The reforms projected by us in the financial institutions and principles of the PEOPLE will be clothed by us in such forms as will alarm nobody. We shall point out the necessity of reforms in consequence of the disorderly darkness into which the PEOPLE by their irregularities have plunged the finances. The first irregularity, as we shall point out, consists in their beginning with drawing up a single budget which year after year grows owing to the following cause: this budget is dragged out to half the year, then they demand a budget to put things right, and this they expend in three months, after which they ask for a supplementary budget, and all this ends with a liquidation budget.But, as the budget of the following year is drawn up in accordance with the sum of the total addition, the annual departure from the normal reaches as much as 50 percent in a year, and so the annual budget is trebled in ten years. Thanks to such methods, allowed by the carelessness of the NON-XXXX States, their treasuries are empty. The period of loans supervenes, and that has swallowed up remainders and brought all the NON-XXXX States to bankruptcy. You understand perfectly that economic arrangements of this kind, which have been suggested to the PEOPLE by us, cannot be carried on by us. Every kind of loan proves infirmity in the State and a want of understanding of the rights of the State.
Loans hang like a sword of Damocles over the heads of rulers, who, instead of taking from their subjects by a temporary tax, come begging with outstretched palm of our bankers. Foreign loans are leeches which there is no possibility of removing from the body of the State until they fall off of themselves or the State flings them off. But the NON-XXXX States do not tear them off; they go on in persisting in putting more on to themselves so that they must inevitably perish, drained by voluntary blood-letting. What also indeed is, in substance, a loan, especially a foreign loan? A loan is -- an issue of government bills of exchange containing a percentage obligation commensurate to the sum of the loan capital. If the loan bears a charge of 5 percent, then in twenty years the State vainly pays away in interest a sum equal to the loan borrowed, in forty years it is paying a double sum, in sixty -- treble, and all the while the debt remains an unpaid debt. From this calculation it is obvious that with any form of taxation per head the State is baling out the last coppers of the poor taxpayers in order to settle accounts with wealthy foreigners, from whom it has borrowed money instead of collecting these coppers for its own needs without the additional interest. So long as loans were internal the PEOPLE only shuffled money from the pockets of the poor to those of the rich, but when we bought up the necessary person in order to transfer loans into the external sphere all the wealth of States flowed into our cash-boxes and all the PEOPLE began to pay us the tribute of subjects.
If the superficiality of NON-XXXX kings on their thrones in regard to State affairs and the venality of ministers or the want of understanding of financial matters on the part of other ruling persons have made their countries debtors to our treasuries to amounts quite impossible to pay it has not been accomplished without on our part heavy expenditure of trouble and money. Stagnation of money will not be allowed by us and therefore there will be no State-interest bearing paper, except a one-per-cent series, so that there will be no payment of interest to leeches that suck all the strength out of the State. The right to issue interest-bearing paper will be given exclusively to industrial companies who will find no difficulty in paying interest out of profits, whereas the State does not make interest on borrowed money like these companies, for the State borrows to spend and not to use in operations. Industrial papers will be bought also by the government which from being as now a payer of tribute by loan operations will be transformed into a lender of money at a profit. This measure will stop the stagnation of money, parasitic profits and idleness, all of which were useful for us among the PEOPLE so long as they were independent but are not desirable under our rule. How clear is the undeveloped power of thought of the purely brute brains of the PEOPLE, as expressed in the fact that they have been borrowing from us with payment of interest without ever thinking that all the same these very moneys plus an addition for payment of interest must be got by them from their own State pockets in order to settle up with us.
Talk is cheap. Let's hope that Attorney General Eric Holder really means this, and actually arrests the bankers.
What could have been simpler than to take the money they wanted from their own people? But it is a proof of the genius of our XXXX mind that we have contrived to present the matter of loans to them in such alight that they have even seen in them an advantage for themselves. Our accounts, which we shall present when the time comes, in the light of centuries of experience gained by experiments made by us on the NON-XXXX States, will be distinguished by clearness and definiteness and will show at a glance to all men the advantage of our innovations. They will put an end to those abuses to which we owe our mastery over the PEOPLE, but which cannot be allowed in our kingdom. We shall so hedge about our system of accounting that neither the ruler nor the most insignificant public servant will be in a position to divert even the smallest sum from its destination without detection or to direct it in another direction except that which will be once fixed in a definite plan of action. And without a definite plan it is impossible to rule. Marching along an undetermined road and with undetermined resources brings to ruin by the way heroes and demi-gods. The NON-XXXX rulers, whom we once upon a time advised should be distracted from State occupations by representatives receptions, observances of etiquette, entertainments, were only screens for our rule. The accounts of favorite courtiers who replaced them in the sphere of affairs were drawn up for them by our agents, and every time gave satisfaction to short-sighted minds by promises that in the future economies and improvements were foreseen. . .
