A Banking and Monetary System
To Restore Prosperity and National Dignity
To the Australian People


For a banking system to be truly a SERVICE to the public instead of a LIABILITY as today, the following is required.

1. The monetary system to be under the control of the Australian Government's bank, the National People's Bank, the only bank of issue of both cash and of credit.
2. The National People's Bank will incorporate the functions of the Reserve Bank. It will value our own monetary unit, exchange foreign currency, trade in precious metals or barter.
3. Private Australian owned banks will operate in conjunction with the People's Bank, but on 100% reserves in cash or asset backing.
4. Service Fee charges instead of "interest", limited via the Constitution of the Bank, to a maximum of 5% on high exposure loans.
5. The People's Bank need not make a profit, but must pay its own costs and support itself, hence the "Service Fee" charges.
6. The great majority of additions to the money supply will flow from the People's Bank and effect the goal of any loan intent or the Governments requirement. Loans must return to the Bank via direct repayment and any potentially inflationary surplus to be removed from the money supply by taxation.
7. The Republic will have one tax system that is used for the banks circulation of money only, and not to pay for public works and debts. In today's system the majority of tax is used for nothing else but debt repayments, caused by profit taking usury level interest rates.
8. The People's Government's public works will be funded direct by the Bank to the Government department and if performed by private enterprise, the addition to the money supply will pay for the Service Fee, and a balancing tax [see later] on the sale of goods/ services will decrease in relation to the amount paid for wages and other expenditure, excepting capital equipment, buildings etc.
9. The People's Banks Government Housing Corporation will ensure finance for owner/occupier housing is available to citizens on a "rent buy" system, which builds equity in the home. In the event of "genuine default" the equity can be retained without the legal exercise of a binding mortgage contract. Rates for housing would be the banks lowest service fee charge, approximately 1% to 2%.
10. To achieve these simple, yet revolutionary changes to the AUSTRALIAN BANKING SYSTEM, various reforms, principles, procedures and methods must be enacted. The following is the outline of these reforms.


The desired results of this search. often predetermined by what is conceived to be wrong with our present banking system, opens up a plethora of exotic solutions, and holds perhaps as many elements of "voodoo" as does the existing "economics" which surround present policy decisions concerning banking.

Such examples of "voodoo" is the cringe away from a central bank because:- it is or was the 5th plank of the communist manifesto; nationalism is discredited; parliament should not control banks or bank policy; 100% backing must accompany an issue of credit and this backing must be gold or silver; a "just price" must be obtained by price subsidies or purchased goods: - ad-nausium.

If we want honest banking and sound money we should ask WHY these concerns are contemplated as "problems" by well meaning reformers. The answer to WHY will always be that parliament must have "some" control on the power in the areas of economic freedom. As at present these concerns are valid, as banks always abuse the system with this power and freedom to make policy. In turn they have controlled Parliament.

The concerns of a central or nationalised bank, credit backing and such policies are not essentially or entirely banking and economic problems in isolation, so much as they are a fault in the idea that we have a democratic system in which the public can change any conceived problem by means of the ballot box, but this is not the case.

The foremost problem of an honest banking and monetary system is that the people do not PARTICIPATE, in fact not participating in any policy decisions, but are REPRESENTED by "spokesmen" who maintain they interpret public opinion, but in reality follow party lines and act as advocates thereof, thus shutting off any public interest or participation in policy formulation. Yet the Parliament is supposed to be our servant.

Therefore the very first plank in any honest bank and sound money policy must be the PARTICIPATION OF THE PUBLIC MIND AND WILL UPON THE SUBJECT. We can then ask what we have to fear from a central bank that we can control or from credit creation issued to ourselves by ourselves, so long as it is understood that this credit must be cancelled out after the reason for its issue has been realised, to stop inflation and reduction of purchasing power.

The second plank of honest banking will be knowledge of how the nations money can come into existence, realising the wealth of the nation, before being promptly withdrawn to avoid ruination of the asset by inflation, as occurs at present. ie: borrowers assets or earning potential create credit, and the balancing tax adjusts the volume of the money supply after realising the asset, product or service.

