For a while now I’ve been meaning to write a thread on the first two Bank of the United States as well as other key events in history. I’ve even
mentioned this a few times in other threads in passing (usually in reference to trying to get a dedicated history forum *hint hint mods*). Well
recently, Wrabbit wrote a thread on Napoleon Bonaparte and it got me motivated to FINALLY do the full research on this topic and post my thread on
As you may be aware, the Federal Reserve isn’t the first privately owned bank that has owned and distributed our currency. It’s been tried twice
before under different names, The First Bank of the United States and The Second Bank of the United States (which will hereafter be referred to as
FBUS and SBUS respectively). To anyone who was unaware of this, well now you know.
Before I begin, I want to preface by saying that I do not intend to put my own spin or add any conspiracy theories. This is all mainstream history as
presented through biographies, Wikipedia, and other sources. This will also apply to any other historic threads I may present. The reason for this is
that I want to show that even the mainstream account of history can be just as dark and sinister as many of the craziest conspiracies on this site. If
you want as a reader and responder to this thread want to make your own connections, feel free, it is after all a conspiracy forum. One more thing, I
will list my sources at the end of the thread like a traditional research paper. So now onto the thread.
The First Bank of the United States
Supported and enacted by Alexander Hamilton through the expansion of executive powers as the Secretary of the Treasury in 1791 through the argument
that the government needed a national bank to pay its debts. The bank was part of a three part fiscal revamping of our government. However the bank
came with some conditions:
-The Bank would be a private company (only 20% or 1/5 of the company was owned by the government)
-The Bank would have a twenty year charter (1791 – 1811)
-The Bank, to avoid any appearance of impropriety, was required to do the following: forbidden to buy government bonds, have a mandatory rotation of
directors, and neither issue notes nor incur any debts beyond its capitalization
-Foreign stockholders could hold stocks but not vote
-The Secretary of the Treasury would be free to audit the books as frequently as once a week.
The Bank also needed an additional amount of funding to support it, so Hamilton suggested implementing a tariff on imported spirits and a duty on
domestic whiskey. This of course resulted in the Whiskey Rebellion. This isn’t surprising since the whole spirit of the Revolution was
anti-taxation, therefore the federal government imposing a tax on whiskey upset many distillers in West Pennsylvania. In any case the federal
government under the command of Hamilton squashed the Whiskey Rebellion and forced the distillers to pay the tax.
There was barely any objection to the bank in Congress. It did raise some concerns about Constitutionality, mostly from Thomas Jefferson who argued
that the Bank violated traditional property laws and that its relevance to Constitutional powers was rather weak. If the Constitution meant for there
to be a national bank, it would have been explicitly written in. James Madison, cited the tenth amendment saying that this was a matter of states’
rights. However, despite the objections, the decision to pass the bill making this Bank legal, fell on President George Washington, who Hamilton just
happened to be his personal confident so much so that it could be said that Washington thought of Hamilton as a son. You can guess how he voted.
The bank persisted for 20 years before Congress let its charter expire right before the War of 1812 (also called the Adams’ War or the Banker
, I wonder why…). Five years later, another bank was chartered, and we like to say that the Americans won the war of 1812… Yea right.
edit on 12-5-2014 by Krazysh0t because: (no reason given)