An Introduction to the Economic Nature of the United States

Ezra Pound

Wyndham Lewis, Portrait of Ezra Pound 7,875 words This is not a SHORT History of the Economy of the nited States! "or forty years # ha$e schoo%ed myse%f, not to write the Economic History of the !S! or any other country, &ut to write an e'ic 'oem which &e(ins )#n the *ar+ "orest,, crosses the Pur(atory of human error, and ends in the %i(ht, )fra i maestri di co%or che sanno!, "or this reason # ha$e had to understand the -.T RE of error! /ut # don0t thin+ it necessary to refer to each 'articu%ar case of error! # do not &e%ie$e that the method of historio(ra'hy has 'ro(ressed much since the days when 1onfucius se%ected the documents of the o%d +in(doms, and condensed his conc%usions in the Testament! .ristot%e toward the end of his %ife arri$ed at a simi%ar method, in his co%%ection of 2ree+ State 1onstitutions! 3o%taire used the )human, method which hin(es on chance and the 'ersona% e%ement! . 'rince eats a 'uddin( and dies of acute indi(estion at a critica% moment! 1aesar /or(ia said4 )# had antici'ated e$erythin( e5ce't &ein( &edridden the day my father died!, 6iche%et ana%yzes the moti$es of different socia% (rou's and te%%s us that the manua% %a&orer wants to own a sho' &ecause he thin+s sho'7+ee'ers don0t wor+! .nother method consists in ana%yzin( certain mechanisms in$ented to hum&u( the 'u&%ic! Perha's it is the renewa% of an .ristote%ian tendency &ut, in any e$ent, it is suita&%e for the 'resent narrati$e, and # am fo%%owin( it in this essay or definition, of the stru((%e &etween the 'eo'%e and the usurers, or financiers, in the co%onies, and then in the nited States of -orth .merica! Towards the end of the Ei(hteenth 1entury the sett%ers, dri$en &y the desire for "reedom of 1onscience, hardened &y 'ri$ations, fa$ored and &etrayed, reached a certain de(ree of 'ros'erity, than+s to their own hard wor+ and to a sane system of usin( 'a'er money as a means of e5chan(e that freed them, tem'orari%y, from the 'incers of the /an+ of En(%and!

The Sett%ers, or 1o%onizers, in Pennsy%$ania and in other co%onies, irritated &y the disa''earance of meta% money, understood that any other document cou%d &e used for &oo+7 +ee'in( and as a certificate of what the &earer was entit%ed to recei$e in the mar+et! The a(ricu%turists who arri$ed in the new country, whi%e they c%eared the forests and 're'ared their cam's, %ac+ed the 'ower to &uy what was necessary to &ui%d houses, to &uy '%ows, and to ma+e a %i$in(! So the (o$ernments of se$era% co%onies &e(an to %oan 'a'er7money for these 'ur'oses! Pennsy%$ania chose the &est method ada'ted to the conditions 8 re'ayment in ten or twe%$e years, and %oanin( amounts u' to one ha%f of the $a%ue of the farm! Those who %oaned the money, %i$in( near to those who had recei$ed the %oan, cou%d 9ud(e the character of the &orrower! This arcadian sim'%icity dis'%eased the London mono'o%ists and the su''ression of this com'etition, to(ether with other irritants, 'ro$o+ed the :77; )Re$o%ution!, The c%earness of com'rehension on the 'art of the re$o%utionary %eaders is re(istered in diaries and )memoirs, of the times, and 'articu%ar%y in the notes of <ohn .dams who, amon( other thin(s, had &een sent to Euro'e to or(anize the credit for the new State, and who secured the first %oan from Ho%%and! #t is to &e understood that the e5'erience of <ohn .dams was neither theoretica% nor a&stract! "irm%y con$inced of the ca'acity of the .mericans to 'roduce farm 'roducts and merchandise, he met, and o$ercame, a%% the insidiousness of Euro'e! He con$inced the Ho%%anders of the so%idarity of the .merican (uarantees &y com'arin( the insi(nificant de&t of the nited States to the (reat de&t of En(%and! # re'eat4 His notes are neither a&stract nor theoretica%! #t was a =uestion of 'ayin( the war e5'enditures with to&acco! The intimate %etters and con$ersations, $erified &y the friends of .dams, contain concrete conce'ts as, for e5am'%e 4 )#t is necessary to +ee' u' the idea that this 'a'er is (ood for somethin(,, meanin( that the note can &e e5chan(ed for actua% (oods! #t was understood that the -a$y de'ended on iron, tim&er and tar, and not on the maneu$ers of a fa%se finance! Some time %ater the &an+ers 'u&%ished 'ro9ects for the e5tension of credit, )fundin(,, or the institution of a 'u&%ic de&t! .dams faced the terrors of inf%ation &y sayin( that a diminishin( &uyin( 'ower of the 'a'er money functioned as an une$en%y distri&uted ta5, a ta5 that hit those with a fi5ed sa%ary, or %i$in( on an income> that the &usinessmen wou%d ha$e the &est of it> and that, in any e$ent, an inf%ation of this +ind wou%d not ha$e created a 'u&%ic de&t W#TH #-TEREST! #t is understood that credit is Pau%0s su''osition that Peter wi%% 'ay! #t was understood that the &ase of the rea% credit of the thirteen co%onies was their ca'acity to wor+, ta+en to(ether with the tru%y (reat 'ossi&i%ity of future 'roduction %imited then, not &y nature, fie%ds, $e(etation, &ut on%y &y the num&er of the inha&itants! Washin(ton was a&%e to win in the war &ecause he resisted to the &itter end! Washin(ton won, &ut not without inde&tedness to the tenacity and (ood sense of .dams 8 the -e(otiator! History, as seen &y a 6onetary Economist, is a continuous stru((%e &etween 'roducers and non7'roducers, and those who try to ma+e a %i$in( &y insertin( a fa%se system of &oo+7 +ee'in( &etween the 'roducers and their 9ust recom'ense! The /an+ of En(%and was &ased on the disco$ery that instead of %oanin( money, the /an+0s 'a'er cou%d &e 'ut out on %oan! The

