Why Hamilton's death didn't come soon enough!!!!!! Jefferson and other great founders adamantly opposed Hamilton's push to establish a strong Central all powerful bank! Knowing that would lead to an all powerful Central banking system that would eventually rob the citizens and wield enormous political power which would thus pursue policies robbing citizens of their rights. As we now get to see the evidence of the absolute correctness of those founders 's predictions. -Tyr |
The Founding of the Fed |
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1791: The First Bank of the United States |
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- After Alexander Hamilton spearheaded a movement advocating the creation of a central bank, the First Bank of the United States was established in 1791.
- The First Bank of the United States had a capital stock of $10 million, $2 million of which was subscribed by the federal government, while the remainder was subscribed by private individuals. Five of the 25 directors were appointed by the U.S. government, while the 20 others were chosen by the private investors in the Bank.
- The First Bank of the United States was headquartered in Philadelphia, but had branches in other major cities. The Bank performed the basic banking functions of accepting deposits, issuing bank notes, making loans and purchasing securities. It was a nationwide bank and was in fact the largest corporation in the United States. As a result of its influence, the Bank was of considerable use to both American commerce and the federal government.
- However, the Bank's influence was frightening to many people. The Bank's charter ran for twenty years, and when it expired in 1811, a proposal to renew the charter failed by the margin of a single vote in each house of Congress. Chaos quickly ensued, brought on by the War of 1812 and by the lack of a central regulating mechanism over banking and credit.
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1816: The Second Bank of the United States |
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- The situation deteriorated to such an extent that in 1816, a bill to charter a Second Bank of the United States was introduced in Congress. This bill narrowly passed both houses and was signed into law by President James Madison. Henry Clay, Speaker of the House, cited the "force of circumstance and the lights of experience" as reasons for this realization of the importance of a central bank to the U.S. economy.
- The Second Bank of the United States was similar to the first, except that it was much larger; its capital was not $10 million, but $35 million. As with the First Bank of the United States, the charter was to run for 20 years, one-fifth of the stock was owned by the federal government and one-fifth of the directors were appointed by the President.
- This bank was also similar to its predecessor in that it wielded immense power. Many citizens, politicians and businessmen perceived it as a menace to both themselves and U.S. democracy. One notable opponent was President Andrew Jackson, who, in 1829, when the charter still had seven years to run, made clear his opposition to the Bank and to the renewal of its charter. Jackson's argument rested on his belief that "such a concentration of power in the hands of a few men irresponsible to the people" was dangerous. This attack on the Bank's power drew public support, and when the charter of the Second Bank of the United States expired in 1836, it was not renewed. Read more at---
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------- http://www.newyorkfed.org/aboutthefe...y_article.html
18 U.S. Code § 2381-Treason Whoever, owing allegiance to the United States, levies war against them or adheres to their enemies, giving them aid and comfort within the United States or elsewhere, is guilty of treason and shall suffer death, or shall be imprisoned not less than five years and fined under this title but not less than $10,000; and shall be incapable of holding any office under the United States.