A Non-Political Money System
by E. C. Riegel
Copyright 1944 by E.C. Riegel
Published by Riegel, 1944, no ISBN
THE BOOK THAT MEETS THE CRISIS
THERE is a fundamental evil of which the convulsion of war is but the dramatic manifestation and of which the nations must be purged before reconstruction can begin.
THIS EVIL IS THE ECONOMIC SIN OF ISSUING MONEY WITHOUT BACKING IT.
Billions upon billions of such unbacked money units are being created by governments and injected into the money stream. This has the same effect upon the politico-economic system as water has upon the food value of milk — it thins it until it will no longer sustain the business system. Hence we are developing economic anemia which is approaching the crisis of world-wide inflation and monetary collapse.
The obvious remedy is to back money. How can this be done? The only way is for the issuer to be prepared to give value in exchange for it when tendered. To do this, a money issuing government must go into the production of goods and services, just as Russia is doing, otherwise it produces inflation and perverts business.
The so-called capitalist governments are destroying business by issuing unbacked money. The Russian government backs its money but prohibits free enterprise. Must business be destroyed by one process or other? By no means. We now have “the book that meets the crisis.”
PRIVATE ENTERPRISE MONEY is the first book to master the subject of money and thus solve the capitalist-collectivist enigma. It shows that money is necessarily perversive as a political instrument and that to escape both inflation and communization its issuance must be the exclusive prerogative of private enterprisers who can back their issues with goods and services and thus maintain a sound end stable money system and once and for all remove the threat of communization.
The whole issue between private enterprise and communism turns on the decision whether money shall issue from private enterprise or from government. The die is cast when choice is made between these alternatives. Accept the political money system (as we have up to now) and inflation must come, with collectivism the only escape. Adopt the private enterprise money system, and private enterprise and stable money must prevail.
E. C. Riegel’s pen has brought him to the present product through a trail of expository and iconoclastic books and pamphlets on politics and business, particularly in the field of credit and money.
His last two books, The Meaning of Money, published in 1936, and Dollar Doomsday, published in 1941, continued the attack upon the prevailing theories and systems. But now he becomes constructive and sets up a radically new theory that others may choose to shoot at.
This new concept is a challenge to the academic economist and a bid to the layman to enter into the practical mastery of a subject that has heretofore been enshrouded in mystery.
Society is in the twilight of a passing day. The state now undertakes to finance the economy, and, since a free economy is manifestly impossible where the state assumes the responsibility of supplying the money circulation, the politician is compelled to chose between fascism and communism. Under either choice, liberty is abolished and the people are enslaved. As the planners all over the world adopt their devices for managed economy, and ideologists and sloganziers prepare their impliments to condition the minds of men to their control plans, and the cause of human freedom seems defenseless, there falls into the hands of the people a surprise weapon that will turn the tide of battle and give the people mastery, not only over their private affairs, but, over the would-be political planners. This weapon is the people’s money power as defined in “PRIVATE ENTERPRISE MONEY.”
It will change the whole course of human events into paths of liberty, prosperity and peace.
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