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June 24, 2005

Social Credit: Make Your Own Bank

The economic prescriptions and principles that work for industrialized countries and even for the capital cities of developing nations break down when it comes to bringing prosperity to an area with no infrastructure and a hungry population. The usual prescription is the stimulation of SME - Small and Medium-sized Enterprise - activity, but the bottleneck is credit availability. Robert J. McIntyre acknowledges this in a recent paper, when he says:

Outside the capital cities, most of transition economies have not yet achieved broad-based and sustainable growth. Misguided assumptions that the small enterprise sector would by itself create successful economic growth, that individual private ownership was the only viable form and that local banking services are best provided by large, usually foreign-owned, national units, have together wasted much time.

But even a smaller banking unit, such as a credit co-operative as advocated by McIntyre, would have to rely on local savings for its capital base and may still run into trouble, especially if the situation has degraded to a point where there is little or no local capital to draw on.

Let's speculate for a moment. Would it be possible to bypass that financing bottleneck and activate productive local exchange by creating an independent local currency and payment system that does not depend on any outside "credit"?

Tom Kennedy, also known as Tommy-Usury: free definitely thinks so. He forwarded a transcript of a talk by Francois de Siebenthal, an economist and Filipino Consul in Switzerland given at the headquarters of the Pilgrims of St. Michael in Rougemont, Canada, with the following words:

You are invited to give this article by Francois de Siebenthal a careful read. What they are doing in the Phillipines and elsewhere is a simplified version of what I have been advocating. We have the modern tools of high technology to perfect this model here in Canada and in the rest of the developed world. What are we waiting for? Readers are invited to enrol with 'Hour' Third Market Network and list their offers of products and/or services that others can purchase...

Of course there are many competing networks in this jostle. Which one is going to make the big breakthrough? My personal preference would be for a fully internet-based open source, user-defined and user-controlled system of exchange such as envisaged in Ryan Fugger's Ripple project.

However, I believe that the description of de Siebenthal can bring us closer to a conceptual understanding of how this might work even without any hard cash. If you are not religious, I ask your patience. Just read over the references to rosaries and prayers - the real information is in the economic concept. That one will function or it won't. My bet is that it will.

- - -

How to apply Social Credit locally
A simple system to exchange goods and services
How you can open a local debt-free bank with the use of simple cards

by Francois de Siebenthal

The following is a lecture given by Mr. François de Siebenthal - an economist and Filipino Consul in Switzerland - at our headquarters in Rougemont, Quebec, Canada, in March, 2005. Mr. de Siebenthal demonstrated to those present on how easy it is to open a local bank with just the use of simple cards.

Mr. de Siebenthal had gone to Madagascar with Mr. Marcel Lefebvre, to the Philippines with Mr. Melvin Sickler, and to Poland with Mr. Janusz Lewicki to explain this system to various interested audiences. In fact, Social Credit is no longer only a theory, but is put into practice in these countries, with local debt-free banks multiplying.

In an age where the use of the microchip is becoming a real threat, this is certainly one way one could exchange one's goods and services without having to bow down to the use of this microchip. Why not read and study what knowledge Mr. de Siebenthal has on this subject. It could prove to be very useful in the future!

A simple bank

I will speak to you now just to teach you how to open a local bank with the Social Credit principles. It is very easy to do and everyone can do it.

It was already done in past history, especially small banks in Switzerland. And those small banks, local banks, were done by farmers. The banker is a farmer, the bank is in a farm house, the customers are farmers, and the owners of the bank were and are farmers. These little banks, put all together, in Switzerland, make the third largest Swiss bank actually in operation with the best ratio and the best management because the costs are very low. Being the banks are very small and in small houses, and because you do not need big armour cars and security personnel, these banks are very efficient. These little banks can also be found in Austria and some other countries.

The tragedy of debt money

You know that money comes from debts with interest rates, and you know that all the theory of Social Credit is true, and that interest kills. The statistics of the International Labor Organization in Geneva state that every day you have 5,000 people dying at their work places. That makes more every day than the people who died in the Twin Towers. Every day! That means that because of capitalism and because of exaggeration in productivity, you have every day 5,000 people dying on the work place. And I do not count all the stress, all the psychological problems, the suicides, alcoholism, the drugs, the children at home without the parents because the father and the mother are both working.

Now, with our system, you can imagine that a system without interest rates will save a lot of money. It will save at least three hours every day for each one of you, it will cut the prices by half, and it will give the houses 77% more space because the interest rates are taking a lot of productivity in the whole world.

So now I am teaching you how to found a bank. These banks were already founded in Switzerland, in Madagascar, Africa, in the Philippines, in Poland, and in Canada. These banks have had such a success that now the World Bank and the International Monetary Fund are already attacking these banks. In the Philippines there are already attacks in the government and in the newspapers. That means this system is interesting and the forces in front of us are already attacking this kind of banking system.

Where to start

How do we make such a bank in a country? What we did first was to listen to the people. What are their real needs? What are the real needs in Madagascar? What needs, the real needs, the basic needs just to survive, because in most of those countries the people do not have enough to live. Then listening to them, we learn too the mentality of those people. We have to adapt to the culture and the local mentality.

