issues both money and bonds, and sells the bonds to the bankers that create deposit money. If banks need the cash to pay the depositors, the Treasury supplies it free. In that way, Congress has farmed out to private bankers the nation’s credit free, and Congress’ power to create money, the greatest and most profitable privilege our Nation had, absolutely free; and of course, unconstitutionally.
“Congress has farmed out to selfish private banking corporations the credit of the nation free, and empowered them to create all of the people’s money. Some day the American people are going to blame this 1943 Congress for not changing the system at this time as we are entering on a $300 billion war program.”
Mr. Eccles, then the Chairman of the Reserve Board, said in replying to a question asked him when he was testifying before the Ways and Means Committee of the House, in February 1943: Mr. Patman.