George Washington on Monetary Policy

In a letter written on February 16, 1787, Washington wrote:

“The wisdom of man, in my humble opinion, cannot at this time devise a plan by which the credit of paper money would long be supported; consequently, depreciation keeps pace with the quantity of the emission, and articles for which it is exchanged rise in greater ratio than the sinking value of the money. Wherein, then, is the farmer, the planter, the artisan benefited? An evil equally great is the door it immediately opens for speculation, by which the least designing and perhaps most valuable part of the community are preyed upon by the more knowing and crafty speculators.”

In 1789, Washington wrote:

“We may one day become a great commercial and flourishing nation. But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy.”

These quotations are cited from pages 314, 315, and 323 of The Creature from Jekyll Island, A Second Look at the Federal ReserveĀ by G. Edward Griffin.

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