MONETARY HISTORY CALENDAR May 1 – 7

Greenbackk

MAY 1

1871 — KNOX V LEE US SUPREME COURT DECISION
This decision was one of several popularly known “Legal Tender Cases” during this period (the others were Hepburn v. Griswold and Julliard v Greenman). The Supreme Court reversed their earlier decision in Hepburn v. Griswold (1870). The decision upheld the Legal Tender Act declaring that making paper money legal tender did not conflict with US Constitution (Article 1). The decision allowed debtors to repay debts in Greenbacks rather than gold or silver.

MAY 2

2012— SPEECH BY FEDERAL RESERVE GOVERNOR DANIEL TARULLO AT THE COUNCIL OF FOREIGN RELATIONS
“It is sobering to recognize that, more than four years after the failure of Bear Stearns began the acute phase of the financial crisis, so much remains to be done–in implementing reforms that have already been developed, in modifying or supplementing these reforms as needed, and in fashioning a reform program to address shadow banking concerns. For some time my concern has been that the momentum generated during the crisis will wane or be redirected to other issues before reforms have been completed.” [Note: The political influence of financial corporations has prevented any serious banking and monetary reforms from being passed. Those that were passed have been watered-down during the implementation phase out of public spotlight thanks to intense lobbying from the same financial corporations]

MAY 3

1939 – TESTIMONY OF GRAHAM TOWERS, GOVERNOR OF THE BANK OF CANADA (1934-54) BEFORE CANADIAN SELECT STANDING COMMITTEE ON BANKING AND COMMERCE
Question: “But there is no question about it, that banks create that medium of exchange?” [i.e., bank deposits]
Towers: “That is right. That is what they are for.”
Question: “And they issue that medium of exchange when they purchase securities or make loans?”
Towers: “That is the banking business, just in the way that a steel plant makes steel.”  (p. 287)
Towers testified that just as steel corporations create steel, banking corporations create money. The difference is that steel corporations start with iron ore and apply labor and technology. Banks, by contrast, create money out of thin air…as debt.

2011— “REDUCING U.S DEBT AND CREATING JOBS THROUGH PUBLIC CONTROL OF OUR MONEY SYSTEM” BY STEPHEN ZARLENGA AND GREG COLERIDGE, HUFFINGTON POST
“Be it for ignorance or by intention, few federal elected officials have examined how a change in the way money in our nation is created and issued could reduce our nation’s deficit and debt and, in doing so, increase millions of vital jobs to transform our economy.
One of the few exceptions is Rep. Dennis Kucinich (D-OH), who during the last Congressional session introduced H.R. 6550, The National Emergency Employment Defense Act.
The three essential measures include:
1. Moving the mostly private Federal Reserve System under the US Treasury Department…
2. Making the power to issue money a public function — bypassing the current system, which invited the careless and risky lending that, led to the global economic crisis…
3. Enabling the U.S. government to use its money power — creating and spending money into circulation — to address pressing infrastructure needs such as repairing our crumbling roads, bridges, rails and highways…
The irony is that these three provisions would institutionalize what most Americans falsely believe already exists: That the Federal Reserve is public. That banks only loan money that they possess. That the government creates our money. Wrong on all counts.”

MAY 4

1821 – DEATH OF NAPOLEAN BONAPARTE
“Money has no motherland, financiers are without patriotism or decency; their sole object is gain.”

MAY 5

2005 – QUOTE BY ALAN GREENSPAN, CHAIRMAN OF THE FEDERAL RESERVE
“The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions. Derivatives have permitted the unbundling of financial risks.”
[NOTE: Three years later, the U.S. financial system imploded, causing what was called the “Great Recession,” but for many was a Great Depression as they lost homes, jobs and opportunities.]

MAY 6

2012 – GREEK PARLIAMENTARY ELECTION RESULTS IN 60% SUPPORT FOR PARTIES OPPOSED TO AUSTERITY MEASURES
The elections resulted in a coalition government led by the New Democracy Party. The Coalition of the Radical Left (SYRIZA) came in second. They and other parties, agreed, however, that the austerity terms of the bailout agreement with the European Union (EU), European Central Bank and the International Monetary Fund must be renegotiated. When Greece joined the European Union (like other nations), it gave up completely its monetary sovereignty. It no longer had the ability to create and distribute its own money as a means of economic health – including using democratic money creation to help its own people. It transferred that authority to the EU when it began accepting the euro.  The U.S. still technically possesses monetary sovereignty since it possesses its own currency – the dollar. The problem is that is still lost its sovereignty when it transferred to corporate interests, namely the Federal Reserve and banking corporations, the ability to create and circulate money – as debt via loans.

MAY 7

1873 – DEATH OF SALMON P. CHASE, US TREASURY SECRETARY/US SENATOR FROM OHIO
“My agency, in procuring the passage, of the National Bank Act, was the greatest financial mistake of my life.  It has built up a monopoly that affects every interest in the country. It should be repealed.  But before this can be accomplished, the people will be arrayed on one side and the banks on the other in a contest such as we have never seen in this country.”
[NOTE: The National Bank Acts of 1863 was known originally as the National Currency Act and was updated the following year. The Act established chartered national banks that could issue bank notes, which were backed by the United States Treasury. These notes existed side by side to public “Greenbacks” (directly issued by the government). Bankers supported the Bank Acts as a means to eventually replace Greenbacks and, thus, gain full control of the US money system.]

———————–

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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