Social Credit is really the answer to the real needs, the basic needs of those poor countries. After having listened to the people, we tell them that we have something that can help them; it is not a magic wand that will give them paradise on earth, but it is a system that will guarantee each individual access to the basic necessities of life and allow the poorest countries to make use of their resources to help their own population.

The main thing is to look for the Kingdom of Christ and His justice: "But seek first the Kingdom of God and His righteousness, and all these things will be given you besides." (Matthew 6:33.) This is really what we are doing here with this local exchange system; we are dealing with justice, the justice of God. Work for justice, and everything else will follow!

A Christian coin
At this point of my talk, I would like to show the 5-franc coin that is currently in circulation in Switzerland. (See picture above.) On one side, one can see the Swiss cross, which represents the Kingdom of Christ, and on the other side, social justice is represented by William Tell, the Swiss national hero and liberator of the poor and of the oppressed. On the edge, one can read these Latin words: "Dominus providebit - God will provide", which specifically refers to the line of the Gospel of Matthew mentioned above.

In all our meetings to organize local debt-free banks, we need to remind people that God does provide, that He is indeed very generous. In the Philippines, for example, they can raise three crops of corn. If you take one seed of corn, this seed will give you three stalks which will give you around 200 seeds. So if one gives you 200, then ten gives you 2,000; one-hundred then gives you 20,000. Three crops per year (20,000 X 3) yields 60,000%. And the banker will probably give you 6%. This means that God is very generous.

There are fish in the sea you can fish. With the earth, you can till, and the earth is very generous. You know that the earth could feed many times the world's population. It is not a problem of food but a problem of distribution. Then it is important to remember how the earth is generous and that there is enough room for everybody on this earth.

In Switzerland, as I told you, this system of small banks is working. And there is another system working too which is a parallel money called "wir", a German name which means "we" in English. That involves a notion of community. This money is existing since the year 1933 during the crises, and it is working very well. It is parallel money. Nobody knows about this money but, because of this money, Switzerland, the poorest country in the world as far as natural resources are concerned, is one of the richest countries in the world because of its organization of small banks and this kind of parallel money.

Usury is condemned by the Church

You know too that the Church, the Catholic Church, has always condemned the charging of interest on the loan of money, calling it usury. As a matter of fact, the social doctrine of the Church, which supplies principles of justice to be applied in human activities, is probably, among all the teachings of the Church, the part that is the least known. And the least known part of this social doctrine, the best kept secret, is certainly the encyclical letter Vix Pervenit, issued in 1745 by Pope Benedict XIV, and addressed to the Bishops of Italy, about contracts, and in which usury, or money-lending at interest, is clearly condemned. In 1836, Pope Gregory XVI extended this encyclical to the whole Church. The text of this encyclical was destroyed in many countries of the world just to hide this most-kept secret of the social doctrine of the Church. It says:

"The kind of sin called usury, which lies in the loan, consists in the fact that someone, using as an excuse the loan itself - which by nature requires one to give back only as much as one has received - demands to receive more than is due to him, and consequently maintains that, besides the capital, a profit is due to him, because of the loan itself. It is for this reason that any profit of this kind that exceeds the capital is illicit and usurious.

"And in order not to bring upon oneself this infamous note, it would be useless to say that this profit is not excessive but moderate; that it is not large, but small... For the object of the law of lending is necessarily the equality between what is lent and what is given back... Consequently, if someone receives more than he lent, he is bound in commutative justice to restitution..."

What you need to start a bank

To found a local debt-free bank is very easy. You just need small sheets of paper, which we will call the accounts, and a general ledger. In fact, we will do exactly like the five people in the tale of Salvation Island, who realized they can create their own money. (See n. 17.)

The principle is the same as in the tale of "The Money Myth Exploded": an account is created for each member of the community.

The following system will therefore allow any community or village to make financially possible what is physically possible in that community, that is to say, to create as much money as they need to exchange goods and services. Just like in the tale of "The Money Myth", you can first use a blackboard and a chalk to explain the system to the people gathered in front of you, who want to be part of this local bank and exchange system.

Then you distribute to each member of the community a small card, which will be their bank account. (See Figure 1, a blank card.) You can use any bookkeeping card, small enough so it can be put in your pocket, in your purse; this will be the money and, at the same time, the way to create local money without interest. It is very important to state: without interest!

You distribute pens in the poor countries because, many times, they do not even have pens, and you write on the card the basic information about you: your name, your address, your card number (your bank account number), your birth date and signature. The signature proves that you are the owner of this card; even if you lose it, nobody else can use it, for as you will see later, your signature is required on the cards - yours and that of the person with whom you are exchanging goods or services - every time you make a transaction.

