History reveals that man was forbidden to practice usury. At one time the death penalty was provided for this offence. Would it not seem that much of the world's present turbulence and poverty amidst plenty is due to the disregard of this interdiction?
Usury and interest are synonymous and there is a difference between legitimate profits and usury, which is profit acquired solely by manipulation of money unaccompanied by productive effort.
Our Constitution (the British North America Act) gives to parliament exclusive legislative authority over banks, banking, interest, currency, etc. Why, then, should our governments (federal, provincial and municipal) have to borrow at interest to finance governmental works or public enterprises? It is suggested that the financing of such projects be done through the Bank of Canada by the issuance of new credit without this giving the chartered banks a basis for further expansion of credit to cause inflation. It would be necessary to withdraw the new credit through taxation or other means only when there is danger of having too much money in circulation. Examples of how interest increases debt have been cited as follows:
— Boulder Dam cost $160,000,000, while interest alone has amounted to $182,000,000. Manitoba's legislative buildings cost $9,379,000 and interest alone has amounted $13,848,153 and is still accumulating.
— over one billion dollars in interest paid in 27 years on borrowed money which built and purchased the Canadian National Railways system.
— the announcement made that taxes might have been cut but on the interest of $400,000,000 on Canada's national debt.
W. B. SMITH