430 West Greenwood Road
Linthecum Heights, Md.

12 October, 1953

Dear Mr. Godsey;

Thank you for your letter of October 7 and your indul-
gent reply to my inquiry.

However, the tax I refer to is not a levy on bank accounts,
nor would it encourage hoarding of money. Quite the opposite.
The tax I mean is one on currency. Senator Bankhead had such
a tax proposed in 1939.

The original object of the tax was to stimulate the flow
of currency. It has since been realized that it is also a
very efficient source of government revenue, needing no buro-
cracy to collect it, and permitting no tax dodging.

The tax is a demurrage charge on currency analogous in
principle to the demurrage assessment placed on railroad cars.
The object of the two charges is the same--to keep the item
taxed in the stream of commerce, doing the job for which it was
intended.

It is perhaps the only tax that does not either create
crime or penalize some useful form of activity.

The most practical means of accounting for this tax I
know of is by use of a monthly stamp--after the first of the
month, a dollar bill must have the current penny stamp on it
in order to pass at face value. Otherwise, it moves at a
discount.

The accounting is automatic, involving no more bureaucracy
than is now required in selling postage stamps. It involves
no more bookwork than is done by placing a stamp on this letter.

Nor does it create crime, as do other taxes like sales on
liquor, which creates bootlegging (or at least, so the boot-
leggers say. i.e., no tax, no point in bootlegging). On the
contrary, this tax penalizes any form of crime dependent on
large sums of cash. The bank robber with his million dollar
swag gets taxed $10,000 every month, and there's no way he
can avoid it, save by tell-tale spending.

Such a tax discourages no useful form of activity, as
does a real estate tax or a tax on industrial equipment.

Further, it is an equitable tax in that it collects from
no one (who doesn't have 100 times the amount of the tax when-
ever it falls due).

Policy wise, a taxed currency has several things to recom-
mend it. It retains all the advantages of an inflating cur-
rency so far as stimulating commerce is concerned, but it is

not inflationary, as is depreciating money. It is, in fact,
an ANTI-inflationary tax. It withdraws money directly from
circulation and does not force prices higher by adding to man-
ufacturer's costs.

I realize that there must be many questions of practical
application which will remain unsolved until more attention
and discussion is brought to bear on this proposal. But if
Smith was right in saying that no monetary idea can be put ac-
cross in less than a geological epoch, we'd best get moving,
before the combination of wanton federal, state and local taxes
further deprives us of the title to our very pay checks.

Very truly yours,

T. D. Horton

Square Dollar Series
1419 Clifton St. N.W.
Washington 9, D.C.

25 April '56

Alice Widener
"U.S.A."
Box 134 Lemox Hill Station
New York 21, N. Y.

Dear Miss Widener:

My most intelligent correspondent calls
"this 'U.S.A.' best paper found yet." (Feb 24 issue)
Sez it otta be on all the snooze stands.
Special congratulations on ADMIRABLE articles
on UNESCO coupons. Del Mar/Crimes and
Benton sent you as notes thereon under
separate cover.

Is Schoenk aware of Douglas and Gesell?

Any ideas for pushing the Square Buck?

Best wishes,

T. D. Horton

P. A. DEL VALLE, Lt. General U.S.M.C. R'td., President EUGENE COWLES POMEROY, Vice President and Treasurer MERRITT B. CURTIS, Brig. Gen., U.S.M.C. R'td., Secy. and Gen. Counsel

Defenders of the American Constitution Inc.

OFFICIAL PUBLICATION—"TASK FORCE"

HEADQUARTERS:

1255 New Hampshire Ave., N.W.

Washington 6, D. C.

Tel.: DISTRICT 7-3275

EXECUTIVE COUNCIL

BONNER FELLEBS, Chairman
Brigadier General, USA, R'td.

L. A. ALESEN, M.D.,
Past Pres., California Medical Assn.

CLAIRE CHENNAULT,
Major General, USAF, R'td.

DR. LEE DE FOREST,
Pioneer in electronics

MRS. FRANCES B. LUCAS,
Daughters of the American Revolution

TALBOT SPEER,
Publisher

FREDERICK R. STEVENS,
Sons of the American Revolution

MRS. SALLY STRATTON,
Writer

MRS. LOUISE WARD WATKINS,
Pasadena, California

DR. CARL T. WALSH,
Ph.D. Harvard University

DR. FELIX WITTMER,
Author and Lecturer

PUBLICATION OFFICE:

210 E. 43rd St., Room 320

New York 17, N. Y.

