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

Friday, November 12, 2010 7:21
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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 master 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 changes.

So what is your opinion about central banks?  Feel free to leave your thoughts in the comments section below….

Read more at The End of the American Dream



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Total 25 comments
  • Anonymous

    I think worldwide people are sick of these douchebags going around ruining peoples lives… Not many more places for them to run now a days….

    We ARE coming for you and YOU WILL BE PROSECUTED!

  • Anonymous

    A ROPE and a LAMPPOST for them and their Political supporters.

  • Anonymous

    from http://www.reddit.com/r/Economics/comments/e50t3/41_facts_about_the_history_of_central_banks_in/c15colk

    This quote is a hoax:
    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.”
    Franklin never said this at all. It is comes from a hoax that Congressman Binderup (of the Constitutional Money League) circulated in the 1930s. Also, the word is “scrip”, not “script”, and it wasn’t called “colonial scrip” until many decades later.
    This item is inaccurate:
    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.
    The act prevented the issuing of legal tender money, that is, money that a creditor was forced to accept. British merchants didn’t like being forced to accept money that was worth much less when they got paid then when they originally extended credit.
    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.”
    Those words are not in his autobiography. It’s again from the Binderup Hoax. You can search Franklin’s Autobiography at Project Gutenberg or Google Books and you can search everything Franklin wrote t the Franklin Papers web site.
    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.
    I’ve never found evidence that Lawrence said that. He did claim that he was the rightful heir to the crown of England and that all the powers of Europe would rally to his aid. He believed that Jackson had been after him since Lawrence was a boy and that he was conspiring with Lawrence’s brother-in-law. And other paranoid ravings.
    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.”
    This is an absurd hoax from the 1890s. Just read it. It’s preposterous!
    27 Abraham Lincoln was shot dead by John Wilkes Booth on April 14th, 1865.
    Which, of course, had nothing to do with central banks.
    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 master 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.”
    This one is rich! Garfield was a hard-money Republican; he was a friend of the banks. The first sentence of that quote is based on something Garfield said in Congress in 1880. He was arguing against Congress creating money. I haven’t found any evidence of the second sentence before the 1990s.
    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.
    Once again, this had nothing to do with banks.
    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.
    The Federal Reserve Act was carefully considered over months (and other reforms had been considered over the previous few years). Some congressmen had left early, but by far most were there to vote. The bill passed the house overwhelmingly, 298-60. It passed the Senate 43-25. If the absent Senators had voted, there would have been at least 54 for votes for passage.
    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 ave 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.”
    Wilson never regretted creating the Federal Reserve. These quotes are from 1912, when Wilson running for President. He was arguing for the Federal Reserve.

  • R. Holbrook

    To the Anonymous Debunker:

    What the F!@#K is your point?…That private central banks are good or that they are needed? Central Banks may be needed they don’t need to be private..

    The problem is usary because the people who collect interest perform no work..That’s why the Catholics had laws against excess usary or usary in general..They thought it was a sin..because you don’t produce anything..

    That’s why the US is in a jam..Our financial industry is a large part of our GDP (Gee how’d that happen CONgress)and they don’t produce anything except indebtedness..

    Next time leave your name if you have any balls.

  • Marcia

    His point is that this article is full of fallacies and half-truths. The non-problem is that people who collect interest do so because they are lending their money to other people so that they can purchase things, not because they don’t work.

    Our financial industry is a large part of our GDP because of Capitalism, not anything congress has done. The financial industry does not produce debt, the people who utilize the financial industry that have no way to pay back loans produce debt.

    TLDR; Quit being a dick just because the article was shown to be full of shit.

  • Anonymous

    R. Holbrook, you have been owned.

  • Anonymous

    WOW! And I thought everything was just ducky. Silly me, I thought these bankers and the politicians they bought for pennies should all be in jail. We are idiots, and we have squandered a country…several countries actually. John

  • Tom Dennen, the paranoid historian

    There’a thin line going through this whole rather weak debate, whether the quotes are correct or not, a line drawn in red ink: Debt.
    For clarification why your house is now owned by a bank, read Ellen Brown’s Web of Debt and / or Tom Dennen’s ‘Grand Theft, Planet’.

