Banking on Never-Ending Power and Rights by Greg Coleridge

It is well that the people of the nation do profits, despite such products and rates, transparency of financial records, not understand our banking and monetary instruments being responsible for the 2008 personal liability of directors for any debt, system, for if they did, I believe there financial implosion. directors having to reside in the county would be a revolution before tomorrow where the bank was chartered, and a morning. - Henry Ford This “financialization” of our economy prohibition of the bank to engaging in the increases profits and wealth of the buying or selling of any goods, wares, Banking and other financial corporations finance, insurance and real estate (FIRE) merchandise or commodities. (hereafter referred to simply as banking sector and makes our nation more corporations) are unlike any other subset economically dependent on that sector to Public officials and courts often failed to of corporate entities. Their uniqueness has drive economic growth. Increased profits, renew or actually revoked charters of to do with their one-of-a-kind “product” -- wealth and economic dependency have banking and insurance corporations that money. also increased their political power and violated the terms of its charters. This influence -- guaranteeing further profits, happened frequently at the state level. The fact that individuals (poor to rich), wealth and dependency. A vicious cycle businesses (small to big) and governments increasing both the financial and political The wording from this decision of an (local to national) all require money to power of banking corporations rages on Ohio Supreme Court case represented function means banking corporations with no end in sight. public sentiment toward banks: occupy prominent places in our national “…[A] banking institution is a public economic and democratic spaces. Given Controlling the power of institution, appointed for public purposes the increasing omnipotence of money in banking corporations – never legitimately created for private determining who gets elected, what purposes… its operations are subject to political voices get heard, when laws get Banking corporations didn’t use to have the control of that public, who may, from passed, where programs get funded and so much power. time to time, as the public good may how regulations are enacted and require, enlarge, restrain, limit, modify its implemented, understanding the role of powers and duties, and, at pleasure, POCLAD’s research on the connections 1 banking corporations in the creation and between the legal and social movement dispense with its benefits.” circulation of our nation’s money and in history of our nation and individual states their lock-down control of our “monetary over many years revealed the strident In repealing the charter of the German system” is essential to (re)gain political efforts of those committed to self- Bank of Wooster, the Ohio legislature and economic self-governance. governance to control banking stated: corporations. “It shall be the duty of the court of The political influence of banking common pleas... or any judge of the corporations has increased over the last Charters (i.e. licenses to do business) of supreme court...to restrain said bank, its several decades as the economy has banking and insurance corporations officers, agents and servants or assignees, shifted from producing real goods and enacted by state legislatures early in our from exercising any corporate rights, services to creating, packaging, buying nation’s history were rigid to ensure these privileges, and franchises whatever...and and/or selling ever more diverse, complex, entities didn’t become powerful. Charters force the bank commissioners to close the risky and outlandish loans, insurances and were considered democratic tools. While bank and deliver full possession of the other financial “products.” Money from all early corporate charters spelled out banking house, keys, books, papers, lands, banks that formerly were loaned to specific conditions, bank charters were the tenements, goods, chattels, moneys, companies that produced needed property and effects of said bank, of every most limiting. 2 consumer products remain heavily kind and description whatever...” invested in options, futures and other Examples of bank charter conditions financial “instruments” (i.e. money included a short duration permitting the Violators of the charter’s terms “[S]hall invested in money) that yield greater bank to conduct business, low interest be deemed guilty of a crime, and, upon conviction, thereof, shall be imprisoned in to be created. No more, in fact, was people. Coxey's Army proposed two bills. the penitentiary and kept at hard labor, not issued. The first, a "Good Roads Bill”, would less than one, nor more than ten year.” 3 help farmers through $500 million issued Colonial scrips, Continentals and by the federal government in legal tender There was strong opposition to the Greenbacks weren’t examples of “specie” notes, or Greenbacks, to construct rural formation and continuation of each of the money (paper money backed by gold or roads. The second, a noninterest-bearing first two privately operated central banks silver) but “fiat” money – money declared bonds bill, would empower state and local of the United