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Against the Grain

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    Fawcet, in a work on Gold and Debt, says: "It is a trick of capital in all countries to persuade the people that their honor is at stake in the payment of war debts at the highest valuation the avarice of the holders may set on them."

    Gold advocates declare that it is dangerous to allow the gold reserve in the Treasury--created ostensibly to maintain the parity or equal value of the American dollars-to fall below $100,000,000. In March, 1894, it dropped below this amount and in February, 1894, it went down to $65,000,000--at which time the American paper dollar was bringing a premium.

    At this time, as of old, through the past history of bond issues by the United States, the international bankers and saviors of the credit of nations appear upon the scene and enter into a secret contract with the Secretary of the Treasury, and approved by the President of the United States, whereby, Morgan, Rothschild, and associates buy $62,000,000 of United States bonds at about 1041/2 in gold--at which time these bonds were worth $117.00 in the open market, and a little later went up to $120.00. The syndicate, therefore, bought these bonds at about $10,000,000 less than their value and the American people were saddled with an unnecessary debt, which they have to pay, principal and interest, through taxation.

    In one of my articles on the e-mail I described how the real bank of the United States, the Independent Treasury, was causing fits with these International Bankers. The real bank of the people of this country was called sub-treasuries for some strange reason. The international bankers had to get rid of it because they could not control the money supply and actually control Congress or the President until they had complete control. They did in 1921 and I described in detail how this came about and the result of it and I also mentioned it in my book The New History of America. So with that in mind I quote from another book by T. Cushing Daniel, published in 1924.

    "The visit of Morgan in company with Baker, and Assistant Secretary of State, Robert Bacon, former partner of J.P. Morgan, was described in
the public press as follows:

"Washington, D.C., November 22, 1907.--The establishment of a Central Government Bank has been earnestly discussed within the Administration circle for the last week.

    "Two things have contributed toward making the Administration favor the plan.

    "First, as has been stated, the relief funds released by the Government have not been handled by the banks in a way to bring aid to the real business interests of the country, but rather to build up cash reserve and favor specialized interests, the real business demands being ignored.

    "Second, in the issue of the $100,000,000 certificates of indebtedness, the banks practically have demanded that the Government turn the money over to them without recompense of any sort. The Secretary of the Treasury was compelled to compromise with the bankers in order to get anything at all.

    "Mr. Cortelyou announced this evening that he purposed to return to national banks subscribing for the certificates, as a deposit of public money, 75 per cent. of the cash paid for them. The remaining 25 per cent. will go for the time being to strengthen the cash balance of the Treasury.

    "The transaction in the certificates of indebtedness leaves the
Secretary of the Treasury in a ludicrous light as a financier. Briefly, summed up, it is revealed that for the first time in the history of the world probably a Government pays interest on its own deposits in the banks.

    "Taking a round million as a basis under the terms made with the banks, the following transaction takes place: The banks put up $250,000 and we promptly returned $1,000,000 in certificates of indebtedness exchangeable for currency."

    "These certificates of indebtedness carry 3 per cent interest. The other $750,000 supposed to be put up is promptly returned to the banks as deposits.

    "The purpose of the Treasury as announced by the Secretary to-day is to leave the money in the banks and to increase the supply in the banks in every manner possible.

    "In order to carry through the arrangement with the banks in the most expeditious manner, the Secretary and the banks have completed described and the issuance of bank note currency may all be accomplished simultaneously.

    "The banks will include in their offers for certificates applications for increased circulation. They will make the payments for the certificates in cash and securities to the sub-treasuries, and receive in return, not the certificates themselves, but bank notes to the full amount of the certificates purchased."

    This last deal with the United States Treasury occurred less than a month after the Secretary of the Treasury had given these men the use of $34,033,000 of the money of the tax-payers of this country, at a critical time during the panic. This was in addition to over $150,000,000 that had already been deposited of the people's money in national banks without interest, and by December 31, 1907, amounted to $245,556,944. This enormous amount of the people's money was deposited in these banks, when by the testimony before the Banking and Currency
Committee of Congress these national-banks were unable to pay into the United States Treasury the 5 per cent. cash guarantee to the Government to protect their bank-note circulation.

    This brings to mind the one-sided partnership that exists between the Treasury of the United States and the banks. Here is a specimen on how the business is carried on by the fiduciary department of the Government representing the people, and the present banking system.

    "The United States Treasury does queer things. On August 22, 1907, I personally directed the attention of Secretary Cortelyou to some $4,000,000 of false entries made daily at the sub-treasury in New York. These entries are described in the report on fiscal system (page 76) as receipts of checks 'converted into cash before final credit is given in the accounts involved '--that is, checks' are received from the clearing-house and paid with other checks sent there for collection, the checks being exchanged or swapped without handling any money except the difference--but the amount balanced is falsely entered as gold certificates, for the most part, with additional entries of United States notes, silver certificates, fractional silver, nickels, and
copper to make up the exact sum. My letters to Secretary Cortelyou detailing falsifications to the amount of $1,279,563,526 for the fiscal year 1906 were printed in the Congressional Record March 2, 1908, pages 2829-31.

    "False entries engender false ideas. The false entries I complain of are made to conceal the fact that every year checks aggregating several hundred million dollars are received at the sub-treasury in New York and paid by balancing accounts.

