History Of Central Banks In The United States

Bigger text (+)Smaller text (-)
Translate this Page!

41 Facts About The History Of Central Banks In The United States That Our Children Are No Longer Taught In School

By Michael T. Snyder, The Economic Collapse Blog
Friday, November 12, 2010 1:21

Today, most American students don't even understand what a central bank is, much less that the battle over central banks is one of the most important themes in U.S. history.  The truth is that our nation was birthed in the midst of a conflict over taxation and the control of our money.  Central banking has played a key role in nearly all of the wars that America has fought.  Presidents that resisted the central bankers were shot, while others shamefully caved in to their demands.  Our current central bank is called the Federal Reserve and it is about as "federal" as Federal Express is.  The truth is that it is a privately-owned financial institution that is designed to ensnare the U.S. government in an endlessly expanding spiral of debt from which there is no escape.  The Federal Reserve caused the Great Depression and the Federal Reserve is at the core of our current economic crisis.  None of these things is taught to students in America's schools today.

In 2010, young Americans are taught a sanitized version of American history that doesn't even make any sense.  As with so many things, if you want to know what really happened just follow the money.

The following are 41 facts about the history of central banks in the United States that every American should know....

#1 As a result of the Seven Years War with France, King George III of England was deeply in debt to the central bankers of England.

#2 In an attempt to raise revenue, King George tried to heavily tax the colonies in America.

#3 In 1763, Benjamin Franklin was asked by the Bank of England why the colonies were so prosperous, and this was his response....

"That is simple. In the colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers.

In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one."

#4 The Currency Act of 1764 ordered the American Colonists to stop printing their own money.  Colonial script (the money the colonists were using at the time) was to be exchanged at a two-to-one ratio for "notes" from the Bank of England.

#5 Later, in his autobiography, Benjamin Franklin explained the impact that this currency change had on the colonies....

"In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed."

#6 In fact, Benjamin Franklin stated unequivocally in his autobiography that the power to issue currency was the primary reason for the Revolutionary War....

"The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the prime reason for the Revolutionary War."

#7 Gouverneur Morris, one of the authors of the U.S. Constitution, solemnly warned us in 1787 that we must not allow the bankers to enslave us....

"The rich will strive to establish their dominion and enslave the rest. They always did. They always will... They will have the same effect here as elsewhere, if we do not, by (the power of) government, keep them in their proper spheres."

#8 Unfortunately, those warning us about the dangers of a central bank did not prevail.  After an aborted attempt to establish a central bank in the 1780s, the First Bank of the United States was established in 1791.  Alexander Hamilton (who had close ties to the Rothschild banking family) cut a deal under which he would support the move of the nation's capital to Washington D.C. in exchange for southern support for the establishment of a central bank.

#9 George Washington signed the bill creating the First Bank of the United States on April 25, 1791.  It was given a 20 year charter.

#10 In the first five years of the First Bank of the United States, the U.S. government borrowed 8.2 million dollars and prices rose by 72 percent.

#11 The opponents of central banking were not pleased.  In 1798, Thomas Jefferson said the following....

"I wish it were possible to obtain a single amendment to our Constitution - taking from the federal government their power of borrowing."

#12 In 1811, the charter of the First Bank of the United States was not renewed.

#13 One year later, the War of 1812 erupted.  The British and the Americans were at war once again.

#14 In 1814, the British captured and burned Washington D.C., but the Americans subsequently experienced key victories at New York and at New Orleans.

#15 The Treaty of Ghent, officially ending the war, was ratified by the U.S. Senate on February 16th, 1815 and was ratified by the British on February 18th, 1815.

#16 In 1816, another central bank was created.  The Second Bank of the United States was established and was given a 20 year charter.

#17 Andrew Jackson, who became president in 1828, was determined to end the power of the central bankers over the United States.

#18 In fact, in 1832, Andrew Jackson's re-election slogan was "JACKSON and NO BANK!"

#19 On July 10th, 1832 President Jackson said the following about the danger of a central bank....

"It is not our own citizens only who are to receive the bounty of our government. More than eight millions of the stock of this bank are held by foreigners... is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country? ... Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence... would be more formidable and dangerous than a military power of the enemy."

#20 In 1835, President Jackson completely paid off the U.S. national debt.  He is the only U.S. president that has ever been able to accomplish this.

#21 President Jackson vetoed the attempt to renew the charter of the Second Bank of the United States in 1836.

#22 Richard Lawrence attempted to shoot Andrew Jackson, but he survived.  It is alleged that Lawrence said that "wealthy people in Europe" had put him up to it.

