Happy New Year!
The new year brings some new listings that have been unearthed during the past year and retirement of some previous ones. The goal is to limit postings to 1-2 per day…with a few exceptions (one of which is right away on January 1 — because how can you leave one out!).
Thanks to all for your questions, comments, corrections and clarifications in 2015! Keep them coming.
Questions of banking and monetary issues could rise once more to the surface in 2016 in response to any number of bubbles bursting and contradictions emerging. If so, it’s all the more important to develop some degree of “monetary literacy” to be able to correctly analyze the roots of crises and be in a strong position to propose fundamental monetary reforms that (re)establishes democratic control over our nation’s monetary/money system.
We resume our weekly postings beginning on Monday. Feel free to forward this to others and encourage them to sign up!
1817 – SECOND NATIONAL BANK OF THE US OPENS
This was the third quasi national bank of the former British colonies — following the Bank of North America (1781-1785, charterd by the Continental Congress) and Bank of the United States (1791-1811, chartered by the US Congress). While called a “national” bank, it was not public but actually a commercial/corporate bank with the power to issue money directly (just like its two predecessors). It issued initially 20 times more money than it had in reserve its reserves as loans. This led to financial speculation and large corporate profits. A year later, it stopped issuing loans, resulting in a severe contraction of the money supply — which led to massive bankruptcies and the Panic of 1819. President Andrew Jackson believed the bank was a threat to the nation. He vetoed a bill in 1832 renewing the bank’s charter (license).
1879 – DATE TO REDEEM GREENBACKS FOR GOLD
Forces in opposition to public money passed the Resumption Act in 1875. It established January 1, 1879 as the date anyone could redeem federal Greenbacks for gold. Greenbacks were debt free money created by the Lincoln administration in his effort to avoid borrowing money from banks and having to pay interest. Why not simply create the money as stipulated in the Constitution (Art 1, Sec 8 giving the government the authority to coin money)? Bankers hoped most Greenbacks would be turned in – so that they could once more exclusively control the issuance and circulation of paper money – at enormous profit. Doomsayers predicted as Greenbacks were redeemed for gold, the nation would go bankrupt. Neither occurred. Only $135,000 in Greenbacks was exchanged for gold – nationwide. Meanwhile, $400,000 gold was exchanged for Greenbacks. The New York Daily Tribune called the day, “the grandest page in the history of the United States.”
1911 – US POSTAL SAVINGS SYSTEM OPENS
The Postal Savings System offered savings accounts to depositors, but no loans. When banks failed after the Great Depression, many people shifted their remaining funds. With post officers serving as bank branches, the Postal Savings System held upwards of 20% of the nation’s savings in the mid 1940’s. Commercial/corporate banks lobbied against their expansion and for their elimination — which occurred in 1967.
1909 – BIRTH OF BARRY GOLDWATER, FORMER REPUBLICAN SENATOR FROM ARIZONA
“The Trilateralist Commission is international…(and)…is intended to be the vehicle for multinational consolidation of commercial and banking interests by seizing control of the political government of the U.S. The Trilateralist Commission represents a skillful, coordinated effort to seize control and consolidate the four centers of power-political, monetary, intellectual and ecclesiastical.”
1928 – UNITED STATES SHIPPING BOARD EMERGENCY FLEET CORPORATION v. WESTERN UNION TELEGRAPH CO. [275 U.S. 415]
The U.S. Supreme Court stated the following in this decision regarding federal reserve banks: “Instrumentalities like the national banks or the federal reserve banks, in which there are private interests, are not departments of the government. They are private corporations in which the government has an interest.”
1977 – DEATH OF CARROLL QUIGLEY, PROFESSOR AND HISTORIAN
“The influence of financial capitalism and of the international bankers who created it was exercised both on business and on governments, but could have done neither if it had not been able to persuade both these to accept two ‘axioms’ of its own ideology…by basing the value of money on gold and by allowing bankers to control the supply of money. To do this it was necessary to conceal, or even mislead, both governments and people about the nature of money and its methods of operation.” (From his book, Tragedy and Hope)
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 firstname.lastname@example.org