It is a palpable falsehood to say we can have specie for our paper whenever demanded. Instead, then, of yielding to the cries of scarcity of medium set up by speculators, projectors and commercial gamblers, no endeavors should be spared to begin the work of reducing it by such gradual means as may give time to private fortunes to preserve their poise, and settle down with the subsiding medium; and that, for this purpose, the States should be urged to concede to the General Government, with a saving of chartered rights, the exclusive power of establishing banks of discount for paper.
About this quote
- What does it mean?
- Paper money promises are false; gradually reduce reliance on it to stabilize economies.
- In plain terms
- Paper money promises are not true. Reduce it slowly to avoid chaos.
- What can you take from it?
- Gradual monetary reform prevents economic shocks better than abrupt changes.
Where it applies
Putting it to work
Questions to consider
- How fast to change currency?
- Is gradual always safer?
Another view
Gradual change may prolong instability if urgency is needed.
More from Thomas Jefferson
The earth belongs to the living, not to the dead.
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