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an international currency.' It went on to state: 'Great Britain and the United States hare viewed with anxiety the tendency of most nations, including themselves, to do without gold in every day exchange.' The article ended with: 'It is believed that the conversations between the American and British Treasuries have as their object the finding of some means to combat Nazi "work standard” theories which threaten the accepted gold standard Economies of the democracies.'

“Fourth (July 20): An article headed Britain and United States Map Postwar Economic Plan' began by stating: 'Great Britain and the United States have discussed blueprints for a post war world that would be free of the present straightjacket controls on money and credit.' It went on to state: “The new economic horizons were painted in secret conversations between Morgenthau and Sir Frederick Phillips. The talks lasted all week. with President Roosevelt participating at one point. The article ended by stating: The problem of retaining gold as a standard of currency after the war was covered as an incidental to the other conversations, with the understanding that both nations favored continued use of the metal.'

“That was before we were in the war.

"And then, after we had been in the war some time, we heard of the famous (or infamous) Bretton Woods Conference, which was held in secret, and chairmaned by Morgenthau. And then followed the equally secret Dumbarton Oaks Conference. Later on we read that Bernard M. Baruch, a month before the San Francisco meeting, had personally visited not only Roosevelt but Churchill and Stalin. And finally the Charter of the United Nations was brought forth, the most significant thing about which was that neither the word 'moner. nor the word ‘bank' appears in it even once. It should not have been omitted, since money is to the business world as blood is to the human body: there should be enough of it, it should be of the right kind, and should circulate properly. This paper contends that money should not be based on gold or on 'credit' debt, because that means always there is an inadequate amount of money in circulation to properly take care of all the needs of all the people all the time, or even part of the time.

“Another fact, an historical one, and one it is contended is of paramount importance to any inquiry as to why the United Nations does not function better than it has, is that the issuance of one kind of money by the united Thirteen Colonies, instead of 13 separate kinds, was absolutely necessary to enable our United States to start to function properly. Similarly, what this old world needs now, more than anything else, is one uniform world currency, to be issued by a duly elected and democratically controlled federal world government, to enable that government to function as it should and as all the people of the worldexcept the beneficiaries of the present false gold standard and debt ('credit') standard—want it to function."

In his now famous book, The Anatomy of Peace, Emory Reeves states, and I believe correctly: "The complicated machinery of world economy, world-wide use of raw materials, distribution on the world markets, demands a stable standard of exchange that only a single world currency can provide." Taking this statement at its face value we should each ask ourselves-and ke on asking until we think we have the answer—as to what that currency should be, in order to then proceed to advocate its adoption and thus head off war by instituting that kind of currency which would provide the three-legged support for an efficient world organization to furnish universal peace, with economic justice and individual freedom for every human being.

I would like to submit here (as exhibit B) a copy of my proposed new kind of world currency as given to the reporter of the Washington Sunday Star, and about which he wrote in his paper on April 25 : "He handed the reporter a printed copy of his dollar, which defeats unearned increment because it can be obtained only for an hour's work or for goods that took an hour to produce." It reads as follows: (1) This certificate for one hour's service rendered—being part of a (1)

universally uniform system of providing legal tender to enable all ablebodied self-respecting human beings to render to society an equivalent service to that which they accept from society-is

ISSUED BY THE UNITED NATIONS

in order to pay for the services and goods it receives from individuals and from nations and to provide allowances for the aged and otherwise handicapped and for the support and education of youth.

THIS ONE HOUR BILL

is redeemed each time it is parted with in payment for either one hour's service or for goods costing one hour to produce and distribute, until its final withdrawal from circulation by its being paid to the United Nations or any subdivision thereof as taxes for the continuous operation of governmental activities.

(Signed) JOHN DOE, (1) No. A71594154

Comptroller of Currency, etc. (1) I would like to present one more exhibit (marked “C”), which is an article from a previous issue of Action for Human Welfare, entitled: "To All Advocates of World Government," which reads:

“Although it would seem that we who were at Asheville, N. C., in February 1947 have dallied too long and have failed to organize ourselves in time to head off the drift toward another world war and the destruction of civilization, nevertheless, as there is still a brief time left for us to keep on trying, let us redouble our efforts and at the same time no longer refuse to face the facts, viz:

"1. All who serve society—or are willing but unable to do so—are entitled to exercise their right to life, liberty, and the pursuit of happiness without fear of depression and war. That is why we want world government.

"2. Although the end of depression and war (a new era of peace and prosperity) is almost within our reach-with atomic energy used for the welfare, not destruction, of humanity—it cannot be realized unless it is based on economic justice to all.

3. Depressions are planned money shortages, creating needless poverty in the midst of potential plenty, with wars the outcome of needless trade rivalries for 'competitive foreign markets. Both of these related needless evil things continue because the modern international money changers, through their control of the press, radio, movies, and political parties—purposely misinform and confuse the public upon the subject of what money should be and do.

"4. Just as it was necessary for our Thirteen Colonies to relinquish their up-to-that-time assumed and unchallenged sovereign rights each to issue their separate local currencies before they could successfully form an operating Federal Government here, so in like manner it is now absolutely necessary for the various nations of the world to be willing to relinquish their hitherto unchallenged sovereign rights each to issue their respective national currencies, in favor of a universally uniform currency system, which must not be based on gold or on debt (called 'credit), but on the labor-time involved in the rendering of service to society, through the production of the various goods and servics that make for human happiness, for the use of all instead of for the profit of a few.