The first thing to do after these cards are distributed is to give numbers to the people. That means that everyone that is in the room should say a number, one after the other. The first row can have the number 1, 2, 3, and so on. Everyone is saying the next number in sequence and everyone is writing his number on his card, and one person in charge of the ledger for the community writes all the names in the ledger with the corresponding account number. This will be your bank account number, it is like in a football team - you give a number to everyone, and this number is matching the name on the card.

Depending of the level of development in the community, you can add your phone number and e-mail address, if it applies. You can also mention your trade (present occupation) and other jobs you could do or services you could offer. (This information can be used if one wants to create a catalogue of all the goods and services offered in the community.) On the back of the card, there is the address and phone number of the local bank.

Now, in the other columns, you have the date, the reason of the transaction, a column to show the money you spend (money out of your account), the account number and signature of the person you are transacting with, and a column for the money coming in to you. You can see that this is very simple.

An illustration

Now to understand better how it works, we have an example you can look at. (Figure 2, Tom Smith's card.) The first amount written down on your card will be an effective implementation of Social Credit: a social dividend, given periodically (once a month) to every member of the community, representing their common heritage in the wealth of the community (progress, life in society, natural resources). This amount is to be determined by the community, and must cover the basic necessities of life. So, on the first line, you see a date, the reason (a dividend), nothing in the money-out column (you draw a line; it is money that you receive, not money that you spend), the number and signature of the person giving you that money (in this case, the signature of the local bank or its director, and for the sake of the example, the number "0" was allocated to the bank.) And on the last column, money in, $100 is inscribed. The bank has given you a dividend of $100.00. (This transaction has also been inscribed in the ledger of the bank.)

Now the second line. Let us suppose Tom Smith wants to buy from Paul Jones 50 kilos of apples, for a cost of 50 dollars. So you have the date of the transaction, the reason (purchase of apples), the amount you spent (50 dollars), the number and signature of he who sold you the apples (Paul Jones, for the sake of this example, was allocated account number 2.) Paul Jones signs his name on your card, and you sign your name on his card.

In every transaction, there are always two cards, therefore two signatures involved. So, what is a purchase for you on your card, will be a sale for the other person involved in the transaction, on the other card. If you look at Paul Jones' card (Figure 3), the reason of the transaction will be "sale of 50 kilos of apples"), and the 50 dollars will be written in the column of the money in, not the money out. And Tom Smith's signature will appear at the end of the line.

Now, let us suppose Paul Jones has a chair that needs to be fixed. He knows that Tom Smith is a carpenter. He goes to see him, and Tom Smith agrees to do the job for 10 dollars. So you will have on both cards the reason of the transaction (chair fixed), with the amount (10 dollars) written on each card - as money that comes in, on one card, and money that comes out, on the other. And the examples could go on and on.

When this system is presented to the people for the first time, at the meeting for the foundation of the local bank, the best thing for you now is to train yourself with such a card. When the cards are distributed, you put your name on the card - you do not need to put all the other details. And you make transactions with your neighbours. You buy and you sell. And you will see that you have now in your hand the same money-creation system that the banks have now; they do the same in computers and ledger books in accounts in banks, but it is without interest that you do your transactions.

Now train yourself for a while with your neighbours on how to create local money. This period is very important, and you will need to give at least 15 minutes for this training period, until everyone in the room has understood. It is very important! In the Philippines, the young people went to the old people to teach them, some of them not even being able to write. But they were able to understand the system because it is only figures. If they do not know how to write letters, they know how to write numbers.

You have a contract every time you create money. You have, at the same time, the proof of a contract, a commitment with the signature, and the number to double check the signature.

You are in control

And you are controlling the system. This money creation is under your control and it is in your local community. You know each other and you can create as much money as it is necessary for your needs. So what is physically possible is now financially possible. Your community will never lack money.

This system you have now used is the same system that the banks use to create money, but you control it! And you control it without interest! It is very cheap. It is efficient. You can create any amount of money according to production and services available. You can make any exchange of goods and services. And you are in control; you own the money-creation system.

And it is even better than the actual system because to print bank notes, it costs a lot; just one line of printing machines with special ink, special paper, etc. costs $100,000,000 U.S., and you save this with this system. And it is even better than a bank note because you have your name on it. If you lose your card, someone will phone you telling you he found your money. And this person who finds your money can do nothing with your money because your signature is needed. It is really your money.

You cannot dispossess someone who has lost his money. And if the money (the card) is destroyed by fire or other means, you can reconstruct a card with the scriptures of the other cards. And all the cards will be consolidated in the local bank. This means that if your bank card is destroyed, you can reconstruct your bank card with the scriptures of the others because, on the other cards, you have your card number, and you can rebuild your scriptures and reclaim your assets which is even better than the actual system with bank notes. And you have, naturally, no interest. This means with every transaction, everything will be cheaper in the community because, today, the interest rates kill people.

