FEBRUARY 27
1844 – DEATH OF NICHOLAS BIDDLE, PRESIDENT OF SECOND NATIONAL BANK
Biddle threatened to cause a depression if President Andrew Jackson did not re-charter the Bank. The privately owned Second Bank was chartered in 1816. President Jackson did not sign the bill to renew the charter. "This worthy President thinks that ... he is to have his way with the Bank. He is mistaken...[opposition] can only be broken by the actual conviction of exiting distress in the community... Our only safety is in pursuing a steady course of firm restriction [of the money supply] - and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-charter of the Bank." The result of the contraction of the money supply was a financial panic followed by a deep depression. (Edward Kaplan, The Bank of the United States and the American Economy)
1867 – BIRTH OF IRVING FISHER, MATHEMATICAL ECONOMIST
"If two parties instead of being a bank and an individual, were an individual and an individual, they could not inflate the circulating medium by loan transaction, for the simple reason that the lender could not lend what he didn't have as banks can do ... Only commercial banks and trust companies can lend money that they manufacture by lending it.” 100% Money (1935)
FEBRUARY 28
1856 – BIRTH OF WOODROW WILSON, 28TH PRESIDENT OF THE UNITED STATES
“A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men who, even if their action be honest and intended for the public interest, are necessarily concentrated upon the great undertakings in which their own money is involved and who necessarily, by very reason of their own limitations, chill and check and destroy genuine economic freedom.” (1911)
MARCH 2
1876 -- US SILVER COMMISSION (TO STUDY THE CRIME OF 73) REPORT RELEASED ON WHAT CAUSED THE 1873 DEPRESSION
The Commission concluded that the depression was caused to a reduction of the money supply. They compared the 1873 Depression to the deflation of the Roman era. “The disaster of the Dark Ages was caused by decreasing money and falling prices… Without money, civilization could not have had a beginning, and with a diminishing supply, it must languish and unless relieved, finally perish. Falling prices and misery and destitution are inseparable companions. It is universally conceded that falling prices result from the contraction of the money volume.” The Report suggested that the Dark Ages ended when paper money was issued, “It is suggestive coincidence that the fist glimmer of light only came with the invention of bills of exchange, and paper substitutes…”
MARCH 3
1863 - LEGAL TENDER ACT PASSED
Congress authorizes the Government to print no more than $400,000 million Greenbacks to pay for the Civil War. This was interest-free and debt-free money. The Lincoln Administration did not want to borrow money from corporate banks to pay for the war.
1865 – NATIONAL CURRENCY ACT AMENDED BY CONGRESS
The act amended the National Currency Act of 1864. State banks were no longer permitted to issue bank notes (currency).
1884 – JULLIARD V. GREENMAN ( 110 U.S. 421 ) SUPREME COURT DECISION
US Supreme Court ruling upholding the legality of US Government issued money (Greenbacks) created following the Legal Tender Acts of 1862 and 1863. The Court ruled that the government possessed the authority under the Constitution to issue a national currency and that that currency could be used to pay debts.
2003 - WARREN BUFFET, SECOND RICHEST PERSON ON EARTH, IN HIS ANNUAL LETTER TO BERKSHIRE HATHWAY SHAREHOLDERS
“Derivatives are financial weapons of mass destruction."
MARCH 4
1789 – US GOVERNMENT UNDER NEW CONSTITUTION BEGINS OPERATION
The Constitution replaced the Articles of Confederation as the overarching legal document of the nation. The new Constitution provides the federal legislature the sole power “[t]o coin money [and] regulate the value thereof.” (Article 1, Sec 8). The Government subsequently abdicated its responsibility when it gave the Federal Reserve and private banks the power to create money literally out of thin air…as debt.
