FW: To crucify mankind upon a cross of gold of course.
CJohnson at law.utexas.edu
Mon Jun 26 09:09:41 PDT 2006
From: Calvin Johnson
Sent: Monday, June 26, 2006 10:09 AM
To: 'RJLipkin at aol.com'
Subject: To crucify mankind upon a cross of gold of course.
Jefferson wanted to crucify mankind upon a cross of gold.
Jefferson opposed the bank and said that Hamilton's paper money was
"clearly a demerit" of the bank plan. <outbind://4/#_ftn1> Jefferson
thought Hamilton would "deluge the states with paper money."
<outbind://4/#_ftn2> Bank notes were "like a South Seas speculative
Under Federalist doctrine bank notes do not yield inflation because
they are issued only when the creditor wants to get paid. Government
fiat money, by contrast, woudl be issued without limit. The Continental
dollar had stolen from all who touched, with the amount of the theft
depending on how long one held the dollars. Where Hamilton saw
control by self-interest, however, Jefferson saw profits going to bank
owners, like Hamilton.
Hamilton was of course right on the issue. The country desperately
needed sound paper money. The rarity of specie was blocking trades that
would improve both sides. The rule was you coudl sell only to those who
you would extend credit to and that lmited your market. Jefferson,
however, was not only blindly hostile to anything Hamilton touched, but
he was also not very sophisticated about money -- his own and his
 <outbind://4/#_ftnref1> Jefferson, Opinion on the Constitutionality
of a Bill for Establishing a National Bank (Feb. 15, 1791), 19 PTJ 275,
278 (saying that Hamilton's paper money was "clearly a demerit").
Accord, Madison, The Bank Bill, House of Representatives (Feb. 2, 1791),
13 PM 372, 373 (opposing bank debt as substitute for specie money).
 <outbind://4/#_ftnref2> Jefferson, Memorandum of Conversations with
the President (March, 1792), 23 PTJ 185 (saying that Hamilton would
deluge the states with paper money). Cf. Jefferson to Edward Rutledge,
Aug. 25, 1791, 22 PTJ 74 (attributing economic ills to paper money).
 Letter of Jefferson to Charles Yancey, (January 6, 1816), 11 Works
of TJ 494
Calvin H. Johnson
Andrews & Kurth Centennial Professor of Law
The University of Texas School of Law
727 E. Dean Keeton (26th) St.
Austin, TX 78705
(512) 232-1306 (voice)
FAX: (512) 232-2399
For reviews, chapters, discounts and news on Johnson, Righteous Anger at
the Wicked States: The Meaning of the Founders Constitution (Cambridge
University Press 2005) see
From: conlawprof-bounces at lists.ucla.edu
[mailto:conlawprof-bounces at lists.ucla.edu] On Behalf Of RJLipkin at aol.com
Sent: Monday, June 26, 2006 9:39 AM
To: CONLAWPROF at lists.ucla.edu
Subject: What was the Fuss over the National Bank? Addendum
I'm concerned about the policy reasons for and against a
national bank not the constitutional reasons. Or was the controversy
only over the latter? Thanks.
Robert Justin Lipkin
Professor of Law
Widener University School of Law
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