Lat. Am. J. Int. Aff. – Vol. 10 N°2 (junio - septiembre, 2020) Art. 150

POLITICAL ROOTS OF THE MONETARY SYSTEM IN THE AND IN THE OF AMERICA: THE EUROPEAN VS THE U.S.

RAICES POLÍTICAS DEL SISTEMA MONETARIO EUROPEO Y DE ESTADOS UNIDOS DE AMERICA: EL EURO EUROPEO VS EL DÓLAR ESTADOUNIDENSE

Carlos Puente Martín https://orcid.org/0000-0003-1180-4752 Agregado comercial de la embajada española en Moscú Autor de correspondencia: [email protected]

Abstract: The year 1776 will be remembered for the birth of the United States of America and for the publication of "The Wealth of Nations" by Adam Smith. The United States had a British and French heritage, but a Spanish heritage as well. Until 1857 the United States used the monetary system of the Spanish empire, the "Real de a ocho" known as the “”. In Europe, 180 years later, another form of political, economic and monetary integration emerged. The European Communities were born out of old countries and the European integration emerged peacefully for the first time in its history. The European Union adopted the common , the Euro, which replaced the national of the countries that belong to the Eurozone. The Euro was attacked by Euroskeptics and Americans that turned the dollar into the currency of the new world order. This article examines the political foundations of the American and the European Union monetary system. The euro evolved and defies the dollar. Facts mentioned in the article show the failure of some predictions against the Euro.

Keywords: Mexican-Spanish dollar, Coinage Acts, System, Euro, European Monetary Union

Resumen: El año 1776 será recordado por el nacimiento de Estados Unidos de América y por la publicación de "La riqueza de las naciones" de Adam Smith. Estados Unidos contaba con una herencia británica y francesa, pero también una herencia española. Hasta 1857 Estados Unidos utilizó el sistema monetario del imperio español, el "Real de a ocho" conocido como el "dólar español". En Europa, 180 años después, surgió otra forma de integración política, económica y monetaria. Las Comunidades Europeas nacieron de países antiguos y la integración europea surgió pacíficamente por primera vez en su historia. La Unión Europea adoptó la moneda común, el Euro, que reemplazó a las monedas nacionales de los países que pertenecen a la Eurozona. El euro fue atacado por euroescépticos y estadounidenses que convirtieron el dólar en la moneda del nuevo orden mundial. El artículo examina los fundamentos políticos del sistema monetario estadounidense y de la Unión Europea. El euro evolucionó y desafía al dólar. Los hechos mencionados en el artículo muestran el fracaso de algunas predicciones contra el Euro.

Palabras claves: Dólar hispano-mexicano, Proyectos de acuñación, Sistema de la Reserva Federal, Euro, Unión Monetaria Europea

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Introduction globalization has created a new monetary panorama in which the Euro, as the single We often find academic literature European currency has emerged as a that criticizes the foundation of the competitor to the US dollar that replaced European Economic Community as part of the British after World War II and it the European integration since its origins, was adopted as a global currency and a with the creation of a European Common reference for commercial transactions and Market in 1957, or the adoption of the to quote most prices of raw materials and Euro and the establishment of the Euro commodities. area from 1998 or, what it is more recent, both topics are criticized. There are many The criticisms are addressed in two examples of this type of criticism from directions, against the process of European inside and outside Europe. The most integration and the system of centralization notorious criticism came probably from of certain European policies, on the one Margaret Thatcher before, during and after hand, and against the survival of the Euro, she was Prime Minister of the United on the other. I must tackle both aspects Kingdom. focusing on the political origin of monetary policy. I will refer to the process Other worldwide well known of European integration and to the process academics focused most of their aggressive of building the United States of America, statements against the Euro mainly from its independence from Great Britain provided by two Nobel Prize in as far as this process will inform about the Economics, Milton Friedman who declared monetary policy. The main topic of this in 2003 that “I think within the next 10 to work is the political roots of the origins of 15 years the Eurozone will split apart”1 both currencies, the American Dollar and and Joseph E. Stiglitz who wrote a book the Euro. with a very expressive title pointing out that the Euro is a threat to European It is easy to check that the dollar integration2. was adopted in the United States as the only monetary unit of the new nation 663 The affirmations assuming the years after the was founded4, and failure of the European integration and, only a true Central Banking System was particularly, the Euro area and the Euro as established 1225 years after the mint of the a single European currency ignore how the new currency. On June 1st, 1998 the process of the European Union and the European Central Bank6 was established European Monetary System was set up. as the Central Bank for the Euro and For this reason, it is convenient to compare this process with the one occurred in the 3 An Act Relating to Foreign and to the United States of America during the Coinage of Cents at the Mint of the United States, establishment of its monetary system with February 21, 1857, Thirty-fourth Congress, Sess, the adoption of the dollar as the currency III, CH. 50,55,56. 4 of April of the American Union. I believe that 2, 1792, . 5 , December 23, 1913. 1 Financial Times, June 6th, 2003. 6 The European Central Bank (ECB) is one of the 2 Joseph Stiglitz in his work “The Euro. How a seven Institutions of the European Union listed in common currency Threatens the Future of Europe” the Treaty of the European Union (TEU). Presently ironically dedicates his research “To the future of the Euro area includes 19 European Union Member Europe and the European project on which it States and other Member States will join as long as depends…” they met with the Convergence Criteria.

