The History of Banking: Historical Concepts & Philosophies best forgotten

(News & Editorial/ The History of Banking: concepts & philosophies best forgotten)

Let’s do this chronologically:

1)  Circa 1491 BC.
The Law of Moses strictly prohibited usury

Pasted from:
•  “If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury “(Exodus 22:25).
•”Thou shalt not give him thy money upon usury, nor lend him thy victuals for increase” (Lev. 25:37).
“Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury “(Deut. 23:19). 
•  “He that putteth not out his money to usury, nor taketh reward against the innocent. He that doeth these things shall never be moved” (PS. 15:5).
.

2)  Circa 24 AD  (AD=Anno Domini, meaning “in the year of the Lord. Born 6BC)
During the life of Jesus
Jesus began his 3- 1/2 year ministry in Jerusalem by driving the corrupt moneychangers from the Temple. He also ended His ministry by attacking the same thieves. It was the only time that the Lord used force during his earthly life.

[Jesus driving the moneychangers from the Temple by El Greco.]

“And the Jews’ Passover was at hand, and Jesus went up to Jerusalem. And found in the temple those that sold oxen and sheep and doves, and the changers of money sitting: And when he had made a scourge of small cords, he drove them all out of the temple, and the sheep, and the oxen; and poured out the changers’ money, and overthrew the tables; And said unto them that sold doves, Take these things hence; make not my Father’s house an house of merchandise” (John 2:13-16).

3)  1765
“When money is lent on a contract to receive not only the principal sum again, but also an increase by way of compensation for the use, the increase is called interest by those who think it lawful, and usury by those who do not”
……….Blackstone’s Commentaries on the Laws of England, p. 1336.

Interest is legalized USURY as long as it is done in MODERATION….Governmental decrees fix the maximum interest rates and anything above that is considered USURY. That is like a governmental decree that makes stealing legal as long as it is done in MODERATION and then calling it borrowing or acquiring or some less offensive term.

 

4)  The U.S. Constitution gave us sound Biblical money
The founders of the U.S. gave the people real money of silver and gold. In the US Coinage Act of 1792, the basic unit of currency was the dollar and the dollar was defined as 371.25 grains of fine silver. That much silver was to constitute a dollar. Each dollar was a unit. All other money was to be counted from this unit of a silver dollar. Hence dimes, quarters and half dollars were fractional parts of the dollar.

Gold was made money by measuring it from this basic unit of a silver dollar. The ratio was fixed at 15 to 1 and in 1834 the ratio was fixed at 16 to 1. This was the law of money up to 1873. The amount of silver in the dollar never changed during all this time. Silver was considered the money of the people, while gold was considered the money of the rich.

Free coinage of silver and gold.
From 1792 to 1873, the U.S. had free coinage of silver and gold. That meant that anybody could walk into the U.S. Mint, and the government would coin their silver or gold into lawful money at the rate of 371.25 grains of pure silver for each dollar, and 247.5 grains of pure gold to each gold dollar.

This system was called bimetallism, and the ratio of silver to gold always seemed to stay the same over the centuries.
.

5)  Circa 1813
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children 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, (Attributed)3rd president of US (1743 – 1826)

6)   1815
When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” –
……….Napoleon Bonaparte, Emperor of France, 1815

7)  1863
“Let me issue and control a nation’s money and I care not who writes the laws.”
……….Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild.

“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”
……….The Rothschild brothers of London writing to associates in New York, 1863.

 

8)  1873 Silver is demonitized
On Feb. 12, 1873, Congress revised the coinage laws. By a simple stroke of the pen, silver was assassinated. The U.S. went on a gold standard, and silver was demonetized except for payments under $5.00. A gold dollar became the unit of value, and free coinage of silver was ended. Soon after, the entire world demonetized silver and most nations went on a monometallic or gold standard. England had already demonetized silver in 1816, which paved the way for the gold standard, and the fake money paper usury system that dominates the world today.

With half the world’s money supply demonetized, gold became an even more precious commodity, and an item to be hoarded. Tons of it left the United States. The death of silver led to the fake money or paper system and usury on a colossal scale.

