June 23, 1913, President Woodrow Wilson proposed to Congress that American businessmen needed freedom of enterprise and relief from the boom and bust cycles. Now, the Federal Reserve system is behind the trillions of dollars of debt the U.S. Government wrangles with today.
In this report, Woodrow Wilson.
A new Democratic president agreed to endorse a planned federal system that would regulate credit and oversee the nation’s currency. What prompted this endorsement and how does it impact our monetary system today?
November 1910, six men, an exclusive boys-club gathering of American businessmen and politicians, secretly meet in Jekyll Island, Georgia. They were powerful men.
Their concern … a suffering banking system. In a March 2011 Fox News Report, Glenn Beck, a radio and television host, recounted the story of the Jekyll Island Meeting.
The leader of the group, Nelson Aldrich, was the chair of the U.S. Senate Finance Committee with close ties to JP Morgan and Nelson Rockefeller, two billionaire businessmen.
Their mission … to write the bill that would institute a central banking system with five objectives.
Once constructed, frontman Senator Nelson Aldrich pushed their proposed law through Congress. So What happened next:
June 1913, President Woodrow Wilson. Just 3 months into his first term as a Democratic president. Heavily backed by bankers, he had succeeded on a previously winless ticket since 1892.
The win followed years of disagreement among businessmen seeking individual initiative and free enterprise. Wilson personally addressed both houses of Congress and implored them to set the businessmen free.
“It is absolutely imperative that we should give the businessmen of this country a banking and currency system by means of which they can make use of the freedom of enterprise and of individual initiative which we are about to bestow upon them.”
Wilson impressed upon the members of Congress to mobilize reserves and spread the wealth, rather than leave it in the hands of a few banks and corporations.
He continued: He said:
“We must have a currency not rigid as now, but readily, elastically responsive to sound credit, the expanding and contracting credits of everyday transactions, the ebb and flow of personal and corporate dealings.”
On the eve of the passing of the Federal Reserve Act, members of the House of Representatives debated the amended Aldrich bill for more than 2 hours.
Congressman Everis Hayes of California sought to remove a provision that makes the United States liable for notes issued through regional reserve banks.
“Probably all of the people of the United States who have not studied this measure carefully, suppose these notes are to be a bank note, something similar to the national-bank currency we now have. When they come to understand that these notes are not primarily bank notes at all, but the notes of the Government of the United States, I want to say to my friends on the other side of the aisle that the people of the United States will hold them to account for creating such a currency. This feature will rise to plague them for many years to come.”
Congressman Joseph Moore of Pennsylvania complained that the Democratic Party intended to revive the defunct United States Bank system, which had been fiercely destroyed by President Andrew Jackson.
“Such tremendous power for good or ill was never granted to any President, nor has so great an inducement to perpetuate the power of any party been vouchsafed to any man in the history of this country.”
A distressed Congressman Charles A. Lindbergh of Minnesota suspected that most members of Congress did not dare to oppose it.
“I doubt that any member of Congress would intentionally wrong the people, but it is known that the Money Trust is adroit in its plans to defeat those who dare to oppose it. Members who oppose it are subject to all kinds of attempts to injure their reputation back in their districts.”
So what happened next?
From 1914 to 1919, the Fed substantially increased the money supply, resulting in extensive loans to small banks and the public.
August 15, 1971, President Richard Nixon addressed the nation on a new economic policy to correct the balance of payments but also stave off inflation and lower the unemployment rate.
In a 2011 Fox Business news segment, Former Texas Congressman Ron Paul bluntly said that making paper money is a crime.
The Federal Reserve Act has undergone several revisions since 1913. Under the Fed’s supervision, boom and bust cycles have continued. Federal Reserve rate increase sprees led to the Great Depression in 1928, the dot-com crash in 2000, and the Great Recession in 2008.
As of October 28, 2018, debt held by the public was $15.8 trillion and intra-governmental holdings were $5.8 trillion, for a “National Debt” of $21.6 trillion.
As we ponder the lessons learned from the creation of the Federal Reserve, let’s look back at these words by first president George Washington:
“We should avoid … the depreciation of our currency; but I conceive this end would be answered, as far as might be necessary, by stipulating that all money payments should be made in gold and silver, being the common medium of commerce among nations.”
That’s the extended report for today. Thank you for listening to America Daily.