1929 State of the Union Message

Dry Killer Herbert Hoover

Branding folks felons for beer since March 1929

On December 3, God’s Own Prohibitionist, Republican President Herbert Clark Hoover delivered his State of the Union Address to Congress December 3, 1929. Here are the highlights:

…Owing to unusual circumstances, it has been extremely difficult to estimate future revenues with accuracy. (…) I recommend that the normal income tax rates applicable to the incomes of individuals for the calendar year 1929 be reduced from 5, 3 and 1½ per cent to 4, 2 and ½ per cent, and that the tax on the income of corporations for the calendar year 1929 be reduced from 12 to 11 per cent. It is estimated that this will result in a reduction of $160,000,000 in income taxes to be collected during the calendar year 1930. (p409) (…) The long upward trend of fundamental progress, however, gave rise to over-optimism as to profits, which translated itself into a wave of uncontrolled speculation in securities, resulting in the diversion of capital from business to the stock market and the inevitable crash. (p411) (…)

AGRICULTURE: The agricultural situation is improving. The gross farm income as estimated by the Department of Agriculture for the crop season 1926-27 was $12,100,000,000; for 1927-28 it was $12,300,000,000; for 1928-29 it was $12,500,000,000; and estimated on the basis of prices since the last harvest the value of the 1929-30 crop would be over $12,650,000,000. The slight decline in general commodity prices during the past few years naturally assists the farmers’ buying power. The number of farmer bankruptcies is very materially decreased below previous years. The decline in land values now seems to be arrested and rate of movement from the farm to the city has been reduced. Not all sections of agriculture, of course, have fared equally, and some areas have suffered from drought. (p413) (…)

TARIFFS: I am firmly of the opinion that their application to the pending [tariff] revision will give the country the kind of a tariff law it both needs and wants. (p415) (…)

THE BANKING SYSTEM: The development of “group” and “chain” banking presents many new problems. (…) The relinquishment of charters of national banks in great commercial centers in favor of State charters indicates that some conditions surround our national banks which render them unable to compete with State banks; and their withdrawal results in weakening our national banking system. (p423) (…)

FEDERAL PRISONS: In order to relieve the pressing evils I have directed the temporary transfer of the Army Disciplinary Barracks at Leavenworth to the Department of Justice for use as a Federal prison. (…) We need some new Federal prisons and a reorganization of our probation and parole systems; and there should be established in the Department of Justice a Bureau of Prisons with a sufficient force to deal adequately with the growing activities of our prison institutions. Authorizations for the improvements should be given speedily, with initial appropriations to allow for the construction of the new institutions to be undertaken at once. (p429) (…)

PROHIBITION: The first duty of the President under his oath of office is to secure the enforcement of the laws. The enforcement of the laws enacted to give effect to the eighteenth amendment is far from satisfactory and this is in part due to the inadequate organization of the administrative agencies of the Federal Government. (…) First, there should be an immediate concentration of responsibility and strengthening of enforcement agencies of the Federal Government by transfer to the Department of Justice of the Federal functions of detection and to a considerable degree of prosecution, which are now lodged in the Prohibition Bureau in the Treasury. (…) The District of Columbia should be the model of city law enforcement in the Nation. …there is need for legislation in the District supplementing the national prohibition act, more sharply defining and enlarging the powers of the District Commissioners and police of the District and opening the way for better cooperation in the enforcement of prohibition between the District officials and the prohibition officers of the Federal Government. It is urgent that these conditions be remedied. (p432)

LAW ENFORCEMENT: (p435) … We need to reestablish faith that the highest interests of our country are served by insistence upon the swift and even-handed administration of justice to all offenders, whether they be rich or poor. (…) I have appointed a National Commission… for an exhaustive study… including the special problems and abuses growing out of our prohibition laws. (…) the Department of Justice has been striving to weed out inefficiency… to stimulate activity on the part of its prosecuting officers… The department is seeking systematically to strengthen the law enforcement agencies… by removal of negligent officials and by encouragement and assistance to the vigilant. (…) Increases in appropriations are needed and will be asked for in order to reinforce these offices. …if the citizen… shall insist on selecting the particular laws which he will obey, he undermines his own safety and that of his country. His attitude may obscure, but it cannot conceal, the ugly truth that the lawbreaker, whoever he may be, is the enemy of society. We can no longer gloss over the unpleasant reality which should be made vital in the consciousness of every citizen, that he who condones or traffics with crime, who is indifferent to it and to the punishment of the criminal or to the lax performance of official duty, is himself the most effective agency for the breakdown of society. Our laws are made by the people themselves; theirs is the right to work for their repeal; but until repeal, it is an equal duty to observe them and demand their enforcement.

