[size="4"][color="#008080"]Part VI[/color][/size][size="4"][color="#008080"][size="2"] (of XVIII)[/size] :[/color][/size][size="4"][color="#008080"] The Money Changers enter America[/color][/size]
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[font="Arial"][size="3"][color="#008080"]# The Bank of North America[/color][/size]
Towards the end of the revolution the Continental Congress grew desperate for money. In 1781 they allowed Robert Morris, the financial superintendent, to open a privately owned central bank. Incidentally, Morris was a wealthy men, who had grown wealthy in the revolution by trading war materials.
Called The Bank of North America, the new bank was closely modeled after The Bank of England. It was allowed to practice Fractional Reserve Banking.
That is, it could lend out money it didn't have, then charge interest on it.
If you or I would do that, we would be charged with fraud, a felony.
The banks charter called for private investors to put up $400.000 worth of initial capital.
But when Morris was unable to raise the money, he brazenly used his political influence to have gold deposited in the bank which had been loaned to America by France . He then loaned this money to himself and his friends to reinvest in shares of the bank.
And like The Bank of England, the bank was given a monopoly over the national currency.
Soon the danger became clear. The value of American currency begun to plummet.
So 4 years later, in 1785, the bank charter was not renewed.
The leader of the effort to kill the bank, William Findley of Pennsylvania, explained the problem this way:[/font]
[indent]"This institution, having no principle but that of avarice, will never be varied in its object ... to engross all the wealth, power and influence of the state."
[/indent][size="3"][color="#008080"]
[font="Arial"]# The Constitutional Convention[/color][/size]
In 1787 colonial leaders assembled in Philadelphia to replace the articles of confederation.
As we saw earlier both Thomas Jefferson and James Madison were unalterably opposed to a privately owned central bank.
As Jefferson later put it:[/font]
[indent][color="#000000"]"[color="#ff0000"]If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.[/color]"[/color]
[/indent] During the debate over the future monetary system another one of The Founding Fathers Gouverneur Morris (a defector from the ranks of the Bank) castigated the motivations of the owners of the Bank of North America.
Morris headed the committee that wrote the final draft of The Constitution. In a letter he wrote to James Madison on July 2nd 1787 Morris revealed what was really going on:
[indent][color="#000000"]"[color="#ff0000"]The rich will strive to establish their dominion and enslave the rest.[/color] They always did. They always will.... They will have the same effect here as elsewhere, if we do not, by [the power of] government, keep them in their proper spheres."[/color]
[/indent]
Hamilton, Robert Morris, Thomas Willing and their European bankers convinced the bulk of the delegates to the constitutional convention to not give congress the power to issue paper money.
Most of the delegates were still reeling from the wild inflation of the paper currency during the revolution. They had forgotten how well Colonial Scrip had worked before the war.
[size="2"]But The Bank of England had not. The Money Changers could not stand to have America printing their own money again.
[/size][color="#ff0000"]So the Constitution is silent on the matter.[/color]
This gravest defect left the door wide open for The Money Changers, just as they had planned.
[size="3"][color="#008080"]
[font="Arial"]# First Bank of the United States[/color][/size]
In 1790, less than 3 years after The Constitution had been signed, The Money Changers struck again. The newly appointed secretary of the treasury, Alexander Hamilton, proposed a bill to the congress calling for a new privately owned central bank.
Coincidentally, this was the very year that Amshel Rothschild made his pronouncement from his flagship bank in Frankfurt:[/font] [indent][font="Courier New"][color="#000000"]"[color="#ff0000"]Let me issue and control a nation's money and I care not who writes the laws[/color]"<img src='http://www.india-forum.com/forums/public/style_emoticons/<#EMO_DIR#>/ohmy.gif' class='bbc_emoticon' alt=':o' />[/color]
[/font] [/indent]
Interestingly one of Hamilton's first jobs after graduating from law school in 1782, was as an aid to Robert Morris, the head of the Bank of North America. In fact the year before Hamilton had written Morris a letter saying:
[indent][font="Courier New"]"A national debt, if not excessive will be to us a national blessing."
[/font][/indent]A blessing to whom?
After a year of intense debate in 1791, congress passed the bill and gave it a 20 year charter.
