Consider the alternative monetary chaos.

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in response to reader comment: WSJ and the Fed

Submitted by Lyle (United States), Jun 28, 2010 16:02

After Jackson killed the Bank of the US the US had a period of monetary chaos. (Panic of 1837...) In the civil war currency was standardized and only national banks could issue it (a 10% tax on others issuing currency saw to that). Then it took several cases where JP Morgan saved the countries bacon, including the 1895 gold crisis and the 1907 panic. By 1907 Morgan was an old man and no similar person had emerged so the bankers got together and created the Federal Reserve with its regional banks. (Why did MO get two banks? to get the votes of the MO senators for the bill)

Do we want to go back to anyone issuing banknotes, or do we have to call JP Morgan back from the grave to provide a lender of last resort?

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Title By Date
WSJ and the Fed [137 words]BrettJun 28, 2010 12:53
↔ ⇒ Consider the alternative monetary chaos. [137 words]LyleJun 28, 2010 16:02

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