Creature From Jekyll Island by G. Edward полностью

Americans would never have accepted the Federal ReserveSystem if they had known that it was half cartel and half centralbank. Even though the concept of government protectionism was

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rapidly gaining acceptance in business, academic, and politicalcircles, the idea of cartels, trusts, and restraint of free competitionwas still quite alien to the average voter. And within the halls ofCongress, any forthright proposal for either a cartel or a centralbank would have been soundly defeated. Congressman EverisHayes of California warned: "Our people have set their faces likesteel against a central bank."1 Senator John Shafroth of Coloradodeclared: "The Democratic Party is opposed to a central bank."2

The monetary scientists on Jekyll Island decided, therefore, todevise a name for their new creature which would avoid the wordbank altogether and which would conjure the image of the federalgovernment itself. And to create the deception that there would beno concentration of power in the large New York banks, theoriginal plan calling for a central bank was replaced by a proposalfor a network of regional institutions which supposedly wouldshare and diffuse that power.

Nathaniel Wright Stephenson, Senator Aldrich's biographer,tells us: "Aldrich entered the discussion at Jekyll Island an ardentconvert to the idea of a central bank. His desire was to transplantthe system of one of the great European banks, say the Bank ofEngland, bodily to America."3 Galbraith explains further: "It washis [Senator Aldrich's] thought to outflank the opposition byhaving not one central bank but many. And the word bank woulditself be avoided.'

Frank Vanderlip tells us the regional concept was merelywindow dressing and that the network was always intended tooperate as one central bank. He said: "The law as enacted providedfor twelve banks instead of one,... but the intent of the law was tocoordinate the twelve through the Federal Reserve Board inWashington, so that in effect they would operate as a centralbank."5

If not using the word bank was essential to the Jekyll Islandplan, avoiding the word cartel was even more so. Yet, the cartelnature of the proposed central bank was obvious to any astuteobserver. In an address before the American Bankers Association, 1- Congressional Record, pt. 5,1913, p. 4655.

2- Congressional Record, pt 6,1913, p. 6021.

3- Stephenson, p. 378.

4- Galbraith, p. 122.

5- Vanderlip, "From Farm Boy to Financier," p. 72.

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THE CREATURE FROM JEKYLL ISLAND