Chapter 12. Monetary legislation.

After defining the most effective archic structure to prevent the transformation of the legitimate rule on persons and of the legitimate power on things, into an illegitimate power over and against persons, the newly constituted State may face the task it has imposed on itself: the construction of the bases of a libertarian, democratic, peaceful, informative and solidary society.

In this task the State will have two tools available, two fundamental instruments: the all-informative and all-responsibilizing cheque-invoice, and the imperialization of all the telematic, monetary network.

We shall dedicate this chapter to the most important legislation of the State, which is the legislation on the cheque-invoice.

1. Introduction of the cheque-invoice.

The monetary instrument we have called cheque-invoice has already been described in chapter 4, and in chapter 5 we have spoken about its easy adaptation to a telematic network, centralized on an imperial level. We shall then take for granted all those specifications, of a theoretical or technical character, and shall analyze their legal aspects.

Of course, the imperial State must reserve for itself any legislation on the cheque-invoice, since this is the basic and fundamental isntrument of all its political performance. Moreover, this legislation will have to be very rigid and precise, all the details will have to be foreseen and consequently legislated. In monetary matters, nothing will be left to chance, because it is the rules of the game which must be established.

The first State action will be the legal suppression of all the monetary instruments in force. It will be necessary to set a time limit for their presentation and conversion into monetary units in a current account.

Immediately after that, it will be necessary to introduce by law the exclusive utilization of the pro-telematic cheque-invoice in all market operations and in all social-monetary acts.

Probably, this breaking-off will not be made instantly and, therefore, the law will have to foresee a system of progressive transformation, so that the necessary equipment and networks be introduced. For example, it could be started in the large companies; then the small companies would follow, and finally the retail shops and industries and the consumers.

Together with the legislation for the introduction of the pro-telematic cheque invoice, it will be necessary to legislate also their application details, the allowed monetary operations, and the activities of the so-called accounting concerns, in short: banks (Business Banks and Savings Banks).

2. Types of cheque-invoice.

The law must foresee the highest and best diversification of the cheque-invoices, so that they may offer the highest and best analytic-statistic information on the market.

It is necessary, especially, that the cheque-invoices separate the different types of monetary operations, therefore, every type of operation will be dealt with in a different type of cheque-invoice.

The mercantile-monetary operations are basically divided in three large types, therefore there will be three main types of cheque-invoices:

The three above-mentioned types of cheque-invoices may then be of two different categories:

From the combination of the two classification standards six different sorts of cheque-invoice are obtained; many sub-types are possible in terms of many other standards, but we shall not detail them here, as they belong to specialists.

3. Types of current accounts and monetary operations.

The different sorts of current accounts to be opened in a bank, will also be three:

4. Imperialization of all the current accounts.

The positive balances of all the current accounts of the three types we have just described will be constitutionally imperialized, that means that they will be socialized at a globally imperial level.

In practice this just means that the banks where these current accounts will be in force, will not be able to use them to carry out their business: the positive balances of current accounts will mean a communal saving which only the geopolitical community, through its manager, the State, will be able to put to work. The banks will manage the current acccounts, but they will never be able to grant loans nor make any other operation based on the positive balances of the current accounts, which are now called outer resources.

The compensation of this imperialization will be the allocation of a communal interest, say 6%, to all the imperialized positive balances.

In the following chapter we shall further enlarge on this subject.

5. Types of accounting establishments.

We must now explain the fundamental difference, already mentioned several times, between Business Banks and Savings Banks.

This distinction is to be located in the widest context of the distinction between utilitarian society and liberal society (see chapter 10).

Business Banks and Savings Banks will be radically separated by the sort of functions and services which, according to law, they will be able to offer to the utilitarian society, and by the sort of remuneration they will receive for these services.

Business Banks will be utilitarian concerns like any other, specialized in offering accounting services to all the other, non-accounting, utilitarian companies.

But their services will be solely and exclusively limited to the production cycle. In fact, as we have already seen, in the Business Banks it will only be possible to open production current accounts (companies' accounts) and savings current accounts of multi-salaried production (for the multi-salaried utilitarian professionals). This means that they will only handle purchasing power corresponding to the production cycle, and they will never be able to handle purchasing power belonging to the consumption cycle¹⁷.

