The historical document "REMARKS ON CURRENCY AND BANKING" was created by Nathan Appleton in 1841. Nathan Appleton was an American businessman, banker, and politician, born in New Ipswich, New Hamshire on October 6,1779. After the embargo on British imports during the War of 1812, he contributed significantly to the development of the American textile industry, promoting his feeling that success in the industry depended on the use of power machinery, cheap female labor, and a separate selling organization. As a politician serving in Congress, he drafted a protective tariff bill for President John Quincy Adams. Appleton's purpose in creating the document was to suggest remedies for "the present derangement [disturbance and disorder in the operation and function] of the circulating medium in the United States". He most certainly intended that the reforms that he was promoting become permanent far into the future, for the benefit of future generations, but there is no obvious evidence in the document that he expected the document itself to be preserved as a "historical" document. The intended audience of the document were bankers, government officials (both elected and appointed, on both state and federal levels), and the general public. The government could create laws and rules to bring about the needed corrections in the American banking system, and the bankers (those who were honest and interested in serving the public) could strongly influence the government, as well as change any abusive policies in their own banks. And Appleton expressed his belief that the greatest obstacle to the restoration of a sound currency and banking system was an ERRONEOUS PUBLIC OPINION. The date of the document's writing (1841) was four years after the end of President Andrew Jackson's second and final term. During his terms in office, President Jackson had vetoed a Bill that would have renewed the 2nd Bank of the United States for another twenty years. There was little regulation of the remaining private banks, and abuses by the banks were becoming widespread, causing many problems for the whole country. Appleton's document was divided into four main sections or chapters: "Circulating Medium", "Suspension of Payment", "A National Bank", and "Improvements in the Banking System". In the first section, he defines some basic terms related to money. Gold and silver are acknowledged to be the common measure of other commodities, called "money" when in the form of coins, but the intrinsic value of those two "specie" also makes them the common EQUIVALENT. Bank notes, when payable in specie coin on demand, are PREFERABLE to the coin which they represent. But this preference is based, not on the "faith" that the notes can be redeemed in specie on demand, but rather on the POWER to demand, and this power should be put to the test frequently at the commercial center of the district through which the notes circulate. At the time when this document was written, many existing banks had circulated bank note currency far in excess of their ability to redeem in specie. The currency was greatly depreciated in value, and many banks had suspended specie payment. In the second part of the document, Appleton expresses alarm that this evil was being tolerated by public opinion. He viewed the suspension as a broken promise which tended to give other people and enterprises an example and excuse to dishonorably break other contracts. The over- circulation and suspension led to inflation of prices, speculation, and over-trade (increased importation, decreased exportation, and resulting rise in foreign exchanges and export of specie). Appleton's solution was to correct public opinion and bring about a gradual (not sudden nor simultaneous) return to specie payments and fully-backed circulation of currency. In the third chapter, "A National Bank", the author expresses his support for a national bank, but one with limited capital (only 10 to 15 million dollars, with one third belonging to the government), limited circulation (no more than two-thirds of capital), and limited power. One purpose that it could serve would be as an agent for the United States Treasury. "There can be no doubt that a bank, as fiscal agent of the treasury, can receive and distribute the moneys of the government, with more safety and ease than any other instrument or agency which can be devised." The national bank might also help to regulate the currency. Appleton advised, however, that the establishment of such a national bank be postponed until specie payments have been resumed in most Atlantic cities. In the final section, "Improvements in the Banking System", the author recommends that circulation of bank notes be authorized only for banks with a solid paid-up capital of at least half a million dollars, which must greatly exceed its issues of notes. He further advises that a three percent annual tax be levied on circulation, but not on bank capital, and that balances between banks be settled frequently (weekly if not daily). Except for a reference to the Bank of England, and British money problems, Appleton made no mention of the European Banking System, controlled by the Rothschild Dynasty, and their tactics of MONEY MANIPULATION to CREATE WARS, economic depressions, and other problems between and within the countries of the world. Like most people even today, including learned experts and authorities, he was either unaware of these manipulations, or was afraid to discuss them publicly. (People who know too much, and cannot keep their mouths shut, often do not live long.) Also, the writer expressed no consideration of the full application of DEMOCRACY to economics. This would include the periodic ELECTION of all banking and financial officials (ideally with a 4th branch of government: Banking and Finance), the establishment of CREDIT UNIONS in place of banks (including any national bank), and the creation of COOPERATIVES in place of corporations simply by allowing only one vote per share HOLDER rather than per share of stock. A true democracy cannot exist unless the principles of democracy are fully applied to economics where they count the most. Appleton feared having a national bank that was too large and powerful: "In fact, the great and decided objection to a bank of great power, to act as general regulator of the currency, is the apprehension that it may itself suspend specie payments, under the sanction of the general government, and thus fix upon the country an inconvertible paper currency." Unfortunately, this feared event has taken place. The PRIVATELY OWNED "Federal" Reserve System, under control of a central national bank (the Federal Reserve bank in New York; the other eleven Fed banks are only an impotent formality), has issued worthless SCRIP as our currency, neither redeemable in gold or silver, nor even backed by these precious metals. And as during the time of Nathan Appleton, this ORGANI$ED CRIME is tolerated by public opinion! Robert E. McElwaine http://members.aol.com/rem547 PLUS http://members.aol.com/rem460 Preserve BOTH on CD-R and PRINT-OUTS P.S.: See also my article "DEMOCRACY For ECONOMICS" at http://members.aol.com/rem547/economic.htm or at http://www.geocities.com/remspiral7/economic.html . P.S.2: PASS IT ON !