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How did banks get the power to create money?


How much money can banks create - Banking 101 (Part 4 of 6)





Those original European Kings and Queens who owned America also owned the bank accounts of their "representatives" AKA the ones who were given the charters.

The Province of Pennsylvania, also known as Pennsylvania Colony, was founded in British America by William Penn on March 4, 1681 as dictated in a royal charter granted by King Charles II. His mission was to represent to Parliament the interests of the Congress of Pennsylvania, who were in dispute with the Penn family over taxation. He succeeded in this, but subsequently was also engaged as agent on behalf of the colonies of Georgia, New Jersey, and Massachusetts.

1757 Benjamin Franklin living at Craven Street near Charing Cross., London.

Franklin's mission was to represent to Parliament the interests of the Congress of Pennsylvania, who were in dispute with the Penn family over taxation. He succeeded in this, but subsequently was also engaged as agent on behalf of the colonies of Georgia, New Jersey, and Massachusetts.  He intervened on behalf of the colonies over the hated Stamp Act 1765, being instrumental in its repeal.  But try as he might, Franklin was powerless to prevent the decline in relations between the American colonies and the Crown. Rules By Which A Great Empire May Be Reduced To A Small One by Benjamin Franklin 1773

1764 England England passed a law making it illegal for the colonies to issue their own currency. It was called the "Currency Act of 1764". This caused a great depression in America.

"In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed." — Benjamin Franklin

1763 England Franklin was called before the Parliament in London and asked how he could account for the prosperity in the colonies.

"That is simple. In the colonies, we issue our own paper money. It is called 'Colonial Script'. We issue it in proper proportion to make the goods pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control it's purchasing power and we have no interest to pay to no one." — Benjamin Franklin

1776 England Adam Smith publishes "An Inquiry into the Nature and causes of the Wealth of Nations".

Official version  Around the time of Adam Smith (1723-1790) there was a massive growth in the banking industry. Within the new system of ownership and investment, moneyholders were able to reduce the State's intervention in economic affairs, remove barriers to competition, and, in general, allow anyone willing to work hard enough-and who also has access to capital-to become a capitalist. It wasn't until over 100 years after Adam Smith, however, that US companies began to apply his policies in large scale and shift the financial power from England to America. HISTORY OF BANKING


"The Bank of Venice was the first banking establishment in Europe. It was founded in 1171, and subsisted till the subversion of the republic in 1797. It was a deposit bank only, and issued no notes. The Bank of Amsterdam was established in the year 1609, and that of Hamburg in 1619; they were deposit banks only, and issued no notes. The Bank of England was incorporated in the year 1694, and was the first bank which ever issued notes, or bills to circulate as money, in the transactions of trade and commerce. The Bank of Scotland was established in 1695, with a capital of but 100,000 pounds, which was raised to 200,000 sterling in the year 1744, and in 1804 to 1,500,000 pounds. The original capital of the Bank of England was but 1,200,000 sterling, consisting of a loan of that amount to the government. These two were the only banks (if we except some private companies and bankers in London) that ever issued notes for a circulating medium, or money, and as a substitute for coin, prior to the eighteenth century, and the credit of the notes of the Bank of England was at first so poor, that the bank became involved in difficulties in 1696, and was compelled to suspend payment of its notes in coin, and the notes fell in value, and passed at a heavy discount. The amount in circulation February 28th, 1700, was but 938,240, and in August of the same year only 781,430."
---Merchants Magazine & Commercial Review, August 1850, pages 170-171.


The Law of Banking is known as International Maritime Maritime Admiralty Law.

  • This Maritime Law was based on VATICAN Canon Law.
    Public international law (or international public law) concerns the relationships between the entities or legal persons which are considered the subjects of international law, including sovereign nations, the legal status of the Holy See, international organizations (including especially intergovernmental organizations such as the United Nations), and in some cases, movements of national liberation (wars of national liberation) and armed insurrectional movements.
  • Legal Systems of the World

International Law:

Created in 1945, the United Nations is responsible for much of the current framework of international law. International law is the term commonly used for referring to laws that govern the conduct of independent nations in their relationships with one another. It differs from other legal systems in that it primarily concerns provinces rather than private citizens. In other words it is that body of law which is composed for its greater part of the principles and rules of conduct which States feel themselves bound to observe, and therefore, do commonly observe in their relations with each other and which includes also :
(a) The rules of law relating to the function of international institutions or organizations, their relations with each other and their relations with States and individuals; and
(b) Certain rules of law relating to individuals and non-state entities so far as the rights and duties of such individuals and non-state entities are the concern of the international community. However, the term "international law" can refer to three distinct legal disciplines

