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Musicmystery -> RE: H.R2755, Federal Reserve Board Abolition Act (11/27/2008 6:52:45 AM)
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quote:
Our economy did just fine from the 1790's and by many estimates suffered approx. 17% inflation over 120 years until 1913 when the FED bill came to the senate. The fed was formed under the ruse (lie) that we needed it to provide stability in markets and minimize inflation.
Not exactly a rosy ride--
from the U.S. History Encyclopedia:
"Founded in 1781, the nation's first bank, the Bank of North America, was possibly the first central bank. Certainly, the first Bank of the United States (1791–1811), serving as fiscal agent and regulator of the currency as well as doing a commercial banking business, was a central bank in its day. So too was the second Bank of the United States (1816–1836). It performed that function badly between 1817 and 1820, but improved between 1825 and 1826. The Independent Treasury System, which existed between 1840 and 1841 and between 1846 and 1921, was in no sense a central bank. A great fault of the National Banking System (1863–1913) was its lack of a central bank. The idea, and even the name, was politically taboo, which helps explain the form and name taken by the Federal Reserve System.
"The faults of the National Banking System, especially perversely elastic bank notes—the paradox of dispersed legal reserves that were unhappily drawn as if by a magnet to finance stock speculation in New York—and the lack of a central bank to deal with the panics of 1873, 1884, 1893, and 1907, pointed out the need for reform. After the 1907 panic, a foreign central banker called the United States "a great financial nuisance." J. P. Morgan was the hero of the panic, saving the nation as if he were a one-man central bank. However, in doing this, he showed that he had more financial power than it seemed safe for one man to possess in a democracy. The 1912 Pujo Money Trust investigation further underlined his control over all kinds of banks. (Congressman Arsene Pujo, who became chairman of the House Banking and Currency Committee in 1911, obtained authorization from Congress to investigate the money trust, an investigation highlighted by the sensational interrogation of Morgan.) Meanwhile, the Aldrich-Vreeland Currency Act of 30 May 1908 provided machinery to handle any near-term crisis and created the National Monetary Commission to investigate foreign banking systems and suggest reforms. In 1911, Republican Sen. Nelson Aldrich proposed a National Reserve Association that consisted of a central bank, fifteen branches, and a top board controlled by the nation's leading bankers, which critics said J. P. Morgan, in turn, dominated. The proposal never passed, and the Democrats won the 1912 election. They accepted the groundwork done by Aldrich and others, but President Woodrow Wilson insisted that the nation's president choose the top board of this quasi-public institution. Democratic Rep. Carter Glass pushed the bill through Congress."
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