Talk:William Paterson (banker)

Creates out of nothing

Is this the quote you're referring to:- "The bank hath benefit of interest on all moneys which it creates out of nothing" — ?

That quote appears on page 49 of Tragedy & Hope, by late historian, Professor Carroll Quigley. Xkit (talk) 02:52, 9 September 2014 (UTC)

Meghnad Desai says in The Route of All Evil: The Political Economy of Ezra Pound (Faber & Faber, 2006) that his research was not able to turn up a primary reference for the alleged William Paterson quote. The earliest appearance of the quote that is found on Google Book Search is from Christopher Hollis, The two nations; a financial study of English history, originally published in 1935. The quote also seems inconsistent with what actually does appear in A Brief Account of the Intended Bank of England. It may well be that this is a Depression-era hoax.

KHirsch (talk) 12:49, 11 March 2009 (UTC)

Do you have a pdf of the original prospectus for the Bank of England? It's certainly commonly thought to be attributed to him, so hoax or not it should be recorded as "thought" to be attributed to him. It's certainly a factually accurate statement. - BloodOnTheirHands (talk) 12:25, 3 April 2009 (UTC)

As it is unsourced, I have removed the quote. The fact that some people believe it to be genuine might be notable, but it would be necessary to say who believes it to be genuine, and add a reference. - Crosbiesmith (talk) 06:42, 4 April 2009 (UTC)

I don't have a pdf of the original prospectus, but I did check the facsimile that appears in Bank of England: selected tracts 1694-1804: A collection of seven rare works republished from originals in the Goldsmiths' Library of Economic Literature, and the version I linked on Google Books is a full and accurate transcription, as far as I can tell. The alleged quote is notable mainly for the prominent usage by Ezra Pound. It does continue to be repeated occasionally by modern money conspiracy theorists. Also, I don't believe that the quote is accurate, because in the 1690s the Bank of England didn't create money out of nothing in the sense that a modern central bank can. Although it indirectly would, in the money-multiplier sense, that wouldn't really benefit the shareholders. - KHirsch (talk) 19:42, 16 June 2009 (UTC)

You only have to do a google search to see dozens of examples where it is believed to be attributed to Patterson. I've added two. I could have added ten. —Preceding unsigned comment added by 122.105.42.196 (talk) 01:55, 5 April 2009 (UTC)

Found a few passages in "A Brief Account Of the Intended BANK OF ENGLAND" by William Paterson, which might be reasons why this quote is thought to exist: "But the notion of Banks and Publick Funds were entertained by some mercurial Heads, who finding the main Objection against them in England to be, the danger of Violence from the Prince, they therefore invented certain imaginary Banks and Funds, which they designed to settle far enough from the Prince's reach, or any bodies else." - Page Two

"That all Money or Credit not having an intrinsick value, to answer the Contents or Denomination thereof, is false and counterfeit" - Page Nine and Ten, It should be noted this passage is about the current expectations the public has of existing banks and what the new bank is proposing to replace with a system of a fixed interest.

There's also a few mentions throughout of usury in both "good" and "bad" forms, but nothing about interest being created from nothing. For what it is worth, I don't think it's good to dismiss those concerned about ethical money production "modern money conspiracy theorists". 195.252.227.39 (talk) — Preceding undated comment added 03:27, 23 April 2024 (UTC)

References