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FOR BETTER OR WORSE:
Panama Canal Bonds
The United States issued Panama Canal Loan bonds from 1906-1908. These bear 2 percent interest and were the last bonds issued that were allowed to circulate (“Coins and Currency”, 20).
Postal Savings Bonds
The Act of June 25, 1910 which authorized the issue of Postal Savings bonds declared such bonds would not be receivable by the Treasurer of the United States as security for currency issued by the national banks (“Coins and Currency”, 20-1).
Gold Certificates
Congress authorized the issuance of gold certificates by the Act of March 2, 1911. They were issued against the value of the gold bullion on deposit in the Treasury. The Act, however, limited the amount of gold bullion to one-third the amount of gold certificates outstanding. On June 12, 1916, Congress passed an Act changing the required amount to two-thirds (“Coins and Currency”, 17).
The Stability of Value
People talk about
the "good ole days" when grandfather spent 5 "cents" for a loaf of bread
and when 5,000 "dollars" could buy a nice home. Values have not changed.
Bread is no scarcer than in grandfather's day, nor are homes any more
costly, for in grandfather's day 20 "dollars" in paper "money" could be
exchanged for an ounce of gold --a 20 "dollar" gold piece.
As of this writing, it will take approximately 350
"dollars" in paper "money” for an exchange of an ounce of gold. This is
approximately 20 times the amount required in grandfather's day. This is
the reason we spend about 95 "cents" for a loaf of bread, or about 20
times the amount grandfather paid. And, the equivalent housing that sold
for 5,000 "dollars" then, will sell today for approximately 100,000
"dollars" or about 20 times as much.
God Cares
God cares about banking.
"All the weights of the bag are His work." (Proverbs 16: 11) For this
reason He has established the Law of "a perfect and just weight and
measure" as the governing principle of banking. In order to avoid the
arbitrary fixing of values, God has established Law at its foundation.
The rejection of this Law has produced inflation, debt and social
unrest.
If peace and tranquility is the desired end for
society, government must be subject to the righteous Law of God by
insuring integrity in the realm of economics. There is no way to do this
but to willingly conform to the Law God has established.
Obedience to God will result in peace and prosperity. Such fruit God bestows only upon the obedient.
_________________________________________________________
BIBLIOGRAPHY
"Coins and Currency of The United States." Published by the Office of the Secretary of Treasury, June 30,
1947.
Halleck, Reuben Post. History of Our Country.
Copyright 1923. New York; American Book Company.
Henry, Matthew. Matthew Henry's Commentary On The Whole Bible.
Vol.5 of 6 vols. New York: Fleming
Revell.
Hicks, John D. The American Nation. Second edition. Copyright 1949. Cambridge, Massachusetts: The
Riverside Press.
Johnson, Roger T. Historical Beginnings -- The Federal Reserve. Sixth printing, July 1981 by the Federal
Reserve Bank of Boston.
Saussy, F. Tupper. The Miracle of Mainstreet. Copyright 1980. Sewanee, Tennessee: Spencer Judd
Publishers.
White, Horace. Money and Banking. Copyright 1895. Boston: Ginn and Company.
Wilber, Dave. Fool's Gold Is Green. Copyright
1982. St. Louis: Awake America.
Yeoman, R. S. 1962--A Guide Book Of United States Coins.
Copyright 1961. Racine, Wisconsin: Whitman
Publishing Company.