Instead of the Constitutional method of creating our money and putting it into circulation, we now have an entirely unconstitutional system. This has brought our country to the brink of disaster, as we shall see.

A historical sketch of currency and banking in Canada, tracing certain features of the central banking stystem that have finally led up to the establishment of the Bank of Canada appears on pages 900 - 905 of the 1938 Canada Year Book. In chronological order these are:

The last line of the above should be emphasized at this point.
"thus providing the banks with a means of increasing their legal tender cash reserve at will"

This is a most astounding statement!

What it says is that the banks can create their own reserves, and then issue BANK CREDIT MONEY against these reserves that they themselves have created. In other words, they now need no gold, no silver, not even paper money, but all they need are government securities (bonds) as reserve for CREDIT MONEY and furthermore, they can buy these reserves (bonds) with the CREDIT MONEY that they have created.

Did someone once say you can't get something for nothing?
Let him investigate our monetary system and I am sure he will change his mind.

A small group of "privileged" people who lend us "our" money have accrued to themselves all of the profits of printing our money -- and more! Since 1913 they have "created" billions of dollars in money and credit, which, as their own personal property, they can lend to our government and our people at interest (usury).

"The rich get richer and the poor get poorer" had become the secret policy of the Federal government. An example of the process of "creation" and its conversion to peoples "debt" will aid our understanding.

Billions in Interest Owed to Private Banks

We shall start with the need for money. The Federal Government, having spent more than it has taken from its citizens in taxes, needs, for the sake of illustration, $1,000,000,000. Since it does not have the money, because it has given away it's authority to "create" it, the Government must go to the "creators" for the $1 billion But, a private banking corporation doesn't just give its money away! The Bankers are willing to deliver $1,000,000,000 in money or credit to the Federal Government in exchange for the government's agreement to pay it back -- with interest! So the government authorizes the Treasury Department to print $1,000,000,000 in Canadian Bonds, which are then delivered to the GOVERNMENT OWNED BANK OF CANADA.

The BANK OF CANADA sells the BONDS to the privately owned banks. The privately owned banks pay for the bonds by creating a bank deposit of $1 billion on behalf of the federal government. This means that the private banks have created a billion dollars that did not exist before. This creation cost the private banks nothing except the cost of cancelling out the government cheques as the government spends the deposit by writing cheques against it.

What are the results of this fantastic transaction? Well, $1 billion in government bills are paid all right, but the Government has now indebted the people to the bankers for $1 billion on which the people must pay interest! The private banks now own the billion dollars worth of bonds and at a rate 10% the FEDERAL GOVERNMENT TAXES THE PEOPLE OF CANADA year after year to pay the interest.

By 1992, the federal government had piled up a mountainous debt of  $429,618,000,000 and the interest due on this debt was  $42,500,000,000 yearly or a per capita interest debt of  $1,652. This means a family of four is taxed $6,608 a year just to pay the interest.

Most of the income taxes that we pay as individuals now goes straight into the hands of the bankers, just to pay off the interest alone, with no hope of ever paying off the principle. Our children will be forced into servitude.