Montana labor news., 1946-08-29
Who Owns the Federal Reserve
system?
System!

words: "Redeemahle in lawful money
at the United States Treasury or at
any Federal Reserve bank The only
thing that lawful money could possibly
be is money issued by the United
States government Therefore. il Is
perfectly clear that the government Of
tho United States must stand behind
and. If called upon. redeem every dol.
lar of Federal Reserve notes which
Is issued
BY spending the Sl5l 0nu. 600 to pur.
chase the capital stock of the central
Federal Reserve banks from the pri
vate member banks congress would do
the following things for the American
people:
First. Acquire al accumulated sur.
plus Of over 5000. 100000.
Second Reduce the public debt by
some S22. 00o. 600, ooo. the amount of
United States bonds, notes, certlfi-
Gates of Indebtedness. Treasury bills.
and guaranteed securities held by the
ttutIdl DdlIhS vi AuSuSl -, lItD anu
bought with Reserve bank credit.
which. as has been explained. is the
credit Of the United States and the
people thereof.
Third. Restore to Congress its 0 IN
s%ritutional duty and right TO issue the
Nations money and regulate It's value.
The Federal Reserve banks are now
the bank of issue of America. At such
they should be-they should always
have hecn-an agency Of Congress.
and the property of the American peo-
pie.
Fourth: Place our nation in the
position Of being able TO solve the
problem of Understanding public
debt.
Fifth. The purchase by Congress Of
The twelve central banks would meal
that the nation could carr its way out
of debt.
When the Federal Reserve Board
purchased-as it normally does-out
standing government bonds from mem
Der banks in order TO expand the
volume OF money and credit IN cir
clllation, in line with increasing pro
duction. those bonds would belong to
agency of the government. They
would in effect have been retired with
out the necessity Of any tax revenues
being used to do so. Interest upon
such bonds would. of course. be saved
Hence by increasing their production
the people Of the nation would be able
earn their way out Of debt
The Federal Reserve banks are to-
all intents and purposes the bank of
Of the United States. they put
Federal Reserve notes. our principal
currency, into circulation. They have
been given gold certificates which give
them a lien on over $40 10000 OF
the gold in Fort Knox. They create
money AT will in the form OF Federal
Reserve credit and thus obllgate all
make that credit good. They execute
the openmarket policy Of the board.
which determines largely the price Of
securities as well as the
volume of money IN circulation But
the government and people OF the
United States own not one penny Of
stock in the Federal Reserve banks.
These belong lock. stock and barrel
to the commercial banks which arr
of the system.
The Federal Reserve banks should
become the property Of the American
people and they should be operated
as one central bank Of issue under a
specific mandate passed by the con
gress. Their sole purpose should be 10
serve the general welfare Of all the
American people, their agriculture.
commerce. and industry by providing
at all times a dollar Of steady, stable
and constant buying power.