Phi%ade%'hia financiers, not entire%y se$ered from their friends in forei(n countries, saw the 'ossi&i%ity of s'ecu%ation, and the mono'o%izers of money tried their usua% tric+s on a thic+7 headed 'u&%ic! )"inanciers and 1on(ressmen &ou(ht a (reat =uantity of so%dier0s 'ay certificates which had &een issued durin( the war! The certificates were sim'%y 'rintin( 'ress money without anythin( of $a%ue &ehind them! ?ears had 'assed since their date of issue and, as their ho'e for redem'tion went down, their $a%ue went down, and down! #n :78@ they cou%d &e &ou(ht for :A or :5 cents to the do%%ar! .%e5ander Hami%ton 'ro'osed that the 1ontinenta% certificates &e redeemed at 'ar!,B:C .nd then the nation )assumed, the res'onsi&i%ity of 'ayin( them as 'ro'osed! These were the famous certificates of 'ay due to the 3eterans! This constituted the )Scanda% of the .ssum'tion!, En(%and was tryin( di$erse methods of usury and sanctions! The %ac+ of caution on the 'art of the (reat 'ro'erty owners of the South, reduced them to inde&tedness! S%a$ery &ecame %ess 'rofita&%e than the new industria% system, in which the owner did not ha$e to ta+e care of his em'%oyees! Let us note that at the &e(innin( of the -ineteenth 1entury the )6ercanti%e, conce't sti%% retained traces of decency! .dams 9ud(ed it )hard%y mercanti%e, to do &usiness on &orrowed ca'ita%! .t that time indi$idua%ism had its own 'ro&ity, a modest &ut secure income was ca%%ed an )inde'endence!, History ta+en as a %esson, and ta+in( into account the difference &etween certainty and su''osition, wou%d &e an e5'osition of the nature of e$ents, rather than a chronic%e of names! Some e$ents can &e +nown on%y after centuries! We +now, for e5am'%e, that Parisina d0EsteBDC incurred certain e5'enditures which were 'aid from the *uca% Treasury of "errara, and we a%so +now the date of these 'ayments! Other deeds ne$er &ecome +nown and must remain &uried with the 'artici'ants! . si(ned %etter 'ro$es what the writer wanted the reci'ient to &e%ie$e on such and such a day! /ut the c%arity of an idea remains amon( the .S1ERT.#-E* facts! The definition of an idea, as o&ser$ed &y someone who understands the e$ents of the day, may shed more %i(ht on the historica% 'rocess than many $o%umes! SOURCES The true history of the economy of the nited States, as # see it, is to &e found in the corres'ondence &etween .dams and <efferson, in the writin(s of 3an /uren, and in =uotations from the intimate %etters of the "athers of the Re'u&%ic! The e%ements remain the same4 de&ts, a%terin( the $a%ue of monetary units, and the attem'ts, and trium'hs of usury, due to mono'o%ies, or to a )1orner!, #n order to '%ease those who %o$e to (am&%e, the E5chan(e 'ermits 6r! . to se%% to 6r! / what 6r! . does not 'ossess> on condition that 6r! .! succeeds in &uyin( it and consi(nin( it to 6r! / within a determined time! The .mericans ha$e chosen this (ame instead of &u%%7fi(htin(! .nd natura%%y, if a (rou' of financiers succeeds in inducin( sim'%etons to se%% more than actua%%y e5ists, or to se%% more of it than can &e o&tained, the %ate7comers can &e made to )'ay throu(h the nose!, #n :8;@,

2ou%d, "is+ and others a%most succeeded in mono'o%izin( the a$ai%a&%e (o%d in -ew ?or+! Roose$e%t fo%%owed <im "is+! The s'ecu%ators &oast a&out their coura(e or temerity, &ut this coura(e is a different +ind of coura(e from that dis'%ayed at the Rou%ette, or other (ames of chance> for, &y s'ecu%atin( on wheat and other commodities these (am&%ers are not 9ust (am&%in( amon( themse%$es, they are decidin( on the 'rices the 'u&%ic must 'ay for its necessities! 1i$ic conscience has not de$e%o'ed in .merica! #t seems to me that this conscience was hi(her durin( the first years of the Re'u&%ic, or, at %east, the heroes of that era ha$e %eft to us monuments of their 'ersona% consciences, which seem to ha$e &een rather hi(her than those of today! "rom the War of Secession u' to now, the economic history of the nited States has consisted in a series of e5chan(e maneu$ers in -ew ?or+ and in 1hica(o> attem'ts to im'ose mono'o%ies, corners, $ariations in the 'rices of the shares of new industries, and of the means of trans'ortation! #n the &e(innin( they s'ecu%ated on the $a%ue of %and! .n inf%ation in its $a%ue was stimu%ated without &otherin( a&out the difficu%ty, or the im'ossi&i%ity of trans'ortin( 'roducts from distant fie%ds to the mar+et! Then they s'ecu%ated on the $a%ues of the rai%roads! #f it is in the interest of the common wor+er, 'roducer, or citizen to ha$e an e=uita&%e and fi5ed 'rice, this is not at a%% in the interest of the s'ecu%ator or &ro+er! )He%%,, he says, )# don0t want a sti%% mar+et! # cou%dn0t ma+e any money!, Li+e a 'atient fisher, the &ro+er waits for the rise or fa%% of e$en :EF or :E8 'er cent, and there is his fifty or one hundred do%%ars! He waits for a )&rea+,! #t may come once in a %ife time! This may &e the startin( 'oint to a fortune! The (reat 6or(an, durin( the 1i$i% War, &ou(ht on credit a certain =uantity of dama(ed rif%es from the War *e'artment in Washin(ton, and so%d them to a 6i%itary 1ommand in Te5as, and was 'aid &y the %atter &efore he had to 'ay the former! He made G75,AAA!AA 'rofit! Later he was e$en sentenced, &ut that did not 're$ent his &ecomin( the (reat 6ahatma of Wa%% Street, and a wor%d 'o%itico7economica% 'ower! Such is the materia% of which the economic and human history of the nited states is made! Stratagems and Illusions The 6or(an affair, or tria%, wi%% &e c%assified as norma% finance and cou%d ha$e ha''ened anywhere in the )o%d wor%d!, /ut the new %and, &ecause of the new conditions, offered se$era% +inds of o''ortunity for fraud! #n order to dis'%ay the 'ro&%em of the .merican menta%ity and its de$e%o'ment, or 'er$ersion as a com'onent in the historica% 'rocess, these frauds shou%d &e c%assified! Ta+e for e5am'%e, the concession to construct the -orthern Pacific Rai%road! This concession had a c%ause in it which conferred on the constructors the ri(ht to a%% the %um&er c%eared durin( the construction! The route went throu(h the $ir(in forest, and the trees were destined to &e used as crossties, &ut the c%ause did not s'ecify the width of the road to &e cut, and the com'any, with 'erfect %e(a%ity, cut for itse%f a stri' of %and two mi%es wide! The %and and the forests were the 'ro'erty of the nation, &ut no 'ri$ate citizen fe%t that he had &een swind%ed! Simi%ar thin(s are the &asis of .merican Humor! These thin(s ma+e for 'ride and tradition! The fi(ht a(ainst the forest, and the difficu%ties of the desert! 6ar+smanshi' and craftiness

were &ein( de$e%o'ed! . man in 1onnecticut succeeded in manufacturin( imitation nutme(s out of '%ain wood and se%%in( them at a 'rofit! This tric+ sent the who%e country into 'ea%s of %au(hter! The 1entenary of this tric+ was commemorated at the St! Louis E5'osition! #mitation nutme(s were made and so%d at 5 cents each! One day, when these sou$enirs were e5hausted, the man in char(e, a true son of 1onnecticut, 'ure7&%ooded yan+ee, did not hesitate one instant to su&stitute rea% nutme(s for them, at the same 'rice! The 'u&%ic heard it, and roared a(ain! Since the days of the 1a%ifornia 2o%d Rush there ha$e &een men who ha$e s'ecia%ized in )2o%d &ric+s,, that is, a %ead &ric+ co$ered with a %ayer of (o%d, or e$en so%id (o%d in some 'arts so that the se%%er can &ore throu(h it at +nown 'oints and show it to &e so%id (o%d! .fter the .%as+an 2o%d Rush the )(o%d &ric+, made its rea''earance! The ma9ority of those who had &een du'ed &rou(ht their &ric+s to my father who was an assayer at the 6int! This was the 'eriod of free coinin( of (o%d, and any one had the ri(ht to ha$e his own meta% coined! So, the stories of these du'es ha$e &een fami%iar to me, throu(h 'ersona% e5'erience, since # was fi$e years o%d! # shou%d %i+e to differentiate &etween two +inds of dishonesty4 H:I that of financia% frauds and &oo+7+ee'in(> and HDI that arisin( from 'articu%ar materia% o''ortunities, as in the case of the -ORTHER- P.1#"#1! Tradition The usua% frauds of &oo+7+ee'in(, mono'o%y, etc!, ha$e &een +nown since the &e(innin( of history, and it is 'recise%y for this reason that the usurers are o''osed to c%assica% studies! .ristot%e, in his POL#T#1S :! FE5, re%ates how Tha%es, wishin( to show that a 'hi%oso'her cou%d easi%y )ma+e money, if he had nothin( &etter to do, foreseein( a &um'er cro' of o%i$es, hired &y 'ayin( a sma%% de'osit, a%% the o%i$e 'resses on the is%ands of 6i%etus and 1hios! When the a&undant har$est arri$ed, e$ery&ody went to see Tha%es! .ristot%e remar+s that this is a common &usiness 'ractice! .nd the E5chan(e frauds are, near%y a%% of them, $ariants on this theme 8 artificia% scarcity of (rain and of merchandise, artificia% scarcity of money, that is, scarcity of the +ey to a%% the other e5chan(es! Proverbs and Wisdom The stru((%e &etween the Producers and the "a%sifiers of /oo++ee'in( was c%ear%y seen and understood &y the "athers of the Re'u&%ic! Their wisdom was recorded in 'un(ent 'hrases4 )The safest '%ace of de'osit is in the 'ants of the 'eo'%e!, )E$ery /an+ of *iscount is downri(ht ini=uity, ro&&in( the 'u&%ic for indi$idua%s0 (ain!, .n insurance a(ent once as+ed a &an+er why the rai%road com'anies, which are 'ri$ate%y owned, must run to him, a &an+er, in order to se%% their &onds! The &an+er, with ironic sadness, whis'ered4 )Hush!, The Substructure To understand the .merican historica% 'rocess, it is necessary to consider the successi$e wa$es of immi(ration! : J Those who came throu(h a s'irit of ad$enture or &ecause of re%i(ious con$ictions and the desire for "reedom of 1onscience, and who were wi%%in( to face the difficu%ties of a sa$a(e and uncu%ti$ated country> D J The s%a$es>

K J and those who arri$ed when the machinery was &ein( assem&%ed! 1%ass stru((%e in the nited States is a recent and an a%most e5otic 'ro&%em, in the sense that it does not deri$e from the "ounders! Let us ta+e a )ty'ica% .merican fami%y!, Two Wadsworth &rothers, or two men of that name, arri$ed in 6assachusetts in :;KD! #n :88D their descendants had a fami%y reunion and 'u&%ished the history of their fami%y! #n the ei(ht (enerations we find a%% sort and conditions rich and 'oor! One, at the a(e of si5teen, so%d his hair for a shi%%in(, and )this was the first money he e$er did see!, .nother fitted out a shi' with his own money, durin( the 1i$i% War! On the D5Ath .nni$ersary the 'artici'ants 'resented e=ua% $ariety and e5tremes amon( them 8 mem&ers of the Stoc+ E5chan(e, sa%esmen, doctors, a te%e(ra'h o'erator, and two o%d women for whom a co%%ection was ta+en u'! nder these conditions c%ass warfare, in the true sense of the word, does not e5ist, e$en thou(h the differences in wea%th and 'osition is undenia&%y $isi&%e! Colonial Tendencies The "athers of the Re'u&%ic re$o%ted a(ainst the En(%ish ru%in( c%ass, the youn(er &rothers a(ainst the first7&orn! Po'u%ar hatred of the monarchist idea ham'ered .dams throu(hout his %ife! .nd a%% &ecause, at the a(e of se$enteen, he had written a %etter in which he foresaw the 'ossi&i%ity of an .merican Lin(dom ca'a&%e of resistin( any Euro'ean force! *ema(o(y seized this 'hrase to insist that .dams had ne$er &een anti7monarchist, &ut 'referred the House of /raintree, that is, his own house, to that of the Hano$er! His father he%d the '%ow! His son, <ohn M! .dams, awaited the resu%ts of a 'residentia% e%ection at the '%ow! Perha's a c%assica% 'ose, &ut he was ca'a&%e of ho%din( the '%ow, and was not doin( it for the first time in his %ife! Let us com'are a score of 'ersona% cases in order to understand the foundation of .merican economic history! #n the doc+et of a (reat7(randfather, <ustice of the Peace, in -ew ?or+ State, the fines run from G:!KA to a&out GD5!AA, and the tri&una%0s e5'enses from 8c to G:!KA! His dau(hter, at %east once in her %ife, went to wor+ in a factory, married a man who &ecame a 1on(ressman, su'er$ised the +itchen, not as a s'ectator, &ut in order to 're'are the mea%s for a&out forty %um&ermen! .t the time of her se'aration she had G:AA,AAA!AA in the &an+, &ut the &an+ fai%ed! 6y father, the first white man to &e &orn in that 'art of Wisconsin, was %oo+ed after &y a ma%e reds+in instead of a nurse! He ins'ected mines in #daho, and (ot a 9o& in the Land Office! One wee+ he had his +ind%in( wood sawed &y a certain man for a do%%ar! Ten days %ater he as+ed the man if he wanted to saw a %itt%e more wood! )Saw woodN Saw woodN Say Homer do you want to (o East and se%% a mineN # (ot G:A,AAA!AA in the &an+!, #n :@:@ # met in Paris a =uiet %itt%e man, .m&assador at the time, whom my father remem&ered thirty7fi$e years &efore in the act of reachin( for a re$o%$er to he%' out his 'artner! .merican distances are different from the Euro'ean, and the statistics do not record a%% the nuances! Waves Re%i(ious con$ictions, anarchic tendencies, %o$e of ad$enture, and then %aziness! The .merican tra(edy, in a certain sense, is the tra(edy of %aziness! The sense of 9ustice surrendered to the sense of %aziness! <ustice was %imited first to the whites, and then to the &osses!

