Chapter XII Creditalism Vs. Capitalism

Green endorses it and hands it to Redd for hens. Redd endorses it and hands it to Smith in payment of debt he owes Smith. Smith buys a Stetson from Goldstein, and he rushes down to the depository and deposits the cheque. The depository debits Brown's account $10 and credits Goldstein's account $10. Probably neither White, Black, Green nor Smith had a deposit account. Certainly it was Brown's deposit account giving value to the cheque, and there was only one $10 involved, but it paid for $50 worth of stuff and settled a $10 debt between Brown's writing the cheque and Goldstein's depositing it, it had done $60 worth of business — ends up $10 on deposits. No one was injured least of all Brown, owner of the $10 deposits. His cheque transferred the $10 deposits to White, and each re-transferred the deposits until Goldstein asked for final transfer from Brown to him. Time element meant nothing. A day or 365 days would have resulted in same endorsements, same stuff bought with final transfer of deposits. That is exactly what the Government should have done, used the existing deposits over and over until the war ended. Each would have been paid for his time and his goods. There would have been a continuous flow of deposits from depository to person, from person to person, and from, person to depository, the Government acting exactly as the pump that sucks up the water out of the pool, forcing it through nozzles. The water falls right back to be sucked up again, over and over. The Brown $10 did as much business as, six cheques if each cheque had been redeposited by first recipients. The Government having the control and the use of its own credit, there would have been no bonds engraved, and no new deposits created under total manpower conscription. The Government would have operated all businesses — farms, factories, mines, forests, retailing, wholesaling, communication and transportation, so all cheques issued would ultimately return to the Government for redeposit. There would not have been any bond sales, and stars would have had better jobs than osculating pot-bellied bankers at bonds sales. Not only all able-bodied men and women, but property, all money and every business would have