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manages the monetary policy of the Euro such as , François Mitterand area. On June 27th, 1998, the coins and and . During the Second notes of the Euro (€) came into circulation Summit of the Organization for Security as a new European currency adopted as a and Co-operation in Europe, the German common currency in most Member States Chancellor Helmut Kohl underlined that of the European Union, which formed the the German unification was a part of the Euro area, that is to say, 41 years after the European integration: “Today, we can note signature of the . this with gratitude: without the foundation laid 15 years ago for a peaceful order To examine the monetary history of encompassing the whole of Europe, it the United States and the European Union, would not have been possible today to I will mention the political thoughts and accomplish German unity and to restore contributions of the "Founding Fathers of the historical unity of our continent, as we the United States" and the "Founding are doing here in .”8 Kohl remarked fathers of the European Union". The in 1992 that “…in Germany the objective nationalism of Margaret Thatcher was not is to fulfill the second mandate in the so different from the one of Alexander tradition established by in the United States when she and provided for in our Basic Law of 1949: accused the European Community saying the unification of Europe”. that “…certain harmful feature and tendencies in the European Community A monetary system for a new nation started to become evident…” Thatcher focused her attacks mainly against the We must remember that the United qualifying it as “… States, after the Declaration of powerful Commission ambitious for Independence from Great Britain, on July power, an inclinations towards 4th, 1776, had already a monetary scheme bureaucratic rather than market solutions to based on the Spanish monetary system, economic problems and the re-emergence linked to the "Real de a ocho". The “Real of a Franco-German axis with its own de a ocho” was a Spanish worth cover federalist and protectionist eight “reales” minted in the Spanish agenda…”7 As far as the monopoly Empire from 1598 and was on free control of Franco-German interests and the circulation in the British colonies. In 1693 super bureaucracy of the European the Government of New York regulated Institutions Margaret Thatcher was right the exchange rate of the “Spanish Piece of but this is not the topic under discussion Eight” because it was the most widely used here. , one of the coin in the Colony of New York. In 1728 Founders of the United States and the was mint the new “Real de a ocho” which Father of the Economy of the nation shared soon became the most highly-prized the same principles. currency in the world. In 1775, the "Spanish Dollar" was issued for the first The Economic and Monetary Union time in the British colonies in America process in Europe goes hand in hand with the European integration whose principles 8 Speech by German Chancellor Helmut Kohl to the the founding fathers of the European Second Summit of CSCE Heads of State or Communities have transmitted to the Government Paris, 19-21 November 1990. Kohl politicians of the late twentieth century, stressed the compromise of federalism in his speech saying that “The united Germany will combine its regained sovereignty with a modern conception of 7 Thatcher, Margaret. The Downing Street Years, p. sovereignty: We are willing to transfer Germany’s 727. sovereign powers to the European Community.”

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backed by the "Spanish real de a ocho". purposes, such as the “Sterling pound”, the The currency of “8 reales” of the Spanish French "" or the “Dutch Empire was known by the Anglo-Saxons gulden”, but it was the “Spanish Dollar” as "Piece of Eight”.9 that served as a reference to establish the US dollar as the official currency of the The “Spanish Dollar” or piece of new nation12. On June 22nd 1775, the "Real de a ocho" of 1733 was coined in the Congress “Resolved, that a sum not “Casa de Moneda” (Mint) of Mexico and exceeding two millions of Spanish 'd had a value of “8 reales” which was on be emitted by the Congress in bills free circulation in the English colonies of of credit for the defence of America. That North America. In 1792 the first “all the twelve confederated colonies be American Dollar” was mint with the pillars pledged for the redemption of the bills of of Hercules and the legend of “Plus Ultra” credit now directed to be emitted for the on it which became then the symbol $. The defence of America”.13 After the “Silver Real” known as the “Spanish Piece independence, on July 4th 1776, the of Eight” mint in the Spanish Empire10 conversion of the currency used in the became the main currency in North Colonies with the “Spanish Dollar” was America during more than 150 years and it established on September 2nd.14 was the model for the creation of the Dollar of the United States. In fact, the One of the greatest man and “Spanish Dollar” was the official currency founding father of the United States was of the country until 185711. Alexander Hamilton. Due to his participation in the In the “Thirteen Colonies of North he became a friend of George America” before its independence from the and member of his first cabinet as the first British Empire, there were other European Secretary of the of the United currencies accepted for commercial States. Hamilton was worried about the debt incurred by the States during the war 9 Mexico began to coin the “Real de a ocho”, and watched over the constitution of a known as "Pillar Dollar" in 1773. Its minting was strong centralized government with powers made in pieces of ½, 1, 2, 4 and 8 reales. Its value over all the States, with common taxes, a was established by its weight in silver, the 8-real common currency and a National Bank coin, whose weight was one ounce. To facilitate with public framework but of private the circulation of money this currency was cut into pieces so the currency of a Dollar was equivalent to ownership and management. Hamilton is 8 pieces for what it was called "Piece of Eight" and considered the father of the financial and the currency of ¼ Dollar (a quarter) was monetary system of the United States, equivalent to 2 pieces. asides he founded the Bank of New York. 10 In 1545 the silver mines were discovered at Potosi (Peru) and in 1546 new silver mines were found in Zacatecas (Mexico). In 1518 the silver Alexander Hamilton had a positive mines of Joachimsthal were discovered in Bohemia, vision of the economy and led most of the that it is the origin of thaler and subsequently of economic policy of Washington’s “dollar” due to a corrupted language. government managing with intelligence the 11 The “Spanish Dollar” was widely used in Europe, America, the Spanish Islands in the Pacific Ocean and the Far East. It was the first currency used 12 The “Spanish Dollar” was the first worldwide worldwide until the end of 18th Century. Many currency and used by many countries countersigned countries created its own currencies based on the so it was also used as their own currency. “Spanish Dollar” or the “Real de a ocho”, such the 13 Resolution of the Continental Congress on June “Canadian Dollar”, the “Australian Dollar”, the 22, 1775. “Yuang” in China, the “Yen” in Japan, the “Pesos” 14 Resolution of the Continental Congress issued in of Latin-American countries and . on February 17, 1776.

