| Subject: | Re: [socialcredit] Questions regarding Douglas' testimony in Ottawa, 1923 | | Date: | Thursday, September 20, 2007 21:32:06 (-0400) | | From: | Joe Thomson <thomsonhiyu @....ca>
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| In reply to: | Message 5029 (written by william_b_ryan) |
(Douglas, in Ottawa:-) ......but I
think if you will care to read Mr. McKenna's speech at the annual meeting
of the London and Midland Joint Bank this year, I think he states that in so
many words." ---------------------------------------------------
(Bill asks:-) McKenna is frequently mentioned in Social Credit literature
in reference to the theorem that loans create deposits. Does anyone have
the text of
McKenna's speech that Douglas refers to here?
>
(Joe replies:-) I think McKenna must have made that point in more than one
of his addresses to the Midland Bank's shareholders, Bill. From the Net,
Louis Even is quoted in an article,
"A distinguished British banker, the Right Honourable Reginald McKenna,
one-time British Chancellor of the Exchequer, and Chairman of the Midland
Bank, one of the Big Five (five largest banks of England), addressed an
annual general meeting of the shareholders of the bank, on January 25, 1924,
and said (as recorded in his book, Post-War Banking):
"I am afraid the ordinary citizen will not like to be told that the banks
can, and do, create and destroy money. The amount of finance in existence
varies only with the action of the banks in increasing or decreasing
deposits and bank purchases. We know how this is effected. Every loan,
overdraft, or bank purchase creates a deposit, and every repayment of a
loan, overdraft, or bank sale destroys a deposit."
Note the date given here is January 1924, yet Douglas was giving testimony
and mentioning therein that McKenna had already said essentially the same
thing, and this was in early 1923.
In Chapter Nine of Douglas's post World War Two "Brief For the
Proscecution", (available on-line at the www.alor.org website in its
entirety), there is a fair bit recounted about McKenna and the background of
the Midland Bank, and changes that subseqently occurred to its 'policy' in
the years following 1924. McKenna's book, mentioned by Even, was titled
"Post-War Banking Policies" and was a collection of his speeches in the
1920's. www.abebooks.com lists two copies for sale.
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