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We were laboring under a dropsical fulness of circulating medium. Nearly all of it is now called in by the banks, who have the regulation of the safety-valves of our fortunes, and who condense and explode them at their will. Lands in this State cannot now be sold for a year's rent; and unless our Legislature have wisdom enough to effect a remedy by a gradual diminution only of the medium, there will be a general revolution of property in this state.

Thomas Jefferson#105

EconomyCurrencyPolicyBanksLegislationCrisisProperty

About this quote

What does it mean?
Banks controlled the money supply, causing economic distress, and legislative action was needed to prevent property upheaval.
In plain terms
Banks tightened money, hurting property values, so leaders must act gently to fix it.
What can you take from it?
Regulate money supply to stabilize economy.

Where it applies

  • recessions
  • bank failures
  • legislative sessions

Putting it to work

  • adjust interest
  • regulate banks
  • stabilize currency

Questions to consider

  • Who controls the money supply?
  • How do you stabilize a crisis?

Another view

Too much regulation can slow growth.

More from Thomas Jefferson

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  3. But the greatest of all the reformers of the depraved religion of his own country, was Jesus of Nazareth. Abstracting what is really his from the rubbish in wh…

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