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Title: A Short Banking History of the United States
Source:
Wall Street Journal
URL Source: http://online.wsj.com/article/SB122360636585322023.html
Published: Oct 8, 2008
Author: JOHN STEELE GORDON
Post Date: 2012-01-07 19:23:52 by lucysmom
Keywords: None
Views: 4945
Comments: 15
We are now in the midst of a major financial panic. This is not a unique occurrence in American history. Indeed, we've had one roughly every 20 years: in 1819, 1836, 1857, 1873, 1893, 1907, 1929, 1987 and now 2008. Many of these marked the beginning of an extended period of economic depression. How could the richest and most productive economy the world has ever known have a financial system so prone to periodic and catastrophic break down? One answer is the baleful influence of Thomas Jefferson. Jefferson, to be sure, was a genius and fully deserves his place on Mt. Rushmore. But he was also a quintessential intellectual who was often insulated from the real world. He hated commerce, he hated speculators, he hated the grubby business of getting and spending...
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#1. To: lucysmom (#0)
Thomas Jefferson on Politics & Government 43. Foreign Commerce http://www.famguardian.org/Subjects/Politics/ThomasJefferson/jeff1450.htm
Oh, he understood it all too well, and knew that a central bank could enslave the nation. It was common knowledge then AND now, that it is exactly "a giveaway to the rich." Here are quotes from QUOTES ON BANKING: "Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" — Sen. Barry Goldwater (Rep. AR) "This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill." — Charles A. Lindbergh, Sr. , 1913 "From now on, depressions will be scientifically created." — Congressman Charles A. Lindbergh Sr. , 1913 "The financial system has been turned over to the Federal Reserve Board. That Board as ministers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money" -- Charles A. Lindbergh Sr., 1923 "The Federal Reserve bank buys government bonds without one penny..." — Congressman Wright Patman, Congressional Record, Sept 30, 1941 "We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it". — Congressman Louis T. McFadden in 1932 (Rep. Pa) "The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers — Congressman Louis T. McFadden (Rep. Pa) "Some people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" — Congressional Record 12595-12603 — Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932 "I have never seen more Senators express discontent with their jobs....I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected." — John Danforth (R-Mo) "These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency..." — Mr. Crozier of Cincinnati, before Senate Banking and Currency Committee - 1913 "The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the currency... I do not like to think that any law can be passed that will make it possible to submerge the gold standard in a flood of irredeemable paper currency." — Henry Cabot Lodge Sr., 1913 -------------------------------------------------------------------------------- From the Federal Reserves Own Admissions "When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." — Putting it simply, Boston Federal Reserve Bank "Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just a piece of paper. Deposits are merely book entries." — Modern Money Mechanics Workbook, Federal Reserve Bank of Chicago, 1975 "The Federal Reserve system pays the U.S. Treasury 020.60 per thousand notes -- a little over 2 cents each-- without regard to the face value of the note. Federal Reserve Notes, incidentally, are the only type of currency now produced for circulation. They are printed exclusively by the Treasury's Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau's full cost of production. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in 1945." —Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system "We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." — Robert H. Hamphill, Atlanta Federal Reserve Bank -------------------------------------------------------------------------------- From General Law "The entire taxing and monetary systems are hereby placed under the U.C.C. (Uniform Commercial Code)" — The Federal Tax Lien Act of 1966 "There is a distinction between a 'debt discharged' and a debt 'paid'. When discharged, the debt still exists though divested of it's charter as a legal obligation during the operation of the discharge, something of the original vitality of the debt continues to exist, which may be transferred, even though the transferee takes it subject to it's disability incident to the discharge." —Stanek vs. White, 172 Minn.390, 215 N.W. 784 "The Federal Reserve Banks are not federal instrumentalities..." — Lewis vs. United States 9th Circuit 1992 "The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." — Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982 -------------------------------------------------------------------------------- Past Presidents, not including the Founding Fathers "Whoever controls the volume of money in any country is absolute master of all industry and commerce." — James A. Garfield, President of the United States "A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men." — President Woodrow Wilson -------------------------------------------------------------------------------- Founding Father's Quotes on Banking (Maybe some repeats from "Founding Father's Quotes" / Information tends to converge) Thomas Jefferson "I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs." — Thomas Jefferson, U.S. President. Andrew Jackson "If Congress has the right [it doesn't] to issue paper money [currency], it was given to them to be used by...