By Silas Walter Adams
Copyrighted 1958 through Silas Walter Adams
Library of Congress Card quantity 58-9762
E-Text ready by
14th July 2002.
Note: Spelling has been replaced from
U.S. American to Australian.
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Extra info for The Legalized Crime of Banking and a Constitutional Remedy
First, The Reserve authorities create bank reserves. Second, Reserve Bank credits are convertible into commercial bank credit. Third, Commercial bank credit is convertible into bank deposits to the credit of borrowers from the banks, or sellers who sell to the banks investment obligations. ". S. Bonds, corporation stock, notes, mortgages, debentures, any investment obligation. When the Reserve authorities buy corporation stock, they give a cheque against no funds in payment for the stock, and the corporation deposits this cheque with its home bank.
Our school bus factory here in South Austin is growing so fast that they are in great need of additional capital. [begin page 57] Let's show them how easy it is to issue stock, and sell the stock to the Reserve authorities. So Tom calls the President of the School Bus Factory and says, "Henry, you were talking to me the other day about your; need of a $1,000,000 for expansion and improvement. I have figured out a way to get the money. " Henry hurries over, for dangling a $1,000,000 before a hungry corporation president's eyes renews his youth.
It does no man a wrong. It gives no man an unfair advantage over another, no man a special privilege. It stimulates legitimate businesses, places a premium on honest labour and industry, protects the weak against the strong, and cuts the shackles of economic bondage from the masses and saves them from trillions in debt and billions in interest payments. It is Constitutional Admittedly so. Had we made change in 1933, and the Treasury had taken credit for $250 billion, we would not owe the $279,764,369,348 (as of February 28, 1956) bonds with the $10 billion annual interest payments.