Edition Bobbett1. Texts by Elizabeth F. Bobbett: 1.1.3. Correspondence, Letters to newspapers

1945 Elizabeth Bobbett: Letter to the Peoples Newspaper, 06.06.1945

Source: Manuscript in: Archives of Rural History (ARH), Georgina Morrissey Papers

Dear Sir. Your Special Correspondent writing in your issue of 12th May under the heading The Budget Review, strikes a very important point which affects each one of the population, vis, when he refers to the Minister for Finance’s revelation that the Gross National Debt now exceeds 93 million pounds, and the Gross Local Debt 37 ½ million pounds.

Your Correspondent states “that the public as taxpayers and ratepayers are now probably paying something in the region of 7 million pounds a year in interest charges alone on those combined debt.”

Further on in the article, your correspondent draws attention to the Minister’s statement “that while there was a very big increase in the nominal value of agricultural produce, actually the volume of agricultural output – which is the real test – has fallen by eleven percent since the war began.”

This is proof enough that agriculture was not paying, for surely we farmers if we were making fair profits would have increased production but your correspondent is so biased in consideration of the Urban taxpayer that further he states: “The income tax payer now contributes some £13,000,000 a year, this figure is more remarkable when it is born in mind that those engaged in the countries main industry, agriculture, the only industry in any fair state of prosperity for years past, admittedly contribute practically nothing to the State in the way of income tax – it is almost entirely an urban contribution.”

Now it is admitted by most people (even in high offices) that the Farmers are the largest section of ratepayers in the country, and indeed the largest taxpayers. The farmer is the one person who cannot pass on the hidden taxation, but all other sections can and do pass on the hidden taxation to the farmer.

It is obvious then, that the farmer shouldering such a huge burden of taxation has been forced out of production.

As the Nation depends on Agriculture its main industry, let us examine the position and see if there is a way to relieve the situation.

It is very opportune in view of the Local Elections where the people who are elected can guide on the right or wrong lines.

National Debt is only National Credit inverted. Has the National Credit of this Country ever been estimated?

National Debt is the amount of Financial Credits created by the banks on the Real Credit of the people of Ireland and on which we pay interest to the banks.

Now the Local Debt of 37 ½ millions is the Financial Credit borrowed by the various Urban and Co. Councils from the Banks at interest, the security for the loan being the “Real Credit” of the people of the respective Urban and Co. Councils.

A very considerable portion of the Rates went in paying Annual Loan Charges in the form of interest to the Banks on the creation of money based on the “real credit” of the public.

The people should ask themselves if their “real credit” belonged to the Banks. If not, how could the financial credit be accounted in the books of the Banks as belonging to the Banks?

It was in this accountancy system that the wrong to the ratepayers lay. According to the Bank of England Charter “the Bank hath power to invent money out of nothing and shall have profit thereon.”

All Banks did exactly the same thing, and the power to create money out of nothing was a normal procedure by Banks in granting loans and overdrafts.

Why should the Banks which are private companies have such control over the credit of the people to make profit for themselves?

The National Credit should be used for the benefit of the Nation and not as at present for the benefit of private institutions. Therefore with regard to Local Loans and how to reduce the rates both Urban and Rural, while at the same time maintaining our public services all ratepayers should adopt the following resolution.

“That we demand lower rates and assessments with no decrease in public services. As a first step we demand that all bank loans be converted into non-interest bearing loans.”

We must get the people to understand that they can’t expect all the amenities of 1945 while working under an 1844 Financial system.

Yours faithfully

Elizabeth F. Bobbett

Springfield, Kilbride, Wicklow