1865: Abraham Lincoln’s Monetary Policy

Abraham Lincoln’s Monetary Policy, 1865, Page 91 of Senate document 23:

 

Money is the creature of law and the creation of the original issue of money should be maintained as the exclusive monopoly of national Government.

 

Money possesses no value to the State other than that given to it by circulation. Capital has its proper place and is entitled to every protection. The wages of men should be recognised in the structure of and in the social order as more important than the wages of money.

 

No duty is more imperative for the Government than the duty it owes the people to furnish them with a sound and uniform currency, and of regulating the circulation of the medium of exchange so that labour will be protected from a vicious currency, and commerce will be facilitated by cheap and safe exchanges.

 

The available supply of Gold and Silver being wholly inadequate to permit the issuance of coins of intrinsic value or paper currency convertible into coin in the volume required to serve the needs of the People, some other basis for the issue of currency must be developed, and some means other than that of convertibility into coin must be developed to prevent undue fluctuation in the value of paper currency or any other substitute for money of intrinsic value that may come into use.

 

The monetary needs of increasing numbers of People advancing towards higher standards of living can and should be met by the Government. Such needs can be served by the issue of National Currency and Credit through the operation of a National Banking system .The circulation of a medium of exchange issued and backed by the Government can be properly regulated and redundancy of issue avoided by withdrawing from circulation such amounts as may be necessary by Taxation, Redeposit, and otherwise.

 

Government has the power to regulate the currency and creditof the Nation. Government should stand behind its currency and credit and the Bank deposits of the Nation. No individual should suffer a loss of money through depreciation or inflated currency or Bank bankruptcy.

 

Government possessing the power to create and issue currency and creditas money and enjoying the right to withdraw both currency and credit from circulation by Taxation and otherwise need not and should not borrow capital at interest as a means of financing Governmental work and public enterprise. The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the
Government and the buying power of the consumers. The privilege of creating and issueing money is not only the supreme prerogative of Government, but it is the Governments greatest creative opportunity.

 

By the adoption of these principles the long felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts, and exchanges. The financing of all public enterprise, the maintenance of stable Government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own Government.

 

Money will cease to be master and become the servant of humanity. Democracy will rise superior to the money power. Some information on the Federal Reserve The Federal Reserve, a Private Corporation One of the most common concerns among people who engage in any effort to reduce their taxes is, „Will keeping my money hurt the government’s ability to pay it’s bills?“ As explained in the first article in this series, the modern withholding tax does not, and wasn’t designed to, pay for government services. What it does do, is pay for the privately-owned Federal Reserve System.

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