In a reprint of the book "THE FEDERAL RESERVE SYSTEM -Its Purpose and Functions," S. W. Adams, uses the Federal Reserve's own published figures to give us an example of how lucrative this no risk scheme is to the Federal Reserve: The pauper (The Federal Reserve System) with assets of only $52 billion with no productive know-how, with no productions of goods, and fewer than 100,000 stockholders, loaned (?) the rich 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 aforesaid 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 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?
Can you conceive of Rockefeller saying to his chauffeur, "Tom, I am transferring my personal bank account which is well over $1 billion, to your account. You may spend it as you please; provided 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 borrowed money." 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 United States $250 billion in U. S. Bonds that we might use our own, the Nation's credit. By using the reserve multiplier, this gave them $1 trillion 250 billion bank credit. What an unearned bonanza for the banksters! Credits are to the ankers what your deposits are to you. They can lend them, or use them to buy investments - it is cash to thr bankers!
So, by adding the $250 billion in U.S. Bonds we absolutely gave to them their $1 trillion 250 billion bank credit, and 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 stupidity and/or venality of our Congressmen, newspapers, journals, and educated people of the nation. Clearly, by their own testimony, the Federal Reserve, as a maritime lender or insurer, not only has nothing at risk (i.e., nothing to lose in the maritime venture for profit) --but can only gain on a scale that is almost inconceivable, just like the tontine insurance schemes, and just like the George Rapp Harmony Society.
The significance of this will become very apparent when we apply the law to the fact. These same people who were given control of our public money system, for the ostensible purpose of evening out the economy, using Professor List's formula for a "National Economy", caused a recession in 1921 -- and precipitated the crash of `29 by increasing the member bank reserve requirements from 15% to 20% -- thereby forcing a huge liquidity squeeze. This set the stage 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 -- drastic measures were obviously 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 Germany living in the USA. These people were forbidden to carry on trade with Germany and were subject to fines and/or imprisonment for showing any anti-USA sentiment. The Emergency Powers Act of 1933 eliminated section five of the Trading With The Enemies Act. This section exempted US citizens from the act. Thus the Citizens of the United States were put on status as enemies of the United States.
This allowed the President to rule by decree (executive order) as under marshall rule. 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 1 under the pain of ten years imprisonment and $10,000 fine. Hoarders were hunted and prosecuted, 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."
On May 12, 1933, the California Assembly and Senate adopted 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 for 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 if 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 t he House of Representatives and each of the senators and representatives from California in the Congress of the United States." May 12, 1933."
END PART SEVEN
Proceed To PART EIGHT
BY: ELDON G. WARMAN
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