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problem of the States’ debts. Hamilton was called "continental” securities were issued, familiar with the works of great which were subsequently suspended due to philosophers and economists as Adam lack of credit, so they were later Smith who published his “The Wealth of denominated in dollars expressed in their Nations”15 in 1776, the same year of the equivalence to the "Real de a ocho" or independence of the United States, but as “Spanish Dollar”, the currency of the Professor Douglass C. North wrote “it Spanish empire worldwide used. At that would be a mistake to think of Alexander time Hamilton was the assistant to Robert Hamilton as a disciple of Adam Smith”16. Morris and the Continental Congress decided to send John Jay to Spain, with a His friendship with George request for help to the United States. Jay Washington paved the way to become presented the petition to the Spanish responsible for the establishment of the Secretary of State, José Moñino, Marquis economic and monetary basis of the United of Floridablanca who promised him a sum States. This happened after contacting the equivalent to 40,000 Sterlings.19 national superintendent of finance in the Congress, Robert Morris, known as the Alexander Hamilton adopted "financier of the American Revolution” important economic policy measures: The and founder of the “Bank of North “First Report Relative to a Provision for America”. Morris had declined the post of the Support of Public Credit” was Secretary of the Treasury in the Cabinet of submitted to Congress on January 9th, President Washington for personal 1790 which dealt with public finances with 17 18 interests . took the promise that he would submit a plan office as the first president of the United for a national bank. The “Second Report on States, in 1791, after the first elections and, the Further Provision Necessary for according to the Constitution Establishing Public Credit” (Report on a was appointed vice president. National Bank) of 13 December 1790 was approved by Congress in 1791, and a In 1775, after the beginning of the National Bank became a fact that Jefferson war against England with the restrictions considered against the Constitution. on exports due to the blockade of the Hamilton also submitted a “Report on the British Navy, the rebels had to call for Establishment of a Mint” on January 28th, financial aid from the enemies of Great 1791 because he was persuaded of the need Britain and for internal loans as well. So- of a national currency after a discussion about several points: “the nature of the 15 The full title of Smith’s work is “An Inquiry into money unit of the United States, the the Nature and Causes of the Wealth of Nations”. 16 North, Douglass C. “Growth and Welfare in the proportion between and silver; if American Past”, p. 57. coins of both metals are to be established, 17 Robert Morris (Liverpool 1734-Philadelphia the proportion and composition of alloy in 1806), immigrated to the United States in 1747 and each kind, the expence of coinage shall be was a Senator from Pennsylvania. He was defrayed by the Government, or out of the appointed national superintendent of finance during 1781-1784. He is one of the signers of the material, the number, denominations, Constitution of the United States. sizes, and devices of the Coins, foreign 18 George Washington (1732-1799), federalist, was the first president of the United States in 1789- 1797. In 1792 he was reelected to a second term. 19 Some authors remark that the British currency Among the main highlights of his presidency were was one of the currencies used in the colonies. the “Bank Act” that established a nationwide bank Hargreaves-Mawdslay, W.N. “Eighteenth-Century system and the “Coinage Act” that gave the Spain 1700–1788: A Political, Diplomatic and government power to mint coins. Institutional History”, p.135.

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Coins shall be permitted to be current or confidence, and be likely to render not; if the former, at what rate and for it equal to the exigencies of the what period. “ As Hamilton stated in the Public.” final version of his Report, the model of the “Spanish Real de a ocho”, “the The Report on a National Bank is a Spanish Dollar” had advantages over other magnificent exhibition of knowledge about foreign currencies: the financial and banking system. Hamilton widely demonstrates that he “A prerequisite to determining, with deserves the just title of being the father of propriety, what ought to be the the economy of the United States for his money unit of the United States... contributions and vision of future, although The manner of adjusting foreign some of his projects have not survived. He exchanges would seem to indicate explained his idea about the National Bank the Dollar as best entitled to that and the existing banking system in the 21 Character. In these the old piastre United States : of Spain; or Old Seville piece of eight Rials of the value of four “It is a fact well understood, that shillings and sixpence sterling is public Banks have found admission evidently contemplated.”20 and patronage among the principal and most enlightened commercial There were huge differences nations. They have successively between Hamilton and Madison on the obtained in Italy, Germany, occasion of the Second Report for the Holland, England and France, as founding of a federal central bank, well as in the United States”. opposition that supported. Jefferson was Secretary of State Hamilton refers to the following and argued that the Constitution had not advantages to set up a National Bank: foreseen the constitution of a Central Bank First. The augmentation of the In the “Second Report on the Further active or productive capital of a country. Provision Necessary for Establishing Gold and Silver, when they are employed Public Credit” (Report on a National merely as the instruments of exchange and Bank) of 13 December 1790, Hamilton alienation, have been not improperly stated great importance of a National Bank denominated dead Stock… Secondly. in the United States: Greater facility to the Government in obtaining pecuniary aids, especially in sudden “That a National Bank is an Institution of primary importance to the prosperous administration of 21 The Report states the existing map of the banking the Finances, and would be of the system of the United States and the structure of the National Bank as it follows: greatest utility in the operations “There are at present three banks in the United connected with the support of the States. That of North America, established in the Public Credit, his attention has city of Philadelphia; that of New York, established been drawn to devising the plan of in the city of New York; that of Massachusetts, such an institution, upon a scale, established in the city of . Of these three, the which will intitle it to the first is the only one, which has at any time had a direct relation to the Government of the United States., “Final Version of the Second Report on the 20 Final Version of the Report on the Establishment Further Provision Necessary for Establishing of a Mint, Philadelphia, January 28th, 1791, Public Credit (Report on a National Bank)”, th Founders Archives. Treasury Department, December 13 , 1790.