#23 The Civil War was another opportunity for the central bankers of Europe to get their hooks into America.  In fact, it is claimed that Abraham Lincoln actually contacted Rothschild banking interests in Europe in an attempt to finance the war effort.  Reportedly, the Rothschilds were demanding very high interest rates and Lincoln balked at paying them.

#24 Instead, Lincoln pushed through the Legal Tender Act of 1862. Under that act, the U.S. government issued $449,338,902 of debt-free money.

#25 This debt-free money was known as "Greenbacks" because of the green ink that was used.

#26 The central bankers of Europe were not pleased.  The following quote appeared in the London Times in 1865....

"If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe."

#27 Abraham Lincoln was shot dead by John Wilkes Booth on April 14th, 1865.

#28 After the Civil War, all money in the United States was created by bankers buying U.S. government bonds in exchange for bank notes.

#29 James A. Garfield became president in 1881, and he was a staunch opponent of the banking powers.  In 1881 he said the following....

"Whoever controls the volume of money in our country is absolute of all industry and commerce...and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate."

#30 President Garfield was shot about two weeks later by Charles J. Guiteau on July 2nd, 1881.  He died from medical complications on September 19th, 1881.

#31 In 1906, the U.S. stock market was setting all kinds of records.  However, in March 1907 the U.S. stock market absolutely crashed.  It is alleged that elite New York bankers were responsible.

#32 In addition, in 1907 J.P. Morgan circulated rumors that a major New York bank had gone bankrupt.  This caused a massive run on the banks.  In turn, the banks started recalling all of their loans.  The panic of 1907 resulted in a congressional investigation that ended up concluding that a central bank was "necessary" so that these kinds of panics would never happen again.

#33 It took a few years, but the international bankers finally got their central bank in 1913.

#34 Congress voted on the Federal Reserve Act on December 22nd, 1913 between the hours of 1:30 AM and 4:30 AM.

#35 A significant portion of Congress was either sleeping at the time or was already at home with their families celebrating the holidays.

#36 The president that signed the law that created the Federal Reserve, Woodrow Wilson, later sounded like he very much regretted the decision when he wrote the following....

"A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men ... [W]e have come to be one of the worst ruled, one of the most completely controlled and dominated, governments in the civilized world--no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men."

#37 Between 1921 and 1929 the Federal Reserve increased the U.S. money supply by 62 percent.  This was the time known as "The Roaring 20s".

#38 In addition, highly leveraged "margin loans" became very common during this time period.

#39 In October 1929, the New York bankers started calling in these margin loans on a massive scale.  This created the initial crash that launched the Great Depression.

#40 Rather than expand the money supply in response to this crisis, the Federal Reserve really tightened it up.

#41 In fact, it was reported the the U.S. money supply contracted by eight billion dollars between 1929 and 1933.  That was an extraordinary amount of money in those days.  Over one-third of all U.S. banks went bankrupt.  The New York bankers were able to buy up other banks and all kinds of other assets for pennies on the dollar.

But are American students being taught any of this today?

Of course not.

In fact, it is a rare student that can even adequately explain what a central bank is.

We have lost so much of what is important about our history.

And you know what they say - those who forget history are doomed to repeat it.

It is absolutely critical that we educate as many Americans as possible about what is really going on in our financial system and about why we need to make some truly fundamental change.

Michael T. Snyder is an attorney, a blogger, a Christian, a writer, a speaker and an activist. He is currently the publisher of The Economic Collapse blog.

NOTICE: Michael T. Snyder, The Economic Collapse Blog are not affiliated with Freedom School.
NOTICE: If anything in this presentation is found to be in error a good faith effort will be made to correct it in timely fashion upon notification.
       Specialty Areas

All the powers in the universe seem to favor the person who has confidence.
Share/Save/Bookmark Subscribe

More & Other Information - Resource Pages
AntiShyster Magazine Attention Signing the Constitution Away
Aware Belligerent Claimant
Bonds Citizenship / nationality related items
Education Graphics
Health related  
Howard Griswold History
Jerry Kirk Jurisdiction
Law related items Lee Brobst
Lewis Mohr Luis Ewing
Money Reading Material
Reading Room Stuff
Tax matters Travel related
Truth Video
NOTICE: The information on this page was brought to you by people who paid this website forward so that someone such as you might also profit by having access to it. If you care to do so also please feel encouraged to KEEP THIS SITE GOING by making a donation today. Thank you. Make donation with PayPal - it´s fast, free and secure!

Freedom-School is not affiliated with the links on this page - unless otherwise stated.
This enterprise collectively is known and generally presented as "Freedom-School.com" - "we," "us" or "our" are other expressions of Freedom-School.com used throughout. "You" is in reference to the user / visitor.

