Thmas J. DiLrenz: A Nte n the Machiavellian origins f Central Banking…
The Mystery of Banking
(2008, . 191) Murray Rthbard
explained how the rst central bank in America, the Bank of
Nrth America, was “driven thruh the Cntinental Cnress
by (Philadelphia congressman and nancier) Robert Morris in the
srin f 1781.” Mrris (a native f Liverl, Enland) was theleader f the “natinalists,” als knwn as the Federalists, whwanted t imse the British mercantilist system n Americaimmediately after havin fuht a revlutin aainst that verysystem. As Rthbard (2008, . 192) exlained, Mrris and hiscmatrits wanted
T re-imse in the new United States a system f mercantilism and bivernment similar t that in great Britain, aainst which the clnistshad rebelled. The bject was t have a strn central vernment,articularly a strn resident r kin as chief executive, built u by hihtaxes and heavy ublic debt. The strn vernment was t imse hihtariffs t subsidize dmestic manufacturers, devel a bi navy t enu and subsidize frein markets fr American exrts, and launch amassive system f internal ublic wrks. In shrt, the United States wast have a British system withut great Britain.
An imrtant art f “the Mrris scheme,” as Rthbard called it,was “t ranize and head a central bank, t rvide chea creditand exanded mney fr himself and his allies. The Bank f NrthAmerica was deliberately mdeled after the Bank f Enland”(Rthbard, 2008, . 192). At the time, Mrris had been ainted
as America’s rst Superintendant of Finance, a position that would
later be labeled Secretary f the Treasury.The Bank f Nrth America was iven a mnly rivilee f its ntes bein receivable in all tax ayments t state vernmentsand the federal vernment, and n ther banks were ermittedt erate in the cuntry. It lent mst f its newly-created mneyt the federal vernment, and taxayers were frced t ay theBank rincial and interest. Desite these mnlistic rivilees,
however, a lack of public condence in the Bank’s inated notes
led t their severe dereciatin and the Bank was rivatized in1783, less than tw years after it was created.