Chapter 3
the push for centralized currency
It All Started With Hamilton
We have discussed the administrative rule of the presidents for the years between the founding of the nation and the year 1860. With that discussion comes the topic of banking and influence of big money on the national system, consequently playing a major part in determining the record of history itself. The issue of presidency and influence of big money via government and corporate persuasions are unfortunately, inseparable. What this section will now discuss is the specific money trail itself, since we have the rising effort of banks, corporations and industrialist intention to ruthlessly dominate via their conspiring government collusion, all presently within the grasp of our understanding and application to the proper time frames in US history.
The intent of this section is to clarify the influence of big money on US policy over the years for the purpose of demonstrating it's influence on the events and outcome of US history itself. While it is not the intent of this work to discuss this same policy of big money working through the corporate industrialization of the world to dominate for the purpose of extortion and indenture, it is very relevant to this work for the subject to have at least a casual reference made to the possibility, since without a doubt, world banking and it's collusion are definitely in the process of gaining an ever tightening grip on the individual citizens of earth {292}. It is also the contention of this author to predict that one day in the looming future, American national, economic and even the religious policy, shall be directly influenced {293}by some sort of united world financial and political policy among nations {294}, if not absorbed outright by it.
As always, this author shall give referential proof to substantiate his claims of such as his avowed duty to his readers, but in return for that proof, he requests that his readers bear in mind that any remarks of such are only made in casual passing for the purpose of giving insight in to the questions of why an event in history occurred as it did. After all, words spoken by individual men alone are worthless, except in the purpose of exposing to the people of earth what it is that these powerful men of leadership truly stand for. What this work is fully committed to is closely examining what specific actions were taken by these men 315, since it is the valid hard truth in our examination that we endeavor to reveal.
To effectively reach this end, we must begin at the starting line, as always. As we have discussed earlier, in the beginning was this long history of big money and it's influence over government, and that influence never waned, no matter how many changes came in government, battles between competing nations or revolts of justly motivated citizenry seeking liberty. This influence simply continued to grow...demand rigid conformity...and dominate to control in enough ways to write a volume in and of itself.
When the nation of The United States began, there was the heavy, near mythical influence of British gentry aristocracy in the family of George Washington. Washington himself simply inherited his immense wealth, investing in landed estates, endeavoring to produce in order that he could sell in market, thereby becoming even wealthier as well as providing services up to and including the lending of money to in-coming surrounding settlers. There was absolutely no better way for an individual to vastly increase wealth, even ascending into a type of virtual aristocratic elite, than by owning a plantation for the purpose of selling produce, raw resources and finished product, in addition to offering services back to the surrounding community. The Constitution would later on be established to insure the individual's right to thrive in absence of regulatory repression designed to the benefit of any opposing collusion.
For example, it has been said that the poorest Charleston rice plantation generated eight times more wealth that the wealthiest Boston mercantile did in the same period of time. Produce to the British landed gentry took the place of gold ( fast wealth without having to establish a market), so desired by the Spanish on the American mainland. There were some exceptions to this rule in other places, such as the island of Hispaniola {295}, for example, but the island of Hispaniola in and of itself took the place of gold when the ease of growing cane was discovered, converting the juice into sugar and molasses, fermenting the molasses and distilling it into rum. The rum was to be sold both sea side and in the ports of Europe for cash, then transported again to west Africa in exchange for slaves, who were then transported back to Hispaniola and eventually sold into the plantations, factories and iron yards of America. In other words, the situation of Hispaniola was unusual for North America, in that the wealth could come back inside from a number of different angles, therefore compounding on itself for the Spanish. Most importantly to the Spanish, the engine that produced the wealth could be constructed relatively quickly.
The British, on the other hand, saw the long term advantage of developing productive micro-engines on the American mainland, for the purpose of crafting products so desired by the British people and those throughout Europe, hoping to eventually reach those markets of Asia. Some of their exports from this time period are interesting to make note of, but the point in all of this talk is this:
The influence of big money and corporation {296} was already well established in the United States when it became an independent nation {297} {298}. Washington had been born into and raised by the hand of that wealth 320. There should have been no question as to whom it was that his allegiances were bound to. The winning bet could have easily been made by any persons who possessed the wisdom to observe..and the fortitude to question {299}, that Washington’s allegiances were bound to remain with the unchecked rule of the banking aristocratic elites, it's corporate and inside government collusion, for such had been the very hand that had fed him all of his natural life. Washington himself proved this claim of his true allegiances by making a single tainted signature, when the final say was his {300}. Now the forces of big money and their collusion of corporate backed government could rule with a new, legitimized impunity and a hard fist of wrought iron to impose it's way in what amounted to an outright rape of the US economic system and it's plebeian citizenry.
