Fed made $9 trillion in emergency overnight loans

Originally posted by Dance4Life
reply to post by tothetenthpower

 

Your birth certificate is not traded.

What are you talking about?

Here's more information from a website I found recently.

It's all sourced material and quite an interesting read. I dont' know how much is true either way, but it's sure makes a compelling argument regarding our economy and the FED.

www.halexandria.org...

~Keeper

Originally posted by Dance4Life
reply to post by nickoli

 

90-95% is returned to US Treasury. The Federal Reserve is essentially a non-profit organization. What the US Treasury does after that is anyone's guess.

Well in a sense that may be true but in actuality it appears as if the fed is the most powerful organization on earth. Especially once you look into the IMF and our role and place in it.

Heres the deal with the bankers and its just as Jefferson said. "Through periods of inflation and deflation your children will wake up homeless on land their forefathers conquered." And this is exactly what has happened.

This is exactly what has happened by creating and popping bubbles,by extending easy credit,once the bubbles are popped they get your real assets for pennys on the dollar,rinse and repeat. History proves this,this is a fact.

The IMF works the very same way,very same way,the fed has allowed the US and Allies ie EU through the IMF to conquer the world through monetary warfare. Thats why Saddam had to go, he was going to devalue the dollar by selling oil in euros,cant have that no no no Saddam bad boy,bad bad boy,bombs and missles for you sir bombs and missles.

reply to post by tothetenthpower


None of this is true.

Your SSN nor Birth Certificate are redeemable by any Fund(s) or included in any part of any publicly / privately held instrument. Double pinky swear. Cross my heart hope to die.

reply to post by nickoli


There are a lot of holes in that Euro for oil story. I have some other things to get to before I go to sleep, so if this thread is still active tomorrow I will fill in the blanks.

Have a nice evening.

reply to post by Dance4Life


Read the source material I gave you.

Tell me why it's untrue.

I provided information, it's now your job to refute it. A pinky swear isn't good enough .

~Keeper

reply to post by thewholepicture


We aren't going to be paying for it once it means nothing The dollar is going to completely collapse. The United States will be looked at in the history books much as Rome did. 9 Trillion dollars is a LOT of money. I can't even comprehend such a sum of cash. Oh wait, only a small percentage of that is actually available in hard currency!

Hmmm, loaning out dollars that don't actually exist. I think the real concern for me is

I actually get PAID with this? Something that technically doesn't exist? Now that is scary. Being younger, I can't wait to see the collapse of this system. I just hope what comes out of the collapse is better than what we went into.....Remember with any big event like that, what follows is going to be a huge power vacuum. I just hope the wrong person/group doesnt take advantage...

reply to post by spolcyc


I totally agree

I own a small home based business and I am almost tempted to make my clients pay me in gold and silver!

Just wish I could legally do it.

[post by nickoli[/url]


90-95% is returned to US Treasury. The Federal Reserve is essentially a non-profit organization. What the US Treasury does after that is anyone's guess.


WOW ! Where in the world did you come up with this percentage ? I've read all of your previous posts and with only one exception my friend you are utterly mistaken.
Audits of the FRB are conducted yearly by an independent third partly, formally Price Waterhouse. ALL transactions between the 12 FRBs and International Central Banks are EXCLUDED ! Hence Congress has no oversight, this is intentional. If you recall Bernake's last testimony, he threatened a financial collapse if a full audit was done on the FRB. The legislation for a FULL audit was killed in Committee.

Second sentence is complete nonsense. 08, nine TRILLION created and approximately 35 Billion returned to Treasury as earnings over expenses.
Do the math on that one.

Third statement .FRB fiscal year earnings after expenses, AFTER EXPENSES are indeed returned to Treasury. Timmy Geithner then has two options. Return said money ( usually 30>40 Billion ) to the general fund or pay down the Federal debt.

Hopefully we are all aware of Timmy's former employer ? I would suggest that Geithner paid down OUR debt. Per the Dept of Public Debt a small component of the Treasury , almost half of our " Known " fourteen Trillion dollar debt is owed to the Federal Reserve Bank, NOT CHINA. Sorry we have no method for determining where said money actually goes, but I believe that is a fairly well informed guess.

