Taxation as Looting

asset forfeiture

Chicago Tribune 01DEC1932

So the People’s Party got 9% of the vote in 1892, then the Democratic Party copied the Communist Manifesto income tax plank into their own platform. So… what came next, once the Progressive Party levered its passage?

Chapter 9

Manley Sullivan

            A Carolina bootlegger and car dealer named Manley Sullivan was convicted of income tax evasion, but appealed to the Fourth Circuit Court in 1926. Sullivan claimed that since bootlegging was illegal, filing tax returns for it would amount to self-incrimination prohibited by the Fifth Amendment. Sullivan won on appeal October 19 of 1926, but Assistant Attorney General Mabel Willebrandt appealed the Circuit Court’s decision, and the Supreme Court granted a hearing March 7, 1927.

The actual date on which attorney Manley Sullivan (or Manly Sullivan, records are inconsistent)  was originally charged, and in what location, is one of the most tightly-held secrets in American jurisprudence.  Federal Reserve bank balances (in millions) began falling nationwide when the decision freeing Sullivan under the 5th Amendment was struck down by the Supreme Court. Source, Lawrence, 1929. The nation’s economy at the time was roughly $100 billion in gold, and the Federal budget about $4 billion.

FRB reserves accelerated when the 5th Amendment was upheld in 1926, then began falling after the conviction was reinstated

The trial ended on May 16, 1927, reversing the appeals court decision and effectively nullifying the Fifth Amendment.[1] This time the dip in stock prices was much smaller. For one thing the discount rate had been carefully lowered since September of 1926, disguising somewhat any stock market effects.[2] On the heels of the Sullivan decision came the Marron case, in which the Supreme Court approved the use of a San Francisco speakeasy proprietor’s illegally seized books and records. Marron was also argued by Mabel Willebrandt and her victory eliminated what Fourth Amendment protection had survived the wartime Espionage Act.[3] Revenue agents were empowered to seize records and force confessions at will, eliminating the ditty of the times:

My sister sells snow to the snow-birds
My father makes bootlegger gin,
My mother sells love for a living,
My God! how the money rolls in.
My brother’s a big missionary
He saves little girlies from sin
He’ll save you a blonde for five dollars
My God! how the money rolls in.

 

[1] (U.S. v. Sullivan 5/16/27 274 U.S. 259)

[2] (Lawrence 1929 286-289)

[3] (Willebrandt 1929 241) (Marron v. United States 11/21/27 275 U.S. 192)

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Voter Comparison Shopping

When was the last time you saw political party platform planks compared? The entrenched Kleptocracy parties both claimed to be different in 2016. Are they?

The Democrats still want your kids incarcerated for marijuana, only now they want to class it in the same category as methamphetamine and cocaine instead of heroin. The Libertarian Party is against sending men with guns to kick down doors–especially when no harm has been done to merit such violence. The Republican Party wants that Old Testament Prohibitionism that caused most of our financial crashes and economic depressions. Sound farfetched? Exaggerated?

Here is the 2016 straddle plank the Democratic party added to its lengthy platform by the narrowest of margins before choosing a candidate:

Because of conflicting federal and state laws concerning marijuana, we encourage the federal government to remove marijuana from the list of “Schedule 1″ federal controlled substances and to appropriately regulate it, providing a reasoned pathway for future legalization.

Here is the Libertarian plank that covers policy on marijuana:

The prescribed role of government is to protect the rights of every individual including the right to life, liberty and property. Criminal laws should be limited in their application to violations of the rights of others through force or fraud, or to deliberate actions that place others involuntarily at significant risk of harm. Therefore, we favor the repeal of all laws creating “crimes” without victims, such as the use of drugs for medicinal or recreational purposes. [Banned from televised debates]

Here is the Republican plank on some drugs:

The progress made over the last three decades against drug abuse is eroding, whether for cultural reasons or for lack of national leadership. In many jurisdictions, marijuana is virtually legalized despite its illegality under federal law. At the other end of the drug spectrum, heroin use nearly doubled from 2003 to 2013, while deaths from heroin have quadrupled. All this highlights the continuing conflicts and contradictions in public attitudes and public policy toward illegal substances. Congress and a new administration should consider the long- range implications of these trends for public health and safety and prepare to deal with the problematic consequences.

