"We have what is known as the Federal Reserve Bank System. That system is not owned by the Government. Many people think that it is because it says “Federal Reserve.” It belongs to private banks, private corporations. So we have farmed out to the Federal Reserve Banking System that which is owned exclusively, wholly, one hundred percent to the private banks—we have farmed out to them the privilege of issuing the Government’s money!"
by:
Wright Patman
[John William Wright Patman] (1893-1976) US Congressman (TX-D)
Source:
Congressional Record (29 Sep. 1941)
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Reader comments about this quote:
Pretty strait forward -- it would be interesting to see any possible information that could possibly refute this beyond some ramblings of ignorant peoples who simply babble that the system isn't this way. Whenever such people are asked how or why it is supposedly not this way -- they never have any evidence to back up their claim except to say that they just don't believe it. Opinion, without evidence, reason, or logic is worthless drivel.
 -- Logan, Memphis, TN     
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    If there is anyone out there that believes the Federal Reserve is a governmental entity, please direct me to where the enabling act may be found, defining said entity as such.
     -- Mike, Norwalk     
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    OK now, who is "We" in this quote? "We have farmed out to the Federal Reserve Banking System....." Don't include me in that "We". I was not part of this deception on America, but I raise my hand to be part of the solution to disolve this deception.
     -- Me Again     
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    At least this quote refutes those who say it is owned by Jews, spicks, and foreigners. It is owned exclusively by banks and S&L's. Its policy is controlled by a govt appointed board who reports regularly to Congress. Fully audited every year by independent auditors and the GAO. Name any non-government entity that is audited by the Government Accounting Office. All net earnings of the Federal Reserve return to the US Treasury. It seems to me that an entity that reports to Congress regularly, is audited by the US Governments General Accounting Office, pays all of its earnings to the US Treasury, whose chief offcers are appointed by Congress and President is for all intents and purposes owned by the US Government or more nearly the US People. The fact that it has an independent board may bother some but others recognize the benefit of keeping politicians hands from directly influencing policy. "Me Again" the answer to your question is in the preamble: We the People..., in Order to....promote the general Welfare..". Those skeptics who won't believe anything most others write may start confirming my post by going to publiceye.org. And you should start your analysis and understanding of Liberty-tree posts by asking yourself why does not the editor ever post positive quotes about things like the Fed, or education, or any other issue? I respectfully suggest it is because he knows what triggers y'alls responses, gets your goat and fires y'all up. I think Wright Patman was from Texas or some other small southern (redneck) state which explains alot about his quote and y'all also.
     -- Waffler, Smith, Arkansas     
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    Maybe we need to get "fired up" Mr Waffler.
     -- Cheryl, Avenal     
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    The Federal Reserve is NOT audited by the GAO -- show me the report, Waffler. The Fed pays no earnings to the government -- show me the payments, Waffler. The Fed is not owned by the government or the people -- otherwise, where are my dividends from the rivers and rivers of interest paid to the Fed? Quite the opposite, my friend, the IRS takes one third of our earnings and gives it directly to the Fed -- if you ever sent a check to the IRS check out where it was deposited. The Fed is a private bank -- it is not the US Treasury. And why shouldn't our Congress influence economic policy? That's what they are elected to do! Again Waffler wants it both ways -- he is an adament supporter of 'majority rule' except when it comes to policy. (??) If what Waffler means is that if the people ever discover that they can vote themselves money that would be the end of our free nation, I couldn't agree more. And I do believe Arkansas has its share of rednecks, Waffler, or Alabama or whatever state you really live in. The Fed is no different than the other 3 central banks that have been authorized in US history, all of which did the same thing -- and we need to do what was done to the others, revoke their charter and seize their assets, and hang those bastards high so that we never forget and never introduce another system like it ever again.
     -- E Archer, NYC     
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    Maybe you need to get educated Cheryl. Ask yourself Cheryl how can it be that an institution that has existed for almost 100 years is criticized constanly by a small fringe and yet still does a booming business every year, year after year. Do you thing the small fringe might be just a little bit goofy. Being fired up is okay if it directs you to learning and education. I understand the natural resentment to brief cases, those expensive dark blue and black suites all those guys wear but your anger has to be a little bit more educated than that. Things are generally the way they are because that is the way we want them to be including the Federal Reserve Bank of America.
     -- Waffler, Smith, Arkansas     
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    GAO Audits of Fed Reserve: US Code Title 31 Money and Finance, Chapter 7 General Accounting Office, Subchapter 11 General Duties and Powers. Section 714 Audit of Financial Institutions, Federal Reserve Board, Federal Reserve Banks, FDIC, Office of the Comptroller of the Currency. I suggest Cheryl you start with this as a step in education.
     -- Waffler, Smith, Arkansas     
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    Well, that's a nice code -- can you provide us with a place we can actually look at the audit information. I've heard Congressman on the Financial Committee speak for years saying that while the Fed is required to be audited, it seldom is. Reports used to be released to the public concerning the FED, but those stopped in the early 90's. What good is a damn audit if the people or their representatives aren't privy to checking the information? Good for you, you finally provided a good cited work. ..laughs.. I've still got my bet placed that you were an accountant -- and probably worked for some government agency; most likely the IRS.
