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long; they are part of the plan to prepare large
confiscations in periods of stringency that are
soon to follow.
Money must lack continually in the hands of
the people, so that people will come time and
time again, through their governments or their
farmers and industrialists, borrow some at the
source of private profits.
This policy of scarce
money, of monetary exhaustion of the public, is
clearly expressed in the following circular issued
to all American bankers, in 1887, by authority of the
Associated Bankers of New York, Philadelphia and
Boston, signed by one James Buel, secretary, and
sent from 247 Broadway St, New York:
“Dear Sir:—It is advisable to do all in your power
to sustain such prominent daily and weekly news-
papers, especially the Religious and Agricultural
Press, as will oppose the greenback issue of paper
money, and that you also withhold patronage from
all applicants who are not willing to oppose the
government issue of money.
“Let the government issue the coin and the
banks issue the paper money of the country, for
then we can better protect each other.
To repeal
the act creating bank notes, or to restore to circu-
lation the government issue of money, will be to
provide the people with money and will therefore
seriously affect our individual profit as bankers
and lenders.
See your Congressman at once and
engage him to support our interests that we may
control legislation.”
To see one’s Congressman so as to engage
him to support the bankers’ interests that they
may control legislation! Are we not justified, we
the promoters of Social Credit, to enlist and to
organize the people, the multitude of citizens, to
bring to bear an efficient pressure upon the depu-
ties and to counteract the pressure long exercised
by finance and by the banks?
The circular quoted
is dated 1877 and since then the banking fraternity
has in no way relaxed its organized power, quite to
the contrary, as proven by recent events.
The 1893 circular
The population must not own any money, they
must always rely on the bankers. By reducing
monetary provisions by restricting money and
credit, banks create recessions, cause prices to fall
and scoop up the wealth. We are told it is a panic,
a generalized loss of confidence, but what causes
this panic, what destroys this confidence? “The
Panic Circular” was the name given to the circular
published by the American Bankers Association on
March 12, 1893, and sent to all of the United States
National Banks. This was one week after the inau-
guration of President Cleveland’s term in office,
and bankers wished the repeal of the law passed
three years earlier; the 1890 law neutralized in
part the harm done by the 1983 law we mentioned
above. Banks felt that the people were too indepen-
dent of them. Money in circulation needed to be
decreased. Following is the circular dated March
11, 1893 that was sent the following day:
“Dear Sir;
The interests of the National Banks require
immediate financial legislation by Congress. Silver
certificates and treasury notes must be retired and
National Bank Notes upon a gold basis (based on
public debt) made the only money. This will require
the authorization of $500 million to $1,000 million
of new bonds as the basis of circulation You will at
once retire one third of your circulation and call one
half of your loans. Be careful to make a monetary
stringency among your patrons, especially among
influential business men. Advocate an extra ses-
sion of Congress to repeal the purchasing clause
of the Sherman Law and act with other banks of
your city in securing a large petition to Congress
for its unconditional repeal per accompanying
form. Use personal influence with your Congress-
man and particularly let your wishes be known to
your Senators. The future life of national banks as
fixed and safe investments, depends upon imme-
diate action as there is an increasing sentiment in
favor of Government legal tender notes and silver
coinage.” (From
Who Rules America
by C.K.Howe)
The well organized Bankers Association won
the game against a non organized public. A spe-
cial Session of Congress was called for the very
purpose of destroying the growing confidence of
the people in Government money. To force people
into using banking money, money had to be made
scarce. It was to be felt in all of America and thus
was born the crisis called the panic of 1983.
Is it Heaven, is it weather or is it fate that cause
monetary crisis? Does scarcity of money come
about without design? Who does it benefit? The
following excerpt is taken from a confidential circu-
lar written two years prior to the 1983 panic:
“We authorize our loan agents in the western
States to loan our funds on real estate to fall due
on September 1, 1894, and at no time thereafter.
On September 1, 1894, we will not renew our
loans under any consideration. On September 1st
we will demand our money. We will foreclose and
become mortgagees in possession.
“We can take two-thirds of the farms west of
the Mississippi, and thousands of them east of the
great Mississippi as well, at our own price ... We