11. FIRST BANK OF THE UNITED STATES
In 1790, less than three years after the Constitution had been signed, the Money Changers struck again. The newly-appointed first Secretary of the Treasury, Alexander Hamilton proposed a bill to the Congress calling for a new privately-owned central bank. Coincidentally, that was the very year that Meyer Rothschild made his pronouncement from his flagship bank in Frankfort:
"Let me issue and control a nation's money and I care not who writes its laws."
Alexander Hamilton was a tool of the international bankers. He wanted to create another private central bank, the Bank of the United States, and did so. He convinced Washington to sign the bill over Washington's reservations and over Jefferson's and Madison's opposition.
To win over Washington, Hamilton developed the "implied powers" argument used so often since to eviscerate the Constitution. Jefferson correctly predicted the dire consequences of opening such a Pandora's box which would allow judges to "imply" whatever they wished.
Interestingly, one of Hamilton's first jobs after graduating from law school in 1782 was as an aide to Robert Morris, the head of the Bank of North America. In fact, the year before, Hamilton had written Morris a letter, saying: "A national debt, if it is not excessive, will be to us a national blessing," A blessing to whom?
After a year of intense debate, in 1791, Congress passed Hamilton's bankbill and gave it a 20-year charter. The new bank was to be called the First Bank of the United States, or BUS. Thus the third American Bank War began.
"Never was a great historic event followed by a more feeble sequel. A nation arises to claim for itself liberty and sovereignty. It gains both of these by immense sacrifice of blood and treasure. Then, when victory is gained and secure, it hands the nation 's credit - that is to say a national treasure - over to private individuals, to do as they please with." - Alexander Del Mar, historian
The first Bank of the United States was headquartered in Philadelphia. The Bank was even given authority to print currency and make loans, based on fractional reserves, even though 80% of its stock would be held by private investors. The other 20% would be purchased by the U.S. Government, but the reason was not to give the government a piece of the action, it was to provide the initial capital for the other 80% owners.
As with the old bank of North America and the Bank of England before that, the stockholders never paid the full amount for their shares. The U.S. government put up their initial $2,000,000 in cash, then the Bank through the old magic of fractional reserve lending, made loans to its charter investors so they could come up with the remaining $8,000,000 in capital needed for this risk-free investment.
Like the Bank of England, the name of the Bank of the United States was deliberately chosen to hide the fact that it was privately controlled. And like the Bank of England, the names of the investors in the Bank were never revealed.
"Under the surface, the Rothschilds long had a powerful influence in dictating American financial laws. The law records show that they were the power in the old Bank of the United States" - Myers, History of the GreatA merican Fortunes.
The Bank was promoted to Congress as a way to bring stability to the banking system and to eliminate inflation. So what happened? Over the first five years, the U.S. government borrowed $8.2 million from the Bank of the United States. In that period, prices rose by 72%.
Jefferson, as the new Secretary of State, watched the borrowing with sadness and frustration, unable to stop it.
"I wish it were possible to obtain a single amendment to our Constitution - taking from the federal government the power of borrawing."
President Adams denounced the issuance of private bank notes as a fraud upon the public. He was supported in this view by all conservative opinion of his time. Why continue to farm out to private banks, for nothing, a prerogative of government?
Millions of Americans feel the same way today. They watch in helpless frustration as the Federal government borrows the American taxpayer into oblivion; borrowing from private banks and the rich the money the government has the authority and duty to issue itself, without debt.
So, although it was called the First Bank of the U.S., it was not the first attempt at a privately-owned central bank in this country. As with the first two, the Bank of England and the Bank of North America, the government put up the cash to get this private bank going, then the bankers loaned that money to each other to buy the remaining stock in the bank.
It was a scam, plain and simple. And they wouldn't be able to get away with it for long, but first we have to travel back to Europe to see how a single man was able to manipulate the entire British economy by obtaining the first news of Napoleon's final defeat.
Acknowledgement and credits
The Money Masters: How International Bankers Gained Control of America
Produced by Patrick S. J. Carmack
Directed by Bill Still
Royalty Production Company 1998