commercial banks - making money out of nothing



The bank hath benefit of interest on all moneys, which it creates out of nothing.”
William Paterson, founder of the Bank of England


“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented.”

Josiah Stamp, ex-governor of the Bank of England, 
 
“Banks ... create the means of payment out of nothing.”

Ralph M. Hawtry, former Secretary to the Treasury

“Commercial banks create ... money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower’s IOU.”  

The Federal Reserve Bank of New York
 

“This is a staggering thought. We are completely dependent on the Commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money, we are prosperous; if not, we starve. We are, absolutely, without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse, unless it becomes widely understood, and the defects remedied very soon.”

Robert H. Hemphill, Federal Reserve Bank, Atlanta, Georgia


“I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.”

Reginald McKenna, Chairman of the Midland Bank


“The banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it.”  
 
H.W. White, Chairman of the Associated Banks of New Zealand


“Whoever controls the volume of money in our country is absolute master of all industry and commerce … and when you realize that the entire system is very easily controlled by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

James A. Garfield, assassinated President of the United States


“Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to … provisions [which] would place our currency and credit system in private hands.”
Theodore Roosevelt


“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes … Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
 
Napoleon Bonaparte

“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”
Lord Acton (1834-1902) English historian

“The Government should create, issue, and circulate all the currency, and credits needed to satisfy the spending power of the Government, and the buying power of consumers.”

Abraham Lincoln

“I believe that [private] banking institutions are more dangerous than standing armies … If the American people ever allow private banks to control the issue of currency … the banks and corporations that will grow up around them will deprive the people of their property until their children wake up homeless on the continent their fathers conquered.”
 
Thomas Jefferson


“Until control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of sovereignty of Parliament and democracy is idle and futile … Once a nation parts with its credit, it matters not who makes the nation’s laws … Usury once in control will wreck any nation.”

William Lyon Mackenzie King, former Prime Minister of Canada


“The money power preys on the nation in times of peace, and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. It denounces as public enemies, all who question its methods or throw light upon its crimes."

“I see in the near future a crisis approaching that unnerves me, and causes me to tremble for the safety of our country. Corporations have been enthroned, an era of corruption will follow, and the money power of the country will endeavour to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands and the republic is destroyed.”
 

Abraham Lincoln

 
“A definite factor in getting a lie believed is the size of the lie. The broad mass of the people, in the simplicity of their hearts, more easily fall victim to a big lie than to a small one.”
 
Adolf Hitler
“If you don’t know who the sucker is, then you’re it.”

Warren Buffet, U.S. multi-billionaire
 
 
“The bankers own the world. Take it away from them, but leave them the power to create money and control over that money, and they will create that money right back again. Take this power away from bankers and all great fortunes will disappear, and they ought to disappear, for this then would be a happier, better world to live in … But if you want to continue to be slaves to the banker and pay the cost of your own enslavement, then let the bankers continue to create money and control credit.” 

Josiah Stamp


“The Government should create, issue, and circulate all the currency, and credits needed to satisfy the spending power of the Government, and the buying power of consumers.”

Abraham Lincoln


“Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to … provisions [which] would place our currency and credit system in private hands.”

Theodore Roosevelt
“Suppose that a million of money should be required to fit out an expedition. If the state issued a million of paper … the expedition would be fitted out without any charge to the people; but if a [private] bank issued a million of paper, and lent it to the government at 7%, … the country would be charged with a continual tax of 70,000 per annum.”

David Ricardo



“Whoever controls the volume of money in our country is absolute master of all industry and commerce … and when you realize that the entire system is very easily controlled by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

James A. Garfield, assassinated President of the United States



“The refusal of King George to allow the colonies to operate an honest money system which freed the ordinary man from the clutches of the money manipulators was probably the prime cause of the revolution.”   

Benjamin Franklin, Founding Father


“I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.”

Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924


“The banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it.”  

H.W. White, Chairman of the Associated Banks of New Zealand


“Banks lend by creating credit. They create the means of payment out of nothing.”

Ralph M. Hawtry, former Secretary to the Treasury

 

“Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower’s IOU.”  

The Federal Reserve Bank of New York

“This is a staggering thought. We are completely dependent on the Commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money, we are prosperous; if not, we starve. We are, absolutely, without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse, unless it becomes widely understood, and the defects remedied very soon.”

Robert H. Hemphill, Federal Reserve Bank, Atlanta, Georgia


Congressman Patman: "How did you get the money to buy those 2 billion dollars’ worth of Government securities in 1933?” Governor Eccles: “We created it.” Patman: “Out of what?” Eccles: “Out of the right to issue credit money.” Patman: “And there is nothing behind it, is there, except our Government’s credit?” Eccles: “That is what our money system is. If there were no debts in our money system, there wouldn’t be any money.”

Dialogue notated during hearings of the House Committee on Banking and Currency, September 30, 1941. ‘Governor’ Eccles was Chairman of the Federal Reserve Bank.

 

   



 

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