- The following historical story is taken from a radio
address given by Congressman Charles G. Binderup of Nebraska, some 50 years
ago and was reprinted in Unrobing the Ghosts of Wall Street:
- Colonies More Prosperous Than The Home Country
- Before the American War for Independence in 1776, the
colonized part of what is today the United States of America was a possession
of England. It was called New England, and was made up of 13 colonies,
which became the first 13 states of the great Republic. Around 1750, this
New England was very prosperous. Benjamin Franklin was able to write:
- "There was abundance in the Colonies, and peace
was reigning on every border. It was difficult, and even impossible, to
find a happier and more prosperous nation on all the surface of the globe.
Comfort was prevailing in every home. The people, in general, kept the
highest moral standards, and education was widely spread."
- When Benjamin Franklin went over to England to represent
the interests of the Colonies, he saw a completely different situation:
the working population of this country was gnawed by hunger and poverty.
"The streets are covered with beggars and tramps," he wrote.
He asked his English friends how England, with all its wealth, could have
so much poverty among its working classes.
- His friends replied that England was a prey to a terrible
condition: it had too many workers! The rich said they were already overburdened
with taxes, and could not pay more to relieve the needs and poverty of
this mass of workers. Several rich Englishmen of that time actually believed,
along with Mathus, that wars and plague were necessary to rid the country
from man-power surpluses.
- Franklin's friends then asked him how the American Colonies
managed to collect enough money to support their poor houses, and how they
could overcome this plague of pauperism. Franklin replied:
- "We have no poor houses in the Colonies; and if
we had some, there would be nobody to put in them, since there is, in the
Colonies, not a single unemployed person, neither beggars nor tramps."
- Thanks To Free Money Issued By The Nation
- His friends could not believe their ears, and even less
understand this fact, since when the English poor houses and jails became
too cluttered, England shipped these poor wretches and down-and- outs,
like cattle, and discharged, on the quays of the Colonies, those who had
survived the poverty, dirtiness and privations of the journey. At that
time, England was throwing into jail those who could not pay their debts.
They therefore asked Franklin how he could explain the remarkable prosperity
of the New England Colonies. Franklin replied:
- "That is simple. In the Colonies, we issue our own
paper money. It is called 'Colonial Scrip.' We issue it in proper proportion
to make the goods and pass easily from the producers to the consumers.
In this manner, creating ourselves our own paper money, we control its
purchasing power and we have no interest to pay to no one."
- The Bankers Impose Poverty
- The information came to the knowledge of the English
Bankers, and held their attention. They immediately took the necessary
steps to have the British Parliament to pass a law that prohibited the
Colonies from using their scrip money, and then ordered them to use only
the gold and silver money that was provided in sufficient quantity by the
English bankers. Then began in America the plague of debt-money, which
has never since brought so many curses to the American people.
- The first law was passed in 1751, and then completed
by a more restrictive law in 1763. Franklin reported that one year after
the implementation of this prohibition on Colonial money, the streets of
the Colonies were filled with unemployment and beggars, just like in England,
because there was not enough money to pay for the goods and work. The circulating
medium of exchange had been reduced by half.
- Franklin added that this was the original cause of the
American Revolution - and not the tax on tea nor the Stamp Act, as it has
been taught again and again in history books. The financiers always manage
to have removed from school books all that can throw light on their own
schemes, and damage the glow that protects their power.
- Franklin, who was one of the chief architects of the
American independence, wrote it clearly:
- "The Colonies would gladly have borne the little
tax on tea and other matters had it not been the poverty caused by the
bad influence of the English bankers on the Parliament, which has caused
in the Colonies hatred of England and the Revolutionary War."
- This point of view of Franklin was confirmed by great
statesmen of his era: John Adams, Jefferson, and several others. A remarkable
English historian, John Twells, wrote, speaking of the money of the Colonies,
the Colonial Scrip:
- "It was the monetary system under which America's
Colonies flourished to such an extent that Edmund Burke was able to write
about them: 'Nothing in the history of the world resembles their progress.
It was a sound and beneficial system, and its effects led to the happiness
of the people.'" John Twells adds:
- "In a bad hour, the British Parliament took away
from America its representative money, forbade any further issue of bills
of credit, these bills ceasing to be legal tender, and ordered that all
taxes should be paid in coins. Consider now the consequences: this restriction
of the medium of exchange paralyzed all the industrial energies of the
people. Ruin took place in these once flourishing Colonies; most rigorous
distress visited every family and every business, discontent became desperation,
and reached a point, to use the words of Dr. Johnson, when human nature
rises up and assets its rights."
- Another writer, Peter Cooper, expresses himself along
the same lines. After having said how Franklin had explained to the London
Parliament the cause of the prosperity of the Colonies, he wrote:
- "After Franklin gave explanations on the true cause
of the prosperity of the Colonies, the Parliament exacted laws forbidding
the use of this money in the payment of taxes. This decision brought so
many drawbacks and so much poverty to the people that it was the main cause
of the Revolution. The suppression of the Colonial money was a much more
important reason for the general uprising than the Tea and Stamp Act."
- Today, in America as well as in Europe, we are under
the regime of the Scrip of the Bankers instead of the scrip of the nation.
Hence the public debts, everlasting interest charges, taxes that plunder
purchasing power, with the only result being a consolidation of the financial
- There is only one cure for America's ultimate financial
collapse and that is for Congress to exercise Clause 30 of the "Federal"
Reserve Act, buy the outstanding shares of stock, shut down this unconstitutional
system and sell off their assets to reimburse the people of this nation
for this unspeakable theft of their wealth. This is the first installment
of postings on this issue, new ones will be put up as soon as manpower