The very problem of "deficit finance" is a prime example of an unchecked parliament and the "elite" directing the path of social reforms at the public expense. The national debt, foreign aid and defence expenditure are other areas.

Consider what our economic situation would be if these were subject to public scrutiny before enactment. Even the banks at a personal level are deceiving us in the CLAIM OF OWNERSHIP ON CREDIT ISSUED and by the excessive interest and charges attached.

Next we should ask how will GOLD or SILVER be elastic enough to extend over an overhaul of the nations technology in order to rectify the effects of soil and resource depletion, environmental pollution, and to provide for the introduction of regenerative industries and the removal of the corporate monopoly of the old elite order.

"Free" energy and cars powered from water etc. are presently uneconomic, and therefore from necessity alone the horizon of any new era will be expansive, providing we overcome the idea, now existing, of limited funds.

Again, the fundamental questions that relate to gold and silver money are:-

1. Do we have enough gold and silver?
2. What value will the gold and silver be?
3. Could this bullion be subject to outside manipulation?
In answering these questions we do not convert to $Australian or the dollar will control the price of gold, and if specie money is created, which shall rule as a value - the gold or the wealth base?
4. If the value is set at world price, [actually Rothchild price] can not this value be altered against our favour?
5. How will the gold be obtained if more is needed? Will it be bought at Rothchild prices and paid for with fiat currency or specie? ie. credit for gold or gold for gold.
6. What laws shall govern the protection of the gold backing and to whom shall the ownership of the gold belong?
7. If the elite control the gold will they not also control us?

The search for sound money and honest banking can therefore be summarised as follows:-

1. History indicates and daily economic problems confirm the need for a better banking and money system.
2. The search has revealed many proposed solutions, some of which may be as much a "dismal science" as the old system.
4. The demands that are to be placed on a new equitable banking and money system will be greater than ever before due to the failure of the existing system.

This summary involves the simplicity of the factors that must be addressed, but should not make the solution any more complex, for the prime goal must be a simple equitable and inherently stable means of exchange.

There are two cardinal rules apparent from history and at present in the manipulation of money.

1. Those who own the gold have the money.
2. Those who own the credit have the money.

Money in this sense is all that has passed for the medium of exchange regardless of the effect. Additional to this is both deception of money and the reality of money.


1. Arising out of the presently accepted dogma surrounding money, there are such false ideas as an "equal distribution" of money to be achieved. For example, by taxing the rich and giving to the poor. Under this doctrine money is treated as if it had its own value, one given by deliberately creating a "shortage".

Treating money like a commodity that is in short supply thereby raises its value. ie. interest rates.

With this shortage of money dogma there can be no "equal distribution" that is valid, if taxation is used to pay a premium such as high interest. This is how our national debt is always growing - at last report to be $150 billion.

Taxes are a direct result of the government following the doctrine that money has a value of its own, as they pay the interest rates that add to the vicious circle, as does stock speculation and over valuing of companies physical wealth on paper.

None of these activities benefit the people of a nation as the medium of exchange is not working to simply transfer anything, but imparts excessive and false values to everything that is bought and sold. Due to the artificial shortage there is extensive slowing down of all activities of trade and commerce, resulting in hours of extra toil and concern to support false, deceitful greed, and CONTROL OF POWER. However, this tower of paper must eventually collapse when debt exceeds available assets, or speculative assets are valued downward.

2. To make all this clear there is one more simple deception to be understood. This is that banks have money to loan that invariably belongs to others, such as "the depositors". In actual fact the customers themselves provide the money or the "credit" which is granted by the bank upon the backing of the customers mortgaged assets.

Prior to a customer going to the bank, the money or credit did not exist, only the authority to issue a certain amount of credit existed. No citizens savings deposit has ever been reduced as a result of the bank making a loan to someone else.

Banks call "deposits" what are actually loans. ie. If you borrow $50,000 to build a house, the builder you pay will for a period "deposit" this money in any given bank - this is the "deposit" that banks have on their balance sheets and which causes this confusion. Dr H.C. Coombs in 1954 expounded "whenever a bank lends money there is always an increase in the total amount of money available". ie. A new loan is new money.

