3When the loan is paid back, the bank credit money will no longer exist. The bank’s books will show adecrease of deposits and liabilities of $1000 each. It also will show a profit of the amount of interest itreceived for the loan of its bank credit, or for its bookkeeping job. More than 90% of all the buying andselling in the United States is done with interest-bearing bank credit.
Cash such as coins and currency, is the most acceptable medium of exchange.
means made in good faith, without fraud or deceit. A document or written statement is bonafide when the person is honest when he writes it. That is to say, he is telling the truth in his document.
In this book the term
means either a certificate of credit or a tax credit certificate, or both.
CERTIFICATE OF CREDIT
When the possessor of goods or services writes out a certificate of credit stating someone has credit for acertain amount of his goods or services, it means that that someone has a claim for that amount of thosegoods or services; that is, those goods or services will be given to the bearer of that certificate in themanner stated on that document. The certificate of credit is the physical evidence to prove that the possessor of the goods or services owes (is in debt to) the bearer for a certain amount of goods and/or services.
TAX CREDIT CERTIFICATE
A tax credit certificate is a document issued by a governmental body, which is used by that body to payfor goods and services it needed. It is redeemed by that governmental body when it is returned as payment for taxes. In order that the tax credit certificate be bona fide, the governmental body must levya tax equal in amount to the face value of the tax credit certificate.
, in finance means a share of profit distributed to the owners of an enterprise. Theword
is made up from the word
. When the profit of a company is divided among theowners or shareholders of a company, the part given to each partner or shareholder is called a
.Such payments are not called
. In this book where the word
is used, it is never used tomean a dividend.
Honesty is the virtue that is practiced by a
who expresses himself according to reality. A personis honest when he speaks or writes the truth.We have heard the expression that we should have “honest money” or that we should have an “honestmoney system.” It does not seem appropriate to use the word
when it is applied to anything other than a person. Only persons can be honest or dishonest; things cannot be honest or dishonest. Therefore,counterfeit money or inflationary money should not be labeled dishonest money. It should be referred toas money made or issued by a dishonest person. The same thing is true of a money system. A system isnot a person. Therefore, a system cannot be honest or dishonest. So if we have a money system that will permit some persons to acquire an unjust gain and other persons to suffer an unjust loss as a result of thenormal use of that system, we should say the system has the qualities of an enterprise established by