Banking
Alchemy - Transforming Gold Into Paper
Throughout
history, up to the 1700’s, all “real money” was either gold or
silver. Gold was the money of the rich and silver the money of the
poor.
Our
present banking system finds its roots in the role played by
goldsmiths in history. Mayer Amschel (Bauer) Rothschild (1744 -1812)
was a German goldsmith turned banker who built a banking family
dynasty that controls our economy to this day, by turning gold into
paper.
Centuries
ago, wealthy individuals who possessed quantities of precious metals
would often store them with the local goldsmith for safe keeping. In
exchange, the goldsmith would issue paper certificates as receipts
that could be redeemed at a later date for various quantities of
gold.
What
the goldsmiths discovered was, very few gold owners would actually
redeem their certificates for gold at any one time. This led some unscrupulous goldsmiths to issuing certificates to
those who had no gold, but who were willing to pay back the loans
with interest.
These conniving goldsmiths found they could issue many paper receipts and reap huge profits by collecting interest on made-up
certificates when there was no actual gold backing them at all.
With this
began the acceptance of paper money and the beginning of the modern
banking system of fractional reserve lending and compounding
interest.
The
American Coinage Act of 1792
Section
9 of the Coinage Act of 1792 states the following denominations and
values:
Ten
dollar “Eagles” -
to contain two hundred and forty-seven and four eights (247 4/8)
grains of pure gold, or two hundred and seventy (270) grains of
standard gold.
(Today's
gold price = $909.90)
Five
dollar “Half Eagles” -
to contain one hundred and twenty-three and six eights (123
6/8) grains of pure gold, or one hundred and thirty five (135) grains
of standard gold.
(Today's
gold price = $454.95)
Two
dollar “Quarter Eagles” - to contain sixty-one and
seven eights (61 7/8) grains of pure, or sixty seven and four eights
(67 4/8) grains of standard gold.
(Today's
gold price = $227.48)
One
dollar -
to contain three hundred and seventy one and four sixteenth (371
4/16) grains of pure silver, or four hundred and sixteen (416) grains
of standard silver.
(Today's
silver price = $24.96)
Half
dollar - to
contain one hundred and eighty-five and ten sixteenth (185 10/16)
grains of pure silver, or two hundred and eight (208) grains of
standard silver.
(Today's
silver price = $12.48)
Quarter
Dollar -
to contain ninety-two grains and thirteen sixteenth (92 13/16) grains
of pure silver, or one hundred and four (104) grains of standard
silver.
(Today's
silver price = $6.24)
Ten
Cent Dimes - to
contain thirty-seven grains and two sixteenth (37 2/16) grains pure
silver, or forty-one and two sixteenth (42 2/16) grains of standard
silver.
(Today's
silver price = $2.53)
Five
Cent Nickles or Half Dimes -
to contain eighteen grains and nine sixteenth (18 9/16) grains of
pure silver, or twenty and four fifth (20 4/5) grains of standard
silver.
(Today's
price = $1.25)
Historical
Prices for One Troy Ounce of Gold
1792
= $19.30
1834
= $20.67
1935
= $35.00
1973
= $120.00
1979
= $850.00
2012
= $1,617.10
Current
Gold Prices as of June 5, 2012
1
gram gold bar = $51.97
1
grain of gold = $3.37
Current
Silver Prices as of June 5, 2012
1
gram silver bar = $0.91
1
grain of silver = $0.06
[1
grain = 0.0648 grams]
[1
gram = 15.432 grains]
No comments:
Post a Comment