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Recommended reading after a crushing day for gold and silver

Section: Daily Dispatches

11:59p ET Tuesday, April 27, 2004

Dear Friend of GATA and Gold:

The spring dinner meeting of the Committee for Monetary
Research and Education, to be held in New York City on
Thursday, May 27, will have a special focus on gold. For
example, Tocqueville Gold Fund manager John Hathaway
will be among the speakers.

But precious metals fans who have begun to suspect that
they have stumbled over the secret knowledge of the
financial universe -- that, far from being antiquated
or Keynes' "barbarous relic," gold actually remains at
the secret center of everything -- may be even more
interested in the meeting's discussion of ...
Beardsley Ruml.

Today Ruml is seldom recalled except to be cursed by
reactionary and anarchist types -- numerous in the
gold cause's ranks -- for inventing income tax
withholding in the United States during World War II,
when he was chairman of the board of directors of the
New York Federal Reserve Bank. For an example of such
resentment, consider this column by Amity Shlaes in
The Wall Street Journal in 1999:

In any case, Ruml's withholding idea helped the United
States finance the defeat of German and Japanese
fascism, and while today's IRS may be an annoyance, it
probably remains preferable to the Gestapo and the
Kampeitei. And while Ruml was considered a
representative of Rockefeller interests, he also may
be credited for some profound observations much to the
liking of gold bugs.

That is, in 1945 Ruml gave a speech to the American
Bar Association and remarked, more or less, that
in a fiat money system government doesn't need to tax
to raise money; that in such a system government can
print as much money as it wants, taxing through currency
debasement; and that particular taxes in a fiat money
system are not taxes at all as much as devices of social

Ruml's speech was published in a magazine in January
1946 and you can read it here:

At the May 27 CMRE meeting, Thomas Ferguson, professor
of political science at the University of Massachusetts
at Boston, will review Ruml's career and his brutally
candid analysis of the modern tax system and will
explain why that analysis still matters.

The program for the CMRE meeting is appended and
GATA encourages its friends to attend. The price of
admission -- $130 for CMRE members and $145 for
others -- includes an excellent dinner at the Union
League Club on East 37th Street, only a few blocks
from Grand Central Station, where a bottle of water
and a bag of potato chips will cost you half that
much anyway.

Your secretary/treasurer plans to attend and would
be glad to see a few GATA supporters.

Please make reservations for the CMRE dinner by
contacting the group's president:

Elizabeth B. Currier, President
Committee for Monetary Research and Education Inc.
10004 Greenwood Court
Charlotte, North Carolina 28215
Voice: 704-598-3717
Fax: 704-599-7036

Elizabeth will need reservations by May 25.

Hope to see you there.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * * * * * * * * * * * * * * * * * * * * * * * * *

Committee for Monetary Research and Education Inc.

Annual Spring Dinner Meeting
Thursday, May 27, 2004

Union League Club
38 East 37th St.
New York City

* * *

Taxes, Markets, the Dollar, and Gold:
The Consequences of Public Policy

Cocktails, 5 p.m.

Session I, 5:30 p.m.

Speaker: Thomas Ferguson
Professor of political science at the University of
Massachusetts at Boston; author of "Golden
Rule" (University of Chicago Press).

Topic: Who Was Beardsley Ruml and Why Does He Still

Speaker: Charles Adams
Historian and lecturer, author of "For Good and Evil;
the Impact of Taxes on the Course of Civilization"
(Madison Books).

Topic: The Most Odious of Mankind

Session Chairman: Walker F. Todd
Lawyer, central banker, and author

* * *

Dinner, 7 p.m.

* * *

After-dinner sessions, 7:45 p.m.

Session II

Speaker: William Beach
Senior fellow in economics and managing director of
the Center for Data Analysis at the Heritage

Topic: The Federal Budget: Debt and Taxes

Session Chairman: Howard Segermark, president,
Segermark Co., a government relations and association
management firm

Session III

Speaker: John Hathaway
Senior partner, senior portfolio manager, and managing
director of Tocqueville Asset Management.

Topic: The Gold Market and the Real Value of a Dollar

Speaker: Victor Sperandeo
President of Alpha Financial Technologies, Dallas.

Topic: The Influence of the Federal Reserve on the
Financial Markets

Session Chairman: Richard L. Hanley
General partner, Hambletonian Partners L.P.

* * *

More About the Meeting and Speakers

In 1946 Beardsley Ruml wrote that, given control of a
central banking system and an inconvertible currency, a
government would be free of money worries. Taxes for
revenue were obsolete, Ruml wrote; taxes were for
economic and social programs. If the government needed
more revenue, it could just print the money.

Professor Thomas Ferguson has researched Beardsley Ruml
and begins the program with the important questions: Who
was Ruml and why does he still matter? The program goes
on to consider the subjects of Ruml's premise -- taxes,
the budget and revenues, inconvertible money, and the
influence of central banking.

Charles Adams knows the story of taxes from the beginning
through Princess Boadicea, who led her army of 230,000 in
a tax revolt in 60 A.D., to current regimes. The source
for the title of his talk, "The Most Odious of Mankind,"
is interesting.

William Beach is especially respected at the U.S. Capitol
for his expertise on federal budget policy, tax issues,
and the impact of policy on international markets and
taxpayers. He also knows how the deficit is driving policy.
He is a rare combination of skilled economist and practical
political operative.

John Hathaway manages Tocqueville Asset Management. His
analysis of the real value of the (inconvertible) dollar
is critical to an understanding of today's markets and
especially gold and exchange rates.

Victor Sperandeo has written three books: "Trader Vic --
Methods of a Wall Street Master," "Trader Vic II --
Principles of Professional Speculation," and "The
Crashmaker." He will address the influence of the Federal
Reserve on the markets.

As a special addition, CMRE will begin what is to become a
regular feature of our programs -- analysis of the status
of the dollar, its current situation, and its prospects.
This will be introduced by Tracy G. Herrick, chief
economist for the Private Bank of the Peninsula.


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