True, the Dems pretend to believe they can repeal the Second Amendment, enact Kristallnacht laws, abolish guns and turn These States into a banana republic or European satrapy. And the GO-Pee platform flatly asserts it wants to change the 14th Amendment so that “All Persons Born” will again be interpreted to mean “All Ova Fertilized,” everywhere, not just in Dixieland as it was before the Libertarian Party electoral vote earned in December of 1972. That vote led to the Roe v. Wade decision recognizing that pregnant women have individual rights in January 1973. (Yep. Libertarian spoiler votes have been vacating bad jurisprudence for 45 years). Their biggest mistake was to cave in to Green Watermelon spoiler votes aimed at making electricity generation more difficult and expensive than it already is. That is the only real difference between the GOP-Tea Party-Klan and the DEM-Green-CPUSA United Fronts.

There is no difference between being flung in jail or shot by conscience-stricken Democrats or lustily bragging Republicans.  Both want hemp users arrested by the violence of law–that, fines and imprisonment are what their platforms offer voters–and visit upon those too young to vote or buy beer. Prohibition laws are marketing tools passed and enforced for a profit that is well-hidden from view. They distort the supply and demand curves to raise prices; that is the purpose of all marketing.

If you are surprised that these precursors to legislation are what make the laws, try not to be surprised by bad translations of legal material in court.  A competent court interpreter can be as valuable as a competent attorney in defense of your rights.

 

 

 

1931 Moratorium on Brains

Christian altruists

Herbert Hoover in 1938 meeting with results of 1931 Moratorium

In 1931 Republican President Herbert Hoover and drug czar Harry Anslinger were pressuring Germany into additional curbs on heroin exportation while semisocialist Germany’s victims were demanding reparations payments under the Treaty of Versailles (which the US did not ratify, but which still involved $10 trillion in gold).

Hoover’s error is relevant to ongoing efforts to extricate These States from the Vichy Paris carbon tax extortion the Obama Administration tried to smuggle past the Senate. Already there is a severe shortage of nuclear power plants in These States–which is the whole reason engineers are forced to rely on coal–which is less clean and less safe by comparison. The Paris Capitulation can only benefit Communist China at the expense of the relatively free world. 

As 1931 stupefacient drug prohibition negotiations proceeded, banks in Germany and Austria failed. Depositors were removing their money because they knew the influx of dope money would stop, but reparations claims were persistent. Hoover’s brilliant idea was to let France, Britain, Italy, Russia and others “temporarily” default on war loans payable to the USA. In exchange, they would let Christian altruist Germany default on reparations payments owed to the USA. That was the lose-lose theory of coercive prohibitionism. What happened under the Moratorium was that Germany kept exporting addictive poisons and using the money to build up the Steel Helmets, build submarines and battleships and entrench the National Socialist party. Immediately all of Europe began defaulting on war debts, and even commercial loans of private US capital.

socialism is socialism

Mystical collectivists elect Nazis, thanks to Hoover

Ayn Rand was a Hollywood writer and reader hanging out with pre-code movie stars like Barbara Stanwyck, watching Three on a Match (with husband Frank O’Connor), Scarface, Night Nurse (bootlegger hero), Dinner at Eight, The Secret Six and old Alma Rubens movies. At age 24, newlywed immigrant Ayn Rand was certainly aware of Russian and German anti-jewish fanaticism. All of America was painfully aware of Hoover’s solicitous concern for The Accursed Hun.

The smart Moratorium in Atlas Shrugged is Hank Rearden voluntarily offering rail on credit to Taggart Transcontinental. The dumb Moratorium in 1931 was Hoover helping Hitler’s backers arm and control Germany’s government. To this Ayn Rand drew too vague an analogy with the Moratorium on Brains in Atlas. Nor did she clarify the connection, possibly for fear of weakening Barry Goldwater’s GOP while the Soviet still existed. Dwight Eisenhower was, after all, the conquering Republican president of both These States and the Government of Occupation, and Richard Nixon was his vice-president and anticommunist Wingman when Atlas Shrugged was finally published. But the book was already in its tenth chapter in 1947, when Christian National Socialists were denying ever having so much as suspected that Henry Ford’s Fuehrer’s promise to “extirpate” jewish egoism in Mein Kampf was anything but a joke. That was the year Rand composed the Non-Aggression Pledge. That tersely-worded individual decision established a modern ethical position consistent with the era of mature nuclear physics.

I also produce articles in Portuguese, using Brazilian historical sources at http://www.faloingles.com or http://www.expatriotas.blogspot.com

Income Tax, Manifesto Plank 2, 1913

incometax1913p13America’s third income tax arrived, armed and dangerous, in 1913. Here’s how it was received at the time.
Boston Evening Transcript April 15, 1913
INCOME TAX ABSURDITIES  [From the Baltimore Star Rep.]
No matter what may be the Individual attitude toward the income tax as a simple proposition, the section of the new tariff bill which embodies this employment of a war-time measure in the midst of peace is full of absurdities which, it is to be hoped, will be eliminated before the bill reaches the White House.