"Therefore you and I, fellow world citizens, and the other conscious victims of these twin evils of war and depression everywhere, should make it our business to learn, without delay, the whole truth about money, in order to act intelligently, as voters, and support only those candidates for office who plan to head off war by providing economic security for every human being, through (a) full employment, (6) adequate incomes, and (c) properly priced goods and services. Only those of us properly informed about the purpose and possibilities of a correct kind of universal currency can succeed in overthrowing the money changers and establishing 'peace on earth among men of good will' in a democratic federal world government."

To summarize briefly, may I say that it appears to me that, as self-preservation is the first law of nature, in obedience to that law you and I can no longer delay in our making of a choice between being bombed out of existence, due to limiting ourselves to national citizenship only, and voluntarily accepting individual world citizenship status, with our duty then to proceed to agitate, educate, and organize for a democratically elected federal world government–by all the people partici

pating on a basis of proportional representation. That federal world government should maintain an international antiwar police force, composed of individual volunteers from any and all lands (not quota forces from nations as such) just as the United States Government now hires its employees, in and out of the Army, regardless of in which State of the Union they happened to be born.

That federal world government should control all natural resources, for the good of all, by means of a just universal pricing system and a new money medium for the just exchange of goods and services by and between individuals as producing world citizens and as consuming world citizens.

By the international antiwar police force and the control of all natural resources, by a planetary government, there would be established that social and economic justice that alone can remove the cause of exploitation and of war.

(Whereupon, at 12:10 p. m., the committee adjourned, to reconvene Wednesday, May 5, 1948, at 10 a. m.)

STRUCTURE OF THE UNITED NATIONS AND THE RELATIONS OF THE UNITED STATES TO THE UNITED NATIONS

WEDNESDAY, MAY 5, 1948

HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,

Washington, D. C. The committee convened at 10 a. m., in the caucus room, House Office Building, Hon. Charles A. Eaton (chairman) presiding.

Chairman Eaton. The committee will be in order. We have with us this morning the distinguished Secretary of State who will now make a statement.

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STATEMENT OF HON. GEORGE C. MARSHALL, SECRETARY OF

STATE

Secretary MARSHALL. Mr. Chairman, gentlemen, I will outline for the committee the views of the State Department with respect to the structure of the United Nations and the relationship of this Government to the United Nations. I will try to place in perspective the steps which this Government has taken, and the proposals now before the committee, on this subject.

The interest shown by the great majority of Americans in the United Nations and in increasing its effectiveness is an impressive fact. A vast amount of thought is being devoted throughout our country to means of furthering the objectives of the Charter in the prevailing world circumstances. The attitude of the United States toward the problems of the United Nations will have a profound effect on the future of the organization.

A clear understanding of the international situation is essential to decisions on the course we should pursue. Neither the United Nations nor any other form of world organization can exist as an abstraction without relation to the realities of a given world situation.

The United Nations was conceived on the assumption that certain conditions would develop following the war.

These were: 1. That the major powers charged with responsibility for working out peace settlements would complete their task promptly and effectively;

2. That the critical postwar conditions in the economic and political fields would be brought to an end as speedily as possible; and

3. That the cooperation among the great powers pledged during the war and reflected in the Charter would be continuing.

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The United Nations was specifically designed to preserve the peace and not to make the peace. The task of making the peace settlements was specifically recognized by article 107 of the Charter as one for the responsible victor powers. The United Nations can assist in this task, but the improvement of the United Nations machinery would not in itself solve the problem. Since the most important of the peace settlements, have not been agreed upon, the United Nations has been compelled to carry on its activities under world conditions far different from those contemplated by the Charter.

It was obvious to the framers of the Charter of the United Nations that an effective

organization to preserve the peace must include every major power. The San Francisco Conference created an organization, the purpose and principles of which corresponded with the objectives of the United States foreign policy.

Mr. Chairman, I would like to read into the record a statement of the purposes and principles of the United Nations. They are (reading]

1. To maintain international peace and security, and to that end: To take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of peace, and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace;

2. To develop friendly relations among nations based on the respect for the principle of equal rights and self-determination of peoples and to take other appropriate measures to strengthen universal peace;

3. To achieve international cooperation in solving international problems of an economic, social, cultural, or humanitarian character, and in promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion; and

4. To be a center for harmonizing the actions of nations in the attainment of these common ends.

The organization as developed at San Francisco received the overwhelming endorsement of the American people and had the virtually unanimous approval of the United States Senate.

This organization was designed to consolidate and strengthen over a long period of time the foundations of peace through common action in solving political, economic, social, cultural, and health problems. Machinery was established for the settlement of international disputes by peaceful means so that the advice and assistance of all members, and the mobilization of world public opinion, might be brought to bear in the pacific settlement of disputes. It was found possible to go considerably further than the League of Nations in the establishment of enforcement machinery, but at the San Francisco Conference none of the major powers was prepared to grant to this organization the right of enforcement against a major power.

When universal agreement to the Charter was achieved, the strength of the major powers in relation to one another was such that no one 1 of them could safely break the peace if the others stood united in defense of the Charter. Under existing world circumstances the maintenance of a comparable power relationship is fundamental to world security.

The aspirations of the people of the world as set forth in the Charter of the United Nations have been shaken by developments since the summer of 1945. It gradually became apparent that the

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