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Posts Tagged ‘1887’

Thomas DiLorenzo, professor of economics at Loyola University, associate at the Ludwig von Mises Institute, and frequent writer for LewRockwell.com, makes an incredibly misinformed statement about the Bank of England and Lincoln’s issuance of money to fund the Civil War, in a May 17, 2010 Daily Bell interview.

He states (emphasis mine):

Lincoln was almost exclusively devoted to Hamiltonian mercantilism – high protectionist tariffs, other forms of corporate welfare, a central bank modeled after the Bank of England to pay for it all, and political patronage and matching politics.

From the Bank of England’s own website, its founding document, the Bank of England Act 1694, states:

19 Their Majesties may appoint Rules for transferring: and may make the Subscribers a corporation, subject to Redemption

The Bank of England, from its inception, was a private central bank, that issued money at interest.

Lincoln, however, issued interest-free money through the public U.S. treasury, as documented in Sarah Emery’s 1887 book, “Seven Financial Conspiracies Which Have Enslaved the American People.”

In the first chapter, she writes (emphasis mine):

Following this declaration came the enactments of July 17, 1861, and February 12, 1862, authorizing the issue of $60,000,000 treasury notes, not bearing interest and payable for all debts, public and private.

Therefore, in no way did Lincoln create any central bank, let alone a private one like the Bank of England, as DiLorenzo asserts. The money was issued interest-free through the public U.S. treasury, as appropriated by Congressional legislation signed by Lincoln.

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