MONETARY HISTORY CALENDAR: October 9-15

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OCTOBER 9

1899 – BIRTH OF HENRY SIMONS, PROFESSOR OF ECONOMICS, UNIVERSITY OF CHICAGO
“The mistake lies in fearing money and trusting debt.”

2002 – LOW POINT OF THE DOT.COM CRASH
The explosive rise of the Internet resulted in the explosive rise of speculative financial investments in Internet corporations (the “dot.com” industry). A huge bubble ensued when the financial industry seeking quick and massive profits blindly invested in these dot-com start-ups without carefully reviewing their business plans. The euphoria turned to depression when many of these start-ups failed to make a profit. When they collapsed, the market collapsed. The full mania mode of the financial industry imploded The NASDAQ Composite lost 78% of its value as it fell from 5046.86 to 1114.11 on October 9, 2002.

OCTOBER 10

1895 – DEATH OF SARAH E.V. EMERY, AUTHOR OF “SEVEN FINANCIAL CONSPIRACIES WHICH HAVE ENSLAVED THE AMERICAN PEOPLE”
Published in 1888, it was a devastating indictment of the “money power” addressed to the farmer and laborer. It reportedly sold 400,000 copies through the Farmers’ Alliance circles, significantly contributing to monetary literacy nationwide. Its impact was so threatening that former U.S. Secretary of Treasury John Sherman (of Ohio) responded to it via a letter in the Cincinnati Enquirer. Emery also lectured nationally on monetary issues and the People’s Party

OCTOBER 11

2013 – “SEQUESTERS, SHUTDOWNS AND DEFAULTS” BY STEPHEN ZARLENGA PUBLISHED
What citizens should know is that our country can pay off its debt as it comes due; can put millions of people back to work rebuilding our crumbling infrastructure; can provide debt-free federal support for cash-strapped State governments, and end the so called great recession by putting cash in the hands of all our citizens through a citizens dividend. This gives small businesses what they need most – customers with cash to spend on their goods and services. All these things are made possible by the HR 2990 bill introduced by Dennis Kucinich and co-sponsored by John Conyers.
The bill accomplishes this by adjusting our money system from one of “debt money created by banks” when they make loans, to one of “money by law” created as money, not as debt, by our government. That power is already vested in Congress by the Constitution; “The Congress shall have the Power To… coin Money, regulate the Value thereof…” (Article 1, Section 8).

OCTOBER 12

1977 – PASSAGE OF THE COMMUNITY REINVESTMENT ACT
Advocated by a movement of neighborhood activists across the nation, Congress passed the Act that outlawed “redlining” or ”blackballing,” the common practice by banking corporations to discriminate by race and income in loans to individuals and small businesses.

OCTOBER 13

1879 – DEATH OF HENRY CAREY, CHIEF ECONOMIC ADVISOR TO PRESIDENT ABRAHAM LINCOLN
Carey was the major proponent in the Lincoln Administration of issuing debt-free US money, Greenbacks. In referencing the US economy under the Greenback system, he said, …”for the first time, too, in the history of the world, there has been presented a community in which nearly all business was done for cash, and in which debt has scarcely an existence…there has been a large and general diminution of the rate of interest…traders have therefore become more independent of the capitalist, while the country at large has become more independent of the ‘wealthy capitalists’ of Europe.”

OCTOBER 14

1644 – BIRTH OF WILLIAM PENN, EARLY QUAKER, FOUNDER OF THE PROVINCE OF PENNSYLVANIA – THE ENGLISH NORTH AMERICAN COLONY (FUTURE COMMONWEALTH OF PENNSYLVANIA)
Penn’s colony becomes one of the first to issue its own currency in 1723 as a means to become more economically independent from the British crown. The money backed by peoples’ land assets, not by gold or silver. Benjamin Franklin, who in 1731 secured the contract to print Pennsylvania’s money, noted that after the colonial legislature first issued paper money, economic conditions in the colony improved – as measured by internal trade, employment, new construction and number of inhabitants.

2008 – US TAXPAYERS BAILS OUT NINE US BANKS
US injects $250 billion of $700 billion available in public money from the Emergency Economic Stabilization Act into the US banking system. The US takes an equity position in banks that choose to participate in the program in exchange for certain restrictions such as executive compensation. Nine banks agreed to participate in the program: 1) Bank of America, 2) JPMorgan Chase, 3) Wells Fargo, 4) Citigroup, 5) Merrill Lynch, 6) Goldman Sachs, 7) Morgan Stanley, 8) Bank of New York Mellon and 9) State Street.

OCTOBER 15

1908 – BIRTH OF JOHN KENNETH GALBRAITH, U.S. ECONOMIST
Two quotes. “The study of money, above all other fields in economics, is one in which complexity is used to disguise or evade truth, not to reveal it.” “The process by which banks create money is so simple that the mind is repelled.”

1913 – ADDRESS OF NELSON ALDRICH (FORMER SENATOR OF RHODE ISLAND AND CHAIR OF THE NATIONAL MONETARY COMMISSION) BEFORE THE ACADEMY OF POLITICAL SCIENCE
In commenting on the proposed bill that would become the Federal Reserve Act passed later in the year, Aldrich said, “If the attempt is successful it will be the first and most important step toward changing our form of government from a democracy to an autocracy. No imperial government in Europe would venture to suggest, much less enact, legislation of this kind.”

1982 – U.S. CONGRESS PASSES GARN – ST. GERMAIN DEPOSITORY INSTITUTIONS ACT
The act deregulated savings and loan associations and allowed banks to provide adjustable rate mortgage loans. Many believe it contributed to the savings and loan crisis of the late 1980s.

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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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