The Creation of Money in the Colonies of America and Australia.

Extracted from Neil Bairds's News Report No. 878.
This file has been modified by; addition of extra information, in Section 2.
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3. Article
The Real Origins of the American Revolution.

Read this amazing historical story your teachers never taught you .... Much of the following historical material was taken from a radio address given a half century ago by the late Congressman Charles G. Binderup of Nebraska and, compiled by Mrs. Lucie Boulrice, 1133 Liberty, Springfield, MA01104.
For more information, you may write or call her at (413) 737-3080.
How America created it's own money in 1750.
Benjamin Franklin tells what made New England prosperous.

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Downloaded by a person whose apparent name is Geoff Muirden copied from; http://www.alga.oaktree.com/Franklin.htm
As of the year 2004 this oaktree site not available.

1). Colonies were more prosperous than the home country.

Before the Declaration of Independence (1776) and the war that followed, the colonized part of, what is now known as the United States of America, was a Crown possession of England. It was called New England and, was made up of 13 colonies, which became the original States of the great Republic.

In 1750, this New England was very prosperous. Benjamin Franklin wrote: "There was abundance in the Colonies, and peace reigned on every border. It was difficult, even impossible, to find a happier and more prosperous nation on all the surface of the globe. Comfort prevailed in every home. The people, in general, kept the highest moral standards, and education was widely spread.

When Franklin went over to England to represent the interests of the Colonies, he saw a completely different situation; the working population of the home country was gnawed by hunger and plagued by inescapable poverty.

"The Streets are covered with beggars and tramps" he wrote.

He asked his English friends how England, with all the wealth, could have so much poverty among the working classes. His friends replied that England was 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 great mass of workers. Several rich Englishmen of that time actually believed what economist Thomas Malthus later wrote, that wars and epidemic disease were necessary to rid the country from "manpower surpluses".

People in London asked Franklin how the American Colonies managed to collect enough money to support their poorhouses and, how they could overcome this plague of unemployment and pauperism.

Thanks to debt-free money issued by the colonial governments Franklin replied;
"We have no poorhouses in the Colonies and if we had some, there would be no one to put in them, since in the Colonies there is not a single unemployed person, not a beggar nor a tramp".

His friends could not believe their ears, or understand how this could be. They knew when the English poorhouses and jails became too cluttered, England shipped the wretched inmates like cattle, to be dumped on the quays of the Colonies if they survived the filth and privations of the sea voyage.

(In those days English debtors went to jail if they could not pay their debts and few escaped, since in jail they could not earn money).
Franklin's acquaintances, in view of all this, asked him how he could explain the remarkable prosperity of the New England Colonies.

Franklin told them: "Why, that is simple! In the Colonies, we issue our own paper money. It's called 'Colonial script'. We issue it to pay the Government's approved expenses and charities.
We make sure it's issued in proper proportion to make the goods pass easily from the producers to the consumers. In other words, we make sure there is always adequate money in circulation for the needs of the economy".

"In this manner, by creating ourselves our own paper money, we control its purchasing power, and we have no interest to pay, to anyone. You see, a legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. Thus, when your bankers here in England place money in circulation, there is always a debt principal to be returned and interest (usury) to be paid.

The result is that you have always too little credit in circulation to give the workers full employment. You do not have too many workers, you have too little money in circulation and that which circulates, all bears the endless burden of unpayable debt and usury".
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2). English Bankers impose poverty on the Colonies.

Franklin should not have been so free with his advice. which soon came to the attention of the powerful English Bankers. They quickly used their influence to have the British Parliament pass a law that prohibited the Colonies from using their Colonial Script money. The new law ordered them to use only credit redeemable in gold and silver coins that were provided in insufficient quantity by the banks of England. So began in America the plague of debt based money, which has ever since brought as many hardships to the American people, as it has to Europeans.

The first law regulating Colonial money was passed by the British Parliament 1751, then expanded by a more restrictive law in 1763.

