by American Citizen

Created on: September 03, 2009

The third iteration of a national bank for the United States is the current Federal Reserve. The first, the Bank of the United States, was Alexander Hamilton's idea. Despite Thomas Jefferson's comprehensive (I'd say exhaustive) list of reasons based on several systems of precedent law [1], then-President George Washington sided with Hamilton. That bank was granted a 20-year charter, which may have been renewed under Monroe.

One renewal was during Andrew Jackson's presidency. Jackson's 1832 signing statement with his VETO that denied renewing the charter is quite educational. For starters, it showed that there was a time when the presidents read the bills before making decisions upon them. Second, it revealed an understanding mind on Jackson's part, the mind of a statesman who understand cause and effect, truth and consequences. It's also interesting that the bill was presented to him on the 4th of July, a national holiday. Congress has rarely done anything scrupulously. Jackson was no fool. He conceded that a national bank may be convenient to the government. However, he was convinced that "some of the powers and privileges possessed by the existing bank are unauthorized by the Constitution, subversive of the rights of the States, and dangerous to the liberties of the people." [2]

Jackson also denounced the argument that "calling in its loans will produce great embarrassment and distress". He responded that "The time allowed to close its concerns is ample, and if it has well managed its pressure will be light and heavy only in case its management has been bad. If there, it shall produce distress, the fault will be its own, and it would furnish a reason against renewing a power has been so obviously abused. But will there ever be a time when this reason will be less powerful?" The argument sounds familiar. It could have come out of Hank Paulson's, Ben Bernanke's or Tim Geithner's mouths. The federal reserve has always been problematic and self-serving.

What may surprise many is a highly centralized national bank is also a Marxist's dream. Not only a dream, but one of the 10 pillars of establishing a pure communist society. Doubters may revert to Karl Marx's "Communist Manifesto" [3]

At the very least, we have now in our country a movement to audit the fed brought before the House by Texas Congressman Ron Paul, H.R. 1207. There are other movements to abolish the fed, but we know how that movement ended for President Kennedy. The only thing we have to fear is the Fed. We should not give up hope of abolishing an unconstitutional institution. It may interest you to know that only laws made in pursuance of the U.S. Constitution are considered supreme law of the law. [4] The rest, like the federal reserve, do not count and can be maneuvered around. Not everything those Congress critters do is in pursuance of the US Constitution, and in that is potential remedy [5]

[1] Heffner, Richard "A Documentary History of the United States" ISBN 0-451-20748-3 pp.50-53 Letter from Jefferson to Washington

[2] Heffner, Richard op.cit. pp.109-115

[3] http://www.anu.edu.au/polsci/marx/classics/manifesto .html search for "centralization of credit in the banks" and it will take you straight to the section.

[4] U.S. Constitution Article VI Section 2 "This Constitution, and the laws of the United States which shall be MADE IN PURSUANCE THEREOF; and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land;

[5] www.ezremedy4u.com

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