Creature From Jekyll Island by G. Edward

There are seven discernible threads that are woven throughout the fabric of this study. They represent the reasons for abolition of the Federal Reserve System. When stated in their purest form, without embellishment or explanation, they sound absurd to the casual observer. It is the purpose of this book, however, to show that these statements are all-too-easy to substantiate.

The Federal Reserve System should be abolished for the

following reasons:

• It is incapable of accomplishing its stated objectives.

(Chapter 1.)

• It is a cartel operating against the public interest. (Chapter 3.)

• It is the supreme instrument of usury. (Chapter 10.)

• It generates our most unfair tax. (Chapter 10.)

• It encourages war. (Chapter 14.)

• It destabilizes the economy. (Chapter 23.)

• It is an instrument of totalitarianism. (Chapters 5 and 26.) This is a story about limitless money and hidden global

power. The good news is that it is as fascinating as any work of fiction could be, and this, I trust, will add both pleasure and excitement to the learning process.

The bad news is that every detail of what follows is true.

G. Edward Griffin

iii

ACKNOWLEDGMENTS

A writer who steals the work of another is called a plagiarist.

One who takes from the works of many is called a researcher. That is a roundabout way of saying I am deeply indebted to the efforts of so many who have previously grappled this topic. It is impossible to acknowledge them except in footnote and bibliography. Without the cumulative product of their efforts, it would have taken a lifetime to pull together the material you are about to read.

In addition to the historical facts, however, there are numerous concepts which, to the best of my knowledge, are not to be found in prior literature. Primary among these are the formulation of certain

"natural laws" which, it seemed to me, were too important to leave buried beneath the factual data. You will easily recognize these and other editorial expressions as the singular product of my own perceptions for which no one else can be held responsible.

I would like to give special thanks to Myril Creer and Jim Toft for having first invited me to give a lecture on this subject and, thus, forcing me to delve into it at some depth; and to Herb Joiner for encouraging me, after the speech, to "take it on the road." This book is the end result of a seven-year journey that began with those first steps. Wayne C. Rickert deserves a special medal for his financial support to get the project started and for his incredible patience while it crawled toward completion. Thanks to Bill Jasper for providing copies of numerous hard-to-locate documents.

Thanks, also, to Linda Perlstein and Melinda Wiman for keeping my business enterprises functioning during my preoccupation with this project. And a very personal thanks to my wife, Patricia, for putting up with my periods of long absence while completing the manuscript, for meticulous proofreading, and for a most perceptive critique of its development along the way.

Finally, I would like to acknowledge those readers of the first three printings who have assisted in the refinement of this work.

Because of their efforts most of the inevitable errata have been corrected for the second edition. Even so, it would be foolhardy to think that there are no more errors within the following pages. I have tried to be meticulous with even the smallest detail, but one cannot harvest such a huge crop without dropping a few seeds.

Therefore, corrections and suggestions from new readers are sincerely invited. In my supreme optimism, I would like to think that they will be incorporated into future editions of this book.

iv

INTRODUCTION

The following exchange was published in the British humor magazine, Punch, on April 3, 1957. It is reprinted here as an appropriate introduction and as a mental exercise to limber the mind for the material contained in this book.

Q. What are banks for?

A. Yes, usually $500,000,000 or

A. To make money.

thereabouts. This is called

Liabilities.

Q. For the customers?

Q. But if they've got it, how can

A. For the banks.

they be liable for it?

Q. Why doesn't bank advertis-

A. Because it isn't theirs.

ing mention this?

Q. Then why do they have it?

A. It would not be in good taste. A. It has been lent to them by But it is mentioned by implica-customers.

tion in references to reserves of

$249,000,000 or thereabouts. Q. You mean customers lend

That is the money that they have banks money?

made.

A. In effect. They put money

Q. Out of the customers?

into their accounts, so it is really

lent to the banks.

A. I suppose so.

Q. And what do the banks do

Q. They also mention Assets of with it?

$500,000,000 or thereabouts. A. Lend it to other customers.

Have they made that too?

Q. But you said that money they

A. Not exactly. That is the lent to other people was Assets?

money they use to make money. A. Yes.

Q. I see. And they keep it in a

safe somewhere?

Q. Then Assets and Liabilities

must be the same thing?