    "In 1907 the Treasury Department had over $250,000,000 of available cash balance on hand or in banks, and $111,000,000 of United States bonds to pay off. By the use of bank deposits and checks drawn on them the operation would have been as simple as checking $111 out of $250 deposited. The Treasury seems to have considered the operation impracticable. Secretary Cortelyou paid $61,000,000 of the bonds and to pay off $50,000,000 more, instead of using the cash on hand or in banks, borrowed $50,000,000 to be repaid in 23 years (1930), with $1,000,000 a year interest, that is, the Secretary bound the United States to pay $23,000,000 before paying the principal, which was as purely a waste of
$23,000,000 as if it had been stolen.

"JAMES C. Hallock, Washington, D.C."

    It can be clearly seen that Congress and the United States Treasury no longer represent the people. The greatest standing reflection upon the boasted intelligence of our people is their thoughtless submission to the present infamous currency system--money based on debts, Banks of Issue, and gold redemption.

    And so it is today with the people believing that somehow these banks of today are theirs. They believe they are government banks and Congress has control. Even patriots say why not audit the banks? That is like saying that the government should audit your neighbor or they should audit Wal-Mart. The government cannot audit private concerns period.

    The banking industry is private and the federal courts have so stated as late as 1992. Robert Rubin is Governor of the International Monetary Fund today which was created by the private federal reserve bank in 1916. You should all be aware that the Bank of England owns every federal reserve bank and affiliates in this country. They cut deals all the time that you have no idea what is going on. The deal cut in 1908 is now put before you. It is not in its entirety but the important parts are included:

"This agreement entered into this 8th day of February, 1895, between
the Secretary of the Treasury of the United States, of the first part,
and Messrs. August Belmont & Co., of New York, on behalf of Messrs. N.M. Rothschild & Sons, of London, England, and themselves, and Messrs. J.P.
Morgan & Co., of New York, on behalf of Messrs. J. P. Morgan & Co., of
London, and themselves, parties of the second part.

"Witnesseth: Whereas it is provided by the Revised Statutes of the United States (section 3700) that the Secretary of the Treasury may purchase coin with any of the bonds or notes of the United States authorized by law, at such rates and upon such terms as he may deem advantageous to the public interests; and the Secretary of the Treasury now deems that an emergency exists in which the public interests require that, as hereinafter provided, coin shall be purchased with the bonds of the United States, of the description hereinafter mentioned, authorized to be issued under the act entitled 'An act to provide for the
resumption of specie payments,' approved January 14, 1875, being bonds of the United States described in an act to Congress approved July 14, 1870, entitled 'An act to authorize the refunding of the national debt.'

 "Now, therefore, the said parties of the second part[Rothchilds/Morgan] hereby agree to sell and deliver to the United States 3,500,000 ounces of standard gold coin of the United States, at the rate of $17.80441 per ounce, payable in United States 4 per cent. thirty-year coupon or registered bonds, said bonds to' be dated February 1, 1895, and payable at the pleasure of the United States after thirty years from date, issued under the acts of Congress of July 14, 1870, January 20, 1871, and January 14, 1876, bearing interest at the rate of 4 per cent. per annum, payable quarterly.

 "First. Such purchase and sale of gold coin being made on the following conditions:

"(1) At least one-half or all coin deliverable hereinunder shall be obtained in and shipped from Europe, but the shipments shall not be required to exceed 300,000 ounces per month, unless the parties to the second part[Rothchilds /Morgan] shall consent thereto.

"(2) All deliveries shall be made at any of the subtreasuries or at any other legal depository of the United States.(1)

 "Second. Should the Secretary of the Treasury desire to offer or sell any bond of the United States on or before the 1st day of October, 1895, he shall first offer the same to the parties of the second part;[Rothchilds / Morgan] but thereafter he shall be free from every such obligation to the parties of the second part[Rothchilds /Morgan].

 "In witness whereof the parties hereto set their hands in five parts this 8th day of February,; 1895.

"J. G. CARLISLE,
"Secretary of the Treasury.

 "AUGUST BELMONT & CO. "On behalf of Messrs. N.M. Rothschild & Sons, London and themselves.

"J. P. MORGAN & CO.
"On behalf of Messrs. J.P. Morgan & Co., London, and themselves.

"Attest:

"W. E. CURTIS,
" FRANCIS LYNDE STETSON."

In return for a profit of about $10,000,000 these gentlemen obligate themselves not to raid the gold reserve of the Government by the use of outstanding credit money until they complete their contract.

 Footnote 1- This would allow the gold to still remain in the banks as
depositories of the United States.
 

    The only way to stop this private cartel and its private collection agency, the IRS, is to stop using banks for anything. Use cash or U.S. Postal Money Orders. Insist that Congress issue U.S. Notes that are interest free? Not on their dying bed will they do that because of their contracts are with the banking system, NOT YOU. Besides, you cannot, by law, obligate a private contract. If you could, no contract that you ever made with a friend would ever be safe. No, the only way will be to use coin which is minted by the government and not the banking system. Start using Susan B dollars, quarters, etc., even though these are a fraud upon the people also, because these have cost the government money to coin that they cannot afford to stop using.

    However, people are so used to plastic and paper checks that they will still let the banks rape them gleefully. So it is a folly to think anything will change by the writing of this article. Just think of the other contracts besides that of 1908 that have taken place behind closed doors that you don't know about.

    People will have to become so destitute, such as a mass loss of foreclosures on houses to wake them up. But alas the bankers will "come to the rescue" and lull the people into thinking they will be saved by the kind hearted banker and they will become even further enslaved by the system. And don't think that for one moment that the fortune 500 companies don't have a hand in controlling the people as they are tied totally to the banking system. Of course these corps and banks control Congress and is of absolutely no meaning and is a waste of time to go, write or ask anything from Congress. They could care two tinker's damn about you. They know which side their bread is buttered on, everyone of
them and that goes all the way down to local government as well.

The Informer