3. Thus if all loans were repaid to the banks from all customers, they would have little money to lend out. Banks thus have little money to loan without citizens money which they call "deposits", and deem as their assets as they have a claim on some real wealth. ie. the citizens assets pledged as security.

The profit they make is the interest rate charged to citizens and from taxes collected by governments and paid as interest on their borrowings. We may think of interest in plain terms of 12% or 13% of a total sum, but this needs to be multiplied by the years the loan runs, which demonstrates the largest part of repayments is generally the interest. Due to this expansion of debt to be paid by debt, the amount borrowed will lose its purchasing power over those years. ie. If your $100,000 home costs $400,000 after interest, you will want $500,000 in the future for it.

The general multiple is four or five times the principle required- such is the value of money in a "shortage dogma" economy, that four days out of six are spent toiling to meet interest rates that are a crime against humanity.

This inflation of money reduces its value and the never ending spiral of costs outstrip the productive effort that has given money its life. The need for more trade and products exceeds buyers and the world faces economic crisis and war against enemies, whose only real crime was or is the making of a better product at a more competitive price, all to pay their debts to bankers.

The shortage of money dogma with its constant need for trade produces planned obsolescence, a surplus of exports, luxury items and environmental pollution. The constant borrowing, constant debt activity to feed the banks allows them economic and political control, ably supported by their acquiescent and indebted media.


1. Money is a medium of exchange of goods, services and creativity - the basis of civilisation. Resources and labour, both intellectual and manual, comprise the wealth base.

2. If it is to be a true medium of exchange money must circulate. It must be made available for this purpose and when the objective is realised, the job completed, it must return to its source.

This is the social equity of money:- Issue = circulate = cancel.

3. The value of money is its use, availability and ease of transfer for the exchange of labour, goods/services and creativity. Its cost is only the actual cost of its creation and the provision as such a medium of exchange. It does not and should not have any other value.

4. The backing for any medium of exchange can only be the store of value it contains while there is a transfer or realisation of any real objective being undertaken. In other words, the backing for any money is in the resources, goods/services and creative inputs occurring during the production of a product, standard of life, service.

5. Money in itself is intrinsically worthless and does not back itself. To be a medium of exchange which transmits no cost, price rises, inflation and reduction of purchasing power, it must circulate without a "price".

6. Considering these statements on money, it would be detrimental to the worth and value of all resources, goods/services and creativity, to try to impart a value to the medium of exchange itself ["price"]. Further, creating a shortage of that medium and treating it like a commodity and raising its value by placing a charge on it, is also detrimental, yet this is exactly what occurs when any charge rate is in excess of what it costs to provide the medium of exchange.

Thus bank profits and fees beyond book entries, cheque books, accounts managers, tellers, telegraphic transfers, bank premises and the like, the normal functional costs as a medium of exchange, are an extra charge on money.

7. Such extra charges upon money, anything above 3% average service charge, plus taxes to governments in order to pay debts to profiteer banks, or to beat up the Stock Exchange placing a false value on a company's shares, is an attempt to place a huge constraint on the true function of money; that of a medium of exchange.

The constraint that money has a value in itself is destroying the advancement of civilisation and creating poverty and pollution through overproduction, built in obsolescence, required by the debt, taxation, and profit economics of greedy elitists.

8. Any organisation which attempts to distort the function of money as only a medium of exchange by placing a value inside the unit of exchange itself, is acting as a parasite on the national economy, the life blood of which is all the realisations of a civilisation. This begins with resources both human and from nature which are actively transformed into goods and services by the efforts of work and creativity.

Money will not provide food or shelter on a deserted island nor could it be eaten by the starving. To overproduce simply to pay debt is insane because it produces waste and destruction of the environment.

9. The factual reality is that there are still extensive amounts of resources both human and from the earth, yet the price of goods has continued to rapidly escalate and not be purchased due to the said "shortage of money" and its resultant "cost increase", high interest and taxes etc. It becomes obvious that those who manage this money do not have to work or physically create anything, but in their greed show a contempt and distaste for productive enterprise and workers.