Economies from what? From new taxes? -- were questions that might have been but were not asked by those who read our accounts and projects. You know to what they have been brought by this carelessness, to what a pitch of financial disorder they have arrived, notwithstanding the astonishing industry of their peoples. . .
Internal loans. Debit and taxes. Conversions. Bankruptcy. Savings banks and rents. Abolition of money markets. Regulation of industrial values.
"We shall replace the money markets by grandiose government credit institutions [e.g. federal reserve], the object of which will be to fix the price of industrial values in accordance with government views. These institutions will be in a position to fling upon the market five hundred millions of industrial paper in one day, or to buy up for the same amount. In this way all industrial undertakings will come into dependence upon us. You may imagine for yourselves what immense power we shall thereby secure for ourselves..."
Next day by artificial means the price of them goes up, the alleged reason being that everyone is rushing to buy them. In a few days the treasury safes are as they say overflowing and there's more money than they can do with (why then take it?). The subscription, it is alleged, covers many times over the issue total of the loan: in this lies the whole stage effect -- look you, they say, what confidence is shown in the government's bills of exchange. But when the comedy is played out there emerges the fact that a debit and an exceedingly burdensome debit has been created. For the payment of interest it becomes necessary to have recourse to new loans, which do not swallow up but only add to the capital debt. And when this credit is exhausted it becomes necessary by new taxes to cover, not the loan, but only the interest on it. These taxes are a debit employed to cover a debit.
Later comes the time for conversions, but they diminish the payment of interest without covering the debt, and besides they cannot be made without the consent of the lenders; on announcing a conversion a proposal is made to return the money to those who are not willing to convert their paper. If everybody expressed his unwillingness and demanded his money back, the government would be hooked on their own flies and would be found insolvent and unable to pay the proposed sums. By good luck the subjects of the NON-XXXX governments, knowing nothing about financial affairs, have always preferred losses on exchange and diminution of interest to the risk of new investments of their moneys, and have thereby many a time enabled these governments to throw off their shoulders a debit of several millions. Nowadays, with external loans, these tricks cannot be played by the PEOPLE for they know that we shall demand all our moneys back. In this way an acknowledged bankruptcy will best prove to the various countries the absence of any means between the interests of the peoples and of those who rule them.
I beg you to concentrate your particular attention upon this point, and upon the following: nowadays all internal loans are consolidated by so-called flying loans, that is, such as have terms of payment more or less near. These debts consist of moneys paid into the savings banks and reserve funds. It left for long at the disposition of a government these funds evaporate in the payment of interest on foreign loans, and are replaced by the deposit of equivalent amount of rentes. And these last it is which patch up all the leaks in the State treasuries of the PEOPLE. When we ascend the throne of the world all these financial and similar shifts, as being not in accord with our interests, will be swept away so as not to leave a trace, as also will be destroyed all money markets, since we shall not allow the prestige of our power to be shaken by fluctuations of prices set upon our values, which we shall announce by law at the price which represents their full worth without any possibility of lowering or raising (Raising gives the pretext for lowering, which indeed was where we made a beginning in relation to the values of the PEOPLE.) We shall replace the money markets by grandiose government credit institutions, the object of which will be to fix the price of industrial values in accordance with government views. These institutions will be in a position to fling upon the market five hundred millions of industrial paper in one day, or to buy up for the same amount. In this way all industrial undertakings will come into dependence upon us. You may imagine for yourselves what immense power we shall thereby secure for ourselves. . .
The secret of what is coming. The evil of many centuries as the foundation of future well-being. The aureole of power and its mystical worship.
"True force makes no terms with any right, not even with that of God; none dare come near to it so as to take so much as a span from it away."
Though it be even by the exercise of some violence, yet all the same it will be established. We shall contrive to prove that we are benefactors who have restored to the rend and mangled earth the true good and also freedom of the person, and therewith we shall enable it to be enjoyed in peace and quiet, with proper dignity of relations, on the condition, of course, of strict observance of the laws established by us. We shall make plain therewith that freedom does not consist in dissipation and in the right of unbridled license any more than the dignity and force of a man do not consist in the right for everyone to promulgate destructive principles in the nature of freedom of conscience, equality and the like, that freedom of the person in no wise consists in the right to agitate oneself and others by abominable speeches before disorderly mobs, and that true freedom consists in the inviolability of the person who honorably and strictly observes all the laws of life in common, that human dignity is wrapped up in consciousness of the rights and also of the absence of rights of each, and not wholly and solely in fantastic imaginings about the subject of one's ego. Our authority will be glorious because it will Be all powerful, will rule and guide, and not muddle along after leaders and orators shrieking themselves hoarse with senseless words which they call great principles and which are nothing else, to speak honestly, but utopian. . .