How Special Interests Manipulate the Public – The Pujo Committee

On page 220 of the book The Triumph of Conservatism by Gabriel Kolko, we read the following passage:

“Fortunately for the reformers, the Pujo Committee swung into high gear in its investigations of the Money Trust during the summer of 1912, and for eight months frightened the nation with its awesome, if inconclusive, statistics on the power of Wall Street over the nation’s economy…. Five banking firms, the elaborate tables of the committee showed, held 341 directorships in 112 corporation with an aggregate capitalization of $22 billion. The evidence seemed conclusive, and the nation was suitably frightened into realizing that reform of the banking system was urgent – presumably to bring Wall Street under control….

The orgy of Wall Street was resurrected by the newspapers, who quite ignored the fact the the biggest advocates of banking reform were the bankers themselves, bankers with a somewhat different view of the problem…. Yet it was largely the Pujo hearings that made the topic of banking reform a serious one.”

This quote is cited from page 444 of The Creature from Jekyll Island, A Second Look at the Federal Reserve by G. Edward Griffin.

Special interests are quite willing to play the villains in order to get certain legislation passed. Since nobody actually reads the bills, it is very common for the same laws that were supposedly passed to restrict special interests to actually include tax breaks, subsidies, and competitive advantages for the purported villains. Its a pretty sneaky scam.

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