Tel.: MURRAY HILL 4-1101

Gordon E. Small
Publication Manager

November 26, 1956

Mr. Dave Horton
Apt. 14, 1419 Clifton NW
Washington, D. C.

Dear Dave:

Sometime ago I talked to Colonel Pomeroy about who should be the recipient of the next Benton Memorial Award which, he tells me, you have been handling.

We agreed at the time that the logical candidate would be Congressman Bow of Ohio for his effective and persistent work on behalf of the elimination or modification of the Status of Forees Treaty.

Talking to the Colonel yesterday, I suggested to him that if this was to be done it would be best to make the award to Mr. Bow shortly after the next Congress convenes in January.

I enclose suggested copy for the wording of the citation and will be glad to have your reaction. This, of course, is only a suggestion and you may want to change it in some respects.

The Colonel tells me that you have been added to the Executive Council of the Defenders and I am having some new letterheads made up carrying your name. Will send you some as soon as they are ready.

With kind regards.

GES:dt

Enc.

Second fold here

430 Nepean Rd.,
E. Brighton S.6.

Melbourne.

Decembre 15

Dear Dave:

Yu shd by now have received a bundle
of EDGES. No.2, the Zielinski is out and a
small bundle on the way to you by sea. Now
what about distribution of larger quantities ?
I wd like to give you 40% for any trouble but
can't afford more'n one third.

Several bundles of Square Buck books
arruv at New Times this week - Agassiz, Benton,
the new Fenollosa with Vignon inside. Delm's
Moslem ready yet? Believe it or not the
bloody aesthetic mag. in which I invested five
& 's worth of advertisment some six months ago has
not yet appeared. It 's printed but some delay
in covers or something. Del Mar, Benton and
Mullins, offered as a 'set', for 38/- has brought
in a few orders. Del Mar by far best seller so
far.

New Times is a lousy financial position
at present. Lord knows when you 'll get your
next payment. The Heritage bookshop doing well,
but sales would need to be doubled for it to
finance all the other New Times and League of
Rights activities , which is the aim. Our
printing bill has been very high lately, including
10,000 copies of "Brain Washing" (Psycho-politics
manual), with result that I am barely able to draw
my weekly wage to feed, clothe, house madonna e
due ragazze.

Have already learnt a few things about
editing, mainly what NOT to do. Wd like to
be able to afford better paper, also larger
page size but keeping the present line length,
something after the size of the Morgan's fuddy
huddy (which now, incidentally, seems to have
gravitated into the paws or claws of Woody
Vealsohns heirs at Princeton . . .)

-2-

Have done a long article on Kahal System, with longish quotes from Marx, Graetz, Lazare etc plus a tentative view on Russia, Rothschild and 1917. Will send you an airmail copy, or two airmail copies since it is just as cheap , or dear , whichever you like.

Large % of Hungarian 'refugees' reaching Austlia are kikes, well-dressed, well heeled, with dough and a job waiting, in some cases with an uncle or a brother vaiting to greet 'em and set 'em up in a flat. One recent arrival hd bn C.Party member until a few weeks ago. Some haven't even LIVED in Hungary. Report from Hungarian in Melbourne says 1,200 of first 2,000 'Hungarians' who reached U.S. were kike. Goy Hungarians claim secret police 100% Jew. And secret police in Poland and Hungary, for some reason not yet clear, went out of their way to stir up strife. Not that the people weren't sick to death of it, but the s/police apparently exploded it. . .

Best Wishes for Christmas, yourself & wife

First fold here

XVI<sup>TH</sup> OLYMPIAD · MELBOURNE · 1956

Third fold here

T.D.Horton

USA

AEROGRAMME

BY AIR MAIL

PAR AVION

jlew.franipap.fqtuesag.lillw.rstel'poscuausig.fuithusfr

PURPOSE OF THE BENTON MEMORIAL AWARD

The basic object of the Benton Memorial Award is
to combat the appalling ignorance which has permitted
Dexter-White's gang to undermine us. This undermining
is not confined to specific subversive plots, but extends
to corroding the institutional integrity of our Constitu-
tional structure. Thus, the undermining of the Congress
AS AN INSTITUTION has proceeded to the point where the
Administrative centralists have usurped even the legis-
lative initiative--the Congress being relegated to the
role of deciding whether (and if) to stop one Adminis-
tration proposal or another. Even the exercise of this
Congressional veto of Administrative legislation is
hampered by the inordinate powers of fear and favor
wielded over individual members by the Administration.