Lets observe a direct quote from the source notated in 222, as to specifically what the opposition had to say about that they disagreed with concerning the push by government for centralization of banking. This part of the lesson is very critical, if we are to forbear the twisted propaganda of the official history that obstructs our view of the truth in regard to big business and it's influence, in favor of facts that lead us into it's beginning.....and forward onward into it's certain end:
Jefferson and Madison also opposed a second of the three proposals of Hamilton: establishing an official government Mint. They believed this centralization of power away from local banks was dangerous to a sound monetary system and was mostly to the benefit of business interests in the commercial areas of the nation, not landed individual interests, arguing that the right to own property would be infringed by these proposals. Furthermore, they contended that the creation of such a bank violated the Constitution, which specifically stated that congress was to regulate weights and measures and issue coined money (rather than mint and bills of credit).
It may also be important for this author to make note that the words “North” and “Southern” have been effectively removed from inside this record in most instances, since both words standing inside the second hand recorded historical record in the notated document are a part of the divisive appeal to emotion made by the author of that particular work, effectively demonstrating to readers here where his alliances went; and as have been here notated, they were most definitely not with the rank and file citizenry. These types of emotionally charged words are only a part of the device to deceive by distracting the reader from the truth of events, only serving to blind him via the power to incite found inside the very words themselves. As time transpired, these divisive appeals made to raw plebeian emotion would also serve as negative labels into which to assign critics of the message who dare to make a hard stand for the honest truth.
Understanding completely the opposition of this centralized bank being established in absence of checks and balances, is of an utmost in the level of importance, for it is with that complete understanding that the truth shall reveal itself when taking note of future historical events and their relationship to the power of corporation, government and their rule via force of wealth in the people's need thereof. Has it not been said long before that the debtor is slave to his lender {301}?
If the value of money can be manipulated, then the wages of workers and the profit of producers dramatically reduced, thereby mortgage payments cannot be effectively made leading to foreclosure. The fact of foreclosure and the banks receiving the property needing to sell it quickly as possible, even further reduces the purchase value of the property along with the shear number of properties available that saturate the system at large; thus corporations with inside connections to know the real score in what was occurring who possesses unlimited amounts of cash, can now step in to purchase properties once privately owned en-mass. The value of the money may then be raised as the demand increases, allowing government collusion to purchase huge estates, which they sell back into the market before the price reaches it's maximum level in height, allowing those with the know-on-the inside to enrich themselves at the expense of the outside overwhelming majority who don't.
If the system possessed checks on that currency via individual states possessing their own currency, based on what ever it was that their most valuable product was, then any rise or fall would be confined into those single specific areas. It is well recognized by this author, that collusion within individual states and the Federal government could have occurred in the same manner, but this collusion would have been very vulnerable to scrutiny from the other surrounding states and not been endemic to the entire nation at large. Such is what was meant by having checks and balances on any system of currency and economy.
The system would not have been perfect with these checks, but at least the individual people could have demanded better from those who ran the system at the top end and simply not just been forced to bow at the feet of what amounted to an economic tyranny, with the intent to indenture {302} {303} {304}. An even more interesting notation in reminder here is that good old George Washington saw things differently {305}, but yet, we are continually led to believe that he was a man of the common people. His actions in his pause to decide and his signature that followed {306}tell us much more here in the present than even his own words ever could if he were standing here to speak them, let alone any future historical recorder's prejudiced distracting notations bearing an intent to transpose conviction for crimes committed against the rank and file citizens of America upon the rank and file of earlier generations or their leadership opposed to the rapacious narcissistic actions of the elitist.
