Chapter XIII Cash is Not a Part of Our Money Supply

keeping of the people's deposit credits, cashes and clears their cheques, Congress will see that the volume of Depository Credits is ample to meet the highest business demands; and when business is slack, the surplus deposits, like cash in the vaults, will just lie there and slumber until some phase of the moon sets the people about new and frenzied enterprises, as since World War II, but under the Depository System there will not be high and low business activities-normal, steady, purposeful progress at all times. The gamblers, create cycles of low and high activity; and bankers are gamblers! Honest, legitimate enterprises, and industries, and businesses will never lack funds under the Depository system; for that will be the constant responsibility of Congress, to see that the volume of deposits is adequate at all times; and there will be no "pumping in and siphoning off" as now practiced by banks. There will be no indebtedness requiring siphoning money off that debt may be foreclosed. When people are rushing ahead building, developing, advancing as in the early 50's, the Congress would not grow alarmed about the luxuries the people were enjoying; it would not, as the 19 Reserve men did in 1955, stop the pumps, which had been pumping money into the people's pockets; and turn to the exhaust pumps and begin frantically siphoning (pumping) the money out. Don't let them frighten you by saying that there will be no money for advancement, improvement if we stop them. They now plead for lower income taxes that they may "save funds" for expansion and development — never using them for expansion, always, issuing more corporation stock! If they are only using profits for expansion, the banks serve them no purpose. As we need more money, Congress will order the Treasury to give the Government deposit credits for the needed additional amount. This will be chequed out for expenses of the Government, and flow right into the deposits of the people. It would be a creative act, but an act only Congress can Constitutionally perform, and it would benefit every person in the Nation, because it would save taxes, as the money would first pay Government costs. That is what we do under the Reserve