Honest Money

INDEX

Abraham, 19

Aldrich, Sen. Nelson, 111, 112

bank collapse, 101

bankers, 87–89, 93

bank failures, 113

banking, 81–93, 104

bank charters, 139

bank runs, 101, 106, 114, 123, 135

business loans, 90–93

charitable loans, 88, 89–91, 93

check-writing privileges, 134, 135

collateral, 91–92, 95–97, 105, 106, 138

demand deposits, 98, 104

depositors, 87–89, 93, 98

dominion and, 136–138, 140

Federal Deposit Insurance Corporation (FDIC), 121–123, 125

Federal Reserve System, 73, 103–104, 110, 111–115, 116, 117, 118–121

“free” services, 134–135

importance of, 87

interest, 81, 85, 87, 88, 90, 92, 93, 102, 131

international commercial banking system, 123–124

multiple indebtedness, 97–99, 105, 106, 128, 139

100 percent reserve banking, 134–136

usury, 81–82, 90, 91, 92

without fractional reserves, 134

See also fractional reserve banking; honest banking

Bank of New York, 117

Bank of the United States, 113, 114

bank runs, 101, 106, 114, 123, 135

barter, 11, 33

Belshazzar (King), 35

Bible

on charitable loans, 88, 89, 91, 93

on corrupt practices, 58

on debt, 127, 137, 138

on dominion, 136, 140

on extending credit, 137

gold in, 19–21, 28

on lending, 136–137

monetary units in, 36

on money, 28, 128, 138

on multiple indebtedness, 97–99, 105, 106, 128, 139

on owing, 136

purging dross, 46, 79

on repentance, 148

responsibility of men for their actions, 25

sovereignty of God, 25, 28

taxes in, 22–23

on usury, 81–82, 90, 91, 92

on weights and measures, 31–32, 37, 71, 128

Biblical banking, 81–93

fundamentals of, 92–93

See also honest banking

Biblical money. See honest money

black market, 64, 66

boom and bust, 103, 106, 119, 148

borrowers, 87

bribes, 47, 49

business loans, 90–93

Byzantium, 128

capitalism, as cause of economic ills, 104, 107

cartel, 57

“certified” money, 143

charitable loans, 88, 89–91, 93

cheating, 35–36, 50

checks, 40, 44

check-writing privileges, 134, 135

Christ and the Caesar (Stauffer), 69

Christians, lending by, 137–138, 140

cigarettes, as money, 10

coins

counterfeiting, 42

debasement of, 48–49, 60–62, 64, 70–71, 78

denarius, 68–69

Greek coins, 70

Gresham’s law, 58–60, 129, 131

history of, 23, 47, 77–78

as money, 36–38

Roman coins, 48, 67–69

the State and, 69–71

symbolic importance of, 70

as symbols of authority, 69

as taxes, 70

tribute coins, 68

U.S. gold coins, 125

collateral, 91–92, 95–97, 105, 106, 138

committees, 25–26, 29

The Communist Manifesto (Marx), 75

competition, 25

Continental Illinois Bank, 121

contracts, 138, 142

corruption

economic corruption, 64

government and, 58

moral corruption, 52, 55, 57

something for nothing, 62–63

spread of corrupt products, 60–62

wine production, 55–57

counterfeiters, protecting, 109–111, 124–125

counterfeiting, 39–40, 42, 44, 106, 142

government counterfeiting, 76–77, 102, 103–104, 107

legal counterfeiting, 102, 103–104

private counterfeiter, 76, 77

protecting the counterfeiters, 109–111, 124–125

credit, Bible on, 137

credit cards, 40–41, 44

currency unit, 25–26

David (King), 23

Davison, Henry P., 111, 112

debasement

of coins, 48–49, 60–62, 64, 70–71, 78

by government, 78–80

Gresham’s law, 58–60, 129, 131, 142

of ingots, 48–49, 50–52, 53, 56, 60–62, 64

of money, 62, 64–66, 70–71, 78, 143

of money by government, 78–80

of paper money, 72–73

of wine, 56–57, 63

debt

Bible on, 127, 137, 138

monetization of, 115–118, 124

debt crisis, viii

deflationary depression, 107

Defoe, Daniel, 1

demand deposits, 98, 104

denarius, 68–69

depositors, 87–89, 93, 98

depressions, 102–103, 104, 107, 113

discipline, 32, 141

discounting, future value of goods, 85, 92

“discount” prices, 66

divisibility

of gold, 20

as property of money, 9, 15

doctrine of sunk costs, 4

dominion, 37, 43, 136–138, 140

