THE PARTIALITY OF THE PILLAGE
HERE is the idea. For reasons best known to themselves Federal Reserve
Oligarchs penalize production and favor parasitism. Who are really
entitled to the largest loans from the huge storage or reservoir of
Federal Reserve money? Why, the real producers of the real wealth, the
agricultural interests in the U.S.A. Have they had it? They have not.
Look at the figures--official, please remember--as of January 1, 1920,
when the Federal Reserve "Drastic Deflation" Drama was beginning to be
staged.
At this time the Federal Reserve Bank of Atlanta was lending to all
its member banks in the States of Georgia, Florida, Alabama and
parts of Louisiana, Tennessee and Mississippi a total of $88,000,000
and had "bought paper" to a total of $16,000,000--and that included
some $10,000,000 which it was loaning to other Federal Reserve
Banks, principally in the North for speculative loans. Mark that
down--$94,000,000 of loans covering that enormous area of production.
At this same time the Federal Reserve Bank of St. Louis was lending to
all its member banks covering the greater part of Missouri, Arkansas
and parts of Illinois, Indiana, Kentucky and Mississippi $80,000,000
and had $31,000,000 of bought paper--including $20,000,000 taken from
other Federal Reserve Banks. Mark that down--$91,000,000 of loans in
that area of production.
At this same time the Federal Reserve Bank of Kansas City was lending
all its member banks in Kansas, Nebraska, parts of Missouri, Oklahoma,
Wyoming and Colorado $88,000,000 and had $17,000,000 of bought
paper. Mark that down--$105,000,000 of loans in that fertile area of
production.
At this same time the Federal Reserve Bank of Dallas was lending to all
its member banks in all of Texas, parts of Oklahoma, Louisiana, New
Mexico and Arizona $57,000,000 and had $6,000,000 of bought paper. Mark
that down--$63,000,000 of loans in that vast area.
At this very time, in January, 1920, one huge speculative bank in
New York City was borrowing of the New York Federal Reserve Bank
$130,000,000! This one New York Bank--catering to speculators, to
money masters, to "corner" builders and to "high financiers," not
even remotely connected with the real production of real wealth--was
borrowing more money from the New York Federal Reserve Bank than the
Federal Reserve Bank of Atlanta or of St. Louis or of Kansas City or of
Dallas was lending to their member banks in their huge areas of real
production of real wealth! And not only that, but at that very time the
Federal Reserve Bank of New York was borrowing of other Federal Reserve
Banks $100,000,000 to hurl into the New York maelstrom of speculation!
And not only that, but at that very time all the money which all the
twelve Federal Reserve Banks in the U.S.A. were lending on agricultural
and live stock paper to the 9,000 member banks in the 48 states of the
U.S.A. amounted to the pitiful and piffling sum of but $51,068,000--not
one-half of the amount borrowed by one speculative bank in New York
from the New York Federal Reserve Bank. At that time agricultural
interests, particularly in the South, and live stock interests all over
the land were beseeching the Federal Reserve Oligarchy for money and
beseeching in vain.
Take another look at the official figures for the month of November,
1920. At this time the real producers of real value--in the West and
the Northwest and in the South and the Southwest--were gasping for
money and credit. Bear in mind that their property, their production
and their toil forms the real foundation for the vast superstructure
of American wealth. Where you find a lily-fingered parasite lolling in
a mahoganized eyrie of splendor and gambling with money--the tokens
of production--you find a battalion of real producers in the great
stretches of America toiling to produce real values. If there is to
be any discrimination, if there is to be any partiality shown by the
overlords of the Federal Reserve System, it ought to favor production
of real wealth, and not parasitism gambling with its proceeds. When
there was this drouth of credit and money where real wealth is made,
how was the Federal Reserve System opening its irrigation gates of
money? It shut them in production's face and opened them wide at
parasitism's demands.
At this very time--in the middle of November, 1920--one speculative
bank in New York borrowed $134,000,000 from the Federal Reserve Bank in
New York, or $20,000,000 more than the Federal Reserve Bank of Kansas
City was lending to the 1,091 member banks in the Tenth Federal Reserve
District.
Another speculative bank in New York borrowed from the Federal Reserve
Bank in New York $40,000,000 more than the Federal Reserve Bank in
Minneapolis was lending to its 1,000 member banks in Minnesota, North
Dakota, South Dakota, Montana and part of Wisconsin.
Another speculative bank in New York borrowed from the New York Federal
Reserve Bank $30,000,000 more than the Federal Reserve Bank of Dallas
was lending all its member banks in all its huge territory.
Another speculative bank in New York borrowed from the New York Federal
Reserve Bank $20,000,000 more than the Federal Reserve Bank of Richmond
was lending to all its member banks in the Fifth Federal Reserve
District.
Massing these gigantic figures in another form, the fact is that at
the time four speculative banks in New York were borrowing from the
New York Federal Reserve Bank an average of $118,000,000 apiece--or
practically as much money as the Federal Reserve Banks of St. Louis,
Kansas City, Minneapolis, Dallas and Richmond were lending more than
4,000 member banks in 21 states comprising more than half the entire
area of the United States!
If this isn't coddling parasitism and penalizing production, you find a
name for it!
Millions by the hundreds for parasitical speculation, for the pounding
down of prices in "short" markets in a "bear" campaign waged against
real values and millions by the paltry tens only for the real producers
of real wealth! If these actual figures don't batter down the "prop" of
Federal Reserve propaganda about "furthering agricultural interests,"
nothing will. "Furthering agricultural interests" with a bludgeon!
"Equalizing credits" with a meter of equality so stretched as to enwrap
parasitism! If these actual figures don't convict Federal Reserve
Oligarchy of the height of Pecksniffian hypocrisy it's convict-proof!
Look over--and don't overlook--these figures. You can't consider them
in cold blood without irresistibly concluding that Federal Reserve
Oligarchy pampers parasitism, penalizes production and bestrews its
gigantic resources by favoritism instead of by merit. It is obsessed
by a squandermaniac prodigality for speculation and by a niggardly
parsimony for real production of real wealth. It exalts the tokens of
wealth and the jugglers of it far, far above its real producers. It
reaches out almost limitless largess to the pinnacles of parasitism
while practically starving the real makers of real wealth on whose
shoulders parasitism gaily rides. It shovels out hundreds of millions
for speculation and serves with an eye-dropper tens of millions for
production. It's unfair, unjust, inequitable and Janus-faced. It
mumbles and mutters and chitters and chatters and propagandizes about
"equalizing credits" and "emancipating credit," while in truth and
in fact it is grossly discriminating in its credits and instead of
"emancipating" credit enchains it to the golden chariot of speculative
splendors! That's what it really does and that's the true tale of its
Partiality of Pillage.