MONETARY HISTORY CALENDAR May 14 - 20

MAY 15

1915 – BIRTH OF PAUL SAMUELSON, ECONOMIST (FIRST AMERICAN TO WIN THE NOBEL PRIZE FOR ECONOMICS)

“Few understand that all our money arises out of debt and IOU operations. The banking system as a whole can do what each small bank cannot do: it can expand its loans and investments many times the new reserves of cash created for it, even though each small bank is lending out only a fraction of its deposits.” Economics, An Introductory Analysis by Professor Paul A. Samuelson. (Best selling college economics textbook of all time, c1948.)

1931 – “QUADRAGESSIMO ANNO” LETTER ISSUED BY POPE PIUS XI

The Pope discusses the ethical implications of economic and social order in this letter, warning, of the dangers of unrestrained capitalism.

"Economic dictatorship is being most forcibly excercised by the few who hold the money and completely control it, control credit and the lending of money.  Hence they regulate the flow of the life-blood whereby the entire economic system lives, and have so firmly in their grasp the soul of economics that no one can breathe against their will."

MAY 16

1876 – SECOND GREENBACK NATIONAL CONVENTION OPENS IN INDIANAPOLIS

May 16–18, 1876 — Academy of Music, Indianapolis, Indiana. There were 239 delegates present from 17 states. Peter Cooper was nominated for President of the Greenback Party (calling for the creation of debt-free national money) with 352 votes to 119 for three other contenders.

1912 – PUJO COMMITTEE HEARINGS BEGIN

A special subcommittee of the House Banking and Currency Committee began hearings under its Chairman, Arsene P. Pujo. Its purpose was to investigate the powers of the nation’s "money trust.” Its final report, issued in 1913, concluded that the power over the nation’s money and credit was concentrated in  a small group of Wall Street bankers. The report created a climate for reform. Unfortunately one of the reform advocated for was the misnamed “Federal” Reserve Act which provided the appearance that finances would become a public function.

MAY 17

1787 – LAUNCH OF SHAY’S REBELLION 

A revolt of farmers in Western Massachusetts which spread to other states fueled by the rise of personal and public taxes and debt and the collapse of any legitimate federal currency.

1901 – FINANCIAL PANIC

The first stock market crash in the US. It was caused by large investors speculating on railroad stocks. Thousands of small investors were ruined.

1930 – BANK OF INTERNATIONAL SETTLEMENTS ESTABLISHED

This is the central bank of all central banks, established as an international financial institution to "foster international monetary and financial cooperation.” Its headquarters are in Basel, Switzerland. The BIS serves to strengthen the international private banking system, not national economies. The BIS advocates the establishment of a global currency, building on the International Monetary Fund “Special Drawing Rights” – a quasi currency which has a value based on a basket of 4 major currencies (the dollar, euro, pound and yen).

2002 – TALK BY WILLIAM HUMMEL, AUTHOR, MONETARY RESEARCHER

"Banks are not ordinary intermediaries, like non-banks, they also borrow, but they do not lend the deposits they acquire. They lend by crediting the borrowers account with a new deposit… The accounts of other depositors remain intact and their deposits fully available for withdrawal.  Thus a bank loan increases the total of bank deposits, which means and increase in the money supply."

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?
Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.
This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini and Greg Coleridge helped in its development.
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