November 1929 News

Stopping the motor of Prohibition

Stock Market a smoking ruin! (link)

Who is Mabel Willebrandt? She was the Joan Galt of Prohibition who gave the looters exactly what they asked for in the year Ayn Rand was married to a U.S. citizen. Willebrandt had in August and September published “The Inside of Prohibition” as a column syndicated in 21 newspapers across the USA. In it she explained how the income tax was used to arrest drug and alcohol purveyors juries would not convict for prohibition violations. She also ripped the lid off of the Jones 5 and 10 Law (5 yrs on a chain gang and a fine worth 30 pounds of gold for having liquor) passed two days before Hoover swore to fine and imprison the entire U.S. population if that’s what it took to enforce it.

So on our way to page 12 to see if Willebrandt’s column on drug and beer agents with tommy guns will be mentioned or ignored, we see this gem:

Chain Gang - 30 pounds of gold fine for beer

Jones 5 and 10 Increased Penalties Law, 02 March 1929

This Senator Wesley Livsey Jones was the Pacific Northwest’s White Terror. His coastwise shipping law was a prohibition law in disguise, as it restricted who could operate vessels near U.S. coasts. But the Post-Crash article says nothing about Wesley Livsey Jones’ dry fanaticism. THAT went without saying. Now we come to the narc and taxMAN Hoover chose to replace America’s feminist prosecutor–now resigned from her dead-end job in disappointment.

Bring on the Depression!

Reasons to expect a Great Depression (link)

The article reports that…

Friends of the Administration describe Mr Youngquist as a firm believer in the dry cause. They also say his record as enforcement officer of Minnesota is excellent.
Besides enforcement of the Volstead Act, Mr Youngquist will have charge of enforcement of the internal revenue laws and the narcotic laws. He would have a much enlarged responsibility if and when the prohibition enforcement unit is transferred from the Treasury to the Justice Department.
Mr Youngquist was selected on recommendation of Attorney-General Mitchell and was among half a dozen men whom the President considered for the place. One of these is also believed to have been Hugh M Alcorn, State’s Attorney of Connecticut, but he was eliminated because of a disagreement among Republican leaders of Connecticut over his appointment.
Friend of Volstead
G.A. Youngquist… named to succeed Mrs Mabel Walker Willebrandt as Assistant Atorney General in charge of prohibition inforcement, is a close friend of Andrew Volstead and S.B. Kvale, in charge of prohbition in the northwest district.
Youngquist is 44 years old.

So the nation’s top prosecutor resigned, wrote a tell-all that explained how the Administration would topple the economy to exorcise the Demon Beer. Investors saw clearly that the economy would indeed be crushed and money fled banks and brokerages. The elevation of the most ruthless and fanatical Inquisitors, beginning with Younguist, fair-haired boy of the author of the Volstead prohibition law of The Night of January Sixteenth, began.

This was America’s Gestapo directing hordes of agents with holy crosses and service pistols to break in doors, tap phones, audit tax returns, arrest physicians and indict the worlds largest yeast, glucose, sugar and chocolate corporations on felony conspiracy charges. This is what PROMPTED the flight of money BEFORE the looting, torture, murder and imprisonment bulked up beginning in November of 1929.

Get the complete story in Prohibition and The Crash on Amazon Kindle in two languages

ProhicrashAmazon

Prohibition and The Crash, on Amazon Kindle

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

 

 

Start of the 1929 Crash

The U.S. stock market began following the fall of the German and French stock markets during the first few days of September, 1929. Above is a typical story about a small still–the large, continuous stills producing thousands of gallons a day never made it into the papers. The story (link) hints that the agent on vacation was turning a blind eye to liquor production, and that his officious replacement was cracking down with faith-based determination and lusty asset forfeiture, but that the coast will again be clear next Wednesday.

