HomeIssues »Magazine »Books & Reports »Multimedia »About »Newsroom »DonateConnect »Site Guide »
Myth #1: The Federal Reserve Act of 1913 was crafted by Wall Streetbankers and a few senators in a secret meeting.
On the Georgian resort hideaway of Jekyll Island (which has some excellent golf courses, by the way), there once met a coalition of Wall Street bankers and U.S.senators. This secret 1910 meeting had a sinister purpose, the conspiracytheorists say. The bankers wanted to establish a new central bank under thedirect control of New York's financial elite. Such a plan would give the WallStreet bankers near total control of the financial system and allow them tomanipulate it for their personal gain.G. Edward Griffin lays out this conspiratorial version of history in his book
TheCreature from Jekyll Island .
His amateurish take on history is highly suspect,however.Gerry Rough, in a series of well- researched essays on U.S. bankinghistory, reveals many historical inaccuracies, inconsistencies, and evencontradictions in Griffin's book and others of its genre. Instead of reproducingRough's work here, I offer the reader a substantially more accurate view of theevents leading up to the creation of the Federal Reserve System in 1913. To geta proper historical perspective, the story of begins just prior to the Civil War...
The National Banking Acts of 1863 & 1864
Prior to the Civil war there were thousands of banks in operation throughout theUnion, all of them chartered, that is, licensed by the state governments. Bankingregulations were virtually nonexistent. The federal government had nomeaningful controls on banking practices, and state regulations were spotty andpoorly enforced at best. Economic historians call the era leading up to the CivilWar as the 'state banking era' or the 'free banking era.'The problems with state banking were numerous, but three were conspicuous.First, the nation had no unified currency. State banks issued their own bank notes as currency, a system which at worst invited severe bouts of counterfeitingand at best introduced additional uncertainty in the task of determining therelative value of each bank note. Second, with no mitigating influence on the
Most Recent ArticlMore ArticlesFeatures from past
The Public Eye
MaPRA Reports - OnlFormer Front PageAnnouncementsSpotlight OnCivil Liberties & RepressEconomic JusticeLGBTQ EquityRacial JusticeReproductive JusticeChristian Right & TheocrUnderstanding the RightMore Article TopicsExploreBrowse Topics|Site GuiBookstore|Magazine|P
Activists ResourcesPolitical Research AssociAbout UsPRA NewsWatch short videosDonate!
ublicEye.org - The Website of Political Research Associateshttp://www.publiceye.org/conspire/flaherty/flaherty1.html1 of 61/3/2011 10:16 AM