10. The abundance of resources referred to are generally regarded as economically unrealisable due to the cost or the loss of investment and profit under present economic restraints.

Instead of the employment of such methods as "free" electricity or new crop plantations or production in arid or low productive areas due to poor rainfall, the cheaper and easier means of production are used. Crude oil etc., which pollutes the environment instead of cars powered from water; water recycling or freely tapped electricity which has no bowser or meter are not considered economic in the presence sense, and accordingly not obtainable in the currently accepted system. Yet they are all there as resources.


Wealth is that which is sought as a result of the endeavours of life and it is this wealth that transmits value to gold or anything else. It is also this wealth that produces the need for economies and medium of exchange.

Thus "wealth" is the backing for any value that may be contained or imparted into a monetary unit during its transmission as a medium of exchange. "Wealth" therefore must be defined as the sum total of the inputs that go together to build a civilisation.

This includes -
1. All resources of the earth known and unknown.
2. All useful ideas that transmit into advancement of facets of technology known and unknown.
3. All useful ideas that transmit into a technological and culturally advanced civilisation known and unknown.

Now if wealth is going to be, and is in any case the backing for any value that may be in the medium of exchange during its transmission, there must be a lawful consideration imparted to the wealth portion in the contracts.


In the early Bank Acts of England there was a clearly defined consideration given to the public "wealth", and was called "Public Credit". ie. the presumed, soon to be realised wealth of a given loan.

In the early days of course, interest was banned by the Church preventing any parasite in the system, the medium of exchange being a special accounting stick [the tally stick]. This tally stick was issued as a loan by the King, to realise a certain public works, and after the work was done and paid for, the tally stick was taxed back to the treasury where it was matched to one held in the treasury and the tally was complete.

What was realised by this action was another piece of wealth creation, the ownership of which may be a concern, as here it was always the King, and thus the wealth creators [labour] were "serfs and poens". While there was consideration, there was no equity for labour, however certain individuals could raise such loans, and workers could spend their sticks as wages on their needs as part of the circulating cycle of payments.


This base consists of:-
1. The individual contribution, mind and toil combined with resources.
2. Ideas, invention, innovation, cultural art forms such as technology, economics and politics.
3. The ability to solve problems within a group or nation using the wealth base, is directly related to the sum total of the cognitive ability within it.

Nations that have a high cognitive ability should not erode the wealth base by mixing with nations that have a reduced cognitive ability, and thus wealth base.

This cognitive ability is the explanation of why some nations succeed and others fail. It also explains economic refugees, foreign aid and multiculturalism as a political and economic idea, and why mass education does not solve this problem.

Cognitive ability is not learned or educated, it is inherited!

History provides proof of this and it is why Western culture in politics and economics prevails for the time being. However, it now faces monumental problems of its own, including environmental pollution.

It is foolish to imagine that a society with a reduced level of cognitive ability will come to grips with the environmental, economic and political problems now confronting us.

Australian citizens are not to blame for the erosion of this wealth base, as an overwhelming number do not agree with the multicultural concept. It is the product of political dictators, who also originate the major problems in economics and politics.

This situation is accelerated when it is considered that the old originals have been saddled with incurred debt, thus reducing offspring, yet newcomers are considered or promoted to be more "economical" securing employment, and with their traditional low cost lifestyles produce more offspring.

Needless to say, the migrants that the politicians are bringing into Australia usually come from a country that has an abundance of resource wealth in their soil, but which these people do not use to their advantage because of lack of technological skills and commerce management.

This again points to these people themselves as the factor, through a lack of cognitive ability, and to why assistance needs to be rendered to them to remain in their own country and preserve their indigenous culture.

Multiculturalism degrades the sum total of the wealth base of the nation, because the cognitive ability in mind and toil becomes less per head of population when immigrants are not homogeneous.

The politicians of the day all have advocated the destruction of our indigenous culture, and of our total wealth base by multiculturalism.


A "coin of the Realm", as in Europe at that period of history 12th to 16th century, also "circulated" without interest and served the same purpose. In both cases all parts of the before mentioned "wealth" were realised by the providing of the medium of exchange as a "public credit" without interest and it served for 570 odd years without boom or bust, unemployment and debt.

