The Freeman 1972 - The Ludwig von Mises Institute

252 THE FREEMAN Aprilmutual savings bank, savings andloan association, building and loanassociation, cooperative bank,homestead association, credit union,and United States postal savingsoffice.Section 2 of Chapter V is mostshocking in its wanton denial ofindividual freedom and privateproperty. Lest we·be suspected ofmisinterpretation, we quote:"(a) No depositor or share or savingsaccount owner may transfer inany manner or by any device whatsoeverany balance to his credit on thedate on which this Regulation becomeseffective, except for the paymentof (i) expenses or reconstructioncosts vital to the war effort, (ii)essential living costs, (iii) taxes,(iv) payrolls, or (v) obligations incurredbefore the date on which thisRegulation becomes effective, to theend that the best interest of the wareffort and the public will be served.(b) Banking institutions shall prohibitthe transfer of credit in anycase where there is reason to believethat such transfer is sought for anyunauthorized purpose.(c) After this· Regulation becomeseffective, banking institutions shallretain until released by Federal authoritythe original or a photographiccopy (face and reverse sides) of eachcheck and other evidence of transferof credit in the amount of $1,000 ormore."In short, your money in thebank is blocked unless you proposeto spend it toward the wareffort, Le., buy U.S. Treasury obligationsor finance expendituresdeemed "vital" by the government.You may withdraw your .moneyfor living expenses, but only sumsdeemed "essential." You may paytaxes and wages, and dischargeold obligations. But any other useof your money is prohibited. Letus assume that you were savingfor another car, new furniture, ora house, or for your children'scollege education. As such objectivescan hardly be called "essential,"neither for the war effortnor individual living, your moneycould be blocked.The Emergency Regulationwould permit business to pay taxesand wages, but deny all other expensesof doing business.· Afterall, manufacturers need materials,tools, and equipment in order toproduce goods and services. Merchantsneed ever new supplies ofmerchandise in order. to .stay .inbusiness. Even professional people,such as doctors and dentists,have expenses other than taxesand wages. This is why the Regulationwould halt all economic activitybut that of government. Infact, no enemy attack no matterhow devastating to human lifeand property' could conceivablyhave a more disruptive effect thanthe Emergency Banking Regulation.