States – the Bank of the by those governments to be legal and governments to issue noninterest-bearing United States (1791-1811) and Second accepted for certain payments. They were bonds to be used to borrow legal tender Bank of the United States (1816-1836). money created by public governments to notes from the federal treasury. This Both were chartered for limited durations be spent into circulation to serve as a money would be used to build urban and purposes. Both charters weren’t medium of exchange, a store of value and libraries, schools, utility plants and renewed due to economic and political all the other purposes that money serves. marketplaces. Millions of jobs would have fears. These forms of money were not borrowed. been created -- debt-free. No principle or interest had to be repaid. “I sincerely believe…that banking They were debt-free currencies. For the Banks protect their corporate establishments are more dangerous than most part, they were also inflation-free. asses(ts)…and expand their standing armies,” 4 said Thomas Jefferson There was no economic or political who opposed renewing the charter of the dependence by governments to power first Bank of the US. President Andrew commercial banking corporations. Jackson was the major force behind the Banking corporations hated Greenbacks. non-renewal of the Second Bank of the Greenbacks are the only instance that US’s charter. "The bold effort the present Article 1, Sec 8 of the Constitution has The National Bank Act of 1863 and 1864 (central) bank had made to control the actually been implemented. At no other were pushed by bankers and their government ... are but premonitions of the time in US history has public money been supporters to undercut Greenbacks. A fate that await the American people, created by the federal government in this system of nationally chartered, should they be deluded into a perpetuation way. private/corporate banks was established of this institution or the establishment of and expanded. These new national banks another like it," 5 he said. What Congress failed to do, however, were provided with virtually tax-free social movements continued to advocate status and subsidized through purchasing for. of government bonds with discounted Issuing public money Greenbacks. These banks were permitted

“Locofocos,” members of the radical wing to then create “US Bank Notes” (debt- Ironically, the ultimate democratic power based money) which entered the money over banking corporations has rarely been of the Democratic Party, were political firebrands in the first half of the 19th supply – to be used in payment of taxes used – the Constitutional power as defined and duties only. This system enriched in Article 1, Section 8 authorizing century. They were opposed to state banks, monopolies, paper money, tariffs, banks and worked to wean the US away Congress, “[t]o coin Money.” The word from Greenbacks. The Act limited the “coin” is a verb, meaning the power to and financial policies that were undemocratic and conducive to special issuance of Greenbacks to $300 million issue or create our nation’s currency. privilege. Wall Street banks preferred "hard money" Most, if not every, pre-revolutionary (i.e. gold) or specie money (paper money American colony issued their own The Populists who feared the economic and political power of railroads and banks backed by gold), since the major banks colonial paper scrip, beginning with controlled most of the nation's gold. Ohio Massachusetts in 1690. Commenting on followed them. The national Populist Party in their 1892 Omaha Platform Senator John Sherman (so close was he to this currency form, Benjamin Franklin the First National Bank of New York that said, "Experience, more prevalent than all declared: “We demand a national currency, safe, sound, and flexible, issued the bank was dubbed "Fort Sherman") was the logic in the world, has fully convinced the major advocate of the Specie us all that paper money has been, and is by the general government only, a full legal tender for all debts, public and Resumption Act, passed in 1875. The Act now, of the greatest advantage to the legislated the U.S. Treasury to resume the country." 6 private, and that without the use of banking corporations.” 7 issuance of legal tender notes backed only by gold (Greenbacks were backed by the “Continentals” were a colonial-wide Jacob Coxey, a businessman from faith and credit of the US government). currency issued by the revolutionary The Act also took steps to reduce the Continental Congress. They were used to Massillon, Ohio organized a 500-strong “Coxey’s Army” march from Massillon, amount of Greenbacks in circulation -- a pay soldiers. step toward the creation of bank issued Ohio to Washington, D.C. in 1894 to promote federal intervention for job debt-money that the government would U.S. “Greenbacks” were federal-issued borrow from them at interest vs using notes issued by the Lincoln administration creation. The primary demand of this "petition in boots" was unique -- the direct government money that was interest-free. to avoid paying exorbitant interest rates to Farmers and small manufactures opposed Wall Street banking corporations. printing and issuance of $500 million by the Federal Treasury to employ 4 million the Act, fearful that a contraction of the Congress authorized $450 