The link provided to Cornell Law was of great interest. Dept paid in Gold or Gold Certificates. The interesting point is, when the FRB lends money to our government
collatoralization is required by law. The 1st method is Gold or Gold Certificates (There are a few other methods ) which gives the FRB claim to OUR gold reserves.
They can and do take physical delivery of our gold.
I have serious reservations as to the actual ownership of our deep stored gold ( a made up separate classification from our normal reserves at Fort Knox and West Point ). I suspect that after 100 years of looting by the FRB none of it is owned by us. The last request to the Banking Comm to audit ALL of OUR gold reserves was voted down.

The FRB is a festering disgrace ! Led only by our alleged representatives that allow this rape to continue.

I don't know if you are a troll or simply a naive reader of the official FRB web site.

Sorry about that. The above Quote was from DancesforLife

All I an say is that if the US Government had used the money they gave to financial institutions, to buy late or troubled mortgage loans, the vast majority of the country would have kept their homes, and the market would have stayed stable, and the government would e able to hold these assets, and it would most likely cost less. the housing market would be as it was then, and money would still flow. But we were tricked and forced to believe, that the best option was to take the money that belonged to us, and give it to those that mismanaged their own funds. The biggest robbery in history.

Originally posted by GTOWarrior But we were tricked and forced to believe, that the best option was to take the money that belonged to us, and give it to those that mismanaged their own funds. The biggest robbery in history.

Yup and now China holds those defaulted mortgages

reply to post by nickoli

I've seen the jykell island stuff and thats all well fine and good but the federal reserve system of 1913 is not the same entity that exists today,changes have been made.

Now dont get me wrong I'm no fed supporter actually quite the opposite but for once I'd like facts and clarity not obfuscation and myths.

That is why I recommend a A PRIMER ON MONEY. SUBCOMMITTEE ON DOMESTIC FINANCE. COMMITTEE ON BANKING AND CURRENCY. HOUSE OF REPRESENTATIVES. 88th Congress, 2d Session Too.

It was written by Wright Patman, chairman on August 4th, 1964.

Wright Patman (1893-1976) was a Democratic representative from Texas, who served in the U.S. Congress from 1929 to his death on March 7, 1976. He was chairman of the House of Representatives Committee on Banking and Currency for 40 years. For 20 of those years, he introduced legislation to repeal the Federal Reserve Banking Act of 1913.
www.michaeljournal.org...

Originally posted by crimvelvet
That is why I recommend a A PRIMER ON MONEY

Be easier to watch the video I posted It really does a good job explaining money

reply to post by nickoli

My goodness,if the fed is privately owned why in hades is it so hard to prove?

SIGHHhhhh
I Really Really did not want to go hunting through that long document. Luckly I took notes but it is still ten pages. If I have to go through this again everyone gets the tidbits I find most interesting (not the whole 10 pages)

DOWNLOADED FROM:
famguardian.org...

Excerpts from

A PRIMER ON MONEY

COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVES

WRIGHT PATMAN Chairman 1964

This is very important. Although US citizens can not exchange Federal Reserve notes for treasury gold, official and semi official foreign banks can.

Behind the Federal Reserve notes is the credit of the U.S. Government. I f you happen to have a $5, $10, or $20 Federal Reserve note, you will notice across the top of the bill a printed statement of the fact that the US government promises to pay not the Federal Reserve promises to pay. Nevertheless most Americans to do not understand what the US Government promises to pay: American citizens holding these notes cannot demand anything for them except (a) they can be exchanged for other Federal Reserve notes or (b) that they be accepted in payment of taxes and all debts public and private. Certain official or semiofficial foreign banks may exchange any “dollar credits” they may hold-that is, deposits with the commercial banks-for an equal amount of the Treasury's gold. Americans themselves may not exchange them for gold . [pg 19]

Although the money in the Federal Reserve is not in anyway “owned” by private banks they get paid interest on it.... “In its latest power play, on October 3, 2008, the Fed acquired the ability to pay interest to its member banks on the reserves the banks maintain at the Fed. Reuters reported on October 3:” 1967? www.globalresearch.ca...

[An incorrect but ] typical explanation runs this way: John Jones deposits $100 in cash with his bank. The bank is required to keep, say, 20 percent of its deposits in reserves, so the bank must deposit $20 of this $100 as reserves, with a Federal Reserve bank. The bank is free to use the other $80, however, to make loans to customers or invest in securities....

