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nydus/The Legalized Crime of BankingPublic

Silas Walter Adams critiques the Federal Reserve Banking System, arguing that its monetary policies have significantly inflated the costs of war and national debt. The book examines the historical impact of private banking practices on the American economy and proposes a constitutional alternative for the management of the nation's money supply.

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Table of Contents

Chapter XII Creditalism Vs. Capitalism

or other groups. A person or group needing more capital than he or they had, would borrow earned (existing) money from others, and no new money would be created and added to existing volume to inflate and cheapen it. This sort of economy truly would be sound, beneficent Capitalism. 2. The creation of bank deposits by simply crediting the bank customer's account when "the bank buys from him any security" — his own note and mortgage, deed of trust, or government or corporation bonds, stocks or shares, or any other commercial paper. The bank gives nothing of value. The act is called a loan, but you can't lend nothing. But the act creates by a "flick of a pen, out of thin air," bank deposits which are transferable from buyer to seller, hence it performs the primary and chief function of money, a medium of exchange. Bankers call it bank credit, but that is untrue. It's the people's credit, made attractive on the faith of the people's own Government. It is Creditalism and not Capitalism. It gives bankers absolute control over all production, all transportation, all communication, all education — all industry, all trade and commerce; and, in effect, title not only to the real wealth of the Nation, but title to its earning power.

Will You Now Agree That What Might Have Been Must Come To Pass?

Well, fellow citizen, you have read that frank sketch of the most sordid set of human creatures ever spawned by selfish greed. You will find my simple, constitutional remedy equitable and sound. There was just one zeal dominating me as I sketched the "Crime of Banking", and outlined the "Remedy", and that was America's greatest contribution to the tenets of organized government — "Equal Rights for All; Special Privileges for None." I believe that the Declaration of Independence of 1776, and that the Constitution of the United States of 1787, are the greatest economic documents ever penned by men that they, sketched the "Crime of Special Privileges," and charted the course of "Equal Rights to All," so clearly, so succinctly, that no one can fail to understand them. Smart men, among

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