1837 – FAREWELL ADDRESS OF PRESIDENT ANDREW JACKSON
Jackson was most responsible for not renewing the charter of the misnamed Second Bank of the United States, a private institution. In his farewell address when leaving office (Presidents used to sworn in during the beginning of March for decades, now it’s mid January), he stated, “The immense capital and peculiar privileges bestowed upon it [(Second National Bank of the United States] enabled it to exercise despotic sway over the other banks in every part of the country. From its superior strength it could seriously injure, if not destroy, the business of any one of them, which might incur its resentment; and it openly claimed for itself the power of regulating the currency throughout the United States. In other words, it asserted (and it undoubtedly possessed) the power to make money plenty or scarce at its pleasure, at any time and in any quarter of the Union, by controlling the issues of other banks and permitting an expansion or compelling a federal contraction of the circulating medium, according to its own will.”
1861 – INAUGURATION OF PRESIDENT ABRAHAM LINCOLN, 16TH PRESIDENT OF THE UNITED STATES – A REPUBLICAN
"The Government should create issues, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of the consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. The privilege of creating and issuing money is not only the supreme prerogative of the government, but it is the Government's greatest creative opportunity."
This is something to keep in mind during this period when Republican parties at the local level hold their “Lincoln Day” annual fundraising dinners.
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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system, been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com
For more information, visit http://www.afsc.net/economiccrisis.html
Monday, February 27, 2012
Monday, February 20, 2012
MONETARY HISTORY CALENDAR - February 20-26
FEBRUARY 20
1862 – US SENATOR THADDEUS STEVENS SPEAKS ON SENATE FLOOR AGAINST “EXCEPTION CLAUSE” OF GREENBACK ACT
“I have a melancholy foreboding that we are about to consummate a cunningly devised scheme, which will carry great injury to all classes of people throughout the Union.” (see below for explanation of Exception Clause).
FEBRUARY 22
1878 – FOUNDING OF GREENBACK-LABOR PARTY
The National (Greenback-Labor) Party was formed at a convention in Toledo, Ohio. Their platform declared that reform of the monetary system was necessary in order to "secure to the producers of wealth the results of their labor and skill, and muster out of service the vast army of idlers who, under the existing system, grow rich upon the earnings of others, that every man and woman may, by their own efforts, secure a competence, so that overgrown fortunes and extreme poverty will seldom be found within the limits of our Republic.”
FEBRUARY 25
1791 – CREATION OF THE FIRST BANK OF THE UNITED STATES
A 20-year charter was issued by the federal government (very unusual at the time since most corporate charters, or licenses, were issued by states) to create the first national private bank. This was the first private institution empowered to create paper money -- with all the power and profit that goes along with it. The bank’s paper money was accepted for taxes. Eighty percent of its shares were privately owned, among these 75% were foreign owned (mostly by the English and Dutch). The bank was modeled on the Bank of England. It’s main proponent, Alexander Hamilton, argued in support: "Suppose that the necessity existed...for obtaining a loan; that a number of individuals came forward and said, we are willing to accommodate the government with this money (which we have or can raise) but in order to do this it is indispensable, that we should be incorporated as a bank...and we are obliged on that account to make it a consideration or condition of the loan." In other words, Hamilton was saying the private/corporate bank will be more than happy to give the government loans if the government grants the private/corporate bank the power to create money! Jefferson, Madison and others opposed it. Jefferson said, "This institution (the Bank of England) is one of the most deadly hostility against the principles of our Constitution…suppose an emergency should occur…an institution like this…in a critical moment might overthrow the government." The bank had an enormous impact on the economy early on. Within 2 months of its creation, it flooded the market with loans and banknotes and then suddenly called in many of its loans. The result was the first US securities market crash -- what became known as the “Panic of 1792” – the first of many panics, recessions and depressions due to the private/corporate control of our money system.
1862 – LEGAL TENDER ACT PASSED
A bill authorizing the issuance of $150 million non interest-bearing United States notes (commonly referred to as “Greenbacks”). Congress would later grant $300 million more in US notes. This was interest free US money. The administration of Republican President Abraham Lincoln wanted to avoid the nation going into debt borrowing money from private/corporate bankers to pay for the Civil War. Greenbacks were not bonds or notes or any other promises to pay “money” at some future time. They were money. Since they were not borrowed, they didn’t add to the national debt. What later made them inflationary was they were used to pay for war – which didn’t produce or add anything productive to the economy to offset the added money supply. The bill contained an “Exception Clause”, which stated that Greenbacks could not be used to pay the interest on the national debt, nor to pay taxes, excises, or import duties. This maintained a demand and legitimacy for bank-issued debt money.
