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Necessity, as well as patriotism and confidence, will make us all eager to receive treasury notes, if founded on specific taxes. Congress may borrow of the public, and without interest, all the money they may want, to the amount of a competent circulation, by merely issuing their own promissory notes, of proper denominations for the larger purposes of circulation, but not for the small. Leave that door open for the entrance of metallic money.

Thomas Jefferson#182

PoliticsCurrencyMoneyDebtTaxation

About this quote

What does it mean?
Jefferson argues for treasury notes backed by taxes and metallic money for small transactions, allowing Congress to borrow interest-free from the public.
In plain terms
Use tax-backed paper money for big things and gold or silver for small things.
What can you take from it?
Currency should be backed by specific taxes and allow public lending.

Where it applies

  • war finance
  • national currency
  • public borrowing

Putting it to work

  • issue treasury notes
  • levy specific taxes
  • accept public loans

Questions to consider

  • How should a nation fund its expenses?
  • What backs a currency's value?

Another view

Public willingness to lend without interest may depend on trust in the government.

More from Thomas Jefferson

  1. The State legislatures should be immediately urged to relinquish the right of establishing banks of discount. Most of them will comply, on patriotic principles…

    Permalink to quote #181
  2. Treasury notes of small as well as high denomination, bottomed on a tax which would redeem them in ten years, would place at our disposal the whole circulating…

    Permalink to quote #183
  3. 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 …

    Permalink to quote #180

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