To own a bank

In my presentation to start a new bank, I say to the people: "So, do you want to be the owner of a bank? Yes? Who does not want to be the owner of a local bank? I assume that everyone wants to be the owner of a bank. You can be the owner of a bank, like we did in the Philippines, Madagascar, Switzerland, and in Poland. But to be the owner of a bank, this bank needs to have a management. This banks needs to have auditors. Then we need now to have people who are willing and ready to act as managers, and willing and ready to act as auditors. So now I ask you, who will volunteer to act as managers of the bank and auditors of the bank? I need at least three managers (a director, a secretary, and a treasurer) and two auditors (who verify once in a while the bookkeeping of the bank). Now, the people who are willing to be and to act as the management of this local bank owned by the local community, please come in front of the room."

It was very interesting to see how many people were willing to act and to take the responsibility of running the bank. In Poland, we had so many people who came on the stage, it was just unbelievable. In the Philippines, too, a lot of people were volunteering to come in front to fill these positions. So be sure you have seats in front of the general assembly so the new managers and auditors will be able to sit down. It is the community that chooses the people who will be on the board of the bank, people they can trust and who have enough skills to do the job.

In Madagascar, we established a bank in one of the poorest villages in the country, and now we are receiving nice reports signed by the management of the bank. They understood, and they took the responsibility of their new bank very seriously.

To be the bank manager of the local bank is very easy: your only task is to be in charge of the bank ledger. There is no need for a safe, for bullet-proof windows and armoured trucks and armed bodyguards to carry the money, etc. The only thing you have to keep in your house is the bank ledger.

The prices

Now, at this stage, you have the general management, you have the auditors, and you have the general assembly. It is now important to put in writing the just prices for the basic goods and services of the area which will be decided by the general assembly. And to decide how to share the profits, because this bank can create money as any other bank. And this bank will create money to allocate investments for the production of goods. And the people, when they have a lot of pluses (money in) on their cards, can invest those pluses in projects, and those projects will give more production abundance. So it must be put in writing how the profits of this abundance will be distributed. This way the people will be more willing to share.

In the Philippines, for example, the producer of rice, who understood very well this system, signed a contract to share 70% of the profits from the production of rice with the general assembly, and keep only 30% of the profits for himself. It was really astonishing for me to see that they would be so generous in sharing. A priest explained to me that when there is no interest charged, when there is no usury, the producers are very happy because, in those countries, usury can climb up to 1,000% per year. That makes 20% a week. And because we now have a local banking system without usury, without interest rates, everybody is happy, and everybody can share more. Now all this money will not go to the usurer who was doing nothing except taking 1,000% per year.

A system that works

This system reminds us of the parable of the dishonest steward. You remember in the Gospel of Luke (Chapter 16) the parable of the dishonest steward saying to his master's debtors: "Here is your promissory note. Sit down and quickly write half the sum that you owe to my master." The only difference is that with our local debt-free banks, everything is done honestly. And it is working! In fact, it is working so well in the Philippines that we have now more than 15 local banks (as of March, 2005). And the newspapers and the government is now already attacking this system. That makes a lot of advertising, a lot of publicity. In fact, those attacks can be good for the spreading of the system because now everybody is speaking about this system.

It is the love of money that is the root of all evil, and with this system, you have less the notion of money being in your pocket, and it is a way that you love less your money because it is really just a means to facilitate exchanges. You can exchange any goods, any services, and you cannot as easily love your paper which is really with your handwriting and the signatures of the others, which is really a community creation of local money. It is not as easy to love this piece of paper as a bullion of gold or coins or bank notes. It is really a way to avoid this love of money which is the root of all evils.

A ruler to create money

And this card, this system is giving you the ruler to create money. As you have a ruler to measure meters or feet, you have a ruler now to create the money necessary for the local community life. And with this system, you can allocate money for the basic needs of the poorest. The dividend has to be accepted by the general assembly. Normally we recommend giving a dividend at least equal to the amount necessary to cover the basic needs for the life of the poorest, the sick, the old people present.

And it is working now. For example, in the Philippines they have chosen a dividend with the value of $100 U.S. And the local economic system has a boom now because there is enough money in the system.

Spread the news

We are looking for people to go all over the world to spread this good news. This good news is making the poorer richer. This too is making the local development possible. This too allows the poor to have as much money as they need for the physical needs of the local community. And it is really a liberation tool.

Naturally, in this process, you need to pray, so we always ask the people to pray together before each meeting. And because of the prayers of the Rosary, because of all the prayers of all the Social Crediters since the foundation of the Movement, it is really giving a lot of fruits.

And we need to work fast. For example: in the Philippines, the development is fast because one local bank alone is a plus, but if this bank is alone, it is not enough. You need to spread on a regional level around a city, for example. This way you can exchange all the goods, the food, services; you can exchange everything necessary for the basic needs of life. And it is happening now in the Philippines that the development is going as fast as possible. We are really astonished that they have understood so well with one month's teaching. They already opened more banks than what we did when we were there. Now we really need people to travel all over the world to spread this idea to others.

