A Brief Financial History of the United States
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About this ebook
I find timelines the best way to keep history straight, and that’s what this book is, a brief annotated timeline of the financial history of the United States. I wrote it a couple of years ago when I was researching the financial mess we were in, in order to explain it to my Economic students. I kept going further and further back in order to make sense of what I was finding.
This is a book for those everyday-type people who want to understand what is going on, but don’t have a significant amount of financial/economic background. But, don’t worry, I use footnotes liberally – I had to look up many of these financial expressions, people, events, and terms, and I share that information throughout the book.
I also happened to be teaching a class on Benjamin Franklin at the time I started this study. I noticed that he had some sayings that applied to this topic – I’ve sprinkled a few of those throughout the book.
At the request of a friend, I’ve also sprinkled “Catherine’s commentary” throughout. Those appear as CC: ______It will become clear very quickly that I come at this from a fiscally conservative perspective!
Catherine McGrew Jaime
Historian, and Author, Homeschool Mom of 12
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A Brief Financial History of the United States - Catherine McGrew Jaime
A Brief Financial History of the United States
Written by Catherine McGrew Jaime
Smashwords Edition
Copyright 2010 by Catherine McGrew Jaime
Smashwords Edition, License Notes
This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.
Table of Contents
Introduction
Let us begin, close to the beginning
Conclusion
Appendix One: Abbreviations/Acronyms (with the years mentioned)
Appendix Two: Definitions (with the years terms are mentioned)
Appendix Three: Economics in the Declaration of Independence
Appendix Four: Economics in the Articles of Confederation
Appendix Five: Economics in the U.S. Constitution
Appendix Six: Ronald Reagan’s Speech
About the Author
Other Titles at Smashwords
Connect with Catherine Online
Introduction
I find timelines the best way to keep history straight, and that’s what this book is, a brief annotated timeline of the financial history of the United States. I wrote it a couple of years ago when I was researching the financial mess we were in, in order to explain it to my Economic students. I kept going further and further back in order to make sense of what I was finding.
This is a book for those everyday-type people who want to understand what is going on, but don’t have a significant amount of financial/economic background. But, don’t worry, I use footnotes liberally – I had to look up many of these financial expressions, people, events, and terms, and I share that information throughout the book.
I also happened to be teaching a class on Benjamin Franklin at the time I started this study. I noticed that he had some sayings that applied to this topic – I’ve sprinkled a few of those throughout the book.
At the request of a friend, I’ve also sprinkled Catherine’s commentary
throughout. Those appear as CC: ______ It will become clear very quickly that I come at this from a fiscally conservative perspective!
Let us begin, close to the beginning:
16th Century
Spain establishes the first permanent settlement of Europeans in what is now Florida.
17th Century
In 1606, King James I of England charters the Virginia Company of London (also referred to as the Virginia Company or the London Company) to establish colonial settlements in North America.
Much of the labor in the colonies is done by slaves and indentured servants. In fact, it is not clear from historical records whether the first Africans that come to Jamestown in 1619 are slaves or indentured servants. Over time, most of the slaves come into the colonies from Africa, and most of the indentured servants come in from Europe.
Indentured servants generally signed contracts for three to seven years of labor. While they are under their contracts, they are often not treated much better than slaves. In the early colonial years, most indentured servants have signed contracts to pay for their passage to America. In later years, many of the indentured servants are training as apprentices to learn a new skill.
During the Battle of Quebec in 1690, Massachusetts becomes the first American colony to issue bills of credit to pay their soldiers. (Bills of credit are government obligations that are circulated like money.)
In 1694, the Bank of England is founded as a privately owned foundation. (It is later nationalized, in 1946.)
1720
The Colonies begin printing their own paper money. (The money works well in each individual colony, but sometimes hampers trade between colonies.)
1731
Benjamin Franklin begins printing money for Pennsylvania. He develops special methods to fight counterfeiting.
1764
With the end of French and Indian War, and the need to pay the costs associated with it, the British Parliament bans the colonies from printing their own money. Ben Franklin lobbies unsuccessfully in London for the law to be repealed.
1765
In response to Parliament’s dreaded Stamp Act, the Stamp Act Congress debates taxation without representation
at New York’s City Hall. Showing their displeasure, colonists fly their flags at half-mast.
1775
As the American Revolution begins, the Continental Congress authorizes $2 million in bills of credit to be issued.
1776
British economist Adam Smith writes in The Wealth of Nations, It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.
CC: In other words, profit is not such a bad motivator!
Towards the beginning of the American Revolution, Thomas Jefferson writes of critical economic concepts in the Declaration of Independence. (See Appendix 3 for more of the economic principles found in the Declaration of Independence.)
Benjamin Franklin sails to France as an American Ambassador. One of his primary jobs there is to secure loans to help the Americans in their fight against the British.
1779
More than $241 million in continental money has been printed. But now, due in large part to high inflationary rates and British counterfeiting, it is often said, It is not worth a Continental.
1781
The Articles of Confederation are ratified. They will direct the new country and