Below is
the text of a letter by Islamic Party Leader David Musa Pidcock to the
Governor of
the Bank of England, Eddie George, dated 10 May 1999 and published in
Common Sense issue 28 (Spring/Summer 1999).
Letter to Eddie
George
Ref: Our
meeting at the Whitechapel Art Gallery, April 29th
Subject: Islamic Banking/Banking without
interest
Dear Mr.
George,
I was delighted
to have the opportunity of presenting you with a copy of Napoleon
& Islam, at the meeting sponsored by C.O.F (Citizen Organizing
Foundation). I hope it will prove useful in understanding the
growing attraction of Islam and Islamic banking - that is to say
ethical and interest free banking - to people like myself. People
from a European background with a Judeo-Christian upbringing, people
who have come to realize that Archbishop William Temple was
absolutely correct in pointing out, in 1942, that:
"The trend
towards war is inherent in the internal economy of the modern
nation. The essential evil in the ordering of European life has been
the inversion of the proper relations between finance, production
and consumption…"
Following all
that has happened during the intervening 57 years, with Kosovo the
latest, but perhaps not the last, in a long list of brutal genocidal
conflicts. Needless to say, his analysis is still valid and is one
that we continue to ignore at our peril.
The present
Balkan crisis can be traced directly to the high interest rate
policies of the Bundesbank in the early 1980's, which caused -
according to Economics Professor John Hotson, of the University of
Waterloo, in Canada and others equally enlightened - the mini
depression in Germany which led directly to the repatriation of
750,000 Yugoslav "Guest Workers" which, in turn, caused the classic
confrontation in which: "fear of the future became hatred of the
stranger."
It is the
dominance of an inherently unstable, unregulated, debt-based,
fractional-reserve monetary system which is at the heart of most, if
not all acts of war, genocide and the recurring evils of peacetime
such as: "the nullity of dole existence" and, amongst many others:
"starvation in the midst of abundance."
Bonaparte
clearly recognized that all these problems were related to interest,
the apotheosis of purchasing power, and the marauding rapacity of
bankers. As did many other eminent military figures. One of the less
famous military men was Lt.-Colonel J. Creagh Scott D.S.O., O.B.E.
who, in 1937, included the following in an address to the Bon-Accord
Congregational Church, in Aberdeen:-
"If a father
withholds from his children food and clothing which he either
possessed or may acquire, and allows them to suffer from the
diseases which may result from under-nutrition and neglect, he is
treated as a criminal; but when this is done on a national scale,
when millions are deprived of the food and raiment which we either
possess or can produce, and when our men are reduced to the nullity
of dole-existence, and our women to the nullity of illegal
practices, we flatter ourselves upon our moral and economic
sanity…If we were sane, we should never rest till we discovered why
consumption is never permitted to consume production; until, in
short, we finance consumption…For the ONLY effective service that
can be given is to clear the road between production and consumption
of the thieves and fools that now infest it. In the present position
of things, social service may well become a cloak to hide our moral
cowardice…"
The book,
Napoleon & Islam, is based on official French and Arab
documents, which was originally published in France in 1914, but,
unfortunately, to the best of our knowledge, was never distributed.
In the Foreword to this first English translation, I have made
mention of the fact that Napoleon clearly realized that war was (and
still is) an inevitable consequence for any society (Muslim or
Non-Muslim) which allows its economy to be driven by interest and
compound interest with the resulting economic cancer and financial
AIDS (Acquired Investment Deficiency Syndrome). Having viewed the
graph of France's National Debt (the inevitable result of
governments borrowing at interest) Napoleon remarked:
'It is amazing
that this monster interest has not devoured the whole of humanity.
It would have done so, long ago, had not bankruptcy and revolution
acted as counter poisons'.
A monster
indeed, for, no matter how small the initial rate or percentage of
interest might be, it inevitably and inexorably becomes an
exponential monster devouring everything and anything in its path,
as is evident from Britain's current National Debt. Most British
people are completely ignorant of the fact that they are still
paying interest on the loans to William of Orange; they are also
ignorant of how that original debt of £1.2 million pounds was
encouraged to persist and tumesce into the present PSBR monster of
circa: £300,000,000,000 which is currently costing them in the
region of £30,000,000,000 per-annum in interest charges - being
equal to the total expenditure on housing, education and law &
order - a monstrous imposture by any measure of economic prudence.