This is the fine print that so important. Freedom School and other information served is so for educational purposes only, no liability expressed or assumed for use.
The information you obtain at this site is not, nor is it intended to be, legal advice.
Freedom School does not consent to or condone unlawful action.
Freedom School advocates and encourages one and all to adhere to, support and
defend all Law which is particularly applicable.
Information is intended for [those] men and women who are not "US CITIZENS" or "TAXPAYERS" - continued use, reference or citing indicates voluntary and informed compliance. Support is not offered.

Freedom School is a free speech site, non-commercial enterprise and operation as
there is no charge for things presented.
Freedom-School.com site relies on this memorandum and others in support of this philosophy and operation.

The noteworthy failure of [the] government or any alleged agency thereof to at any time rebut anything appearing on this website constitutes a legal admission of the fidelity and accuracy of the materials presented, which are offered in good faith and prepared as such by Freedom School and any and all [third] parties affiliated or otherwise. THIS IS AN ELECTRONIC AGREEMENT AND IS A LEGALLY BINDING CONTRACT, EQUIVALENT TO A SIGNED, WRITTEN CONTRACT BETWEEN PARTIES - If the government, or anyone else, wants to assert that any of the religious and/or political statements appearing on this website are not factual or otherwise in error, then they as the moving party have the burden of proof, and they must responsively meet that burden of proof under the Administrative Procedures Act 5 U.S.C. § 556(d) and under the due process clauses found in the Fifth, Sixth, and Seventh Amendments to the national Constitution BEFORE there will be response to any summons, questions, or unsubstantiated and slanderous accusations. Attempts at calling presented claims "frivolous" without specifically rebutting the particular claim, or claims, deemed "frivolous" will be in deed be "frivolous" and prima facie evidence that shall be used accordingly. Hey guys, if anything on this site is found to be in error a good faith effort will be made to correct it in timely fashion upon notification.

Freedom-School.com is not responsible for content of any linked website or material.
In addition, users may not use Freedom-School.com to engage in, facilitate or further unlawful conduct;
use the service in any way, or manner, that harms us or anyone connected with us or whose work is presented;
damage, disable, overburden, or impair the service (or the network(s) connected to the site)
or interfere with anyone´s use and enjoyment of the website.

All claims to be settled on the land - Austin, Travis county Texas, united States of America, using Texas Common Law.
All parts of this contract apply to the maximum extent permitted by law. A court may hold that we cannot enforce a part of this contract as written. If this happens, then you and we will replace that part with terms that most closely match the intent of the part that we cannot enforce. The rest of this contract will not change. This is the entire contract between you and us regarding your use of the service. It supersedes any prior contract or statements regarding your use of the Freedom-School.com site. If there exists some manner of thing missing we do not forfeit our right to that thing as
we reserve all rights.
We may assign, or modify, alter, change this contract, in whole or in part, at any time with or without notice to you. You may not assign this contract, or any part of it, to any other person. Any attempt by you to do so is void. You may not transfer to anyone else, either temporarily or permanently, any rights to use the Freedom-School.com site or material contained within.

GOOGLE ANALYTICS: While we do not automatically collect personally identifiable information about you when you visit the Freedom-School.com site, we do collect non-identifying and aggregate information that we use to improve our Web site design and our online presence.
Visitors to this site who have Javascript enabled are tracked using Google Analytics. The type of information that Google Analytics collects about you includes data like: the type of Web browser you are using; the type of operating system you are using; your screen resolution; the version of Flash you may be using; your network location and IP address (this can include geographic data like the country, city and state you are in); your Internet connection speed; the time of your visit to the Freedom-School.com site; the pages you visit on the Freedom-School.com site; the amount of time you spend on each page of the Freedom-School.com site and referring site information. In addition to the reports we receive using Google Analytics data, the data is shared with Google. For more information on Google´s privacy policies, visit: www.google.com/privacy_ads.html
Here is Google´s description of how Google Analytics works and how you can disable it: "Google Analytics collects information anonymously, and much like examining footprints in sand, it reports website trends without identifying individual visitors. Analytics uses its own cookie to track visitor interactions. The cookie is used to store information, such as what time the current visit occurred, whether the visitor has been to the site before, and what site referred the visitor to the web page. Google Analytics customers can view a variety of reports about how visitors interact with their website so they can improve their website and how people find it. A different cookie is used for each website, and visitors are not tracked across multiple sites. Analytics requires that all websites that use it must update their privacy policy to include a notice that fully discloses the use of Analytics. To disable this type of cookie, some browsers will indicate when a cookie is being sent and allow you to decline cookies on a case-by-case basis."

Presentation Copyright© 2003, 2014
All Rights Reserved