     -- Logan, Memphis, TN     
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    The Federal Reserve Annual Report for 2007 can be found at http://federalreserve.gov/goarddocs/rptcongress/annual07/pdf/AR07.pdf Please don't thank me just examine your own lazy stupidity. I've known of for a long time not only in research but in your ability to read and analyse what you read. How stupid can a man be to accept the construction "America is a republic not a democracy".Gentleman from Norwalk thinks it is okay to be insicere, to lie, to be dishonest in attacking society, government etcetera. It is okay to hate society, government etecetera. But in my view it is not okay to have your own facts, to lie, be insincere and disrespectful. PS: does the fact that the above report is found on a .gov (dot gov) site suggest anything to the folks that say the Fed is a private secretive institution. I am sure it is lost on most of the liberty-tree radicals.
     -- Waffler, Smith, Arkansas     
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    Oh for goodness sakes, Waffler, do you not comprehend anything people have been saying? Does the Fed produce reports? Of course! Mind boggling amounts of reports and graphs and analysis -- enough to put an entire country to sleep. If the Fed indeed controls the government I think they can get a .gov domain name without a problem. Does the Fed report to Congress? Yes, but the Fed is not subject to an audit -- if I am mistaken, please provide the date of the audit and the results of it -- I would be particularly interested in the list of the current stockholders (what government office or agency has stockholders?). Is the Fed a publically traded stock? No, so it is PRIVATE. BTW the link above brings up the fed site but no page found for that link. The US Constitution guarantees a republican form of government, not a democratic one, so once again you are speaking falsity. Show me the word 'democracy' or 'democratic' in the US Constitution -- you can't so I won't wait for it -- again, more misinformation. If you are really interested in honesty I suggest you stop lying to yourself. I am neither lazy nor stupid -- if you have real evidence that proves your claims not just inuendo and public opinion then it is your responsibility to back your claims up, not ours. Why don't you tell us what you did before you retired -- it would be helpful to back up your claims. If you worked for the IRS that might help put your comments into perspective. As far as I can tell you merely parrot whatever you googled before you post without any real depth or diligence. Provide me the link where the amount the Fed paid the US Treasury its share of the profits of the Fed -- i.e. the interest paid to the Fed. Please dazzle us with your brilliance. You can end this debate by simply explaining what a Federal Reserve Note is and how it is issued since apparently we are so stupid and you are so sincere.
     -- E Archer, NYC     
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    Audited by the government???? why won't the Fed, let the government audit the gold in Ft. Knox????? Waffler,... at best you're a moron. But keep writing, it shows just how many stupid people there are in this country.
     -- Karl Marx, franklin Pa.     
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    The Fed is audited both by the GAO and Deloitte & Touche. You can see the date and full audit results here: http://www.federalreserve.gov/boarddocs/rptcongress/annual07/default.htm The Fed doesn't own the gold at Ft Knox to begin with. It is owned by the US Treasury Department.
     -- Black Swan, LA     
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    The gold held by the US Treasury, wherever it may be, has had gold certificates issued for it. Those certificates used to be used as 'money,' BUT when FDR told all Americans that they must turn in their gold certificates for Federal Reserve Notes, the Fed exchanged pieces of paper for gold certificates redeemable in gold to the bearer. SO, whoever has those certificates owns the gold -- and it isn't you. The Fed took all the gold certificates in circulation in 1934. The so-called audits are not done by the US Treasury or the Congress but by consultants that the Board of Governors select. I read the so-called audit but it is an audit of the Board of Governors only, not the actual Federal Reserve Banks. Also, as a private corporation, why doesn't the Fed pay ANY taxes? And why are our tax checks deposited directly into Federal Reserve Banks?
     -- E Archer, NYC     
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    Federal Reserve does pay its profits to the Treasury, and those payments are classified as governmental receipts, or revenue, in the federal budget. For 2007 to see this payment, look at the FRB Combined Financial Statement and shaded area marked FRB Combined Statement of Income. Under the Heading Distribution of Comprehensive Income is Payments to US Treasury, which totals $34.6 billion for 2007.
     -- Black Swan, LA     
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    Archer, the link I gave you above clearly shows that BOTH the BOG and the Fed District banks are audited.
     -- Black Swan, LA     
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    And the (non) Federal (no) Reserve continues to rape and pillage the nation. Thieves and Extortionists...They have GOT to GO! I think once the collective conscience of America has tuned into these parasites we just might see a speedy trial and ...what's the punishment for treason? ;-)
     -- J Carlton, Calgary     
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    Andrew Jackson : Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.
     -- J Carlton, Calgary     
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    Waffler, verbosity doesn't equal intelligence as you have amply proven today.
     -- jim k, Austin, Tx     
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    And waff, this "small red-neck state" of Texas has the best economy in the country; not bad for a small red-neck state.
     -- jim k, Austin, Tx     
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