  1. Public international law, which governs the relationship between provinces and international entities, either as an individual or as a group.
    It includes the following specific legal field such as the treaty law, law of sea, international criminal law and the international humanitarian law.
  2. Private international law, or conflict of laws, which addresses the questions of
    (a) in which legal jurisdiction may a case be heard; and
    (a) the law concerning which jurisdiction(s) apply to the issues in the case
  3. Supranational law or the law of supranational organizations, which concerns at present regional agreements where the special distinguishing quality is that laws of nation states are held inapplicable when conflicting with a supranational legal system.a
    • The two traditional branches of the field are: (a) jus gentium — law of nations (b) jus inter gentes — agreements among nation

The NJ state Assembly on Monday gave final legislative approval to a law creating a civil action in New Jersey for the misappropriation of trade secret.
The Trade Secrets Act would plug a statutory gap.
Federal law protects copyrights, patents and trademarks but not trade secrets.
In New Jersey, there is only case law to protect them, along with the Computer Related Offenses Act, which allows a damages suit for accessing or destroying computer data without authorization.
Under bill A-921, those who improperly acquire or disclose a trade secret could be sued for damages, consisting of the actual loss and any resulting additional unjust enrichment.





The Bank Of England was originally a private bank, which contracted to lend money to the British Government in a financial crisis.

It was privately owned at its foundation and remained so until the post-war Labour government nationalised it in 1946. So it is owned by the government? No.

Here is how Wikipedia explains it.
In 1977, the Bank set up a wholly owned subsidiary called Bank of England Nominees Limited, (BOEN), a private limited company, with 2 of its 100 £1 shares issued. According to its Memorandum & Articles of Association, its objectives are:- “To act as Nominee or agent or attorney either solely or jointly with others, for any person or persons, partnership, company, corporation, government, state, organisation, sovereign, province, authority, or public body, or any group or association of them….” Bank of England Nominees Limited was granted an exemption by Edmund Dell, Secretary of State for Trade, from the disclosure requirements under Section 27(9) of the Companies Act 1976 , because, “it was considered undesirable that the disclosure requirements should apply to certain categories of shareholders.” The Bank of England is also protected by its Royal Charter status, and the Official Secrets Act. In other words, you and I are not allowed to know who the shareholders are who own the company which carries out Central Banking in the UK. Some people say that Mandelson's buddies, the Rothschilds are major shareholders. Also the Queen. But the information is secret. We are not allowed to know. But what would surprise everybody is that the Bank Of England, which is entitled to issue cash, then lend it and charge interest to the government, is still essentially a private business. What would also surprise people is so is the Federal Reserve of America a [privately owned bank, and all central banks of the world, including the Bank Of International Settlements in Switzerland, which is the Central Banks' clearing house. If the One World Government actually had an address, this would be part of it - the B.I.S, another privately owned bank, the central bankers' central bank, beyond the control of democracy or government, able to influence events secretly from behind the scenes. One thing is for sure is that in times of financial crisis, these central banking networks become supremely powerful, as those like Gordon Brown allow their countries to become effectively indebted to the point of loss of control. The people wielding this power see the world's financial crisis as their moment of opportunity to seize greater power. The scary part of that is that hardly a living soul even knows they exist. Now that's real power.

The Rothschild dynasty: AD 1801-1815

William IX, ruler of the German state of Hesse-Kappel and possessor of a vast fortune, has for some years consulted in a private capacity his friend Mayer Amschel Rothschild, a Jewish banker and merchant of Frankfurt. He values Rothschild's advice both on matters of finance and on additions to his art collection. In 1801 he formally appoints him his court agent, and encourages him to offer his financial skills to other European princes in these troubled years when Napoleon is unsettling the continent. Rothschild responds energetically to this opportunity. By 1803 he is in a position to lend 20 million francs to the Danish government.

The Danish loan is the first of many such transactions on behalf of governments which rapidly establish the Rothschild family as Europe's most powerful bankers, rising to a pre-eminence comparable to that of the Medici and the Fugger in earlier centuries.

Money was gold or silver.

