[PDF]The Story Of Our Money

THE STORY OF OUR MONEY


CopyricnT, 1946, sv Epwanp K. Meapor


PRINTED IN THE UNITED STATES OF AMERICA


THe Meapor Press, Boston, MASSACHUSETTS


“The subject of money is disposed of by the United States
Constitution with extreme brevity. It is as follows:


‘Article 1, Section 8, clause 5: The Congress shall have
power to coin money, regulate the value thereof and of
foreign coin.'


“This provision gives to Congress the exclusive right to do
three things. These rights are of equal importance. (1) The
right to coin money, and the denial of that right to the states
or to individuals is unquestioned; (2) The right of Congress
to regulate the value of domestic money, and (3) foreign coin,
and the denial of that right to the states or to individuals is
equally beyond question."

FREDERICK RAPHAEL BURCH


The above quotation is used by permission of Frederick Raphael
Burch, author of The True Function of Money and the False Founda-
tion of Our Banking System, Adolphus Publishing Company, Seattle,
Washington.


PREFACE


In gathering together the material presented it has
been my intention to give a brief story of our money as
it is revealed from records of unquestioned authority.
The subject being so important and covering our entire
history it was necessary to include only the most out-
standing events in monetary matters so the selected
quotations are guideposts to a great subject, and if the
general opinion is correct, one little understood. I
hope the statements chosen have told the story in gen-
cral and in a way that will interest the reader in a
neglected phase of our American History, Constitution
and Sacred Rights.

It is also hoped that any who have not realized the
necessity of understanding our monetary rights will
find the subject of such importance that full support
will be given those in and out of government who are
endeavoring to bring Government control, instead of
private manipulation, of one of the most vital and
vast powers of the United States Government.

In letting the greatest voices in American history
speak—with all the conviction their words carry—on
one of our greatest Constitutional privileges not yet
enjoyed and necessary to our democratic form of gov-
ernment, it is hoped much misinformation and misrep-
resentation of a subject, purposely befogged, will be
refuted; and it is hoped that the "legend" that money
is too complex a subject for the public to understand,
will be another “mist dispelled.” The statements
quoted should convince anyone of ordinary intelligence


7


$ PREFACE


that there is nothing mysterious about our moncy cven
though powerful interests profiting by the "legend"
prefer to have it appear abstruse. Enlightenment must
come before we can enjoy the full monetary benefits of
our Constitution.


O. C. D.


FOREWORD


In the pages which follow the author has brought
together a remarkably complete documented history
of constructive thought on the question of America's
money. Here at last is opportunity for anyone who
wished to do so to read in the original what citizens of
this nation—some of them the very great Americans,
have had to say on this central economic question. The
author does not attempt to conceal her own views nor
does she endeavor to present an "impartial" documen-
tation. She herself holds certain definite beliefs and
she states them frankly and boldly. She supplies an
abundance of corroborative testimony in support of
her position.

A much neglected underlying cause of the American
Revolution becomes clear from a reading of the early
pages; such outstanding American papers as President
James Madison’s veto of the bill to reestablish the so-
called Bank of the United States are included; the
passionate opposition of Andrew Jackson to the con-
centration of economic power in the hands of the Bank
of the United States stands forth in Jackson's own
vital words; the attempt of Abraham Lincoln to free
the nation to assert its sovereign right to create the
nation's money and the frustration of this attempt by
the iniquitous National Bank Act are laid bare. And
there is a central pattern that appears and reappears;
the constant struggle between the advocates of debt-
encumbered money and the apostles of a debt-free
medium of exchange.


IC FOREWORD


The “orthodox” will, no doubt, be shocked at what
they will read in this volume. The author's "notes"
are couched in language which is nothing if not vigor-
ous. And there are quotations which will prove pro-
foundly disturbing to defenders of the present scheme
of things. For they reveal a long succession of out-
standing Americans who have advocated the central
principle that "Congress shall coin money and regu-
late the value thereof.”

JERRY Vooruis


BIBLIOGRAPHY


Bancroft's History of the Colonization of the United States.

Benjamin Franklin's Autobiography, Unmutilated and Correct
Version.

Franklin's Political, Miscellaneous and Philosophical Writings,

The Works of Benjamin Franklin, including private, official
and Scientific Correspondence.

History of the Articles of Confederation, by Thomas B. Wait.

The Writings of James Madison, by Gaillard Hunt.

The Works of Benjamin Franklin, by J. Bigelow.

Records of the Federal Convention of 1787 (Madison's
Records).

History of the Life and Times of James Madison, Wm. Rives.

The History of the Constitution of the United States, Bancroft.

Journal of Wm. McClay, U. S. Senator, 1789-91, Edgar S.
McClay.

