Friday, October 17, 2008

The battle on monetary policy never ends

Does this sound familiar to anyone?

"The paper-money system and its natural associations--monopoly and exclusive privileges--have already struck their roots too deep in the soil, and it will require all your efforts to check its further growth and to eradicate the evil. The men who profit by the abuses and desire to perpetuate them will continue to besiege the halls of legislation in the General Government as well as in the States, and will seek by every artifice to mislead and deceive the public servants. It is to yourselves that you must look for safety and the means of guarding and perpetuating your free institutions. In your hands is rightfully placed the sovereignty of the country, and to you everyone placed in authority is ultimately responsible."

- Andrew Jackson, 1837 (see Andrew Jackson and early Tennessee History by S.G. Heiskell, 1921)

He was the father of the Democratic Party, but I care that he was a populist.

As for the significance of Jackson's views on the same issue I keep bemoaning - monetary policy - Jackson was the only US President to kill a central bank:

After a titanic struggle, Jackson succeeded in destroying the Bank by vetoing its 1832 re-charter by Congress and by withdrawing U.S. funds in 1833. (

Some of you may recall this tell-all picture from grade school:

Now I'm not sure that we need to kill the Central Bank, but we definitely need to end fiat money and end the policy of inflating the currency by printing the money.

Printing more money won't solve our problems.

Tim White

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