Mining gold or silver, or working with gold and silver was very very hot, and dirty work. Monarchs, Kings and Queens didn't do hot dirty work. Other people did. They would choose only a few people in their country with doing that kind of disgusting work. Those people were the ones who were the goldsmiths, and the silversmiths. These people were only allowed to live in only certain places. They were not citizens of the country. They didn't have the rights of citizens and could be forced to leave the country any time. They couldn't own homes, They were also persecuted in many other ways. They were considered a low class of people, and outcasts. The ironic part of the story is that these very same persecuted people were bought into positions of power within Banking back in 1066 by the Norman Anglo-Saxon Monarchs. For this they accepted being controlled by them.


England, France, Spain and Holland, masters of the world (1600-1700)​

1816: The Gold Standard

Gold was officially made the standard of value in England in 1816. At this time, guidelines were made to allow for a non-inflationary production of standard banknotes which represented a certain amount of gold. Banknotes had been used in England and Europe for several hundred years before this time, but their worth had never been tied directly to gold. In the United States, the Gold Standard Act was officially enacted in 1900, which helped lead to the establishment of a central bank.

1930: End of the Gold Standard

The massive Depression of the 1930s, felt worldwide, marked the beginning of the end of the gold standard. In the United States, the gold standard was revised and the price of gold was devalued. This was the first step in ending the relationship altogether. The British and international gold standards soon ended as well, and the complexities of international monetary regulation began.

Sophisticated countries needed to borrow money to buy goods from other countries. They would carry their gold and silver to the goldsmith or silversmith who kept it for them. These people would write down on a piece of paper the total amount they were keeping.

Now the country would ask to borrow a lot more gold or silver than they really had so that they could go buy things the country needed.

A lot of Gold was very heavy and people are afraid of getting robbed so The goldsmith or silversmith would write down how much gold they were keeping and it was a "note" they would notate the amount on a piece of paper. This was a note. The note said how much money there was being stored.

Then the goldsmith, silversmith would agree to lend them more money but only if the person agreed to pay a fee in exchange for the risk the goldsmith silversmith takes when lending money. They don't know if they would ever get paid back.

  • Banks Exist because No Modern Economy Can Exist Without A Banking System.
  • A Banking System Develops Terms for the Borrower to Pay Interest on Money Borrowed.
  • Banking is about collecting Interest on Money loaned. Every economy in the world depends on loans, and nobody would lend money to anyone without getting interest.





The Federal Reserve pays the Bank of England which finally ends up in the Swiss Bank of International Settlements. [BIS]

Bretton Woods Conference


Bretton Woods

Bretton Woods system

Note: The Brettons were descendants of Hugenots, (French Protestants), who had come to the West Indies in the late 17th Century to escape religious persecution. Originally they had settled in St. Christopher, then in St. Thomas. Later, they moved to St. Croix. According to archive material, the Brettons, on their mother's side, were descended from an old French noble family whose last representative was Admiral Jean Grace de Bretton. The Admiral, in turn was a direct descendant of another distinguished French Noval leader, Coligny. Admiral Jean Grave was related also to the families de Witt and Ruyter of Holland. With this 'fighting blood" in her veins, it is little wonder that Anna Heegaard was in the forefront of the battle to effect drastic reforms in the social system of the Danish West Indies.

The Bretton Woods western financial system is based on debt. And in fact, the entire western financial system has been running illegally and is technically bankrupt. For more on the real history of Bretton Woods and its connection to JFK, The Global Collateral Accounts and the gold standard. The IMF, also known as the “Fund,” was conceived at a United Nations conference convened in Bretton Woods, New Hampshire, United States, in July 1944.

The Bretton Woods conference in 1944 that cast the foundations of the modern international monetary system. 
Held in the heat of World War II, when delegates from 44 allied nations fighting Hitler gathered in the mountains of New Hampshire to create the International Monetary Fund and the World Bank.Transcript of 1944 Bretton Woods Conference Found at Treasury​

The Nixon Shock was a series of economic measures taken by United States President Richard Nixon in 1971 including unilaterally canceling the direct convertibility of the United States dollar to gold. It helped end the existing Bretton Woods system of international financial exchange, ushering in the era of freely floating currencies that remains to the present day.

The World Bank was created at the 1944 Bretton Woods Conference, along with three other institutions, including the International Monetary Fund (IMF). 

IMF The International Monetary Fund 

To maintain stability and prevent crises in the international monetary system, the IMF reviews country policies and national, regional, and global economic and financial developments through a formal system known as surveillance.

