Those gathered on Jekyll were officially known as the National Monetary Commission (NMC).
Banks at the time were looked upon with suspicion. The NMC purposed to avoid the stigma of a bank by using the title “Federal Reserve System.” Their recommendation removed from Congress control given Congress by Article 1, Sec. 8 Par. 5 of the Constitution which states, “the power to coin money and regulate the value thereof.” The action of the NMC would eventually mean their seven member board which would control the nation’s money and credit were to be appointed by the President and approved by Congress.
President Woodrow Wilson and the Congress elected in 1912, got the central bank legislation passed. This action ultimate resulted in the Federal Reserve being established.
Since that time one of the sidebar effects is the Federal Reserve acts to make the president look good. That is not a new thing.
Recently the Federal Reserve, which is an independent bank, announced it will purchase $40 million in U.S. Treasury Bonds a month to stimulate the economy. Where does it get the money? The board exercise the authority given it as an eventual outgrowth of the action of “Jekyll Island Club.” They print it. They have the power to issue money and regulate the value thereof. This is power formerly granted only to Congress.
Boosting the economy sounds good, but what actually does it do?
It devalues the dollar by creating more dollars. That sounds abstract, but what it means is it devalues your savings account, your IRA, the value of your home, any other assets, and the purchasing power of the dollar.
Four years after the signing of our Constitution, a federal law was passed making it a capital crime to do anything to devalue the dollar. That law is no longer in force, but the fact it existed indicates how serious the Congress of that day thought it was to devalue the dollar.
Thomas Jefferson in 1791 warned: “If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their father occupied.”
The term “banks” is used in this sense not of your local bank, but the central bank now known as “The Federal Reserve Bank.”
The Federal Reserve is more complicated than space will allow for explaining. However, it is considered an independent bank because its decisions do not have to be ratified by the executive or legislative bodies of government.
Members are appointed by the president and traditionally their actions tend to make the president look good. Isn’t it interesting that just before this election they proposed to take action to stimulate the economy. It hasn’t.
Pray before voting. You are not just selecting a president, you are determining the future of the republic.
The Rev. Dr. Nelson Price is pastor emeritus of Roswell Street Baptist Church.