- Today we’ll talk about the financial
program. I’ve put this off to the end of my report
as being the most difficult, but also the most important and decisive
point of our plans.
Before starting on it, I will remind you that I have already spoken
about it earlier by way of a hint when I said that the sum total of our
actions is settled by financial issues, particularly, the question of
large amounts of money.
- When we come into our kingdom our autocratic government
will avoid over-taxing the people. It will do this for
reasons of self-preservation because it sensibly remembers that it
plays the part of father and protector.
But running a State organization is very expensive so it is still
necessary to obtain the funds required for it. It will
therefore enter into elaborate and open discussions on how to find the
right balance on questions of taxation.
- Our rule of power, in which the king will enjoy the legal
fiction that everything in his State belongs to him (and this may
easily be translated into fact), will be enabled to resort to the
lawful confiscation of all amounts of wealth of every kind for the use
of, and circulation within, the State.
From this we conclude that the best kind of taxation will be a
progressive tax on property. In this manner the tax will be
paid without overly stressing or ruining anybody because it will be a
percentage of the value of their property.
The rich must be aware that it is their duty to place part of their
superfluous wealth at the disposal of the State since the State
guarantees them security of possession of the remainder of their
property and the right of honest gains. I say
‘honest’ because our determination over
who-owns-what will do away with the need for robbery in the
standard legal sense.
- This social reform must come from the government because
time is ripe for it – it is necessary as a pledge of peace
from the government to the people.
- Taxing poor people works to the detriment
of the State, firstly because it pushes them toward revolt, and
secondly because it wastes energy in pursuing tiny amounts instead of
Quite apart from this, a tax on capitalists can be used to diminish the
growth of wealth in private hands. Lately we have been
concentrating wealth into private hands as a way of taking it away from
the Goyim government. This reduces their strength because
that strength comes from their State finances.
- A tax which increases as a percentage ratio on capital
will give a much larger revenue than the present individual or property
tax. The present tax structure is useful to us now for the
sole reason that it stirs up trouble and discontent among the different
classes of the Goyim.
- The amount of power that our king has will depend on the
equilibrium and the guarantee of peace. For the sake of these
things it is necessary that the capitalists should give up a portion of
their incomes so that the machinery of the State works
securely. The State’s requirements must be paid by
those who will not feel the burden and who have enough money that they
can afford to have it taken from them.
- Such a measure will end the hatred of the poor man for the
rich. The poor will now see the rich as a necessary financial
support for the State and the organizer of peace and well-being, since
the poor man will see that it is the rich man who is providing the
necessary means to attain these ends.
- In order that taxpayers from the educated classes
don’t get too distressed over the new payments they will be
provided with full details of where the money is going; with the
exception of the money that is required for the needs of our king and
the institutions which support the administration of those needs.
- The king will not have any properties of his own because
the sum of all properties in the State represents his inherited
kingdom-estate. If the king were said to have ownership of a
specific property, this would contradict his ownership of all other
properties, and thus destroy his right to the ownership of those
- Relatives of the king – with the exception of
his heirs who will be maintained by the resources of the state
– must work for their livelihood and to obtain the rights to
property. The privilege of royal blood must not be used to
drain the treasury.
- Receipt of money from purchases or inheritance will be
subject to the payment of a progressive stamp tax. Any
transfer of money or other property (which will be strictly registered
by names) that is done without evidence of payment of this tax will
render the former owner liable to pay interest on the tax, from the
moment of transfer of these sums, up to the date of discovery of his
evasion of declaration of the transfer.
Transfer documents must be presented within a week at the local
treasury office with notifications of the given name, surname and
permanent place of residence of the former and the new owner of the
This transfer document must include a definite sale-price amount, which
exceeds the ordinary necessary expenses of buying and selling, and this
will be subject to payment of a stamp duty based on a fixed percentage
- Think about how taxes like these will cover the revenue
of the Goyim States, many times over.