International Finance Corporation's (IFC), the World Bank's private sector lending arm.

Established in 1944 at the Bretton Woods summit the World Bank Group is based in Washington D.C. with some 10,000 staff, 30 per cent of which are based in more than 100 country offices. The current president is Robert Zoellick who was appointed in 2007.
The World Bank Group is made up of five organizations: International Bank for Reconstruction and Development (IBRD); International Development Association (IDA); International Finance Corporation (IFC); Multilateral Investment Guarantee Agency (MIGA); and International Centre for Settlement of Investment Disputes (ICSID). 

Critical Voices of the World Bank Organized by the Bretton Wood Organization
IFC investment through banks, private equity firms and other financial intermediaries
Global rules or national space?
The IMF staff position note also argues for greater global cooperation on regulation, saying that "if they are allowed to develop piecemeal, a de facto fragmentation of global financial markets could lead to regulatory arbitrage and a build-up of systemic risks in countries or regions where such measures are absent or oversight is lax."
In July 2010, the IMF discussed a framework for enhanced coordination of cross-border bank resolution. The policy paper for that discussion set out a range of options for dealing with failing banks, including an international treaty for cross-border bank resolution, a non-binding framework for "enhanced coordination", and the de-globalisation of financial institutions. The IMF board "recognised that the 'de-globalisation' of financial firms could, to some extent, alleviate the problem of the absence of an international resolution regime," but argued against this approach because it would "likely entail efficiency losses", a position supported by the staff report. This is despite repeated research findings that financial globalisation produced no discernable positive impact on economic growth (see Update 68, 61, 35). The board agreed that the staff should pursue, in conjunction with financial regulators, a non-binding system of enhanced coordination.


THE WORLD CENTRAL BANK AKA The Bank for International Settlements, 1930-1945
The Tower of Basel - Centralbahnplatz 2, 4051, Basel, Switzerland

Run by an inner elite representing the world's major central banks it controls most of the transferable money in the world. It uses that money to draw national governments into debt.
BIS Official Website 

WBG—World Bank Group

The Bank for International Settlements (BIS) was established in Basel, Switzerland in 1930 as an international financial institution, enjoying special immunities, pursuant to the Hague Agreements of 20th January 1930. The founder shareholding members were the central banks of Belgium, France, Germany, Italy, Japan, the United Kingdom and the United States (the Federal Reserve did not take up its rights as founder member until 1994). Within two years of its founding, nineteen other European central banks had subscribed to the Bank's capital. The Bank opened its doors in Basle, Switzerland on 17th May 1930. 

The Zurich-based Swiss National Bank is a private banking and wealth management business owned by Julius Baer.
The SNB has been a member of the Bank for International Settlements since its inception in 1930. The SNB participates in various BIS committees. These include the Basel Committee on Banking Supervision, the Committee on Payment and Settlement Systems and the Committee on the Global Financial System. On numerous occasions, the SNB has participated in bilateral balance of payments assistance, coordinated by the BIS or by other international organizations.

1/6/14 Swiss Central Bank Loses £10bn On Gold Plunge The Swiss central bank stops dividend payments to cantons and the capital after suffering significant losses on its gold holdings.


Former Swiss banking exec is latest WikiLeaks informant
January 17, 2011 Rudolf M. Elmer, former head of the Cayman Islands office of the prominent Swiss bank Julius Baer, announced that he has handed over to Wikileaks information on 2,000 prominent individuals and companies that he says engaged in tax evasion and other criminal activity.  Elmer described those exposed as “pillars of society”. In 1950 US corporations footed 26% of the total US tax bill.  By 1990 they were covering only 9%, contributing to massive budget deficits and the current $14 trillion US debt.  In 2009 corporate leviathans such as Bank of America, General Electric and Exxon Mobil paid no US federal taxes.  Exxon's net profit for that year was over $45 billion.  It utilized subsidiaries in the British Crown-controlled Bahamas, Bermuda and Cayman Islands to dodge the IRS.

BIS was established in Basel, Switzerland in 1930.
It is the most powerful bank in the world, a global central bank who control the private central banks of nearly every nation.
The first President of BIS was Rockefeller banker Gates McGarrah - an official at Chase Manhattan and the Federal Reserve.
McGarrah is the grandfather of former CIA director Richard Helms.
The Rockefellers and Morgans- had close ties to the City of London.