"rom Euro'e a f%ood of wor+ers 'oured in! The nationa% ty'e was formed! "rom a simi%arity of tastes and tem'eraments and not on a racia% &asic! Those who wanted materia% (ain emi(rated to .merica! Those of a mi%der nature, the more contem'%ati$e, the sentimenta%, those more attached to their soi% and home, remained in Euro'e! The stron(, the rest%ess, the ma%contents, the misfits went! The youn(er sons of the En(%ish went in the :;AAs, &ut after :8AA emi(rants from En(%and diminished! The Puritans were /i&%e7crazy, &ut they did not &rin( the He&rew Scri'tures on%y! The cu%ture of .dams and <efferson is a Latin cu%ture with a mi5ture of 2ree+! Otis wrote a 2ree+ 2rammar which he destroyed, or which was %ost for the %ac+ of a com'etent 'rinter! *urin( the 'ros'erous co%onia% era the arts of si%$ersmithin(, furniture ma+in(, and architecture de$e%o'ed! The houses, a%thou(h made of wood, were a 2ree+ dream! -um&ers of them &urned down! "rom 2ermany came (rou's of re%i(ious sectarians! They &rou(ht with them the art of (%assma+in(, and or(anized, at %east once a year, a /ach "esti$a%! 6ontice%%o is fu%% of refinement! The 'o%y(ra'herBKC %on(ed for a com'%ete ci$i%ization e=ua% to that of an #ta%ian 1ourt, ceremonies omitted, of the "ourteenth 1entury! He (ot into de&t! .dams was fru(a%, and used the weather7&oards of his attic study as a handy fi%e for his corres'ondence! "or at %east a century -ew En(%and too+ as an idea4 )Low Li$in( Hi(h Thin+in(!, sury s'oi%ed the Re'u&%ic! sury has &een defined as too hi(h an interest on money! The word finance &ecame fashiona&%e in the &an+7 'a'er era! .nd it is to this that <efferson a%%udes in the 'hrase4 )-o one has a natura% ri(ht to &e money7%ender sa$e him who has it to %end!, With the )financia%, era the word usury disa''eared from 'o%ite con$ersation! There is no (reater im&eci%ity than to %ea$e one0s own &an+7account or one0s own sources of information in the hands of an enemy, or an irres'onsi&%e man! The stru((%e &etween the 'eo'%e and the e5'%oiters, in .merica, was wa(ed around these forms of im&eci%ity! . handfu% of 'eo'%e, who %i$ed on %itt%e and did not run into de&it &rou(ht to, and 'reser$ed in .merica, a rather hi(h, se$ere cu%ture, and a ci$ic sense nourished &y the traditions of En(%ish %e(a% %i&erty, that is, &y a centuries7%on( con=uest in which the traditions of -orth Euro'ean tri&es and Roman Law con$er(e! The Re'u&%ic was started with a %imited suffra(e which was (radua%%y e5tended from the %o$e of 9ustice and &ecause of the (ood sense of the common 'eo'%e! The frontier aristocracy was, of necessity, a 'hysica% aristocracy! The others either died or wea+ened! 6y (randfather used to wrest%e with his %um&er9ac+s not on%y for s'ort, &ut to maintain his 'resti(e! Linco%n was the %ast 'resident of this race and of this tradition! "or two centuries the frontier re=uired darin(! With the dan(er (one came the 'eo'%e who +now how to suffer and to endure> or those who mere%y su&side! ' to the time of the 1i$i% War the 'u&%ic seems to ha$e ta+en some interest in the 1on(ressiona% de&ates! The 1on(ressiona% Record mi(ht nourish a ci$ic sense, and the names of the 'rota(onists are recorded in it! E$en today it is 'ossi&%e to te%% some truths in 1on(ress, &ut the 'u&%ic has &een distracted!

The )Economic, history of the nited States is, on one side, the history of enormous wastes of the natura% resources, wastes that too+ '%ace &ecause no immediate need for thrift was a''arent and, in many instances, did not e5ist! Land was (i$en to whomsoe$er wished to sett%e on it, &ut no 'ro$isions were ta+en to 'rotect the nation or the 'eo'%e from the dan(ers of resett%in( this %and! Often reso%d for a trif%e, it went to form %ar(e %anded estates which for a %on( time, and 'erha's e$en today, ha$e not in9ured anyone! The Treasure of a Nation is its onest!

The fo%%owin( 'hases fo%%ow one another4 "reeho%d! The need of craftsmen! S%a$es! *e&ts! )"ree, craftsmanshi' in com'etition with the s%a$e system! #n the &e(innin( 'ersona% commerce without inde&tedness to finance! #n many cases direct su'erintendence &y the owners! -o man cou%d &e a director of the Sa%em 6useum who had not sai%ed round &oth the 1a'e of 2ood Ho'e and the )Horn!, The construction of fast c%i''ers was -ew En(%and0s (%ory a century a(o! These c%i''ers had &rou(ht the +ind of wea%th that fo%%ows the e5chan(e of (oods with the orient and the entire wor%d! E$en if economic, the history of the nited States was, u' to the year :8;A, romantic! "rom that 'eriod dates the cu%t of &usiness which continues an #ta%ic tradition, the tradition of the (reat 1ity Re'u&%ics of 3enice and 2enoa, the Su'er&a and the *ominante! Economic affairs need not &e who%%y sordid! sury howe$er is a cancer, "inance a disease! Paterson who in$ented the system of the /an+ of En(%and, that is, the system of %oanin( 'romissory notes, died 'oor, outcast &y his ear%y associates! 1a%ifornia (o%d was disco$ered on the %and of a man who did not 'rofit &y it! On the contrary, his farm was ruined and he (ot no 'rotection from %aw! The .merican tra(edy is a continuous history of waste8waste of the natura% a&undance first, then waste of the new a&undance offered &y the machine, and then &y machines, no %on(er iso%ated, &ut corre%ated and centu'%icatin( the creati$e 'ower of human %a&or! The im'ro$ident .mericans +i%%ed &ison without thou(ht or consideration! "orests were cut down without thou(ht of conser$ation! This had no immediate effect on the 'ros'erity of the inha&itants, &ecause of nature0s a&undance! The usurers, now ca%%ed financiers, '%otted a(ainst a&undance! To understand the effect of the .merican system, it is necessary to refer to the mono'o%y of Tha%es and then ta+e u' the thread of the so7ca%%ed )reform,, or 'rotestant schism, seen from the economic an(%e! The Protestants did not wish to 'ay ecc%esiastica% ta5es to Rome, and to the 'riests for their rites! The /i&%e was in$ented as a su&stitute7Priest! The 1anonica% 'rohi&ition a(ainst usury disa''eared! Po%ite society did not consider usury as *ante did, that is, damned to the same circ%e of He%% as the sodomites, &oth actin( a(ainst the 'otentia% a&undance of nature! The 1atho%ic economy had 'roc%aimed the doctrine of the 9ust 'rice! 6ono'o%y is a maneu$er a(ainst the 9ust 'rice! One can s'ecu%ate on%y on condition of the mar+et osci%%ation! The em'%oyers natura%%y tried to (et their wor+ done for the %east 'ossi&%e 'rice! The wor+in(7men, in se%f7defense, as+ed for the suffra(e! The 'eo'%e won the war a(ainst the /an+ of the !S! &etween :8KA and :8FA &ut, with the new wa$es of Euro'ean wor+ hands,

