Archive for June 2013

MONETARY HISTORY CALENDAR June 24-30

06/30/2013

JUNE 24

1996 – LEWIS V. UNITED STATES (AMENDED DECISION OF THE US COURT OF APPEALS, NINTH CIRCUIT)
“Federal reserve banks are not federal instrumentalities for purposes of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors. Federal Reserve banks…are locally controlled by their member banks; banks are listed neither as “wholly owned” government corporations nor as “mixed ownership” corporations; federal reserve banks receive no appropriated funds from Congress and the banks are empowered to sue and be sued in their own names. . . .”

JUNE 30

1812 – FIRST US TREASURY NOTES AUTHORIZED BY THE UNITED STATES
Treasury notes are promise to pay notes to borrowers to raise revenue. The US needed funds to fund the War of 1812. Rather than print US money (such as “Continentals” – an interest- and debt-free money issued by the Continental Congress to pay for the Revolutionary War), the US government followed a different course – to issue notes to borrowers with promises to pay the principal with interest at a later date. The original interest rate was 5.4%. Wars cause indebtedness. Bankers tend to like wars since they tend to create financial dependency of nations to bankers. Thomas Edison would later say about Treasury bonds, “If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good…”

2005 – PUBLICATION OF “A MATTER OF INTEREST” BY WILLIAM HIXSON, CANADIAN ECONOMIST
“The very idea of a government that can create money for itself, allowing banks to create money that the government then borrows, and pays interest on, is so preposterous that it staggers the imagination. Either everyone in government in charge of the procedure is lacking in intelligence or they have been bought and paid for by those who profit from their skullduggery and their infidelity to the public interest.”

JUNE (not certain of exact date)

1992- UPDATED PUBLICATION OF MODERN MONEY MECANICS BY THE FEDERAL RESERVE BANK OF CHICAGO
“The actual process of money creation takes place in commercial banks. Banks can build up deposits by increasing loans and investments…This unique attribute of the banking business was discovered several centuries ago…At one time, bankers were merely middlemen. They made a profit by accepting gold and coins for safekeeping and lending them to borrowers. But they soon found that the receipts (bank notes or IOUs) they issued were being used as if they were a means of payment. These receipts were acceptable as if they were money since whoever held them could go to the banker and exchange them for metallic money…Then bankers discovered…that they could make loans merely by giving borrowers their promises to pay (bank notes). In this way banks began to create money…More notes (IOUs) could be issued than the gold and coin on hand, because only a portion of the notes outstanding would be presented for payment at any one time…Demand deposits (checks) are the modern counterpart of bank notes. It was a small step from printing notes to making book entries to the credit of borrowers, which the borrowers in turn, could ‘spend’ by writing checks.”

ACTION ALERT: Tell Ohio Legislators to Cut Increased Corporate Access Provision in Budget Bill

06/26/2013
DOCers:
This amendment seems to an attempt in the Ohio Legislature to facilitate corporate domination of the Ohio government; it has no business being amended to the budget. It should be opposed. Contact your state representative and senator.

John Howell

AMENDMENT TO STATE BUDGET BILL WOULD PERMIT UNLIMITED CONTRIBUTIONS FROM CORPORATIONS AND WEALTHY TO CAUCUS COMMITTEES
Tell your State Senator and Representative to Oppose this Amendment
Find your Ohio Senator at http://www.ohiosenate.gov/index
Find your Ohio Representative at http://www.ohiohouse.gov/index

An 11th hour amendment to the Ohio biennial budget bill would exempt business corporations and wealthy individuals from existing campaign finance laws (ORC Section 3517).

Specifically, the amendment allows direct contributions (or investments) by corporations and wealthy individuals to legislative campaign funds or caucuses for expenses not directly related to elections —  for office rent, equipment, supplies, and operating costs. Such contributions would be redefined as “gifts” and, thus, would be exempt from existing state campaign finance laws — which are already among the highest levels in the nation.

The legislative campaign funds or caucuses that the exemptions would apply to are the House Democratic Caucus Fund, Ohio House Republican Organizational Committee, the Ohio Senate Democrats and the Republican Senate Campaign Committee.

Though the amendment applies to all artificial legal entities (which includes unions and non-profit corporations), the reality is that business corporations already spend more on elections that other artificial entities under current state campaign laws. Providing exemptions simply permits those with the most money (both corporations and wealthy individuals) to contribute/invest even more money in our political system — further corrupting the political system.

Contact your State Senator and Representative. Ask them:
Why was this amendment added to the budget bill and not a stand alone piece of legislation?
What does this amendment have to do with the state budget?
And why was the amendment added just days before the entire 2 year budget is to come to a final vote?

Tell them to remove this amendment.

Thank you.

Next DOC meeting – Wednesday, June 12, 7 p.m., at UCM (18 N. College St.)

06/12/2013

Agenda – Planning for a series of public events to take place throughout the remainder of this calendar year and into the next.