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emergencies… Thirdly. The facilitating of the payment of taxes....” Jefferson calls for the need to use the decimal system for the “Spanish The report of Hamilton "For the Dollar” topic on which he agrees with Bank", of February of 1791, was a Hamilton and both shared the opinion that demolishing plea in favor of a national the United States might adopt a decimal Bank and convinced George Washington coinage and standardization of weighs and against the arguments of his opponents, measures being the first country to adopt it especially the Secretary of the War, Henry in the world24. The “Note on Coinage” of Knox, and the Secretary of Justice, Jefferson still stressed that the “Spanish Edmund Randolph, besides the traditional Dollar” might be adopted because it is opposition of the Secretary of State, already “a known coin, and the most Thomas Jefferson. familiar of all to the minds of the people”25

President Thomas Jefferson22 By the “Coinage Act” of April 2, proposed to adopt the Spanish dollar 1792 the Government gave power to mint standard for the currency of the United coins and a Mint was established “for the States in his “Report to Congress” in 1784. purpose of national coinage”26 and was In the “Notes on the establishment of a Money Unit, and of a Coinage for the United States” the necessary conditions to more convenient size than the Dollar could be proposed… II… If we adopt the Dollar for our adopt a currency unit for the United States Unit, we should strike four coins, one of gold, two and his choice are stated: of silver, and one of , … III. The third condition required is that the Unit, it’s multiples, “In fixing the Unit of money, these and subdivisions coincide in value with some of the circumstances are of principal importance. known coins so nearly, that the people may, by a I. That it be of convenient size to be quick reference in the mind, estimate their value. Founders Archives, Notes on Coinage, March–May applied as a measure to the 1784. common money transactions of life. 24 Alexander Hamilton wrote to Jefferson a letter to II. That it’s parts and multiples be celebrate the idea: New York, June 16,1790: in an easy proportion to each other, ‘Mr Hamilton presents his Compliments to Mr. so as to facilitate the money Jefferson. He has perused with much satisfaction arithmetic. the draft of his report on the subject of weights and measures…. The idea of a general standard among III. That the Unit and it’s parts, or nations … seems full of convenience & divisions be so nearly of the value order’.Founders Online, of some of the known coins as that https://founders.archives.gov/documents/Hamilton they may be of easy adoption for 25 The exact declaration of Jefferson is” The Unit or the people. Dollar is a known coin, and the most familiar of all to the minds of the people. It is already adopted The Spanish Dollar seems to fulfil from South to North; has identified our currency, all these conditions”.23 and therefore happily offers itself as an Unit already introduced. Our public debt, our requisitions, and their apportionments have given it 22 Thomas Jefferson (1743-1826), a Democratic- actual and long possession of the place of Unit. Republican, was the third president of the United “Jefferson’s Notes on Coinage, Editorial Note”. States in 1801-1809. In 1804 he was reelected to a 26 The Act declared “SEC 1 Be it enacted by the second term and the Territory was Senate and House of Representatives of the United purchased from France. States of America in Congress assembled, and it is 23 The Note explains the choice with these hereby enacted and declared, That a Mint for the arguments: purpose of a national coinage be, and the same is I. Taking into our view all money transactions, established; to be situated and carried on at the great and small, I question if a common measure of seat of the Government of the United States, for the

