LaRouche Cites Hamilton And FDR In Call For New National Bank

Lyndon LaRouche today further elaborated on his call, earlier this week, for the establishment of a new Hamiltonian National Bank, as part of the implementation of his Homeowners and Banks Protection Act (HBPA).

"We have the precedent of our first Treasury Secretary, Alexander Hamilton's takeover of all the Revolutionary War debts of the states," LaRouche explained. "The Hamilton precedent is crucial today, because Hamilton set the foundations of our entire system of national banking and credit. Hamilton took over the debt obligations of the states, established the role of the Federal government as the sole source of national debt and
credit. This was, and still is, to this day, fundamental. The debt obligations of the states, once assumed by Hamilton, formed the basis for the issuance of new credit for national infrastructure investments, including roads, canals and bridges, that boosted the overall productivity of our new sovereign republic. This is why a new National Bank is vital for the
restructuring of the current, hopelessly bankrupt banking system, and the launching of an economic recovery."

LaRouche also cited President Franklin Roosevelt's role in passing the Glass-Steagall Act of June 1933, which reconstituted a Federal and state-chartered commercial banking system, in the wake of his Bank Holiday bankruptcy reorganization of the nation's shuttered private banks, as the second precedent for his current call for a new Hamiltonian National Bank. "President Roosevelt did not formally establish a new National Bank, but he achieved the same results, through his bankruptcy reorganization
of the commercial banking system, and his use of the Reconstruction Finance Corporation and other mechanisms to generate a flood of Federal government credit for job creation and massive infrastructure expansion. Programs like the Tennessee Valley Authority (TVA) transformed the United States, and FDR accomplished this, through the very same methods pioneered by Hamilton.

"From the time of the Peace of Paris in 1783, through the ratification of the Federal Constitution four years later," LaRouche elaborated, "Hamilton laid down certain cornerstone principles of our national banking and credit system. We can use those Constitutional precedents to reorganize today."

LaRouche explained. "As I first stated in my HBPA proposal of the summer of 2007, we must freeze all foreclosures of owner-occupied homes, for the duration of the crisis. We must then put all of the commercial banks—the Federal Reserve System as a whole—through full audit, followed by a bankruptcy reorganization. The worthless debt on the books of the banks will simply be canceled. The legitimate debts will be honored, in bankruptcy reorganization. The whole bankrupt Federal Reserve System will be replaced, in reorganization, by a new National
Bank. We shall launch a massive capital budget investment in high-technology, science-driver infrastructure projects, using the Constitutionally specified method of Congressional and Presidential-authorized credit. These Federal government credits, for specified infrastructure investment, will be channeled through the reorganized Federal and state-chartered commercial banks. The recapitalization of the banks, through infrastructure investment, will restore our banking system, over time, to healthy condition.

"That is how Alexander Hamilton did it. That is how Franklin Roosevelt did it. That is how I hope to see President Obama do it. This is the American System tradition, and there is no legitimate alternative available," LaRouche concluded.