The Federal Reserve is neither Federal nor a Reserve

By Larry  Becraft,

A note about the Fed Reserve Banks brought a reply from Jon Moseley that the Federal Reserve Banks are federal agencies (which is what many Americans believe), not private corporations. This false belief is exactly what the proponents of the Fed Reserve Banks proffered when they were created. But, opponents of the Fed then, and now, correctly assert that these banks that issue our “currency” (Fed Reserve Notes (“FRNs”)) are nothing but private corporations. This erroneous belief that these banks are really govt agencies needs to be stopped and the real truth told.

The 1913 Fed Reserve Act is posted here:

http://home.hiwaay.net/%7Ebecraft/FedResAct.pdf

Of course since 1913, there have been many amendments to this act, but the same basic structure remains; see 12 U.S.C. The 1913 act required national banks to subscribe to the stock of the Fed Reserve Banks, and other private state banks could join by purchasing stock (see below §§ 282, 283 and 321). This sale of stock raised the capital by which the various Fed Reserve Banks could open their doors. These banks are OWNED by their member bank stockholders, and these Fed Reserve Banks pay annual stock dividends (6%) to the stockholder banks (see below § 289).  It is these privately owned banking corporations (federally chartered) that issue our fiat “currency” that is the shadow of real money.

Prior to the creation of these Fed Reserve Banks in 1913, a “money trust” existed, and it was this “trust” (a consortium of powerful bankers like JP Morgan) that secured passage of the 1913 Act. To make it appear “public” in some way, a facade was created named the Federal Reserve Board, its titular head. The best explanation of this “system” that marries corporate banking interests with a public facade is Edwin Vieira’s book, Pieces of Eight. I encourage every American to read and study Edwin’s book (a 2 volume set).  If you wish to read some of Edwin’s works posted on the Net, I suggest the following:

http://home.hiwaay.net/~becraft/VieiraMono4.htm

http://home.hiwaay.net/~becraft/VieiraNCBASpeech.html

http://home.hiwaay.net/%7Ebecraft/WhatIsDollar.pdf

I provide below some of the sections from 12 U.S.C. that relate to this matter, and a quick review plainly shows that stockholding member banks own the Fed Reserve Banks (see below §§ 282, 283 and 321) and the member banks are paid annual dividends (see below § 289). These Fed Reserve Banks comprise the Federal Reserve System, which is a banking scam that benefits the creators of “credit” (the “system” operates solely by credit) and grievously injures the society forced to use this “system.” Our near-term future WILL bring rampant inflation Zimbabwe style, which destroys societies.

If you want to prepare for the future and protect yourself and family, you have a moral obligation to learn as much as you possibly can about this “monetary system” that most likely will ruin America.

I suggest, if you want to learn something about the early 19th century banking system in our country, please read the report on banking provided to President Andrew Jackson:

http://www.devvy.com/pdf/2006_October/GougeOnPaperMoney.pdf

If you want to read a committee report about this system, see:

http://www.devvy.com/pdf/2006_October/Patman_Primer_on_Money.pdf

If you want to read about the first carefully planned currency contraction by the Fed, please read:

http://home.hiwaay.net/%7Ebecraft/CongRec1923.pdf

If you want to read Cong. McFadden’s speech about the Fed, go here:

http://home.hiwaay.net/~becraft/mcfadden.html

If you want an introductory brief on the legal evolution of our banking system, read this brief:

http://home.hiwaay.net/~becraft/MONEYbrief.html

Larry Becraft
403-C Andrew Jackson Way
Huntsville, Alabama 35801