First Bank of the United States (Central Bank), its Opposition, and its Demise

In the first session of Congress, Hamilton put forth a plan to launch a central bank of the United States through the sales of $10 million in stock whereas the government would purchase $2 million shares. 1/4 of the purchase price of shares by any purchaser had to be paid in gold or silver. This created the backing for the currency of the bank.

There was significant opposition to forming a central bank, particularly among then Secretary of State Thomas Jefferson and James Madison who believes the existence of the bank was not Constitutional. They were very familiar with the Bank of England (Rothschilds) and its manipulations and self-dealing actions. The First Bank of the U.S. was to be forbidden from purchasing government bonds, have a mandatory rotation of directors, and could not issue notes or have debts in excess of its capitalization.

President George Washington was reportedly hesitant to support the bank but did so reluctantly by signing the bill creating the bank into law on February 25, 1791 with a 20 year charter. The opposition to the bank never ceased and when the bank went up for renewal of the charter in 1811, its charter was rejected via a tie breaking vote by George Clinton, VP to James Madison in 1811. Five years later the Second Bank of the United States was created and the great battle to destroy it as led by Andrew Jackson commenced (to be covered tomorrow).

Bullion TP Analysis: The Founding Fathers brought with them a deep suspicion of central banks as well as currency not backed by gold and silver. This is displayed both in their requirement that the First Bank's stock be purchased with gold and silver and with the limitations placed on the First Bank compared to the free reign enjoyed by the Bank of England. It's important to note when contemplating how fall we have fallen in modern days, the initial restrictions to buying bonds and limitation on taking on debts in excess of capitalization, both completely abandoned goals of our current Federal Reserve Bank. The Founding Fathers' suspicion of this bank led to the rejection of the extension of its charter in 1811, but this wasn't the end of the Cabal's attempt to have a corrupt central bank rule over the People of the United States, bribe its politicians, and game the economy to help itself and the corrupt big money it represents.