J.Z.)

e) the NEGLECT OF THE TURNOVER AND EXCHANGE PRINCIPLE in favour of the lombard- and
     mortgage-type security principle in granting credits -

these are the developments which have turned our banks to a large extent away from their original purpose - to
promote the wealth of the community and to provide employment. They have, temporarily, left our country, as well
as many other countries, in spite of its enormous national wealth, WITHOUT A PROPER ORGANIZATION FOR
THE MUTUAL PROVISION OF EMPLOYMENT THROUGH CREDITS.

If the two most important measures to fight unemployment are the re-integration of the unemployed in the
so-called regular economic process and the investment out of latent capital formation -
        (On the latter see the author's work: "Arbeitslosigkeit und Kapitalbildung - zugleich ein bankpolitisches
        Programm zur Bekaempfung der Wirtschaftskrise" - ["UNEMPLOYMENT AND CAPITAL
        FORMATION, at the same time a programme for a banking policy to fight the economic crisis"], Fischer,
        Jena, 1930.)
- then serious defects in turnover credit had to result in the impossibility to achieve this re-integration.

41/24

C) THE CLEARING PRINCIPLE AND THE "VIER GESETZENTWUERFE"

        (FOUR LAW DRAFTS) TO-RE-INTEGRATE THE UNEMPLOYED

        IN THE ECONOMIC PROCESS
I. FROM PAYMENT TO CLEARING (18)

1. Our analysis has clarified what mistakes have to be avoided in the construction of a well functioning system of
turnover credit. But the guiding principle is still absent with whose help this construction can be achieved. To find
this principle, a further analytical step is necessary:

For the question is whether the agreement that all contracts expressed in money should be fulfilled by PAYMENT
(in cash or real money), can be retained at all. If it can NOT be continued, then one will have to discard the thought
of a NOTE ISSUING BANK and of the banknote, which stood so far in the foreground, or one will have to
DEVELOP THEM MUCH FURTHER to achieve an ideal EXCHANGE ORGANISATION.

This criticism of the principle of payment (in cash or ready money) on which so far all credits and banknotes
rested, and this perfection of the banks of issue system beyond the classical scheme, was attempted in Germany, in
a scientific way, through the "Vier Gesetzentwuerfe zur Bekaempfung der Deflation, zur Verhinderung der
Inflation und zur Senkung des Zinses" (Four Law Drafts to Fight Deflation, to Prevent Inflation and to Lower the
Interest Rate), Berlin, 1932. (19)
(See also the texts of the drafts and the two commentaries reproduced in Peace Plans No. 40. - J.Z.)

2. The purchases and sales, credits, deliveries and services on terms do establish, in every country, a system of
short-term obligations which must be continuously met in order to make room for new purchases, new deliveries
and services, thus for a never renewed goods exchange. The SOLUTION of such a system of short-term
obligations can be conceived in different ways.

One is by PAYMENT pursuant to Roman Law, i.e. by physical delivery of coins or paper money with compulsory
acceptance.

Another, is the confrontation of two reciprocal claims, followed by their CLEARING (compensation, off-setting,
mutual cancellation), i.e. juridically speaking, by some kind of mutual renunciation.

Furthermore, there is payment through private BANKNOTES, CHEQUES OR GIRO TRANSFERS, which lead in
most cases to compensation on an account etc., and, lastly, by means of

DEVALUATION, BANKRUPTCY, LAPSE (cancellation through the statute of limitations) OR OTHER
FORFEITURES OF THE CLAIMS.

If we discard the last possibility, which is the result of complete helplessness and lack of ideas, then we will, first
of all, consider PAYMENT. This constitutes, according to the old-style Roman legal principles, the RULE for the
solution. It means the DELIVERY OF PHYSICAL MEANS OF PAYMENT, of material objects and hence the
delivery of goods.

According to this, a loan contract is a contract which puts the debtor in the same position as one who sells GOODS
on forward terms on the Exchange. Through the principle of payment all monetary obligations in a country become
converted into OBLIGATIONS FOR THE FORWARD DELIVERY OF GOODS (goods delivery obligations at a
future date).

With the GOLD STANDARD this means GOLD DELIVERY OBLIGATIONS AT CERTAIN FUTURE DATES.
(20) With the today mostly customary so-called GOLD CORE CURRENCIES (gold exchange standards), they
turn into FUTURES OBLIGATIONS TO SUPPLY MONOPOLISED PAPER CERTIFICATES, the notes of the
central bank.

In dealings in futures (forward dealings) with goods at the Exchange, it is customary to protect oneself against the
heavy risks of such transactions by means of withdrawal premiums and other protective transactions. (E.g.
"hedging". - J.Z.) In money and payment transactions one has, so far and unfortunately, not advanced to such

41/25

safeguards. The lack of such precautions has not been without consequences. Moreover, the concentration of most
of all such futures obligations of a country within a few banks, has further increased the problem.
The crisis of 1931-1933, like the previous crises, has shown that such future (forward) delivery contracts, when
concluded on a massive scale, cannot be fulfilled in a serious situation. Indeed, they result, then, in a paralysis of
the entire economic life for months, in the unemployment of millions of people and, particularly, in the seeming
impossibility to solve the problem of unemployment.

3. The only way to avoid such a faulty procedure, shown by our whole banking system so far, is probably the
REPLACEMENT OF PAYMENT BY CLEARING, as far as this is possible. This way has already been opened up
by the natural development, in most countries. For the use of cheques and clearing has grown so much that in most
countries today already 80-90% and more of all solutions (settlements) take place without using PAYMENTS.

Formally, it is true, most, even of the cash-less transactions, imply still the delivery of the physical means of
payment of the central bank - but use of this possibility is made only in case of a crisis.

(Note by JZ: Precisely then it can turn a minor crisis into a disaster: Cash is already short, for one or the other
reason, and then, suddenly, everybody claims the cash he is still legally entitled to, in cases where otherwise he
would be satisfied with clearing. Thus many of the previously cash-less transactions are now turned into cash
demands. Thus the need for cash may increase tenfold - while already less cash is available than before. There is no
hope for prices and contracts to adapt AS fast to as sudden deflationary money shortages, no matter what
economists like Murray N. Rothbard believed on this subject. Moreover, the different results of FALLEN and of
FALLING prices have to be taken into consideration. FALLEN prices encourage buying while FALLING prices
lead to the postponement of many purchases.)

4. To declare all banknotes or even the whole of all cash-less means to be LEGAL TENDER, as already envisioned
by Ricardo, would not signify any PROGRESS - for these means of payment, given legal tender, would enjoy
some kind of State guaranty. They would thus have to be issued by the authorities or other monopoly organisations
and CONTROLLED AND KEPT SCARCE. This would make the achievement of full employment impossible and
lead to a further and intolerable growth of fiscal activity.

Under such a monopolistic system, lastly, no business in the country could be any longer concluded without the
previous consent to pay by the central bank. To make such promises is usually not within the authority of the bank.
Moreover, as has been mentioned before, no monopolistic system of monetary control can be conceived that is not,
in effect, deflationary.

In this connection it is remarkable that Karl MARX had demanded this centralisation and monopolisation of credit,
already in 1848, in his "Communist Manifesto", in point 5 of its programme.

5. The solution by means of CLEARING is completely different. (20 a) Nobody can refuse it WHO IS HIMSELF
IN DEBT - which today applies generally, to every participant in the economy. Hence clearing is today, apart from
gold and from the banknotes which were given legal tender, a THIRD MEANS OF PAYMENT WHICH MAY BE
FORCED UPON A CREDITOR. As such it has so far been overlooked by monetary theory.

Towards any vendor of goods or any other creditor, clearing is thus as useful as a solution means as if it had legal
tender but, indeed, ONLY TO THE AMOUNT OF THE DEBT OF THE PAYEE.

It has the further ADVANTAGE of not being monopolised, not being "managed" by the State, and not being kept
artificially scarce but, instead, it is freely accessible for everyone.

It is also readily available for everyone during a crisis, i.e. precisely during the then customary credit restrictions.
This is of decisive importance.

6. A credit system which aims to achieve the re-absorption of the unemployed in the regular economic process,
even during a crisis, will thus not only have to REVERSE the above indicated historical SEPARATION from the
goods circulation but will, moreover have to employ a SOLUTION PROCEDURE that avoids the dealing in
futures of monopolised and "kept scarce" means of payment (in the sense so far employed).

41/26

Apart from leading turnover credit back to its original and proper function, it must be the AIM to make the clearing
principle THE GENERAL MONETARY SOLUTION PROCEDURE IN THE WHOLE COUNTRY because it is
superior to the Roman juridical payment principle with regard to providing employment.

In working towards this aim one must take note that the existing legislation on clearing, in the civil codes, is much
too narrow. It will have to be developed further. Decisive is not the accidental current version of it but the
underlying PRINCIPLE and its development.

Furthermore, it is important that, especially in Germany, new forms have been developed which go BEYOND the
cheque and giro operations:

a) CLEARING not only of cheques but ALSO OF TRANSFER ORDERS in special "clearing offices" of the
    Reichsbank.

b) The REVERSE TRANSFER (or so-called "withdrawal business") developed by Schoele in Berlin and

c) the "skontration".
The aim of this great development of the technique of cash-less transactions is, figuratively speaking, neither to
move physical objects (means of payment) from the debtor to the creditor (compulsory acceptance!) nor to shift
balances in this direction, but instead, to rid the creditor of his debts, to make him debt-free, whereby the problem
of legal tender, of the compulsory acceptance, is altogether avoided!

This newer development in German payment transactions receives its strength not from theoretical considerations
of currency questions but simply from the fact that these new methods operate much more efficiently and cause
less costs than cheques and giro-transfers, which is of the greatest importance for the banks.

The effect of the new principle upon the diverse branches of cash-less giro transactions could only be hinted at
here.

Next to the above-mentioned giro and cheque transactions are those involving cash in which, up to now, the
PAYMENT PRINCIPLE completely DOMINATES. Seemingly, it cannot be ousted here. But, surprisingly, HERE
ALSO compensation is possible. For such CLEARING IN CASH DEALINGS under simultaneous abolition of the
note issue monopoly, a new kind of note issuing bank would serve which would have to have the following
characteristics (22) :


C / II.) DRAFT OF A "LAW" ON CLEARING BANKS

1. THE FIRST "LAW DRAFT" DEMANDED BY MONETARY THEORY RUNS THUS:

                                                        Par. 1
(1) Clearing banks are enterprises whose object is to clear claims and debts.

(2) They may only acquire or grant credit on good commercial bills and good other claims arising out of sales of
      goods and services. The due date of the bills and claims must not exceed 4 months. Their obligors must be
      known as solvent.

(3) They may not undertake any other classes of barking operations.

                                                        Par. 3
(1) Clearing banks are entitled to accept clearing cheques drawn on them, by means of a note on these cheques.

(2) By this acceptance the clearing banks bind themselves to credit the bearer of a clearing cheque on a clearing
      account. They are not obliged to pay cash.

(3) The clearing bank can free itself from the obligation to clear by satisfying the claims of the creditor with the
      surrender of Reich banknotes, Reich treasury notes or coins.

                                                       Par. 4
(1) Clearing cheques, within the meaning of this Act, shall be payable to the bearer and shall carry on the front the
      notification : "For clearing only".
      They may only be made out in denominations of 1, 2, 5, 10, 20 and 50 marks. Moreover, they must be in
      accordance with the requirements of par. 1 of the Cheque Act of 11. 3. 1908.

41/27

(2) Clearing cheques must be printed, apart from the signatures of the bank drawn, the drawer and the date of
      issue. The issue date may be printed. The signatures may be mechanically duplicated.

                                                    Par.5
Clearing banks may only issue printed forms for clearing cheques which carry already the bank's notification of
acceptance.

                                                         Par.6
The clearing banks are obliged to accept at full nominal value and at any time all clearing cheques which already
carry their acceptance note.

                                                          Par.7
(1) Clearing banks may only issue printed forms for clearing cheques and acquire, or lend on, bills or other claims
(par. 1, sec. 2), if in the course of the preceding calendar month one fifth of the bills and other claims, outstanding
at the beginning of that month, have been repaid ( reflux).

(2) Prolongations of an existing indebtedness, in whatever form, do not count as re-payments.



                                                        Par.8
(1) To the extent that the credits granted by a clearing bank are not repaid by the handing over of clearing cheques
       of this bank, but by other means, more particularly, by transfers or delivery of Reich banknotes, Reich
treasury
       notes, or coins, these means of payment are to be used or to be kept ready, for the purchase of clearing
cheques
       of that bank.

(2) A clearing bank can demand a premium from its debtors to the extent that they do not repay their debt by the
     surrender of clearing cheques of this bank.
     This surcharge may not exceed 1% of the amount repaid in this way.

                                                       Par. 9
The total amount of the circulating clearing cheques accepted by a clearing bank must be covered at this bank up to
its nominal amount and at any time by bills and other claims (par. 1, sect. 2) of at least the same total amount or
through cash.

                                                       Par. 10
There is no time limit for presenting a clearing cheque to the drawee clearing bank.

                                                       Par. 11
(1) The clearing banks shall be attached to an audit centre determined by the Reich Minister for Economic Affairs.

(2) The audit centre is entitled to examine the business papers, books and other documents of the clearing banks.

                                                     Par. 12
By the 10th. of each month, the clearing banks must submit to the audit centre statements on the development of
the business during the preceding month. This report must set out:

1. the aggregate amount of the bills and claims acquired and those lent on, each separately,

2. the total amount of the issue and not yet returned printed clearing cheque forms,

3. the amount involved in the bills and other claims paid off during the month reported on,

4. the aggregate amount of the printed forms issued as clearing cheques during the month under review,

5. the amount of the means of payment held ready pursuant to par. 8, sec. 1,

6. the prolongations of existing debt obligations.

41/28
____________________________________________________________________________________________

2. The special purpose of the clearing banks is to close the incomplete circuit of commercial bills and of giro
money THERE where WAGES are paid, i.e. where so far scarce monopolised means of payment were
indispensable. The notes of these banks are crossed ("for clearing only" CHEQUES drawn by the account holder
on the clearing bank. They are expressed in round (typified) amounts made out to the bearer and are already
accepted by the bank. In some countries this is not permissible with ordinary cheques. It would have been MORE
SIMPLE to choose the banknote with a new legal contents. But the method of the typified and accepted cheques
avoids the collision with the monopoly of the central bank.

To loosen up the fettered goods circulation, the clearing banks should make the required PURE TURNOVER
CREDIT available, in abundance and cheaply. Contrary to the proposals of the inflationists, the primary service
shall not be the additional NOTE CIRCULATION but the credit business, the PROVISION OF TURNOVER
CREDIT, to the extent of the sale of new goods.

Then the customer would obtain credits and banknotes (forms of typified and accepted cheques) from the banks -
only when he has good short-term commercial bills and similar claims available for discounting. The limitation to
the genuine proceeds from SOLD goods is very important. Advances must never be given on UNSOLD goods nor
must bills be accepted which are not based on goods turnovers. This "cutting up" of genuine goods claims into
means of payment can (as is well known) HAVE NO INFLATIONARY EFFECT as the thereby increased issue of
means of payment is only possible when the goods offer increases to the same extent.

(Note by JZ: Moreover, the standard of value is the same for both sides: The means of exchange have a free market
rate against it and are kept at par with their nominal value, in the interest of issuer and acceptor, and the goods are
priced out in e.g., gold weight units, which serve as the standard of value. Thus, at most, badly managed means of
exchange might depreciate themselves but they could never inflate the general price level which continues to be
expressed in stable gold weight units. The bad means of exchange will then be driven out by the good ones.)

The competition between several such private note-issuing banks achieves, nevertheless, an ample supply of such
credits and the lowest interest rate - so that deflation is also excluded.

The example of the Bank of France, which is today the only healthy central bank in the world, as well as that of the
four small provincial banks in Germany and of the Bank of Danzig - all of which remained sound despite the crisis,
preserved their gold stock and saved their economic spheres any restrictions, proves how efficient this principle is.

(Note by J.Z.: I wish he had not mentioned the gold stocks in this connection. For the clearing principle involved in
these issues and their reflux a gold cover, gold reserve and gold redemption are superfluous. Nevertheless, these
clearing cheques and all the prices and wages, rents and fees, subscriptions and credit contracts, which they
mediate, could be expressed in gold weight units. - It's too easy to slip back into ancient "memes" when writing or
talking. - J.Z., 27.12.02.)

3. In Austria (in the town Woergl*), in Germany and in the USA some kind of "Ausgleichs-kassen" (Compensation
Pay Offices) were established since 1931 which pretend to operate according to the above principle. However,
most of them have been prohibited again in the meantime. Their aim, regardless of the promises they made, was
NOT the compensation of short-term and due claims and the bridging of slightly different due dates. No, they
attempted to foist upon their customers LONG TERM and non-interest-bearing claims in exchange for SHORT
TERM ones - by financing not the proceeds of sold consumer goods but, instead, of long-term or capital goods like
street constructions, houses etc. For papers thus issued, the storekeepers were supposed to surrender their consumer
goods. These attempts have nothing in common with proper clearing banks.

They merely make the hopeless attempt to sell, at 100%, long term LOAN CERTIFICATES, in small pieces and
non-interest bearing, which should, perhaps, stand at 50% below par, seeing that even the large pieces of
INTEREST BEARING issues of the same debtors were often priced at under 80% at the Exchange. The
shopkeepers who sold against such money substitutes suffered heavy losses as nobody was prepared to accept these
certificates from them. Their market value HAD to be low because the DEMAND for such certificates is too low.

(* - In case of the "Schwundgeld" of Woergl, and largely unappreciated by its initiator and fans and objectors alike,
tax foundation for these notes played a large role in their success, as Ulrich von Beckerath pointed out in his
writings. - J.Z., 27.12.02.)

41/29
4. CONTRARILY, THE SECRET OF THE CLEARING BANKS as well as that of the sound note-issuing banks,
lies essentially in the fact that they arrange for an ESPECIALLY STRONG DEMAND FOR THEIR OWN
ISSUES, which keeps their rate at par. The holders of the clearing cheques can clear, by surrendering cheques,
ONLY when they have not only CLAIMS but when at least some of them have also due DEBT obligations towards
the clearing banks. If the bank lends out its money on LONG TERMS, as the Austrian and American
"Ausgleichskassen" (Clearing Banks) did, THEN IT HOLDS NO DUE CLAIMS AGAINST ANYBODY. Thus
one cannot clear for ONLY DUE claims can be cleared. The cheques are then almost worthless.

If, on the other hand, the bank lends its means on decidedly short term conditions, then every day many claims will
mature and the clearing, i.e. the utilisation of the cheques at 100% becomes possible.

Certainly, not all cheque holders owe something to the clearing bank but only the few manufacturers and
shopkeepers who received credit from it. But this does no mean that the cheques are valueless, e.g. for public
servants and clerks. On the contrary, exactly the same applies to these cheques in the hands of such private people
as applies to the monopolised banknotes now customary in most countries: they can be used for purchases in the
shops and factories, because the shopkeepers and manufacturers exert a LIVELY DEMAND for them in order to
be able to repay with such slips their debts, when they fall due. Thus three fourth of the national income finds its
way to the shops and returns from these to the banks. The value of the cheques stands then at par.

It must be the aim of the bank management to achieve this continuously. It can best achieve this objective if it
considers the circle of its customers as a private "payment community " ("Zahlungsgemeinschaft" - Knapp). Within
this community any creditor must undertake to accept HIS OWN matured debt obligations as means of payment
against himself, i.e. to accept clearing. Then the following happens:

The shopkeepers will mostly have received credit from their suppliers, the manufacturers, and the latter, in turn,
from the clearing bank. Instead of in banknotes, they have received these credits IN SUCH CHEQUES. The
recipients have been obliged by the bank to repay their credits from the clearing bank not in legal tender means
BUT IN THE SAME TYPE OF CHEQUES.

The bank can enforce this by imposing a fine in case of payments with State money. Accordingly, the
manufacturers will eagerly accept from their customers, the shopkeepers, payment in typified cheques and will
express a direct demand for them. Likewise, with the retailers. They will post this readiness to accept in notices and
signs at their counters.

For the manufacturers these cheques represent, so to speak, their own liabilities, as the pieces received by them are
almost completely like those they received in their credit from the bank. The same applies to the shopkeepers. Both
are bound to accept the cheques as means of payment since they are both in debt. They have obliged themselves
towards the Bank to let their own debt certificates be counted against themselves, i.e. to accept clearing up to the
amount of their debts. Thereby and because their credits become soon due, a continuous DEMAND for such
cheques and a permanent 100% usability for them is assured.

This clearing is a multiple one. The customer in the shop, who received his wages in such cheques, buys goods. At
the cash register of the shop he owes the amount. He hands the cheque in - which, in mobilised (liquid) form
embodies the bank debt of the shopkeeper - and now he clears and thereby settles his purchase debt.

The shopkeeper, on his part, is indebted to the same bank in the same type of cheques. To reduce his debt he
surrenders such cheques, which represent his own indebtedness to the bank. He compensates debt against credit
and becomes thus debt-free.

The manufacturer is likewise indebted to the bank in such cheques. To repay his debt, he delivers the cheques and
likewise clears them. Cheque credit and bank debt have disappeared.

The short run of the credits as well as their confinement to financing the turnover of saleable ("gangbaren" or
"consumer goods", goods already produced and sold, at least to wholesalers! - J.Z., 27.12.02.) goods, create in this
way a continuous DEMAND, an uninterrupted REFLUX of cheques. This demand achieves the par value of the
cheques, although they do not yield interest, because these cheques are usable, at any time, for purchases in the
shops and are in this equal to the best banknotes. They represent, in a way, the prototype from which the banknotes
were developed and from which the monopolised banknotes with legal tender powers have, taken their road to
degeneration.

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The difficulties of the variety of means of payment can be overcome by instituting clearing centres as one can find
in Scotland and Canada, where the notes of 9 note-issuing banks still circulate successfully, side by side,
unfortunately, since the war, likewise with legal tender. Even in Germany there are, apart from the Reichsbank
notes with legal tender, still small change coins in circulation which are legal tender only up to 20 marks, as well as
5 kinds of certificates WITHOUT legal tender - and this does not lead to any difficulties. (Rentenbank notes and
the banknotes of the private note-issuing banks of Bavaria, Baden, Saxonia and Wuertemberg, in 1933.)


5. From our historical description, we could draw the conclusion that deflation is only possible under the note issue
monopoly because a monopoly excludes competition and no alternative institutions exist. We could, furthermore,
conclude from it that inflations are possible only under compulsory acceptance (legal tender).
(Legal tender embraces also compulsory value! See his following sentence. - J.Z.)
The notes of the clearing banks have neither a legal exchange rate (legal tender) nor are they redeemable in gold.
They can only be used for purchases in the shops ("shop foundation") like the notes of those of today's central
banks which have suspended gold redemption. (Note by JZ : Naturally, the latter have ALSO legal tender and TAX
FOUNDATION.)

With the clearing banks one has to take care that the equivalent for the clearing certificates really lies in readiness
in the shops IN FORM OF GOODS. (Compare paragraphs 7 and 9.)

If financial bills had been discounted then the paper certificates received by the wage earners, which they carry to
the stores, would not be confronted by consumer goods but by houses and the like. (Note by JZ: ... of the
long-term debtors of the bank.) They could not purchase anything with them. They would have valueless papers in
their hands.

(Note by JZ: While they could not purchase or clear anything with them immediately, apart from the use of some
of these certificates in instalment repayments of the long term loans they represent, they could be utilised in the
long-run, over a period of 10-40 years, e.g., as mortgage claims against the houses etc. which they economically
represent. Naturally, few consumer & shopkeepers are interested in these, while they need to pay their daily living
expenses & other debts with suitable or "current" or "liquid" means of exchange, which e.g., shops are obliged or
only too ready to accept, and for this these "mortgage bonds" etc., are totally unsuitable.)

If they were legal tender then their immediate depreciation would, indeed, be avoided, but prices would begin to
soar (inflation).

Thus, with the clearing banks, institutions are established which avoid the four scourges of modern economic life:
       DEFLATION - because the monopoly is abolished,
       INFLATION - as there is no legal tender,
       FORWARD RISK with bank balances and bank debts - as there is no redemption obligation and
       UNEMPLOYMENT, as a result of a shortage of means of payment - as the establishment and cancellation
       of credit exactly corresponds to the production and consumption of goods so that, from that side, the
       employment of labour is no longer limited.

In a credit system built according to the principle of the clearing banks, the goods themselves create their own
purchasing power (the means by which they are purchased).

        (Alas, the goods etc. do not and cannot print clearing cheques themselves, and their owners are usually
        neither legally free to do so nor do they appreciate this kind of monetary freedom. - Compare Say's Law,
        which does not operate as he and others imagined it would, in the absence of full monetary and clearing
        freedom and the sufficient use of these liberties. - If, for instance, gold or silver coins are the exclusive
        means of exchange, then their value or purchasing power will not automatically, instantly and fast enough
        rise to make up for any increase in the goods, labour and services offered for sale. Thus sales difficulties
        will arise for producers, shopkeepers, workers and providers of other services. Even the population might
        grow faster than the total rare metal stocks. When goods, services and labour are competitively supplied,
        then exchange media and clearing options for them must likewise be competitively supplied - to keep the
        balance between the goods side and the money side. Furthermore, alternative value standards must also be
        competitively offered and subject to free choice. Neither exchange media nor value standards must be
        monopolised and compulsorily integrated and unified vial central banking privileges and legal tender
        laws. - J.Z., 27.12.02.)

The goods turnover thus becomes INDEPENDENT of the availability of gold or of monopolised paper means of
payment and of the current situation of gold mines and of the central bank of issue.

Under exact adherence to the Quantity Theory, a safe solution of the problem of unemployment and of the
re-integration of the unemployed into the normal economic process does then become possible.

Every increase in goods sales, during the re-integration of the unemployed, does then lead not to a new deflation,
due to a shortage of means of payment, but to an increase in the means of payment. The newly issued means of
payment begin their reflux to the bank at the very moment that the purchased goods are handed over the counter -
and thereby disappear from the process of financing turnover.

The new money certificates issued in the process of re-integrating the unemployed in the economy, are, during
their retention in the households, a loan raised by the banks in these homes.

41/31

(Note by JZ: These households grant this "loan" in their otherwise unemployed labour. They are repaid on payday
and then shop with these loan certificates, exchanging them into goods or services, and thereby set these loan
certificates onto their return journey. Thus, quite clearly and in a monetary way, services and goods are exchanged
for goods and services. Workers, until pay day, are the CREDITORS of their employers and until they redeem the
notes received in goods or services, they are the creditors of the note-issuing bank and of its debtors.)

These additional means are the source out of which the increased goods turnovers are financed - until the goods are
sold and the notes or the typified cheques have returned.

C/ III) DRAFT OF A "LAW" ON THE ISSUE OF REICH TREASURY NOTES

1. In the above the principle for private trading between producers, merchants and workers, i.e., for a PRIVATE
payment community, was given and carried out in a draft. But with this only A PART of the economy would be
freed of the shortage in means of payment. For, aside the private circuit of the economy there stands, so to speak, a
second and PUBLIC CIRCUIT which suffers equally from deflationary effects. This is the money circuit between
the taxpayers, the pay offices of the State and the municipalities, the public servants, the public bodies and the
suppliers of the State.

During the crisis it was precisely the frightful money shortage of the State, the breaking up of the public debt
system and the floating debt of the State which, increasingly, aggravated the crisis on the Stock Exchange, in credit
matters and on the interest market and increased, more and more, the unemployment among the white and blue
collar workers of the State, as well as among the industries supplying the State, and in the economy as a whole.

According to the laws provided for in the Dawes Plan, the German Reichsbank was, exclusively, a bank of the
private economy. Consequently, as long as the Reichsbank was healthy, it could only somewhat supply THIS
sector of the economy with means of payment. But the other, the STATE'S circuit, remained without means of
payment.
The means for it had first to be extracted from the other circuit - by means of taxation and forced liquidation. The
tax laws, of course, take care of the tax demands of the State but NOT of the solution means required for paying
taxes.

Here a special means of payment was necessary: the State paper money which, contrary to the inflationary "proper"
paper money, must not be given compulsory acceptance (& compulsory value! - J.Z.) (legal tender). Such treasury
notes, with a free market rate, are indispensable for a healthy public finance system whose intention is not to
disturb the regular course of the economy.
        (Note by JZ: No more so than it does anyhow, by its mere existence. See, especially, Murray N. Rothbard's
        'Power and Market", Institute for Humane Studies, Menlo Park, California, chapter 4, on the harm done by
        all compulsory taxation. Apart from damaging a free exchange economy, it is, by its coercive and
        exploitative nature, i.e., morally, an abomination, one much is more clearly expressed by the term "tribute",
        better still by "blackmail - under benevolent pretences".)

Whilst the State paper money with legal tender is an UNCOVERED floating DEBT of the State, the State paper
money subject to a free market rate represents the mobilisation of matured TAX CLAIMS and thus a debt that is
fully covered by due claims. Such certificates do also rest on the principle of clearing. They are, so to speak,
liqui-dified taxation claims or typified taxation cheques, similar to the typified clearing cheques which are covered
by commercial goods claims: The population has, continuously, to pay large amounts of taxes. The treasury and its
public servants pay, continuously, large amounts to the population. Between these claims and debts a clearing is as
practicable as between the claims and debts of the private economy through the cheque and giro system. It is
arranged through treasury notes, which are really clearing certificates. They do not contain a promise to pay but
merely the assurance that the State will ACCEPT them at all its pay offices in payment of taxes and custom duties,
at any time and at their nominal value, like gold (tax foundation).(23)

(Note by J.Z., 27.12.02: Alas, governments usually to NOT or no longer combine sound value reckoning, e.g. via
gold weight units, with tax foundation but, rather, abstract and frequently depreciated "paper value standard"
reckoning. They do not accept their tax foundation money, as when used with sound value standard, at par with
that nominal value, even when in other transactions it has suffered a discount. Thus there is no inbuilt deterrence
against over-issues. Under free market rating the State could issue tax foundation money beyond a sound quantity
only at a discount and would have accept these certificates at par from the tax payers.)


2. THE MOST IMPORTANT CLAUSES OF THIS LAW DRAFT FOLLOW HERE:

                                                  Par. 1
The Government of the Reich is hereby empowered to issue Reich treasury notes in denominations of 5, 10, 20, 50
and 100 marks.

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                                                      Par. 2
(1) The Reich treasury notes shall be produced by the Debts Administration of the Reich.

(2) The Debts Administration of the Reich has to note on the Reich treasury notes the date of their handing over to
      the Chief Pay Office of the Reich.

(3) It shall replace notes that have been damaged or become useless and charge these to the Reich when the
       submitted piece is part of a genuine Reich treasury note and consists of more than half of such a note. In
other
       cases, the Reich Debts Administration shall replace notes at its dutiful discretion.

(4) The Reich Chief Pay Office shall cancel the Reich treasury notes flowing back to it and return them to the
      Reich Debts Administration for destruction.

                                                    Par. 3
(1) The officially approved German Stock Exchanges shall daily determine and publish a rate in Reich marks for
      the Reich treasury notes.

(2) Until a free gold market has been established in Germany, the rate shall be fixed by conversion of the London
      gold rate on the basis of the average rate of Reich treasury notes for settlement in London.

                                                      Par. 4
If for more than two days the average rate quoted stands below 95% of the nominal value, then new Reich treasury
notes many not be produced by the Reich Debts Administration or circulated by the Reich Chief Pay Office, until
the price quoted reaches at least 95%.
                                                        Par. 5
(1) The Reich Gazette and the State Gazette shall publish daily statements on the Reich treasury notes. These
      statements shall report, separately, by denominations,
      1. the total amount of Reich treasury notes,
      2. the stock of Reich treasury notes at the Reich Chief Pay Office,
      3. the resulting number of Reich treasury notes circulating,
      4. the incomings and outgoings of Reich treasury notes at the Reich Debts Administration and the Reich
Chief
           Pay Office.

(2) The Audit Office of the German Reich shall control the accuracy of the statements and vouch for them in public
       announcements.

                                                        Par. 6
There is no legal obligation to accept Reich treasury notes in payments which are to be made in currency, neither at
their face value nor at any other value.

                                                       Par. 7
(1) Compulsory acceptance for these notes applies only to the pay offices of
      1. the Reich,
      2. the German States,
      3. the municipalities and municipal federations,
      4. the social insurance authorities,
      5. the Reich Post Office,
      6. the Reich Railway Company.

(2) The compulsory acceptance does not apply to deposits in postal cheque and savings accounts and in general
bank transactions, especially not to payments made to pay offices mentioned in section 1 which only serve the
passing on or the bank-like administration of the amounts paid in.

                                                      Par. 8
The pay offices named in par. 7 must accept the Reich treasury notes at their face value at all times.

                                                      Par. 9
(1) If the average rate quoted at a Stock Exchange stands below 95% of the nominal value for more than 6 days,
then the Reich Minister of Finance shall decree the payment of certain or of all taxes in parts or wholly in Reich
treasury notes.

(2) When any payee fails to comply with this obligation then he must pay a surcharge of 1%.

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                                                       Par. 10
If a debt payment is offered in Reich treasury notes then the debt relationship ends with their acceptance.

Par. 11 ...

                                                     Par. 12
The Reich Minister of Finance shall adopt measures to facilitate - particularly through establishing exchange
centres - the exchange of Reich treasury notes paid in at banks, between the Reich Chief Pay Office, the
Reichsbank, and the banks, savings banks, and other credit institutions.
____________________________________________________________________________________________

3. At a time when one quarter to one third of the national income is claimed by the State, one has to provide special
means of payment for the movement of these enormous quantities of goods - if the whole economy is not to suffer.
During a crisis the tax sources tend to dry up. Thus we have here a means to avoid a deflationary interruption in the
State's goods circuit and to make the tax sources flow once more.

        (Note by JZ: This tax stoppage is not the equivalent to a well thought-out and well organized TAX
        STRIKE. - Compare Peace Plans Nos. 13 & 14. - Instead, it leaves the tax system untouched and brings it
        to the extreme of numerous forced expropriations and sales for overdue taxes, to a large-scale depression
        and unemployment. The intention here is merely to avoid this ADDITIONAL evil of taxation. It amounts,
        as someone once said, to "the torture of a deaf and dumb person in order to extract a confession from him".)

At the same time, the central bank of issue is relieved of the leaden weight of the floating State credit for, with the
means then obtained, the State can repay its credit from the central bank. The central bank of issue, now
overburdened and crushed by State credits, can once more and better pursue its task to promote the private
economy. Even without a monopoly, it would retain, in the financing of large industries and of external trade, a
function which the more localised clearing banks could hardly take over for the time being.

4. The SAFEGUARDS of the Reich treasury notes against abuse consist, comparable to the old Prussian tradition
of the "Tresorscheine" (Treasury notes of 1810) and down to the Rentenbank certificates of 1923, in the following
aspects:

        a) In their free market rate and daily quotation at the Exchanges. I case of over-issues, they depreciate and
        receive a discount - without affecting the country's prices calculated in gold units. But such a depreciation,
        because of the vigorously enforced reflux, would practically be confined to a case of the greatest fiscal
        mismanagement. For THIS case no other system can offer a security, either.

        (Note by JZ: The security would then lie in the right of the people and of individuals to REFUSE
        ACCEPTANCE and in the losses the government would suffer when issuing its notes below par while it
        has to accept these same notes immediately at par in payment of taxes etc. The government would thus
        provide an effective tax reduction and would thus render itself still more insolvent. Naturally, the people
        would have to take several precautions against the reintroduction of legal tender and the note issue
        monopoly. For instance, the government of Switzerland could not reintroduce them AGAINST the will of
        its citizens, who have referendum powers and constitute an ARMED CITIZENRY.)

        b) In their tax foundation: Everyone can pay with them his tax debts at par so that a discount of these
        certificates would lead to a run upon the tax offices.

               (Note by J.Z.: A "run" not in order to WITHDRAW, as with gold redemption banks, but in order to
               PAY taxes! This tax relief will not be welcomed by the government since it suffers losses or has to
               spend more when issuing treasury notes below par, which it has then to accept, immediately and at
               par in payment. It would also risk losing suppliers who refuse to accept the treasury notes
               altogether. This sounds harmless only when one has only certain goods suppliers in mind. But, for
               instance, in Athens after WW II almost all public servants walked off their jobs and turned into day
               labourers at the harbour etc., because they could no longer support themselves on their fixed
               salaries, which were paid in greatly inflated State paper money. History has several times shown
               that these refusals to accept inflated paper money in payment can become very dangerous when the
               "suppliers" are e.g. suppliers of police and military services.
               Today, the powerful unions of public servants would probably be among the first to refuse to accept
               the payment of their salaries in depreciated treasury notes - if the free market rate is allowed to
               reveal their depreciation, i.e. legal tender does no longer exist, helping to conceal this depreciation,
               misdirect the anger on "price increases" and keeping them monetarily ignorant.)

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        c) In the provision that the issue of treasury notes must be suspended when a marked discount appears.
        The reflux, due to the tax foundation, will then immediately reduce the total circulation. The remaining
        demand re-establishes parity.
        d) In the provision that the Minister of Finance HAS to order the payment of some or all taxes
        EXCLUSIVELY IN TREASURY NOTES in order to speed up their reflux. Thereby an especially strong
        demand is created in case of an emergency.

        e) In the possibility to pay the treasury notes at any time into frozen gold accounts at the tax offices, as
        advance payments of future taxes. Such "tax-assets" are not reclaimable but only useful for paying taxes.
        They bear interest, are transferable and, moreover, exempt from taxes. They thus constitute SOME KIND
        OF SEMI-LONG-TERM LOAN TAKEN UP BY THE REICH. (24)
        They are expressed in gold marks so that the bearer of treasury notes, in the quite improbably case of their
        depreciation, can obtain for them at any time a kind of gold loan of the Reich guaranteed by a kind of lien
        on tax revenues. Thereby, THE STATE BECOMES AN INSURER OF THE PEOPLE AGAINST
        INFLATION. It be-comes a tax bank. It receives, especially during a time of loss of confidence, a
        semi-long-term loan (25) and, at the same time, abides by the requirements of honesty.

               (Note by J.Z.: I would not use the term "honesty" in connection with compulsory taxation. But one
               has to remember that Rittershausen wrote this under the severe censorship of the Hitler regime,
               which would certainly have prosecuted the advocacy of a tax strike and of voluntary taxation.)

5. How securely the price of such State paper money would remain at par follows from the fact that in case of an
issue of 1 milliard marks, the total issue would annually be re-purchased about 12 times, as the tax receipts of the
Reich, its component States and the municipalities amounted to about 12 milliard marks. Twelve times p.a. it
would have come to clearing. Such a great demand would, undoubtedly, have kept the rate at par.

The excellent experiences which PRUSSIA had with such treasury notes, during the Napoleonic Wars, speak in
their favour. It was the well known Freiherr VOM STEIN who, from 1812-1815, financed the war of RUSSIA -
after SPAIN'S famous advances - and, later, that of all allies, against Napoleon I, in this way, successfully, and
without inflation. I most other countries similar traditions exist.
Compare Lorenz von Stein: Finanzwissenschaft" (Science of Finance), Vol. II, 1886 and De Viti de Marco,
"Financial Science", in several languages. about 1928, in its major part on State paper money. (Here and there, this
theory is represented in details.)
These historical experiences ought to be utilised today for the fight against the economic emergency.

C /IV.) DRAFT OF A "LAW" ON RAISING THE PRICE OF SECURITIES

            AND LOWERING THE EFFECTIVE INTEREST RATE

            BY THE INTRODUCTION OF CLEARING IN THE SPHERE OF LOANS

1. The principle of clearing is useful also for a third sphere, where a shortage of means of payment is felt: the
long-term State credits. Since 1931 the Reich, its component States and the municipalities could no longer pay their
due debts or only with the greatest difficulties. The same applied soon to many of the issuers of private loan
certificates, since the very large enterprises, as main users of the capital market, fell as first victims of the crisis.

The loan system and the annuity market practically collapsed. Their prices fell sometimes to below 50% and even
30% so that the effective interest rate rose, temporarily to over 25%. These enormous interest rates and the
destruction of the capital market made any provision of employment completely impossible.

41/35

They also disturbed the short-term turnover credit and the short-term State credit which were discussed above. The
latter could not be reorganised without providing aid for the long-term State credit and the loan market.

The aim was to make the debtors of loans solvent again. The further aim was to achieve such an intensive
DEMAND for loan certificates at the exchanges that their price would rise to 100% and a conversion would
become possible, of the loans bearing nominally 6-8% interest, into series with lower interest rates. Otherwise, the
issue of cheap loans to convert the large floating indebtedness and to finance employment, would not be feasible.
These questions of lowering the interest rate cannot be discussed here in detail. The author, officially
commissioned, has submitted detailed reports on this which were partly published in the "Bankarchiv" of
15.6.1933.

2. The solution suggested by the clearing principle for the here occurring PROBLEM OF MEANS OF PAYMENT,
consisted in removing the difficulties, as far as they were caused by the impossibility to obtain monopolised means
of payment, by the USAGE OF THE LOAN CERTIFICATES THEMSELVES AS SOLUTION MEANS.

In Germany, as the result of the above-mentioned publications, this procedure was developed in practical
application. Many large cities had lent out hundreds of millions in mortgages, loans, unpaid purchase instalments
etc. The debtors, although mostly financially weak, embraced, nevertheless, a great number of small real estate
owners, of members of the middle stand and of healthy medium sized enterprises, who could very well make
repayments, even in advance, if only they had a special incentive.

Thus at first some, and later more and more cities, declared that they were prepared to accept their own debt
certificates at their face value as means of payment and thus to accept the amortisation of their long term debts, in
natura, in their own loan bonds instead of in monopolised legal tender money, that is, to permit the CLEARING of
such long-term loans of the towns with the long-term debts of the towns. Essentially, this is nothing but a
self-evident realisation of the concept of honesty.

Thereby SUCH A GREAT DEMAND FOR SUCH COMMUNAL LOANS AROSE that their PRICES ROSE by
no less than 10% of their nominal value, precisely at the moment when two of the most important cities had to
suspend payments, in September of 1932.

A new possibility for utilising loans was established. The holders of the loan certificates had no longer to view with
despair the worsening financial situation of their debtors, for they could open up compensation possibilities and
thereby mutually extinguish progressively larger parts of the long term debts. In this they received 100%.

Some German towns own very large electricity, gas and water works etc., which often could be placed at the
disposal of their creditors in form of joint stock companies, thereby opening up very large clearing opportunities.
Thus the LIQUIDATION OF THE MAJOR PART OF THE LONG-TERM INDEBTEDNESS OF THE TOWNS
BECAME POSSIBLE. (The question of the different due dates will not be discussed here. Consult on this my
article in "Bankarchiv" of 15/6/1933.)


3. In one law draft this principle was also extended to the loan credit of the REICH and its component STATES. In
this connection a large number of constructive measures were proposed. This principle was even made useful for
the issue of MORTGAGE BANKS, which, therefore, experienced a considerable price increase. No less than 400
million RM out of a total of 6,300 million RM were thus compensated during 17 months. They served to relieve
the market by purchases at a time when any other rate support was missing as nobody bought. The principle even
penetrated into legislation. The Fourth Emergency Decree of Dr. BRUENING authorised mortgage debtors to
repay their mortgages in mortgage bonds, at their nominal value, instead of in cash. The debtors thus purchased
mortgage bonds cheaply. They stood, sometimes, at only 65 % while loans of the Reich, States and municipalities
had fallen down to 30-40% of their nominal value.
Thereby a DEMAND was developed for mortgage bonds. They remitted these bonds to the banks for the
amortisation of their debts, "in natura", at their nominal value. (26)

Finally, the principle was proposed even for INDUSTRIAL BONDS, whereby often a debt reduction through
clearing became possible by the sale of old stocks of goods against loan certificates which had become almost
worthless. The rate increases were large.

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4. The strong rate increases of loans and the revival of the confidence of loan holders, were later the starting point
for the "organic lowering of the interest rate", which was systematically begun by the Reich Government and the
Reichsbank, i.e. for an interest reduction not by a renewed legal robbery of the creditors, as had been conducted by
Bruening, but by a rise in the market rates. As Dr. Otto Christian FISCHER, the leader of the German bank system
and president of the Central Federation of the German Banking Industry, once explained, the demand for a lower
interest rate means only a demand for HIGHER MARKET PRICES, since the effective and not the nominal
interest rate is decisive. Only a low actual interest rate, at which credits are really obtainable, can lead to the
re-integration of the unemployed, not an artificial lowering of the nominal interest rate, at which no credits are
obtainable. (27)

C / V.) DRAFT OF A "LAW" ON STABLE VALUE RECKONING

The general realisation of the clearing principle, the abolition of the money monopoly, of inflation, of deflation and
of legal tender, call for a return to principles in currency legislation which prevailed in most countries up to the end
of the previous century. THE CONCEPTS OF THE VALUE STANDARD AND THE MEANS OF PAYMENT
MUST BE SEPARATED ONCE MORE.

Under a pure gold weight currency and with a free gold market, this separation was necessary and realized. For
freedom of the gold price can mean nothing else than the possibility for fluctuations in the value of paper means of
exchange. We have seen that this separation was also abolished in Germany, in the course of the last decades,
which led to the appearance of various forms of paper currency, among them the so-called gold-core-currency
(gold exchange standard), under which compulsory acceptance (legal tender) existed for the notes of the central
bank. Thus concepts of inflation penetrated the population which were disastrous from the viewpoint of
re-integrating the unemployed in the economic process:

Any kind of increase of the circulating media was supposed to endanger the stability of the currency. According to
the theoreticians of legal tender, one had ONLY THE CHOICE BETWEEN MASS UNEMPLOYMENT AND
INFLATION. It was left to politics to choose between these two forms of economic disasters.

(Compare my 16 page and highly condensed essay on this: The Soft Option: Monetary Freedom to Stop Inflation
without Causing Unemployment, in PEACE PLANS 19 b, which is now offered on my main website. - J.Z.,
27.12.02.)

ACCORDING TO THE HERE REPRESENTED VIEW, THESE DISASTROUS ALTERNATIVES APPLY
ONLY TO THE REGIME OF LEGAL TENDER. To liberate ourselves from it and to achieve an abundant supply
of means of payment, until the unemployed have been re-employed (28), WITHOUT running the risk of inflating
prices, the legislation on currency, coins, means of payment and compulsory acceptance, which applies in
Germany, must be amended and reduced to the older and sounder principles on the subject. The fourth "law draft"
serves this aim. It falls into two parts, one on a new currency act, the other on the rehabilitation of the then
seriously sick German central note-issuing bank (the"Reichsbank").

Here is the text of this Draft Law:
____________________________________________________________________________________________

                                                        Par. 1
In all payment and credit transactions, regardless of the market rate of the means of exchange, calculations are to
be made in stable value units.

                                                        Par. 2
(1) Gold is the standard of value.
(2) The reckoning unit is the mark which is divided into 100 pfennigs.
(3) The value of the mark is equal to 1/2790 kilogram of fine gold.
(4) By agreement other value standards than gold may be determined.

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                                                         Par. 3
Gold coins of the Reich are the only means of payment that have to be accepted in all transactions without limits
and at their face value.
An obligation to remit gold or coins in settlement of liabilities valued in marks does not exist. (29)

                                                     Par. 3 a
The creditor, whenever the debtor offers them, has to accept in settlement and at their nominal value his own due
bonds and goods warrants which are expressed in marks, and also those of his creditors.
The creditor has to facilitate the possibility of clearing by making his goods and services available ("shop
foundation") as is practice in his profession, and by naming his bank.
Clearing is the only means of settlement which must be accepted by the creditor in trading, at nominal value and up
to the amount of his debt. The clauses of the Civil Code on clearing do not apply.
The restrictions on clearing by debtors of public bodies are repealed.

                                                      Par. 4
(1) There is no obligation to accept banknotes in payments which are legally to be paid in money.

(2) Par. 3, sec. 2 of the Bank Act of 30/8/24 (RGBl. II, p. 253, compulsory acceptance for Reichsbanknotes,
      Dawes Act) is hereby repealed.

(3) In par. 5, sec. 1, sentence 1 a of the Coinage Act of 30/8/24 ( RGBl. II, p. 254) the following words shall be
       deleted: "and the notes issued by the Reichsbank and payable in Reichsmark".

                                                    Par. 5
(1) The officially approved German Stock Exchanges shall daily determine and publish the rate, in Reichsmark, for
      the Reich banknotes.

(2) Until a free gold market has been established in Germany, the rate shall be fixed by conversion of the official
     London gold rate on the basis of the average rate of the Reich banknotes for settlement in London.

                                                         Par. 6

In cases of doubt, rate variations of the customary means of payment of 1% of the nominal value, upwards or
downwards, shall be ignored.

                                                           Par. 7
Should the determination or publication of the market rate for a means of payment not take place or should only a
restricted allotment of gold and foreign exchange occur for a period of more than 6 Exchange days, then the
creditor is entitled to refuse to accept what is offered - as long as the determination or publication of the rate remain
suspended or the restricted allotment continues.

                                                   Par. 8
Should a settlement be effected by a remittance of Reich banknotes, then their acceptance terminates the debt
obligation.

                                                      Par. 9
The debt relationships existing when this Act comes into force, are considered as stable value relationships.
____________________________________________________________________________________________

We have reprinted this "law draft" because it represents the most conclusive refutation of the argument of
inflationism and because it attempts to outline in a short and radical form, the pure gold currency without its
previous mistake: the obligation to tender physical means of payment.
At the same time it attempts to clarify the clearing principle.

Although these law drafts possess only scientific value and can only be the basis for the decisions to be taken by
the deciding authorities, nevertheless, the thorough elaboration of the scientifically correct principles, not in
general terms but in a practically conceivable way, has had great effect upon the practice.

41/38

Whilst other reform proposals want to copy certain American and English precedents, which must be considered as
mere makeshifts and thus required the further expansion of paper money issued upon illiquid claims and assets, as
well as the extension of legal tender to giro money, here, for the purpose of re-integrating the unemployed, exactly
the contrary has been demanded.
D      CONCLUSION

1. FUNDAMENTAL CONCLUSION: NECESSITY OF A SATURATION WITH MEANS OF PAYMENT

We have seen the cardinal objective in the re-integration of the unemployed in the regular economic process. Our
starting point was the goods and money circulation in a small payment community. We recognize that the COSTS
AND EXPENSES involved in the production of goods, turn, in the hands of the workers, the clerks, the recipients
of interest and dividends, into INCOME. We also recognize that the goods production either serves the direct
supply of the population with CONSUMER GOODS or the MAKING OF LONG-TERM CAPITAL GOODS. In
both instances credit plays an important role.

The supply of the population with consumer goods in the "regular economic process" is not possible without a
solution of the PROBLEM OF TURNOVER CREDIT. We had recognised that the turnover credit in its present
organization is far REMOVED from its ORIGINAL PURPOSE to promote the turnover and sale of goods. We
have, moreover, recognised that in this separation of the money circulation from the goods circulation the
following play a significant role: bank organisation, value standard and means of payment and especially the
problems of the note issue monopoly of the central bank and the compulsory acceptance (and enforced and
fictitious value! - J.Z.) (legal tender) for paper money.

The positive section, in which we gave as example some law drafts, showed us that merely with the removal of the
lava which, in the course of historical development, has covered the system of turnover credit in most countries of
the world, an adequate solution of the problem of re-integrating the unemployed is not yet possible. Therefore, the
PRINCIPLE OF CLEARING was developed which, as a new solution principle, promises to solve a great part of
the so far insoluble problem of turnover credit and of unemployment.
(Note by JZ : It is "new", in its explicit clearing form, only in the wage payment & consumer-spending sphere.)

As the FUNDAMENTAL CONCLUSION of our examination of turnover credit and unemployment, we can now
state the DEMAND THAT ALL TRADE MUST BE AS ABUNDANTLY AS POSSIBLE SUPPLIED WITH
MEANS OF PAYMENT.

If any issuing centre should issue too many means of payment then, under the system of a free market rate, these
means of payment depreciate by suffering a discount. In case of compulsory acceptance an inflation would occur.

Both extremes should be avoided: the artificial scarcity and the over-issue of means of payment. In the middle
between them lies, so to speak, the SATURATION POINT, which would offer the best guaranty that, as far as
turnover credit is concerned, no worker is prevented from producing and exchanging whatever he and people like
him want to consume.


2. PRACTICAL PART SOLUTIONS: THE CENTRAL BANKING SYSTEM

    AND THE FUTURE OF OUR BANK AND PAYMENT SYSTEM

Certain practical PART SOLUTIONS ARE SUBORDINATED to the above described fundamental conclusion:

RELATIVELY TOLERABLE CONDITIONS FOR THE RE-INTEGRATION OF THE UNEMPLOYED can also
be achieved under the monopolistic regime of the central bank by the following measures

a) Keeping the central bank healthy.
b) Restricting the bank to the granting of turnover credit.
c) Re-linking of credit with the exchange of goods.
d) Preservation or restoration of the State's short-term and long-term credit.
e) Refusal to support unsound banks and industrial enterprises, since the means required for this would have to be
     withdrawn from the sound portions of the economy and because such a policy is followed by either credit
     restriction or inflation.
f) Cover of banknotes not by industrial bonds or state securities and similarly frozen stocks but by self-liquidating
    commercial bills and similar claims.
41/39

That one will fare much better with these time-honoured policies, abandoned by most countries today, than with
the untested methods of the conjunctural and the open-market policies of the last years, which remind so much of
the time of bank restrictions in England before 1844, is quite certain. Nevertheless, under today's changed
circumstances, one will remain in great difficulties with these, as the next decades will show. Thus these measures
will require further measures.

Far BETTER CONDITIONS for the re-integration of the unemployed are given when one can resolve upon the
ABOLITION OF THE ENFORCED MONOPOLY AND THE COMPULSORY ACCEPTANCE (AND
COMPULSORY VALUE! - J.Z.) and a return to the more free and efficient bank and money policy of the last
century, which, by the way, also developed a stronger and more independent type of man. This was a system under
which Europe once before flourished extraordinarily, both intellectually and economically.

STILL BETTER conditions for the re-integration of the unemployed and avoidance of economic crises and
collapses, will be established if one removes redemption in specie and the cash-repayability of banknotes and bank
deposits and if, instead, one changes over, by means of internal and external purchasing certificates (goods
warrants etc.) to the NEW SOLUTION PRINCIPLE OF CLEARING which has also a proud history. All
conceivable precautionary measures are to be used in this. Only few of them could be discussed here. (30)




3. THE LIMITS OF THE IMPORTANCE OF TURNOVER CREDIT

    FOR THE SOLUTION OF THE-UNEMPLOYMENT PROBLEM

No matter how great the importance of an advantageous organization of turnover credit may be for the solution of
the unemployment problem, however optimistic our practical conclusions may make us, yet we must not
overestimate the part solutions so far offered.

Firstly, unemployment is by no means caused exclusively by monetary factors. Only this present paper has
confined itself to the treatment of the monetary and credit causes.

Moreover, at least until a short time ago, the turnover credit in Europe was still by far the best developed of all
credit branches, leaving aside mortgage credit in some countries. Despite this and already from 1929 onwards,
unemployment was very large in most countries of the world. This is a phenomenon which cannot be traced back
to disturbances in turnover credit alone. Only after the breakdown of the turnover credit system (a collapse which
was latently prepared in various ways), in Germany, in the year 1931 and in other countries shortly before or after,
has the question of turnover credit become especially acute.

Nor should it be forgotten that the achievements of machines in the production of today's consumer goods are so
great that ALL unemployed could not be employed (in the production of consumer goods) even once all of them
begin to consume fully.

There is an excess of productive capacity. The existing consumer goods production and sales organization could, if
it newly employed merely ONE million workers, produce, perhaps, the consumer goods for TWO million
additional consumers. THUS, TODAY, PART OF THE UNEMPLOYED WOULD NO LONGER BE NEEDED
FOR THEIR OWN SUPPLY WITH CONSUMER GOODS, IF THE ECONOMY IS WORKING AT FULL
CAPACITY.

If one wants to employ this portion of the unemployed also, then one must let them produce not consumer goods
but long-term capital goods and pay their wages with the consumer goods remaining within the productive capacity
of the consumer goods industry. As is known, this has been done especially by the German Government in the year
1933/34 with great success.

        (Note by JZ: The reader ought to keep in mind here that this work was written under Nazi censorship. The
        least criticism would either have prevented its publication or led to great difficulties for the author. Thus, as
        an insurance, he inserted some praise. Actually, Prof. Rittershausen was a member of the resistance and

41/40

        survived the Nazi regime only by a fluke. Later, when he could speak freely, he pointed out that under the
        Nazi's economic rule no miraculous recovery was achieved. The worst of the crisis was already over,
        anyhow and further recovery, under Nazi rule, was slower in Germany than in many other European
        countries. But the myth of economic successes of this regime persists even until today. Just compare the
        unemployment statistic in the above table, page 16. Large scale unemployment still persisted under the Nazi
        regime for years, in spite of natural recovery trends. From 1935 onwards, at least, the statistics were
        shamelessly forged. They were not faultless before, either, nor are they now, in "democratic" countries.)

Thus one has to beware, to speak with Karl Diehl (31), of an over-estimation of the "sphere of circulation" as
probably an as large number of the causal factors of the boom and bust cycle is not to be found here but in the
"sphere of production". But this kind of problem need not be discussed here. (32) The difficulties in consolidating
the floating debts contracted in these investments, due to lack of liquidity in the Banking and Exchange apparatus,
make this road impassable (in the near future) as State Secretary F. Reinhardt has rightly pointed out. The
reorganisation of the machinery of turnover credit, which was to be the introductory subject of the Bank Enquiry,
should now find general attention.

41/41

                                                   FOOTNOTES
By Dr. Heinrich Rittershausen, for easier typing here collected at the end of the text instead of, as in the original, at
the bottom of the corresponding pages.
Additional notes by the translator, John Zube, have been inserted in the text, in brackets.

1. Compare my book: "Der Neubau des Deutschen Kreditsystems" (The Reconstruction of the German Credit
    System), Stilke, Berlin, Feb. 1932,184 pp. (Microfilmed by LMP, with comments by Ulrich von Beckerath and
    John Zube, in PEACE PLANS 315.)

2. Compare: Dr. H. Rittershausen, "Mutual Marketing as a Remedy for Unemployment", in the INSURANCE
    AND FINANCE REVIEW, Calcutta, 1930 (8).

3. Simplified from the classical equation. Compare also the production/income equation in my book:
    "Arbeitslosigkeit und Kapitalbilding" (Unemployment and Capital Formation), Fischer, Jena, 1930, ch. 1.
    (Reproduced in PEACE PLANS 393.)

4. See Elster, Ad. Wagner, Lexis, Bendixen, Schacht and others.

5. Bendixen, in particular, has, unfortunately, associated this theory with legal tender and with a fight against the
    Quantity Theory, although we have here only a refinement of the Quantity Theory. Thus he, unnecessarily,
    exposed a so rightful basic concept to the most serious objections.

6. Apart from Scotland and Canada, where the system of free note issue of all banks has been successfully
    continued until today - in the framework of normative Acts. Unfortunately, since the World War, their system
    has also been falsified by the forced currency. (Their notes have become legal tender.)

7. Expression by Prof. L. Ab. Hahn, "Aufgaben und Grenzen der Waehrungspolitik" (Tasks and Limits of Currency
    Policy), Jena, 1928.

8. 4th. edition, pp. 126 & 129. Besides, Knapp is not at all an enemy of legal tender, which curiously, is today as
    much considered as self-evident as it was unanimously condemned until 1909. The stress has been put in by the
    author.

9. Hence Carl Rosch in his book on credit inflation (Jena, 1927), rightly declares that banknotes which are accepted
    at public pay offices and are legal tender, are no longer banknotes but simply state paper money. (p. 24.)

10. Georg Friedrich Knapp: "Staatliche Theorie des Geldes" (State Theory of Money), 4th. ed., Muenchen and
     Leipzig, 1923, P. 125.

11. Compare on this especially the German Bank Enquiry of 1908.

12. For instance, France had preceded Germany in this. Compare the authoritative work of Prof. Rist.

13. Mises is of the same opinion. (The Theory of Money and Credit, here quoted from H. E. Batson's translation in
     the FEE, Irvington-on-Hudson, New York, edition of 1971, P.398.) Rittershausen quoted the same passage in
     the German edition of 1924, p. 408. - J.Z.): "Apart from the question of financial preparation for war, the
     arguments used in favour of the centralisation, monopolisation, and State control of banks-of-issue in general
     and of credit-issuing banks in particular, are thoroughly unsound. During the past twenty or thirty years, the
     literature of banking has got so thoroughly lost among the details of commercial technique, has so entirely
     abandoned the economic point of view and so completely surrendered itself to the influence of the most
     undisguised kinds of etatistic arguments, that in order to discover what the considerations are

41/42

        that are supposed to militate against the freedom of the banks, it is necessary to go back to the ideas that
        dominated the banking literature and policy of two or three generations ago. The bank-of-issue system was
then
        supposed to be regulated in the interests of the poor and ignorant man in the street, so that bank failures
might
        not inflict loss upon those who were unskilled and unpractised in business matters - the labourer, the salaried
        employee, the civil servant, the farmer. The argument was that such private persons should not be obliged to
        accept notes whose value they were unable to test, an argument which only needs to be stated for its utter
        invalidity to be apparent. No banking policy could have been more injurious to the small man than recent
        statism has been."

14. See the excellent report of the German Festmark Bank in Berlin of January 1932; also Francois-Marsal,
      Encyclopédie de banque et de Bourse, Fol. I, S. 33.

15. For instance the "Bayrische Hypotheken- und Wechselbank" (Bavarian Mortgage and Bill Bank) with 130
      branches.

16. This note is already inserted in the text, above table 11 on page 18.

17. See: Prof. Edgar Milhaud: "Goldburgfriede und internationales Clearing", Annalen der Gemeinwirtschaft, Jan.
      - May 1933, Geneva, also in English and French, and the two monographs by Zander and Beckerath in the
      same volume. The English edition was published under the title: A GOLD TRUCE, a constructive plan for
the
      revival of international trade, by Williams and Norgate, London, 1933.

18. See also the three papers by von Beckerath and Zander in this volume of the Annals and the two volumes by
      Prof. Edgar Milhaud, Geneva, on purchasing certificates.

19. "Das andere System" (The Other System), an economic and financial proposal in four law drafts, Georg
Stilke,
        Berlin, 1932, 135 S. (This was reproduced in PEACE PLANS 315. - A 1948 re-writing of this book, which,
        due to the timing of the German currency reform of 1948 never saw print, was microfiched in PEACE
PLANS
        394.)
20. Compare Henry Meulen: Industrial Justice through Banking Reform, London, 1917, page 16 and Greene.
       (William B. Greene's famous: "Mutual Banking", l849, republished e.g. by Modern Publishers, Indore,
1945.)

20a. German Civil Code par. 387 - 396. In the Civil Codes of other countries: Argentina, 818 - 831, Austria, 1438 -
       1442; Belgium, 1289 - 1299; Bolivia, 1297 - 1309; Brazil, 1009 - 1024; Chile, 1655 - 1664; China, 334 -
342;
       Columbia, 1714 - 1723; Costa Rica, 806 - 813; France, 1289 - 1299; Guatemala, 2326 - 2336; Honduras,
1473
    - 1480; Italy, 1285 - 1298, Japan, 505 - 512; Livonian, Esthonian, and Courland private law, 3545 - 3564,
    Mexico, 2185 - 2205; Netherlands, 1461 - 1471; Panama, 1081 - 1088; Peru, 2252 - 2263; Portugal, 765 - 777;
    Rumania, 1143 - 1153; Russia, 129b; San Salvador, 1525 - 1534; Spain, 1595 - 1602; Switzerland, 120 - 126;
    Uruguay, 1497 - 1514; Venezuela, 1353 - 1363. In Great Britain and in Anglo-Saxon countries generally, only
    the "set-off" and clearing exist, whilst compensation proper is not provided for legislatively.

21. Compare my article "Die Bankenequete von 1908 und die Entwicklung des bargeldlosen Zahlungsverkehrs"
     (The Banking Enquiry of 1908 and the Development of Non-Cash Payments) in "Zahlungsverkehr und
     Bankbetrieb" (Payment transactions and bank Organization) part 10, 1933, p. 236 ff, as well as my leading
     article in "Deutsche Bergwerkszeitung" (German Mining News) of 6/1011933.

22. On this subject, see Prof. Milhaud's statements regarding purchasing certificates in the "Annals of Collective
     Economy" for 1933, as well as the papers by Zander and v. Beckerath previously referred to and published
in
     the same volume IX, 1.

23. On the basis of these scientific pioneer works, during the years 1932 and 1933 in Germany, the
     "Steuergutscheine" (tax warrants) were constructed. These, naturally, were not means of payment. Of these,
     1,800 million worth were issued, making them the largest German State security issue.
     (Note by JZ: The bureaucrats managed to neglect all requirements for sound State paper money AND
managed
     to turn this into just another State subsidy scheme.)

41/43

24. The Rentenbank Act of 1923 also recognized the possibility of a stable value loan by means of such
payments.

25. The special draft law on this subject has not been reprinted here. Compare Footnote 19 or consult the
     reproduction in Peace Plans No. 40.

26. Compare my Bank Enquiry submission: "Lage und Gesundungsmoeglichkeiten der Hypothekenbanken"
     (Situation and Recovery Possibility of Mortgage Banks), Reichsbank, Berlin, 1934, pp. 32-40 and 57 ff.

27. In April 1933, the author was commissioned to prepare a detailed report on the problem of an "organic
interest
        rate lowering". Compare the article in "Bankarchiv" of 1 May and 15 June, 1933.

28. The author is aware that unemployment has many roots besides that of credit shortage. But here only an attempt
      can be made to remove the credit obstacles to the provision of employment.

29. Paragraph 3, sentence 2 and paragraph 3 a have here been newly introduced by the author.

30. Note especially the method of four safeguards for the holders of private bank-notes in Canada, among others by
     means of a central banknotes insurance fund. The latter has been operating successfully for 70 years and has
     saved the note-holders any losses. Holders also have precedence in liquidation etc.

31. See Karl DiehI, "Weber neuere Kredittheorien im Lichte der Lehre von MacLeod" (Concerning Recent Credit
        Theories in the Light of the Teaching of MacLeod, 1928, pages 116 & 140.

