THE LEGALIZED CRIME OF BANKING is a simple story of The Federal Reserve System, dealing principally with the unconstitutional creation of money and the control of credit by private corporations. The author suggests a concrete, simple solution, which Congress could employ, which would make the transition from private banking to the Treasury without injuring anyone enjoying a constitutional right, or without upsetting our normal course of trade, industry, and agriculture. (From the back cover of the original book)
The Pauper and The Rich Man
The pauper (the Federal Reserve Bank) with assets of $52 billion with no productive know how, and less than 100,000 stockholders, loaned the rich man (The United States Government) with well over $350 billion in physical assets plus $250 billion in productive capacity and know how, with 170 million stockholders, $300 billion to fight World War II. Can you imagine the greatest corporation on earth, with 170 million stockholders and assets running over $600 billion, turning to a corporation with less than 100,000 stockholders and assets of only $52 billion to borrow money?
Can you imagine Rockefeller saying to his chauffeur: “Tom, I am transferring my personal chequeing account, which is around $1 billion, to your account; you may spend it as you please, provided that when I need some cash, you will hand it to me. Of course, I will give you my note for cash I receive and pay interest on the note.” Well, that is exactly what Congress did in 1913 when it passed the Reserve Act. To fight World War II, we gave the bankers of the United States $300 billion in U.S. Bonds that we might use the Nation’s credit. In addition, we permitted them to take a credit of $300 billion in their reserve accounts.
This gave them $2 trillion 100 billion bank credit. These credits are to bankers what your deposit credits on their books are to you. They can lend it, or buy investment obligations-it is cash to them! So adding the $300 billion in Bonds to their bank credit, we find that the bankers (the then paupers) came out of World War II $2 trillion 400 billion richer than when we went into the War. The United States Government (the then rich man), thanks to the stupidity and venality of her sons (congressmen), and newspapers and journals, came out of the War $300 billion in debt! And, dear reader, that fable happens to be true.
Who has dared to publish challenging books on money, exemplifying those qualities of rugged and courageous man hood so essential in the ongoing of a free republic, in which no man should be afraid to speak when he feels it his duty to speak. He has spoken through the many books which he has published, proving that a free press, in his opinion, is the guardian genius of a just, honest, and humane democracy. He has felt with Lincoln that “To sin by silence when they know they should protest, makes cowards of men.” In appreciation of him as a publisher, I dedicate this book.