1135 – DEATH OF KING HENRY I OF ENGLAND
About 1100, King Henry, short on gold money, created a unique form of government issued money – Tally Sticks. These sticks were just that – polished pieces or sticks of wood with notches of a certain size to indicated the value of the wood. They were declared by the King as money and issued for purchases. They were accepted by the King for payment of taxes. Tally Sticks was an accepted debt-free government-issued money system of England for over 700 years, including the period of the rise of the British Empire.
1896 – PRELIMINARY MEETING OF INDIANAPOLIS MONETARY CONVENTION
Organized by those connected to J.P. Morgan and John D. Rockefeller (the two most powerful bankers, if not businessmen, in the US at the time), a gathering was organized one month after William McKinley defeated William Jennings Bryan for President to address monetary issues. The economic power elite, which had back McKinley and his support for money backed by gold, realized a pure gold standard prevented the issuance of new money when needed to meet a growing economy. Rather than directly proposing a more “elastic” monetary system or the creation of a banker controlled central bank themselves, the bankers deliberately organized a gathering of businessmen, economists, and other academics, as well as bankers, in the nation’s heartland.
A preliminary meeting was held on December 1 with a larger gathering on January 12, 1897. The effort was to camouflage the interests of the major banking interests and convince the public and Congress of the existence of a grassroots movement for real monetary reform. The Indianapolis Monetary Convention urged President McKinley to continue the gold standard, and create a new system of “elastic” bank credit. To that end, the convention urged the president to appoint a new monetary commission to prepare legislation for a new revised monetary system.
A more in-depth report from what became the Indianapolis Monetary Commission was first published on December 1 of the following year in Sound Money magazine. This provided the political cover for the introduction in Congress of a bill to create what eventually became the US. Federal Reserve Act, creating the Federal Reserve System.
1975 – DEATH OF GRAHAM TOWERS, GOVERNOR, BANK OF CANADA, 1934-54
“Each and every time a bank makes a loan, new bank credit is created – new deposits – brand new money.”
1782 – BIRTH OF MARTIN VAN BUREN, 8TH PRESIDENT OF THE UNITED STATES
“The MONEY POWER…when firmly established, was destined to become the only kind of an Aristocracy that could exist in our political system.” (Note, Van Buren always capitalized “MONEY POWER” when using the term.)
Van Buren was Vice President when President Jackson refused to support the re-chartering of the private, misnamed “Second Bank of the United States” – the nation’s central bank at the time (equivalent in some ways to the Federal Reserve Bank of today). The Bank had originally been chartered for 20 years in 1816. A corporate charter was considered then a democratic tool, a means for the public to define the actions of a corporation to ensure it remained subordinate to meeting public needs (something We the People have forgotten today). After the Bank charter was dissolved (which meant the Bank could no longer create money as debt), Jackson and Van Buren sought to replace the money system with coinage or bank notes convertible to gold/silver. But this was an insufficient amount of currency needed to supply the growing the US economy. Currency contracted. The nation experienced the worst depression up to that time beginning in 1837.
1921 – THOMAS EDISON QUOTE IN THE NEW YORK TIMES
“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?”
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, Deb Jose 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 email@example.com