Writings of Jefferson, Autobiography, Correspondence, Re-
ports, Messages, Addresses and other writings. By Com-
mittee of Congress.

Hamilton’s Works, by Committee of Congress.

American Nation History Series.

Jefferson, by Saul K. Padover.

Life and Writings of Jefferson, by L. E. Forman.

Jefferson's Cyclopedia, by John P. Foley.

Reminiscences of Hamilton, by Co. James Hamilton.

Correspondence of Andrew Jackson, by Bassett.

History of Andrew Jackson, by August C. Buell.

Compilation of The Messages and Papers of the Presidents,
Richardson.


11


12 BIBLIOGRAPHY


Works of Abraham Lincoln, Arthur Brooks Lapsley.

Lincoln, Emil Ludwig.

Life of Abraham Lincoln, with Messages, Proclamations, Let-
ters, etc., by Joseph H. Barrett.

Real Money vs. False Money—Bank Credits, T. Cushing
Daniel.

Abraham Lincoln: War Years, Carl Sandburg.

Conquest of Poverty, by Gerald G. McGeer.

Congressional Report (Senate), Document No. 23, 76th Con-
gress, Ist Session. “The National Economy of Banking.”

United States Reports (Supreme Court), Wallace, 1-9
Baldwin.

Congressional Currency, by Armistead C. Gordon.

United States Congressional Globe, Rives & Bailey.

Documents of American History, by Commager.

Other People’s Money; And How Bankers Use It, Louis D.
Brandeis.

Trade Fallacies, Arthur Kitson.

The True Function of Money and the False Foundation of
Our Banking System, Frederick Raphael Burch.

The Curse of Credit, R. A. DeLynden.

Concentration of Control in American Industry, Laidler.

Quotations of Great Men from various sources.


HIGHLIGHTS OF CONTENTS


Constitutional Article on Coinage of Money—
Burch
o. AeT-—-————— S
Foreword—Jerry Voorhis
Bibliography
Contents


CoroNiAL PERIOD


First Emissions of Colonial Paper Money ....
First British Restrictions on Colonial Emissions
Deterioration of Colonial Emissions; Prosperity
Authority of Law of King over Colonial Money
Contested. soccer tee
British Repressive Measures; Long Enjoyed
Rights Abrogated ...................
Attempt to Govern Colonies by Prerogative ...
First Assembly of Colonies in Albany
Franklin's Plan for Perpetual Union ........
Article on Colonies’ Issuance of Money ......
British Board of Trade Astonished at Plan
Franklin's Early Discussions on Money ......
Franklin's Negotiations with British on Colonial
Money


Franklin's Letter to Joseph Galloway on Failure
to Effect Repeal of “Act Restraining Legal
Tender Money" 22:22


Franklin's Letter to Lord Kames on Treachery
of Designing Men in Political Power ....


13


38


41


I+ CONTENTS
INDEPENDENCE


Continental Congress ...........----..05:
Declaration of Independence ..............
Articles of Confederation ................
Early Draft of Article on Money Coinage ...
Colonial Currency to be Redeemed by New
Goernment ..........-0.0025000 20055
Final Ratified Clause on Money Issuance
Bank of North America; First Private Bank
E E E ntm eod pensent
Franklin's Letter to La Fayette and Others...


BIRTH OF OUR CONSTITUTION


James Madison's Records of Constitutional

Gornventlon. ccce ee totes
The Constitution of U. S. on the Coinage of

Our Money uer IUUD USE
Franklin's Oration on Unanimous Adoption of

Constitution ....................00..
“Done in Convention by Unanimous Consent"
Franklin's Letter to Jane Macom on Convention
Franklin Warns America on Dictatorship ....
Hamilton's Monarchistic Sympathies ........


Hamitton DEFIES THE CONSTITUTION


Bill for Bank of the U. S. Introduced by
Hamilton ............-..............
Madison Challenges Constitutionality of Bank
Hamilton's Doctrine of “Implied Powers”
Attacked en igen o tee DETA
Madison's Great Oration on Implied Powers. .