WikiLeaks and Bank Julius Baer previously clashed in early 2008 when the antisecrecy organization published hundreds of documents pertaining to its offshore activities.

The bank succeeded, briefly, in gaining a court order to shut down the Web site. The injunction was subsequently overturned and the case was dropped. The offshore banking industry has come under increasing pressure in recent years amid accusations that places like the Caribbean, with looser financial laws, allowed investors to avoid taxes and that some banks helped to create complex webs of companies and trust funds there to confuse tax authorities abroad. In 2009, Bradley Birkenfeld, a former private banker for UBS, disclosed some of the industry's illegal tactics and forced the bank to turn over details of several thousand client accounts to the I.R.S. as part of a legal settlement. UBS agreed to pay a $780 million fine and admitted criminal wrongdoing. Mr. Elmer, who previously provided documents from his former employer to national tax authorities including the Internal Revenue Service in the United States, said he had turned to WikiLeaks to “educate society” about what he considers an unfair system that serves the rich and aids those who seek to launder money. The offshore banking industry has come under increasing pressure in recent years amid accusations that places like the Caribbean, with looser financial laws, allowed investors to avoid taxes and that some banks helped to create complex webs of companies and trust funds there to confuse tax authorities abroad. In 2009, Bradley Birkenfeld, a former private banker for UBS, disclosed some of the industry's illegal tactics and forced the bank to turn over details of several thousand client accounts to the I.R.S. as part of a legal settlement. UBS agreed to pay a $780 million fine and admitted criminal wrongdoing.




JUST HAVE YOUR LAWYER PUT YOUR FOREIGN PROFIT into accounts in Ireland, the Netherlands and Bermuda using financial techniques called "the Dutch Sandwich" and "the Double Irish" arrangement. Google credits its Irish office with the majority of its non-U.S. sales revenue — and then shuttled that money through various subsidiaries located in Ireland and other countries to save billions in taxes.




Because the regional Federal Reserve Banks are privately owned, and most of their directors are chosen by their stockholders, it is common to hear that control of the Fed is in the hands of elite bankers. However, individuals do not own stock in Federal Reserve Banks. The stock is held only by banks that are members of the system. Ownership and membership are synonymous.


Business is just Business - I must admit that given the choice between doing business with violent gangs or with banks I'd chose the gangs.

30+ years have taught me that bankers can't be trusted. ~ anon

Woodrow Wilson

Woodrow Wilson was, in fact, a racist pig. He was a racist by current standards, and he was a racist by the standards of the 1910s, a period widely acknowledged by historians as the "nadir" of post–Civil War race relations in the United States. 

Easily the worst part of Wilson's record as president was his overseeing of the resegregation of multiple agencies of the federal government, which had been surprisingly integrated as a result of Reconstruction decades earlier. At an April 11, 1913, Cabinet meeting, Postmaster General Albert Burleson argued for segregating the Railway Mail Service. He took exception to the fact that workers shared glasses, towels, and washrooms. Wilson offered no objection to Burleson's plan for segregation, saying that he "wished the matter adjusted in a way to make the least friction." Both Burleson and Treasury Secretary William McAdoo took Wilson's comments as authorization to segregate.

Woodrow Wilson solicited expert advice from Virginia Rep. Carter Glass, soon to become the chairman of the House Committee on Banking and Finance, and from the Committee's expert adviser, H. Parker Willis, formerly a professor of economics at Washington and Lee University. Throughout most of 1912 Glass and Willis labored over a central bank proposal,and by December 1912 they presented Wilson with what would become, with some modifications,the Federal Reserve Act.

While he was a professor at Washington and Lee, Willis advised Senator Carter Glass of Virginia, one of the key legislators involved in the founding of the Federal Reserve. Willis also served on the National Monetary Commission, which recommended the creation of the Federal Reserve, and he went on to become the research director at the Federal Reserve from 1918 to 1922. Willis was also the first editor of the Federal Reserve Bulletin, the official publication of the Fed, which in Willis's time as well as today provides a wealth of economic statistics. The performance of the Federal Reserve in its early days, particularly the part played by the young U.S. central bank in the Great Depression of the 1930s.1 In honor of Willis's important contribution to the design and creation of the Federal Reserve, I will speak today about the role of the Federal Reserve and of monetary factors more generally in the origin and propagation of the Great Depression. Let me offer two caveats before I begin: First, as I mentioned, H. Parker Willis resigned from the Fed in 1922, to take a post at Columbia University; thus, he is not implicated in any of the mistakes that the Federal Reserve made in the late 1920s and early 1930s.

