Wednesday, March 20, 2013
FEBRUARY 19, 1869 CONGRESS PASSES BILL PROHIBITING USING UNITED STATES NOTES AS SECURITY OR COLLATERAL IN ANY LOAN MADE THROUGH A NATIONAL BANKING ASSOCIATION
1869 CONGRESS PASSES BILL PROHIBITING USING UNITED STATES NOTES AS SECURITY OR COLLATERAL IN ANY LOAN MADE THROUGH A NATIONAL BANKING ASSOCIATION
“That no national banking association shall hereafter offer or receive United States notes or national bank notes as security or as collateral security for any loan of money…and any national banking association offending against the provisions of this act shall be deemed guilty of a misdemeanor and upon conviction thereof in any United States court having jurisdiction shall be punished by a fine…” Approved February 19 1869
This was one of many attacks by bankers on the Greenbacks -- public money issued by the Lincoln Administration. Public control of the money system meant banks couldn’t control it. Banking corporations wanted, as they had done prior to and after Greenbacks to print money out of thin air and then charge interest on top of it (otherwise known as “debt money”). Banks pressured Congress in a variety of ways to delegitimize Greenbacks. This law was one such way.
NO OTHER ENTRIES THIS PERIOD…HOWEVER IN COMMEMORATION OF THE ANNIVERSARY OF THE “ARAB SPRING”
FROM THE KORAN (2: 275):
"Those who devour usury will not stand except as stands one whom the evil one by his touch hath driven to madness. That is because they say: 'Trade is like usury…but God hath permitted trade and forbidden usury."
Some features of Islamic banking principles (from the Associated Press, 1/2/97):
“Interest on deposits: Islamic banks pay no interest on deposits. Unlike fixed return promised by most Western banks, Islamic banks operate on principle of shared risk. Depositors can choose an account that guarantees their money but pays no dividend, or one that acts like an investment fund. Depositors in investment accounts share in the bank's profits, but risk losing money if its investments perform poorly.
Interest on loans: Islamic banks charge no interest on loans. Instead of lending money to commercial borrowers at fixed rate of return, Islamic bankers become partners, sharing in venture's profits and losses. Some Islamic banks also make mortgage loans, charging flat fees payable in monthly installments, with costs similar to traditional mortgages. But loans have no compound interest or late-payment charges, and borrowers are spared uncertainty of variable interest rates common in Western nations.”