60
60


CONTENTS


Wm. McClay, U. S. Senator from Pa. (1789.
91) Records Contest .................
Washington Asks Jefferson, Sec'y of State, for
OPINION aek —
Jefferson’s Opinion on Unconstitutionality of
U: S. Bank voee een rei wee
Washington Asks Madison to Draft Veto on
Bill ———
Madison's Great Veto Message, Requested by
Washington ............. 2c cece eee eens
Washington, Undecided, Subjected to Smear
Campaign, 4m mae ur tenes
Hamilton's Monetary Policy ..............
National Bank Bill Signed by Washington,
Feb. 25, 1791


PoLiTICAL REVOLUTION OF 1800; AND
JEFFERSON DEMOGRACY


Jefferson's First Inaugural Address
Foreign Entanglements ................--.
Money as Agent by which Modern Nations
Recover. Rights 5...
Jefferson Writes Washington on Hamilton Mon-
etary Policy «sceau
Jefferson Writes His Sec’y of Treas., Gallatin,
On Bank C -—-—————— i
Jefferson on War Financing ...............
Jefferson to Thos. Cooper on Government Issue
öf Money dm E
Jefferson to Logan on "Money Corporations
Challenge Gov." ..........lseeeeesee
Jefferson to Stuart on Monied Aristocracy ...
Jefferson to Baptiste on Issuing Treasury Notes
Jefferson to Crawford on National Circulating
Medium. iiss cae eg Armin


16 CONTENTS


Jefferson to Stewart on "Copying England" on

Banking Policies ...........0 00 eee eee
Jefferson on British Foreign Policies ........
Jeflerson to Adams on Bank Deflation .......
Jefferson on Panic by Reduction of Meduim

(INElSOR) ecce ee SR s
Jefferson to Future Generations ............


SECOND EFFORT TO SUPPRESS BANK POWER


Madison Becomes President .....-......---
Congress Refuses to Recharter Bank .......
President Madison's Veto Message on Bank Bill
War of 1812; Bank Bill Pressed on Congress
Bank Bill Became Law April 10, 1816 ......


Tuirp FIGHT AGAINST BANK POWER


Jackson Fights Renewing Bank Charter ......
Andrew Jackson's Opinion on Bank Bill .....
Jackson's Sec'y of Treas. Opposes Him ......
Jackson’s Paper to Cabinet on Bank ........
Jackson’s Difficulty to Secure Support from

Cabinet, s.cardieos eter ets
Jackson's Letter to Hugh L. White on Need

Of Help: canoer E reddis
Jackson’s Letter to Randolph on Bank Position
Jackson’s Letter to Rev. Hardy M. Cryer on


Secessionists ........... 000000 cece
Attorney General Taney Supports Jackson on
Bank. ettet eats cde ure vung
Jackson's Great Veto Message on Bank
Recharter


CONTENTS


17


GENERAL Monetary PoLicizs UNDER LINCOLN


Elbridge Spaulding Initiates "Greenback" Bill
Bill Authorized Legal Tender U. S. Notes ...
“Indispensably Necessary" Chase Declared ...
"Landmark" in American Finance—Hosmer . .
Lincoln's Message to Congress, Dec. 1, 1862 ..
Lincoln’s Letter to Dick Taylor
Lincoln’s Message on Labor ..............
Lincoln's Proclamation Sept. 24, 1862 ......
Thaddeus Stevens, Great Commoner, Supports
Lincoln enesis re ty andar
Bankers Organize Against Lincoln
Lincoln Faces Wrath of Bankers ...........
Lincoln Calls at U. S. Treasury for Advice ...
Analysis of Lincoln's Monetary Policy ......
Bankers Plan to Control Issuance of Our Money
Bonds to Replace U. S. Currency ...........
War and Usury. «coe seme
Civil War Debt to be Base of Bank Money ...
Issue Between Lincoln and Bankers, Clearcut
Bankers Plan to Maintain “Scarce Money” and
Necessity of Borrowing ...............
Thaddeus Stevens Warns House of Senate
Amendments .............. esses
Elbridge Spaulding Debates in House on Senate
Amendments ............... issues
Stevens Closes Debate with Foreboding ......
Lincoln's Public Record on Private Bank Notes
Lincoln's "Veto" Message on Bank Currency . .
Lincoln Quotes the Bible to the Bankers


ABSTRACT OF LincoLn’s MONETARY POLICY


Congressional Report on Monetary Science—
Owens


112
112
113
114
116
115
117
117


118
119
120
120
122
123
125
126
126
126


127
128


135


18 CONTENTS


Lincoln's Monetary Policy—McGeer ........
Lincoln Forerunner of Modern Economic De-
mocracy & Finance ...............0..
Daniel Webster on Bank Paper ............
Lincoln on Government Owned National Banks
Lincoln's Tribute to Jefferson .............
Constitution a Declaration of War to Lincoln,
against any Tyranny—Military, Political,
or Monopolistic ................-.00.
Lincoln Last Political Leader to Hold that View
America Takes Wrong Road after Lincoln's
Assassination (uus es aas tese
Lincoln Recognized Money Monopoly as Most
Dangetols «meet Simus eternum
Lincoln Most Practical and Effective of Money
Reformers ...2..- 2: ege mend
Lincoln knew Sufficient Issues of Money would
Increase Production and Distribution of
Goods: — ia
Universal Destitution Midst Abundance the
Result ........... ICE
Money Power Establishes form of Slavery ...
Lincoln Thunders Defiance at Bankers ......


