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
#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
#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
#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
#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
#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
“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
#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.