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

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*The original version of this article contained a few minor inaccuracies.  I apologize for this.  I am not a historian, and several of the facts that I made originally are hotly disputed among historians.  I have attempted to revise the article in such a way as to reflect the historical consensus more accurately.  However, the central points of the original article are not in dispute.  Central banking has always been a huge issue throughout U.S. history and central banking remains a tremendous threat to our financial system in 2010.  Everyone makes mistakes, and I am sure I will make many more.  However, the main point of the article is to detail how corrosive central banking and the financial elite have been throughout U.S. history, and hopefully most everyone can see that very clearly.  There will always be historical debate about certain points, but the overall themes are unmistakable when you step back to take a look at the bigger picture.

—-Beginning of the original article—-

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 —Correction— The following quote, supposedly from Benjamin Franklin in 1763, was quoted in Money and Men by Robert McCann Rice in 1941 but it has not been found in any previous source to this point.  So is it really from Franklin?  In any event, it does accurately describe the conditions of the day….

“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 issuing legal tender.  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 —Correction— There is debate over whether or not Benjamin Franklin was the original source of the following quote….

“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 —Correction— When asked why the American colonies had lost respect for Parliament, Benjamin Franklin responded with the following quote….

“To a concurrence of causes: the restraints lately laid on their trade, by which the bringing of foreign gold and silver into the Colonies was prevented; the prohibition of making paper money among themselves, and then demanding a new and heavy tax by stamps; taking away, at the same time, trials by juries, and refusing to receive and hear their humble petitions.

#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 —Correction— The following quote is claimed to have appeared in the London Times in 1865, but many historians dispute whether it is actually real or not….

“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 —Correction— How President James A. Garfield really felt about the international bankers is a matter of legitimate historical debate.  The quote from the original article has not been fully documented.

#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 —Correction— The U.S. House of Representatives voted on the Federal Reserve Act on December 22nd, 1913 and the U.S. Senate voted on the Federal Reserve Act the following day on December 23rd, 1913.

#35 A significant portion of Congress was either sleeping at the time or was already at home with their families celebrating the holidays.

#36 —Correction— The correct version of the quote about our system of credit from President Woodrow Wilson is posted below….

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 who, even if their action be honest and intended for the public interest, are necessarily concentrated upon the great undertakings in which their own money is involved and who necessarily, by very reason of their own limitations, chill and check and destroy genuine economic freedom. This is the greatest question of all, and to this statesmen must address themselves with an earnest determination to serve the long future and the true liberties of men.

There is debate about whether or not Woodrow Wilson ever truly regretted allowing the Federal Reserve to be created, but hopefully most of us can agree that he should have regretted it.

#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….

  • Bravo! A wonderful synopsis. This should be spread far and wide because an elightened populace is the worst enemy of the criminal global elite. The apocalypse is now when these societal parasites will be revealed, uncovered, exposed. The groundswell is becoming a TSUNAMI that the most corrupt brainwashed military force cannot withstand, nor have the weapons to thwart it.
    We hold up the pyramid that those at the top benefit from at our expense. Now is the time to peacefully dismantle these corrupt power structures and reinforce the original constitutional republic.
    As for me, I’m printing this article and committing it to memory.

  • chon

    Hey.

    Finally, you wrote “Rothschild” for 1st time ever. Finally !!!

    Lets see if you can dig deeper into all of this conspiracy.

  • Steven Yates

    Interesting & useful information. Unfortunately I have just one complaint: the quotations are not referenced. Could you please supply the references for your quotations to the Founding Fathers, W. Wilson, & others, preferably to original sources where available? As you probably know, the World Wide Web is loaded with bogus quotations especially from the Founding Fathers, & many writers & bloggers just recycle them without checking the originals. This damages a writer’s credibility when a quote is exposed as bogus, as some of us have learned the hard way. Citing the originals is just part of good historical research.

  • Joe Reyes

    Just the fact that you don’t hear MSM wah babies from Glen Beck to Keith Olbermann sharing this knowledge shows the extent of the control the central bankers have in society today. Our monetary system is near the point of producing wallpaper or if they cut back on the fiber could be used as t.p. Hopefully in two years we have an opportunity to elect Dr. Ron Paul for President. And take back control of our money and the future of our nation.

  • OrangeMoon

    Great list & I might add that civics is no longer taught in the public schools which leads me to understand why so many Americans are unaware of the fundamentals of Jeffersonian law.

  • foggytoo

    Finish this article off by telling the world just who owns the Fed! That is the critical piece of information that is missing here.

  • zack

    Another useful factoid – the dollar has lost 95% of its value since the Fed took over “stewardship” for the currency. Heckuva job right?

    Jobs in Asia – http://www.pathtoasia.com/jobs/

  • Steven Yates

    Thank you for taking the issue I raised about the historical quotations seriously. As a writer myself I know that verifying these things as much as possible can be a pain, but given the importance of the fight we are in, I believe it’s worth it to make sure we’ve put together the best history we can. Good job! (I am not a historian either, but as I noted, I’ve learned the hard way.)

