Why were Andrew Jackson and Thomas Jefferson so against a National Bank?

also, why does Ron Paul appeal to the authority of Jackson and Jefferson to justify his position against the Federal Reserve Bank?

What's the difference between the Fed and the National Banks?


Before President Jackson took office, there was a National Bank, which was a private bank in which the government owned 20% of the shares, that was chartered every 20 years. This bank was responsible for setting interest rates and coining money. Jefferson was opposed to a National chartered bank, because he thought it gave too much power to one company, and that each state should be responsible for their own banking. He was also afraid that foreign investment would become too much, and could potentially leave the U.S. open for a hostile takeover.

Jackson also shared this view, along with Jefferson's disdain for paper currency. When he came into office, he refused to charter the National Bank, which forced banking to be in the hands of the states. It was during this period that banking was decentralized, and such banking giants as JP Morgan came about. This was the way of banking until 1913 when Wilson created the FED.

Ron Paul also believes that we should not have a centralized banking system, and that each state should be in charge of their own banking. The FED allows the Government to print and borrow funds from whoever and whenever they please, with little restrictions. Paul believes that this process is, if it hasn't already, bankrupting our Country, and could end up being the demise of the U.S.

So the difference is that the FED is owned and controlled 100% by the Federal Government, and the National Banks were 80% privately owned, with only 20% owned by the Federal Government.


back in the 1700s the Bank of England put the England into debt by virtue of the French and Indian War and taxed the colonies to pay back this debt to the central bank. Thomas Jefferson saw what the Bank of England had done and warned us would happen if we ever got a central bank.