32. Compare the author's work: "Arbeitslosigkeit und Kapitalbildung" (Unemploymentand Capital Formation ,
     Jena, 1930, appearing in Spanish in Barcelona in 1934, as well as the work of von Beckerath in this volume.
     (This latter essay: "The Realization of Milhaud's Proposals" - a fundamental introduction to free banking
     principles and practices, appeared in Peace Plans No. 9. J.Z.)

(For some more writings by Prof. Heinrich Rittershausen and Ulrich von Beckerath see especially the main
literature list of LMP.)
********************************************************************************************

         "Under free competition in the supply of exchange media, everyone who offers them must endeavour, in his
         own interest, to keep them stable. Otherwise, he will be pushed out of the market by his competitors,
         particularly through the public itself." - K.H.Z. Solneman: "Drei Kernfragen (Three Core Questions)

                        "And it doesn't take a genius to figure how to exploit a money monopoly:
                        just print bogus warehouse receipts and declare them to be legal tender;
                        then pass laws to penalise suppliers of goods or services,
                        who refuse to accept the bogus receipts at face value..."
                        Leonard E. Read, FREEMAN 1/75.

         "As money and credit constitute the most abstract and important features of free market trading,
         it is no wonder that they are even less under-stood than other, more simple, market phenomena.
         They involve all and are thus understood by hardly any." - J.Z., 24/2/79.

41/44

               AN EDITORIAL NOTE ON OTHER WORKS BY PROFESSOR RITTERSHAUSEN

                            AND ON CURRENT MONETARY FREEDOM THEORIES

Some of the other relevant works of Prof. Heinrich Rittershausen, which were not mentioned in the above text or
footnotes are:

1. "Die Reform der Muendelsicherheitsbestimmungen und der Industrielle Anlagekredit, Zugleich ein Beitrag zum
Erwerbslosenprobleml" (The Reform of the Trustee Acts and the Industrial Investment Credits, at the Same Time a
Contribution to the Problem of Unemployment ), Fischer, Jena, 1929, 90 S.
(This, too, is a real pioneer work on a fundamental problem existing still today in most countries. That a great
problem does lie in this sphere has so far been re-cognised by hardly anyone else. For a long time I was unable to
get a copy. Then I microfiched it in PEACE PLANS 532. Therem too, it remains largely ignored. - J.Z., 27.12.02.)

2. "Am Tage nach dem Zusammenbruch" (On the Day after the Breakdown), Stilke, Berlin, 1931, 77 S.,
    reproduced in PEACE PLANS 394.

3. "Hypothekenbankwesen" (Mortgage Bank System), Verlag der Bankwissenschaft, Berlin. This work was being
    printed in 1932 and I have still not succeeded in getting a copy. (J.Z., 2002.)

4. "Internationale Handels- und Devisenpolitik" (International Trade and Foreign Exchange Policy), Fritz Knapp,
     Frankfurt/M., 1955, a modern and thorough defence of Free Trade in 528 pages.

5. "Bankpolitik" (Bank Policy), Knapp, Frankfurt/M., 1956.

6. "Die Zentralnotenbank" (The Central Note-issuing Bank), Knapp, 1962,820 pp.

7. "Wirtschaft" (The Economy), a volume in the Fischer Encyclopaedia, Fischer, Frankfurt/M., 1958.

Especially Nos. 5 and 6 of the above do not openly advocate free banking. They are rather typically professorial
works, "objective" and "descriptive", to serve as acceptable handbooks or reference works. Prof. Rittershausen had,
after all, to make a living - and he did so by teaching his opposition how to run their show! Naturally, his free
banking sympathies do leak through and are expressed sometimes. But one should not mistake these books for
handbooks on free banking. R. intended to write such a work but advancing age and failing health prevented this.
His free banking views ran so much against current "thinking" on the subject that he did not succeed in spreading
them widely in Germany. It may be the tragedy of his life, so far, that he succeeded better in teaching the details of
the present system, with all its flaws, rather than the sound alternatives. It's hard to swim against the stream!
Compared with Rittershausen's, Beckerath's and Zander's writings, the writings of Ludwig von Mises on monetary
theory and practice are full of errors, omissions and misunderstandings, as I hope to show in one of the future
issues of this series.
But they and the likewise faulty theories of Henry Meulen were, usually, the only free banking writings easily
accessible to the few libertarians interested in monetary theory. Thus their theories are still accepted in these
circles. Mises became even relatively popular among them, not only because of his other excellent writings, but, as
I am convinced, after a recent reading of his major work on monetary theory, because he shared many of the
popular fallacies on this subject.
Thus libertarian monetary theory is, generally, still at a deplorable stage. Not even a comprehensive bibliography
has been compiled, far less abstracts, and most of the comparative critical essays for the integration of the existing
theories and observations and experiences have still to be written.
Libertarian Microfiche Publishing intends to do its share of this work and has already done much in this direction.
The Research Centre for Monetary and Financial Freedom was established for this purpose and still needs many
collaborators.
An ideal money system may indeed provide the Archimedean leverage required.           John Zube, 3/79.

********************************************************************************************
John Zube, 7 Oxley St., Berrima, NSW, Australia 2577 9.4.1985

Dr. Walter Zander,
16 Alvanley Gardens, London NW6

Dear Dr. Zander,

                            I have still not been able to follow up all the suggestions you made in our two talks in
84. I am busy in reproducing, among other things, some old monetary freedom writings. Among them a work by
Henry V. POOR, Money and its Laws, 1877, which none of the other monetary freedom advocates seems to have
noticed.
I do hope that you received my transcript and that it was legible to you. I would like to be allowed to quote from
this. Perhaps you find the energy and time to send me the corrections and additions you find necessary?

You had asked me for literature on the connection between monetary freedom and peace. Alas, apart from the
letters and drafts of v. Bth. and my own, there is not much of this literature around. I would send you my own two
books on this - but one is only a manuscript, in a faded original or imperfect duplicates, also in a retyped issue,
which served me as a microfiche master, of which I could only send a photocopy, or a microfiche. The latter would
be of no use to you without a reading machine. The second book is in very small and faint print - from my first
attempt at offset-printing, and would be poison to your eyes.
Thus it may have to suffice if I try to summarise the case somewhat and perhaps send you some copies of relevant
Beckerath papers?
Beckerath was never a narrow-minded monetary freedom zealot, what others would term a "money crank". He was
aware of and interested in wider issues, a peaceful and just society in general and made just as radical proposals for
these. But he also discovered that there is almost always a monetary freedom link to the other social, economic and
political problems. I remember him drafting e.g. the Statutes for a "Gesellschaft zur Bekaempfung der
Ehelosigkeit" and it tied in the freedom to issue and the choice of standards - although this might seem absurd on
first sight.

To simplify matters to me, I might just copy two short entries from my book : "An ABC against nuclear war",
whose text in the original is too small and faint for you to read :

1.) MONETARY DESPOTISM
Under the forced currency of a centralised and monopolistic note issuing bank the economy will always fluctuate
between inflations and deflations and frequently have both at the same time. The resulting crises nourish
totalitarian movements, ideologies, racism, nationalism and religious hatreds. They make despotism relatively
strong, democracies relatively weak. They condemn many revolutions to failure and prevent many people from
fleeing from a dictatorship or deserting its armed forces. In these and similar ways does it preserve the danger of
nuclear war.
Together with taxes it allows governments to finance anti-people weapons, even against the will of the majority.
By means of the monopoly for the issue of exchange media for cash wage payments, governments could always
direct people into employment at the nuclear weapons and auxiliary military facilities, simply by starving other
employment opportunities of cash.
See: Deflation, Desertion, Dictatorships, Economic Freedom, Employment, Freedom of Migration, Free Trade,
Inflation, Market, Monetary Freedom, Nationalism, Refugees, Refusal to Accept, Totalitarianism, Unemployment,
Peace Plans 9-11.
( I will not attempt to copy all these here. In Peace Plans 13 & 14 I tried also to prove that monetary freedom would
be essential for the realisation of a successful tax strike and for some voluntary taxation schemes and that both
would help to prevent wars. Let me just quote one further entry from the above-named book. All of them are all to
short, offered merely in assertions, without proofs, in order to cram in something like 500 different points that I
tried to make.)

MONETARY FREEDOM : Without monetary freedom or free banking there will be unemployment and inflation
and both make it easier for the war hawks.
Monetary freedom could assure employment to workers who resigned from nuclear weapons factories, for
deserters and refugees from dictatorships.
Monetary freedom would do away with depressions, and after a while, when savings, under full employment,
would build up rapidly, it could even abolish involuntary poverty and would thus help to disarm the communist
fanatics who believe that communism would deliver the goods and that nothing else could.
It would be essential to finance any prolonged liberation or revolutionary war. It would be helpful for paying some
of the less idealistic deserters from the other side. It would be necessary for the integration of millions of deserters
and refugees into the production process - in the shortest possible time. (Beckerath mentioned days, at most.)
The best defences of the right to issue private money are to be found in the writings of Arthur Kitson and E.C.
Riegel (especially in the latter's "The New Approach to Freedom"). Both didn't find the right techniques to make
the best use of this freedom. They can be found in the writings of Dr. Walter Zander, Prof. Heinrich Rittershausen
and Ulrich von Beckerath. See Peace Plans Nos. 9-11.
See: Desertion, Dictatorships, Employment, Financing, Inflation, Monetary Despotism, Refusal to Accept,
Unemployment.
(It tried to interlink all points, alphabetically listed in this book, by numerous cross-references and some point by
point programmes in the end. )

One could and should list many more points here:
Beckerath stressed the importance of free and high interest rates, freedom to invest, freedom from taxation and
inflation and the importance this could have in accumulating so much in e.g. old age pension funds that everybody
could become a millionaire, through high insurance contributions stretched over a 40 year working life. ($12
annually for 40 years would give a pension of 3000 annually for 20 years. $ 1200 annually for 40 years would thus
give 300 000 annually for 20 years. Q.E.D. Can any communist expropriation scheme promise everybody as
much? How high would productivity be with as much capital available to increase it?

 Almost all underdeveloped countries are, under present conditions, a potential cause of war, if they have not
already become involved, by revolutionary attempts, in the East/West struggle or in some nationalistic and
collectivist wars. Monetary freedom would be an as essential part in their rapid development as it was once in
Prussia, the US, and Scotland and as it is necessary for the further rapid developing of the supposedly already
"developed" countries.

In the whole sphere of cooperative and voluntary socialism many absurd and self-defeating systems are proposed
and practised for a while. Beckerath had sound notions on this and also was aware that long term success in this
depends also on the application of monetary freedom views. Successful voluntary and cooperative socialism widely
practised in the Western World now would help to ideologically undermine and finally topple totalitarian state
socialism and the danger of war which it brings with it.

Another important point is that the panarchistic society which Beckerath envisioned, which would realize full
minority autonomy for all who want it, and thereby eliminate many motives for wars and revolutions, would
become practicable and acceptable only under conditions of full employment and in the relatively calm times of
stable currencies. Otherwise fears and hatreds of foreigners as potential competitors, predominate in public opinion
and would disallow any extension of liberties for them and dissenters.

The connection between Free Trade, monetary freedom and peace is almost too obvious to need pointing out. Both
Beckerath and Milhaud have written much on this and I need not tell you anything on this.

But you will possibly enjoy the copy of a letter of Bth. to Ri. on this, written 2.6.40, seemingly in the Nazi-sense.
Beckerath always said : Write as if a censor were looking over your shoulder.

Beckerath and Rittershausen sponsored Holzhauer's writings on "Cash Payments in Occupied Territories" with
several purposes in mind : To demonstrate the applicability of monetary freedom under all conditions. To make
wars less oppressive and long lasting, to induce thinking about a similar financing or revolutions against despotic
regimes. Beckerath had finished a manuscript on the latter subject. It was burned with his library in 1943 during an
air : One of the less known great losses of WW II.

Governments in exile, to focus all opposition forces against dictatorships and turn them into useful allies, should be
fully autonomous and free to issue tax foundation money to their supporters.

On the payment of deserters who are illiterate, we discussed in detail how they could and should be paid with
privately coined silver coins. His whole programme for attracting and inducing desertion from enemy conscripts,
en masse, is very interesting and has not yet been compiled in a single booklet. (This is planned, though.) Monetary
freedom is quite essential for the success of such a scheme.

The uprising in Eastern Germany and East Berlin on June 17th 1953 ff. was quelled not only by Soviet tanks ( their
commander in Berlin deserted later, but also by the communist central bank : withdrawing wage payment means
from all insurrectionist areas. This is a little known feature which Bth. pointed out and stressed in his discussions of
preparations for another and this time successful uprising.

During the Bank Enquete of 1908/9, it was explicitly pointed out that legal tender would be required to finance the
next war. You may remember Beckerath pointing this out frequently.
The civil war programme called the Communist Manifesto, does also make no bones about this in its point 5.
Would WW I have been as long and terrible without legal tender, could the inflation and World Crisis have
happened after without it and central banking? Would we not have been saved the nazi regime and its crimes and
the present preparations for WW III?

People ignorant of the benefits of monetary freedom do usually favour immigration restrictions and these prolong
nationalism and racism and the threat of war. When immigrants cannot cross frontiers, sooner or later conscripts
will. ( A variation of Bastiat's famous saying : When goods do not cross frontiers, soldiers will. )

Much could be said on Beckerath's land reform proposals and how open coops on Hertzka's principles, with a few
variations, could in a libertarian way "socialise" natural resources, with voluntary time-purchases of such
enterprises for the transition period and how monetary and financial freedom ties in with this. The Georgeists and
others are right in considering access to land as an important factor for peace and freedom.
I had noted for possible copying for you, some Beckerath papers in my filmed issue on pages
996,1002,1293,1297,1309 and 17. If you are still interested, I might copy them for you in my next mailing. For the
time being two of my recent translations of 2 of his letters are enclosed. (To Schinnagel, 1.5.59, to Naumann,
23.1.57.)

These short hints, together with these copies of old letters by Ulrich von Beckerath, may suffice for the time being.
I would gladly take up any specific point - as far as my all too limited knowledge and references last - with you,
should you be interested and bother to set it out in handwriting.

I have collected some more Beckerath material for my microfiched collection of his writings. Henry Meulen
destroyed almost all his correspondence, under the illusion that his magazine would reproduce the essence. How
little of Beckerath's ideas have found their way into it and, to my knowledge, no criticism of his monetary ideas
was reproduced by Meulen at all. I am just involved in producing an index to articles in The Individualist, just
using 2 drafts by M. and one, for my incomplete collection, made by myself. The correspondence of Rittershausen
I perused and copied, although incompletely. His material (I hope complete) has been given to the University of
Koeln, as a Berlin friend wrote to me recently. One other survivor of the small Berlin circle around Bth., Egon
Kortmann, already very sickly, sent me what he had left. The remaining papers of Beckerath are in Duewal's
possession in Berlin. I have not yet been able to see them during my two Berlin visits after Bth.'s death, and have
only hopes for the third attempt.

Have you still got your post WW II correspondence with B. complete and is there any chance to get it from you for
copying? Likewise your correspondence with Rittershausen? Could you perhaps leave at least a note that it be sent
to me after your death, for utilisation of its social reform contents in my series? I would gladly pay the shipping
costs and something for the trouble.
As I assured you before, I would welcome any other contributions, original and reprints, for my microfiched peace
plans series.

I tried to list some of the main Bth. ideas in my supplementary literature list of January 1985, which I have not, I
believe, sent to you previously.

                   Best wishes for now and hoping that I still find you
                  mentally active on my next visit to London,
John Zube, 7 Oxley St., Berrima, N.S.W., Australia 2577       9.4.1985

Institut fuer Bankwirtschaft,
T.U. Berlin,
Uhlandstrasse 4-5,
1000 Berlin 12

Betr.: Ideen-Wettbewerb ueber das "Berlin im Jahre 2000".

Sehr geehrte Herren,
                      als ein frueherer Berliner, zu einem kurzen Besuch zurueck in Berlin in November 1984, nahm
ich grosses Interesse an Ihrem Wettbewerb.
Als Mitglied der nicht mehr bestehenden Berliner Gesellschaft von 1952 zur Bekaempfung der Ursachen der
Arbeitslosigkeit und als literatischer Erbe, Freund und Verleger des 1969 verstorbenen Ulrich von Beckerath,
moechte ich Ihnen zu diesem Wettbewerb eine seiner wichtigsten und direkt auf Berlin bezogenen Arbeiten
unterbreiten. Sie bildete die Grundlage von jahrelangen Diskussionen in einem kleinen Kreise, hauptsaechlich von
Arbeitslosen. Wir sahen aber damals keine Moeglichkeit dieses Programm an die Oeffentlichkeit zu bringen.
Selbstverlag konnten wir uns nicht leisten. Es zirkulierte nur in einigen Abschriften. Ich habe es in den letzten
Jahren wenigstens verfilmt, in Deutsch und Englisch, aber da das Mikrofilm Medium noch nicht genuegend
bekannt ist, ist es so zunaechst auch noch weiter begraben.

Es packt eines der verbleibenden Grundproblem Berlins : Arbeitslosigkeit und Absatzmangel an seinen Wurzeln an
und liefert Loesungen die auch noch fuer heute passen, unbeachtet aller wissenschaftlichen und technischen
Veraenderungen.

Seitdem F. Hayek sein Buch ueber die Entnationalisierung des Geldes schrieb (1976) haben eine ganze Anzahl von
Volkswirtschaftlern die Frage der Bankfreiheit wieder angeschnitten. Siehe z.B. die Uebersicht von

Rainer Gerding & Joachim Starbatty: Zur Entnationalisierung des Geldes, Walter Eucken Institut, Mohr,
Tuebingen, 1980,

Pamela Brown, Monetary Reform and Competition, Literature of Liberty, Autumn,1982.

Wie sehr das Interesse an dieser Alternative gestiegen ist wurde mir kuerzlich besonders gezeigt durch den letzten
Katalog des Laissez Faire Bookshops in New York, der eine ganze Reihe von Nachdrucken und neuen Werken
ueber Bankfreiheit bringt:

CANNAN, Edwin, ed., The Paper Pound of 1797-1821, A Reprint of the Bullion Report and Resolutions Proposed
to the House of Commons, one of the major documents in English monetary history, with an excellent introductory
essay by Cannan on the monetary history of England during the period and the evils of paper money, hd. 145p,
1925, Sale $ 8.75.

CONANT, Charles A., History of Modern Banks of Issue, a comprehensive history of banking in every major
country in the world, with an interpretation of economic crises in terms of monetary mismanagement., hd. 842p,
1927, Sale $ 17.50.

DUNBAR, Charles F., Laws of the U.S. Relating to Currency, Finance and banking, from 1789 to 1896, compiled
by D., 1897, hd. 310p, Sale $ 9.75.

DUNCOMBE, Charles, Free Banking, an early American defence of the efficiency and superiority of free banking,
with a critique of the dangers of government central banking, hd. 356p, 1841, Sale $ 12.50.

FARRER, Thomas Henry: Studies in Currency, 1898. (Hard-hitting free market essay on bimetalism, the gold
standard, legal tender and world currrencies. Debunks a host of fallacies. hd. 415p, Sale: $13.75.

FETTER, Frank Whitson, Development of British Monetary Orthodoxy, 1797-1875, a detailing of the British
debates over the role of sound money and the gold standard from the Napoleonic Wars to the end of the 19th
century, hd, 296p, 1848, Sale $11.25.

FULLERTON, John: On the Regulation of Currencies and the Bank of England. A leading member of the 19th
century English "Banking School" challenges the advocates of Central Banking and their belief in fixed monetary
"rules". 1845, hd.,253p, Sale, $11.25.

GILBART, James W., History of Banking in America, A detailed historical analysis of the failure of the National
Bank of the U.S. and the inflationary consequences of monopoly baking in England in the early 19th century, hd,
207p, 1837, Sale $ 9.75.

HAYEK, Friedrich A., Denationalization of Money, Hayek's analysis of the disastrous consequences of State
control of money in society. The case for a free market in money, pb, 122p, $ 7.50.

HILDRETH, Richard, The History of Banks, presents an account of the evolution of banking in Europe and
America, along with a strong defence of free, private competitive banking, hd. 166p, 1840, Sale $ 8.75.

JOPLIN, Thomas, Outlines of a System of Political Economy, a lucid analysis of the workings of the market
process, particularly notable for an explanation of money's effect on the economy which is very similar to that of
the Austrian Economics, hd. 495p, 1823, Sale $ 17.50.

MILLER, Henry, Banking Theories in the United States before 1860, an excellent history of thought. Examines
early controversies over the role of banks, gold and paper money, and their relationship to prosperity and crises, hd.
240p, 1927, Sale $ 8.75. (Sehr bald auf Mikrofiche von mir fuer $ 1 zu haben.)

ROTHBARD, Murray, The Mystery of Banking, "A-Z on the basis of economics, banking, money and credit,
inflation. Rothbard calls for abolishing the 'fed' and returning to a 100% gold-backed system, free of government's
inflationary dominance." hd, 286p, $19.95.

ROTHBARD, Murray: How Government Destroys Our Money, shows how the boom and bust cycle is caused by
government manipulation of money. Audio tape, 59 minutes, $ 10,95.

ROTHBARD, Murray, Banking and the Federal Reserve, 2 audio tapes, 2 hrs., Sale $ 14.95. "In his usual
humorous style, Rothbard traces the origins of central banking and describes the founding of the Bank of England.
Turning to the US, he applauds the Jacksonian victory over the Second Bank of the U.S. as 'the high-water mark' of
American banking history. His revisionist look at the development of the Federal Reserve explains the massive
credit creation which led to the Great Depression. Fascinating!"

SHAW, William A., Select Tracts and Documents Illustrative of English Monetary History, hd. 214p, 1896, Sale
$.8.75.
SCROPE, G. Poulette, Principles of Political Economy, an exposition of economic theory from a perspective of
"natural rights" with an argument for free banking, hd. 457p, 1833, Sale $ 13.75.

SIEGEL, Barry N., editor: Money in Crisis, The Federal Reserve, The Economy & Monetary Reform, foreword
by Leland B. Yeager. "Over the past few decades, attempts by the Fed to manipulate the money supply to produce
desired outcomes have failed miserably. In this volume 13 economists address the crisis in monetary policy.
Contributors include Alan Reynolds, Murray Rothbard and F.A. Hayek, qpb, 328p, $12,95, out in 1985.

SUMNER, William Graham, A History of American Currency, one of the leading American individualists presents
a lucid, devastating analysis of paper currencies and inflation in American history beginning in the colonial era,
had. 391p, 1874, Sale $ 12.50. (Reproduced in my "Peace Plans", No. 400, $ 1.)

THORNTON, Henry, An Enquiry into the Nature and Effects of Paper Credit of Great Britain, an early 19th
century classic on the inflationary effects of monetary manipulation, along "Austrian" lines. Contains a fifty-page
introduction by F.A. Hayek, who calls this work "outstanding", hd. 368p,1802, Sale $ 12.50.

TUCKER, George, The Theory of Money and Banks investigated, hd. 444p, 1839, Sale $13.75.

Warum zitiere ich diesen Katalog hier? Er beweist, dass Beckerath mit seinen monetaeren Freiheitsideen nicht
mehr allein steht.
Ich behaupte, dass er immer noch, zusammen mit Professor Heinrich Rittershausen, der 1984 starb, an der Spitze
des Geldfreiheitsdenkens steht. Er ist den modernen Advokaten der Geldfreiheit aber dennoch meist ganz
unbekannt. Es ist daher an der Zeit fuer Berlin diesen seinen Pionier endlich zu wuerdigen.

Falls diesem Programm ein Preis erteilt wird so wuerde ich ihn zur Veroeffentlichung dieses Programmes und
aehnlicher Plaene von Ulrich von Beckerath verwenden.

Seit meinem 1984 Besuch in Berlin und London ist geplant ein Mitteilungsblatt fuer Anhaenger der Geldfreiheit
herauszugeben, zunaechst nur in Englisch und Deutsch, mit laengeren Beitraegen in Mikrofiche-Beilagen.

Uebrigens haben Ulrich von Beckerath und Heinrich Rittershausen auch viel ueber die Verbesserung von
Hypothekenbanken als Emissionsinstitute geschrieben und ueber Verbesserung der Anleihen-Verrechnung, z.B.
zur Steuerzahlung. Viel davon wird in kuenftigen PEACE PLANS Ausgaben verfilmt werden, zusammen mit
Rittershausens leider unvollendeten Geldtheorie. Beide waren die Hauptverfasser der "Vier Gesetzentwuerfe" aus
den dreissiger Jahren, die, mit geringen Aenderungen auch heute noch angewandt werden koennten.
(Sie koennen diese Vorschlaege daher auch als meinen 2. Beitrag zum Wettbewerb ansehen. Siehe die Mikrofiche
Ausgabe in Englisch und Deutsch in Peace Plans No. 40.)

Rittershausen entwickelte und erklaerte diesen Vorschlag in seinem Werk:
"Das Andere System", das in zweiter Auflage kurz vor der 1948 Waehrungsreform erscheinen sollte aber diesen
Termin leider verpasste und so nicht erschien. Ich habe dieses Werk aber wenigstens auf Mikrofilm reproduziert -
und lege beide Werke in dieser Form hier bei.
(Sie moegen es als Einsendung No.3 ansehen. Ein Preis wuerde fuer eine Buchausgabe verwandt werden.)

Ich sehe in der Anzeige Ihres Wettbewerbs in der Berliner Morgenpost, 26.10.84, dass die "Ergebnisse des
Wettbewerbs in einem Tagungsband veroeffentlicht" werden sollen. Nun, das wuerde hoechstens auf die ersten
drei zutreffen. Es gibt aber wahrscheinlich viele interessante Beitraege auch under den anderen, die leicht zu
tausenden kommen koennten. (Die Reichsbank erhielt waehrend der Weltwirtschaftskrise ueber 1000 Vorschlaege,
die meines Wissens nie veroeffentlicht wurden.) Auf Mikrofilm koennten all diese Vorschlaege die Sie jetzt
erhalten werden, auch wenn es tausende sein sollten, leicht und billig und unverkuerzt veroeffentlicht werden.
Wenn auch nur ein kleiner Teil der sich am Wettbewerb Beteiligenden auf einen Aufruf hin eine Vorbestellung
fuer diese Mikrofilm Ausgabe macht, dann koennten die Kosten davon leicht gedeckt werden.
Da ihre eigene Bank, fuer Scheckverfilmung vielleicht sogar geeignete automatische Mikrofilmkameras besitzt,
koennte die Verfilmung sogar noch billiger werden.

Hier erschien in 1981 eine Microfiche Ausgabe: Australian Financial System Inquiry, Microfiche Edition of Public
Submissions, auf 33 Mikrofiche. Etwas Aehnliches koennten sie wohl auch tun, im oeffentlichen Interesse,
wenigstens solange es noch kein allgemein bekanntes Archiv fuer Sozialreformideen gibt oder ein allgemeines
Ideen-Archiv. (Hierueber lege ich ihnen bei Peace Plans 183 und 20/21, die sie als mein Vorschlag No. 4 ansehen
moegen.)

Anlagen : Photokopie "Berlin Programm",
         LMP Supplementary Literature List, January 1985 (mit Hinweisen auf
         Schriften von U.v.Beckerath. Seine 3 Buecher ueber Geldfreiheit wurden
         in Peace Plans 9-11 gedruckt und spaeter verfilmt.)
         Mikrofiche 9-11,20-21,40,41,183, 347,348,
         Discussion Paper No. 7, Research Centre for Monetary & Financial Fr.
         Literature List, 1985.

Zu weiteren Auskuenften ueber diese und aehnliche Plaene bin ich gern bereit.
Eine Mikrofiche Ausgabe aller Vorschlaege zu Ihrem Ideenwettbewerb moechte ich hiermit bestellen.

Als einen Kurzvorschlag moechte ich noch hinzufuegen:

Versuchen Sie doch Berlin zur Informationszentrale der Welt zu machen, durch einen oeffentlichen Appell an die
Buecherwuermer Berlins von den Moeglichkeiten der mikrographischen Technik Gebrauch zu machen um Berlin
zu einer Mikrofilm-Zentralbibliothek der Welt und zur zentralen Auskunftsstelle zu machen.
Wenn ein Einzelner wie ich schon ueber 500 Titel in dieser Form in wenigen Jahren herausbringen kann, was
koennten dann zehntausende von Aktivisten in dieser Hinsicht tun? (Vorschlag No.5!)

Auf Einzelheiten moechte ich hier und jetzt aber nicht eingehen.

                                  Hochachtungsvoll,
Debt - Debt into Currency?

Many concerned about monetary questions are opposed to "turning debt into currency" but do not make some
necessary distinctions:

1.) If there is only one issuer allowed to issue money, usually the government or its privileged institution, and the
government is running into debt and unable to raise sufficient taxes or loans to cover its expenditures, then it tends
towards "deficit financing" or inflation, by over-issuing its paper money which it can do since it has the legal
tender "quality" and there are no competing currencies which would drive out a depreciating currency (which is not
legal tender).
This type of "turning debt into currency" is, certainly, condemnable.

2.) There have been and there are numerous attempts to turn long term securities, from government bonds and
mortgages to industrial bonds, into currency, under the assumption that certain of these capital certificates would
be so "secure" that they could serve as "cover" for currency.
But more than long-term security is required: An immediate usefulness, cover, acceptance is needed. In other
words, all these attempts ignore the "reflux principle". Until these certificates are finally redeemed, many months
or even years later, the notes issued upon them are "in circulation" but no one is obliged or greatly interested in
giving any value for them in return. They have no "acceptance foundation" until they are redeemed. Thus a
continuous reflux of these notes to the issuer is not assured. Consequently, they must depreciate. If I were a barber
and issued hair cutting tokens, acceptable by me in 5 years only, they would be comparable to a currency that is
thus "secured". To have a chance for my haircutting notes to be acceptable, at least locally, I would have to be
prepared to accept them immediately. And, if I really wanted to circulate them locally, I would combine with other
such potential issuers for common issues.

3.) Discounting short term bills of exchange, given in payment for goods already produced and sold, discounting
them with private banknotes, that are not legal tender but subject to a free market rate and the right to refuse their
acceptance, notes that reckon e.g. in gold weight units, and in which prices and wages are marked. (Issue of
banknotes according to the banking principle.)
In this case, seemingly, only short-term debt certificates serve as cover for the currency. But much more is
involved, namely, a multilateral clearing process of services for goods and goods for services etc. Work services,
machinery, raw materials, organization, etc. have gone into the production of goods that were sold to a wholesaler
and paid for with a bill of exchange. The bill is then "discounted" at a note issuing bank and with the proceeds
(more suitably cut up bills - banknotes) the workers, suppliers, fees and profits are paid. In the meantime, the goods
are distributed to the retailers, on terms. Here they encounter the final consumers, armed with the banknotes (the
cut up bills of exchange). The consumers get the goods they want in exchange for their notes. The retailers pay
with them their debt to the wholesalers. (Usually not directly, but over the bank, which would then settle them
against the bill of exchange of the wholesaler.) The wholesaler, getting these notes directly from the retailers (or
indirectly, through the bank), uses them to pay his bill of exchange. One self-liquidating circulation process would
then be closed, making room for others. Nothing but clearing for mutual value exchanges would be involved. It
would take some time, involve various certificates and accounts but would amount only to mutual cancellation or
settlements of debts, just the same.
This kind of "turning debt into currency" or of liqudifying one's own assets, is quite sound and desirable. It is
normally termed "turnover credit" and without it the division of labour comes soon to a stop.
To achieve it, no rare metal coins are required nor government legal tender - if people are free to help themselves.

The one basic danger lies in some privileged people being allowed to turn unsuitable debts into a forced currency,
that is either inflated or deflated or, at the same time, generally over-supplied while short supplied in some areas of
the economy (stagflation). (When bureaucrats are awash in government money, that does not necessarily mean that
all private enterprises are.)

One great advantage of "turning debt into currency" lies in the option for monetarily freed people to turn their own
work, service and supply capacity directly or indirectly into their own kind of "cash", liquidifying and circulating
them in this form and, thereby achieving the reflux of these certificates, their own sales and with this the
disappearance of these notes from circulation.

It makes a great difference whether one can issue one's IOUs or token money (as debt certificates turned into
currency), while all the time being prepared to redeem them and wanting to redeem them with one's work or
services or goods, or having to wait until some customers appear, armed with the government's exclusive and
forced currency, under conditions which form usually a buyer's market.

The exclusive and forced and long-term debt foundation for money leads to inflations and deflations. The
competitive, short term, market rate and self-obliging debt foundation is self-liquidating, employment and sales
promoting, equalising and liberating instead.

One should distinguish between exclusive and coercive debt certificates with a long-term cover from competitive
certificates, subject to a free market rate, which are only the equivalent to short term service and goods obligations
that one has put upon oneself - or one's partners, with their consent. The difference is as large as between
despotism and freedom. It is the difference between monetary despotism and monetary freedom.

One cannot rightly either condemn or accept all different types of debt foundation at the same time.

                                             J.Z. 14.12.85.


Development, Dr. H.G. PEARCE & John Zube, 1985.

POSSIBLY STILL INCOMPLETE! ONLY 2 PAGES OF A PROBABLE 4!???

SUMMARY OF A DISCUSSION BETWEEN DR. H.G. PEARCE AND JOHN ZUBE ON DEVELOPMENT OF
INDIA.

(For years I had mislaid these notes and tried even to reconstruct them from memory. Only today I managed to find
them again, in my file on the New Hebrides. I believe that in some respects this summary expressed my own ideas
on this better and clearer than I myself could. - John Zube, 31.12.1985.)
-------------------------------------------------------------------------------------------------------------------------------------------
--

INDIA HAS A CURRENCY FAMINE.
This is shown by UNEMPLOYMENT, LOW PRICES and HIGH INTEREST RATES. (To this I added later: No
full monetary freedom as yet. Barter and subsistence production are still wide-spread.)

Common speech recognizes that "they have no money". In 1878 Hyndman said that India's famines are
FINANCIAL famines. The shortage of Capital is secondary to the shortage of MONEY. Lack of money restricts
trade and the result is that gains from trade give no surplus for capital development. Indeed, it is surprising that any
surplus is achieved at all. Lack of CAPITAL is no reason for unemployment or difficulty in sales. If capital is
lacking people have to work MORE owing to INEFFICIENT EQUIPMENT. Surpluses cannot be expected when
existing tools and man-power are not being fully used.

   Money shortage cannot be cured by inflation, taxation, loans or even by foreign aid.

The FIRST STEP must be to f r e e          t r a d e in goods and services so that every potential exchange can be
mediated.

Only MONETARY FREEDOM can give the OPTIMAL supply, which should be independent of the supply of
GOLD, SILVER or FOREIGN exchange.

   All that is needed is the RIGHT to transform ILLIQUID ASSETS into PRIVATE NOTES having limited, local
and temporary circulation.

   POTENTIAL ISSUERS and their "COVER". Here only private, cooperative or municipal paper money
WITHOUT legal tender is mentioned, i.e. NOTES which may be freely refused, quoted or discounted and hence
which will receive all the circulation they deserve and would not circulate at all without a sound basis recognized
by voluntary acceptance of theses tokens. The first three examples are chosen only to recall the traditional
alternatives to FIAT MONEY: -

1) MONEY LENDERS no longer FORCED to deal with the scarce State-supplied legal tender money could set up
local banks of issue, operating on the old 'banking principle'.

2) LOCAL GOLDSMITHS or COPPERSMITHS could make use of free coinage, even full-value copper coins,
which are still practicable under present conditions.

3) MUNICIPAL AUTHORITIES could use local script money based on and accepted at face value for LOCAL
RATES and to the extent that federal taxes are locally collected and spent. After this reform the extortion of taxes
would no longer resemble the torturing of a deaf and dumb man in the attempt to extract a confession from him.

4) LOCAL GENERAL STORES could issue GOODS WARRANTS or purchasing certificates or shop-token
money with shop foundation. Where such shops are missing, they could be established on a co-operative basis.

5) LOCAL TRADESMEN - builders, bakers, barbers, tailors, physicians, solicitors, judges etc. could issue,
preferably in association CERTIFICATES accepted in par in payment for goods, services or debts..

6) Small scale local PRODUCERS, especially farmers with some surpluses for sale could issue, alone or in
association, GOODS-WARRANTS that they would accept at any time at par, in payment for goods, services or
debts.

7) Hotels, cafes etc. could issue PURCHASING CERTIFICATES.

There are many other potential issuing centres, e.g. Notes of Landlords for rent payments, of teachers for school
fees, of churches for contributions, Railway money, Bus Money etc.

Wider ASSOCIATIONS of potential issuers would widen the circle of potential acceptors. But, for foreign trade,
there is no need for them to unite into a SINGLE MEANS OF PAYMENT.

(Gap here, 2 pages, or continuance????)
No, PRIVATE media of exchange cannot and will not be issued often or with success to finance LONG-TERM
LOANS directly - but they could be used indirectly for SUBSCRIPTION to long-term loans or for purchase of
securities. IMMEDIATE COVER by GOODS or SERVICES in daily demand and ready for sale is required - as it
is for PRESENT current means of payment.

   What would be the results of this basic reform?
Money lenders would lose their power, peasants, merchants, and workers would become independent of local
money-lenders and of the scarce exchange-medium supplied by the CENTRAL BANK. (This SCARCITY
continues partly even IN INFLATIONS.)
Repayment of debts would depend solely on the capacity of debtors to supply products or services.

   Monetary freedom would permit WANTS (both of VENDORS and of WORKERS) to be transformed into
effective DEMANDS.
   Monetary freedom would maximize the possibility and the incentive to save for long-term investments because
   a) It would allow production for a market & accumulation of savings.
   b) No danger of inflation to discourage investors.
   c) No ceilings on returns from investments.
   d) Risk of investment would be less because sale of products would be easier.
   e) Repayment of debts would no longer be dependent on scarce and monopolized media of exchange.

   Competitive issue of purchasing certificates would permit gradual* purchase of land and industrial capacity,
thus achieving ACCESS to the MEANS OF PRODUCTION in a RIGHT and PEACEFUL manner (without calling
on the STATE and on EXPROPRIATION BY TAXATION - HGP).

J.M. Zube:

(*) Here Dr. Pearce was a bit too short in his summary. "Gradual" means here that goods warrants etc. could be
used to facilitate the purchase with bonds and the repayment of the bonds, by being the agreed-upon means of
payment to pay back the bonds with which the land or industrial capacity was acquired.
As Ulrich von Beckerath said in "Must Full Employment Cost Money?", page 1198 of the PEACE PLANS No. 10
issue of this work:
"What working man has ever considered that if the body of workers of a factory or of a large estate paid the owner
quarterly one-fiftieth of the value of the undertaking and that seventy-nine times, the workers would own the
undertaking, provided the owner is satisfied with an interest rate of 1 1/4 % quarterly on the debit balance
remaining at any time?
Such low interest rates will become practicable and attractive again - after monetary freedom, in particular the
abolition of legal tender and the issue monopoly of the central bank, has done away with the inflation risk. - John
Zube, 31.12.1985.

==========
I searched today in vain for the original of Dr. Pearce's summary, which may have come to 4 pages, in
hand-writing.
- J.Z., 11.1.2001.

FB Kitson Money Intro
From PEACE PLANS 42-44

KITSON, ARTHUR, The Money Question, 1903, 231 pp, was reproduced in full in PEACE PLANS 42 - 44, 24 x
reduced. An obituary on him was fiched in PP 815.

Here only my introductory notes are scanned. - John Zube, 30.12.02.
-----------------------------------------------------------------------------------

INTRODUCTION TO THIS FICHE ISSUE

Arthur Kitson was in this work a forerunner to F. A. Hayek with his work 'Denationalization of Money" (Hobart
Paper Special No. 70, IEA, 1976, somewhat reviewed in Peace Plans No. 19 C.)
Kitson's, like Hayek's work, is weakest in the alternative money system it proposes. Both are strong in the
monetary freedom framework they suggest.

Kitson was one of the few people who so far clearly recognized the absurdity, wrongness and harmfulness of the
note issue monopoly, of monetary despotism. His analysis, some of his comments and his alternative proposals for
mutual banking do, I believe, leave much to be desired and contain some basic flaws.

But his basic criticism of monetary despotism it, I believe, correct and he does clearly advocate monetary freedom:
The abolition of all State legislation and regulation in this sphere.

(Later in his life he fell victim to social credit notions but his early attack upon the money monopoly remains good.
- J.Z., 30.12.02.)

If this monetary freedom were realized then sound private money issues and the unsound ones (which he, as I
believe, proposed) would come to compete with each other. Then, seeing that Gresham's Law applies only to legal
tender currency (fact he was apparently not aware of), the good money would drive out the bad, thus eliminating
faulty banking techniques and preventing inflation and deflation. Thus I for one, do not blame him for flaws in his
monetary alternative. They do not matter under monetary freedom. Defenders e.g. of freedom of expression should
not be blamed for the use they themselves make of it.

Indeed, there are many flaws in this work. Some of them I commented upon in the text. I believe that he had no
clear understanding of the primary cause of inflation, of its danger and how it could easily be prevented - apart
from his general and rightful proposition of monetary freedom. He should have been more specific in that.

Kitson, as you will find, wants to completely dissolve the tie between money and a commodity like gold. (See p.
114). Contrary to this, the German Schoolon money, as represented in PEACE PLANS No. 8-11, 19, 40, 41 (and
many others, later. - J.Z., 30.12.02), just wants the exclusive and privileged position of such a commodity removed.
It wants to allow freedom of contract here, also, allowing debtors to settle in gold VALUES, e.g. by clearing or by
using any physical means of exchange to transfer gold VALUES instead of obliging them to deliver gold COINS
upon demand.

Ultimately, even gold need not be legal tender under a free monetary system, a means of payment that can be
imposed upon creditors. But what must be stopped or prevented is an automatic legal right of creditors to demand
payment in gold.

I would have preferred it if Kitson had used his ingenuity to further develop the technique for sound exchange
media issues (like von Beckerath later did, rather than speculate upon an ideal and abstract way of measuring and
comparing values. In his enthusiasm for his value theories he did neglect this aspect - as many other monetary
reformers did. But let us be at least as tolerant as Arthur Kitson was himself. Monetary freedom means freedom to
choose, to accept, to issue or to reject any kind of non-fraudulent and non-coercive money, to contract upon any
kind of exchange medium and standard of value. It only requires fulfilment of one's own contractual obligations
and basic honesty - as expressed especially in the acceptance of the own notes at any time at par with their stated
nominal value.

His chapters I, XIII, XIV, XV and XVII were the most interesting ones for me. Some of the others I found hardly
worth reading because they were full of either merely self-evident truths or, worse, of unjustified generalisations,
wrong conclusions, prejudices and myths. But I am prepared to forgive him for these, as I am willing even to
forgive the preacher of a religion - if only he also preaches tolerance towards other believers and towards
non-believers, as Arthur Kitson did, in the monetary sphere, e.g. on page 230.

The short alphabetical index I compiled does not open up this whole work, its thoughts, references and theories but
just indicates the passages and aspects which were of interest to me.

I have presumed that the copyrights in this work have expired. John Zube, 3/4/79
____________________________________________________________________________________________


ALPHABETICAL INDEX OF TERMS INTERESTING TO THE PUBLISHER OF THIS FICHE ISSUE
of the above introduced book. The numbers refer to its page numbers
==================================================================================

Abstract standard of value 55, 56

Acceptance foundation 104ff, 107/8, 181, 183
Cash transactions, as percentage, 159
Banking 28, 176ff, 229, see Free Banking
Central Banking 176 see Monetary Despotism
Clearing House Certificate issues XI
Cooperative Banking 186ff, see also Mutual Banking
Cooperatives, productive, 186
Credit "creation" fallacies 160ff
Crises and money panics XI, XII, XXIV
Currency legislation 178, 182, 216ff
Deflation 168ff
Economics 31, 32
Emancipation of labour 48
Exchange XVII, 118, 231
Exchangeability 46, 57
Finance and Industry 16
Free banking vs. note issue monopoly XII, XXI,
XXII, 143ff, 149/50, 153/4, 169, 171/2, 180ff, 217ff,
222, 228ff
Free Trade XII, 223, 187/8
Gresham's Law VI, 124/5
International trade 187/8
Justice 1, 27, 31, 230, see morality
Land ownership 29/30, 48ff
Legal Tender 101, 107, 156, 165, 169, 171, 179, 184,
185, 213, 215, 217, 222, espec. 107 & 217.
Monetary Despotism 102, 153, 171/2, 176, 182.
Money VI, XV, XXII, XXV, XXVI, 16, 106, 114,
146/7, 151/2, 188
Money monopoly 216ff, 226, see Free Banking
Money supply 149, 153
Morality and economics, 12, 28, 31, 230, see Justice
Mutual Banking according to Kitson 103ff, 18Iff,
186/7, 216ff, 224
Over issues 149/50
Payment community 103ff
Poverty 5-13
Price Control 28
Property 26, 49/50
Redemption, gold and other 109, 227/8
Right of creditors to demand cash/gold XIII, 161,
168/9, 178
Scarce Money 216, 219
Slavery 47, 50
Standard of value proposed 217/8
Taxation 212 ff
Tax foundation money 213-215
Token money 146ff, 151/2, 218ff
Tolstoy's errors on money 43, 48
Truth 32
FB Tier JZ 84 RTF


             SOME NOTES BY JOHN ZUBE TO AN ARTICLE BY MARK TIER :
             A VICIOUS CIRCLE THAT MAY LEAD TO RUNAWAY INFLATION,
               "Personal Investment", July 1984, pp 117-122.

It is false to equate all deposits with cash, especially fixed deposits. They do not represent ready cash now but only
require it at a certain time in the future. They are not cash but credit or savings. They are not created but either paid
in by the debtor or are transferred to him, for a period, from the deposits of others, as a loan. The same amount of
cash serves to pay the deposit and to get it finally repaid, to grant the loan and to repay it. No money or credit
"creation" is involved. It can, naturally, happen, that during the period involved the amount of cash is turned over
ten times or even more often. But this would not multiply the amount, either. The payments of the future should
never be mixed up with or added to the payments of the present.

1.) Here he should not be speaking of "money supply" in general but only of that money supply with is either by
custom or legal coercion a legal tender in all payments. For instance, in Israel at present, with Inflation somewhere
between 100% and 1000% p.a., only the Shekel is depreciated to that extent. Wages are subject to an index
standard and monthly or bi-monthly adaptation in accordance with it. Thus in this sphere the Shekel is not always
legal tender. And while the shekel depreciation goes on, the prices in the shops are rather stable - for they are
marked out in a third and voluntarily adopted and government tolerated standard: US dollars! Shekel are only
accepted as means of payment in shops at their market rate against the US dollar! There the Shekel is no longer
legal tender and thus it can no longer inflate the prices marked in a relatively stable unit.
Alas, other alternative means of payment and value standards are still not allowed. If they were, then they would
completely drive out the Shekels .
As it is, Shekels can still be forced by dishonest debtors upon their creditors. I do not know to what extent gold
clauses etc. are allowed in contracts or are being used anyhow.
I do know that Mark Tier is an Anti-Marxist. But he could certainly learn at least something from Karl Marx for
Marx said:

       "...observers who studied the phenomena of money circulation exclusively on the examples of the
       circulation of legal tender paper money, had to overlook the inherent laws of monetary circulation." (Zur
       Kritik der Politischen Oekonomie,- Critique of Political Economy - p. 129 of the Dietz, Berlin, 1951
       edition.)

2.) There is only ONE institution in every larger country that can cause the legal tender money supply to fall or to
rise, namely its central bank. (Some mini-states are subjected to the forced currency of their "protector".)

3.) This 18-months rule applies only when the inflation is still widely unnoticed.

4.) This applies only to legal tender money, not to private banknotes subject to a free market rate or to other such
non-coercive money tokens. They cannot drive up prices marked in stable units, they can only be themselves
depreciated. They are comparable to the shares of a company whose share prices have severely dropped:
Nevertheless, these depreciated shares do NOT depreciate the other shares. (People are so little used to think in
terms of market pricing for internal currencies on an internal market, that one has to resort to such comparisons.)
Apart from this, private issuers of notes without legal tender would find it as a rule very difficult to impossible to
over-issue their notes and a free and public market for sufficiently informed people. If I really could cause an
inflation with my personal cheques, which are, obviously, not legal tender, perhaps I would be tempted. But, you
are safe! I can't!
If Mark Tier had not made this distinction 100 years ago, if he had lived then, he would probably have failed in his
university economics examination. As an anti-statist he ought to make it now. But his faith that private institutions,
too, can freely "create" money and credit prevents him from seeing the effects of legal tender as such.
(And when the government does it, it is no creative process, either!)

5.) If I issued uncovered cheques then that would not be cheque "creation", either but something very different. The
same applies to the central bank. Only it has the power and privilege to give its "cheques" a forced value and a
forced acceptance - until it has finally inflicted so many wrongs, caused so much pain and damage by this method
that everybody rejects its currency, even in the face of death penalties for such "offences". What central banks
really issue, however indirect and camouflaged through parallel and "covering" issues of new government debt
certificates, are requisitioning certificates which everyone has to accept at par, as if they were still of the same
value as yesterday's money. They treat us as if we were their forcefully subjugated subjects in an occupied country
- all, naturally, "in" our best interests, i.e. with their sharp minds and sticky fingers out after our best interests. To
use the word "creation" for such a deceptive, fraudulent and coercive act is an abuse of the language. Only legal
tender, turning paper notes ( and cheap metal discs ) into a "forced currency", can keep such slips and discs in
circulation, prevents them from being rejected like obviously rotten apples or tomatoes are. The word "fiat money"
is a much more accurate term but still does not strongly enough describe the evil that is involved.

6.) This is only a Major Douglas and Mark Tier fallacy and one of all the others who do not distinguish the process
of turn-over circulation from that of savings and investments, i.e. all those who ignore the time differentials
involved. (Mark Tier is, indeed, in very distinguished company here, that of most of the popular experts and those
recognized by most academics. To the extent that deposits on daily call are actually invested on short, medium and
long terms, they are in effect so frozen, even while banks, government experts and free market consultants assert
that they are not so frozen and could be withdrawn at any time. What these banks in all dishonesty do and are even
expected to do and allowed to do, is take the money from other and new depositors to pay out the monetary
equivalent of those funds that they have wrongfully invested.( They act like any other embezzler who tries to cover
his tracks by still more takings.) Over a long-time the turnover-exchange medium is, naturally, turned over many
times. But that does not multiply its quantity, nor does its increased circulation speed drive up prices, since every
turnover is covered by a new sale. To call such a process "creation" is simply absurd. However, it is not the only
absurd faith that has millions of adherents.
To somehow and for relatively normal times cover-up the dishonesty and unwarranted risk-taking that is involved,
the banks are forced to keep a percentage of their deposits as a reserve with the central bank. But that merely turns
the central bank into an accessory of this legalized crime. Since the central bank does even worse things, it is
probably not worried about being so involved.

7.) The money used in the game called "monopoly" and in other such games, is daily printed and is nominally
worth many millions of dollars. (Probably no one has ever bothered to count these amounts.) But it does not and
could not enter the general circulation. It usually circulates only around a single table and does not even have legal
tender in that household - outside of the game. It cannot bid up the prices of goods and services, no matter in what
quantities it is issued. If it were offered outside these narrow and temporary circles, for other than gambling
purposes, it would be outright refused. This is the extreme case. When other private money tokens are offered, they
can circulate only to the extent that they do find voluntary takers. They can widely circulate only to the extent that
they remain essentially at par with their nominal value and are freely accepted by a wide enough circle of vendors
of goods and services, at their face value, i.e. to the extent that they are covered by goods and service which are in
daily demand by many consumers. (This excludes e.g. land, houses, railways and other assets of a long-term and
capital nature.) A Woolworth banknote could hardly ever fall to 90% of its face value. And if it did, most people
would no longer accept it at all.

8.) When governments engage in "deficit spending", i.e. issue more in forced currency than they receive in loans of
fees or taxes, then they do no more "spend" than the issuer of a requisition certificate "spends" anything except a
little paper, ink and printing effort. One should not submit to the definitions of the enemy and thereby spread his
propaganda.

CREATION OR CLEARING?

Apart from dealing with and abusing or embezzling deposits ( apart from managing current accounts, investment
portfolios etc. ) what banks do and what is often misinterpreted as "creation" of money or credit is their clearing
function. Debts and assets can be cleared to any amount, to the extent that they are due at the same time. Under a
perfect clearing system not a single banknote or rare metal coin would be required. Each credit is confronted by a
corresponding debt. A perfect system would bring them together. The number of such transactions can be as
numerous as all the exchanges that do take place or are wanted. This mutual cancellation of debts has nothing to do
with money "creation". The introduction of a forced currency, which any creditor may at any time demand from his
debtor, and legal convertibility and redemption requirements, only disturb the smooth running of a clearing system.
If all such entitlements were replaced by entitlements to clearing only, in as technically convenient form as can
possibly be arranged ( and that might also require the issue and circulation of standardised clearing certificates in
convenient money denominations ), then no government legal tender notes or rare metal coins would be required at
all. But students and advocates of such alternatives, like Ulrich von Beckerath, Prof. H. Rittershausen and Dr.
Walter Zander, did advocate a free market for gold and other rare metals and free coinage for them and their
undisturbed circulation, to facility the rapid establishment of a market rate of private banknotes against such coins,
with all redemption and convertibility options transferred from the issuers of such notes to the free market itself.
Clearing even now turns over 10 to 20 times as much a cash does. But that does not mean that the bank has created
the amounts cleared. No, it has merely facilitated or brought about the mutual cancellation of debts.
How can anyone ever come to believe that this payment method - which is even behind all other payment methods,
too, with a time delay in the case of cash payments - would "create" new and physical means of payment, that
could drive up the price level?

I do not feel like going through the whole article in this way. If an encyclopaedia of free banking were already out
and reasonably developed and if it had numbered the fallacies, prejudices and wrong observations it refutes, then
one could simply quote these numbers as references. But then, with such a handbook in existence for a while, Mark
Tier & many others would probably no longer write such articles but rather carefully consult this reference work in
order not to commit themselves to any blunders in print, blunders which then anyone could easily point out.

I tried to point out such distinctions to Mark Tier ca. 10 years ago. In one ear, out one ear. The fact that his booklet
"Understanding Inflation" had this misleading title and was a bestseller rendered him impervious to argument.
Then I was still a voice in a wilderness. This is no loner the case. Relatively many voices, perhaps more than ever
before, do now speak up for monetary and financial freedom. At present these voices form still only a small
percentage even among the free market advocates. Yet, their total number is probably larger than ever before.
These few, who have studied the application of free market principles and practices to money and credit, ought to
get together, for a house cleaning, a mutual assistance programme in throwing out the remaining errors between
them. They should pool their resources and make their findings more accessible to themselves and others. The time
for such an organization was possibly never better nor may it ever be better. The effects of sound monetary theories
and practices being spread from such a circle could be immeasurable, as important as the invention of the wheel,
certainly more important than the invention of the steam engine.

Micrographics could cheaply reproduce all contributions on this subject and also the many new reference works
required and to be reproduced in a division of labour process, works which could make the sheer mass of such
information quite serviceable for the ordinary man and even for the scholar. While each could remain working on
his own desk, between them they could mobilise an army to win the battle for enlightenment on monetary and
financial questions.

                                             John Zube, 26.4.1985.

FB Webster Not Worth a Continental

                                NOT WORTH A CONTINENTAL

                              (STRICTURES ON TENDER ACTS)

                                     BY PELATIAH WEBSTER,

                                         PHILADELPHIA, 1780
     The Foundation for Economic Education, Irvington-on-Hudson, New York, N.Y. 10 533.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Copyright 1950, by FEE. Permission to reprint granted without special request, provided that mention is made of
minor editorial variation from Webster's original text. There is no charge for a single copy of this pamphlet. Prices
for orders of more than one copy will be furnished on request.
____________________________________________________________________________________________
(This is just an extract from the 1791 edition of Pelatiah Webster, Political Essays, on the nature and operation of
money, public finance and other subjects, 505 pages, which I found in the library of Bettina Bien Greaves in 1990.
I photocopied it and microfiched it in PEACE PLANS 994/95. A Burt Franklin reprint came out in 1969. Probably
many other such pamphlets of FEE are by now out of print, instead of all being offered in print, at least online, on
microfiche, on floppy disks and on CD-ROM.)
Previously this text was also reproduced in PEACE PLANS 42-44. - J.Z., 30.12.02.
____________________________________________________________________________________________

                                                    EDITOR'S NOTE
"Not worth a continental" is a descriptive phrase born of an early American experiment in deficit financing. If its
lessons are ignored or forgotten, that experience will have been as worthless as the Continental currency itself.

Pelatiah Webster, "an able though not conspicuous citizen" of Philadelphia (1725-1795), is credited by James
Madison and others as having been the first advocate of a constitutional convention. Though he was not a delegate,
many points in the Constitution conform to an outline he had proposed several years prior to the Convention.

The "fatal mistakes" of deficit financing, inflation, and price control were understood by men like Webster.
Lessons learned the hard way during the period or revolutionary America had a determining influence on those
who founded the republic.
The Continental Congress authorised the printing of paper money but depended upon enabling legislation by the
respective states under the Tender Acts to give negotiability to the irredeemable paper and to keep it in circulation
on a par with the "hard money" of those days.

The essay which follows was first published by Pelatiah Webster in Philadephia, December 13, 1780, under the
title, STRICTURES ON TENDER ACTS. He considered it his duty as a citizen to criticise monetary enforcement
legislation then being proposed by the Assembly of Pennsylvania. The proposal was offered by the Assembly for
public consideration on November 29, and was enacted into law, despite Webster's protest, on December 19, 1780.

It is too soon to tell the full impact of Webster's observations, for they were written with the hope "that our fatal
mistakes may be a caution and a warning to future financiers who may live and act in any country which may
happen to be in circumstances similar to ours at that time."

His treatise is herewith submitted, with respect for his foresight and in recognition of the circumstances in which
we find ourselves in 1950. The penalties of deficit financing and other uneconomic practices are the same today as
they were 170 years ago.
The text has been stripped of some archaisms of grammar and expression, but Webster's ideas and lucid style are
intact. A multilithed copy of the original treatise will be sent on request.
____________________________________________________________________________________________

The above is the introduction by FEE. I have only to add that I consider Webster's essay to be one of the best
condemnations of a forced currency that I have so far seen. I would like you to compare it with my essay on
stopping the LEGAL TENDER crime, in PEACE PLANS No. 19 a. It was reproduced in the appendix of my main
website: www.acenet.com.au/~jzube

It is here retyped rather than merely filmed because my copy has too many underlinings etc. from my pen. My
objections to opinions in this essay by Webster are so few and so relatively unimportant that I will not bother
stating them. - J. Z., 3/4/79

                                   /\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\/

                                        NOT WORTH A CONTINENTAL

THE FATAL ERROR - that the credit and currency of the Continental money could be kept up and supported by
acts of compulsion - entered so deep into the mind of Congress and of all departments of administration through
the states that no considerations of justice, religion, or policy, or even experience of its utter inefficacy, could
eradicate it. It seemed to be a kind of obstinate delirium, totally deaf to every argument drawn from justice and
right, from its natural tendency and mischief, from common sense, and even common safety.

Congress began, as early as January 11, 1776, to hold up and recommend this MAXIM OF MANIASM, when
Continental money was but five months old. Congress then resolved that "whoever should refuse to receive in
payment Continental bills, etc., should be deemed and treated as an enemy of his country, and be precluded from
all trade and intercourse with the inhabitants..." - that is, should be outlawed, which is the severest penalty, except
of life and limb, known in our laws.

This ruinous principle was continued in practice for five successive years, and appeared in all shapes and forms - in
tender acts, in limitations of prices, in awful and threatening declarations, in penal laws with dreadful and ruinous
punishments, and in every other way that could be devised. And all were executed with a relentless severity by the
highest authorities then in being, namely, by Congress, assemblies and conventions of the states, by committees of
inspection (whose powers in those days were nearly sovereign) and even by military force. Men of all descriptions
stood trembling before this monster of force without daring to lift a hand against it during all this period. Its
unrestrained energy ever proved ineffectual to its purposes, but in every instance increased the evils it was
designed to remedy, and destroyed the benefits it was intended to promote. At best its utmost effect was like that of
water sprinkled on a blacksmith's forge, which indeed deadens the flame for a moment, but never fails to increase
the heat and force of the internal fire.

Many thousand families of full and comfortable fortune were ruined by these fatal measures, and lie in ruins to this
day, without the least benefit to the country or to the great and noble cause in which we were then engaged.

I do not mention these things from any pleasure I have in opening the wounds of my country or exposing its errors,
but with a hope that our fatal mistakes may be a caution and warning to future financiers who may live and act in
any country which may happen to be in circumstances similar to ours at that time.

                                            A STANDARD OF VALUE

THE NATURE of a Tender-Act is no more or less than establishing by law the standard value of money, and has
the same use with respect to the currency that the legal standard pound, bushel, yard, or gallon has to those goods,
the quantities of which are usually ascertained by those weights and measures. Therefore, to call anything a pound
or shilling, which really is not so, and make it a legal standard, is an error of the same nature as diminishing the
standard bushel, yard, or gallon, or making a law that a foot shall be the legal yard, an ounce the legal pound, a
peck the legal bushel, or a quart the legal gallon, and compelling everybody to receive all goods due to them by
such deficient measures.

Further, to make anything the legal standard, which is not of fixed but variable nature, is an error of the same kind
and mischief as the others - for example, to make a turnip the standard pound weight, which may dry up in the
course of a year to a pith of not more than two or three ounces, or to make a flannel string the standard yard, which
will shrink in using to half its length. The absurdity of this is too glaring to need anything further said on it.

                                             PAYMENT POSTPONED

BUT TO COME to the matter now in question. The first observation which occurs to me is that the bills, which are
made a tender, contain a public promise of money to be paid in six years. On which I beg leave to remark that the
best and most indubitable security of money to be paid in six years, or any future time, is not so good or valuable as
ready cash.

Therefore, the law which obliges a man to accept these bills instead of ready cash, obliges him to receive a less
valuable thing in full payment of a more valuable one, and injures him to the amount of the difference. This is a
direct violation of the laws of commutative justice - laws grounded in the nature of human rights, supported by the
most necessary natural principles, and enjoined by the most express authority of God Almighty. No legislature on
earth should have the right to infringe or abrogate this freedom of choice in the exchange of goods for goods.

                                         THE PRICE OF UNCERTAINTY
AGAIN, the security arising from the public promise is not generally deemed certain. The public faith has been so
often violated, and the sufferings of individuals thence arising have been so multiplied and extensive, that the
general confidence of our people in that security is much lessened. Since a chance or uncertainty can never be so
valuable as a certainty, those bills must and will be considered as less valuable than they would be if the security
on which they depended were free of all doubt or uncertainty; and consequently, the discount of their value will
always be estimated by, and of course be equal to, this difference. Therefore, the injustice of forcing them on the
subject at full value of present cash is greatly increased. These positions and reasonings are grounded on such
notoriety of fact that any explanation or proof is needless; and I hope an objection against a law, drawn from the
most manifest and acknowledged injustice of its operation and effect, will not be deemed trivial or be easily set
aside or got over.

                                                 AN HONEST MAN

SUPPOSE a man of grave countenance and character should, in distress, apply to his neighbor for the loan of 1,000
silver dollars, with solemn promise on his honor and truth to repay them in a month, and in the meantime the
Tender-Act under consideration should pass into a law, and the borrower, at the month's end, should tender 1,000
of the new paper dollars in payment.

I beg leave here to ask of every member of the Assembly who voted for that law, and every other man who is a
member of this state, what their sentiments of that action would be, and in what light they would view the borrower
who tendered the paper dollars - that is, two-fifths of the debt

(Editor's note: On March 18, 1780, the Continental Congress officially had recognized the debauchery of its
currency, allowing it to exchange for specie at the rate of 40:1. By the time this piece was written, the unofficial
exchange rate had further widened to 100:1. This probably explains Webster's illustration -"two-fifths of the debt.")

- in payment of the silver ones he had received : Would they consider him as an upright, honest man, or a
shameless rascal?

In whichever of the two characters they may choose to consider such a man, it may be proper to note that the act in
question, if passed into a law, would protect him, and not only so, but would subject the lender to the loss of the
whole money if he refused to receive it. This is a somewhat delicate matter which it is painful to dwell long upon. I
will therefore close what I have to say on it with a few very serious remarks, the truth, justice, and propriety of
which I humbly submit to the reader.

1. The worst kind of evil, and that which corrupts and endangers any community most, is that iniquity which is
framed by a law; for this places the mischief in the very spot - on the very seat - to which every one ought to look
and apply for a remedy.

2. It cannot be consistent with the honor, the policy, the interest, or character of an Assembly of Pennsylvania to
make a law which, by its natural operation, shall afford protection to manifest injustice, deliberate knavery, and
known wrong.

3. No cause or end can be so good - so heavenly in its origin, so excellent in its nature, so perfect in its principles,
and so useful in its operation - as to require or justify infernal means to promote it. By infernal means I mean such
as are most opposed to Heaven and its laws, must repugnant to natural principles of equity which are all derived
from Heaven, and most destructive of the rights of human nature which are essential to the happiness of society.
Such laws are engraven by Heaven on the heart of every man. Some wicked men have formerly said, "Let us do
evil, that good may come," whose damnation is just.

                                                VALUE BY FORCE

BUT PERHAPS this sort of argument may not have all the effect I could wish on the mind of every reader. I
therefore proceed to another argument, which goes to the nature and principle of the act itself: The credit or value
of money cannot, in the
very nature of the thing, be supplied, preserved, or restored by penal laws or anycoercive methods. The subject is
incompatible to force; it is out of its reach, and never can be made susceptible of it or controllable by it.
The thing which makes money an object of desire - which gives it strength of motive on the hearts of all men - is
the general confidence, the opinion which it gains as a sovereign means of obtaining everything needful. This
confidence, this opinion, exists in the mind only, and is not compellable or assailable by force, but must be
grounded on that evidence and reason which the mind can see and believe. And it is no more subject to the action
of force than any other passion, sentiment, or affection of the mind; any more than faith, love, or esteem.

It is not more absurd to attempt to impel faith into the heart of the unbeliever by fire and faggot, or to whip love
into your mistress with a cows kin, than to force value or credit into your money by penal laws.

