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May 12, 2014

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The Dork of Cork

There is no need or demand to build houses.
Indeed we cannot afford to maintain the stuff which was already over supplied which require very considerable inputs.

many 1000s of houses are empty in cities and market towns of Ireland.

However many people do not have the purchasing power to live in houses.

The solution is simple - give people a national dividend while banning the production of bank credit which maintains a artifical scarcity of such units.
No need for a centralized solution then Micheal.

The Dork of Cork

DRAFT SOCIAL CREDIT SCHEME FOR SCOTLAND (Y1933)
(1) Obtain from existing sources, such as company balance-sheets, land registration
offices, and insurance companies, such information necessary to place a money valuation
upon the whole of the capital assets of Scotland, such as land, roads, bridges, railways,
canals, buildings, drainage and water schemes, minerals, semi-manufactured materials.
No distinction between public and private property. Replacement values to be used where
the property is in use.
Add to this the sum representing the present commercial capitalised value of the
population. Such a figure exists and varies with the actuarial expectation of life and the
plant capacity of the country, and is something like £10,000 for a citizen of the United
States at the age of twenty-five. From the grand total thus obtained a figure representing
the price value of the Scottish capital account could be obtained. (205) Financial credit to
any equivalent can be created by any agency such as a Scottish Treasury empowered by
the Scottish people.
(2) As from the initiation of this scheme, the holding of any stock, share, or bond by a
holding company or trustee will not be recognised. It is the intention that no shareholding
in any industrial undertaking shall be other than in the form of equity shares of no par
value, i.e. preference or common shares or stock. Bonded indebtedness will be recognised
for purposes of compensation where held by individuals, upon a proper investigation, but
where held by corporations will be subject to such terms of redemption as may seem
desirable.
No transfer of real estate directly between either persons or business undertakings will be
recognised. Persons or business undertakings desiring to relinquish the control of real
immovable estate will do so to the Government, which will take any necessary steps to
re-allot it to suitable applicants. No Government Department shall administer either
directly or indirectly any business, whether agricultural, productive, or distributive, other
than the administration of the financial and credit schemes, or receive payment for any
services rendered to the public, other than in bulk. (206)
THE INITIAL NATIONAL DIVIDEND
(3) For the purpose of the initial stages an arbitrary figure, such as 1per cent of the capital
sum ascertained by the methods outlined in clause (1), shall be taken, and a notice
published that every man, woman, and child of Scottish birth and approved length of
residence, with the exception mentioned in the paragraph that follows, is to be entitled to
share equally in the dividend thus obtained, which might be expected to exceed three
hundred pounds per annum per family. It will be clearly understood that no interference
with existing ownerships, so called, is involved in such a proceeding. The dividend to be
paid monthly by a draft on the Scottish Government credit, through the Post Office and
not through the banks.
Any administrative change in the organisation of the Post Office should specifically
exclude transfer of the money and postal order department and the savings bank. No
payments of the national dividend will be made except to individuals, and such payments
will not be made where the net income of the individual for personal use, from other
sources, is more than four times that receivable in respect (207) of the national dividend.
The national dividend will be tax-free in perpetuity, and will not be taken into
consideration in making any returns for taxation purposes, should such be required.
Except as herein specified this dividend will be inalienable.
"ASSISTED PRICE" FOR REGISTERED BUSINESSES
(4) Simultaneously with the publication of the foregoing notice a figure to be published
known as the discount rate, to replace the existing bank discount rate, a suitable value of
this for initial purposes being 25 per cent. It is important that the figure should not be less
than 25 per cent, and it might reasonably be higher.
(5) Simultaneously, an announcement to be published that any or all business
undertakings will be accepted for registration under an assisted price scheme. The
conditions of such registration will be that their accounts, as at present required under the
Companies Acts, should contain an additional item showing the average profit on
turnover, and that their prices shall, as far as practicable, be maintained at a figure to
include such average profit, (208) where this is agreed as equitable for the type of
business concerned (the suitable profit being, of course, largely dependent on the velocity
of turnover). Undertakings unable to show a profit after five years' operation to be struck
off the register.
HOW FREE CREDITS WOULD BE ISSUED
(6) In consideration of the foregoing, all registered businesses will be authorised to issue
with sales to ultimate consumers an account on suitable paper for use as explained in the
following clause.
(7) Payment for goods will be made in the ordinary way, either by cheque or currency.
The purchaser will lodge his receipted account for goods bought with his bank in the
same way that he now pays in cheques, and the discount percentage of the amount of
such account will be recredited to the consumer's banking account. Unregistered firms
will not be supplied with the necessary bill forms for treatment in this manner, with the
result that their prices will be 25 per cent, at least, higher than those of registered firms.
(It is obvious that the larger the discount rate can be made, the greater will be the
handicap of the non-registered firms.) (209)
The total of the sums credited by the banks to private depositors in respect of these
discounts will be reimbursed to them by a Scottish Treasury credit. The capital account
will be "depreciated" by such sums, and "appreciated" by all capital development. The
existing banks will be empowered to charge an equitable sum for the services thus
rendered.
HOURS AND WAGES
(8) The hours of Government offices will be reduced to four hours per day. To meet the
temporary congestion of work, additional staff will be employed, such staff, however,
doing identical work with the existing staff in the form of a second shift, and sharing with
the existing staff the chances of promotion irrespective of seniority. (The object of this is
to discourage the well-known bureaucratic tendency to enhance the importance of
existing staffs by employing additional numbers of persons ranking by virtue of seniority
below the original officials, and, at the same time, to afford an opportunity of appointing
a duplicate set of officials to check reaction without dislocation of existing routine.)
(9) Wage rates in all organised industries (210) will be reduced by 25 per cent where such
reduction does not involve a loss to the wage-earner exceeding 20 per cent of the sums
received in the form of national dividend. The wage rates ruling in 1928 to be taken as
the basis against which the reduction would be made.
Any trade union violating a wage agreement to render its membership liable to
suspension of national dividend, and any employers' organisation committing a similar
offence, to be liable to suspension of price assistance or wage reduction.
MUST ACCEPT EMPLOYMENT, OR--
For a period of five years after the initiation of this scheme, failure on the part of any
individual to accept employment in whatever trade, business, or vocation he was
classified in the last census, under conditions recognised as suitable to that employment
(unless exempted on a medical certificate), will render such individual liable to
suspension of benefit in respect of the national dividend.
(10) Taxation of specific articles or specific forms of property to be abolished. Any
taxation found to be necessary to take the form either of (211) a flat non-graduated
taxation of net income or a percentage ad valorem tax upon sales, or both forms of
taxation together.

CH Douglas
Y 1933.

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