[the government] and not to be delegated to individuals or corporations" — President Andrew Jackson, Vetoed Bank Bill of 1836 James Madison "History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance." — James Madison -------------------------------------------------------------------------------- Misc. Sources "Banks lend by creating credit. They create the means of payment out of nothing" — Ralph M. Hawtrey, Secretary of the British Treasury "To expose a 15 Trillion dollar rip-off of the American people by the stockholders of the 1000 largest corporations over the last 100 years will be a tall order of business." — Buckminster Fuller "Every Congressman, every Senator knows precisely what causes inflation...but can't, [won't] support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him his job." — Robert A. Heinlein, Expanded Universe "It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." — Henry Ford "[Every circulating FRN] represents a one dollar debt to the Federal Reserve system." — Money Facts, House Banking and Currency Committee "...the increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to 45 billion dollars in 1949 went directly to the private stockholders of the [federal reserve] banks." — Eustace Mullins "As soon as Mr. Roosevelt took office, the Federal Reserve began to buy government securities at the rate of ten million dollars a week for 10 weeks, and created one hundred million dollars in new [checkbook] currency, which alleviated the critical famine of money and credit, and the factories started hiring people again." — Eustace Mullins "Should government refrain from regulation (taxation), the worthlessness of the money becomes apparent and the fraud can no longer be concealed." — John Maynard Keynes, "Consequences of Peace." "Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits." — SIR JOSIAH STAMP, (President of the Bank of England in the 1920's, the second richest man in Britain): "The modern Banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and unmint the modern ledger-entry currency." — MAJOR L .L. B. ANGUS: "While boasting of our noble deeds were careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery. — Horace Greeley "People who will not turn a shovel full of dirt on the project (Muscle Shoals Dam) nor contribute a pound of material, will collect more money from the United States than will the People who supply all the material and do all the work. This is the terrible thing about interest ...But here is the point: If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People. If the currency issued by the People were no good, then the bonds would be no good, either. It is a terrible situation when the Government, to insure the National Wealth, must go in debt and submit to ruinous interest charges at the hands of men who control the fictitious value of gold. Interest is the invention of Satan." — THOMAS A. EDISON "By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." — John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920). "Capital must protect itself in every way...Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principal men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd."-- Taken from the Civil Servants' Year Book, "The Organizer" January 1934. "The Federal Reserve banks, while not part of the government..." — United States budget for 1991 and 1992 part 7, page 10 The Money Power! It is the greatest power on earth; and it is arrayed against Labour. No other power that is or ever was can be named with it... it attacks us through the Press - a monster with a thousand lying tongues, a beast surpassing in foulness any conceived by the mythology that invented dragons, were wolves, harpies, ghouls and vampires. It thunders against us from innumerable platforms and ,Yes, so far as we are concerned, the headquarters of the Money Power is Britain. But the Money Power is not a British institution; it is cosmopolitan. It is of no nationality, but of all nationalities. It dominates the world. The Money Power has corrupted the faculties of the human soul, and tampered with the sanity of the human intellect... Editorial from 1907 edition of The Brisbane Worker (Australia) ...I am convinced that the agreement [Bretton Woods] will enthrone a world dictatorship of private finance more complete and terrible than and Hitlerite dream. It offers no solution of world problems, but quite blatantly sets up controls which will reduce the smaller nations to vassal states and make every government the mouthpiece and tool of International Finance. It will undermine and destroy the democratic institutions of this country - in fact as effectively as ever the Fascist forces could have done - pervert and paganise our Christian ideals; and will undoubtedly present a new menace, endangering world peace. World collaboration of private financial interests can only mean mass unemployment, slavery, misery, degradation and financial destruction. Therefore, as freedom loving Australians we should reject this infamous proposal. -- Labor Minister of Australia, Eddie Ward, during the inception of the World Bank and Bretton Woods, he gave this warning.