                                               TRIAL AND ERROR

YOU MAY, indeed, by force compel a man to deliver his goods for money which he does not esteem, and the
same force may compel him to deliver his goods without any money at all. But the credit or value of the money
cannot be helped by all this, as appears by countless examples. Plain facts are stubborn and undeniable proof of
this. Indeed, this has been tried among ourselves in such extent of places and variety of shapes - and in every
instance been found ineffectual - that I am amazed to see any attempt to revive it under any devisable form
whatsoever. Countless are the instances of flagrant oppression and wrong, and even ruin, which have been the sad
effects of these dreadful experiments, with infinite detriment to the community in general, without effecting in any
one instance the ends intended. The facts on which this argument depends are fresh in everyone's memory.

I could wish, for the honor of my country, to draw a veil over what is past, and that wisdom might be derived from
past errors sufficient to induce everyone to avoid them in the future. In conclusion, from the contemplation of the
nature of the thing, and of the facts and experiments which have been made in every variety of mode and
sup-ported by every degree of power and exertion, it appears as plain and undeniable as intuitive proof that the
credit or value of money is not in its nature controllable by force. Therefore, any attempt to reach it in that way
must end in disappointment. The greater the efforts - and the higher the authority which may be exerted in that way
- the greater must be the chagrin, shame, and mortification when the baseless fabric shall vanish into smoke.

                                               NATURAL VALUE

THE ONLY possible method then of giving value or credit to money is to give it such qualities and clothe it with
such circumstances, as shall make it a sure means of procuring every needful thing; for money that will not answer
all things is defective, and has not in it the full nature and qualities of money. In this way only it will grow fast
enough into esteem, and become a sufficient object of desire, to answer every end and use of money. Therefore,
when the question is proposed:

"How shall we give credit or value to our money?" the answer, the only true answer, is: "Bring it into demand,
make it necessary to everyone, make it a high means of happiness and a sure remedy of misery." To attempt this in
any other way is to go against nature, and of course into difficulty, only to obtain shameful disappointment in the
end.

There is nothing better than to take things in their natural way. A great and difficult work may be accomplished by
easy diligence if a good method and a wise choice of means are adopted; but a small work may be made difficult,
very soon, if taken at the wrong end and pursued by unnatural means.

There is a right and a wrong method of doing everything. You may lead with a threat what you cannot drive with
whips and scorpions. The Britons have found this to their cost in the unnatural means they have pursued to
preserve and recover their dominions in America. I wish we might be made wise by their errors. HAPPY IS HE
WHO IS MADE CAUTIOUS BY OBSERVING THE DANGERS OF OTHERS.

I would be willing to learn wisdom from Great Britain. IT IS RIGHT TO BE TAUGHT EVEN BY AN ENEMY.
Amidst all their madness, and in all their distresses for money, they never once thought of making their bank or
exchequer bills a tender, or supporting their currency by penal laws. But these considerations may have little effect
on some minds who are not very delicate in their choice of means, but seem resolved to carry their point, God
willing or not.
I therefore hasten to another topic of argument. It appears to me the act is founded in mistaken and very bad policy,
and by its natural operation must produce many effects extremely prejudicial to our great and most important
interests.

                                  BAD MONEY DISCOURAGES PRODUCTION

IT SEEMS plain to me that the act has a fatal tendency to destroy the great motives of industry, and to dishearten
and discourage men of every profession and occupation from pursuing their business on any large scale or to any
great effect. Therefore, it will prevent the production of those supplies derived from husbandry and manufactures,
which are essential to our safety, support and comfort. Few men will bestow their labor, attention, and good
money, with zeal, to procure goods and commodities for sale, which they know they must sell for money which
they esteem bad, or at best doubtful.

The extent and dreadful effects of this are unavoidable and immense. If the industry of the farmer and tradesman is
discouraged, and they cease to strive for large crops and fabrics, the consequence must be a universal diminution
and scarcity of the produce of the country and of the most important articles of living, as well as commerce. The
general industry of the country is of such vast importance - is an object of such magnitude - that to check it is to
bring on ruin, poverty, famine, and distress, with idleness, vice, corruption of morals, and every species of evil.

As money is the sinews of every business, the introducing of a doubtful medium - and forcing it into currency by
penal laws - must weaken and lessen every branch of business in proportion to the diminution of inducement found
in the money.

                                BAD MONEY HAMPERS NATIONAL DEFENCE

THE SAME thing will render the procurement of supplies for the army difficult, if not utterly impracticable. Most
men will hold back their goods from the market rather than sell them for money of a doubtful credit. There will be
no possible way of collecting them but to send a superior force into the country and there take them by violence
from the owner, which will occasion such an expense as will double the cost of the supplies by the time they get to
the army, and be subject to a thousand frauds. This is the most obvious and natural operation of the act if we
consider its own nature only, and it is confirmed by such ample experience, recent in the memory of every man,
that it can leave no doubt but all this mischief must follow the act from its first operation.

                                          BAD MONEY CORRUPTS MEN

I APPREHEND the act will, by its natural operation, tend to corrupt the morality of the people, sap the support, if
not the very foundation, of our independence, lessen the respect due to our legislature, and destroy that reverence
for our laws which is absolutely necessary to their proper operation and the peace and protection of society. Many
people will be so terrified with the apprehension of seeing their real substance- the fruit of their labor and anxious
attention - converted into a bundle of paper bills of uncertain value, that to avoid this evil they will have strong
inducements to rack their invention for all devisable ways and methods of avoiding it. This will give rise to
countless frauds, ambiguities, lies, quibbles, and shams. It will introduce the habit and give a kind of facility to the
practice of such guile and feats of art as will endanger the uprightness, plain honesty, and noble sincerity
whichever mark the character of a happy and virtuous people.

Many, who wish well to our independence and have many necessaries for our army which they would wish to
supply, yet will be held back from offering their goods because of the doubtful value of the bills in which those
supplies must be paid for. Instances of this sort I conceive will be so numerous as greatly to affect the supplies of
our army and, of course, the support of our independence. The injuries and sufferings of people who are compelled
to take said bills in satisfaction of contracts for real money will induce them in their rage to use the legislature, who
formed the act, with great liberty and, perhaps, gross disrespect. The habit of reproaching the legislature and
eluding the injurious act will become general, and pave the way to an habitual and universal abhorrence of our
legislature and contempt of our laws, with a kind of facility and artful dexterity in eluding the force of the whole
code.


I freely submit it to my readers as to whether these consequences are at all unnatural or ill-drawn, if the surmises
are at all groundless, or the painting a whit too strong. No art of government is more necessary than that of keeping
up the dignity and respectability of the legislatures and all courts and officers of government, and exciting and
preserving in the hearts of the people a high reverence for the laws. And anything which endangers these great
supports of the state ought to be avoided as a deadly evil.

                                 BAD MONEY DESTROYS FOREIGN RESPECT

THE ACT, I apprehend, will give a bad appearance to our credit, honor, and respectability in the eyes of our
neighbors on this continent, and the nations of Europe, and other more distant parts of the world. For when they
learn that our own people must be compelled by the loss of half their estates and imprisonment of their persons to
trust the public faith, they will at once conclude there must be some great danger, some shocking mischief dormant
there, which the people nearest to and best acquainted with it abhor so much. And of course, as they are out of the
reach of our confiscations and imprisonments, they will have little inducement to trust or esteem us.

                                  BAD MONEY ENCOURAGES OUR ENEMIES

FINALLY, the act will give great exultation and encouragement to our enemies, and induce them to prolong the
war, and thereby increase the horrid penalty of imprisonment which is to last during the war. When they see that
our money has become so detestable that it requires such an act as this to compel our own people to take it, they
must at least be convinced that its nature is greatly corrupted and its efficacy and use nearly at an end. When we
see the passionate admirers of a great beauty forced by lashes and tortures into her embraces, we at once conclude
that she has lost her charms and has become dangerous and loathsome.

It cannot be fairly objected to these strictures that they suppose the bills funded by this act are of less value than
hard money. The act itself implies this. The Assembly never thought of wasting time in framing an act to compel
people to take English guineas, Portuguese joes, and Spanish dollars under penalty of confiscation and
imprisonment.

I dare think that there is not a man to be found, either in the Assembly or out of it, that would esteem himself so
rich and safe in the possession of 1,000 of these dollars as of 1,000 Spanish ones. The most effectual way to
impress a sense of the deficiency of the act on the minds of all men, and even discover the idea which the
Assembly themselves have of it, is to enforce it by penalties of extreme severity.

For if there were no deficiency in the act it could not possibly require such penal-ties to give it all necessary effect,
nor is it likely that the Assembly would add the sanction of horrid penalties to any of their acts unless they thought
there was need of them.
The enormity of the penalty deserves remark. The penalty for refusing a dollar of these bills is greater than for
stealing ten times the sum.

                                     DESTROYS CONTRACTS AND CREDIT

FURTHER, the act alters, and of course destroys, the nature and value of public and private contracts, and this
strikes at the root of all public and private credit.

Who can lend money with any security, and of course, who can borrow, let his necessity and distress be ever so
great? Who can purchase on credit or make any contract for future payment? Indeed, all confidence of our
fellow-citizens in one another is hereby destroyed, as well as all faith of individuals in the public credit.

Upon the whole matter, the bills must rest on the credit of their funds, their quantity, and other circumstances. If
these are sufficient to give them a currency at full value, they will pass readily enough without the help of penal
laws. If these are not sufficient, they must and will depreciate and thereby destroy the end of their own creation.
This will proceed from such strong natural principles, such physical causes, as cannot, in the nature of the thing, be
checked or controlled by penal laws or any other application of force.

These strictures are humbly offered to public consideration. The facts alleged are all open to view and well
understood. If the remarks and reasonings are just, they will carry conviction; if they are not so, they are liable to
anyone's correction.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
A PRELIMINARY ATTEMPT TO JOT DOWN ALL THE TERMS, PRINCIPLES, FACTS, NAMES AND REFERENCES THAT
SHOULD BE INCLUDED IN A HANDBOOK ON MONETARY FREEDOM.

To be considered as a reminder of entries already drafted and to be done still and as an open
invitation to anyone to submit entries to these and related topics.
--------------------------------------------------------------------------------------
The entries will also contain some hints to relevant material, either already microfilmed or not
yet microfilmed, to be used in future entry compilations.
--------------------------------------------------------------------------------------
Compiled by John Zube, 7 Oxley St., Berrima, NSW, Australia 2577, 28.10.85.
--------------------------------------------------------------------------------------

ABILITY TO PAY
ABOLITION OF TAXES & REPLACEMENT BY VOLUNTARY CONTRIBUTION SCHEMES TO COMPETING SUPPLIERS
ABSTRACT STANDARDS OF VALUE 9-11/58ff
ABUSES, see Credit restrictions, deflation, devaluation, inflation, central banking, monetary
despotism, legal tender, money monopoly etc.
ACCEPTANCE FOUNDATION, 9-11, 61-63,
ACCEPTANCE OBLIGATION, 61-63/ 111,341 ET AL
ACCOMMODATION BILLS
ACTION PROGRAMME, IMMEDIATE, see programmes
ACTS & LAWS, particular, chronologically and or country by country.
ADDRESSES of monetary freedom advocates or advocates of at least one or the other aspect of monetary
freedom, including some associations and periodicals
ADMINISTRATION COSTS OF FREE BANKS, 61-63/102/3
ADMINISTRATIVE TAXATION WITHOUT CONSENT BY INFLATION, 61-63/110
ADVANCE PAYMENT OF DEBTS, ORDERS AND TAXES, 9-11, 61-63/100,111,113
ADVANCES IN NOTES, 9-11/16,17
ADVANCES ON ORDERS PLACED
ADVANTAGES OF OWNERS OF EXCLUSIVE CURRENCY, 9-11/183, see money monopoly, legal tender, inflation,
deflation, emergency prices
ADVERTISING, SALES COSTS AND MONETARY FREEDOM
AGRICULTURE and free banking see also financing and farming, mortgage banks, land banks, long
term credits, goods warrants, debt foundation, 61-63/106,120
AIRLINE, INTERNATIONAL FINANCE WITH GOODS WARRANTS, example 9-11/194ff
ALADDIN'S LAMP EXAMPLE FOR AUTOMATION & UNEMPLOYMENT OPINIONS, 9-11/172ff
ALTERNATIVE MEANS OF PAYMENT, 61-63/55,66,67
AMERICA, DEVELOPMENT THROUGH FREE BANKING
AMERICAN BARTER ASSOCIATIONS, 9-11/9-14,31,41,46ff
AMERICAN FREE BANKING 9-11
ANIMALS, NO CONCEPT OF EXCHANGE, 9-11
ANTICIPATION OF PAYMENTS, 9-11/225
ANTICOMMUNISM AND MONETARY FREEDOM, 9-11/82,104
ANTI-MONOPOLISM
APHTONIOS SCHEME
ASSETS CURRENCY
ASSETS, STANDARDIZATION AND FRACTIONIZING OF -, 9-11
ASSIGNATES
AUCTION SALES, FORCED, 9-11
AUSTRIAN SCHOOL OF ECONOMICS AND MONETARY FREEDOM
AUTARCHY, NATIONAL AND ECONOMIC
AUTARCHY, as understood by Robert LeFevre
AUTOMATION, A THREAT TO EMPLOYMENT? 9-11/172FF




BAD MONEY DRIVEN OUT, 61-63/66,67, see Gresham's Law
BALANCE OF TRADE AND PAYMENTS, 9-11, 61-63
BALANCES OF WORK SUPPLY BANKS, 9-11/40-41
BALANCING, see clearing
BALTIMORE RAILROAD CO., 9-11/86
BANK BONDS & BANKNOTES, see long term loans, asset currency, securities, foundation, short term
securities, reflux, cover etc., 61-63.
BANK ENQUETE OF 1908, 9-11/54
BANKERS 9-11,61-63/114
BANK OF ENGLAND, 9-11, 61-63
BANK FAILURES
BANKING PRINCIPLE 9-11
BANKING, RIGHT OF -, 9-11
BANKNOTES, 9-11, 61-63
BANKRUPTCIES
BANKS, 9-11, 61-63, 61-63
BANKS OF ISSUE, 9-11
BARTER
BARTER ASSOCIATIONS COMING CLOSE TO FREE CLEARING,
BARTER THROUGH COMPUTERS, COMING CLOSE TO FREE CLEARING
BASKET CURRENCY, see 9-11, index currency
BEARER BONDS, 61-63
BECKERATH, ULRICH von -
BEGINNINGS, see initiatives
BENDIXEN, 9-11
BERLIN PROGRAMME
BESPOKE AND ORDER SYSTEM, 9-11/21
BEST, OBERLANDESGERICHTSRAT, 9-11
BIBLIOGRAPHY ON MONETARY FREEDOM
BILLS OF EXCHANGE, COMMERCIAL VS. FINANCIAL, 9-11
BLACK MARKET MONEY
BLANK SALES, see futures dealings
BLOOD AND MONEY CIRCULATION, 9-11/14,15,145
BLOODSHED AND MONETARY FREEDOM, 9-11
BOLSHEVISM AND MONETARY DESPOTISM, 9-11, see central banking, communism, Lenin, Marx,
nationalization,
BOND ISSUES, MEDIUM AND LONG TERM, see issue principle, 61-63
BONDS ISSUED BY THE GOVERNMENT, 61-63/145
BONDS ISSUED FOR THE PURCHASE OF ENTERPRISES BY THEIR STAFF, 61-63/125,339
BOOK MONEY, see deposits, cash, clearing, transfer money
BRANCH BANKING RATHER THAN DECENTRALIZED NOTE ISSUE?
BRAZILIAN COFFEE TRADE AND GOODS WARRANTS, 9-11
BRITISH LINEN CO., 9-11/33
BRUENING-DIETRICH LEGISLATION ON EMERGENCY MONEY, 9-11
BUILDING INDUSTRY, finance and unemployment, 9-11
BUILDING AND LOAN ASSOCIATIONS, FREEDOM FOR -
BUILDINGS AS COVER?
BULLION CERTIFICATES
BULLION REPORT
BULLOCK
BUSINESS AREA OF A FREE BANK, 9-11, 61-63/102
BUSINESS FAILURES, see auction sales, bank failures, bankruptcies, foreclosures
BUSINESS PROVISIONS, private banks of issue, 9-11, see statutes, Work Supply Bank, programmes
BUSINESS SECRETS AND MONETARY FREEDOM
BUYING AND SELLING OF MONEY
BYZANTINE EMPIRE, 9-11/160,161, see Roman Empire



Caesar,9-11/12,172,173
CALL, see futures, premium deals

CANCELLATIN OF USED GOODS WARRANTS, 61-63
CANTINE MONEY, see Fichas
CAPITAL
CAPITAL CREATION THROUGH NOTE ISSUE? 9-11
CAPITAL FOR DISCOUNTING OF SOUND COMMERCIAL BILLS? 9-11
CAPITAL FREE BANKS OF ISSUE, 61-63/104,108
CAPITAL GOODS PRODUCTION WITH GOODS WARRANTS
CAPITAL INVESTMENTS AND INFLATION, 61-63/66,342
CAPITAL LEGAL REQUIREMENT OF MINIMUM CAPITAL, 61-63/339,127
CAPITAL MARKET AND MEANS OF PAYMENT, 9-11
CAPITAL RAISING, NEW METHOD, 9-11
CAPITAL REQUIRED FOR FREE BANKS?
CAPITAL SCARCITY DURING DEPRESSIONS? 9-11
CAPITAL SHORTAGE OR SHORTAGE OF MEANS OF PAYMENT - DURING DEPRESSIONS? 9-11
CAPITAL TRANSFORMED INTO MEANS OF EXCHANGE, 61-63
CAPITAL UNEMPLOYMENT
CAPITAL WORKING CAPITAL, REAL, OF ANY COUNTRY, 9-11, 61-63/94
CAPITALISM AND MONETARY FREEDOM
CAPITALISTS
CAREY, 9-11
CASH, 9-11,61-63
CASH CREDITS IN SCOTLAND
CASH, RIGHT TO DEMAND -, see creditors' right to demand...
CASH HOLDINGS, see hoarding
CASH PAYMENTS,9-11
CASH PAYMENTS IN OCCUPIED TERRITORIES, 61-63 & HOLZHAUER
CASH PAYMENT RISK, 61-63
CASH RESERVES, 9-11
CASH TAKINGS REDUCED THROUGH MONETARY FREEDOM? 9-11
CATALYSERS - GOODS WARRANTS 9-11
CENTRAL BANKING, 11/239
CENTRALIZATION, 9-11
CHAIN STORES AS ISSUERS, 61-63/106
CHEQUES, 61-63,9-11
CHANNELS OF CIRCULATION, see circulation channels
CHOICE IN CURRENCY (EXCHANGE MEDIA)
CHOICE OF VALUE STANDARDS
CIRCULATION
CIRCULATION AREA
CIRCULATION CHANNELS
CIRCULATION CHARTS
CIRCULATION OF MONEY & OSCILLATION OF GOODS WARRANTS etc.
CIRCULATION OSCILLATION
CIRCULATION PERIOD
CIRCULATION PREREQUISITES
CIRCULATION SCHEMES AND CHARTS
CIRCULATION SPEED
CIRCULATION PERIOD, see time limits
CIRCULATORY SATISFACTION, 9-11
CIVILIZATION, 9-11
CLAIMS SERVING AS BASIS FOR BANKNOTE ETC. LOANS, 61-63
CLAIMS TO PAYMENT IN CASH OR EXCLUSIVE CURRENCIES
CLASS STRUGGLE, 9-11
CLEARING, 9-11/238, see gold standard, gold clearing standard, clearing houses, clearing house
certificates, money- nature of -,
CLEARING BANKS AND CENTRES
CLEARING BILLS, 9-11, 61-63
CLEARING GOODS WARRANTS, 61-63/96,98
CLEARING HOUSE CERTIFICATES
CLEARING HOUSES
CLEARING INSTRUMENTS, 9-11/239
CLEARING INTERNATIONAL, 61-63
CLEARING PERFECT, 61-63
CLEARING RIGHT TO -, 61-63/120
COEXISTENCE OF MEANS OF PAYMENTS AND VALUE STANDARDS
COINAGE, FREE,
COINS,
COLORADO EMERGENCY MONEY, 9-11
COMMAND ECONOMY, 9-11/19
COMMERCIAL BILLS, see real bills doctrine, 9-11, 61-63
COMMERCIAL BILLS DISCOUNT, 61-63
COMMODITIES AND MONEY, see Say's Law
COMMODITY MONEY
COMMUNISM
COMMUNIST MANIFESTO AND MONETAR DESPOTISM
COMPENSATION AND CLEARING, 9-11
COMPETING CURRENCIES, VALUE STANDARDS AND EXCHANGE MEDIA AND CLEARING FACILITIES
COMPETITION
COMPLEXITY
COMPULSORY ACCEPTANCE, 9-11, 61-63
COMPULSORY INVESTMENT IN GOVERNMENT INSECURITIES, 61-63/145, SEE TRUSTEE ACTS
COMPUTERIZED CLEARING SYSTEM
CONCRETE STANDARD OF VALUE REQUIRED, 9-11
CONDITIONS UNPRECEDENTED? 9-11
CONFIDENCE, see also trust, 9-11, 61-63
CONFUSION THROUGH VARIETY OF EXCHANGE MEDIA? see also multiplicity
CONSPIRACY THEORIES, see culprits?
CONSUMER GOODS AS COVER, 61-63/95, 67,68,211
CONSUMER GOODS INDUSTRIES AND DEPRESSIONS, 9-11
CONTRACTS, FREEDOM OF -, see Gold clauses, choice, rights, premiums, smart money, futures dealings
CONTRIBUTION MONEY, 9-11, 61-63
CONTRIBUTIONS INSTEAD OF TAXES, 61-63
CONTROL OF BANKING, NOTE ISSUE ETC., compare licensing, publicity, guaranties, limits, refusal
to accept, free market rate, decentralization,9-11,61-63
CONVENIENCE, see also :inconvenience
CONVERTIBILITY, see also redemption, cover, gold standard, 9-11,61-63
COOPERATIVE BANKS, see also Work Supply Banks, Free Banking, 9-11,61-63
COOPERATIVE PRODUCTION AND MONETAR FREEDOM
COPPER STANDARD, 9-11/239
COQUELLIN, 9-11/134,176,177
CORPORATIONS AS ISSUERS, 9-11
CORPUS JURIS, 9-11
COST OF LIVING INDEX, 9-11/61
COSTS, see interest
COSTS OF ADMINISTRATING ISSUES
COSTS OF PRINTING MONEY
COUNTERFEITING, see forgery
COUNTING TOKEN MONEY (COUNTERS), 9-11/61
COUNTERFEITING, see forgery
COURCELLE-SENEUIL, 9-11
COURTS AS ISSUERS, 9-11/230
COVER, VARIETY OF COVERS that are recommendable or proposed, old & new types
CRANKING THE ECONOMY?9-11
CREATION OF MONEY OR CREDIT, see deposits, credit, book money, money creation, credit creation
CREDIT
CREDIT, LONG TERM, 61-63
CREDITOR COVER, 9-11
CREDIT RESTRICTIONS
CREDITORS
CREDITORS "RIGHT" TO DEMAND CASH OR PARTICULAR MEANS OF PAYMENT, 9-11
CRISES AND CRISIS THEORIES AND THE ROLE OF MONETARY FREEDOM
CULPRITS?
CULTURE,9-11
CURRENCY, see also local currency, forced currency, legal tender, competing currencies
CURRENCY FAMINE
CURRENCY OFFICE?
CURRENCY POLICY
CURRENCY REFORM
CURRENCY SPECULATION
CUSTOMARY MONEY
CUSTOMS DUTIES IN GOLD FOR ACCOUNT, 9-11/91
CYCLES, see trade cycles



DARLEHENSKASSENSCHEINE
DEARNESS AS OPPOSED TO MONETARY INFLATION
DEBT
DEBT FOUNDATION
DEBT LEGISLATION,9-11
DEBTORS,9-11
DEBTORS MAY BUT NEED NOT PAY IN GOLD OR ANOTHER EXCLUSIVE CURRENCY,61-63/120
DEBTS and clearing
DEBTS AS DEALINGS IN FUTURES, 61-63/98
DECENTRALIZATION, see also central banking, local currency, competitive currencies, monetar
freedom
DEFAMING MONEY?, 9-11/165
DEFAULTING COUNTRIES, 9-11/187
DEFENCE OF CURRENCY? 9-11/239
DEFENCE AND MONETARY FREEDOM
DEFLATION
DEMAND
DEMAND FOUNDATION FOR MEANS OF PAYMENT, 9-11,61-63
DEMAND AND MONETARY FREEDOM, 9-11, 61-63/68,105
DEMAND AND SUPPLY, 61-63/133,136
DEMOCRATIC GOVERNMENTS AND MONETARY REVOLUTIONS, 9-11/112,113
DEMURRAGE MONEY, see Gesell
DENATIONALIZATION AND MONETARY FREEDOM
DENOMINATIONS OF MONEY TOKENS ETC.
DEPARTMENT STORES AS ISSUERS,9-11, 61-63/95,106
DEPENDENCY ON BANKS, 9-11
DEPOSIT BANKING,
DEPOSIT CERTIFICATES, 9-11
DEPOSIT CREATION
DEPOSITS,9-11, 61-63
DEPOSITS IN GOODS WARRANTS, 61-63/107
DEPRECIATING MONEY, see inflation, Gesell
DEPRECIATION, 9-11, 61-63
DEPRESSIONS, see crises, credit restrictions, deflation, money shortage, currency famine etc.
DESERTION ON A MASSIVE SCALE, FROM ENEMY FORCES, AND MONETARY FREEDOM
DESPOTISM, see central banking, monetary despotism, monetary revolution, money monoply, legal
tender
DESTRUCTION OF CENTRAL BANKING EQUIPMENT, 61-63/178,184
DESTRUCTION OF NOTES AFTER REFLUX, see cancellation
DESTRUCTION OF RETURNED PAPER MONEY TOKENS, 61-63/182, see cancellation
DETAILS OF ISSUES, see technical details, free banking, texts, issue principles, Work Supply Banks,
programmes
DETERIORATED EXCHANGE MEDIA, 61-63
DEVALUATION, 8-11, 61-63,
DEVELOPMENT, 9-11, 61-63 see free banking papers on India
DeWITT WARNER, JOHN, 9-11
DICTATORSHIP, 9-11
DIETRICH, H., an example of extreme monetary despotism, 9-11/55,56
DIRIGISM, 9-11
DISCOUNTING OF SOUND COMMERCIAL BILLS, 9-11, 61-63
DISCOUNT or free market rate as a factor in the success of monetary freedom, see free market rate,
publicity, 9-11, 61-63
DISINTEREST IN MONETARY FREEDOM
DISTRAINTS, 9-11
DISTRIBUTION, 9-11
DISTRUST, see confidence, trust
DIVERSITY, see uniformity
DIVIDEND COUPONS (SCRIP)
DIVISION OF LABOUR
DOCTORS AS ISSUERS, 9-11/32
DOGS, 9-11/61,265
DOLLARS, DOUBLE DEFINITION, 9-11
DOUGLAS, MAJOR, AND HIS SOCIAL CREDIT NOTIONS
DOWNFALL OF ANCIENT WORLD, 9-11/160,161, see Roman Empire
DRUIDS, 9-11/12
DUES, MILHAUD-SYSTEM, 9-11
DUMPING AND ALADDINS LAMP, 9-11/172
DUNA POWER WORKS, 9-11/25
DURABLE GOODS PRODUCTION, 9-11
DUTY TO ISSUE EXCHANGE MEDIA, 9-11



ECONOMIC SYSTEM, BASIC FLAW, 9-11
ECONOMIC SYSTEM, NEW, see Milhaud Plan
ECONOMICS, REAL, MODERN AND VULGAR -, 9-11
ECONOMIC TUTELAGE, 9-11
ECONOMISTS, 9-11
EDUCATION MONEY, 9-11/71
ELASTICITY OF MONEY SUPPLY, 9-11
ELECTRICITY WORKS AS ISSUERS, 9-11/119FF
ELECTRICITY, KWH as standard, 9-11/240
EMANCIPATION FROM THE CENTRAL BANK, 9-11
EMANCIPATION OF LABOUR, 9-11
EMERGENCY MONEY
EMERGENCY SALES PRICES FOR GOODS AND LABOUR, 9-11, 61-63
EMPLOYEES
EMPLOYERS AND EMPLOYERS WHO AREN'T
EMPLOYERS' BANKS OF ISSUE, 9-11
EMPLOYMENT, 9-11, see full employment, unemployment, crises
EMPLOYMENT PROGRAMMES
EMPTY SALES, see futures dealings
ENGLISH BANKS OF ISSUE, 9-11
ENLIGHTENMENT, 9-11
ENTERPRISE, FREE, see market, free enterprise
ESAG Plan, see Solneman
EXAMPLES, 9-11
EXCHANGE
EXCHANGE MEDIA, PATHOLOGICAL OR SUSPICIOUS, RIGHT TO REFUSE ACCEPTANCE, 61-63/110
EXCHANGE MEDIA SHORTAGE, see money monopoly
EXCHANGE MEDIUM, see means of exchange, money, currency
EXCHANGE RATE OF PAPER MONEY AND GOODS WARRANTS, 61-63
EXCHANGE RIGHT TO -, 61-63
EXCLUSIVE CURRENCY, 9-11, 61-63
EXPERIENCE WITH MONETARY FREEDOM, see history, examples, precedents, numbers, fichas, railway
money etc.
EXPERIMENTAL FREEDOM, 9-11, 61-63
EXPERIMENTS, LEGAL AND ILLEGAL ONES
EXPIRATION OF GOODS WARRANTS, see time limits
EXPORTS AND GOODS AND CLEARING WARRANTS, PURCHASING VOUCHERS ETC.
EXPROPRIATION AND INFLATION
EXTERNAL TRADE, see free trade, exports, imports



FACE VALUE, see nominal value, acceptance, legal tender, market rate, parity, reflux, discount,
61-63
FARMERS AND GOODS WARRANTS, 9-11/32,219, see agriculture
FEDERAL RESERVE SYSTEM, 9-11
FEES FOR THE USE OF GOODS WARRANTS, 61-63/102
FEES WHEN REPAYMENTS ARE MADE WITH OTHER EXCHANGE MEDIA, 61-63/103
FEUDALISM, 9-11
FIAT MONEY, see Legal Tender, Paper Money, forced currency, monetary despotism, inflation
FICHAS, see goods warrants, cantine money, employers' banks, wage payments, truck laws
FIDUCIARY ISSUES, see tax foundation, legal tender, paper money, forced currency, monetary
despotism
FINANCIAL BILLS, 9-11/95
FINANCIAL FREEDOM, 61-63
FINANCIAL LEGISLATION & HONESTY, 9-11/53
FINANCING BUILDING INDUSTRY, 61-63
FINANCING WITH THE AID OF THE ISSUE PRINCIPLE, 9-11
FINANCING THE PURCHASE OF ENTERPRISES BY THEIR STAFFS, 61-63/125
FINANCING RESISTANCE GROUPS, 61-63
FINANCING REVOLUTIONS, 61-63
FINE ON RETRUN OF OTHER MEANS OF PAYMENT, see smart money
FISCAL FOUNDATION, see tax foundation
FISCAL WARRANTS, of 1933, 9-11/93,94
FISHER, IRVING, 9-11
FLORENCE, 9-11
FOLLIN, H.L., 9-11
FORCED CURRENCY, 9-11, 61-63see legal tender
FORCED LOANS, 61-63
FORCED RATE, see legal tender
FORCED SALES, see auction sales
FORCED VALUE, 61-63
FORECLOSURES, 9-11/66
FOREIGN AID,61-63
FOREIGN CURRENCIES, 61-63.
FOREIGN EXCHANGE CONTROL
FOREIGN EXCHANGE RESERVES?
FOREING INVESTMENTS
FORFEIT MONEY, see futures dealings, premiums, smart money
FORGERIES & FORGERS
FORWARD SALES, see futures dealings
FOUNDATIONS OF FREE BANKING, see theories, principles, issue principles, rights,contracts
FOUR LAW DRAFTS, 9-11/121,127
FRACTIONIZING, see assets currency
FRANCE, 9-11
FRAUD, 9-11/57, 61-63
FREDERICK THE GREAT, 9-11
FREE BANKING
FREE BANKING, US TYPE
FREE BANKING, ENGLISH TYPE
FREE BANKING, SCOTTISH TYPE
FREE BANKING, PRUSSIAN TYPE
FREE BANKING, MEULEN TYPE
FREE BANKING, BECKERATH & RITTERSHAUSEN TYPE
FREE CHOICE OF VALUE STANDARDS, 61-63
FREE COINAGE
FREE CREDIT? 9-11/62
FREEDOM AND MONETARY FREEDOM
FREEDOM OF NOTE ISSUE, 61-63
FREEDOM TO REFUSE PAYMENT TOWARDS THE STATE'S SUPPORT, 61-63
FREE ENTERPRISE AND MONETARY FREEDOM
FREE EXCHANGE RATE
FREE GOLD MARKET
FREE MARKET AND MONETARY FREEDOM
FREE MARKET RATE FOR EXCHANGE MEDIA, 61-63
FREE MONEY MOVEMENT, see Gesell
FREE NOTE ISSUES, 61-63
FREE SOCIETY AND MONETARY FREEDOM
FREE TRADE AND MONETARY FREEDOM
FREEZING OF FUNDS, 9-11/138
FRENCH MEANS OF PAYMENT TRADITION, 9-11/168,169
FRENCH REVOLUTION AND MONETARY DESPOTISM, pp11
FULL EMPLOYMENT, 9-11, see unemployment
FURNITURE FACTORY EXAMPLE, 9-11/44
FUTURE GOODS AND SERVICES - NOT SUITABLE AS COVER, 9-11
FUTURES DEALINGS AND MONETARY FREEDOM



GAS WORKS AS ISSUERS, 9-11/122
GEORGIA RAILROAD CO., 9-11/86
GERMAN SCHOOL OF MONETARY FREEDOM
GERMANY, BANKS OF ISSUE ETC., 9-11
GESELL, SILVIO, 9-11
GIFT CERTIFICATES
GIRO MONEY, 9-11
GOETHE, 9-11
GOLD, 9-11, 61-63
GOLD ACCOUNTING, 61-63
GOLD BONDS
GOLD CERTIFICATES,61-63
GOLD CLAUSES, 61-63, see value preserving clauses, choice of value standards
GOLD CLEARING STANDARD
GOLD COINS,61-63
GOLD CONTRACTS
GOLD CONVERTIBILITY
GOLD COVER, 61-63, see convertibility, redemption, shop foundation, tax foundation
GOLD DEPOSITS, 61-63/120
GOLD DOLLARS OUT OF PAPER, 61-63
GOLD CULTURAL SIGNIFICANCE
GOLD DISTINCTION BETWEEN GOLD AS STANDARD OF VALUE AND AS MEANS OF PAYMENT,
GOLD DISTINCTION BETWEEN AUTHORITY TO PAY IN GOLD AND TO DEMAND PAYMENT IN GOLD
GOLD EXCLUSIVE CURRENCY? 61-63/114
GOLD HOARDS OF GOVERNMENTS, 61-63/115
GOLD LOANS, 61-63
GOLD MARKET
GOLD MEANS OF PAYMENT
GOLD OBLIGATIONS
GOLD OUTFLOWS AND FLUCTUATIONS, 61-63/120
GOLD PARALLEL CURRENCY
GOLD PRICE INCREASE, see devaluation
GOLD PRICING, 61-63
GOLD QUANTITY
GOLD RECKONING, 61-63
GOLD REDEMPTION, 61-63
GOLD RESERVE, 61-63
GOLD RESTRICTIONS, 61-63
GOLD RUBLE AS STANDARD FOR EAST EUROPEAN INSURRECTIONISTS, 61-63/170
GOLD SHORTAGE? 9-11/239
GOLD STANDARDS, 61-63
GOLD TAX, SALES TAX & OTHERS
GOLD VALUE LOANS, 61-63
GOLD VALUE RECKONING
GOLD WEIGHT UNITS, 61-63
GOOD MONEY DRIVING OUT THE BAD MONEY, 61-63/66,67,94ff, see Gresham's Law
GOODS COVER OR FOUNDATION FOR MONEY, 9-11, 61-63, see shop foundation
GOODS, SERVICE AND MONEY BALANCE, see Say's Law
GOODS, SINGLE, AS COVER (PETROL,GAS,GOLD,SILVER CERTIFICATES)
GOODS WARRANTS, 9-11, 61-63
GOVERNMENT BACKING OF BANKS
GOVERNMENT BONDS, 61-63
GOVERNMENT EXPENDITURES AND TAX FOUNDATION MONEY, 61-63/108
GOVERNMENT FINANCING BY INFLATION, 61-63/385
GOVERNMENT LOANS, 61-63
GOVERNMENT AND MONETARY FREEDOM
GOVERNMENT PREVENTING MOST OF US FROM BECOMING MILLIONAIRES! 61-63/144,145
GOVERNMENT SECURITIES OR "INSECURITIES"?, 61-63/145
GOVERNMENTS & FREE BANKING
GOVERNMENT SPENDING, EXCESSIVE, AND TAXFOUNDATION, 61-63
GREENBACKS, 9-11
GREENE, W.B., 9-11
GRESHAM'S LAW, 9-11, 61-63
GUARANTIED SALES VIA GOODS WARRANTS, 61-63
GUARANTIES FOR GOODS WARRANTS, 61-63
GUARANTIES FOR TAX FOUNDATION MONEY, 61-63
GUARANTIES FOR WORK SUPPLY BANKS etc.
GUILDS, 9-11




HAMBURG GIRO BANK, 9-11
HAMMURABBI, 9-11
HANDELS BILLETS, 9-11/186
HARMONY, ECONOMIC & MONETARY FREEDOM
HETEROGENEITY OF MEANS OF PAYMENT, 9-11
HISTORY, MONETARY
HISTORY, MONETARY CONCEPT OF -
HOARDING
HOMOGENOUS MONEY? 9-11
HONESTY IN MONETARY AFFAIRS, 9-11
HOPMAN
HORN, 9-11
HOUSES AS COVER, see buildings
HOUSING FINANCE, 61-63
HUEBNER, 9-11/168
HUMAN RIGHTS, 9-11




ILLEGALITY OF MONETARY FREEDOM
ILLEGALITY, ARE THERE ANY LOOPHOLES AND WILL THEY REMAIN OPEN?
ILLIQUIDITY, see liquidity, ability to pay, clearing, currency famine, deflation
IMMEDIATE ACTION PROGRAMME, 9-11
IMMEDIATELY AVAILABLE COVER REQUIRED, 9-11, see short term securities, shop foundation, tax
foundation, cover, foundation, time factor
IMPORTANCE OF MONETARY FREEDOM
IMPORTS,9-11
INCONVENIENCE OF MANY DIVERSE MEANS OF PAYMENT, 9-11
INCONVERTIBLE BANKNOTES, 9-11, see banking principle
INDEBTEDNESS IN A FORCED CURRENCY AS OPPOSED TO INDEBTEDNESS IN COMPETING CURRENCIES
INDEMNITY PAYMENTS IN CONTRIBUTION MONEY, 9-11
INDEPENDENCE FROM BANKS, 9-11
INDEPENDENCE FROM RAPIDITY OF MONETARY CIRCULATION, 9-11
INDEPENDENCE, MONETARY, 61-63/94ff, see monetary freedom
INDEX CURRENCY, 9-11
INDIA, 9-11
INDIVIDUALS AS ISSUERS, 9-11, 61-63
INDIVIDUALISM
INDUSTRIAL BONDS, 61-63/125,127,145
INDUSTRIAL DEVELOPMENT, 9-11/129,254,263
INDUSTRY, ARTIFICIAL SHORTAGE OF FUNDS, 61-63/145,146
INFERIOR MEANS OF PAYMENT, 61-63/69, see right to refuse acceptance, legal tender, refusal to
accept
INFLATION, 9-11, 61-63
INFLATION AND DEFLATION AT THE SAME TIME,9-11
INITIATION OF MONETARY FREEDOM, 9-11
INSOLVENCY, see liquidity, ability to pay, right to issue, right to clear, hoarding, deflation
INSTALMENT PAYMENTS FOR ENTERPRISES, 61-63/125,128
INSTALMENT REPAYMENT OF GOODS WARRANTS LOANS, 9-11/36, 61-63/104, 106ff
INSTANT EMPLOYMENT, 61-63/67, see employment, unemployment
INSTANT RICHES, 61-63/144,145, PP19
INSURANCE COMPANIES, 9-11, 61-63, see contribution money
INSURANCE UNEMLOYMENT, 61-63/149
INSURRECTION AGAINST FORCED CURRENCY, 9-11/237
INTEGRATION OF MILLIONS OF PEOPLE, QUITE SUDDENLY, INTO THE PROCESS OF PRODUCTION, 61-63/252,
see full employment, monetary freedom, shop association banks
INTELLECTUALS, 9-11
INTERNATIONAL AGREEMENTS, 9-11
INTEREST
INTEREST CEILINGS, 61-63/144,145, see usury
INTEREST AND MONEY MONOPOLY
INTEREST-FREE LOANS? 61-63/145
INTEREST RATES UNDER MONETARY FREEDOM, WHAT CHANGES COULD BE EXPECTED?
INTERNATIONAL CLEARING, 61-63/40
INTERNATINAL CLEARING CERTIFICATES, see Milhaud Plan
INTERNATIONAL DIVISION OF LABOUR, 61-63, see division of labour, Free Trade, exports, imports,
clearing certificates, Milhaud
INTERNATIONAL GUARANTIES AND SUBSIDIES REQUIRED FOR CURRENCY RFORMS?
INTERNATIONAL TRADING, 61-63/39,115ff,216, see Free Trade and protectionism
INTOLERANCE, 9-11
INVESTMENTS. 9-11, 61-63/69, see value preserving clauses, gold clauses, gold standards
IOUs, 9-11, 61-63
ISSUE FREEDOM, 61-63
ISSUE MONOPOLY, see money monopoly, monopolies
ISSUE PRINCIPLE
ISSUERS' LOSSES FROM OVER-ISSUES, 61-63/111, see discount, inflation, legal tender, free market
rate, right to refuse acceptance, acceptance foundation, obligation to accept the own exchange
media
ISSUERS, POTENTIAL, 9-11, 61-63



JOBS WITHIN HOURS, 61-63/66, see employment, full employment, unemployment, deserters, refugees
JOHANNSEN, O.B., 9-11/200
JOKES


KERR, 9-11/34,243
KEYNES, J.M., 9-11
KILOWATT HOUR AS STANDARD? 9-11/240
KNAPP, G.F., 9-11
KU SUI LU, 9-11/12,61


LABADIE, L., 9-11/111
LABOUR, 9-11
LABOUR, SALE OF - , 61-63/ 94ff, 189, see employment, monetary freedom, unemployment
LAISSEZ FAIRE WITHOUT MONETARY FREEDOM? 9-11, 61-63
LAND AS COVER? 9-11
LAND BANKS?
LAND LORDS, 9-11
LAND REFORM
LARGE FIRMS AS ISSUERS, 61-63/106,151
LAW DRAFTS, THE FOUR -
LAW OF FLUCTUATING GOLD QUANTITIES, 61-63/115,120. (But one should not have to depend on it working
as expected and fast enough.)
LAW, JOHN, 9-11/92
LEGAL CLAIM OF CREDITORS TO PAYMENT IN GOLD ETC., see creditors' right, futures dealings,
clearing, right to clear
LEGAL FORM OF ISSUING CENTRES, 61-63/104
LEGAL OPTIONS?
LEGAL TENDER, 9-11, 19, 61-63
LEGISLATION, EXISTING RESTRICTIVE LEGISLATION
LEGISLATION REQUIRED FOR MONETARY FREEDOM?
LEGITIMATE DEMAND FOR MEANS OF PAYMENT? 9-11
LEIPZIG-DRESDEN RAILWAY & RAILWAY MONEY, 9-11
LENIN, 9-11
LETSYSTEM
LICENSING
LIMITS FOR ISSUES, 9-11, 61-63/99,100, see free market rate, discount, refusal to accept
LIMITS FOR TAX FOUNDATION MONEY, 61-63/109,111
LIQUIDIFYING OF SUITABLE CAPITAL FOR EMPLOYMENT PURPOSES, 61-63/67, 104
LIQUIDITY
LIQUIDITY, LEGAL REQUIREMENT, 61-63/339
LITERATURE ON MONETARY FREEDOM, unknown, forgotten, ignored, unpublished, and microfiche
publishing. See Bibliography
LOANS, 9-11, 61-63
LOAN CERTIFICATES, 61-63
LOAN CONDITIONS, 61-63
LOAN COOPS, 61-63
LOANS, DEFENCE PURPOSES, 61-63
LOANS, GOLD VALUE, 61-63
LOANS IN GOODS WARRANTS, LONG TERM, 61-63/106ff, 183
LOANS IN GOODS WARRANTS, SHORT TERM, 61-63/101,102,104
LOAN SUBSCRIPTIONS WITH DEPRECIATED STATE PAPER MONEY, 61-63/120
LOCAL CURRENCY, 9-11, 61-63
LOMBARD LOANS IN NOTES?
LONDON GOLD MARKET,61-63/377
LONG TERM BUILDING LOANS, 61-63/141,142
LONG TERM LOANS, 9-11, 61-63special arrangements required for payments in goods warrants
LONG TERM SECURITIES, ISSUE FREEDOM, 61-63/65,120,341
LUNCHEON VOUCHERS


MACHINE MANUFACTURERS, LARGE, AS ISSUERS, 61-63/120
MACKAY, JOHN HENRY
MAKE MONEY, NOT WAR, 61-63/391
MAKE-WORK-JOBS, 61-63/132
MAKUTA CURRENCY,9-11
MANAGED CURRENCY, 9-11
MAIPULATION OF MONEY, 61-63/67, 120, see monetary despotism
MAN'S GOODNESS AND MONEY, 9-11/257
MARCUS AURELIUS, 9-11
MARIA THERESIA THALERS, 9-11/257
MARK BANCO, 9-11
MARK, DOUBLE DEFINITION, 9-11/89
MARKET, FREE
MARKET RATE FOR EXCHANGE MEDIA, 61-63
MARX, 9-11, 61-63
MASSES, 9-11
MAXIMUM AMOUNTS FOR SINGLE LOANS, 61-63
MAXIMUM SIZE OF BANKS, 9-11
MEASUREMENT, 9-11
MEANS OF EXCHANGE AND PAYMENT AND CLEARING, see e.g. cover, compulsory acceptance, forced
currency, clearing bills, gold, goods warrants, legal tender, money, token money, emergency money,
issue freedom, monetary freedom, paper money, banknotes
MEANS OF EXCHANGE, PATHOLOGICAL, 61-63/110
MEANS OF EXCHANGE AND STANDARD OF VALUE FUNCTIONS, MIXED UP, 61-63/113
MEANS OF PAYMENT, INTERNATIONAL, 61-63/119,121
MEANS OF PAYMENT MONOPOLY, 61-63
MEANS OF PAYMENT FOR THE PURCHASE OF ENTERPRISES BY THE STAFF, 61-63/125
MEANS OF PAYMENT, PRIVATE, ALTERNATIVE, 61-63
MEASURE FOR MONEY ISSUES, 61-63/99
MEASURING VALUES, 61-63/342, see gold, choice of value standards, standards of value, gold
standards
MEDDLING, 9-11
MEDIUM TERM SECURITIES, ISSUE FREEDOM, 61-63/65,341
MENGER, KARL, 9-11
METALLIC CURRENCY, 9-11
MEULEN, 9-11, 61-63/208
MICHAELIS, DR., 9-11
MIDDLE AGES, 9-11, 61-63
MIDDLEMEN'S BILLS, 9-11
MIGRATION, FREEDOM OF MIGRATION, MONETAR FREEDOM REQUIRED.
MILHAUD, PROF. E., 9-11, 61-63
MILHAUD SYSTEM & CLEARING 9-11/238
MILITARY EXPENDITURES, 61-63
MILITARY INSURRECTIONS AND MONETARY FREEDOM
MILITIA DEBTS, 61-63/275
MILITIA FEES FOR MEMBERSHIP, 61-63/273ff
MILITIA FINANCE, 61-63
MILITIA TAXATION, 61-63/255
MILLIONAIRE PENSIONERS? 61-63/144,145
MILL, J.ST.
MINI GOVERNMENTS AS ISSUERS, 61-63
MINIMUM CAPITAL EQUIPMENT, 61-63
MINTING, see coinage
MISES, LUDWIG von
MIXING UP OF FALLEN AND FALLING PRICES, 61-63/67
MIXING UP OF EXCHANGE MEDIA AND STANDARD OF VALUE, 61-63/67
MOBILIZATION OF ILLIQUID CAPITAL, 61-63
MODERN BANKING
MODERN ECONOMICS, 9-11
MONETARY CONCEPT OF HISTORY
MONETARY CRISES, 9-11
MONETARY DESPOTISM, 9-11, 61-63
MONETARY ECONOMY, 61-63
MONETARY EDUCATION, 9-11
MONETARY FREEDOM, 9-11, 61-63
MONETARY HISTORY CONCEPT, 9-11
MONETARY POLICY, see currency policy, value standard policy, central banking
MONETARY RELIGION, 61-63/211
MONETARY REVOLUTION, 9-11, 61-63
MONETARY RIGHTS, 61-63/341,342
MONETARY STANDARDS, see standard of value, gold standard, parallel currency, choice of value
standards
MONETIZING STOCKS AND ASSETS, see standardization
MONETIZING WEALTH
MONEY, NATURE OF -, THEORIES OF MONEY AND VARIOUS DEFINTIONS, 9-11, 61-63
MONEY CIRCULATION, 61-63
MONEY CRANKS
MONEY "CREATION"
MONEY DENATIONALIZATION, see Hayek
MONEY GOODS RELATIONSHIP, see Say's Law
MONEY ISSUE, 61-63
MONEY LENDERS
MONEY "LORDS"
MONEY MANIPULATION, 61-63
MONEY MONOPOLY,9-11, 61-63
MONEY PREROGATIVE OF THE STATE?
MONEY SHORTAGE, 61-63
MONEY SUBSTITUTES
MONEY SUPPLY
MONITORING OF FREE MARKET RATE, 61-63/67, see publicity
MONOPOLIES, 9-11, 61-63
MONOPOLY COINAGE, 61-63
MONOPOLY EMPLOYMENT MEASURES, 61-63
MONOPOLY ISSUE MONOPOLY, 61-63/66
MONOPOLY MONEY, 61-63
MONOPOLY STOCK EXCHANGE, 61-63/146
MORAL ASPECT OF CRISES, 9-11
MORATORIUM, 9-11/253
MORTGAGE BANKS, 9-11
MORTGAGES, 61-63
MULTIPLICITY OF EXCHANGE MEDIA
MUNICIPAL LOANS & CLEARING, 9-11
MUNICIPAL PAPER MONEY, based on rates and fees, 9-11, 61-63
MUTUAL BANKS
NATIONAL BANKING, see central banking
NEED FOR MONETARY FREEDOM
NEEDS TRANSFORMED INTO DEMAND WITH PURCHASING POWER, 61-63/68,105
NEGRO TRIBES, MONEY, 9-11/59
NEUTRAL MONEY
NEWCHWANG SYSTEM, 27
NOMINAL VALUE
NOMINAL VALUE ACCEPTANCE, 61-63
NON-CASH PAYMENTS, 9-11, 61-63/180, see clearing
NON-CONVERTIBLE PAPER MONEY, 9-11/221
NOTE ISSUE FREEDOM, 61-63
NOTE ISSUE MONOPOLY, 61-63
NOTE ISSUE OBLIGATION, 9-11
NOTE PRINTING PRESS, 61-63
NOTES, see banknotes
NOTICE OF WITHDRAWAL OF LONG TERM CREDITS, 9-11
NOTICES RE ACCEPTANCE OF NOTES, 9-11
NUCLEAR WAR THREAT AND MONETARY FREEDOM
NUMBERING OF NOTES, 9-11/79
NUMBERS OF COMPETING BANKS




OBEDIENCE, 9-11
OBJECTIONS, 9-11
OBLIGATION TO ACCEPT THE OWN EXCHANGE MEDIA, 61-63
OCCUPATION OF THE CENTRAL BANK, 61-63/177,178
OESER, MINISTER, 9-11
OHIO RAILROAD CO., 9-11/86
OPTIMAL MONEY QUANTITY
OPTIMAL SIZE, 9-11
OPTIMUM EXCHANGE, 61-63/68, see saturation with exchange media
OPTION CLAUSE NOTES, 9-11, 61-63/98
ORDERLY BANKING?
ORDERS, HUGE, PUBLIC, FOR EMPLOYMENT PURPOSES? 9-11
ORDERS FOR CAPITAL GOODS, 61-63/108,179
ORDERS FOR GOODS AND SERVICES AND POSSIBLE EFFCT ON LIQUIDITY UNDER MONETARY FREEDOM, 61-63/68
ORDERS AND MONEY
ORDER SYSTEM FOR GOODS WARRANTS AND PRIVATE NOTES
ORGANIZATION FOR MONETARY FREEDOM, 61-63/67,68, see Employment Banks, Work Supply Banks,
monetary freedom, potential issuing centres
OSCILLATION RATHER THAN CIRCULATION OF PRIVATE NOTES, 9-11, 61-63/98
OUTFLOW OF GOLD, 61/63/120
OUTLAWRY OF VALUE PRESERVING CLAUSES, 61-63/67
OVER-DUE GOODS WARRANTS, 9-11
OVER-FULL EMPLOYMENT, 61-63/141,150
OVER-HEATING THE ECONOMY? 61-63/141
OVER-ISSUES, 61-63,see inflation, legal tender, free market rate, limits, guarantees, discount,
market rate, control
OVER-PRODUCTION? 9-11
OVERSTONE, LORD, 9-11/90


PANARCHY AND MONETARY FREEDOM
PANICS, see runs, redemption, convertibility, right to clearing only
PAPER MONEY, 61-63, see central banking, clearing bills, forced currency, goods warrants,
exclusive currency, legal tender
PAPER MONEY PAYMENT COMMUNITIES, 9-11
PARALLEL CURRENCY, 9-11, 61-63/115
PARITY, 9-11
PATRIOTISM AND PAPER MONEY 9-11
PAYMENT,9-11,61-63
PAYMENT ALTERNATIVE EXCHANGE MEDIA, 61-63
PAYMENT BY CLEARING, 61-63
PAYMENT COMMUNITIES, 61-63
PAYMENT IN GOLD AND IN GOLD VALUES, 61-63/114
PAYMENT BY REVOLUTIONARIES, 61-63
PAYMENT SYSTEM
PAYMENT OF WAGES AND EARNINGS UNDER MONETARY FREEDOM
PAYMENT OF WEAPONS SURRENDERED
PAY OF REVOLUTIONARY SOLDIERS AND OFFICERS, 61-63
PEACE AND MONETARY FREEDOM
PEEL'S ACT,9-11
PENNSYLVANIA BANKS, 9-11/254
PENSIONERS COULD BE MILLIONAIRES, 61-63/144,145
PENSION SOCIALISM
PEOPLE, EXTORTED BY FORCED CURRENCY, 9-11
PEOPLE'S BANKS, 9-11, 61-63
PERIODICITY OF DEPRESSIONS, 9-11, see cycles
POSTAL CHEQUE SYSTEM, 9-11/54
POSTAL STAMPS, 9-11/81
POST OFFICE AS ISSUING CENTRE, 9-11/119
POSTERS ADVERTISING READINESS TO ACCEPT,9-11
POUND, DOUBLE DEFINITION, 9-11
POVERTY, 61-63
POWER, see forced currency, central banking, legal tender, exclusive currency, money monopoly,
monetary despotism, monetary revolution
PRACTICABILITY, see technical detals of free banking, monetary revolution, experimental freedom
PRACTICAL MEN? 9-11
PRECEDENTS
PRECIOUS METALS, 9-11
PREDONE LABOUR EQUALS CAPITAL AND HAS A RIGHT TO MARKET RATE RETURNS, 61-63, see interest, usury
PREJUDICES, see objections
PREMIUM CONTRACTS, WITHDRAWAL, 9-11/36 ETC.
PREMIUMS, CIRCULATIN OF EXCHANGE MEDIA, 61-63/66,97,110
PREMIUMS WHEN OTHER MEANS OF PAYMENT ARE USED, 61-63/103,112
PREROGATIVE RE MONEY? 9-11, 61-63/369
PRICE ADAPTION TO ANY QUANTITY OF EXCHANGE MEDIA IN CIRCULATION, FAST ENOUGH?
PRICE CONTROL AND MONETARY DESPOTISM
PRICE INCREASES THROUGH ANY ADDITIONAL EXCHANGE MEDIA, GOING BEYOND THE ABOLITON OF EMERGENCY
SALES PRICES? 9-11, 61-63/97,110
PRICE REDUCTIONS THROUGH MONETARY FREEDOM?
PRICES, FALLING AND FALLEN, THE IMPORTANT DISTINCTION, 61-63/67
PRICE INCREASES, NO GENERAL ONES, BY DEBTORS OF SHOP ASSOCIATION BANKS, DURING LOANS, 61-63/102.
(Largely avoided anyhow, by using stable value standards.)
PRICE LEVEL, GENERAL, AS A GUIDE FOR CURRENCIES? 61-63/110
PRICING, FREE MARKET -, 61-63
PRICING IN GOLD WEIGHT UNITS, 61-6
PRICING IN SOUND OTHER VALUE STANDARDS, 61-63
PRIMARY PRODUCTS, 61-63, see agriculture, farmers
PRIMITIVE MONEY
PRINCIPLES OF ISSUE AND COVER
PRINTING PLATES OF CENTRAL BANKS, TO BE DESTROYED, 61-63/178,184
PRIVATE BANKING, 61-63
PRIVATE COINAGE, 61-63
PRIVATE ENTERPRISE
PRIVATE FINANCING OF HOUSING, 61-63
PRIVATE INTERNATIONAL CLEARING
PRIVATE MEANS OF PAYMENT, INCLUDING PRIVATE PAPER MONEY, 61-63
PRIVATE VALUE STANDARDS, 61-63/211
PRIVILEGE TO RECEIVE LEGAL TENDER, 9-11
PROCURABILITY OF MONEY, GOODS AND GOODS WARRANTS, 9-11
PRODUCERS AS ISSUERS, 61-63/120, see issuers
PRODUCTION POTENTIAL, UNUSED, 9-11
PRODUCTION UPON ORDERS
PROGRAMMES FOR IMMEDIATE ACTIONS
PROGRESSIVE EFFCT OF DEFLATIONS AND INFLATIONS, 9-11
PROMISES TO PAY, 9-11
PROMISSORY NOTES, 9-11, 61-63/341, see commercial bills, IOUs
PROPAGANDA FOR MONETARY FREEDOM, 9-11
PROPERTY AND TRANSFERABILITY
PROPOSALS, NUMBER OF REFORM -, 9-11/5,10
PROTECTION
PROUDHON, 9-11
PRUSSIAN BANKS OF ISSUE, 9-11/34
PRUSSIAN ECONOMIC TRADITIONS, 9-11
PUBLIC DEBT, 61-63, see government bonds
PUBLICITY FOR ISSUE DETAILS, 9-11,61-63
PUBLIC WORKS? 9-11
PURCHASE OF ENTERPRISES and goods and service warrants
PURCHASE OF GOODS WARRANTS, 61-63/103,112
PURCHASING CERTIFICATES, 61-63/341, see goods warrants, clearing bills
PURCHASING ORDERS, see goods warrants
PURCHASING POWER
PURCHASING POWER LOSSES, 61-63/115, see inflation
PURCHASING POWER PARITY, 61-63/123




QUANTITY OF GOLD, 61-63/114,115
QUANTITY THEORY



RAILWAY MONEY
RAILWAYS, 61-63
RAMIN, DR. GUSTAV
RAND, AYN
RAW MATERIALS
READINESS TO ACCEPT FOUNDATION
READY MONEY
REAL BILLS DOCTRINE
REAL ESTATE AS COVER?, 9-11
RECEIPTS AS MEANS OF PAYMENT AGAINST DEBTORS, 9-11/187
RECESSION
REDEMPTION
REDEMPTION OBLIGATION, 9-11, 61-63 see convertibility, cover, foundation, reflux
RE-EMPLOYMENT, see Unemployment, full employment, Work Supply Banks
REFLUX OF EXCHANGE MEDIA TO THE ISSUER, 9-11, 61-63
REFUGEES AND MONETARY FREEDOM, 61-63
REFUSAL TO ACCEPT MONEY ISSUED BY OTHERS, 61-63, see right to refuse acceptance
REFUSAL TO ACCEPT A GOVERNMENT'S PAPER MONEY, 61-63
REGULARITY OF SALES,9-11
REICHSBAHN, see railway money
REICHSBANK, 9-11, 61-63
REICHSKASSENSCHEINE, 9-11, see tax foundation
RE-ISSUE REQUIRED? 9-11
RELIEF WORK?
RENTENBANK, 9-11
RENT PAYMENT IN GOODS WARRANTS, 9-11
REPAYMENT OF GOODS WARRANTS, 61-63/103,104
REPAYMENT IN INFLATED PAPER MONEY, 61-63/144
REPAYMENT IN INSTALMENTS, 61-63
REPAYMENTS OF LOANS, 9-11
REPAYMENT OF LONG TERM CREDITS, 61-63/107,108
REPORS, FREQUENT, ON ISSUES
REPRIVATIZATION, 9-11/284
REQUIREMENTS, see details, technical details, free banking, statutes, Work Supply Banks,
programmes
REQUISITIONING, 9-11, 61-63
REQUISITIONING CERTIFICATES, 61-63/162
RESERVE BANKS, see central banking
RESERVES OF GOLD OR FOREIGN EXCHANGE? 9-11, 61-63/120
RESERVES OF UNEMPLOYED? 61-63/150
RESERVES OF UNEMPLOYMENT INSURANCE? 61-63/149
RESISTANCE AGAINST CURRENCY MISMANAGEMENT AND MANIPULATION, 9-11/239
RESTRICTIONS, LEGAL
RESULTS OF MONETARY FREEDOM, see freedom, inflation, unemployment, deflation, refugees,
desertion, revolution
RETAIL TRADERS AS ISSUERS, 9-11, 61-63, see shop association banks, monetary freedom,
shopkeepers, shop foundation
REVALUATION
REVISIONISM, MONETARY HISTORY, FRENCH REVOLUTION, pp 11, see Prussian economic tradition, Roman
Empire
REVOLUTION, CENTRAL BANK, 61-63/177,178
REVOLUTION, FINANCING A - , using monetary freedom,61-63
REVOLUTION, MONETARY, 9-11
REVOLUTION, MONEY SHORTAGE, 61-63/178
REVOLUTION, TAX STRIKE, 61-63/186,187
REVOLUTION, UNEMPLOYMENT, 61-63
REVOLVING CREDIT, 9-11
RHODE ISLAND BANKS, 9-11/254
RIGHT OF BANKING
RIGHT TO CHOOSE ONE'S VALUE STANDARD, 61-63
RIGHT TO CLEAR, 61-63
RIGHT TO DEMAND CASH OR ANY EXCLUSIVE CURRENCY
RIGHT TOWARDS GOLD, 61-63/114
RIGHT TO ISSUE, 61-63
RIGHT TO REFUSE ACCEPTANCE, 61-63
RIGHT TO SUPPLY ONESELF WITH WORK, 61-63
RIGIDITY OF MONEY SUPPLY, 9-11
RISKS, see reserves, cover, control, securities, reflux, interest, acceptance foundation,
clearing, credit insurance
RISKS IN FUTURES DEALINGS WITH CASH, 61-63
RISKS IN LOANS, 61-63/102,116
RISKS UNEMPLOYMENT, 61-63/149
RITTERSHAUSEN, PROF. HEINRICH,9-11, 61-63
ROADBUILDING FINANCE, 9-11, 61-63
ROMAN EMPIRE, 9-11, 61-63
ROTHBARD, MURRAY N., 9-11, 61-63
RUM CURRENCY
RUN, SAFEGUARDS AGAINST RUNS, 9-11, 61-63
RURAL MARKET AND GOODS WARRANTS, 9-11
RUSSIA