I have been gratified at the awakening sense of this responsibility in our citizens during the past few months, and grateful that many instances have occurred which refuted the cynicism which has asserted that our system could not convict those who had defied the law and possessed the means to resist its execution. These things reveal a moral awakening both in people and in officials which lies at the very foundation of the rule of law. (Hoover 1929 1974 404-436) (link)

Money was fleeing Federally chartered banks in order to not be confiscated via asset forfeiture should some officious dry killers storm the bank. Observe also that we now call the Laffer Curve was totally operative during the Coolidge and Hoover Administrations, when every cut in federal tax rates brought increased federal revenue and, in Hoover’s words, “fertilizes the soil of prosperity.” This optimistic sermon came after the Crash, with a Crash still wrecking the German economy, and banking panics already afoot in these States, thanks to use of the income tax as a club to enforce prohibition. Herbert Hoover was already proving that he himself, while enforcing prohibition, was “the most effective agency for the breakdown of society.”

Get the complete story in Prohibition and The Crash on Amazon Kindle in two languages. After this you’ll be able to explain to economists exactly how pseudoscience, fanaticism and loss of freedom wrecked the U.S. economy.

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Lest We Forget

Too late, baby

86% 2 yrs after Bush faith-based asset forfeiture wrecked the economy!

Every time Sharia Law Republicans wreck the economy in their endless wars on Beer, The Demon Rum, or Enjoyable Plant Leaves, there’s a recession, unemployment, and memory loss. On March 4, 1933 not a single Republican outside of the Chicago Tribune could remember the Jones 5&10 law, or Mabel Willebrandt’s use of the communist income tax to jail Beer Barons and confiscate property, plant & equipment along with bank and brokerage accounts. The commercial banks financing docks, cargo ships, radio station, warehouses and logistics at Atlantic Highlands were lost down a memory hole along with how Bert Hoover’s Moratorium on Brains helped National Socialism gain power in Germany.

The Prohibition party soldiered on, urging shoot-first prohibitionism as what Christ would be doing. Their Creation Pseudoscientists insisted that Jesus had turned raisins, not water, into wine, as GOP ward heelers tried their best to forget THEM as Alf Landon, Wendell Willkie, Thomas Dewey, then Dewey again struggled to revive interest in chain gangs, bank account confiscation and the gunning down of motorists by dry killers in the interest of Christian purity.

Finally the Ike/Nixon ticket was elected and now you now know who Ike was talking about when he said “military-industrial complex.” Silent Majority brownshirts, Moral Majority blackshirts, Operation Intercept, market crashes, and oil crises. Non-poisonous LSD was declared dangerous and Agent Orange safe by government drug bureaucracies.

A couple of dead Kennedys later Nixon pulled the brass ring and won again after a bullet-riddled George Wallace threw in the towel and quit blocking kids from entering schools. History shows us that Republicans who win a second term promptly push the Prohibition Party planks calling for police to shoot people over plant leaves, then use those same guns to threaten and intimidate physicians with female clients.

History also shows us that just as Bryanist and Prohibitionist spoiler votes brought the income tax and Prohibition amendments, Libertarian spoiler votes are undoing past experiments with National Socialism. Women knelt in front of saloons to urge prohibition. Realizing their error, VOTING women in 1932 cast ballots for the Liberal Party repeal plank and ended most of the initiation of force accelerating the Depression.  Now is a good time to take a new pledge:

I certify that I oppose the initiation of force to achieve political or social goals.

To find out more about how weaponized fanaticism in the US–as elsewhere–uses the violence of law to cause economic collapse, read Prohibition and The Crash–Cause and Effect in 1929, is live at Amazon Kindle for the price of a pint.

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Altruism and the Panic of 1893

protective tariff gouging

Read the original… next column over

In the election of 1892 neither the Democrat or Republican party carried an income tax plank in its platform. That had appeared in the German-Language Communist Manifesto of 1848, translated 2 yrs later into English.

Small, pathetic groups formed short-lived parties to push the government back into the sort of robbery at gunpoint legislated during the War Between The States–the stuff Lysander Spooner opposed so vehemently. Suddenly the People’s Party–financed by mining interests that profited enormously from the free coinage of their silver into legal tender dollars–out of nowhere got 9% of the popular vote and over TWENTY electoral votes…

This came in the wake of the piously officious Republican Administration of Benjamin Harrison–a grasping protective tariff advocate running a War on Smuggling. Here is how Howells  (a prohibitionist Christian Socialist) interpreted the looter populism of 1892-1896 America in Letters from an Altrurian Traveler:

It is chiefly they [bourgeois merchants], therefore, who are anxious to Altrurianize America, as the sole means of escape from their encompassing dangers. Their activity is very great and it is incessant; and they were able to shape and characterize the formless desires of a popular movement in the West, so that at the last presidential election twenty-two electoral votes were cast in favor of the Altrurian principles which formed the vital element of the uprising. …

The friends of Altrurianization will not fail to bring before the American people some question of the very nature of money, and of the essential evil of it, as they understand money. They will try to show that accumulated money, as a means of providing against want, is always more or less a failure in private hands; that it does not do its office; that it evades the hardest clutch when its need is greatest. They will teach every man, from his own experience and conscience, that it is necessarily corrupting ; that it is the source of most vices, and the incentive, direct or indirect, of almost every crime. (…)

Realizing the alternative to money is the initiation of force, Ayn Rand countered with The Money Speech in Atlas Shrugged. Go ahead, make the comparison…

 

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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.

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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.

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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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