Follow The Money Trail
Once we fully understand these concerns of the opposition, we may then use them as an analytical basis with which to extract the truth from the official, but perverted historical record. In other words, just like in the story, The Wizard Of Oz, we shall follow the yellow bricked road or in our case, follow the money trail to the see where the truth lies that it will carry us to. What we are destined to find out is that while half of our forefathers sought to create a timeless paradise utopia for the liberated individual to pursue his heart's desires with the limitations of nature being his only repression, the evil rapacious villain who was already present and in power, assumed the throne inside the kings castle itself, masquerading to stand for liberty of the people; when in reality, he stood only for his own enrichment and that of his conspiring elites, where he still stands even unto this very day, but on a much greater throne backed by a brute force of power and arms that any rule before him could have only dreamed of. The marriage between government, corporation and currency began in the United States with the establishment of The First Bank Of The United States {307}, morphed from the Bank Of North America established barely ten years earlier. This bank was championed by none other than Alexander Hamilton {308}. To understand the bank one must first know and understand who Hamilton was. Hamilton was the first secretary of the treasury {309} and an avid believer in Federalist policy or government and capitol functioning in complete absence of check and balances. As readers may recall, the Treasury was the fund or account into which all government money flowed out of and deposits made to the government went into. This account could be accessed by only a chosen few. The others have no idea as to the amounts inside the account, how much flows out or how much flows in to it, let alone from whom it originated with.
In short, Hamilton believed that a national bank (centralized currency) was necessary to stabilize and improve the nations credit and improve the handling of financial business by the United States government under the Constitution. There is no doubt that the bank was beneficial for the health of the nation, but not without checks and balances to prevent corruption by manipulating the currency values to the benefit of an elitist few.
In fact, there were four major financial innovations proposed and supported by Hamilton. These innovations include: Have the Federal government assume the States Revolutionary war debts. Pay off those war debts. Raise money for the new government. Establish a national bank and create a common currency.
The obvious problems in these “noble” aspirations are primarily that the states will then become indebted to the Federal government, subject to tax in amounts dictated by the Federal government and that the states would be subjected to a currency that can be manipulated for the benefit of an elitist few at the expense of the citizenry.
It is very important to note that the primary function of the bank would be as credit issued to government and private interests for internal improvements and “other” economic development per Hamilton’s system of public credit. Close examination in this system may readily detect the potential for abuse, if the system were allowed to function in absence of checks on the potential for corruption. The phrase “other economic development” is a broad term subject to interpretation, but only by the same government officials intending to make use of the funds, if no check existed to regulate banking activity.
We clarify what was meant by the term “public funds {310}”, by placing them into their proper context as they relate back to the people at that time. The United States government massed huge war debts from financing the Revolutionary War against Great Britain. This money was borrowed from the French {311} to establish the Bank Of North America {312}, then sold back to the citizens in the form of stock / IOU notes to pass for currency, for the purpose of financing the war effort. The government at that time lacked the means to finance this debt through taxation or any sort of duty tax on imports. As a temporary measure the Continental Congress resorted to printing money and bills of credit, causing ramped depreciation. In other words, the economy suffered a collapse of currency. To avoid bankruptcy congress eliminated 195 million dollars of it's 200 million dollar debt by fiat {313}, thus the currency, called a Continental, was rendered near worthless.
During the years prior to the war the national legislature cast it's debts off onto the individual states. When the states failed to meet the required quota amounts for war material, the patriot army began confiscating supplies from farmers and traders, essentially giving them IOU’s of an unknown value amount. By the end of the war the state debt was over 90 million dollars still left owing.
The solution to the problem as determined by congress, was to service the debt via tonnage duties and tariff taxes. These fees would cover government operating expenses and the principle on foreign and domestic debt. Resulting from this need of servicing the debt, on July 4th 1789, a tariff act was passed {314}. An interesting note is that 40 million dollars of the domestic debts owned were to individual soldiers of patriot army, for services rendered, who had been paid in IOU’s of undetermined value/worthless (?), as readers should recall.
There existed schemes that were termed “discrimination” which applied to solders who had relinquished their notes of IOU to speculators at reduced rates. These discrimination's were called for to be paid in full, at full amount to the original holders and reimbursing the current holder for it's purchase price. The problem for the Federal government was that the combined pay outs would exceed the original value of the note. James Madison proposed that the current holder be reimbursed at full original value, meaning that he had purchased the note at a reduced rate from the speculator. The remaining balance would go back to the original holder.
Hamilton rejected this payment plan of Madison, stating that payment would go at full value to the current holder of the note/the speculating investor, with due interest! The justification for this total repayment back to the current holder is that doing so, in his own words, would “create a favorable climate for investment in government securities, transforming public debt into a source of capitol (euphemistic justification).” Rather than seek to eliminate the national debt, Hamilton sought to trade government securities on par with currency notes as legal tender, assuming the same value as currency. The problem in this approach is that the public debt would continue to rise, eventually demanding to be repaid in full. Who was going to pay it? Pay close attention as to who the speculators were to know specifically whom it was that Hamilton's true concerns were for, and it was most definitely not for the rank and file who would lose wages and life time investment revenue.