SACRIFICES REQUIRED? 9-11, 61-63
SALARIES, see wages, earnings
SALES, ACCELLARATION, CERTAINTY, 61-63,see marketing, advertising, sales costs
SAMPLES OF PRIVATE NOTES
SATURATION OF THE MARKET WITH EXCHANGE MEDIA, 61-63/66,68
SAVINGS, DEVALUATION AND DEPRECIATION AND FREEZING, INTEREST REGULATION, FORCED LOANS, TRUSTEE
ACTS ETC., 61-63
SAVINGS, PURPOSIVE, 61-63/143
SAXON TREASURY NOTES, 9-11/93,94,121
SAY'S LAW
SCHACHT, 9-11
SCHOENSTEIN PLAN, see Solneman
SCHOOL MONEY ISSUES, 9-11/71
SCOTTISH BANKS OF ISSUE, 9-11, 61-63
SCRIP, see goods warrants
SCRIP SCHEME OF SCHOOL OF LIVING
SEASONAL UNEMPLOYMENT, 9-11
SECESSION, INDIVIDUAL, AND MONETARY FREEDOM
SECURITIES COMPARED WITH MONEY
SECURITIES, GOVERNMENT -, 61-63/145,146, see Trustee Acts
SECURITIES, ISSUE, 61-63
SECURITIES ISSUED FOR THE PURCHASE OF ENTERPRISES BY THEIR STAFF, 61-63/125
SECURITY OF CASH AND NON-CASH PAYMENTS
SECURITY OF GOODS WARRANTS, 9-11, 61-63
SECURITY OF GOVERNMENT SECURITIES
SECURITY OF TAX FOUNDATION MONEY, 61-63/109
SELF-FINANCING, 61-63/144
SELFHELP, 9-11, 61-63
SELFINTEREST OF ISSUERS AND ACCEPTORS, 61-63/66,67
SELF-RECOVERY, 9-11
SENNHOLZ, DR. HANS F., 9-11/179
SEPARATISM AND CURRENCY, 9-11/240
SERFDOM AND MONETARY DESPOTISM, 9-11
SERVICE COVER OR FOUNDATION FOR MONEY, 61-63/65, see railway and electricity money etc.
SETTLING ACCOUNTS, 61-63, see clearing
SHARES COMPARED WITH MONEY
SHARES, DIVIDEND PAYMENTS, 9-11
SHARE ISSUES, 61-63
SHOP ASSOCIATION BANKS, 61-63
SHOP CURRENCY, AUSTRALIAN, 61-63/100
SHOP FOUNDATION
SHOP FOUNDATION CURRENCY, 61-63
SHOPKEEPERS, 61-63
SHOPS AS ISSUERS, 61-63
SHORTAGE OF MEANS OF PAYMENT, 9-11,61-63
SHORT CIRCULATION PERIOD, 61-63
SHORT SALES, see futures dealings
SHORT TERM CREDITS, 61-63
SHORT TERM SECURITIES AS COVER
SHORT TERM CREDITS ONLY WITH GOODS WARRANTS (unless special precautions are taken)
SHUT DOWNS, 61-63
SIGNAL LAMPS EXAMPLE, 9-11
SIGNS, ON READINESS TO ACCEPT
SILVER COINS, 61-63, see parallel currency
SILVER STANDARD, 9-11/239
SLUMPS, see crises, depressions, deflation
SMART MONEY, 9-11
SMITH, ADAM, 9-11
SOCIALISM, 9-11
SOLDIERS' PAY, 9-11
SOLVENCY, 9-11
SOLNEMAN, K.H.Z.
SOUND EXCHANGE MEDIA AND VALUE RECKONING, 61-63/66, see gold, monetary freedom, value standards,
goods warrants,
SOVEREIGNTY AND MONEY, 9-11
SOVIET GOVERNMENT,OVERTHROW, 9-11
SPAHR, WALTER e.,9-11/289
SPARKING AN ECONOMY? 9-11
SPECULATION?
SPENCER, HERBERT, 9-11
SPHERE OF BUSINESS OF A FREE BANK, 9-11/33,35
SPOONER, LYSANDER
SPURIOUS CAPITAL, 61-63/124
STABILITY OF CURRENCY AND STANDARDS, 9-11
STABLE VALUE RECKONING, 61-63
STAGFLATION, 61-63
STAMPS
STAMP SCRIP, GESEL
STANDARDIZATION OF EXCHANGE MEDIAL
STANDARD OF MEASUREMENT, 61-63
STANDARDS OF VALUE, 61-63
STANDARDIZATION
STATE BANK, 61-63/178,179, see central bank, reserve banking, nationalization, Reichsbank, Bank
of England, Federal Reserve Banks
STATE AND MONETARY FREEDOM, 61-63/108,178
STATE PAPER MONEY, 61-63/55, see paper money, forced currency, legal tender, monetar despotism,
money monopoly
STEIN, LORENZ von, 9-11, 61-63/112
STIRNER, MAX, 9-11/116
STOCK BROKERS, 61-63/146
STOCK EXCHANGES, 9-11, 61-63
STOCKS, RETAIL, IMPORTANCE
STOCKS, IN STORES, AS THE REAL WORKING CAPITAL OF COUNTRIES, 61-63/94, see shop foundation
STOCKS, UNMARKETABLE, PRESSING ON THE MARKET, 9-11
STORE CURRENCY, AUSTRALIAN, 61-63/100
STORE KEY EXAMPLE, 9-11/148
STORES AND FREE BANKING, 61-63/94ff
STORES AS ISSUERS, SEE SHOP FOUNDATION, SHOP KEEPERS
STRAFGROSCHEN, see smart money
STRUCTURAL UNEMPLOYMENT?
SUBDIVISION OF ASSETS, see assets standardization
SUBSIDIARITY PRINCIPLE, 9-11
SUCTION POWER, see acceptance foundation, debt founation, reflux, shop foundation, tax
foundation
SUPERVISION OF FREE BANKS, 9-11
SUPPLY AND DEMAND, 9-11, 61-63
SUPPLY WITH EXCHANGE MEDIA, 61-63
SUPPLY OF GOLD, 61-63/114,115
SUPPLY OF MONEY, see liquidity, money-goods relationship, money monopoly, money supply, quantity
theory
SURCHARGE, WHEN OTHER MEANS OF PAYMENT ARE OFFERED THAN THE CONTRACTED ONES, 9-11, 61-63 see smart
money
SURPLUS VALUE
SUSPENSION OF FURTHER ISSUES, 9-11
SUSPICION, see confidence, goods warrants, discount, debt foundation, tax foundation, shop
foundation
SUSPICIOUS EXCHANGE MEDIA, RIGHT TO REFUSE ACCEPTANCE, 61-63
SYSTEM OF PAYMENTS, 9-11
SZMAK, G., 9/11/292


TAEL SYSTEM, 9-11
TARIFFS, CUSTOM DUTIES IN GOLD FOR ACCOUNT
TAX ARREARS
TAX DEBTS, 61-63/113
TAXATION AND DEFLATION
TAX FOUNDATION AND TAX FOUNDATION MONEY, 9-11, 61-63
TAXATION AND INFLATION
TAX ON NOTE ISSUES
TAX PAYMENTS, IN ADVANCE, VOLUNTARY, WITH DEPRECIATED TAX FOUNDATION MONEY, 61-63/111
TEACHERS' WARRANTS
TECHNICAL DETAILS OF THE ISSUE OF PRIVATE MONEY
TECHNOLOGICAL CHANGES AND UNEMPLOYMENT, 9-11,149, 169
TERM DEALINGS, see futures dealings
TEXTILE WORKERS, ORDER SYSTEM EXAMPLE, 9-11/17
TEXTS OF GOODS WARRANTS ETC., 9-11, 61-63
THEATRE COVER, 9-11/48
THEORY OF FREE BANKING, OF MONEY
THIRD PARY PAYMENTS, 9-11/167
TICKETS AND GOODS WARRANTS, 9-11, 61-63/1009
TIME BARGAINS, see futures dealings, smart money
TIME LIMITS
TIME LIMITS FOR LOANS, 61-63/104
TIME LIMITS FOR TAX FOUNDATION MONEY, 61-63/113,120
TIME OBLIGATION, see futures dealings
TOKEN MONEY, 61-63
TOLERANCE FOR TOLERANT ACTIONS IN THE ECONOMIC AND SOCIAL SPHERE, 9-11,61-63
TRADE, 61-63
TRADE BALANCES, 61-63/115
TRADE WITH COMMUNIST GOVERNMENTS, PP8, 61-63/121,170,286
TRADE CYCLE THEORY, 9-11
TRADE EXTERNAL, see Free Trade
TRADE, INDEPENDENT OF THE POSSESSION OF GOLD, 61-63/114
TRADE INTERNATIONAL, see Free Trade
TRADE WARS, 61-63
TRADERS, 61-63/116
TRADING NOTES, 9-11/186
TRADING STAMPS
TRADITION, 9-11
TRANSFERABILITY OF VALUES, 9-11, 61-63
TRANSFER MONEY, 9-11, see deposit banking, book money, clearing
TRANSITION TO GOLD CLEARING CURRENCY, 61-63/115
TRANSITION PERIOD, 61-63/348,385
TRANSPORT TICKETS AND GOODS WARRANTS, 61-63
TRAVELLERS' CHEQUES
TREASURY, 61-63/66,108
TREASURY BILLS, 61-63/103
TREASURY BILL DISCOUNTS, 61-63/109
TREASURY CERTIFICATES AS CURRENCY, 61-63/181, see paper money, tax foundation money
TREASURY NOTES, SOUND AND UNSOUND ONES
TRUCK SYSTEM, see Bth. Notverordnung & Ramin on non-cash payments
TRUST
TRUSTEE ACTS
TURNOVER CREDIT
TUTELAGE, ECONOMIC, 9-11/12,23, 61-63, see dirligism, central banking, meddling, monetary
despotism, money monopoly
TYPES OF FREE BANKING
TYPIFICATION OF GOODS WARRANTS, 61-63/98,99
UNCOVERED SALES OF MEANS OF PAYMENT, see futures dealings
UNDERDEVELOPED COUNTRIES, see development
UNDER-ISSUES OF EXCHANGE MEDIA, 61-63/66
UNDERSELLING, 9-11/255, 61-63
UNEARNED INCOME? 9-11
UNEMPLOYMENT, 9-11, 61-63, see full employment, Work Supply Bank, Programmes
UNEMPLOYMENT "INSURANCE", 61-63/149
UNEMPLOYMENT, SEASONAL, 61-63/143
UNIFORMITY OF MONEY TOKENS? 9-11
UNILATERAL CURRENCY REFORM, 9-11
UNILATERAL FREE TRADE, 61-63/216,338
UNIVERSITY MONEY
USUFRUCT CHARGES, 9-11
USURY ASSUMPTIONS, 9-11, 61-63
USURY LEGISLATION
UTILITY COMPANIES AS ISSUERS, 9-11/119
UTILITY OF PAPER MONEY, 9-11



VALIDITY, LIMITED, OF GOODS WRRANTS, 61-63/95,97,98
VALIDITY, LIMITED, OF TAX FOUNDATION MONEY, 61-63/113
VALUE, 9-11, 61-63
VALUE PRESERVING CLAUSES, 61-63
VALUE STANDARDS, 61-63
VALUE STANDARDS AND MEANS OF EXCHANGE, 61-63
VALUE STANDARDS COMPETING WITH EACH OTHER, FREE CHOICE IN -
VALUE TOKENS, 61-63/66
VELOCITY OF MONEY, see circulation speed, Gesell, hoarding, independence
VOLUNTARY ACCEPTANCE, 61-63/66,67, see acceptance foundation, free market rate, obligation to
accept, refusal to accept
VOLUNTARY TAXATION, 61-63
VOUCHERS


WAERA WARRANTS,9-11/55
WAGEMANN, PROF., 9-11/203
WAGE LEVEL, 61-63
WAGES PAID IN COMMODITIES, 61-63/196, see truck system
WAGE PAYMENTS, AND MONETARY FREEDOM 61-63
WAGE PAYMENTS, BLOCKING OF-, 61-63
WAGES PRICED OUT IN SOUND VALUE STANDARDS, 61-63/66
WAGNER, PROF. ADOLF, 9-11, 61-63/110,111
WALRAS,9-11/240
WAREHOUSE WARRANTS
WAR, MONETARY DESPOTISM AND MONETARY FREEDOM
WARNER, JOHN DEWITT -,9-11
WAR ON POVERTY
WARRANTS
WASHINGTON, GEORGE, 9-11/225
WATERWORKS AS ISSUERS, 9-11/119, 61-63/106
WATTS, PROF. ORVAL V., 9-11/218
WEALTH AND CLEARING, 9-11
WILDCAT BANKING
WIR WIRTSCHAFTSRING, see Solneman
WOERGL EXPERIMENT, 9-11
WOOLWORTH AS ISSUER, 9-11/29
WORK, PROVISION OF -, 61-63/337, see employment, unemployment, Work Supply Banks, right to supply
oneself with work, monetary freedom
WORKERS AND MONETARY FREEDOM
WORK HOUR STANDARD PROPOSALS
WORKING CAPITAL
WORK, ORDERS PLACED, AND EMPLOYMENT, 9-11/18
WORK SUPPLY BANKS

ZANDER, Dr. WALTER, 9-11, 61-63/151


A.A.M., Via Dei Banchi Vecchi 39, 00186 Roma, Talia. ( 1986,GPE network)
ADAMS, ORVAL W., Chairman of the Board, Zion First National Bank, Salt Lake City, Utah. ( (Many
years back. Quoted by T. Macklin, in Gold, Keystone to Confidence, p. 24.)
ALL HOBBIES CLUB, see Hoffman, L.
ALPEROVITZ, GAR, Dr., introduced an Act, "Community Self-Determination Act", (S 3875), that
proposed "the establishment of a banking system to serve local community operations". Mentioned
in an old issue of GREEN REVOLUTION.
ALTERNATIVE BOOKSHOP, THE, 3 Langley Court, Covent Garden, London WC2E 9YY, Tel. 01-240-1804.
Specializes in libertarian books, new and second-hand, on all subjects. Open 11am to 6pm, Monday
to Saturday. Man. Chris R. Tame, Ass. Manager Brian Micklethwait. (1986)
ALTERNATIVE FUND FEDERAL CREDIT UNION, 102 West State Street, Ithaca, N.Y., 14850, 607/273-4611.
Ithaca People's Yellow Pages, 75 cents.) Not-for-profit cooperative financial institution,
espousing community self-reliance. Makes loans for "provident or productive purposes", including
business and personal loans. - Lipnack:Networking, 1982.)
ANDERSON, ROY, Allstate Plaza, Northbrook, Il 60 062. (GPE network, 1986)
ANNALS OF PUBLIC AND COOPERATIVE ECONOMY, Dir. Prof. Paul Lambert, 45, quai de Rome, Liege, Belgium.
( Address many years old. This is the continuation of the Annals by Edgard Milhaud, that appeared
in English, German and French. Perhaps the back issues dealing with monetary freedom and barter
exchanges can still be sighted there or at their new address - if they have moved, if they do
still exist. Photocopies? )
ARTINGSTALL, DERYCK, 47 Shipston Rd., Stratford-on-Avon, Warwicks CV37 7Nl. (1985. Worked out
a scheme for a Stratford Town Council to finance a new community hall by issuing local currency
in the form of Council-backed bonds. - Turning Point. To finance public expenditures via bonds
isn't exactly new. To attempt to finance capital goods directly by note issues amounts to a
repetition of an ancient mistake. Have the issues sufficient rate payment foundation? JZ.)
ASSOCIATION FOR GOOD GOVERNMENT, THE, 143 Lawson St., Redfern, N.S.W. 2016. Ed. R. Giles, Tel.
74 8815, Sec. S. Gilchrist, Tel. 419 3632. (1986. Publishes not only "single tax" notions but,
occasionally, also an article on monetary freedom. )
AUDIRAC, GRISELLE, Mr., 628 Co. Country Club, Coyoacan, CP 04 220, DF Mexico. (GPE network, 1986)
AUGUSTSSON, JOHANNES, see N.A.C.
BAKER, ROBERT P., Rte 1, Wentworth, Missouri 64 873. (Address is many yeas old. Former PP subscr.,
to PP 22.)
BARLOW, RICHARD, 6800 So Lagrange Blvd., La Grange, I.. 60 525. ( Address is many years old. Monetary
reformer according to Mildred Loomis. )
BARTER PROJECT, 1214 16th Street, N.W., Washington, DC 20036, tel 202/467-5560. ( Information
exchange and technical assistance to local groups. - Lipnack, Networking, 1982. )
BECKERATH, ULRICH von, deceased. All remaining papers, notes and drafts are wanted by LMP for
microfiching. Those who help me getting my collection more complete can ask me for any of his
writings, on microfiche, that I have aready filmed.
BEERWINKLE, MARSHALL, 11624 Rogue Way, Dallas, Texa 75 218, USA. ( Last mailing PP 18.)
BELTRAN, LUCAS, Dr., Prof., Catedratico de Economia Politica, Av. Concha Espina, 10, E.-Madrid
- 16, Spain. (Gerding, 1980.)
BERGSTROM, SOREN, Idoborg, S-100 05 Stockholm, Sweden. (GPE network, 1986)
BORSODI, RALPH, Dr., deceased. His remaining papers, e.g. on the 17 Problems of Living, of which
the book issue offered only a fraction, and on the International Independence Institute, remain
to be made accessible, at least via microfiche.
BOYD, CLAUD A., Jr., M.D., 1509 Anthony Rd., Augusta, Georgia 30904. (1982, orderd 2x PP 19A.)
BOYD, WILLIAM B., Pres. of Chapin & Bangs Co., Bridgeport, Connecticut, USA. ( For "sound money"
in The Freeman, March 1968, p. 159. He wrote a paper on "Gold", written for 15 year old boys in
Form III of Fairfield Country Day School, back in 1968. )
BRADEN, DAVID, 14020 W 32 nd, Golden, Colo. 80 401, USA. (GPE Network, 1986)
BRAUN, CONRAD JULES, Gold Standard Corporation, 1127-1131 (1129) West 41 St., Kansas City, Mo.
64 111. (1980 he put out 1/10 oz. Adam Smith gold coins.)
BRAY, RICHARD A., was a monetary freedom advocate associated with Innovator. Current address,
if he is still alive, unknown.
BROWN, PAMELA, Auburn University, Dept. of Economics, Alabama, 36 849, U.S.A. ( 1982.)
BUCHANAN, JAMES M., Dr., Prof., Virginia Polytechnic Institute and State University, Blackburg,
Virginia 24 061, U.S.A. (Gerding, 1980.)
BUDD, Christopher.J., New Economy Institute, Hoathly Hill, West Hoathly, West Sussex RH19 4PN,
U.K. (1986, GPE network Another 1986 GPE network address: Johanus Academy, Hoathly Hill, West
Hoathly, West Sussex, RH19 4PN, U.K. - Take your pick.)
BULL, WENDAL. ( Used to live at the Celo Community, Rte 4,Brunsville, N.C., USA. Was associated
with the School of Living and interested in monetary freedom at the time of PP 9-11.)
BVIVIDS, ELSEBETH, Ms., Box 32 Nimbim, N.S.W. 2480, Australia. ( 1986 GPE network)
BURTON, JOHN, gave an address at a one day seminar on monetary freedom, in London, 9.5.1981,
Imperial Hotel.
CARNAGHAN, ROBERT, 22 Wentworth Close, Watford, Herts, U.K., Tel. Watford Herts 41 548. (1984.
Has quite a collection of monetary freedom books. Chairman of Personal Rights Association, whatever
is left of this group around Meulen and his The Individualist.)
CENTER FOR FINANCIAL FREEDOM, 105 W 4th St., Cincinnati, OH 45 202. ( 1979, ass. with Nat. Com.
for Monet. Reform. )
CHALCEDON, P.O. Box 158 Vallecio, Cal. 95 251, U.S.A. (1986)
CHISMAN, MARGRET, The Bungalow, Nr The Station, Tring, Herts HP23 5QX. (1986 LGPE network)
CHOICE-IN-CURRENCY COMMISSION, 325 Pennsylvania Ave., S.E., Washington, DC 20003. (1981)
CHRISTENSEN, ULF, 26 alle, Oslo, Norway. ( Monetary Reformer, according to M. Loomis, around 1967!
Once a monetary reformer, always a monetary reformer - as long as one lives. Well, in most instances.
)
CLARK, RICHARD, 1239 (1339?) - B, Rose, Berkley CA 94 702, CA, USA. (1986 GPE network)
CLUSTER, MIKE, 4071 W 130th St. # F, Hawthorne, CA 90250. (1986 GPE network)
COMMERCIAL AND FINANCIAL CHRONICLE, THE. ( Was many years ago published at 25 Park Place, N.Y.
100017. It used to print some articles by Robert de Fremery, criticizing dishonesty and risks
involved in certain practices of deposit banking. )
COMMITTEE TO ESTABLISH THE GOLD STANDARD, Box 43 310, Tucson, AZ 85 733, HARD MONEY NEWS, ( 1986)
COMMUNITY DEVELOPMENT FUND, 639 Mass. Ave., Cambridge Mass. ( Put out Ralph Borsodi's "Inflation
is stealing: Let's Stop it" - describing experiments with commodity-backed currency, called
CONSTANTS, and how to organize community banks to issue non-inflationary currency." -Green
Revolution, June 1978.)
CONOVER, PHILIP, Galeana 25,CP 01090, Mexico, DF Mexico. (1986, GPE network)
CONSTANTACATOS, MARINEROS, 17 Sina Street, Athens, Greece. ( The April 1963 Individualist of Meulen
described him as a money reformer who wanted to adjust the money supply according to the populaton.
Imagine that suddenly all families would choose to have 6 children. The women would work less
- outside the house. The production of goods and services on the market would go down. But according
to this "system", more purchasing power would be provided. I would almost bet, nevertheless, that
someone, somewhere, is advocating this kind of "system" right now. All faulty propoals ought also
to be registered, together with facts and arguments disproving them. )
COOLEY, OSCAR W., Ass. Prof. of economics, Ohio Northern University, Ohio, USA. ( Fall 1966 he
wrote on "Freedom and the Gold Standard" in Rampart Journal. Also, in The Standard, Feb. 1963,
Lawrence Kansas : "Private Money - Economic Stability." )
COUGHLIN, MICHAEL E., editor of THE DANDELION, 1985 Selby Ave., St. Paul, Minnesota 55 104.(1985)
CURZON, GERARD, Dr., Prof., Institut Universitaire de Hautes Etudes Internationales, 132, Rue
de Lausanne, CH-1211 Geneve 21, Switzerland. (Gerding, 1980.)
CURZON PRICE, VICTORIA, Dr., Professor am Institte Universitaere d'Etudes Europeennes, Villa
Moynier, 122, Rue de Lausanne, CH-1211 Geneve 21, Switzerland. (Gerding, 180.)
DAHLGREEN, C., Box 267, Oak Park, Il. 60303, USA. (1986, GPE network)
DARLAND, LLOYD A. formerly Brenda Lane, Aberdeen but had moved by 1983. Author of a 26pp brochure:
The Emperor's Clothes Cost Twenty Dollars and issuer of his own "gold coin certificates". The
2nd. ed., 1980, had 39 pp. PP 288.
DeFONSEKA, CHANDRA, Mr., "Lok Niti", Padmalaya, Welimada Rd., Bandarawesa, Sri Lanka. (GPE
network)
DeGARIS, L.G., "Sarnia", 266 Latrobe Terrace, P.O. Box 59, Geelong, Victoria, Australia. ( A money
reformer, many years ago, related to Social Credit, who developed his "own" labour value money
system and sent me some literature after PP 6. There may be hundredthousands such monetary
reformers. Later editions of this compilation, if there is sufficient feedback to make them
possible, will perhaps only list those who here and now advocate clearly a considerable degree
of monetary freedom, whatever their personal preferences might be under liberty in monetary
matters. J.Z.)
DEJAN INSTITUTE, Joseph De Jan. ( Ca. 1970, pamphlet : A Challenge to Modern Alchemists. Still
active? "Devil Theory", p. 10, against money monopoly, p. 14, against legal tender.)
DEVASIA, SEBASTIAN, Dr., Winterswijkerstr. 16, D 4290 Bocholt, West Germany. (GPE network, 1986)
DeWEESE, Jim & Cynde, RR # 2, Butler, OH 44 822, USA. (1986, GPE network)
DIETZE, GOTTFRIED, Dr., Prof., The Johns Hopkins University, Baltimore, Maryland 21 218, USA.
(Gerding, 1980.)
DIEUDONNE, MARCEL, author of pamphlet "Le neant monetaire", 16pp, published 1965 by Marcel
Renoulet's "Les Editions de L'Homme Libre", 11 reue de la Resistance, Saint-Etienne, Loire, France.
Supposed to contain some free banking ideas but my French was insufficient whatever to understand
whatever little I have seen of his writings. Will someone fluent in French please check him out,
or his remaining writings, for monetar freedom interests?
DOWE, W.A., 74 Dennis St., Lakemba, N.S.W. 2195, Australia, tel. 759 1120. (1980. Georgist, who
has occasionally written on monetary freedom in "Good Government".
DURELL, EDWARD, Box 586 Berryville, VA 22611. ( Southern Libertarian Messenger, 3/78, reported
him as having a couple of pamphlets on the US gold reserves at Ft. Knox and whether they would
be still there. Personally, I would rather have gold coins and bullion in the hands of individual
people than in the safes of any government and private banks, where they are not objectively
necessary to make gold clearing and gold accounting possible. J.Z.)
ECONOMISTS' NATIONAL COMMITTEE ON MONETARY POLICY, 79 Madison Ave., New York, N.Y. 10016. (
Organized November 1933. After WW II, it published "Monetary Notes", ed. by Walter E. Spahr.
Sennholz and Watts were members, Rittershausen a foreign correspondent. I do not know whether
it still exists and publishes and under what address. For old-fashioned or somewhat improved gold
standard, not for gold clearing standard.)
EKINS, P., Mr., see TOES.
ELLIS, Bill, TRANET, Box 567, Rangeley MA 04 970, USA. (1986, GPE network)
ENDEAVOUR AGENCY NEWS, THE, published by Mrs S.M. Adams, 34 Parkstone, Poole, Dorset, England,
BH14-9EN. (Back in 1969! Arranged for the exchange of ads and stamps and other collectors' items
without money.)
ESTEVA, GUSTAVO, Libreria de Disparate, Cordobanes # 24, San Jose Insurgentes, Mexico DF Mexico.
(GPE network, 1986)
ETHERDEN, PETER, 4 Brattle St., # 306, Cambridge, MA 02138,USA. (1986, GPE network)
FELDER, A. RICE, 5202 Wilson Blvd, Columbia, South Carolina 29203. ( Late sixties. Was manager
of Congaree Interchange, a Proudhon-type bank. Seeing that people become interested in monetary
freedom usually only later in life, half to 3/4 of those listed here may already be buried. However,
something of their experiences and teachings may still be rescued and serve some others, at least
to avoid their mistakes. The CAMP FORNANCE NEWSLETTER, Sept.-Oct. 1967, ed. by Felder, had the
following note : "The editor is working on plans for a cooperative sharing system to facilitate
the free interchange of goods, services and money on a 'credit' basis with no indebtedness involved.
The possibility of a store operated on this principle in the neighborhood is being considered.
He needs personnel to help with this work, especially someone experienced in recordkeeping." Well,
at least the latter aspect is now facilitated via programmed computers, for those who can handle
them. )
FIRST CITIZEN BANK, Trust Dept., Box 3029, Greenville, SC 29602. ( Offered, back in 1979,
self-directed retirement plans with investments in gold or other real wealth.)
FOUNDATION FOR ECONOMIC EDUCATION, Irvington-on-Hudson, New York, N.Y. 10 533. ( 1986. "The
Freeman" and long booklist, of which a number favour monetary freedom. )
FREE FOR ALL, 1623 Granville Avenue, #11, Los Angeles, CA 90025, 213/826-9665. ( Barter exchange.
Lipnack, Networking, 1982.)
FREMERY, ROBERT de, Pres. Onox, Inc., San Francisco, Calif. (2 decades ago, he used o write articles
critical of dishonest and risky practices of deposit bankin, in The Commercial and Financial
CHRONICLE, N.Y.)
FRIEDMAN, MILTON, Dr., Prof., Hoover Institutiion on War, Revolution and Peace, Stanford,
California 94 305, U.S.A. (Gerding, 1980 )
FRIENDS OF THE TREES, Star Route Box 82-D, Oroville, WA 98 844. ( Mail order seed business and
tree-seed exchange. Also information switchpoint for annual Northeast Washington Barter Fairs.
Lipnack, Networking, 1982.)
FRY, MICHEL, 13 Rothesay Place, Edingurg EH3 7HQ, tel. 031-225 4352. (1985. Freenetwork, free
money, history of free banking.)
GALE, LARRY S. ( Gardena, CA. Last contact with PP 15.)
GEIGER, HENRY, MANAS, Box 32 112 El Sereno Station, Los Angeles, Calif. 90032. (GPE network, 1986)
GIVE AND TAKE BARTER CENTER, 135 Church Street, Burlington, VT 05 401, 802/864-0449. Lipnack,
Networking, 1982.)
GOLD AND SILVER BULLETIN, P.O. Box 13406, Houston 19, Texas 77019. ( Edited and published by Lloyd
L. Parker, many years ago.)
GOLD BUG, THE, 85, 4th Ave., # 6M, New York, N.Y. 10003. ( 1977, ed. by Howard Katz. Either before
or later at Topango, Calif.)
GOLD LETTER, Tony Henfrey's, P.O. Box 5577, Durban 4000, Republic of South Africa. (Year? Only
financial newsletter?)
GOLD NEWSLETTER, 8422 Oak St., New Orleans, LA 70 118, USA. (1980. National Committee for Monetary
Reform. Formerly National Committee to Legalize Gold.)
GOLD STANDARD CORPORATION, Suite B 17, 1127-1131 West 41st St., Kansas City, Missouri 64 111.
( 1977. "Use Gold in Daily Business Transactions.")
GOOD GOVERNMENT, publication of The Association for Good Government, see Association....
GOOD MONEY, Local Currency Advocate, 28 Main, Montpeler, VT, 05 602. (1985, Freenetwork)
GRASSWURZEL REVOLUTION, Rotestr. 40, 3400 Goettingen, West Germany. (1986 GPE network)
GRECO, TOM, Jr., 93 Spruce Ave., Rochester, N.Y. 14 611, USA. (GPE network)
GREM, JUNE, Mrs., P.O. Box 385, Oak Park, Illinois 60303. ( 1971. Saw adv. in the Libertarian
Connection and paid for Peace Plans 9-11.)
H., John, 5960 Crstview, Paradise, Calif. 95 969. (Free banking article in Libertarian Connection,
24.Jan. 1972, p. 21.)
GROENER, HELMUT, Dr., Prof. an der Universitaet Bayreuth, Kanalstr. 3, D-8589 Bayreuth, West
Germany. (Gerding, 1980)
HAENKE, DAVID, Box 3, Brixey, Missouri 65 618, U.S.A. (1986 GPE network)
HAGUE, Paul, Paragonian Institte, 47 University Rd., London SW 19 2BU, UK. (GPE network, 1986)
HAMM, WALTER, Dr., Prof. an der Universitaet Marburg, Universitaetsstrasse 7, D-3550 Marburg,
West-Germany. (Gerding, 1980.)
HANSCH, ERICH, ERICK? S., 203, N.E. 113th. Ave., Portland, Ore 97 220, or Taxpayer Digest, P.O.
Box 03 066, Portland, Oregon, 97 203. (Way Out, Jan/Feb. 1966. Was associated with the International
Independence Institute in Exeter.)
HARD MONEY NEWS, Committee to Establish the Gold Standard, P.O. Box 43 310, Tucson AZ 85 733.
(1986 Stumm.)
HARGIS, ANTHONY, FREE MARKET ADVERTISER, 1515 W, MacArthur Blvd., # 19, Costa Mesa, CA 92 626.
(1986)
HARMS, TRRACY B., APE : Anarchist Propaganda Ebullition, P.O. Box 7073, Boulder, Co, 80 306. (1986)
HART, DAVID, Flat D, 14 A King's Parade, Cambridge, CB2 1ST, tel 0223-312628, or Box 158, King's
College, Cambridge. (1984)
HARTMAN, ROBERT S., Apardo 422, Cuernavac, Mor., Mexico. ( Rec. by Prof. Katz. I lost touch after
PP 15. )
HARVEY, ARTHUR. ( Used to publish The Greenleaf. For monetary freedom according to A Way Out.
My last mailing, to Raymond, N.H., New England, was with PP 19.)
HAYEK, FRIEDRICH A. von, Freiburg University, Kollegiengebaeude II., III. Stock. Urachstr. 7,
Freiburg, West Germany, tel. 77216. (1984. However, there is very little time that he has to read
even what has been written in response to his own monetary freedom articles. He is intent on
finishing his life's major planned works. Give him the chance.)
HAZLITT, HENRY, could be contacted through FEE. ( I found best what he has written about a free
market approach to currency reform : allowing the sound alternatives to take over. I wish I could
put his THE FREEMAN LIBRARY, 1956, Van Nostrand, long o.o.p., onto microfiche, since his hopes
to get it reprinted did not materialize. )
HEALY, JOHN. ( Forest, Va. Last contact with PP 19.)
HEMMENWAY, D., Mr., TIPSY, Box 202, Orange, MA 01 364 USA. (GPE network, 1986)
HENDERSON, HAZEL, Box 14 997, Gainesville, FL 32 604. (GPE network, 1986)
HILGEMAIER, MARIO, Im Hagenfeld 96, 4400 Munster, West Germany. (GPE network, 1986)
HOBBS, DAVID, 134 Cambridge St., West Leederville, Perth W.A., 6007, Australia.
HOFFMAN, D.P. ( 1965, money reformer according to M. Loomis. At time of pp 11 at 58 Park Rd.,
Burlingame, California.)
HOFFMAN, L., 464, Spadina Road, Apt. 18, Toronto 10, Canada : "All Hobbies Club p Members worldwide,
waiting to exchange with you. Join to-day and make worthwhile contacts with active collectors.
Fee $ 1.00 or 12 IRCs or 200 large size stamps. (1969 address! Similar clubs do probably exist
today and monetary freedom advocates, intending to experiment with some pilot scheme exchanges
between themselves, could probably learn something on running them from such attempts. These did,
naturally, have the sideline interest of collecting many small fees, stamps and of spreading
advertisements. So what? J.Z.)
HOLBACH, HANS-PETER, Fadenstrasse 39, CH 6300 Zug, Switzerland. ( 1983. "Geldbrief" Artikel in
DIAGNOSEN, Feb. 183, in der er den Staatsbankrott erwartet. FB?)
HOPMAN, Conrad S., B.P. 225, Noumea, New Caledonia, South Pacific. ( 1986. CCC computerized
exchange system. )
HORN, NORBERT, Dr., Prof. an der Universitaet Bielefeld, Fakultaet fuer Rechtswissenschaft,
Postfach 8640, D-4800 Bielefeld, West-Germany. (Gerding, 1980)
HORRIGAN, JACK ALLEN. ( I lost contact with him with PP 18. Last at Denver. If he is still alive
and active then his address is wanted. )
HOWARD, DAVID K., 462 Stow Ave., No. 4, Oakland, CA 94 606. ( X years ago. Gold miner for gold
as currency. )
In his long section on money, pp 191-208, he says little on money itself but much on property,
after stating that money is property. However, his laissez faire ideas do not go far. For instance,
on p. 208 he states:
INDEPENDENT ARBITRAGE INTERNATIONAL. ( 1973. "INDEPENDENT ARRBITRAGE INTERNATIONAL is an
experiment in a new form of currency called a "Constant", based on the ideas of Dr. Ralph Borsodi.
Borsodi is an economist and author (Wealth and Illth, Flight frm the City) and founder of the
School of Living and its magazine, The Green Revolution. A classical capitalist influenced by
Henry George's concepts of land tenure, Dr. Borsodi has developed the basis of an international
"money: made inflation-proof by backing from an aggregate of 30 staple commodities whose value
remains "constant" because of their importance to the world markt. "The Constant represents a
certain amount of these commodities and however much another currency can buy of these staples
[ the prices of these commodities in those currencies ] determines the purchasing power of that
currency, and its exchange value with the Constant, which remains constant, representing a given
amount of these commodities while other currencies fluctuate around it." A monthly computerized
survey of the commodities is made, allowing for the rise or fall in price of any one commodity
and permitting the regular re-evaluation of the purchasing power of any one currency on the world
market. Membership in the organization is open to any who agree with its purpose. For more
information write IAI, Exeter, New Hammpshire 03833. - >From a 1973 clipping. )
INDIAN LIBERTARIAN, , Arya Bhuvan, 1st. Fl., Sandhurst Rd., Bombay 4, India, published by the
Libertarian Social Institute. For a number of years, after World War II, it kept the mutualist
free banking school in print. The few years of it that I have seen included few of any monetary
freedom articles. The best articles I found in it where reprints from The Freeman, otherwise they
seemed merely liberal nationalists who wanted English as a common language for India. I do not
know whether the journal still exists.
INSTITUTE FOR MONETARY FREEDOM, see Jon Matonis.
INSTITUTE FOR MONETARY RESEARCH, 1010 Vermont Ave., N.W., Washington DC 20005. ( 1980.
"Viewpoints". Published three monographs, including THE DECAY OF MONEY; SILVER AS MONEY and
sponsored the publication of the book length historical review FIFTY YEARS OF MANAGED MONEY. Also
distributes "Money and Man" by Elgin Groseclose. In 1976 its most recent publication was Elgin
Groseclose's THE SILKEN METAL - Silver: Past, Present, Prospective. By the way, I would like the
prospectus of all such institutes for inclusion at least in the fiched section of future newsletters
on monetary freedom, and their literature lists and lists of current projects, if any. )
INSTITUTE FOR SOCIAL INVENTIONS, THE, JOURNAL, 24 Abercorn Place, London NW8 9XP, Tel. 01-229
7253. ( Reviewed, e.g. in Nr. 5 of this journal, 2 monetary freedom proposals at least, those
by Hopman and Turnbull.)
INSTITUTE ON MONEY AND INFLATION, 314 E. Capitol St., Suite B-1, Washington, DC 20002. (1980 )
INTEGRAL, Paseo Maragall 371, Barcelona 32, Espana. (GPE network, 1986)
INTERCHANGE, see Roberts, M.
ISSING, OTMAR, Dr., Prof. and der Universitaet Wuerzburg, Sanderring 2, D 8700 Wuerzburg, West
Germany. (Gerding, 1980.)
JACOBS, JANE, 69 Albany Ave., Toronto, Ontario, Canada. (1986, GPE network)
JOHANNSEN, OSCAR B., Robert Schalkenbach Foundation, 5 East 44th St., New York, N.Y. 10025. (1981.
I asked him at least twice in vain to put together all his monetary freedom writings. He has no
yet got around to this. )
KAPACO NOTES, published by K. Paucitis, many years ago. Advertised, published and continued Dr.
Boardman's work. Both stood for monetary freedom. I would like to see all of this material available
on microfiche but have lost contact with Mr. Paucitis many years ago. Address used to be : Box
265, Camp Verde, Arizona. )
KEARSE, WARREN G., 2136 Bock Drive, Alexandria, Va.(1983. When Mildred Loomis wrote to me that
he was another mutualist money reformer, I was very interested. When I finally received his book
:"The War Against Honesty" and some leaflets, I was disappointed and put it aside for 3 years
as just another of hundreds of Social Credit writer. However, for this address compilation, I
have quickly gone through his book and his leaflets again and decided that I may even film them,
although the money sections are disappointing to me. He is opposed to legal tender money and favours
constitutional currency: gold and silver coins. Apart from this, in the book, he suggests a gift
exchange facilitated by receipts " on the basis of brotherly concern and the fatherhood of God."
(p 208).His Social Credit interest is indicated by the attached address list, his chapter 7 and
remarks, like on page 4 :"The circulating media which substitute for money come from two sources,
governments and banks". He opposes "bank emitted credit", public debt, socialism, communism and
favours private property, gun ownership, private arbitration, Bible Christianity. In a separate
leaflet he gives some details of a "Time Exchange Agreement" that wants to use EUs ( exchange
units ) of one hour of labour or services. "...by applying these principles, individuals or
groups may withdraw some or all their support from the competitive scramble which has spread
suffering and chaos around the globe." In other words, he does not distinguish between the scramble
for an exclusive currency, upon which one depends and a free currency which one could issue or
accept alternatively. He also opposes "usury" and imagines that interest rates feed inflation.
Furthermore, he favours rural intentional communities, for which he drafted a constitution in
1978. Most interesting to me was his draft of an individualist declaration of independence and
his opposition to taxation and his stand on p. 228: "The first, and perhaps the most crucial of
all, is the prevention of a third world war." His appended short address list, with some comments,
offers addresses of Patriot groups, Constitutionalists, Tax Resisters, Libertarians, Right to
Arms advocates, Social Credit people, Anti-Zionists, Christians and Money Reformers. All together,
a very mixed bag, offered then for 2 oz of fine silver or $ 7.95. Sorry, but I feel unable to
recommend his monetary ideas. I am sending him now, all too belatedly and with apologies, a set
of the Spooner microfiche, in return for his book, pamphlets and non-exclusive and revocable
reproduction permission. I mention him here at this length only because of this excessive delay.
KEMP, ARTHUR, The Charles M. Stone Prof. of Money and Credit, Claremont Men's College, Claremont,
Cal. ( 1980. Advisor of IHS.)
KERN, KEN, Box 817, North Fork, CA 93 643, USA. (1986, GPE network)
KERPEN, ERNEST, Gartland Hotel, Apt. 229, 909 Geary Street, San Francisco, Cal. 94 109. ( Last
mailing was PP 20/21.)
KING CITY SENIOR BARTER BANK, 400 King City Courthouse, Seattle, WA 98 104, 206/344-7394. (Lipnack,
Networking, 1982.)
KING, RICHARD, c/o 9 Shakespeare Grove, Hawthorne, Vic. 3122. (1980 mailing address only. Not
currently active in libertarian matters until he has finally established himself in business,
after x years of libertarian activism. )
KINGEN, FRANK, 16215 Sylvester Rd. SW, Seattle, WA 98 166, USA. (GPE network, 1986. Not a monetary
freedom advocate in my opinion. J.Z.)
KINNEY, MARK, A.P. # 20-686, Mexico C.P. 01 090 DF Mexico. (1986. GPE Network, Greening the Planet
Economically. Favours the Letsystem and Hopman's CCC. Favours money as mere information, opposed
to it in any material form. Generalizing philosophical approach.)
KIRZNER, ISRAEL M., Dr., Prof., New York University, 538 Tisch Hall, Washington Square, New York,
N.Y. 10003, U.S.A. (Gerding, 1980)
KUNZE, JOHN, 160 Sheldrake Dr., Paoli, Pa 19 301, USA. (1980)
KURJO, SABINE, 950 Martinsburg Rd., Mt. Vernon, OH 43 050, USA. (GPE network, 1986)
LABOUR GIFT PLAN, THE, defunct, at least at the old address : #2207, 150 Nassau St., New York
City. ( Was mentioned in Go ahead and Live, by Mildred Loomis, p. 169. Since such plans are born
again and again, one might as well try to get all the old ones and their defects and failures
on record.)
LACHMANN, LUDWIG M., Dr., Prof., University of Witwaterstrand, 40 Kerry Road, Parkview,
Johannesburg 2193, Republic of South Africa. (Gerding, 1980)
LAEMMEL, ALBERT, 69 Mannheim K 1, 13, West Germany. ( Some money reformer from whom I got some
literature many years ago. It did not end up in my monetary freedom section but then I should
perhaps be a bit more tolerant. What they usually, want, even if their final aim, if fully realized,
would be one of monetary despotism, is a chance to get their system practised by those who want
it now. Given that chance, most would fail anyhow - but would serve at least as lessons to others
and between them they would constitute competing monetary systems even though that might not be
the intention of most of these reformers.)
LAISSEZ FAIRE BOOKS, 532 Broadway, New York, N.Y.10012, (212) 925-8992. (1986. I bought a number
of reprints of monetary freedom books from them.)
LANDSMAN COMMUNITY SERVICES Ltd., see LINTON, MICHAEL.
LANG, ROGER, 857 Clarewood Ct., Concord, CA 94 518, USA. (GPE network, 1986)
LeFEVRE, ROBERT. He died recently. Is anyone attempting to put out a collection of all his writings
that goes beyond the incomplete one that I have filmed so far? I feel certain that he has written
quite a bit on money, too, beyond the short article on "Whale Money" that I once reproduced, back
in Peace Plans No. 12 and a pamphlet or two. )
LENEL, HANS OTTO, Dr., Prof., Universitaet Mainz, Haus Recht und Wirtschaft, D-6500 Mainz, West
Germany. (Gerding, 1980)
LETSYSTEM, see LINTON, MICHAEL.
LEWIS, RUSSELL, c/o Churchill Press Ltd., 2 Cecil Court, London Rd., Enfield, Middlesex, UK. (Last
contact in 1976, after I found out that he had proposed something similar to the PP 19C proposal
in the book "1985".)
LIBERTARIAN SOCIALIST INSTITUTE, Arya Bhuvan, Sandhurst Rd. (West), Bombay 4.( Associated with
The Indian Libertarian. Used to reprint writings of the Mutualist school. I lost contact with
them many years ago.)
LIBERTY COIN SERVICE, 300 Frandor Ave., Lansing, Michigan 48 912. (1978. "Don't trust the
government! Your money is your life. Protect your assets from inflation with gold and silver
coins.")
LINDFIELD MICHAEL, Findhorn Foundation, The Park Forres (Forest?) IV36 OTZ, Scotland, U.K. (GPE
network, 1986)
LINTON, MICHAEL, Landsman Community Services, #304, 576 England Ave., Courtenay, B.C. V9N 5M7,
Canada. ( 1986, Letsystem, a computerized "green dollar" exchange system.)
LOOMIS, MILDRED, School of Living, RD 7, Box 388A, York, Pa 17 402. (1986, GPE network.)
LOS ANGELES GOLD MARKET. See Hall
LOTVALLA, K.R., Libertarian Publishers, Arya Bhuvan, First Floor, S.V.P. Road, Bombay 400 004,
India. ( Offered Mutualist literature. Last contact 1980.)
LOVELOCK, LES, c/o 37 Byron Ave., Coulsdon, Surrey, U.K., formerly Melbourne. ( Ancient Richard
King contact. Last mailing PP 10. )
LUNCHEON VOUCHERS LTD., 22 Golden Square, London W 1. (1971. I do not know but could at best only
guess at what they do. No response when I sent them something back in 1977. )
MacCALLUM, SPENCER HEATH, Box 48, San Pedro, California 90 733.(1986). Tel. (213) 831-6269. Dir.
of THE HEATHER FOUNDATION publisher of books by Riegel, GPE Network )
MACKAY GESELLSCHAFT, c/o Kurt Zube, 7 Auwaldstr., Landwasser, 7800 Freiburg/Br., West
Germany.(1986)
MACKLIN, THEODORE, c/o Economists National Committee on Monetary Policy, 79 Madison Ave., New
York, N.Y. 10016. ( About 20 years ago.)
MAHONEY, MARTIN V., Justice of the Peace, Credit River Township, Scott County, Minnesota. ( Gave
a judgment against fiat money, reviewed in Meyer's Financial Review, ca. 20 years ago.)
MAIN STREET JOURNAL, see TUPPER SAUSSY, F.
MALAGODI, GIOVANNI, Presidente d'onore del partito liberale italiano, Minister a.D., Viale Bruno
Buozzi, I-109/A Roma, Italy. (Gerding, 1980.)
MANAS, see Henry GEIGER.
MANNING, BILL, 1113 Sauger St., New Braunfels, Texas 78130. ( Used to publish Mapka Report, ca.
20 years ago under this address. Money reformer accdg. to M. Loomis. )
MARKS, TRUE, School of Living, RD # 7, Box 388, York, PA 17 402, USA. (1986, GPE Network)
MASA, ENRIQUE, PROCESO, Fresas 13,Col. del Valle, Mexico 12, DF Mexico. (1986, GPE network)
MATONIS, JON, 532 Hinman Ave., Suite 2 W, Evanston, IL 60 202. (1986) Established THE INSTITUTE
FOR MONETARY FREEDOM and wrote : THE POLITICAL APPROPRIATION OF THE MONETARY UNIT, 1985 and ANARCHY
AND MONEY, in 1986. Both may appear soon in the Peace Plans series.
MARTIN, JAMES J., Dr., Box 262, Palmer Lake, Colorado 80 133. ( Last mailing 1980.)
MARTIN, PAUL C., author of "Sachwert schlaegt Geldwert". Could probable be contacted through his
publisher, Wirtschaftsverlag Langen-Mueller/Herbig. (1983)
MAXWELL, JOCELYN. Last contact was in Brisbane, several years ago. May be in the U.K. now. Viv
Forbes has probably got her on his mailing list.
McBRIDE, ROGER, on page 31 of his book "A New Dawn", he speaks up against central banking. Might
be reached through his publisher.
MCGIVERN, THOMAS J., c/o ALA, P.O. Box 91, Berkeley, CA 94 701. (Last mailing was PP 29.)
MEGALLI, THEO, Pfingstrosenstr. 60/III-3-150, D 8000 Muenchen 70, West Germany. (1986). Reads
and writes English, Esperanto and probably French, too and has helped in getting monetary freedom
titles on fiche by searching for and copying titles.
MENZIES, JOHN, P.O. Box 2168 Tauranga Bay of Plenty, N.I., New Zealand. ( Rec. by R. King. Last
mailing was PP 11.)
MEULEN, HENRY, deceased. All remaining letters and papers are wanted relating to monetary freedom.
He burned his own collection. Some are stuck in his remaining books in the Goldsmith Collection
in the British Library. Some are still with relatives and friends. He was wrong, I believe in
presuming that all the valuable thoughts in his life-long correspondence with many freedom lovers
found their way sufficiently into THE INDIVIDUALIST. I filmed "The Individualist" 1975-1978 with
and index of all issues under Meulen's editorship and listed the issues missng in my collection
for further filmings. See this Peace Plans No. 561 issue. Free if you send me excellent copies
of missing issues.
MEYER, FRITZ W., Dr., Prof., Am Hagmaettle 3, D-7800 Freiburg-Littenweiler. (Gerding, 1980)
MEYERS' FINANCIAL REVIEW, 903 Lancaster Bldg., Calgary 2, Alberta, Canada. ( Ca. 20 years ago.
Opposed legal tender. )
MEYERS, PHILIP, Chofered del Chaco 1141, Asuncion, Paraguay. (GPE network, 1986)
MIDAS MEDALLIN GOLD SILVER COINS, 16750 Foothill Blvd., Fontana, CA. (1974. Reading areas,
seminars. Adheres to Austrian or Classical School of Economics.)
MIDDLETON, E.P., Box 336, Norfolk Island, South Pacific. (1984.)
MILLSAP, WALTER, c/o United Coop. Industries, M. Lobell, Rte. 1, Box 2150 San Marcos, Calif. 92069.
( Ca. 20 years ago named as a monetary reformer by M. Loomis.)
MISERE, Christof, Mesmerstr. 13, 5000 Koeln 80, West Germany.(1985)
MITCHELL, JOHN, Wickets, Dippenhall St., Crondall, Farnham, Surrey, U.K. ( Ca. 20 years ago, I
received a letter from him indicating that he is a Social Credit man - but tolerant towards monetary
freedom. )
MOESCHEL, WERNHARD (Bernhard?), Dr., Prof. an der Universitaet Tuebingen, Wilhelmstr. 7, D-7400
Tuebingen 1, West-Germany. (Gerding, 1980.)
MONAGHAN, R., Prof., Dept. of Communication, 205 Derby Hall, 154 North Oval Mall, Columbus OH
43 210-1360, USA. (GPE network)
MONAHAN, BRIAN J., Mr. & Mrs., Illinois. ( Innovator contact. Up to PP 15 I was in touch with
them. Both were for monetary freedom.)
MONETARY NOTES, ed. by Walter E. Spahr, published by Economists' National Committee on Monetary
Policy, 29 Madison AVe., N.Y.C. 10016. ( Ca. 20 years ago. )
MONETARY SCIENCE INSTITUTE, P.O. Box 86 Jb, Wickliffe, Ohio 44 092. (1975 : Offered a $ 5 paperback
:"The Magic of Reserve Banking...". "Learn to finance your own bank or local government with deposit
credits, Put the Federal Reserve and the IRS out of business. 'Invisible' deposit credit money
techniques are used by elite capitalists, bankers and financiers." I asked them in 1975 for
information, if not Social Credit people. I believe, I got no reply. )
MONEX INTERNATIONAL Ltd., P.O. Box 6151, Santa Barbara, CA 93111. ( Some years ago it had organized
a monetary conference.)
MOORE, FRAN, 219 Hamilton Street, Hartford, Connecticut 06 106. ( One letter, x years ago, indicated
a monetary freedom interest. Was paid up to PP 19.)
N.A.C., JOHANNES AUGUSTSSON, Vallholt 21, 300 Akranes, Iceland. (GPE network, 1986)
NASH, MANNING, Anthropology Dept., University of Chicago, 1126 E 59th St., Chicago Il 60 637,
USA. (1986, GPE network)
NATIONAL COMMITTEE FOR MONETARY REFORM, 8422 Oak St., New Orleans, LA 70 118, U.S.A. (1979)
NATIONAL COMMITTEE TO REPEAL THE FEDERAL RESERVE ACT, Box A-H, Bunker Hill, Illinois 62 014. (1976,
mentioned by Kearse. Carries on the work of the late Wickliffe Vennard, aims to sue the Federal
Reserve system and offers books about monetary injustice and a tabloid. Social Credit? )
NATIONAL CONSUMER COOPERATIVE BANK, 2001 S Street, N.W., Washington, DC 20009, 800/424-2481.
Lipnack, Networking, 1982.)
NEO-TEC BANK, Alternative Banking System, International Marketing Director Frank Ward, I & O
Publishing Co., P.O. Box 906, Boulder City, Nevada 89 005, USA. (1986. Freenetwork.)
NETZWERK FUER SELBSTVERWALTUNG, Baselerstr. 106, CH-8048, Zurich, Switzerland. (1986, GPE
network)
NETZWERK SELBSTHILFE, Im Mehringhof, Gneisenaustr. 21, 1000 Berlin, Berlin West, BRD. ( 1986 GPE
network )
NETZWERK SELBSTHILFE, W. STEINHUBER, Prokopigasse 2, A-8010 Graz, Austria. (1986 GPE network)
NEUMAN, HEINZ-PETER, 1 Berlin 33, Trabener St. 22 a. Tel. 892 1618, 882 5784. ( 1984. One of the
few Gesellians who is tolerant to the monetary freedom ideas and practices of other monetary
reformers. )
NEVADA COIN EXCHANGE, 2089 -A, El Rancho Drive, Carson City, Nevada 89 701. (That used to be a
business of Michael Oliver and may still be, although probably under another address. )
NEWBEGIN, EDITH, 47 Reeds Rd., Huyton, Liverpool L36 7SL, UK. (1986 GPE network)
NEWEY, DON, 1150 Happy Hollow, Santa Cruz, CA 95 065. (1986 GPE network)
NEW OPTIONS Inc., P.O. Box 19 324, Washington DC 20036, USA. (1986 GPE network)
NISHIYAMA, CHIAKI, Dr., Prof., Rikkyo University, Center of Modern Economics, 3-chome
Nishi-Ikebukuro, Toshima, Tokyo, Japan. (Gerding, 1980)
NORTHWOOD INSTITUTE, Midland, Michigan, USA. (That address goes back to PP 8.) Orval V. Watts
worked then Chairman of the Dept. for Social Studies. A private college dedicated to the philosophy
and practice of private enterprise. According to some hints, this college has perhaps the largest
collection of freedom books in the world.
O'BRIEN, Mrs., ca. 20 years ago recommended PP 9 to Bruce McFarlane for review. She was then at
the Department of Political Science, A.N.U., Canberra, in Bruce McFarlane's seminar.
O'MOHONEY, David, gave an address on monetary freedom at a one day seminar, London, 9.5.1981.
OLIVER, M., P.O. Box 485, Carson City, Nevada, 89 701. ( Last contact with PP 18. Mainly new country
interest. Established Phoenix Foundation. For monetary freedom in his own book, A New Constitution
for a New Country. )
OMEGA NETWORK, c/o UPEI Charlottestown, PEI, Canada CIA 4P3. (1986 GPE network)
OTHER NETWORKS, see Stan POKRAS.
PACIFIC COAST COIN EXCHANGE, 55 King W., TD Centre Box 34, Toronto, Ont. M5K 1B7. (1975, Libertarian
Option. Favoured silver investments. ) Mentioned in Libertarian Yearbook 1972.)
PAKENHAM, COMPTON C., 42 E Park St., E. Orange, N.J. 07 017. (Ordered a number of "Stop the Legal
Tender Crime", back in 1982, friend of Dave Wilber. Wants constitutional money, gold or silver.)
PAPWORTH, JOHN, ed. of THE FOURTH WORLD, 24 Abercorn Place, London NW8, UK. ( 1986, GPE network.
Money reformer according to M. Loomis.)
PARKER, LLOYD L., used to publish and edit : Gold and Silver Bulletin, P.O. Box 13 406, Houston,
Texas 77 019. (Last contact with PP 13.)
PAUCITIS, KARLIS. ( Last contact about 1975 : 7004 Highview Terrace, Hyattsville, Maryllnad 20
782. Continued the work of Dr. Boardman. )
PAULUS, PAUL, Hofacher 13, 6300 Giessen, West Germany. Tel. 0641/45 287. (1984? Fuer Geldfreiheit.)
PEACE PLANS, c/o John Zube, 7 Oxley St., Berrima, NSW 2577, Australia. All publications of the
Research Centre for Monetary and Financial Freedom appear in this series. It offers now probably
more on monetary freedom than any other libertarian publisher has ever offered. (1986)
PERARA FIFTH AVENUE, Inc., Numismatic Division, 630 Fifth Ave., N.Y. 10020. (1975. Sent me
something that induced me to keep the address under the monetary freedom addresses.)
PETERSON, DALE, HUMAN ECONOMY NEWSLETTER, Box 14, Dept. of Economics, Mankato State University,
Mankato, NN 56 001, USA. (1986, GPE network)
PETRO, SYLVESTER, Dr., Prof of Law, Baylor University, & Dir. of the Institute for Law & Plicy
Analysis, Winston, Salem, N.C. ( The Freeman, 1979. For monetary freedom according to article
:"The Perversion of Plurallism", Essays on Liberty, vol. XII.)
PICK, FRANZ, Pick's Publishing Corp, 75 West St., New York, N.Y. 10006. (1965, Pick's Currency
Yearbook. Last contact with PP 11.)
PLUMB, BUD, Box 195, Streator, Illinois, U.S. ( Last contact with PP 11.School of Living. Monetary
freedom advocate according to A Way Out. )
POIROT, PAUL L., The Foundation for Economic Education, Irvington-on-Hudson, N.Y. 10533. (1986.
For monetary freedom e.g. in Essays on Liberty, vo. XI : "The Government Is in Business".)
POKRAS, STAN, OTHER NETWORKS, Box 14 066, Philadelphia, PA 19 123, USA. ( 1986, GPE network)
POLCHOW, ROBERT W., attorney. ( Last mailing PP 12 to Meadowbrook Farm, Henderson N.C., USA. School
of Living contact.)
POPPER, KARL, Sir, F.R.S., F.B.A., Prof. Dr., The London School of Economics and Political Science,
University of London, Houghton STreet, London, WC2A 2AE, U.K. (Gerding, 1980.)
PRATT, NOEL B., Bank of Interchange, Galeana, Chihuahua, Mexico. ( At time of PP 11. Supposedly
ran interchange bank for profit. )
PRECIOUS METALS EXCHANGE, Inc., 1892 Forge St., Tucker, Georgia 30084. ( Associated with Gold
Keogh pension plan, some years ago.)
PRUIT, JOHN, Box 475 Camp Verde, Arizona. ( Last contact with PP 10.)
RATCLIFF, LYDIA, Rt. 1, Chester, Vt. 05 145, USA. (1979 M. Loomis wrote me that she might have
the full papers of the Independence Institute. )
REICHERT, WILLIAM O., Prof., Dept. of Political Science, Bowling Green Sate University, Bowling
Green, Ohio 43 403, U.S.A. (1980)
RICHARDSON III, TOM W., 445 NO Garfield, Apt. 49, Pasadena, California 91106. (Last contact with
PP 11.)
RIGHT LIVELIHOOD FOUNDATION, No. 2, Cambridge Gate, Regents Park, London NW1 4JN, U.K. (GPE
network, 186)
RITTERSHAUSEN, HEINRICH, Prof. Dr., deceased. His papers are supposed to have been deposited at
the University of Cologne. In 1980 I perused them but all too hurriedly. They are foll of unpublished
manuscripts and notes on monetary freedom which ought to be recovered. My photocopying effort,
although extensive, was inclomplete. At least one local collaborator would be needed, to reproduce
all of this material at least on microfiche. Among his heirs, as far as I could find out, there
was no one interested in them.
ROBERTS, MILES T., Rte 2, Villisca, Iowa, USA. ( Used to be organizer of "Interchange", at time
of Peace Plans 9-11.)
ROBERTSON, JAMES, see TURNING POINT.
ROSEMAN, HERBERT C., N.Y. ( I lost contact with him may years ago. He was involved with the Labadie
Collection and Revisionist Press. )
ROTHBARD, MURRAY N., Brooklyn Politechnic Institute, Brooklyn, N.Y. ( 1986, as far as I know.
It seems hardly necessary to list his many contributions here. His clash with the mutualist school
of money reformers, "the Spooner-Tucker doctrine", has recently been filmed in this series.)
ROWLEY, CHARLES K., Dr., Prof., The University of Newcastle upon Tyne, Department of Economics,
Newcastle upon Tyne NE1 7RU, U.K. (Gerding, 1980)
RUPP, HANS HEINRICH, Dr., Prof. an der Universitaet Mainz, Am Marienpfad 29, D-6500 Mainz 1, West
Germany. (Gerding, 1980.)
RUSHDOONY, ROUSAS J., c/o CHALCEDON, P.O. Box 158, Vallecito, Cal, 95 251. (1986Upon his
recommendation my booklet against legal tender sold out in the printed version. Author of THE
ROOTS OF INFLATION & POLITICS OF GUILT AND PITY. Also sent me 2 interesting copies of THE JOURNAL
OF CHRISTIAN RECONSTRUCTION but I still do not know whether I would be permitted to microfiche
them. It contains articles by North, Kemmerer, Rothbard, Sennholz et al.)
RUSSELL, PAULINE, 53 Crane Park Rd., Surbiton, Surrey, U.K. (1984. She said to me in 1984 that
she would be prepared to search for some monetary freedom titles if provided with a search list.
If I supply her with my 54 pages, that might really strain our friendship. )
RUZ, ALBERTO, Huehuecoyotl, AP 111 Tepoztlan, Morelos, Mexico. (1986, GPE network)
SABEL, BILL, SUNFLOWER FARM, Rt. # 1, Box 90, Amesville, OH 45 711, USA. (1986, GPE network)
SAGEHORN, ROBERT, P.O. Box 366, Sun City, Cal. 92 381. or Western World Review Institute, P.O.
Box 806, Chino, CA 91 708. (1986.)
SALIN, PASCAL, address unknown but wanted, since his book or article " Currency Competition &
Monetary Union", The Hague, 1984), mentioned by Michael Fry, is supposed to contain an excellent
bibliography of free banking.
SALVA, JEFF & ERIN, 9221 Green Valley Rd., Rt. # 2, Mount Vernon, OH 43 050, USA. (1986, GPE network)
SARGENT, GLEN, 1/75 Bay St., Brighton, Vic. 3186, Australia. ( !983 contact with Adam Smith Club.
Seems to be associated with "Money Manager" which is probably nothing but another financial
newsletter. But someone ought to check him out regarding monetary freedom. I sent him my August
83 literature list and received no reply - but this is no proof, either way.)
SCHMIDTCHEN, DIETER, Dr., Prof. an der Universitaet des Saarlandes, Spichererbergstrasse 21,
D-6600 Saarbruecken, West Germany. (Gerding, 1980)
SCHUELLER, ALFRED, Dr., Prof. an der Universitaet Marburg, Forschungsstelle zum vergleich
wirtschaftlicher Lenkungssysteme, Barfuesser Tor 2, D-3550 Marburg, West Germany. (Gerding, 1980)
SCHUMACHER, P.C., Schumacher Projects, Church House, Church Lane, Godstone, Surrey RH9 8BW, U.K.
( 1986 GPE network )
SCHUMACHER SOCIETY, E.F., see Robert SWANN.
SCHWARTZ, PEDRO, gave an address at a one day seminar on monetary freedom, Imperial Hotel, London,
9.5.1981.
SCHWENKE, SIEGRIED, Schoenstedtstr. 9, 1000 Berlin 44, Berlin-West, West Germany, Tel (030) 681
1379. (1986. Intends to put out a monetary freedom newsletter himself and has gathered ca. 200-300
German addresses for this purpose. Gives talks on monetary freedom, writes on it and continues
to study its potential, aiming at some monetary experiment, perhaps a computerized clearing system.
Knows only school English. Studies economics. )
SCOTT, HILDA, 79 Martin St., Cambridge, Mass 02 138, USA. (1986, GPE network)
SELDON, ARTHUR B., Com. Examiner of Economics, University of London, The Institute of Economic
Affairs, 2 Lord North Street, Westminster, London SW1P 3LB, U.K. (Gerding, 1980)
SENNHOLZ, HANS F., Dr., 200 East Pine Street, Grove City, Pennsylvania 16127, USA. (1986.See FB
Bibliography.)
SHAFFER, BUTLER D., P.O. Box 2193 Toluca Lake, CA 91 602. ( 1985. Freenetwork.)
SHAPIRO, MILTON M., 825 Occidental Drive, Claremont, Cal. 91 711. (1983. University lecturer on
money and banking who favours a 100% gold standard.)
SHARE, see C.T. Willingham.
SHARON, DAGNY, P.O. Box 234 Long Beach, Cal 90 801. (1986)
SHEILL, Box 3, Southfield, Mich. 48 075. "Join "SS" Plan, Buy without money! Spend Credits Instead.
Over 5,000 members! Send 25c plus stamp." Also: "Remit 30 cents cash or stamps. You will get
'Lifetime Membership', nue dues, plus 5,000 SS Credits worth 1c each in trade. No obligation.
You never owe anyone. After 1st Jan. 1969 Fee $ 2.oo {16/-} and only 1,000 Credits.)
SHENFIELD, Prof., gave an address at monetary freedom seminar, 9.5.1981, London.
SINCLAIR SECURITIES COMPANY, 90 Broad Street, New York, N.Y. 10004. (1980. Mentioned in Free Gold
Market Newsletter, issue 175, Oct. 2, 1980.)
SKILLSBANK, 340 South Pioneer Street, Ashland, OR 97520, 503/482-2265. ( Barter group, in which
ca. 500 people share ca. 450 skills. Tool library. Newsletter. Lipnach, Networking, 1982.)
SMULDERS, HARRY, 9 Av. de la Ramee, B-1180 Brussels, Belgium. (1985. Freenetwork. Alternative
money, creation of money network. Tel. (02) 512-5980 (Off), 345-2305 (Res) )
SNYDER, LESLIE, C/O Books in Focus, Suite 31 B, 160 East 38th Street, New York, N.Y. 10016. (1979
address in her book "Justice or Revolution")
SOLYN, DICK, see Sound Dollar Committee.
SOUND DOLLAR COMMITTEE, P.O. Box 226, Fort Lee, N.J. 07 024. ( Dick Solyn, 1985.)
SPAHR, WALTER E., Economists' National Committee on Monetary Policy, 79 Madison Ave., New York
16, N.Y.. ( ed. their "Monetary Notes" at the time of PP 9-11.)
SPARKS, JOHN C., The Foundation for Economic Education, Irvington-on-Hudson, N.Y. 10533. ( 1986.
In very general terms for monetary freedom in The Freeman, August 1967. )
SPIELMAN, PHIL M., P.O. Box 35, El Cerrito, CA 94 530. (1982, ordered PP 19 A.)
SS PLAN, see SHEILL.
STEELE, GEORGE R., 4512, 47th SW, Seattle, Wash 98116, U.S.A. (1986. The Individualist)
STEINHUBER, W., see Netzwerk fuer Selbsthilfe, Graz, Austria.
STERN, KLAUS, Dr., Prof. an der Universitaet Koeln, Institt fuer oefentliches Recht und
Verwaltungslehre, Gyrhofstr. 8c, D-5000 Koeln 41. (Gerding, 1980)
STETZEL, WARREN, Raven Rocks, 54061 Crum Road, Beallsville, OH 43 716, USA. (1986, GPE network)
STIGLER, GEORGE J., Dr., Prof., The University of Chicago, 5836 Greenwood Ave., Chicago, Ill.
60 637, U.S.A. (Gerding, 1980)
STUMM, JIM, Box 29, Hiler Branch, Buffalo, N.Y. 14223. (1986. LIVING FREE, RANDOM NOTES,
contributor to THE CONNECTION.)
SULLIVAN, MARK, MACKAY SOCIETY, Box 131 Ansonia Sta., New York, N.Y. 10023. (1986. Publisher of
The Storm. Issue 4/5 dealt especially with monetary freedom, in the Tucker/Spooner tradition.
)
SWANN, ROBERT, & SUSAN WITT, E.F. SCHUMACHER SOCIETY, Box 76, RD 3, Great Barrington, MA 01 230,
U.S.A. (1986, GPE network)
SZMAK, G., Ec. D., Industrial Economist, Economic Surveys and Systems. ( Up to the time of PP
16-18, and from N.Y., he proposed in a number of leaflets and new system of "economic order" that
included a scrip system.)
TAGGART, JOSEPH H. ( Last contact with PP 10. Used to be Dir. of the C.J. Devine Institute of
Finance and published THE BULLETIN.)
TAME, CHRIS, see ALTERNATIVE BOOKSHOP.
TEMPLIN, RALPH. ( Monetary freedom interest at the time of PP 9-11.)
THEOBALD, ROBERT, Box 2240, Wickenburg, AZ 85 358, USA. (1986, GPE network)
THOMAS, WENDELL, Celo Community, Rte. 5, Burnsville, N. Carolina 28 714. ( Money reformer according
to M. Loomis, at the time of PP 9.)
THOMPSON, BOB, editor of POLIS, Box 1013, Bethleham, Pa. ( Monetary reformer according to M. Loomis,
at the time of PP 9& 10.)
THOREN, MARGARET, TRUTH IN MONEY Inc., Box 30, Chagrin Falls OH 44 022. (1986, GPE network)
THORNLEY, KERRY WENDELL, Spare Change Monographs, 2981 Lookout Pl. N.E., Atlanta, GA 30 305.(1984)
TIMM, UWE, Muenterweg 16, 2 Hamburg 74, West Germany. (1985. Mackay Gesellschaft. Was even prepared
to travel a long distance just to participate in a monetary freedom discussion.)
TITLEY, ROBERT B., 24 Titworth Crescent, Colonel Light Gardens, South Australia 5041. (1980. Showed
interest in Reasearch Centre for Monetary & Financial Freedom then, PP, MF & SC. Some material
sent, 1980 & 1983 no response.)
TIXIER, GILBERT, Dr., Prof., Universite Paris-Val de Marne (Paris XII), 58, Avenue Didier, F-94
210 La Varenne Saint Hilaire, France. (Gerding, 1980.)
TOBIN, MICHAEL, & Caroline, Harepark, Boyle, County Roscommon, Ireland. ( 1986, GPE network.
From what I have seen of his writings, I cannot classify him as a monetary freedom advocate. J.Z.)
TOES, (Mr. P. Ekins), 42 Warriner Gardens, London SW11 4DU, U.K. (GPE network, 186)
TOOLBOX TRAINING AND SKILLS-SHARING COLLECTIVE, 337 17th Avenue East, Seattle, WA 98112,
206/322-4962. ( Barte group, Lipnach, Networking, 1982. )
TRANET, see ELLIS, B.
TREUBERG, Graefin, possibly c/o TUCHER, Baron, Tucher Brauerei ( brewery), Nuernberg. She tried,
according to one hint, many years ago, to issue her own money in the own community.
TUCHTFELDT, EGON, Dr., Prof. an der Universitaet Bern, Alpenstrasse 45, CH-3626 Huenibach bei
Thun, Switzerland. (Gerding, 1980)
TUPPER SAUSSY, F, The Main Street Journal, P.O.Box 143, Sewanee, Tennessee 37 375. (1981. Author
of The Miracle on Main Street, on tax protest, constitutionalist, opposed to legal tender money.
On p. 36: "all it takes is gold and silver coin.")
TURNBULL, SHANN, Box 4359 GPO Sydney 2001, Tel. 324534, or MAI Ltd., 33 Bligh St., Sydney 2000,
Australia, tel. 233 5340. Wrote two booklets on monetary freedom and several articles and may
still write a book on it. However, he holds that the Kwh could be a suitable value standard today.
(1986)
TURNING POINT, c/o James Robertson, The Old Bakehouse, Chosey near Walingford, Oxon OX10 9NU,
U.K. (1986. GPE network. Reports among other things on monetary freedom experiments and new
writings. )
US PAPER EXCHANGE, 1129 Washington Ave., Minneapolis, MN 55 415. ( In 1981 it offered a free booklet
: "Inflatin and Gold". )
VALUE ACTION, P.O. Box 15 307 Seattle, Washington 98 115. ( Ran a telephone serive, "The Voice
of Gold", "For lively and informative discussion about gold", in September 1975, under Area Code
206 KAF-FIRS or (206) 525-7500.)
VEREINIGUNG FUER GESUNDE WAEHRUNG, Bahnhofstr. 17, Zuerich, Switzerland. (That address goes back
to INFRA and PP 11)
VETO, JOHN, Veto FACTS, Route 3, Upper Pond, Barrington, IL 60010, U.S.A. (1982.Ordered booklet
"Stop the Legal Tender Crime". "I'm working for a return to justice in the U.S.A...)
WAGNER, GARY L., 1512 Old Farm Rd., Modesto, Ca. 95 355. (1982, odered PP 19 A.)
WALKER, KARL, deceased. Since he was one of the few tolerant Gesellians that I know of, I would
like to see all his writings that favoured monetary freedom reproduced at least on microfiche.
Who holds the rights? Last address was in 5481 Alternaar, ueber Remagen, Engelsley, West Germany..
WATNER, CARL, P.O. Box 1275, Gramling, South Carolina 29 348. (1986. The Voluntaryist. )
WATRIN, CHRISTIAN, Dr., Prof. an der Universitaet zu Koen, Arndtstrasse 9, D-5000,
Koeln-Rodenkirchen 50, West Germany. (Gerding, 1980)
WATTS, ORVAL V., Dr., used to be Chairman of the Div. of Social Studies, Northwood Institte,
Midland, Michigan, U.S.A.
WE-KNOW-NOW FREE TRADE EXCHANGE, 122 East 2nd. Street, Winona, MN 55 987, 507/454-2474. (Lipnack,
Networking, 1982.)
WENNER, ROBERT, c/of Burschenschaft Alemannia, Guentersthalstr. 56, 7800 Freiburg/ Br., West
Germany, Tel. 75 378. (1984. He was then studying economics at the Freiburg University. Interested
in free banking and Hayek but not yet a full laissez faire advocate but a welfare state advocate
in many respects.)
WERKHEISER, DON, 3532 Meade AVe., San Diego, Cal 92116. (1981.) - Deceased.
WESTERN WORLD REVIEW INSTITUTE, P.O. Box 806, Chino, CA 91 708. (1986) - Robert Sagehorn. Probably
deceased.
WESTON, DAVID, Ruskin College, Duston Rd., Old Headington, Oxford OX3 9BZ. (1985.) "Carrick" Ladies
Walk, Stranraer,Scotland DG9 8EN, U.K. (1986 GPE network. Told the TOES conference about his own
experience with a Green Dollar Exchange. Turning Point.)
WHITE, LAWRENCE H., New York University, 1984.
WILBER, DAVE, Box 22 431, St. Louis, MO 63 126. (1984. "Awake America", money reformer.
WILBER, DAVE, P.O. Box 22 431, St. Louis, Missouri 63 126. ( 1982. Pres. of AWAKE AMERICA. "To
regain our freedom, all legal tender laws must be repealed and 100% redeemable currency must be
instituted." The first part is o.k. however, then he also wrote: "Inflation is bank credit. Bank
credit is the cancer of civilization."!)
WILLGERODT, HANS, Dr., Prof. an der Universitaet zu Koeln, Hubertushoehe 7, D-5060
Bergisch-Gladbach 1, West Germany. (Gerding, 180)
WILLIAMS, RICHARD HUGH, G.P.O. Box 8, Llandudno, Wales, UK. (1980)
WILLINGHAM, C.T., 72 Consiton Rodad, Addiscombe, Croydon, Surrey, England CR06 LN. ( 1968/69:
"Join SHARE, Britain's only reciprocal sharing system. Buy and sell goods etc. without money.
New members will receive 240 Share-Units to start with. For further particulars send S.A.E. in
U.K. Overseas 1 IRC. " This seems to have been a forerunner of the LETSYSTEM. J.Z. )
WILSON, ROBERT ANTON, Institute for the Study of the Human Future, Inc., Suite 1362, 2000 Center
St., Berkeley, CA 94 704. (1981.)
WINDER, GEORGE, British author, journalist and lecturer who wrote e.g. "The Source of Money",
Essays on Liberty, VI, 1959. If he is still alive, he can probably be contacted via FEE.
WINGFIELD, DAISY, Mrs., 308 Parkwood Rd., Kirkwood, Mo. 53 122. ( 20 years ago. A money reformer
according to M. Loomis. I wonder whether 1 in 100 money reformers can be turned into a tolerant
money reformer or even a monetary freedom advocate? Perhaps they should at least be listed, with
some code, indicating their ever repeated flaws. )
WITT, SUSAN, see BOB SWANN.
WOLL, ARTUR, Dr., Prof. an der Gesamthochschule Siegen, Theodor-Storm-Strasse 29A, D-6380 Bad
Homburg, West Germany. (Gerding, 1980)
WORLD MONEY ANALYST, 5th Fl., 25 Bligh St., Sydney NSW 2000. (1979/80. Still, or only in Hong
Kong, or not even there? Austrian School.)
ZANDER, WALTER, Dr., 16 Alvanley Gardens, London N.W. 6. (1984. He was then in his eighties,
visually impaired but still mentally very alert and worthwhile talking to. Understated his role
as an author of monetary freedom and in the circle that drafted the Four Law Drafts. Wrote also
an article in defence of the Chinese tael system in preference to modern dishonest and coercive
value standard systems. I am still trying to get a copy of it. Please ring him before you try
to see him and make your visit, if any, short. He is getting old and a visit strains him. In my
eyes the last of the "Old Guard".)
ZOELLER, MICHAEL, D., Universitaet Muenchen, Schlossgartenweg 2, D-8045 Ismaning, West Germany.
(Gerding, 1980.)
ZUBE, JOHN, 35 Oxley St., Berrima, N.S.W. 2577, Australia, tel. (02) 48 771 436.
ZUBE, KURT, Auwaldstr. 7, 7800 Freiburg/Br.,West Germany. - Deceased: 1991.