1863 – NATIONAL BANKING ACT PASSED
It provided for the national chartering of banks by the federal government. This replaced state charters – many of which contained much more rigid and democratic provisions. The Act in numerous ways standardized banking across the country. The act established National Banking Associations, the office of the Comptroller of the Currency, and a system of national chartered banks with control over all of them coming from Washington. The new banks were given virtaully tax free status. In doing so, it entrenched what some have called “structural fraud” of the banking system – creating money out of thin air and charting interest on it.
----------------
Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system, been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com
For more information, visit http://www.afsc.net/economiccrisis.html
1862 – US SENATOR THADDEUS STEVENS SPEAKS ON SENATE FLOOR AGAINST “EXCEPTION CLAUSE” OF GREENBACK ACT
“I have a melancholy foreboding that we are about to consummate a cunningly devised scheme, which will carry great injury to all classes of people throughout the Union.” (see below for explanation of Exception Clause).
FEBRUARY 22
1878 – FOUNDING OF GREENBACK-LABOR PARTY
The National (Greenback-Labor) Party was formed at a convention in Toledo, Ohio. Their platform declared that reform of the monetary system was necessary in order to "secure to the producers of wealth the results of their labor and skill, and muster out of service the vast army of idlers who, under the existing system, grow rich upon the earnings of others, that every man and woman may, by their own efforts, secure a competence, so that overgrown fortunes and extreme poverty will seldom be found within the limits of our Republic.”
FEBRUARY 25
1791 – CREATION OF THE FIRST BANK OF THE UNITED STATES
A 20-year charter was issued by the federal government (very unusual at the time since most corporate charters, or licenses, were issued by states) to create the first national private bank. This was the first private institution empowered to create paper money -- with all the power and profit that goes along with it. The bank’s paper money was accepted for taxes. Eighty percent of its shares were privately owned, among these 75% were foreign owned (mostly by the English and Dutch). The bank was modeled on the Bank of England. It’s main proponent, Alexander Hamilton, argued in support: "Suppose that the necessity existed...for obtaining a loan; that a number of individuals came forward and said, we are willing to accommodate the government with this money (which we have or can raise) but in order to do this it is indispensable, that we should be incorporated as a bank...and we are obliged on that account to make it a consideration or condition of the loan." In other words, Hamilton was saying the private/corporate bank will be more than happy to give the government loans if the government grants the private/corporate bank the power to create money! Jefferson, Madison and others opposed it. Jefferson said, "This institution (the Bank of England) is one of the most deadly hostility against the principles of our Constitution…suppose an emergency should occur…an institution like this…in a critical moment might overthrow the government." The bank had an enormous impact on the economy early on. Within 2 months of its creation, it flooded the market with loans and banknotes and then suddenly called in many of its loans. The result was the first US securities market crash -- what became known as the “Panic of 1792” – the first of many panics, recessions and depressions due to the private/corporate control of our money system.
1862 – LEGAL TENDER ACT PASSED
A bill authorizing the issuance of $150 million non interest-bearing United States notes (commonly referred to as “Greenbacks”). Congress would later grant $300 million more in US notes. This was interest free US money. The administration of Republican President Abraham Lincoln wanted to avoid the nation going into debt borrowing money from private/corporate bankers to pay for the Civil War. Greenbacks were not bonds or notes or any other promises to pay “money” at some future time. They were money. Since they were not borrowed, they didn’t add to the national debt. What later made them inflationary was they were used to pay for war – which didn’t produce or add anything productive to the economy to offset the added money supply. The bill contained an “Exception Clause”, which stated that Greenbacks could not be used to pay the interest on the national debt, nor to pay taxes, excises, or import duties. This maintained a demand and legitimacy for bank-issued debt money.