  • Richard William Posner

    The article is completely accurate as are the quotes.
    The “anonymous” who says otherwise is a bald-faced liar. That’s usually what trolls do.

  • terry the censor

    @R. Holbrook

    > What the F!@#K is your point?

    Apparently, facts don’t matter to you.

    This article shows, for the millionth time, that haters of the Fed can only support their arguments with lies.

    There are many legit criticisms to be made of the Fed — even Greenspan admits his catastrophic errors — but these criticisms wouldn’t demonstrate that the Fed needs to be shut down, so Fed conspiracy theorists have no interest in them.

  • sk1951

    Libiral lib turds at it again. The feds are blood sucking brits.

  • AnonCoward

    So, in the article that’s titled 41 facts not taught in schools, we have a number of facts that are actually taught in schools, like 2, 27, etc
    We have a large number number that have been shown to be false (3, 4, 5, etc). And we have a number that aren’t taught, but no one cares about (9, 12, etc). I get the feeling there’s not one honest fact in this list.

    I’m just wondering why we should listen to someone that says “Our Children Are No Longer Taught In School” that “Abraham Lincoln was shot dead by John Wilkes Booth on April 14th, 1865.”

  • Zugzwang

    Fed conspiracy theorists are nothing more than anti-Semites and Nazis. Hitler was insanely jealous of the Jewish control of finance and banking and thus convinced Germany to deport all the Jews. Now white Christian America sees the immense wealth accumulated by us and want nothing more than to send us to concentration camps again. This is why we are ramping up security everywhere in the U.S., not for terrorists…for you and for our safety as a people. Look, you must understand that life is survival, and in this world of scarce resources, only the strongest will survive. Human survival no longer requires muscles, courage, hard work, or hunting prowess. Success and survival now requires brains. We Jews have statistically the highest IQs in the world. So my advise for your survival, join us or perish. If you have a child with a Jew, he/she will be born with the a higher innate intelligence to survive. Join or die, white America.

  • Anonymous

    Did John Wilkes Booth really kill Abraham Lincoln? If you want to say WTF, no problem, just have some fun reading an alternate view. – http://www.illuminati-news.com/mary-todd-killed-lincoln.htm

    To Anonymous that said, “Fed conspiracy theorists are nothing more than anti-Semites and Nazis.” Richard Posner is right, by you cowardly using ‘anti-Semites and Nazis’ you show yourself to be a troll. There is a lot of truth out there to be found by researching both sides of any issue of history. When evidence always brings you to the same conclusion, that converts to Judaism from the East European Khazar’s who had mixed their blood with the Asian Mongrel groups that were invading the land are the same ones that have caused all of the troubles now and centuries past, who today call themselves, Jews, why would joining with you give anyone survival?

    Helen Thomas was right when she said they should go back to where they came from. Her words are still true today. The only problem with that is that the other countries most likely don’t want them coming back.

    “Formerly an anti-Semite was somebody who hated Jews because they were Jews and had a Jewish soul. But nowadays an anti-Semite is somebody who is hated by Jews.” Dr Hajo Meyer – survived 10 months at Auschwitz.

    ‘Deconstructing six million holo-myths’, by Dr. Harrell Rhome.

    James

  • Anonymous

    Did John Wilkes Booth really kill Abraham Lincoln? If you want to say WTF, no problem, just have some fun reading an alternate view. – http://www.illuminati-news.com/mary-todd-killed-lincoln.htm

    To Anonymous that said, “Fed conspiracy theorists are nothing more than anti-Semites and Nazis.” Richard Posner is right, by you cowardly using ‘anti-Semites and Nazis’ you show yourself to be a troll. There is a lot of truth out there to be found by researching both sides of any issue of history. When evidence always brings you to the same conclusion, that converts to Judaism from the East European Khazar’s who had mixed their blood with the Asian Mongrel groups that were invading the land are the same ones that have caused all of the troubles now and centuries past, who today call themselves, Jews, why would joining with you give anyone survival?

    Helen Thomas was right when she said they should go back to where they came from. Her words are still true today. The only problem with that is that the other countries most likely don’t want them coming back.

    “Formerly an anti-Semite was somebody who hated Jews because they were Jews and had a Jewish soul. But nowadays an anti-Semite is somebody who is hated by Jews.” Dr Hajo Meyer – survived 10 months at Auschwitz.