I can only hope that this listing does not turn out too much of a grave yard list. However, even
if those listed are long dead and buried, it might be worthwhile, in some cases at least, to enquire
about the location of their remaining papers and to peruse them.

Apologies to those whose address I have unintentionally or carelessly omitted. It depends only
upon you to be included in a larger and corrected listing next time.
I did not bother to look for some barter association addresses in a very thick file of correspondence
with Robert Sagehorn. Somewhere one has to draw the line, however incomplete a compilation still
may be.
Note that apparently not all members of the GPE network of Mark Kinney are advocates of monetary
freedom. They were listed all, anyhow, hoping that most of them would be, because of his advocacy
of the Letsystem and CCC.

   RESEARCH CENTRE FOR MONETARY AND FINANCIAL FREEDOM, Sec. John Zube, 7 Oxley St., Berrima, NSW
2577, Australlia.                  August 30th., 1986.

All cheques to be made out to John Zube. U.S cheques are welcome. U.S. cash is preferred, and
so are DM and SFr.
SHOPCURRENCY 12 Nov 69

Transcript of an imperfect duplicate of probably my first contribution to The Libertarian Connection, responding to
issues 4 & 5. It was reproduced in TLC No. 7 on pages 43 & 44, of November 12th., 1969, but on such dark and
coloured rag paper that it does not photocopy well enough :

NOTES FROM AUSTRALIA, by John Zube, editor of PEACE PLANS.

Nuclear extermination and pollution dangers are not yet quite as dangerous threats in Australia as in the U.S.
Otherwise, in most respects, Australia has not more but less to offer to libertarians toying with the idea of
migration. There is no libertarian movement or group worth speaking of. Sydney has only just got its first Ayn
Rand group. About 2/3 rds of my Peace Plans subscribers live in the U.S. and most of these in California. So you
might as well stay where you are.

For libertarians also interested in monetary freedom, as the natural basis for a free market economy, the Australian
practice of store currencies should be interesting. Modest as it is, in its practical application, and being severely
restricted by currency regulations, and in spite of defects in the cover technique used, it nevertheless supplies the
thoughtful observer with a practical application of monetary freedom ideas which has a great potential. It needs
only wider application, removal or breaking of legal restrictions and clarification of the theory and technique of
sound private note issues, to develop private banknotes suitable for an almost general local circulation.
What is presently done is the following: All major department stores ( cash and carry stores excepted ) issue them,
in paper form, attractively standardised and in convenient denominations. None has any outward similarity with the
current state paper money, except that they are all rectangular bits of printed paper. They are issued only in the
sphere of consumer credits. The credit is granted in these notes and each store or chain of stores accepts only its
own notes in payments. The amount thus granted is repayable, with interest, in state papermoney. Standard of value
is still the A $, private possession of gold and gold pricing being here as much outlawed as in the U.S.
The stores have the advantage of reducing administrative costs to a fraction (one twelfth, according to one
estimate). The consumers buy with this money like with cash. The state does not consider these issues as
competitive. The single instance I heard of, where a large department store paid a wage increase in store currency,
to striking construction workers, building a new store, was hushed up and the severe penalties the law provides - up
to $ 20,000 per day of issue - were not applied. But this example showed, nevertheless, the potential usefulness of
these notes, even with their presently very limited acceptance foundation. Apart from legal restrictions, several
department stores could rapidly combine, during a currency or credit shortage, in order to issue a common medium
of exchange acceptable to all of them. In the meantime, they could mutually accept their issues and clear. Then
most workers and landlords, for instance, would voluntarily accept these notes like cash. Then short-term credits
could be granted to industries which, otherwise, might have to discharge workers.
If one realises that the real working capital in any country ( the liquidity permitting e.g. the use and the production
of large scale machinery ) consists in the consumer goods in a country's stores, in its goods ready for sale, in the
goods required to support labourers while they are working to produce e.g. a car, a dam or a particular food item,
then one will not tend to underestimate the importance of thus being able to mobilise or liquidify this immense
capital for short term loans ( and some of it, under certain precautions, for long term loans).
I spoke with some of the administrators of the current schemes. Control of the issue is very simple. Neither
over-issues nor forgeries ever happened. Over-issues are impossible, anyhow, because these notes are, naturally,
not legal tender to anyone but the issuers. Forgers are deterred by the small circulation area.

These notes can be considered as free banking issues - but only during that part of their circulation where they are
in the hands of the consumers and until they end up in the cash registers of the department stores, in payment for
goods or services. They are then, obviously, private and standardised goods warrants in money denominations and
possess a "shop foundation" or "readiness to accept foundation" as discussed extensively in three issues of my
Peace Plans pamphlet series.... At least half the Australian adult population has handled such notes at one time or
the other. Thus, using these notes as examples, it becomes relatively easy to discuss the potential of free banking -
as a further development of these current issues.

In a severe crisis - if the groundwork is laid in time, by monetary enlightenment - Australian businessmen might
successfully ignore the currency law and, by issuing improved shop currencies, do the economically right thing to
overcome a depression - like U.S. business men did during th currency famines of 1893 and 1907. (Details of this
successful self-help against government caused depressions are contained in my free banking series.) Application
of this system would permit the re-employment e.g. of most of New York's 200,000 unemployed within a day or
two. Who among the politicians would then dare to render these unemployed again by enforcing the monetary
restrictions? Including the votes of family members, hey would lose at least 500,000 votes.

I like most of the contents and the basic idea of The Libertarian Connection. Your way of collecting the material
also makes for a pleasant diversity of typefaces. Legibility might be improved by using smoother and yellow or
white paper.

   Comments on some points in issue No. 4 :

LC4,p.8: Democratic states are as or almost as warlike because in them as in others the decision on war or peace,
armament or disarmament and on international treaties, is not made by the people themselves but, in practice, by a
single man or, at best, by a handful of men. At least in this respect, they are dictatorships and show, therefore,
comparable results.

LC4,p.20: Whoever advocates "abolition" of the State is right in opposing its coercive and monopolistic aspects,
e.g. its nuclear power, but he is wrong in also threatening the ideal of non-coercive states which apply not universal
but only personal law to their voluntary members. Such states, with much more justification than the present ones,
may be considered merely as insurance agencies of various organisational forms, offering various degrees of cover
at various prices. As such they will always be loved and defended by the majority and thus any attempt to abolish
these would require a dictatorship. Abolitionists would do well to re-read Herbert Spencer on this subject, in chapt.
19 of the original "Social Statics". My Peace Plans series is particularly dedicated to the exploration of this
alternative. It does not threaten but rather encourages, on laissez faire principles, the establishment of
non-libertarian systems, for their promoters and their followers. Thus it follows the line of least resistance in the
establishment of one or several, country- or world-wide libertarian communities - for all those willing and able to
participate in them, now. The libertarians would only "suffer" under a voluntary segregation from the various
collectivists and would have to be satisfied with exterritorial self-determination. Their victory would then be
exemplified not by the destruction of collectivist organizations but by self-liberation and the introduction of
voluntarism into all state memberships. The latter would permit all collectivists to follow the example of libertarian
pioneers - whenever they are ready for it, after having had to pay for their e.g. state socialist experiments
themselves, obviously and in full. At present, libertarians do not have much chance to persuade or to dominate their
opposition. But they can learn to tolerate other ways of life and to make this tolerant way of life attractive to the
collectivists also. Theory and practice of religious freedom (wherever church and state are properly separated) set
an interesting precedent for a system of "competing" or "parallel" governments, for "panarchism", "pluralism",
"mutualism" or ( as coined by SFRI recently ) "multi-archism". Toleration and self-determination of the various
sects and churches, including the various groups of atheists, agnostics, rationalists and humanists, all based on
individual acts of secession and association, destroyed rather effectively the power of monolithic churches and
gave the freethinkers most of the freedom they can rightly demand. By permitting all views and faiths to be
practised, even the erroneous ones, the rational ones got their chance, independent of majority opinion.
The system is attractive to all pious men and even religious fanatics because it gives all of them a chance. At the
same time, it safeguards the freethinkers because under these conditions no religious faith is likely to become
overpoweringly dangerous to them.

On this platform libertarian and non-libertarian opposition forces could easily unite, to bring about rightful
revolutions against all totalitarian regimes.

Moreover, libertarians could make this kind of experimental freedom, in the political, economic and social sphere,
attractive to all who want to prevent nuclear war. More so than the most extreme local government autonomy, this
kind of voluntary and exterritorial association, of people of the same belief, would eliminate all targets for mass
extermination weapons - and all powers for financing, building and stockpiling them.

Even conventional nationalists could be won over to adopt this plan - as a measure to be imposed upon a defeated
enemy, in order to render him harmless as an aggressor in the future - by releasing all centrifugal forces in the area.
(One should not be too explicit on the feedback result.)
Advocates of a World State or World Federation could, likewise, be won over to this philosophy and way of life.
No artificial limit against a world-wide federation of libertarians or others would remain. The establishment of
several world-wide and autonomous volunteer communities, some of libertarian persuasion, would be likely. If any
of these would become attractive for all, then it would prevail for the time being and become the only one, unlikely
as that might be.

LC 4,p.23: Robert Ardrey, in his "The Territorial Imperative", demonstrates only the naturalness of a territorial
imperative covering procreation and hunting areas. He could not even prove the latter for all primates, e.g. not for
gorillas, chimpanzees and hamadyras ( see pp. 221-4 of the Collins, London, 1967 edition). It is a misleading
analogy to compare these "animal territories" with our usually much larger "national territories". Territorial nations
with exclusive legislation and jurisdiction, are not an ancient animal tradition, continued by humans but only a
development of the last 300 years and are based on the secular and intolerant religion of nationalism. How limited
the territorial sensitivity of humans is (apart from ideological prejudices) was only recently measured for the first
time. Dr. Edward T. Hall, in "The Hidden Dimension", distinguished 4 territorial sensitivity zones around each
human being. While these zones differ greatly for different cultures, for middle class people of northern European
extraction the following measurements apply :
a) The intimate zone - within arms length.
b) The personal zone - from arms length to about 4 feet - the area of private
   conversation.
c) The social zone - 4 to 10 feet away - at which people converse at a party or at work.
d) The public zone - beyond 10 feet. For instance, if an office caller sits
   within 10 feet of a secretary, she usually feels obliged to converse with
   him. If he is more than 12 feet away, she can ignore him easily and go on
   with her typing. ( Compare the review in Readers Digest, September 1967,
   pp. 139ff.)

Similar relationships for nations have, to my knowledge, not been discovered. Seeing the coercive and arbitrary
establishment of most nations, their usually rather mixed composition and their size differences, it is unlikely that
comparable relationships will ever be found. What we find among "the naked ape" more than among the others are
instances of exterritorial autonomy. They are very well surveyed e.g. in Shih Shun Liu's "Extraterritoriality", N.Y.,
Columbia, 1925. I hold, therefore, that with regard to the so-called national territories, we are no longer in the
sphere of natural instincts but of power relationships and ideologies.

I received LC No. 5 a few days ago and it is better still than No. 4. Arynd Raymond, on p. 40, in defending the
limited government concept, rightly states :
"What could rival a free society with a competent government which protects the rights of every citizen?"
If you replace "government" by "agency", hardly anyone will object. But this is not the questionable point. The
question is : How are the advocates of limited government to establish this ideal - when they exclude competition
on the road to its establishment? They want, so to speak, jump from the idea of an automobile directly to the
production of an ideal car. It took generations to develop the present good but still imperfect cars, even under rather
free competition. Thus, let us win freedom to try, at one's own expense and risk, for the advocates of limited
government as well as for all others, as the fastest and safest way to realize any ideal. Otherwise, we would have to
wait for the millennium of general enlightenment to arrive or would risk to be subdued, any time again, by the
majority of statist minded people, who want to be liberated from the freedom and self-responsibility even a limited
government would "impose" upon them. (Wouldn't most of today's Americans, for instance, wrongly but indeed,
consider the re-establishment of a limited government in the U.S., of the "Liberty Amendment" type, as the result
of a "capitalistic conspiracy"? Wouldn't they fight it and couldn't they win? Why antagonise the ignoramuses more
than necessary?)
The example of free people would teach much better than their words ever could.



JZMONEYtalkToAnlate60ties

SOME OBSERVATIONS REGARDING

                     MONETARY FREEDOM VERSUS MONETARY DESPOTISM.
I.) SHOULD WE TRY TO SATISFY NEEDS WITHOUT MONEY?

(Notes for a talk to a left-anarchist group, by J.Z., undated, probably end of the sixties. Needless to say: I did not
succeed in interesting them in monetary freedom or even in seriously considering a monetary economy.)

Let me start with an observation I liked:
       "Money is not everything in the world. But whatever comes second behind it is a hell of a long way back."

You all know this book - Alexander Berkman, ABC of Anarchism, Freedom Press - have at least seen it here and
have, presumably, read it.
Do you accept his position on exchange and money? Who does? Lift your hands! Who does not? Who does not yet
made up his mind or does not know his stand? Raise your hands!

Provided they back him up:
To those who agree with him, I can only say that I regret that you are content with mere protests and
demonstrations for the present, and are not interested in bringing about improvements in the near future but rather
content yourself with mere fantasies and hopes for the far-away future, with re-stating popular economic fallacies
as Alexander Berkman did. (Undoubtedly, with this statement I had already lost them. J.Z. 11.3.85.)

By thus forcing me to start again, at the very beginning, you do not give me the chance to try to advance the debate
concerning monetary freedom versus monetary despotism. I will only be able to repeat some points.

As to Alexander Berkman's views, expressed on pp. 79 and 80 of this booklet:

        "...When (the social revolution) attains a stage where (it can produce), (sufficiently) for all, then (is
        adopted) the (anarchist) principle of ("to each according to his needs...").

In this short sentence there are no less than six highly objectionable ideas, namely those which are here stressed by
brackets.

Will it do any good to try to analyse and criticise these ideas before you? Are you not likely to dismiss all
objections against this sentence as mere hair-splitting? He seems to be your prophet and your are satisfied with his
prophecies. This seems to be part of your unshakeable materialist religion.

I would say that Berkman here proposed the preposterous despotism of taking away the earnings of the able
precisely to the extent that they have rendered more than average services to society. He calls this anarchism and
you, apparently, put up with this explanation. It call it tyranny of the worst kind!

Later on he says:

        "No, there will be no buying or selling. The revolution ABOLISHES private ownership of the means of
        production and distribution, and with it goes CAPITALISTIC BUSINESS."

Later still :

"'But if you can't buy anything, then what's the use of money?' - you ask. None whatever, money becomes useless.
You can't get anything for it...Exchange will be free. The coal-MINERS, for instance, WILL DELIVER the coal
they mined to the public yards for the use of the community. In their turn, the miners WILL RECEIVE from the
community's warehouses the MACHINERY, tools and the other commodities they NEED... That means FREE
EXCHANGE without the medium of MONEY and without PROFIT on the basis of the REQUIREMENT and the
supply on hand."

This is one of the most absurd fantasies that man has ever believed.
Concerning the "sufficient" production: or, in modern words, "affluence", it is interesting that the same people
usually believe in the contrary concept of overpopulation. Neither opinion is true, both contradict each other. Does
it matter to them?
Will there ever be "sufficient" for all?

       "Many economic errors are due to the fact that human wants are considered as a fixed quantity." Wants
       have, though, a "capacity for indefinite multiplication...", "are not fixed quantities but progressive, capable
       of growth like the inexhaustible desires on which they constantly feed...". "I say 'without limit' and not
       'infinite' for nothing that relates to man is infinite."

This is one short version of Frederic Bastiat's answer to this belief. He discussed this point in detail in "Economic
Harmonies", which everyone of you should have read, if you really believe in harmonious human interrelations in
every sphere, without government rule and guidance. But in this respect you appear to be comparable to many
pious Christians. They usually do not read their Bible, either. They satisfy themselves with reading some religious
booklets instead, with singing hymns or listening to their preachers.

I do not doubt that the "needs" will be there - but where will the supply come from without enslavement of the
able? Will there be sufficient volunteers for voluntary slavery? Who will collect the "night-soil" and be e.g.
inspired by Mao's writings to find better and faster ways of doing this, without extra rewards? (I suppose that you
have all read such report from Red China.)
Who will sweep the streets?
Will there be "sufficient" voluntary prostitutes, even for the old and ugly ones?
Who will dig in the dark bowels of the earth, risking his life, when he has the choice of much easier and less
dangerous work in the sunshine?
Who will work on shifts and on the weekends?

Without the most pernicious command system, without threats, directions, punishments and, yes, rationing, without
the worst kind of authoritarianism, this system will not work, for the same reasons that it has never worked before,
in the long run, even among selected people. It does go against human nature, mine, yours, that of almost all.

Why should the miners not only produce coal but deliver it, too? They will say: Get it yourself, from our mines,
even if you have to walk or drive 100 miles to get it, or have to cross and ocean to get "your" coal. But, by all
means, do not employ a capitalist business man or a workers cooperative to bring it to your doorsteps or into your
cellar for a few cents.

What will the needs, the requirements be? You could not sufficiently foretell them without free market pricing as
indicator. So there will be either surpluses or shortages.

You can, naturally, make your choice for yourself. But as for me, I am only interested in a social revolution by and
for people as they are - though I certainly are not any more content with most of them than your are.

If you want to set up the utopian intentional colony No. 10,001, along your ideological lines, I wish you luck. You
will need it. Maybe you are lucky enough to find some oil well on your land, like a Texas University did, on barren
land donated to it. I will tolerate your system, when practised only by you and volunteers, and will attempt to
further tolerance for it. I would even try to suppress a laugh or ridicule. But do not expect me to join it or expect
many other people to join you whose productivity and economic common sense is above average. Remember, too,
that in this respect I am certainly not alone and would rather go down fighting than to submit to such a system. So,
better start thinking how you could realize it without the enforced participation of any dissenter or nonconformist
or independent person.

Berkman based his views regarding money on this utopia. Apparently, he thought that we would have to accept the
present kind of money until his utopia is realized by "the social revolution".

To all those of you who think that they could now or in the foreseeable future do without money, I can only say:
Give me yours! I need it. It would go from the able to the needy, for my monetary needs are greater than yours. I
even like the stuff while you pretend that you dislike it. So you should be fully satisfied. I would be, anyhow. In
case you have not yet achieved complete affluence, I am even prepared to wait a bit. Please tell me, as soon as you
have "arrived". I will then gladly receive your surplus. Do not doubt that.

Yes, I agree, MONEY (as presently constituted) is a great evil. But, remember, there is one thing worse: to have
NONE. Or, as the Italian proverb says:
       "The devil has invented gold. Pray to the Lord that we will never be short of it."

For those of you interested in the principle "from each according to ability, to each according to need", I could read
out some passages concerning the most important and most forgotten utopian experiment based on this principle.
Only the reversal of this principle into: "to each according to his merit or service", saved the lives of the
participants and turned this utopian attempt into the most successful utopian attempt ever known, into the
community with the highest standard of living, the one with the greatest degree of freedom remaining for all, the
USA. (See Essays on Liberty, FEE, vol. VII, p. 17ff. Other relevant arguments can be found in several books by
Ayn Rand.)

III.) IMPORTANCE OF MONEY AND MONETARY REFORM.

Why in detail money is advantageous compared with barter has been described in almost any textbook on
economics. I will therefore quote only two summaries:

       1.) "There is no machine which saves as much work as money does." - said Lauderdale. I would like you to
       ponder the question: "What does workers' control mean and demand regarding this machine?

       2.) "Society means exchange" - said Bastiat. You know that money is THE means of exchange, comparable
       only to language, the blood-stream or mutual aid. From this observation one might conclude that whosoever
       monopolises money would therefore have society in his hands, might do immense harm, though he might
       be praised as being and might believe to be very benevolent. Or could you tell me of any economic
       monopoly which has done no harm as yet?

There is another important point which I do have to make in order to avoid misunderstandings: My objections
against monetary despotism are not directed against persons, not even against monopolists or capitalists or
socialists. I do not believe that there is any monetary conspiracy, e.g. of bankers or of central bankers or financiers,
nor any secret clique of plutocrats ruling or attempting to rule the world. Instead, I have found only a consensus of
ignorance and stupidity and disinterest in this field. Even the top men, the presumed "experts", are usually, as
Ulrich von Beckerath used to say,
        "only the high priests of the popular religion regarding monetary affairs",
they are putting the popular prejudices into action, no matter how scientific their phrases sound and their methods
seem to be.
Ptolemaeus' planetary system is much more complicated than that of Copernikus and took more mathematical
reasoning to perceive and demonstrate. Nevertheless, the simpler system of Copernikus is right.

I am not trying to prove this point to you but am convinced that anyone who seriously checks the first principles
and assumptions of monetary authoritarianism or monetary despotism will come to the same conclusion. Others
might arrive at the same conclusion merely by looking at the historical record on how the theories of our "experts"
in this sphere worked out.

       That the present system is bothering even those who have much money is shown by the following story:
       When banker Fuerstenberg turned 70, he was asked by his relations what kind of present he wanted. To
       their surprise and delight, he asked for photographs of all of them. On his birthday, he got them beautifully
       bound together in leather. On the very next day he gave the whole collection to his doorman with the
       instruction: "Remember all these faces well! If anyone of them ever turns up asking for me, you are to tell
       them that I am away for an indefinite period!"

III.) ANARCHISTS, LIBERTARIANS AND INDIVIDUALISTS FAVOURING FREE BANKING.

You ought to know that there is a vast pro-authoritarian literature on money, banking, credit, currency, one of
literally thousands of volumes. The Mitchell library alone has several hundred such books on its shelves. This
avalanche of literature, in numerous reprints, is opposed by only a few dozen publications of anarchists, libertarians
or individualists and most of these are out of print and appeared only in small issues so that they are usually not
found, not even in large libraries.
The present monetary establishment is one of the most formidable bastions of authoritarianism and is relatively
new. Nevertheless, it is overlooked by most anarchists. Only a few dozen have tried to attack, conquer, undermine
or destroy it - by monetary disobedience and competition. I would like you to support their efforts, at least by
reading some of their works and discussing their ideas.

Rudolf Rocker, in his "Pioneers of American Freedom" mentions quite a few and I added here some to his list:

Andrews, Stephen Pearl,
Armsden, J.,
Badcock, J.,
Beck,
Beckerath, Ulrich von,
Best, Dr.
Bilgram, Hugo,
Borsodi, Ralph,
Cohen, Henry,
Courcelle-Seneuil,
Dana, Charles A.,
Donisthorpe, Wordsworth,
Fowler, Charles T.,
Fulton, E.H., S
Greene, William B.,
Harding, Robert,
Heywood, Ezra H.,
Hock,
Holzhauer, Georg,
Horn, J.E.,
Ingall, J.K.,
Kitson, Arthur,
Labadie, Laurence,
Lasker, Leopold
Levy, L.E.,
Loomis, Mildred J.,
Mackay, John Henry,
Meulen, Henry,
Phillip, Wendell (?)
Proudhon,
Rittershausen, Heinrich,
Robinson, J.B.,
Seymour, Henry,
Spooner, Lysander,
Tandy (?)
Tarn, Albert,
Warner, DeWitt, John,
Warren, G.O.,
Warren, Josiah,
Werkheiser, Don,
Zander, Walter
There were some more, in Europe & the USA.

All these defenders of monetary freedom seem to have had no effect whatsoever upon you. You do not know them,
have not read them or ignore them. You act almost as if Bakunin and Kropotkin would have been the only
important anarchists. Do you think the greater number of their followers is so decisive?

I do admit that the topic is relatively difficult to master but please, do remember, this controversy has already gone
on for more than 100 years. Nevertheless, still hardly anyone even knows of its existence.

Why has this particular torch of freedom been carried only by a few? Why has the vast majority of anarchists
bowed to authoritarianism in this field?
In my opinion you have here an instance that we cannot rely on the educational process alone to bring anarchism
about - unless, naturally, you have a thousand years to spare. Not all are as patient. Freedom to experiment has to
be added to freedom of expression. Freedom to experiment with new monetary systems is essential and it cannot be
sufficiently replaced by freedom of expression. The statists will not define the extent and the limits of experimental
freedom for us. We have to do this ourselves.

       The possibilities and the limits of free money in form of goods warrants are pretty well indicated by the gift
       of a small girl to her dad at Christmas. She gave him a certificate promising him an electric shaver and
       commented to the surprised man: "I didn't want to give you something cheap, papa. You will get the shaver
       as soon as I earn my first money!"

Since you are so very interested in the anarchism practised during the Spanish Civil War, you might be interested
that Irving Horowitz (in "The Anarchists", pocketbook issue, p. 57) mentioned the Council of Aragon as an
illustration in pre-Franco Spain of anarchist organization:

        "Libertarian principles were attempted in the field of money and wages. Wages were paid by a system of
        coupons, exchangeable for goods in the cooperatives." (Horowitz quoted here from Felix Morrow,
        Revolution and Counter-Revolution in Spain, New York Pioneer Publishers, 1938, pp. 142/3.)
In the whole world there are at present perhaps no more than two dozen men with relatively clear ideas regarding
monetary freedom - and they do not find much interest for their ideas even among anarchists. (This is not quite as
depressing as it sounds. Madam Roland once asserted that before the storming of the Bastille there were no more
than a dozen republicans among the National Representatives.)

These few, without freedom to demonstrate their systems of free banking in practice, without obtaining the legal or
constitutional freedom to experiment or without infringing the monetary legislation by a limited and tolerant
monetary revolution, have hardly a chance to ever realize monetary freedom for all of us. (At least not until the
means of communication are very much improved or much better utilised than they are now. - J.Z., 11.3.85 )

People under present conditions are as starved for cash that they will go to any length to obtain it:

       "Why?" the judge asked the accused, "did you break into banks, again and again?" "Oh, that is very simple,
       Sir. Didn't you know, they have all the dough?"

The present monetary system is part of state socialism or state capitalism and seems to me pretty well covered by
my friend Ulrich von Beckerath's definition of capitalism, as an economic system where the vast majority is very
ignorant of and, moreover, disinterested even with regard to its own economic affairs.
This situation is probably worst with regard to monetary affairs. I find no proper words to describe it. I hold that
the present despotic central banking system corresponds to the monetary immaturity of al citizens, including yours.

I will not bore you further with a detailed monetary theory regarding free banking. Others have expressed it better
than I ever could. But if you show some interest, then I would recommend to you to read at least some of the
relevant peace plans that I have published, namely: numbers 38, 81, 110 (points 31-34), 145, 160 (point 10), 168,
175 and to study the coming-up issues Nos 9-11 of my pamphlet series "PEACE PLANS", which will publish the
three most advanced and detailed works on the subject which I have so far found. (No. 8 appeared in Nov. 1966,
and No. 9 in March 1967, so these notes were written and partly delivered some time in-between. - J.Z., 28.12.02.)
This evening I will only point out some relevant facts, theories and principles.

       Let me mention a funny example of monetary freedom: Hamburg libertarians, more particularly libertines
       or prostitutes, did, before World War II, improve their employment situation (through regularising sales by
       eliminating boom periods on pay-days and depressions in-between) and also covered some of their living
       expenses in an interesting way: They paid for meals and drinks in harbour pubs with postcard-sized photos,
       showing them very lightly dressed, if at all. On the back was usually their address and a remark like: "Once
       good for Lilly", or whatever her name was. They did accept from sailors etc. a pre-payment of their dues,
       on pay-days, and credited their customers by issuing them with these photos in return. These photos
       circulated in the pubs, and probably among the friends of the recipients, almost like ready cash - until they
       were finally "redeemed" by the issuer.

Do not merely laugh about such instances. You have here an instance that an individual can supply himself or
herself with work to the extent that he or she can circulate purchasing certificates based on his own products or
services. This small instance just serves to illustrate the general usefulness of the idea. In more serious instances,
which, naturally, do also exist, electricity works, gas works, railways, department stores, bus- and tramway
companies as well as chains of petrol stations have issued their own exchange media successfully. On a smaller
scale "street money" was issued in China by barber shops, restaurants, tea houses and, yes, brothels.

IV.) SOME QUOTATIONS CONCERNING JOSIAH WARREN'S
       AND PROUDHON'S MONETARY PROPOSALS

Josiah Warren, in "True Civilisation; A Subject of Vital and Serious Interest to All People; but most immediately
to Men and Women of Labour and Sorrow, Clintondale, published by the author, 1869, quoted in Irving Horowitz:
"The Anarchistss", p. 328:

       "...That this sovereignty of the individual is impracticable in national, State, Church, or reform
       COMBINATIONS; and that combination is, therefore, exactly the wrong condition for the security, peace,
       and liberty of mankind. That the true movement for the attainment of these ends is for each individual to
       commence, immediately, to disconnect his person and all his interests from combinations of every
       description, and to assume the entire control of them as fast as they can be sufficiently separated from
       others, so that he can control his own, WITHOUT CONTROLLING THEM.
           That a rational circulating medium, a definite representative of property on equitable principles, has
       never been known to mankind - that all the great money transactions of the world, all banks and banking
       operations, all stock-jobbing, all money corporations and money movements, all systems of finance, and all
       the money business of the world, have been based upon shells, metals, and pictures; things which are no
       better qualified for a circulating medium, than a floating log is fit for a boundary of a piece of land. That all
       the legislative action on this subject has been conducted in the most profound ignorance of what a
       circulating medium should be, or legislators have abused their trust, and sold the people to their enemies.
       That a rational and equitable circulating medium, together with cost as the limit of price, would strike at the
       root of all political, commercial and financial corruption, and contribute largely to establish equity, security,
       liberty, equality, peace, and abundance, wherever it shall be introduced."

That today it is often difficult to obtain or repay credit is a fact that you all know more or less. I found it well
illustrated by the following conversation:

       Bob asked his mate Ted one day to lend him 20 dollars. Ted tried to refuse with a polite cautioning: "Don't
       you realize that borrowing and lending has broken up many a friendship?" But Bob was undeterred and
       replied: "Do not bother about that. We are not as good friends!"

V.) WAR AND PEACE, DEFLATION AND INFLATION AND MONETARY FREEDOM.

Do you believe the question of war and peace to be the most important? It is really closely allied to that of
monetary freedom, since the latter is the means to rid us of deflations and inflations and the chronic currency
famine or credit shortage.

Inflation is raging now e.g. in Vietnam and Indonesia. The currency shortage in Saigon, for instance, in spite of and
because of the raging inflation, is so great that there is unemployment to the fantastic rate of 40%. (Admittedly,
much of this is due to the war and civil war situation. In Elizabethville in the Congo it came even to 80%
unemployment!)

Hitler would not have gained power without the votes of the 8 million German unemployed during the Great
Depression - and those of their millions of relatives, dependants and friends. And this depression, too, was due, I
maintain, due to a deflation caused and maintained by monetary despotism.

The war in Algeria began when about one third of all Algerian families suffered from unemployment. The French
Revolution and the Commune of Paris uprising were largely due to extraordinary unemployment caused by
deflations which would have been prevented under monetary freedom.

VI.) THE 'MONETARY REFORM' OF THE COMMUNISTS
      HAS CREATED THE PRESENT MONETARY DESPOTISM

Karl Marx, in his "Manifesto of the Communist Party" (Great Books of the Western World, p. 427/8), speaks of
paper currencies which are exclusive and legal tender as means to establish communism:

       "The proletariat will use its political supremacy to wrest be degrees all capital from the bourgeoisie...
       "Of course, in the beginning this cannot be effected except by means of DESPOTIC INROADS on the
       rights of property and on the conditions of bourgeois production, by means of measures, therefore, which
       appear economically insufficient and untenable...
       "5.) Centralisation of credit in the hands of the state by means of a national bank with state capital and an
       exclusive monopoly."

In a leaflet on the Communist Party, issued 1848, this was still further explained in point 10:

       "A state bank, the paper money of which is legal tender, will replace all private banks."

That our rulers realize that central banks are powerful instruments to pursue their economic policies and to carry on
a war, is shown by the fact that during World War II German pilots attempted to destroy the Bank of England
while English bombers tried to destroy the Reichsbank in March 1944. Both attempts failed because both
governments had foreseen such attacks. Only buildings and some less important files were destroyed.

VII.) CENTRAL BANKING, DEFLATION AND SELF-HELP.

You believe to be anti-authoritarians - but have you ever seriously considered economic survival without the
services of a central bank?
How would you acquire, in practice, your milk, your newspaper, your bread and butter. Are your services of a kind
that they could be readily bartered?

If there is a money shortage (deflation, depression, crisis, credit restriction) and at the same time there exists a
monopoly for the issue of money tokens made out of paper, then the reason why the money shortage persists is
rather obvious - but it is, nevertheless, usually ignored.

       "8. Our historical examination has forced on us the conclusion that deflation is only possible where there is
       a note monopoly, because a monopoly excludes competition and no alternative arrangements exist. We had
       to conclude further, that inflation only occurs where there is legal tender." - said Prof. Heinrich
       Rittershausen in "Unemployment and Means of Payment, Annals for Collective and Cooperative Economy,
       p. 175.

       Deflation can be a real problem, you know, Bill complained one evening to a friend: I have not been able to
       sleep now for several days. Tomorrow, I have to pay a debt to Bob and I simply have not got the cash nor
       have I been able to obtain it. Bill's friend, very helpfully, suggested: "There is a simple solution to your
       problem. Go right away to Bob and tell him that you cannot pay him tomorrow. Then you will be able to
       sleep, while he will not."

       "14.) Is the Central Bank system or are free banks more favourable to increase in employment and trade
       recovery? - On this question Hock already uttered prophetic words that sound like a judgment passed on the
       bank and currency crises of to-day: 'In the case of a monopolised bank, the State is bound to support it in
       critical times; furnish it advances; stand guarantee for it; twist the laws in its favour; grant it moratoria; and
       permit the notes, which it can no longer redeem, to continue in circulation, perhaps conferring on them a
       forced rate. The State is bound to do all this because, otherwise, the business operations of the country
       dependent on the Bank would be of necessity brought to a standstill. With a system of free banks, the
       collapse of a bank passes unnoticed, and is dealt with as objectively by the law as the insolvency of any
       other firm. In the grave trade depressions of 1837 and 1857 many North-American banks repeatedly
       suspended payment. However, after scarcely a year, the traces of these events had been obliterated. New
       banks were established or the old ones rehabilitated themselves, and business became brisk again. In
       Austria, on the other hand, the suspension of payments by the National Bank led to the most deplorable
       interference of the State with private enterprise and caused a long-continued paralysing fluctuation in the
       currency.' (Shortage of foreign exchange! the author.) (Quoted from Leopold Lasker, Bankfreiheit (Free
       banking), 1871, p. 66.) Who can deny that this represents a pregnant description of conditions to-day?..." -
       Rittershausen, ibid. This book was written during the large economic crisis in the early thirties and has been
       reproduced in German in PP 347/48 and in English in PP 41.)

In the French countryside, still in the 19th. century, people used to issue IOU's for al their internal payments and
once or twice a year presented them mutually to cancel them out. Thus they had then only to pay the balance which
remained after this clearing. They did so either in cash or, often even issued even this merely a new IOU towards
the next settlement. It is quite obvious that to the extent that people can issue and pass their own exchange media,
they become thereby independent from monetary policies of the central bank.

Arthur Kitson, in "The Money Question", London, Grant Richards, 1903, wrote on pages XXI/XXII:

       "If this work should in any way lead to a reconsideration of the laws under which the greatest and most
       dangerous monopoly of the ages is maintained, and by which millions of men are doomed to suffer
       inevitable failure - if it should assist in freeing money - that most useful and ingenious of all human
       inventions for facilitating commerce- from legislative restraints, and thereby emancipate industry from the
       bondage into which legislators have placed it, the object for which this book was written will have been
       fully accomplished."
In chapter XIII, Money Supply and Demand, page 143 ff he wrote:

       "The result to which economists are naturally led involves an extraordinary contradiction, viz., that
       exchanges must be limited to the supply of money. This is what is implied by the expression "over-trading".
       This is surely a reversal of the natural order of things. What would be said of a theory which propounded
       that the amount of land cultivated should be governed by a certain limited production of agricultural
       implements, or the volume of railway traffic by the production of locomotives, or the road transportation of
       the country by an artificially regulated supply of horses? And yet such propositions would be wisdom itself
       compared to that of allowing commerce to adjust itslf to a legally restricted supply of money. Experience
       has taught us the wisdom of allowing the production of commodities to be limited only by the wants and
       needs out of which their production arises. Thus, the production of agricultural implements is governed by
       the demand which arises from the cultivation of land, and the production of locomotives is controlled by the
       demand arising from transportation, and so on.
       SINCE ALL INDUSTRIES ARE DEPENDENT FOR THEIR EXISTENCE ON MONEY, IN SOME
       FORM OR ANOTHER, THE AMOUNT OF MONEY ISSUED SHOULD BE GOVERNED WHOLLY
       BY THE DEMAND ARISING FROM TRADE AND COMMERCE...."

A letter in The Daily Telegraph of 11.8.60 reported:

       "I remember some time after that a horse-drawn tram which ran from Newtown bridge to St. Peters. Tram
       tickets, narrow and oblong in shape, could be purchased at some shops and agencies for 1d each or for four
       for 3d. If I recollect rightly, they bore a bluish imprint. Frank Podesta, who ran an eating house for the
       youth of Sydney in Rowe Street, accepted these tickets in lieu of cash."

Such small instances of the horse and buggy age can be applied today, if you understand the principle involved,
here the readiness-to-accept by the tramway and a restaurant. Because of their very simplicity such examples show
off best the principles involved.
The central bank is not only a powerful means to carry out the current "economic policy" of the government, from
an extreme credit restriction, causing large-scale unemployment, over Keynes' slow inflation to a galloping
inflation. It is, besides, a means of oppression, too, and totalitarians know this and use it as such: When in June
1953 there were riots and strikes against the East German communist regime and its Soviet backers, one simple
means, used to subdue them, was to refuse to supply the exchange media required for wage payments to these
districts. This, perhaps more effectively than Soviet tanks, stopped the resistance. One can relatively easily destroy
a Soviet tank or can induce its Russian crew (or crew from any of ca. 115 nationalities under Soviet rule) to desert
and many know how this could be done. But at least none of these freedom fighters knew or bothered to inform
himself on how to organise the necessary exchanges without the aid of the government's central bank. Even now
probably none of them has shown any interest in such questions.

Lenin was not only an expounder of wrong theories but also a practical man. As one of the first revolutionary steps
he ordered the occupation of the central bank in Petersburg. With this he had practically won the revolution.
Whenever the leaders of the dissenting parties wanted a credit or even cash to pay their secretaries with, they had to
come crawling to him. The Social Revolutionaries did outnumber the Soviets - but they had not out-thought them
in this sphere. Have you?

I possess a newspaper report about a German student couple, who, though all the time short of cash, nevertheless
wanted to make their friends some worthwhile presents for Christmas. What did they do? He was a bit of a
handyman and so he presented service certificates for his time, to be redeemed during the next months, according
to the needs of his friends. For one he repaired a bicycle, for the other he chopped wood, here he put up curtain
rods, there he repaired taps, etc. She offered, in the same way, her time as a baby sitter and for other household
chores. These presents of both were very welcome to all recipients, more appreciated than most other presents they
had received.

An ideal clearing system would allow even individuals to circulate their own individual means of exchange, thus
creating a demand for their labour. Naturally, they would then have to accept their own IOUs in their pay-packets.
They would have got the corresponding values already when they issued these individualized money tokens. Does
not this example show clearly enough that there is no danger of inflation being caused by such issues?
Naturally, in the meantime, one should rather rely on voluntary associations for payment purposes, associations
that issue more widely known and usable means of exchange, like, for instance, the goods warrants of associations
of local shops.

South American mines used to pay their workers in "fichas", redeemable in the well supplied canteens of the
works, where they could usually purchase their requirements cheaper than in the outside. A further advantage was
that these certificates were not inflated - while outside of this private payment community an inflation might be
raging.

In 1964 Grace Bros, Sydney, to avert a strike, accepted a wage increase claim and agreed, with J. D. of the Labour
Council of NSW, to pay the increases in purchasing certificates (shop currency of Grace Bros), redeemable on
demand in all goods and services of Grace Bros stores. This large chain of department stores thereby overcame a
liquidity shortage which would have resulted from a strike postponing the opening of the giant Roselands shopping
arcade, then being built. The building workers were considering going on strike for higher pay. In all their financial
estimates Grace Bros had relied on large taking from the opening day on, which was only some months away. "For
important industrial reasons" I was refused further information on these issues. Probably the participants had
afterwards realized that they had left themselves open to legal penalties on such self-help actions.

Does workers' control of a central bank make sense? Should the workers somehow try to control the central bank?
Could they possibly use it to their benefit or should they rather destroy or close it and establish their own private or
cooperative payment communities? Instead of a comprehensive answer. let me quote from a review of Prof.
Rowan's speech on central banking, a review published in The Bulletin, 19.9.1964, some remarks on a central bank
manager:

       "He is certainly a most frustrated one. It turned out he is a prisoner from the exclusive cell of monetary
       policy, where he admits to serving a long-term sentence since economic teaching first arrested him...
       "Rowan's main complaint about monetary policy is that it works too slowly. He thinks the interest rate
       changes you make to halt a rise in inflationary pressure only really start working when the boom is over, by
       then it is time to reverse them to stop the economy running too fast downhill. It is the same with
       quantitative credit restriction. The word goes out from the central bank to the trading banks to curb
       advances. Advances go on rising all the same, as happened here in 1960 when Rowan believes monetary
       policy was ineffective in stopping the boom. Fiscal measures were only adopted after the boom was well on
       the wane, and this led on to a recession which he reckons cost us 350 million pounds in G.N.P.
       "How slowly does it work? In his view, there is at least an interval of four months before applications of
       monetary policy bite and he considers they can take anything up to two years to have much effect..."

Naturally, not only inability but ill will is also involved: With regard to the inflation-making powers of the State
(Legal Tender, combined with the note issuing monopoly ), an Austrian minister of finance once said:

                              "The State never goes bankrupt. Only its creditors do!"

Cheques are still means of payment without legal tender. Try to cause an inflation with your cheques!

Monetary despotism, in form of centralised and monopolised note issue, is already very old in some countries.
Herbert Franke: "Geld und Wirtschaft unter der Mongolenwirtschaft" (Money & Economy under the Rule of the
Mongols), Harrassowitz, Leipzig, 1949, quotes on page 105 an instruction of the central government, issued in
September 1341:

       "Recently the owners of brothels, wine-houses, cafes and baths have repeatedly produced token money out
       of bamboo or wood tablets or paper and have brought them into circulation with a discount against
       paper-money. This infringes the currency law. These certificates were only accepted in the issuing store for
       wine and could not generally circulate in the streets and markets. It has, therefore, been decided that all
       these superfluous bamboo and wood tablets or tickets are prohibited...."
       "The regulation of 1294 runs similarly. Because of the shortage of low paper money denominations in
       Kiang-nan, the population had issued purchasing certificates for tea, flour, bamboo and wine and circulated
       them. Even then offices and private citizens were prohibited to accept such certificates or to pass them on."
Well, judge for yourself: If these certificates would have been superfluous, would they then have been issued and
accepted, even at a discount and although their acceptability was as limited? I believe that the local currency
shortage must have been considerable to induce them to widely accept as limited and imperfect tokens.

One relatively recent example of ending a crisis caused by monopolised and centralised banking, by breaking or
by-passing the law, has been described in DeWitt Warner's "The Currency Famine of 1893", published in "SOUND
CURRENCY", 15.2.1895, and again in 1896, also in Peace Plans No. 9:

       "The experience of August-September, 1893, was unique. There were no gradually developed plans for
       mutual assistance. Mutual helpfulness there was in plenty between individuals and localities; but it was in
       prompt response to sudden appeals; and before any general system could be devised, the occasion for it was
       over. Financial clouds had long been lowering; but it was within a single month that currency famine
       became general, its worst effects felt, such relief extended as was had, and the crisis over, with a tendency
       toward a glut of circulating medium.
       In other cases nations or communities had simply found themselves thrown upon their own resources. Our
       people found themselves not merely drained of currency, but forbidden by most carefully drawn statutes, to
       utilize the expedients which would have been most natural and effective. No civilized nation has ever
       experienced such a currency famine. None ever so promptly rose to the emergency. Never was there so
       prompt a return to normal conditions..."

He brings details on the clearing house certificates, privately issued, with which they helped themselves and then
he concludes with the remark:

       "Such was the crisis of 1893, a situation brought about by the wanton interference of Government with
       business not its own; aggravated by legislation which had to be broken before the people could help
       themselves; relieved by enterprise overriding and evading restrictive law; and turned into a theme for the
       gaity of nations by the grotesque exhibition thus afforded of how depraved was the elaborate bank note
       currency system, upon which had been lavished so much of thankless labor."
One other absurdity of the monopolided and centralised banking system is that it makes possible inflation and
deflation at the same time. Let me quote von Beckerath, "The Practical Realisation of the Milhaud Proposals", p.
79:

"...But our example also suggests that the centralised issue of forced paper currency may well lead to inflation in
one portion of the economy whilst another portion is at the same time severely suffering from deflation. The
coexistence of inflation and deflation (only recently named "stagflation" - J.Z. 10.3.85.) is, indeed, symptomatic of
the economic life of all countries issuing forced paper currency. (Already Adolf Wagner noted this in 1868, in his
"Die Russische Papierwaehrung" (The Russian Paper Currency), p. 13.) In our time Dr. Rittershausen seems to
have been the first to direct attention to this. (Neubau des deutschen Kreditsystems - Reconstruction of the German
Credit System - Berllin, 1932.):

       "The supply of a country with means of payment may also be compared to the supply of a large and hilly
       park with water. If the gardener is restricted to using only one large and fixed water pipe, then it is
       inevitable that the hills should remain dry and the valleys become swampy. Today, the central banks of
       issue of all countries typify by their very existence such a pipe and are, therefore, a serious obstacle to
       finding work for the unemployed. They ought to disappear, not excepting the 250 years old Bank of
       England."

Inflation in its stagflation aspect, has been well defined in the following saying, source presently unknown:

                " a condition where all have not enough money because everybody has too much."

(In other words: Too much of the wrongful and harmful kind of money exists, that of monetary despotism, while at
the same time sound money, that of monetary freedom, remains suppressed. - J.Z., 28.12.02.)

On pages 80-80 of his third book:"Public Insurance and Compensation Money", Beckerath pointed out very well to
what extent monetary despotism was responsible for the terrors, continuance, wars and finally the failure of the
French Revolution. Perhaps there exists no better short description of the monetary factors involved in making
history.

The most carefully worded legal restrictions against private money issues can probably be found in the German
legislation. But these restrictions of almost all nations are much severer than most people imagine and are,
therefore, worth perusing.

Many monetary reformers object against all interest as "usury". I do not agree with them because I consider it as
rightful reward for labour, capital considered as pre-done, accumulated labour that has not yet been rewarded.
However that may be, you may be induced to think about this problem by the following story by Robert Graves,
quoted in ENCOUNTER, June 64:

       "I never lend on interest, or even on security to a close friend; but neither do I raise an outcry like the
       Moslem widow who discovered that the money she had put into a bank was yielding interest. The manager
       explained that interest, though forbidden by the Prophet, was inseparable from banking; and that she could
       always give hers to the poor. "No," said she, "It's not mine to dispose of. Y o u give it to the poor!" -
       "Very well, madam, name your charity, and send me a written authorisation for the transfer." Thereupon
       she shouted: "How can I authorise you to dispose of what I am forbidden to acknowledge as mine?"

Benjamin R. Tucker stated in "Individual Liberty":

       "For, say Proudhon and Warren, if the business of banking were made free to all, more and more persons
       would enter into it until the competition would become sharp enough to reduce the price of lending money
       to the labor cost, which statistics show to be less than three-fourths of one per cent. In that case the
       thousands of people, who are now deterred from going into business by the ruinously high rates which they
       must pay for capital with which to start and carry on business, will find their difficulties removed. If they
       have property, which they do not desire to convert into money by sale, a bank will take it as collateral for a
       loan of a certain proportion of its market vallue at less than one per cent discount. (A very bad foundation
       for the issue of notes! - J.Z., 10.3.85) If they have no property, but are industrious, honest and capable, they
       will generally be able to get their individual notes endorsed by a sufficient number of known and solvent
       parties; and on such business paper they will be able to get a loan at a bank on similarly favorable terms.
       Thus interest will fall at a blow. The banks will really not be lending capital at all, but will be doing
       business on the capital of their customers, the credits of the banks for the unknown and unavailable, but
       equally good credits of the customers, and a charge, therefore, of less than one per cent., not as interest for
       the use of capital, but as pay for the labor of running the banks. This facility of acquiring capital (He does
       not distinguish savings and note issuing banks. Interest for both would be quite different. - J.Z.) will give an
       unheard of impetus to business and, consequently, create an unprecedented demand for labor, - a demand
       which will always be in excess of the supply, strictly the contrary of the present condition of the labor
       market. Then will be seen an exemplification of the words of Richard Cobden that, when two laborers are
       after one employer, wages fall, but when two employers are after one laborer, wages rise. Labor will then
       be in a position to dictate its wages, and will thus secure its natural wage, its entire product. Thus the same
       blow that strikes interest down, will send wages up. But this is not all. Down will go profits, also. For
       merchants, instead of buying at high prices on credit, will borrow money of the banks at less than one per
       cent., buy at low prices for cash (Because credit will then be easily available, cash prices will then not be
       considerably lower! And the part of interest in the retail prices amounts often only to something like 1/2 to
       1 % . - J.Z.), and correspondingly reduce the prices of their goods to their customers. And with the rest will
       go house-rent. For no one who can borrow capital at one per cent, with which to build a house of his own,
       will consent to pay rent to a landlord at a higher rate than that. Such is the vast claim made by Proudhon
       and Warren as to the results of the simple abolition of the money monopoly."

Proudhon, in "Bekenntnisse eines Revolutionaers" (Confessions of a Revolutionary), S. 295:

       "Create free credit, a credit which guarantees to every producer solidarity, working tools and sale of his
       products and the authority, the rule of man over man, will become impossible in all its forms and in all its
       various degrees."

Did even this assertion fail to induce you to want to check up why he came to this conviction? Remember, he was
the first to openly call himself an anarchist.

John Henry Mackay, in "The Anarchists", p. 153 said:

       "If the monopoly of money would fall, the arbitrarily established privilege to create an exclusive currency,
       then the State would fall and there would be free scope for all transactions among human beings."

Isn't this another assertion that is worthwhile exploring for its veracity?

                                                *******************

I made at this stage a note that if time were still available after this talk, then I should give a short introduction to
Dr. Walter Zander's brochure on Railway Money and Unemployment.

The above was retyped today, with minor changes and additions. I think the talk was begun, in the Oxford St.,
Sydney anarchist centre, but never completed, for lack of interest among the listeners. This experience and their
later drug involvement helped to turn me off this crowd. - J.Z., 10.3.1985.


JZonLETS160393

RESEARCH CENTRE FOR MONETARY AND FINANCIAL FREEDOM
  35 Oxley St., Berrima, NSW 2577, Australia c/o Secretary : John Zube, tel. (02) 48 771 436

                      An OPEN LETTER ON "L E T S", by John Zube, 16 March 1993,
                 ==========================================================

to Michael Linton and his supporters, on the occasion of Michael Linton's visit to and talk at Bowral Memorial
Hall.
Alas, only a week ago, through an meeting notice in a Bowral bookshop, did I finally hear for the first time that a
local LETS existed, already since 1989 and then, by a phone call, that seminars were to follow this meeting in the
Blue Mountains and that the local LETS had gained so far ca. 100 members and that by now over 130
LETSYSTEMS exist in Australia.

I can imagine Michael Linton and his supporters as being rather proud of and busy with them, too busy in most
cases to discuss with me the position of LETS within a general movement towards monetary freedom as opposed
to monetary despotism or to read study and discuss other monetary freedom writings and proposals.

However, there might be a few who are interested in theoretical and practical, legal and illegal monetary freedom
options, including generalised clearing systems, which would amount to large scale monetary reforms or even
revolutions and that could fully cope with depressions, mass unemployment and inflations, not only gradually, over
many years, but very rapidly.

My PEACE PLANS series, published since 1964, and since 1978 exclusively on microfiche, under the label of
LIBERTARIAN MICROFICHE PUBLISHING, has by now reached 1,066 issues. It has gathered and published,
among other items, more monetary freedom writings than anyone else has ever published before. Its listing of such
titles comes to over 55 pages, and the beginnings of its bibliography of such writings comes to over 124 pages. An
alphabetized handbook on monetary freedom options is in the works. Some LETS writings and leaflets are
reproduced in my series in issues 564, 740, 741, 787 & 1,000. I enclose a flyer of ca. 1980, which lists some of the
early monetary freedom writings in my series.

While I am delighted that LETS experiments do take place, even locally, I am not satisfied with their scope and
growth potential as long as they are confined or legally have to confine themselves to the exchanges of some
private household goods and services and do not penetrate into the major exchange channels of the economy: the
general labour market, businesses, factories, shopping centres, inter-state and international trading. On the basis of
doing rather something than nothing at all, it is acceptable, if only its present limitations are seen and full monetary
freedom options are kept in mind and striven towards in this and other ways.

Monetary freedom would mean the realisation of certain basic monetary rights: the right to issue private notes
subject to free market rating and voluntary acceptance, the right to clear one's debts against one's ready for sale
assets and service potential, the right to choose a standard of value for one's contracts, the right to associate with
others to form note issue and clearing centres, the right to refuse to accept at par or altogether the notes and
certificates and standards of others, when one has not contractually obliged oneself to accept them, the right to pay
taxes, rates and dues in one's own notes or clearing certificates - at their market value.

That would mean, among other things denationalising or privatizing money, clearing and credit, i.e. doing away
with the legal tender privilege and the other monopoly and licensing and directive powers of the Reserve Bank of
Australia and doing away even with the constitutional, legal and juridical powers of the government in this sphere,
which have been systematically abused for all too long. Monetary, clearing and currency functions would
practised, instead, by free private or cooperative enterprises, many decentralized and some centralised ones,
peacefully and honestly competing and cooperating with and supplementing each other with their note issues and
clearing services. Volunteers and among themselves could retain or re-establish whatever central banking functions
they still believed in and wanted for themselves. But they would no longer possess despotic powers over dissenters.

These private or cooperative enterprises and their issues, accounts and credits would be kept in check by
competition and publicity in the widest sense, e.g. by voluntary membership, refusals to accept them, their mutual
clearing returns, free market rating of their accounts, notes against their own and other value standards, by
competition between different and freely chosen value standards and the pricing of goods and services and labour
in them, and by full publicity ( including open books ) for their market rates and the details of their issues and of
the cover and reflux arrangements for them. As much as possible and desirable of such information could and
should be expressed on private coins and notes themselves. Naturally, each issuer of tokens, coins, notes and
accounts would have to accept the own issues at any time at par, no matter how much discount they might have
suffered in general circulation.

Such a monetary freedom system could currently be more freely played in just a game rather than in practice. Such
a game could develop the knowledge and skills required from the participants, who have still to become monetarily
emancipated, after having spent so long in a monetary kindergarten with compulsory attendance. This nursery is
conducted by a government which at least in this respect is not benevolent and provided disservices rather than
services. Nevertheless, sound and honest alternatives being outlawed, and any money being better than no money
at all, in a society dependent upon monetary exchanges, we have still to use the monopoly and forced currency of
them government for our monetary transactions, until we can finally free ourselves from these chains, too.

At least ever since Frederic Bastiat coined his famous phrase: "Society is exchange", we should have doubted and
questioned the role of government in this sphere.

LETS members definitely believe in self-help attempts. The question is only whether they are or are willing to go
far enough in this direction. The fact that they accepted government handouts to finance the jobs of permanent
coordinators, makes me doubt that. And the fact that governments were willing to support them makes me doubt
that governments see in LETS a serious challenge to their monetary monopolies and powers.

The rightful core of all private and competitive clearing attempts is the essential function of all monetary
exchanges, whether carried out by tokens, coins, notes, clearing house certificates, account books, credit cards or
electronic signals and screened accounts only. Via free and competitive clearing all sales of wanted goods, services
and labour could be achieved in a free market and a free market would send sufficient signals, through its free
pricing and publicity, so that as a rule only wanted goods, services and labour would be offered, at market prices.