1863 – NATIONAL BANKING ACT PASSED
It provided for the national chartering of banks by the federal government. This replaced state charters – many of which contained much more rigid and democratic provisions. The Act in numerous ways standardized banking across the country. The act established National Banking Associations, the office of the Comptroller of the Currency, and a system of national chartered banks with control over all of them coming from Washington. The new banks were given virtaully tax free status. In doing so, it entrenched what some have called “structural fraud” of the banking system – creating money out of thin air and charting interest on it.
----------------
Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system, been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com
For more information, visit http://www.afsc.net/economiccrisis.html
Wednesday, February 15, 2012
Legalized Crime: Fed Bankers and the Creation of Debt-Money
I'm participating on this panel next month. Consider attending!
http://www.leftforum.org/panel/legalized-crime-fed-bankers-and-creation-debt-money
Left Forum, Saturday, March 17, 2012, New York City
Panel Proposal Information
Abstract:
"The most important fundamental law in any nation is that which institutes money; for money governs the distribution of property, and thus affects in a thousand ways the relations of man to man." -- EdwardKellogg, 1861. Today nearly 14 million Americans are unemployed, another12 million underemployed, 43 million Americans live below the poverty line, 49 million go to bed hungry at night, and an estimated 3 million Americans are homeless. The US Congress created the Federal Reserve in 1913 giving private bankers the power to create money which institutionalized debt slavery for American workers and caused the misery many of the 99% are experiencing today, This panel will review the history of the Fed Reserve creation and describe how this power to create money by private bankers has caused this suffering. Strategies for returning the Constitutional power to create money to the people for the benefit of all Americans will be discussed. With solidarity the present system can be changed to create a world of hope for all Americans.
Panel Topics:
Political Economy And The Current Crisis
Participants
Chair:
Name: Julia Willebrand View Details
Speakers:
Name: Sue Peters View Details
Name: Greg Coleridge View Details
Name: Steven Walsh View Details
http://www.leftforum.org/panel/legalized-crime-fed-bankers-and-creation-debt-money
Tuesday, February 14, 2012
The Occupy Movement, Modified Consensus vs Simple Majority Democracy
The decision making method chosen by Occupy Wall Street, and later adapted by all Occupy groups in one manner or another, is the General assembly run by modified consensus. All decisions are made by the General Assembly. Some people claim this is too time consuming and "undemocratic", since an idea supported by a majority may not be enacted because of minority opposition. Much of this complaint is "sour grapes" from people unhappy their positions have not been adopted. True, some Occupy groups do consensus better than others. Full consensus is unworkable, but "modified consensus" makes time consuming obstruction more difficult. "Blocking" can only be used very rarely and the blocker has to come up with an alternative solution to achieve consensus. Furthermore, positions are not just reduced to "yes" or "no" . Opponents are asked "can you live with the (majority) decision, even if not in favour?" If most do, then the position is adopted.
We understand the drawbacks of simple consensus, but what about those associated with simple majority democracy (SMD) ? We don't hear about those. Yet, consensus arose precisely to overcome the severe problems with SMD.
In a voluntary organization a vote of 51 to 49 percent is a disaster in waiting if the minority is deeply opposed and the majority determined to get its way. A state can always used its armed wing to terrorize the minority into obedience, but with a free association, a split will occur, or people will leave en-mass. It is much better to leave such a decision until the time comes when the overwhelming majority agrees rather than pushing ahead, consequences be damned. It is far better to remain united over what you do agree on, than dividing over one issue, an issue that may not seem so important in the future anyway.
For a mass organization, the worst problem with SMD is the ease with which a small disciplined sectarian group can take over and destroy it. ( During the initial planning meetings back in August, political groups tried to impose their views on OWS, but were unable to do so.) A mass of diverse and otherwise unconnected individuals can be swayed by a seemingly coherent, disciplined and highly ideological group. The take over techniques are simple and are not limited to sectarian groups but are also used by right-wing social democrats.
