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About this quote

What does it mean?
He opposes banks that discount notes unless backed by coin.
In plain terms
Banks should only deal in coin not paper notes.
What can you take from it?
Avoid banks that discount notes with paper.

Where it applies

  • banking
  • financial policy

Putting it to work

  • banking regulation
  • sound money

Questions to consider

  • Is paper money safe?
  • What makes a bank sound?

Another view

Pure coin systems lack flexibility for trade.

More from Thomas Jefferson

  1. Certainly no nation ever before abandoned to the avarice and jugglings of private individuals to regulate according to their own interests, the quantum of circ…

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  2. The principle of rotation... in the body of [bank] directors... breaks in upon the esprit de corps so apt to prevail in permanent bodies; it gives a chance for…

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  3. Everything predicted by the enemies of banks, in the beginning, is now coming to pass. We are to be ruined now by the deluge of bank paper. It is cruel that su…

    Permalink to quote #189

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