RAIDERS SEIZE MOONSHINE STILL—Mash and Finished Product Found at Pawtucket. A Pawtucket raid in which federal prohibition agents attached to the Providence office, under direction of Chief Raiding Officer Michael A O’Brien, today seized a 100 gallon moonshine still and large quantities of mash and finished product is the 22nd seizure whih the office has effected since John W Morill, administrator in charge of the office, left on his vacation two weeks ago.
As a result of the raids, a report of which is being tabulated by Carl A Nelson, drug store inspector, acting as administrator in the absence of Mr Morrill, 21 Rhode Island men have been taken into custody and arraigned before United States Commissioners on charges of violating the prohibition act.
The number of stills and beer plants uncovered during the raids had not been tabulated by Mr Nelson to-day, but the acting administrator indicated that they would far exceed the number seized by the local office over a similar period a year ago, when, he said to-day, seizures totalled six.
No defendant was found on the raid conducted today, on a two-story dwelling house at the junction of Yale and Notre Dame avenues, Pawtucket, where the agents claim to have seized 47 barrels of moonshine mash and a large quantity of alleged moonshine whiskey.
Four stills uncovered last night by the agents in cellars of two houses on Division Street, Central Falls, were about the filthiest in the experience of agents attached to the local force, it was indicated to-day, the report stating  that quarters where the stills were uncovered were infested with rats and other vermin.
Mr Morrill, who is spending his vacation with members of his family in Maine, is expected to resume his duties in this city next Tuesday. Mr Nelson will leave on his annual leave of two weeks the following day. (Providence, RI Evening Tribune 31 AUG1929  1)

On the same page (link) is a report on the difficulties experienced in collecting war reparations payments from Germany. After Austria and Germany attacked other narcotics-producing nations in 1914 then lost in 1918, every country invaded was counting on German reparations payments provided under the Treaty of Versailles. With that money they then paid a little toward the loans gotten from Uncle Sam while being throttled by the Accursed Hun. Throttler replaced throttlee in the Versailles treaty, yet Germany, now fanatically inspired by christian National Socialism, spent its drug income on political parades and armaments, while demanding everyone else disarm.

Why not delve into what caused the 1929 Crash? Prohibition and The Crash–Cause and Effect in 1929 does exactly that, matching economic theory and newspaper accounts against stock market reactions and competing theories. It is live on Amazon Kindle for the price of a pint.

Prohibition and The Crash, on Amazon Kindle in 2 languages

My other-language blog is amigra.us

The Civil War tariff revolt

 

The Nullification Crisis of 1832-33 involved state secession and use of force to repel attempts to collect federal customs tariffs. Nullification acquired a different shade of meaning even before the Supreme Court’s Dred Scott decision soon extended the reach of the Fugitive Slave Law north to the Canadian border. By 1860 Southern conservatives were complacently decrying “Nullification”–by which they meant the creation of sanctuary cities where slaves could hide.  Local authorities in the North worked only to enforce local and state laws–not to help persecute runaway slaves under odious federal jurisprudence.  

So why do government school history professors stand by and let charlatans convince the innocent that the Civil War was caused by racial collectivism? Andrew Jackson again addressed the Congress, in January 1833, regarding South Carolina’s virtual secession via a bill outlawing US customs from collecting Tariffs of Abominations.

That State Legislature first passed “An act to carry into effect, in part, an ordinance to nullify certain acts of the Congress of the United States purporting to be laws laying duties on the importation of foreign commodities,” passed in convention of this State, at Columbia, on the 24th November, 1832. The next was called “An act to provide for the security and protection of the people of the State of South Carolina.” It then passed “An act concerning the oath required by the ordinance passed in convention at Columbia on the 24th of November, 1832.” This last was an oath rejecting federal power in favor of state laws and courts. Jackson explained:

But by making it ” unlawful for any of the constituted authorities, whether of the United States or of the State, to enforce the laws for the payment of duties, and declaring that all judicial proceedings which shall be hereafter had in affirmance of the contracts made with purpose to secure the duties imposed by the said acts are and shall be held utterly null and void,” she has in effect abrogated the judicial tribunals within her limits in this respect, has virtually denied the United States access to the courts established by their own laws, and declared it unlawful for the judges to discharge those duties which they are sworn to perform.

One federal customs house was moved from Charleston to Castle Pinckney as a “precaution,” and trusted customs agents who quit in fear could not be replaced, such was the nearness of armed confrontation.  Jackson spoke of the potential for military violence:

…the power of summoning the posse comitatus will compel, under the penalty of fine and imprisonment, every man over the age of 15, and able to travel, to turn out at the call of the sheriff, and with such weapons as may be necessary; and it may justify beating, and even killing, such as may resist. The use of the Posse comitatus is therefore a direct application of force, and can not be otherwise regarded than as the employment of the whole militia force of the county, and in an equally efficient form under a different name.

Jackson made it clear that federal troops would put down the insurrection unless Congress, the courts and the Carolina legislature acted to head off the danger. This they did by lowering the “Tariff of Abominations” that had sparked the reaction. Still, all hope of stopping “protective” tariff extortion within the system was doomed thanks to Jackson’s defusing of the situation.  Colonial “Acts of Navigation” had necessitated the 1st Revolution in 1776. This revolt led Lord Dunmore to issue an Emancipation Proclamation calling slaves to arms in exchange for freedom long before Lincoln’s similar proclamation.

