Essential point in a position of banks, which is grasped by so few people, is that their assets are not represented by anything actual at all, but are represented by the difference between a society functioning under centralized and restricted credit and a free society unfettered by financial restrictions.
The principles which must govern any reform of the financial system are:
1. Cash credits of the population of any country shall at any moment be collectively equal to the collective cash prices for consumable goods for sale in that country, and such cash credits shall be cancelled on the purchase of goods for consumption.
2. That the credits required to finance production shall be supplied , not from savings, but be new credits relating to new production.
3. That the distribution of cash credits to individuals shall progressively displace wage and salary.