The requirement that employers shall withhold from employees the proportion of salaries required to be paid as income tax, and thus become responsible for their employees’ compliance with the law, is open to great objection. It infers (implies) that the employee is not himself sufficiently honest or responsible to take care of his own relation to the taxing power, and thus does serious injustice to a large class of salaried people. The man who is capable of earning as a salaried employee more than $4000 a year is usually a man of principle and responsibility, quite as capable of dealing fairly with the Government as the man who draws his income from stocks and bonds or a personal share in a business.

This human necessity of providing for the investigation of questionable returns shows how much of an invasion of private affairs this tax will allow. Its enforcement will be a source of scandal and annoyance and doubtless of much unfairness. It will encourage evasion and subterfuge and the withdrawal of funds from healthy enterprises to take advantage of the special classes of investment which are exempted. In its train will come many evils of a serious nature. It involves a more serious menace to the party assessing it than any other governmental measure in contemplation. ***

SO what was going on in the world as the US government fastened this vampire tax on citizens? 

China–desperate to rid the nation of foreign dumping of poppy sap chemicals–had completely dismantled and replaced its government in 1911, and repercussions fanned outward. Republican President Yuan called the poppy the “all-destroying weed!”  In January of 1912, an election year, Congress overrode President Taft’s veto to make it a federal felony to transport alcoholic beverages into ku-klux-dry territory (as most of the Southern states had enacted prohibition).  Corn Products Refining, flagship of The Glucose Trust–doing for America’s home distillation what the British East India Company did for opium addicts in China–was named in a criminal information in an Illinois district court. A ban on “foreign” alcohol provided protection from competition for corn sugar, the ethanol precursor chemical.

Persia, on signing the Hague Opium Convention, signed with reservations about helping to enforce Chinese opium prohibition. This growing Hague Convention was a direct threat to France, Great Britain, and to the Prussia-Austria-Germany axis refining morphine from opium produced in the Balkans. That entire region was already breaking out in scattered warfare–and a naval arms race between Germany and England gained momentum. Montenegro declared war on the opium-producing Ottoman Empire in the fall, so a global opium war became inevitable. In 1912 an assassin tried to shoot the King of Italy, and another shot and wounded former President Theodore Roosevelt. These things were almost routine.

George Orwell’s father, Richard Walmesley Blair retired to the safety of England after earning promotion to Sub-Deputy Opium Agent, first grade. England had given in to Pressure for the Hague Opium Convention, leaving Germany as the recalcitrant holdout. Germany also manufactured a stimulant, cocaine, which Americans–especially William Jennings Bryan–feared (and Europeans craved) as some sort of sex drug liable to drive down the price of coffee. German pharmaceutical companies were dismayed when–by British suggestion–cocaine was bundled into the Hague Convention as though it had anything in common with opium. Italy pressed for and got the inclusion of Indian hemp drugs. Hemp would only be effectively banned in These States after the legalization of heavily taxed beer and liquor failed to generate enough revenue to satiate the greed of politicians.

Such was the atmosphere as Woodrow Wilson–like T.R. a friend of prohibitionism, also opposed to “private and selfish purposes”–became President. Congress prepared to implement another income tax lifted straight out of the Communist Manifesto of 1848 in anticipation of a global opium war it then knew to be inevitable and imminent.

If you favor legalization of safer enjoyable drugs as harm-reducing competition to weaken the black market in addictive narcotics, consider volunteering or making a donation to your friendly neighborhood Libertarian Party.  The LP is as old today as JFK was when gunned down, and our votes change bad laws.

Need a financial translation? Visit BrazilianTranslated.com

 

White Powder, USA, 1929

The new Republican President never touched liquor before his March, 1929 swearing-in ceremony. Indeed, nearly three decades earlier he palmed off all hospitality cordials on his Chinese interpreter, who sometimes had trouble navigating after Hoover’s visits to hosts.