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regulated the legal coins in the United Spain, of their present standard, at the rate States, whose denomination remembers the of ... Spanish milled dollars, at the rate of Spanish system of the “Real”, “to struck one hundred cents for each dollar, ... and coined at the said mint, coins of gold, Crowns of France, at the rate of one silver, and copper.”27 The “Coinage Act” hundred and ten cents for each established the denominations, values and crown,…”28 In the following years new its contain in gold for the Eagles, Half Acts regulating foreign coins were adopted eagles and Quarter Eagles, in silver for until the new monetary system was in force Dollars, Half Dollars, Quarter Dollars, from 1857 onwards when the “United Dismes, Half Disme, and in copper for States Dollar” was the only one currency Cents and Half Cents. For the first time in of the country as agreed. the world a country adopted the decimal system for its currencies. The 14th president of the United States, Franklin Pierce,29 appointed James From 1793 an “Act regulating Guthrie as Secretary of Treasury in 1853 to foreign Coins, and for other purposes” was reform the Treasure where corruption was adopted to “foreign gold and silver coins frequent and to put an end to depositing shall pass current as money within the Government funds in private banks United States, and be a for the violating the law. The monetary reform payment of all debts and demands, at the introduced by the “Coinage Act” of 185730 several and respective rates following, and meant the monetary union of the United not otherwise, viz. : The old coins of Great States but not in the form we presently Britain and Portugal, of their present know. The Act referring to the valuation of standard, at the rate of …; the gold coins the “Spanish Dollar” says: of France, Spain and the dominions of “Be it enacted by the Senate and the House of Representatives of the United time being”. “An Act establishing a Mint, and States of America in Congress assembled, regulating the Coins of the United States”, Second Congress, Sess. I, CH. 14, 15, 16. April 2, 1792, p. That the pieces commonly known as the 246. quarter, eighth, and sixteenth of the 27 In the SEC. 9 of the Coinage Act it is Spanish pillar dollar, and for the Mexican established: “And be it further enacted, That there dollar, shall be receivable at the Treasury shall be from time to time struck and coined at the of the United States,…” said mint, coins of gold, silver, and copper, of the following denominations, values and descriptions, viz: Eagles, each to be of the value of ten dollars or Asides, the Act put an end to the units…; Half eagles, each to be of the value of five use of foreign currencies as means of dollars…; Quarter Eagles, each to be of the value payments that were recoined by the Mint of two dollars and a half dollar…; Dollars or Units, of the United States: each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and 28 Second Congress. Sess. II. Ch. 5. 1793, “Acts of sixteen grains of standard silver; Half Dollars, the Second Congress of the United States”, p. 300. each to be of half the value of the dollar or unit; 29 Franklin Pierce (1804-1869), Democrat, was the Quarter Dollars, each to be of one fourth the value 14th president of the United States from March, 4th, of the dollar or unit; Dismes, each to be of the 1853 to March 4th, 1857. value of one tenth of a dollar or unit; Half Dismes, 30 “An Act relating to Foreign Coins and to the each to be of the value of one twentieth of a dollar, Coinage of Cents at the Mint of the United States”, Cents, each to be of the value of the one hundredth February 21, 1857, Thirty- Fourth Congress. Sess., part of a dollar, and to contain eleven - III. Ch, 56, 57, 1857. A Century of Lawmaking for weights of copper and Half Cents, each to be of the the New Nation: U.S. Congressional Documents value of half a cent”. Ibidem p.248. and Debates, 1774-1875, p. 163-164.

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“SEC. 2 And be it further enacted, 181633. But in 1819 the worst financial That the said coins, when so received, shall crisis burst out in the United States which not again be paid out, or put in circulation, provoked a collapse of the whole economy. but shall be recoined at the mint …” The inflationary practices of the “Second “SEC. 3 And be it further enacted, Bank of the United States” played an That all former acts authorizing the important role in the Panic of 1819. In currency of foreign gold or silver coins, 1836 President Andrew Jackson allowed and declaring the same as legal tender in the expiration of the charter of the Second payment for debts are hereby repealed …” Bank of the United States, so the nation remained without any Central Bank. The financial and banking system During the government of Martin Van of the new nation suffered from the Buren34, on May 10th, 1837 banks closed in beginning a great number of economic New York and Philadelphia because of the crisis and panics. One of the first panic due to the speculation on lands and a challenges for Hamilton happened when huge inflation rate followed by a long speculation in government securities and lasting economic depression until 1841. bank stock happened in August 1791. In Congress eliminated an independent December 1790, Alexander Hamilton had Treasury to hold . The proposed the creation of the “Bank of the Treasure was abolished in 1841 and United States” and President George restored in 1846, during the Administration Washington signed the charter for the of James Knox Polk35. opening of the bank. The financial “Panic of 1792” occurred during March and April The “Panic of 1857” happened 1792 aggravated by the expansion of credit during the presidency of James of the “Bank of the United States” and the Buchanan36, due to the financial crisis that speculative wave. Hamilton was affected was the first worldwide economic crisis by the fact that William Duer, his friend that lasted until the end of the Civil War. and former assistant in the Treasury, was The American Union was on economic the most important of the speculators. stand by during the Secession War (1861-

In 1815, during the presidency of James Madison31, a wide reorganization of 33 The Second Bank of the United States was the National Bank was introduced and created according to the model of Hamilton’s First 32 th Bank of the United States and was chartered by Andrew Jackson , the 7 president of the President James Madison in 1816. Andrew Jackson United States, removed government funds refused recharter the Bank and became a private from the Bank of the United States in corporation in 1836 which was liquidated in 1841. 1833. The “Second Bank of the United In its origin it was established as a private States” was chartered in Philadelphia from corporation with public duties according to Hamilton’s philosophy. 34 Martin Van Buren (1782-1862), Democrat, was the 8th president of the United States in 1837-1841. To preserve federal funds from private banks 31 James Madison (1751-1836), Democratic- bankruptcy he abolished the Treasury in 1841. Republican, was the 4th president in 1809-1817. He 35 James Knox Polk (1795-1849), Democrat, was was reelected in 1812 and introduced important the 11th president of the United States in 1845- reforms including the National Bank and 1849. During his presidency a bill was approved infrastructures. setting new tariffs and he restored the Federal 32 Andrew Jackson (1767-1845), Democrat, was treasury. president in 1829-1837. In 1832 he was reelected 36 James Buchanan (1791-1868), Democrat, was for a second term and sent the federal troops to president in 1857-1861. During his presidency South Carolina whose State’s government had seven Southern States of the United States founded nullified federal tariffs. the Confederacy on February, 4th, 1861.