million in 1864 money supply would lead to a recession or depression – which it did. The Act took and who didn’t (people of color living in fueled, legitimized and to a certain extent effect on January 1, 1879. It was a major inner cities). This redlining or protected banks that engaged in fractional step toward the re-consolidation of the blackballing decimated communities, reserve banking. nation's money supply and economy skewing social relations by reinforcing toward what was called at the time as racial divisions. More recently, easy Democratic activists are rightly upset “The Money Trust.” money from banking corporations and about privatization/corporatization of our virtually zero regulations resulting from public assets, be they water/sewer The twin goals of the banking industry heavy corporate lobbying resulted in systems, airports, roads and the like. were to eliminate Greenbacks not just housing loans to people who simply Giving banking corpses the license to from the economy and from the culture couldn’t afford them, especially the print money, however, dwarfs every other but to establish governmental dependency Adjustable Rate Mortgage (ARMs), form of privatization/corporatization of on banking corporations. triggering massive coast-to-coast home our society in terms of transferring foreclosures. Buyers were lied to and economic and political power. Why banking corporations loved having deceived by middlemen brokers into their exclusive corporate “hand” on the thinking loan terms were reasonable and Yes, the US government does mint US nation’s money faucet was obvious – to affordable. coins, but this is a miniscule percentage of manipulate the amount of money in the all US currency (paper and electronic) in economy. Turning the money spigot on The System circulation. About 97% of all dollars are and making money easily available created as debt – with the vast majority of resulted in economic booms as people By the early 20th century, banking it as loans created with computer borrowed for economic expansion. corporations had still not completely keystrokes by banks when we take out Turning the money faucet off created the acquired what they failed to achieve with loans. The other form is when the Federal opposite effect – contraction, or economic the private first and second national banks Reserve purchases US Treasuries bonds. busts. People were unable to pay their of the United States – full spectrum debts since there simply wasn’t enough dominance over money creation. Democratic activists are rightly upset money in circulation. Banking about privatization/corporatization of our corporations thus acquired land, Greased with the funding by JP Morgan public assets, be they water/sewer businesses and other capital on the cheap. for a national Monetary Convention, a systems, airports, roads and the like. Booms and busts in this country, phony “grassroots reform” group calling Giving banking corpses the license to print therefore, haven’t been due to cosmic for a new monetary system and private money, however, dwarfs every other form forces, but rather well orchestrated , and triggered by a JP of privatization / corporatization of our financial decisions – all to consolidate Morgan-orchestrated economic panic in society in terms of transferring economic economic (and consequently political) 1907 caused by a contraction of the and political power. power of banking corporations. money supply, national sentiment moved toward a national central bank. The 1893 “Panic Circular” by the Compounding the power for banking American Bankers Association was an Bankers drafted a plan for the new central corporations to freely create money is example of the corrupting power of bank – controlled by none other than their ability to leverage existing bank banking corporations. The document bankers. Morgan and other bankers drew deposits -- via fractional reserve banking called on member banks to incite a upon their vast financial fortunes to lobby – and create ten or more times as much financial panic to prevent greater public for the bill. The result was the 1913 money as they actually have on deposit. controls of banks, to counter increased Federal Reserve Act. “When the President That’s vast economic power. And with public sentiment toward government- Woodrow Wilson signs this bill,” vast economic power comes vast political issued money and as a means to oppose Republican Congressman Charles power. silver (as opposed to gold) being used as a Lindbergh said, “the invisible government backing for currency. The document by the monetary power will be Political Influence stated, “You will at once retire one-third legalized…”9 of your circulation (your paper money) And the banks -- hard to believe in a time and call in one-half of your loans. Be What the now 100 year-old Act legalized when we're facing a banking crisis that careful to make a monetary [emergency] was the monopoly by the new Federal many of the banks created -- are still the among your patrons, especially among Reserve System to create the nation’s most powerful lobby on Capitol Hill. And influential businessmen…The future life paper money supply. It also granted the they frankly own the place. of national banks as fixed and safe Fed, a mostly private national central - Dick Durbin, US Senator, 2009 investments depends upon