Simply by buying assets. On the other hand, if a warehouseman issues fake warehouse receipts, and the grain stored in his warehouse is only a fraction (or something less than 100 percent) of the receipts or paper tickets outstanding, then he may be said to be engaging in "fractional-reserve warehousing." The important point here is that money, whether it be gold or other standard forms of cash, has in no way increased; cash was saved up by me, loaned to Joe, who will then spend it, return it to me plus interest in the future, etc. No doubt bank profits from the issue of fraudulent warehouse receipts would indeed come to an end as do any fraudulent profits when fraud is cracked down on. But "money," dollars, francs, lira, etc., is purchased and accepted in exchange not for any value the paper tickets have Money did not and never could begin by some arbitrary social contract, or by some government agency decreeing that everyone has to accept the tickets it issues. Trying another tack, Theodore Roosevelt's Secretary of Treasury Leslie Shaw attempted to continue and expand Lyman Gage's experiments in making the U.S. Treasury function like a central bank. The Federal Reserve, virtually in total control of the nation's vital monetary system, is accountable to nobody — and this strange situation, if acknowledged at all, is invariably trumpeted as a virtue.Thus, when the first Democratic president in over a decade was inaugurated in 1993, the maverick and venerable Democratic Chairman of the House Banking Committee, Texan Henry B. Gonzalez, optimistically introduced some of his favorite projects for opening up the Fed to public scrutiny. This increases his checking account by $1,000,000. The common phrase "Not worth a Continental" became part of American folklore as a result of this runaway depreciation and accelerated worthlessness of the Continental dollars.Government paper, as pernicious as it may be, is a relatively straightforward form of counterfeiting. For two reasons: one, the Populists were much more frankly inflationist than the bankers; and two and more importantly, they distrusted Wall Street and wanted an inflation which would sidestep the banks and be outside banker control. He recalled the great lesson of the IMC, and the way its proposals had triumphed because "we went home and organized an aggressive and active movement." [] Mr. French is a vice president in commercial real estate lending for a bank in Las Vegas, Nevada. The mighty merger movement peaked from 1898–1902. Each of these men held powerful posts in the organized economics profession, Jenks, Taussig, and Taylor serving on the Currency Committee of the American Economic Association. Murray Rothbard, who I criticised as being personally flawed with racism wrote this seminal book. Because, according to the Fed officials, private bankers "are among the world's fiercest inflation hawks" The worldview of the Federal Reserve and its advocates is now complete. Each bank had to subsist on its own bottom.
Not only that; since the U.S. abandonment of the gold standard in 1933, Federal Reserve Notes have been legal tender for all monetary debts, public or private.Federal Reserve Notes, the legal monopoly of cash or "standard," money, now serves as the base of two inverted pyramids determining the supply of money in the country. Contributions are tax-deductible to the full extent the law allows. This centralization had a twofold effect: it mobilized more bank reserves to spur greater and nationally-coordinated inflation of bank credit; and it weaned the average American from the habit of using gold in his daily life and got him used to substituting paper or checking accounts instead.
In the opposing coalition, the Rockefellers had begun in oil and moved into commercial banking; Harriman had earned his spurs as a brilliant railroad investor and entrepreneur in competition with the Morgans; and Kuhn, Loeb began in investment banking financing manufacturing.