“If all the bank loans were paid up, no one
would have a bank deposit, and there would not be a dollar of currency or
coin in circulation.
is a staggering thought. We are completely dependent on the commercial banks
for our money.
has to borrow every dollar we have in circulation, cash or credit. If the
banks create ample synthetic money, we are prosperous; if not, we starve. We
are absolutely without a permanent money system. When one gets a complete
grasp upon the picture, the tragic absurdity of our hopeless position is
almost incredible - but there it is. It is the most important subject
intelligent persons can investigate and reflect upon. It is so important that
our present civilization may collapse unless it is widely understood and the
defects remedied very soon”.
Robert H. Hemphill,
of the Federal Reserve Bank of Atlanta