Commentary :: Economy and Trade : General : Legislation


A Proposal that Would Require the Following Amendment to the Federal Constitution:


Money and Credit – Congress Asserts Power To Coin Money, and Emit Bills of Credit

[SECTION 1.] The Congress hereby asserts the power, granted in this Constitution, to coin money, and to regulate the value thereof. -- And further, to emit non-interest-bearing bills of credit directly through the Treasury Department [ on the Credit, and in the Name of the People ].

[SECTION 2.] The Congress hereby authorizes the Treasury to issue a sufficient quantity of “dollars” to purchase back the capital stock of the Federal Reserve Bank from the private owners, by eminent domain.

[SECTION 3.] The Federal Reserve Bank shall henceforth be subsumed into the Treasury, and function as a Sub-Treasury Central Bank of issue. Henceforth they shall be one institution, and be called, formally, the Treasury of the Common=Wealth of the United States of America, or commonly, “The Treasury of Common=Wealth.”

[SECTION 4.] The Treasury of Common=Wealth [ as the fountainhead of Credit-Creation in the nation ] shall henceforth issue as Money only non-interest-bearing Notes, and Mint coins of pure Specie, stamped with their weight and fineness. The books, accounts and records of the Treasury shall continually be open to public scrutiny.

[SECTION 5.] The Treasury of Common=Wealth shall honor, and continue to pay (by means of non-interest-bearing notes, and checks) the interest on all outstanding U. S. Treasury Securities, as they come due. There shall be no further issues of Treasury Securities, or Bonds.

[SECTION 6.] The State Treasury departments, of each of the fifty States, are also hereby empowered, by the same creative principle [ formerly given by charter to banks ] to create Credit within their own jurisdictions, in the form of checks, signed by the State comptrollers, in accordance with appropriations made by the State legislatures, for the purpose of maintaining State institutions, infrastructure, and salaries.

[SECTION 7.] In accordance with the provisions of this Article, all banks and financial institutions in America shall receive new charters from the Treasury. The Treasury shall henceforth have the unique and sole power within the nation to create Credit – a function formerly granted by the government [ and thus erroneously delegated ] only to Banks. Henceforth private banks may charge interest, to service accounts.

[SECTION 8.] In Sum, this Article defines, and enhances the powers granted to Congress and the Treasury, under Article I, Section 8, clause 5, of this Constitution. Furthermore, it amends and modifies Article II, Section 10, clause 1, to empower State Treasuries to create [ a limited amount of ] non-inflationary Credit, in the form of check-book money in order to meet the pressing needs of the states.

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-- Mark Twain
Source: "Glances at History" (suppressed)

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