The Steering Committee took suggestions which came out of the small group discussions at the last DOC meeting and distilled them into the following proposal to be considered and further developed by the whole group. We need your input on this.

The idea is to hold, starting in September, well publicized public meetings on each of the following topics. The people who volunteered to lead the planning for each of the public meetings are also indicated.

1. Energy – Greg Howard
2. Agriculture & food supply – Greg Howard
3. Healthcare – Gini Coover with Arlene Sheak
4. Banking & monetary policy – John Howell and Bob Whealey
5. Information & education – Gini Coover
6. Control of the political process – Bill Safranek
7. Citizens fight back – finishing the democratic process – Dick McGinn

We will generate a short series of questions to be addressed by each session to be used for publicity purposes and a somewhat longer list of questions to be used in each session.  A start has already been made and will be available at the meeting.

The tentative schedule for the sessions through October is as follows:

July 10, at the Athens Public Library – Showing of the film “Carbon Nation” in conjunction with state-wide showings by Environment Ohio
August – Showing of “Journey to Planet Earth: Plan B“ also in conjunction with Environment Ohio
September – Healthcare
October – Citizens Fight Back – Finishing the Democratic Process

There are of course many other organizations working on these issues. The role of DOC is to emphasize that problems in all of these areas are driven by the fact that public policy making has been taken over by private interests, driven largely by the corporate world, which is required by law to serve above all its return to its stockholders.

Although skirmishes can be won here and there, the problems can’t be substantively addressed without a constitutional amendment guaranteeing human rights for humans, and only for humans, not their creations or their possessions, such as corporate entities, and restoring the government’s authority to regulated campaign expenditures.

MONETARY HISTORY CALENDAR June 10 – 16

06/12/2013

JUNE 10

1816 — DELEGATES CONVENE CONSTITUTIONAL CONVENTION IN INDIANA
Private banking corporations were banned altogether by the Indiana Convention in 1816 and the Illinois Constitution in 1818. Voters in Wisconsin, plus four other states, rewrote existing consititutions requiring popular votes on every bank charter recommended by their legislatures as a result of corrupt banking practices associated with issuing bank notes. Only private banks that didn’t issue money (bank notes) operated in these states.

1932 – QUOTE OF LOUIS MCFADDEN (R- PA), CHAIRMAN OF THE US HOUSE BANKING AND CURRENCY COMMITTEE
“We have in this country one of the most corrupt institutions the world has ever known.  I refer to the Federal Reserve Board and the Federal Reserve Banks.  Some people think the Federal Reserve Banks are U.S. government institutions.  They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people the United States for the benefit of themselves and their foreign customers.  The Federal Reserve banks are the agents of the foreign central banks.  The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board.”

JUNE 15

1836 – CHARTER (LICENSE) FOR SECOND NATIONAL BANK OF THE UNITED STATES REPEALED
This was the third quasi national bank of the former British colonies — following the Bank of North America (1781-1785, charterd by the Continental Congress) and Bank of the United States (1791-1811, chartered by the US Congress). While called a “national” bank, it was not public but actually a commercial/corporate bank with the power to issue money directly. Early on, it issued a huge amount of money (more than 20 times its reserves) as loans that led to financial speculation and large corporate profits. A year later, it stopped issuing loans, resulting in a severe contraction of the money supply. This led to massive bankruptcies and the Panic of 1819. When President Andrew Jackson threatened to repeal its charter, the Bank’s leaders used its power to restrict money circulation to cause another depression. Bank President Nicolas Biddle wrote, “Nothing but widespread suffering will produce any effect on Congress…Our only safety is in pursuing a steady course of firm restriction – and I have no doubt that such a course will ultimately lead to restoration of the currency and the recharter of the Bank.”

President Andrew Jackson said this about the bank, “The immense capital and peculiar privileges bestowed upon it enabled it to exercise despotic sway over the other banks in every part of the country. From its superior strength it could seriously injure, if not destroy, the business of any one of them which might incur its resentment; and it openly claimed for itself the power of regulating the currency throughout the United States. In other words, it asserted (and it undoubtedly possessed) the power to make money plenty or scarce at its pleasure, at any time and in any quarter of the Union, by controlling the issues of other banks and permitting an expansion or compelling a general contraction of the circulating medium, according to its own will.”

JUNE 16

1929 – DEATH OF VERNON PARRINGTON, HISTORIAN
“The only safe and rational currency is a national currency based on the national credit sponsored by the state, flexible and controlled in the interests of the people as a whole.”

1933 – PASSAGE OF GLASS-STEAGALL ACT
Actual title was Banking Act of 1933. Considered one of the most important post Depression laws, the legislation created the Federal Deposit Insurance Corporation, which protected bank deposits. It also instituted several bank reforms to curb speculation that caused the Depression. One important provision was to create a firewall between Main Street depository banks and Wall Street investment banks. The Act was repealed by the Gramm-Leach-Bliley Act in 1999