The new bank was to be called The First Bank of the United States, or BUS.
The men behind First Bank of the United States were the same -- Alexander Hamilton, Robert Morris, and the bank's president Thomas Willing. Thus, only only 6 years after the Bank of North America ended, Hamilton, then Secretary of The Treasury, and his mentor Morris, had rammed the new privately owned central bank trough the new congress.
The players were the same, only the name of the bank was changed.
The bank was given a monopoly on printing US currency, even though 80% of it's stock would be held by private investors. The other 20% would be purchased by the US Government. But the reason was not to give the government a peace of the action, it was to provide the capital for the other 80% honours.
As with the old Bank of North America and The Bank of England before that, the stockholders never paid the full amount for their shares. The US Government put up their initial $2 million in cash.
Then the bank, through the old magic of fractional reserve lending, made loans to its charter investors, so they could come up with the remaining $8 million of capital needed for this risk free investment.
Like The Bank of England, the name of the Bank of the United States, was deliberately chosen to hide the fact that it was privately controlled.
And like The Bank of England, the names of the investors in the bank were never revealed.
Many years later it was a common saying that the Rothschilds were the power behind the old Bank of the United States.
The bank was sold to congress as a way to bring stability in the banking system and to eliminate inflation.
So what happened?
Over the first 5 years the US Government borrowed $8.2 million from the Bank of the US.
In the same 5 year period, prices rose by 72%.
Jefferson as the new Secretary of State watched the borrowing with sadness and frustration unable to stop it:
[indent][font="Courier New"]"I wish it were possible to obtain a single amendment to our Constitution .. taking from the federal government their power of borrowing."
[/font][/indent]
Millions of Americans feel the same way today.
They watch in helpless frustration as the federal government borrows the American economy into oblivion.
[color="#ff0000"]As with The Bank of North America the government put up most of the cash to get this private bank going. Then the bankers loaned this money to each other, to buy the remaining stock in the bank.[/color]
[color="#ff0000"]It was a scam, plain and simple.[/color]
We again travel back to Europe, to see how a single man was able to manipulate the entire British economy, by obtaining the first news about Napoleon's final defeat.
Stay tuned...
[size="2"]
[/size]
[font="Arial"][size="3"][color="#008080"]# The Bank of North America[/color][/size]
Towards the end of the revolution the Continental Congress grew desperate for money. In 1781 they allowed Robert Morris, the financial superintendent, to open a privately owned central bank. Incidentally, Morris was a wealthy men, who had grown wealthy in the revolution by trading war materials.
Called The Bank of North America, the new bank was closely modeled after The Bank of England. It was allowed to practice Fractional Reserve Banking.
That is, it could lend out money it didn't have, then charge interest on it.
If you or I would do that, we would be charged with fraud, a felony.
The banks charter called for private investors to put up $400.000 worth of initial capital.
But when Morris was unable to raise the money, he brazenly used his political influence to have gold deposited in the bank which had been loaned to America by France . He then loaned this money to himself and his friends to reinvest in shares of the bank.
And like The Bank of England, the bank was given a monopoly over the national currency.
Soon the danger became clear. The value of American currency begun to plummet.
So 4 years later, in 1785, the bank charter was not renewed.
The leader of the effort to kill the bank, William Findley of Pennsylvania, explained the problem this way:[/font]
[indent]"This institution, having no principle but that of avarice, will never be varied in its object ... to engross all the wealth, power and influence of the state."
[/indent][size="3"][color="#008080"]
[font="Arial"]# The Constitutional Convention[/color][/size]
In 1787 colonial leaders assembled in Philadelphia to replace the articles of confederation.
As we saw earlier both Thomas Jefferson and James Madison were unalterably opposed to a privately owned central bank.
As Jefferson later put it:[/font]
[indent][color="#000000"]"[color="#ff0000"]If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.[/color]"[/color]
[/indent] During the debate over the future monetary system another one of The Founding Fathers Gouverneur Morris (a defector from the ranks of the Bank) castigated the motivations of the owners of the Bank of North America.
