MONETARY HISTORY CALENDAR: May 31 - June 6
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Greg Coleridge
May 31, 2020, 9:47:56 AM5/31/20
to The American Monetary Institute
MONETARY HISTORY CALENDAR
May 31 - June 6
---------------------------------
MAY 31
1857 – BIRTH OF POPE PIUS XI
“For what will it profit men that a more prudent distribution and use of riches make it possible for them to gain even the whole world, if thereby they suffer the loss of their own souls? What will it profit to teach them sound principles in economics, if they permit themselves to be so swept away by selfishness, by unbridled and sordid greed, that, ‘hearing the Commandments of the Lord, they do all things contrary.”
JUNE 1
1938 – BIRTH OF HERMAN DALY, ECONOMIST, AUTHOR OF “STEADY STATE ECONOMICS”
“If our present banking system, in addition to fraudulent and corrupt, also seems “screwy” to you, it should. Why should money, a public utility (serving the public as medium of exchange, store of value, and unit of account), be largely the by-product of private lending and borrowing?...Why should the public pay interest to the private banking sector to provide a medium of exchange that the government can provide at little or no cost? Why should seigniorage (profit to the issuer of fiat money) go largely to the private sector rather than entirely to the government (the commonwealth)?
“Is there not a better away? Yes, there is. We need not go back to the gold standard. Keep fiat money, but move from fractional reserve banking to a system of 100% reserve requirement…Banks would no longer be able to live the alchemist’s dream by creating money out of nothing and lending it at interest.”
From “Nationalize Money, Not Banks”
JUNE 2
1995 – PAPERBACK PUBLICATION OF "THE CHICAGO PLAN & NEW DEAL BANKING REFORM" BY RONNIE PHILLIPS
This work presents a comprehensive history and evaluation of the role of the 100 percent reserve plan in the banking legislation of the New Deal reform era from its inception in 1933 to its re-emergence in the current financial reform debate in the US.
JUNE 3
1864 – PASSAGE OF NATIONAL BANK ACT
The Act superseded the National Bank Act of 1863. Both Acts were pushed by bankers and their supporters to undercut Greenbacks. A system of nationally chartered, private/corporate banks was established and expanded. These new national banks were provided with virtually tax-free status and subsidized through purchasing of government bonds with discounted Greenbacks. These banks were permitted to then create “US Bank Notes” (debt-based money) which entered the money supply – to be used in payment of taxes and duties only. This system enriched banks and worked to wean the US away from Greenbacks (debt free money). The Act limited the issuance of Greenbacks to $300 million
JUNE 4
1910 – BIRTH OF ROBERT B. ANDERSON, SECRETARY OF THE TREASURY UNDER PRESIDENT DWIGHT D. EISENHOWER
"When a bank makes a loan it simply adds to the borrowers’ deposit account in the bank by the amount of the loan. The money is not taken from anyone else's deposit; it was not previously paid in to the bank by anyone. It's new money, created by the bank for the use of the borrower."
2019 – ONLINE POSTING OF “THE MAJOR PROBLEMS WITH BANK MONEY CREATION” BY TIM DI MUZIO
“Let’s take a closer at the problems with how we create most new money.
“The vast majority of the money supply in modern economies is created by commercial banks when they make loans to willing borrowers (individuals, businesses and governments). While there are other limitations we could consider, what this already suggests is that the money supply in capitalist economies is already limited by the amount of willing borrowers in the economy and the bank’s assessment of the risks associated with lending. Obviously the banks want most of their loans paid back with interest. Credit cards are likely the most important exception here (and possibly mortgages now) since commercial banks adore what they call ‘revolvers’ – those who go into debt on their credit cards, pay at least the minimum monthly payment but never fully pay off their credit card(s). The interest is a constant flow of income to commercial banks. So the first problem is that the money supply is largely dependent on willing borrowers and the bank’s assessment of risk…
“The Need for Monetary Reform
“So based on the deficiencies in the way we produce money there is a clear need for monetary reform. But this will be a Herculean task as it demands no less than reimagining the monetary and fiscal system that is the legacy of the creation of the first ‘national’ debt in England. As I see it there are three chief obstacles in correcting the present way in which we produce new money.”
https://www.monetaryalliance.org/the-major-problems-with-bank-money-creation/
JUNE 5
1883 – BIRTH OF JOHN MAYNARD KEYNES, ECONOMIST
“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some…As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
2013 – STATEMENT BY POPE FRANCIS
"Man is not in charge today, money is in charge, money rules. God our Father did not give the task of caring for the earth to money, but to us, to men and women: we have this task! Instead, men and women are sacrificed to the idols of profit and consumption: it is the ‘culture of waste."