The Opium Wars in which Great Britain attacked Chinese cities to force repeal of the Chinese government’s ban on opium grown in British India came to resumed naval artillery attacks in 1859. At the outset of these wars, in 1837, Britain had withdrawn capital invested in the United States to gird its navy for war. The resulting contraction of capital caused America’s First Great Depression, but to this day it is inexpedient and impolite to even mention this Chinese connection.

China was again defeated and a tariff on opium imports was enacted there in January 1860 to pay reparations to her attackers. Despite professed neutrality, the US also landed military forces in China. Cause had again produced effect. Thus, in a failing economy, the Morrill protective tariff was soon being assembled in Congress. It was reported in March 1860, passed on May 10, then went dormant.

The South reacted and by September the Secretary of War had quietly facilitated southern seizure of federal weapons and facilities. After the mild and Whiggish Lincoln was elected, with three months to go before taking office, Texans raided armories and commandeered revenue ships, sparking tariff revolt elsewhere.  Capital flight and foreign adventures had wrecked the economy, and the Secretary of the Treasury resigned December 10.

South Carolina seized a federal fort, customs-house and vessels that same December. In January, with Lincoln’s inauguration still two months away, Georgia seized two federal forts and an arsenal, then commandeered a steamer. Louisiana took over three forts and the arsenal at Baton Rouge as Georgia seized the arsenal at Augusta and a steamer. Then Florida commandeered navy yards and another arsenal.

The Morrill tariff was revived, the embattled Treasury began selling notes, and John Sherman made a speech about federal tariffs, fort and armories. A secession convention was convened and northerners began backing away from support for sanctuary cities by repealing the Personal Liberty bill and similar enactments. William Tecumseh Sherman calculated the effect of reverting to a revenue-only tariff, dubbed “free trade” by Morrill and other protectionists:

“Now, if the south have free trade, how can you collect revenues in the eastern cities? Freight from New Orleans to St. Louis, Chicago, Louisville, Cincinnati, and even Pittsburg, would be about the same as by rail from New York, and importers at New Orleans, having no duties to pay, would undersell the east if they had to pay duties.”

This was what the Civil War was about–customs revenue and crony tariff protection.

Meekly disarmed colonial Brazilians had no such possibility, and imperial slavery continued there until after Cleveland’s first term–yet rabble of the looter persuasion do not order their statues torn down or accuse modern Brazilians of racial collectivism. Americana, the Confederate town founded by disaffected Johnny Rebs, holds charming square dances in gray regalia with nary a protest from unreconstructed brown audience members and participants. ALL of them are fed up with carpetbagger looter politicians and their damned taxes!  These politicians and their judges keep the Libertarian Party from forming, so locals–forced at gunpoint to vote–cast enough blank ballots to potentially elect libertarian mayors in many major cities.

If you want Brazilian or American audiences to understand your theory on the roots of war or what causes economic depressions, you might consider hiring a degreed and accredited translator and interpreter.

Economic Collapse, July 1930

Prohibition caused Depression

Chicago Tribune 17NOV1930

The stock market crash of 1929 marked the realization that prohibition laws would soon destroy the US economy and banking system. By mid-1930, financial collapse was so well underway that the old prohibition enforcement districts were redrawn to conform closely to existing Federal Reserve districts. This change took effect on July 1, 1930, the month Cook County Assessor Gene G. Oliver was convicted of tax evasion and sentenced to 18 months in prison and fined $12,500 by Judge Woodward in Chicago.

Here is a breakdown of the districts.

The transfer of the prohibition enforcement activity from the Treasury Department to the Department of Justice under the Williamson Act took place on July 1, 1930, under the Bureau of Industrial Alcohol in the Treasury Department, retained the duty of issuing permits for the manufacture and use of alcohol and other intoxicating liquor for non-beverage purposes, and of supervising the activities of the permitees.  The 27 prohibition districts hitherto existing were rearranged into 12 new districts, with boundaries corresponding in some measure with the 10 judicial circuits.  (Misdirection! The new prohibition districts were a nearly perfect fit to the Federal Reserve Districts–tr)

