Social Credit: Economics for the Common Man

Many in the wider nationalist movement have quarrelled amongst themselves over economic matters for a long while. The economic debate remains as divisive as any other topic within our circles. Many approach economic questions from a libertarian or capitalist perspective. Others formerly of the left are still doctrinaire economic socialists who believe in central planning and 'taxing the rich'. So which is right? Free markets or state-controlled economic planning? A mixed economy?


Politicians and decision-makers are not motivated by loyalty to the people of their nation, as proven by their willingness to crush the wages of the working man. It is instead only a cynical expression of allegiance to the international finance system.

There exists a little-known third way which aims to truly break us free from this abusive system: Social Credit.

What is Social Credit?

Major Clifford Hugh Douglas

Major Clifford Hugh Douglas

Social Credit is a distributionist economic theory proposed in 1924 by C.H. Douglas, a British engineer who believed that the economy is a tool to be used in service to the people of the nation.

Systems were made for men, and not men for systems, and the interest of man which is self-development, is above all systems, whether theological, political or economic.
— C.H. Douglas

Social Credit opposes the boom-bust cycle of inflation, deflation, and depression, central to globalist international finance. Adherents of Social Credit argue that the debt finance system is parasitic, and takes from the ‘host’ nation without offering anything in return. Credit creation is now the domain of private banks who have no allegiance to nations or states.

The interest accrued on credit loaned as debt to a country sucks real money created from labour and production out of national circulation and back into the hands of money-lenders to be re-lent at interest. This sustains the procession of boom-and-bust cycles which keep us enslaved to national debt, and struggling to make a decent living. We become increasingly cut off from resources due to the insatiable demand for export goods – all thrown into the sinkhole of never-ending national debt at abusive interest rates.

As a result, our politicians sell off our national assets to satisfy their international financier friends. This is happening not only in New Zealand, but in many Western countries.

Father Charles Coughlin

Father Charles Coughlin

“Money is merely the medium of trade. It is not wealth. It is only the transportation system, as it were, by which wealth is carried from one person to another.”
— Charles Coughlin

The system of Social Credit presents a fairly simple solution to this problem. It proposes that if a private bank can create and lend credit as a profit-making tool by charging interest, then a government can create its own credit for public use, purely as a means of exchange for goods and services without incurring debt through exorbitant interest.

Currency would be created directly via the Reserve Bank and issued directly into circulation. It is in turn promptly spent back into circulation through the purchase of goods and services, creating an efficient transfer of currency without attracting inflation.

Nationalists who adopt Social Credit as a positive policy understand that no other nationalist policy can be implemented without first securing the financial and economic sovereignty of the nation state. This is achieved when the state assumes the full and sole responsibility of creating credit. If the state fails to take financial control and drive out the international bankers, any policy that helps the nationalist cause - economic or otherwise - is likely to be undermined in private boardrooms regardless of any public support it may garner.

The problem of banking, currency and credit over-rides all others, and no policy, whether on national sovereignty, immigration, race relations, housing, or law and order, can be resolved until this is first addressed. Even from the viewpoint of practical politics, with massive unemployment, and the pervasive phenomenon of debt, from the usury charged on an individual’s credit card, to the bankruptcy of an entire nation due to debt, a campaign for the ‘breaking of the bondage of debt’ has the potential to create an upsurge of popular support for the party that can simply and forcefully espouse it.
— Kerry Bolton, 'The Banking Swindle: Money Creation and the State'

Social Credit in New Zealand

The Social Credit movement gained acclaim in the Anglosphere around the 1930s and 40s, with particular popularity in Canada and the United States. The Social Credit Party was New Zealand’s third party for almost 30 years – from the 1950s until the mid-80s. Here we will examine the leading men of the movement in New Zealand.

John Campbell Begg and The New Zealand Legion

John Campbell Begg

John Campbell Begg

The first Nationalist movement to adopt Social Credit policies in New Zealand was a radical conservative group in the early 1930s called The New Zealand Legion. The Legion was formed as a reaction to great economic instability and unemployment riots. At its strongest, it boasted a membership of 20,000, comprised mostly of military veterans and a marginalized middle class.

The group’s leader, John Campbell Begg, was influenced by the ideas of C.H. Douglas and met with him twice during Douglas’s influential 1934 lecture tour. The New Zealand Legion adopted a similar uniform to the Green Shirts of England, who were avowed adherents of state credit. The Legion also adopted a Social Credit policy in its 12-point plan: ‘Control of currency by the state’. Begg strongly pushed the party towards the direction of banking reform.

As is the case with all effective nationalist movements, the Legion was attacked by both the left and the fake ‘classically liberal’ Whig right for being ‘fascist sympathizers’. Eventually the Legion was sabotaged from within and collapsed. Some former Legionaires later successfully ran in parliamentary politics as independents, and others went on to join organisations which would eventually merge to become the National Party.