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1865). Although the 1873 Panic had also the Northern Pacific Railway and the an origin in the Austro-Hungarian Empire, interests of William Rockefeller, with his the over heated sector of reconstruction in “Standard Oil Company” which financed the United States after the Civil War his also “First National City Bank”, and J. developed its own panic; this crisis lasted P. Morgan among other speculators. The until 1879 and the Congress of the United second most important economic crisis States passed the “” before the Federal Reserve System was that forced the United States to swift from adopted, was the “Panic of 1907” with an silver to . The new economic important drop in stocks prices on the New crisis arrived with the “Panic of 1893”, York Stock Exchange and that caused the while president Grover Cleveland37 was in bankruptcy of thousands of banks and office and the ceisis caused stock prices to enterprises. This crisis was known as the fall and more than 500 banks closed until “Bankers’ Panic” and occurs when 1897. Theodore Roosevelt39 was president after the assassination of MacKinley on New economic crisis happened in September 14th, 1901. the United States by the end of the 19th Century and the beginning of the 20th. The After so many economic panics due “Panic of 1896” was not as serious as other to frequent banking and financial crisis and previous economic crisis whose origin was speculations the “Federal Reserve System” the drop of silver reserves that provoked of the United States was established as the lows in stock prices and the failure of the Central banking system on December 23rd, “National Bank of Illinois”, in Chicago. 1913. This government control of the This situation was faced in the presidential monetary system in the United States was elections of 1896 by supporters of the gold the plan that came from the “National standard, like the Republican William Monetary Commission” which submitted MacKinley, with supporters of the silver its report to Congress that passed the standard as the Democrat Williams “Federal Reserve Act” and President Jennings Bryan. The 20th Century begun Woodrow Wilson40 decided, on December with MacKinley38 as President and a new 23, the “Federal Reserve Bill” became law economic crisis, known as “Panic of immediately. Some of the most important 1901”, arrived which was the first stock bankers and financiers who were involved market crash in the New York Stock in recent financial episodes of the United Exchange. This was due to the control of States crisis took important responsibilities within the Federal Reserve such as Morgan’s Deputy Benjamin Strong who 37 Grover Cleveland (1837-1908), Democrat, was became president of the Federal Reserve the 22nd and 24th president of the United States in 1885-1889 and 1893-1897. The financial Panic of 1893 provoked a huge four years depression with political and social unrest due to a wide unemployment across the country. Cleveland called 39 Theodore Roosevelt (1858-1919), Republican, out the troops to fight strikes in Chicago and put was president of the United States in 1901-1909. some public services under military control. During his presidency the Department of 38 William McKinley (1843-1901), Republican, was Commerce and Labor was established. In 1907 the the 25th president of the United States and died after Panic of 1907 burst that provoked a financial crisis being shot at the Pan-American Exposition, a and economic depression. World Fair held in Buffalo, New York. He declared 40 Thomas Woodrow Wilson (1856-1924), war on Spain on April 25th, 1898 to annexed Cuba, Democrat, was president in 1913-1921. During his Puerto Rico, Philippines and other Spanish presidency the Federal Reserve Bill was approved territories in the Pacific Ocean and the United as well as the Clayton Antitrust Bill and the Federal States became a world power. Trade Bill.

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Bank of New York, with Charles Hamlin41 currency. The same year of the publication being the first chairman of the Federal of Korwin Szymanowsky’s work, in 1888, Reserve. Jean Monnet44 was born in France who is considered the Father of the ongoing Political origins of the Economic and European integration. Monetary Union in Europe A great number of statesmen and Under the instigation of the French intellectuals put forward the dream of a deputy for the Haute-Loire Department united Europe, mainly Richard Nikolaus de Philibert Besson, in 1928, the French Coudenhove-Kalergi45 and Aristide politician and businessman Joseph Archer, Briand. Also shared his a European federalist as well, minted the vision of a United States of Europe in his currency “Europa” with the motto “États speech at the University of Zurich in 1946. Fédérés d’Europe”. Of course this coin Asides the official “fathers of the European was minted for internal purposes of integration” many others after them played federalist supporters and it never important roles as Altiero Spinelli and circulated. In 1728, Abbot Charles de but also the first Saint-Pierre42 put forward a plan for the president of the European Commission foundation of a European League of Jacques Delors, who made possible the sovereign States with no borders but with a enlargement of the Union Eastwards. common Treasury forming an economic union. Several other projects arose during stated on the first page the 19th Century from great European of his “Memoirs” that “We are not forming thinkers but all of them focused its ideas coalitions between States but union among on partial aspects for a peaceful unification people”. It was his choice for a Europe of Europe. The contribution of the Polish with freedom and prosperity taking into writer Theodore de Korwin account the aftermath of the Second World Szymanowsky43 focused his project of War. His plan was founded in several Europe in his masterpiece “L’Avenir stages: in 1951 the Coal and Steel économique, politique et social en Community, and in 1957 the European Europe” taking into account the Economic Community and the Euratom parliamentary, economic, and monetary were created. In 1940, being in exile in framework. He planned a unified Europe London, Monnet drafted the Franco-British with a custom union, a central statistical Union although it had a short life due to office, a central bank and a single the warlike circumstances46.