Francois de Siebenthal

See also:

P2P Can Cut Banks Out Of The Picture: Ripple

Solarclarity: The Ecology of Money
"From coin to paper currency, and from currency to credit card there is a steady progression toward commercial exchange as the movement of information itself. This trend toward an inclusive information is the kind of image represented by the credit card, and approaches once more the character of tribal money. For tribal society, not knowing the specialisms of job or of work, does not specialize money either. Its money can be eaten, drunk, or worn like the new space ships that are now designed to be edible. "Work," however, does not exist in a nonliterate world. The primitive hunter or fisherman did no work, any more than does the poet, painter, or thinker today. Where the whole man is involved there is no work."
From Marshall McLuhan, Understanding Media, p. 137-8.


posted by Sepp Hasslberger on Friday June 24 2005
updated on Tuesday November 14 2006

URL of this article:


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Readers' Comments

Comment from a friend in Switzerland:

"isn't sustainable growth what sustainably destroys this earth...

shouldn't the goal should be: enough for all."

Posted by: Sepp on June 27, 2005 05:21 PM


A discussion of the Guernsey monetary experience, sent in by Tom Kennedy:

As more and more people are being awakened to the reality that indeed, we can create and spend our own tokens to be used to facilitate trades/exchanges, researchers are uncovering stories about similar actions being taken in various parts of the world in the 19th and 20th Centuries.

The historic monetary policy of the Island of Guernsey which was launched early in the 19th Century, has relevance, as we-the-people of this 21st Century, are learning that given the ease of modern technology, we can actually create and spend our own usuryfree time currency within our own loyal database(network) which can serve us locally, nationally and internationally.

Enjoy this day!
Working with you for peace and plenty by 2020
AND Bringing usuryfree living alive in 2 oh oh 5
Tom J. Kennedy otherwise known as Tommy UsuryFree


The article The Guernsey Market House Scheme appeared in the THE FIG TREE Quarterly edited by C. H. Douglas (No. 10, September, 1938, pp.190-3):

The Guernsey Market House Scheme


THE financial experiment known as the Guernsey Market House Scheme was started over 100 years ago and, although of modest proportions, since it was confined to a small island of 25 square miles, it contained so many fundamental principles that everybody should know of it.

At the beginning of the nineteenth century, as a result of the Napoleonic wars, the trade of Guernsey was practically extinguished and the people were in despair. Unemployment was rife, the sea defences were breaking down, there were practically no roads, public buildings were in disrepair and, above all, a new market house, where the islanders could exchange their produce, was urgently needed.

It was impossible for the Government to finance these necessary improvements out of revenue, as this only amounted to £3,000 yearly, all of which was required for ordinary expenses and the interest charges on the island's debt of £19,000. Nor could the necessary finance be obtained by borrowing; the Government sought indeed to raise a loan, but such was the poor state of the island's assets that the only would-be lenders demanded the prohibitive rate of 17 per cent. per annum.

"Necessity is the mother of invention"; and in this case the idea put forward that the State should issue its own money daily gained ground. It was argued that, as labour and materials were both available, it was absurd for improvements to be held up simply through lack of money, and as conditions became even worse, this plan served to provide the only solution. Finally, after various setbacks and considerable opposition, the adherents of State money carried the day and, in 1816, 4,000 notes of £1 each were printed by the Government and paid out for the most urgent repairs.

By the success of this issue the principle was established and during the next 20 years the Government authorised notes to the extent of £80,000, which were utilised in building the new Market House, schools in every parish, roads all over the island, St. Elizabeth's Cottage, etc. These Government notes were redeemed, as the economic circumstances of the island justified, from earnings derived from the collection of market rents, customs duties, etc., and in 1836, when the scheme ended, there was a balance outstanding of £55,000 Government notes.


It is sad to relate that in spite of its eminent success this experiment was deliberately brought to an end. Although, after the first issue of the notes, there had been little active opposition to it in Guernsey itself, there were two outside bodies violently opposed to it. First, the inhabitants of the neighbouring island of Jersey became so jealous of Guernsey's prosperity that, in 1819, they obtained from Westminster an Order in Privy Council to the effect that the Government of Guernsey should not in any year exceed the amount of its annual income without Royal Consent. The Guernsey Government, however, took no notice of this and continued issuing notes as and when required.*

[*It would be interesting to know by whose advice Jersey was induced to appeal to the Privy Council.]

A few years later, however, opposition came from another quarter, the banking community in England. Although there had been no bank in Guernsey since 1810, there is reason to believe that the English bankers were becoming more and more apprehensive as the success of the Guernsey State money became more widely known.


It was in 1827 that a bank was established in the island and started issuing notes, which circulated side by side with those of the State. Two years later the directors of this bank complained to Westminster that the Government, by issuing its own notes, had exceeded its powers as defined by the Privy Council some ten years earlier. The Privy Council wrote to the Guernsey Government for an explanation, and such a logical and determined reply was sent that no further action was taken at that time.

In 1835 a second bank was started and more bank notes were issued to an extent to produce inflation, and by 1836 there was something akin to panic in the island. The Guernsey Parliament met and hurriedly appointed a Committee to discuss, with the bankers, the steps necessary to control the position. The members of this Committee were not all fully sympathetic to the issue of Government notes and the bankers won the day, for an agreement was reached whereby the Government was to convert £15,000 of their notes into a bank loan at 3 per cent. interest, and to cease issuing further notes, whilst, on the other hand, no limit was placed on the issue of notes by the banks.