It ain’t   what you don’t know that gets you into trouble. It’s what you know for sure   that just ain’t so.”
……….Mark Twain

Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to…provisions [which] would place our currency and credit system in private hands.
……….Theodore Roosevelt
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 9)  1913 The Federal Reserve Act enacted on December 23, 1913 by Congress
On December 23, 1913, during Christmas break, with most of the Congressmen home with their families, the monied elite in Congress that stayed in Washington D.C. passed the Federal Reserve Act. It was quickly signed into law before the other members of Congress could get back to Washington D.C. to do anything about it.

 The Federal Reserve System is usury on a massive scale!!
The Federal Reserve System is composed of 12 private banks which create money out of nothing and then lend it to the U.S. government at usury. It is the most colossal system of usury and fraud that has ever been invented. It was founded by Rockefeller in 1913.

In the ancient world, the usurer quickly became owner of most of the country and had all the silver and gold. Then the peasants became slaves or revolted. Under the paper system, the final collapse can be postponed by printing more fake money. Inflation is the handmaid of the paper system. It is economic warfare, and more deadly than an invading army, because it comes from the enemy within.
.

10)  Constitutionality of The Federal Reserve Act (hence the existence of the Federal Reserve. Why are Big Banks too big to fail???)
The following two statements are posted from a larger, more damning article about the Federal reserve, found at: <http://www.healthfreedom.info/Federal_Reserve_Fraud.htm&gt;

__a)  The passage of the Federal Reserve Act was unconstitutional because,
1) the US Constitution prohibited “bills of credit” (i.e., paper notes) and
2) the US Constitution would have to be amended to go off the silver and gold coin standard for money. The US Constitution, the supreme Law of the Land, can only be amended pursuant to Article V. The US Constitution cannot be amended by statute. These unlawful actions by a criminal Congress remind me of a quote by the honorable Alfred E. Neuman of Mad Magazine fame: “America is that land which fought for freedom and then passed laws to get rid of it.”

__b) The Federal Reserve is also a monopoly–in a country where monopolies are supposed to be illegal. The IRS deposits people’s income tax checks directly in the Federal Reserve banks–not in the united States Treasury. Therefore, the IRS, an unconstitutional entity, is merely the collection agency for the international banksters. Over the years the IRS has become a tool of the elite banking families to financially attack and/or imprison people who expose the Federal Reserve. It is also a tool used by the D.C. elite to attack people who expose government corruption.
.

11)  More quotes
“I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.”
……….Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924.

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”
……….Henry Ford, founder of the Ford Motor Company.

“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U.S. government institutions. They are not government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people of the united States for the benefit of themselves and their foreign customers. The Federal Reserve Banks are the agents of the foreign central banks. The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board.”
……….
Congressman Louis T. McFadden, Chairman of the House Banking & Currency Committee, speech on the floor of the House of Representatives, June 10, 1932

“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent.”
……….John Kenneth Galbraith (1908-2006 ), former professor of economics at Harvard, writing in “Money: Whence it came, where it went” (1975).
.

12)  Gold, Silver, Copper, Nickel and the Slow Death of Money
Feb 16th, 2011, Whisky and Gunpowder, By Gary Gibson
http://whiskeyandgunpowder.com/gold-silver-copper-nickel-and-the-slow-death-of-money/
1933

Exerpts from the article:
__a) “In 1933 President Franklin Delano Roosevelt signed Executive Order 6102, which made it illegal for U.S. citizens to hold gold bullion.
__b) In 1971 Nixon severed the last official ties between gold and the dollar. The dollar quickly sunk to its real value, which had been debased by years of money supply inflation.
__c) By 1975 Americans were allowed to own bullion gold again, but during the roughly 40 years bullion gold ownership had been illegal, the dollar had been drastically debased. At its former lowest point in the summer of 1980, the dollar was worth only 1/850 an ounce of gold. It regained some value for a while, but for the past couple of years a dollar would only get you less than 1/1000 an ounce of gold (right now- 10 October 2012- it gets you less than 1/1763 $ per  ounce).

That was the story with a piece of paper that was merely standing in for a monetary metal. But what happens in the case of circulating coins actually composed of monetary metals?

