Thomas Paine, Advocate of Sound Money and Banking

Between writing his well-known revolutionary liberal tractsCommon Sense (1776) andThe Rights of Man (1791), Thomas Paine contributed knowledgeably to a 1785-6 debate over money and banking in Pennsylvania. Paine defended the Bank of North America ’s charter and it operations in a number of lengthy letters to Philadelphia newspapers during 1786, followed by a December monograph that summarized his case,Dissertations on Government; The Affairs of the Bank; and Paper Money.[1]Paine argued that to repeal the bank ’s charter violated both the rule of law and the maxims of sound economic policy. His writings show that he well understood the benefits of banking. Although proponents of the repeal accused Paine, publicly known to be in dire financial shape, of being paid by the BNA’s proprietors for defending it (one called him “an unprincipled author, who lets his pen out for hire”), Paine vociferously denied the charge, and historians (such as Philip S. Foner, who edited an anthology of Paine’s works), have found no evidence to support the accusation. Prima facie evidence for Paine’s sincerit y is found in his marshalling of serious arguments that were consistent with the classical liberal principles of his earlier writings.Here ’s the backstory: The Continental Congress chartered the Bank of North America, headquartered in Philadelphia and headed by Robert Morris and Thomas Willing in 1781. Considering a Commonwealth of Pennsylvania charter to be a sounder authoriz...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs