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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 VII Simplified Mechanics of Reserve Banking

and buy investment obligations, which gave the banks both title to the investment obligations, and reserve funds. At every step the banks "created" the funds they used; and the member banks came into possession of the reserve funds created by the Reserve authorities without ever knowing where the reserve funds came from, simply through the act of accepting cheques drawn against Reserve Bank deposits, for deposit in their banks. The reserve funds not only did not cost the member banks one thin dime, they did not promise the depositors of these cheques which increased their share of the reserve funds to their credit on the books of the Reserve but two things: (a) to cash their cheques, (b) to clear their cheques. At no time did they have to pay for the cash they got or the reserves they enjoyed: just promised to do simple bookkeeping for their customers — to keep their monetary accounts. Free Reserve credits; free member bank reserve funds; free member bank credit; and they sold these free bank credits to customers and got investment obligations in exchange, and when these investment obligations were paid off, or re-sold, they got bank deposits to their credit. "Unsound," you say. "Impossible," you shout. "The Government would not tolerate that," you reason. Well, gentle readers, your government does. Your Congressmen, by perjuring themselves, in violation of the oaths of office they took, which were "to support, uphold, and defend the Constitution of the United States," passed banking laws written by bankers, culminating in the just passed "S.1451," an act to amend and revise the statutes governing financial institutions and credit. That Act consolidates all banking laws passed by Congress through the years, deleting some, adding much. It covers 252 pages, and uses 100,000 words. It puts forth as much effort to obscure and confuse its meaning, as it does to state the "purposes and functions" of banking. But it does do some terrible things. (a) It surrenders to private banking corporation the nation's credit; (b) it, therefore, compels the Government to pay the bankers interest to use its own (originally) credit-it thereby makes the banking corporation the master of the Government,

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