Case Against the Fed, The

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Ludwig von Mises Institute, 2007 - Federal Reserve banks - 158 pages
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"By far the most secret and least accountable operation of the federal government is not, as one might expect, the CIA, DIA, or some other super-secret intelligence agency. They are accountable: a Congressional committee supervises these operations, controls their budgets, and is informed of the covert activities. It is little known that there is a federal agency that tops the others in secrecy by a country mile. The Federal Reserve System is accountable to no one; it has no budget; it is subject to no audit; and no Congressional committee knows or, or can truly supervise, its operations. The Federal Reserve, virtually in total control of the nation's vital monetary system, is accountable to nobody--and this strange situation, if acknowledged at all, is invariably trumpeted as a virtue"--Page 4 of cover.

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User Review  - Loptsson - LibraryThing

Once you read this and get an understanding of the fractional banking system that we run off of, you will be scared for your money. In fact in light of the banking failures you will see why it happened and wonder why it didn't happen sooner. Read full review

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Page 40 - The money placed in the custody of a banker, is to all intents and purposes, the money of the banker, to do with it as he pleases; he is guilty of no breach of trust in employing it; he is not answerable to the principal if he puts it into jeopardy, if he engages in a hazardous speculation; he is not bound to keep it or deal with it as the property of...
Page 40 - The money placed in the custody of a banker is, to all intents and purposes, the money of the banker, to do with it as he pleases...
Page 42 - ... mere debtor to its depositor for the amount of his deposit, and therefore, in an action by the bank against the depositor, on a note upon which he is liable, the latter may set off his deposit, yet we do not think the bank is bound to hold a deposit for the protection of an indorser of the depositor. A bank deposit is different from an ordinary debt in this, that from its very nature it is constantly subject to the check of the depositor, and is always payable on demand.
Page 106 - Central Bank of Issue. — In our opinion, the best method of providing an elastic credit currency, the volume of which could never be excessive, would be the creation of a central bank of issue under the control of the Government. This central bank should have branches in the leading cities, and should have dealings only with banks. Although its capital stock might be privately owned or distributed among the banking institutions of the country, it should be under the direct control of a board of...
Page 35 - So long as he does fulfil promises no harm seems to be done ; but experience proves that there will always be a certain proportion of persons who, in such circumstances, will not act so discreetly as to be in a position to redeem all their engagements. Moreover, it now becomes possible to create a fictitious supply of a commodity, that is, to make people believe that a supply exists which does not exist.
Page 99 - Joseph Dorfman, The Economic Mind in American Civilization (New York: Viking Press, 1946), I, 370-71.
Page 125 - Lawrence E. Clark. Central Banking Under the Federal Reserve System (New York 1935).
Page 42 - ... and make him act with reference to the knowledge he has so acquired". 2 Williston, Contracts (rev. ed. 1936) Sec. 437. But a bank deposit is more than an ordinary debt, and the depositor's relation to the bank is not identical with that of an ordinary creditor.
Page 113 - November, 1910, in conjunction with the New York Chamber of Commerce and the Merchants
Page 40 - There is a fallacy in likening the dealings of a banker to the case of a deposit, to which, in legal effect, they have no sort of resemblance : money paid into a banker's, becomes immediately a part of his general assets; and he is merely a debtor for the amount.

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