The services offered by the Business Banks will be, fundamentally, the following.

In the first place, during the management of the previously mentioned current accounts, and for this task, they will be paid by the Treasury a commission agreed between the association of Business Banks¹⁸ and the monetary authorities of the State.

In the second place, based on the cheque-invoices signed or paid by their customers, they will carry out all the accounting of all their customer-companies, and will hold it always at their immediate disposal. It must be pointed out that the multi-salaried utilitarian professionals will have to make up companies, in order to collect their multiple incomes, under the juridical form of stock companies, either individually or multi-individually: in such a way that all the Business Banks' customers will be companies by law.

In the third place, and this will be their task and their main business, the Business Banks will be able to carry on the specifically banking business of capitalization: that is, the conversion of the savings accumulated in the current accounts, into capital usable in the production cycle. In fact banks have always had among their tasks to supply the market with the purchasing power which, in every specific time-space, it needs in order to continue or to increase its productive processes. This purchasing power sold to the production cycle receives quite suitably the name of capital. Banks produce capital by means of a number of techniques and bank processes: loans, drafts discount... which, as we have seen in Chapter 2 (Part One), always imply an invention of currency on the deposits made by customers. But we have just said that imperialization of all the positive balances of current accounts prevents the Business Banks from capitalizing on these balances, outer resources. Then the Business Banks will have to limit their invention of money only to:

Finally, Business Banks will also be in charge, on appointment from the State, of the distribution of the communal loans to investment, (see chapter 14) and, for this service, they will be paid, for every loan they will grant, the normal bank interest (we point out that the communal credits to investment imply an interest double than the ordinary bank interest).

The Savings Banks, on the other hand, will also give service to the utilitarian society, but only within the consumption cycle. But since the consumption cycle is socially globalizing, that is, it includes all the members of the imperial society, we shall give the Savings Banks a liberal Statute: their services will not be paid for directly by their customers, but they will be free and financed by the community, through the corresponding social solidarity salaries and budgets (see chapter 16).

The main service of the Savings Banks is the management of the savings current accounts of uni-salaried production and of the consumption savings current accounts.

But, besides this really utilitarian service, the Savings Banks will carry out non-utilitarian social functions, directly related to the social life of each of the persons inscribed in them.

In the first place the Savings Banks -locally structured, by districts, and confederated on an imperial level-, will act as Registry Office: every new-born will be inscribed in the district Savings Bank, where immediately a consumption current account will be opened in its name, with a telematic number which will be held during the whole life, and which will identify the individual in all his social activities.

The Savings Bank will take charge of releasing, keeping and filing away all the other documents necessary in a civilized society: health card, schooling book, car documents... police or justicial filing card, working filing card, family book, passport, all of them having the same telematic number previously mentioned.

The Savings Bank will also be the seat of the family Court for the families therein recorded, and for other social and informative services, all of them completely free.

Notes:

¹⁵This distinction is made to know, at any time, how many uni-salaried persons there are in the geopolitical community, and this we want to know because one of the social goals suggested is in fact the disappearance of this category of utilitarian professionals: the uni-salaried ones. This will be possible thanks to the development of self-management, which implies the participation of the workers in the company's profits (on this subject, please see chapter 15).
¹⁶The consumption savings current accounts of utilitarian professionals will be simultaneously fed by two sorts of purchasing power, because, besides their salary-private remuneration, they receive a social solidarity salary of a general sort, as we shall see in chapter 14; on the contrary, the non-utilitarian people will have, because of the omni-solidarity principle, a consumption savings current account exclusively fed by the communal purchasing power. As we shall see in chapter 14, these people are: those without a liberal profession nor utilitarian job, for whichever reason; the families, irrespectively of the salary incomes of their members; the liberal professionals; the liberal institutions; the non-profit, free associations of citizens: all of them are simple consumers, as opposed to the utilitarian professionals who are producers-consumers.
¹⁷On the two market cycles, «the production cycle» and «the consumption cycle», see chapter 8.
¹⁸As we shall see in chapter 15, all the utilitarian companies will be compelled to join associations.