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FLETCHER: Chairman Eccles, when do you think there is a possibility of 

returning to a free and  open market, instead of this pegged and 

artificially controlled financial market we now have?

ECCLES: Never. Not in your lifetime or mine."

Congressman Jerry Voorhis is quoted in U.S. News, August 31, 1959, as 

questioning Secretary of Treasury Anderson, "Do you mean that Banks, 

in buying Government securities, do not lend out their customers’ 

deposits? That they create the money they use to buy the securities? 

ANDERSON: That is correct. Banks are different from other lending 

institutions. When a savings association, an insurance company, or a 

credit union makes a loan, it lends the very dollar that its customers 

have previously paid in. But when a bank makes a loan, it simply adds 

to the borrower’s deposit account in the bank by the amount of the 

loan. The money is not taken from anyone. It is new money, recreated 

by the bank, for the use of the borrower."

Strangely enough, there has never been a court trial on the legality or 

Constitutionality of the Federal Reserve Act. Although it is on much the 

same shaky grounds as the National Recovery Act, or NRA, which was 

challenged in Schechter Poultry v. United States of America, 29 U.S. 

495, 55 US 837.842 (1935), the NRA was ruled unconstitutional by the 

Supreme Court on the grounds that "Congress may not abdicate or 

transfer to others its legitimate functions. Congress cannot 

Constitutionally delegate its legislative authority to trade or industrial 

associations or groups so as to empower them to make laws."

Article 1, Sec. 8 of the Constitution provides that "The Congress shall 

have power to borrow money on the credit of the United States . . . 

and to coin Money, regulate the value thereof, and of foreign Coin,