John a. lee and The New Zealand Labour Party

John A. Lee

John A. Lee

The first Labour government of New Zealand was highly influenced by the ideas of C.H. Douglas, having run on a platform of nationalizing the Reserve Bank and issuing state credit. John A. Lee (also nicknamed ‘Bolshie Lee’ for his socialist leanings), a one armed war veteran, was a continuous agitator within the party who pushed for banking reform despite the resistance of Labour Party leader and Prime Minister Joseph Savage. Lee issued several pamphlets as a reminder to the Labour Party caucus to fulfil its election promises.

A planned economy will be of little use if the Government has not the power to carry its plans into effect. Such power will require the control of credit which, if it remains in private hands, can be used to thwart the will of the Government.
— John A. Lee, 'Money Power for the People'

In 1936 the Labour government implemented the Reserve Bank of New Zealand Bill, intended to reform the Reserve Bank, which was - and is - a private bank. The bill was designed to put the Reserve Bank under greater public control, with the directors being a mix of those nominated by the government and those elected by stockholders. The act stated that the board of directors would become the direct servant of the government of the day, and would be subject to removal if they deviated from the government’s wishes.

The bill also clearly stated that the function of the Reserve Bank would be ‘to regulate and control credit and currency in New Zealand, for the economic and social welfare of New Zealand’. The Labour Party did end up issuing state credit (with the aim to reduce interest paid on goods to a charge for costs only) directly to farmers to bolster the dairy industry and reduce prices for goods.

Labour also used state credit to resolve 75% of unemployment in the midst of the Great Depression through the iconic State Housing project, which saw an initial $5,000,000 of state credit issued directly from the Reserve Bank to create housing. This project created jobs and wealth that was spent directly back into circulation – invigorating New Zealand’s economy in a time of crisis.

However, despite any reforms the government made during this time, they continued to borrow money from overseas lenders, a practice which all successive governments continue to this day.

The power to create credit was - and remains – often with the international bankers regardless of whether the bank is state-run or private. That is the great con of capitalism and socialism working in tandem, and it is why states that have been run for many years by ‘socialists’, such as Greece, are indebted to the point of bankruptcy and must go about selling their assets to diminish those debts.
— Kerry Bolton, 'The Banking Swindle: Money Creation and the State'

rex fairburn’s vision

A.R.D. ‘Rex’ Fairburn

A.R.D. ‘Rex’ Fairburn

Rex Fairburn was a prominent nationalist poet in New Zealand who was opposed to finance capitalism and internationalism. Fairburn wrote the epic poem Dominion in 1938, a magnificent, sweeping piece about New Zealand - not to mention an intriguing bit of synchronicity for us in the ‘Dominion Movement’. Fairburn biographer Denys Trussell referred to the work as ‘arguably the most important political poem written in New Zealand’.

Rex Fairburn was spurned by his communist peers in the contemporary art scene for being an anti-materialist, though today the liberal establishment tries to claim him as one of their own. Fairburn drew inspiration from nationalist thinkers such as Oswald Spengler, and became an advocate for Social Credit. His view was that the system would achieve greater production and increase leisure hours, creating a climate in which culture and spirituality could once again flourish. Here is an interesting excerpt Fairburn wrote to one of his peers, while living abroad in Britain:

‘If I were in NZ I should try to induce Holland and the Labour Party to adopt the Social Credit scheme. Then, if they turned it down, I should start a racket among the young men off my own bat. A Nationalist, anti-Communist movement, with strong curbs on the rich; anti-big business: with the ultimate object of cutting NZ away from the Empire and making her self-supporting. That party will come in England hence, later in NZ. I should try and anticipate it a little, and prepare the ground. Objects: to cut out international trade as far as possible (hence, cut out war); to get out of the clutches of the League of Nations; to assert NZ’s Nationalism, and make her as far as possible a conscious and self-contained nation on her own account…

But Social Credit and Nationalism would be the main planks and the basis of the whole movement. Very reactionary, you will say. But I am quite realistic now about these things. No League of Nations, Brotherhood of Man stuff. ‘Man is neither a beast nor an angel’: but try to make him into an angel, and you will turn him into a beast, idealism is done with-over-passé-gone phut.

Behind the labels, of course, all this would be a cunning attempt to get what we are actually all after: decent living conditions, minimum of economic tyranny, goods for all, and the least possible risk of war. Our Masters, the Bankers, would find it harder to oppose such a movement than to oppose communism. And it would be more likely to obtain support.’

Fairburn understood that an organic, nationalist movement in New Zealand would have to be completely anti-materialistic and not held back by the trap of dogmatic economic pigeonholing. He recognised that Social Credit was the only way forward to taking back independence and building an organic society truly representative of the Kiwi spirit.

We are required to pick up the torch, and carry on the crusade of Douglas, Begg, Lee, and Fairburn. Banking reform must be pushed as a catalyst for any great positive change within New Zealand. We cannot and will not be able to enforce national sovereignty and rule of law while being beholden to foreign creditors.

The banking and credit creation system must be secured to the public trust. Before there is the possibility of reform in issues such as immigration or environment, we must first drive the plague of debt-slavery out from our society.

Our country, our money, our independence, our destiny.