Archive for September 2013

MONETARY HISTORY CALENDAR September 2 – September 13

09/16/2013

 

SEPTEMBER 2

1877 – BIRTH OF FREDERICK SODDY, NOBEL PRIZE RECIPIENT (CHEMISTRY) AND MONETARY REFORM AUTHOR
“There is nothing left now for us but to get ever deeper and deeper into debt to the banking system in order to provide the increasing amounts of money the nation requires for its expansion and growth. Our money system is nothing better than a confidence trick.”

2013 – LABOR DAY
The enactment of the National Emergency Employment Defense (NEED) Act, HR 2990 in the last Congress, would create 7 million jobs. The jobs would be to repair our nation’s infrastructure. The debt would not need to be raised. Taxes would not need to be imposed. Funding from any other public program would not have to be shifted. Public creation and circulation of U.S. money is all that would be required. Just as the colonists did when fighting the British. Just as President Lincoln did during the 1860. Just as economists proposed under the “Chicago Plan” during the 1930’s to President Roosevelt to move the nation out of the Great Depression. For more information on the NEED Act, go to www.monetary.org

SEPTEMBER 6

1943- DEATH OF RICHARD MCKENNA, FORMER PRESIDENT, MIDLANDS BANK OF ENGLAND
“I am afraid that the ordinary citizen will not like to be told that the banks can and do create and destroy money.  And they who control the credit of a nation direct the policy of governments, and hold in the hollow of their hands the destiny of the people.”  (From a 1924 speech)

SEPTEMBER 8

1999 – DEATH OF HERBERT STEIN, FORMER CHAIRMAN OF PRESIDENT’S COUNCIL OF ECONOMIC ADVISORS
“If something cannot go on forever, it will stop.”
[Our current debt-based money system, run by and for banking corporations, cannot go on forever as it has created a virtual exponential growth in debt. This is unsustainable. It will eventually fundamentally stop/crash/implode. The question is will we be ready to replace it with a more democratic system in which the people and our government issue and circulate our money, as authorized in the US Constitution?]

SEPTEMBER 9

1890 – BIRTH OF MARRINER S. ECCLES, FORMER CHAIRMAN AND GOVERNOR OF THE FEDERAL RESERVE SYSTEM
“That is what our money system is. If there were no debts in our money system, there wouldn’t be any money.”

SEPTEMBER 12

1857 —  STEAMSHIP CENTRAL AMERICA SINKS
The steamship had a million dollars in gold and silver onboard. It caused the Ohio Life and Trust Company to fail and sparked the Financial Panic of 1857 since money was backed by gold. Under such a metal-based money system, the less gold and silver, the fewer dollars in circulation. The fewer dollars, the less economic transactions occur, resulting in less production and more unemployment.

1880 — BIRTH OF H.L. MENCKEN, AMERICAN JOURNALIST
“The whole aim of practical politics is to keep the populace in a continual state of alarm (and hence clamorous to be led to safety) by menacing them with an endless series of hobgolins, all of them imaginary.”
[The alarm of We the People issuing our own money is one such example. “There is no way to check elected officials from created endless money for any number of scandalous ventures,” is often the cry. Yet, a system can be created that, in fact, only creates money that is needed for legitimate purposes to meet basic economic and social needs of our society.]

SEPTEMBER 13

1785  – PENNSYLVANIA REPEALS THE CHARTER OF THE BANK OF NORTH AMERICA
This was the nation’s first private commercial bank, chartered by Congress under the Articles of Confederation. The Articles gave Congress the power to “emit bills of credit” — to create money. By a single vote, Congress voted to transfer their authority to issue money to the Bank, thus, become a quasi central bank. The Pennsylvania legislature repealed the Bank’s charter, which was significant since it primarily operated in just three states. Why did Congress willingly give up their money power in the first place? The public argument was that the business of finance could not be ably conduced by a public body (Congress) — only by a small number of private financiers.

1873 – NATION’S BIGGEST BANK, JAY COOKE & COMPANY, BECOMES EFFECTIVELY INSOLVENT
Congress has passed the Coinage Act earlier in the year, which ended the minting of silver dollars. US money system was, thus, backed only by gold. The effect was similar to other instances in US history when money was backed by gold — a depression ensued, prices feel, unemployment increased and major banks failed as there wasn’t enough gold to back the money needed to fuel the growing economy. Jay Cooke & Company was the largest bank to fail due to this policy of gold-backed money.