Where is the dollar heading? Why are the prices of everything going up while my wages are stagnating? Do deficits matter? Is the price of gold indicative of a market mania? Why is there so much fuss over the Fed?
“No State shall...make any Thing but gold and silver Coin a Tender in Payment of Debts”
- Constitution of the United States, Article 1, Section 10
Home | News Headlines | Article Index | Bullion Dealers | Economic Data | Market Data Feeds | Advertisers | About | Support Us | XHTML
  • If laid end to end in US$1 dollar bills this amount of money would reach what planet from the Sun?

    Click here for the answer
Global Money Supply
  • Global Money Supply Data
Daily Metal Prices
Bullion Dealers
Recommended Books
  • We entrusted the experts with our financial security and now we're reeling from the economic crisis. How do we get back on our feet...and invest wisely?

    In The Wealth Code: How the Rich Stay Rich in Good Times and Bad, financial planner and investment strategist Jason Vanclef delivers straight answers...and solutions.

    Visit the book website at

  • Empire of Debt
    Bonner and Wiggin enumerate a long list of chronic ailments that imperil the American financial system--a massive trade deficit, soaring personal and government debt, a housing bubble, runaway military expenditures.
  • The Intelligent Investor
    The classic bestseller by Benjamin Graham, perhaps the greatest investment advisor of the 20th century, The Intelligent Investor has taught and inspired hundreds of thousands of people worldwide.
  • Methods of a Wall Street Master
    This book covers all the important aspects of making money and integrates them into a unifying philosophy that includes economics, Federal Reserve policy, trading methods, risk, psychology, and more.
  • What Has Government Done to Our Money
    If you ever wondered about why prices keep going up, if you ever wondered why cars don't cost $2,000 anymore, if you asked questions like this and never thought you were getting a full answer, this is the book you need to read.
  • Economics for Real People
    Economics for Real People is a clearly-written overview of "Austrian" economics, a libertarian school of economic thought founded by thinkers from Central Europe in the early 20th century.
  • Economics in One Lesson
    "Economics in One Lesson", Henry Hazlet's, book makes a powerful and persuasive argument in favor of a free market economy.
  • The Road to Serfdom
    This classic by one of the 20th century's leading libertarian thinkers has established itself beside the works of Orwell and others as a timeless meditation on the relationship between human freedom and government authority.
  • Crash Proof: How to Profit From the Coming Economic Collapse
    For those accustomed to America's economic dominance, Crash Proof is a frighteningly forthright wake-up call.
Printer Version E-Mail Article Discuss

The Money Changers, Part III: Tally Sticks & The Bank of England

Tally Sticks

King Henry I, son of William the Conqueror, ascended the English throne in AD 1100. At that time, long before the invention of the printing press, taxes were generally paid in kind, Ie., in goods, based on the productive capacity of the land under the care of the taxpaying serf or lesser noble. To record production, medieval European scribes used a crude accounting device: notches on sticks, or "tallies" (from the Latin talea, meaning "twig" or "stake"). Tally sticks worked better than faulty memory or notches on barn doors, as were sometimes used.

To prevent alteration or counterfeiting, the sticks were cut in half lengthwise, leaving one half of the notches on each piece -- one of which was given to the taxpayer, and could be compared for accuracy by reuniting the pieces. Henry adopted this method of tax-record-keeping in England.

Over time, the role of tally sticks evolved and expanded. By the time of Henry II, taxes were paid twice a year. Giving the taxpayer a tally stick notched to indicate partial payment received, with the same lengthwise split to record, for both parties, the payment made evidenced the first payment, made at Easter.

These were presented at Michaelmas with the balance of taxes then due.

It takes only a little imagination to arrive at the next step: for tallies to be issued by the government in advance of taxes being paid, in order to raise funds in emergencies or financial straits.

The recipients would accept such tallies for goods sold at a profit or for coin at a discount, and then would use them later, at Easter or Michaelmas, for payment of the taxes. Thus, tallies took on some of the same functions as coin: they served as money for the payment of taxes...