immediate bank, the power to create money out of action, as there is an increasing sentiment thin air as debt via purchases of In a rare public admission of the political in favor of Government legal-tender notes government securities. The Fed also influence wielded by the nation’s financial 8 and silver coinage.” became the financial backstop for regional sector, Senator Durbin acknowledged and local banks to create their own money what has been a reality for generations. In past decades, banking corporations out of nothing and to issue loans 10 times consciously chose what neighborhoods or more their actual reserves (called The FIRE sector is by far the largest (white suburban) received housing loans “fractional reserve banking”). The Fed source of campaign contributions to federal candidates and parties, with - Forcing the federal agencies Fannie Mae established by the Glass-Steagall Act, commercial banks, insurance and Freddie Mac to divert purchasing less created in 1933 but repealed in 1999. This corporations, securities and investment risky “prime” housing in bulk to more would reduce the risks to consumers of firms and real estate interests the major risky “subprime” housing loans from financial speculation. contributors/investors. financial institutions – thus to shift the - Instituting a “transactions” tax on every default risk from banks to the government. financial trade as a means to both cut Political campaign contributions / - Continuation of a trend of mergers and down on financial speculation and raise investments to federal congressional concentration in the financial sector (from significant revenues. candidates since 1990 totals $1.95 billion. a total of over 18,000 banks in the mid - Prosecute and jail those responsible for The average contribution from this sector 80s to less than 6,900 in 2013). 12 the 2008 home foreclosure crisis and during this period to U.S. Representatives - Passage of the Credit Rating Agencies financial meltdown. was $137,000; to U.S. Senators was Reform Act of 2006 reducing the ability - Break up the nation’s largest banks. $411,000. 10 of the SEC to oversee credit rating Assets of the six largest US bank holding agencies that were giving high marks to companies (JP Morgan Chase, Citigroup, The FIRE sector also spends huge sums financial entities engaged in risky Bank of America, Well Fargo, Goldman lobbying Congress and federal agencies. investments. Sachs and Morgan Stanley equals 67%, up The sector spent $5.1 billion on federal - No break-up of the major “too big to 37% from five years ago). 13 lobbying along (excluding state and local fail” banks - Ending the largely private and financial officials) between 1998 and 2012, - Watering down and delaying institution-serving Federal Reserve employing several thousands of lobbyists. implementation of the Dodd-Frank System. Since the Fed largely serves In 2013, they spent $358 million on banking “reform” bill banking interests, the Fed should be Congress alone, employing more than - Avoiding criminal prosecution of simply abolished. 2300 lobbyists – or more than 4 lobbyists executives of major banking corporations. - Create “public banks” at the state or per congressional member. 11 - Legal settlements involving token fines local level. These would be repositories for the breaking of countless laws by for state and local government funds (vs What did all this lobbying and bank. keeping public funds in private banks) to contributions/investments yield over the - And, of course, continuation of the be used to loan out for public projects. last two decades: the money industry’s largest public theft in the history of the These public banks would themselves leveraged buyout of our political system, nation – the continued license to print engage in “fractional reserve banking” by passage of certain laws and blockage of money, which our government borrows offering loans far in excess of their actual others contributed to the 2008 Wall Street and pays interest on it (several hundred deposits. About a dozen states and several crash, the global economic recession and a billion per year by the federal government other municipalities are in different stages virtually non-existent recovery. These alone). This power is approaching of exploring creating public banks. included: exponential with the Federal Reserve - End the private Federal Reserve System System’s “Quantitative Easing” program by shifting the Fed’s responsibilities to the - Passing the Financial Services that has injected several trillion dollars of Treasury Department AND end fractional Modernization Act in 1999, repealed the made up money that’s been used to reserve banking AND create US money to 1933 Glass-Steagall Act that had kept purchase the big bank’s toxic assets and rebuild our nation’s human and physical commercial banks out of investment US Treasuries. Debt is exploding infrastructure. This is the proposal of the banking and insurance services (personal, business and government), “National Emergency Employment - Rejecting regulation of financial causing grave economic concerns about Defense” (NEED) Act, which was derivatives (e.g. options, swaps, the stability of the dollar. The Fed now introduced in the last two sessions of collateralized mortgage obligations) purchases 70% of US federal debt with Congress, but not the current