The threat to the legislative integrity of the
Congress and of the States which is combatted by the
American Bar Association "Bricker Amendment" is too well
understood by TASK FORCE readers to require repetition here.
But there is another onslaught against the integrity of

Purpose

- 2 -

of our institutions that has not received sufficient notice. We are indebted to the much maligned Senator from Wisconsin, Mr. McCarthy, for protesting the Senate's being asked merely to 'consent' to a treaty without being permitted to see the bases of the negotiation--thereby depriving the Senate of the ability to advise and consent (as required by the Constitution) in the making of a treaty by the simple expedient of suppressing any data upon which to base advice. McCarthy's position is endorsed by distinguished precedent and devastating invective by Senator Benton in his chastisement of Webster for adopting a similar procedure in a treaty with Great Britain.

CONCERNING THE PRESIDENT'S MEETING WITH MR. MCCARTHY

ON how to

arrest the putrefaction of our Constitutional structure has

been come from the recipient of the Second Benton

Memorial Award, Congressman Frank T. Bow of Ohio. In re-
sponse to the query of what we can do to restore Constitu-
tional government, Congressman Bow suggested: "If I were

a young man starting now, I would make history my hobby.

Purpose

- 3 -

Learn the story of the men who built the nation, and find out how they did it. Observe the pattern or plan which their work was fulfilling, and resist offers to change or break away from that pattern. The need, is to return to it.

"Our schools do not teach American history any more, or they do not teach enough of it. They impose lists of dates on the students, ... Get the romance of American history back into the schools." This statement comes from a man who knows full well that the limited time of a high school education should show that he owes much of his office in our public schools. You young fellows should never in our politics in this way get in the way of a man's failure to prepare men for public office. A man who does not want to be a party man is all the more criminal, and the necessity for creating a social problem is not so important." awareness of certain historical facts, all the more pressing.

The blackout of our own historical tradition has been one of the most telling instruments of our destruction. ONE OF THE MOST TELLING INSTRUMENTS OF OUR DESTRUCTION IS THE BENTON AWARD. By using the Benton Award to direct attention toward the historical sources of the Jackson-Benton-Van Buren era,

Purpose

- 4 -

the Defenders hope to publicize the working of the American
political system in its finest period: A period when
purity
the MOBILE of that system was still unravished and when
the system produced many men with stout spirits and clean
minds.

T. D. Horton

NON-PROFIT NON-PARTISAN

Taxpayers Educational Association, Inc.

2007 LAKE AUSTIN BLVD

GENE O. PARKER
PRESIDENT

PHONE GR8 5431

E. CLAY LAFIELD
EXECUTIVE DIRECTOR

AUSTIN 3. TEXAS

MARK B. STRIEGLER
VICE-PRESIDENT

February 27, 1957

Mr. T. D. Horton
Square Dollar Series
Post Office Box 6964 - Congress Hts. Station
Washington, D. C.

Dear Mr. Horton:

Taxpayers Educational Association is endeavoring to secure the signatures of a million taxpayers to the enclosed petition to Congress.

This petition is being mailed to several hundred organizations in the hope they will cooperate and help secure the needed signatures to make it effective.

We will supply as many petitions with self-addressed return envelopes as you need for your membership. There is no charge for these petitions.

If you are interested in helping us secure these signatures, please advise us at once and we will mail the amount you need.

ECL:pe
Encl.

A Non-profit Association dedicated to Educate the General Public in the Field of Taxation

March 17

Dear Mr. Pound:

Bob Sharp straightened out the mis-
understanding between Ed Johnson & I that
Nora mentioned to you. Her version sadly
incorrect. I was waiting J.K.'s return for
same result. Well, anyway, now it's all OK.
I have access to the press & intend to use it
for MONEY PAMPHLETS...

However, first, some changes should be
made. As the situation now stands the elec-
tricity is off at WCCX and this sort of
irresponsibility would only hamper operations.
I have proposed that the press be moved to a
garage near the new bookshop. I have some
assistance promised from small group that is
capable and interested in printing the mag-
azine. I thought we would, first, print the
pamphlets and then the latter. But J.K.'s
permission is imperative. I would like for
him to make me directly responsible for the
whole business, for reasons that I think you
already know., I'm not interested in the WCC
but the above mentioned printing WILL be done
if these arrangements can be made. I'm going
to try to get in touch with J.K. this week &
would like to be able to pass on your approval.
could you drop me a note? I am ready to start
right away.