Speaking of which: Do you think Gordon Brown is aware of this fact?
In your letter
to Neil Jameson, dated 16 April, you state:
"On Islamic
Banking, the problem that I have always had in this area is in
understanding the precise nature of the facilities that are sought
or that institutions would wish to offer. The generic description
seems to be interpreted in different ways in different countries and
by different interested groups within this country."
This disunity
is inevitable. For the simple reason that, like your predecessor
Montagu Norman - a Eugenicist, Theosophist and, according to his
step-son Peregrine Worsthorne, an Arch-Nazi sympathizer, who,
Winston Churchill threatened to hang for treason - the 'Islamic
Experts' have also accepted, without question, the baseless,
anti-Islamic views of Thomas Robert Malthus, and latter-day
Race-Hygiene advocates such as Avrel Harriman, Fritz Thyssen, George
Bush, Henry Kissinger, et al – who claim that we live in a world of
scarcity. Proof of this brainwashing can be seen in every school
curriculum. For example, the following was the expected answer for
the Combined Humanities GCSE Economics course work 1993/94:
"There
will never be sufficient goods and services to meet everyone's needs
– because they are scarce. As a result of which we have to find some
way of rationing out what is available."
The so-called
Islamic "experts" have be brainwashed into accepting views contrary
to God's promises, in His Qur'an, to provide for whoever and
whatever He has created. They tend to forget that:
"What Allah out
of His Mercy Does bestow on mankind None can withhold: What He does
withhold, None can grant." (not even the IMF)
"Kill not your
children for fear of want: We shall Provide sustenance for them. It
is a great sin. Nor come nigh to adultery: For it is an indecent
deed And an evil way. Nor take life which Allah Has made sacred
except for just cause…Come not nigh to the orphan's property except
to improve it…" Surah17:V31/34
Other mistakes
include their uncritical acceptance of orthodox economics based, as
it is, on a lamentable series of false assumptions. Hence their
unavailing attempts to build a financial edifice worthy of the
epithet Islamic, which, by its very nature is hostile to anything
inequitable. This automatically rules out all forms of interest and
anything involving fraud which further rules out the prevailing
system of fractional reserve banking. It is for this, and other
glaring contradictions, that Muslims find it difficult to look upon
banking as a servant of the people, but rather as their master.
Under Islamic rules - which call for equity in all things – the
Statutes of Fraud Amendment Act, of 1828, is another obstacle to
establishing Islamic banking in this country. This bears out the
augury of the Prophet Muhammad, peace be upon him, who said that it
would be impossible to unite his followers in error. Though money is
not fecund, Calvin, justified charging interest for it on the basis
that if you could have rent for land, you could have rent for money.
His lethal legacy is now testing Muslim bankers, economists, and
businesspeople alike, as well as ordinary believers faced with
renting or embracing a 25 year Death-Grip or, to use its original
Norman French appellation - a Mort-Gage. Like their predecessors,
the Muslims have now started to fall for the sophistry,
blandishments and compromises which led to the ruination of
Christendom and the expulsion of the Jews from the Holy Land.