one. 14 This - Blocking a law forcing banks to disclose their made up money as other nations bill would go a long away to truly money-losing or “toxic” assets to their have diminished their purchases. The “democratizing” our monetary system. It investors. government’s debt addiction it total – achieves what most people already believe - Passage of the Commodities Futures increasingly dependent on the private Fed exists: the US prints its own money, banks Modernization Act (CFMA) in 2000 and banking corporations for survival. only lend out their deposits and the which exempted financial derivatives, The ultimate financial bubble will Federal Reserve is a public and publicly including credit default swaps, from any inevitably burst. accountable agency. regulation. - Rigged bank “stress tests” by the Banking and monetary reform No matter how modest or fundamental government to prove their financial proposals these proposals, none are likely to become solvency. federal law anytime soon since, as Dick - Failure to prevent predatory lending. There are no lack of ideas for changing Durbin says, the banks “frankly own the - Federal preemption of state consumer our banking and monetary systems. Some place” (the federal government). protection laws. are more fundamental than others. - Making it easier for banks to purchase, Examples include: This doesn’t mean one or more are not bundle and sell subprime loans without important alternatives to address. The fear of liability - Re-establishing the “firewall” between NEED Act is the single most sweeping commercial and investment banks change addressing real monetary reform. However, the Act never received even a continue to be shielded by constitutional ------single hearing in four years, let alone a rights as they permeate our culture, vote. And it never will short of a mass pervert democratic laws and plunder the Notes social movement behind it. natural world. 1Knoup v the Piqua Bank 1 Ohio S 603 (1853) This could happen if there’s total Corporations were never intended to 240 Ohio Law, 18 (1842) financial/economic collapse, which is possess inalienable constitutional rights 3Ibid. actually increasingly likely given the but rather to be subordinate via charters 4Letter to John Taylor, 1816 massive money printing of the Fed (both and charter revocations to people and their 5http://www.ourrepubliconline.com/Author/11 in this country and now the central banks elected representatives. Banking 0 of other Western nations), the widening corporations drew special attention since 6Busybody #8, March 24, 1729 (from wealth gap, collapsing consumer their product was money – the lifeblood of http://en.wikiquote.org/wiki/Monetary_reform) spending, plummeting jobs, the complete all modern economies. First Amendment 7http://historymatters.gmu.edu/d/5361/ic perversion of the economy to favor the “free speech” and Fourth Amendment 8Still, Bill, No More National Debt, Reinhardt super wealthy and major corporations “search and seizure” rights are particularly (especially banks), skyrocketing public dangerous since the ability to use bank and Still Publishers, 2011, p. 174. 9 and personal debt (including student debt) money and the ability to conceal bank http://quotes.liberty- and hundreds of trillions of unfunded practices from public scrutiny can lead to tree.ca/quotes_by/charles+a.+lindbergh,+sr. 10 liabilities (pensions, Social Security, etc.). the perilous rise of economic AND http://www.opensecrets.org/industries/summa It’s a global financial tsunami that will political power. ry.php?ind=F&recipdetail=A&sortorder=U&c pummel economies, communities and ycle=All people. Couple this with the twin assertion by the 11http://www.opensecrets.org/industries/lobbyi 1% that “money equals speech.” If money ng.php?cycle=2014&ind=F Yet there’s no guarantee that even total equals speech, then those who possess the 12Tracy Ryan, Tally of U.S. Banks Sinks to collapse will usher in changes that most money possess the most speech. No Record Low, Wall Street Journal, 12/3/13, genuinely benefits people, communities wonder the political voices of banking http://online.wsj.com/news/articles/SB1000142 and the planet. The tide could move in the corporations drown out all others. This 4052702304579404579232343313671258 direction of greater centralization, isn’t a description of any political system 13Gandel, Stephen, By every measure, the big corporatization and injustice. Dire remotely resembling a democracy or banks are bigger, CNN Money, 9/13/13, conditions do not automatically spark democratic republic, but of a plutocracy – http://finance.fortune.cnn.com/2013/09/13/too- social movements. a fair description of our current system. big-to-fail-banks/ 14 Additionally, is money equals speech, http://www.monetary.org/american- Thus, the fate of fundamental banking and doesn’t that also mean that speech equals monetary-need-act 15 monetary reform is no different than those money (i.e. if A = B, then B must also = https://movetoamend.org/wethepeopleamend for fundamental energy reform, health A). If so, does that mean that anytime ment care reform, agricultural reform, trade anyone speaks about anything, they reform, transportation reform, education should be paid? This is a truly ridiculous reform, industrial policy reform, tax concept. reform, and (you fill in the blank) reform.