You make sure all your members show up, and can "stack" the meeting with people brought in from wherever. Then through endless procedural wrangling you drag the meeting out so most of the unaffiliated start leaving. When you think you can win, you call the question, and even if victory is by one vote you have captured the organization. With modified consensus or super majority democracy, such take overs would be very unlikely, if not impossible.
Simple Majority Democracy can work without fear of such colonization within a very specific situation. That is an organization that is both highly decentralized and has a constitution that prevents changes hostile to the intent of the organization. This is the case with the IWW. In 106 years no sect has been able to penetrate it to any extent. A hostile group might take over a branch, but in order to stay within the union, they would in practice, have to act like any other branch. If they decided to act in a manner contrary to the constitution, say give union funds to a political party, they would be expelled immediately.
Mass organizations like Occupy are neither membership organizations, nor do they have constitutions protecting them. They are essentially open, mass assemblies and thus open to colonization. Modified consensus or super majority democracy prevent this occurring.
Finally, it should be noted that the critique of SMD is part of the whole new extension of democracy and democratic values that began in the 1960s with the rather vague concept of "participatory democracy." It is part of a whole package which includes self-management, the assembly, and the subsidiary concept. For most of today's activists SMD is seen as outdated and authoritarian.
Monday, February 13, 2012
How to Overthrow Corporate Rule in 5 Not-so-easy Steps
This is an excellent piece.
http://www.corporations.org/solutions/
Many people are spending a lot of their time volunteering to stop specific environmental threats, to address a specific labor issue, or to stop various other corporate abuses to our communities. The number of problems seems endless. Isn't there a faster way to save the world?
MONETARY HISTORY CALENDAR February 13-19
FEBRUARY 19
1869 CONGRESS PASSES BILL PROHIBITING USING UNITED STATES NOTES AS SECURITY OR COLLATERAL IN ANY LOAN MADE THROUGH A NATIONAL BANKING ASSOCIATION
“That no national banking association shall hereafter offer or receive United States notes or national bank notes as security or as collateral security for any loan of money…and any national banking association offending against the provisions of this act shall be deemed guilty of a misdemeanor and upon conviction thereof in any United States court having jurisdiction shall be punished by a fine…” Approved February 19 1869
This was one of many attacks by bankers on the Greenbacks – public money issued by the Lincoln Administration. Public control of the money system meant banks couldn’t control it. Banking corporations wanted, as they had done prior to and after Greenbacks, print money out of thin air and then charge interest on top of it (otherwise known as “debt money”). Banks pressured Congress in a variety of ways to delegitimize Greenbacks. This law was one such way.
NO OTHER ENTRIES THIS WEEK…HOWEVER IN COMMEMORATION OF THE ONE YEAR ANNIVERSARY OF THE “ARAB SPRING”
FROM THE KORAN (2: 275):
"Those who devour usury will not stand except as stands one whom the evil one by his touch hath driven to madness. That is because they say: 'Trade is like usury…but God hath permitted trade and forbidden usury."
Some features of Islamic banking principles (from the Associated Press, 1/2/97):
“Interest on deposits: Islamic banks pay no interest on deposits. Unlike fixed return promised by most Western banks, Islamic banks operate on principle of shared risk. Depositors can choose an account that guarantees their money but pays no dividend, or one that acts like an investment fund. Depositors in investment accounts share in the bank's profits, but risk losing money if its investments perform poorly.
Interest on loans: Islamic banks charge no interest on loans. Instead of lending money to commercial borrowers at fixed rate of return, Islamic bankers become partners, sharing in venture's profits and losses. Some Islamic banks also make mortgage loans, charging flat fees payable in monthly installments, with costs similar to traditional mortgages. But loans have no compound interest or late-payment charges, and borrowers are spared uncertainty of variable interest rates common in Western nations.”
