The Founding Fathers' Vision of Prosperity Has Been Destroyed
Founding Fathers not only fought for liberty and justice, they also
fought for a sound economy and freedom from the tyranny of big banks:
was] the poverty caused by the bad influence of the English bankers on
the Parliament which has caused in the colonies hatred of the English
and . . . the Revolutionary War."
- Benjamin Franklin
"There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt."
- John Adams
the American people ever allow the banks to control issuance of their
currency, first by inflation and then by deflation, the banks and
corporations that grow up around them will deprive the people of all
property until their children will wake up homeless on the continent
their fathers occupied”.
— Thomas Jefferson
"I believe that
banking institutions are more dangerous to our liberties than standing
armies...The issuing power should be taken from the banks and restored
to the Government, to whom it properly belongs."
- Thomas Jefferson
Founding Fathers of this great land had no difficulty whatsoever
understanding the agenda of bankers, and they frequently referred to
them and their kind as, quote, ‘friends of paper money. They hated the
Bank of England, in particular, and felt that even were we successful in
winning our independence from England and King George, we could never
truly be a nation of freemen, unless we had an honest money system. ”
-Peter Kershaw, author of the 1994 booklet “Economic Solutions”
As I noted last year:
- according to Benjamin Franklin and others in the thick of the action
- a little-known factor was actually the main reason for the
To give some background on the issue, when Benjamin Franklin went to London in 1764, this is what he observed:
he arrived, he was surprised to find rampant unemployment and poverty
among the British working classes… Franklin was then asked how the
American colonies managed to collect enough money to support their poor
houses. He reportedly replied:
“We have no poor houses in the
Colonies; and if we had some, there would be nobody to put in them,
since there is, in the Colonies, not a single unemployed person, neither
beggars nor tramps.”
In 1764, the Bank of England used its
influence on Parliament to get a Currency Act passed that made it
illegal for any of the colonies to print their own money. The colonists
were forced to pay all future taxes to Britain in silver or gold.
Anyone lacking in those precious metals had to borrow them at interest
from the banks.
Only a year later, Franklin said, the streets
of the colonies were filled with unemployed beggars, just as they were
in England. The money supply had suddenly been reduced by half,
leaving insufficient funds to pay for the goods and services these
workers could have provided. He maintained that it was "the poverty
caused by the bad influence of the English bankers on the Parliament
which has caused in the colonies hatred of the English and . . . the
Revolutionary War." This, he said,
was the real reason for the Revolution: "the colonies would gladly
have borne the little tax on tea and other matters had it not been that
England took away from the colonies their money, which created
unemployment and dissatisfaction."
(for more on the Currency Act, see this.)
Alexander Hamilton echoed similar sentiments:
Alexander Hamilton, the nation's first treasury secretary, said that paper money had
composed three-fourths of the total money supply before the American
Revolution. When the colonists could not issue their own currency, the
money supply had suddenly shrunk, leaving widespread unemployment,
hunger and poverty in its wake. Unlike the Great Depression of the
1930s, people in the 1770s were keenly aware of who was responsible for
As historian Alexander Del Mar wrote in 1895:
creation and circulation of bills of credit by revolutionary
assemblies...coming as they did upon the heels of the strenuous efforts
made by the Crown to suppress paper money in America [were] acts of
defiance so contemptuous and insulting to the Crown that forgiveness was
thereafter impossible . . . [T]here was but one course for the crown
to pursue and that was to suppress and punish these acts of
rebellion...Thus the Bills of Credit of this era, which ignorance and
prejudice have attempted to belittle into the mere instruments of a
reckless financial policy were really the standards of the Revolution.
they were more than this: they were the Revolution itself!
And British historian John Twells said the same thing:
British Parliament took away from America its representative money,
forbade any further issue of bills of credit, these bills ceasing to be
legal tender, and ordered that all taxes should be paid in coins ...
Ruin took place in these once flourishing Colonies . . . discontent
became desperation, and reached a point . . . when human nature rises up
and asserts itself.
In fact, the Americans ignored the British ban on American currency, and:
in financing a war against a major power, with virtually no 'hard'
currency of their own, without taxing the people."
Indeed, the first act of the New Continental Congress was to issue its own paper scrip, popularly called the Continental.
and Thomas Paine later praised the local currency as a "corner stone"
of the Revolution. And Franklin consistently wrote that the American
ability to create its own credit led to prosperity, as it allowed the
creation of ample credit, with low interest rates to borrowers, and no
interest to pay to private or foreign bankers .
Is this just ancient history?
ability for America and the 50 states to create its own credit has
largely been lost to private bankers. The lion's share of new credit
creation is done by private banks, so - instead of being able to itself
create money without owing interest - the government owes unfathomable
trillions in interest to private banks.
America may have won the
Revolutionary War, but it has since lost one of the main things it
fought for: the freedom to create its own credit instead of having to beg for credit from private banks at a usurious cost.
As economic writer and attorney Ellen Brown has tried to teach to Obama, Schwarzenegger,
and anyone else who will listen, the way out of the economic crisis is
to stop paying interest to private banks for the creation of credit,
and to return to the system of government-issued credit used by the
Founding Fathers to create prosperity for the people and to gain
independence from their oppressors.
(And see this).
As I wrote in July:
Note: If we can't implement public banking, let's at least return to a gold standard.