Free clearing does not need any government assistance or guidance. Government would merely have to get out of
the way and so far it has not been willing to do so.
Under fully free clearing, facilitated by private and competitive note and coin issues, at least for all minor
transactions, like buying your newspaper, there would be no involuntary mass unemployment or sales difficulties
for useful and wanted labour, services and goods that are wanted by some at market prices. All debts and credits
would balance each other and could be cleared.

The closer any system would come to this generalised free clearing ideal, the more liberating and valuable it
becomes. The more it is kept back from this ideal, the less it will enlighten, emancipate and serve.

Like any other experiment, LETS, in its present forms, has its limits, conceptual and customary ones, and,
unnaturally, legal ones. These limitations ought to be explored and resisted. As it is conceived and run now, we
should not expect an end to depressions and involuntary mass unemployment and inflations from it.

At a time when there are over a million unemployed in Australia, even constitutional and legal prohibitions could
be safely ignored in self-help attempts by these unemployed, their family members and friends and sympathisers, if
they bothered to fully inform themselves of their monetary freedom options and used them systematically, well
informed and very rapidly, shortly before the next election, supplying themselves with labour and sales, within a
few days, in some cases within hours (monetary freedom does have that potential), taking themselves thus of the
rolls of unemployed and of social services and of other subsidy benefits and becoming taxpayers again. Would any
politician then dare to enforce legal prohibitions against their self-help provision of full employment and normal
and booming sales, render them unemployed and bankrupt and punish them for their self-help measures? Could
any politician gain votes thereby or would he have, rather, a full rebellion on hand then, in which even the police
and the armed forces would take the side of the self-help efforts of the people? Obviously, our politicians are at
least sensible enough in such a case to try to become rather spokesmen for such a movement and to legalise it
retrospectively as fast as they can, with full amnesty and even praise for all former breaches.

Alas, we are still very far away from the enlightenment required for such a degree and extent of self-help. But
there is no law against enlightening ourselves to that extent. But that requires sufficient interest and persistence in
such studies. Of this there are as yet all too few signs. Some modern academics have seen the light and some more
or less primitive and more or less computerised barter exchanges have spread and turned into business enterprises
and have been tolerated by governments by and large, apart from their tax impositions. But they are a far cry from
monetary freedom in theory and in practice. Even when they turned into successful businesses for the participants,
they did not cope with the general depressions, mass unemployment and inflation.

A number of monetary freedom experiments, on a small scale, have also taken place, but always fearful of legal
prosecution and, therefore, could not appear and grow openly and freely. Without full publicity no free market can
fully function.
Coming back from my dream to yours :

How do the local LETS transactions compare with the turnovers now already achieved in black market
transactions, with exchanges arrived at via second-hand stores, garage sales, charity sales and markets, bulletin
boards in shopping centres, classified ads in local papers, within friendship-, family- and neighbourhood circles
and those of fellow workers? Do they add much to these?

How much? Are they easier than these exchanges or rendered more formal and thus more difficult?

Obviously, the present LETS would function better if many employers, unions, shops and banks did participate.
But why should they and could they do so legally or without risk of legal prosecution, at this stage? Why should
any of the numerous local and large scale goods and service suppliers want to become involved with LETS, even
assuming that legally they could do so?

How could they benefit from the listed offers? Obviously, LETS members could and would like to benefit from
their offers, e.g. the offers of Coles and Woolworth and Payless shops. But what would get the owners of these
shops get out of it except claims against the very limited offers now made in the LETS listing?
The very able, efficient sellers of goods and services and labour get all too little in return from these circles and to
that extent they are unwilling to participate. And if they offer very unusual items, like I do, with freedom and peace
and justice literature, mainly on microfiche, they could most likely, achieve no sales at all from their membership
and, like myself, might also have no use at all for any of the limited offers in these circles.

For supermarkets and shopping centres and associations of small shops it would make much more sense if they
mobilised their stocks of goods and further short term delivery potential, much more directly, via their own tokens,
goods warrants, purchasing certificates or credit notes - if they could legally issue them or risk their issue. Such
certificates would also be gladly accepted by formerly unemployed or presently employed, in their salary or wage
payments, for at least part of these income sources.

The ready for sale consumer goods in the shops of a country are the essential operating capital, without which the
fixed medium and long term capital of a country cannot be put to use. The present system does not fully mobilise
this capital, far less use it for wage and salary and tax payments. Imagine how gladly shops and shop associations
would like to see their notes used in this way - for such use would assure them of corresponding sales, when these
notes stream back to them for their "shop foundation" cover or redemption. If they could pay their suppliers and
their wages and salaries and taxes and utilities and rents with them, their sales problems would be over and they
could employ more people.
How many people would refuse such notes or accounts or clearing certificates or credit cards, if their issue and
reflux is honestly and publicly administered?

So far this option has been legally touched but not covered only via gift certificates and shop currencies. The latter
may be issued only in consumer credit transactions. Both options could be rapidly expanded for use as wage
payment means. Mutual acceptance and clearing of such issues could be rapidly agreed upon for a transition
period, until one or several local currencies and issue centres are agreed upon. However, it appears to me that such
issues would first have to break a barrier of thinking and practice which LETS members seem to have set up
among themselves, quite apart from the legal barriers that exist for them.

How many thousands of millions of dollars could NSW shops mobilise in this way for short term credits to pay
wages and salaries with? How many millions of dollars could thus be mobilised within the local Mittagong, Bowral
and Moss Vale (NSW, Australia) shopping centres alone? Perhaps some local bankers and shopkeepers and
accountants could give us an estimate?

Why should any supermarket or shop or service supplier participate in LETS when they could issue themselves
more efficient, useful and acceptable clearing house certificates or goods and service vouchers - if only they were
free to do so?

Anyone who has regularly many payments to make and to receive could act as an issuer or as a clearing centre. Bus
companies and taxies could issue their own money, as could the railway. The gas and electricity supply companies
could and so could an association of the local landlords. The local lawyers and physicians and tradesmen could
issue their service vouchers or credit notes. The local government could for its rate, fees and dues payments. The
NSW government could for its registration fees, dues and taxes and the Federal Government for its income and
other host of taxes.

One could even argue that any potential issuer should issue his own notes or clearing certificates rather than
depriving other circulation spheres of their exchange media. Issue of notes and clearing as a duty, not only as a
right!

If freed, pretty soon local banks, established as note issuing centres, would tend to unify and simplify issues by
discounting many different private notes, not easily acceptable to many local people but well enough known to the
banks, replacing them largely by their own private banknotes and current accounts, guaranteed and insured by them
and likewise limited by free market rating, voluntary acceptance, mutual clearing and publicity. Naturally, none of
these banks should be granted even a local monopoly.

So far there is competition only between credit cards and cheques - and voluntary acceptance for them. Alas, both
are tied to the Australia-wide monopoly money of the Federal Government, as managed by its central bank, the
Reserve Bank.

If present bankers turned out to be too narrow-minded for this, soon one or the other businessman would set
himself up as a local banker, operating on the "real bills doctrine", discounting or exchanging his more general bills
in handy denominations for the less general sound commercial bills and other short term debts and their
corresponding token money issues of other local businessmen. The market would diversify and unify the issues as
much as would be required by the participants. Monetary history would repeat itself. Solutions would not always
come from the supposed experts but often from those considered to be outsiders and laymen.

If such issues were legally possible or illegally, but successfully practised, for the transition period towards their
legalisation, most LETS members would, I believe, rapidly switch over to them or would become involved in
establishing one or more general clearing houses in the community, issuing clearing house certificates or accounts
and paying and dealing with them. They would change from thinking small to thinking large.

As it is, I can see in LETS only a very limited but, nevertheless, valuable experiment to partly escape the disastrous
consequences of monetary despotism. But, does it have, apart from the general clearing idea that it employs in its
limited sphere, the inbuilt potential to grow without limits - except those posed by competition, voluntary
acceptance, market rating, publicity and mutual clearing - into a general local currency for all local transactions?
(Possibly in competition with some other local currencies.)

Does it cut or even threaten to cut the roots of monetary despotism? Or is it considered quite rightly, by our
monetary despots, as merely a harmless and tiny self-help attempt among the victims of monetary despotism,
providing them with some further illusions to go on rather tolerating than fighting monetary despotism?

Would perhaps merely preparing an playing a game of full monetary freedom be more efficient in tackling the
ideas and practices of monetary despotism than this limited practice of mutual clearing?

Or is LETS to be considered as essentially merely a game, with some limited fringe benefits for the participants,
like e.g. membership in APEX or ROTARY or LIONS or FREE MASON clubs is?

And is LETS membership as limiting to the horizons of full social and exchange liberties as such memberships
tend to be?

There exists a rich tradition of monetary freedom ideas, experiments and writings. Alas, it is largely unknown and
inaccessible to most people in most places. My libertarian microfilming efforts attempt to bring as many of them to
the light, at least of microfiche reading machines, as is possible for one person to do, as cheaply and permanently
as this medium allows.

If LETS members want to get out of the kind of narrow corner they seem to have painted themselves into, and want
to explore and finally practise the full range of monetary freedom options, then they should, between them, collect,
study and discuss the full range of such writings and ideas and experiments. Between an estimated 10,000 members
in Australia alone, they would have the human resources potential to do so. But whether they are interested in to
explore this option remains to be seen. If they have merely the activist mentality for some limited actions, like
marchers and demonstrators, they will never get very far, even if they should be as successful, as businessmen, as
e.g. the members of the WIR Wirtschaftsring have been in Switzerland, since the 1930. My father was one of its
originators and tried to establish versions of it, involving banks, in Germany, after WW II.

I would like you to start pondering not so much what other all too limited offers you might add to your listing but,
rather, what general "readiness to accept" foundations and issue and reflux options you seem to have systematically
omitted with your current LETS systems, e.g.: shop foundation, tax foundation, utilities foundation, petrol and
transport foundation, wages and salaries foundation, general debt and clearing foundation, bank acceptance
foundation. All these spheres are now monopolised by monopoly money.

With a few limited private clearing exchanges practised and fully free clearing and monetary freedom not fully
envisioned and demanded, the powers, wrongs and harms of monetary despotism cannot be defeated, nay, they are
not even challenged.

When all one's efforts are concentrated only on one limited kind of experiment and thus experimental freedom in
this and other spheres is not seen as the ideal, i.e. when one does not adopt a policy of appreciation for or tolerance
of other monetary and clearing experiments, then the own experiments will tend to have only limited and
temporary successes, too. We cannot become rich by taking in each other's dirty linen for washing. We cannot
become free in our exchanges by leaving out of our private planning and actions our main bread earning activities
and confining our freed exchanges only to hobby and spare time job activities.

I hold that e.g. the Australian shop currencies are much more promising examples and so was the suppressed bank
note issue of the Duke of Avram in Tasmania and the issue of Grace Brother's shop currency to satisfy unionist
demands for a wage increase when they built the Roseland Shopping Centre in Sydney.

Peter Sawyer told me also, in a public meeting in Bowral, several years ago, of an underground IOU exchange and
clearing system somewhere in Queensland, in which supposedly 14,000 people participated already then. Further
details were not given to me because of fears of legal prosecution of such freed exchanges.

I hold further that even the token money issues of general stores and the truck shop tickets, outlawed for centuries,
were more promising in their development potential than the present LETS groups are.

Other potential issuers and clearing centres should not be simply asked to join the LETS schemes but, rather,
appealed to or instructed on how to mobilise and liquidify their own inherent assets. Gas companies could issue gas
money, electricity companies their own electricity money, petrol stations their petrol money, land lords their rent
money, local governments their rate currency, bus companies their bus money, restaurants and cafes their food
money, physicians and lawyers their professional service money, tradesmen their technical aids and service money,
etc. Most could be achieved, in one stroke, through local shopping centre money, starting perhaps with one or the
other supermarket.

Historically, even barber ships and brothels have sometimes issued their own notes and they served with others, at
least as "street money" if not local currency.

If I have not been informed upon further ambitions and plans for the LETS system for an expanded cover,
redemption, reflux and clearing system for it, one that could and would have a great impact on the general
economy, then it has not been for lack of searching on my side for any such signs and efforts.

By all means, do go ahead with your limited experiment, and I wish you more success with them, but do also
become aware of other legal and outlawed options towards monetary freedom and do at least discuss them among
yourselves or remain open-minded and tolerant towards them, instead of merely ignoring or condemning them.

We will be able to enjoy all the benefits of free enterprise and free exchange or of a truly laissez faire economy
only when all kinds of monetary and financial freedom systems can be practised freely and voluntarily by all their
supporters anywhere and anytime. That means we should not confine our efforts to asking them to join our systems
or to set up branches of our favoured system but, instead, they should make use of all their own issue and clearing
options, using any system that would suit them best.
Precisely the kinds of goods and services now offered or wanted within the local LETS are already pretty well
cared for by other exchange arrangements and precisely the goods and service exchanges needed most to overcome
depressions, unemployment and inflation, are most neglected by it.

Am I wrong in this evaluation?

Fans of total clearing exchanges, like Michael Linton and Conrad Hopman, tend also to overlook the essential
clearing function and nature even of coins and notes and that these tokens do often simplify and reduce the
accounting labour involved in pure and obvious clearing transactions. These labours are reduced to the counting
and handling of the holders, payers and payees, who do not need a common clearing house and monthly accounts
from it for their transactions. Compare how lines at cashiers are often slowed down when credit cards and cheques
are used instead of cash. Passing easily from hand to hand, notes and coins do bring about their own kind of
clearing automatically. No personal bias should lead one to exclude such efficiencies. To this must now be added
the advantage that cash transactions are less visible to the tax collectors.

Let us imagine that some person would be able to earn and spend all his income in green LETS dollars only and
that he would then be confronted by the taxation office with the demand to pay it a percentage of the total earnings
not in green dollars but in government dollars. Such a person could be driven into bankruptcy and condemned to
gaol for so supporting himself. Or, like formerly some natives were, in colonial empires, he would be forced to sell
his labour in additional labour hours, paid for with official government money only, just to enable him to pay the
taxes imposed upon him. To me this sample of an extreme success of the LETS system does also show its
limitations and its subjection to monetary and financial despotism.

We can agree, perhaps, on the above listed monetary liberties and some others and generally on self-help and the
freedom to experiment among volunteers, at the own risk and expense, and on full tolerance for such experiments,
regardless of constitutional and legal clauses and juridical decisions.

We could and should perhaps, at least seeing the present unemployment figures, agree upon a redefinition of the
right to work as the right of the unemployed to supply themselves with work, without depriving others of it, by
undertaking all the organisational, monetary and financial measures required for this purpose and to ignore all
contrary official regulations, laws, constitutional clauses and juridical decisions, because such a basic individual
right is involved.

To realize such a basic right, it might be required that individual regain the right not only to opt out from under
monetary despotism and become monetarily autonomous or sovereign individuals and voluntary members of
autonomous minority groups, under their own personal laws and contracts rather than under territorial constitutions
and laws - but that they gain the liberty quite generally to secede as individuals from despotic and even from
majority-democratic or republican States. Monetary freedom would be just one aspect of this general "panarchic"
freedom.

   PIOT (Panarchy In Our Times: meaning also monetary freedom in our times),
               John Zube.

(The negative response of the organisers to my leaflet distribution and the ignorance of and disinterest in monetary
freedom among the visitors and the delusions revealed even by Michel Linton, on the potential of the LETS
system, should perhaps be made the subject of another report - but so far I haven't bothered. He actually believed
that these computerised "garage sales" could be indefinitely expended to cover all wage and salary payments and
all consumer purchases in the shops. The penal legislation on the subject he simply ignored - because the
authorities had so far ignored his tiny experiments, turning over, per member, in the largest Australian group, by
then, only something like $ 5 to $ 50 p.a. He was only interested in signing up more members. He was not
interested in the fact that the local group's members had nothing of interest to offer to me and what I had to offer
did, obviously, not interest them or Michel Linton. He considered that fact to be irrelevant!

I had to leave most of my leaflets with the organiser of this meeting and he promised to enclose them in the next
mailing - but I doubt that he did. I never heard of that group and him again. - J.Z., 28.12.02.)
OBITUARY MonFree NL5
==================================================================================
An "Obituary" for: MONETARY FREEDOM! NEWSLETTER - and MICROFICHE, Nos. 1-4, Nov. 1986 -
February 1989, all too belatedly compiled, on 28 May 1994. R.i.P. Or, consider it as a "free" supplement,
MFNLaMF, No. 5, that marks a death and invites others to arrange for a resurrection.
==================================================================================

This newsletter on paper was, like so many others, merely a temporary paper tiger. (I do aim, among many other
projects, to provide an "honours roll", or should it be a "dishonours roll"? of defunct libertarian periodicals that
could easily have been continued, indefinitely, if only they had been converted to microfiche.)

It folded, after a short struggle, reaching only a first "volume" of 4 issues and a total of 24 pages on paper. (With
the microfiche issues the subscription entitlement was, on average, over 2,400 pages for a mere $ 8.)

A quarterly appearance had been intended. But it took 2 1/4 years to get merely 4 issues out and did not even
reach a dozen subscribers. In an age suffering under monetary despotism - that does indicate how small the
enlightenment on and interest in monetary freedom still is.

I'd rather write letters to as few people or simply refer them to my monetary freedom microfiche - if their interest
in monetary freedom is deep enough not to be deterred by this medium. I have received neither a monetary nor
other incentive to continue with this extra effort and expense. Luckily, right from the beginning, I had planned to
keep this experiment or pilot scheme as small and cheap as possible. So I photocopied only small batches of the
issues, as needed. If the newsletter had taken off and reached more than 100 subscribers and with more signing up,
I would have handed over this job to someone especially interested in it.

I cannot merely lay the blame on others. My kind of compilations and editorial efforts and style are not appealing
to most people, not even to most freedom lovers. Nor have I ever been very successful in marketing anything that
was of great interest to me. I should have foreseen that a sufficient foundation for such a newsletter, in form of
knowledge of and interest in monetary freedom theories, practices and possible and desirable developments and
monetary revolutionary options, has not yet been established and that a tiny newsletter could not establish them.

Not even a single handbook exists as yet on the subject that would have pulled together the many but all too
dispersed and obscure and inaccessible and o.o.p. writings on the subject. My beginnings of a monetary freedom
bibliography came already to 124 pages and was reproduced on microfiche PEACE PLANS No. 1022 but could so
far list only a fraction of such writings. Most who are somewhat favouring monetary freedom, at least to some
extent, were lucky to come across a dozen or two dozen writings of this kind and are thus usually stuck on one or
the other limited model of monetary freedom.

I am still working (occasionally) towards a more complete and an annotated monetary freedom bibliography and
towards the first edition of a handbook on monetary freedom, likewise, on an address compilation of all those
interested in this subject. They will, sooner or later, appear on microfiche and on disks, through me, and perhaps,
through others, on line.

If I could delegate the copying and mailing of such information on disks, then I would prefer that, too. It is so much
easier and cheaper to get duplicate microfiche automatically produced and just to insert a microfiche into a letter.

They will not be copyrights restricted, either. Any help towards them is welcomed. Anyone is invited to put this
and supplementary information into databanks and online and to produce paper editions of it, if he can manage
tosell them, at his own cost and risk.

My hope to publicise and sell more of my extensive sub-series on monetary freedom, in my general PEACE
PLANS series, through the circulation of such a newsletter, were, naturally, disappointed, too. However, this series
and subseries - and others - will go on, on microfiche only - with a standing invitation to computer buffs to make
use of this knowledge as best as they can, at their expense, with their favourite medium. I am not willing to take
their costs, labours and risks upon me, which they have so far declined to accept, but which they persist, I should
accept on their behalf.
In other words, they do not trust their own medium sufficiently to do the job that they want done or to publish their
computer books and magazines in their formats - but I should subscribe to and use only their medium and pay the
high costs of this high technology, so that they do not have to bother with microfiche, which they look, down upon,
snobbishly, although in this and other fields it has by far outcompeted computers and may still do so for many
years or even decades to come. Luckily, except for the government's "free" public libraries and general science
subsidies, they do not have the taxation power required to force me to fund their hobby activities, which they are
unwilling to fund themselves. So they neither keyboard in nor scan in the information they want to have supplied to
them, free of charge to them, or as cheaply as I can supply it on microfiche, into their computers.

Thou shalt recognize them by their fruits, not by their hopes, promises or prophecies. I wonder why they never put
down the use of pencils and scrap paper, too, for taking notes or drafting papers. Do they really express, indirectly,
and often unconsiously, a fear of an efficient medium, one that might threaten their paper sales?

In 1990/91, I was away on a collection trip, mainly in the U.S., which netted me 160 literature parcels of which
only 3 got lost. Much of them contained additional monetary freedom material. Outstanding among them are most
of the correspondence of Ulrich von Beckerath on this subject, and on related ones, since 1943. Most of his prior
correspondence must be considered as being lost, with most of his library, in an air raid on Berlin. But I still seek
photocopies of it from the few survivors, or their heirs, who may have preserved their correspondence with him.

From ca. 1913, to his death in 1969, he has more thoroughly than anyone else explored and described the monetary
freedom options. On many points he is still ahead of those few modern economists who, since 1974, have
somewhat explored this option, largely following two booklets on the subject by Hayek. Alas, neither he nor Prof.
Rittershausen nor Dr. Zander did get around to produce an alphabetized handbook on the subject. Based on less
knowledge and talent, I may have to tackle this job myself - unless someone else does it before me. (I can think of
at least 2 books I intended to promote or write but which were finally and successfully written by others. One was a
compilation of all the job options now open to young people, then maybe 100,000 different ones, now close to
400,000. The other was an ABC guide to the thoughts of Ayn Rand in her writings.)

Further contributions towards my monetary freedom series on microfiche are invited, on the usual basis: Only a
non-exclusive and revocable permission is invited for microfiching them. Upon revocation I would at most have
100 duplicates on hand, which I would still want to be allowed to sell to cover my costs. The microfiche master
would be handed over upon request. Copyrights owners could also insist that I notify them in the so far unlikely
case that I would succeed in selling, 200, 500 or even 1,000 microfiche duplicates of any of their contributions.
(Just to dowse their fears of "unfair" competition.)

This sub-series on monetary freedom, in my PEACE PLANS series, is already the most comprehensive publishing
effort of its kind, by number of titles and their pages - not by sales achieved. It will continue indefinitely as long as
I live. It will continue to be sold after I die and I may also find some people who are interested enough in the
subject and medium so that they will continue to expand this collection.

Since then I have finally come into possession of most of the essays of Laurance Labadie on monetary and other
freedom options. They will also appear, as soon as I can manage, on microfiche.

The latest monetary freedom titles, up to PEACE PLANS 1172, have not yet been included in my monetary
freedom bibliography in PP 1022 but they can be found listed in PP 1172.

I have many recent academic monetary freedom writings that I cannot, alas, risk reproducing because of copyrights
that are expressly claimed for them. One should imagine that their authors and publishers would have been
sufficiently informed and self-interested to make certain that they are cheaply and permanently available in this
format at least, through themselves, commercial microfiche publishers or me. However, the rational self-interest of
most people and their appreciation of freedom of expression and information options is rather limited.

Many others such writings are still stacked in boxes and I have simply not yet got around to ready them for
microfiching. Even with the labour and cost savings of micrographics one person can only do so much. If monetary
freedom advocates were active in this sphere, they would have microfilmed all such writings completely, long ago,
between them, listed them fully in bibliographies, abstracted, reviewed, discussed them, indexed them and refuted
all their remaining errors, prejudices and myths. They do have this freedom to issue and accept alternative media
and freely and fully exchange all their special information in this format. But, alas, they have not yet done this or
even established a single comprehensive monetary freedom bank (library) or clearing house service for their kind
of valuable and somewhat unitised information, for the whole world, far less one that could sell cheap microfiche
duplicates of each of its titles. They could undermine monetary despotism in this way - but have not even bothered
trying to do so. Nor exists there as yet a data bank or CD or even a collection of floppy disks on the subject. Why
not? Ask the computer fans.

With my MONETARY FREEDOM! NEWSLETTER - and MICROFICHE, I undertook to supply upon request 8
LMP microfiche of the subscribers' choice. That obligation continues towards my few subscribers, where it has not
yet been fulfilled, but I decline to make this choice for them and to dump, at my expense, any more unwanted
microfiche upon them, except the general LMP list in PEACE PLANS 1172, enclosed with some of this mailing
and the beginnings of a free banking bibliography on PP 1022. Why should I waste scarce copies upon those who
do not want and would not appreciate monetary freedom information in this format? Let them try to get it on paper
or on disk, on audio or video tape or online. Actually, I could supply these lists on disks but only a high price and
the labour associated with this would still bother me in spite of the high price that I would charge.

Even more than subscription monies, I would have welcomed written contributions to the newsletter or to my
microfilmed monetary freedom series. Some others have merely promised more such material - but have not yet
delivered it.

Michael Linton, founder of LETS, made an appearance for a speech and demonstration of his accounting system, a
while ago, here in Bowral, in the Southern Tablelands of NSW, my own neighbourhood (10 min. by car), trying to
gather more support for the local LETS group, then still operating without a computer, perhaps still. They strongly
objected to my attempt to distribute some leaflets on monetary freedom to the people who attended, arguing that it
would merely "distract" them. The LETS secretary finally persuaded me to desist and promised to deliver all my
leaflets to the signed up members. Either he has done it or not. Response was zero. I had wasted a day on writing
and photocopying them! I paid for and was promised a copy of their former newsletter - and am still waiting for it.

I raised some objections to Michael, which he did not respond to. Then I pointed out that none of the members had
goods or services to offer which I wanted and that I had none which they wanted. Nevertheless, he merely insisted
that I join. Why should I join for the sake of joining?

He expressedhigh and and almost unlimited aspirations and promises and predictions for his kind of computerised
"garage sale and babysitter exchange" (my description), which has spread in Australia as a result of a prolonged
depression, leading to more than 1 million unemployed. But one of the most successful LETS exchanges, in the
Blue Mountains area, with 6,000 assertedmembers, could only boast of an annual turnover of $ 30,000. That would
be much for one person but came only to $ 5 for the average member!

He ignored legislation that would interdict him from issuing wage payment means and currency that would be
suitable for general shopping in the local shopping centre. He somehow assumed that these spheres would simply
pick up his medium and would be free to do so. But it was interesting to find out from him that he had so far been
neither bothered by the Fed nor by the Reserve Bank of Australia. Only the revenuers troubled some of the
members and wrongly equated one of his green dollars in market value with central banking dollars. Thus even if
his system could be widely enough adopted, people would still be forced to charge partly in central banking dollars
to enable them to pay their taxes with them, even upon their "green dollar" earnings. If they earned only "green
dollars", then this tax demand for government paper dollars would drive them into bankruptcy.

His knowledge of and interest in monetary freedom theories and practices was rather limited - and that of most of
his followers and listeners was still much more so. He showed no interest at all in any of the monetary freedom
information that I have to offer. I expect no breakthrough from him and his circles, even if they become more
popular than they are already.

              "There is not anymore terrible sight to behold than ignorance in action!" - said Goethe.

In 1989 the DURELL JOURNAL OF MONEY AND BANKING started out in a very promising way, under the
leadership of Dr. John W. Robbins, who would have steered it into the direction of an institute, library and
seminars for the study of monetary freedom options, too and would have freely accepted articles on the subject for
the D. J. He even invited me to submit an article on the older monetary freedom advocates. However, I dallied,
being involved with x other projects, and before I could get around to this, he was already somehow "eked" out, as
I merely suspect, from this rich, $ 10 million foundation, by others, probably more skilful in power and position
grabbing. The best people rarely succeed in such struggles. As a result, and judging by the index of articles
published in the Winter 93 issue of this journal, its articles of some monetary freedom interest have already greatly
diminished, from 16 during 89 - 91 to a mere 2 during 92 - 93. Good luck to anyone trying to reverse that
development. The journal is supplied free to those who ask for it in the U.S. and for $ 10 p.a. to foreign addresses.
Quarterly, from the Durell Institute of Monetary Science in the Harry F. Byrd Jr. School of Business of
Shenandoah University, 1460 University Drive, Winchester, VA 22 601-5195. Tel. (703) 665-5432. Fax: (703)
665-5432. - Let me stress again, that I do KNOW nothing about its internal power struggle but that I SUSPECT a
lot merely from its change of staff and contents. The same could have happened under present conditions to any
other such institute and publication in any other country. The "Zeitgeist" asserts itself - no matter what ignorance
and misery and bloodshed it helps to support.

New countervailing institutions and channels have to be established or, like the microfiche path to liberty, have to
be fully and optimally used. Begin your freedom to issue notes and clearinghouse certificates etc. with your present
freedom to issue fiche containing monetary freedom information. Or, even with mere local tokens for the tourist
trade. I am contemplating such an issue for this village, a tourist attraction in a large tourist area.

Based on a former agreement with Dr. John W. Robbins, not yet revoked by the present executives, I intend to
reproduce its monetary freedom titles in my series and send them a few of my microfiche in exchange. But in
general I consider this as another great opportunity that was not taken up.

But there was one silver lining in that cloud. Dr. John W. Robbins is now the editor of THE FREEMAN and
another monetary freedom advocate, Dr. Hans F. Sennholz, is the current president of THE FOUNDATION FOR
ECONOMIC EDUCATION, Irvington-on-Hudson, N.Y. 105343, Phone (914) 591-7230, Fax: (914) 591-8910.
The "salt of the earth" working in what is probably the oldest continuously operating and explicitly libertarian (or,
rather, pro-freedom) think-tank (since 1946). It stresses and uses the educational approach. Something good is
bound to result from the combination of two such talents in that one spot.
Leonard E. Read, the founder, in all too general terms, was also a monetary freedom advocate. I had my first &
possibly last chance to visit FEE in 1990, browse through its library and copy extensively from its bookshelves.
Alas, many of its publications are o.o.p. and there is not even a complete listing of these. Nor did I have time for
their numerous 4 drawer filing cabinets full of periodicals and pamphlets. Typically, by 1990, it still had no
microfiche reader among its equipment.

It had attached to the FEE library the library of Henry Hazlitt. I had the chance to browse, also, through the FEE
office library of Rev. Edmund Opitz and the FEE office and the private library of Bettina Bien Greaves and
discovered, in the latter, some rare monetary freedom gems which I copied. Typically, these freedom libraries, too,
were short of most monetary freedom and many significant other and older freedom titles, thus indirectly providing
evidence of the need for libertarian microfiche publishing.

Are there many other institutions and publications which can boast of 2 as prominent monetary freedom advocates
among their members? Alas, FEE and its THE FREEMAN are largely dedicated to discussing freedom options
mostly only in very general terms, on principles. Important as such defences are, the techniques of monetary
freedom issues are thus unlikely to be discussed in THE FREEMAN, although they might be discussed, one day, in
detail, in one of its monographs. If only FEE took up the microfiche options, it could, soon, become the most
informative and, possibly, most influential and financial libertarian think tank. But like all too many others it
accepts the present situation in which most of its output is o.o.p. and remains o.o.p., for years, if not decades, in
spite of the microfiche self-publishing option.

One of my many "finds" during my long collection trip was: Richard M. Salsman's book: "Breaking the Banks:
Central Banking Problems and Free Banking Solutions", 171pp, published as ECONOMIC EDUCATION
BULLETIN, Vol. XXX, No. 6, June 1990, by the American Institute for Economic Research, Great Barrington,
Massachusetts, 01230, 1990. (Full or sufficient address.) I spoke with one of its executives, Robert A. Gilmour,
who wrote the introduction to that book. He promised to send me more issues and to bring about a decision on the
microfiching of this book, which sold ca. 15,000 copies so far, at $ 12 each. Self-costs, with in-house printing,
probably without labour costs and amortisation of equipment and printing shop, came only to 48 cents a copy.
Alas, I have not heard from him since. AIER, founded in 1933, belongs to the historical school of economics, as
opposed to any of the ideological ones. To learn from experience is its aim, rather than ignoring it in favour of one
or the other hypothesis or model. I gave him my free banking bibliography on disk, which he quickly got converted
to Word-Perfect, returning my disk. It has not led to a single order, though, since these people are also mainly
paper tigers - but as such more successful than most. Do the 15,000 sold copies indicate a strong interest in this
field or just a large circulation of this bulletin? The author is a practising N.Y. banker and, supposedly, was
ridiculed for this defence by most of his collegues, which, rightly, has not shaken his confidence in his research. I
would like to get his address.

Alas, I had no chance to browse through the central library of the American Institute for Economic Research or
through the many bookshelves attached to the working desks of numerous researchers assembled in one vast hall of
this Institute. If I had, I might have discovered many other treasures there. Nor did I succeed in getting the
catalogues of this or any other freedom library that I visited.
LeFevre's Freedom Academy library, now in private hands, was one of the very few that I saw, that was almost
completely catalogued in a databank. But the disk issue of it was not quite finished yet and I have not yet got it.
Anyhow, a twofold browsing through it did not reveal all that many titles that I was interested in and that I could
have included in my series. But, again, the filing cabinets contained many treasures, at which I got only glimpses.
But at least I could copy some years of LeFevre's columns. He was, by the way, and on general terms and by
supporting at least one monetary freedom experiment, also a monetary freedom advocate.
When will these columns appear? When I get around to them. Or did you offer to help me with such labours?

I had anarchists or libertarian hosts for 355 of 365 days of my trip, still seek a directory for such hospitality and do
welcome non-smoking, non-drinking, non-drug using anarchists and libertarians in my place, for a few days.

By the way, my second visit to the Freedom School library helped me to experience L.A.'s bus "services". One trip
took ca. 4 hours, across town, which, on the return trip, I managed to reduce to ca. 3 1/2 hours.
The main airport had no bus route and time table displayed. The information booth was simply closed during early
hours. Bus drivers misinformed me several times on supposed stops for busses to the other airport. Finally I found
out that this service had been discontinued and with some other victims had to hire a small combi van to take me
there. About 2 hours wasted.
In Denver I wasted once ca. 1 1/2 hours at a marked bus stop for one route, only to be finally told, when ringing up
the bus information centre, that this bus stop had been long discontinued!
Is the car industry the real sponsor of this "service"?
"Grand" Central Station in N.Y.C., without male toilet facilities and men urinating in the tunnels, did not greatly
impress me, either. As one of the excuses was offered that there had been hold-ups in the toilet blocks. Why can
pre-fabricated single-cell toilets only be commercially provided for outside sporting events? There are still some
people who imagine that a government, which cannot provide sufficient bus and toilet services could, nevertheless,
provide sufficient monetary and value standard services! Or that it could provide justice & prosperity and could
establish peace and a free society!

With my monetary freedom sub-series in my general libertarian PEACE PLANS series, published under the label
LIBERTARIANMICROFICHE PUBLISHING, I am not under time pressure associated with any attempt to
produce a periodical or newsletter. It was right from its beginnings, in 1964, advocated and practised only as an
irregular pamphlet series, appearing upon demand, depending upon my time, energy and funds. Nor does it force
me to attempt to squeeze much monetary or other freedom information into a few pages, at least not since my
conversion, since 1978, to microfiche publishing only. (Apart from some photocopied leaflets.)
Nor am I bothered much by often repeated mailing labours and costs, just to regularly convey a few pages to a few
regular subscribers. Instead, I can reproduced whole articles, papers, pamphlets and books and manuscripts, in my
own good time and when I have the energy and means for them. These titles do primarily have to appeal only to
me. To others I make them available only upon demand, if and when they pay me for them. Mailing them costs
only minimally in labour and postage. To that extent I am glad that I got rid of the Newsletter chore. If you want to
tackle it - you are welcome, any time.

Do you know of any other source which has published more on this subject? However, as long as most people,
even those who profess to be seriously interested in monetary freedom, or at least in some of its aspects, would
rather not read more such information at all - than resort to reading it on microfiche, or, after bothering to pay the
expenses involved themselves, from print-outs of the fiche on paper - or from computer screens or print-outs after
they got the fiche scanned into computers, as long as this habitual and customary foolishness and traditional
behaviour problem continues, we should expect that monetary despotism will not be shaken in its foundations by
full information on the monetary freedom options.
This information was apparently not available or not used when Germany was re-unified and when the Iron Curtain
fell down in Eastern Europe generally and in the Soviet Union. This in spite of the fact that the German monetary
freedom school was and still is the most advanced one. However to the man in the street and even the scholar of
economics, even the scholar of money and banking, it is still most obscure and practically non-existent. How
differently would the economic re-unification of Germany have been and how different, genuine, peaceful, secure
and lasting, the liberation of the people in the former Soviet Union, and in the former Satellite States of it, if only
the principles and practices of monetary freedom had been known and applied there?

Instead, monetary despotism was applied, this time from its Western model, the older communist - statist type, and
it still prevails there, with the usual disastrous economic results. The "liberators" and the "liberated" imagine the
time of communism is over - while practising the old communist money monopoly, proposed already 1848 in the
Communist Manifesto. They do not even question it at all.

Alas, even one of the more outspoken and talented free banking advocates, came out only in favour of a currency
board for the liberated countries and sent me a corresponding manuscript for filming. Need I tell you that I was less
than enthusiastic about this? Another central board to "cure" the evils of centralised, monopolistic, coercive,
fraudulent and exploitative note-issue banking. The old statist fallacies in a new disguise and organisational form.
What is considered often to be the only thing that is "politically possible" may, at the same time, prolong political
and economic disasters.
I rather liked, instead, the principled stand of Leonard E. Read and Prof. Heinrich Rittershausen, for cutting price
controls and rationing in one stroke, as the most practical, principled, sound and curing way. No compromises with
despotism, especially not in the monetary sphere! At least not by scholars in their proposals, for alternative free,
rational and moral actions.
Or, how many hundred million unemployed or inflation victims and victims of the resulting civil wars and
oppressions and "ethnic cleanings" do you consider to be "acceptable" sacrifices in political compromises?

Naturally, the all-embracing alternative of exterritorial autonomy for all volunteer communities, which would have
given each of them the the right and opportunity to choose the monetary system of their dreams, was not discussed
by these and other reformers, either. Such truths are still largely hidden in some obscure corners and libraries, not
part of the public debate - not even when full freedom of expression and information for them exist and
opportunities like microfiche to express and access them.

The ability and readiness of our age and even of supposedly educated, enlightened and scholarly people to ignore
or even fight truths and to prefer myths, errors and prejudices to them, is in no way inferior to those of ancient
times and of the Dark Ages.

I assert that the Red Chinese or North Korean regime cannot be easily undermined, or overthrown by a properly
financed military insurrection or revolution or as a result of massive refugee streams, of as talented and productive
people, to the rest of the world, as long as their monetary despotism, nay even monetary totalitarianism, remains
largely unquestioned in East and West, including Taiwan and South Korea. There are an estimated 120 to 200
million unemployed in Red China alone! The communist regime does not know how to employ and exploit them
otherwise than as slave labourers. The realisation of monetary freedom could put all of them to work - tomorrow! It
could almost immediately provide full and paid employment for millions and millions of refugees and of deserters,
and for employees of the nuclear weapons and nuclear power industries. Moreover, it could support insurrectionist
armies. Most libertarians are not yet ready for such discussions and subscribe to contrary myths, including some
very prominent people that I could name but will not, since they share in this simply some of the all too popular
prejudices.

Most "employers" still consider themselves to be professionally "employers", although unable to employ millions
of unemployed and although they do not even understand all or many of the interventionist legal causes of
involuntary mass unemployment and how they could prevent or end them.

Government "spending" is still considered as proper and honest spending, although only stolen funds or fraudulent
and coercive requisitioning certificates are involved. And from their budgets, of their "spending" policies, some
kinds of miracle cures are expected. To me that merely resembles expecting economic miracles from the
"spending" activities by the community of thieves, robbers, con men and organized criminals, while completely
ignoring the correspondingly decreased spending of their victims.
The daily human suffering and liberties and lives lost and economic losses due to the non-recognition of monetary
and financial rights and liberties and the failure to realize them, may be almost incalculably large. But who cares
about this? Do you?

Ulrich von Beckerath was one of the few who spoke of and even clearly formulated monetary rights and liberties
and reminded his few readers and listeners of the traditional American "right of banking" and the few works in
which it had been recognized, like in Bullock, Charles J., Essays on the Monetary History of the U.S., reproduced
in PP 373 -375. Thus imagine my delight when I "discovered" in Bettina Bien Greaves' private library the
following title: Dilworth, James A. B., FreeBanking, A Natural Right, 1897, 212pp. I reproduced it in PP 920. -
Please do contemplate why it took decades of searching to find such a title.

There are about 1 million unemployed in Australia. India may have almost as many as China has and Africa and
South America may have dozens of millions. How many are there in the rest of the less developed world and in the
so-called developed States? The ties of this man-made disaster to monetary despotism, wars, revolutions, civil
wars, oppressions and terrorism, are not discussed in the mass media nor are they by most free market scholars.

It took centuries and many millions of victims before religious liberty was finally at least as widely realized as it is
today. Will it take even more victims and longer periods before we finally recognise and realise monetary freedom
as a fundamental cure for many of our economics, political and social "troubles"? Or will monetary despotism, like
price controls, go on for another 4,000 years, remaining more or less popular with its victims?

Already years ago Robert Carnaghan, 22 Wentworth Close, Watford,Herts, WD1 3WL, U.K., was prepared to
circulate a small newsletter on monetary freedom, one that would not include so many references to the
microfiched monetary freedom literature, as my compilation did, if only someone would supply him with an
address list of European people interested in this subject. Alas, I had no such listing then or now. And I for one was
not willing to separate the information riches that microfiche can and does offer in this and other spheres, from the
few pages one can offer in a newsletter. Should we really try to manage without all the information that at present
can readily be expressed and accessed only on microfiche? Should we intellectually cripple ourselves to that
extent?

Most of the European addresses that I have are long outdated. But I do seek current addresses, in Europe and the
rest of the world. At least by air mail we are already closely enough connected for most scholarly purposes - if only
we know each other's current addresses and special interests.
The one address register which monetary freedom advocates should never fail to notify of their change of name
and or address, should be a central register or network of registers for monetary freedom addresses. If one tries to
gather them the hard way, this can not only be a hard and time consuming job but also a very expensive one.
Almost like a world-wide door-know appeal: "Excuse me Sir (or Madame)! Are you an advocate of monetary
freedom?"
They should mention the year of latest contact with that address and any special interest in aspects of monetary
freedom. When a worthwhile number of such addresses have been gathered, they will be microfilmed and made
available on disk. Ideally, bibliographies should also mention a contact address for an author and the address of a
publisher, when a title is still in print.

Berlin friends, back in 1980 or 1984, reminded me that, apparently, there was never as yet a public demonstration
or protest march in which the demonstrators demanded e.g.: Repeal the Legal Tender Laws! and: Abolish the
Central Bank! The few cases of monetary revolutions or at least radical monetary protest actions ought to become
carefully compiled and publicised.

The German language MONETARY FREEDOM NETWORK newsletter or "Rundbrief" of S. Schwenke and T.
Megalli has folded, too. Nos. 1-3 were filmed in PP 741/42, No. 4 in PP 795, No. 5 in PP 906. Two or three more
issues may have appeared - my memory! - but are still among the material to be filmed.

All 4 of my MFNL & MF, Nov. 86 - Feb. 89, were filmed in PP 867.

At the Labadie Collection I found out that Laurance Labadie, apparently, had been misunderstood on an important
point: He had not, himself, compiled a record of 1,000 monetary freedom experiments in the U.S. but had merely
estimated that as many such experiments had taken place there. If one were to include all the private token money
and scrip issues that took place, there and elsewhere, the figures would probably be much larger. I acquired a few
books by coin and note collectors during my trip and was impressed by the numbers, time and space distribution of
such private issues.
If it is correct that even small additional and honest and optional and voluntarily accepted alternative exchange
media can have a significant economic influence, to prevent the worst and keep an economy going and back on the
road to recovery, then these issues, in combination, may have saved us, to a considerable extent, numerous times,
in numerous places. A proper historic and economic evaluation of all these attempts, not only of those informal
banking formats, remains still to be provided.

Another side-light of that research in the Labadie Collection was that I was apparently the first one ever who
looked up their file on monetary experiments. L. Labadie's own file on them was very incomplete.

Jim Stumm, publisher of LIVING FREE, a list of US libertarian magazines and of a few booklets and papers, has
among these published a part of my ON PANARCHY discussion with him and also some material on monetary
freedom, in a separate pamphlet, which you can get for a few dollars from him. Address: Box 29, Hiler Branch,
Buffalo, NY 14 223. He also offers photocopy services for many o.o.p. libertarian journals.

Proudhon was one of the earliest monetary freedom advocates. FREEDOM, London, I believe in March 86,
pointed out that about half of his writings had not yet been published, not even in French, not even in his collected
"complete" works. When in Vancouver, I had a chance for a short talk with George Woodcock about this. He
denied this accusation, which, if true, would strongly support my case for the need of microfiching all freedom
writings. - By the way, he seems to have given up his former intention to translate more of Proudhon's writings.

I was relieved and confirmed, in my fiching determination, when I found recently, in the thick volume of anarchist
discussion by Peter Marshall: "Demanding the Impossible", that, indeed, many of the writings of Proudhon have
not yet been published. Among them may also be many unfinished or even finished manuscripts dealing with
monetary freedom options and perhaps clarifying some of his views on the competitive or exclusive position for his
"Peoples' Bank". Will any French or other anarchist or other free banking advocate ever bother or have the chance
to look up and photocopy these unpublished writings and make them accessible on microfiche?

To me it is almost as if the Christians had not bothered to gather and publish all the teachings of Christ they could
get hold of and the Muslims those of Muhammad. (Actually, for several centuries they did not and by then all too
little was left in the oral traditions and of early written records.) Do we have to repeat and continue that mistake?

One can accuse the communists of many things and rightly so. But they did not neglect their prophets as much!

Frederick Mann, with his Terra Libra, wants among other things to establish an international gold standard banking
system, on the gold-redemption system (not the gold-clearing or gold-accounting system, which he, like most of
those of the Austrian school do not know or understand). Address: Terra Libra, 2430 E. Roosevelt No. 998,
Phoenix, AZ 85 008. For a concise explanation of the full freedom alternative read e.g. Dr. Walter Zander's "A
Way Out of the Monetary Chaos, 1935, 14pp, in PP 9 or 770. I met Zander only once, as a very old and already
almost blind man, who had dedicated most of his later life to other questions. But he was still very clear about one
point. The clear distinction between and the separation of the value standard and the value carrier, constitute the
essence of monetary freedom. He did not elaborate on this then and there and did not allow me to publish my audio
taped discussion with him. Beckerath did elaborate the details and so did Professor Rittershausen in many ways.

Here I can only try to summarise: They require free choice, free issue, free acceptance or refusals, free market
rating, including discounting, free contracts and full publicity for both. Only then will they soundly interact and
collaborate, no matter what exchange medium or value standard is chosen by voluntary participants in the
exchange, monetary and clearing process. They are the essential conditions for free clearing transactions that are
the underlying basis for all free exchanges. Monetary despotism and even the "free banking" of the 100% gold
dollar type, with obligatory 100% cover and redemption by the issuer, do not sufficiently distinguish and separate
the two, conceptually and in practice, and thus, neither in theory nor in practice do they and can they fully realize
the potential of monetary freedom.

Bob Swann, E. F. Schumacher Society, Box 76, RD3, GreatBarrington, MA 01 230, from whom I got much
material during my trip, was then already establishing a decentralist library and meeting centre at this address. He
was involved in several simple monetary freedom experiments.
Tom Greco, when I visited him in April 90, had just given his second edition of his booklet MONEY AND DEBT:
A SOLUTION TO THE GLOBAL CRISIS, to the printer and has now a booklength treatment out: NEW MONEY
FOR HEALTHY COMMUNITIES. I have ordered copies. I Don't have the prices on hand (Should I, just for your
and his convenience, leave this computer, climb up the stairs, look up the previous correspondence and then add
the prices, too? Why should I bother, for you? Sooner or later you will find his offers microfilmed in my series, if
you bother about them.) and wanted to film both, as I did the first edition of the booklet, since it contained some
monetary freedom ideas, even some of the German School. However, he wants to limit me to archival filming and
a limited distribution of 50 copies only. That might just cover my monetary costs but not my labours. And I could
not add other libertarian material, as I usually do with my fiche, and keep it permanently in print. Thus upon this
condition I will decline to reproduce it. He can rather film it himself.
In the same letter or talk, he, too, like so many others, are at the same time down-putting the chances for
microfiched literature to spread - and fearing its spread and wanting to limit it to as few copies! Who has ever
asserted that humans are consistent? I like Tom, am grateful for his hospitality and the information he supplied me
with and respect him in many ways - but not in this one. He is looking for a book on scrip by Cohrsson. Title not
known. I never heard of it but know that there were many scrip issue experiments in the U.S. of the 30-ties. Some
of them were described in Milhaud's Annals. Tom Greco's address: P.O. Box 42663 Tucson, Arizona 85 733, (602)
577-2187. For his books he offers 30 - 50% discount for quantities from 10 - 60+ copies. (Recently he permitted
me to microfiche his earlier titles without such a restriction. Not yet his latest book. That is quite reasonable. - J.Z.,
28.12.02.)

I had wanted this communication to be only a short note to former subscribers and some friends of monetary
freedom! For some I will enclose my PP 1022 & 1172, if they fit still within the weight limits for ordinary postage,
economy mail. (Ship mail, for postcards, offers now no rate advantage here and all too little for ordinary letters.)
Or I might doubly reduce the size of these notes. Even if you have no microfiche reading machine in your home,
you should at least own some magnifying glasses.
I do not live for your convenience nor do I expect you to live for mine!

Anyone can start and maintain indefinitely a "newsletter" on monetary freedom, on microfiche (or floppy disk or
e-mail or website. - J.Z., 28.12.02.) only. But will he find sufficient contributors of news for it and enough
subscribers? Let others try for a while. I have done my newsletter bit in this respect and continue, on microfiche,
with my monetary freedom series.

                  PIOT, John Zube, 28 May 94

               PEACE PLANS, ON PANARCHY, LIBERTARIAN MICROFICHE PUBLISHING
                   RESEARCH CENTRE FOR MONETARY AND FINANCIAL FREEDOM
                          c/o John Zube, 35 Oxley St., Berrima, NSW 2577, Australia,
                                        Tel. (02) 48 771 436 (Dec.2002)
               jzube@acenet.com.au       www.acenet.com.au/~jzube        www.butterbach.net/lmp/
               www.butterbach.net/freebank.htm      www.exterritorial.info www.panarchism.info

PP 41 67to77 Circ Charts




                     SOME CIRCULATION CHARTS

             FOR PRIVATE ENTERPRISE MONEY
                                     By John Zube, from PEACE PLANS No. 41.
                                         Scanned and slightly edited: 1.1.03.

(I would have liked to be able to scan and enter the sketches as images. But a try-out with my scanning system
revealed the lack of a file PBE.exe, needed for opening files of type "WMF Adope PhotoDeLuxe Business Edition
Image." A try-out on the newer system of my granddaughter revealed that scanning of page 69, sketch and text,
required over 8 Mbs, which she could not save for me, on her system, in the absence of a burner. Normally, a
scanned text page requires only 5 to 6 Kbs. Thus the image files, combined, for pages 67 - 77 would anyhow be too
large for me, for transmission via e-mail. Perhaps they could be sufficiently zipped. I do not know how. So I have
to try to reconstruct them with the Word sketching options. Upon first try, I already lost the text of the first edited
pages. Thus I will tackle each sketch attempt on a separate file, to insert it later. Hopefully, that will work. - J.Z.,
31.12.02.) (It did, to the extent followed below. I did not bother to make the sketches more pretty and colourful.
You may freely play around with them, if you like doing this. Unfortunately, I could not insert the numbers in the
arrows and had to do the next best thing: Adding a list of the sequencing of exchange events.
- J.Z., 1.1.03.)

THESE NOTES ARE NOT COPYRIGHTS RESTRICTED. Copy, duplicate and spread them if you like, with
your improvements and criticism.

                       At least in some cases a picture says more than a thousand words.


An attempt to trace, explain and justify graphically and in simplified models the issue and
circulation of private banknotes, money tokens, purchasing certificates and goods warrants which
are conveniently standardised and typified and in denominations like money.
The graphs sketch the course of the self-liquidating and non-coercive and thus non-inflationary purchasing
certificates, notes, etc., issued by private banks, especially by associations of shops acting as banks. Many other
institutions could issue their own clearing certificates, also, e.g. railways and other transport companies, electricity
and gas works, post offices, insurance companies, oil and petrol suppliers, anyone offering services that are
constantly and widely in demand.

It cannot be stressed enough that these certificates and tokens are not to be legal tender and are therefore not
inflatable. Neither are they redeemable by the issuers in legal tender paper money or in gold or silver coins. Some
of the latter types of issues are also likely for the future - but such issues are not discussed or described here.

By not being redeemable in state paper money or gold coins, these issues would not be subject to the fluctuations in
the circulation of State paper money and gold coins. On the contrary, the shorter the supply of State paper money
and gold coins is, or the more the State paper money is deteriorated, the more popular and more widely used this
private money would become - if only it is not outlawed and if enough people become sufficiently informed on this
freedom opportunity and challenge.

All goods, services and debts in our examples are assumed to be priced-out in stable value standards, e.g. in gold
weight units. Any of the parties concerned is also considered as remaining quite free to pay, i.e., not obliged to
pay in actual gold weight units, in gold coins or in gold bars, instead of merely in private tokens expressing such
gold weight units, by the declaration of the issuers that they will accept their tokens like so many grams of gold.
No one will be legally obliged to use gold weight units not only as standards of value but also as means of
payment. These two will be clearly distinguished, the one as value "standard" and the other as value "carrier"
or exchange medium. Only under a forced currency (legal tender) or an exclusive gold standard are these two
inseparably and dangerously combined.

Only the issuer himself - and those of his debtors whom he has contractually obliged - would have to accept the
own notes etc. at any time at par with their nominal gold value, whenever anyone pays them something. Others will
accept this private money at par only when this is its market value or when they owe the issuer or his debtors
something.

The notes etc. here considered promise nothing but acceptance at par by the issuer, all associated members and
their debtors, i.e. within a private payment community, when anybody buys anything from them or pays his debts
to them. This has been aptly called "shop foundation", "reflux foundation" or "debt foundation" or
"readiness-to-accept-foundation". The notes are given a value, at par with their nominal value, by creating a strong
demand for them, at their nominal value.
Legal tender in this system will be safely and profitably, and also for juridical purposes, replaced by the right to
offer and the obligation to accept clearing - in the agreed upon standard, here gold weight units as units of account
- using any method of clearing and clearing certificates and alternative exchange media and value standards that are
found acceptable or are especially agreed upon by contracts.
Exceptions to this rule can only be made by special private contracts and for the predominant local currencies
which are likely to develop.
Trading customs and courts are likely to declare that anyone will have to be satisfied with payment in local
currency, when it is offered in payment of debts, as long as nothing to the contrary has been agreed upon and as
long as this local currency is valued at par with its value standard on the open market.

The number of these certificates, their total value, would only be limited by their cover - the goods and services
ready for sale in the shops. Thus the goods side would be balanced against the money side. Their circulation could
thus expand and contract as required and without inflationary or deflationary effect on the general price level
because this, before and after, remains expressed not in these free-market rated, optional and refusable tokens - but
in stable value reckoning units, here in gold weight units.

Anyone who knows or can envision the enormous quantity of consumer goods and services in any shopping centre,
that are ready and waiting for sales or buyers equipped with sufficient purchasing power, and much more so, in all
the shopping centres in a somewhat developed country, will be able to envision how vast the monetary demand for
productive labour can be - if freedom to monetise these ready-for-sale-assets becomes introduced, for the
proprietors of these consumer goods and services - and for those who have so far unsold and ready for sale labour
power, skills or knowledge for sale.

Sound, alternative money issues, in form of wage and salary offers, will then begin to chase still unused labour and
services and involuntary unemployment for more than a few days will become a rare exception.

The sellers of goods and services themselves, or through their agencies, will provide the purchasing power to sell
them, in an economically sound way, e.g. as exchange media to pay wages and salaries with.

The good among the competing (privately or cooperatively issued) monies will drive out the flawed and bad ones,
especially the governmental and presently monopolised paper money, almost always deflated, inflated or stagflated
- and will mediate all wanted and possible exchanges of goods, services and labour. There will no longer be any
monetary bottlenecks to free exchanges. Immigrants & asylum seekers will become welcomed rather than feared.

Naturally, against an accepted gold weight unit, as a value standard, a private money token could also acquire a
"price", either a premium or agio (very rarely but not impossible) or a discount (rarely only, due to the self-interest
of the participants ). This possibility, of a market price for the private currency, is essential to the good functioning
of the system. Badly managed and temporarily over-issued private money tokens must be revealed as such as soon
as possible - by free pricing against the stable value standard used. As soon as a small discount occurs, further
issues will be stopped, firstly in the interest of the issuer and secondly by widespread refusal to accept such notes in
general circulation. The free market rate for means of payment acts here as a safety valve against over-issues.

(Henry Meulen pointed out that the note-clearing between the issuers would also and possibly most rapidly reveal
any over-issues. The over-issuer could not offer enough sound notes in exchange for his over-issued ones. The
clearing centre would publicise that fact in its own interest and that of all other potential acceptors and sound
issuers. - J.Z., 31.12.02.)

The note discount also acts as a safety sign to prevent deflationary under-supply of the economy with exchange
media. Until the first small discount appears in wholesale trading, or the note exchange of issuing centres, the
market is not yet saturated with these exchange media and thus more can safely be issued, nay, should be issued
wherever they find willing acceptance at par, by anyone in a position to issue such tokens.

Money as a medium of exchange should be omnipresent and easily available, like the air we breathe. Otherwise,
we will never be able to exchange all the goods and services we want to exchange. This does, naturally, not mean
that the value standard used for all these exchanges should be diluted as much as possible. On the contrary: It
should remain as unchanged as the metre or the litre measures are - while also being easily accessible to anyone.
(In form of cheap but accurate enough measures.) Keeping metre measures scarce does no more help
measurements than keeping gold coins or gold certificates scarce and vice versa.
Exchange media as well as value standards are, in essence, simply tools. As such they should be as plentifully and
accurately supplied as it is possible for human beings to do. There should be no more any artificial shortage of
them than there should be of e.g., fever thermometers, toothbrushes, pens and wristwatches, hammers and
screwdrivers, rulers and weight units.

This would leave us with some fluctuations in the value of gold as a commodity. These are either considered as
acceptable - usually by people sufficiently informed on the subject, people who realized that the present
fluctuations of the "gold price" are actually largely fluctuations in the value of the exclusive and forced paper
monies involved - or, those discontent, would agree among themselves upon other standards, more to their liking,
which they should be perfectly free to do. This is one of the basic requirements of monetary freedom:

       Free choice to produce, accept or refuse or discount any exchange medium
       and freedom to agree upon any standard of value.

Wherever private certificates of the here described kind may be freely issued, they would tend to become a new
local currency, though not a forced or exclusive one.

A characteristic of all these private notes is their limited circulation period for purposes of turnover credit only.
They are not designed to circulate permanently but, rather, to "oscillate". They are issued, circulate for a short time
in a rather limited circuit and then return to the issuer to pay the short-term debt upon which the issue was based.
Then the notes are to be cancelled - to simplify control of the issues and help prevent forgeries and fraud.

The full circuit is usually enforced within a short period by the profitability of the exchange acts involved. But, for
the sake of honesty and openness and also to prevent any blockages and to balance out the depreciation of the
waiting cover goods involved, these private goods warrants and purchasing certificates should loose their full
validity after a short period, after about 3 months. This should be clearly stated on all these notes, perhaps with the
comment that these certificates are to achieve corresponding sales of services, including labour power and goods
within this short period.

They are not to be means of savings, as such, for lasting cash holdings or hoarding purposes, but exchange or
turnover means, issued to keep production and exchange of services and goods going without interruption, in the
interest of everybody.

(This would also promote the regularity of turnovers or sales. It is these which, indirectly, give the productive
capital assets their maximum market values as well. When goods and services can no longer be rapidly and
profitably enough sold, then the capital values involved, as rated by a free capital market, will tend to become
correspondingly reduced. - J.Z., 31.12.02.)

While particular note issues would thus rapidly disappear - like the consumer goods and services they represent,
other issues would be made continuously, to disappear just as fast from general circulation. The process is repeated
over and over again, almost like the safe issue of theatre or railway tickets.

The limited circulation area and period would make forgeries difficult and unprofitable.

Central banks of issue will one day be rendered impossible by forgers using the latest techniques, as Prof. H.
Rittershausen once predicted. The Nazi forgers during WW II came close to this, as did, more recently, some of the
advanced colour copying machines, abused by forgers.

3

I. Simplified model of the Private Payment Community of a Scottish Type Note-Issuing Private Bank,
     Demonstrating the Pure Goods Bill Discount, also Known as "Banking Principle" or Real Bills Doctrine

    Since I could not easily attach explanations to the arrows, without distorting the text frame arrangement, I do
    add them, in their sequence. (My Microsoft Word does not make such sketches easy & always drops back into
    letter-size 10.)
The numbering used indicates the time sequence of the process.

This is, apart from the omitted gold redemption obligation - here replaced by gold value clearing - the traditional
system of discounting sound short term and commercial bills, arising from goods sales, with banknotes.
Details on this can be found in Peace Plans 9-11, 19, 40, and the other 2 essays in this issue No. 41. It is certainly
not the only possible system although, seeing the obvious turnover basis: goods already sold from the factory to the
wholesaler, and the severe discipline of the bill of exchange form, it may be the safest procedure. Only time and
experience with freely competing banks of issue will tell.

The commercial bills here discounted run, as a rule, only for 2-3 months. If any longer period were used, then the
used notes would not be fast enough drawn out of circulation and could thus depreciate. Too short a circulation
period, 2 or 3 days, in the extreme, would, usually, not give them sufficient time to complete the circuit. There is
no hard and firm rule on this except that the circulation period must be relatively short and that one must hold on to
the free market rate for exchange media as a guide - like with any other turnover and pricing of goods and services.
Here the goods or service is a private money token.

No miraculous credit or money "creation" out of nothing takes place. What appears as a "creation" and is, in its
effects, often wonderful, is merely a conversion of inconvenient claims into convenient ones and clearing, even
when paper means are used to facilitate it and a bridging credit is involved. No capital or gold stock is required.


                1. A to B: Consumer Products                          8. E to D: Consumer Goods & Services
                2. B to A: Bills of Exchange                           9. E to B: Banknotes
                3. C to A: Banknotes                                      10. B to E: Consumer Goods
                4. A to C: Bills of Exchange                         11. B to C: Banknotes
                5. D to A: Labour & Services                        12. C to B: Bills
                6. A to D: Wages & Fees in Notes                  13. C to F: Other Banknotes
                7. D to E: Banknotes                                      14. F to C: Own Banknotes




                                                      A                                                F
                                           Factories,                                      Clearing of stray
                                           Employers and                                   notes with other
                                           Productive                                      such issuing
                                           Cooperative                                     centres
                                           Enterprises




            D
                                                   C                                          B
                                                                                       Various
                                         Note-issuing
                                                                                       Wholesalers &
                                         Scottish Bank,
                                                                                       Distributors
                                         reckoning but
                                         not redeeming
                                         in gold.




                                                   E
                                            Retail Shops
                                            and various
                                            Service
                                            Providers

4

2. GOODS WARRANTS (PURCHASING CERTIFICATES) ISSUE BY SHOP ASSOCIATIONS
FORMED INTO BANKS OF ISSUE, USING THE SHOP FOUNDATION OF THEIR MEMBERS AND,
LIKEWISE, DISCOUNTING SHORT TERM CLAIMS THE MANUFACTURERS GAINED THROUGH
SALES.

      1. A to B: Consumer Goods                               9. D to E: Purchase Prices
      2. B to A: IOUs or Bills                                10. E to D: Consumer Goods & Services
      3. E to C: Acceptance Contract                     11. B to E: Consumer Goods,
      4. B to C: Acceptance Contract                    12. E to B: Goods Warrants for Restocking
      5. A to C: IOUs or Bills                                13. B to C: Goods Warrants
      6. C to A: Goods Warrants                             14. C to B: IOUs or Bills returned
      7. D to A: Labour & Services                         15. C to F: Other notes returned (clearing)
      8. A to D: Wages & Fees, in Goods                16. F to C: Own notes returned (clearing)
          Warrants, Purchasing Certificates etc.




                                                       A
                                          Manufacturers                                Clearing centre
                                          Farms, all                                   for stray notes of
                                          producers of                                 various issuing
                                          consumer                                     banks.
                                          goods




       D
Cooperators,                                       C                                          B
Contractors &                            A cooperative                                 Various
Here, also, the numbering indicates the successive steps involved. This system has been described in details, with
variations and additions, especially in Ulrich von Beckerath's three works republished in Peace Plans No. 9-11.

All acts are not one-sided but two-sided affairs. In every case merely an exchange takes place, a compensation or
clearing of various claims, services and goods, even when paper certificates like the goods warrants are used for
this purpose.

All of these exchange acts balance out within a reasonably short period, short enough to permit the circulation of
the certificates at par with their nominal gold weight value.
The immediately available consumer goods in the stores form the real, immediate and tangible cover. Without this
cover hardly any other exchange medium would be widely accepted, not even gold coins.
With this cover no "trust" or "confidence" or "metallic reserve" is required. In case of suspicion such means are
either refused or very quickly redeemed by being carried to the shops and used there for purchases.
If no genuine over-issue has taken place then any "run" would merely lead to a faster turnover in the shops - and
the shopkeepers would be the last ones to complain about that. One might even suspect some of them, in the
beginning of the system, as liable to spread rumours, to cast doubt upon the goods warrants: "There is something
wrong with these certificates. Do not trust them! Better redeem them quickly in the shops, before it is too late!" -
just in order to speed up their sales!

3. SHOP ASSOCIATION BANK ISSUING GOODS WARRANTS TO MEMBER SHOPS

       1. E to C: Repayment Obligation                            8. A to D: Wages & Fees, in Goods
       2. C to E: Goods Warrants                                      9. D to E: Goods Warrants for Purchase
       Prices
       3. E to B: Goods Warrants                                    10. E to D: Consumer Goods & Services
       4. B to E: Goods                                                   11. E to C: Goods Warrrants Returned &
       Cancelled
       5. B to A: Goods Warrants                                    12. C to E: Claim or IOU returned
       6. A to B: Goods                                                    13. C to F: Stray Notes returned
       7. D to A: Labour & Services                                14. F to C: in exchange for the own notes
       (clearing)




                                                  A
            D
                                                   C                                             B
       Workers                             A Cooperative
                                           Shop                                           Wholesalers
                                           Association
                                           Bank of issue




                                                     E

                                                  Shops




That the issue will be directly from the Association to the members is an unlikely but not impossible case. The
numbers do indicate the time-sequence, here, also.

