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I like well your idea of issuing treasury notes bearing interest, because I am persuaded they would soon be withdrawn from circulation and locked up in vaults & private hoards. It would put it in the power of every man to lend his 100. or 1000 d. tho' not able to go forward on the great scale, and be the most advantageous way of obtaining a loan. The other idea of creating a National bank, I do not concur in, because it seems now decided that Congress has not that power, (altho' I sincerely wish they had it exclusively) and because I think there is already a vast redundancy, rather than a scarcity of paper medium.

Thomas Jefferson#72

BankingFinanceEconomyTreasury

About this quote

What does it mean?
Jefferson prefers interest-bearing treasury notes over a central bank to keep lending power with individuals.
In plain terms
He wants regular people to lend money directly instead of banks.
What can you take from it?
Individual lending can be better than central banking.

Where it applies

  • investing
  • loans
  • monetary policy

Putting it to work

  • treasury notes
  • direct lending
  • policy reform

Questions to consider

  • Should lending be private or centralized?
  • How to ensure safe loans?

Another view

Direct lending has risks if not regulated.

More from Thomas Jefferson

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  2. A man has a right to use a saw, an axe, a plane, separately; may he not combine their uses on the same piece of wood? He has a right to use his knife to cut hi…

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  3. If we did a good act merely from love of God and a belief that it is pleasing to Him, whence arises the morality of the Atheist? ...Their virtue, then, must ha…

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