CodalSearch this book — or all of Codal…⌘K
Projects
Sign inStart a book
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.

Page 95 of 211
Table of Contents

Chapter IX Some Further Reasons Why Banking Must Be Abolished

simple, but the Treasury would simplify the mechanics of money much more. This will be developed to greater length as we give you the Constitutional Solution. There is another emergency which may confront Congress at any time: war. If that should happen again, and we would be faced with another $250 billion war costs, the Congress would order the Treasurer to give Congress credit for the $250 billion. Since it would not draw interest, or disturb our total deposit volume, except as the Government chequed it out for goods and supplies, and services, it would make no difference if the Government never chequed it out; for as long as it remained to the Government's credit in the Treasury, it would have no effect on our money supply. As the Government chequed against the $250 billion it would transfer these deposits from the Treasury to the people's accounts in the Depositories of the country. It would swell the volume of money; but Congress would immediately fix prices on all commodities, wages, interest, and what have you and there would be no increased costs of goods. At the end of the war, should our increased business activity fall off, and return to normal; the Congress would take these extra billions out of circulation, as explained elsewhere, and the deposit dollars would nicely balance the dollars business required annually. No army of "experts" would be needed to keep the Congress posted; it would be as simple as keeping Congress posted on the post office needs and activities. No smart lawyers would be needed to interpret contracts, and pile up mountains of gobbledegook, to confuse and to mislead the people. Perhaps the most difficult proposition for the people to grasp is how bank deposits are obtained. This is so because the people have been taught that bankers lend cash, and that when they get the cash, if they do not want to have it in their possession, they "deposit the cash" in the bank, and get a deposit slip, showing that they have the cash on deposit in the bank. This is wholly erroneous. You do not borrow cash; you borrow bank credit, and bank credit is a fictitious fund carried on the books of banks. When you borrow "bank credit" you are given a deposit slip, as stated above, which shows in the loan that bank credit was converted into bank deposits.

95