This was the end of what was commonly known as the Market House scheme, the balance of the original Government notes, amounting to £40,000, being still outstanding today. Although since 1914 the Guernsey Government has again issued its own notes, these are now always covered by the Government deposits with the banks, and as today Guernsey currency is linked with sterling, these notes are issued or withdrawn in conformity with orthodox principles.

In considering the Market House experiment the following points should be borne in mind.

Orthodox finance could do nothing to get the people out of the depression caused by the Napoleonic wars. The Government could not obtain the necessary funds, either by taxation or by borrowing, and provided that labour and materials were available, as they were, there was nothing to prevent the Government issuing its own money. This it did, with the result that the appearance of the island changed out of all recognition. From its backward and depressed state it became, within 20 years, renowned for its well-being.

Moreover, by issuing State money, this transformation was carried out without increasing the island's national debt and without incurring interest charges. In fact if interest had been payable on the capital sums for these improvements, they could not possibly have been carried

It is interesting to note that up to 1914 the Government of Guernsey had collected in taxes over £35,000 to pay the interest on the £15,000 of State notes which were converted into a bank loan by the agreement of 1836.


The opponents of State issuance of money can usually be relied upon to raise the bogey of inflation. It must be remembered that inflation depends on the amount of money issued relative to the goods for sale, and does not depend on who issues the money. In the case of Guernsey, when the State first issued money, if it had been inflation there would have been either a shortage of commodities or else a rise in prices, and there is no record of either of these until 1836. Up to that year the Government had gradually and continuously increased the note issue, and it is reasonable to suppose that the net increase of money approximately corresponded with the island's increasing productivity. In that year, however, the banks deliberately brought about inflation, flooding the island with notes, with the inevitable result that, as there was no corresponding increase in goods for sale, prices began to rise and a panic ensued.

Let us compare the conditions of Guernsey and its need a century ago, with the condition and need of England today. When we hear arguments against slum clearance, against building new schools or hospitals or providing better roads, or even against providing everybody with a sufficient income to keep themselves decently, on the grounds that we have not the money, if we remember the Guernsey Market House experiment, we realise how specious such arguments are.


Posted by: Sepp on June 28, 2005 02:54 PM


i am very interested in this project and would like to know about it and would be willing to travel to teach it to others if i agreed awaitin your information thanks tonja galvan

Posted by: tonja galvan on July 6, 2005 08:46 PM


Excellent article.
Please join us in discussing how to escape the debt-based money system at

Posted by: steveC on August 2, 2005 05:35 PM


From a friend from switzerland.

The interest kills children, kills nations. F. de Siebenthal

Please, come to rougemont, canada 3-4-5- september.

The Summer Institute Programmes and international congress 3-4-5 September 2005

With great joy and optimism, we want to share with you this invitation to this International Congress.
We want this activity to be an answer to the universal call to be the voice of the voiceless, to assume the defense of life, become the standard-bearers of the ethical principles that must rule our society and to be the promoters of a responsible Justice.
That is why, we are calling good-will men and women to join this congress for life, for values and for the defense of the real human rights; fight that started in Rougemont, with multiple immediate fruits we are willing to promote throughout the world.
Your participation is critical: either we favor a culture of life or we favor a culture of death. Intermediate positions are not acceptable. Present times demand us to choose.
Rougemont, one of the centers for Social Credit waits for us with an open heart and a clear mind, so that the 5 continents together commit to build a fair and solidarity world, with peace and love.
We are sure you will all be present. Fraternally,


It is a difficult moment for humankind and at the same time it is rich in challenges and opportunities to relocate the real value of life, from Conception, as the center and reason of being of all the eagerness of progress men have, the Congress aims at being a world meeting that joins together and strengthens experts and/or defenders of Life and Justice thanks to Social Credit, from as much countries and organizations of the world as possible.
Place and Date of the II Congress

The International - Intercontinental Congress will take place in Rougemont, 3-4-5 September 2005

Congress Program, 3-4-5 September 2005

· Reception of participants. all morning.
Lunch by Continents
· afternoon 1:30 pm

Solemn Opening Session

· SYMPOSIUMS, with Masterly Conferences and Panels with international experts:

· 1st meeting - :
Facts, how to act ?
"National, Regional and World Coordination and Articulation of Pro-Social Credit Strategies".
· Presentation of Open Topics.
· Press Conferences.
· World Expo of Material.
· Projection of videos.

· 2 SYMPOSIUMS, with Masterly Conferences and Panels with international experts:
· 2nd meeting - lunch by Continents: "Pronouncement to All Leaders and Rulers of the World: The Declaration of Rougemont".
· Presentation of Open Topics.
· Press Conferences.
· World Expo of Material.
· Projection of videos.

Other meetings on request
Call for lecturers, please, apply.

· Closing session of intercontinental and continental colloquies.
· Awarding of open topics.
· Solemn closing session
· Mass

Followed by a week of special studies.

