Contrary to what most Americans are taught about the
American Revolution, it was not incited by taxes per se, but by money.
We are not confident that the majority of Americans could
correctly state the century or enemy of the war, much less its root cause, so
we sally forth to educate them.
The common explanations for the revolt against the
oppressive British revolve around taxation without representation, the tea tax,
or the Stamp Act of 1765. Indeed there is an element of truth to each of these
explanations, and indeed the authors of the Declaration of Independence
enumerate a long list grievances against the British monarch. But these
explanations fail to do justice to the core issue of money.
The British had followed a program of benign neglect towards
its American colonies until the debts it had accumulated began to crush the
fisc. At the time of the hated and hateful Stamp Act, the British government
was paying 75% of its revenues in interest. Thus new sources of revenues were
needed to continue its imperial wars and pay the banksters.
The American colonies provided just such a source whose time
of squeezing had arrived. During the period of benign neglect, the colonies
were self sufficient in some regards, particularly in money creation. They had
grown independent of the Bank of England by issuing their own currency because the
central bank so parsimoniously provided money.
The colonies’ solutions were the issuance of Colonial Scrip
which the governments spent into the economy as debt free currency. This
allowed for unprecedented prosperity and development of public services
unavailable previously.
A series of British laws starting in 1764 began to undermine
this system with consequent unemployment and economic depression. The first law
was the Currency Act which required that all taxes be paid in silver or gold. The
problem was that silver and gold were scarce and too costly to remit, in part
because the Bank of England controlled the supply and would not make it
available.
This law compared unfavorably to the Jim Crow laws of the American South a century later which
required that black tenant farmers with no education be able to read and
translate, for example, a treatise in Burke’s Commentary in order to prove that they could
read before granted the right to vote.
In 1765 Parliament passed the Stamp Act requiring that a
stamp be affixed to certain items proving that the required tax had been paid
in gold. This was the straw which broke the camel’s back, inciting open
rebellion against the oppressive British crown.
Coupled with mass unemployment, crippled commerce, and
onerous taxes, the colonists took to arms to overthrow their hated overlords,
perhaps the most shining moment in American history.
Benjamin Franklin admitted that the colonies would have
suffered the annoying taxes, including that on tea, had their economy not been
decimated by the British and their banksters.
Thus the central issue in the American Revolution was the
matter of money – not the taxes per se. For further insights into the American
experience with central banking, see the superb award winning documentary, The Secret of Oz.
Reference
Bill Still, The Secret of Oz, 2009
Copyright 2013 Tony Bonn. All rights reserved.
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