Napoleon Bonaparte Quotes
While I live I will never resort to irredeemable paper.
Herold, J. Christopher. The Mind of Napoleon: A Selection from His Written and Spoken Words. Columbia University Press, 1955, p. 95.
At the time there was no national paper money. Individual banks printed their own and paper money was not accepted or heavily discounted most Americans. Most opposed a tender law that required paper money to be accepted in commerce.
In the 1830's paper money was issued by many public and private agencies. The Mormons, among others, didn't trust the banking system or the Bank Notes of the time. They formed their own organizations and issued Anti_Bank Notes.
There actually are restraints on how much paper money a government will issue, but unlike with a gold standard where the restraint is external and controlled by how much gold the country can amass. However, with paper money the restraints area all internal. If too much money is printed, the value of the money relative to gold, silver and other nation’s money will go down and imports will become more expensive. Excessive printing of money can easily produce inflation. However, the internal restraints can be overcome by the government’s need to raise money for war, debt or other purposes. So Paul and many other politicians have a deep distrust of paper money not backed by Gold or Silver. In the United States however, the Government does not control the money supply or the printing policies of money. This is under the control of the Federal Reserve Board which while appointed by President’s as terms expire, have a great deal of independence both from the Executive and Legislative Branches. For that reason Paul is even more distrustful when the Federal Reserve decides to print money. See {629491} for his unsuccessful effort to abolish the Federal Reserve Bank.
This is a remarkable quotation in that it proposed exactly what the United States did in the Nixon administration. We went off the gold standard and backed American money with the wealth and “full faith and credit” of the nation and all its assets. It has been the strongest and most sought after currency in the world despite the fact that it is not backed by gold or silver as earlier American currency was.
He was against paper money. At the time, any bank could issue its own paper money or “banknotes”. However other banks would not redeem the banknotes for the full amount; they would “discount” the note. Usually, the further away the bank was from the original bank, the more discount they took. Interstate commerce was almost impossible. Alexander Hamilton, Jefferson’s nemesis, had a much more modern point of view and fortunately his view prevailed. Paper money could only work if it was issued by a central bank with no discounting by other banks. The paper money had to be “legal tender”.
The alternative would have been for the colonies to borrow English money at high interest rates and use that. Or use money from private banks (which occurred later.) Many conservatives are today a little shocked that some of the American Colonies just printed money with no backing but it worked—at least at the local level. A Boston Bank for example, would take a large commission for a Bostonian to convert Pennsylvania money into Massachusetts money. So it was not a very good system for trade between colonies and International trade. But English money was used for that. The colonists pragmatically got the “best of both worlds” and paid as little interest as they needed to. This system is essentially what we use today on a national scale with no gold or silver backing of the money.
Napoléon Bonaparte was a French military and political leader of Corsican descent. He rose to prominence during the French Revolution and led several successful campaigns during the Revolutionary Wars. As Napoleon I, he was Emperor of the French from 1804 until 1814, and again in 1815. Napoleon dominated European and global affairs for more than a decade while leading France against a series of coalitions in the Napoleonic Wars. He won most of these wars and the vast majority of his battles, building a large empire that ruled over continental Europe before its final collapse in 1815. One of the greatest commanders in history, his wars and campaigns are studied at military schools worldwide. He remains one of the most celebrated and controversial political figures in human history.
