The New Deal I (1933 – 1934) continues: Democratic (socialist/fascist) de facto President Franklin Roosevelt, Esq.—without a constitutional amendment—signs the Glass-Steagall Banking Act of 1933, separating commercial banking and investment banking: Investment banks are allowed to speculate in stocks and bonds, and insure their own deposits; commercial banks are not.  The act also creates the Federal Deposit Insurance Corporation, for the purpose of bailing out badly managed commercial banks at the expense of soundly managed banks.

       The act also permits the unlawful, privately owned Federal Reserve System of (central) Banks begin “Open Market” operations: purchasing Federal debt obligations (Treasury Bills) with newly issued Federal Reserve Notes (Bills of Credit), as opposed to backing them with gold or silver bullion (lawful Money).  And it removes the secretary of the treasury as a member of the Board of Governors of the FRSB.

       NOTE: As an attorney (Officer of the Court) Roosevelt was ineligible to serve in two branches of government at the same time, according to Article I, Section 6 [Clause 2].

       Questions:

• How was banking stability possible without Federal deposit guarantees, or a quasi-government lender of last resort (the Federal Reserve System of (central) Banks)?
• Were depositors more careful in their choosing private banks?
• Were private banks more careful about whom they lent to?
• Were private banks more careful about exposure to noncollectable claims on their competitors?
• Before the era of Federal bailouts for the rich, did depositors have more or less cause for concern when their private bank’s competitors became insolvent?

       [restored 7/8/2022] Thanks to Jim Lorenz for this entry.

       Woe unto them that call evil good, and good evil; that put darkness for light, and light for darkness; that put bitter for sweet, and sweet for bitter!

—- Isaiah 5:20

       When you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them, but protect them against you. … you may know that your society is doomed.

—- Francisco d’Anconia, Atlas Shrugged

       Democratic de facto President Franklin Roosevelt, Esq.—without a constitutional amendment—signs the National Industrial Recovery Act, the United States first national industrial policy—centralized economic planning with private ownership (fascism):

• Authorizing the President to regulate wages and prices with the object of stimulating economic recovery.
• Businesses that agree to comply with NRA regulations will be given a “Blue Eagle” placard to display in their storefront windows as a sign of compliance, and de facto advertising of being an “approved” establishment with which to conduct trade; with the implied tacit approval of the Federal government.
• This act boosts costs on the nation’s businesses by an average of 40%.

       [restored 7/8/2022] Thanks to Bill Holmes for his contributions to this entry.

       Democratic de facto President Franklin Roosevelt, Esq.—without a constitutional amendment—signs the Farm Credit Act of 1933, creating the Farm Credit Administration, to regulate and inspect commercial banks, agricultural co-operatives, and other elements of agricultural credit.

       [restored 7/8/2022] Thanks to Jim Lorenz for this entry.