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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, without dependence on the traitorous classes of her citizens, without bearing hard on the resources of the people, or loading the public with an indefinite burden of debt, I know nothing of my countrymen. Not by any novel project, not by an charlatanerie, but by ordinary and well-experienced means; by the total prohibition of all private paper at all times, by reasonable taxes in war aided by the necessary emissions of public paper of circulating size, this bottomed on special taxes, redeemable annually as this special tax comes in, and finally within a moderate period.

Thomas Jefferson#178

FinanceWarCurrencyMoneyDebtTaxation

About this quote

What does it mean?
Jefferson suggests prohibiting private paper money and using taxes with public currency to fund wars without relying on banks or public debt.
In plain terms
Stop private banknotes and use taxes plus government notes to pay for war.
What can you take from it?
State-controlled currency and taxes can fund wars without debt.

Where it applies

  • wartime finance
  • monetary policy
  • public budget

Putting it to work

  • ban private currency
  • fund wars via taxes

Questions to consider

  • How to fund war without banks?
  • Is private money dangerous?

Another view

Private credit can be more flexible in emergencies.

More from Thomas Jefferson

  1. 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 …

    Permalink to quote #177
  2. Our people... will give you all the necessaries of war they produce, if, instead of the bankrupt trash they now are obliged to receive for want of any other, y…

    Permalink to quote #179
  3. 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

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