The truth is, however, that the Private banks, collectively, have deposited not a penny of their own funds, or their depositors funds, with the Federal Reserve banks. The impression that they do so arises from the fact that reserves, once created, can be, and are, transferred back and forth from one bank to another, as one bank gains deposits and another loses deposits. [pg 37]

Under Secretary of the Treasury Robert V. Roosa, formerly a Vice President of the Federal Reserve Bank of New York, while testifying before the House Committee on Banking and Currency in 1960, described the misconception as follows:
“There is another misconception which occurs much more frequently-that is, the banks think that they give us the reserves on which we operate and that, too, is a misconception. We encounter that frequently, and, as you know, we create those reserves under the authority that has been described here.”

This is WHY the Bankers DO NOT want the public using cash! This is why Obamacare has Section 9006 -companies must file 1099 for all amounts over $600 cash paid per vendor. It is to force small businesses to use credit cards instead of cash! (credit card payment is exempt)

When the Federal Reserve purchases a $1 million Government bond and gives some bank credit for $1 million in its reserve account, that bank also credits the bond dealer's checking account with $1 million. I n other words, to acquire $1 million of reserves, the bank also assumes a liability to pay its customers $1 million. If the transactions stopped here, the bank would, of course, come out even, neither gaining anything nor losing anything. But the fact that there is now $1.million more of bank reserves than existed before means that the private banks as a group can create $6 million more money than existed before. In other words, by acquiring this $1 million more in bank reserves, the private banks have the privilege of creating another $6 million of bank deposits, in the process of which they acquire $6 million in interest-bearing securities or loan paper, less an allowance for leakage into the cash (currency) balances of the public. [pg 43]

“Ownership” of the Federal Reserve: Confusion due to stock and elected board members:

The position of the Federal Reserve officials thus seems to be clear :

The Federa1 Reserve banks are not owned by the commercial banks. The viewpoint of the individuals quoted above has also been borne out by the presidents of the Federal Reserve banks in hearings before the House Banking and Currency Committee. However, officials of the Federal Reserve banks are sometimes inclined to take the opposite position. [pg 78]

Do bankers believe that they own the Federal Reserve banks.
Yes

100% of the “stock” is owned by the private banks. Also after instigating “the Accord” It was later revealed by testimony of some of the Federal Reserve officials to committees of Congress that the Open Market Committee had held a meeting on August 18 and decided not only to raise the discount rate, but to "go their own way" on the Government longer term bond rate as well, despite what the President, the Secretary of the Treasury, and the head of the Office of Defense Mobilization might do”....Therefore the Federal Reserve is not answerable to the President or Congress or the electorate, nor even to a government audit or even Congressional funding!

The original act required that the banks invest 6 percent of their capital stock in the Federal Reserve banks.
Why was the Federal Reserve Act written to require member banks to invest in the so-called stock of the Federal Reserve banks? The framers of the Federal Reserve Act gave many reasons, but the main, reason was this: it was expected that the Federal Reserve would issue money, not mainly against Government securities as is now the practice, but against commercial and industrial loan paper-"eligible paper" as the reader knows.

It was in view of these considerations that Congress, in framing the Federal Reserve Act in 1913, required member banks of the Federal Reserve System to put a certain percentage of their capital into the .'stock" of the Federal Reserve banks; this "stock" was a safeguard against a misuse of the Government's credit which was being delegated to these banks. The 1013 act placed on the member banks, furthermore, a "double liability" for their "stock" in the Federal Reserve banks. In other words, if a Federal Reserve bank failed, the member banks would lose not only their invested capital, but an equal amount of capital which they would also forfeit. [pg 79]

What is the relationship of the government and the banks?

.....On the contrary, this is but one of the many ways the Government subsidizes the private banking system and protects it from competition. The Government, through the Federal Reserve System, provides a huge subsidy through the free services the System provides for member banks. "Check clearing" is one of the services; i.e., the collection and payment of funds due one bank from another because of depositors' use of their checkbook money. The costs of this service alone runs into scores of millions of dollars.

The gross expenses of the combined Federal Reserve banks totaled $207 million in 1963, most of which was incurred as a cost of providing free services to the private banks. Other Federal agencies also receive services from the Federal Reserve. But these are not free. The System received about $20 million for "fiscal agency and other expenses" in 1963.

In addition, the Federal Government provides private banks with a large measure of protection from competition, and the hazards of failure. ... This means, in brief, that nobody can enter the banking business by opening a national bank, unless the proposed bank is to be located where it will not cause an inconvenient amount of competition to other banks already in business. [pg 89]

reply to post by nickoli

Okay I'm starting to get it heres the rub,heres where the conspiracy begins.