dross, 46, 51, 79

durability

of gold, 20

as property of money, 9, 10, 15

economic corruption, 64

economic oppression, 58

economy

boom and bust, 103, 106, 119, 148

depressions, 102–103, 104, 107, 113

gold standard, 103, 122–123, 125, 131–133, 139, 142, 145, 146

inflation, 66, 74, 76, 80, 100, 102, 103, 106

recessions, 113

Egypt, famine in, 6–8, 11–12, 14

“elastic currency,” 113

England, 142

equality of exchange, 8

ethical behavior, 37

evaluators, 88

evil, 58, 65

exchange

currency unit, 25–26

of goods, 8, 11

of information, 86

market scales, 33–35

of money, 19

of risk, 86, 87

See also trade

exchange of information, 86

extending credit, Bible on, 137

Ezekiel, 46

“failed” money, 12–13, 14

false weights and measures, 32, 42

famine in Egypt, 6–8, 11–12, 14

Federal Deposit Insurance Corporation (FDIC), 121–123, 125

Federal Reserve Data, 120

Federal Reserve System

about, 73, 114–115, 116, 117, 124–125

audit of, 118

functions of, 103–104, 110, 112–115, 118-121

gold ownership and, 119-120

history of, 111–112, 124

lack of audit of, 118

monetization of debt, 117–118

money supply and, 119

as monopoly, 125

fiat money standard, 133

“fineness,” 36, 37–38

Forbes, Bertie, 111

fractional reserve banking

about, 95–107, 114, 123, 129, 142, 145

creation of money, 99–101

defined, 99

fraudulence of, 138

history of, 130

multiple indebtedness and, 97–99, 105, 106, 128, 139

shrinking of money, 101–103

standard, 132

fractional reserves, banking without, 134

fraud, 33, 34, 37, 39, 47, 141

freedom, money and, 133, 138, 139

free market, 24–25, 27–28

“free” services, 134–135

GAO. See Government Accounting Office

God

as judge, 35–36, 42, 43, 71

love of Israel, 21

mercy of, 49

moral standards of, 42

on oppression, 58

purging dross, 46, 79

sovereignty of, 25, 28, 31, 36

standards for dominion, 37, 43

on weights and measures, 31, 32, 43, 71

God’s law, discipline and, 32

gold

about, 132, 139

in the Bible, 19–21

Byzantium, 128

characteristics of, 20

exchange price of, 131

God’s glory and, 25, 28

marketability of, 21–22

metals as exchange medium, 33–35

as money metal, 17, 18, 20, 21, 27, 28, 29

private ownership of gold in U.S., 119

properties of, 20, 28–29

testing weight of, 37

tribute in, 23

U.S. gold coins, 125

U.S. gold stock, 119–120, 125

value of, 129, 139

gold-backed money, 103

gold coins, 125, 128

gold standard

abandonment of, 103, 122–123

about, 122, 131–133, 139

as example of semi-honest money, 145

functions of, 125

return to, 146

State and, 132–133

in United States, 122, 141–142

government

corruption and, 58

counterfeiters protected by, 109–111, 124–125

counterfeiting by, 76–77, 102, 103–104, 107

debasement of money and, 65, 70–71, 78–80

honest money and, 145

legal tender laws, 128, 130, 132, 139

monetization of debt, 115–118, 124

money and, 24, 27, 128, 138

price controls, 63–64, 66, 131

right to issue money, 128

standards and, 42

tax coins, 132

taxes and, 20, 22–24, 29

weights and measures, 47

See also State; United States government

Government Accounting Office (GAO), 118

government

counterfeiting, 76–77, 102, 103–104, 107

graduated income tax, 75

Greek coins, 70

Gresham, Sir Thomas, 58

Gresham’s law, 58–60, 129, 131, 142

Grew, Dan, 34

Hamilton, Alexander, 130

Havilah, 17, 18

honest banking, 86, 93

business loans, 90–93

charitable loans, 88, 89–91, 93

fundamentals of, 92–93

key to, 93

marks of, 87–89

See also banking

honest money

basic concepts, 138–140, 141

defined, 37, 42

metal money, 36–38

paper money, 38–41, 142

principles of, 42–44, 142–143

setting the scene for, 148–149

standards, 131–132

honest weights and measures, 31, 36, 42, 71, 78, 128, 139, 145

honesty, 36

income taxes, 75

inequality of exchange, 8