- The State Treasury will be required to
keep a certain amount of money in reserve, and anything that is
collected in excess of that amount must be returned into
circulation. This will be done by spending that excess on
public works projects.
- This type of spending will bind the working class firmly to the
interests of the State and to those who reign. Some money
will also be set aside as rewards for inventiveness and productivity.
On no account should any more than the required reserve
be kept in State Treasuries. Money exists to be circulated,
and any kind of stagnation of money works against the best interests of
the State machinery. Money is the lubricant of this machinery
and a stagnation of the lubricant may stop the regular working of the
- Using currency to purchase interest-bearing paper
(bonds), instead of spending it, has produced this kind of stagnation
exactly. The consequences of this circumstance are already
- A chart of accounts will also be established by us, and
in it the ruler will find the full accounting of State income and
expenditure at any moment. That is with the exception of the
current monthly account, which will not have been done yet, and that of
the preceding month, which may not yet have been delivered.
- The one and only person who will have no interest in
robbing the State is its owner – the ruler. This is
why his personal control will remove the possibility of extravagant
spending by others.
- The ceremonial duties of the ruler, such as being present
at formal receptions for the sake of etiquette, absorb so much of his
valuable time and will be abolished so that the ruler may have time for
control and consideration. His power will not then be split
up into fractional parts among the time-consuming political celebrities
who surround the throne for its pomp and splendor, and who are only
interested in themselves and not in the common interests of the State.
- Economic crises have been produced by us for the Goyim by
no other means than the withdrawal of money from circulation.
Huge sums of capital have stagnated by withdrawing money from States,
which were constantly obliged to apply to those same stagnant capitals
toward the payment of loans.
These loans burdened the finances of the State with the payment of
interest and made them the bonded slaves of these capitals...
The concentration of money invested in industry in the hands of
capitalists, who have taken that money out of the hands of small
investors, has drained away all the juices of the peoples and also the
States alongside them...
- The current supply and issuance of money in general does
not correspond with the requirements per head, and therefore cannot
satisfy all the needs of the workers.
The available supply of money ought to correspond with the growth of
population and therefore children also must absolutely be counted as
consumers of currency from the day of their birth. The
subject of money supply is a material question for the whole world.
- You are
aware that the Gold Standard has been the ruin of the states which
adopted it, because it has not been able to satisfy the demands for
money, especially as we have removed gold from circulation as far as
- For us, the currency-standard which must
introduced is the cost of working-man power, whether it is represented
paper or in wood. We shall issue money in accordance with the
normal requirements of each subject, adding to the quantity with every
birth and subtracting with every death.
- The accounts will be managed by each department (such as
the French administrative division), and each circle of staff within
- In order that there may be no delays in the paying out of
money for State needs, the amount and terms of such payments will be
fixed by decree of the ruler. This will do away with the
protection by a ministry of one institution to the detriment of others.
- The budgets of income and expenditure will be developed
side by side so that they may not be obscured by the distances between
- The reforms proposed by us in the financial institutions
and principles of the Goyim will be disguised in such a way that they
won’t alarm anybody. We shall point out that these
reforms are necessary as a result of the disorderly darkness which the
Goyim have plunged the finances into as a result of their accounting
The first irregularity, as we shall point out, consists of their
drawing up of a single annual budget which grows year after year owing
to the following cause: this budget is consumed within half
the year; they then demand a budget to put things right, and they use
this up in three months, after which they ask for a supplementary
budget. All this ends with a liquidation budget.
But, as the budget of the following year is drawn up in accordance with
the sum total of the previous year’s budgets, the annual
departure from the normal reaches as much as 50 per cent in a year, and
so the annual budget is trebled in ten years.
Thanks to such methods allowed by the carelessness of the Goy States,
their treasuries are empty. The period of borrowing which
follows has swallowed up what remains, and brought all the Goy States
- You understand perfectly well that economic arrangements
of this kind, which we have suggested to the Goyim, cannot be carried
on by us.
