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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 IX Some Further Reasons Why Banking Must Be Abolished

pouring bank credit into the money stream of the Nation, making the dollar cheaper and cheaper, until today it buys on an average about one-fourth as much as it did in the 30's and early 40's. Now their vaults are bulging with "investment obligations," and they have decided that it is time to begin foreclosing and taking title to the lands and industrial and commercial properties of the people of the United States. A few months ago these 19 kings of America met, scratched just common, ordinary chins, and used just ordinary brains, and came up with the idea that now is the time to put on the squeeze. So tight money followed, up to now just for the little man - the big boys are still building houses in blocks costing many millions, but the little fellow who had been building a house at a time, selling it, paying off the banker, then borrowing again to build again, can't get a dollar. Remember 1929, and the years that followed, and curse yourself for not compelling Congress to take back the creation and control of money, and the Nation's credit then. If Congress should "remember" the Constitution, and take over the creation of money, and its control, cash and clear the people's cheques, the Congress could play the role of the 19 kings, to the benefit of all. When the Treasury found the volume of money inadequate, Congress could order the Treasurer to give the Government credit in its chequeing account for that additional money the increased business of the nation required, and the ratio would remain the same. Of course they would not automatically siphon this money off when the demands of trade fell below the ratio to the volume of money, so the Congress, in its power to regulate the value of money, could "fix" prices at the status quo level. Congress could not legally or constitutionally profit in the creation and control of money; neither could the employees of the Treasury who would man the thousands of United States Treasury Depositories, for they could not buy investment obligations, nor make loans. Their sole business (duty) would be to keep accurate accounts of the people's depository deposits, cash their cheques, and clear them exactly, almost, as cheques, are now cashed and/or cleared. The system now in use is fairly

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