Ambushing Germany, January 1931
Ambushing Germany, January 1931
Did you know that in February 1931 President Herbert Hoover pardoned a prohibition law violator? That same month he signed a bill to deport “drug violators” and later an Executive Order making it difficult for women to become citizens by marriage? Do you believe that making beer an asset-forfeiture felony and paying the League of Nations to extend Harrison Act bans worldwide had nothing to do with the 1929 Crash, 1930-33 banking panics and great Depression? Brace yourself. Here you will see newspaper headlines anyone can look up at a library–yet omitted from subsidized & paywalled academia. Blow-by-blow, every move in the game up to the final ambush of Germany by countries that were NOT America’s Allies in WW1 will unfold before thine eyes.
January 1931: Al Capone’s buddy Frank Nitti was already doing time for tax evasion when the outfit’s treasurer, Jack Guzik got 5 years and the Hoover Administratin was looking at Big Al. Children too young to file tax returns or be sentenced to chain gangs were running liquor stills. On January 9, the League of Nations Opium Advisory Committee assembled in Geneva, Switzerland, to plan the expansion of the Hague Opium Convention of 1912 and Geneva additional drugs Convention of 1925 into an all-pervasive steamroller to flatten Germany’s drug industry–the industry that enabled Germany to pay war reparations installments to the Allies (which never did include the USA). The League committee also labored to export hemp prohibition laws into the Americas. The USA wanted only repayment of money loaned out during WW1--and prohibition of everything that moved. U.S. papers paid ignored the Geneva meeting, but did report on movements of tax dodger Terry Druggan.(link) When Druggan and Lake were first charged, back in 1928, there was heavy liquidation in the stock market.(link) In fact, when this entire business of illegal income becoming liable to taxes first surfaced in May of 1927, foreign stock markets broke and never recovered.(link)
This global prohibitionism mania began in 1905, when China begged the U.S.–then “pacifying” Filipinos–to stop the world from shipping drugs to China, whose laws had demanded death (1839), then forfeiture, fines and prison (1844)–otherwise China would boycott U.S. goods. Beer, wine, etc, were banned in the U.S. 15 years later, under penalty of fines and forfeiture, in a logical progression of international cooperation.(link) Pink-cheeked Crusaders in Chicago on January 18 demanded nationalization of the liquor industry under a planned economy–precisely the plan suggested by China a year earlier in Geneva–with a planetary monopoly on drugs centered in Geneva, Switzerland.
The Federal Reserve Board changed the subject and digressed about the 981 bank suspensions involving deposits of 515 million dollars, in the first eleven months of 1930. Autonomous spending had fallen by some $4 billion, a phenomenon liable to generate serious multiplier effects. But the desperate banking and economic situation was evidently lost on the Prohibition Bureau, which, like Comstock before it, banned such publications as recipes on how to ferment grape juice. On January 20th, Chicago Tribune news from Kentucky included two facts: 1) people were starving, and 2) 90% of all criminal cases there were for prohibition violations. The following day, President Hoover announced to Congress an appropriation $35,000 in gold coins to fund U.S. participation in the next Conference on The Limitation of The Manufacture of Narcotic Drugs in Geneva (after the current planning conference in progress). Those 1750 $20 gold double eagles weighed over 58 kilos of gold, today worth over $5 million. At the time, however, those $35000 were but 0.04% of the annual cost of prohibition enforcement once loss of government revenue was added in–this according to Prohibition Commissioner Doran. January quickly got interesting as financially-weakened Germany–anxious over competitors using the League and Versailles Treaty against her–was cowed into signing an extradition treaty with the U.S. making persons suspected of “offenses” against laws for the suppression of traffic in “narcotics” liable to be hauled into the dock as criminal defendants in Dry America.
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Good Reading: Public Papers of the Presidents, Herbert Hoover.(link) When I was researching data for Prohibition and The Crash–Cause and Effect in 1929, I sent off for the entire collection of Herbert Hoover Presidential Papers. These volumes covered 1929, 1930, 1931, 1932-33 in a stack close to a foot thick. I bought the lot of them for $27 from the Hoover Presidential Library in Iowa back about 1993, before the PDF versions appeared on the web. The Proclamations and Executive Orders are separate, and calculatedly so. By separating the EO replicating Woodrow Wilson’s prewar announcement of income tax enforcement and exposure of corporate tax returns to public scrutiny, Hoover managed to conceal his December 1932 Executive order exposing corporate tax returns to public scrutiny. On 20JAN1933, however, Hoover let on to the press that the Democratic majority in Congress had not struck down that particular Executive Order. And as of that day the collapse of the entire U.S. Banking system began, culminating in the Banking Moratorium Holiday and confiscation of all gold as economy measures on 04MAR1933. All of this is in my explanation of the Crash and Depression.
Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, as cheap as a pint of craft beer.
Brazilian Sci-fi from 1926 featuring the Hollywood-style beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)
Brazilian blog… Expatriotas
American blog… Libertariantranslator, with contact form
Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, as cheap as a pint of craft beer.
Brazilian Sci-fi from 1926 featuring the Hollywood-style beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)
Brazilian blog… Expatriotas
American blog… Libertariantranslator, with contact form
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