HOW THE LOOT IS GATHERED
EASURE now the reservoir of liquid capital—the hugest on this planet—siphoned into the coffers of the Federal Reserve System. The first pool comes from the capital of upwards of $100,000,000 commandeered at 6 per cent interest from the member banks. That is but a little pond or lakelet. Then there comes the ocean of money, over $1,800,000,000 conscripted at no per cent interest as reserve deposits from the member banks. This capital and these deposits—almost $2,000,000,000—are held practically in perpetuity. It is the hugest reservoir of liquid money on earth, it costs its manipulators and managers and controllers not one red cent of their own money and only a petty 6 per cent on a petty $100,000,000 of the gigantic sum. In other words, for an interest charge of practically $6,000,000 a year the Federal Reserve System gets the use of practically $2,000,000,000 or $2,000,000,000 at the absurd interest charge of three-tenths of one per cent!
That is what it really costs the money masters, the Invisible Empire of the U.S.A. and the Federal Reserve System—three-tenths of one per cent—for the practical control in perpetuity of the mightiest mass of liquid wealth ever massed on earth! Look at this in cold blood! Figure what it would mean to you if you could get the use of a petty $100,000 at three-tenths of one per cent interest! Then figure what it means to them to have the use of 20,000 times $100,000 at three-tenths of one per cent interest. Gives you an attack of vertigo, doesn't it?
Member banks and their stockholders and depositors furnish this titanic amount of practically $2,000,000,000 at three-tenths of one per cent interest and then member banks are graciously permitted to borrow from the Federal Reserve System their own money at rates varying from six to eighty-seven and one-half per cent per annum. Impossible, you say? Not even organized Federal Reserve banditry, not even Amalgamated Shylockery, would have the supernal gall to so sandbag productive industry?
Here are the figures taken from the records of the Federal Reserve Bank at Atlanta, from the records of the Federal Reserve Board at Washington and from the records of the Comptroller of the Currency at Washington. The Governor of the Federal Reserve Bank at Atlanta, the Governor of the Federal Reserve Board at Washington and the Comptroller of the Currency at Washington—each of them and all of them—are hereby challenged to refute or question their absolute correctness and authenticity.
In a small town in Alabama was struggling a small National Bank. Its capital was $25,000 and its surplus was $12,500. It was a compulsory customer of the Federal Reserve Super-Shylockery sucking blood at Atlanta, Georgia. Its money had been commandeered by law to buy stock in the Super-Shylockery. Its reserve deposits had been conscripted by law to feed pap to the same parasite. It served the cotton industry—the breath of industrial life in its territory. Its name is not given because identification might work it great harm—but the Federal Reserve Oligarchs know its identity. Don't you ever doubt it.
This little National Bank in Alabama was in the grip of the Federal Reserve Octopus. It had to move the cotton crop in its territory. Farmers, planters, merchants—and in short, all industry in its territory including its own salvation—depended on the moving and on the marketing of the cotton crop. It was "root hog or die" and this little bank rooted and was looted precisely in this wise: It had to borrow from the Federal Reserve Super-Shylockery at Atlanta. It had no other house of refuge. It had to borrow something over $100,000 from the Federal Reserve Bank at Atlanta and for the week's period ending on July 31, 1920, it was charged and it paid as high as thirty-one per cent per annum interest! Two months later when its loan reached as high as $115,000 it was charged and it paid as high as eighty-seven and one-half per cent per annum interest to this subter-human super-Shylock. For the two weeks ending on September 30, 1920, it was borrowing an average of $115,211. Two weeks' interest at six per cent would have been $288, but the records show that this little bank paid the Federal Reserve Pawnbrokery at Atlanta for interest on that amount for that time $2,189—running all the way from six to eighty-seven and one-half per cent per annum! The actual average time for this loan for that two weeks' period was almost exactly at the rate of forty-five per cent per annum, or at the rate of $51,884 per year for the use of $115,211! In about nine months that loan of $115,211 at that rate would have eaten up the capital and surplus of that little Alabama National Bank. Was that banking or was it putrid pawnbrokery? Oughtn't the Federal Reserve Bank at Atlanta to put the three ball sign of pawnbrokery over its portals?
And yet you read subsidized headlines sprawled athwart the columns of a lick-spittle press about "Agricultural Interests Fostered by Federal Reserve Banks" and "Farmers Aided by Federal Reserve System" and messes of the like "bull" and "bunk" fed out by paid press agents and absorbed by a befooled people chained to such pawnbrokery! "Aided" by a sandbag! "Fostered" by pawnbrokery thuggery! It's enough to make a "kike" pawnbroker sob and moan at his soft-heartedness. It's enough to make Olomon Solomon Levi pull down his three balls and wail in the Synagogue!