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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system, been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com
For more information, visit http://www.afsc.net/economiccrisis.html
1869 CONGRESS PASSES BILL PROHIBITING USING UNITED STATES NOTES AS SECURITY OR COLLATERAL IN ANY LOAN MADE THROUGH A NATIONAL BANKING ASSOCIATION
“That no national banking association shall hereafter offer or receive United States notes or national bank notes as security or as collateral security for any loan of money…and any national banking association offending against the provisions of this act shall be deemed guilty of a misdemeanor and upon conviction thereof in any United States court having jurisdiction shall be punished by a fine…” Approved February 19 1869
This was one of many attacks by bankers on the Greenbacks – public money issued by the Lincoln Administration. Public control of the money system meant banks couldn’t control it. Banking corporations wanted, as they had done prior to and after Greenbacks, print money out of thin air and then charge interest on top of it (otherwise known as “debt money”). Banks pressured Congress in a variety of ways to delegitimize Greenbacks. This law was one such way.
NO OTHER ENTRIES THIS WEEK…HOWEVER IN COMMEMORATION OF THE ONE YEAR ANNIVERSARY OF THE “ARAB SPRING”
FROM THE KORAN (2: 275):
"Those who devour usury will not stand except as stands one whom the evil one by his touch hath driven to madness. That is because they say: 'Trade is like usury…but God hath permitted trade and forbidden usury."
Some features of Islamic banking principles (from the Associated Press, 1/2/97):
“Interest on deposits: Islamic banks pay no interest on deposits. Unlike fixed return promised by most Western banks, Islamic banks operate on principle of shared risk. Depositors can choose an account that guarantees their money but pays no dividend, or one that acts like an investment fund. Depositors in investment accounts share in the bank's profits, but risk losing money if its investments perform poorly.
Interest on loans: Islamic banks charge no interest on loans. Instead of lending money to commercial borrowers at fixed rate of return, Islamic bankers become partners, sharing in venture's profits and losses. Some Islamic banks also make mortgage loans, charging flat fees payable in monthly installments, with costs similar to traditional mortgages. But loans have no compound interest or late-payment charges, and borrowers are spared uncertainty of variable interest rates common in Western nations.”
----------
Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system, been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com
For more information, visit http://www.afsc.net/economiccrisis.html
Monday, February 6, 2012
MONETARY HISTORY CALENDAR - February 6-12
FEBRUARY 7
1870 HEPBURN V GRISWOLD US SUPREME COURT DECISION
The Court declared that certain parts of the passed Congressional Legal Tender acts in the 1860’s were unconstitutional. The Legal Tender acts authorized the government to issue paper money, “Greenbacks,” and recognized it as legal to meet financial obligations. The Court concluded, however, that a party to a contract could not use paper money as payment for a debt if the contract stipulated gold or silver as payment. The Court explained how the US Congress possessed the power to coin money, but that that power was different than the power to made paper money legal.
FEBRUARY 11
1847 – BIRTH OF THOMAS EDISON, US INVENTOR
“If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good... If the Government issues bonds, the brokers will sell them. The bonds will be negotiable; they will be considered as gilt edged paper. Why? Because the government is behind them, but who is behind the Government? The people. Therefore it is the people who constitute the basis of Government credit. Why then cannot the people have the benefit of their own gilt-edged credit by receiving non-interest bearing currency… instead of the bankers receiving the benefit of the people’s credit in interest-bearing bonds?”
2004 – RON PAUL, US CONGRESSMAN, SPEAKING TO THE HOUSE FINANCIAL SERVICES COMMITTEE
He referred to the Federal Reserve by stating, "maybe there's too much power in the hands of those who control monetary policy? The power to create the financial bubbles. The power to maybe bring the bubble about. The power to change the value of the stock market within minutes. That to me is just an ominous power and challenges the whole concept of freedom and liberty and sound money."
FEBRUARY 12
1791 – BIRTH OF PETER COOPER, US INDUSTRIALIST, PHILANTHROPIST (FOUNDED COOPER UNION) AND GREENBACK CANDIDATE FOR PRESIDENT
"The substitution of greenbacks for National bank notes, would have the bounty now paid to banks, which, being invested as a sinking fund, would in less than thirty years pay off the whole debt of the country.”