USA Senator Nelson Wilmarth Aldrich (1841-1915) of Rhode Island,


From the Boston Federal Reserve Bank:
The Aldrich plan received scant public support and aroused strong opposition. Many progressives protested that the Aldrich plan would not provide for adequate public control of the banking system, that it would enhance the power of the larger banks and the influence of Wall Street; and that its currency reform provisions would be dangerously inflationary. "Big financiers are back of the Aldrich currency scheme," William Jennings Bryan proclaimed. The Nebraska populist, a three-time Democratic presidential nominee who had based his campaign in 1896 on an attack on the bankers and the deflationary impact of the gold standard, asserted that, if the Aldrich plan were implemented, the big bankers would "then be in complete control of everything through the control of our National finances."
Bryan's denunciation of the Aldrich plan was shared by many leaders of the progressive movement. Though this opposition signaled an early demise for the kind of currency and financial plan that the bankers wanted, two significant events of 1912 helped to prepare the way for passage of a banking and currency reform program which the bankers in general feared, but which the progressives wanted -- a reform designed to limit the power of the banking system and put central banking under public, rather than banker, control.

Read Books Online for Free Title Banking And Business Author H. Parker Willis, George W. Edwards Publisher Harper & Brothers Publishers Year 1922 Copyright 1922, Harper & Brothers

Chapter XXIV. 1 Evolution Of The American Banking System

While there is not much use in studying banking from the standpoint of ancient history, or in an antiquarian way, it is of considerable importance to understand how existing banking institutions have developed and what is the practice in regard to banking in other countries of the world. It is by such study that the existing banking problem is properly apprehended and that the foundation is laid for a suitable understanding of what should be done in the way of legislation for the improvement of present methods. The nineteenth century is a period exceedingly rich in banking experience. During that century a great variety of banking methods were tried, and theory after theory was taken up, applied, and discarded. So also in the matter of practice a great transformation was brought about and banking methods were almost revolutionized. This makes the banking history of the nineteenth century of very great value to the student of the subject from the practical standpoint. In the United States, a review of banking history will show that many of the numerous schemes and proposals now brought forward from time to time as original have been tried, worked out, and thrown aside. Here and there a good plan or system has been discarded for inadequate reasons, and an outline of past efforts shows why the changes then introduced were unwise and why a return to some methods then abandoned may be beneficial.

1 Material for this chapter has been largely drawn by permission of the publishers (La Salle Extension University, Chicago, Illinois) from the 1916 edition of American Banking, by H. P. Willis.


The hasty survey which has thus been made of foreign systems of banking leads to the conclusion that while there has been no absolutely uniform trend of development in foreign countries, the general movement has been toward the creation of central banks, usually exercising the function of note-issuing and operating more or less as bankers' banks. In most countries such banks are surrounded by a corps of other institutions, which in some cases may be allowed to issue notes, but have ordinarily tended to become deposit banks, either confining themselves to local loans or else engaging in foreign-exchange operations as well. There is a distinct division between the countries of the world as to the scope and extent of branch banking. The tendency in Great Britain, the British colonies, and in various other parts of the world has been toward the establishment of large networks of branches, with a corresponding concentration of banking power in the home offices of the various institutions which maintain such systems. In other parts of the world branch banking has made less progress, and there has been a considerable tendency toward individualization of banking. This would seem to be true in a number of South American states and also in some parts of the Far East. Among the western European countries, France and Italy have seemed inclined to move in the direction of individualization of banking, or, at all events, have not adopted the branch system in the same highly developed degree as has been true of other countries.

Details of banking organization differ quite materially from country to country, but the tendency has been to give to the government either a stockholding interest or else a very distinct power of control or of operation in the central reserve institution of each country, while other banks have for the most part been left in the hands of individuals, the government's control over them being expressed either through general banking laws designed to prescribe operations which may or may not be embarked upon, or in part through more or less frequent examination and inspection of accounts.

The United States stands out separately from the rest of the world in having prohibited the branch system within the country, and consequently as having sought the development of a highly individualized system of banking units, which, however, are now united, through the stock ownership of the twelve Federal Reserve banks, into a co-operative system.

However, individuals do not own stock in Federal Reserve Banks.

The stock is held only by banks that are members of the system.
Ownership and membership are synonymous.

But Private Families can own The Banks that are members of the system.