central banks in us history

8/8/2019 Central Banks in US History

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Facts About The History Of Central Banks In The US That

Our Children Are No Longer Taught In School

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End of The American Dream

Today, most American students dont even understand what a central bank is, much less that the battle over central banks

is one of the most important themes in U.S. history. The truth is that our nation was birthed in the midst of a conflict over

taxation and the control of our money. Central banking has played a key role in nearly all of the wars that America hasfought. Presidents that resisted the central bankers were shot, while others shamefully caved in to their demands. Our

current central bank is called the Federal Reserve and it is about as federal as Federal Express is. The truth is that it is a

privately-owned financial institution that is designed to ensnare the U.S. government in an endlessly expanding spiral of

debt from which there is no escape. The Federal Reserve caused the Great Depression and the Federal Reserve is at the

core of our current economic crisis. None of these things is taught to students in Americas schools today.

In 2010, young Americans are taught a sanitized version of American history that doesnt even make any sense. As with

so many things, if you want to know what really happened just follow the money.

The following are 41 facts about the history of central banks in the United States that every American should

know.

#1 As a result of the Seven Years War with France, King George III of England was deeply in debt to the central bankers

of England.

#2 In an attempt to raise revenue, King George tried to heavily tax the colonies in America.

#3 In 1763, Benjamin Franklin was asked by the Bank of England why the colonies were so prosperous, and this was his

response.
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That is simple. In the colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to

the demands of trade and industry to make the products pass easily from the producers to the consumers.

In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to

pay to no one.

#4 The Currency Act of 1764 ordered the American Colonists to stop printing their own money. Colonial script (the

money the colonists were using at the time) was to be exchanged at a two-to-one ratio for notes from the Bank of

England.

#5 Later, in his autobiography, Benjamin Franklin explained the impact that this currency change had on the colonies.

In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent

that the streets of the Colonies were filled with unemployed.

#6 In fact, Benjamin Franklin stated unequivocally in his autobiography that the power to issue currency was the primary

reason for the Revolutionary War.

The colonies would gladly have borne the little tax on tea and other matters had it not been that Eng land took away fromthe colonies their money, which created unemployment and dissatisfaction. The inability of the colonists to get power to

issue their own money permanently out of the hands of George III and the international bankers was the prime reason for

the Revolutionary War.

#7 Gouverneur Morris, one of the authors of the U.S. Constitution, solemnly warned us in 1787 that we must not allow the

bankers to enslave us.

The rich will strive to establish their dominion and enslave the rest. 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.

#8 Unfortunately, those warning us about the dangers of a central bank did not prevail. After an aborted attempt to

establish a central bank in the 1780s, the First Bank of the United States was established in 1791. Alexander Hamilton

(who had close ties to the Rothschildbanking family) cut a deal under which he would support the move of the nations

capital to Washington D.C. in exchange for southern support for the establishment of a central bank.

#9 George Washington signed the bill creating the First Bank of the United States on April 25, 1791. It was given a 20

year charter.

#10 In the first five years of the First Bank of the United States, the U.S. government borrowed 8.2 million dollars and

prices rose by 72 percent.

#11 The opponents of central banking were not pleased. In 1798, Thomas Jefferson said the following.

I wish it were possible to obtain a single amendment to our Constitution taking from the federal government their

power of borrowing.

#12 In 1811, the charter of the First Bank of the United States was not renewed.

#13 One year later, the War of 1812 erupted. The British and the Americans were at war once again.


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#14 In 1814, the British captured and burned Washington D.C., but the Americans subsequently experienced key victories

at New York and at New Orleans.

#15 The Treaty of Ghent, officially ending the war, was ratified by the U.S. Senate on February 16th, 1815 and was

ratified by the British on February 18th, 1815.

#16 In 1816, another central bank was created. The Second Bank of the United States was established and was given a 20

year charter.

#17 Andrew Jackson, who became president in 1828, was determined to end the power of the central bankers over the

United States.

#18 In fact, in 1832, Andrew Jacksons re-election slogan was JACKSON and NO BANK!

#19 On July 10th, 1832 President Jackson said the following about the danger of a central bank.

