“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.”

Gold and Economic Freedom http://www.constitution.org/mon/greenspan_gold.htm 1966 <br class="br">1950–60s

Adopted from Wikiquote. Last update June 3, 2021. History

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Alan Greenspan51

13th Chairman of the Federal Reserve in the United States 1926

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“In order to be able to meet a general combination of the banks against us in a critical emergency, could we not make a beginning towards an independent use of our own money, towards holding our own bank in all the deposits where it is received, and letting the treasurer give his draft or note for payment at any particular place, which, in a well-conducted government, ought to have as much credit as any private draft or bank note or bill, and would give us the same facilities which we derive from the banks?”

Thomas Jefferson (1743–1826) 3rd President of the United States of America

Letter to Albert Gallatin, 1803. http://www.yamaguchy.netfirms.com/7897401/jefferson/gallatin.html ME 10:439 <br class="br">Posthumous publications, On financial matters

“The true order of events shows that orthodoxy clearly has reversed the process through which investment is funded. Banks do not begin as intermediaries which accept deposits of 'savers' and then make loans to 'investors', for this would assume that the public has already developed the 'banking habit'. This habit is the end result of public experience with short term bank liabilities which have been created as banks extend short term credit to finance working capital expenses.”

L. Randall Wray (1953) American economist

Source: Money and Credit in Capitalist Economies, 1990, p. 58; as cited in: Stein (1994).

“Excessive acreages of unused buildings, commercial and residential were created. The need for such construction, given the space demands of modern business bureaucracy, was believed to be without limit. In later consequence, the solvency of numerous banks, including that of some of the nation's largest and most prestigious institutions, was either fatally impaired or placed in doubt. The lending of both those that failed or were endangered and others was subject, by fear and example to curtailment. The construction industry was severely constrained and its workers left unemployed. A general recession ensued. Any early warning as to what was happening would have been exceptionally ill received, seen as yet another invasion of the benign rule of laissez faire and a specific interference with the market. However in keeping with the exceptions to this rule, there would be eventual salvation in a government bailout of the banks. Insurance of bank deposits — a far from slight contribution to contentment — was permissible, as well as assurance that were a bank large enough, it would not be allowed to fail. A preventive role by government was not allowed; eventual government rescue was highly acceptable.”

John Kenneth Galbraith book The Culture of Contentment

Source: The Culture of Contentment (1992), Ch. 5

“Banks lend by creating credit. They create the means of payment out of nothing.”

Ralph George Hawtrey (1879–1975) British economist

Ralph M. Hawtrey as assistant secretary of the British Treasury, quoted in: Robert Latham Owen (1939), National economy and the banking system of the United States. p. 102

“If the world as a whole returned to the gold standard there would be such fluctuations in the value of gold that it would very soon prove impractical.
Today an international gold standard could only mean that a few countries would maintain a real gold standard. The other countries would hang on to the system through a gold exchange standard — where the currency isn't really redeemable in gold but the government attempts to keep a fixed rate between its currency and gold.”

Friedrich Hayek (1899–1992) Austrian and British economist and Nobel Prize for Economics laureate

1980s and later, Interview in Silver & Gold Report (1980)

“If only God would give me some clear sign! Like making a large deposit in my name in a Swiss bank.”

Woody Allen Without Feathers

"Selections from the Allen Notebooks".
Without Feathers (1975)

“[Credit] is an evidence of banking, but it is not the money itself. Money is gold, and nothing else.”

J. P. Morgan (1837–1913) American financier, banker, philanthropist and art collector

Testimony to the Pujo Committee (1912)

“What's needed is patience and composure. The bank deposits of the Greek people are fully secure. The same applies to the payment of wage and pension — they are also guaranteed.”

Alexis Tsipras (1974) Greek politician

As quoted in " Greece's prime minister — seeking to calm Greek citizens — quotes FDR: 'The only thing to fear is fear itself' http://www.businessinsider.com/alexis-tsipras-quotes-fdr-tries-to-calm-greek-citizens-2015-6" businessinsider.com (28 June 2015).

“Each day of our lives we make deposits in the memory banks of our children. ”

Чарльз Свиндолл (1934)

“By its means the banker creates the means of payment out of nothing, whereas when he receives a bag of money from his customer, one means of payment, a bank credit, is merely substituted for another, an equal amount of cash.”

Ralph George Hawtrey (1879–1975) British economist

Source: Currency and Credit (1919), Chapter II, "Metallic Money", p. 20 (2nd ed. 1921)
Context: The use of money does not disestablish the normal process of creating credit. Money, it is true, is always being paid into the banks by the retailers and others who receive it in the course of business, and they of course receive bank credits in return for the money thus deposited. But for the manufacturers and others who have to pay money out, credits are still created by the exchange of obligations, the banker's immediate obligation being given to his customer in exchange for the customer's obligation to repay at a future date. We shall still describe this dual operation as the creation of credit. By its means the banker creates the means of payment out of nothing, whereas when he receives a bag of money from his customer, one means of payment, a bank credit, is merely substituted for another, an equal amount of cash.

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Alan Greenspan51

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