The gross takings of the Federal Reserve System--extracted from American production and industry--amounted to $122,864,605. That's what it euphoniously calls its "earnings." First there came out the gigantic expense account, of which you have already read, of $36,066,065, leaving $86,798,540, which the monster calls its "current net earnings." There is then added to this $360,856, which in previous years had been deducted for "depreciation on U.S. Bonds," which didn't finally "depreciate." There is also added $131,536 under an "all other" blanket--much favored in the Federal Reserve System vocabulary. You now have $87,290,932 "current net earnings." From this are deducted $1,251,675 for "depreciation allowance on bank premises;" $2,861,500 for "reserve for possible losses" which probably won't occur; $400,000 "reserve for self insurance"--whatever that is; $49,295 "reserve for depreciation on U.S. Bonds"--which probably won't depreciate now that they have been sandbagged out of the hands of the original purchasers; $641,237 sandbagged out under the favorite "all other" Federal Reserve blanket. Here are $5,203,707 gone out in mere bookkeeping entries with the real money which these entries represent still in Federal Reserve custody. This leaves $82,087,225. From this is deducted a petty $6,119,673 dividends paid on the capital commandeered. From this is deducted $15,993,086 to be added to the already swollen Federal Reserve Surplus Account. And there is left just $59,974,466 for the much touted franchise tax. If you have followed these figures you have seen that in order to get a petty "franchise tax" of $59,974,466 into the hands of your Government, it cost you just exactly $62,890,139 to collect it--the precise difference between the Federal Reserve "earnings" and the amount paid into the Government. Ask yourself, is a tax of $59,974,466, which costs $62,896,139 to collect a "painless tax?" Is there any more painful tax levied on American industry? That's what this ballyhooed "franchise tax" amounted to in 1921 and all it amounted to--a tax of $59,974,466, which cost $62,890,139 to collect! CHAPTER XIII THE CAMOUFLAGE OF THE MONSTER DON'T check your brains at the portals of the Federal Reserve "Bunking" System. That is what its touters and ballyhooers want you to do. Federal Reserve bureaucrats and its beneficiaries and its hirelings and an artfully subsidized press have really put the "prop" in propaganda. They would have you believe--and literally hundreds of columns of inspired writings have been used to make you believe--that the Federal Reserve System is composed of twelve independent Federal Reserve Banks, each one especially devoted to fostering industry in its own regional territory.