The fed deals in monopoly money, backed by the us government who places the debt on the people in the form of taxation of future work. Its based on our future taxes or debt,ie the more the deficit the more your taxes will rise.

But heres the other deal,they only want to be paid in gold! From the very good link supplied by another poster.

Yes, the bankers believe in GOLD as the real reserve currency, but they want the public to believe in the worthless paper they print or better yet the accounting entry in some electronic ledger.

Talk about real "pixie dust" it isn't even a paper entry in a bound notebook that is not easily changed, and therefore allows a simple Audit Trail. The biggest advantage for the banks is with a paper ledger, it can be brought into court and understood by everyone, but with an electronic system you have to rely on "expert's" testimony. Heck with a physical set of second books, you at least had a chance of finding them since they had to be close by. Now the second set of book can be anywhere in the whole world!

No wonder they are trying to push "electronic deeds" for mortgages and a cashless society! Talk about "He who controls money controls the World!"

Back to gold:

The Germans have demanded that gold bullion held in US custodial accounts be returned to their owners, with physical gold shipped back to Germany. The Dubai bankers have demanded that gold bullion held in London custodial accounts be returned to their owners, with physical gold shipped back to the w:st="on"United Arab Emirates. They are following the hired German counsel. In all likelihood, neither US nor London sources are in possession of all the gold held in those custodial accounts, since at least some of it probably was improperly leased. By that is meant without owner permission or knowledge. So an uproar could come soon with charges of gold bullion theft, or at least failure of fiduciary responsibility. Theft is a simpler description. news.goldseek.com...

Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport, in a move that won praise from local traders Thursday. www.marketwatch.com...

The global creditors for the US Treasury Bonds are so angry at the past suffered losses, the prospect of deep future losses, and the corruption laced throughout the US financial system, that they have hired third parties to kill off the US$-gold platforms, socioecohistory.wordpress.com...

You better believe that the real world reserve currency is actually gold. The World Bankers know exactly what they have been doing to the fiat money systems around the world. Why in heck do you think they had FDR steal all the gold from American citizens in 1934 and make it illegal for the "Unwashed masses" to hold it?

reply to post by nickoli

The treasury will recieve the profits from the interest paid and this is what funds your government,when they spend more than they bring in is what creates our deficit.

I found that information while digging for something else:

In 2008 - 85% of the interest collected by the Federal Reserve (or “Fed”) was returned to the Treasury. “As a direct result of logical and relentless agitation by members of Congress, led by Congressman Wright Patman as well as by other competent monetary experts, the Federal Reserve began to pay to the U.S. Treasury a considerable part of its earnings from interest on government securities. This was done without public notice and few people, even today, know that it is being done. It was done, quite obviously, as acknowledgment that the Federal Reserve Banks were acting on the one hand as a national bank of issue, creating the nation’s money, but on the other hand charging the nation interest on its own credit – which no true national bank of issue could conceivably, or with any show of justice, dare to do.” www.sonic.net...

Thank you Congressman Patman, bless your memory.

Thank you,crimvelvet,now were getting somewhere. Its as I suspected,I was just getting very frustrated in trying to follow the money path. Even with all that info its still very obtuse.

This is where the voting people may begin to get a grip on this deal,by voting out those who voted against hr1207. We made a good start last month but we've still got a ways to go. My problem with this scenario is,can we wait till 2012? Personally I dont think so,I think by 2012 it'll be too late and it may be already.

Now this 9 trillion were talking about,this period of fed intervention in Sept 08 thru Apr 09 shows the true extent of just how bankrupted we are/were. Only by the intervention of nothing money/imaginary money that doest exist were we able to put off a total collapse of Americas banking system which would have bankrupted the world. And actuality we have, the world is actually bankrupt, existing only on imaginary money/smoke and mirrors.

In the meantime many have lost their real assets (equity,401k values) including entire countries,Iceland,Ireland and others soon to follow.

The video below is very relevant as Kanjorski tells us at 2:10 about the bank run that caused it all.




Now the question begs,whodunit? who? who? Individuals? Countrys? Who?

Originally posted by pirhanna
The banks take our money, to loan it back to us and make us pay them for it.
Capitalism is a sham.

