of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities, states and nation. At the head is a small group of banking houses... This little coterie...run our government for their own selfish ends. It operates under cover of a self-created screen...seizes...our executive officers...legislative bodies...schools...
courts...newspapers and every agency created for the public protection.”
N.Y. Mayor, John Hylan
Below you’ll find Part 4 of the fiat money system series.
Again, we’re quoting from The Legalized Crime of Banking and a Constitutional Remedy (1958), by Silas Walter Adams.
At this point, Adams is offering a way to solve the fiat money problem after describing “best” money (see Part 3 for this description) …
"The source of all deposit credits to the credit of the Government and the people, of course, will be Congress!
"And the only way new deposit credits may get on these books will be by an order of Congress, and the new deposits will be written in the Depository's account by the Treasurer.
"Money's coming in from foreign countries, of course, will have to be handled by a special department of the Treasury, under rules laid down by Congress, that no additional deposit credits from any source other than from and through Congress, may enter the Nation's money stream.
"There will be little bookkeeping required of the Depository's staff, other than crediting
deposits to the depositor's account who hands, them cash or a cheque, or debiting
another depositor's, account when a cheque he drew is presented to his depository.
"Of course they will keep an adequate supply of ‘United States tokens,’ money, on hand to cash cheques when presented and this will really be ‘cashing cheques,’ the transforming of deposits into currency.
"At the end of each day, each depository will send to the Treasury in Washington, a report of cheques cashed, deposits credited to customers, and deposits charged to depositors' accounts…
"and these reports will be quickly tabulated, and the Treasury will know how much money has been chequed out (or received by each and all Depositories in the Nation), and where the deposits are, Depository to Depository, and, the grand total of these each day must be the same as the grand total of the day before…
"for under the Treasury control and administration of the Depositories it is important that, no deposits can appear or disappear, without the fact being conveyed to the Treasury, then to Congress.
"One of the major objectives of the Congress will be to keep the supply of money constant from day to day.
"The constant volume of deposits transferable by cheque, will maintain a constant value of the dollar; for dollars are like spuds, the more you have of them (the nation as a whole) the less the dollar will buy; and the only value you can give a dollar, is its purchasing power.
"The Gold dollar coin never did that; nor any other fiat dollar.
"Only volume controls."
Part 5 of our Fiat Money System series can be found at America's Fiat Money System a Sham.
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