“Contemplate the mangled bodies of your countrymen, and then say 'what should be the reward of such sacrifices?' Bid us and our posterity bow the knee, supplicate the friendship and plough, and sow, and reap, to glut the avarice of the men who have let loose on us the dogs of war to riot in our blood and hunt us from the face of the earth? If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom, go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!” -- Samuel Adams --
What you've got there is a collection of "sound bites", not an argument.
Economics is a social phenomenon and in no way a “science”, no matter how desperately its high priests would like to have it believed otherwise. It is, instead, a branch of anthropology and the sooner that is recognized and accepted, the better off human-kind in general and the world of academic economics, in particular, shall be proximity1 We probably will see widespread civil disorder in the 1980s, as a direct result of our faltering economic system. Ron Paul
You bounce back and forth like a ball. Last week you hated the rich. This week you're arguing for them and their banks. I think all you really want is to argue, tit for tat, back and forth, endlessly, with Eric. You're craving for attention from Eric is a little creepy.
Well, she does think she deserves the attention... and in this case, I'd agree with her. But she's gravely mistaken as far as why she deserves it... [And yeah, she thinks she's quite the catch...] “Contemplate the mangled bodies of your countrymen, and then say 'what should be the reward of such sacrifices?' Bid us and our posterity bow the knee, supplicate the friendship and plough, and sow, and reap, to glut the avarice of the men who have let loose on us the dogs of war to riot in our blood and hunt us from the face of the earth? If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom, go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!” -- Samuel Adams --
Last week you hated the rich. This week you're arguing for them and their banks. I think all you really want is to argue, tit for tat, back and forth, endlessly, with Eric. You're craving for attention from Eric is a little creepy. So you only argue with the facts that you happen to agree with? That's quite telling. I hope other RP supporters are not so biased.
"ROTFLMAO... Perfect! She longs... for someone to Teabag her. a man that squats on top of a women's face and lowers his genitals into her mouth during sex, known as "teabagging" She aches for it"... ~~~JWpegler. Head Tea Bagger and Tea Party supporter extraordinaire, explicitly expressing his fantasies in public about other posters.
“Contemplate the mangled bodies of your countrymen, and then say 'what should be the reward of such sacrifices?' Bid us and our posterity bow the knee, supplicate the friendship and plough, and sow, and reap, to glut the avarice of the men who have let loose on us the dogs of war to riot in our blood and hunt us from the face of the earth? If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom, go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!” -- Samuel Adams --
That makes no sense. I'll be happy to answer any question that you have, but I have to understand it first.
I'll be happy to answer any question that you have, but I have to understand it first. There you go with your dancing again. Lucy doesn't have to agree with the role of banks in order to prove that one of the original intentions by the founders was creating or allowing one to be created through one of the first legislative processes they were directly involved in.
"ROTFLMAO... Perfect! She longs... for someone to Teabag her. a man that squats on top of a women's face and lowers his genitals into her mouth during sex, known as "teabagging" She aches for it"... ~~~JWpegler. Head Tea Bagger and Tea Party supporter extraordinaire, explicitly expressing his fantasies in public about other posters.
They are constantly trying to re-frame the argument in black or white terms, you're either for or against. When that doesn't work, they resort to what they know best - adolescent insults.