In the 15th century a man only worked for 15 weeks for his yearly needs. To be active he even worked voluntarily in the remainder of the year.

While wealth is clearly defined herein as the "backing" for credit, it lawfully belongs to the public and in the loan consideration for the fact that some wealth is to be realised as a future thing. Therefore from an idea, today can still be seen the need for credit creation, however, the ownership can be none other than the borrowers, who have the idea and the public who will use it.

This bank proposal as a prerequisite, will place the ownership of credit created, upon the borrowers plate and make no charge or claim upon it, except the requirement for the amount created to be taken out of the system upon realisation of the wealth, which was once an idea.

This method is nothing more than funding the future today. Because of the known and unknown factors of wealth creation, it is logical that credit issued be backed by the proposed wealth realisation. If the wealth was not to be realised after all judgement of loan approval etc. is granted, then the loan is to be written off. ie. nothing gained, nothing lost, yet the "future" was still attempted. In this case future wealth is not achieved and the credit for it is therefore cancelled out of existence.

The overriding objective of a new honest banking system would be to realise wealth previously not able to be obtained in the parasitical and fraudulent systems. It involves these basic guidelines.

In order to begin this equitable bank, the prime reorganisation is that banking becomes a regulated service without an "interest parasite", without debt burden, with fair exchange of public wealth and enterprise, and subject at all times to the governing democracy of the Public Forum. [See Public Forum Democracy]


1. A mechanism of issue, payment and cancellation of credit that is in balance without inflation [profit beyond cost of service]. This means an issue of monetary units that equal the principle and charges.

2. A system of financing housing, manufacturing and primary production [without the cost of mortgage foreclosures, the bankers lien principle], by a lease or rent buy system.


The utilisation of the real wealth of Australia to ensure a maximum standard of living, consistent with the productive capacity of the nation, through national control of its credit resources and the establishment of an efficient medium of exchange between production and consumption, without monetary speculation distorting the wealth base. No Stock Exchange, only separate registered Stock Brokers selling accredited stock, not subject to stock speculation.

Principles needed.

1. Direction and control of credit resources and banking to be vested in the National People's Bank. Other banks can operate but not create credit.

2. Ensuring of essential community purchasing power by the organising of employment and the expansion of services to enable Australian primary and secondary industries to operate at the maximum capacity involving a national accounting balance. All debt must be met by an issue of equal monetary unit.

3. Control of interest rates, ie. Service Fees, to reduce the burden upon public and private undertakings so as there is no profit taker in the medium of exchange. Interest to become "service cost only" and to be included in the Constitution of the Bank fixed at 5% maximum rate.
4. Charging by the National People's Bank to the limit of the cost of accounting management and issue.[service cost of money and no more]

Procedure to be used during and on replacing existing system.

1. Total money supply to equal total value of goods and services and consumer goods required for full consumption, plus the cost of accounting within the National People's Bank. This provides all debts with a payment capacity.

2. The government will print and own an amount of Australian notes which equals the sum total of Treasury notes, and the entire volume of artificial bank credit of government bonds should replace Treasury notes, thereby invalidating them. All debts, public and private, will be settled with non interest bearing government notes.

3. All savings and investment deposits in banks must by law be in the form of government notes [100% reserves], only the depositors themselves should decide how any such funds could be invested or loaned. It will be impossible for banks to create false "credit" by "fractional reserve banking". They will no longer dictate interest rates, will have no monopoly of credit creation and will be responsible to their customers.

4. The Reserve bank system will be liquidated. Australian "Bonds" held by the Reserve bank will be repudiated and remaining net assets taken over directly by the nation according to already existing law.

5. Remaining government bonds, with the exception of savings bonds held by individuals, ought to be repudiated since they represent a fictitious debt created on false premises. To assist in this area, a loss equalisation process will best succeed if other monopolies are eliminated, and also the merciless income taxing of human efforts is abolished.


In order to regulate the "volume" of money which issues from this currency reform it is necessary to establish a sound statistical basis to the financial system.

