Chapter 15 of 15 · Honest Money by Gary North
Index
Abraham, 19
Aldrich, Sen. Nelson, 111, 112
bank collapse, 101
bank failures, 113
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
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
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
Belshazzar (King), 35
Bible
on charitable loans, 88, 89, 91, 93
on corrupt practices, 58
on extending credit, 137
on lending, 136–137
monetary units in, 36
on multiple indebtedness, 97–99, 105, 106, 128, 139
on owing, 136
on repentance, 148
responsibility of men for their actions, 25
taxes in, 22–23
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
boom and bust, 103, 106, 119, 148
borrowers, 87
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
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
as money, 36–38
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
The Communist Manifesto (Marx), 75
competition, 25
Continental Illinois Bank, 121
corruption
economic corruption, 64
government and, 58
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
protecting the counterfeiters, 109–111, 124–125
credit, Bible on, 137
currency unit, 25–26
David (King), 23
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
debt
debt crisis, viii
deflationary depression, 107
Defoe, Daniel, 1
denarius, 68–69
depressions, 102–103, 104, 107, 113
discounting, future value of goods, 85, 92
“discount” prices, 66
divisibility
of gold, 20
doctrine of sunk costs, 4
dominion, 37, 43, 136–138, 140
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
exchange
currency unit, 25–26
of information, 86
market scales, 33–35
of money, 19
See also trade
exchange of information, 86
extending credit, Bible on, 137
Ezekiel, 46
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
lack of audit of, 118
monetization of debt, 117–118
money supply and, 119
as monopoly, 125
fiat money standard, 133
Forbes, Bertie, 111
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” services, 134–135
GAO. See Government Accounting Office
God
love of Israel, 21
mercy of, 49
moral standards of, 42
on oppression, 58
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
in the Bible, 19–21
Byzantium, 128
characteristics of, 20
exchange price of, 131
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
testing weight of, 37
tribute in, 23
U.S. gold coins, 125
gold-backed money, 103
gold standard
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
price controls, 63–64, 66, 131
right to issue money, 128
standards and, 42
tax coins, 132
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
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
metal money, 36–38
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
ingots, 36–38
debasement of, 48–49, 50–52, 53, 56
Inherit the Earth (North), 127
interest
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
Jefferson, Thomas, 130
Joseph in Egypt, 6–8
justice, 35–36
legal counterfeiting, 76–77, 102, 103–104
legal reserve, 110
legal tender, 128, 130, 132, 139
Bible on, 136–137
business loans, 90–93
charitable loans, 88, 89–91, 93
collateral, 91–92, 95–97, 105, 106, 138
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
market competition, 25
market scales, 33–35
See also scales
Marx, Karl, 75
metals
debasement of, 48–49
dishonest scales, 33
gold and silver as money, 17, 18, 20, 21, 27, 28, 29
precious metal coin or ingot, 36–38
mining, debasement, 48–49
Monetary Control Act of 1980, 110
monetization of debt, 115–118, 124
money
in ancient Israel, 43
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
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
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
rate of return on, 86
shrinking of, 101–103
as social product, 11–13, 14, 15, 27
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
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
moral dross, 46
moral evil, 37
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
paper bills, 44
debasement of, 72–73
price of, 142
Peter, 148
portability
of gold, 20
as property of money, 9–10, 15
prices
“discount” prices, 66
price controls, 63–64, 66, 131
rising prices, 78
profit through trade, 82
progressive income tax, 75
promissory notes, 102
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
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
scales of justice, 35–36, 42, 47
scarcity, 49
of gold, 20
as property of money, 9, 10, 15
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
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
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 with scales, 33, 37, 43
tax coins, 132
taxes
coins as, 70
graduated income tax, 75
higher tax brackets, 74–76
inflation as, 76
tax coins, 132
theft, 37
See also fraud
The Theory of Money and Credit (Mises), 19
Tiberius Caesar, 68–69
market scales, 33–35
seller’s advantage, 34–35
weights and measures, 31–32
Treasury Bills. See U.S.
Treasury bills
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
value
of gold and silver, 129
of money, 5–6, 7, 9, 15–16, 19
objective nature of, 4
subjective nature of, 3–4
Volcker, Paul, 118
voluntary exchange, 8
voters, repentance of, 148
Warburg, Paul, 111
warehouse receipts about, 43–44, 130–131
checks as, 40
fractional reserve banking and, 102, 104, 105
multiple indebtedness and, 97–99, 105
as promissory notes, 102
“watering the stock,” 34
weights and measures, 31–32
false weights and measures, 32, 42
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
Honest Money
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