We’re unable to make serious headway on The ultimate prescription to the problem any progress moving against gale-like of the rising power and rights of banking headwinds of corporate first amendment corporations is two-fold: educating and

“free speech” rights and other never- organizing for profound banking reform intended corporate constitutional rights. (whatever that may mean to you) while at

the very same time educating and

While different fundamental reforms organizing for profound constitutional divide the public from a practical reform (i.e. the Move to Amend standpoint (i.e. there’s only so many amendment). causes any one person work on at one time), changing our nation’s basic legal It’s the same prescription to the problem and constitutional ground rules can unite of the rising power and rights of us. (whatever category you prefer)

corporations.

Enacting Move to Amend’s “We the 15 People Amendment” declaring that Changing laws and changing ground rules only human beings, not corporations, (the constitution) are twin goals – possess inalienable constitutional rights regardless of the issue. and that political money is not equal to Coleridge is a member of the POCLAD collective and Director of the Northeast Ohio free speech helps all of us who are It’s how to bank on self-governance. American Friends Service Committee (AFSC). working for any fundamental reform. The views in the article are not necessarily Corporations and the super rich will approved by AFSC.

They understood the economic/political power of banking corporations … including their power to create money How long, how long will we allow finance to govern us?

"And I sincerely believe, with you, that or compelling a federal contraction of the issuers is to create first, a secret and illicit banking establishments are more circulating medium, according to its own arm of the government and last, a rival dangerous than standing armies…” will.” – President Andrew Jackson power strong enough ultimately to – President Thomas Jefferson overthrow all other forms of government." “The issue which has swept down the – Frederick Soddy, Nobel Prize Recipient "There are two ways to conquer and centuries and which will have to be fought and Monetary Reformer enslave a nation. One is by the sword, the sooner or later, is the people versus the other is by debt." "All the perplexities, banks.“ “Our Constitution gives to Congress the confusion and distress in America arises, – Lord Acton, English Historian, exclusive power to coin money and not from the defects of the Constitution or Politician, Author regulate the value thereof... These are confederation, not from the want of attributes of sovereignty and belong honour or virtues, so much as from the “I stand here, therefore, for inconvertible exclusively to the representatives of the downright ignorance of the nation, of paper money, the greenback, which has whole people...” coin, credit and circulation." fought our battles and saved our country, – Samuel Fenton, Independent Republican – President John Adams which has been held by us as a just US Representative of Ohio equivalent for the blood of our soldiers, “Lexington and Concord were trivial acts the lives of our sons, the widowhood of "The process by which banks create of resistance, which chiefly concerned our daughters, and the orphanage of their money is so simple that the mind is those who took part in them and which children. I stand here for a currency by repelled.” might have been forgiven; but the creation which the business transactions of forty – John Kenneth Galbraith, US Economist and circulation of bills of credit by million people are safely and successfully revolutionary assemblies in Massachusetts done, which, founded on the faith, the "The very idea of a government that can and Philadelphia were the acts of a whole wealth, and property of the nation, is at create money for itself, allowing banks to people, and coming, as they did, upon the once the exemplar and engine of its create money that the government then heels of the strenuous efforts made by the industries and power—that money which borrows, and pays interest on, is so Crown to suppress paper money in saved the country in war and has given it preposterous that it staggers the America, they constituted acts of defiance prosperity and happiness in peace. To it imagination. Either everyone in so contemptuous and insulting to the four million men owe their emancipation government in charge of the procedure is Crown, that forgiveness was thereafter from slavery; to it labor is indebted for lacking in intelligence or they have been impossible… They were more than this: elevation from that thrall of degradation in bought and paid for by those who profit they were the Revolution itself.” which it has been enveloped for ages.” from their skullduggery and their – Alexander del Mar, American Political – Benjamin Butler, Union Army Civil infidelity to the public interest." Economist, Historian, Director of US War General, Member of the US House of - William Hixson, Economist Bureau of Statistics Representatives “The money power preys upon the nation “The immense capital and peculiar “The goose that lays golden eggs has in times of peace and conspires against it privileges bestowed upon it [Second been considered a most valuable in times of adversity. It is more despotic National Bank of the United States] possession. But even more profitable is than monarchy, more insolent than enabled it to exercise despotic sway over the privilege of taking the golden