I hope to make the magazine something
that we can all be proud of. And as for the
pamphlets, necessity wrings her horny hands.

B/ton

THE LIBRARY OF CONGRESS

WASHINGTON 25, D. C.

LEGISLATIVE REFERENCE SERVICE

September 26, 1957

The Honorable
Usher L. Burdick
House of Representatives
Washington 25, D. C.

Dear Mr. Burdick:

This is in response to your request, on behalf of one of your constituents, for information concerning bank transactions whereby banks can cash Government bonds and still draw interest on them.

We know of no way in which banks may legally cash Government securities and still draw interest on them. Several illustrations of bank transactions in which Government securities are involved are briefly described below with the thought that they may be somewhat relevant to the general concern of your constituent.

The banks acting as fiscal agents of the Federal Government are authorized, for example, to redeem Series E savings bonds presented to them. For this service banks are paid a graduated fee by the government.

Another type of transaction noted here involves borrowing by a member bank from a Federal Reserve Bank and giving U. S. government securities as collateral. The borrowing bank has use of the money and continues to draw interest on the securities. However, the bank must pay to the lender, interest at the discount rate, for the use of the borrowed funds. Also, it should be mentioned that borrowing by the member banks from the Federal Reserve Banks may be done by using other types of interest-bearing collateral, such as commercial paper, as well as Government securities.

6 Jan " La Deffana "
or the Xtn/ feast a Biff in the eye.

legal wooly day in the Tirol.
37

T.D.Horton

*Might on request send on his recipe fer CHILE or chiLEEE,*,

have already entered into negotiation fer a haggis,
for Burns Night.

also, on trust 2. packets LOUDONS , in the yaller or oRange
packet , M/ sez it is the GOLD packet , not the
cherry vaRiety.

AM supplying review copies Sq $. to
Martino OBERTI , via Monte Allegro 32

Genova.

who SFZ he has first half of long crit/ of Fenollosa in
Il Caffe, that IS printed, and the 2nd. in one to come.

Instead of sending ask Force to the Rome office, probably
yankishly illiterate ,

I suggest they git orf thir hump and
send the exchange copy to OBERTI ,
in carge of the furrin section.

Any Wash/ pinion of Candour or other eng/ reviews
that OUGHT to be recd/ in eggschange , wd/ be
welcome HERE , chez EZ.

Merchant and Cummings wont collab/ European cause Mosley wuz
" fascist " /
nice package word.

Cookson and Binbinides ( Grey , not Woods ) are restarting
Four Ages .

I AM USING my hard earned copies of ~q. $.
Denton and el M/ to Il Verri / and others to Il Caffe/

HENCEforth , Il Verri will send exchange copy of Il Verri to
Pedro, who reads wop. BUT they shd/ get ask Force in eggs
eggschange.

You shd/ send the Coke to Luciano ANCESCHI ,
22 via Sismondi, Milano. Wopl
and to M.Oberti , via Monte Allegro 32 , Genova.

WHEN it gits printed.
both will git it reviewed.

Ancheschi gittin Bowen s Lion and Throne,

21 September, 1958

Mr. Russell Maguire
500 Fifth Avenue
New York 36, N. Y.

Dear Mr. Maguire:

Thank you for your inquiry about our Series, dated Sept. 16. The enclosed Order Form lists all the items we publish, and the five marked items deal specifically with monetary history.

Six other items that we handle are the Money Pamphlets by Ezra Pound which are a mine of useful and stimulating ideas on money.

Your emphasis of money in MERCURY is excellent. One useful idea that Del Mar's researches produced was the discovery that a basic reason for the stability of the Roman Empire was local control of local purchasing power, splitting the monopoly of the coinage--gold being struck by or under the authority of the pontifex maximus, silver ex senatus coahsulto to favored princes, and bronze by the municipalities. The local control you refer to in your money series that was enjoyed by the colonies is documented by Del Mar (History of Money in America, 1899), and more recently in Part, 1, The Standard Paper Money Catalogue, 1960, issued by Wayte Raymond Inc.

