Thomas Jefferson 's infamous central bank quoteSubmitted by theobjectivistherald on Fri, 10/28/2011 - 03:13
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
This quote has been attributed to Thomas Jefferson, but there is absolutely no documentation to support this as a quote by Jefferson himself.
There has been much debate about this here on the forums and elsewhere, and I felt it necessary to share this link to a well documented letter from Thomas Jefferson to John Wayles Eppes dated June 24, 1813. This letter was written during the war of 1812 and it is clear that Jefferson was attempting to find ways to fund said war.
If you read the letter, I believe that Jefferson indeed had no love for private banks:
"But this [the issuance of currency by the government and backed by coinage],the only resource which the government could command with certainty, the States have unfortunately fooled away, nay corruptly alienated to swindlers and shavers, under the cover of private banks. Say, too, as an additional evil, that the disposal funds of individuals, to this great amount, have thus been withdrawn from improvement and useful enterprise, and employed in the useless, usurious and demoralizing practices of bank directors and their accomplices."
Jefferson goes on to say:
"It is not easy to estimate the obstacles which, in the beginning, we should encounter in ousting the banks from their possession of the circulation; but a steady and judicious alternation of emissions and loans, would reduce them in time."
There are some who have even suggested that Jefferson was in favor of central private banking. I believe this letter proves otherwise.
Also I would like to add that Article I. Section 8 of the United States constitution explicitly states that Congress shall have the power to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.
Therefore a private central bank issuing the currency and lending it back at interest is a violation to the Constitution of the United States of America, and a threat to our sovereignty.