1931 Drugs, Banks and Crashes

 

April 19, 1931, a shipment of drug-laden German woolens aboard the USS Milwaukee docked at NY. Six days later papers reported it contained 3 tons of narcotics shipped in woolens from Hamburg in northern Germany. The situation mirrored the Bank of United States failure as 5 tons of morphine sat on the docks in a stakeout at the French liner Alesia. The graph shows German gold reserves and Young Plan reparations payments bonds crashing in value following the news. Bank of United States trials were all over the news that week as well. 

Peter Temin, whose graph is above, is the same economist who pointed out the U.S. stock market began crashing the first week of September 1929. This was the week the League of Nations received planetary dope prohibition marching orders from its Opium Advisory Committee. In the above chart, failing bets on Germans paying war reparations coincide with the Nordwolle woolens bust, recover momentarily with the Moratorium on Brains and continue downward. As agents neared the ship, this cartoon appeared in a Rochester paper. (Link) to page. 


Even the Bank of America, reeling from involvement in financing the Atlantic Highlands dope and rum syndicate, was still in the news. Milton Friedman made much of the BUS being under Jewish management. But in the 1931 cascade of German bank failures a Canadian paper revealed that one Jacob Goldstein chaired Danat Bank plus another 392 companies.(link) Soon, Nationalsocialist press headlines demanded to know when Goldschmidt would be arrested. It was NOT the best of times... 

Then again, in that same Canadian paper there was a lighter note in a conversation under doctor-patient confidentiality...

Doctor: You're in an enfeebled condition. It would be best for you to lay off of strenuous activity for awhile. What sort of work do you do? 

Patient: I'm an anarchist. 

Doctor: Then perhaps it might be best for you to lay off of bomb-throwing for a while.(link) 

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

ProhicrashAmazon

Prohibition and The Crash, on Amazon Kindle (link)

ASYLUM APPLICATION FORM i589 INSTRUCTIONS IN PORTUGUESE: INSTRUÇÕES PARA O FORMULÁRIO DE ASILO i589. What we did was make the Political Asylum instructions accessible to and understandable by people accustomed to thinking in Portuguese. This costs one dollar ($1) and you can read it on a cellphone with the Kindle app.(link)

Comment at LIBtranslator, my political economy blog at https://libertrans.blogspot.com/

Brazilian Sci-fi from 1926 featuring the adventures of a Rio de Janeiro man-about-town and the beautiful daughter of an elderly scientist–touting alcohol prohibition, eugenics and racial collectivism–in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)

Three dollars on Amazon Kindle

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

My financial history blog, http://www.Libertrans.us, is LIBtranslator, readable at libertrans.blogspot.com



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Background and context for the U.S.-caused 1931 Panic that raised Hitler to power in Germany





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