The Muslims,
Christians, and Jews, should take notice of what John Ruskin, had to
say when debating the subject of usury during the latter half of the
19th century. Following the mix up over an attack he made on the
Bishop of Manchester - not Bishop Manchester for his justification
of usury - he penned the following:
"By diocese my
Lord; not name, please observe; and for this very simple reason:
that I have already a fairly accurate knowledge of the divinity of
the old schools of Cantebury, York, and Oxford; but look to your
Lordship as the authoritative exponent of the more advanced school
of Manchester, with which I am not yet familiar…
"What do I mean
by usury? I trust your Lordship will at once acquit me of wishing to
attach any other significance to the word than that which it was
fully intended to convey on every occasion of its use by Moses, by
David by Christ, and by the Doctors of the Christian Church, down to
the 17th century…
"It is neither
justified by its defenders only in its mildness, nor condemned by
its accusers only in its severity. Usury (or its commercial
euphemism interest) in any degree is asserted by the Church to be
sinful; just as theft and adultery are asserted to be sinful, though
neither may have been accompanied with violence; and although the
theft may have been on the most splendid scale, and the fornication
of the most Courtly refinement…
"So also, in
modern days [1879], through the voice of the Bank of England in
Parliament, M.P. J.C. Hubbard [who] declares 'a loan without
interest to be a monster, and a loan made below the current rate of
interest to be a monster in its degree, [on the other hand] the
increase of dividends above the current rate is not, as far as I am
aware, shunned by shareholders with an equally religious horror?"
(On The Old Road, Vol III)
A careful,
unbiased perusal of the history of the abuse of money shows that the
600 years - which the Jews call their "Golden Period" – happened in
Spain under the Islamic Caliphate; 600 years of unprecedented peace
amongst Jews, Muslims and Christians which came to an abrupt and
bloody end with the Spanish Inquisition. The clue to understanding
the secret of this "Golden Age" (and in re-establishing one like it)
is that references to the role played by interest during that period
are conspicuous by their absence. Particularly from the most
important chronicle of that time – The Al-Muqaddimah of Ibn Khaldun.
The Muqaddimah
is the introduction to a comprehensive history of the world written
in 1377 AD, by the great Arab scholar, economist and historian Ibn
Khaldun:
"So complete is it, however, in its almost encyclopedic
detailing of the general problems in the philosophy of history and
sociology, that it has become best known as a self-contained work in
its own right. Among writings of the age, it is unique for the
breadth and freshness of its analytical insights, for it essays a
total view of mankind and the forms of social organization. As a
summing up of the achievements of historical Islam it is a work
considered to be far in advance of similar studies eventually
undertaken in Europe…"
'This
Muqaddimah' said Hugh Trevor-Roper - 'is only part of Khaldun's
great work: it is the introduction to his history of the world. But
it is by far the greatest of his works, for it contains his "new
science", his philosophy of history.' (Sunday Times)
'Ibn Khaldun',
said Arnold Toynbee,
'has succeeded in drawing conclusions which are
of living interest for us today. They have a real bearing on our
current problems, practical and theoretical. It would, indeed, be no
exageration to say that this is the most comprehensive and
illuminating analysis of how human affairs work that has been made
anywhere.' (The Observer)
Contrary to
popular belief, we are not against banks. It is our belief that if
banks did not exist we would have to invent them. However, we do
share William Pitt's view that:
"Unlimited
power is apt to corrupt the minds of those who possess it"
And the First
Baron Acton's views, like those of Napoleon, that:
"the issue
which has swept down the centuries and will have to be fought sooner
or later is the people versus the banks"
I very much
welcome your call for more dialogue on the subject of Islamic
Banking and have, amongst our list of close associates, someone who,
having worked in one of the large discount houses, has a great deal
of knowledge about the functioning of conventional banks and banking
and the way money markets operate - including the operations of
central banks. He is now a Muslim, and I believe that amongst all
those currently claiming to understand what does and does not
constitute "Halal Investment" and "Islamic Banking" that he is one
of the few that really could design a system that would meet all the
necessary requirements – secular and religious.
To attach the
term Halal or Islamic to any function or activity means that it is
designed to be pleasing to the Almighty, and, as such, is considered
to be an act of worship. As John Ruskin pointed out. To try and
devise tricky "ways round" any divine injunction - be it in the
realms of finance or otherwise – cannot, and will not, stand.
