Top 10 Americans for monetary reform: #7: Benjamin Franklin invents government WITHOUT TAXES!

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“There is no Science, the Study of which is more useful and commendable than the Knowledge of the true Interest of one's Country; and perhaps there is no Kind of Learning more abstruse and intricate, more difficult to acquire in any Degree of Perfection than This, and therefore none more generally neglected. Hence it is, that we every Day find Men in Conversation contending warmly on some Point in Politicks, which, altho' it may nearly concern them both, neither of them understand any more than they do each other.

Thus much by way of Apology for this present Enquiry into the Nature and Necessity of a Paper Currency. And if any Thing I shall say, may be a Means of fixing a Subject that is now the chief Concern of my Countrymen, in a clearer Light, I shall have the Satisfaction of thinking my Time and Pains well employed.” – Benjamin Franklin, A Modest Enquiry into the Nature and Necessity of Paper Currency, 1729.

The financial crisis in America today could be over almost instantaneously through monetary reform. Monetary reform is a fundamental shift in how America creates money. The shift is from a Robber Baron-era design of banks creating credit to lend to us at interest and ever-increasing debt, to our community (government) creating it for the direct payment of public goods and services. The benefits of monetary reform are conservatively $1 TRILLION every year, the end of the national debt, and full employment.

Please review the links above to fully understand this idea.

The power of monetary reform is evident in history. Napoleonic France quickly became the world’s leading economy and Paris its most beautiful city after ten years of violent revolution that killed or drove-off their economic leadership. Nazi Germany overcame tragic-comic hyperinflation to become the model economy during the Great Depression. These nations were in worse economic conditions than America today (economic power needs to be invested in the public good, not for empire).

This top 10 list of Americans who understood monetary reform deserve your attention. Given our economic condition, you literally have nothing more valuable for your attention. Each of the ten gives unique and added perspective for your learning of this multi-trillion dollar topic.

Benjamin Franklin (1706-1790) was a Founding Father of the United States and one of the most accomplished inventors and brilliant minds in human history. Among his inventions, was his discovery of how to fund a government without taxes. This article will concisely summarize the method, document its veracity in conservative history, allow Mr. Franklin to explain it to you directly, and finish with a scenic 7-minute video describing Mr. Franklin’s contributions.

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Although Aristotle clearly wrote that money is a function of law and not of commodity value, many people were confused how to manage the creation of money. The American colonies had almost no gold or silver, so were driven to fiat currency by necessity. The colony of Pennsylvania would lend money to land owners at 5% interest. The money would provide the essential government service to facilitate trade. Because only the principal was leant, the government could create and spend the interest on public goods and services without taxing their citizens. For an encyclopedic summary: here and here.

The result was stable prices and economic prosperity without direct taxation.

Contemporary economist, Adam Smith, in The Wealth of Nations:

“The government of Pennsylvania, without amassing any [gold or silver], invented a method of lending, not money indeed, but what is equivalent to money to its subjects. [It advanced] to private people at interest, upon [land as collateral], paper bills of credit…made transferable from hand to hand like bank notes, and declared by act of assembly to be legal tender in all payments...[the system] went a considerable way toward defraying the annual expense…of that…government [low taxes]. [Pennsylvania’s] paper currency…is said never to have sunk below the value of gold and silver which was current in the colony before the…issue of paper money.”

In agreement are famed Princeton economist Richard Lester in his book, Monetary Experiments: Early American and Recent Scandinavian, and Stanford's Hoover Institute's Senior Fellow Alvin Rabushka in his paper, Representation without taxation. This prosperity continued until the British government ended the colonies’ power to issue its own currency through the Currency Act of 1764. Peter Cooper, born one year after Franklin’s death and colleague of Jefferson’s Secretary of the Treasury Albert Gallatin, wrote:

“After Franklin had explained…to the British Government as the real cause of prosperity, they immediately passed laws, forbidding the payment of taxes in that money. This produced such great inconvenience and misery to the people, that it was the principal cause of the Revolution. A far greater reason for a general uprising, than the Tea and Stamp Act, was the taking away of the paper money."

From Franklin’s memoirs: “The difficulties for want of cash were accordingly very great, the chief part of the trade being carried on by the extremely inconvenient method of barter; when in 1723 paper-money was first made there, which gave new life to business, promoted greatly the settlement of new lands (by lending small sums to beginners at easy interest, to be repaid on installments) whereby the province has so greatly increased in inhabitants, that the export from hence thither is now more than tenfold what it then was; and by their trade with foreign colonies, they have been able to obtain great quantities of gold and silver to remit hither in return for the manufactures of this country. New York and New Jersey have also increased greatly during the same period, with the use of paper-money; so that it does not appear to be of the ruinous nature ascribed to it.”

“Experience, more prevalent than all the logic in the world, has fully convinced us all, that it (paper money issued directly by government) has been, and is now of the greatest advantages to the country.” – Benjamin Franklin, The American Weekly Mercury, March 27, 1729.

“The utility of this currency became by time and experience so evident as never afterwards to be much disputed.” – Benjamin Franklin, The Autobiography of Benjamin Franklin, page 65.

Question

Was Frankliin's currency the same as the greenbacks of Lincoln?

kind of

Pennsylvania issued currency as loans at 5% interest. They then created the 5% worth and spent it on goods and services for the community. Lincoln just approved the idea (I don't think he understood) of government-created money for partial funding of the war.

We hold these truths to be self-evident...

From a history of Connecticut

"Every legislator therefore, who wishes to aintain public and private justice and to preserve the morals of the people, will be particularly solicitous to have a fixed currency.

"Of the importance of thisthelegislature, at this time, appear to have been deeply apprehensive. They acted wit peculiar caution relative to the emission of billsof credit, and the establishment of funds for their seasonable redemption. The Assembly, in October, 1713, had enacted, that 20,000 pounds in billsof credit, should be emitted: but as thewar was terminated, and as the debts contracted by it, had been in a considerabe degree discharged by the taxes which had been collected; and as they would be still further discharged by others which had been levied, it was determined to emit the twenty thousand pounds in parts, and at different periods. ...When the legislature met, in May, 1714, it was enacted, that the treasurer should issue two thousandpounds only of the said bills, and a fund was made for their redeption in 1724."

There seems to have been a redemption of the bills. One wonders what that would have constituted. Were they redeemed eventually in gold or silver coin? Apparently they were redeemed in stages. I think it is important to recognize this. There are big differences in then and now, because it would have been unthinkable to denominate the currency in any way except gold or silver, even if it was a created bill.

"The bills which had been emitted, at five percent, from the year 1709 to the present time, had suffered no depreciation. In the scarcity of money, they had facilitated trade, served the convenience of the inhabitants, and been of general utility. The Assembly therefore enacted, That the bills of credit of this colony, should be allowed as a just payment of all debts, except those in which the contract ad been made for money, or articles particularly specified, until the year 1727."

"Money, one assumes, was precious metal, gold or silver. So I would agree that they properly maintained, in some cases, their emissions of credit, but I believe it was ultimately redeemed in gold or silver.

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What does this have to do with 9-11 .. even remotely ??
I for one do not want to see 9-11 truth mixed up with tax-refusal .
Maybe it's because I live in a country where we have "socialist" healthcare for everybody, a decent pension for everybody
and (still) decent education for everyone .
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"Listen carefully now : DO NOT DESTROY OIL-WELLS" Dubya

Peter, the oligarchy that orchestrated 9-11...

has it's main hold on the creation of money. I've listed several articles with the trillion dollar annual benefits if we take money from the banksters; these are the top 10 historical Americans who understood the idea. If we don't strike the heart of the beast we will have to fight another day after 9-11 Truth.

We hold these truths to be self-evident...