the =ua%ity of the e%ectorate dec%ined, and dema(o(y undertoo+ to corru't it! The Press mis%ed, or distracted, the 'eo'%e from the nature of the economic 'ro&%em! Toward the end of the Ei(hteenth 1entury the Re'u&%ic was in re$o%t a(ainst the 'ri$i%e(es of )&irth,, and the who%e democratic mo$ement was in re$o%t a(ainst the mono'o%ies he%d &y the (ui%ds> mono'o%ies of the o''ortunity of wor+in(! This e5'%ains the &earin( of .dam Smith0s 'hrase4 )6en of the same trade ne$er (ather to(ether without a cons'iracy a(ainst the (enera% 'u&%ic!, /ut the mono'o%ies, the sanctions, the restrictions im'osed &y the (ui%ds were, at %east, mono'o%ies of 'roducers! The $arious mono'o%ies which cu%minate in the mono'o%y of money itse%f, +ey to a%% the other mono'o%ies were, and are, mono'o%ies of e5'%oiters! The situation is com'%icated when the same man has his hand &oth in the 'roduction and in the finance! Henry "ord found himse%f forced into this situation in order to defend himse%f a(ainst Wa%% Street! To understand the de$e%o'ment of economic ideas in .merica, it is usefu% to +now Euro'ean 'recedents, e$en if these are %itt%e +nown in Euro'e itse%f! The traces of the Leo'o%dine Reforms ha$e &een %ost, as far as # +now, &ut the ana%o(y remains! #t can &e said with certainty that the same current towards the %i&eration from the shac+%es of the (ui%ds made its a''earance in Tuscany and in the .merican 1o%onies! The return to a contro%%ed economy in Tuscany was wrec+ed &y the -a'o%eonic Wars, and nothin( has &een heard of it in Euro'e for years! .s far as # can disco$er, it had no echo in .merica! <ohn Muincy .dams, a%most a%one and smeared as an eccentric, su''orted a doctrine (i$in( more authority to the state! He wanted to conser$e the nationa% %ands as 'ro'erty of the nation! The romance of the co$ered wa(on, c%i''er of the 'rairies, finds its ana%o(y in the #ta%ian co%onization in .frica! .%% this emi(ration had some resem&%ance to what #ta%y was doin( on her "ourth Shore, &ut the former was done without the state0s doin( anythin( sa$e (rantin( the %and without foresi(ht! The natura% a&undance e5isted, &ut it was wasted! Today, amon( the few merits of "!*!R! stands, 'erha's, a $a(ue idea of reforestation! "an#s The insidiousness of &an+in( has a%ways fo%%owed the same road 8 a&undance 8 any +ind of a&undance tends to create o'timism! This o'timism is e5a((erated, usua%%y with the he%' of 'ro'a(anda! Sa%es increase> 'rices of %and, or of shares, rise &eyond the 'ossi&i%ity of materia% re$enue! The &an+s that fa$or e5a((erated %oans, in order to maneu$er the increase, restrict, reca%% their %oans, and 'resent%y 'anic o$erta+es the 'eo'%e! Toward the end of the "irst Wor%d War, 1! H! *ou(%as insisted on the o''ortunity of 'otentia% a&undance and demanded nationa% di$idends, that is, a distri&ution of fami%y or indi$idua% a%%owances so as to 'ermit the 'u&%ic to &uy what the 'u&%ic had 'roduced!

-atura%%y a%% that was ca%%ed insane! The London Times, and other news'a'ers, in the hands of financiers o''osed this su((estion! The 9ustice of 6a9or *ou(%as0s $iews was confirmed &y the Loe& Re'ort HRe'ort of the -ationa% Sur$ey of Potentia% Product 1a'acity, -ew ?or+ 1ity Housin( .uthority, :@K5!I -o one has &een wi%%in( to dis'ute these statistics! /efore enterin( this war e$ery fami%y of four 'ersons in the nited States cou%d ha$e had a GF,AAA!AA to G5,AAA!AA Standard7of7Li$in(! On%y the ini=uity, the im&eci%ity of the monetary7 financia% system 're$ented the rea%ization of this materia% we%fare! War was &rou(ht a&out to im'ede the uti%ization of this a&undance! Without scarcity, mono'o%y cannot im'ose un9ust 'rices! .merican money was not socia%ized! .merican money had not &een democratic for ei(hty years, as Linco%n had democratized it tem'orari%y, and as <ac+son had democratized it, e$en succeedin( in e5tir'atin( the nationa% de&t! The .merican 'eo'%e as %ate as :@K@ had not yet %earned the %esson tau(ht &y .merican history and, much %ess, &y wor%d history! #t is idiotic to %ea$e the 'oc+et7&oo+ of the nation in the hands of 'ri$ate and, 'erha's forei(n, irres'onsi&%e indi$idua%s! #t is idiotic to %ea$e the nation0s sources of information in the hands of irres'onsi&%e indi$idua%s and, sometimes, in forei(n hands! This ruin has its roots in the (reed for %ucre, a (reed which se'arates itse%f from a%% common7 sense and e$ery sense of 'ro'ortion, and &%ind%y creates its own undoin(! 6an has &een reduced not e$en to a di(esti$e tu&e, &ut to a money7rece'tac%e that (radua%%y is %osin( its own $a%ue! This cyc%e has %asted three centuries> from the arri$a% of the )Pi%(rims, who sou(ht freedom of worshi', to the 1u%t of Lucre dominatin( today! This is an economic history! #t is the history of a s'iritua% decadence! Part of this story is technica%, 'art monetary, and 'art financia%! The aim of finance is to (ain &y others0 %a&or! #n the %ast four decades, the aim of finance, in order that the (ains of a sma%% (rou' &e (reater, has &een the retention of a%% the 'rofits of mechanica% in$entions and the %owerin( to a minimum the wor+ers0 rewards! .nd this was done in the o'en mar+et throu(h "ree Enter'rise! -ow7a7days, in norma% times, the necessity of wor+in( as former%y does not e5ist! 3an /uren, a century a(o, was interested in reducin( the wor+in(7day to ten hours! The wor+in(7 day cou%d &e %imited to four hours now, and e$ery&ody cou%d ha$e the o''ortunity of wor+in(! /ut humanity, or, # shou%d say, the wor+in(7c%ass is not %azy! The (reat mass is not touched &y an a''ea% to %aziness! On%y the artist, for centuries, has succeeded in detachin( the idea of wor+ from the idea of 'rofit, and not a%% artists ha$e &een ca'a&%e of this dissociation of conce'ts!