1. Boston: Maine, N. Hampshire, Vermont, Massachusetts, R. Island, Connecticut
2. New York: New York State and Porto Rico
3. Philadelphia: New Jersey; Pennsylvania, Delaware
4. Richmond: Maryland, Virginia, West Virginia, N. Carolina, South Carolina, DC.
5. New Orleans: Alabama, Georgia, Florida, Louisiana, Mississippi, Texas.
6. Cincinnati: Michigan, Ohio, Kentucky, Tennessee
7. Chicago: Illinois, Indiana, Wisconsin.
8. St. Paul: Minnesota, N. Dakota, S. Dakota, Iowa, Nebraska.
9. Kansas City: Arkansas, Kansas, Missouri, Oklahoma.
10. Denver: Arizona, Colorado, N. Mexico, Utah, Wyoming.
11. San Francisco: California, Nevada, Hawaii.
12. Seattle: Idaho, Montana, Oregon, Washington, Alaska.
Source: NY World Almanac 1931 p 36

That same day, the Bank of Winter Park, Florida, closed its doors. As prohibition asset-forfeiture confiscations continued, many other banks would close. The Liberal Party, formed in 1930, published a plank in 1931 calling for the repeal of blue laws and the Prohibition Amendment. The Democratic Party copied this plank in the summer of 1932–in the middle of a major banking panic–and went on to win the election in November, plus four more.

That is an advance demonstration of the law-changing clout of libertarian party spoiler votes. By the time Franklin D. Roosevelt was sworn in as president in March of 1933, every bank in the nation had already closed its doors. After 1928, no Republican was elected until the Eisenhower-Nixon campaign brought German National Socialism to America.

ProhicrashAmazon

Prohibition and The Crash, on Amazon Kindle

If you are disappointed not to have learned this in school, buy a copy of Prohibition and The Crash in Amazon Kindle format. For the price of a pint, the free app lets you see month-by-month how the economy was crushed–on a cellphone.

simultaneous interpreting

Next time choose a financial and accounting translator who won’t overlook things and cause added disappointment.

Libertarian spoiler votes repeal bad laws. GOP hurting from unpopular win. LP covers gap in 11 states aggregating 124 electoral votes

The following post Illegal Voting Didn’t Cost Trump The Popular Vote, Gary Johnson Did appeared first on A Libertarian Future at A Libertarian Future – Spreading a Libertarian message across the internet.. It’s been months since the final state finished its recount and finalized its vote totals. The Electoral College voted for Donald Trump and he…

via Illegal Voting Didn’t Cost Trump The Popular Vote, Gary Johnson Did — A Libertarian Future

Prohibition and The Crash, 1929

1929electoralvote

Chapter 39

The City Trust Mystery

            The Steinhardt affair dominated New York headlines, even though the accompanying news stories contained no intelligible information whatsoever. On February 1, 1929, Frank M. Ferrari, president of the City Trust Co., died in New York City as the stock market was making broad advances. The Times quietly tucked the story away on page 27 and few took notice. Then came the embarrassing League of Nations revelations regarding European drug manufacturers, which drew attention to other narcotics-related disclosures and generated more news stories.[1] Behind the scenes Mabel Willebrandt wrote Attorney General Mitchell blaming “disorganization” in the office of the United States Attorney for the Eastern Division of New York, on one William A. DeGroot.[2]

The Federal Reserve Board had meanwhile produced the broker’s loan figures and—in the wake of an increase in the Bank of England’s interest rate—issued another warning against “speculation.”[3] At the same time a settlement was reached in the 1922 Big Four case in which the wealthy bootlegging Savannah gentlemen—already in prison for income tax evasion—were finally assessed $140,000.[4] Bearing hard on the issue of tax evasion was a United States Court of Claims ruling that the Commissioner of Internal Revenue had absolute authority to determine what inventories businesses could and could not use in filing tax returns. Judge Nicholas Sinnott wrote the opinion, which was not at all reassuring for preparers of corporate income tax returns.[5] The Federal Reserve Board soon issued another scolding, hinting at danger to the nation’s gold reserves.[6]

On top of this came the Harris amendment calling for another $25 million in prohibition enforcement appropriations. From January 12 to February 8, when it was deadlocked between House and Senate, the proposal had been the focus of constant and acrimonious debate.[1] By February 13, the commotion reached the floor of the House in the form of a pre-impeachment resolution denouncing Federal Judge Winslow, and across the border into Canada in the form of a massive manhunt for fugitive lawyer Steinhardt.[2] These publicized events at home and in Geneva were attended by flurries of stock liquidations which sent prices tumbling. The New York Stock Exchange, Curb Market and Philadelphia Exchange all announced they would be closed Saturday, February 9. In discussing the market nosedive newspapers avoided touching on the Naarden case, prohibition funding, or the backstage struggles in enforcement offices, pointing instead to recent scoldings by the Federal Reserve Board and to England’s interest rate hike. Even the closure was downplayed as due to an outbreak of the flu among brokers.[3]