41 Charles Hamlin was the Assistant Secretary of 44 Jean Omer Marie Gabriel Monnet (1888-1979) the Treasury from 1893 to 1897 and from 1913 to was a French politician and diplomat. Monnet was 1914. sent to the United States and became advisor of 42 Charles-Irénée Castel, Abbé de Saint Pierre Roosevelt. After the war he drafted the “Monnet (1658-1743) was one of the first dreamers who Plan” and “the May 9th, 1950 Schumann’s proposed a European Union founded on Declaration” which gave birth to the European Coal independent States. His ideas had a great influence and Steel Community with the agreement of on Rousseau and Kant and were important to German Chancellor Adenauer and other European establish the League of Nations. Statesmen. 43 Theodore de Korwin Szymanowsky (1846-1901) 45 Richard Nikolaus Eijiro, Count of Coudenhove- was a nobleman, writer, political and economic Kalergi (1894-1972) was an Austrian-Japanese thinker. His masterpiece “L’Avenir économique, intellectual and philosopher who encourage the idea politique et social en Europe” published in French of the peaceful European integration. in Paris in 1888 marked a milestone in the literature 46 On June 16th, 1940, a meeting was held with on European unification. Churchill, Lord Halifax and Robert Vansittart,

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When the war was over, in 1945, The governments of Italy, Belgium, Monnet was commissioned by De Gaulle and the Netherlands also to organize a Plan of modernization for joined the Plan and the Treaty of Paris was France, based on a concerted agreement signed on April 18, 1951 establishing a between the authorities, businessmen and European Coal and Steel Community social forces. He became General (ECSC) for a period of 50 years. The Commissioner of the Plan. In 1948 the “Schumann Plan” had a political Statesman Robert Schumann47, born in framework because its members renounced Luxembourg, became minister of Foreign to part of their national sovereignty making Affairs of France and co-operated with reconciliation possible between Germany Jean Monnet in solving the status of and other European countries. Schuman Germany and the following so called “Plan supported Jean Monnet’s project of a Schumann” as a permanent solution that common European defense policy which put an end to the wars between France and led to the European Defence Community Germany. This Plan, published on 9 May (EDC) whose Treaty was signed on 27 1950, proposed joint control of the coal May 1952 but the French National and steel production, fundamental for the Assembly did not ratify it and was rejected war industry and joint control over these on August 30th, 1954. Ludwig Erhard industries would prevent new wars. The feared the custom union as a mean of ministry informed the German chancellor protectionism. Konrad Adenauer48 who predicted the Plan as an opportunity for the future of peaceful Jean Monnet stressed the European relations between both countries and the integration as the only choice for European whole Europe. Adenauer commissioned States to face the challenges of the new Walter Hallstein49 to the “Schumann Plan” political and economic order set up by the where he met Jean Monnet. two powers, the United States and the Soviet Union: “…The nations of Europe are too small …Prosperity and vital social Under-Secretary for Foreign Affairs, from the progress will remain elusive until the British side and the French Ambassador Corbin, the nations of Europe form a federation or a member of Free France René Pleven, Jean Monnet ‘European entity’ which will forge them and Charles de Gaulle from the French side. Jenkins, Roy. “Churchill”, p. 689. into a single economic unit”. Monnet lay th 47 Jean-Baptiste Nicolas (1886- down this idea in Algiers on August 5 , 1963) was born in Luxembourg. He was a Christian 1943. With the cooperation of Paul-Henri Democrat politician who was member of Petain’s Spaak,50 Johan W. Beyen51 drafted a government. Schumann was a founder father of the European Communities, the Council of Europe and NATO. He held the post of President of the European Economic Community from 1958 to the European Parliament between 1958 and 1960. 1967. 48 Konrad Hermann Joseph Adenauer (1876-1967) 50 Paul-Henri Charles Spaak (1899 – 311972) was a was the first Chancellor of the Federal Republic of Belgian politician considered one of the founding Germany in 1949-1963 and resumed close relations fathers of the European Union. Spaak negotiated with France, the United Kingdom and the United the Benelux agreement in 1944 and was the first States. His solid understanding with Charles de President of the Consultative Assembly of Gaulle made possible the European Communities. the Council of Europe in 1949-1950 and the first 49 (1901-1982) was a German President of the European Coal and Steel academic, diplomat and politician and founding Community in 1952 and 1954. In 1955, he chaired fathers of the European Union. He played a key the Spaak Committee and played an important role role in European integration but he fought the ideas to prepare the Treaty of Rome. of Ludwig Erhard, the German Economic minister. 51 Johan Willem Beyen (1897-1976) was one of the He became the first president of the Commission of founders father of the European Union. He played

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project in the field of nuclear energy and In the meantime the United set up the foundations for a European Kingdom and other six European countries common market with free movement of were working to set up a European Free people, goods and capital. The Treaty of Trade Association (EFTA) whose Rome was signed on March 25th, 1957 constitution was signed in January 1960. establishing the European Economic Hallstein was a solid supporter of a federal Community and the Euratom. Monnet left Europe but he knew that there were still the presidency of the High Authority of the important open topics to achieve a ECSC and established the Action federation in the sense of the United States Committee for the United States of Europe of Europe. This federal vision of Europe which will also participate in the clashed with De Gaulle’s policy of a organization of the Economic and “Europe of nations”. European integration Monetary Union. is a process and the Treaty of Rome itself is a "basic agreement" that needs The Treaty establishing the continuous development. It is a journey European Economic Community, in its with several stations, from the Customs Title II “Economic policy”, suggests the Union to set up the Common Market, to coordination of economic policies to the Economic and Monetary Union and, ensure the equilibrium of the balance of finally, the Political Union with a great payments of Member States in order to transfer of sovereignty from Member keep the confidence in its currency and to States. fulfil its commitments with the objectives of the EEC,. To achieve this target, article In 1980, Professor Juergen B. 105.2 declared that “in order to promote Donges wrote in an article that "a customs coordination of the policies of Member union can benefit greatly from the States in the monetary field to the full existence of a monetary union, as it extent needed for the functioning of the happens with the monetary union that common market, a Monetary Committee actually exists between the regions of a with advisory status is hereby set up”. nation”.53 As Professor Donges Even if the Treaty does not refer explicitly emphasizes, the "Werner Plan" designed to an Economic and Monetary Union, it the guidelines to carry out this process already considers a monetary cooperation throughout the decade of the seventies, but in order to meet with the targets of the the monetary crises prevented its common market.52 This is the origin of the application. The European Commission Monetary Committee. established the so called "monetary snake system" whose failure led to the European Monetary System (SME), which was not a

