LESSONS IN CIVICS & THE CONSTITUTION – K Part C
The Federal Reserve: Continued
S. W. Adams uses the Federal Reserve’s own published figures, in a reprint of the book “The Federal Reserve System – Its Purpose and Function,” to give us an example of how lucrative this no risk scheme is to the Federal Reserve: This pauper (The Federal Reserve System) with assets of only $52 billion with no productive know-how, no production of goods, and fewer than 100,000 stockholders, loaned the poor man (The United States of America) with a trillion in productive capacity and know-how with well over $600 billion in assets and 170 million stockholders, including the aforementioned 100,000 bank stockholders, $250 billion to fight World War II.
Can you imagine, the greatest corporation on earth, the Government of the U.S. with 170 million alert full-of-know-how stockholders, and assets running well over $600 billion, turning to a small segment of its population, with fewer than 100,000 stockholders and assets of only $52 billion to borrow money?
Now picture this, Rockefeller says to his chauffer, “Tom, I am transferring my personal bank account which is well over $1 billion, to your bank account. You may spend it as you please; provided that as often as I ask for money, you will let me have it. Of course, I will give you my note for cash I receive, and try to rustle from my children enough money to pay you interest on the money I borrowed.” Does that make any sense to you? Well, that is exactly what Congress did in 1913 when it passed the Federal Reserve Act.
To fight World War II, we gave the bankers of the
Thus, here is what happened: by adding the $250 billion in U.S. Bonds our government absolutely gave to them with their $1trillion 250 billion bank credit, we find that the bankers (the then paupers) came out of World War II $1,500 billion richer, and the (then rich man) the United States Government came out $250 billion in debt to the bankers (the paupers) thanks to the gross stupidity and/or venality of our Congressmen, newspapers, journals, and educated people of the nation. You can clearly see, by their own testimony, the Federal Reserve, as a maritime lender or insurer, not only has nothing to risk, but can only gain on a scale that is almost unconceivable, just like the tontine insurance schemes, and just like the George Rapp Harmony Society.
You will see the significance of all this when I apply the law to the fact. These same people who were given control of our public money system, for the so-called purpose of evening out the economy, using Professor List’s formula for a “National Economy”, caused a recession in 1921—and precipitated the stock market crash of 1929 by increasing the member bank reserve requirements from 15% to 20% -- thereby forcing a hugh liquidity squeeze. This paved the way for what was to follow in 1933 by way of bankrupting the treasuries of the States and Federal governments. They could no longer pay their debts at law to the Federal Reserve, thus drastic measures were necessary -- we had a “National Emergency” on our hands!
In March of 1933, President Roosevelt had Congress pass an Emergency Measures Act. The text used in this act was the “Trading with the Enemies Act” of 1917 which revoked the constitutional rights of Germans and allies of
This action allowed the President to rule by decree (executive order) as under Marshall Rule. Thus, on April 5, 1933, President Roosevelt issued an executive order calling for the return of all gold in private hiding to the Federal Reserve by May 1st, under the pain of ten years imprisonment and $10,000 fine. Those who refused were hunted and prosecuted. The then Attorney General Cummings declared: “I have no patience with people who follow a course that in war time would class them as slackers. If I have to make an example of some people, I’ll do it cheerfully.”
The California Assembly and Senate, on May 12, 1933, adopted the Assembly Joint Resolution No. 26. This resolution stated in part: “Whereas, it would appear that, with proper use and control of modern means of production and distribution, it would be possible for practically all persons to have and enjoy a fair share of material goods in return for services; and whereas, such use, control and appropriate economic planning are not feasible except through the direction and supervision of a single, centralized agency and the removal of certain constitutional limitations; now, therefore be it resolved by the Assembly and Senate, jointly, that the Legislature of the State of California hereby memorializes the Congress to propose an amendment to the constitution of the United States reading substantially as follows:”
“The Congress and the several States, by its authority and under its control, may regulate or provide for the regulation of hours of work, compensation for work, the production of commodities and the rendition of services, in such manner as shall be necessary and proper to foster orderly production and equitable distribution, to provide ruminative work for the maximum number of persons, to promote adequate compensation for work performed, and to safeguard the economic stability and welfare of the nation; resolved that the Legislature of California respectfully urges that, pending the submission and adoption of such amendment, the Congress provide such economic planning and regulation as may be necessary and proper under present economic conditions and legally possible under the existing provisions of the Constitution;
And be it further resolved, that the Chief Clerk of the Assembly is hereby instructed forthwith to transmit copies of this resolution to the President of the United States, and to the President of the Senate, the Speaker of the House of Representatives and each of the Senators and Representatives from California in the Congress of the United States.” May 12, 1933.
Next Week, September 4th, LESSONS IN CIVICS & THE CONSTITUTION – L Pennsylvania General Assembly Act III
“Abouna” Gregori
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