# do not +now whether or not # shou%d cu%% %on( or &rief citations in re(ard to the financia% techni=ue! The former wou%d &e a &ore, the %atter may &e incom'rehensi&%e! 3an /uren was o''osed to im'risonin( de&tors! The maneu$ers of finance are re(istered in 'hrases such as the fo%%owin( 4 O )he increased the amount of the discounts O! #n the month of Octo&er, :8KA, they were forty mi%%ions, and in 6ay, :8K7, 7A mi%%ions!, 6r! We&ster said4 )They must &e decreased &y thirty mi%%ion do%%ars in states a%on( the 6ississi''i!, )The /an+ recei$ed KF: mi%%ions and si5 mi%%ions from the 2o$ernment! The funds under the President of the Re'u&%ic H<ac+sonI amounted to somethin( &etween fifteen and twenty thousand!, H-ote 4 the President contro%%ed THO S.-*S not mi%%ions!I )O &y usin( the methods of the &an+ in order to disorientate credit within the country, &y creatin( 'anic so as to dominate the mind of the 'u&%ic O, )O 2o$ernment mem&ers e5c%uded from the rea% committee of the /an+ *irectors O, )O The /an+ President mani'u%ates the (o$ernment funds to &etray the nation O P(reasin(0 the Press &y ma+in( nomina% %oans to non7e5istin( &ai%smen!, )O The /an+ restricted se$enteen mi%%ions of the si5ty7 four mi%%ion do%%ar credit O, )#f 6r! Taney HTreasuryI has not 're$ented the /an+0s -ew ?or+ &ranch from co%%ectin( G8,7AA,AAA, and had not armed our city with nine mi%%ion to defend ourse%$es Hi!e! the nationI in that war on our commerce!, 3an /uren had the transitory honor of &ein( ca%%ed THE L#/ER.TOR O" THE TRE.S R?! /ut his decade has disa''eared from .merican memory! .fter the assassination of Linco%n, President <ohnson did not ha$e the means to maintain fisca% %i&erty! #n :878 a 1on(ressman e5'ressed, or e5'%ained, his 'osition &y sayin( that he wanted to +ee' at %east a 'art of the non7interest7&earin( nationa% de&t in circu%ation as currency! The )"ree Si%$er, mo$ement tried to o''ose the interests of the si%$er owners to the )2o%d, interests, &ut did not (o to the root! Wi%%iam <ennin(s /ryan headed this mo$ement, and a few o%dsters remem&er it e$en now! Once in a whi%e an idea%ist '%ays u' to the Si%$er men, or is started on his career &y them! . Si%$erite, 'ri$ate%y, wi%% sometimes confess the truth as, in fact, /ryan confessed it to Litson! .t the moment # don0t remem&er if Litson 'u&%ished the detai%s of the inter$iew or communicated them in a 'ersona% %etter, to the undersi(ned! # am under the im'ression that # ha$e seen these detai%s in 'rint! /ryan, +nowin( that he was continuin( an honest tradition, and wantin( to +ee' it a%i$e, fou(ht $i(orous%y, ta+in( ad$anta(e of whate$er means were a$ai%a&%e to him! Chronological Outline The chrono%o(y of .merican economic e$ents is, rou(h%y, as fo%%ows4 :;DA:75A 8 /e(innin( and de$e%o'ment of co%onia% 'ros'erity &ased fina%%y, u'on a system of %oans &y some of the 1o%onia% 2o$ernments to those who ti%%ed the %and! This 'ros'erity stimu%ated (%uttony, and the London mono'o%ists tried to im'ose their monetary mono'o%y> :75A:77;:788 8 Pre'aration for the Re$o%ution, "ormation of the .merican System> :78@Washin(ton President! Stru((%e &etween Hami%ton, conser$ati$e a(ent of finance and <efferson0s democratization! P"raud of the .ssum'tion!0

:8A::8D5 8 <efferson and his disci'%es in the White House! The Louisiana Purchase! Second war a(ainst En(%and> :8D@:8F: 8 <ac+son and 3an /uren in the White House! "i(ht &etween the /an+s and the 'eo'%e! The 'eo'%e won> :8F::8;: 8 2o%d disco$ered in 1a%ifornia, in :8:A! *e&ts contracted &y the )South, to -ew ?or+ /an+ers, and e%sewhere! -e(ro S%a$ery! Sym'toms of the 1i$i% War> from :8;: War of Secession! Trium'h of "inance> :8;@:877 8 2rant President! Scanda%s! 2o%d a(ainst the 'eo'%e> :8@AThe si%$er =uestion! Trusts> :@:F#ndustria% de$e%o'ment! Technocracy! The menace of .&undance! :@K51hart of Potentia% Product 1a'acity> :@K@)War is his on%y way out,, 'hrase 'ronounced &y a 1on(ressman to si(nify that Roose$e%t had made such a mess of thin(s that war was his on%y way of esca'e! #n other words, the on%y way to hide his 'ast and to maintain his 'o%itica% 'ower! Rottenness "rom the ).nnua% Re'orts of the Secretary of the Treasury,, &e(innin( with <une :@KD, to <une :@K@, it can &e %earned that the Treasury of the nited States &ou(ht ten &i%%ion do%%ars of (o%d at thirty7fi$e do%%ars 'er ounce instead of GD:!;5 as in former times! The Treasury does not issue any re'orts re(ardin( the source of this (o%d and, e$en if the Secretary of the Treasury himse%f wanted to find out where the (o%d came from, a%% he cou%d find in his fi%es wou%d &e the names of the %ast se%%ers! This means that the (o$ernment, or the .merican 'eo'%e, 'aid ten &i%%ion do%%ars for (o%d that, &efore the chan(e in 'rice, cou%d ha$e &een &ou(ht for si5 &i%%ions! This amounts to a (ift of four &i%%ion do%%ars to merchants of (o%d amon( whom are, as has a%ways &een the case, many forei(n merchants! On%y 2od +now how much (o%d the 'eo'%e &ou(ht durin( the war, from :@K@ to the 'resent time! The tric+ is sim'%e! Whene$er the Rothschi%d and other (ents in the (o%d &usiness ha$e (o%d to se%%, they raise the 'rice! The 'u&%ic is foo%ed &y 'ro'a(andizin( the de$a%uation of the do%%ar, or other monetary unit accordin( to the country chosen to &e $ictimized! The ar(ument is that the hi(h 'rice of the monetary unit is in9urious to the nation0s commerce! /ut when the nation, that is, the 'eo'%e of that nation, own the (o%d and the financiers own the do%%ars or other monetary units, the (o%d standard is restored! This raises the $a%ue of the do%%ar and the citizens of )rich, nations, as we%% as citizens of other nations, are didd%ed! The mani'u%ation of si%$er fo%%ows sim'%e %ines! #t a%% fits 'erfect%y into what .ristot%e ca%%s the )common 'ractice of commerce, HPo%itics :!FE5 Tha%esI! The si%$er merchants are %ess im'ortant than the merchants of (o%d! Other meta%s are mono'o%ized, &ut they do not enter into the monetary (ame! With these +eys you can o'en the records, or the 1on(ressiona% Record, whene$er you wish, and you wi%% find attem'ts to resist these swind%es thou(h they are (ettin( wea+er and wea+er!

