The Socialist and labor star. [volume] (Huntington, W. Va.) 1911-1915, 1913-10-17
THE FEDERAL
RESER ACT
a Criticism by DR.. Carl F.
N. Sandberg.

It. cacn one making II CONFORM Ill
tie bit closer to the desires of the
bankers. but none causing any radical
changes. The majority for it was
very large. and included not only a
number of Democrats who in the dis
cuSsion had opposed the bill and at
tempted to introduce radical changes
10 il. but also of men of clear imam
ciaI ideas outside of the Democratic
party. 1t is now up for consideration
by the Senate.
The trainers of the Federal Reserve
Act undoubtedly having been bankers,
it is only natural that from their
point of view, the banks are the main
factors. our financial system arranged
for their benefit. and the people only
a seceSSary part of this system. This
is the all-permeating sentiment of the
bill. lust the same as it was Of the
AIdrich bill. The thin veneer of pre-
tended government control it provides
for. is only 10 he compared with the
sugar-coatinG on nauSeatlng pills.
The Federal Reserve Act is an at
tempt 10 still further cnSlave the peO-
pie. an attempt to get congress as
the accredited representative, 10 put
able features. by recognizing, orGani-
zing. authorizing and LEGALIZlNG
the Observation-Disclosures trust.
by recognizing. authorizing and LEG
ALIZING the use of unconstitutional
capitalist counterfeit wind money
(bank notes and bank checkS) the
money by. Of and for the banks and
for their profit, as mediums Of cX-
change. This 10 take the place Of
the money of the conStitutinn---the
United States genuine, certificate for
labor performed mOncy-thc money,
Of, by and for the people. and for
their use and by providing for the
addition of an unlimited amount of
such unconstitutional money of a lit
tie different kind. a pawn shop ticket
kind. for the use and profit of the
banks
Setting aside the provisions of the
constitution and the universally &C
ccpted maxim that Congress shall
have power TO coin money" the franz
crS Of the bill have assumed that the
banks shall have this power: that
this shall be their monopoly. and that
a confidinG people will accept as
money for honest work and kind of
dishonest chrom0S the banks. With
the aid of a friendly Congress and
administration. may see fit to tender.
Instead of more public money for
public use based upon and paid out
for public work performed. the bill
provides for more private money for
private profit, based upon private
property, II provides money for the
man who does not work---none for
the one who works 1t is for Capital
against Labor
The Federal Reserve Act ignores
absolutely the first principle for the
issuing Of money, that it must be in
the nature Of a certificate for public
work performed. and issued for such
work only. the certificate emitting the
holder to other things in exchange
for his work. 1t. the same as the
Emergency Currency Act. provides
for the issuing Of money on almost
any old thing" lying around in a
bank--none on labor. Work is a
factor not considered--only property.
The Federal Reserve Act stabs la
Dor in the back.
Even as depositors in banks. the
! common people are ignored. Instead
Of the bill providing more protection
and guarantee for them, most of the
present has been taken away. The
reserves is 70 be held as guarantee
for the depositors are decreased. and
may even be entirely done away with.
And IN case of a bank failure, the
bill provides for first and paramount
lien upon all its assets in favor of
the Federal Reserve Bank in prefer
ence to the depositors, The Federal