Monday, December 26, 2022

Woodrow Wilson's Christmas Grift of 1913

The Federal Reserve and its Origins

  • The most successful thieves have done their work in plain sight, while the owners are not home.
  • Most importantly, the Fed acts as an emergency lender, and without it, the economy would have collapsed in the nineteenth and early 20th centuries.

The Bankers' Dream

  • Before the Fed's founding, bankers complained about US currency's lack of "elasticity"
  • They wanted a central bank that could supply money when needed
  • A common reserve ratio established, then no bank could expand credit more than its rivals
  • All banks would inflate in harmony and there would be tranquility and profits for all

The Pujo Committee

  • Frequent speeches by Wisconsin senator Robert LaFollette and Minnesota congressman Charles Lindbergh brought public outrage over the "money trust" to a boil
  • In response to the accusations, a new subcommittee, led by Louisiana congressman Arsène Pujo, held hearings from May 1912 until January 1913
  • The hearings followed the usual pattern, bringing forth immense quantities of statistics and testimonies from bankers themselves
  • Neither man was allowed to testify because they were deemed “indicateors” of Wall Street

https://mises.org/wire/woodrow-wilsons-christmas-grift-1913 

No comments: