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41 Facts About The History Of Central Banks In The United States

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

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 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 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 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 following....

"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 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 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.

So what is your opinion about central banks?  Feel free to leave your thoughts in the comments section below....

Watch the movie The Secret of OZ which explains in detail our country’s financial history complete with quotes from our founding fathers that none of us were taught in school. 

Bank of North Dakota good example...


The Huffington Post covered it and so did Mother Jones.

The American Monetary Institute is a good one for offering solutions in my opinion to the dilemma we are in. At least they are talking about it and they also have conferences in Chicago every once in a while. Dennis Kucinich supports them and talks at their conferences.

Bill Still supports this Monetary Reform Act which is also worth looking into. Bill Still is the most informed person I know of dealing with this issue. He was who introduced me to the whole concept of alternatives to the private Federal Reserve. I highly recommend his movies.

Here is some information about the video. The+Secret+of+Oz.

"It is absurd to say our country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the people." -- Thomas Edison

"All of the perplexities, confusion, and distress in America arises, not from the defects of the Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation." -- John Adams

"The government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity. The financing of all public enterprise, and the conduct of the treasury will become matters of practical administration. Money will cease to be master and will then become servant of humanity." ~ Abraham Lincoln


Prosperity, September 2000

In December 1921, the American industrialist Henry Ford and the inventor Thomas Edison visited the Muscle Shoals nitrate and water power projects near Florence, Alabama. They used the opportunity to articulate at length upon their alternative money theories, which were published in 2 reports which appeared in The New York Times on December 4, 1921 and December 6, 1921.

Objecting to the fact that the Government planned, as usual, to raise the money by issuing bonds which would be bought by the banking and non-banking sector -- which would then have to be paid back with money raised from taxes, and with interest added -- they proposed instead that the Government simply create the currency it required and spend it into society through this public project.

This is also the Prosperity proposal.

Thomas Edison made it plain in the following excerpt from The New York Times, December 6, 1921 issue ("Ford Sees Wealth In Muscle Shoals").

You can download the archived+article at this link which opens as a pdf

Here, the reporter is quoting Edison:

"That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

"Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 -- that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

"But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. The difference between the bond and the bill is that the bond lets the money brokers collect twice the amount of the bond and an additional 20 per cent, whereas the currency pays nobody but those who directly contribute to Muscle Shoals in some useful way.

" ... if the Government issues currency, it provides itself with enough money to increase the national wealth at Muscles Shoals without disturbing the business of the rest of the country. And in doing this it increases its income without adding a penny to its debt.

"It is absurd to say that our country can issue $30,000,000 in bonds and not $30,000,000 in currency. Both are promises to pay; but one promise fattens the usurer, and the other helps the people. If the currency issued by the Government were no good, then the bonds issued would be no good either. It is a terrible situation when the Government, to increase the national wealth, must go into debt and submit to ruinous interest charges at the hands of men who control the fictitious values of gold.

"Look at it another way. If the Government issues bonds, the brokers will sell them. The bonds will be negotiable; they will be considered as gilt edged paper. Why? Because the government is behind them, but who is behind the Government? The people. Therefore it is the people who constitute the basis of Government credit. Why then cannot the people have the benefit of their own gilt-edged credit by receiving non-interest bearing currency on Muscle Shoals, instead of the bankers receiving the benefit of the people's credit in interest-bearing bonds?"

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We 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 duress of a small group of dominant men.”
— U.S. President Woodrow Wilson, a few years after authorizing the creation of the “Federal” Reserve

"Since I entered politics, I have chiefly had men's views confided to me privately. Some of the biggest men in the U.S., in the field of commerce and manufacturing, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it." ~ President Woodrow Wilson 1913

“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson.” – U.S. President Franklin D. Roosevelt in a letter written Nov. 21, 1933 to Colonel E. Mandell House.

“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
— Thomas Jefferson - in a letter to Secretary of the Treasury Albert Gallatin ~~~> Verification:

Some refutations by a refuter here.

This is good!


Commodity money

The above article was a great summary of Central Banking in the United States. Thanks, Orangutan!

I look forward to the return of commodity money. It is organic and aesthetic, and deeply connected with the fabric of the economy. It represents real wealth, as the commodity has demand in the market place, which immediately determines its value. That's why it can be employed also as a standard by which to assess the value of other marketable commodities and services. It is not perfect, because you will never find a monetary system that is perfect. As far as stability is concerned, oddly, commodity money creates stability as a result of its ability to "float" in value with respect to other goods and services. The attempt to mimic price stability by pegging the dollar denominated federal reserve note or some other token currency to a market basket of goods and services will always fail, because
1. The value of the currency can only be maintained by scarcity of that currency;
2. Pegging the currency to a marketbasket amounts to price fixing;
3; Using a market basket of commodities and services nullifies the market signals, as a scarcity on one commodity may neutralize overproduction of another, with the result that a false market signal is transmitted. Market baskets neutralize the signals to the economy.

Of course we should never use a bank note for currency. This was foisted upon us by unscrupulous bankers. Our currency is a horrible fiction. It is not tied in any definitive way to a value in the market place, and thus its value is out of our hands, and in the government's hands, giving the government still another power that it does not deserve to have.

How much did England spend on fighting the French

in the colonies? Why did the colonies refuse to help pay back the war debt? Are these questions also part of the story? The Federal Reserve Act of 1913 is when the system was really hijacked wasn't it? Congress should print it's own money and interest on the debt should not pass into private hands on that I wholly agree.

What about the testimony of Benjamin Freedman and the Wilson affair?

The real hijacking

Perhaps the real hijacking occurred, not in 1913, but in the late sixties, when Congress dissolved the gold reserve requirements for issuance of federal reserve notes. I think it was something like twenty five percent. After that, there was utterly no limitation on the issuance of federal reserve notes, and the Fed could be used without restriction to monetize the debt, meaning that it could purchase any amount of US debt on the treasury market. The downside, of course, is that people complain about the resulting inflation. In our current situation, it appears that demand has dried up for US debt, so in order to prop up the debt and avoid a default on government securities, the Fed must purchase the debt. If this is true, the real reason for the latest $600 billion debacle is not a fiscal stimulus, but a necessary condition to prevent the US from defaulting on its debt.

Good Points

How long do you think the 600b will last? Then what?

Who controls America?

Republicans? Democrats? ...........WAKE UP AMERICA !
This video should be seen by EVERY American ! It's titled The Money Masters.
Thanks Orangutan for the post. This is relevant to our quest for the truth because it shows how our government and media are owned and controlled by those with the MONEY !

Another great, updated work from the same filmmaker

"The Secret of Oz":

I was surprised to learn that The Wizard of Oz wasn't just a story for kids. "Who's the man behind the curtain?"

Money is not the root of all evil; instead it is the *manipulation* of money to control us that is the evil. Ultimately, it leads to things like 9/11.

The Money Masters - How International Bankers Gained Control of

The Money Masters - How International Bankers Gained Control of America
3:35:19 - 3 years ago

"END the FED" Rallies Nationwide Next Sat 11/20/10

"END the FED" Rallies Nationwide Next Sat 11/20/10

"END the FED"

Ellen Hodgson Brown

Features in the Secret of Oz.
I have read her book The Web of Debt (the german version of which is a bestseller in germany) which she has autographed for me as:
I met her, gave her a ride in my private cab to where she was staying in london after a meeting.
Also she told me "I'm with 9/11 truth."

Not one big power

There is not a "one big conspiracy" of all elites including old money (big banking families of last 100 years) and new military power mongers (CIA bush I, neocon), etc marching in lock step

its an expanding empire

those consist of the wealthy, politicians beholden to moneylenders or election backers these days, military power mongers thru CIA etc these days

the wealthy have a split within themselves of patrician/populist

parallels to rome highlighted by michael parenti in his recent book , The Assassination of Julius Caesar

within an empire there are military people a la octavian (like neocons)
patricians (old money) like the metelli (eg rockefellers, wealthy thru industry, central banking con trick and resources exploitation)
populists - that is to say amongst the aristocrats there are some who want to benefit the people
eg the kennedys
populists that get popped off
(READ THE BOOK- jc was a populist over land reform)
JC similar to JFK RFK Lincoln

when the military/political people have a populist leader threatening the upwards redistribution of wealth then the patricians pop that leader off

when the military/political have an octavianesque leader - bush (either one) obama who benefits the patricians they happily coexist

during empiric expansion the upwards redistribution of resources of conquered nations benefits the patricians

but remember within the elites there are patricians and populists

the populists know the dangers so they arent lemmings jumping off cliffs anymore like a long line of lincolns and kennedys

and as Zbigniew Brezinsky said, the key to world domination is a stranglehold on Eurasia, thats what 9/11 is all about

Endless upwards redistribution of wealth

Endless War enabling it

Endless referencing 9/11 as the reason for it

pls donate to Building What / NYCCAN- work some overtime to pay for it - thats what i did
looking at Bob McIlvaine on Fox makes me feel i got enormous bang for my 2000 bucks

quoting from: :
"Since the beginning of the Anglo-American invasion, the U.S. Department of the Interior and the British Government have been sending engineers from the U.S. Geological Survey and the British Geological Survey. Current financial estimates are based on their 2007 reports. They certify the existence of gigantic quantities of iron, copper, cobalt, gold, lithium, etc..

It was equally on the basis of these reports that both the Bush Administration, towards the end of its mandate, and the Obama Administration made their decision to escalate the U.S. and NATO military effort in Afghanistan."