inflation, 66, 74, 76, 80, 100, 102, 103, 106

information, not free, 85, 92

ingots, 36–38

debasement of, 48–49, 50–52, 53, 56

dross, 46, 51

Inherit the Earth (North), 127

interest

about, 87, 88, 92

Bible on, 81, 90, 92

confused with usury, 81–82, 92

government limits on, 131

100 percent reserve banking, 134–136

rates of interest, 85, 87, 88, 93, 102, 131

shrinking of money and, 102

international commercial banking system, 123–124

investment, 86

Isaac, 20

Isaiah, 45, 46, 51, 52, 62

Israel, 21, 137

Jefferson, Thomas, 130

Jesus, 45–46, 67, 68, 82, 92

Joseph in Egypt, 6–8

Judah, 23, 55, 58, 62, 65

justice, 35–36

“leaven,” 58, 65

legal counterfeiting, 76–77, 102, 103–104

legal reserve, 110

legal tender, 128, 130, 132, 139

lending, 82, 87, 140

Bible on, 136–137

business loans, 90–93

charitable loans, 88, 89–91, 93

by Christians, 137–138, 140

collateral, 91–92, 95–97, 105, 106, 138

depositors, 87–89, 93, 98

interest, 81, 85, 87, 88, 90, 92, 93, 102, 131

multiple indebtedness, 97–99, 105, 106, 128, 139

100 percent reserve banking, 134–136

See also banking; honest banking

liability, 115

M-1, 119

man, responsibility of men for their actions, 25

marketability

of gold, 21–22

of money, 12–13, 14, 18

market competition, 25

market scales, 33–35

See also scales

Marx, Karl, 75

metals

debasement of, 48–49

dishonest scales, 33

fineness of, 36, 37–38

gold and silver as money, 17, 18, 20, 21, 27, 28, 29

precious metal coin or ingot, 36–38

metal substitute, 39, 44

mining, debasement, 48–49

Mises, Ludwig von, 19, 21

Monetary Control Act of 1980, 110

monetization of debt, 115–118, 124

money

in ancient Israel, 43

Bible on, 28, 128, 138

Byzantium, 128

“certified” money, 143

cigarettes as, 10

coins, 23

committees and, 25–26

commodity-based, 21

control over, 26–27

counterfeiting, 39–40, 42, 44, 102, 103–104, 106, 142

creation of, 99–101, 143

currency unit, 25–26

debasement of, 62, 64–66, 70–71, 78, 143

defined, 142

erosion of purchasing

power and, 74

exchange ratios between, 139

exchange value of, 19, 24

“failed” money, 12–13, 14

freedom and, 133, 138, 139

functions of, 5–6, 13, 14, 27

gold as, 17, 18, 20, 21, 27, 28, 29

gold standard, 103, 122–123, 125, 131–133, 139, 142, 145, 146

government counterfeiting, 76–77, 102, 103–104, 107

government’s right to issue, 128, 138

Gresham’s law, 58–60, 129, 131, 142

legal tender, 128, 130, 132, 139

marketability of, 12–13, 14, 18

metal coin or ingot, 36–38

metals as, 17–18

monetization of debt, 115–118, 124

monopoly over, 144

nature of, 12–13

origins of, 17–29

paper money, 38–41, 43, 72–73, 142

preceding existence of State, 24

private counterfeiting, 76, 77

properties of, 9–11, 15

rate of return on, 86

shrinking of, 101–103

silver as, 17, 18, 21, 27, 28

as social product, 11–13, 14, 15, 27

and the State, 24, 27, 29, 67

State and, 24, 27, 29, 146

taxes and, 20, 22–24, 29, 130, 146

value of, 5–6, 7, 9, 15–16, 19

warehouse receipts, 40, 43–44, 97–99, 102, 104, 105, 106, 130–131, 145

See also honest money

money substitute, 39

money supply

control of, 26

Federal Reserve and, 118, 119

inflation and, 100, 106

manipulation of in U.S., 117

monopolies

about, 143–145

Federal Reserve System as a monopoly, 125

government’s right to issue money, 128

money and, 144–145

“natural monopoly,” 144

State and, 29, 48, 79–80

moral corruption, 52, 55, 57

moral dross, 46

moral evil, 37

moral standards, 32, 35, 43

Moses, 17, 18

multiple indebtedness, 97–99, 105, 106, 128, 139

“natural monopoly,” 144

100 percent reserve banking, 134–136

Open Market Operations (N.Y. Federal Reserve Bank), 116–117

“panic,” 113, 121, 122

paper bills, 44

paper money, 38–41, 43

debasement of, 72–73

price of, 142

Peter, 148

portability

