Nexus - 0218 - New Times Magazine-pages

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1792 History books say that Hamilton's influcnce shortened the try. Jackson won and delayed the complete bank takeover of the panic that calling $11 in loans when there were only $10 in exis- _ country for years. Biddle's bank bankrupted in 1841. tence had caused. History also says that the victors write the his- 1837 "Crisis of 1837". In May of this year, all banks suspend- tory books. ed specic payment. Six hundred banks broke down. New interest- 1794 Heavy taxes needed to pay interest on state debts caused banks were forming so rapidly that the decrease really doesn't farmers to revolt in western Pennsylvania. George Washington show up on the history chart. did what his economic advisor told him to do: he crushed the For the next 84 years—through depressions and booms—inter- rebellion. Creditors called the uprising “The Whiskey Rebellion" — est banks grew like cancer cells. Even in the awful depression as a 'put-down'. It was a tragic time for the farmers of America. which bottomed in 1896, the total number of banks increased Another victory for interest banking. almost yearly. Businessmen, farmers and workers, caught in the 1824 "The Boston Revolt". In Boston, Massachusetts, anum- meshes of the interest contract, bankrupted by the tens of thou- ber of small private banks had been hurriedly thrown together and _ sands pouring riches into the coffers of banks holding the con- were eager to 'sock it to the public’. In addition to lending $10 for tracts. This was the time when starvation stalked the land—and $11, they issued paper money. They also threatened the big banks banking tycoons and their cronies were building mansions in by underbidding them for business. every town. The big banks retaliated by having laws passed requiring gold to Look at the dates on the big mansions in your town, You will He em to anyone rag al Paper Aw most = = me eae note to an issuing Reh . It was also in this perio! e banks were too big for retaliation. This farmers began to give up the impossible i hi ki 1 coe : le with interest i Sudherteammed ctste the present policing - Stu, mers suoraang dient ever since. Today, the present organisation keeping pened in the identical same manner in policing organisation keeping surveil- < Rome 2,000 years ago. The hills that lance over the smaller banks is called Tne Surveillance over the smaller used to be farmed in New England and Federal Reserve System. It is a power . the South have gone into pasture and unto itself, refusing to allow itself to be banks is called The Federal isn. ay “am - rea man on Reserve System. Itisa power eo tucen tae e Boston Revolt was actually a civ . * war within the new banking system. It unto itself, refusing to allow At the peak of her might, Rome invad- was the third and last revolt against the itself to be audited since its ed the land of old Persia. She levied a big interest-banks in the North-East. Bis 5 fine of 20 million. If the Persian cities Shay's Rebellion, The Whiskey Rebellion official creation in 1913. did not pay, Rome would raze them as and The Boston Revolt—two attempts she had Corinth. Persia had no money. with force and one financial—all three —<£_—_____________— Roman bankers generously lent 20 mil- defeated. This was how the North-East lion. In a few short years, principal plus was secured. interest made the debt grow to 40 million. Interest payments to Rome annually were from 2 to 4 million. This compared with the Conquest of the North, Central and South annual tribute of only 1.5 million to the Imperial Roman govern- For the next 61 years the energies of the new banking system ment. The bankers were raking off more than the state. were directed into the North-Central part of the country, into the Money is power. The borrower is servant to the lender. This 2 former Virginia counties of Ohio, Indiana, Illinois, Michigan and _ to 4 million annual interest payment represented a lot of power to Wisconsin. After this was accomplished, the stone wall to interest the banking class of Rome. A dictator came to power in Rome expansion presented by the plantation system of the mother state and declared 2,000 of these wealthy Roman banker/knights 'trai- Virginia and the rest of the South was broken by armed force in tors’ and confiscated their wealth (loans). This was done in the 1861. The ‘arrogant Southerners’ were brought to heel in the same name of the state. The dictator ran the state. Now he owned the manner as their brother farmers in Massachusetts and loans—and the interest. For a time he became a superbankcr! Pennsylvania earlier. This is the type of power play which was missed by the masses 7 in Rome. It was again missed by the masses during the "1920s The Boom in Banks Turkey Shoot" in America. 1819 Ru the time the War of 1219 anded there were mare than Conquest of the North, Central and South For the next 61 years the energics of the new banking system were directed into the North-Central part of the country, into the former Virginia counties of Ohio, Indiana, Illinois, Michigan and Wisconsin. After this was accomplished, the stone wall to interest expansion presented by the plantation system of the mother state Virginia and the rest of the South was broken by armed force in 1861. The ‘arrogant Southerners’ were brought to heel in the same manner as their brother farmers in Massachusetts and Pennsylvania earlier. The Boom in Banks 1812 By the time the War of 1812 ended, there were more than 250 banks in existence. In addition, there was one notable sub- traction which was a first: (Note: Big banks always encourage small banks to develop a following of borrowers. When as many people have mortgaged their property as are likely to, the big banks pass regulations which are impossible for the little banks to comply with. In 1824 it was ‘gold backing’; in the 1920s it was ‘reserves’. When the small banks are not able to comply, they close or are bought out. Their assets (mortgages) are taken over by the big banks. The small bank has been used as a 'finder'’.) 1809 The Farmers Exchange Bank of Gloucester, Rhode Island, went broke. This was the first of the thousands which were to fol- low. 1834 You will note on the chart on page 33 that by this date the total number of banks had grown to 506. The fight between President Jackson of the US, and Biddle of the Second Bank of the US, has been omitted because the issue was not ‘interest bank’ vs ‘interest-free bank’, but merely who was going to control the coun- 1913 In America the business of ‘guaranteed profits’ whetted the appetites of greedy people all over the nation to get into bank- ing. The number of banks grew to 27,285. Instead of stamping out these new banks, the North-East giants encouraged their growth in spite of the fact that when a pie is cut too many ways, no one gets a big slice. There were too many banks and most of them were not making as much money as they could have if there were fewer banks. To reclaim their advantage when the time was ripe, the big banks instructed the politicians to create a central reg- ulatory commission run by the same big banks. The Federal Reserve was created. This new creation acted much in the same manner as the Roman dictator had earlier. A lot of regulations governing banks were issued. The act bringing the Federal Reserve System into existence was co-authored by Senator Carter Glass. 1921 Seven years later the ballooning total of banks peaked at 31,076 and the big banks snapped the trap shut on the small banks. NEXUSe31 The Birth of the Giant Bank FEBRUARY - MARCH 1994