States’ Rights vs. Monetary Monopoly by Thomas J. DiLorenzo

The federal government today can wage wars without the consent of our congressional representatives, overthrow foreign governments, tax nearly half of national income, abolish civil liberty in the name of “homeland security” and “the war on drugs,” legalize and endorse infanticide “partial-birth abortion”, regulate nearly every aspect of our existence, and there’s little or nothing we can do about it.

Andrew Jackson (1767 – 1845) English: Portrait...

Image via Wikipedia

“Write your congressman” is the refrain of the slave to the state who doesn’t even realize he’s a slave thanks to decades of government school brainwashing.But Americans were not always slaves to federal tyranny. Perhaps the best illustration of this is how Americans once utilized the Jeffersonian, states’ rights traditions of nullification and interposition to assist President Andrew Jackson in his campaign to veto the re-chartering of the Second Bank of the United States BUS in 1832. Jackson essentially ended central banking in America until it was revived thirty years later by the Lincoln administration. The story is told in James J. Kilpatrick‘s wonderful 1957 book, The Sovereign States: Notes of a Citizen of Virginia.The Bank was notorious for fraud, mismanagement, corruption, and attempts to engineer a “political business cycle.” Prior to 1861, the American people were still sovereign over their government. They exercised that sovereignty in the way the founders intended: through state political conventions or legislatures. The federal government was their agent.Consequently, as early as 1816, Indiana and Illinois amended their state constitutions to prohibit the BUS from establishing branches within their jurisdictions. North Carolina, Georgia, and Maryland imposed heavy taxes on BUS branches within their states in attempts to tax them out of existence

A tax that even libertarians could love!. Knowing that such taxes could destroy the central bank, the federal government brought suit in Maryland McCulloch vs. Maryland, confident that John Marshall, chief justice of the Supreme Court and a proponent of the BUS, would rule in its favor. He did, coining the famous phrase that “the power to tax involves the power to destroy” in his decision. He wasn’t expressing a fear that taxation could destroy private initiative and private enterprise, but that it could limit the federal government’s monetary monopoly.Despite Marshall’s opinion that state taxes on the BUS were unconstitutional, numerous states continued to harass the bank. Until 1865, the Supreme Court’s opinion was just the Supreme Court’s opinion.

The citizens of the states reserved the right to offer their own opinions on constitutionality, which they often considered to be every bit as valid as the Court’s. The same was true of certain presidents: Andrew Jackson essentially said “thank you for your opinion” and then thumbed his nose at the Court when it ruled that the BUS was constitutional……


via States’ Rights vs. Monetary Monopoly by Thomas J. DiLorenzo.



About Gunny G

GnySgt USMC (Ret.) 1952--'72 PC: History, Poly-Tiks, Military, Stories, Controversial, Unusual, Humorous, etc.... "Simplify...y'know!"
This entry was posted in Uncategorized and tagged , , , , , , , . Bookmark the permalink.

8 Responses to States’ Rights vs. Monetary Monopoly by Thomas J. DiLorenzo

  1. Pingback: Why the Constitution Had to Be Destroyed | Thomas J. DiLorenzo – YouTube « ~ BLOGGER.GUNNY.G.1984+. ~ (BLOG & EMAIL)

  2. Pingback: Will Ron Paul Destroy the ‘Party of Lincoln’? (“And Would This Be Bad?”)by Thomas DiLorenzo « ~ BLOGGER.GUNNY.G.1984+. ~ (BLOG & EMAIL)


  4. Pingback: Constitutional Neoconmen by Thomas DiLorenzo « ~ BLOGGER.GUNNY.G.1984+. ~ (BLOG & EMAIL)

  5. Pingback: Andrew Jackson’s Central Bank Veto Message-Good for 2012 « Trutherator's Weblog

  6. Pingback: A Brief Lesson in History That Foretells of America’s Rise and Fall | Veterans Today « ~ BLOGGER.GUNNY.G.1984+. ~ (BLOG & EMAIL)

  7. Pingback: GUNNY G: And So, The Question as to Just When Communism/Socialism Arose In America? « CITIZEN.BLOGGER.1984+ GUNNY.G BLOG.EMAIL

  8. Pingback: The Birth of American Imperialism by Thomas DiLorenzo « CITIZEN.BLOGGER.1984+ THE.GUNNY.G BLOG.EMAIL

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s