NYC Mayor John Hylan, House Banking Committee Chairs on monetary reform

This is my paper for The Center of Process Studies’ conference, Money-Creation in a Finite World (free and open to the public, April 10-12, 2012; Claremont Colleges, CA):

Money and credit as public services for full-employment, optimal infrastructure, ending debt slavery: Epic proponents, related history of US government and corporate media, partnership for Occupy victory

It’s divided into these 11 parts for articles (links added with each new section):

Summary:

Monetary and credit reform is a policy objective to end transfer of trillions of the “99%’s wealth to an oligarchic “1%.” The US banking collusion only and always co-exists within a larger oligarchy with government for legal protection, and media for public propaganda. This paper presents histories in monetary reform and US government crimes in war suppressed by today’s US corporate media’s history texts and news journalism. When the oligarchy’s voice is professionally exposed as obviously and egregiously lying in omission and commission in claims of central importance of the past and present, government and corporate media loses credibility in an “emperor has no clothes” transformation. Refutation of the oligarchy’s voice with objective and independently verifiable facts, especially in light of current War Crimes and Constitutional destruction, supports our policy goal for monetary and credit reform because the public will seek alternative voices to build a brighter future. To support our goal of upgraded economic policies, we should be open to synergy with ecological and resource-based economic models, and network with Occupy. 

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John F. Hylan (1868-1936) was Mayor of New York City from 1918 to 1925. New York has long been the US banking and financial headquarters, with the mayor’s office about a half-mile from the New York Stock Exchange:

Hylan has two revealing communications in strong argument for monetary reform. The first is four paragraphs from a speech he made in Chicago on March 26, 1922 and reported in the New York Times the following day in the article titled, “HYLAN TAKES STAND ON NATIONAL ISSUES” (and here with immaterial other commentary). The next are 12 extensive paragraphs reported by the New York Times on Dec. 10, 1922 in the article titled, “HYLAN ADDS PINCHOT TO PRESIDENCY LIST; FORESEES A REVOLT.”

March 26, 1922:

“The warning of Theodore Roosevelt has much timeliness today, for the real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over city, state and nation. Like the octopus of real life, it operates under cover of a self-created screen. It seizes in its long and powerful tentacles our executive officers, our legislative bodies, our schools, our courts, our newspapers, and EVERY agency created for the public protection. It squirms in the jaws of darkness and thus is the better able to clutch the reins of government, secure enactment of the legislation favorable to corrupt business, violate the law with impunity, smother the press and reach into the courts.

To depart from mere generalizations, let me say that AT THE HEAD of this octopus are the Rockefeller-Standard Oil interests and a small group of powerful banking houses generally referred to as the INTERNATIONAL bankers. The little coterie of powerful international bankers virtually run the United States government for their own selfish purposes.

They practically control BOTH parties, write political platforms, make cats paws of party leaders, use the leading men of private organizations, and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business. They connive at CENTRALIZATION of government on the theory that a small group of hand-picked, privately controlled individuals in power can be more easily handled than a larger group among whom there will most likely be men sincerely interested in public welfare.

These international bankers and Rockefeller-Standard Oil interests control the majority of newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of office public officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government. It operates under cover of a self-created screen [and] seizes our executive officers, legislative bodies, schools, courts, newspapers and every agency created for the public protection.”

Dec. 10, 1922:

“What each party wants is a man whose sympathies are with the people and not with gold, a candidate with a proven progressive record. If the international bankers and the food profiteers control both parties, there undoubtedly will be a third party, but it strikes me that they won’t be able to.

One of the most astounding facts about our American life is that the wealth and property of the country and the control of the machinery of government are in the hands of less than 2 per cent of the inhabitants. That is to say, a small group of excessively wealthy individuals, members of the Republican and Democratic Parties alike, have, through the exercise of powerful, sinister and, too often, unlawful influence, usurped the government and seized public property on such a wholesale scale that they have become the virtual dictators of the destinies of more than 110,000,000 people (the US population at the time). That is a situation which, to my mind, constitutes the greatest menace to the safety of our republic.

A small group of international bankers and money lenders, public utility exploiters and tariff beneficiaries have actually dictated nominations for offices up to the Presidency. They have placed the slickest, cleverest, and most cunning manipulators in official positions, even in the minor posts, where they could be of service when called upon by the invisible power which, utterly devoid of all humanity, seeks but to wallow in riches.

This invisible power, whose black and menacing form hovers over every fireside in the land, stealthily and secretly reaches out and seizes in its filthy paws our vaunted institutions of free government with the same ruthlessness and relentlessness as the grim specter of death pursues its numberless victims.

