The Federal Reserve and its Origins
- The most successful thieves have done their work in plain sight, while the owners are not home.
- Most importantly, the Fed acts as an emergency lender, and without it, the economy would have collapsed in the nineteenth and early 20th centuries.
The Bankers' Dream
- Before the Fed's founding, bankers complained about US currency's lack of "elasticity"
- They wanted a central bank that could supply money when needed
- A common reserve ratio established, then no bank could expand credit more than its rivals
- All banks would inflate in harmony and there would be tranquility and profits for all
The Pujo Committee
- Frequent speeches by Wisconsin senator Robert LaFollette and Minnesota congressman Charles Lindbergh brought public outrage over the "money trust" to a boil
- In response to the accusations, a new subcommittee, led by Louisiana congressman Arsène Pujo, held hearings from May 1912 until January 1913
- The hearings followed the usual pattern, bringing forth immense quantities of statistics and testimonies from bankers themselves
- Neither man was allowed to testify because they were deemed “indicateors” of Wall Street
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