Who Controls Our Money? Since the 18th century, Americans have debated who should control the nation’s money. Thomas Jefferson and Alexander Hamilton argued fiercely on this issue, and ultimately, President George Washington sided with Hamilton. Jefferson’s Position: Congress should issue free money, allowing the people and the free market to determine its value. Jefferson feared centralized banking power, stating that “I believe that banking institutions are more dangerous to our liberties than standing armies.” Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power of money should be taken away from the banks and restored to the people to whom it properly belongs. Hamilton’s Position: The federal government should control the nation’s money supply. His vision led to the creation of the First Bank of the United States, which still stands today in Philadelphia. Later, President Andrew Jackson closed the central bank in Philadelphia in 1835, warning against concentrated financial power. But in 1913, things changed permanently when President Woodrow Wilson and Congress— under the influence of powerful bankers and his wife—created the Federal Reserve System. The Federal Reserve and Income Tax In 1913, two historic and controversial moves reshaped America’s financial future. Congress established the Federal Reserve Bank (“The Fed”) to issue fiat paper money. Congress passed the 16th Amendment, allowing the government to collect income tax. It’s important to understand: The Federal Reserve is not federal, not a bank, and has no true reserves. It operates as a cartel of private banks with massive influence over America’s money supply. This system benefits those who create crises, manipulate outcomes, and profit from the chaos.
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