So absolute is the power of America’s secret dynastic rulers that they have, without hindrance, written the very platforms and pledges of political parties, and because of substantial contributions to campaign chests they have arrogated to themselves the right to dictate the governmental policies of the administration elected to office regardless of party.

Woe to the public officials who dare to resent their dictatorship! If there be such public officials who will not submit to their imperious dictation, then the flood-gates of lying press propaganda are released, sweeping the unhappy public servant to an earthly as well as political grave, or compelling him to compromise with his conscience and become their subservient tool to the end of his term.

I say to you in all candor that either alternative might have been my lot, and that I might not now be Mayor of the City of New York if one of the greatest, most useful of citizens and, through his publications, the most powerful individual in the United States, William Randolph Hearst, had not enabled me, through the columns of his newspapers in greater New York to present my side of the city administration’s case to the people and thus offset the deluge of mendacious misstatements in the opposition press.

It has also become increasingly obvious that these wealth lords are able, in many instances, to place their own hand-picked Judges upon the Bench, thus insuring decisions in favor of organized corporate greed at the price of human life; while the instances of promotion of such Judges in recent years has been an open secret to us all. This is said with all due respect to the courts and with a genuine appreciation of the exemplary conduct and superior attainments of our judiciary as a body.

…The wealth lords of America are already busily engaged in attempts to insure their control of the nominees of the Republican and Democratic Parties in 1924. They will endeavor at that time to place in nomination at both conventions candidates whom they can control. If this can be accomplished, the election will be of small interest to them, for the people will have to elect one or the other of their candidates.

It would seem the part of wisdom for the people in every State in the Union to watch carefully the maneuvers of corrupt big business and to organize themselves thoroughly to ensure the nomination of men in both the major parties of fighting personalities and progressive tendencies. Both the Republican and Democratic Parties must adopt progressive platforms attuned to the needs of the times and select men who will carry out such platforms if they expect to receive the support of the people generally. Only in this way may we ever hope to be liberated from the economic serfdom and human slavery to which we have been so long subjugated.

I cannot escape the feeling that the most recent movement inspired by the worst kind of bigotry is another attempt engineered by the ruling minority or money lenders of America to create dissension among the different creeds and races of our people, thus diverting attention from their own sinister machinations.

The regrettable feature of this unwholesome situation is that there are some among us who are unwittingly mislead into fellowship with such pernicious organizations. Even a few clergymen who are supposed to extol before the world the virtues of charity and forgiveness and to stand out as living exemplars of these humane doctrines have been found susceptible to the clink of dirty gold which such membership places upon their palms.”

These revealing comments come from two Chairpersons of the House Banking Committee, totaling 24 years of service in that position of comprehensive insight into American banking:

Louis McFadden (1876-1936) was Chair from 1919-1931, and Wright Patman (1893-1976) was Chair from 1963-1975. McFadden was the president of the Pennsylvania Bankers’ Association (1914-15) and president of the First National Bank of Canton, Pennsylvania (1916-25). He had been Chairman of the House Banking and Currency Committee for 12 years when he made a speech on the House floor of the summation of his analysis of the Federal Reserve System. Two paragraphs from his speech are excerpted below.

Wright Patman was a Representative in the U.S. Congress from 1929 to his death on March 7, 1976, and on the House Committee on Banking and Currency for 40 years. For 20 of those years, he introduced legislation to repeal the Federal Reserve Banking Act of 1913. A paragraph excerpt of a House floor speech from Mr. Patman follows Mr. McFadden’s observations.

“Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and iniquities of the Federal Reserve Board has cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

Some people think the Federal Reserve banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into States to buy votes to control our legislation; and there are those who maintain international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.” – Rep. Louis McFadden, June 10, 1932. Source: Congressional Record, June 1932, pg 12595-12603.

“When our Federal Government, that has the exclusive power to create money, creates that money and then goes into the open market and borrows it and pays interest for the use of its own money, it occurs to me that that is going too far. I have never yet had anyone who could, through the use of logic and reason, justify the Federal Government borrowing the use of its own money… The Constitution of the United States does not give the banks the power to create money. The Constitution says that Congress shall have the power to create money, but now, under our system, we will sell bonds to commercial banks and obtain credit from those banks. I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue. I make that statement after years of study.” – Wright Patman: excerpts from September 29, 1941, as reported in the Congressional Record of the House of Representatives (pages 7582-7583).

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