of gold, 20

as property of money, 9–10, 15

prices

control of, 26, 56

“discount” prices, 66

inflation, 66, 74, 80, 106

price controls, 63–64, 66, 131

rising prices, 78

State and, 64, 71–72, 139

private counterfeiter, 76, 77

profit through trade, 82

progressive income tax, 75

promissory notes, 102

purging dross, 46, 79

rate of interest. See interest

rate of return, 86

Rebekah, 19–20

recessions, 113

recognizability

of gold, 20

as property of money, 9, 10, 15

repentance, of voters, 148

revolution, 76

rigging scales, 47

risk, honest banking and, 86–87

Robinson Crusoe (Defoe), 1–2, 4, 11, 13–14

Roman Empire

coins of, 48, 67–69

fall of, 48

gold standard in, 133

tribute tax, 68

run on bank. See bank run

salvation, 49

scales, 33–35

ingots and coins, 36

tampering with, 33, 37, 47

scales of justice, 35–36, 42, 47

scarcity, 49

of gold, 20

as property of money, 9, 10, 15

self-discipline, 32, 141

shekel, 36

silver

about, 139

debasement of, 48–49, 52, 60–62, 64

exchange price of, 131

as money metal, 17, 18, 21, 27, 28

for tax payment, 23

testing weight of, 37

tribute in, 23

value of, 129, 139

sin, tampering with scales as, 37, 41–42

smelting, debasement, 48–49

social product, money as, 11–13, 14, 15, 27

sovereignty of God, 25, 28, 31, 36

“spending into circulation,” 49, 50

spiritual dross, 46

standards, 32, 42

price controls, 63–64, 66, 131

standards for dominion, 37, 43

State

coins and, 69–71

contracts and, 142

fall of Roman Empire, 48

gold standard and, 132–133

honest money and, 145

legal tender, 128, 130, 132, 139

money and, 24, 27, 29, 67, 146

as monopoly, 26, 29, 48, 79–80

prices and, 139

taxes and, 139

trust of, 48

violating Biblical principles, 79–80

weights and measures and, 47

See also government

Stauffer, Prof. Ethelbert, 69

Stephenson, Nathaniel W., 111

Strong, Benjamin, 111

talent (unit of money), 36, 82

parable, 83–85

tampering, 41, 43

tampering with scales, 33, 37, 43

tax coins, 132

taxes

coins as, 70

graduated income tax, 75

higher tax brackets, 74–76

inflation as, 76

money and, 20, 22–24, 29, 130

State and, 139, 146

tax coins, 132

theft, 37

See also fraud

The Theory of Money and Credit (Mises), 19

Tiberius Caesar, 68–69

tithe, 22–23, 74

tools, value of, 3, 4, 15

trade, 11, 12, 13

market scales, 33–35

seller’s advantage, 34–35

weights and measures, 31–32

Treasury Bills. See U.S.

Treasury bills

tribute, 23, 68

trust, 48

unbacked money standard, 133

United States

monetary debasement by, 72

tax brackets, 74–76

United States Congress, buying gold back, 120

United States government counterfeiters

protected by, 109–111, 124–125

Federal Reserve Bank and, 115, 116, 118–121

gold standard, 103, 122–123, 125, 131–133, 139, 142, 145, 146

legal tender laws, 128, 130, 132, 139

monetization of debt, 115–118, 124

United States Treasury, 115

units of “fineness,” 36

U.S. Treasury bills, 115, 116, 118, 121

usury, 81–82, 90, 91, 92

value

of gold and silver, 129

of money, 5–6, 7, 9, 15–16, 19

objective nature of, 4

subjective nature of, 3–4

of tools, 3, 4, 15

Volcker, Paul, 118

voluntarism, 28, 128

voluntary exchange, 8

voters, repentance of, 148

Warburg, Paul, 111

warehouse receipts about, 43–44, 130–131

checks as, 40

defined, 106, 145

fractional reserve banking and, 102, 104, 105

multiple indebtedness and, 97–99, 105

as promissory notes, 102

warehouses, 38–41, 97–99

“watering the stock,” 34

weights and measures, 31–32

Bible on, 31–32, 37, 71, 128

false weights and measures, 32, 42

fraud, 33, 34, 37, 39

government and, 47

honesty, 31, 36, 42, 71, 78, 128, 139, 145

ingots and coins, 36–38

market scales, 33–35

metals as exchange medium, 33–35

Wilson, Pres. Woodrow, 112

wine production, corruption, 55–57, 63