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This article appears in the June 20, 2014 issue of Executive Intelligence Review.

The Greenback Precedent of
President Abraham Lincoln

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June 14—Lyndon LaRouche issued an emergency call on June 9 for implementation of “Four New Laws to Save the U.S.A.”[1] After a short description of the global financial and economic breakdown crisis, he outlined the necessary laws as follows:

“The only location for the immediately necessary action which could prevent such an immediate genocide throughout the trans-Atlantic sector of the planet, requires the U.S. Government's now immediate decision to institute four specific, cardinal measures: measures which must be fully consistent with the specific intent of the original U.S. Federal Constitution, as had been specified by U.S. Treasury Secretary Alexander Hamilton while he remained in office: (1) immediate re-enactment of the Glass-Steagall law instituted by U.S. President Franklin D. Roosevelt, without modification, as to principle of action. (2) A return to a system of top-down, and thoroughly defined as National Banking.

“The actually tested, successful model to be authorized is that which had been instituted, under the direction of the policies of national banking which had been actually, successfully installed under President Abraham Lincoln's superseding authority of a currency created by the Presidency of the United States (e.g. ‘Greenbacks'), as conducted as a national banking-and-credit-system placed under the supervision of the Office of the Treasury Secretary of the United States....

“(3) The purpose of the use of a Federal Credit-system, is to generate high-productivity trends in improvements of employment, with the accompanying intention, to increase the physical-economic productivity, and the standard of living of the persons and households of the United States. The creation of credit for the now urgently needed increase of the relative quality and quantity of productive employment, must be assured, this time, once more, as was done successfully under President Franklin D. Roosevelt, or by like standards of Federal practice used to create a general economic recovery of the nation, per capita, and for rate of net effects in productivity, and by reliance on the essential human principle, which distinguishes the human personality from the systemic characteristics of the lower forms of life: the net rate of increase of the energy-flux density of effective practice....

“(4) Adopt a Fusion-Driver ‘Crash Program.’...”

The Greenback Precedent

In the pages below, we elaborate on point 2 of this unified program by reprinting one of EIR's previous historical reviews of Lincoln's greenback policy. That policy, little known and understood today, used the precise principles defined by America's first Treasury Secretary, Alexander Hamilton, to restore the nation's sovereignty, and literally save the new republic, by providing credit for an industrial revolution that became the model for nations around the world. That policy, enacted today, must do so again.

[1] EIR, June 13, 2014.

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