Congressman Wright Patman, in 1942, Explained Exactly How the Federal Reserve and its Private Banking Ownership is Stealing the Wealth of Every American.

Below, we provide for you an extremely important quote from Congressman Wright Patman regarding money and banking.

”The Government of the United States, under the Constitution, has the power, andit is the duty of the Government, to CREATE ALL MONE…

”This being true, why should Congress sit idly by and allow the (private) banks to expand $20 to $1, or even $50 to $1, in order to finance the war and the other costs of Government when it is nothing more nor less than Congress permitting the credit of this Nation to be farmed out for the selfish benefit of private banking corporations?”

Congressman Wright Patman: Congress Gives Trillions!

”The Treasury issues both money and bonds. Under the present system it sells (deposits) the bonds to a (the) bank(s) that creates money (bank deposits)!

”Then, if the bank needs the actual money, the actual printed greenbacks (or coins) to pay the depositors, the Treasury will furnish that money to pay the depositors.

”In that way Congress farms out the use of the government’s (nation’s) credit absolutely free. It is the duty of Congress to issue – coin or create-money and regulate its valueunder the Constitution.

”This great privilege has been farmed out free to the privately owned banks by Congress. This privilege is worth billions of dollars a year to those exercising it under laws passed by Congress.

”The United States Treasury prints and issues both the interest-bearing bonds andthe money (bills and coins) which is another form of Government obligation, notinterest-bearing.”

Congressman Wright Patman: Fed is Private Corporation

”The Reserve banks are owned by the private commercial banks, including the bank that bought the bonds.

”The Federal Reserve banks are Federal in name only; they are owned lock, stock and barrel by the private commercial banks, which have invested a very small sum of money upon which they get 6% per annum.”

Congressman Wright Patman: Why Pay Interest?

”Remember, the U.S. Treasury has caused the Bureau of Engraving and Printing to print and deliver to the Federal Reserve Bank a million dollars in U.S. Government bonds, interest bearing, and then it added a million dollars in currency. Each is a Government obligation.

”The Federal Reserve Bank delivers to the local commercial bank the million dollars in bonds and obtains for the Government a million dollars in bank deposits which it checks out to pay its debts.

”Then the Reserve Bank delivers to the local commercial bank the million dollars in cash.

”The present banking system, thru the use of the Government’s credit, as now (1943) proposed to finance the war can issue more than $240 billions in money, and every bit of it will be issued on the banks’ $8 billions capital and surplus and the Government’s credit.

”Of course, it will be the Government’s credit that will make it secure, as the $8 billions will be insufficient for that purpose… TheGovernment pays interest for the use of its own credit.

”Who created such a system that is costing the taxpayers $1,750,000,000 this year (1942) and will cost the taxpayer $4,500,000,000 a year (years and years ahead)when our anticipated expenditures for [our] war purposes are made?

”The answeris that such a system was built up over a long period of years (from 1781 to 1942).”

Congressman Wright Patman: Congress Paid Off

”Congress (has) passed monetary laws without giving a great deal of attention to them, being told (by bankers who had written the bills) that money was (is) a mystery and that few people understood it and those understanding it were the ones wanting the laws.

”It was (and is) smart (a lecky) for a Congressman to say, ”All I know about money is that I don’t have enough of it,” or some similar crack that invariably drew laughter and applause, and the bill was passed (practically as the bankers wrote it).”

Congressman Wright Patman: Dissenters Discredited

”If some person who had given the subject thought and consideration attempted to show how the credit of the Nation was being farmed out FREE to privately owned commercial banks, he could be silenced very quickly by a whispering campaign that he was a monetary crackpot, or a green backer, who wanted to flood the country with worthless printing-press money.

”Then, with a few references to continental currency, fiat money, and German inflation, the bill was sent on its way. All such bills were referred to as a bill to further strengthenour sound currency.

”I am opposed to the Government, which has the sovereign and exclusive power tocreate money, paying private bankers for the use of its own money.

”The private bankers do not lend their money to the Government; they lend the Government’s money to the Government, and collect interest annually.

”I want to say that the highest authority and best in our Government, the President of the Federal Reserve System, the Secretary of the Treasury, as well as all informed people, admit it.

”The banks say they lend the depositors’ money; ‘we’re responsible for it, and if we don’t get any interest for its use, we just won’t buy any bonds.’

”But they know that is not so for the President of the Federal Reserve System, Mr. Eccles said, ”We create credit to buy bonds. That is all we have ever done. That is the way the Federal Reserve System operates. It creates money”.

”The Secretary of the Treasury, Mr. Morgenthau said: ”When commercial banks buy bonds they do not pay for them with real cash taken from their vaults (nor out of their capital or surplus – out of no existing funds), but by placing on their books newly created bank deposits to the credit of the Government”.”

The Legalized Crime of Banking and a Constitutional Remedy (1958), by Silas Walter Adams