The completion of the statistical data should be the task, as it is now, of the Bureau of Statistics. The relevant data would consist of the total value of transactions in the preceding month, the national business operating capacity, the CPI. and the total volume of Australian money in circulation.

This total is made up of coins, notes in circulation and the accounts in banks operating to a 100% reserve backing against demand deposits, plus all other forms of "legal money" which appear as accounting entries in the National People's Bank.

These figures will determine the amount of a uniform positive or negative retail tax to the maximum of 15% on all consumer goods and services for the next month.

This adjustment will maintain consumer purchasing power and thereby control inflation or deflation. It will permit full production capacity and maintain maximum employment, assisting in continuing the policy of debt free issuance of money.

Note: The only tax to be in existence in this system is a plus or minus sales tax. There is no "income tax" and all pay the same tax on all purchases. There are no "deductions" etc. This is a "Balancing Tax only" and its object is to take out funds that would cause inflation or put back funds that would cause deflation.

The tax applies equally to all individuals, companies, corporations and trades.


Any new order of procedure for a sound money system must be able to organise consumption and the planning of the use of the materials necessary for the production which would ensure these levels of consumption.

Contrary to present economic thinking, this is much easier than organising production itself. It is this area which clearly points to the understanding of why the State should issue and control money.

Currently as said, money is manipulated by a private monopoly. It is a unique monopoly in that it turns a high profit for minimal effort.

The engendering of a "profit" for the creation of money has a serious multiplying effect which produces inflation through the profit margin causing endless price increases.

A government system of money creation needs no profit: It must only cover cost. Therefore those enterprises relying on stable "cost" of money can easily plan in co-operation with government, the application of resources to production. Clearly, a shortage of high "cost' of money cannot build for stability. The endless cycle of boom and bust will be broken as ORDER would succeed price anarchy. Over production and shortages would be all but eliminated from our economic life.

A stable economic system without super profit and super crisis would benefit all. Unstable money is our current problem. The solution - removal of the parasite.


1. The operation of the National People's Bank
to be entirely independent of private banking interest and free from sectional influences of constraint but subject to PUBLIC FORUM.

2. Law reform to respect credit creation as belonging to the borrower instead of the banks, including the National People's Bank.

3. A statutory provision that the banking of all public bodies shall be reserved for the National People's bank. This means national and all local or provincial government. Public spending to be 25% backed by gold which is owned by the people - balances and settlements made annually.

4. Any and all credit creation to be reserved to the National People's Bank.

5. A limit upon interest rates and taxes to a maximum of 5% AND 15% respectively.

The origin of all credit creation to be upheld as "the public credit" only, Part V., s. 51. ss. iv of the Australian Constitution. The limit to be the Sovereign Law of the Constitution and the Public owned gold control on the Government expenditure.

6. A National Credit Advisory Authority to be set up to collaborate with the Government and the People's Bank to plan the investment of - public - credit and thus utilise to the fullest extent the real wealth of Australia. These two authorities to be balanced by a Board of Consumption Authority, a national system of consumer planning.


7. Other financial institutions including private banks to operate on 100% reserves of their own.


1. To finance the building of homes and adjust existing mortgages to present values by amortising private mortgages and replacing them with loans issued under the authority of the National People's Bank on the lease buy programme or other equitable banking procedure. - No mortgage liquidation or legal costs in assessing equity.

2. To plan future agricultural development with loans issued at nominal costs and to effect adjustment of existing mortgages; to undertake extensive decentralisation and promote closer ties between city and country; for ecologically sustainable technology, recyclable energy and pollution control. Loans affected by drought, market falls etc. to be written off with automatic no claim on borrowers except for nominal costs of the cancellation.

3. To plan the extension of Australian secondary industries to achieve maximum industrial self sufficiency. To provide for effective transport services including national rail networks for increased productivity.
To carry out these measures and to assure citizens freedom in security, the first objective is to secure the solid foundation of our economic structure, and this is the nationalisation of the banks creation of credit mechanism, on behalf of the people of the nation, the owners of the public credit. The law must be changed to reflect this ownership.

An equity court must deal with claims on the borrower, the validity of the loan write off, relating to fault, responsibility or other circumstances beyond the control of the borrower.