Morris headed the committee that wrote the final draft of The Constitution. In a letter he wrote to James Madison on July 2nd 1787 Morris revealed what was really going on:
[indent][color="#000000"]"[color="#ff0000"]The rich will strive to establish their dominion and enslave the rest.[/color] They always did. They always will.... They will have the same effect here as elsewhere, if we do not, by [the power of] government, keep them in their proper spheres."[/color]
[/indent]
Hamilton, Robert Morris, Thomas Willing and their European bankers convinced the bulk of the delegates to the constitutional convention to not give congress the power to issue paper money.
Most of the delegates were still reeling from the wild inflation of the paper currency during the revolution. They had forgotten how well Colonial Scrip had worked before the war.
[size="2"]But The Bank of England had not. The Money Changers could not stand to have America printing their own money again.
[/size][color="#ff0000"]So the Constitution is silent on the matter.[/color]
This gravest defect left the door wide open for The Money Changers, just as they had planned.
[size="3"][color="#008080"]
[font="Arial"]# First Bank of the United States[/color][/size]
In 1790, less than 3 years after The Constitution had been signed, The Money Changers struck again. The newly appointed secretary of the treasury, Alexander Hamilton, proposed a bill to the congress calling for a new privately owned central bank.
Coincidentally, this was the very year that Amshel Rothschild made his pronouncement from his flagship bank in Frankfurt:[/font] [indent][font="Courier New"][color="#000000"]"[color="#ff0000"]Let me issue and control a nation's money and I care not who writes the laws[/color]"<img src='http://www.india-forum.com/forums/public/style_emoticons/<#EMO_DIR#>/ohmy.gif' class='bbc_emoticon' alt=':o' />[/color]
[/font] [/indent]
Interestingly one of Hamilton's first jobs after graduating from law school in 1782, was as an aid to Robert Morris, the head of the Bank of North America. In fact the year before Hamilton had written Morris a letter saying:
[indent][font="Courier New"]"A national debt, if not excessive will be to us a national blessing."
[/font][/indent]A blessing to whom?
After a year of intense debate in 1791, congress passed the bill and gave it a 20 year charter.
The new bank was to be called The First Bank of the United States, or BUS.
The men behind First Bank of the United States were the same -- Alexander Hamilton, Robert Morris, and the bank's president Thomas Willing. Thus, only only 6 years after the Bank of North America ended, Hamilton, then Secretary of The Treasury, and his mentor Morris, had rammed the new privately owned central bank trough the new congress.
The players were the same, only the name of the bank was changed.
The bank was given a monopoly on printing US currency, even though 80% of it's stock would be held by private investors. The other 20% would be purchased by the US Government. But the reason was not to give the government a peace of the action, it was to provide the capital for the other 80% honours.
As with the old Bank of North America and The Bank of England before that, the stockholders never paid the full amount for their shares. The US Government put up their initial $2 million in cash.
Then the bank, through the old magic of fractional reserve lending, made loans to its charter investors, so they could come up with the remaining $8 million of capital needed for this risk free investment.
Like The Bank of England, the name of the Bank of the United States, was deliberately chosen to hide the fact that it was privately controlled.
And like The Bank of England, the names of the investors in the bank were never revealed.
Many years later it was a common saying that the Rothschilds were the power behind the old Bank of the United States.
The bank was sold to congress as a way to bring stability in the banking system and to eliminate inflation.
So what happened?
Over the first 5 years the US Government borrowed $8.2 million from the Bank of the US.
In the same 5 year period, prices rose by 72%.
Jefferson as the new Secretary of State watched the borrowing with sadness and frustration unable to stop it:
[indent][font="Courier New"]"I wish it were possible to obtain a single amendment to our Constitution .. taking from the federal government their power of borrowing."
[/font][/indent]
Millions of Americans feel the same way today.
They watch in helpless frustration as the federal government borrows the American economy into oblivion.
[color="#ff0000"]As with The Bank of North America the government put up most of the cash to get this private bank going. Then the bankers loaned this money to each other, to buy the remaining stock in the bank.[/color]
[color="#ff0000"]It was a scam, plain and simple.[/color]
We again travel back to Europe, to see how a single man was able to manipulate the entire British economy, by obtaining the first news about Napoleon's final defeat.
Stay tuned...