The
power of the FED had become a danger to the United States and several bankers,
along with the US Treasury, were starting an alternative monetary system based
on banknotes secured by the silver of the US Treasury (silver certificates). In
the book “A Monetary History of the United States”, Milton Friedman and Anna
Schwartz[1]
show that in autumn 1929 the FED intentionally reduced the money supply
triggering the collapse of the US stock market and causing the Great
Depression. The policy of the FED caused the bankruptcy of one-third of all US
banks. All the banks that were working on the new silver dollar monetary system
were swept away by the great depression. Silver certificate dollars disappeared
and the FED had again the monopoly on the currency.
The Vital Needs Theory - page 80
[1] Friedman M. and Schwartz A.J.,
“A Monetary History of the United States, 1867-1960”, ISBN: 9781400829330