    ‘Deconstructing six million holo-myths’, by Dr. Harrell Rhome.

    James

  • terry the censor

    > Harrell Rhome

    You make a reasonable critique of the abuse of the term “anti-semite” … and follow it with a reference to an Aryan white supremacist who is an unabashed foaming-at-the-mouth hater of Jews.

    Well played!

  • Anonymous

    There was more to show the different sides of any issue, but, it was late and nodding at the PC wasn’t helping. Thanks for your comment.

  • Hughze

    Yup. Glad to see this post. Our children do need to learn the history of the problems caused by central and national banks. From what I read above, it appears that even some of the older generations who seem to argue in the favor of the central banks could take a lesson or two. Even in our own lives with the high interest, high fees, debt traps, and stupid little banking tricks to get us caught up in all of this, there are some who really think we need this. What does it take to make the blind see the light?

  • The Aleph Blog

    There are good reasons to dislike central banks — this article is a mix of truths and untruths. Too long to debunk. Anonymous had some good points.

  • Anonymous

    I don’t think the Benjamin Franklin lines are correct about the main reason for the Revolutionary War being the Bank of England’s move to debase the American currency. I worry we will go around making fools of ourselves if we listen to faux quotes about important subjects.

  • terry the censor

    I’d like to know why these type of posts are never corrected or updated when commentors find errors of fact.

    That’s rather telling about the poster’s concern for facts.

  • Anonymous

    I believe Franklin said these things. I have no proof he did not and they are logical things to say.

    I am an anti-semite simply because I have never met a jew that does not defend the central banks. Central bankers are criminals and it seems only jews defend the criminals of their ethnicity. Blacks do not defend Crips, latinos do not defend MS13, and whites do not defend the KKK.

    “Hitler was insanely jealous of the Jewish control of finance and banking and thus convinced Germany to deport all the Jews.” Hitler was pissed because he realized that jews do not have the money they loan to people. They create it from nothing. The fact that jews were loaning this money from nothing to each other to buy up everything that has real wealth is what Hitler was pissed about.

    After buying up the media of the USA the jews put out the whole “money isn’t everything, it is the only thing” mantra. They then used the influence that mantra carried to convince people to trade their hard work for something jew central bankers get for nothing. Now they are inflating the money supply so that the people end up with nothing.

    This is exactly what got jews in trouble in Germany and everywhere else they were pogrommed.

    BTW the avg IQ in Israel is 94 a full 6 points lower than the world wide avg. The anon jew shows his jew supremacy roots with his claim jews are smarter.

    As for joining jews or dying. HAHAHAHAHAHA Jews will be pogrommed from the USA in the near future. Count on it. Loaning themselves money they created from nothing to buy everything in a country is the only reason jews have ever been pogrommed. This behavior always leads to where the USA and the rest of the West is today.

    A little known fact about jewish pogroms is that Germany’s response was not the norm. In 90% of jewish pogroms the people threw out the jews against the wishes of the Gov’t. When the jews ruin the economy to the point of no return the people revolt and punish jews for their crimes. Unless you believe US citizens are the dumbest people in the history of mankind you have to know we will snap out of it sooner or later.

    The fact that almost all jews believe that they somehow have a right to create money from nothing, buy up the country, and then inflate the money supply so they end up with everything is work explains why all jews suffer instead of just the jew banker/media mafia. The jews on this sight who are defending the jew mafia are not innocent.

    The jew above admits they are arming up to keep everything they stole is telling. He believes jews are so smart but proves how dumb he is. He first claims jews are ramping up security against us and then claims that brains are what is needed for survival not the ability to make violence. He is so stupid he can’t see that he has clearly contradicted himself. Once again jewish hubris and hatred of everyone else is about to have consequences.

  • Anonymous

    Commenter’s finding errors most likely use spell check before posting their comment and finding error makes people look further for truths of fact to septarate fact from fiction.

  • jason

    The author of this article, may very much like to read a study just completed on the true story of Jackson and the Bank. The myth is ended. The controllers of Jackson were those of Aaron Burr, Jeremy Bentham, and other agents of the British Empire. John Quincy Adams and Nicholas Biddle were the nation builders and patriots. “How Andrew Jackson Destroyed the United States.” larouchepac dot com/andrewjackson

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