JUNE 6
1934 – CHICAGO PLAN INTRODUCED IN THE US CONGRESS
The “Chicago Plan” was a proposal developed by several prominent economists directed at President Roosevelt to end the Great Depression. One hundred and fifty academic economists signed the Plan; another 40 approved it with reservations. Main features: 1. Only the government would create money. 2. The Plan separated the loan-making function, which can belong in private banks, from the money-creation function, which belongs in government. 3. The proposal recognized the distinction between money and credit. Senator Bronson Cutting (R, NM) introduced The Plan in Congress (S. 3744). In several respects, it was the precursor to the National Emergency Employment Act (HR 6550) introduced by Rep. Dennis Kucinich in 2010, and reintroduced as HR 2990 in 2011.
2019 – ONLINE POSTING OF “THE COMING MONETARY TRANSFORMATION: REVOLUTION OR EVOLUTION?” BY JOE BONGIOVANNI
“Surely the answer to that question must depend on your personal views, like beauty – lying in the eye of the beholder. But your particular answer matters not. A complete money-change is coming. If you’re paying attention, you can feel it in the air. So, call it what you want.
“Many involved today in central banking, monetary policy, politics and, yes, business-economic journalism in all media, are gathering their understandings of this ‘something very new’ happening about our money. What formation this new money system construct ultimately takes remains to be determined. It’s completely up to us. Indeed, a new National Monetary Commission might again be in order – to help us sort things out.”
https://www.monetaryalliance.org/the-coming-monetary-transformation-revolution-or-evolution/
02
---------------------------------
Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is the original project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. It is currently updated by Greg Coleridge. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetary...@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/
May 31 - June 6
---------------------------------
MAY 31
1857 – BIRTH OF POPE PIUS XI
“For what will it profit men that a more prudent distribution and use of riches make it possible for them to gain even the whole world, if thereby they suffer the loss of their own souls? What will it profit to teach them sound principles in economics, if they permit themselves to be so swept away by selfishness, by unbridled and sordid greed, that, ‘hearing the Commandments of the Lord, they do all things contrary.”
JUNE 1
1938 – BIRTH OF HERMAN DALY, ECONOMIST, AUTHOR OF “STEADY STATE ECONOMICS”
“If our present banking system, in addition to fraudulent and corrupt, also seems “screwy” to you, it should. Why should money, a public utility (serving the public as medium of exchange, store of value, and unit of account), be largely the by-product of private lending and borrowing?...Why should the public pay interest to the private banking sector to provide a medium of exchange that the government can provide at little or no cost? Why should seigniorage (profit to the issuer of fiat money) go largely to the private sector rather than entirely to the government (the commonwealth)?
“Is there not a better away? Yes, there is. We need not go back to the gold standard. Keep fiat money, but move from fractional reserve banking to a system of 100% reserve requirement…Banks would no longer be able to live the alchemist’s dream by creating money out of nothing and lending it at interest.”
From “Nationalize Money, Not Banks”
JUNE 2
1995 – PAPERBACK PUBLICATION OF "THE CHICAGO PLAN & NEW DEAL BANKING REFORM" BY RONNIE PHILLIPS
This work presents a comprehensive history and evaluation of the role of the 100 percent reserve plan in the banking legislation of the New Deal reform era from its inception in 1933 to its re-emergence in the current financial reform debate in the US.