It is another case of liquidifying illiquid assets and of mutual clearing. Nobody is harmed or wronged in this
"creation" of money. It is just a trade for mutual benefit, certainly not a creation of values out of nothing, with no
obligation on the side of the issuer.

Once the payment circle in such a private payment community is closed (or rather the circles of several
overlapping payment communities of this type) then there would be neither unemployment nor sales difficulties
remaining among the members - provided only their services or goods are wanted by other members. Needs would
be transformed into demand, i.e. provided with purchasing power. Under this system one can not only produce
goods and services but also the means which exert the required purchasing power for them and, more obviously
than with other money: goods buy goods and services buy services, without anyone being reduced to primitive
barter.

Anyone in such a system would have sales for his products, wares or labour, to the extent that he can spend his
money in which they are offered. Any productive seeker of money can in this system be changed into a provider of
money, into a welcome customer, rather than remaining a bothersome salesman trying to sell you something for
your scarce monopoly money.

The bank not only gives a bridging credit in discounting the short term claim and transforms media but also
provides an insurance to the bearer through its notes.

6
4. COOPERATIVE SHOP ASSOCIATION BANK ISSUING NOTES
    IN DISCOUNTING SHORT-TERM IOUs OF THE WHOLESALERS.

       1. B to C: IOUs                                                8. E to D: Sales
       2. C to B: Notes or Goods Warrants                9. B to E: Deliveries
       3. B to A: Orders                                           10. E to B: Payment for Orders
       4. A to B: Supplies                                        11. B to C: Notes or Goods Warrrants Returned &
       5. D to A: Jobs                                              12. C to B: IOU returned
       6. A to D: Labour & Services.                      13. C to F: Foreign Notes returned
       7. D to E: Purchases                                      14. F to C: Own Notes received back in exchange
       (clearing)

                                                   A
                                            Employers
                                            Factories etc.
                                                                                                     F
                                                                                         Clearing centres




           D
                                                  C                                             B
       Workforce                          A Cooperative
                                          Shop                                           Wholesalers
                                          Association
                                          Bank
                                          of issue




                                                     E
                                                   Shops
                                                  Retailers
The action sequence is again indicated by the numbers. This is a possible but unlikely case. The factories would
need small notes more than the wholesalers do.
No interest-free credit is given. The interest charge is expressed in the discount of the IOUs. But the interest rate
thus charged will differ from the interest for a short-term capital loan. So much is available in form of ready for
sale consumer goods & services, in all developed countries and in peace time, that competition would soon drive
these charges down to the administrative costs, corresponding only to about 1/2 to 1% on an annual base, i.e. to 1/8
to 1/4 % for the 3 months period here envisioned.. Other short, medium and long term interest rates would not be
directly affected. But there would be an indirect effect: Once all possible and desired goods and service exchanges
take place, then total output and savings will increase and lead to more investments in medium and long term
capital goods. This would tend to drive general interest rates for productive capital down, as well.
But the contrary tendency would also exist: Under full employment and with more capital available, so much
innovation might take place, that productivity rates would go up and with it, probably not only the share of labour
and management (in the additional productivity) but also that of capital. What the balance will amount to is a
matter for speculation, and spending and saving habits will decide the issue.

Only the issuer - and his debtors due to contract obligations - will have to accept the own notes at par. Anyone else
will be free to refuse them. Thus a genuine over-issue would, through refusals & court charges, lead to bankruptcy.

7

5. THE MOST LIKELY CASE: NOTE ISSUE TO EMPLOYERS COMBINED WITH CHEQUE PAYMENTS
    AMONG TRADERS

The numbering indicates the sequence. Actually, No. 11 could follow right after No. 1, depending on whether one
considers them as constituting the shop foundation or as only restocking it upon re-ordering.

This is, basically, the Scottish System again but with gold-redemption being replaced by debt and shop foundation.
The debt may be expressed by a commercial bill drawn by the employer upon the wholesaler or by an IOU of the
wholesaler or by an overdraft granted by the bank to the wholesaler. Half the circuit is completed by money tokens
the other by debt certificates.

The Bank will only be able to issue its notes for general circulation, employers and their employees will only
accept them while they are traded and accepted at par at the Stock Exchange, clearing centres, local exchanges,
and, naturally, at the shops. Otherwise, the bank puts itself fast out of business, temporarily or permanently.

The free market rate for means of payment, the right to refuse acceptance and the publicity required for the issue
procedure (see the writings by von Beckerath) make all other controls, especially by the bureaucracy, unnecessary.

If not turn-over credit but, instead, investment credit were given in this way, then the notes would have no
immediate cover, not sufficient reflux. The shops could at best exchange their goods-stocks for medium or
long-term bonds and would thus soon refuse to accept any more notes.

The system is just to maximise turnover and thus to make use of all productive potential.

       1. A to B: Goods                                              8. E to D: Goods
       2. B to A: Bills                                               9. E to C: Notes
       3. C to A: Notes                                            10. C to E: Cheque Account Credit
       4. A to S: Bills                                             11. E to B: Cheques for orders
       5. D to A: Labour                                          12. B to E: Goods ordered
       6. A to D: Notes                                           13. B to C: Cheques
       7. D to E: Notes                                            14. C to B: Bills returned or declared paid
                                                                                  15. C to F: Foreign notes returned
                                                                                  16. F to C: Own notes returned




                                                   A
                                            Employers
                                                                                                      F
                                                                                            Clearing centres
        D
                                             C                                  B
    Employees
                                                                         Wholesalers
                                      Note-issuing
                                      Bank




                                               E
                                             Shops



8

6. A PRIVATE PAYMENT COMMUNITY USING ONLY CHEQUES AND CHEQUE ACCOUNTS
    AND CHEQUE CLEARING AND NO STANDARDISED AND TYPIFIED CERTIFICATES
    IN MONEY DENOMINATIONS AT ALL


    1. C to B: Short Term Overdraft Credit           11. E to C: Cheques Deposited
    2. B to A: Cheques for Goods                           12. C to E: Cheques Drawn
    3. A to C: Cheques Deposited                           13. E to B: Cheques
    4. C to A: Cheques Drawn                                 14. B to E: Goods Orderd
    5. D to A: Labour                                             15. B to C: Cheques Repaying
    Overdraft
    6. A to D: Cheques                                          16. C to F: Foreign Cheques
    returned
    7. D to C: Cheques Deposited                          17. F to C: Own Cheques returned in
    clearing
         8. C to D: Cheques Drawn
         9. D to E: Cheques for Purchases                                      1
       10. E to D: Goods Purchased




                                             A
                                       Employers
                                                                                    F
                                                                         Clearing centres
            D
                                                   C                                             B
       Employees                           Clearing
                                           Bank                                           Wholesalers

                                           with accounts
                                           for A, B, D,
                                           E and F




                                                      E
                                                  Shops




The numbering does, again, roughly indicate the sequences involved. Even when notes or gold coins are used, the
exchanges they negotiate amount to anonymous and multiple clearing. The gold coins used are then, mostly, just
unnecessarily expensive "counters" for these clearing exchanges. Here the clearing is made obvious.

Cheques and cheque clearing are the means of exchange used. The standard of value used is the same as for the
above examples: a gold-weight-unit, unless something else has been agreed upon. Against this the cheques could
also suffer a discount in general circulation - which helps to restrict their issue to their economically sound and
required volume.

I could not more cause an inflation with my cheques than you could with yours. They are not legal tender and no
one has to accept them at par with the value standard, or accept them at all, but the issuer - and his debtors under
contractual obligation. This also applies to the bank. Neither you nor I are likely to accept, e.g. in wage or salary
payments, cheques which do not have a ready shop-foundation and are traded at a discount against their value
standard. A discount of such cheques in cases of over-issues would, perhaps, most rapidly appear at the cheque
clearing centres, which accumulate an excess of these cheques. They would be the first to denounce such a bank, in
their own interest, when they can no longer exchange them for stray cheques they had issued themselves, because
the over-issuing bank has run out of them. This relationship is so obvious that such over-issues are no more likely
than over-issues of theatre or cinema or railway tickets or the over-selling of hotel room space to several travellers
who do not know of each other.


9

7. EXAMPLE OF A CLEARING BANK USING ONLY CREDIT CARDS

       1. C to B: Debited with Overdraft                               11. E to D: Good Purchased
       2. A to B: Goods                                                           12. E to C: Credit
       3. B to A: Transfer of Overdraft Credit                       13. C to E: Debit
       4. A to C: Credit                                                          14. B to E: Goods Orderd
       5. C to A: Debit                                                           15. E to B: Account Debited
       6. D to A: Labour                                                         16. B to C: Credited with Sales
       Proceeds
       7. A to D: Notice of Pay Credited                                17. C to F: Credit
            8. D to C: Pay Credited                                                18. F to C: Debit
            9. C to D: Purchases Debited                                                     1
          10. D to E: Account debited


                                                   A
                                            Employers
                                                                                                       F
                                                                                          Clearing centres




            D
                                                   C                                             B
       Employees                           Bank
                                                                                          Wholesalers




                                                     E
                                                  Shops




The approximate time sequence is indicated by numbers. As long as States are still as powerful tax collectors, one
can only hope that payment habits will not be developed too much in this direction. Why make it more easy for
tribute collectors?

Under this system the credit on credit cards themselves could come under a discount against their proclaimed value
standard. The acceptability of credit card payments would depend on there being no discount, or so small a
discount that it would be considered acceptable.

The form of the credit cards does, as well as that of cheque books and cheque accounts with a common bank,
indicate the existence of a private payment community within which all payments are cleared by technically
advanced transfers.

Certain kinds, at least of the small transactions, will probably always be easier and faster settled in coins or paper
money cash but such a comprehensive system is, theoretically, quite possible as well as the above sketched 100%
clearing cheque bank.
Both systems also indicate the difficulties which would arise when they are very widely practised and legally there
remains still a right of all creditors to demand cash, instead, regardless of whether this system, or another one, can
supply the required cash, as rapidly and extensively as it is asked for. This problem is usually overlooked by money
reformers and definitely not solved by the reckless printing and circulation of State paper money with legal tender -
as an "insurance" in such cases.

In all the above sketches a 100% passing-on of the credit obtained, within the main circle, has been assumed. The
following will roughly indicate how the participants get their cuts in this system.

10

8. SIMPLIFIED MODEL OF THE TURNOVER OF X 10,000 AT RETAIL PRICES, SHOWING,
ROUGHLY, HOW THE TURNOVER IS SPLIT UP AND BALANCED AMONG THE PARTICIPANTS

The figures used would probably correspond only to the turnover of a single shop during one week, based on a
stock of , let us say, 50,000.

All debt relationships are only abstracted here. Banks, wholesalers and shops and clearing centres have, naturally.
also employees. All have to pay taxes, interest, insurance, rent, fees etc. but all such complications have been
intentionally omitted here.
The Scottish System, amended by "shop foundation" and giro payments, has been taken as a base.
Actual profit rates, interest charges, fees and margins have been ignored as well as many of the costs.

Generally, one might comment. with W. B. Greene (in: "Mutual Banking") that whosover SELLS goods or labour
thereby BUYS money and that whosoever BUYS goods or labour does thereby SELL money.
From this point of view it becomes clear, that in the interest of all buyers and sellers alike, the buying and selling as
well as the production of this "commodity" MONEY should be as free as that of any other product or service, no
matter what form this money takes, if only it is neither coercive nor exclusive nor fraudulent.

This system is safer than any other against runs, speculation, forgery, inflation or deflation.
Only with it can the social problem and questions of underdevelopment be solved.

As a monetary freedom system it embraces all other rightful systems of monetary reform.


       1. B to A: 9,000 Paid for Goods                                     11. E to N: 9.500 Paid for Goods
       2. A to B: 500 Profit of Wholesalers                             12. E to C: Credit
       3. A to C: 500 Discount of Bill or IOU                          13. C to E: Debit
       4. A to E: 500 Employers' Profits                                   14. B to E: Goods Orderd
       5. C to E: 450 Bank's Profit Spent                                 15. E to B: 9,500 Paid for Goods
       6. D to A: 8,000 in Labour                                              16. B to E: 500 Wholesaler's Profit
       Spent Proceeds
       7. A to D: 8,000 in Wages                                                17. B to E: 500 Retained by Shops As
       Their Profit &
            8. D to E: 8,000 for Purchases                                              Spent by them
            9. E to D: 8,000 in Goods                                                18. C to F: 50 for Charges &
FEes
         10. D to E: Account debited                                               19. F to C: 50 "redeemed" by the
Clearing Centre
                                                                                                            at the shops




                                                    A
                                             Employers
                                                                                                        F
            D
                                                           C                                        B
       Employees
                                                                                             Wholesalers

                                                  Bank




                                                      E
                                                   Shops




(PLEASE NOTE: The numbers given above do not necessarily indicate the real sequencing of exchanges and
profits in this sketch. Nor was an attempt made to indicate all the profits e.g., of and from labour, nor are the
indicated margins realistic. I leave it to others to sketch a more complete and realistic image of these tangled
relationships of mutual profiteering, of voluntary win-win relationships. - J.Z., 1.1.03.)

11

Whoever would over-estimate (give more than is necessary for them) or under-estimate (by passing them on at less
than their market value, which should be, mostly, equal to their face or nominal value) such private money
certificates or other clearing means of exchange, could only harm himself.

Any attempts to over-issue would be fast found out - due to the limited circulation sphere and fast reflux, the free
market rate for these media, their public quotation, the publicity for the issue proceedings, and the note and credit
clearing arrangements between the issuing and clearing centres. He would also act against his own interests. He
would not only lose his good name but very possibly his business - for a small and temporary gain. He could not
harm the whole economy, since the general price level, reckoned in stable value standards, would remain
unaffected by his somewhat depreciated notes.
He would forego the real business opportunity he would have in this sphere: to supply an honest and serviceable
means of exchange, kept at par with its face value and calculating in a stable value - and serving to promote and
assure his sales.
Here, less than anywhere else, would the consumers be willing to accept shoddy goods or services (exchange
media and value standards) for any length of time.
The natural limit for all such issues, imposed by self-interest, is the amount at which the certificates are no longer
readily accepted at par. Whenever this limit is reached, issuers, in their own interest, will stop further issues for the
time being and all but their debtors will refuse to accept the certificates. Their natural reflux will then soon restore
the par rate.
As said above, no force or compulsion should be exerted upon the participants in any exchange act to resort only to
one particular means of exchange or to any particular (forced or exclusive) value standard. The choice of both,
exchange media and value standards, should be free - or determined only by private contracts and by the customs
of trading.

No government has the right to interfere with voluntary arrangements between all kinds of free exchangers or
traders (even if they had nothing but their working power to exchange as a "commodity" or service"), which these
contractors believe to be in their mutual interest.

Labour and services will become strong forces in a market under monetary freedom. It will be a seller's market
rather than a buyers' market for them, as soon as the issue monopoly for money is abolished.
Under certain conditions and in a perfect clearing system, the providers of labour and services could themselves
become effective issuers of standarised and typified claims upon their labour and services and get them widely
enough accepted, in their purchases, so that they will soon stream back to them, in payment for their labour or
services, i.e., they themselves would thus provide paid employment for themselves - and would have anticipated
that employment by their issues and spending their issues (their wages or salaries) in advance for getting their jobs.

Once a free market for gold exists again, then the value of a certain weight of gold on the free market would,
probably and for the time being, be most widely accepted, if only as "the least evil", the least liable to natural
depreciation and to manipulation. These clearing certificates, goods warrants, purchasing vouchers etc. would then
be turned into gold-value currency by expressing certain gold weights and by the pricing of goods and services in
gold weights - and the declarations of the issuers that they would take their notes at any time at their stated gold
weight values. The redemption of such certificates in metallic gold would and could then take place "only" on the
free market, in the usual gold trading, whenever someone really wanted gold instead of full consumer satisfaction
through other goods and services. Please note that this free gold market would make available, as an open
redemption fund, everywhere, all the gold that is freely traded in the whole world, which, obviously, far exceeds
the gold hoard or reserve that any bank of issue under the "classical" gold redemption standard ever managed to
accumulate It would be larger even than the gold hoards which the largest governments ever assembled - at the
expense of their tax victims, under the delusion that such hoard would be necessary for a sound currency.

Under effective stable value reckoning, this particular desire, for redeeming exchange media into their metallic
gold equivalents, would be expressed only by a few - apart from those needing gold for industrial purposes,
including jewellery and artwork. For long term holdings and under these conditions most would then prefer to sign
up for interest bearing gold loans, gold value bonds etc.

To speed up reflux of these private notes various steps could be taken: The circulation period could be shortened by
discounting bills & IOUs with shorter periods to run, by shortening the validity period of the certificates, by
accepting other means of payment only upon payment of a premium or by charging higher interest rates in
discounting the notes than would be required for these loans - all in the interest of keeping up a persistent and high
demand for the notes at their face value.

Someone suggested that the higher interest rate charges in such issues should be collected for the benefit of those
who are first in repaying these loans.

At present numerous legal restrictions make it hard to impossible to establish such a bank - apart from the
widespread ignorance of the possibility of monetary freedom and of its techniques. Objectively, every
businessman, economics student and unemployed ought to study this system in order to be prepared to introduce it
suddenly, as a self-help measure, in times of a severe economic crisis, when the material, moral and mental
bankruptcy of a government would make it politically impossible to prosecute a large-scale sudden and successful
application of this system, ridding e.g., a city of the size of Sydney or Melbourne, of 100,000 unemployed within a
few days, taking them of the relief rolls, turning them into producers & and tax payers (tax slaves). (It could be
done within hours, if the organisers know what they are doing, and the relevant news could be spread almost
immediately via broadcasting. Instant printing for notes and certificates has been available for a long time. Then
the politicians would not dare to apply the penal clauses against the organisers - because then they could easily lose
half a million votes thereby, during the next election. Alas, numerous popular prejudices among all kinds of people
remain the greatest obstacles.
A handbook on monetary freedom options is required. So far there exists only a long file of alphabetized notes on
monetary freedom ideas, facts and opinions, accessible under www.butterbach.net/freebank.htm

J.Z., 3/79 & 1.1.2003.

PP 41 78-92 FB Defence

Peace Plans 41/78
1

                  SOME NOTES ON FINANCING THE DEFENCE OF A FREE SOCIETY

                            WITHOUT COERCIVE TAXATION OR INFLATION

                 Slightly revised version of a paper prepared for an AIR discussion on 22/8/1971,
                                                   by John Zube.

I. INTRODUCTION

War, even conventional and defensive war, consists, usually, out of many unjust and coercive acts. So it is not
surprising that coercive finance is also the rule and that only few believe anything else would be possible. Even
many libertarians are subject to this error - and are thus followers of the mini-government rather than the
no-government concept. Probably the libertarian alternative: non-coercive financing, can be clearly visualised only
by those who can clearly visualise the alternative libertarian military defence system and the alternative libertarian
society it would defend.

Firstly, and shamelessly, it must be admitted that in a situation where one "nation" is enslaved and forced to fight
another enslaved "nation", the costs of the resulting slaughter and destruction cannot be covered by voluntary
means - except in cases where all concerned are voluntary slaves. This is no drawback for voluntary financing as is
here envisioned. Such a situation would have nothing to do with the defence of a free society.

Are there at least some examples how relatively free societies covered at least some of their war costs?

       "Even Socrates, that great and uncompromising seeker of the good and the true and the beautiful, did his
       time in the army. And remember, he had to buy his own weapons.'
       - William Olson in THE AUSTRALIAN, 61411965.

Who else bought his own weapons? The National Guard soldiers did, under Lafayette, during the French
Revolution. The first "Minutemen" of the American War of Independence owned their weapons. Probably
anywhere, the original militia forces in any country were self-financing, all adult and able-bodied men being
members and providing their own clothing, armour and weapons, often even transport, like horses.

Today, the modern, more expensive and heavier weapons (the rightful and discriminating among them) could be
paid for e.g. by levies and subscriptions among the volunteers, in the same way as some bush-fire brigades still
finance their equipment. (Admittedly, the self-help mentality is presently not very strong or quite obviously on the
increase.)

Inherently, such a private and non-coercive finance must be possible because, objectively, more than the required
amounts are already paid now in form of various taxes. I will assert here, and try to make believable below, that
voluntary financing of a free society would greatly reduce present defence expenditures and could do so without
reducing defence effectiveness, nay, it may even for the first time provide an effective defence!

The question is only whether alternative, private, libertarian defence agencies would be entrusted, voluntarily, with
all or part or sufficient of the funds spent today. (For reasons stated below I would deny that more needs to be spent
than is spent now - although I do admit that what we have now does not properly defend us.) This can and will and
should happen only to the extent that these alternative organisations become trusted and earn credit and good faith.
Naturally, they can do so only when and where they may be freely established and maintained. It would certainly
help when, under freedom of expression, one could point out how misplaced the trust in government defence
agencies was so far. I firmly believe that these agencies themselves, and the type of societies they defend, created
most of the defence problems and solved none properly. More on this later.

Peace Plans 41/79
2

Without a monopoly for defensive weapons and organisations, the government defence agencies would gradually
be replaced by private ones - in the relatively free countries. During the transition period the contributions to
private defence agencies could be mode deductible from taxes - not only from the taxable income. Thus the
lack of trust in governmental defence, to the extent that it exists already, would soon be revealed and made
effective.

The weapons monopoly cannot, I believe, be rationally defended as a monopoly for official bodies like the present
armed forces, but only as one for ALL honest and non-aggressive people and these, preferably, organised in an
ideal volunteer militia. (To discuss the details of such a militia would lead too far here.) I, for one, do want no
lesser and no wider spread of firearms and would try to prevent others from obtaining such weapons. I hold that
dishonest and aggressive people, criminals, in other words, should not be efficiently armed but rather forcefully
disarmed.

There are many people who cannot envision at all any privately organized and paid-for defence forces but this does
not justify the prohibition or suppression of such forces. The same people are often not aware that in their own
communities the various armed night-watch, security and patrol services provided by private agencies do already
outnumber the official police forces. People with fixed ideas are in the habit of ignoring facts. I grant that nobody
can possibly envision the whole freedom potential (by its very nature) and this does to some extent excuse this
particular failure of the imagination.

If long-term security risks like old age are considered as real enough to pay considerable premiums for old age
pensions and if even relatively small risks, like fire, accident and theft, are insured against, why then should people
not be willing to pay "insurance" for the kind of security obtainable through defence?

Many people have reduced the rightful functions of a government to that of an insurance company and have, going
one step further, complained only about the monopoly claimed by these insurance companies at present. Repeal
this monopoly to supply protection or security and we would anyhow arrive at the state of affairs here proposed.

As for readiness to pay: Many people even volunteer not merely to pay but to fight in many of today's immoral
wars. Surely, their lives are a greater investment than some of their earnings - which are greatly reduced in the
process, anyhow, in most instances. For a large concrete instance one should consider the situation of Israel. Apart
from the subsidies it obtained from governments as a result of the continuing big-power struggle between them, it
has largely been financed by voluntary contributions from sympathisers all over the world. Now, if its case would
be a completely just one, so just that even its enemy soldiers would perceive it, its financing problems and the
threat of war would have been over, long ago. Compare plan 202 in PEACE PLANS No. 12.

Indeed, one should not expect rational citizens to pay willingly for the insecurity resulting from preparations for
total warfare. But this would, certainly, not be a fault of a voluntary financing system but rather, one of its benefits.
Many of the expenditures now running under the heading of "defence" should not be paid for. Some of them are
not only useless but expenditures for downright aggressive actions. (I would include in the latter even naval patrols
etc. to keep refugees out.)

Some of the more obvious instances are expenditures on: ABC devices, heavy bombers, IBMs, heavy artillery and
most large Navy ships, and on submarines.

The more one argues that defence is a very essential service (implying that this would justify coercion), the more
one usually overlooks that this supposed great need and demand for it makes it at the same time correspondingly
easier to obtain voluntary contributions for it.

Peace Plans 41/80
3

Once most of the citizens of a community favoured defence preparations, who could hinder them to pay for what
they want? If people are even prepared to die, if necessary, in the defence of their community, then one may well
presume them to be willing to pay for their defence. If, on the other hand, they are not prepared to die for their
freedom, if necessary (or for the percentage of freedom they presently enjoy) then why should they be forced to
pay for such a defence?

I have also found that the more one sees a problem in financing defence voluntarily, the more one does, usually,
overlook the peace promoting characteristics of a free society, the cost reductions it would make possible and the
relative ease with which it could afford defence expenditures. This does even apply - although most people are not
aware of that - if only a single free society existed and it had to defend itself against numerous totalitarian
governments. (That a libertarian society would bring about a lasting peace and how it would do so in details,
making thus any large-scale defence expenditures superfluous, is too large a topic to be dealt with here. Compare
the previous Peace Plans issues with their numerous plans on this subject and especially the handbook in Peace
Plans Nos. 16-18.)

The bad financing systems we are suffering under at present may in themselves be major contributing factors to the
phenomenon of war. Compare the last section of this essay, before the appendix, and consider how much Hitler
was helped in his struggle for power by the preceding large scale inflation, 1913-1923 and the large scale
unemployment, from about 1922- 1938, rising to extremes in 1932. Both were the result of a bad monetary system,
as has been shown elsewhere.

Already Thomas Paine (in "The English System of Finance", Paris, 1796) recognised that there is a close
relationship between a bad system of finance and the occurrence of violence. The reverse might be expected from
proper financing methods, e.g. for defensive efforts. He said:

       "It is worthy of observation that every case of failure in finances, since the system of paper began, has
       produced a revolution in government, either total or partial. A failure in the finances of France produced the
       French Revolution. A failure in the finance of the Assignats broke up the revolutionary government, and
       produced the present French Constitution. A failure in the finances of the Old Congress of America, and the
       embarrassments it brought upon commerce, broke up the system of the old confederation, and produced the
       federal constitution." (Thus even the monetary concept of history goes largely back to his writings! - J.Z.,
       28.12.02.)

I would add to this that it is quite likely that a revolution in financial methods would also bring about a revolution
in defence. Some arguments in support of this opinion and dealing more particularly with unemployment, have
been compiled below. Moreover, a proper financial system would not only improve our defence position,

I assert, but would also help to prevent war by avoiding inflations and depressions, social and ideological unrest
and by helping to get rid of oppressive governments. Attempts to prove these points cannot be made here.


II. DEFINITION AND TYPES OF DEFENCE

One should realize that as long as "aggression" has not been satisfactorily defined (See peace plan 100 in Peace
PLANS No. 3), there is also no satisfactory or generally acceptable definition of "defence". Many people are so
confused on the subject that they cannot even distinguish between defensive and inherently aggressive weapons.
As a result we have atomic (and biological and chemical) "weapons", which are not really "weapons" at all but
merely murderous and destructive devices.

Moreover, "defence" presumes an enemy. The "enemy" has hardly ever been properly defined by any government
or anyone else, as far as I know, and yet some people still trust a bureaucratic defence effort against those whom
bureaucrats called our "enemies". To thoroughly discuss this aspect would also lead us too far away from our topic.

For me "defence" means any organised and forceful act to protect individual rights. Murray Rothbard, in "Power
and Market", pointed out that , as a necessary precondition for market activities, defence is no more unique than
e.g. food, clothing, shelter and even paper are. (I would add: and modern and free payment facilities.)
Peace Plans 41/81
4

Thus, why shouldn't it be provided in the same way?

In order to really start up a hornet's nest in any quiet gathering one should perhaps also ask whether some defence
efforts have not made even the successfully defended worse off than they would have been without a defence, in
cases of surrender, whenever the aim of the opponents was not wholesale murder or enslavement?

While one certainly cannot state that Europe would have been better off submitting without a fight to the Nazi
regime, it makes one wonder, considering how the defeated West Germany and Japan were soon economically
better-off than some of the defending and victorious countries.

The latter made certainly some basic mistakes in the type of defence they had chosen. Not only may many winners
have lost economically, in the attempts to defend their property, but they may even have lost more lives than the
defeated aggressors. Certainly, it cannot always be taken for granted that defence, even when successful, will grant
more protection to property and lives than in cases where no defence is attempted. Terms like defence, enemy,'
espionage ,treason, nation etc. are all too often used with too much emotional and not enough rational contents.

This kind of question leads us to discussions whether surrender and gradual integration of the aggressor, some
forms of assassination or of non-violent or revolutionary resistance, are not often better defensive means than the
conventional national and collectivist military efforts running under the name of defence.

Actually, one should distinguish between a wide variety of possible defensive efforts, in many forms and types.
There are probably different problems and opportunities with all of them and certainly some of them, although
called defensive efforts, do not deserve the name but are rather self-defeating actions. Here is a rough list of
distinctions to be made when considering financing defence

a) Peace-time defence forces and wartime military forces.

b) Armed neutrality should be distinguished from cold war efforts and arms races.

c) There are total wars with collective responsibility, wrong war aims, methods and weapons as opposed to limited
wars which might be no more than police actions applying only individual responsibility to a few political
criminals, as far as this is humanly possible.

d) A nuclear "defence" effort should be distinguished from a conventional defence effort and both from a
fundamentally libertarian defence effort.

e) Unpopular "defensive" wars declared by governments should not be mixed up with popular wars declared by the
citizens themselves.

f) Prolonged wars require different financial methods than Blitzkrieg affairs.

g) A defensive war which has the status quo or unconditional surrender as an aim, can be very different in
financing methods and most other respects from one aiming at liberation of the citizens on the other side.

h) A war in the own country may create more or less financial problems than a defensive war carried into the
enemy's territory.

i) A war conducted by a State, by any government or bureaucracy in the present sense, is likely to be very different
from a defensive war by a free society.) A war with unjust war aims (it may otherwise still be a defensive war) is
different from one which has only just war aims.

k) A defensive war with no war aims or unlimited war aims or demanding unconditional surrender, is very different
from one with limited aims only, or, exclusively, rightful aims. The former tends to be much longer and more
costly.
1) A war to defend a condition of oppression is different from a war to defend genuine individual human rights.
The former is an unjust defensive war or no defensive war at all, only the latter being a just defensive war, at least
in my eyes.

m) A publicly declared war or open war (conventional war) is very different from secret, terrorist, guerrilla or
revolutionary forceful actions.

n) A defensive war could either lead to readiness to surrender unconditionally, to refusal to surrender or to
preparations for effective resistance actions even after the official military forces had to surrender.

o) While most people would only call a declaration of war a defensive action in case of aggression, in some cases a
well thought out and prepared one-sided declaration of peace can be a more effective defensive method. Naturally,
both re-quire also different financial methods.

Peace Plans 41/82
5


p) Non-military defence, e.g. by private police forces, arbitration courts or security gadgets, is again in a different
category and requires, among other things, different financing methods.

q) Defensive efforts by conscripts, professional soldiers, career soldiers, mercenaries or nationalistic volunteers are
different from those conducted e.g., by properly motivated, trained, armed and part-time serving citizen soldiers.

r) Defensive efforts by badly motivated, trained and armed militia conscripts are likely to be much less effective
than those of well motivated, trained and armed militia volunteers.

s) Armed and non-violent defensive efforts are another very basic distinction.
( I am concerned with the latter only to the extent that the latter, in some situations, can reduce the need for military
force. Exclusive reliance on non-violent methods alone results too often in no defence at all.)

One could combine, further separate or add to these classes of defensive wars or efforts. Even a cursory glance will
show that most of them create somewhat different problems and opportunities regarding their financing.

To simplify our task and remain within the range of our topic, the following will consider only the rightful
alternatives among the above listed possibilities. We should never fall into the trap of ascribing difficulties in
financing unjust wars to the financing of just ones.

Naturally, to deal with each of these cases in detail is not possible, here, either. A survey of different proposals to
finance defence will have to suffice, at least to start a more detailed discussion.


III. VARIOUS POSSIBLE OR PROPOSED WAYS OF FINANCING DEFENSIVE WARS

Perhaps only one of these points is so far undisputed: The wrong type of finance or the failure to finance defence
properly, could render defence impossible or ineffective.

So many difficulties are foreseen in defending any large-scale defence efforts that many of those calling
themselves libertarians have not attempted to apply freedom principles in this sphere and still hold that only
coercive finance is an efficient means to finance the defence of freedom.

Another fact which is hardly ever disputed is that all war efforts must in reality be funded by currently available
goods and services, either accumulated in the pastor currently produced. Future goods and services can only be
utilised indirectly, to induce present citizens to part with some of their claims to currently available goods and
services. No inflationary policy or coercive loan measure can avoid this fact.
While this is not the place to discuss any of the proposed measure; in detail, as this could only lead to the neglect of
other possible financing steps and cloud the fact that different financing methods are required for different
occasions, at least an attempt is made here to list the variety of measures proposed. Such a list may at least serve as
a basis for a more thorough discussion of the whole issue.

The most thorough work on this subject, that I know of, is G. Holzhauer's: "Barzahlung in Besetzten Gebieten"
(Cash Payments in Occupied Territories), Fischer, Jena, 1938. H. was a friend of Ulrich von Beckerath, also a
monetary freedom advocate and he had to write guardedly, under Nazi censorship, pretending to offer only
mili-tarily valuable information. The section of his manuscript dealing with revolutionary warfare was not
published but may still exist in some State archives. Beckerath's manuscript on financing rightful revolutions was
burned in an air raid on Berlin. Neither of them is alive today. I intend to translate and publish H.'s work in this
series. It is one of the classical applications of monetary freedom principles.

Some of the various steps possible:

a) Essential supplies might be stockpiled and suitably stored, decentralized for easy access. Still considerable
transport to the "consumers" would be required and for this good communication and transport services. No more
than a "Blitzkrieg" could be financed in this way.

Peace Plans 41/ 83
6

b) Prompt payment in cash, of local market prices, would allow troops to live off the land, bring out hidden
supplies and suppliers from far away and will create friends where the alternatives of requisitioning (including
payment with inflated paper money) and looting would create enemies. How to obtain the cash required for this is
hinted at in some of the points below.

c) Inflation is out as a financing method. It amounts to taxation, requisitioning and looting and creates special
economic disturbances. The sound exchange media required for b) ought to be provided without deteriorating the
currency in any way.

d) One method would appear to be to save these up in form of gold or silver coins or in legal tender state paper
money. The war chest is one of the oldest methods of financing wars - but the largest war chest would not suffice
for more than some days in a large-scale modern war of the conventional type. In a few days or at most in a few
weeks it would be exhausted. This does not mean that one should not at all attempt to provide a precious metal war
chest precisely for a limited kind of war. Precious metal coins are often acceptable where even the best kind of
pa-per money might, at least temporarily, be refused and e.g. silver coins can now be provided relatively cheaply.
A relatively small amount in silver coins as reward for desertion from a dictator and in payment for the arms they
bring with them, could induce many of the conscript "tools" of aggressive governments to join the right side,
particularly when they come from underdeveloped countries, are not discriminated against as "aliens" nor
confronted with threats to their rightful collective aspirations.

Legal tender money, when accumulated in large quantities and suddenly released at the beginning of a war, would,
in spite of this particular situation, with its hoarding tendencies, act inflationary. Thus only the metal coin
accumulation would be right and advisable - and perhaps, in future, largely practicable: when wars have been
reduced to moral and rational proportions: ideally, mere police-actions.

e) Among coercive taxation, voluntary taxation or voluntary contributions, subscription fees, premiums and
donations, coercive taxation is out by the definition of our topic. Here we should realize that taxes have even
caused some wars and revolutions and have made aggressive wars possible or likely or helped to prolong
unpopular wars. They cannot help infringing property rights. Thus the question is only, how can we do without
them? The reply depends on the type of war to be con-ducted and the state of enlightenment achieved. For instance,
an unpopular war to defend a coercive regime, would not or ought not to have a chance to be financed voluntarily.
A widely desired and genuine defence service is worth its price and likely to find willing buyers and subscribers,
even donors, like any other genuine service.

f) Forced loans are also out, by the definition of our topic. Voluntarily subscribed-to loans would be another matter
- if care is taken that they are not to be redeemed by involuntary and innocent tax victims. The greatest asset for the
redemption of defensive war loans lies in the public property of an aggressive government and in the private
property of its voluntary supporters. How to mobilise this, e.g. for the financing of a libertarian party, has been
described in PEACE PLANS No. 19C "Let Freedom Pay Its Way" and will be further described in a future issue.

g) Voluntary loans, on the same basis, could also be subscribed to on the black market and across frontiers, e.g. by
some of the people to be liberated - in case it comes to a defensive war. They could also be subscribed to on the
black market to finance current resistance actions against a dictatorial regime. Thus the need for defensive military
action on our side might be altogether avoided.

h) One could either rely on sufficient of the forced and exclusive legal tender currency of the State being available
for voluntary defence contributions and loan subscriptions or could, as I believe one should, provide for new,
competitive, sound and non-coercive means of payment, various free market currencies.

i) Tax foundation money could be issued and used as a means of payment by the defensive forces. Its reflux and
thereby its value, even its gold value, could be assured by keeping the issues in proper relation to the taxes raised.
To prevent over-issues and lasting deterioration, these exchange media should be subject to a free market rate. G.
Holzhauer developed this proposal in details.

Peace Plans 41/84
7

j) As taxation is an abomination to most libertarians, they would have to apply the principles involved in the issue
of sound paper money based on tax foundation to produce sound paper money based on voluntary contributions,
loan subscriptions, premiums, fees, charges and subscriptions. Gold-weight reckoning and a free market rate for
such paper money would be basic requirements to help keep it at par.

k) Paper money based on tax foundation might also be considered as unobjectionable by libertarians if it is
perceived and funded in a way to be lastly a claim against the individual claims the liberated citizen of the
aggressive governments, and also the defending citizens, have towards the public property of the aggressing
government. This taxation would then amount to a clearing against these indemnification claims. Even under
monetary freedom a clearing of due claims should be compulsory. The mutual claims must here be made visible
and understandable - as explained in detail in Peace Plans No. 19 C for another purpose. In this case not election
campaign but military campaign expenses are to be covered, basically in the same way. In both cases only the
campaign can release the funds for the campaign.

The funds which could thus be mobilised would in Germany and the US amount to at most about $ 30.000 per tax
payer and in Australia to at most $ 1 million per tax payer. Naturally, for optimal effectiveness of the campaigns
only a fraction of these assets should be mobilised - but they would permit the financing of quite some efforts, both
politically and militarily, especially when combined with the methods of political and military jiu jitsu. (See
especially Peace Plans Nos. 16-17.)

1) Loan subscriptions and voluntary contributions could be facilitated by issuing, to a very limited extent even as
means of exchange, small notes with which larger loan certificates can be subscribed. Secrecy and anonymity may
have to be assured when the loan subscription is e.g., for the benefit of illegal resistance groups. Even higher
ranking members of the enemy's military and administrative forces may want to obtain some of these loan
certificates, even if only as a life insurance, in case the regime is overthrown by the revolutionaries or its foreign
enemies. Again, as redemption "fund", the national assets of the defeated aggressive regime are to be utilised.

m) One may either hope that once large scale defensive or resistance actions have begun, normal exchanges could
still be fully carried out, undisturbed, with the conventional exclusive and forced legal tender currency (which
mobilises, anyhow, only a fraction of a society's productive potential) or one may have learned from history and
expect a large-scale breakdown of the payment system due to hoarding and cessation or interruption of clearing
facilities and the resulting insistence on cash payments instead, which may well lead to an increasing currency
famine, if this is not covered up, temporarily, by a gradual and then progressive inflation with all its disastrous
results.

Thus one ought to be prepared not only to continue but even to expand the previous exchange economy by the
issue of private, sound, competitive issues of exchange-media subject to a free market rate (to make them inflation
proof), even outside the circle of military payments. Otherwise, the economic basis for further defensive efforts
would become undermined and the military sector might withdraw still more exchange media from the private
sector which are required for its turnover.

The most suitable and immediately available issuing centres for new and non-coercive means of exchange would
be large department stores, associations of shops and public utilities. (Compare Peace Plans Nos. 9-11.)

n) Jarret B. Wollstein, in "Society Without Coercion", suggested (on page 37) that large corporations might defend
themselves by building armaments and smaller firms could contract for defence with specific protection
companies.

0) He also suggested that primary nuclear targets, like centres of social organisation or population centres, and even
agricultural communities, could do likewise.
(Here he overlooked that against nuclear targets they could do much better by re-organising on an exterritorial
basis so that they would cease to be nuclear targets. See PEACE PLANS 16-17.)

p) Wollstein, on p. 38 of the same essay, also made the suggestion, for military research, that military research
establishments could issue special "defence bonds" to raise capital. The principal and interest on these could then
be paid back out of profits from the resulting patents and products. (If it were really true that war is the mother of
most technical innovations then this could be very successful.)

Peace Plans 41/85
8

q) Moreover, he also suggested that specific customers for military defence services could ease financing
difficulties. He envisioned that ships could contract for naval and planes for air protection. (Under such a
contractual freedom there might be less likelihood of disastrous defence preparation shortages like those often
observed at the beginning of World War II. Customers would then no longer depend on the few units the central
strategic planners of the bureaucracy might be willing and able to spare.)

r) Wollstein also suggested paid world policeman services: e.g. American military agencies could contract to
protect American investments overseas or to protect foreign communities from communist invasion or from local
despots. (Naturally, the agencies hired would have to offer better services than were offered e.g., in the Korean and
Vietnam Wars - in order to find many paying customers.)

s) The finance for an ideal militia force could, at least in peace-time, be provided simply by membership fees. I am
optimistic enough to believe that once an ideal military force for the protection of human rights (individual human
rights!) is set up and has, to some extent already proven its worth, it will find less difficulties in finding the
financial means for its remaining, relatively small-scale defensive requirements, than currently the churches have
in financing their charitable projects. The detailed description for such an ideal force, its strategy and tactics, must
be left for another long essay.

t) Morris and Linda Tannehill, in "The Market for Liberty" and "Liberty via the Marke", recommend insurance
companies as the most suitable organizations for financing the defence of their members' liberty.

u) Efficient means to finance the own defensive efforts should also be accompanied by suitable measures to render
the enemy (the aggressive government ) unfinancial. This could be done by encouraging well organized tax-strikes
against such a government, combined with wide-spread refusals to accept its paper money. This would, among
other things, require the occupation of the central bank and putting it out of action and spreading of the knowledge
of monetary freedom, i.e. how the subjects can monetarily arrange the exchanges they desire between them without
the aid of a dictatorial regime's paper money.
Large scale forgery is not advisable for this purpose because it is not only dishonest but also counter-productive. It
would amount to economic warfare against one's allies and would weaken the economic strength of the resistance
rather than strengthen it. It would also create many enemies.

A comprehensive survey would, probably, contain many more such proposals. Here, these must suffice. I for one
am always willing to listen to others and found Thomas Jefferson's proposals on the subject so unsatisfactory that I
do not even list them here.
IV. SOME POINTS TO INDICATE THAT THE DEFENCE OF A FREE SOCIETY

     WOULD BE FAR LESS COSTLY THAN THE DEFENCE OF THE PRESENT SOCIETY

     - AND, CONSEQUENTLY, MUCH EASIER TO FINANCE

a) Only pathological societies like our present ones (See PEACE PLANS 16-17) are subject to many and
large-scale attacks, which are often no more than defences against their excesses, and are thus costly to defend and
frequently challenged to defend themselves. Literally hundreds of aspects of our present societies are war-rather
than peace-promoting.

b) A free society would not try to defend itself with "weapons" which already by their very nature offend against
individual rights. Remember, its main aim is to protect individual rights or rather to allow their full enjoyment, not
to organise to suppress them or to ignore them to a large extent, if that happens only across an arbitrarily set border.

c) Only volunteers would fight for it and among these only well motivated, well-trained, organized and armed
ones, not conscripts, career soldiers, professionals or mercenaries. (This is still strongly contested by many



Peace Plans 41/86
 9

libertarians. I hold that the defence of individual liberty by all able-bodied men and women is an individual
responsibility which cannot rightly or efficiently be delegated to others, not even to "professionals".)

d) Most of these volunteers would, naturally, at least in peace time, be only part-time soldiers and otherwise
self-supporting. Thus they could be largely self-financing, with larger and more expensive equipment financed by
whole units of volunteers.

e) Large-scale military actions would largely be reduced to mere police actions. How this can be done has been
shown and will be shown elsewhere.

f) Only the all-essential war installations would be attacked and destroyed, e.g. furnaces, oil refineries and
manufacturers of bearings. ( See plan 186 in PEACE PLANS No. 8.)

g) No "overkill" powers of "defence" would be bought, voluntarily, by members of a free society.

h) Rightful war aims would greatly reduce the need for defence or for great overpowering force to gain the victory.

i) While a free society would have more liberty to defend - and thus less of a defence problem, in other respects it
would have less to defend: It would not go to war to defend its "honour" or "prestige", dictatorial "allies", borders,
territorial dominance(*) or exclusive jurisdiction. (*) Often misnamed: "integrity".

j) Moreover, a truly free society could turn almost anyone into its ally and would thus have very few enemies left
to fight.

k) Its discriminatory kind of warfare would also help to reduce the number of its enemies. Indeed, most enemies
are, unnecessarily and without justification, MADE, by wrongful war aims, methods and weapons.

1) A free society could largely use the weapons produced for the enemy's forces and surrendered to it or sold
cheaply to it by prisoners and deserters.

m) A free society could even use the enemy's conscripted manpower against him by causing military insurrections,
revolutions or mass desertions and recruiting allies among the prisoners and deserters.
n) A free society could afford to largely replace (not entirely!) armed defence by non-violent methods like
propaganda, proclamations and appeals, spreading revolutionary and liberating ideas. Sometimes and with only
small efforts astonishingly large successes can be achieved in this way. The question of military disobedience and
desertion, of a military form of jiu jitsu, is too large to be discussed here. Compare e.g. pp. 241 ff of Peace Plans
16-17.

o) The abolition of standing armies and their replacement by "on-the-minute-men" would lead to a more rapid
mobilisation, when necessary, and would greatly reduce costs.

p) The high costs and corruption inevitably associated with central bureaucratic planning and administration, would
be avoided by an ideal militia organization. Not even a small professional officer corps, like that of Switzerland,
numbering about 800, might be required then.

q) Honest money would help to keep prices down. So would the productive potential released by free money.

For details on many of these points see back issues of the Peace Plans series.


V. WHAT FACTORS WOULD MAKE IT EASIER TO FINANCE A FREE SOCIETY?

A "Laissez faire" economy would be more likely to make optimal use of all manpower and creative talent. It would
thus multiply output and reduce the percentage of the income required for a sufficient defence. Moreover, it would
save the present taxpayers many expenditures he does not desire at all. It would allow the consumers to select only
the defensive services they really need and want. It would, through free competition, ensure top services at
acceptable prices. There would be no monetary difficulties to move and transfer the resources offered for defence
purposes and nobody would be mislead or defrauded through an inflation. The labour force would be further
increased through immigrants, refugees and deserters. Trading with the enemy (rather, his subjects and victims),
even during wartime would still be profitable and need not harm the own side. Compare plan 183 in PEACE
PLANS No. 8.

As said before, a free society would have many less enemies and all would be, comparatively, weaker.

Peace Plans 41/87
10

There would also be a final redemption fund available to pay back the funds invested in a successful defence: It
would consist of the property and the earnings potential of all those who invaded individual rights to such an extent
that they made military countermeasures necessary. To this could be added the usually vast assets formerly
administered, supposedly in the "public interest" by the bureaucracy of the enemy regime, including most of the
public utilities, much land, many mines and manufacturing facilities - the assets of the bankrupt and defeated
enemy regime.

Then no unpopular wars would be declared (by the free society), wars which at most are only in the interest of a
few powerful men, but only those defensive wars which are so popular that they would not only be approved but
also financially and otherwise supported by most members of the free community.


VI. SOME QUESTIONS AND STATEMENTS TO CAST DOUBTS

      ON THE ALL TOO FACILE ASSUMPTION

      THAT TODAY'S GOVERNMENTS ACTUALLY PROVIDE DEFENSIVE SERVICES

1. Do you believe that the usual government financing methods of taxation, forced loans, inflation and
expropriation leave the economic strength of a country unimpaired?

2. Do you believe that government defence expenditures are, as a rule, efficiently spent to obtain maximum effect
for every defence dollar spent?
3. What kind of a defence have you in mind - seeing, e.g., that already now everybody has at least some
Strontium 90 (a dangerous and long lasting radioactive isotope in his bones, as a result of preparations for nuclear
"defence"?

4. Is anybody today safe, anywhere on earth, from an ABC attack? Warning time for the U.K was already by
1966 down to 2 minutes. What efficient countermeasures would you engage in during your last 2 minutes?

5. Isn't "Si vis pace, para bellum" (If you want peace, prepare for war!) still your and every government's major
excuse for conventional and "modern" war preparations? What do you expect when at the same time no
preparations are made at all to ensure a lasting peace? (Compare Peace Plans 16-17.)

6. What do you expect to result from the present "defensive" arms race on both sides, seeing that according to
Otto Lehmann Russbueldt's survey among 1656 arms races, since 650 B.C., no less than 1640 or 99% ended in
war?

7. How large or small do you believe the risk of an accidental nuclear war to be? How much are you really risking
on the assumption that your opinion is true?

8. Have military alliances led us to less or more involvements in wars?

9. Do you believe that the deterrent effect of nuclear weapons is and always will be so large that you willingly bet
your life and that of your family on it?

10. In recent years the US government has deliberately let the USSR catch up with it in military destructive power,
even bypass it, under the assumption of "over-kill" capacity already being available. Do you still believe that the
"balance of power" and the "balance of terror" are worth the risks involved?

11. Do you believe the rulers are always sufficiently rational and informed at all times so that they can safely be
entrusted with the decisions over your survival and that of your family?

12. Do you realize the extent to which government defence decisions are already made by machines and computers
and based on computer observations and conclusions? Do you believe these machines to be sufficiently
"infallible"?

13. Who, in your opinion, is capable, among the politicians, bureaucrats and generals you know of, to decide
properly for you whether, when and what degree and kind of defensive force is required?

14. Are you aware that IBMs were mostly installed not to defend cities but, instead, military installations, thus
providing a defence for the defensive potential but none for those to be defended?

15. Are you satisfied with the conduct of your governments during the last wars, when democratic and supposedly
liberating governments , e.g. during the Korean and the Vietnam war, did not explore the full defensive potential of
revolutionary warfare, when they did not seriously try to win these wars and thereby at least a local and temporary
peace by attempts to overthrow the North Korean and North Vietnamese regimes?


Peace Plans 41/88
11

16. Are you aware that most of the present defence expenditure just goes to cover salaries? ("The cost of the
nation's post office network was almost as much as maintaining our entire defence machine : $ 1000 million went
to meet the operational and capital costs of the post office, compared with a defence vote of $ 1,134 million - and
all but $ 220 million of defence spending was swallowed up by salaries and expenses." - Alan Ramsey, THE
AUSTRALIAN, 23/8/71. The later figures that I have seen were not much different.)

17. A large percentage of our income (surely, one thing to be defended) is already stolen from us under the
pretence of an effective and modern defence effort.
18. Now and then it leaks out how little the Australian government, for instance, believes itself in the effectiveness
of its defence preparations, how much it relies on its "powerful allies", regardless of experiences with them during
WW I and WW II. It has so for successfully managed to ignore the evidence in favour of independent defence
capabilities provided by countries like Sweden and Switzerland, Israel and Yugoslavia.

19. Do you believe that genuine "defence" requires the "overkill" capacities which the super-powers now have?

20. When Australia was first attacked in Darwin, where was then our defence and how effective was it? According
to a report in THE DAILY TELEGRAPH, Sept. 22, 1966, chaos and panic resulted. Drunken soldiers started to
loot and civilians had to arm themselves against their looting protectors. The military police attempted to establish
a military dictatorship. Mass desertion took place. Many people were killed, many ships sunk or damaged and
much of the township was flattened. Possibly not even one single Japanese aeroplane was shot down. By 1966 the
official records of this event were still secret! It seems that no defence but only a retreat plan existed combined
with a scorched earth policy.

Where were most of Australia's troops in the beginning of WW II? In the Middle East. For the defence of
Singapore only a sea attack was envisioned. There were only obsolete planes, lacking in engines, spares and trained
personnel. No carriers, no battleships were available. Australia's best general, who, quite sensibly, managed to
escape from Singapore, was blamed for this and replaced by one of the typical career soldiers. All those, who still
believe that nothing better could have been done, have learned nothing from their mistakes and still show a great
lack of imagination.

21. The dozen or so US military bases now existing in Australia, whatever their defensive military value may be to
the U.S., are certainly a threat to their surroundings in case of war because they invite counter attacks.
Incredible as it sounds, but there are still military installations in the middle of Sydney Harbour.

22. From the mere existence of nuclear submarines one can conclude that only they can temporarily remain
unharmed during a nuclear war. Yet many people are proud of their existence!

23. On 4/6/62 Lieut.-Gen. H. Gordon Bennett said that an invasion force of 1000 men could take Australia and
that, as usual, "we are now providing for the last war instead of the next one." (SYDNEY MORNING HERALD,
516162.) Since then many estimates have been made how many miles of Australian coastline the Australian armed
forces could actually defend. They went from 2 to no more than 20 miles!

24. The military experts in Germany, during WW II, ignored the danger of air raids on the dams in the Ruhr. A
chief mayor in the area, named Dillgardt, warned them in vain. And when these dams were finally destroyed, the
resulting flood killed more than 1,000 POW's from the allied forces.

25. Have governmental defence experts really ever revealed great defensive expertise and put it into practice during
WW I and WW II or during other wars? Think of the many blunders which were discovered, of the continuously
increasing number of civilians rather than soldiers killed during recent wars, the repeated and vain warnings about
the coming attack on Pearl Harbour. When hearing of such instances one can hardly help asking: "What defence?"

Peace Plans 41/89
12

Think of the "defence" of Singapore and of its recovery, the hard way, which the Japanese had avoided. Think of
the senseless "defence" policy of "scorched earth", already a failure for hundreds if not thousands of years and still
resorted to by primitive "minds" in command. Think of the crime and absurdity of putting all Americans of
Japanese descend into concentration camps. They were more attached to Americanism at its best than most
Americans were; and yet they were treated as enemies, due to unanalysed collectivist-nationalist notions.
Think of the air defences during WW II - which did not prevent the flattening of cities and vast population losses.
Almost every reader must have read some stories about almost unbelievable bureaucratic bungling and time delays
before the bureaucratic military "minds" permitted at least the part-application of military innovations. (Instances
are Mommsen's diving bell to help submariners, Owen's machine gun, years of delays in accepting the first tanks
and machine guns.)
26. Can anyone really forget most of the lies uttered by governments in war-time, on both sides, "to preserve
morale"?

27. Do you consider the usual demands for "unconditional surrender" and the absence of any clear or rightful war
aims or peace aims to be very rational and peace promoting?

28. Can you close your eyes to inter-service rivalries, to experts, who let Australian soldiers in Vietnam go into
battle zones armoured by felt hats instead of by heat insulated, well ventilated and camouflaged steel or other
protective helmets?
I believe that after all these and numerous similar experiences with governmental "defence" efforts only something
like a religious faith in governments - even if they are only "limited" governments, can still bring about a faith in
and reliance on govern-mental "defence"..


VII. HOW DOES THE FINANCING OF DEFENCE TIE IN WITH THE FINANCING OF OTHER
ECONOMIC

        AIMS, E.G. WITH THE FINANCING OF THE ABOLITION OF UNEMPLOYMENT?

From at least 10 different angles would the financing of full employment, when successful, improve our defensive
military position and thereby help greatly to reduce defence expenditures:

1. The additional workers, the formerly unemployed, would increase the GNP. Social services would cost
correspondingly less. It would, therefore, be much easier to pay for defence.

2. Greater division of labour would be possible. There would be a stronger interest in rationalisations. Productivity
would increase. Everybody would tend to take up or remain in jobs he is most suited for. The higher productivity
resulting from all this would allow a greater expenditure on armament or would provide more for the same amount.
(That greater expenditures and more manpower are the only ways out is only believed by people with a poor
imagination. Sometimes, even with both, less might be achieved.)

3. Rationalisation measures would really multiply productivity. All worthwhile ideas could be financed and
workers would be much more likely to come forward with them, since they would no longer be afraid of
unemployment. The incentive to utilise new and good ideas would be provided by the strong competition under
monetary freedom and the shortage and high price of labour.

4. Immigration would become completely free as there would be jobs for everyone. The more manpower we would
have, the better we could, generally, defend Australia. More immigrant workers would lead to a still greater
division of labour and still greater productivity so that more resources would be available for defence efforts.

5. Then we could, easily, accept an unlimited number of refugees from communist countries, e.g. the refugees from
China, Vietnam, Cambodia and other places, who are now turned back, sometimes forcefully, using "defence"
forces, creating enemies and declaring the bankruptcy of our present economic system. Thus we could lessen the
military and economic strength of the communist regimes while increasing our strength correspondingly, or, seeing

Peace Plans 41/90
13

how much many of these people suffered under communism and other dictatorships, even out of proportion.

6. Abolition of unemployment (and the abolition of inflation which would go along with it as a result of the same,
largely monetary, measures) would help to convert many of our communists to a free economic system and lessen
the danger of sabotage and espionage in case of a war with a communist regime.

7. We could then successfully advise underdeveloped countries how to get rid of their unemployment and fully use
their other resources, thereby effectively fighting communism and dictatorships in these countries and turning them
into worthwhile allies.
8. The communist regimes would not want to lag too far behind in economic progress. They would have to adopt
some of our methods in order to get rid of their unemployment, (It is only a propaganda myth that they don't have
any.) Slave labourers and workers employed by the State cannot be regarded as fully employed in the true
mea-ning of the word and are far less productive than free and unexploited labourers. Naturally, prosperous
subjects would increase their political opposition against dictatorships and would be far less likely to hate us.

9. A system which would make it possible to finance all productive jobs would also make it possible or much
easier to finance a revolution or a military uprising against a dictatorship, For long periods in-between, for
instance, the revolutionary troops could support themselves on the spot, by their own productive work, while
staying under arms and forming citizen armies. Although the financing of the actual fighting periods of a military
insurrection or revolution and of the troop movements in-between, could not be undertaken in this fashion, for
more than a few days, this example shows, nevertheless, that there is a relationship between the two finance
problems. Many military insurrections or revolution attempts failed because of financial problems. Obviously, the
overthrow of every dictator would almost completely abolish the danger of war.

10. In case we were attacked by a dictator before we had a chance to have him overthrown, we could induce his
soldiers to turn their arms against him or at least to surrender and declare themselves neutral. We would have to
offer them freedom (not treatment as enemies turned into prisoners of war, but, instead, treatment as allies or
guests) and well-paid and unexploited jobs in our countries. Not many Chinese or Indonesian soldiers, for instance,
would resist such offers.

In other words, one of the best methods to avoid war and to strengthen Australia's military position would be to
abolish unemployment. (Could one interest the conventional military "minds" in this?) How could this be done?
Details have been given e.g. in PEACE PLANS No. 10 and in Nos. 19B and 40. A hint must suffice here:

Freedom to issue any kind of exchange medium which is not legal tender and therefore cannot be inflated,
combined with freedom to choose any value standard one likes, would, through free competition (letting only the
good media and standards survive and driving out the bad ones) provide enough sound exchange media for making
every desired exchange between workers.. employers, shopkeepers, raw material suppliers, consumers, creditors
and debtors possible. If every kind of capital, including working power, could freely be exchanged into goods or
into some kind of exchange medium first and thereafter into goods or services, then there would no longer be any
unemployment of the involuntary kind. Monetary freedom would make this possible and under it the good money
would, inevitably, drive out the bad, contrary to the common misinterpretation of Gresham's Law.

                                                  APPENDIX 1

                    SOME REMARKS ON THE IMPORTANCE OF THE "ABILITY TO PAY"

                      AS A FOUNDATION FOR SUCCESSFUL RESISTANCE ACTIONS

A precondition for the operational readiness of revolutionary troops is their sufficient supply with food, uniforms,
weapons and shelter. If the revolutionary army could pay for these necessities with a means of payment voluntarily
accepted by the population (not just hesitatingly and doubtfully for want of something better), a means of payment
which is not continuously deteriorating, then it does possess a powerful means against the government to be
overthrown. This means was feared already by the rulers in ancient times. Caesar, for instance, prohibited the


Peace Plans 41/91
14

possession of more than 100,000sestertia. Any subject possessing more cash could have endangered Caesar's
position.

The Jesuits of Paraguay went so far as to prohibit their Indian subjects the possession of any means of payment.
Goethe once commented to Eckermann, upon the saying by Byron:

                                       "Much money and no authorities!"
       (A re-translation from the German! From "memory" it runs: "Viel Geld und keine Obrigkeit!")
that the possession of much money would indeed emancipate a man from his rulers. Compare the lack of interest of
people like Harry Brown in general freedom, after they had it financially made, by operating within the framework
or through the loopholes of the present system. They come to believe that so much freedom is available in this way
that they no longer worry about the rest. Compare the almost complete tax exemption of many millionaires.

Today's rulers are, likewise, afraid of the independence people can obtain through the possession of gold (still the
most stable means of payment) or other cash. In Eastern Germany, shops are under legal obligation to hand in their
cash takings daily - with the exception of a small cash reserve. Generally, in countries ruled by communists, the
possession of means of payment like gold or other means not authorised by the government, is outlawed. This is
largely the case not only under communist regimes.

Because gold attracts food even from distant areas much more so than a magnet attracts nearby iron, any army
whose own means of payment would be accepted like gold, would be independent insofar. No proof is required
that a revolutionary army could not obtain any credit in a totalitarian State from the only available creditor, the
central bank of the State (or its subsidiaries). At the same time, it is obvious that a revolution must be
systematically financed, like a war, because in most instances it lasts several days, if not weeks or months.
Moreover, the dependants of the revolutionaries must be supported.

The rest of the population would also adopt a more sympathetic attitude towards a revolution when it may entertain
a justified trust that the new revolutionary government would be able to continue social services and to avoid a
currency famine, which could result in a reversal to barter and a widespread slavish dependence on the few who
still possess means of payment.
Most of the sentences in this section were taken almost verbatim from notes by Ulrich von Beckerath, who
remarked once, upon the East German uprising of 17/6/1953:

       "The most obvious and important action would have been to create a means of payment which is
       independent of the Soviets. Apparently, nobody thought of that. In politics the victory goes to the ones who
       can command cash. As before, the Soviets only are in this position and the German workers didn't even
       dream that this could be otherwise. Contrary to this, Lenin immediately occupied the central note printing
       press in Petersburg, as soon as he had won over the local garrison. Now he had to win for he was the only
       one in Russia who was able to pay. None of the other revolutionaries had studied the question: 'How does
       one pay on the day after the revolution and will one be paid?"'


                                                  APPENDIX 2

                 WHAT IS THE EFFECT OF A REVOLUTION OR A WAR ON PAYMENTS?

Almost every revolution or war leads to widespread hoarding of means of payment. Under centralised and
monopolised money this hoarding can easily lead to a catastrophic money shortage. Why is there such a special
intensity of hoarding at such times? Everybody is attempting to accumulate as much cash as possible for
emergencies, like unemployment or escape or for the purchase of scarce goods. Thus he postpones his usual
purchases and the payment of his debts, as much as possible. Banks cease granting loans because they assume that
the revolution or war might endanger repayments. Money transfers do no longer take place, at least to certain areas,
because there is no certainty that the money will arrive. As soon as fighting has begun, banks are regularly closed
and their books either destroyed or put away as safely as possible. At least temporarily all non-cash transactions
come then to a stop - and thus the need for cash grows immensely - where trading is still possible. Moreover,
refugees fleeing from the combat zones take much cash with them and increase the shortage. The old government
will also always try to remove local cash stocks before they could fall into the hands of the revolutionaries or
insurrectionists or the enemy in a war.

Sales difficulties, production stoppages and unemployment are the inevitable results and they tend to make the
hoarding of cash still worse. Furthermore, revolutions and wars usually bring special taxes which means that still
more means of payment are temporarily withdrawn from circulation - and it is likely that there will be more than
the usual delays in spending these funds again.
Peace Plans 41/92
15


Because of these difficulties, confirmed by experience numerous times, the revolutionaries and warring parties
must think of providing alternative means of payment, at least in form of sound emergency monies.


                                                    APPENDIX 3

               FINANCING OF RESISTANCE GROUPS BEFORE A GENERAL REVOLUTION

Partisans fighting for human rights should attempt to collect voluntary taxes in a wide area around their base. They
should insist that these voluntary taxes are paid only in certificates issued by themselves. The population could
anyhow hardly deliver sufficient of the official Rubel ( etc.) notes because their circulation is sharply regulated and
any surplus must be handed in. Based on this tax or contribution foundation, the resistance groups could then issue
their own paper money and with it pay for all their needs in cash - from their sympathisers, on the black market.
Naturally, these certificates cannot and must not be legal tender. Nobody is obliged to take them at face value but
the issuing groups must accept them at any time at face value. If, instead, the partizans continued to loot and
requisition, then they would unnecessarily victimise sections of the population and thereby gradually lose many
sympathisers.

If the issue of such contribution foundation money is not successful, as will certainly happen sometimes, under
these special circumstances, then these groups could attempt to issue loan certificates in small denominations and
on a gold basis. Their texts should contain the following details:

a) The revolutionary government will redeem this certificate from the x th. month after the beginning of the
revolution, by accepting it in all payments due to it, including instalment payments for national property.

b) A redemption in cash will take place only when and insofar as the government has cash available for this
purpose.

c) Repayment will take place within ten years after the victory of the revolution.

d) This loan certificate is reckoning in stable gold weight values and interest will be paid on redemption at the rate
of 6%, also reckoned in gold weight values.

e) Loan certificates handed in before they are due will be accepted only at their market rate.

Probably, most certificates would then circulate to some extent, at least on the black market and would, after the
revolution gradually be redeemed by acceptance in payments. If resistance fighters proceeded in this or a similar
way, then their resistance would be more likely to bring about the general revolution soon and thus the total debt
contracted in this way would not become very large.

In case of difficulties with issuing the above recommended loan certificates, still smaller warrants could be issued,
on a gold basis, which would allow the bearers to buy with them loan certificates as soon as they become available.
Russia's black market, operating well in spite of severe penalties, sometimes even death penalties, would make
such transactions possible.