Lodging and Others
Registration is always possible..
Congress Office: Rougemont

Attendants will receive certificates if needed.

The Organizing Committee

Followed by a week of special studies.

How to fight poverty ?

Louis Even Institute, , , Institute of the 5 Continents ( I5C), Catholic Action of Poland and the Swiss Institute for Demography and Development (SIDD, in French ISDD), propose a variety of training programmes, each tailored for a particular target group. The most significant are the Social Credit programmes and those co-organised with the ISDD, which take place at the Louis Even Institute in August and September 2005. We also organise, upon demand and on an ad hoc basis, programmes to suit particular requests, in Lausanne, Rougemont, Daet, Miananarivo, Quito, Zakopane and abroad.

Curricula are designed to give students the theoretical and practical means to help promote Social Credit programmes and sustainable human development in today's globalized environment. The broader objective is to create a worldwide network of cooperating administrations, universities, and NGOs acting in the field.

Social Credit programmes : online training and working sessions

The Social Credit training programme is organised within the framework of the Louis Even Institute during the month of August and September 2005. Initial training takes place over the internet from June to July. Courses are given in English, French and Spanish. The overall aim of the programme is to give both graduate level theoretical training and practical experience in negotiating within the framework of Louis Even Institute mechanisms. Sessions at the Louis Even Institute provide the opportunity to make contacts with delegates from many countries. To qualify for the Louis Even Institute diploma, participants must submit a oral and written dissertation.

Louis Even Institute / Congress 3-4-5 September 2005 and studies up to the 12 September

In 2005, ISDD will be celebrating its anniversary. On this occasion, Louis Even Institute will be holding a special training session for participants accepting Christian principles.

The assessment of programme objectives carried out by the ISDD with former trainees revealed that additional training is much needed to help develop effective monitoring procedures aimed at reinforcing the surveillance of economic, social and cultural rights, particularly for the poors. Louis Even Institute believes that the benchmark approach and various tools for evaluation that have been developed by social sciences in recent years should be widely disseminated to give all actors, NGOs, governments, and academics the means to conceive specific monitoring procedures aimed at ensuring further implementation of these sound economic principles.

1. Participation

The programme is aimed at participants accepting Christian principles only. They can apply by e-mail.

Training will be given in French, English and Spanish, but time will be devoted to inter-group communication and exchange. The sessions will be held at the Louis Even Institute (Rougemont, Prov. Quebec, Canada), in August and September 2005, just after the annual meeting of the Congress. A special training programme for former young trainees will take place after the main session.

2. Methodology

The session will include workshops, group-work as well as individual research. Participants will be asked to conceive pedagogical tools in connection with the topics and methodologies that will be introduced during the programme. The session should lead to concrete action in the field.

3. Objectives

1. Reinforce the capacity of former and new trainees in the propagation of the Louis Even Institute' values.

a. Reinforce basic knowledge of how the economy works and introduce the methodologies currently developed by social sciences to monitor progress in the field of Louis Even Institute
b. Update on the current status of Louis Even Institute.

2. Give the means to promote a vision of development and of North/South relations based on good governance

a. Good governance as an integrating element in policies carried out at national, regional and international levels
b. Understand the interactions between sustainable development, good governance and the right to development
c. Develop monitoring procedures to help achieve the Louis Even's Institute Development Goals and Education For All

Pre-session training for indigenous representatives / September 2005

Louis Even Institute has actively collaborated in the design of a training programme with several journals, Vers demain, St Michaels... Training sessions take place in parallel to the Congress. They are aimed at offering a better understanding of international mechanisms and giving participants the tools they lack to conduct negotiations.

In 2005, 77 indigenous persons can benefit from a special training session organised in collaboration with Louis Even Institute , and St Michel in Spanish (Quito) federating a number of indigenous women's national organisations in Latin America.

Information. See internet
Programme in partnership with the ISDD, Lausanne

Informations available under Spanish version:

In response to this growing demand Louis Even Institute and St Michael journal have come together in Philippines and in Madagascar to organise a two-week regional training tailored to attract a large public at low cost. It should be noted that this is the first training of the kind to be organised in those regions.

Objectives. Beyond disseminating democratic culture in key sectors of those societies, the programme aims at reinforcing existing networks. It stimulates exchanges of experiences and expertise between participants from different professional and institutional backgrounds: teachers, civil servants, judges, lawyers, police officials, penitentiary administrators, journalists, NGO activists, etc. The programme also aims at training individuals likely to play a leading role in their respective fields of competence.

Selection is made by the Louis Even Institute together with the bishops. Geographical origin and gender are taken into account to assure non-discrimination.

The programme. The two-week programme aims at enabling participants to acquire in-depth knowledge of international and regional mechanisms, and to apply what they have learnt within their field of competence.
By the end of the programme, participants should be able to better evaluate the difficulties in applying these norms in daily life. Besides a presentation of the Louis Even Institute protection mechanisms and a reflection on the implementation of international norms within domestic law, the programme addresses the following themes:

o economic, social and cultural rights according to the Louis Even Institute ,
o the right to development: the role of NGOs and corporations,
o the human rights of women and children,
o the fight against impunity,
o introduction to international humanitarian law,
o justice administration and the fight against corruption.