- Every kind of loan demonstrates a weakness in the State
and a lack of understanding of the rights of the State. Loans
hang like a sword of Damocles over the heads of rulers who, instead of
taking the desired amount from their subjects by way of a temporary
tax, come begging with outstretched palms to our bankers.
Foreign loans are leeches and there is no possibility of removing them
from the body of the State until they fall off of themselves or the
State flings them off. But the Goy States do not tear them
off; they go on in persisting in putting more on to themselves so that
they must inevitably perish, drained by voluntary
- What substance makes up a loan, especially
a foreign loan? A loan is defined as: an issue of government
bills of exchange containing a percentage obligation based on the sum
of the loan capital. For example, if the loan bears a charge
of 5 per cent, then in twenty years the State vainly pays away a sum
equal to the loan borrowed – just as interest; in forty years
it is paying double that amount; in sixty – treble: and all
the while the capital (principle) portion of the debt remains unpaid.
- From this calculation it is obvious that, with any form
of taxation per head, the State is baling out the last pennies of the
poor taxpayers in order to settle accounts with wealthy
foreigners. The State has borrowed money from these
foreigners instead of collecting those pennies for its own needs from
the taxpayers without the additional interest.
- So long as loans were internal the Goyim only shuffled
their money from the pockets of the poor to those of the
rich. But when we changed the system in order to transfer
loans into the external sphere, all the wealth of States flowed into
our cash-boxes and the Goyim became our subjects.
- If counties have accumulated enormous debts that are
impossible to repay, it is not just because Goy kings have been
careless in the way that they handle corruption of their ministers, or
that they lack an understanding in financial matters, but it is also
due to our actions which have required much trouble and great expense
on our part.
- Stagnation of money will not be allowed by us and
therefore there will be no State interest-bearing bonds, except a
one-percent series. So there will be no payment of
leeches that suck all the strength out of the State.
The right to issue interest-bearing bonds will be given exclusively to
industrial companies who have no difficulty in paying interest out of
their profits. Whereas the State does not make profits on
money like these companies, for the State borrows to spend and not to
use in operations.
- Industrial bonds will also be bought by the
government. This will transform those industries into lenders
of money at profit.
This measure will stop the stagnation of money, parasitic profits and
idleness. These things were useful for us when we were among
the independent Goyim, but are not desirable under our own rule.
- It should now be quite obvious that the brainpower of the
Goyim is undeveloped, based on the fact that they have been borrowing
from us and paying interest without ever thinking that the same amount
of money plus the interest must be taken from their own State pockets
in order to settle up with us. What could have been simpler
than to take the money they wanted from their own people?
- But it is a proof of the genius of our chosen mind that
we have cleverly planned to present the matter of loans to them in such
a manner that they have even seen them as an advantage for themselves.
- Our accounts, which we shall present when the time comes,
and which are
based on the experience gained by centuries of experiments made by us
on the Goy States, will be distinguished by clearness and definiteness
and will show to everyone at a glance the advantage of our
innovations. They will put an end to those abuses to which we
owe our mastery over the Goyim, but which cannot be allowed in our
- We shall set up our system of accounting in such a way
that neither the ruler nor the most insignificant public servant will
be in a position to divert even the smallest sum from its destination
without detection, or to direct it in another manner that is contrary
to our fixed and definite plan of action.
- And without a definite plan it is impossible to
rule. Marching along an undetermined road and with
undetermined resources brings a nation to ruin by the way of heroes and
- The Goy rulers, whom we once upon a time advised should
avoid their ceremonial duties of being a representative at State
receptions, observances of etiquette and entertainments, were only
smokescreens covering for our rule.
The favorite courtiers who replaced the rulers in the sphere of
ceremonial affairs were placed there by our agents, and every time gave
satisfaction to short-sighted minds by promises that future economics
and improvements were foreseen... Economics from
what? From new taxes? These are questions that
might have been, but were not, asked by those who read our accounts and
- You know what shape they are in due to this carelessness
and to what degree of financial disorder they have arrived –
putting aside the astonishingly successful industries of their peoples.