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.
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
Putting it to work
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.
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