Protocol 21. Loans and Credit

  1. To what I reported to you at the last meeting I shall now add a detailed explanation of internal loans. Of foreign loans I shall say nothing more, because they have fed us with national moneys of the GOYIM, but for our State there will be no foreigners, that is, nothing external.

  2. We have taken advantage of the venality of administrators and slackness of rulers to get our moneys twice, thrice and more times over, by lending to the GOY governments moneys which were not at all needed by the States. Could anyone do the like in regard to us? .... Therefore, I shall only deal with the details of internal loans.

  3. States announce that such a loan is to be concluded and open subscriptions for their own bills of exchange, that is, for their interest-bearing paper. That they may be within the reach of all the price is determined at from a hundred to a thousand; and a discount is made for the earliest subscribers.

    Next day by artificial means the price of them goes up, the alleged reason being that everyone is rushing to buy them. In a few days the treasury safes are as they say overflowing and there's more money than they can do with. The subscription, it is alleged, covers many times over the issue total of the loan; in this lies the whole stage effect - look you, they say, what confidence is shown in the government's bills of exchange.

  4. But when the comedy is played out there emerges the fact that a debit and an exceedingly burdensome debit has been created. For the payment of interest it becomes necessary to have recourse to new loans, which do not swallow up but only add to the capital debt.

    And when this credit is exhausted it becomes necessary by new taxes to cover, not the loan, BUT ONLY THE INTEREST ON IT. These taxes are a debit employed to cover a debit ....

  5. Later comes the time for conversions, but they diminish the payment of interest without covering the debt, and besides they cannot be made without the consent of the lenders; on announcing a conversion a proposal is made to return the money to those who are not willing to convert their paper.

    If everybody expressed his unwillingness and demanded his money back, the government would be hooked on their own files and would be found insolvent and unable to pay the proposed sums.

    By good luck the subjects of the GOY governments, knowing nothing about financial affairs, have always preferred losses on exchange and diminution of interest to the risk of new investments of their moneys, and have thereby many a time enabled these governments to throw off their shoulders a debit of several millions.

  6. Nowadays, with external loans, these tricks cannot be played by the GOYIM for they know that we shall demand all our moneys back.

  7. In this way in acknowledged bankruptcy will best prove to the various countries the absence of any means between the interest of the peoples and of those who rule them.

  8. I beg you to concentrate your particular attention upon this point and upon the following: nowadays all internal loans are consolidated by so-called flying loans, that is, such as have terms of payment more or less near.

    These debts consist of moneys paid into the savings banks and reserve funds. If left for long at the disposition of a government these funds evaporate in the payment of interest on foreign loans, and are placed by the deposit of equivalent amount of RENTS.

  9. And these last it is which patch up all the leaks in the State treasuries of the GOYIM.

  10. When we ascend the throne of the world all these financial and similar shifts, as being not in accord with our interests, will be swept away so as not to leave a trace, as also will be destroyed all money markets, since we shall not allow the prestige of our power to be shaken by fluctuations of prices set upon our values, which we shall announce by law at the price which represents their full worth without any possibility of lowering or raising. (Raising gives the pretext for lowering, which indeed was where we made a beginning in relation to the values of the GOYIM.)

  11. We shall replace the money markets by grandiose government credit institutions, the object of which will be to fix the price of industrial values in accordance with government views.

    These institutions will be in a position to fling upon the market five hundred millions of industrial paper in one day, or to buy up for the same amount. In this way all industrial undertakings will come into dependence upon us. You may imagine for yourselves what immense power we shall thereby secure for ourselves.