Peter Lorre movie poster

Chapter 43

White Powder

In New York there was something of a stir when, Superintendent of Banks Warder suddenly resigned his post and was replaced by Joseph A. Broderick. Awkward questions were being raised before a grand jury in connection with the handsome sums Mr. Warder had been receiving quite apart from his salary as a public official. So awkward were the questions and vexing the official secrecy surrounding Mr. Warder’s beneficiary, the failed City Trust bank, that Manufacturers Trust cancelled its planned takeover of the institution. City Trust’s depositors had no such easy way out.[1]

Two federal agents paid a discreet visit to the Hubinger corn sugar plant in Keokuk, Iowa, on February 23, but left with the impression that the plant owners had not grasped the seriousness of the situation. The presence of federal agents at the Hubinger corn sugar factory was not reported, but the sentencing of the former mayor of Herrin to two years at Leavenworth for alcohol was widely covered. On Capitol Hill, the Jones Five and Ten bill passed the House February 28 and became law March 3. Herbert Hoover was inaugurated the following day promising vigorous enforcement of every such law.[2]

The U.S. Embassy in London continued to assemble newspaper clippings on the Naarden narcotics conspiracy and send them to the State Department, while the London Times praised the U.S. government for helping to stamp out opium traffic even as the League of Nations rushed in to claim it’s share of the credit.[3] The grand jury probe ground on and the House voted to investigate federal judge Winslow—with the Senate first horning in on the act, then blocking the investigation entirely.

On the Teapot Dome front, Edward Lawrence Doheney Jr.—the oilman’s son who had allegedly delivered $100,000 to Interior Secretary Albert Fall—was murdered by his personal secretary who immediately shot himself February 16.[4] On the income tax front, beleaguered Staten Island brewer J.J. Dunne was indicted for income tax evasion and former judge Nash Rockwood pled guilty to the same charge.[5] Back of all this lurked the latest round of WWI reparations talks. Germany now sought to blackmail American investors by holding private loans hostage to a reduction in reparations payments awarded to the European Allies.[6]

Excerpted by permission from Prohibition and the Crash by J Henry Phillips

[1] (NY World Almanac 1930 98, 99) (NYT 3/2/29 7)

[2] (Lawrence 1929 97; 119) (Docket 11070 4) (NY World Almanac 1930 100; 1931 358) (Hoover 1929 1974 2-10)

[3] (Taylor 1969 231f) (NYT 2/19/29 2:1; 2/21/29 12)

[4] (NY World Almanac 1930 99)

[5] (NYT 2/21/29 2; 3/3/29 9; 2/27/29 48, 25:2; 3/26/29 33)

[6] (NYT 2/13/29 1, 6; 2/22/29 1)

Prohibition and the Crash–guest appearance

The following post The Drug Problems Jeff Sessions Complains About Are Caused By Prohibition appeared first on A Libertarian Future at A Libertarian Future – Spreading a Libertarian message across the internet.. Many libertarians were upset with Rand Paul for voting to confirm Jeff Sessions because the Attorney General has an enormous amount of leeway…

via The Drug Problems Jeff Sessions Complains About Are Caused By Prohibition — A Libertarian Future

The Valentine’s Day Massacre

Chapter 40

The Valentine’s Day Massacre

The electoral college had barely confirmed the election of the Hoover-Curtis dry fanaticism slate voted in 1928. There were still over two weeks to go until inauguration day which, back then, was on March 4th.

valentinemassacrect29

            Radio newscasters shocked the nation with the story of the Chicago Saint Valentine’s Day massacre in which five gangsters an optician and a mechanic were machine-gunned against a brick wall. The drys fell upon this with whoops of joy and redoubled their lobbying efforts for passage of a draconian enforcement bill introduced a year before by Congressman Gale Hamilton Stalker and Senator Wesley Livsey Jones.[1] What disturbed Chicagoans was the economic reaction; corn dropped 1 & 1/8 cents, and bank stocks likewise fell. All 7,000 saloons, speakeasies and beer flats in the city were immediately shut down, which effectively dried up a major source of income for that convention city. The dry autocracy sprang into action and Congress was besieged with heated demands that something be done immediately to enforce prohibition. Senator Glass, as always, resumed his railing against stock market gambling.[2]

Ferrari’s City Trust depositors, by now sick and tired of obfuscation, organized to demand what New York State feared most: answers.

Investigation of narcotics trial Judge Winslow now went to a House committee, and ailing Hollywood star Alma Rubens was humiliatingly exposed as a morphine addict. As icing on the cake, one John Sergi was arrested for the 14th time and charged with running a mail-order business in heroin.[3] All these stories broke Thursday, February 17, but none were as important as the other white powder connection.

 

[1] (NYT 3/24/29 27)

[2] (CT 2/17/29 1, III-8; 15) (WSJ 2/16/29 1) (NYT 2/17/29 1)

[3] (NYT 2/17/29 24; 2; 23)