Economics is a social phenomenon and in no way a “science”, no matter how desperately its high priests would like to have it believed otherwise. It is, instead, a branch of anthropology and the sooner that is recognized and accepted, the better off human-kind in general and the world of academic economics, in particular, shall be proximity1 We probably will see widespread civil disorder in the 1980s, as a direct result of our faltering economic system. Ron Paul
Dancing? LOL! I'm not dancing. But I can't read your thoughts either. All it takes is for you to SAY WHAT YOU MEAN, and not beat around the Bush with your silly, sarcastic questions. "Lucy doesn't have to agree with the role of banks in order to prove that one of the original intentions by the founders was creating or allowing one to be created through one of the first legislative processes they were directly involved in." See, now, was that so hard? How, in the name of all that's fair and decent, was I to get that from your response of "So you only argue with the facts that you happen to agree with?"???? Lucy didn't "prove" that one of the original intentions of the founders was creating or allowing one (a Central Bank) to be created. All she proved, which was already known, was that one was created. And to even SAY that was one of the original intentions, flies in the face of what they actually wrote in the Constitution and the Federalist Paper #44 which explains what they wrote, which I posted in another thread, and no one has even tried to refute. It may have been the intentions of SOME or our founders, but it was the opposite of what the others believed and they fought it tooth and nail. And...as you well know, just because government does something, that doesn't mean that it's constitutional. The constitution and the federalist papers are quite clear on the subject, even if the SCOTUS wasn't.
When that doesn't work, they resort to what they know best - adolescent insults. It seems to be a basic tenet of the libertarian creed. Putting everyone in their proper pigeon hole.
"ROTFLMAO... Perfect! She longs... for someone to Teabag her. a man that squats on top of a women's face and lowers his genitals into her mouth during sex, known as "teabagging" She aches for it"... ~~~JWpegler. Head Tea Bagger and Tea Party supporter extraordinaire, explicitly expressing his fantasies in public about other posters.
When that doesn't work, they resort to what they know best - adolescent insults. It seems to be a basic tenet of the libertarian creed. Putting everyone in their proper pigeon hole. You know, we COULD keep the argument about the issue and facts at hand, and not about each other. Just a thought.
Just a thought. And you could stop making every thread about yourself. Just a thought.
"ROTFLMAO... Perfect! She longs... for someone to Teabag her. a man that squats on top of a women's face and lowers his genitals into her mouth during sex, known as "teabagging" She aches for it"... ~~~JWpegler. Head Tea Bagger and Tea Party supporter extraordinaire, explicitly expressing his fantasies in public about other posters.
Just a thought. And you could stop making every thread about yourself. Just a thought. Yeah, I'll work on that. {eyes rolling}
He (Thomas Jefferson) hated commerce
#2. To: lucysmom (#0)
To Jefferson, who may not have understood the concept of central banking, Hamilton's idea was what today might be called "a giveaway to the rich."
#3. To: Capitalist Eric (#2)
#4. To: lucysmom, Capitalist Eric (#3)
#5. To: We The People (#4)
You're craving for attention from Eric is a little creepy.
#6. To: We The People (#4)
You bounce back and forth like a ball.
#7. To: mininggold (#6)
(Edited)
So you only argue with the facts that you happen to agree with?
#8. To: mininggold (#6)
So you only argue with the facts that you happen to agree with?
#9. To: We The People, lucysmom (#8)
(Edited)
That makes no sense.
#10. To: mininggold (#9)
Lucy doesn't have to agree with the role of banks in order to prove that one of the original intentions by the founders was creating or allowing one to be created through one of the first legislative processes they were directly involved in.
#11. To: mininggold (#9)
(Edited)
There you go with your dancing again.
#12. To: lucysmom (#10)
They are constantly trying to re-frame the argument in black or white terms, you're either for or against.
#13. To: mininggold, lucysmom (#12)
They are constantly trying to re-frame the argument in black or white terms, you're either for or against.
#14. To: We The People (#13)
(Edited)
You know, we COULD keep the argument about the issue and facts at hand, and not about each other.
#15. To: mininggold (#14)
You know, we COULD keep the argument about the issue and facts at hand, and not about each other.
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