Chapter 14 3. The First Battle of International Bankers: The First Bank of the United States

I firmly believe that banking institutions are a greater threat to our liberty than enemy armies.Thomas the third president of the United States.Jefferson, 1809 Alexander.Hamilton was a heavyweight with close ties to the Rothschilds.Born in the British West Indies, he came to the United States to marry the daughter of a prominent New York family while concealing his age, real name and place of birth. According to payment receipts in the British Museum, Hamilton accepted the Rothschild family. funding. In 1789, Hamilton was appointed by President Washington as the first Secretary of the Treasury of the United States. He has always been the main promoter of the US central banking system.In 1790, facing the severe economic difficulties and debt crisis after the Revolutionary War, he strongly suggested that Congress establish a private central bank similar to the Bank of England to be fully responsible for issuing currency.His main idea is: a privately owned central bank, headquartered in Philadelphia, with branch banks set up everywhere, government currency and taxes must be placed in this banking system, the bank is responsible for issuing national currency to meet the needs of economic development, to the United States The government lends money and charges interest.The bank's total share capital is $10 million, with private ownership of 80 percent and the US government the remaining 20 percent.Twenty-five members of the twenty-five-member board are elected by shareholders and five are appointed by the government.

Hamilton represented the interests of the elite, and he once pointed out that all societies are divided into the minority and the majority.The former were well-born and wealthy, while the latter were ordinary people.The masses are volatile and changing, and they rarely make good judgments and decisions. Jefferson, on the other hand, represented the interests of the people. In response to Hamilton's point of view, we hold the following truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain inalienable rights, among which is life. rights, liberty and the pursuit of happiness.

In December 1791, when Hamilton's plan was submitted to Congress for discussion, it immediately aroused unprecedented and fierce debate.In the end, the Senate passed the proposal with a narrow majority and the House of Representatives passed by a 39-20 vote.At this time, President Washington, who was overwhelmed by the serious debt crisis, fell into deep hesitation. He consulted the then Secretary of State Jefferson and Madison, and they made it clear that this proposal obviously conflicted with the Constitution.The Constitution authorizes Congress to issue currency, but it never authorizes Congress to transfer the right to issue currency to any private bank.Washington was clearly so moved that he was determined to veto the bill.After hearing the news, Hamilton immediately came to lobby Washington. Treasury Secretary Hamilton's books seemed more convincing, that is, if a central bank is not established to obtain foreign capital shares, the government will soon collapse.Ultimately, the imminent crisis overwhelmed long-term concerns, and President Washington signed the mandate of the first central bank in the United States on February 25, 1792, valid for twenty years.

The international bankers have finally scored their first major victory.By 1811, foreign capital accounted for seven million of the ten million shares, the Bank of England and Nathan.Rothschild becomes a major shareholder in the US central bank. The U.S. government's debt in 1781 was only five.$60,000, including one.$20,000 in international debt and four.$40,000 in domestic debt, and in just five years from 1791 to 1796, when the central bank was established, the U.S. government's debt increased by $8.2 million. Hamilton ended up becoming extremely rich.He later with Aaron.The Manhattan Company of New York, founded by Paul Bo, became the first bank on Wall Street, and it merged with Rockefeller's Chase Bank in 1955 to become Chase Manhattan Bank.

Jefferson ruefully said in 1798: I wish we could add even one amendment to the Constitution to abolish the power of the federal government to borrow money. When Jefferson was elected the third President of the United States (1801︱1809), he spared no effort to abolish the First Bank of the United States. By the time the bank expired in 1811, the struggle between the two sides reached a fever pitch. , the House of Representatives rejected the bank mandate extension by a vote of 65 to 64, while the Senate was tied 17 to 17.This time, Vice President Clinton broke the deadlock and cast a crucial veto, and the First Bank of the United States closed its doors on March 3, 1811.At this time, Nathan in London.Rothschild was furious when he heard the news. He threatened: Either grant an extension to the (First America) Bank, or the United States will face the most catastrophic war.As a result, the U.S. government was unmoved, and Nathan responded immediately: teach these unreasonable Americans a lesson and beat them back to the colonial era.

The result was the War of 1812 between Britain and America a few months later.The war lasted for three years, and Rothschild's purpose was very clear, to fight until the U.S. government was so indebted that it finally had to surrender and let the central bank they controlled continue to operate.As a result, the debt of the U.S. government increased from $45 million to $127 million. The U.S. government finally succumbed in 1815. President Madison declared on December 5, 1815 The establishment of a second central bank was proposed, and the result was the Second Bank of the United States (1816︱1832), which was born in 1816.