eggs autocracy, more selfish than the other banks in every part of the laid by somebody else's goose. The bureaucracy.” "The Government should country. From its superior strength it investment bankers and their associates create, issue and circulate all the currency could seriously injure, if not destroy, the now enjoy that privilege. They control the and credits needed to satisfy the spending business of any one of them which might people through the people's own money.” power of the Government and the buying incur its resentment; and it openly claimed – Lois Brandeis, US Supreme Court power of the consumers. By the adoption for itself the power of regulating the Justice (1916-1939) of these principles, the taxpayers will be currency throughout the United States. In saved immense sums of interest. The other words, it asserted (and it “It was recognized in Athens and privilege of creating and issuing money is undoubtedly possessed) the power to Sparta…centuries before the birth of not only the supreme prerogative of the make money plenty or scarce at its Christ that one of the most vital government, but it is the Government's pleasure, at any time and in any quarter of prerogatives of the State was the right to greatest creative opportunity." the Union, by controlling the issues of issue money…To allow it [money] to – President Abraham Lincoln other banks and permitting an expansion become a source of revenue to private "We say in our platform that we believe A Publication of the PROGRAM ON “Now, I believe the system should be that the right to coin money and issue CORPORATIONS, LAW & DEMOCRACY changed. The Constitution of the money is a function of United States does not give the banks government…Those who are opposed to By What Authority (ISSN: 524-1106) the power to create money. The is published by the Program on the proposition tell us that the issue of Corporations, Law & Democracy. The Constitution says that Congress shall paper money is a function of the bank and title is English for quo warranto, a legal have the power to create money, but that the government ought to go out of the phrase that questions illegitimate now, under our system, we will sell banking business. I stand with exercise of privilege and power. We the bonds to commercial banks and obtain people and our federal and state officials Jefferson...and tell them, as he did, that have long been giving giant business credit from those banks... I have never the issue of money is a function of the corporations illegitimate authority. yet had anyone who could, through the government and that the banks should go Today, a minority directing giant use of logic and reason, justify the out of the governing business...When we corporations and backed by police, Federal Government borrowing the use courts, and the military, define our have restored the money of the culture, govern our nation, and plunder of its own money… I believe the time Constitution, all other necessary reforms the earth. By What Authority reflects will come when people will demand will be possible, and ... until that is done, an unabashed assertion of the right of that this be changed. I believe the time there is no reform that can be the sovereign people to govern will come in this country when they accomplished." themselves. will actually blame you and me and

– William Jennings Bryan before POCLAD is a group of 10 people everyone else connected with this Democratic National Convention, instigating democratic conversations and Congress for sitting idly by and Chicago, IL actions that contest the authority of permitting such an idiotic system to corporations to govern. Our analysis continue.” evolves through historical and legal “If our nation can issue a dollar bond, it research, writing, public speaking, and – Wright Patman, former chair, US can issue a dollar bill. The element that working with organizations to develop House Committee on Banking and makes the bond good makes the bill new strategies that assert people’s Currency good... If the Government issues bonds, rights over property interests. the brokers will sell them. The bonds will BWA is a tool for democracy proponents "Once a nation parts with the control of be negotiable; they will be considered as to rethink and reframe their work. To its currency and credit, it matters not gilt edged paper. Why? Because the that end we encourage readers to who makes the nations’ laws. Usury, government is behind them, but who is engage us with comments, questions, once in control, will wreck any nation. and suggestions. behind the Government? The people.” Until the control of the issue of – Thomas Edison POCLAD currency and credit is restored to P.O. Box 246 government and recognised as its most "We are completely dependent on the South Yarmouth , MA 02664-0246 sacred responsibility, all talk of the commercial banks. Someone has to 508-398-1145; 508-398-1552 (fax) sovereignty of parliament and of [email protected]; www.poclad.org borrow every dollar we have in democracy is idle and futile.... “ th circulation, cash or credit. If the banks POCLAD is a project of the Jane Addams – William Lyon Mackenzie King, 10 create ample synthetic money we are Peace Association. Prime Minister of Canada prosperous; if not, we starve.” David Cobb, CA Karen Coulter, OR – Robert Hemphill, Federal Reserve Bank Greg Coleridge, OH Mike Ferner, OH of Atlanta Dave Henson, CA Lewis Pitts, NC Jim Price, AL Virginia Rasmussen, NY Kaitlin Sopoci-Belknap, CA Mary Zepernick,* MA

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