Although I spend much of the year traveling through British Columbia my home address reads Terrace BC. So I have the following question for all the citizens of Terrace:
What if the Corporation of the City of Terrace started its own bank?
Let's call it The Bank of Terrace. Let's also assume that the focus of this bank was the benefit of all the citizens of Terrace as opposed to itself. And let's further assume that instead of operating a Private Debt Money System like the Bank of Canada does, it operated a Public Credit Money System similar to what occurred on the Island of Guernsey in 1816 and 1822. Consider the following borrowed from the Internet:
What if the Corporation of the City of Terrace started its own bank?
Let's call it The Bank of Terrace. Let's also assume that the focus of this bank was the benefit of all the citizens of Terrace as opposed to itself. And let's further assume that instead of operating a Private Debt Money System like the Bank of Canada does, it operated a Public Credit Money System similar to what occurred on the Island of Guernsey in 1816 and 1822. Consider the following borrowed from the Internet:
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Alternative Monetary system: Republic of Salt spring Dollar
Thursday, December 27, 2001 7:59 PM
Season’s Greetings to All and a Prosperous 2002: Let me add my 2 cents worth:
I had occasion to write an article for the Monetary Reform Magazine on the Guernsey Monetary System on the Island of Guernsey in the English Channel, just off the French coast. Both Guernsey and Jersey, famous for their dairy cows, are what is called a ‘Bailiwick’ or territory under the authority of a Bailiff or sheriff. This all goes back to the 13th century and before to 1066 and the Norman Conquest.
I had occasion to write an article for the Monetary Reform Magazine on the Guernsey Monetary System on the Island of Guernsey in the English Channel, just off the French coast. Both Guernsey and Jersey, famous for their dairy cows, are what is called a ‘Bailiwick’ or territory under the authority of a Bailiff or sheriff. This all goes back to the 13th century and before to 1066 and the Norman Conquest.
These islands are semi-independent and are not actually part of the UK and not responsible to parliament. They are directly responsible to the Crown and Privy Council. They do have a defence agreement with the UK.
Back in 1816, they were bankrupt due to the Napoleonic Wars and were in a desperate situation. High unemployment, extremely high debts, poverty, large emigration, no services or public infrastructure and worst of all, the island was being washed into the sea due to the deteriorating dikes and sea walls.
Desperation has a way of broadening one’s vision and the Council decided to strike a committee to look into this situation. The committee reported that there was only one way out and that was to print their own money, hire contractors and repair the sea walls immediately. This was all well and good except that the merchants wanted to know how they were going to get rid of this money if they accepted it. The Council agreed that all taxes could be paid in this currency. Thus, a circular system was created from creation of the bank notes to eventual destruction. This all worked well and all notes were recovered and burned as agreed. In the process, a church, a war monument and some repairs to sea walls and dikes were completed.
Then, in 1822, they once again printed 4500-One Pound notes to construct a covered market building. This was completed and every year 450 notes were burned. At the end of ten years all the notes were gone and the building was debt free at zero interest. This building still stands to this day with two additions all paid for with ‘printed’ money. The Council still owns these buildings and I estimate that they have returned at least $5 million or more in today’s money to the treasury over the past 179 years This profit has, of course, been used to finance other public projects and today Guernsey has a flat income tax of 20% and no other taxes. They are not needed.
The circulation is about 17 million Pounds and this in effect is an ‘interest-free’ loan to the Treasury from the note holders. The benefit to all citizens of Guernsey are very low taxes, excellent public infrastructures and lower prices compared to the UK, which is still paying for the War of Independence against the Americans, plus all other war debts.
This massive public debt, which is totally unnecessary, causes both inflation in prices as the interest must be paid by taxing everything and immense poverty, not to mention vast lost opportunities to create all manner of beautiful public works and infrastructure.
Best regards,
Baron Fowler~~~~~~~~~~~~~~~~~~~~
To see a true example of a Public Credit Money System visit:
Now if there was a Bank of Terrace controlled by the City Council, Terrace could have interest free and debt free money at any time. Just like the Island of Guernsey. The Bank of Terrace would issue money into circulation for whatever the City Council deemed necessary; a new garbage truck, medical facilities, better roads, fire halls, fire trucks, etc. And just like on the Island of Guernsey the Terrace Bank Money spent into circulation interest and debt free would be used by those who received it to purchase goods and services within Terrace as well as pay Municipal taxes and licence fees. If this were possible fewer dollars would leave Terrace through big box stores.
What I'd like to know is, "Why is the City of Terrace required to use Borrowed Bank of Canada debt notes that guarantee a debt for the users via interest charges?" As Canadians each and every one of us has a share in The Bank of Canada. The bank's web site confirms this fact
- The Bank was founded in 1934 as a privately owned corporation. In 1938, it became a Crown corporation belonging to the federal government. Since that time, the Minister of Finance has held the entire share capital issued by the Bank. Ultimately, the Bank is owned by the people of Canada.
Did you also know that the Province of British Columbia has the authority to print its own money and spend it into circulation at no interest and no debt.
The following was taken from: http://members.shaw.ca/
This is a great site. The owner lives in Kelowna.