Almost right:

Banks borrow money so that they can loan money to others that don't have any
When the Loan can no longer be repaid, the Banks still need to repay their Loan,
so your Tax Dollars is used to repay the Banks Loan that was used to Loan in the
First place. It's a Win, Win situation for everyone except for those with the Original
Loan because they still have to repay their Loan and the Tax Payer will never see that
money again.

I like the Euro system better:
Governemnts borrow money from the Banks, When the Banks can no longer repay
their Loans the Governemnts then Loan the Banks with Tax Payers Money.


I am so glad everything is back to normal now, where everybody is borrowing money
from everybody in order to repay the debt they could never afford to repay.

Maybe I'm not understanding the outrage over these emergency overnight loans. Aren't they done all the time between large banks and/or the Fed and banks? I thought that was what the overnight funds rate was. These loans also got paid back from what the article says. Are there stats available of the amount and volume of these emergency loans prior to the financial crisis? It seems we're only looking at a point in time here.

As far as the reserve requirements for banks, I was under the impression that was to have available on hand for cash withdrawals, etc. Is it (was it) actually supposed to have been deposited somewhere? I definitely need to go back and read some of the links people have posted about money, etc. I'm almost embarrased to say that most of what banking and finance I learned was from high school and I never kept up to speed with CDO's and other exotic forms of screwing people over.

As much as the government would like an all cashless society, cash is definitely the way to go. I usually cash one paycheck a month and use it for gasoline, groceries, entertainment, etc. I haven't seen any news on any bank runs...has anyone else?

reply to post by chiponbothshoulders

I believe it is really a "Fascist Dick-Tater Ship".

Y'all just don't git it yet.

Oh I " git it" alright. It is a very sophisticated system for stealing the common folk blind. But to fight it you must understand it.

I am also well aware that "bucking the system" is dangerous. Heck I was fired three times and finally blackballed the fourth time because as a lab manager, I refused to falsify data and Certificates of Analysis.

Congressman McFadden was shot at twice then poisoned andJustice Martin Mahoney "... died less than six months after the trial, in a mysterious accident that appeared to involve poisoning..." Those are just two. "fatal ilnesses" caused by bankers.

However if the "Unwashed Masses" can be brought to understand just what this "sophisticated system" is and how it works, then just maybe

the Marxists and Progressives will STOP aiding the Banksters in FLEECING the poor!

The Bankers steal the wealth of the nation by three methods.

1. Government bonds (see Evidence Given by Graham Towers, Governor of the Central Bank of Canada
Q. When $1,000,000 worth of bonds is presented (by the government) to the bank, a million dollars of new money or the equivalent is created?
Mr. Towers: Yes. "

2. By loans to the public (see DOLLAR DECEPTION: HOW BANKS SECRETLY CREATE MONEY )

3. Through inflation, that is devaluation of the currency.

So how do Activists help the bankers fleece the rest of us?

Because of the Federal Debt, taxes do not pay for any new "Social Programs". Instead the government creates and sells Government Securities. (See quote from "A Primer on Money" at bottom)

When "the Federal Reserve purchases a $1 million Government bond... the private banks have the privilege of creating another $6 million of bank deposits, in the process of which they acquire $6 million in interest-bearing securities or loan paper, less an allowance for leakage into the cash (currency) balances of the public." - A Primer on Money

So every million spent on "social programs" GIVES the bankers $6 million in interest bearing loans!

Unfortunately it does not stop there. Not only does the public get saddled with paying (with their labor) the $1 million Government bond plus interest AND $6 million plus interest in loans, the increase in the money supply deflates their wages and inflates their costs. THAT is the really sneaky part.

Keep in mind, with the blessings of Congress by April 2009 The Fed PRINTED close to a TRILLON dollars in three months, and thereby doubled the money supply.

“In 1976 A typical American CEO earned 36 times as much as the average worker. By 2008 the average CEO pay increased to 369 times that of the average worker.” timelines.ws...

Mises explains exactly how the stealth stealing of our wealth throug "inflation" occurs.

As the pro-socialist and millionaire economics textbook author Robert Heilbroner finally admitted in The New Yorker in 1990, "Mises was right."

...Because money is not capital, that is WEALTH, Mises concluded that an increase of the money supply confers no identifiable social value.

"When new money is created it does not appear magically in equal percentages in all people's bank accounts or under their mattresses. Therefore money spreads unevenly, and this process has varying effects on individuals, depending on whether they receive early or late access to the new money

It is these losses of the groups that are the last to be reached by the variation in the value of money which ultimately constitute the source of the profits made by the bankers and the groups most closely connected with them..."
www.lewrockwell.com...