Wealthy speculators who no doubt possessed inside connections, were alerted to the fact that these notes purchased below value would be redeemed at face value, rushed into to make purchase for both profit and investment. More than three quarters of these notes had been purchased at ten cents on the dollar, but selling at 20 to 30 cents before Hamilton's advertisement effort announcing them {315}. Here lies the strong suggestion of corporate connections benefiting from secret government relationships, but there are more suggestions in slight of hand here.
When Hamilton's report finally came out, speculators from Philadelphia and New York (enters of national banking) came into Southern ports by the ship load to buy up these securities/ IOU notes before that section of the country became aware of the plan {316}. The value of the notes continued to fall for months following Hamilton's report, leading to the conviction that congress would halt Hamilton’s proposal of redemption. James Madison was convinced that Hamilton's program of redemption was a cruel scheme to defraud the Revolutionary war veterans out of wages owed to them and a handout to wealthy speculators, mostly rich corporatist, many of whom were members of congress themselves! Madison's proposal of discrimination as a sort of check designed to correct these congressional sanctioned abuses of currency, was frowned upon by congress, who were obviously seeking to benefit. Hamilton argued that concentrating the wealth into fewer hands would strengthen commercial investment and encourage constructive economic growth, enlarging government credit available to business enterprises {317}. Allowing access to government funds in absence of checks, would also open the door for more corruption at the expense of former patriot soldiers and individual citizens who lost property to finance State tax burdens to the Federal government, but were paid in worthless IOU bank notes. An interesting notation here is that congress rejected Madison's call for a check on the possibility of corruption in purchase of the notes 36 to 13. Already the influences of big money, the well connected corporate aristocracy and it's collusion in government were stomping over the sweat and blood sacrifices of the average American citizen.
The First Sin Against Our Vets
In other words, to narrow this topic down into simple words and to summarize at this point; back before the Revolutionary War even began, the Continental Congress went into debt with the French government to finance the war effort. To pay that debt, they they flooded the market with notes not backed in gold or silver, hoping to pay it off later when the situation improved after the war. During the war as well, the soldiers who fought on the ground, risking limb and life on the alter of Liberty as well as enduring the deprivations of war in general, were paid via the same notes of highly questionable value, yet carrying the assumption of being worth the face value amount stated.
When the war ended, the debt was shifted back onto the states and when they could not pay, the same soldiers who fought, went out onto the farms and in the tradesmen shops confiscating product, tools of production and raw materials in the same value as the notes, carefully giving the individual more notes or IOU’s promising repayment in equal value golden coin/specie. So the situation on the ground was that all of these individual citizen soldiers and ex-soldiers, farmers and tradesmen, shop keepers and the like, are sitting around with heaps of these worthless government IOU’s {bank notes/currency} in boxes, hoping and needing to exchange them for golden coin of the face value stated.
Eventually wealthy speculators, whom the author of this text highly suspects {without question} had collusion with these government officials, if not working directly in the name of land companies who had collusion, development companies or some sort of real-estate contractor {high level banker}, go out and offers these individuals 10 to 22 cent in golden coin on every dollar worth of notes. Obviously these people needing to pay mortgage payments and the like, dumped the notes just to get something of value in exchange for the worthless note itself. Later on congress puts the report out announcing this investment opportunity to the masses, but before it gets out completely abroad in the land, ship loads of these speculators go into the ports of the South for the purpose of buying up thousands of IOU bank notes at values even less {pennies} on the dollar.
Congress finally announces that it is going to redeem the present holder of these notes at full face value to the speculative investor, with the amount that was remaining as being owned to the original holder as his purchase price, which as we discussed earlier, equaled 10 to 20 cents in golden coin. In effect what the situation here was, is that all of these ex-Revolutionary War vets {and citizens having property confiscated for state tax debt}, for all practical purposes, lost the wages owed to them by their own government for their services rendered during the Revolutionary War. In addition to that, many tradesmen and farmers were scammed out of payment for the product that had been confiscated from them because of taxes owed by their residing home states to the Federal government. In many cases, the very speculators who were purchasing these notes by the thousands were members of the national congress themselves, but what less should we expect?
Is not such a great fraud of the general public from the corrupted collusion not what Jefferson warned congress about and sought to prevent by demanding checks and balances to prevent an abuse of the system? The influence of centralized British aristocratic {318}