The bank hath benefit of interest on all moneys which it creates out of nothing.
~ William Paterson :: speaking for the newly formed Bank of England (1694)
William Paterson (1658 – January 22, 1719) was a Scottish trader usually credited as the founder of the Bank of England and of the Bank of Scotland. {Loquendo asserts: This claim can be contested, but for the purposes of this blog-post, we shall go with it.} Paterson was also connected with the failed attempt to establish the Scottish colony of Darien in Central America.
14th February 2025 Blog Update:
During the second week of this second month, I received two comments posted by an informed representative of the Debt Free Australian Public Banking Initiative.
The link to his/their website is here.
The first Comment can be read at the foot of this page, in the Reader Replies’ section.
As for the second, I have instead elected to raise its status to a supplement to the original William Paterson quote I posted several years ago.
Here is Mr. Allan Jones’ second informative comment … which you are seeing post my formatting, and the sensitive addition of some minor editing:
Thank you for your use of my writings on the process of bank loans, where the borrower provides a security; which the bank buys to earn interest.
There is a fabulous historical tale in this, beginning in 1694, with the Bank of England’s, first loan made to King William III [also known as William of Orange].
Although, this loan of 1.5 million pounds, was backed by the whole equity of the bank at 1. 2 million, with “fiddles” to pay the rest.
The new bank, one would think, had no money thereafter. However it had a deposit, a liability, & an asset. Which thereafter being considered a “note” (a type of treasury note or bond) which could then be sold in parts to investors, or used as its securities.
From an historical perspective, these machinations have done two things:
- Provided the special ‘alchemy’ needed to build an Empire;
- Over-burdened the U.K. with numerous debt liabilities.
After 331 long years; a war-torn period that encompasses (amongst other disturbances) the sheer madness of the Masonic-inspired French Revolution, the long-running Napoleonic Wars, the emotionally intimate embrace of the Hindu sub-continent, the advent of Marxism, the establishment of a secretive and power-hungry global Rothschild network, the cruel assassination of the last Russian Czar and his entire family (Ref: termination of the Romanov Dynasty), the conversion of Dynastic China to Maoism alongside the state-sponsored persecution / elimination of “free thinking persons”, two major World Wars that may have actually been designed to cull the populations of Europe … all of which were made possible only by the provision of Central Banking … DEBT.
Despite its many eloquent critics, this folly has continued to the extent we haven’t [yet] learned the necessary lessons.
• • •
World debt now exceeds the capacity to repay (via GDP generated income) by more than three times. This will [inevitably] lead to a second “great reset”; the first being described above.
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