Franklin reported that only one year after implementation of the prohibition on Colonial Script, the Streets of the Colonies were filled with unemployed and beggars, just like those he had seen in England, because there was not enough money to pay for their goods and work. The English Banker' new laws had reduced the circulating medium by half.

Franklin added that this was "the original and true cause of the American Revolution" and not the tax on tea or the Stamp Act, as has been taught our children for generations in history books. The financiers (bankers) of every generation manage to have removed from school books any information that can throw light on their own schemes and fraudulent actions that protect their power over the People.

Franklin, one of the chief architects of American Independence, put it clearly: "The Colonies would gladly have borne the little tax on tea and other matters had it not been for the poverty created by the bad influence of the English Bankers on the Parliament, which has caused in the Colonies hatred of england and the Revolutionary War".

Other great statesmen of that era, including Thomas Jefferson, John Adams and George Jackson confirmed this point of view held by Franklin: and later by Andrew Jackson and Martin Van Buren. Abraham Lincoln and John Kennedy both issued sovereign money, James Garfield tries, and all three died in office.

A remarkably honest English historian, John Twells, speaking of the money of the Colonies, their Colonial Script, wrote: "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 added: "In a bad hour, the British Parliament took away from America its own Script money, forbade any further issue of such bills of credit, these bills ceasing to be legal tender and ordered that all taxes should be paid in British 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 asserts its rights".

Another historical writer, Peter Cooper, expressed himself along the same lines. After saying how Franklin had explained to members of Parliament the reason for the prosperity of the Colonies, Cooper wrote: "After Franklin gave explanations on the true cause of the prosperity of the Colonies, the Parliament enacted laws forbidding the use of this money in the payment of taxes. This decree, clearly in the interest of the British bankers who stood behind the Crown, 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 Acts".
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The introduction of the Federal Reserve System in 1913.
The introduction of the Federal Reserve System in 1913 enabled the international bankers to consolidate their American financial powers. Banking chiefs, who were largely supported by the Rothschilds, who own the Bank of England, became the chairman of the first Federal Reserve Bank of New York. Following passage of The Federal Reserve Act, Warburg conspired with others in the US Congress to illegally ratify the 16th Amendment to the US Constitution after which Congress deemed it necessary to levy personal income tax on American citizens.
The legislation was required since the US government could no longer print money to finance it's operations due to the controlling forces of the international banking cartel.
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Why it is that we have graduated income tax in England?
It was because it was demanded by the banks as a condition of lending money to the Government.
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The Australian Constitution, Chapter V, The States.
115. A State shall not coin money, nor make anything but gold and silver coin a legal tender in payment of debts.
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3). DANGER! The Script of the bankers has taken over America.

As in the year 2004, in America as well as in Europe and Australia, we under the same regime of the Script of the bankers instead of the Script of the Sovereign Nations. Hence the enormous public debts, everlasting interest (usury) charges, taxes that plunder purchasing power and rob the production of the People, with the result being more and more consolidation of the financial dictatorship.

4). Where shall we start to correct the fraud of the bankers?

The first step in the monetary reform being advocated by more and more action groups of educated and intelligent people is precisely the replacement of the banks' debt money issued by the Constitutionally mandated sovereign Government of the Nation, The United States Congress and elsewhere, the British Parliament and similar governments. It is the duty of those governments to serve and protect their People, not allow financial robber barons to destroy them.

5). We must end the dictatorship of the moneyed interests.

It will soon become clear to you that we need to abolish the Federal Reserve Banking System as a privately owned central bank controlled partly by foreign interests. Cheque clearing must be taken over by the United States Treasury Department and the commercial banks of our system must no longer be permitted to create and issue debt money by Fractional Reserve Deposit Expansion.

A debt money system never provides money to pay interest, so the banks ultimately acquire all the People's property by foreclosure, as Thomas Jefferson said they would.

Learn more.
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