Re:The Fed Is Down
by dragonwriter on Wednesday February 24, 2021 @10:43PM
(#26259453)
> The proper role of the US Government and Money has been under debate ever since Hamilton was appointed Treasury Secretary under George Washington. (EDIT: actually, even earlier than that, but the country didn't exist yet...)
In regard to the parenthetical, the country existed either from the First Continental Congress, the Declaration of Independence, the Articles of Confederation, or the surrender at Yorktown, but in any case before the adoption of the Constitution, much less Hamilton's appointment under it as the first Secretary of the Treasury, which is a really odd point to chose as the starting point of the nation.
Jefferson wanted one system, Hamilton wanted another. And the two sides have been arguing for the past 200+ years. Sometimes, the central bank appears, sometimes it disappears. Then silver+gold, then removal of the silver standard (gold-only standard), then etc. etc. etc.
The Revolutionary War required money and bonds. Immediately upon the end of that war came the question of how to organize and pay those loans. Should it be held by the states? Or by the national government? Should a central bank even exist, or is a loose collection of banks good enough? Should there be a national currency, or should the States make their own currency? The Continental Congress's dollar was hit severely by inflation: losing 99% of its value in just a decade or so. Not a big deal: most Americans used Spanish Pesos back then due to their reliable silver weight.
The money issue was front-and-center at the birth of this country. Lots of debate and discussion (and duels!!) occurred over the issue. Arguing about money (literally to death) is a proud American tradition.