6139008-History-of-Money

William Paterson, Founder of the Bank of England and creator of the National Debt, at a meeting of directors said: “TheBank hath benefit of interest on all monies which it creates out of nothing.”Encyclopaedia Britannica (14th ed.) Vol. 3, under ‘BANKING AND CREDIT’ “Banks create credit. It is a mistake to supposethe Bank Credit is created to any important extent by the payment of money into Banks.”Ditto, Vol. 15 under ‘MONEY’: “Banks lend by creating credit; they create the means of payment out of nothing.”Reginald McKenna, then Chairman of the Midland Bank. Chancellor of the Exchequer addressing Bank shareholders, Jan25 1924, said: “I am afraid the ordinary citizen will not like to be told that banks can and do create money. The amount ofmoney in existence varies only with the action of the banks in increasing and decreasing deposits and bank purchases.Every loan, overdraft, or bank purchase creates a deposit, and every repayment of a loan, overdraft, or bank destroys adeposit.” The Report of the McMillan Committee, 1929 p. 34. para 74, stated: “It is not unnatural to think of the depositsof a bank as being created through the deposit of cash representing savings or amounts which are not for the time beingrequired to meet expenditure. But the bulk of the deposits arise out of the actions of the banks themselves, for bygranting loans, allowing money to be drawn on overdraft or purchasing securities, a bank creates a credit in its bookswhich is equivalent to a deposit...” R.G. Hawtrey, Asst. Secretary to the Treasury, in a B.B.C broadcast, March 22, 1933,said: “I agree with him [Douglas, founder of Social Credit] that banks create money and that trade depression arises fromfaults in the Banking System in discharge of that function.” H.D. McCleod, MA, in his ‘The Theory and Practice of Banking’stated: “The essential and distinctive feature of a bank is to create and issue credit payable on demands and this credit isintended to be put into circulation and serve all the purpose of money. A bank, therefore, is not an office for theborrowing and lending of money. It is a manufactory of credit.”Lord Sir John Stamp, Director of the Bank of England and one of the richest men in the 1920s said this speaking at theUniversity of Texas in 1927 and repeated it at an address at Central Hall, London 1937, said: “The modern bankingsystem manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that wasevery invented. Banking was started in iniquity and born in sin. Bankers own the Earth; take it away from them but leavethem with the power to create credit, and, with a stroke of the pen, they will create enough money to buy it back again.Take this power away from them and all great fortunes, like mine, would disappear, for then this World would be ahappier and better World to live in. But, if you want to be the slaves of Bankers and pay the cost of your own slavery,then let the Bankers create money and control credit.” Branch Banking, (a banking journal) July 1938, stated: “There areenough substantial quotations in existence to prove to the uninitiated that banks do create credit without restraint andthat they create the means of repayment within themselves.” W. Hadley Robinson, Fellow of the Institute of Bankers,(F.I.B.) in his ‘Money and the Citizen’: “They [the Bankers] manufacture credit by a mere stroke of the pen.” A.L.G.MacKay, Professor of Economics, University of Rangoon, stated “By means of a loan, overdraft, or by cashing of bills, thebanks are able to increase the volume of deposits in the community, and because of this process it is not correct to saythat a bank loans out deposits which people make with it. It is clear that it creates the deposit by the issue of the loan;the loan travels back to the bank or another bank and assumes the form of a deposit”.H.W. Whyte, Chairman of the Associated Banks of New Zealand Monetary Commissions 1955: “The banks do createmoney. They have been doing it for a long time, but they didn’t quite realise it, and did not admit it. Very few did. You willfind it in all sorts of documents, financial text-books, etc. But...there has been a development of thought, until today Idoubt very much whether you would get many Bankers to deny that banks create credit.”. ‘A Textbook of Economics’1966 J.L. Hanson, MA (Leeds), PhD, BSc. (Econ), London. Pgs. 386/7, ch. BANK LOANS CREATE DEPOSITS: “Whether abank lends by overdraft or by means of a loan account, the result is the same - it increases the total volume of purchasingpower, that is, the quantity of money. It has been seen that when a bank grants credit it creates what it lends and sototal purchasing power is increased.”. The McGraw-Hill Dictionary of Modern Economics (USA) 1973. Douglas Grenwald,Chief Economist and Head of the Department of Economics: “A system of banks now serves three main functions: 1. Itlends money. 2. It accepts money as a deposit. 3. It creates and lends its own credit.” A New Dictionary of Economics1986. A.B. Taylor, BSc (Econ) ACCS. FSC: ch. BANK CREDIT: “Credit is created by a bank increasing the size of theaccount of a deposit.”Stage One Economics 1985 R.G. Winfield. BSc (Econ) Hond. F.J.B., Principal Lecturer at the City of London Polytechnic,ch. HOW THE BANKS CREATE MONEY, p. 198: “The deposit banks, unlike the other banks, are actually able to createmoney.” He explains this with figures, p. 199: “Thus it is that while lending creates deposits the repayment of bank crediteffectively destroys money.” First Principles of Economics 1988. Richard G. Lipsey, Sir Edward Peacock Professor ofEconomics, Queens University, Kingston, Ontario, Canada, Colin Harbury, Professor of Economics, City University, London,ch. THE CREATION OF MONEY BY THE COMMERCIAL BANKS. p.427: “The main concern in this chapter is with the supplyof money. From that point of view, the most important aspect of the banking system is its ability to create and destroymoney. Dictionary of Economics 1992. Donald Rutherford. ch. ADVANCE, p.310: “When a bank creates money it does soby allowing advances to its customers, i.e., permitting them to draw on the extra bank deposits created for them.” HowMoney is Managed 1954 Paul Einzig, Doctor of Political & Economic Sciences, University of Paris. Author of 42 books,mainly on economics, p. 216: “The system under which it is possible to create large quantities of money through theoperation of bank credits and deposits is a modern development”. P. 217, “...the banks are now in a position to lend orinvest amounts many times larger than their own capital and reserves or their cash holdings”.The Modern Encyclopaedia (Illustrated) 1965 Odhams Books Ltd. P. 711 under CREDIT: “The creation of credit, by makingadditional means of payment available, adds to the circulation.” Applied Economics Made Simple (Made Simple Series).The Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 415