Friday, 13 January 2017

Currency: Put your money in a bank and instantly it becomes the bank's money, not yours!

It is a long established legal fact that any money deposited into a bank instantly becomes the bank's money .

What I learned from providing the legal evidence for that fact at the meetings I have attended across Scotland is that very very few people realise that is the case. (Links to the evidence – see below).

If you are a YES supporter, (if you are reading this you probably are), please start to consider that it has an importance beyond just how you may react to that knowledge, how it affects you personally.

My hope is that you will start sharing and discussing what you know with NO supporters. Just ask them very simply whether they are 100% happy with banks owning their money – not least after the crash of 2008, and with, as one example, RBS failing their recent stress test.

Irrespective of whether we are Yes or No, do any of us want to lend our wages, our salaries, our welfare benefit, our pension to our bank – because that, in effect, is what we are doing.

Might even those who were No want an alternative, could you show them that alternative, one that is available with Scottish independence?

Because it is with independence, and probably only with independence, that we can change that legal position – so that your money always remains your money.

How do we change it? Upon independence we can establish a Scottish Central Bank in which we as individuals open an account in our name and retain full legal ownership of our money.

That does not, and will not, stop us using commercial banks, but it most certainly, and definitively, establishes who owns our money.

That sounds like theory, something that will only happen when Scotland becomes independent.

However, can I already show you a very very simple example of how that works in practice?

Yes! In this very simple example. How to show what independence provides for Scotland - now!

At each of the meetings I have attended, I have asked anyone who wishes to see a change over who owns their money to put a £1 coin in a bottle, and asked them to complete a form and sign it.

So far, I have delivered three such bottles, with the £1 coins inside, to the Parliament building at Holyrood, and have delivered them into the safe custody of the First Minister of Scotland.

Those bottles are a very simple, and deliberately very simple, example of one basic function of a future Scottish Central Bank. A place to deposit your money - and still retain ownership of your money.

The individual proof of ownership arises from the forms that have been completed and signed - they are the permanent record of who owns the money that has been deposited.

Call that stage 1 – how to start a Central Bank, and how to change the ownership of money from the banks to the individuals who worked for it and earned it.

The signing of the form goes one step further than just establish a record of who owns each £1 – it also includes a promise, a promise that is intended to be kept, because it is fully backed by that £1 coin.

That promise allows me to show you another example for an entirely different reason – an example of the change that you can create if you want to help. How to start a Scottish currency, by, of and for the people of Scotland.

Stage 2: How a new Scottish currency can be established, one which is based on what is known as “full reserve banking”, again not in theory but in day to day practice. It is based on who you trust when they make you a promise.

The next post on this blog, and the next clip on Facebook, will therefore address:

“Promises”.

the “Promises” made by the Banks.

And those that appeared in something called “The Vow”,


. The evidence:

If you wish to double check and verify for yourself the legal position, please use these links:

Carr v Carr and Davaynes v Noble : This link will take you to a short piece via the Cobden Centre:



Foley v Hill: This link will take you to Lord Cottenham, and his words: “The money placed in custody of a banker is, to all intents and purposes, the money of the banker, to do with it as he pleases ...”.

https://en.wikipedia.org/wiki/Foley_v_Hill


The Office of Fair Trading (Respondents) v Abbey. National plc & Others ( Appellants):

The Supreme Court place their decisions in the form of pdfs, so I cannot give you a direct link, therefore please go here to the Supreme Court:


Copy and paste this … The Office of Fair Trading (Respondents) v Abbey. National plc & Others ( Appellants) … into the search box and you will down load what is the full opinion from the Supreme Court in 2009. It is lengthy.

If you go to 103, you will find Lord Mance saying … “The bank might (especially under a basic banking contract which did not allow any overdraft in any circumstances) be content to operate on the basis that its profit would come solely from its power to use money which customers deposited with or arranged to have transferred to it. That power follows from the bank’s ownership of  money deposited with or transferred to it. ..”

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PS: That is from 2009, and directly relates to why the question of “bank charges” being fair or unfair remains unresolved – something (involving literally £ Bns) I will deal with that very much later.

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