But it will be asked, "Where will you find the credit to do that?" and to answer this question we must reiterate the fact that money is an expedient and not an end. The world will have the material and the hands needed for a reconditioning of its life everywhere. They are all about you now crying out to be used. It is, or at any rate it has been, the function of the contemporary money-credit system to bring worker and material together and stimulate their union. That system always justified its activities on that ground, that is its claim to exist, and if it does not exist for that purpose then for what purpose does it exist and what further need is there for it? If now the financial mechanism will not work, if it confronts us with a non possumus, then clearly it resigns its function.
Then it has to get out of the way. It will declare the world has stopped when the truth will be that the City has stopped. It is the counting-house that has gone bankrupt. For a long time now an increasing number of people have been asking questions about the world counting-house, getting down at last to such fundamental questions as "What is money?" and "WHY are Banks?" It is disconcerting but stimulating to find that no lucid answer is forthcoming.
One might have imagined that long before this one of the many great bankers and financial experts in our world would have come forward with a clear and simple justification for the monetary practices of to-day. He would have shown how completely reasonable and trustworthy this money-credit system was. He would have shown what was temporarily wrong with it and how to set it working again, as the electrician does when the lights go out. He would have released us from our deepening distress about our money in the Bank, our little squirrel hoard of securities, the deflating lifebelt of property that was to assure our independence to the end. No one of that quality comes forward. There is not so much as a latter-day Bagehot. It dawns upon more and more of us that it is not a system at all and never has been a system, that it is an accumulation of conventions, usages, collateral developments and compensatory expedients, which creaks now and sways more and more and gives every sign of a complete and horrifying social collapse.
Most of us have believed up to the last moment that somewhere distributed among the banks and city offices in a sort of world counting-house, there were books of accounts, multitudinous perhaps and intricate, but ultimately proper accounts. Only now is it dawning upon comfortable decent people that the counting-house is in a desperate mess, that codes seem to have been lost, entries made wrong, additions gone astray down the column, records kept in vanishing ink.
For years there has been a great and growing literature about money. It is very various but it has one general characteristic. First there is a swift exposure of the existing system as wrong. Then there is a glib demonstration of a new system which is right. Let this be done or that be done, "let the nation own its own money", says one radio prophet earnestly, repeatedly, simply, and all will be well. These various systems of doctrine run periodicals, organise movements (with coloured shirt complete), meet, demonstrate. They disregard each other completely and contradict each other flatly. And without exception all these monetary reformers betray signs of extreme mental strain.
The secret trouble in their minds is a gnawing doubt that their own proper "plan", the panacea, is in some subtle and treacherous way likely to fail them if it is put to the test. The internal fight against this intolerable shadow betrays itself in their outer behaviour. Their letters and pamphlets, with scarcely an exception, have this much in common with the letters one gets from lunatics, that there is a continual resort to capital letters and abusive terms. They shout out at the slightest provocation or none. They are not so much shouting at the exasperating reader who remains so obstinate when they have been so clear, so clear, as at the sceptical whisper within.
Because there is no perfect money system by itself and there never can be. It is a dream like the elixir vité or perpetual motion. It is in the same order of thought.
Attention has already been drawn, in our examination of Mr Streit's proposals for Union Now, to the fact that money varies in its nature and operations with the theory of property and distribution on which society is based, that in a complete collectivism for example it becomes little more than the check handed to the worker to enable him to purchase whatever he likes from the resources of the community. Every detachment of production or enterprise from collective control (national or cosmopolitan) increases the possible functions of money and so makes a different thing of it. Thus there can be endless species of money-as many types of money as there are types and varieties of social order. Money in Soviet Russia is a different organ from money in Nazi Germany, and that again is different from French or American money. The difference can be as wide as that between lungs and swimming bladders and gills. It is not simply a quantitative difference, as so many people seem to imagine, which can be adjusted by varying the rate of exchange or any such contrivance, it goes deeper, it is a difference in quality and kind. The bare thought of that makes our business and financial people feel uncomfortable and confused and menaced, and they go on moving their bars of gold about from this vault to that, hoping almost beyond hope that no one will say anything more about it. It worked very well for a time, to go on as though money was the same thing all the world over. They will not admit how that assumption is failing to work now.
Clever people reaped a certain advantage from a more or less definite apprehension of the variable nature of money, but since one could not be a financier or business director without an underlying faith in one's right to profit by one's superior cleverness, there did not seem to be any reason for them to make a public fuss about it. They got their profits and the flats got left.
Directly we grasp this not very obscure truth that there can be, and are, different sorts of money dependent on the economic usages or system in operation, which are not really interchangeable, then it becomes plain that a collectivist world order, whose fundamental law is such a Declaration of Rights as we have sketched, will have to carry on its main, its primary operations at least with a new world money, a specially contrived money, differing in its nature from any sort of money conventions that have hitherto served human needs. It will be issued against the total purchasable output of the community in return for the workers' services to the community. There will be no more reason for going to the City for a loan than for going to the oracle at Delphi for advice about it.
In the phase of social stress and emergency socialisation into which we are certainly passing, such a new money may begin to appear quite soon. Governments finding it impossible to resort to the tangled expedients of the financial counting-house, may take a short cut to recuperation, requisition the national resources within their reach and set their unemployed hands to work by means of these new checks. They may carry out international barter arrangements upon an increasing scale. The fact that the counting-house is in a hopeless mess because of its desperate attempts to ignore the protean nature of money, will become more manifest as it becomes less important.
The Stock Exchange and Bank credit and all the arts of loaning and usury and forestalling will certainly dwindle away together as the World Order establishes itself. If and when World Order establishes itself. They will be superseded, like egg-shells and foetal membranes. There is no reason for denouncing those who devised and worked those methods and institutions as scoundrels and villains. They did honestly according to their lights. They were a necessary part of the process of getting Homo sapiens out of his cave and down from his tree. And gold, that lovely heavy stuff, will be released from its vaults and hiding-places for the use of the artist and technician-probably at a price considerably below the present quotations.