SENATE MEMORIAL 38

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

William P. Soules

A MEMORIAL

REQUESTING THE NEW MEXICO CONGRESSIONAL DELEGATION IN WASHINGTON, D.C., TO SUPPORT THE ADOPTION OF AN AMERICAN ECONOMIC RECOVERY POLICY TO SUPPORT EFFORTS TO RESTORE THE PROVISIONS OF THE FEDERAL GLASS-STEAGALL ACT, TO SUPPORT A NATIONAL BANKING SYSTEM AND CREDIT POLICIES TO FINANCE IMPORTANT INDUSTRY AND INFRASTRUCTURE PROJECTS AND TO SUPPORT REBUILDING THE UNITED STATES' SPACE PROGRAM AND THE DEVELOPMENT OF FUSION POWER.

     WHEREAS, the financial system in the United States is now holding over two hundred seventy-five trillion dollars ($275,000,000,000,000) of derivatives contracts in federally insured banks, according to the office of the comptroller of the currency; and

     WHEREAS, derivatives contributed to the financial meltdown of 2008, and derivatives now threaten a new financial crisis like that which occurred in 2008; and

     WHEREAS, the financial crisis is being driven by a collapse of the United States' industry and infrastructure; and

     WHEREAS, the United States' gross domestic product has experienced very slow growth since 2008; and

     WHEREAS, total factor productivity has been falling continuously, exhibiting low rates not seen in decades; and

     WHEREAS, a return to a durable recovery would be facilitated by the adoption of national banking and credit policies, similar to those that were implemented by Alexander Hamilton, John Quincy Adams, Abraham Lincoln, Franklin D. Roosevelt, Dwight D. Eisenhower and John F. Kennedy; and

     WHEREAS, an American economic recovery policy would restore the provisions of the federal Banking Act of 1933, also known as the federal Glass-Steagall Act, and pass H.R. 381, known as the federal Return to Prudent Banking Act of 2015, and S. 1709, the federal 21st Century Glass-Steagall Act of 2015, which aim to immediately restore the separation of investment and commercial banking; and

     WHEREAS, the Glass-Steagall Act was law for sixty-six years and prevented banking crises like the one experienced in 2008; and

     WHEREAS, the 21st Century Glass-Steagall Act of 2015 was added to the platforms of the Republican and Democratic parties in 2016; and

     WHEREAS, an American economic recovery policy would return to a national banking system, modeled on the principles of Alexander Hamilton's first bank of the United States, which built all of the early infrastructure of the nation, and on President John Quincy Adams's second bank of the United States, which oversaw the building of America's railroads; and

     WHEREAS, Abraham Lincoln adopted the same banking principles; and

     WHEREAS, the same federal credit policy was embodied in Franklin D. Roosevelt's reconstruction finance corporation, which financed the gigantic new deal infrastructure programs, of which New Mexico was a major beneficiary; and

     WHEREAS, under the new deal, countless New Mexico schools, post offices and public buildings were constructed and water, irrigation and power projects were undertaken, including the Elephant Butte dam and reservoir project and the Conchas lake and dam project on the Canadian river; and

     WHEREAS, New Mexico was a major research center of the Manhattan project, where the first nuclear devices were developed; and

     WHEREAS, an American economic recovery program would allow congress to immediately enact a new national infrastructure bank, with at least one trillion dollars ($1,000,000,000,000) to three trillion dollars ($3,000,000,000,000) of federally insured credit, not taxpayer money, to dedicate to infrastructure; and

     WHEREAS, an American economic recovery policy would use the federal credit system to build a modern network of high- speed rail, power-generating systems and water projects that would dramatically help New Mexico; and

     WHEREAS, an American economic recovery policy would launch an initiative, similar to that of John F. Kennedy's, to rebuild America's space program for the exploration of the solar system and to inspire future generations; and

     WHEREAS, an American economic recovery policy would also start an effort to develop fusion power, benefiting New Mexico, which is at the forefront of fusion-power research at both Sandia and Los Alamos national laboratories;

      NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the New Mexico congressional delegation be requested to support the passage of an American economic recovery policy to restore the provisions of the Glass-Steagall Act; and

     BE IT FURTHER RESOLVED that the New Mexico congressional delegation be requested to support a national banking system and credit policies in the tradition of Alexander Hamilton, Abraham Lincoln and Franklin D. Roosevelt to finance important industry and infrastructure projects; and

     BE IT FURTHER RESOLVED that the New Mexico congressional delegation be requested to support rebuilding and investing in the United States' space program and the development of fusion power; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the president of the United States and members of the New Mexico congressional delegation.

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