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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 XIII Cash is Not a Part of Our Money Supply

announcement of the "formal opening of their newest H.E.B. Food Store." There is an engraved picture of this "store," which covers several thousand feet of floor space; and there have been paved thousands of feet of parking space for customers' cars. The whole covers approximately four blocks.

There is an old H.E.B. Food Store a few blocks down the same street, vacant now, which has been adequately serving such customers as needed its service; but another "big food" man who has climbed from rags to riches via the grocery basket, had opened a grocery store in a new trade centre, and was no doubt taking a lot of trade from the old H.E.B. store, so the H.E.B. company just dug into its stock till and came up with some $500,000 new deposits to build this "emporium," that it might hit the less big fellow a wallop on the head. Until recent years, even great cities like London and New York, got along nicely with the little corner grocery; but now in this town of 160,000 people, we have many, many great food stores, many, many trade centres; and we understand a fellow is now developing a $30 million trade centre, and it will have its great "food emporium." There are now many littler Du Ponts, who have their fingers in both industry and banking, and the easy way of getting deposits through the issuing of new stock, and selling them to the Reserve authorities, is expanding every line of trade and commerce beyond a wholesome limit. Not only was there no need for these great stores, but in creating them, thousands of small grocery-men have been driven out of business. That is what cheap, unlimited new deposits is doing for us. As said elsewhere in this book — too much forms tumours, and death follows unless expert surgery is performed. First we had the one-car family; then the two-car family; now the many-car family, one for each child, and one for each parent; but now we have expanded housing to the two-family house status. Our just abdicated governor has several — one in the Valley, one in Woodville, his birthtown, and a mansion here in Austin! Our U.S. Senator Johnson, as a life-time public servant, has gone from rags to millions; our last two governors have gone from rags to

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