"All the perplexities, confusions, and distresses in America arise, not from defects in their constitution or confederation, not from a want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation." John Adams, Letter to Thomas Jefferson (August 23, 1787)
A major reason why the American public and its politicians have not been able to free the US monetary system from the hands of private bankers is simply because they do not understand the intricacies of the Banking system. The Founding Fathers only authorize limited banking charters and otherwise money was handled on a state, local or private level. The First Bank was created to handle the Revolution War debt and was disbanded in 1811 when its charter lapsed. The Second Bank of the United States was created to fund the war of 1812 and to handle inflation. It Existed from 1816 to 1836 and was disbanded because its president in 1828, Andrew Jackson, denounced it as “an engine of corruption.” . .
Richard Cook explains a debt-based monetary system as one that functions through the process of bank-created credit rather than through coinage, silver certificates and treasury notes. His main criticism of the present monetary system is that it is a credit and debt backed system instead of a generally recognized fair exchange ticket that people could use to facilitate transactions. He feels that the Fed should not issue the US currency any longer and that the government should take back its control from the financiers. As an alternative to the existing system he proposes that the government regulate it as a public utility instead. .
Works Cited
Cook, R. (2007, 05 07). Monetary Reform and How a National Monetary System Should Work. Retrieved from Global Research: http://www.globalresearch.ca/monetary-reform-and-how-a-national-monetary-system-should-work/5615
How We Got Here. (2013). How We Got Here - Presentation. Retrieved from How We Got Here: http://www.slideshare.net/zroth/how-we-got-here-presentation-682807
Lendman, S. (20009, 05 07). "Web of Debt” – How the Monetary System Works. Retrieved from Founding Father 1776: http://foundingfather1776.wordpress.com/2009/05/08/web-of-debt-how-the-monetary-system-works/
