Editor, The Times:
Recently I stumbled on a copy of the late Anthony Sampson’s “The Money Lenders.” Published in 1981 it is hopelessly out of date – many of the banks mentioned no longer exist and of course many of their managers have passed on to another existence.
However, a reread finds many of Sampson's observations pertinent to today's world.
Anthony Sampson was the king of the so-called 'muckrakers.' With his long aristocratic face plus almost perfect diction he could skewer corporations, as in his book “The Sovereign State of ITT” or the weapons trade in “The Arms Bazaar” the way no one else could.
In “The Moneylenders,” Sampson showed the link between bankster misbehaving and the crash of 1929.
Of course Milton Freedman blamed it all on the Fed (U.S. Federal Reserve System) failing to buy up some bonds, etc.
This brings to mind the words of another great wordsmith, Lewis Lapham – listening to these rightwing propagandists gives one the feeling of Alice at the Mad Hatter's tea party. They would rather blame the wicked witch of the west or the east before admitting any wrong on their part. Note here – toward the end of his days Milton Friedman did admit that he might be wrong about some things.
One of the most significant things about “The Moneylenders” is that Anthony Sampson shows that the Great Depression and 2007 – 2008 were not the only times that the banking system has been in trouble. Doesn't anyone remember 1974? Of course you don't. I wouldn't if I hadn't reread “The Moneylenders.”
British, German, and American banks were in deep trouble. To quote Anthony Sampson, “Nearly all the champions of free enterprise were now appealing to Washington to rescue them with a federal loan.” In other words good old socialism for the rich to the rescue!
New York City, which was on the edge of default, was bailed out to the tune of $2.3 billion.
This was a drop in the bucket in compared to the rescue of 2007 – 2008, but it shows the pattern of bailouts was already established.
As Anthony Sampson said, the banking system is an essential part of the world's economy.
Too bad it has such feet of clay.
Dennis Peacock
Clearwater, B.C.