In the banking bills of 1945 measures were planned to enable Australia's wealth and vast resources to be utilised in the interests of all, instead of the vested interests and financial institutions.
The most important and outstanding section in the Banking Bills of 1945 is that of No. 28 which reads :-

"A bank specified in part 1 of the first schedule shall not except with the consent in writing of the Commonwealth Bank purchase or subscribe to -

[a] Securities of the Commonwealth or of a State, or of any Authority of the Commonwealth or of a State.

[b] Securities of any Local Government body in Australia.

[c] Securities listed on a Stock Exchange in Australia.

Another provision which caused much argument was Section 48 which provided -

[a] Except with the consent in writing of the Treasurer, a bank shall not conduct any banking business for a State or for any Authority of a State, including a Local Government Authority.

It was upon this section 48, that the High Court defeated the Labor Governments 1945 banking legislation as passed by Federal Parliament.

It is hard to understand that while the Local Government Association of New South Wales at its 1945 conference called upon the Federal Government to make it possible that interest free money be made available, through the Commonwealth Bank for National works etc., there were some Councils who set out to oppose the principles of Section 48.

The Commonwealth Bank had sought nothing from Government, but on the contrary, had helped them in many national undertakings, including the construction of the East-West railway, portion of which proved to be without debt and free from interest burdens at completion, despite later claims in the systems media as an "accounting error". The railroad is real!

Since 1924 the difference in bank policy can be seen by comparing the Sydney Harbour Bridge costs with that of the East-West railroad. One was a loan between departments [bank and rail], the other was from the Bank of England. The 1932 bridge was only paid for in 1990, the railway of course, an accounting error!

This first attempt is a guide to reformers of bank policy, however all alternatives must keep up with the times. Any one reform can only be a proposal and advocacy.
It must define who has the wealth and who should own the credit. Also how a balance of debt and payment will take effect, especially in relation to taxes.

In a democracy, all plans must be subject to new advocacy and public participation for eventual public approval. To do otherwise would be a repeat of history, of a failing egotistical dictatorship of ideas, plans and notions that our monarchical constitutional laws uphold.

Thus bank reform needs Public Forum Democracy to be in place, and because of present constitutional limitations, the entire system must change to effect equity for the general public.


There are many old reservations about any new bank system, even amongst reformers. The Establishment can also be expected to toss in old invalid arguments, however they can be judged by their deeds, which is why reforms are required.

Some of the reformers reservations:-

Statement 1. A National bank would mean ultimate power to the Government and "ultimate power corrupts ultimately" ESPECIALLY IN BANKING.

PEOPLE'S BANK ANSWER = PUBLIC FORUM controls all banking policy and law. [economic democracy]

Statement 2. All Government expenditure must be backed by gold, This will stop excess spending by Government.

PEOPLE'S BANK ANSWER = Gold backing for all private enterprise limits the potential of the nation to the amount of gold in existence. This proposal limits only the government to 25% gold reserves as an extra measure of control for the people over the government spending and PUBLIC FORUM can amend this form of control. The Public own the gold held in trust in the People's treasury.

Statement 3. Huge credit expansion will cause inflation to rise out of control.

PEOPLE'S BANK ANSWER = Only if the "expansion" stays in existence after the realisation of the loans originating reason for existence, in other words, not cancelled, nor circulated.

This is achieved by reducing the principles existence upon repayments as it is done today, and removing the service cost charges by means of the plus and negative balancing tax system.

In the case of public works programmes and the payment of wages into the money supply, this goes to provide the "price differential" of manufactured goods and or services of industry, as does social welfare payments, lottery winnings etc. Again, all are subject to the single tax in the system so that circulation is effected and cancellation is automatic.

The existing banking and monetary system not only now controls the power of the State, but has led to the impoverishment of Australian citizenry, and through debt to be now nothing more than tenants in our own country.

All aspects of Australian life, social, cultural, political and environmental have been reduced to an economic unit. The nation faces continuing economic decline and social misery, of falling to third world standards.

This People's banking and monetary system offers Australian citizens the restoration of prosperity and social justice to all.

6th MAY 1992.

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