Yet there had been signs of uncertainty surrounding the City Trust Company since before January 8, when vice-president Frederico Ferrari signed a report denying the bank had excessive loans. Unbeknownst to newspapers and the public, New York Bank Examiner Frank L. Warder had, on January 15, received a $20,000 payoff to overlook the insolvency of the City Trust Company and forego shutting it down.[4] The market break occurred one week after City Trust president Francesco Ferrari’s death and four days before the closing of the bank’s five locations by the State Department of Banking. The International Radiotelegraph Convention proclaimed January 1 contained the signature of one Frn. Ferrari binding the Republic of San Marino to the treaty. San Marino—barely two miles wide—lay wholly inside Italy nor far from the Ferrari automobile plant. Folks began to wonder just how important this Ferrari fellow had been.[1] The investigation would continue to yield unsavory surprises for another three years. No mention was made of the Bank of United States money which National City Bank placed on deposit at the Petrograd branch of City Trust.[2]

Rioting was rampant in Bombay, with another 28 deaths reported February 11. New outbreaks of political turmoil in Afghanistan already had Great Britain in a stir. And policy recommendations from the League Opium Advisory Committee were extremely unpopular among ruling officials yet popular with the native masses in British India. Ordinary citizens there, as in China, felt themselves exploited by the British opium and salt revenue monopolies. For years now “holy” pictures of Mahatma Gandhi had sold briskly at every market and bazaar in India. People everywhere wore Gandhi caps and picketed and boycotted liquor stores to starve the government of revenue.

Gandhi was imprisoned for “sedition” in 1922 but released in 1924 after an appendectomy out of fear he might die in prison. The Indian Congress had recently resolved in favor of independence if Dominion status were not granted India by the end of 1929. Britain’s very sovereignty had thus been called into question, and the clock set ticking for a showdown over the Empire’s hegemony in British India. British newspapers were still having a field day with the Naarden drug conspiracy case, doubtless overjoyed to have Europeans share some blame. Yet such publicity could only worsen matters in India—where the body count from the latest riots stood at 113—and make a poor impression on the incoming Hoover Administration.[1]

In Williamson county, Illinois, three city officials—a district attorney, coroner, and chief of police—were on trial for liquor conspiracy with the Mayor of Herrin. Chicago Alderman Titus Haffa was also on trial as a kingpin in a liquor conspiracy implicating three prohibition agents.[2] Nor was the situation very comfortable in New York, where officials were busy making sure no “startling evidence” involving public figures with Arnold Rothstein’s drug ring saw daylight. With the grand jury closing in on Judge Winslow, whose narcotics cases included the Unger trial and involved agent Kerrigan’s death, this was no small task. In Miami, Dade County Solicitor Robert Taylor questioned Al Capone, who indignantly declared: “I never was a bootlegger in my life.”[3]

Em português no meu outro blog. Compre o livro em português formato Amazon Kindle

ALeiSeca0619

 

Next: The Valentine’s Day Massacre

[1] (NYT 1/19/29 3) (Taylor 1969 204-5) (Van Tyne 1923 111, 120)

[2] (Pasley 1930 206) (CT 2/16/29 5; 2/17/29 25) (NYT 2/16/29 5:5) (Irey and Slocum 1948 22)

[3] (NYT 2/14/29 1) (CT 2/15/29 3) (Schoenberg 1992 216-217)

[1] (Treaties, Etc. 1938/1968 5031; 5095)

[2] (NY World Almanac 1930 98, 99) (NYT 5/15/28 36)

[1] (NYT 1/12/29 1:2; 1/13 1:7; 1/14 4:4… 2/8 1:4)

[2] (NYT 2/13/29 1, 2)

[3] (WSJ 2/8/29 1)

[4] (NYT 7/3/29 25) (CT 9/7/29 4)

[1] (Taylor 1969 231)

[2] (Hoover 1929 1974 131-2)

[3] (WSJ 2/8/29 1) (Lawrence 1929 437)

[4] (Brown 1984 62, 274)

[5] (CT 2/6/29 1 Commerce)

[6] (Lawrence 1929 437)

Need a translator or interpreter familiar with the links between political economy, prohibitionism, tax law and financial disaster?