CodalSearch this book — or all of Codal…⌘K
Projects
Sign inStart a book
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.

Page 12 of 211
Table of Contents

Chapter II Quotations From

the Federal Reserve Banks in clearing and collecting them through the reserve accounts of member banks. For example, suppose a Hartford, Connecticut, manufacturer sells $1,000 worth of electrical supplies to a dealer in Sacramento California and receives a cheque on a bank in Sacramento. . . . The Hartford manufacturer . . . deposits the cheque in his Hartford bank. The Hartford bank does not require cash for the cheque; it wants credit in its reserve account at the Federal Reserve Bank of Boston. Accordingly, it sends the cheque to the Federal Reserve Bank of Boston (which credits Hartford banks reserve account $1,000). The Federal Reserve Bank of Boston sends it to the Federal Reserve Bank of San Francisco. The Federal Reserve Bank of San Francisco debits the Sacramento bank’s reserve account $1,000 and sends it to the Sacramento bank. The bank in Sacramento charges the cheque account of the depositor (the electrical dealer) who wrote it, and either remits the amount to the Federal Reserve Bank of San Francisco or authorizes the San Francisco Reserve Bank to charge the amount to its reserve account. The Federal Reserve Bank in San Francisco thereupon credits the Federal Reserve Bank of Boston. The Federal Reserve Bank of Boston in turn credits the account of the Hartford bank. Thus the cheque effects the transfer through the Federal Reserve Banks of $1,000 of deposit credit from the chequeing account of the dealer in Sacramento to the chequeing account of the manufacturer in Hartford and transfers $1,000 In Reserve from San Francisco Reserve bank to Boston Reserve Bank to credit of Sacramento bank.” Page 32: “Cheques which are collected and cleared through Federal Reserve Banks must be paid in full by the banks on which they are drawn, without deductions of a fee or charge.” Page 35: “The twelve Federal Reserve Banks carry the principal chequeing accounts of the United States Treasury, handle much of the work entailed in issuing and redeeming Government Obligations, and perform numerous other fiscal duties of the United States Government.” Page 39: “The aggregate deposits in the banking system as a whole represent mainly funds lent by banks or paid by banks for securities, mortgages,

12