Instead of funding issues of paper on the hypothecation of specific redeeming taxes (the only method of anticipating, in a time of war, the resources of times of peace, tested by the experience of nations), we are trusting to tricks of jugglers on the cards, to the illusions of banking schemes for the resources of the war, and for the cure of colic to inflations of more wind.
About this quote
- What does it mean?
- Jefferson criticizes trusting banking schemes over funded public paper backed by specific taxes to finance war and stabilize the economy.
- In plain terms
- Use tax-backed government money instead of banking tricks to fund war.
- What can you take from it?
- Funded currency is safer than speculative banking schemes.
Where it applies
Putting it to work
Questions to consider
- Which is safer, banks or taxes?
- What stabilizes currency?
Another view
Public paper requires reliable tax collection to succeed.
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