Best wishes,

T. D. Horton

6 Nov. 58

Monsieur ORRTONN

hereby informed that Sq $ has now a ITALIAN
distributor.

I left 2 sets Sq/ there today / some distinguished
romans having already wanted 'em,

3rd/ set delivered to local high school lad an lass
who primise to advertise 'em..

Am accorded , that distributor will be glad to have name stamped
on vols /

suggest you get a rubber stamp and putt it on copies
shipped to yuRUPP.

Italian distributor :

They only want 30% discount, and will sell fer 750 lire
per copy. this gives you 500,
less postage, whatever that is.
current rate. lire 622 per BUCH $

Doubt if you are doink better elsewhere.
At any rate they had " heard of Benton " by today.
AND it will be uZeful to have a yuroPEEN nadderess.

4 " woiks" of La Martinelli advantageously eggsposed, in good company
and one will be at Egyptological , next sprung.

24 November, 1958

Mr. Russell Maguire
THE AMERICAN MERCURY
250 West 57th St.
New York, N. Y.

Dear Mr. Maguire:

Thank you for your letter of the 19th. I'll look forward to receiving the MONEY MADE MYSTERIOUS pamphlets. Thanks also for putting me on the same page as the good Col. Pomeroy!

Do any of your readers have any idea how the "sleeper" in Art. 1, Section 10, got into the Constitution? "No State shall . . . coin Money; . . . make any Thing but gold and silver Coin a Tender in Payment of Debts; . . ." This blocks issuance by the States of local purchasing power, and as Del Mar pointed out, this local control was a basic reason for the stability of the Roman Empire. It seems unlikely that someone as circumspect as, say, John Adams, would overlook the immense importance of this monopoly. What connection was there between this sleeper and the dogfight we had in some States over adoption? Could Virginia, for example, have been aware that this limitation gave complete monopoly of control to the central government even of local purchasing power?

P.S. A Fenollosa, Analects and Agassiz are on their way to you under separate cover.

P.P.S. What would a one inch MERCURY ad cost on the inclosed U.S. Constitution? Price is 10 for $1; $5 per hundred, post-paid.

( Jan/ p.m.

Suggest as inside front cover, top line, separate.

THE RIGHT AIM OF LAW IS TO PREVENT COERCTION EITHER BY FORCE
BY FRAUD.

Then. PROGRAM
in search of a party.

Further news. Il Caffè, Dec. ( finally arrived.
Oberti has rev/ of Penollosa. 80 page, mag. 4 pages
in charge of OBERTI.

Task Force, IF any sense can be got into 'em. shd/ be sent to
Martino OBERTI, via Monte Allegro 32, Genova, Ifaly
a 43,

Harald reports note on Am/ Trag/ SCHOOLS, rev. Marson. to be in
Feb. European.

M. Harald 1 Berkeley House , 67 Yelsize Rd. London n.w. 6
England.

should be on list for Task Force exchange.

It thinks Mosley will try for Parliament, next elections.

Too bad Lee Lady " impossible"/ off on astrology, but can write lucid

Please have eacham VERIFAX, the enc. list of books.

send IT, but under no circumstances OTHER verifax matter ,
to Lee Lady , 108 Sheridan Av. Takoma Park,
HOLBURK

Mr Mullins reports you are fullfledged barrister. I nacherly
treat news from that source with reserve as Inasbruck date line.

trust the report is true.

Apt. 5 1230 No. Quinn St.
Arlington 9, Va. USA
20 March, 1959

Mr. A. V. Moore
Redcot
25 Stockens Green
Knebworth, Herts
England

Dear Mr. Moore:

E.P. writes: "It is my intention to maintain residence in the U.S. cause if I don't the britisch tax buggars will dook my brit/ come 42½" and suggests that the use of a Virginia address might (you) be of use to him/in struggles with the extortioners." If, so, you're certainly welcome to use this one for whatever good it'll do

Perhaps you could fill me in on whether this is a question of residence, domicile or address. I'd also be interested to know more about the regulations that seem to be giving rise to this current tangle--especially since it appears to be putting the BEECHY British government in the position of saying WHERE U. S. citizens should maintain their abodes. I realize that this is not by way of direct mandate, but a 42½ tax bite is compulsive.

(Neither am I disappointed about the EFFECT in this case, if it is to bring him back over here again! But I'm certainly curious about how it comes about--especially, how it comes to apply to E.P.)