Comment: The Rothchilds didn't fund the Frist Bank of United States

(See in situ)


The Rothchilds didn't fund the Frist Bank of United States

As a matter of fact the bank had trouble raising the initial capital to start the bank and Robert Morris embezzled it…. This comes straight from Ron Paul’s book "A Case for Gold"

Three days after he become Superintendent of Finance, Morris submitted a plan to establish a central bank. A year later, in 1782, The Bank of North America was born, with Morris at the helm.

The Bank was the first fractional-reserve commercial bank in the United States, as well as a privately-owned central bank, on the model of the Bank of England. It was granted a monopoly license to issue paper money. In exchange for this monopoly, the Bank would, as Paul and Lehrman describe, "graciously lend most of its newly-created money to the federal government to purchase public debt and be reimbursed by the hapless taxpayer." And lend it did: $12 million to the Congress, which was also headed by Robert Morris.

At first, Morris was unable to raise the required amount of specie capital to start the Bank. Then,according to Paul and Lehrman, "in an act tantamount to embezzlement, [Morris] simply appropriated specie loaned to the U.S. by France and invested it for the government in his own Bank." This was typical of Morris's actions during the war.

http://mises.org/freemarket_detail.aspx?control=261