Politically far-sighted Russians with cash on their hands, perhaps even many Soviet public servants, would
recognize a good business in these warrants and loan certificates and would, at the same time, consider their
purchase as a contribution to their life-insurance. Those certificates, presented on D-Day to revolutionaries, could
very well save them their lives. Many of these certificates would also get into foreign countries. Tourists might buy
them in Moscow and re-sell them at home. The many friends which a free Russia has in the West, would also buy
these certificates. Many of these investors, allies of the Russians. would buy them with no intention whatsoever of
presenting them for redemption. In these cases they should, at an opportune time, announce the numbers of these
loan certificates through broadcasts of free radio stations. Others would simply destroy these certificates as soon as
they had bought them. The above indicated purchasers of these loan certificates would assure that their exchange
rate would never sink excessively low. Under large discounts the monetary and speculative incentive to purchase
them would, naturally, become large. Public meetings in the West could call or subscriptions to such investments.
Western governments might be prevailed upon not to tax such investments.

The issuers should number the issued certificates and keep lists of the issues, naturally, without mentioning any
names, so that after D-Day forged certificates could be easily recognized.       JZ, 3/79

PP41 93-98

Peace Plans 41/93

                       A SUMMARY OF THE TEACHINGS OF THE

                                GERMAN SCHOOL ON MONEY:

      SOME PRINCIPLES OF MONETARY THEORY REPRESENTED BY

               RITTERSHAUSEN, MILHAUD, ZANDER, AND OTHERS
                                   by Ulrich von Beckerath, Berlin, 1952.
                             Translated by John Zube & published as a leaflet in 1977.


1. Inflation and dearness (dearth or high prices) are completely different concepts. Inflation is caused exclusively
from the monetary side, dearness exclusively from the goods side.

2. Deflation and cheapness are completely different concepts. Deflation is caused exclusively from the money side,
cheapness exclusively from the goods side.

3. Price increases must not be mixed up with dearness. Price increases may be due to inflation or they can be
caused by a reduction of supply in relation to demand. In the latter case it would be a dearness. Price increases may
also be due partly to inflation and partly to dearness.

4. Reduced prices should not be mixed up with cheapness. They might be due to deflation or due to an increase of
the goods offered in relation to the demand. In the latter case only would it represent a genuine cheapness. The
reduced prices can also be due partly to deflation and partly to a genuine cheapness.

5. Without legal tender one cannot inflate a currency.

6. Without the note issue monopoly one cannot cause a deflation.

7. When under a free market rate (i. e. in the absence of legal tender) an over-issue of a paper money should occur,
then it would suffer a discount in circulation so that e.g., a gold coin of 20 marks would come to cost 21 paper
marks. But the goods prices would remain unchanged, provided only they are expressed in gold units, e.g. gold
marks.

8. If typified and standardised exchange media are short in circulation (when e.g. during monetary crises factories
are short of means of payment for wages, then those concerned help themselves by issuing emergency money
without legal tender until nowhere in their payment circles does a shortage of the necessary exchange media remain
and the public thus begins to refuse to accept the emergency money at the same face value as gold or silver
coins. The goods prices would remain unchanged whenever they were determined in gold units (gold marks or
grams of fine gold etc.).
9. When paper money is not redeemable then it will suffice in order to preserve the parity of the paper money with
gold, to arrange for the acceptance of the paper money like gold money by institutions which sell goods in daily
and general demand.
(Such institutions are e.g. the taxation department - when it "sells" tax receipts, the railway, the P.O., and shops
which owe something to the bank issuing that paper money. Their indebtedness may arise out of the discounting of
sound commercial bills and the corresponding contractual obligation to accept the notes of the bank like gold
money. Naturally, in all such cases, the bank must concede its debtors the right to pay back all their bank debts
with that paper money as soon as they receive it, at par, regardless of the exchange rate of the paper money.

Peace Plans 41/94
2

10. When paper money is funded as under (9), then it can circulate more widely than merely among those who
directly claim the cover involved. When the paper money has tax foundation then it will circulate not only among
those who just then have to pay taxes. If it has shop foundation (a concept coined by Rittershausen) then it
circu-lates not only among those who have to buy something from the shops which are under acceptance
obligation. When the railway issues money (as in Germany in 1923/4 for several 100 million marks) then it
circulates not only among those who just then want to use the railway's services. The tax foundation imparts to
paper money (as apparently Lorenz von Stein found out first) a par value (to gold or silver coin) for an amount
equivalent at least to the tax revenue for 3 months, even without legal tender.

11. The unrestricted right of people to refuse to accept any paper money offered (Compare par. 2 of Bismarck's
Bank Act of 1875 and the numerous laws of the confederated German states during the 100 years before this law
was passed.) - makes every abuse of the right to issue, either by the bureaucracy or private persons, impossible.

12. Inflation, according to the above, is a condition in monetary transactions where paper money is accepted
without limits and at a prescribed value only because legal tender prevails: a coercion which makes it legally
impossible to account for depreciation by discount or refusal.

13. Deflation, according to the above, is a condition in monetary transactions in which there is a shortage in
typified and standardised exchange media (so that workers have to be dismissed because banks cannot or will not
advance the means of payment for their wages) and at the same time, nevertheless, typified and standardised
exchange media (e.g. typified clearing cheques and goods warrants etc.) cannot be issued because a certain
authority, e.g. a central bank, has the monopoly for note issues.

14. Legal tender is the legal prescription for every recipient of monetary payments to accept paper money or
inferior coins at a fixed value.

This forced exchange rate for general means of circulation, prescribed for every payee, practically for every citizen,
must not be mixed up, as happened in Berlin, in the discussion of West & East marks, with a fixed or controlled
exchange rate for foreign exchange. The word "Zwangskurs" (forced rate) is far older than 100 years and was
al-ways used in the way here described, in Royal Prussian Edicts, in Imperial Austrian Regulations and even by
Marx. Another use of it proves only ignorance of the terminology of economics.

                                         Ulrich von Beckerath, 25/1/1952.


                                         SOME NOTES BY JOHN ZUBE

                          ADDING OR COMMENTING TO THE ABOVE SUMMARY

15. FALLEN prices must not be mixed up with FALLING prices. The former tend to encourage buying and reduce
hoarding. They usually originate at the goods side and lead to corresponding additional turnover, to new orders and
employment. The latter tend to deter buying and lead to deflationary hoarding, sales difficulties, bankruptcies and
unemployment. Moreover, the former tend to fall step by step, according to developments on the goods side
(technological improvements). The latter tend to occur more generally and evenly because they are due to a
deflationary money shortage. This difference may be statistically indistinguishable but it is of great economic
importance. Because of this distinction, price levels cannot rapidly enough adapt to a deflationary reduction in the
money supply - contrary to the expectations and predictions of most Austrian economists.

16. A market subject to monetary despotism isn't free. To prevent and end both, inflation and deflation, capital
destruction and unemployment, monetary freedom has to be introduced.

Peace Plans 41/95
3

17. A gold standard as an exclusive currency is very different from a gold standard as a permitted and preferred but
competing currency. It is as different in its effects as a creditor's legal claim to payment in gold coins, even when a
debtor has none and cannot obtain any, is from the right of debtors to pay them in gold only whenever they possess
it (or obliged themselves contractually to supply it) and otherwise, and normally, to pay only in gold values, in any
acceptable currency, by gold accounting or gold clearing. For the latter there need not be a single gold coin in a
country, although some such circulation would be preferable. The former amounts often to torturing a deaf and
dumb person in order to extract a confession from him. The latter payment method is available to every productive
person under monetary freedom.

18. As money cover can serve anything that is found acceptable by well informed acceptors of a paper money in a
free market. As a rule it must be immediately available and correspond to a wide-spread demand. Shop foundation
fulfils this requirement excellently.

19. The issue principle can be applied not only in the monetary sphere but also in the capital market. There it can
finance e.g. a libertarian take-over of a bureaucratic democracy, with all its public property assets, a libertarian
revolution in a dictatorship, education, innovation and research, desert irrigation, even space exploration. Its
monetary application is essential for the conduct of a rightful defensive war.

20. Redemption in rare metals is not required to preserve the value of a paper money or to prevent over-issues. It
can be replaced by acceptability under the control of a free market rate. This would leave the discount possibility as
a necessary feature but would, generally, lead to a par rate of the paper money on a free gold market. It would not
be a gold convertibility but a gold clearing or gold accounting standard.

It would transfer any redemption desired from the issuer to the free gold market. This possibility was not
sufficiently, if at all, discussed by the advocates of a 100% gold dollar.

21. Inflationary government "spending" is not SPENDING, no more so than private forgery is. (See page 44 of
"Stop the Legal Tender Crime" in Peace Plans No. 19.)

22. Nobody can create money or credit out of nothing, no more so than creating energy out of nothing. What
appears or is considered as "creation" is either a forced value, a transfer system temporarily substituting suitable for
unsuitable notes, fraud or clearing.

23. Note to the above No. 7: This possibility of suffering a discount is a necessary feature of a free monetary
system. It would draw depreciated notes quickly out of circulation and would prevent their expansion. They would
be paid back to the issuer, who has still to accept them at par. This discount would thus be welcomed by his
debtors. The more the notes are discounted, the more rapidly they would return. With the returned notes the
circulation and the discount would be reduced. It is obvious that while the discount continues, new issues will be
hard to impossible. People will simply refuse to accept them - unless the owe the issuer something.

24. Without legal tender and under monetary competition, each exchange medium being subject to free market
rating and the right to refuse it altogether, the good types of exchange media and standards would soon drive out
the bad ones. These German economists recognised this truth - and some others - long before those of the Austrian
School and they don't share the rather limited monetary freedom views of most of the representatives of the
Austrian School.

This "German School of Monetary Theory" favours full monetary freedom and has worked out its details.
Libertarians have no valid excuse for ignoring it any longer.
             INFLATION-PROOF MONEY IS NOT IMPOSSIBLE - IT IS MERELY OUTLAWED!

                               LET GOOD MONEY DRIVE OUT THE BAD:
                       REPEAL LEGAL TENDER AND THE NOTE ISSUE MONOPOLY!

==================================================================================
Peace Plans 41/96
1

                                       SOME SAYINGS ON MONEY,
                                        MONETARY DESPOTISM
                                       AND MONETARY FREEDOM
James A. Garfield:
Whoever controls the volume of money in any country is absolute master of all industry and commerce.

Vincent C. Vickers:
The existing (world money) system ... creates poverty... and is the root cause of war.

Henry Hazlitt:
Sproul's currency theory may be summed up thus: Put your faith in the monetary managers, who have always
fooled you in the past.

Henry Hazlitt:
Just as "managed" paper money goes with a statist and collectivist philosophy, with government "planning", with a
coercive economy in which the citizen is always at the mercy of bureaucratic caprice, so the gold standard is an
integral part of a free-enterprise economy under which governments respect private property ...

Richard Condon:
No one - and I will repeat that - no one knows what money is or can cause, given its own will.

Rousas J. Rushdoony:
Money being the life-blood of the economic system, the control of money means that the economic life of the
people is controlled.
Total control of a people is possible through control of money...

Roger McBride:
... we must end the power of the government to create "dollars" at will; money must once again be a commodity
such as gold, produced solely on the free market.

Peter A. Wright :
Inflation is the product of centralised control of your money.

A. A. Walters:
Sound money will not solve all the problems of mankind. But it will provide some stability in our lives. In 1975
that seems a lot.

Woodrow Wilson:
The great monopoly in this country is the money monopoly. So long as it exists, our old variety of freedom and
individual energy of development are out of the question.

Samuel Brittan:
The circulation of more than one kind of money has been, historically, the rule rather than the exception ....

Benjamin R. Tucker:
The most fatal restriction upon trade now existing is the monopoly of the issue of money, the fountainhead of all
tyrannies in these plutocratic days, and that is where Liberty... must strike first to strike effectively.
Thomas Jefferson:
We are undone. my dear sir, if legislation is still permitted which makes our money, much or little, real or
imaginary, as the moneyed interests shall choose to make it.

Michael Pilch:
... honest money is the best policy.

Bornu proverb:
A man's goodness resides in his money, and he who has no money, deteriorates.

Percy L. Greaves:
A free market economy cannot permanently operate on a politically manipulated paper money standard. Free men
need a market-selected money. Under present conditions, this means a gold standard.

Macleod:
Money is everything that has power of purchase.

Frank Herbert:
Does a population have informed consent when that population is not taught the inner workings of its monetary
system and then is drawn, all unknowing, into economic adventures?


Peace Plans 41/97
2

Mildred J. Loomis:
... barter is clumsy and awkward - it's hard to exchange milk for coal and dress fabrics for butter. So we use
"money" to represent goods. This makes it convenient and everyone would be better off for it, IF the money we
used accurately represented the goods and labor we exchange with it.

Ulrich von Beckerath:
... the medium of exchange should be governed by possible turnover and not the turnover by the available means of
exchange.

Henry Meulen:
USA loudly protests that every man should be free to choose what goods he will make and at what price he will
offer them, what work he will do, when he will work, and for what wages. But what is the use of all this freedom if
the State tightly controls the means of exchanging the goods he makes - the money he shall use? Men work
generally only in order to exchange the results of their labour. Surety, freedom of choice in the means of
exchanging goods is just as important as freedom to offer goods or services. Yet the governments everywhere,
including the government of "The Land of the Free", not only monopolise the issue of permits to exchange goods
and services, but proceed to regulate the volume of such permits regardless of the whole principle of demand and
supply in an open market.

Finally, the people who think about such things, will recognize that freedom of note issue is essential to promote
competition in banking; and free competition in banking is essential to free production and exchange.

Exclude politics from the issue of money.

Freedom of note issue needs no help from the state. The notes from the new banks will make their own way into
circulation. People who get cheaper loans from new banks will try to get those notes into circulation. Wage earners
may be offered higher wages if they are willing to accept the new notes in payment of wages. They will shop in
those shops that are willing to accept the new notes.

H. G. Pearce:
The issue of money is not a state prerogative.
Money is a bearer of options, an instrument of freedom.

Paul Poirot:
Let us buy and sell on our own terms in the money of our choice.

The dreadful cost of letting the government prescribe and manage our money is now becoming clear.

H .F.Sennholz :
The best we can hope for is monetary freedom that embodies the freedom of contract and choice of money.

Free money is sound money.

Only monetary freedom can impart stability.

After half a century of monetary depreciation and economic instability, still to accept the dogma that it is the
proper function of government to issue money and regulate its value, reflects a high degree of insensibility to our
monetary plight.

To entrust our money to government is like leaving our canary in trust with a hungry cat.

... political money... is managed and manipulated for political ends - used and abused as an instrument of public
plunder.

Peace Plans 41/98
3

Lysander Spooner:
But it is to be kept constantly in mind, that there can be no such thing as free labor, unless there be freedom in
money; that is, unless everybody, who can furnish money, shall be at liberty to do so .

... so long as no force or fraud is practised by either party, the parties themselves, to each separate contract, have
the sole, absolute, and unqualified right to decide for themselves what money, and how much of it, shall be
considered a bona fide equivalent of the labor or property that is to be exchanged for it. All this is necessarily
implied in the natural right of men to make their own contracts, for buying and selling their respective
commodities.

... any one man, who has an honest dollar, of any kind whatsoever, has as perfect a right, as any other man can
have, to offer it in the market, in competition with any and all other dollars, in exchange for such labor or property
as may be in the market for sale.

… by the prohibition of all other money, the holders of a comparatively worthless amount of licensed money
would be enabled to buy, at their own prices, the labor and property of all other men.

Such a monopoly of food would have been no clearer violation of men's natural rights, than is the present
monopoly of money. And yet this colossal crime - like every other crime that congress chooses to commit - is
sanctioned by its servile, rotten, and stinking court.

In the most civilized nations - such as Western Europe and the United States - labor is utterly crippled, robbed, and
enslaved by the monopoly of money; ...

... the monopoly of money is the one great obstacle to the liberation of the laboring classes all over the world, and
to their indefinite progress in wealth.

This prohibition upon the issue of all notes, except those issued, or specially licensed, by the government, is a
prohibition upon all freedom of industry and traffic. It is a prohibition upon the exercise of men's natural right to
lend and hire such money capital as all men need to enable them to create and distribute wealth, and supply their
own wants, and provide for their own happiness.
Murray N.Rothbard:
If, therefore, the state is able to gain unquestioned control over the unit of all accounts, the state will then be in a
position to dominate the entire economic system, and the whole society.

Leonard E. Read:
I believe that if money is to be useful to traders as a medium of exchange, then the decision as to what shall serve
as money must be worked out by traders in the market, voluntarily, rather than by government edict.

But of course, there's no reason on earth why the issue of warehouse receipts should be a governmental function.

Leave the decisions about money to the market.

Let buyers and sellers choose what to use for money; ...

... leave all creative activities, including the medium of exchange
- money - to the wisdom of the market. Do this or our country will end up with a 5 cent thousand-dollar bill.


SEATONMP

John Zube, 35 Oxley St. or POB 52, Berrima, NSW 2577,
(048) 771 436, - SEATONMP.297
(Feb. 1997)
      AN OPEN LETTER to :

Peta Seaton, MP, POB 684, Bowral, NSW 2576

Dear Ms. Seaton,
                   I have never voted for or against you nor have I
voted other than informally for many years. For this and other
reasons I do not consider you as my representative. Nor am I ever
likely to vote for you or your opponents, unless the very
unlikely would occur : You or they would turn into genuine
freedom, peace and justice advocates, really knowing what they
would be talking about and doing, aware of the effects of their
laws, regulations, taxes and spending. Alas, the territorial
democratic representative system neither educates the voters nor
the representatives, administrators and judiciary well enough for
that to just happen naturally.

But I did like your approach to your potential voters, asking
them what they would like you to do. Better still, within the
present territorial parliamentary system, would be a firm
contract with the voters, with an agreed upon arbitration
channel, which upon breach of contract by the representative
would immediately lead to the loss of their position, with their
previously and simultaneously elected deputy automatically taking
their place. Within and beyond that system I also favour recalls
and referenda. Beyond these I favour voluntary communities under
personal laws, however mad or self-defeating their actions might
appear to be to outsiders. Experimental freedom or full minority
autonomy in this sphere, competing governments or freedom of
action, under the slogan : To each the government or free society
of his or her dreams. No more party struggles. Each party and its
followers to be exterritorially fully autonomous to do its own
things to itself and its believers. I am working on an
encyclopaedia on this political alternative. The first 17 volumes
are out, on 17 microfiche, under the title : "On Panarchy". It
would provide a peaceful framework for any ideal that its
believers do not want to force upon any outside dissenters. But
this much only by the way.

When I got your questionnaire first, I did make notes towards a
letter discussing the political philosophy and practice of
representation and non-representation but I did not take the time
to finish it. Other, to me more urgent tasks intervened. At
present I cannot even lay my hands on these notes.

Nor are the main problems that I do want to talk about, or write,
constitutionally and legally State matters, as far as their
underlying causes are concerned, namely : inflation and
unemployment, depression and stagflation. But they do affect the
States and Local Governments greatly and, most of all, the
citizens. Moreover, State MPs sometimes become Federal MPs and
then could do something directly, as law repealers, beyond
passing on information and ideas, towards abolishing the causes
of these evils.

With unemployment and underemployment in Australia still all too
close to 1 million, in the world ca. 1 billion and inflation
almost everywhere and most of the time above or even far above
zero, their abolition SHOULD interest the unemployed and the
inflation victims and their relatives and all their potential
trading partners greatly, i.e. almost everybody. Nevertheless,
almost no one seems interested nor do most politicians and most
economists have genuine answers to offer in these spheres.
This in spite of the fact that the answers are relatively easy if
only the right questions are put - and if they are followed up
sufficiently.

One should have imagined that the prominence to monetary
despotism given in the Communist Manifesto ( point 5 of its
programme ), with the clearly stated intention to destroy free
economies and to let communist dictatorships rise from the
resulting chaos, would have induced enough people to question
monetary despotism, particularly after the downfall of most the
these regimes. Instead, monetary despotism is continued behind
the former Iron Curtain, in the supposedly liberated countries
and also in the supposedly free and democratic countries. The
instability and consequences of monetary despotism continue to
threaten us with other kinds of despotism, with revolutions,
wars and terrorism, even ABC war holocaust.

I was lucky to meet someone, back in 1952, who had been studying
these problems and their solutions since before WW I :
Ulrich von Beckerath, 1982 - 1969. However, it took me quite a
while before I sufficiently grasped the solutions he offered. To
transmit that all too slowly acquired knowledge ( and
appreciation of monetary and financial freedom ) in a short
interview or letter, is close to impossible. He used to say that
the greatest revolution ever would occur if someone were to
succeed to state cause and cure for unemployment quite
convincingly in a single page. He was a much better writer and
thinker than I am and he never did produce that single page,
although he wrote ten-thousands of pages, mostly unpublished. I
made many attempts to produce such a page but so far quite in
vain. It would be nice if, instead, one could persuade others to
persuade themselves. People persuaded against their will and
against strongly held beliefs, will often revert back to their
former beliefs, sometimes facts notwithstanding.

Nor have I been successful, so far, to convey this knowledge
sufficiently and to enough people, by publishing, more than
anyone else has ever done before, on this subject, all only on
microfiche, the only publishing medium that I can afford. Few
take the time to read many or any books on such subjects and in
this format.

To convey such knowledge orally is even harder because there are
never sufficient listeners who are mentally sufficiently prepared
for the correct answers.

So, why do I bother to write to you? I like to get certain ideas
down on paper and onto the microfiche of my own PEACE PLANS
series. Generally, I happen to live and work largely for certain
ideas and their realisation and see 2 major obstacles for them :
a) the absence of a satisfactory archive for ideas and talents
and
b) the absence of freedom to experiment among volunteers, quite
autonomously, in the economic, social and political sphere.

Thus only individual and group persuasion remains. And here the
usual difficulties arise for the spread of ideas that are new to
most people and contrary to many of their firmly held beliefs.

Thus preaching them and trying to persuade others is not very
likely to be effective. At least not in the absence of an
encyclopaedia of the best refutations, so far found, of popular
errors, myths and prejudices. Consequently, the best way seems to
be to induce other to persuade themselves of certain facts,
problems and solutions. Especially when they have declared their
readiness to listen or read submissions from their potential
voters.
With regard to ideas and facts new to them MPs and top
administrators are in a privileged position. They do not have to
check out facts, problems and solutions themselves, with their
own original research and thinking. They can delegate the job to
their research assistants, at no extra cost, labour or study
efforts to themselves. Thus, one has only to get them
sufficiently interested to initiate such research through their
assistants.

Probably State MPs have less research assistants than Federal
ones but these may be enough.

One difficulty in this respect is that the Parliamentary Library
of NSW will have little literature on this subject. But it can
acquire it from other libraries. When 19 years ago I was under
the illusion, supported by some librarians for years, that I
would be legally obliged to offer Copy Rights Act copies of my
PEACE PLANS series, containing numerous monetary and financial
freedom writings, free of charge, to the State, the State
Parliamentary Library, the Fisher Library and the ANL, I was
told, by the man then in charge of the Parliamentary Library,
that they are not interested in microforms. So they do not have
any of my collection. You can lead the horse to the water but you
cannot make it drink.

Could I make YOU drink from this fount, this medium? I do not
think so. But could I induce you to get your staff to look up
certain facts and ideas? THAT seems possible because it would not
cause you extra time, effort and money and the potential rewards
for your career and the country could be large, if the research
would confirm what I believe to be the case and what could be
confirmed by the study of a number of more or less well known
economists, reformers and writers. And you would be much easier
convinced by research initiated by yourself than by my own, and
that of other people, over many decades.

Now, WHAT do I want you to check out, through your staff and
their research facilities? (Unfortunately, even the INTERNET has
so far little to offer in this sphere. But the odd library has
the odd titles on this subject and I do happen to offer many of
them, all very cheaply. )

Ideally, the following 3 points, to be checked out, should not
require more than 3 - 5 minutes of your attention, no more so
than 3 good racing tips - that you could get e.g. computer tested
by your staff.

1.) INFLATION, i.e. the lasting blowing-up of all prices and
wages etc., reckoned in a paper standard, or exclusive metal
standard ( e.g. silver, while it became cheaper and cheaper to
produce, largely as a by-product ), as opposed to any temporary
dearness ( due to catastrophes, revolutions, diseases ),
requires as necessary preconditions :
   a) legal tender for the inflated currency and
   b) an issue monopoly or exclusive currency status for it.

In other words, choice in value standards and freedom of issue
must be suppressed in order for it to become possible.

From honest and complete enough records, to the extent that they
can be accessed, it is relatively easy to find out whether these
two preconditions did exist in every case. True of false? Please,
do check it out in your, mine and everybody's interest.

There is another obvious precondition :

c) People must not habitually assume that legal tender and an
issue monopoly for the inflated currency do exist ( although
legally they may not ). In that case they might go on reckoning
in a depreciating paper standard, although not legally obliged to
do so and might not resort to their own sound issue options, to
assure that good money would drive out the bad. They must know of
the principles, rightfulness and proper technique for breaking
these two monopolies. People quite ignorant in these sphere will
never undertake or support the required monetary reforms or
revolutions or make too many mistakes in their reform attempts.
Delusions determine behaviour just as much as facts do, and often
much more so. When they imagine that legal tender and the issue
monopoly exist or would be rightful and necessary then they will
tend to act as if they were. Even our times are far from
enlightened in this respect. Thus we should not expect the
results of full monetary enlightenment in any period of our past.

2.) UNEMPLOYMENT, DEPRESSIONS, CURRENCY FAMINES, STAGFLATIONS:

a) A primary necessary precondition for all of these is either
the legal or habitual preservation of an issue monopoly for means
of exchange.
b) Furthermore, in order to prevent the maximum and free
extension of clearing, as a substitute for missing or
insufficiently supplied physical exchange media (coins, notes),
the clearing process must be limited and obstructed by the
general rule or practice that all non-cash transactions must be
"covered" or, upon demand of a creditor, be immediately payable
(when due), not through clearing but through cash ( exclusive
legal tender currency ), no matter how badly the monopoly
supplier has supplied the general circulation, or a particular
branch of it, with its monopoly media of exchange. This would
prevent the extension of clearing practices as far as they could
and should be extended. (In essence even the soundest exchange
media are only clearing certificates in another form and medium.
In principle all payments could be cleared by clearing or
settlement only, without any "cash". But cash facilitates many
transactions which are, in essence, clearing transactions, too.)
If each were quite free to clear his productive output (goods,
produce, labour and services), to the extent that they are
wanted by others, for the goods, produce, labour and services
that he wants, then neither sales difficulties nor unemployment
would exist and each would be able to pay or clear his or her
way. All those ready to exchange would only have to agree upon a
value standard to clear all their exchanges, via book accounts or
electronic accounts, via one or several clearing centres.

3. GRESHAM'S LAW :
There is another "law" that deserves checking out in this
respect, namely "Gresham's Law". In the popular version it states
that "Bad money drives out good money." In the correct version,
discovered and clearly stated only by some economists, it states
that when both, bad and good money, are given equal legal status
via legal tender legislation, then the worse money will drive out
the better one. (From the point of view of the dishonest debtor
it is the better one for him. Only for the creditor it is worse.)
In the absence of legal tender, the opposite will occur : Good
money will drive out the bad one.

There are numerous inflations and depressions ( with periods of
mass unemployment) on record. And the facts of legal or juridical
rules on legal tender and money issue monopolies are on record,
too. A systematic survey would, inevitably, I believe, find the
correlation between the two. Neither Ulrich von Beckerath or
myself have ever come across an exception. But then neither of us
has ever made a systematic historical - economic survey or
tabulation of this kind. To our knowledge no one else has, so
far.

What one can find on these subjects are numerous false
correlation assertions, numerous false assumed causes and cures,
all ignoring the above underlying and major effective causes and
implied cures.

I do not assert that all degrees of unemployment and depressions
are exclusively caused by the issue monopoly and its exclusive or
legal tender currency. Minimum wage laws, compulsory licensing,
protectionism, wars, revolutions, wide-spread robbery, taxation,
government spending, confiscation, housing policies, migration
restrictions, natural catastrophes and other factors can also
contribute to unemployment and depressions - and to temporary
price rises. I only assert that the most common and major factor
is "monetary despotism".

It should be but isn't obvious that when the "exchange medium" is
monopolised then it will not lead to the optimal, because
competitive, supply of exchange media and that, as a consequence,
many rightful, possible and desired exchanges will not take
place. When the supply of radios, TVs, bicycles, cars and CDs is
free then there is no shortage of them. The money issue monopoly,
confirmed by legal tender laws, leads then to a negative feedback
loop, when the requirement for cash ( always somewhat fluctuating
) is suddenly increased, for one reason or motive or the other,
and the monopoly supplier does not quickly and sufficiently
respond to that increased cash requirement. More and more cash is
then wanted, precisely when cash is already short, and the
resulting FALLING prices, as opposed to FALLEN prices, do not
encourage but discourage buyers.
Nor does an inflation provide really an abundance of good enough
exchange media in every sphere. It, too has its under-supplied
segments in the economy, in which deflationary conditions persist
and in the galloping inflation prices race ahead of the note
printing presses, thus creating a relative deflation in the
middle of a galloping inflation. But, I will not try to convince
you myself of the truthfulness of such statements. I rather would
like you to confine your examinations to the above 3 points :
Inflation, Unemployment, Gresham's Law. Others are mere
consequences or secondary conclusions and observations.

Initially, one might want to check out only 3 instances of
inflations and 3 of depressions, in this particular way, as to
their basic causes and thus potential cures. After finding my
above statements confirmed in this total of 6 events, then one
might decide to test e.g. 20 - 60 such cases. Once all of these
confirm the first findings of one's research, then one might come
to think that one is on a really hot trail and thus might come to
arrange for the checking out of a statistically significant
number, let's say 600 or even 6,000 such cases, to become fully
convinced and to help oneself in convincing others of these
facts, in the future. In the traditional jury system the
unanimity of 12 jurors is already assumed to prove guilt or
innocents sufficiently.

Some writers spoke of a "gold inflation" during the great gold
rushes. They ignored the subsequent considerable price falls of
goods reckoned in gold weight units, and other factors that had
caused considerable temporary dearness, also the fact that gold
or silver, or both in combination, were, indeed, exclusive
standards under legal tender legislation and ultimately exclusive
exchange media, too, while clearing was barely understood and
insufficiently practised and comparative index standards were
barely known and practised. They even ignored the fact that with
regard to the accumulated gold stocks, from the production of
many centuries, the annual gold production is relatively small
and that the accumulated gold stock per head of the increasing
population did not increase very much or may even have declined.
Moreover, compared with the increased productivity in goods and
services, the added annual gold production did not matter very
much, either. More and more of our total turnover had to be
achieved by non-cash payment or clearing transactions, not only
for the sake of payment convenience. There is no country in which
all clearing transactions could suddenly be replaced by cash
ones, at least not under conditions of monetary despotism. ( Even
under monetary freedom that would not desirable or practicable.
But under it one would more than now realize that even cash is
ultimately just a meaning for clearing some transactions against
others. )

Mind you, I am not a gold bug, proposing a return to an exclusive
and traditional gold redemption or gold reserve or cover
standard, fractional or 100%, like many libertarians do. Instead,
and for reasons probably best stated by Ulrich von Beckerath, in
his writings, I propose, following his teachings, tolerance in
this sphere, too, meaning, for me, regardless of whatever
standard other people might choose for themselves and their
transactions, in their payment communities, a gold for account
or gold clearing standard for myself and my contracting partners,
within the general framework of freedom of choice for value
standards and exchange media and clearing methods. Should a more
accurate value standard be found or developed, I would be
prepared to adopt it.

Please note that I will not attempt to persuade you myself in
this direction. All I do is state some unusual opinions. And all
I would like you to do is to check out the above 3 statements on
the preconditions for inflations, deflations and stagflations.
If such research, initiated by you, should prove me wrong, then
you have lost nothing. If I am right, you and the country could,
sooner or later, gain much form this confirmation.

4. TAX FOUNDATION MONEY : Secondarily, after your "appetite" is
wetted by research, initiated by you, on points 1-3, you might
also want to check out the history, successes and failures of
"tax foundation" money, i.e. issues that had no other foundation
for their acceptability to creditors and debtors of the State
than their acceptance, at par with their nominal value, in all
taxes and dues to the government authorities. Whenever there was
no monetary despotism involved, i.e., no legal tender or
exclusive currency status and no issue monopoly, so that the tax
foundation money could be freely valued and refused on a free
market, no one but the government authorities was obliged to
accept it at par and all remained free to reckon and price and
contract in alternative standards, then no inflation occurred and
tax payments were greatly facilitated and bankruptcies, due to
tax debts, were greatly diminished and the general circulation of
exchange media and thus the degree of production, business and
employment was improved. But, here, too, wrongs and mistakes in
the issue and in the standard regulation were more common than
rightful practices. When properly organized, a government can,
via tax foundation money "anticipate" its tax-payments for the
next 1-3 months, through an independent issue department. It
does not have to borrow these amounts from others, at high
interest, and does not have to infringe their circulation
spheres, thus creating difficulties for them. The tradition and
legislation of tax foundation money go back hundreds of years.
Adam Smith was partly aware of it - in one of the less famous
passages of his Wealth of Nations.

5.) PUBLIC SERVICES AS ISSUERS : There are other particular
government departments or authorities which are potential issuers
under full monetary freedom : Railways, health and education
services, bus companies, electricity and gas works.
They, too, could issue their kinds of insurance, contribution or
service vouchers, in money denominations, as competing exchange
media, using any standard of value which voluntary acceptors
would find acceptable and which people would be willing to use to
price their goods, services, debts and credits in.

6.) GENERAL LOCAL ALTERNATIVE CURRENCIES : For the general
community the most important alternative exchange media would be
those issued privately or cooperatively by shopping centres, and
redeemable in their ready-for-sale goods and services, paying
their own employers, suppliers, contractors and tax authorities
with them and also granting SHORT term loans in them, mainly for
wage and salary payments. (Medium and long-term loans with them
would be possible but would required special precautions, in
which subscribers to these loans would have to be found, pay them
in these "goods warrants" and be ultimately be repaid in their
later issued equivalents, issued shortly before the loan is due.)
To the extent that they could thus readily issue them, they would
assure the sale of their goods and services. Store currencies,
issued by some large department stores, in consumer credits, are
the closest approximation to what could be done in this sphere,
once their confinement to consumer credits would be removed.

7.) CLEARING CERTIFICATES, REDEEMABLE IN EXPORT GOODS, FOR THE
PAYMENT OF IMPORTS.
Such issues, extensively discussed by Prof. Edgard Milhaud and
Ulrich von Beckerath, in several books, could automatically and
obviously keep exports and imports in balance and assure the long
term payment balance. Like the goods warrants of shop currencies
they should not circulate indefinitely but rather oscillate, with
each issue having only a short circulation period and being
destroyed after return to the issuer, replaced by new "clearing -
IOUs", as required.

What your research assistants might be able to find out, if they
get to that stage, is the total turnover, which even under the
present depression ( recession, if you like ) conditions, is
achieved every quarter by all retailers and service suppliers,
not only in NSW but in Australia. That would be the likely
maximum level for the issue of such private or cooperative
alternative exchange media, which might be issued without
depreciating them, in general circulation ( against a trusted
value standard or several of them). The exact limit would be
determined by free market rating and voluntary acceptance or
refusal or discounting for such exchange media. Since these IOUs
would have to be accepted immediately and at par by the issuers,
from anyone offering them to him in payment, the issuers would
have no incentive to issue them at e.g. 95% For immediately
afterwards and from anyone, they would have to accept them at
100%. ( An obvious condition for one's own IOUs. Only that 100%
acceptance would make them acceptable to most potential acceptors
and could keep them at par with their nominal value. ) Few people
could be persuaded to accept any private or cooperative exchange
medium that is market rated at only 95% of its nominal value, or
which the issuer would accept only at 95%, especially while there
are other exchange media available that are rated at 100% and
accepted at 100%. With any over-issue, temporarily, but
considerable, an issuer would tend to loose many repeat customers
and might even go bankrupt in consequence. It would also very
likely be well published by his competitors. Thus such issues
would become self-limiting, much more so than are e.g. the issues
of shares and bonds. And everyone could easily check the
"goodness" of such exchange media by offering them at the nearest
store.

Obviously, and against my original intention, I went already too
much into the details of my "hobby horse". But the extra
paragraphs might help to show my proposed 3 research tasks in
context. I would be glad and grateful if you were to check out,
through your assistants, or perhaps through the research service
of the LP, the above 3 assertions of historical and economic
correlations and "laws". If their and thus your findings are as I
predict, then you could take it from there.

I am be willing to offer you a one-sided bet, from my low
superannuation income, namely, $ 1000, towards your next
campaign, in case your research should prove me wrong. I very
much doubt that I would lose, i.e. that I would have to pay up
that bet or promise.

1278, 1022, Mini-LMP, 1980 RCFMAFF leaflet, Discussion Paper 7.

                       PIOT, John Zube.

P.S.: I will certainly microfiche this letter in my series and
might also send it to 2 local papers. More paper and postage I do
not want to spend on this.
But I would be prepared for a further discussion of any of these
points by phone or letter. But, frankly, I do not expect you to
be interested enough yourself. Perhaps one of your research
assistants may be.
If you are not interested at all in taking up my assertions and
appeal for research on them and my associated bet, please use the
enclosed stamped return envelope.
  - J.Z.
===================================================
No reply was ever received from her or the Liberal Party of Australia.
I should have known to expect nothing rational or moral from most
politicians and parties.
I had thought that it might be worth trying to induce them to convince
themselves, if they feel sufficiently challenged to try to refute me.
But they are habituated to ignore many facts, ideas and opinions.
J.Z., 28.12.02.




SLOGANS FOR LIBERTY                                                  MONEY

1.) Money was free (unrestricted) when first issued by private individuals. Today it is everywhere in chains ( and
turned into a forced and exclusive currency that holds us in its chains ). How did this transformation occur? I do
not know this in all details. But how could it rightly become free again? This question I believe to be able to solve.
- Free after Rousseau in The Social Contract,on man, J.Z. 5.4.85.

2.) Money : A tool to escape the inconvenience of barter and to approach ideal clearing of all debts. J.Z. 5.4.85.

3.) Money is different things to different people! Let them have their way! J.Z. 5.4.85.

4.) Money is a bearer of options, an instrument of freedom. Dr. H.G. Pearce.

5.) Money is everything that has power of purchase. MacLeod, as quoted by Meulen in The Individualist, 8/77.

6.) Does a population have informed consent when that population is not taught the inner workings of its monetary
system and then is drawn, al unknowing, into economic adventures? - Frank Herbert : The Dosadi Experiment,
Galaxy, 7/77, p. 68 (From : The Trial of Trials)

7.) So long as people exchange goods for goods and labor for labor - or barter it - the two people making the
exchange can mutually decide what is a fair deal for them. But barter is clumsy and awkward - it's hard to
exchange milk for coal and dress fabric for butter. So we use 'money' to represent goods. This makes it convenient
and everyone would be better off for it, IF the money we used accurately represented the goods and labor we
exchange with it. - M. Loomis in "Moving into the Front Ranks of Social Change, pp. 63.

8.) A man's goodness resides in his money, and he who has no money deteriorates. - Bornu proverb, quoted by
U.v.Beckerath, PP 9-11, p. 257.

9.) ...honest money is the best policy. - Michael Pilch in "Down with the Poor, p. 79.

10.) If the economists could satisfactorily solve the problem of the regulation of paper currency, they would do
more for the wages class than could be accomplished by all the artificial doctrines about wages which they seem to
feel bound to encourage. - W.G. Sumner, What Social Classes Owe To Each Other, 1139.

11.) Stop money pollution by the government! Repeal Legal Tender! J.Z.,27.10.78, after reading L.E. Read, in Let
Freedom Reign, page 7, on the government as "the polluter of money".

12.) If e.g. the football, golf- and tennis crowds familiarized themselves to a minimum degre with the nature of
money, we would neither have unemployment nor inflation. J.Z. 2.3.79.

13.) There are few ways in which a man can be more innocently employed than in getting money. - S. Johnson,
Boswell's Life of Johnson, 1775. Remark to Dr. Strahan.
"Making" money is a better expression than "getting" money, as many have noticed already, since "getting" could
today also mean "stealing" it. J.Z.

14.) The different kinds of money and currency existing now are more lived with or rather suffered under than
known and understood. Due to this adaption tendency only few do ever imagine the sound alternatives which
would be possible. J.Z. 2.3.79.

15.) Money is a good servant, but a bad master. - 17th. century proverb. (L'argent est un bon serviteur, mais un
mechant maitre.) - Bacon, Menigiana, ii, 296. Quoting a French proverb.
16.) Money makes the man.- Greek proverb. Aristodemus (Alcaeus, Fragments, No. 49, Diogenes Laertius, Thales,
Bk. i, sec. 31.)

17.) To pay a person in his own coin. - 16th. century proverb.

18.) All the perplexities, confusions and distresses in America arise not from the 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 - quoted by Mrs. Young, on Ayn Rand, p. 57, - in a letter to Thomas Jefferson,
1787 ( according to Irvin A. Schiff : The Biggest Con, p. 13.)

19.) Money is neither good nor bad in itself: it depends on what is done with it. - St. Thomas Aquinas.

20.) A lack of money is the root of many ills. - Whittaker Chambers, quoting perhaps a Greek proverb, mentioned
in Buckley: Rumbles...,209.

21.) Money distributes itself among the nations, relatively to the needs of each ... being attracted by the products. -
Le Trosne, quoted by Marx, Great Books of the Western World, S. 68.

22.) So far from being the root of all evil, money is the acid test of sincerity. - The Individual, Oct. 80.

23.) Money evolved on the market place... - Bob Howard and John Singleton in Rip Van Australlia, p. 164. I would
add: And that is where it should be returned to, to make it work for us instead of against us. J.Z.

24.) No Money, No Power. Frank Chodorov, Fugitive Essays, 258.

25.) By money inflation, by import quotas, by "ceilings", we have made it most difficult for the foreigner to buy
our products because all these devices simply reduce his capacity to pay. Need it be pointed out that the only way
to pay for goods and serices is with goods and services? That money pays no part to trade except as a
measurement of value? Even as in transactions between nationals every purchase is ultimately liquidated with
another purchase, every sale calls for another sale, so must international transactions be likewise balanced.
Minnesota cannot sell flour to New York unless it buys New Yoork clothing in return, and Detroit cannot sell
automobiles to Argentina unless it is willing to accept payment in either Argentine beef or in some commodity
from a third country which has acquired our claim on Argentine beef. That is primary. And yet, our mad primitive
isolationism has blinded us to this basic fact of all business. - Frank Chodorov, Fugitive Essays, 352.

26.) Increased velocity of circulation of money may mean only that the country is producing and consuming more:
it has no automatic effect on prices. - Henry Meulen, The Individualist, 5/78.

27.) The INDIVIDUALIST has constantly pointed out that a fundamental defect of our system is that fresh money
is not lent to industry, but is spent into circulation. When money is issued only as a loan, the borrower is obliged to
produce and sell goods in order to repay his lloan; and the production of goods therefore keeps pace with the
money issued. When money is spent into circulation, it remains there, subject only to the clawing back in taxes and
the sale of government securities. Neither the government spending of money, nor the clawing back of taxes is a
trustworthy guide to the need of commerce for money. Hence al our woes....Henry Meulen, The Individualist, 8/78,
p. 48. (Alas, Meulen was not aware that only short term loans could be a sound basis for money issues and these
only when they are undertaken on the basis of securities that represent goods that are already produced and sold
and ready for sale - waiting for the consumers in the retail stores. J.Z. 7.4.85.)

28.) Das Geld! Das Geld! Es ist der Teufel,
Ein Kind der Hoelle sicherlich,
Ein Fluch der Menschheit, ohne Zweifel,
Denn jeder will es nur fuer sich.
Das Geld ist Gift, gefaehrlich immer,
Ein grosses Uebel frueh und spaet,
Und eins nur weiss ich, das noch schlimmer,
Und das ist: wenn man KEINES hat!
( Money! Money! It is the devil. A child of hell, quite certainly. A curse, without a doubt, for mankind, for
everyone wants it only for himself. Money is poison, always dangerous, a great evil in the morning and at night.
There is only one thing I know of which is worse, namely, when one hasn't any of it.)

29.) Money does not pay for anything, never has, never will. It is an economic axiom as old as the hills that goods
and services can be paid for only with goods and services; but twenty years ago this axiom vanished from
everybody's reckoning, and has never reappeared. No one has seemed in the least aware that everything which is
paid for must be paid for our of production, for there is no other source of payment. - Albert J. Nock. -
Consequently, sound money should be based on production and, preferably, issued by the producer himself or an
agent of producers, close to them, in return for claims against them. J.Z.

30.) Money enables us to get what WE want - instead of what other people THING we want. - Bernard Shaw.

31.) Ein mit Gold beladener Esel uebersteigt jede Mauer. ( A jackass loaded with gold can climb over every wall. -
King Philipp of Macedonia.

32.) Money provides a convenient means of comparing the prices of many different, apparently unrelated, things.
You can translate your resources into money and then compare the many alternative ways of using those limited
resources. - Harry Brown, You can profit from a monetary crisis, p. 18.

33.) Purchasing media : Forms of money or money substitutes. - Harry Brown, ibid, 394.

34.) The CHIEF VALUE of money lies in the fact that one lives in a world in which it is overestimated. - H.L.
Mencken, quoted in The Reader's Digest, 12/65,p.156.

35.) ...what money has always meant. A measure of performance.- Sam Nicholson : Scrooge in Space, Analog,
8/80, p. 68.

36.) Pride and dignity come from money in the pocket, and not just a hole. - Time.

37.) Money is a system of counters by which human beings keep track of what they have done for each other. -
Thomas W. Phelps, in The Freeman, Sept. 60, p. 4.

38.) Fight thou with shafts of silver and thou shalt conquer all things. - Response of the Delphian Oracle to Philip
of Macedon, when he asked how he might be victorious in war. ( Plutarch, Apothegms.)

39.) I cannot afford to waste my time making money. - Agassiz, when offered a large sum for a course of lectures
at a western college. (Whipple, Recollections of Eminent Men.) ( I find myself in the same position when I try to
promote monetary freedom, as long as there is no freedom for monetary experiments. J.Z. 7.4.85.)

40.) The seven deadly sins ....Food, clothing, firing, rent, taxes, respectability and children. Nothing can lift those
seven millstones from man's neck but money; and the spirit cannot soar until the millstones are lifted. - Bernard
Shaw, Major Barbara, Act iii, 1907.

41.) The universal regard for money is the one hopeful fact in our civilization. Money is the most important thing
in the world. It represents health, strength, honour, generosity and beauty as conspicuously as the want of it
represents illness, weakness, disgrace, meanness and ugliness. ...Not the least of its virtues is that it destroys base
people as certainly as it fortifies and dignifies noble people.- Shaw, ibid, preface.

42.) Can anybody remember when the times were not hard, and money not scarce? - Emerson, Society and
Solitude: Works and Days.

43.) No money, no Swiss. (Point d'argent, point de Suisse.) - Racine, Les Plaideurs, Act i, sc.1. Originally intended
as a gibe at the venality of Swiss mercenaries, the phrase is now used to indicate that what one wants must be paid
for.

44.) Money is an essential ingredient to happiness in this world. - Alexander Hamilton, Letter to John Laurens,
Dec. 1779.
45.) Money is the symbol of nearly everyting that is necessary for man's well-being and happiness....Money means
freedom, independence, liberty. - Edward E. Beals, The Law of Financial Success.

46.) The love of money and the love of learning seldom meet. - George Herbert, Jacula Prudentum. - Luckily, there
are some exceptions. J.Z.

47.) The price we pay for money is paid in liberty. - R.L. Stevenson, Familiar Studies, p. 138. - But money can also
buy liberty. Not only in Shaw's meaning of "liberty is leisure!". J.Z. 7.4.85.

48.) Yes! ready money is Aladdin's lamp. - Lord Byron (1788-1824), Don Juan, Canto xii, st. 12.
- compare Adam Smith's concept of money as a "waggon way through the air".J.Z.

49.) A man without money is a bow without an arrow. - Thomas Fuller, Gnomologia, No. 317.
One could also say : A man without money has to bow - because he has not arrow! J.Z. 5.7.82.

50.) Money answers all things. - Old Testament: Ecclesiastes, x, 19. (Pecuniae obediunt omnia. - Vulgate.)
Yes, provided one asks all the right questions about it. Then one can come to understand it and use it as an
all-purpose tool. J.Z. 7.4.85.

51.) We are mastered by money instead of mastering it. J.Z. 6.7.82.
We are mastered by money (forced currency) instead of mastering money (free enterprise money). J.Z. 6.7.82.

52.) Lack of money is trouble without equal. (Faute d'argent, c'est douleur sans pareille. - Rabelais, Works, Bk.ii,
ch.16.)

53.) Whoever imagines that money distributes itself readily and evenly to all who have something worthwhile to
offer has not studied e.g. the fate of inventors nor observed deflations, where foodstuffs are burned while people
are starving. J.Z. 7/4/85.

54.) There is no fortress so strong that money cannot take it. ( Nihil tam minitum, quod non expugnari pecunia
possit.) - Cicero, In Verrem, No. 1, sec. 2.

55.) Money, the textbooks say, is the fuel that makes business go.- Richard Cornuelle: Demanaging America, 69.
But not any kind of money, under any kind of condition! J.Z.

56.) Money hs its own rewards. - J.Z. 11.8.78.

57.) Deficiente pecu, deficit omne, nia.
     Mangelt im Beutel die Baarschaft - mangelt's an jeglichem.
     If you are short of money you are short of everything.
     - Rabelais, Gargantua und Pantagruel, III. 41.

58.) Money today is the product of a legally created disorder, abuse, exploitation, deception, fraud and repression.
J.Z. 10.7.77.

59.) Nervus rerum. Geld! - Demosthenes. ( The nerve of all things.)

60.) Man makes money and the money makes the man. D.Z., 16.4.77. (at 13!)

61.) Ever notice that when someone says: "It's only money!", it's usually your money he's talking about. - Al
Bernstein, Reader's Digest, 6/77.

62.) It is not money, as is sometimes said, but the depreciation ( or the scarcity! J.Z.) of money - the cruel and
crafty destruction of money - that is the root of many evils. It destroys individual thrift and self-reliance as it
gradually erodes personal savings. It benefits debtors at the expense of creditors as it silently transfers wealth and
income from the latter to the former. It generates the business cycles, the stop-and-go, boom-and-bust movements
of business that inflict incalculable harm on millions of people. For money is not only the medium for all economic
exchanges, but as such also the liveblood of the economy. When money suffers depreciations and devaluations, it
invites government price and wage controls, compulsory distribution through official allocation and rationing,
restrictive quotas on imports, rising tariffs and surcharges, prohibition of foreign travel and investment, and many
other government restrictions on individual activities. - Sennholz: Inflation or Goldstandard?

63.) Without a trustworthy medium of exchange, the whole economy falls into shambles. - L.E. Read: Who's
Listening?

64.) There are three faithful friends - an old wife, an old dog, and ready money. - Benjamin Franklin, 1706-1790,
Poor Richard, 1738.

65.) When you print unbacked money you print trouble. - D.Z., 3/82.
If it has legal tender "quality". If it is subject to a free market rate then its acceptance will soon be refused and it
will be replaced either by legal tender currency or, in the absence of legal tender, by one or the other sound
currrency. J.Z. 2.4.82.

66.) Government prints money and trouble. D.Z., 2.4.82.

67.) It is the love of money - not money itself - which is "the root of evil",... - S. Smiles, Self-help, 364.

68.) Land is...an unfit fund for a bank circulation. - Alexander Hamilton, 1790.
69.) ...It don't buy no happiness...but it makes misery a little more comfortable. - G.G. Gilman: Edge: Vengeance
Valley, p. 95.

70.) The value of paper money obviously can be regulated according to a variety of principles - even if it is more
than doubtful that any democratic government with unlimited powers can ever manage it satisfactorily. - F. Hayek,
Denationalization of Money, 25.

71.) Machlup...speaks occasionally .....of "moneyness" and "near-moneyness".- F. Hayek, ibid, 47.

72.) Vissering ... reports that in early times the Chinese expressed their notions of money by a term meaning
literally "current merchandise". - Hayek, ibid,46.
73.) The now more widely used expression that money is the most liquid asset comes, of course ( as Carlile
...pointed out as early as 1901), to the same thing. - Hayek, ibid, 46.

74.) To serve as a widely accepted medium of exchange is the only function which an object must perform to
qualify as money, though a generally accepted medium of exchange will generally acquire als the further functions
of unit of account, store of value, standard of deferred payment, etc. - Hayek, ibid, 46.

75.) I have always found it useful to explain to students that it has been rather a misfortune that we describe
money by a noun, and that it would be more helpful for the explanation of monetary phenomena if "money" were
an adjective describing a property which different things could possess to varying DEGREES. ..."Currency" is, for
this reason, more appropriate, since objects can "hve currency" to varying degrees and through different regions or
sectors of the population. - Hayek, ibid, 47..
(If one considers as money only a legal tender currency then one can also describe the various degrees to which it
can have legal tender, as has, to some extent been attempted in Peace Plans No. 19. J.Z.)

76.) Blessed indeed will be the day when it will no longer be from the benevolence of the government that we
expect good money but from the regard of the banks for their own interest. _ Hayek, ibid.

77.) Good money can come only from self-interest, not from benevolence. - Hayek, ibid, 100.

78.) It is probably impossible for pieces of paper or other tokens of a material itself of no significant market value
to come to be gradually accepted and held as money unless they represent a claim on some valuable object. (The
object might be merely the extinction of a debt, like a tax debt or insurance premium debt. J.Z.) To be accepted as
money, they must at first derive their value from another source, such as their convertibility into another kind of
money. ( Wrong, although they should be convertible in the market, should this really be desired. Australian store
currencies, for instance, provide no such claim. J.Z.) In consequence, gold and silver, or claims for them, remained
for a long time the only kinds of money between which there could be any competition; ( Not out of necessity but
because of lack of imagination. Chinese street money, not granting metal redemption claims but only goods or
services at metal values, existed already ca. 1200 A.D. and was often made out of wood or bamboo tablets. J.Z.)
and, since the sharp fall in its value in the 19th century, even silver ceased to be a serious competitor to gold. -
Hayek, ibid, 24/5. (Silver could be "revived" as a parallel currency, that would make further price fluctuations of
silver against gold rather harmless. J.Z. 7.4.85.)

79.) Would you know what money is? Go borrow some. - English proverb.
If you would like to know the value of money, go and try to borrow some. - Benjamin Franklin, 1706-1790.

80.) Money is important,...because OTHER PEOPLE want it. The first requirement of a truly useful money is its
acceptability. The more people are willing to accept it, the more useful that substance or thing is, as money. -
Robert LeFevre, Lift Her Up, Tenderly, 174. (F. is right here. This is primary. More important than redemption in
gold or silver because such purchases are only rarely wanted by most people. J.Z. 7/4/85.)

81.) In view of their (60 year) record, can governments be trusted to keep any money which the politicians have the
power to tamper with? - Henry Hazlitt: To Stop Inflation : Return to Gold, p. 19.

82.) Money that is tampered with is energy drained to the degree it is manipulated. - Joan Marie Leonard, The
Freeman, 3/77.

83.) He that is of opinion money will do every Thing, may well be suspected of doing every Thing for Money. -
Poor Richard, 1753.
They who are of the opinion that money will do everything, may very well be suspected to do everything for
money. - George Savile, Lord Halifax,1633-1695.

84.) Nothing but Money is sweeter than Honey. - Poor Richard, 1735.

85.) When it is a question of money, everybody is of the same religion. - Voltaire, 1694-1778.
He did not foresee that by now we could have hundreds, if not thousands of different religions views of money.
J.Z. 7.4.85.

86.) The value of money is that with it we can tell any man to go to the devil. It is the sixth sense which enables
you to enjoy the other five. - W. Somerset Maugham, 1874-1966
Money is like a sixth sense - and you can't make use of the other five without it. - Maugham, according to N.Y.
Times Magazine, Oct. 18, 1958.

87.) I don't like money, actually, but it quiets my nerves. - Joe Louis, b. 1914.

88.) The want of money is the root of all evil. - Samuel Butler, 1835-1902.

89.) One should look down on money but never lose sight of it._ Andre Prevot, 1911.

90.) The use of money is all the advantage there is in having it. - Benjamin Franklin.

91.) When I was young, I used to think that money was the most important thing in life; now that I am old, I know
it is. - Oscar Wilde, 1854-1900.

92.) There are few sorrows, however poignant, in which a good income is of no avail. - Logan Pearsall Smith,
1865-1946.

93.) Always remember, money isn't everything - but also remember to make a lot of it before talking such
nonsense. - Earl Wilson, Reader's Digest, 7/78.

94.) ...the element that makes stupidity shine. - Russian proverb.
Ideally, only the wise people would make much money and only the stupid ones would never gain much and lose it
fast. Then, obviously, the stupid ones could not shine with it for very long, unless they happened to be very lucky.
J.Z. 16.3.78, 7.4.85.
95.) The poor man's credit card. - US saying.

96.) The best things in life cost money. - Bumpersticker, seen in 1977.

97.) A money income is almost essential in a modern economy. Dreams of happy self-sufficiency on a
picture-postcard farm are dreams of the young and energetic. For almost everyone else, an income of money is the
SINE QUA NON of survival. With enough money, it is generally believed, people can buy what they need.... -
James E. McAdoo, The Freeman, I/76, p. 52.

98.) And let us bear in mind that exchange ( other than primitive barter ) depends on an honest, trustworthy,
circulating medium; this is an absolute - money of integrity. Freedom in monetary matters means no political
manipulation of our medium of exchange. - L.E. Read: Having My Way, 82/3.

99.) To begin, we don't have money any more; we have what Mr. Schiff calls unmoney... - John Chamberlain, The
Freman, 5/76, p. 312.

100.) Money is the material shape of the principle that men who wish to deal with one another must deal by trade
and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looter,
who take it from you by force. Money is made possible only by the men who produce. Is this what you consider
evil? - Ayn Rand, A.S., 387. ( Let producers also produce money, which they are ready to accept as money! J.Z.
8.4.85.)

101.) Money is MADE - bfore it can be looted or mooched - made by the effort of every honest man, each to the
extent of his ability. - Ayn Rand, A.S., 387.

102.) ...money is the root of all good. - Ayn Rand, ibid, 391.

103.) It's not that money makes everything good; it's that no money makes everything bad. - Yiddish proverb.

104.) Money is in fact the root of much good. - Paul Lepanto, Return to Reason, 85.

105.) To the Austrians money is the most marketable good a person may acquire. - Hans F. Sennholz, "reason",
Oct. 71.

106.) Money is not capital but stands for wealth in the process of exchange. - Dr. H.G. Pearce.

107.) We want it in order to get rid of it for what we want. H.G. Pearce.
Sometimes we also want it in order to get more of it. J.Z., 5.8.76.

108.) Money is honey. - From the film : The Producer.
Why shouldn't everybody be free to produce or collect it? J.Z. 1/2/76.

109.) Money originates from men's desire for INDIRECT exchange. And more, since indirect exchange usually
occurs between strangers like Smith and Jones, money must be an object which is mutally valued. - Paul Stevens,
The Freeman, 1/75.

110.) ...money is that commodity which serves as a medium of exchange by virtue of its high degree of
marketability... Paul Stevens, ibid.

111.) The crying need of the nation is not for better morals, cheaper bread, temperance, liberty, culture, redemption
of fallen sisters and erring brothers, nor the grace, love and fellowship of the Trinity, but simply for enough money.
And the evil to be attacked is not sin, suffering, greed, priestcraft, kingcraft, demagogy, monopoly, ignorance,
drink, war, pestilence, nor any of the consequences of poverty, but just poverty itself. - G.B. Shaw, Major Barbara,
1907.
Shaw remained unaware that without monetary freedom there will be neither enough nor sound enough money
around and that the abolition of the money monopoly is one of the most important steps towards the abolition of
involuntary poverty. J.Z. 8.4.85.
112.) Lack of money is the root of all evil. - Shaw : Man and Superman. The Revolutionist's Handbook.

113.) ...money, the economic catalyst. - View of Dr. H.G. Pearce, according to Progress, 7/76.

114.) Governments everywhere have shown they cannot be trusted with the creation of money. - H.B. Every,
Progress 9/76.

115.) It don't bring happiness but it makes being miserable easier. - George G. Gilman, "Edge", - Blood on Siler, p.
108.

116.) Money makes the world go round. - old song text, 1928.

117.) Everything else can satisfy only ONE wish, ONE need; ... Money alone is absolutely good, because it is not
only a concrete satisfaction of one need in particular; it is an abstract satisfaction of all. - Arthur Schopenhauer,
Aphorismen zur Lebensweisheit, translated by T. Bailey Saunders.

118.) Money isn't everything - but then neither is anything else.- The 1975 Down Under Calendar.

119.) Money isn't everything - but whatever comes second behind it - is a hell of a long way back. (Heard first a
few years ago. J.Z. 8.4.85.)

120.) Make money, not war. - Slogan of the Peace and Freedom Caucus of SIL.

121.) Let me give you a tip on a clue to men's characters: the man who damns money has obtained it dishonorably;
the man who respects it has earned it. - Ayn Rand, Atlas Shrugged, 389.

122.) Let money be the servant, not the master. - Quoted on radio, 22.10.76.

123.) ...labor cannot be free, unless each laborer is ...free to sell, wherever he can sell, all the products of his labor.
Therefore, labor cannot be free, unless we have freedom in money, and free trade with all mankind. - Spooner,
Cleveland 51, Works I.

I append here some hints to monetary freedom texts that OTHERS have made available on microfilm. For this
kind of texts provided by my LIBERTARIAN MICROFICHE PUBLISHING see my website lists. J.Z., 1.1.03.

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1144.NC Series: General Collection: Economics
            Author: Böhm von Bawerk, Eugen, ritter, 1851-1914
            Smart, William, Translator, 1853-1915
            Title: Capital and interest A critical history of economical theory
            By Eugen V. Böhm-Bawerk ... Translated with a preface and analysis
            by William Smart, ...
            Imprint: Macmillan and Co. and New York. 1890
            Place of Publication: London
            New York
            Date of Publication: 1890
            Pagination: xlv,[1],431,[1]p. 8o
            Subject Headings: Capital
            Economics
            Interest and usury
            British Library Shelfmark: 08227.g.3
            Fiche Quantity: 5 fiches; 11x15 cm
            Fiche Number: 1.1.7997
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1285.NC Series: General Collection: Economics
            Author: Macleod, Henry Dunning, 1821-1902
            Title: The elements of banking. By Henry Dunning Macleod, ...
            Imprint: Longmans, Green, and Co.. 1876
            Place of Publication: London
            Date of Publication: 1876
            Pagination: [2],270,[2],32p. 8o
            Notes: With an advertisement for works by the author and 36 pages of
            advertisements for works published by Longmans, Green, and Co
            Subject Headings: Banks and banking
            British Library Shelfmark: 8227.aaa.52
            Fiche Quantity: 4 fiches; 11x15 cm
            Fiche Number: 1.1.8367
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288.NC Series: General Collection: Economics
            Author: Gilbart, James William, 1794-1863
            Title: The logic of banking: a familiar exposition of the principles
            of reasoning, and their application to the art and science of
            banking. By J.W. Gilbart, ...
            Imprint: Longman, Brown, Green, Longmans & Roberts. 1859
            Place of Publication: London
            Date of Publication: 1859
            Pagination: xi,[1],605,[3]p., plate. 12o
            Notes: With a list of works by the author
            Subject Headings: Banks and banking
            Economics
            British Library Shelfmark: 8226.a.55
            Fiche Quantity: 7 fiches; 11x15 cm
            Fiche Number: 1.1.1162
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1250.NC Series: General Collection: Economics
            Author: Ingram, John Kells, 1823-1882
            Title: A history of political economy By John Kells Ingram, ...
            Imprint: Adam & Charles Black. 1888
            Place of Publication: Edinburgh
            Date of Publication: 1888
            Pagination: ix,[1],250p. 8o
            Subject Headings: Economics - History
            British Library Shelfmark: 8207.t.1
            Fiche Quantity: 3 fiches; 11x15 cm
            Fiche Number: 1.1.8281
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957.NC Series: General Collection: Economics
            Author: Jevons, William Stanley, 1835-1882
            Title: Money and the mechanism of exchange. By W. Stanley Jevons,
            ... . Eleventh edition
            Imprint: Kegan Paul, Trench, Trübner & Co., Ltd.. 1896
            Place of Publication: London
            Date of Publication: 1896
            Pagination: [4],xviii,349,[1]p. 8o
            Notes: Part of The International Science Series. - With a 4-page
            advertisement for other works in the series
            Subject Headings: Exchange
            Money
            Series Title: The international science series
            British Library Shelfmark: 2324.a.1/9
            Fiche Quantity: 4 fiches; 11x15 cm
            Fiche Number: 1.1.6412
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670.NC Series: General Collection: Economics
            Author: Joplin, Thomas, 1790?-1847
            Title: On our monetary system, &c. &c. with an explanation of the
            causes by which the pressures in the money market are produced, and
            a plan for their remedy, which can be carried into immediate effect,
            without any derangement, and with the approbation of the banks, both
            private and public, by which the currency is issued. By T. Joplin.
            Second edition. . 2nd edition
            Imprint: James Ridgway, Piccadilly. 1840
            Place of Publication: London
            Date of Publication: 1840
            Pagination: 79,[1]p. 8o
            Notes: With a final advertisement for works on currency and banking
            published by James Ridgway
            Subject Headings: Monetary policy - Great Britain
            Great Britain - Economic conditions - 19th century
            British Library Shelfmark: 8229.d.26(4)
            Fiche Quantity: 1 fiche; 11x15 cm
            Fiche Number: 1.1.3835
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1224.NC Series: General Collection: Economics
            Author: Macleod, Henry Dunning, 1821-1904
            Title: Economics for beginners By Henry Dunning Macleod, ...
            Imprint: Longmans, Green, and Co.. 1878
            Place of Publication: London
            Date of Publication: 1878
            Pagination: xiv,171,[1],4p. 8o
            Notes: With 4 pages of press-notices for works by the author
            Subject Headings: Economics - Handbooks, manuals, etc.
            British Library Shelfmark: 8207.b.14
            Fiche Quantity: 2 fiches; 11x15 cm