Tue Bankers’ “NATIONAL BANK Acrt”


Secretary Chase Urged Act ...............
Some Features of the Act .................
Act Rushed Through Congress ............
Banking Interests in Saddle and Constitutional

Government Threatened by Concentrated

urn MEE
Beginning of Darkest Page in U. S. History ..
Bankers’ Method of Controlling Legislation ..
Bankers’ Association Letter to Banks .......


CONTENTS 19


LEGAL TENDER Cases BEFORE U. S. SUPREME COURT
Legal Tender Refused in Payment of Loans .. 152


Ruling of Supreme Court Reversed .......... 153

Legal Tenders Equal to Gold in Value........ 153

Attorney General's Opinion in Legal Tender
(UTI MERC" 155


GOVERNMENT Moves TO RETIRE U. S. TREASURY
Notes AND FLoAT BANK NOTE CIRCULATION


Resolution to Retire ‘“‘Greenbacks’? Passed


Under Suspension of Rules ............ 156
Primary Object of National Bank Act was to
Float Loans ....n mee 157
Also to Provide a National Currency under Bank
Control |. oet ia 157
Congressional Record on Moves to Reduce
Money Supply i... vy UIS 158


SPECIE PAYMENT BILLs INTRODUCED


Redemption of U.S. Teasury Notes in Gold 158
Debates in House of Representatives on Resump-


tion of Specie Payments ............. 159
A (typical) Specie Payments Bill Introduced .. 160
Townsend on Specie Payments, etc. .......... 164
Highsounding ‘‘Pontificial Obfuscations" of

Decelvers: usns emere oed odere ea iea 167


FOREIGN AND Domestic DEBT MONEY ADVOCATES
MAKE WAR ON THE AMERICAN STANDARD
SILVER DOLLAR
John Sherman Introduces Bill against Silver .. 169


20 CONTENTS


Senator Morgan Blocks First Bill to Demone-


tize SIIVET oot hes re e sees 169
Foreign Influence over Congress on Monetary
Legislatiom«sr: 52e disse ttd oce 171


Congressional Record, 4/1872, on British Ad-
vistor to Congress on Demonetization of
SIIVEE | morte cuc tks Soto aee 171

Affidavit on Bribery in Congress ........... 171

Bankers’ Magazine on British Money ($500,-
000) Paid Congress to Effect Demonctiza-


tion. OF SVEP soe pee E 172
Affidavits in Re Subterfuge in Silver Legislation 172
Demonetization of Silver Accomplished ..... 174


BANKING INTERESTS COERCE CONGRESS
Panic Circular of Organized Money Power


Sent to Banks: o vemosare ees 177
Government Loses Power over Money; Banks

Tighten: Control... Re 178
Bankers Inaugurate Policy of Refusing Loans

even on Best Security to Create Panic ... 178
Senator Hill, N. Y., Exposes Bankers “Loan

POlI6y «curans oio sonat ass die ets 178
Banks Move to Discredit Silver and Silver

Centincatés T P— € 179
Panicvand Distress iuvene eet mense 179


AMERICAN BANKERS’ ASSOCIATION CONTROLS
ELECTION OF PRESIDENT, 1892


People Deceived as to Campaign Issues ...... 181
Solomon, International Banker, makes Confes-
sionin: FOMM «opo pete deseos 181


President Cleveland Strengthens Bankers’
jore m 182


CONTENTS 21


People Frightened and Confused by Bankers'
Propaganda against Silver; Congress
Yields to Bank Pressure ............. 182

"Panic Circular" Circulated by Banks Exposes


"Their Crime 12 eoatodutie stores 183
GovERNMENT Moves To ConverT Money
INTO DEBT

$350,000 of U. S. Money is Made Into a Debt
—First Time ............ eee eee 183
Grover Cleveland's Weak Position on Panic
and Public Distrust .................. 183


Progressive Party Platform on Money, 1912.. 184
Progressive Party Platform on Money, 1924.. 185
Pujo Committee's Investigation into Our Cur-


tency; 1912: c Love ih comen eta 186
"Greatest Monopoly is Money Monopoly"—
Woodrow Wilson ............-...055 186
Findings of Pujo Committee .............. 187
Statement by Justice Holmes .............. 188
Statement by Justice Brandeis .............. 189
Aldrich Banking and Currency Scheme Centers
Control of Money Power in Banks ...... 189
Representative Lindbergh Contributes to Con-
stitutional Money ............. sess 189
Woodrow Wilson on Need of Controlling Mon-
opoly if we are to Maintain Self Govern-
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