After 1694, the government issued "paper tallies" as paper evidence of debt (Ie. government borrowing) in anticipation of the collection of future taxes. Paper could be made easily negotiable, which made paper tallies the full equivalent of the paper banknote money issued by the Bank of England beginning in 1694. By 1697, tallies, banknotes and bank bills all began to circulate freely as interchangeable forms of money. Wooden-stick tallies continued to be used until 1826. Doubtless, ways were found to make them circulate at discounts, too, like the paper tallies.

One particular tally stick was quite valuable. It represented £25,000. One of the original stockholders in the Bank of England purchased his original shares with such a stick. In other words, he bought shares in the world's richest and most powerful corporation, with a stick of wood. It's ironic that after its formation in 1694, the Bank of England attacked the tally stick system because it was money issued outside the control of the Money Changers.

Why would people accept sticks of wood for money? That's a great question. Throughout history, people have traded anything they thought had value and used that for money. You see, the secret is that money is only what people agree on to use as money.

What's our paper money today? Its really just paper. But hem's the wick. King Henry VIII ordered that tally sticks he used to evidence tax payments received by the government. This built in the demand for tallies and eventually made them circulate and be accepted as money. And they worked well. In fact, no other money worked for so long as in the British Empire.

In the 1500s, King Henry VIII relaxed the laws concerning usury, and the Money Changers wasted no time reasserting themselves. They made their gold and silver money plentiful for a few decades. But when Queen Mary took the throne and tightened the usury laws again, the Money Changers renewed the hoarding of gold and silver coin, forcing the economy to plummet.

When Queen Elizabeth I, Mary's half-sister, took the throne in 1558, she was determined to regain control over English money. Her solution was to issue gold and silver coins from the public treasury and thus take away control over the money supply from the Money Changers.

Although control over money was not the only cause of the English Revolution in 1642 (religious differences also fuelled the conflict), monetary policy played a major role. Financed by the Money Changers, Oliver Cromwell finally overthrew King Charles I (Stuart), purged Parliament and put the King to death.

The Money Changers were immediately allowed to consolidate their financial power. The result was that for the next fifty years the Money Changers plunged Great Britain into a series of costly wars. In the centre of London they took over a square mile of property, known as "the City". Today, this semi-sovereign area is still one of the two pre-dominant financial centres of the world (with Wall Street, New York City).

Conflicts with the Stuart Kings led the Money Changers in England to combine with those in the Netherlands (which already had a central bank established by the Money Changers in Amsterdam in 1609) to finance the invasion of William of Orange who overthrew the legitimate Stuarts in 1688. England was to trade masters: an unpopular King James II for a hidden cabal of Money Changers pulling the strings of their usurper, King William III ("King Billy"), from behind the scenes.

This symbiotic relationship between the Money Changers and the higher British aristocracy continues to this day. The monarch has no real power but serves as a useful shield for the Money Changers who rule the City -- dominated by the banking House of Rothschild.

In its 20 June 1934 issue, New Britain magazine of London cited a devastating assertion by former British Prime Minister David Lloyd George, that "Britain is the slave of an international financial bloc".

It also quoted these words written by Lord Bryce:

"Democracy has no more persistent and insidious foe than money powers" and pointed out that "questions regarding Bank of England, its conduct and its objects, are not allowed by the Speaker" (of the House of Commons).

The Bank of England

By the end of the 1600s, England was in financial ruin. Fifty years of more or less continuous wars with France, and sometimes the Netherlands had exhausted her. Frantic government officials met with the Money Changers to beg for the loans necessary to pursue their political purposes. The price was high: a government-sanctioned, privately owned central bank, which could issue money -- created out of nothing -- as loans.

The Bank of England was to be the modem world's first privately owned, national central bank in a powerful country, though earlier deposit banks had existed in Venice from 1361, in Amsterdam from 1609 and in Sweden from 1661 -- where the first banknotes in Europe were issued that same year.

Although it was deceptively called the Bank of England to make the general population think it was part of the government, it was not. Like other private corporation, the Bank of England sold shares to get started. The investors, whose names were never revealed, were supposed to put up one and a quarter million, (British pounds) in gold coin to buy their shares in the Bank. But only £750,000 pounds was ever received.

Despite that, the Bank of England was duly chartered in 1694 and started out in the business of lending out several times the money it supposedly had in reserves, all at interest. In exchange the new bank would lend British politicians as much as they wanted.

The debt was secured by direct taxation of the British people.

So, legalisation of the Bank of England amounted to nothing less than legalised counterfeiting of a national currency for private gain. Unfortunately, nearly every nation now has a privately controlled central bank, the local Money Changers using the Bank of England as the basic model.

Such is the power of these central banks that they soon take total control over a nation's economy. It soon amounts to nothing but a plutocracy, rule by the rich, and the bankers soon come to be the dominant super-rich class. It is like putting control of Army in the hands of the Mafia. The danger of tyranny is extreme. Yes, we need a central monetary authority -- but one owned and controlled by the government, not by bankers for their private profit.

In 1770, Sir William Pitt, speaking to the House of Lords, said:

"There is something behind the throne greater than the king himself."

This reference to the Money Changers behind the Bank of England gave birth to the expression, "the power behind the throne".

In 1844, Benjamin Disraeli, in a veiled allusion to this same power, wrote:

"The world is governed by very different personages from what is imagined by those who are not behind the scenes."

On 21 November 1933, US President Franklin D. Roosevelt wrote in a letter to a confidant:

"The real truth of the matter is, as you and I know, that a financial element in the large centers has owned government ever since the days of Andrew Jackson..."

The central bank scam is really a hidden tax, but one that benefits private banks more than the government. The government sells bonds to pay for things for which the government does not have the political wisdom or will to rise tax to pay. But about 10 per cent of the bonds are purchased with money the central bank creates out of nothing. The government then spends this new money. Once deposited, private banks use these new deposits to create ten times as much in new fractional reserve loans. This provides the economy with the additional money needed to purchase the other 90 per cent of the new bonds without drying up capital markets and forcing up interest rates. By borrowing the money (Ie., selling new bonds), the government spreads out the inflationary effects over the term of the bonds. Thus, there is little or no immediate inflation. More money in circulation makes your money worth less. The politicians get as much money as they do want, and the people pay for it in inflation -- which erodes the purchasing power of their savings, fixed income and wages.

The perverse beauty of the plan is that not one person in a thousand can figure it out because it's deliberately hidden behind complex-sounding economics gibberish.

The full effects of the inflation are only experienced much later -- too late to stop.

With the formation of the Bank of England, the nation was soon awash in money. Prices throughout the country doubled. Massive loans were granted for just about any wild scheme. One venture proposed draining the Red Sea to recover gold supposedly lost when the Egyptian Army drowned pursuing Moses and the Israelites. By 1698, just four years later, government debt had grown from the initial one-and-a-quarter-million pounds to £16 million. Naturally, taxes were increased and then increased again to pay for all this.

With the British money supply firmly in the grip of the Money Changers, the British economy began a wild roller-coaster series of booms and depressions -- exactly the sort of thing a central bank claims it is designed to prevent.



Patrick S. J. Carmack, BBA, ID, practised corporate law and is a former Administrative Law Judge for the Corporation Commission of the State of Oklahoma as well as a member of the bar of the US Supreme Court. He is the co-author of the two-volume video, "The Money Masters: How International Bankers Gained Control of America."
Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.

This article has been favorited 3 times on | Make this your favorite article

Posted in Guest Commentary, History, Patrick S. J. Carmack

Search DollarDaze
  • Add to Technorati Favorites
Your Purchasing Power
  • Click to see full-sized charts
Web Media
  • Aaron Russo Interviews Congressman Ron Paul
  • Excellent video explaining the US Federal Reserve
  • Money As Debt
  • I.O.U.S.A.
  • Chris Martenson - The Crash Course
  • Money - A Brief History of the American Dollar
Sponsored Ads
London Metal Exchange
  • Click to see full-sized charts
Sponsored Ads
Donations Accepted

  • Help support the development of by donating today.

    Click here to learn about other ways you can help us.