Does The Constitution Call For A Public Banking System?Submitted by Ralph Waldo on Wed, 01/21/2009 - 20:08
Is it possible the founding fathers envisioned a public banking system where the Congress coins, issues and regulates while the States run the banks? Consider the following two excerpts from the constitution:
Section 8 - The Congress shall have Power To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
The Tenth Amendment:
The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.
Now consider the words of Thomas Jefferson:
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."
Most people think private enterprise is always the better choice. But I ask, aren’t we currently suffering from the very effects of "private banking" that Jefferson tried to warn us about? Could a public banking system where the congress issues the currency and the states run non-profit banks actually be what the founding fathers envisioned? It would after all:
1. Eliminate the "private" Federal Reserve and it’s undue influence
2. Eliminate the enormous profits of "private banks" that transfer wealth upwards via the fractional reserve system.