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Summary and Draft Legislation to Restore the Original Bank of the United States
27 February 2013
Just as the latest revelations about the bankruptcy of the U.S. Federal Reserve begin to hit the press, the LaRouche Political Action Committee (LPAC) has released Draft Legislation to Restore the Original Bank of the United States. The legislation, prefaced by an introductory discussion of the bill’s basic principles, is part of the three-part emergency program which LaRouche PAC has demanded be implemented immediately, in order to avoid the destruction of the nation by the British financial oligarchy’s program of genocidal hyperinflation and austerity.
In the introduction, author Michael Kirsch lays out the fundamental principle of the credit system, as put into practice by the U.S.’s first Treasury Secretary Alexander Hamilton, as opposed to the monetarist system that the British financial empire has imposed on the world. "Monetarism constantly looks backward to the past, with the aim of monetizing the results of past production, rather than the creation of new wealth," Kirsch writes. "In the credit system, the measure of value is not capital or money, but the mental powers which increase the productive powers of labor, which in turn increase productive output, thereby increasing the value of good, labor, and capital." Having laid out the principles, Kirsch reviews the history of the fight within the U.S. over Hamilton’s credit system, including its sabotage by President Thomas Jefferson, its revival by Mathew Carey, its burial by British agent Andrew Jackson, and the heroic fights to restore it, even without a National Bank, by Presidents Lincoln and Franklin Roosevelt. The concept is strikingly put by one of Lincoln’s economists William Elder, who wrote in 1871: "A society without a credit system is simply savage. A business economy, whose capital should be limited to material property, would be a despotism of property... as dead as the insensate earth, where all that is precious is in the fixity of crystals, and all that is common, is as incapable as the rocks in which the gold and silver are coffined." Kirsch then summarizes the elements of the national bank legislation, which would be capitalized with a portion of Federal debt, as well as state and municipal bonds, and lend for infrastructure, industry, and manufacturing, following Hamilton’s principle of lending to advance the productive powers of labour, not serving as a money-production machine, like the Federal Reserve. The draft legislation then follows. |