  • mondobeyondo

    90 percent of high school students don’t know what was just written in the above article.

    Don’t even ask about college graduates…

  • fdasf

    the problem is fractional reserve banking. if you eliminate the central bank without eliminating fractional reserve banking, you’ve accomplished nothing.

  • SoulSearcher

    Interesting stuff! It seems to follow what I’ve learned so far. It would be nice to hae it referenced, but instead of demanding that I’m just going to take the ball and run with it and reference it myself.

    Thanks!

  • Adrian

    Excellent article, corrections included.

  • Ashok Sharma

    Thanks for this well meaning and informative summary which I hope most of it be factual !

    No wonder over three billions of our people on this planet live under half a dollar level.

    No wonder we have scores of millions of school-age children grinding and scotching
    as CHIL LABOURERS in difficul conditions!

    No wonder tens of millions of young girls are forced to take up to PROSTITUTION and sell their flesh for a few dimes to feed themselves or their skelton looking children back home !

    DO WE EVER SEE OUR POLITICIANS RULING GOVERNMENTS EVEN A BIT ASHAMED AND QUITTING ? NO, BECAUSE THEY ARE ALL PART OF SUCH EXPLOITIVE SYSTEM!

    ASHOK SHARMA

  • Slyfly

    Knowing the Bernanke, knows points 40 and 41. He will not contract the Money Supply.

    QE2 is a farce. The $600 Billion does not include the multiplier effect on the economy. The fractional banking system at 10 to 1 means QE2 is $6 Trillion of inflation.

    The $6 Trillion will effectively pay the Sub-prime mess. This is the payment needed by the US public to correct what the crooked bankers did.

    The Sub-prime mess showed the underbelly of the mortgage market. US Homeowner loss of controll of their own assets.

  • More information closely associated is within my published reference notes here:
    http://constitutionalvoices.org/bloggers/freedomblogger2/?cat=3

    SEE ISSUE #3

  • Grekko

    Central Banks are the bane of history. Especially now that money, printed from thin air, and issued as debt in a fractional reserve banking system has destroyed the economies of the world, the time of Central Banking must come to an end. Gold and silver has been money for over 4000 years of human history. I am a creature of habit, and I see no intelligent reason why it should not be again. It keeps inflation from happening, except when a certain raw material becomes scarce, and that inflation is only in the products using that material. It also keeps government from spending too much and holding to a balanced budget. In other words, they just cannot print up what they want to spend because it is a precious or semi-precious metal. If they want to spend more, thay have to raise taxes and that just vote’s them out of office. Another benefit is no more pre-emptive wars! Wars are expensive and with gold as money, the government cannot afford it. Wars would become strictly defensive in nature. Basically, the people would be free in monetary matters. The people would be the final judge of what government can and should do. It is a scary thought for politicians and big banks that the people will rule through their wallets.

  • Sam

    Alexander Hamilton did not have close ties to the Rothschilds. Please post a primary source for this claim. This is a myth propagated by people like Eustace Mullins who equate the 1st and 2nd Banks of the United States with the Federal Reserve. Any economic historian can tell you how wrong that is. The Hamiltonian banking system and the Federalist economic program was the leading cause for the boom in prosperity that occurred in the first years of the Republic. They were national banks, not central banks, and there is an important difference. They were not the sole issuer of currency like the Fed, and the credit they did issue was not debt-notes like the Fed’s are today. They were both mainly used for Hamilton’s American system of Economics, whereby loans would be made cheaply for research and development in advanced scientific and technological projects, which then generated huge benefits to the American economy in terms of profits from patents and manufacturing, and job growth from the new industries it spawned.

  • Phoebe Kirk

    No Idea whats going on~

  • Elocutionist

    The central banks’ greed is for more than money. Their interest is in controlling governments and the people sovereigns should be serving. This, in addition to the propensity for dictating policy through financial means, only adds insult to injury. And the most frightening thought is what occurs when the whole house of (Rothschild, Warburg, etc.) cards comes crumbling down; when people come to the realization they’ve been robbed by the banks and sold out by the politicians. The ‘documented’ quest for control of others goes back (at least) to the BOE. But it may well end in our lifetimes – and not all that far off – if we can recognize this impending catastrophe for what it is (the greatest scam ever perpetrated) and extricate ourselves from the phantom system under which they’d have us operate, enslaving us and all future generations we will be able to claim some degree of personal freedom and relative wealth that the generations of thieves in finance won’t be able to expropriate.

  • intrest free

    There nothing wrong with having a bank aslong as n
    o intrest is accepted by any1 or anything the government should make dealing with intrest a crime and illegal and punished by death

  • Eric W.

    I think the central banking system is detrimental at best and down-right sinister at worst. To me it seems like a huge game of slight of hand, with elected officials running on ideas of economic manipulation (always in a position of “we’re going to save the American economy”) and having no real power to do so. The central banking system is, in my humble evaluation, true evidence of socialist economic controls. Look at it this way, by controlling interest rates and currency value, they effectively control the prices of commodities and property. Vote for whomever you want as your executive and congressional representatives, the only real power they possess is who they decide should be th Fed’s chairman.