JUNE 3
1864 – PASSAGE OF NATIONAL BANK ACT
The Act superseded the National Bank Act of 1863. Both Acts were pushed by bankers and their supporters to undercut Greenbacks. A system of nationally chartered, private/corporate banks was established and expanded. These new national banks were provided with virtually tax-free status and subsidized through purchasing of government bonds with discounted Greenbacks. These banks were permitted to then create “US Bank Notes” (debt-based money) which entered the money supply – to be used in payment of taxes and duties only. This system enriched banks and worked to wean the US away from Greenbacks (debt free money). The Act limited the issuance of Greenbacks to $300 million
JUNE 4
1910 – BIRTH OF ROBERT B. ANDERSON, SECRETARY OF THE TREASURY UNDER PRESIDENT DWIGHT D. EISENHOWER
"When a bank makes a loan it simply adds to the borrowers’ deposit account in the bank by the amount of the loan. The money is not taken from anyone else's deposit; it was not previously paid in to the bank by anyone. It's new money, created by the bank for the use of the borrower."
2019 – ONLINE POSTING OF “THE MAJOR PROBLEMS WITH BANK MONEY CREATION” BY TIM DI MUZIO
“Let’s take a closer at the problems with how we create most new money.
“The vast majority of the money supply in modern economies is created by commercial banks when they make loans to willing borrowers (individuals, businesses and governments). While there are other limitations we could consider, what this already suggests is that the money supply in capitalist economies is already limited by the amount of willing borrowers in the economy and the bank’s assessment of the risks associated with lending. Obviously the banks want most of their loans paid back with interest. Credit cards are likely the most important exception here (and possibly mortgages now) since commercial banks adore what they call ‘revolvers’ – those who go into debt on their credit cards, pay at least the minimum monthly payment but never fully pay off their credit card(s). The interest is a constant flow of income to commercial banks. So the first problem is that the money supply is largely dependent on willing borrowers and the bank’s assessment of risk…
“The Need for Monetary Reform
“So based on the deficiencies in the way we produce money there is a clear need for monetary reform. But this will be a Herculean task as it demands no less than reimagining the monetary and fiscal system that is the legacy of the creation of the first ‘national’ debt in England. As I see it there are three chief obstacles in correcting the present way in which we produce new money.”
https://www.monetaryalliance.org/the-major-problems-with-bank-money-creation/
JUNE 5
1883 – BIRTH OF JOHN MAYNARD KEYNES, ECONOMIST
“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some…As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
2013 – STATEMENT BY POPE FRANCIS
"Man is not in charge today, money is in charge, money rules. God our Father did not give the task of caring for the earth to money, but to us, to men and women: we have this task! Instead, men and women are sacrificed to the idols of profit and consumption: it is the ‘culture of waste."
JUNE 6
1934 – CHICAGO PLAN INTRODUCED IN THE US CONGRESS
The “Chicago Plan” was a proposal developed by several prominent economists directed at President Roosevelt to end the Great Depression. One hundred and fifty academic economists signed the Plan; another 40 approved it with reservations. Main features: 1. Only the government would create money. 2. The Plan separated the loan-making function, which can belong in private banks, from the money-creation function, which belongs in government. 3. The proposal recognized the distinction between money and credit. Senator Bronson Cutting (R, NM) introduced The Plan in Congress (S. 3744). In several respects, it was the precursor to the National Emergency Employment Act (HR 6550) introduced by Rep. Dennis Kucinich in 2010, and reintroduced as HR 2990 in 2011.
2019 – ONLINE POSTING OF “THE COMING MONETARY TRANSFORMATION: REVOLUTION OR EVOLUTION?” BY JOE BONGIOVANNI
“Surely the answer to that question must depend on your personal views, like beauty – lying in the eye of the beholder. But your particular answer matters not. A complete money-change is coming. If you’re paying attention, you can feel it in the air. So, call it what you want.
“Many involved today in central banking, monetary policy, politics and, yes, business-economic journalism in all media, are gathering their understandings of this ‘something very new’ happening about our money. What formation this new money system construct ultimately takes remains to be determined. It’s completely up to us. Indeed, a new National Monetary Commission might again be in order – to help us sort things out.”
https://www.monetaryalliance.org/the-coming-monetary-transformation-revolution-or-evolution/
02
---------------------------------
Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is the original project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. It is currently updated by Greg Coleridge. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetary...@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/
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