Did you get that? This is the key point. When money is devalued the first pigs to the trough steal the wealth of the late comers. Newly printed fiat money does not create new wealth it just transfers it from the poor, who are always the last to the trough, to the rich.

Here is how more money is created out of nothing: From A Primer on Money since primary sources were requested by another.

An incorrect but typical explanation runs this way: John Jones deposits $100 in cash with his bank. The bank is required to keep, say, 20 percent of its deposits in reserves, so the bank must deposit $20 of this $100 as reserves, with a Federal Reserve bank. The bank is free to use the other $80, however, to make loans to customers or invest in securities. The expansion of money thus begins.

This kind of explanation not only leads to misunderstanding, it also leads to misguided Government policies and rather constant agitation on the part of bankers for other such policies. Many of the smaller bankers who are, on the whole, not as well versed with the mechanics of the money system as they might be, actually believe that they have deposited a portion of their money, or their depositors' money, with the Federal Reserve. Thus they feel they are being denied the opportunity to make profitable use of this money. Accordingly, there is always agitation to have the Federal Reserve pay the banks interest on this money which they think they have “deposited" with the Federal Reserve.

Furthermore, they are quite certain that the Federal Reserve System has "used" their money to acquire the Government securities which the Federal Reserve may buy in the process of reserve creation. Believing this, the bankers naturally feel that they are entitled to some share of the tremendous profits which the System receives from interest payments on its Government securities.

Many bankers know better. The leaders of the bankers' associations certainly do. But some of these leaders have not hesitated to play on general ignorance and misunderstanding to mobilize the whole banking community behind drives that are nothing but attempts to raid the Public Treasury. The truth is, however, that the Private banks, collectively, have deposited not a penny of their own funds, or their depositors funds, with the Federal Reserve banks. The impression that they do so arises from the fact that reserves, once created, can be, and are, transferred back and forth from one bank to another, as one bank gains deposits and another loses deposits. [pg 37]

....The writer [Congressman Wright Patman, chair- Banking Committee] has had a couple of personal experiences which have provided some amusing confirmation of the fact that the source of bank reserves is not deposits of cash by the member banks....

I went on one occasion to the Federal Reserve Bank of New York where these securities are supposed to be housed, and asked if I might be allowed to see them. The officials of this bank said, yes, they would be glad to show them to me; whereupon they opened the vaults and let me look at, and even hold in my hand, the large mound of Government securities which they claimed to have and which, in fact, they did have.

Since I had also seen reports that the member banks of the Federal Reserve System had a certain number of millions of dollars in "cash reserves" on deposit with the Federal Reserve bank, I then asked if I might be allowed to see these cash reserves. This time my question was met with some looks of surprise; the bank officials then patiently explained to me that there were no cash reserves. The cash, in truth, does not exist and never has existed. [pg 38]

In other words Government securities are PUBLIC DEBT created by Congress and bought by the banks with FIAT MONEY they themselves created.

When the Federal Reserve purchases a $1 million Government bond and gives some bank credit for $1 million in its reserve account, that bank also credits the bond dealer's checking account with $1 million. I n other words, to acquire $1 million of reserves, the bank also assumes a liability to pay its customers $1 million.

If the transactions stopped here, the bank would, of course, come out even, neither gaining anything nor losing anything. But the fact that there is now $1.million more of bank reserves than existed before means that the private banks as a group can create $6 million more money than existed before. In other words, by acquiring this $1 million more in bank reserves, the private banks have the privilege of creating another $6 million of bank deposits, in the process of which they acquire $6 million in interest-bearing securities or loan paper, less an allowance for leakage into the cash (currency) balances of the public. [pg 43]

What amount of Government securities have the private banks acquired with bank-created money? The US House Committee on Banking and Currency answered that question:
“On January 31, 1964, all commercial banks in this country owned $62.7 billion in U.S. Government securities. The banks have acquired these securities with bank-created money. In other words, the banks have used the Federal Government's power to create money without charge to lend $62.7 billion to the Government at interest.

On January 29, 1964, commercial banks had total assets amounting to $304.7 billion, and all of these had been paid for with bank-created money, except $25.4 billion which had been paid for with their stockholders' capital. In other words, less than 10 percent of the banks' assets have been acquired with money invested by stockholders in the banks.” [pg 46]