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In order to be able to meet a general combination of the banks against us in a critical emergency, could we not make a beginning towards an independent use of our own money, towards holding our own bank in all the deposits where it is received, and letting the treasurer give his draft or note for payment at any particular place, which, in a well-conducted government, ought to have as much credit as any private draft or bank note or bill, and would give us the same facilities which we derive from the banks?

Thomas Jefferson#177

PoliticsBankingFinanceEconomyBankIndependence

About this quote

What does it mean?
Jefferson proposes the government create its own banking system to become independent from private banks in emergencies.
In plain terms
He suggests the government should hold its own deposits and issue notes to compete with private banks.
What can you take from it?
Government should maintain independent financial capabilities to ensure stability.

Where it applies

  • financial emergencies
  • monetary policy

Putting it to work

  • establishing public banking
  • securing deposits

Questions to consider

  • Should governments have their own banks?
  • How does financial independence protect a state?

Another view

Creating a government bank requires significant administrative capacity.

More from Thomas Jefferson

  1. The monopoly of a single bank is certainly an evil. The multiplication of them was intended to cure it; but it multiplied an influence of the same character wi…

    Permalink to quote #176
  2. Put down the banks, and if this country could not be carried through the longest war against her most powerful enemy without ever knowing the want of a dollar,…

    Permalink to quote #178
  3. [The] Bank of the United States... is one of the most deadly hostility existing, against the principles and form of our Constitution... An institution like thi…

    Permalink to quote #175

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