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A second option available to the provinces, failing action by the federal Government, is to set up its own mechanism to provide additional credit to British Columbians based upon the wealth of the province. The BNA Act of 1867, our Constitution, Section 92.3, the province is allowed to "borrow on the sole credit of the Province", that is to say, upon the real wealth of the province. A few short years ago, The World Bank published a report in which they estimated the worth of Canada's natural resources at 2500 trillion dollars! This figure did not include our water resources or the resources of the northern territories. Based upon the size of British Columbia and its known resources, B.C.'s wealth could be conservatively estimated at 150 to 200 trillion dollars. More than enough to make all British Columbians very wealthy. Under the BNA Act of 1867, the provinces or more precisely, the people, hold exclusive authority over their natural resources. Presently, governments borrow from private banks and other sources because these lenders recognize this natural wealth and lend against it. Therefore, there is no doubt that there is actually a provincial credit and the province can certainly establish its own mechanism to use this credit directly, without mortgaging its wealth nor going into debt and paying unnecessary interest charges to individuals or corporations, like the private banks.
What is needed in B.C. as well as the other provinces, because they face the same problem, is a Provincial Public Credit System. A mechanism whereby, the province can provide credit within the province of B.C. for its own legislatively approved expenditures, including health, education, highways, bridges, resource development and other concerns. This credit would be interest free and repaid through taxes or user fees to keep the system in balance (See The PCMS). The key here is "interest free". Interest charges amount to a growing, significant expenditure for government, business and individuals. These interest expenditures are absolutely unnecessary!
A prime example as to how this can be utilized, would be mortgages for principal residences in B.C. The province, through a system of "public" banks or credit unions, can issue "credit"(loans) to British Columbians for the purchase of a principal residence within B.C., interest free! The only necessary charge would be a nominal administration fee to monitor and process payments. (We don't need to borrow from the private banks and pay them interest!!) This single action alone would allow every British Columbian to own their own home within a few short years. No more paying for a home 3,4 or 5 times over because of burdensome interest charges levied by private banks. This single act alone would also free up hundred's of millions of dollars for consumers to spend on other goods and services, creating thousands of new jobs and giving the economy an enormous boost. Another example would be resource development. The province, through a Provincial Credit System can advance credit to companies to develop our natural resources. For example, if we needed to increase our natural gas production, the province can provide the credit needed for the private sector to construct the facility. By charging a nominal rate for the use of the Provincial Credit plus a royalty percentage based on production, the province would earn revenues to repay the credit advance and support some of the other needs of the province. In Alaska, the state collects royalties from the producers, who develop their natural resources, and then pass some of this revenue on to each and every citizen of the state in the form of a state dividend. There is no reason why this cannot be done here.
In 1939, the Provincial Government of Alberta under William Aberhart passed a law, which was to provide exactly this. The Alberta Credit House Act was passed with the intention of providing additional credit to Albertans. This is where the network of "Treasury Branches" originated. It was the intention of the Alberta Government to provide interest free credit to Albertans and get away from the debt money system operated by the private banks. Unfortunately, World War ll brought about a suspension of this Provincial Credit System and in 1943, William Aberhart died in a car accident. The Act is still on the books but it has never been implemented.
This system would operate similar to the pictorial example of the Public Credit Money Sink. The only difference would be that the province would create credit and issue it within the province to meet our provinces needs and extinguish the advances (loans) as payments came in. The Provincial Credit Office would extend credit for authorized provincial public and private expenditures. Payments would come back in the form of a regular payment schedule (in the case of credit advances to the private sector for development of provincial natural resources) or through taxes and fees for public services to keep the system in balance.
To summarize, governments at all levels, private industry and the public at large are all under financial pressure. We see, on a daily basis, government cutbacks, budget shortfalls, reduction in services, pressure to either raise taxes or find other means to raise revenue and an increasing public debt which cannot ever be paid back under the present debt money system. Businesses either moving out of province or going under, leaving thousands of our citizens unemployed, unions striking for higher wages and benefits, injured workers fighting for support payments which are harder to come by or are reduced. More and more, wives are forced to work to provide a second income in order for families to survive, husbands are taking on second jobs, part time work or working overtime and weekends just to make ends meet. And on top of all this, personal debt has climbed to an all time high and shows no sign of stopping.
The problems are daunting but not impossible to overcome. But the promises and the remedies offered by past and present governments and politicians will not solve the problems. Provincially, we have the power to make the necessary changes. All that is required is the will to do what must be done. We need to establish our own mechanism for providing credit within the Province. A growing and expanding economy requires a growing and expanding supply of money to meet the needs of society. Under our present system, the banks supply the "money" to meet demand but extract more back in the form of principal and interest payments. This causes the constant shortfall of the money supply in the economy and results in problems such as those referred to above. Under a Provincial Credit System, the supply of "credit" will always be adequate enough to meet the needs of the people and provide for a prosperous future for all of us.
Think on these things and ask your politicians why they insist on borrowing money from a bank that demands interest and thereby creates debt for all. I'm sure that every Canadian (except those who have an interest in private banks) would agree that their bank could do this. They may even demand this once they truly understand how the Canadian banking system works.
This question,
This question,
"What if the Corporation of the City of Terrace started its own bank?" could be asked of any little town or city in any country of the world. What if we all did that. The world would instantly become a wealthy place for all, except private bankers. And the control that they exercise over all Governments would vanish. Let's do it.
Comments has been disabled as this in not meant to be open for public discussion. However comments to the author are welcomed.
david.ealing@gmail.com
david.ealing@gmail.com
