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Source link: http://archive.mises.org/12493/central-banking-as-an-engine-of-corruption/

Central Banking as an Engine of Corruption

April 16, 2010 by

America’s first central bank was borne of a corrupt political deal, but that particular act of political corruption pales in comparison to what Hamilton and the Federalists really had in mind. FULL ARTICLE by Thomas DiLorenzo

{ 7 comments }

Ohhh Henry April 16, 2010 at 7:54 pm

Great article. Maybe it has not attracted any comments yet because so many people have (so far) not been able to connect the dots between the love of governmental corruption in Hamilton’s day and the workings of their own modern central banks.

Too many people to whom I speak, the ones who read “news” stories (Bloomberg, Yahoo finance, etc.) but not mises.org, keep repeating the dumb mantra, “Yeah I don’t think what’s going on in the Fed is fair but they have no other choice but to do this.” Their worldview is, central banks are necessary and just in and of themselves, so let’s just prod them into doing their jobs. They have no idea that “job one” for these institutions has always been robbery.

Seattle April 16, 2010 at 11:40 pm

I think the ones who don’t read Mises aren’t going to come comment here whether they understand central banking or not <.<

Either way, other than Sproul and a few other trolls I don't think I've ever actually seen a Fed defender here. But it's a good article nonetheless, a sobering reminder that political corruption is nothing new.

Dick Fox April 19, 2010 at 7:03 am

Alexander Hamilton was a prodigious writer, perhaps more than any other of the Founders of our nation. If you can find one quote from Hamilton in DiLorenzo’s story let me know.

DiLorenzo’s prosecution of Hamilton is much like the old soviet show trials. The verdict is in. The trial is simply to allow the opposition to demonize the defendant, not to allow the defendant to present a defense.

Dick Fox April 19, 2010 at 7:07 am

To be fair, the Mises site has posted one quote from Alexander Hamilton.

Alexander Hamilton: “[A] limited Constitution … can be preserved in practice no other way than through the medium of courts of justice, whose duty it must be to declare all acts contrary to the manifest tenor of the Constitution void. Without this, all the reservations of particular rights or privileges would amount to nothing … To deny this would be to affirm … that men acting by virtue of powers may do not only what their powers do not authorize, but what they forbid …”

Read more: Mises Economics Blog — Page 3 http://blog.mises.org/page/3/#ixzz0lXyaB3P8

Thomas DiLorenzo April 19, 2010 at 7:52 am

Dick Fox’s comment is absurd. Soviet show trials?! I’m preventing Hamilton, who died in 1804, from “defending” himself?! Politicians must be judged by their actions, not their words. There is no dispute among historians that Hamilton did in fact orchestrate the public debt aribtrage scam I describe in the article, and that he favored a dose of corruption to help grow the government, as in my Jefferson quote. It is irrelevant to quote Hamilton out of context, and on an unrelated subject, as Dick Fox does. This is not being “fair” but silly.

Dick Fox April 21, 2010 at 6:39 am

Thomas,

Thank you for explaining why you do not quote Hamilton in your articles. I think I have a better understanding of your bias.

Tracy April 30, 2010 at 6:38 pm

Hello Dick,

Perhaps you could direct our attention to an example of Hamiltons writings that could shed a different light on the man. That would be the scholarly thing to do.

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