It is not our own citizens only who are to receive the bounty of our government. More than eight millions of the stock of

this bank are held by foreigners is there no danger to our liberty and independence in a bank that in its nature has so

little to bind it to our country? Controlling our currency, receiving our public moneys, and holding thousands of ourcitizens in dependence would be more formidable and dangerous than a military power of the enemy.

#20 In 1835, President Jackson completely paid off the U.S. national debt. He is the only U.S. president that has ever

been able to accomplish this.

#21 President Jackson vetoed the attempt to renew the charter of the Second Bank of the United States in 1836.

#22 Richard Lawrence attempted to shoot Andrew Jackson, but he survived. It is alleged that Lawrence said that

wealthy people in Europe had put him up to it.

#23 The Civil War was another opportunity for the central bankers of Europe to get their hooks into America. In fact, it is

claimed that Abraham Lincoln actually contacted Rothschild banking interests in Europe in an attempt to finance the war

effort. Reportedly, the Rothschilds were demanding very high interest rates and Lincoln balked at paying them.

#24 Instead, Lincoln pushed through the Legal Tender Act of 1862. Under that act, the U.S. government issued

$449,338,902 of debt-free money.

#25 This debt-free money was known as Greenbacks because of the green ink that was used.

#26 The central bankers of Europe were not pleased. The following quote appeared in the London Times in 1865.

If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture,

then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all

the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world.

The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every

monarchy on the globe.

#27 Abraham Lincoln was shot dead by John Wilkes Booth on April 14th, 1865.


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#28 After the Civil War, all money in the United States was created by bankers buying U.S. government bonds in

exchange for bank notes.

#29 James A. Garfield became president in 1881, and he was a staunch opponent of the banking powers. In 1881 he said

the following.

Whoever controls the volume of money in our country is absolute master of all industry and commerceand when you

realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not

have to be told how periods of inflation and depression originate.

#30 President Garfield was shot about two weeks later by Charles J. Guiteau on July 2nd, 1881. He died from medical

complications on September 19th, 1881.

#31 In 1906, the U.S. stock market was setting all kinds of records. However, in March 1907 the U.S. stock market

absolutely crashed. It is alleged that elite New York bankers were responsible.

#32 In addition, in 1907 J.P. Morgan circulated rumors that a major New York bank had gone bankrupt. This caused a

massive run on the banks. In turn, the banks started recalling all of their loans. The panic of 1907 resulted in a

congressional investigation that ended up concluding that a central bank was necessary so that these kinds of panicswould never happen again.

#33 It took a few years, but the international bankers finally got their central bank in 1913.

#34 Congress voted on the Federal Reserve Act on December 22nd, 1913 between the hours of 1:30 AM and 4:30 AM.

#35 A significant portion of Congress was either sleeping at the time or was already at home with their families

celebrating the holidays.

#36 The president that signed the law that created the Federal Reserve, Woodrow Wilson, later sounded like he very much

regretted the decision when he wrote the following.

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 [W]e have come to be one of the worst

ruled, one of the most completely controlled and dominated, governments in the civilized worldno longer a government

by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and

the duress of small groups of dominant men.

#37 Between 1921 and 1929 the Federal Reserve increased the U.S. money supply by 62 percent. This was the time

known as The Roaring 20s.

#38 In addition, highly leveraged margin loans became very common during this time period.

#39 In October 1929, the New York bankers started calling in these margin loans on a massive scale. This created the

initial crash that launched the Great Depression.

#40 Rather than expand the money supply in response to this crisis, the Federal Reserve really tightened it up.


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#41 In fact, it was reported that the U.S. money supply contracted by eight billion dollars between 1929 and 1933. That

was an extraordinary amount of money in those days. Over one-third of all U.S. banks went bankrupt. The New York

bankers were able to buy up other banks and all kinds of other assets for pennies on the dollar.

But are American students being taught any of this today?

Of course not.

In fact, it is a rare student that can even adequately explain what a central bank is.

We have lost so much of what is important about our history.

And you know what they saythose who forget history are doomed to repeat it.

It is absolutely critical that we educate as many Americans as possible about what is really going on in our financial

system and about why we need to make some truly fundamental changes.

central banks in us history

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