|
Howard R. Smith, Economic Historyof the United
States, (New York: The Ronald Press Company, 1955), chapter 13, treats
this question at greater length than either the Galbraith or Bernstein sources I
supplied earlier. There is no disagreement, but the exposition is more
complete in bringing to bear other circumstances that accentuated the impacts of
the "Specie Circular" and brought on a severe deflationary depression in
1837. The "hard money" policy was the requirement of the Specie Circular
that henceforth all payments for public lands be in gold or silver. It was
coincidental with another initiative that further contributed to breakdown of
the national monetary system. This was a requirement that federal surplus
from sale of public lands be deposited with state banks, which had the
unintended effect of reducing bank assets in some critical eastern states,
thereby diminishing the capacity for investment in that critical region and
putting a further crunch on capacity to redeem bank notes in
specie.
These issues led to a scheme sponsored by Van Buren
to use the U.S. Treasury as the near equivalent of a national bank, now
referenced in historical treatments as "the sub-treasury scheme". It
bears on the question of whether government or private banking companies should
be responsible/privileged to issue a nation's money.
KW
----- Original Message -----
Sent: Thursday, August 04, 2005 3:04
PM
Subject: [socialcredit] comment
requested
Dear Friends,
The following quote was
passed onto me by Robert Johnson, whose biography of Charles Ferguson should
be completed by December. I recognize that the background is Jackson's
war against the central bank, but can one of you more fluent in history than I
please briefly explain "what is called the hard-money policy of the present
Administration"?
Michael
"This plain truth cannot fail to be
clear as the sunlight to every calm and candid mind, namely, that by reason of
the alliance between the institutions that have created our paper currency, to
derive their profits from lending it, and all our public authorities, both the
Federal and State Governments, the latter conducting all their fiscal
operations through the paper of the banks alone, the country has really
possessed no uniform measure of value, notwithstanding all the precautions of
the Constitution. It has had but a counterfeit presentment of such a standard.
This is a position which the most strenuous friends of banks and paper money
cannot attempt even to controvert. Nor will any question that this defect is
the radical vice of our system of currency being precisely analogous, though
on a wider and more active scale of operation, to the want of fixed standards
of weight and measurement. This defect has been the original and ever active
cause the prima mali labe of all the evils which it is admitted by all
that the country has suffered from its paper currency, whatever differences of
opinion may exist as to its compensating benefits; and to supply this, as far
as it may be incidentally within the competency of the General Government, is
simply the object of what is called the hard-money policy of the present
Administration. The peculiar advocates of paper money rest their defence of it
upon the ground of real convertibility; yet, in practice, that restraint is
entirely evaded, simply for the want of a regular demand for and circulation
of specie." (United States Magazine and Democratic Review,
January 1837)
---------------------------------------------------------------------
Some introductory materials to the discussion topic of this list are at
http://www.geocities.com/socredus/compendium
You're subscribed to this list with the email nschwartz@cogeco.ca
For more information, visit http://www.eListas.com/list/socialcredit
|
Re: [socialcredit]
Reply to this message
