MONETARY HISTORY CALENDAR August 31 – September 6

lincolngback

AUGUST 31

1959 – ROBERT B. ANDERSON, SECRETARY OF THE TREASURY UNDER PRESIDENT EISENHOWER
“When a bank makes a loan it simply adds to the borrowers’ deposit account in the bank by the amount of the loan.  The money is not taken from anyone else’s deposit; it was not previously paid in to the bank by anyone.  It’s new money, created by the bank for the use of the borrower.” August 31, 1959

SEPTEMBER 1

1764 – PASSAGE OF BRITISH CURRENCY ACT
The Act banned Colonial paper money as legal tender, severely limiting commerce and widening the trade deficit between England and the Colonies. Colonists were forced to pay their taxes only in gold or silver. Many, including Benjamin Franklin, claimed this was one of the major triggers, if not the major trigger, of the Revolutionary War.

1894 – DATE AMERICAN BANKERS ASSOCIATION CALLS ON BANKS TO STOP LOANING MONEY TO CAUSE FORECLOSURES
American Bankers Association memo  (as submitted into the Congressional Record): “On September 1, 1894, we will not renew our loans under any consideration. On September 1st we will demand our money. We will foreclose and become mortgagers in possession.  We can take two-thirds of the farms west of the Mississippi, and thousands of them east of the Mississippi as well, at our own price… Then the farmers will become tenants as in England…”

SEPTEMBER 2

1839 – BIRTH OF HENRY GEORGE, ECONOMIST, POLITICIAN AND AUTHOR OF “PROGRESS AND POVERTY”
“[I]t is the business of government to issue money…To leave it to every one who chose to do so to issue money would be to entail general inconvenience and loss, to offer many temptations to roguery, and to put the poorer classes of society at a great disadvantage. These obvious considerations have everywhere, as society became well organized, led to the recognition of the coinage of money as an exclusive function of government. When, in the progress of society, a further labor-saving improvement becomes possible by the substitution of paper for the precious metals as the material for money, the reasons why the issuance of this money should be made a government function become still stronger. The evils entailed by wildcat banking in the United States are too well remembered to need reference. The loss and inconvenience, the swindling and corruption that flowed from the assumption by each State of the Union of the power to license banks of issue ended with the war, and no one would now go back to them. Yet instead of doing what every public consideration impels us to, and assuming wholly and fully as the exclusive function of the General Government the power to issue paper money, the private interests of bankers have, up to this, compelled us to the use of a hybrid currency, of which a large part, though guaranteed by the General Government, is issued and made profitable to corporations.”

1877 – BIRTH OF FREDERICK SODDY, NOBEL PRIZE RECIPIENT (CHEMISTRY) AND MONETARY REFORM AUTHOR
“There is nothing left now for us but to get ever deeper and deeper into debt to the banking system in order to provide the increasing amounts of money the nation requires for its expansion and growth. Our money system is nothing better than a confidence trick.”

SEPTEMBER 3

2014 – “CENTRAL BANK MONETARY POLICY ENABLES US TO PUT OFF REAL REFORMS” ARTICLE BY CHARLES HUGH SMITH
“I finally figured out that the core purpose of central banks’ monetary policy is to enable vested interests to avoid desperately needed reforms in the real economy. This might have been blindingly obvious to others, but I finally caught on to the dismaying reality: the only purpose of central bank monetary policy is to keep the bloated, corrupt, inefficient and self-liquidating vested interests of the state-cartel crony capitalism from having to suffer the consequences of real reforms.  …
“In the U.S., we need look no farther than higher education, sickcare and national defense for state-cartels systems operating to benefit vested interests. The Federal Reserve’s policies of zero-interest rates (ZIRP) and free money for financiers have enabled these corrupt, self-serving, parasitic sectors to maintain their skims and bloated cost structure–but at the cost of hollowing out the economy and increasing the risk that the financial Ponzi scheme will collapse in a heap of leveraged phantom assets.
“Now the latest scheme being proposed to dodge the needed reforms is to distribute free money from central banks directly to households. In other words, now that all these bloated, corrupt, inefficient cartels are no longer affordable, the central bank will save the day by issuing free money, backed by the creation of debt.”
http://www.washingtonsblog.com/2014/09/central-bank-monetary-policy-enables-us-put-real-reforms.html

SEPTEMBER 4

2014 – QUESTIONS AND ANSWERS ON INDEPENDENCE AND MONETARY REFORM — VIDEO
Skip to 2:21:50 for the start of the question and answer session on how Scotland can change the banking and monetary system — not only in their own country but in setting a model for the world in democratizing money creation

SEPTEMBER 5

1927 – BIRTH OF PAUL VOLKER, FORMER CHAIR OF THE FEDERAL RESERVE BOARD
QE3 (the third round of Quantitative Easing – the creation and distribution of money by the Federal Reserve, which went largely to financial and other corporations) is the “most extreme easing of monetary policy” that he could ever remember. “Another round of QE is understandable – but it will fail to fix the problem. There is so much liquidity in the market that adding more is not going to change the economy.”

SEPTEMBER 6

1943 – DEATH OF RICHARD MCKENNA, FORMER PRESIDENT, MIDLANDS BANK OF ENGLAND
“I am afraid that the ordinary citizen will not like to be told that the banks can and do create and destroy money.  And they who control the credit of a nation direct the policy of governments, and hold in the hollow of their hands the destiny of the people.”  (From a 1924 speech)

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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, 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, email monetarycalendar@yahoo.com

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