The Forgotten History of Money
by
Dick Bachert (with a humble bow to my friend F.Tupper Saussy and his research in “The Miracle on Main Street”)
Part 3 of 3 parts

Some additional quotations to ponder:

"All the perplexities, confusion and distress in America arise not from defects in the constitution or confederation, nor from a want of honor or virtue so much as from downright ignorance of the nature of coin, credit and circulation" (John Adams in a letter to Thomas Jefferson, 1787)

"I deny the power of the general government to making paper money, or anything else, a legal tender." (Thomas Jefferson)

"You have been doubtless been informed, from time to time, of the happy progress of our affairs. The principal difficulties seem in great measure to have been surmounted. Our revenues have been considerably more productive than it was imagined they would be. I mention this to show the spirit of enterprise that prevails." (George Washington in a letter to the Marquis de LaFayette, June 3, 1790 AFTER the United States Constitution prohibited un backed paper money at Article 1, Section 10)

"Since the federal constitution has removed all danger of our having a paper tender, our trade is advanced fifty percent. Our monied people can trust their cash abroad, and have brought their coin into circulation." (December 16, 1789 edition of The Pennsylvania
Gazette)

"Our country, my dear sir, is fast progressing in its political importance and social happiness." (George Washington in a letter to the Marquis de LaFayette, March 19, 1791)

"The United States enjoys a sense of prosperity and tranquility under the new government that could hardly have been hoped for." (George Washington in a letter to Catherine Macaulay Graham, July 19,1791)

"Tranquility reigns among the people with that disposition towards the general government which is likely to preserve it. Our public credit stands on that high ground which three years ago would have been considered as a species of madness to have foretold." (George Washington in a letter to David Humphreys, July 20, 1791)

"It is apparent from the whole context of the Constitution as well as the times which gave birth to it, that it was the purpose of the Convention to establish a currency consisting of the precious metals. These were adopted by a permanent rule excluding the use of a perishable medium of exchange, such as certain agricultural commodities recognized by the statutes of some States as tender for debts, or the still more pernicious expedient of PAPER CURRENCY." (Andrew Jackson, 8th Annual Message to Congress, December 5, 1836)

Despite what you were taught in school, the historical record is crystal clear: America was to have been spared the destructive effects of an un backed paper money system. Most of the problems we face today can be traced to what Andrew Jackson called "the pernicious expedient of paper money".

History teaches that an "artificial" money creates an "artificial" world where the price for some items...even our most popular welfare "program"...can be deferred to future generations (our $11 trillion national debt) or paid with a "money" created out of thin air which robs the value from the money we might be unfortunate enough to have in our pockets at that moment (inflation).

And one thing you must remember about inflation is that it is not an "equal opportunity" destroyer: Those first in line to get their hands on the new money rolling off the presses (the modern friends of paper money) have a chance to spend it before it loses its value. The little people (that’s us, folks!) farthest down the line are the ones who feel the fullest effects of this destructive process.

We have constructed an economic house of cards and ALL such constructions eventually fall. So will this one. If not in OUR lifetime, certainly in the lifetime of your children or grandchildren.

Think about that as you struggle to “forget” what you’ve just read.