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This editorial appears in the June 17, 2011 issue of Executive Intelligence Review.

Labor Goes for Glass-Steagall

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As we commemorate the anniversary of President Franklin Roosevelt's signing of the Glass-Steagall Act—June 16, 1933—there are clear signs of accelerating motion for its reinstatement. Most significant institutionally, is the action being taken by organized labor, the AFL-CIO.

On June 14, the State Convention of the New Jersey AFL-CIO voted up a resolution of support for the Glass-Steagall bill, H.R. 1489, which was introduced into the House of Representatives by Rep. Marcy Kaptur (D-Ohio) on April 12. The full body, by a unanimous voice vote, approved the resolution, reprinted below, which had been voted up by its Executive Board the day before.

This action represents a powerful addition to the national mobilization underway to re-enact Glass-Steagall in the very short term, as the only means of adequately addressing the disastrous state of the U.S. economy, and the threat of an imminent total systemic financial breakdown crisis. As LaRouchePAC's New Jersey Congressional candidate Diane Sare put it in her statement on the event, the New Jersey AFL-CIO had struck a "gigantic blow for the Preamble of the U.S. Constitution."

It should be noted that the New Jersey resolution includes a statement that the national AFL-CIO supports the Kaptur legislation. Thus, more action from labor can be anticipated in the days ahead.

And indeed, it is only days that we have available to force Glass-Steagall through the Congress, if we are to head off the looming financial blowout already visible in Europe, and elsewhere. The New Jersey action must be taken by all patriots as a goad, and encouragement, to reach the July 4 goal Lyndon LaRouche has set for passing Glass-Steagall.

The full text of the New Jersey State AFL-CIO Executive Board Resolution follows:

"Resolution in Support H.R. 1489, 'The Return to Prudent Banking Act'

"Whereas, an effective money and banking system is essential to the functioning of the economy; and

"Whereas, such a system must function in the public interest, without bias; and

"Whereas, since 1933, the Federal Banking Act (known as Glass-Steagall) protected the public interest in matters dealing with the regulation of commercial and investment banking in addition to insurance companies and securities firms; and

"Whereas, the Glass-Steagall Act was repealed in 1999, permitting the financial industry to exploit the system for their own gain in disregard of the public interest; and

"Whereas, the House of Representatives and the Senate have been making efforts to restore the protections in the Glass-Steagall Act; and

"Whereas, Congresswoman Marcy Kaptur has introduced H.R. 1489 known as the "Return to Prudent Banking Act" and re-installing Glass-Steagall; and

"Whereas, the national AFL-CIO supports this legislation:

"Now Therefore Be It Resolved, that the Executive Board of the New Jersey State AFL-CIO supports the enactment of H.R. 1489 and urges members of the New Jersey Congressional Delegation in the House of Representatives and in the Senate to cosponsor and vote for this bill which will restore the protections of the Glass-Steagall Act; and

"Be It Finally Resolved that a copy of this resolution be sent to the New Jersey Congressional Delegation and Congresswoman Marcy Kaptur."

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