From server@prairienet.org Fri Jun  9 02:16:29 1995
	id CAA03108; Fri, 9 Jun 1995 02:16:25 +0200
	id AA16547; Thu, 8 Jun 95 19:11:45 CDT
Subject: Conspiracy Nation -- Vol. 5 Num. 13
X-Comment:  Conspiracy Nation



              Conspiracy Nation -- Vol. 5  Num. 13
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                    ("Quid coniuratio est?")


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HISTORY OF THE GREAT AMERICAN FORTUNES
By Gustavus Myers
(Condensed, from chapter 4)

[...continued...]

              -+- The Banking Frauds Begin -+-

The States began a course of reeling out bank charters. By 1799 
New York City had one bank, the Bank of New York; this admixed 
the terrorism of trade and politics so overtly that presently an 
opposition application for a charter was made. This solitary bank 
was run by some of the old landowning families who fully 
understood the danger involved in the triumph of the democratic 
ideas represented by Jefferson; a danger far overestimated, 
however, since win as democratic principles did, the propertied 
class continued its victorious march, for the simple reason that 
property was able to divert manhood suffrage to its own account, 
and to aggrandize itself still further on the ruins of every 
subsequent similar reform expedient. What the agitated masses, 
for the most part, of that period could not comprehend was that 
they who hold the possession of the economic resources will 
indubitably sway the politics of a country, until such time as 
the proletariat, no longer divided but thoroughly conscious, 
organized, and aggressive, will avail itself of its majority vote 
to transfer the powers of government to itself. The Bank of New 
York injected itself virulently into politics and fought the 
spread of democratic ideas with sordid but effective weapons. If 
a merchant dared support what it denounced as heretical 
doctrines, the bank at once blacklisted him by rejecting his 
notes when he needed cash most.

It was now that Aaron Burr, that adroit leader of the opposition 
party, stepped in. Seconded or instigated by certain traders, he 
set out to get one of those useful and invaluable bank charters 
for his backers. The explanation of how he accomplished the act 
is thus given: Taking advantage of the epidemic of yellow fever 
then desolating New York City, he, with much preliminary of 
philanthropic motives, introduced a bill for the apparent 
beneficent purpose of diminishing the future possibility of the 
disease by incorporating a company, called the Manhattan Company, 
to supply pure, wholesome water. Supposing that the charter 
granted nothing more than this, the explanation goes on, the 
Legislature passed the bill, and was most painfully surprised and 
shocked when the fact came out that the measure had been so 
deftly drawn, that it, in fact, granted an unlimited charter, 
conferring banking powers on the company. {3}.

This explanation is probably shallow and deficient. It is much 
more likely that bribery was resorted to, considering the fact 
that the granting of every successive bank charter was invariably 
accompanied by bribery. Six years later the Mercantile Bank 
received a charter for a thirteen years' period -- a charter 
which, it was openly charged by certain members of the Assembly, 
was secured by bribery. These charges were substantially proved 
by the testimony before a legislative investigating committee. 
{4}. In 1811 the Mechanics' Bank was chartered with a time limit 
under circumstances indicating bribery.

Indeed, so often was bribing done and so pronounced were charges 
of corruption at frequent sessions of the Legislature, that in 
1812, the Assembly, in an heroic spasm of impressive virtue, 
passed a resolution compelling each member to pledge himself that 
he had neither taken, nor would take, "any reward or profit, 
direct or indirect, for any vote on any measure." This resolution 
was palpably intended to blind the public; for, in that identical 
year, the Bank of America received a charter amid charges of 
flagrant corruption. One Assemblyman declared under oath that he 
had been offered the sum of $500, "besides a handsome present for 
his vote." All of the banks, except the Manhattan, had limited 
charters; measures for the renewal of these were practically all 
put through by bribery. In fact, many of the great landed 
fortunes were inseparably associated with the frauds of the 
banking system; money from land was used to bribe legislatures, 
and money made from the banks was employed in buying more land. 
Year after year the bribery went on industriously, without 
cessation.

            -+- Bribery A Crime In Name Only -+-

Were the bribers ever punished, their illicitly gotten charters 
declared forfeited, and themselves placed under the ban of 
virtuous society? Far, very far, from it! The men who did the 
bribing were of the very pinnacle of social power, elegance and 
position, or quickly leaped to that height by reason of their 
wealth. The ancestors of some of the most conspicuous multi- 
millionaire families of the present day were deeply involved in 
the perpetration of all of those continuous frauds and crimes. 
The men who waded on to wealth through the muck of base practices 
and by means of crimes a millionfold more insidious and dangerous 
than the offense of the convict, were not only honored as leading 
citizens, but they became the extolled and unquestioned dictators 
of that supreme trading society which made modes, customs and 
laws.

It was by aid of the banking system that the trading class was 
greatly enabled to manipulate the existing and potential 
resources of the country and to extend valuable favors to 
themselves. For many years the banks, especially in New York 
State, were empowered by law to issue paper money to the extent 
of three times the amount of their capital. The actual specie 
[money in coin] was seized hold of by the shippers, and either 
hoarded, or exported in quantities to Asia or Europe which, of 
course, would not handle paper money. By 1819 the banks in New 
York had issued $12,500,000 and the total amount of specie to 
redeem this fiat stuff amounted to only $2,000,000. These 
banknotes were nothing more or less than irresponsible promises 
to pay. What became of them?

            -+- What The Workers Got As Wages -+-

What, indeed, became of them? They were imposed upon the working 
class as payment for labor. Although these banknotes were subject 
to constant depreciation, the worker had to accept them as though 
they were full value. But when the worker went to buy provisions 
or pay rent, he was compelled to pay one-third, and often one- 
half, as much as the value represented by those banknotes. 
Sometimes, in crises, he could not get them cashed at all; they 
became pitiful souvenirs in his hands. Those in control of the 
banks had, with no expenditure, possessed themselves of a 
considerable part of the resources of the country and had made 
the worker yield up twice and three times as much of the produce 
of his labor as he had to give before the system was started.

                   [...to be continued...]

---------------------------<< Notes >>---------------------------
{3} Hammond's "Political History of the State of New York." 
I:129-130.

{4} Journal of the [New York] Senate and Assembly, 1803(?): 
351(?) and 399.

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Aperi os tuum muto, et causis omnium filiorum qui pertranseunt.
Aperi os tuum, decerne quod justum est, et judica inopem et 
  pauperem.                    -- Liber Proverbiorum  XXXI: 8-9 

 Brian Francis Redman    bigxc@prairienet.org    "The Big C"
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    Coming to you from Illinois -- "The Land of Skolnick"        
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