Let’s look at quarters, dimes, nickels and pennies…

  • Prior  to 1964, U.S. quarters and dimes were 90% silver. From 1965 to 1970 half dollars were 40% silver “clad” over a copper-nickel or “cupronickel” mix. Now quarters and dimes and half dollars have no silver in them at all. They are now entirely copper and nickel, but only enough to get a little      more than 1/4 their face value.
  • Prior  to 1983, U.S. pennies were 95% copper and 5% zinc. In 1982 we started getting pennies made of 97.5% zinc with only 2.5% copper plating. Since      1983 every new penny has had this composition.
  • The U.S. nickel has been cupronickel since 1946:      75% copper and 25% nickel with trace amounts of manganese. But that’s      probably about to change…

Why are quarters and dimes no longer silver? Why is the penny no longer mostly copper? And why will the nickel likely follow suit fairly soon?

Now thanks to waves of money and credit expansion from the Federal Reserve, silver (and gold) is pushing back toward its old highs. These bags of so-called “junk” silver are trading at more than 20 times their face value. They may hit 30 times face value again…and beyond…”
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13)  Mass Inflation Ahead — Save Your Nickels!
Google: Nickels to be replaced in 2013?, see also, <http://www.survivalblog.com/nickels.html&gt;

__a)  The disappearance of 90% silver coins from circulation in the US in the mid-1960s beautifully illustrated Gresham’s Law: “Bad Money Drives Out Good.” People quickly realized that the debased copper sandwich coins were bogus, so anyone with half a brain saved every pre-’65 (90% silver) coin that they could find.
__b)  The nickel, in American usage, is a five-cent coin issued by the United States Mint. Composed of 75% copper and 25% nickel, the piece has been struck since 1866.
__c)  In the first decade of the 21st century, commodity prices for copper and nickel, which make up the five-cent coin, rose dramatically, pushing the cost of manufacturing a nickel from 3.46 cents in fiscal year 2003 to 11.18 cents in fiscal year 2011. In an attempt to avoid losing large quantities of circulating nickels to melting, the United States Mint introduced new interim rules on December 14, 2006, that criminalized the melting and export of cents (which as of 2011 cost 2.41 cents to produce) and nickels.
__d) Mint Director Henrietta Fore in 2004 asked Congress to fund research into lower-cost alternatives to present coinage metals. Although the initiative lapsed when she left office in 2005, in 2010, Congress passed the Coin Modernization, Oversight, and Continuity Act, directing the Mint to explore alternatives to the present compositions of the six denominations, from cent to dollar. In 2011, the Mint awarded a contract to study the issue to Concurrent Technologies Corporation of Johnstown, Pennsylvania. Although the contract does not expire until 2013, under the legislation, the Mint is to provide a detailed report to Congress and to the Treasury Secretary by December 14, 2012. The Mint expects demand for nickels in commerce to increase from 840 million needed in Fiscal Year 2011 to 1.08 billion in 2015
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14.  Superbull gold move “you ain’t seen nothing, yet”
http://www.marketoracle.co.uk/Article36766.html
We are at the point in the paper currency cycle where for the price of Gold it is risk off, Fed management out of the way, and time for Gold to go into free-rise to start to devalue the huge debts in earnest and to balance the budget. As Gold rises in a parabola on the arithmetic chart, each leg runs higher at a more acute angle.

We have reached the point in the cycle where Gold is in a parabolic rise on the Log Chart, as the Dollar goes through parabolic printing. In Gold’s SuperBull, the 45 degree angle climb comes off of a “tilted base or channel” which gives the rise a more vertical flare.

“This line is no line in sand, but rather it is an event horizon that every reader should print out and paste on the wall behind their trading platform. However they will not. In the heat of emotion the gold community will be selling their children to buy gold as it over runs $4500.”
……….Jim Sinclair  (Precious metals specialist, commodities and foreign currency trader; founded the Sinclair Group of Companies in 1977; served as a Precious Metals Advisor to Hunt Oil and the Hunt family; Member of the Executive Committee of two New York Stock Exchange firms.) <http://www.jsmineset.com/&gt;

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