To solve the:
"recurring deficiencies of effective demand" which always lead to
war. The obvious solution to the problem is for the Treasury to
provide all the money required to satisfy the spending requirements
of all our people by extending the aggregate known as M0, at zero
interest. The following extract, is from a letter, to one of our
members, which shows that the Treasury knows well how to solve this
particular problem, if it only chose to exercise its power:
"Government
can, and does finance itself to a small extent by the issue of
non-interest bearing money: this is the aggregate known as M0, the
stock of which is currently some 19.1/2 billion. The size of the
stock of M0 is limited by the demand for this form of money…The
money that banks CREATE is either interest-bearing or renders some
sort of service that costs banks money to provide"
Thus wrote
Anthony Nelson, M.P, whilst acting as a spokesman for HM Treasury,
on the 22nd February 1993. He failed to point out that he, like
Norman Lamont, were both from N.M.Rothschild perhaps the greatest
purveyors of government debt-finance the world has ever known.
Purveyors of, in the words of Gilbert and Sullivan: "monumental
loans to foreign thrones". Between 1817 & 1845 Britain's
National Debt was cancelled and, to the best of our knowledge - The
World Did Not Come To An End. Is it not time to cancel all debts in
line with the Biblical Jubilee? Kondratiev's Curve, shows that
depressions occur every 7 years, when people and communities have
become choked with escalating debt and interest payments: confirming
the wisdom of Jubilee which calls for a cancellation of all debts
every 7th year. This is further confirmed in the Qur'an which
states:
"Those who
devour usury will not stand except as stands one whom Satan, by his
touch, has driven to madness. That is because they say: 'Trade is
like usury', But Allah has permitted trade but forbidden usury.
Those who after
receiving admonition from their Lord, desist, shall be pardoned for
the past; their case is for Allah (to judge); But those who repeat
the offence are Companions Of The Fire: they will abide therein for
ever. Allah will deprive usury of all blessing, But will give
increase For deed of charity (and justice). For He loveth not Any
ungrateful Sinner…O you who believe! Fear Allah, and give up what
remains of your demands for usury – If you are indeed believers?
If you do not
take notice of War from Allah and His Messenger. But if you repent
you shall have your capital sums: Deal not unjustly and you shall
not be dealt with unjustly. If the debtor is in difficulty, grant
him time until it is easy for him to repay. But if you remit it by
way of charity that is best for you if you did but realize"
(Qur'an. Surah: 2 Al Baqarah or The Heifer: Verses 275
- 280)
The Qur'an
tells us to: "expect war from Allah and His Messenger." It is a
promise binding on Allah: The seeds of all future wars were sown at
Versailles in 1919, and ratified in perpetuity at Bretton Woods in
1944. These wars, like all their predecessors, will be caused by the
congenital fault in our hideous monetary system - based as it is on
interest and compound interest. And nowhere better is this deadly
fault defined than in an article published by Silvio Gessell, on the
eve of the Armistice in 1918. In 'Zeitung am Mitag' a German
language newspaper he stated:-
"In spite of
the holy promises of people to banish war once and for all, in spite
of the cry of millions 'never again war' in spite of all the hopes
for a better future I have this to say: - 'If the present monetary
system based on interest and compound interest, remains in
operation, I dare to predict today that it will take less than 25
years until we have a new and even worse war. I can foresee the
coming development clearly. The present degree of technological
advancement will quickly result in a record performance of industry.
The build up of capital will be fast in spite of the enormous losses
during the war, and through the oversupply [of money] the interest
rate will be lowered [until the money speculators refuse to lower
their rates any further] Money will then be hoarded [causing
predictable deflation], economic activities will diminish and
increasing numbers of unemployed persons will roam the streets…
within these discontented masses, wild, revolutionary ideas will
arise and with it also the poisonous plant called 'Super
Nationalism' will proliferate. No country will understand the other,
and the end can only be war again."
From the
foregoing it is clear that we view the prospect of having access to
Halal (war-free) funds to be the subject of primary importance.
Furthermore, we know that what we are seeking is not only desirable
but represents a viable alternative to the existing monetary system.
It can only be objected to on the basis that it represents a
competitive challenge to the existing order which, according to John
D. Rockfeller, views any form of competition as "a mortal sin."
Looking forward
to your comments with interest, I remain
Yours sincerely,
Author: David
Pidcock |
Date Published:
Spring
1999 |
Back To Top
|