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"In the mid-1700s the American Colonies were prospering, in part because they were issuing their own money called "Colonial Scrip," which was strictly regulated and did not require the payment of any interest. When the bankers in Great Britain heard this, they turned to the British Parliament, which passed a law prohibiting the Colonial Scrip, forcing the colonists to accept the "debt" or "fiat" money* issued by the Bank of England. Contrary to what history teaches, the American Revolution was not ignited by a tax on tea. According to Benjamin Franklin, it was because "the conditions [became] so reversed that the era of prosperity ended." He said:

    "The Colonies would gladly have borne the little tax on tea and other matters had it not been the poverty caused by the bad influence of the English bankers on the Parliament, which has caused in the Colonies hatred of England and the Revolutionary War." (Source)



When the Treaty of Paris was signed in 1783, most Americans thought that total Independence from England had been won. The fact of the matter, however, is that true Independence from England never really materialized:


"Working with Hamilton, (Aaron) Burr helped raise subscriptions (shares) for a private company to improve the water supply of pestilence-ridden Manhattan, but Hamilton and Burr also secured a charter (underwriting) from the Bank of England. New Yorkers were shocked to learn that the surplus capital from the venture had been used to establish the Bank of Manhattan, as the BNY was first known.

Twenty-five thousand shares were issued, of which 18,000 were held by investors in England. The Bank of England loaned the United States money in exchange for securities of the United States.

Now the creditors of the United States, which included the Bank of England, wanted to be paid the interest on the loans that were granted to the United States. So Hamilton came up with the bright idea of taxing alcohol. Consumers resisted, so President Washington sent out the militia to collect the tax which they did. That episode became known as the Whiskey Rebellion." (Source)


In essence, the "Whiskey Rebellion" was fought to oppose the first version of the Internal Revenue Service. That is, the first attempt by the government of the United States to collect interest for the "Banksters" through the use of force. Note that the first unofficial Bank of the United States was 72% owned by "investors" in Great Britain. I have argued in past articles that this was the true price of peace with England, allowing the Crown and the Banksters to continue to profit from our labors through the use of loans and currencies.

Under the "Articles of Confederation", the government was too weak to collect taxes from its citizens. This was one of the gaping flaws exposed by the "Whiskey Rebellion". It was also a reason not to invest in an American Chartered Bank. After the passage of the Constitution, this was no longer an issue. Yet, we still see the creation of the First National Bank with 40% foreign ownership by the Banksters of England.

Going from 72% to 40% foreign ownership can be seen as a partial victory. Yet, it was hardly enough to placate those that wanted a clean break from the British and their Bank of England. In 1811 the First Bank of the United States was dissolved. The primary argument being that "States Rights" gave the States, not the Federal government, the right to control currency.

Interestingly enough, this move gave more power to Bank of New York and its British Investors. At least in the commerce capital of the United States, New York City. But, banksters being banksters, they wanted the whole enchilada. The British instigated for War through kidnapping American sailors and impressing them into the British Navy. The War of 1812 had begun.

The British won and the 2nd National Bank was created. Again, the British owned a significant share in the operation and charged interest for using their worthless paper currency.


"The Second BUS was still controlled by the Bank of England and foreign investors, who not only profited greatly by charging interest for the use of their paper American currency, but England still resented American independence." (Source)

With the demise of the 2nd National Bank and the creation of state chartered institutions, the balance of power still remained in the hands of the British Banksters through the Bank of New York and other foreign owned banking institutions. They were behind the "Panic of 1837" by insisting on payment to them be made in gold and silver. Much of the State and local Currencies were backed by real-estate. This demand for gold and silver forced local banks to foreclose on real-estate. The result was gross devaluations of land that was sold for the only real wealth in America, gold and silver.

Abraham Lincoln favored a National Bank, but without the foreign ownership and political manipulation:


"The Eastern banks had agreed to a $150 million government loan package just after the Civil War commenced in 1861. They would resell U.S. bonds in England with the Barings and Rothschilds, putting the United States at the mercy of the British aristocracy.

In December 1861, President Lincoln's own financial plan was presented by Treasury Secretary Salmon Chase (a free-trade liberal sweating and agonizing in the President's harness), and by Lincoln himself. Its measures included:

    * a nationally regulated private banking system, which would issue cheap credit to build industry;

    * the issuance of government legal-tender paper currency;

    * the sale of low-interest bonds to the general public and to the nationally chartered banks;

    * the increase of tariffs until industry was running at full tilt;

    * government construction of railroads into the middle South, promoting industrialism over the Southern plantation system.


Lincoln was no friend to the "Banksters". This, more than anything else, led the British to support the Southern States in the Civil War.  We will continue this discussion in the next article.

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