Remedies Words &ecome 'a%e! "acts re'eat themse%$es! Truth ma+es an a''earance at times, &ut it is misunderstood and e5'osed to ridicu%e! Economists do not see what stands ri(ht in front of their own eyes! -ine years a(o a we%%7+nown and a&%e #ta%ian socio%o(ist had not %oo+ed at the inscri'tions on either #ta%ian /an+ or State &i%%s! These are the economists of the more7 than7a7thousand7year7o%d tradition! Peo'%e do not %oo+ at '%ain common o&9ects! . 'rofessor from the London Schoo% of Economics once sent me three satirica% 'ost cards! One of these was furnished with a sort of &e%%ows so that when the card was 'ressed &etween the fin(ers it s=uea+ed! He had &ou(ht these cards with a meta% )&on, issued &y the "rench 1ham&ers of 1ommerce that had no $a%ue outside of "rance! He sent me these cards, ne$erthe%ess, to deny the 'ossi&i%ity of ha$in( one +ind of money $a%id e$erywhere and, at the same time, another +ind $a%id on%y within the country of ori(in! The di$erse (rou's of monetary re&e%s and reformers, %ac+in( a +now%ed(e of tradition and 'ossessin( on%y a 'art of the truth, contradict one another and do not understand their different termino%o(ies! "ernando Ritter is 'erfect%y ri(ht in insistin( that the farmer who consi(ns his wheat to the common (ranary must &e (uaranteed the 'rice of ferti%izers etc!, necessary for future cu%ti$ation! He echoes the statement of Qu&%ay at the time of the formation of the nited States4 )#t is necessary to ha$e the 'u&%ic &e%ie$e that this 'a'er is (ood for somethin(!, HThat is, e5chan(ea&%e for a(ricu%tura% 'roducts or other (oods!I #t is necessary that money &e a (uarantee of future e5chan(e! This is in %ine with the commodity do%%ar fi(ht, and for a 9ust 'rice7inde5! .(ainst this 9ust 'ro'osition Wa%% Street roared4 )Ru&&er *o%%ar,! The usurers, natura%%y, o''ose any contro% on the 'art of the 'u&%ic or of a state that 'retends to re'resent the 'u&%ic0s interests! The usurers want the contro% to remain entire%y in their hands! The who%e history of the nited States osci%%ates &etween these two cam's! The 'eo'%e re&e%%ed a(ainst the London usurers and instituted a (o$ernment in .merica! This (o$ernment fe%% 'rey to the resident usurers who +e't in touch with the arch7usurers in the mother7country! /e%mont used to re'resent the Rothschi%d, etc! Today the 6ain Office is in -ew ?or+, the /ranch Office is in London! The u&icity of the $ictims does not matter, and the Head Office maintains a hi(h de(ree of mo&i%ity! The usurers act throu(h fraud, fa%sification, su'erstitions, ha&its and, when these methods do not function, they %et %oose a war! E$erythin( hin(es on mono'o%y, and the 'articu%ar mono'o%ies hin(e round the (reat i%%usionistic monetary mono'o%y! "ibliogra$h! -o $ast readin( is needed to understand this 'hase of history, if the reader &e(ins from the &e(innin(, that is, with the POL#T#1S and E1O-O6#1S of .ristot%e, and the Orations of *emosthenes, that a(ainst *ionysius, for e5am'%e! The case of the nited States, in 'articu%ar, has &een e5'osed in the &oo+s here &e%ow %isted! .s a &e(innin( read the writin(s of <ohn .dams and of <efferson!

1! /owers4 <E""ERSO- .-* H.6#LTO-, for the Scanda% of the .ssum'tion! 3an /uren4 .uto&io(ra'hy! Henry .dams4 "our $o%umes on the .dministration of <efferson and of 6adison! Henry .dams is %ess interested in a s'ecifica%%y Economico76onetary study! -o$e%ists and '%aywri(hts, once in a whi%e, (i$e one a c%earer idea than 'rofessors! One can %earn more from Ernest Poo%e0s THE H.R/O R a&out fast sai%in(7shi's> and from Wi%%iam 6ah%0s TWO PL.?S O" THE SO1#.L 1O6E*? a&out the attem't of mono'o%izin( the (o%d in :8;@, than he is %i+e%y to %earn from historio(ra'hers! # ha$e a%ready touched on the REPORT O" THE -.T#O-.L S R3E? O" POTE-T#.L PRO* 1T 1.P.1#T?, :@K5, -ew ?or+ 1ity Housin( .uthority! #r$in( "isher was the first man to 'u&%ish, in .merica, ST.6P S1R#P, a &oo+ that c%ear%y treats the 2ese%%ist economy! The &asic &oo+ of this schoo% is THE -.T R.L E1O-O6#1 OR*ER, &y Si%$io 2ese%%! H! .! "ac+ of Los .n(e%es, 1a%ifornia, is its .merican Editor! "or years he has &een 'u&%ishin( an idea%istic month%y THE W.? O T! The .%&erta H1anadaI re$o%t 'roceeded from the theories of 1! H! *ou(%as mi5ed with 2ese%%ism! To (et ac=uainted with the Technocrats0 tendencies *e5ter Lim&a%%0s #-* STR#.L E1O-O6#1S wou%d &e usefu%! *! R! *ewey0s "#-.-1#.L H#STOR? O" THE -#TE* ST.TES cou%d &e of he%' to students a%ready 're'ared to understand the im'ortance of the facts %isted in it! This &oo+ %ac+s, 'erha's, tota% candor! #t has &een re'rinted in $arious editions &eyond the :Dth, and it is a fa$orite te5t7&oo+ in ni$ersities! #f my memory ser$es me ri(ht, *ewey does not mention any of the a&o$e7mentioned writers, e5ce't Henry .dams, who is not dan(erous! The students0 %ac+ of 're'aration these days, this modern schizo'hrenia ca%%ed demo7%i&era%, deri$es front the ne(%ect in the study of the 1%assics, and from the erroneous idea that 2ree+ is a dead %an(ua(e, and that it is not usefu% to 're'are ourse%$es for the modern way of %ife! We &e(in with .dam Smith instead of &e(innin( with .ristot%e! Or the student is &ec%ouded with the Esthetics, Poetics, and 6eta'hysics! 1ommercia% schoo%s wou%d 'rofit, if not &y the com'%ete te5t, &y studyin(, at %east, some (ood edition of se%ected 'assa(es of trans%ations! Those who consider this arran(ement scanda%ous and want to &e erudite, cou%d furnish themse%$es with the entire te5t and a s'ecia% inde5 of 'assa(es that ha$e an immediate and direct im'ortance for the affairs of today! This cou%d ser$e as true teachin( for %ife, and this second arran(ement wou%d not harm any man of (ood wi%%! Chronological Table re(ardin( other facts, '%us a few indications as to the de(ree of 'ers'icacity e5istin( durin( the di$erse e'ochs in .merica!