1809 – BIRTH OF ABRAHAM LINCOLN, 16TH PRESIDENT OF THE UNITED STATES
“The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy.”
Under Lincoln’s administration, the US Government issued 450 million “Greenbacks” – interest and inflation free government-issued currency. They weren’t government bills, bonds or any other debt-bearing notes. They were actual US-based money.
“The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity. The financing of all public enterprise, and the conduct of the treasury will become matters of practical administration. Money will cease to be master and will then become servant of humanity.”
1873 – COINAGE ACT PASSED BY CONGRESS (THE “CRIME OF ‘73”)
The Coinage Act removed silver as a form of currency (“demonetized) – leaving gold as the major form of US currency. The public didn’t realize at first what happened. With silver no longer a form of money, the overall amount of currency dramatically declined, causing the prices farmer’s received for their produce to drop (deflation) but the cost of their debts rise. Thousand of famers lost their land. Those who held silver also suffered. This was one of the sparks of the rise of the farmer-led US Populist movement.
______________________________________________________________________________________
Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system, been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com
1870 HEPBURN V GRISWOLD US SUPREME COURT DECISION
The Court declared that certain parts of the passed Congressional Legal Tender acts in the 1860’s were unconstitutional. The Legal Tender acts authorized the government to issue paper money, “Greenbacks,” and recognized it as legal to meet financial obligations. The Court concluded, however, that a party to a contract could not use paper money as payment for a debt if the contract stipulated gold or silver as payment. The Court explained how the US Congress possessed the power to coin money, but that that power was different than the power to made paper money legal.
FEBRUARY 11
1847 – BIRTH OF THOMAS EDISON, US INVENTOR
“If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good... If the Government issues bonds, the brokers will sell them. The bonds will be negotiable; they will be considered as gilt edged paper. Why? Because the government is behind them, but who is behind the Government? The people. Therefore it is the people who constitute the basis of Government credit. Why then cannot the people have the benefit of their own gilt-edged credit by receiving non-interest bearing currency… instead of the bankers receiving the benefit of the people’s credit in interest-bearing bonds?”
2004 – RON PAUL, US CONGRESSMAN, SPEAKING TO THE HOUSE FINANCIAL SERVICES COMMITTEE
He referred to the Federal Reserve by stating, "maybe there's too much power in the hands of those who control monetary policy? The power to create the financial bubbles. The power to maybe bring the bubble about. The power to change the value of the stock market within minutes. That to me is just an ominous power and challenges the whole concept of freedom and liberty and sound money."
FEBRUARY 12
1791 – BIRTH OF PETER COOPER, US INDUSTRIALIST, PHILANTHROPIST (FOUNDED COOPER UNION) AND GREENBACK CANDIDATE FOR PRESIDENT
"The substitution of greenbacks for National bank notes, would have the bounty now paid to banks, which, being invested as a sinking fund, would in less than thirty years pay off the whole debt of the country.”
1809 – BIRTH OF ABRAHAM LINCOLN, 16TH PRESIDENT OF THE UNITED STATES
“The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy.”
Under Lincoln’s administration, the US Government issued 450 million “Greenbacks” – interest and inflation free government-issued currency. They weren’t government bills, bonds or any other debt-bearing notes. They were actual US-based money.
“The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity. The financing of all public enterprise, and the conduct of the treasury will become matters of practical administration. Money will cease to be master and will then become servant of humanity.”
1873 – COINAGE ACT PASSED BY CONGRESS (THE “CRIME OF ‘73”)
The Coinage Act removed silver as a form of currency (“demonetized) – leaving gold as the major form of US currency. The public didn’t realize at first what happened. With silver no longer a form of money, the overall amount of currency dramatically declined, causing the prices farmer’s received for their produce to drop (deflation) but the cost of their debts rise. Thousand of famers lost their land. Those who held silver also suffered. This was one of the sparks of the rise of the farmer-led US Populist movement.
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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system, been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis and Greg Coleridge helped in its development.
Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com
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