The social credit is the best way to avoid a war or a revolution.

Agenda 21 (the document signed by all governments in Rio in 1992) as paragraph 33


Poverty caused by banks, please, click..

"Another kind of terrorism: the unjust economic system". Archbishop Concessao

An example of banking philosophy. Louis Even

In Argentina, 50 children die of hunger every day. Th. Tardif

It is urgent to put an end to the scandal of poverty. Alain Pilote

The interest kills children, kills nations. F. de Siebenthal

The banking system: "An impassable barrier", said Cardinal Agre of Ivory Coast

Full stores, empty wallets in Madagascar!. M. Lefebvre

Mon adresse est
On peut se parler gratuitement avec skype, mon identifiant est siebenthal, voir
Je recommande VIVEMENT une petite visite aux sites ci-dessous.
Avec mes meilleures pensées.
François de Siebenthal
Consul Général des Philippines a.h.
Secrétaire général du Corps Consulaire.
Économiste HEC et lic. ès sc. iur.
23, Av. Dapples
00 41 21 6168888 FAX: 6168881

Posted by: frank on August 8, 2005 02:29 PM


Here is a comment (by email) from a friend in the Netherlands:

I gave the article a quick read and find its philosophy similar to the beginnings of Rabobank in Holland, which was founded by farmers as a co-op bank, and now has evolved into a Dutch financial force majeur. On that note, I'd also like to add that when the larger banks see competition brewing, in whatever form, they will not simply sit there and let it happen, rest assured, and thus I predict that any small system, when it reaches a certian level of sucess and use, will become a target for takeover, most likely when hard time hit, just as the farmers' banks in the US were taken over during the depression. Or if it is not considered a threat of any consequence do to limitations self-imposed, itmay be allowed to continue as a token gesture banks would use as advertising about their generous, friendly natures to the general public, which is what I would assume is the reason Swiss banks allow that alternative currency to exist. I'd be willing to speculate that someone in that banking community took the time to weigh the public relations value leaving the system alone as opposed to what it was actually costing the bank communtiy in real money and decided that it was worth more to their "friendly image" leaving the alternative system intact than they would recoup by destroying it.

I can't agree with the premise that the reason Switzerland has survived because of its co-operative monetary system, although it does sound quite romantically wonderful. The fact is that the BIS (Bank of International Settlements), arguably the most powerful bank in the world, is located in Switzerland, as are many, many "Swiss bank accounts" amounting to an obscene amount of money, all bearing service fees and interest. UBS, the consortium which purchased control of Enron's energy distribution network in the US for the gigantic sum total of $0, is in Switzerland. Interestingly, the man who runs the UBS Enron branch just happened to have become conveniently employed by UBS after having jumped employmnent with Enron approx. 1 year before it went belly-up. This added, I can't agree that the alternative currency floating in Switzerland is what keeps that country afloat despite its low resources in other areas. Take the multinational banks and the BIS out of Switzerland, and it would certainly wither and die. Take the alternative currency out, and it would still be there, although those surrounding romantic notions wouldn't.

Posted by: Sepp on August 8, 2005 08:23 PM


God, my Creator, did guide me to your website, and I would very enthoused to participate in such a program with a unique philosophy. I am from Haiti a country with an unacceptable poverty, which i want to do something positive to help eradicate its poverty caused by human greeds. Please invite me to participate in the September meeting in Canada to become an active member.

Hope to hear from you soon,

I remain.

Champ pierre

Hope to hear

Posted by: Champ Pierre on August 24, 2005 06:16 AM


i wish to open a bank to support poor i live in Australia but i dont know where or how to begin

Posted by: susie courtney on November 21, 2005 07:18 AM



Probably your best bet would be to get into micro-credit, if you have money to invest.

If not, lots of study on alternative economy and some friends to start a group...



to start with.

Posted by: Sepp on November 21, 2005 04:36 PM


After years of wondering about how our economic system worked always with an constant undeniable feeling that "something" was just not right about it I learned about the Social Credit of Major C.H. Douglas. I now understand that my uneasiness was completely justified. I am also ecstatic and overjoyed to find that there are people who are actively pursuing a real social credit system especially because it is outside of the reach and control of the current financial system. I can easily see ideas and practices like this becoming a peaceful grassroots revolution sparked off by a two tier financial existence. I can see the people working more hours every year for less looking over and seeing the stress free life of people living in plenty and immediately jumping out of the rat race. For all the people who are involved in this system of trade. Thank You from the bottom of my heart you have renewed my faith in humanity to a whole new level not because of an assumption that it works but because there are people out there with the faith in there fellow human beings to try.

Posted by: John Williams on July 22, 2008 06:59 AM


Check the Gcredit Project hope it will win in the Google 10^100 contest.

Posted by: alexej on December 7, 2008 08:42 PM


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