:;8F 8 En(%and su''resses the 6int of 6assachusetts which had coined a %itt%e si%$er! :8:F 8 1a%houn o''osed the 'rocess in which the (o$ernment was forced to (et its own credit on %oan! :8:@ 8 1rawford issued Treasury &i%%s &earin( no interest! :8D5 8 The industria% crisis in En(%and %ed to dum'in( on the .merican mar+et, (%uttin( it with merchandise of &an+ru't 'rices! :8KD 8 <ac+son 4 )THE RE.L 3.L E O" L.-* #S * E TO L./O R,! :8KFJ5 8 <ac+son e%iminates the nationa% de&t! The nited States was %eft with no de&t whate$er! 'on e5aminin( the recei'ts and the e5'enditures of the (o$ernment &etween :8:; and :8KK, e$en *ewey admits that the (reat decrease of e5'enditure was due to the reduction and, fina%%y, to the e%imination of the 'ayments of interest on 'u&%ic de&t! /rief%y 4 :8:; 8 Recei'ts GF7,;77,AAA!AA E5'enditure GK:,:@;,AAA!AA :8KK 8 Recei'ts GKK,@F8,AAA!AA E5'enditures GDK,A:7,AAA!AA #nterest on the Pu&%ic *e&t4 #n :8KK GKAK,AAA!AA, and %ater QERO! :8K; 8 The -ationa% Treasury, ha$in( an acti$e &a%ance, distri&uted this money to the different states! Without (oin( &ac+ to the %e(endary 6ohammedan 1a%if, those who, &ecause of i(norance, shouted that 1!H! *ou(%as0s 'ro'osa% of a -ationa% *i$idend was a scanda% and a no$e%ty, may consider the fo%%owin( fact 4 6assachusetts distri&uted its share of the money to the $arious cities and towns> /oston used it for current e5'enses> Sa%em &ui%t a 6unici'a% /ui%din(> 2roton re'aired a &rid(e, and 6aine made a 'er ca'ita distri&ution! :8;KJF 8 1hase fa$ored the ma5imum distri&ution of the -ationa% Loan amon( the 'eo'%e instead of traffic+in( with the &an+s! :878 8 The 2reen&ac+ Party was in fa$or of the -ationa% /i%%s and a(ainst the &an+ers0 mono'o%y! This 'arty recei$ed a mi%%ion $otes! :88F 8 The end of the 2reen&ac+ Party! -OTE4 # shou%d not wish to a''ear un9ust to *! R! *ewey when # say that he %ac+s candor! He has, 'erha's, decei$ed himse%f &y his own $iscid termino%o(y! "or e5am'%e, credit is not direct%y transformed into wea%th! -o 'a'er o'eration can effect such a chan(e, &ut credit can easi%y &e transformed into &uyin( 'ower with $aryin( termino%o(ies 'rinted on any su&9ect, or su&stance! . 'erfect e5am'%e of instincti$e monetary (ood sense is met today in this sma%% town! The news$endor, 6r! /affico, certain%y not an erudite man, &ecause he %ac+ed the necessary sma%% chan(e, and not wantin( to use 'osta(e stam's as they %ose their freshness and 'aste in a series of e5chan(es, has had some %itt%e ta(s 'rinted which %ie now (i$es to his

'atrons as chan(e! # found Si(nor /affico indi(nant &ecause other merchants had &e(un to acce't his ta(s as money and he had to ha$e another su''%y 'rinted! .ny form of Transfera&%e memory7aid ser$es, and has ser$ed, to sim'%ify &oo+7+ee'in(, and to %i&erate us from the necessity of +ee'in( e$ery de&it and e$ery credit written in a %ed(er! #n order that money, admonitions, sym&o%s, or certificates of de&t &ecome $a%id means of e5chan(e, a%% that is necessary is that whoe$er issues them ha$e the means to honor them! "! Ritter, in a recent artic%e, insists on the con$erti&i%ity of money! His 'essimism does not %ean at a%% on the 'ossi&i%ity, or ad$isa&i%ity of usin( %a&or as a 6E.S RE O" THE 3.L ES of the (oods to &e de%i$ered! Notes :! Muotation from . -EW .6ER#1.- H#STOR? &y W!E! Woodward! D! Parisina d0Este was the wife of -icco%o ### of "errara! She was e5ecuted after the disco$ery of her adu%tery with -icco%o0s son (o! 8 Editor! K! Thomas <efferson, the architect of 6ontice%%o, his own home! 8 Editor! )6y efforts durin( the %ast ten years, in so far as the historica% 'rocess and es'ecia%%y the monetary 'ro&%em are concerned, ha$e &een directed towards esta&%ishin( a corre%ation &etween "ascist economics and the economics of canon %aw Hi!e!, 1atho%ic and medie$a% economicsI, on the one hand, and, on the other, 6a9or *ou(%as0s Socia% 1redit 'ro'osa%s to(ether with those of 2ese%%, +nown as the )-atura% Economic Order,, or sometimes as )"reiwirtschaft!, With re(ard to this %ast, it shou%d &e noted that the mechanism, more or %ess in$ented &y 2ese%%, is se'ara&%e from his more or %ess 'o%itica% $iews> it cou%d function 9ust as we%%, that is, in a contro%%ed economic system, as under the re(ime of unrestricted commerce that 2ese%% assumed!, 8 Ezra Pound