monetary union but it was very similar to an important role during the Bretton Woods conference in 1944 that laid for the World Bank the monetary system of Bretton Wood, as and the International Monetary Fund.. On April 4th, Donges highlighted. 1955 he drafted a memorandum that sent to Paul- Henri Spaak and Joseph Bech where he proposed a Hallstein as President of the customs union. His idea supported by France, European Commission scheduled a project Germany and Italy lead to the Treaty of Rome in 1957. for an economic and monetary union that 52 The Treaty refers to the Monetary Committee as a consultation body to provide the right assistance needed by a Member State, as it stated under article 53 Donges, Juergen B. “Las Comunidades 108, and also suggests “to take the necessary Europeas: aspectos económicos”, p. 79. I thank protective measures” in case of sudden crisis in the Professor Juergen B. Donges for his opinions on balance of payments. this topic during our contacts and help.

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was presented to the European Parliament the so called “Committee Delors” with the in October 1962. De Gaulle accused aim to produce a report on the Economic Hallstein of turning the European and Monetary Union according to the Economic Community in a “technocratic Maastricht Treaty and to reach an super state, a stateless and agreement to establish a common unaccountable”54. His vision of the European currency to put into circulation European integration involved not only shortly. The governors or presidents of free movements of people, services and Central Banks of Member States will be capital but common tax policy, common part of the Committee where the President budget and a common currency. Walter of the German Bundesbank laid the Hallstein was very keen in the history of condition for the creation of a European the United States after its independence in Central Bank to be independent from the 1776 and the ratification of the political influence of the Member States. Constitution in 1788 and he concluded that Europe should learn from their mistakes In 1988, after Jacques Delors’ when each of the Thirteen States defended address to the British Trade Union its own sovereignty. Congress, Margaret Thatcher answered him with the Speech to the College of The Franco-German statesmen Europe (“The Bruges Speech”) making were the most actives in the European several historical statements including integration and the set up of the monetary some contradictory arguments with British union. Chancellor Helmut Schmidt and Government behaviour and a lack of future President Valéry Giscard d'Estaing succeed vision on Europe56. The "Delors Report" to sign the agreement for a European was presented on 12 April 1989 and its Monetary System (EMS) and on March conclusions adopted the title of “Economic 13th, 1978 the European Currency Unit and Monetary Union” (EMU) that reminds (ECU) was born. The perspective of Jean the Werner Plan of 1970, including three Monnet was continued by Jacques Delors55 conditions: the irreversible convertibility in 1985 as President of the European of national currencies, the complete Commission after being elected chairman liberalization of capital movements and the of the Economic and Monetary establishment of fixed parities between Commission at the European Parliament in European currencies. The "Delors Report" 1979. Jacques Delors was the president of proposes a three-step process: The the European Commission from January 1985 to December 1994, being the biggest 56 Margaret Thatcher underlined among other ideas driver of European construction ever. After that “Britain does not dream of some cosy, isolated the achievement on the completion of the existence on the fringes of the European internal market at the Milan European Community. Our destiny is in Europe, as part of the th Community”… “The European Community is a Council on June 29 , 1985, Delors chaired practical means by which Europe can ensure the future prosperity and security of its people in a 54 Press conference delivered by De Gaulle at the world in which there are many other powerful Elysée Palace on September 9th, 1955. nations and groups of nations”… “My first guiding 55 Jacques Lucien Jean Delors (1925-) is a French principle is this: willing and active cooperation politician who was Member of the European between independent sovereign states is the best Parliament in 1979-1981 becoming chairman of the way to build a successful European Community”… Committee on Economic and Monetary Affairs. He “Some of the founding fathers of the Community served as Economic and Finances Minister in thought that the United States of America might be France in 1981-1984 in the government of François its model” … “But the whole history of America is Mitterand. Delors became President of the quite different from Europe”. Margaret Thatcher, European Commission in January 1985 where he Speech to the , Bruges Belfrey, remained until December 1994. September 20th, 1988.

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completion of the single market, with the countries, too.”57. The Treaty on European coordination of economic and monetary Union, signed in Maastricht on February 7, policies and the agreement of the exchange 1992, gave the final impetus to the rate of currencies within the mechanism of development of the Economic and the European Monetary System (EMS); in Monetary Union and the adoption of the a second step, to set up a European System Euro as the common European currency. of Central Banks (ESCB); and finally to The wording of Article B of the Treaty delegate a economic and monetary emphasizes that the European Union will sovereignty to the institutions of the be achieved setting objectives, inter alia European Union to establish a common “to promote economic and social progress currency replacing the national currencies. which is balanced and sustainable, in particular through the creation of an area Without the "German engine" the without internal frontiers, through the European Monetary Union would not have strengthening of economic and social been possible. We must thank the work of cohesion and through the establishment of Hans-Dietrich Genscher, strong supporter economic and monetary union, ultimately of the Monetary Union, and the president including a single currency in accordance of the Bundesbank, Hans Tietmeyer, at the with the provisions of this Treaty”.58 time of the birth of the Euro. Mitterand and Kohl agreed to the birth of the Monetary The Treaty in its Title II Union and the Euro with the approval of “Provisions amending the Treaty the Bundesbank, which would not become establishing the European Economic the European Central Bank, on duty to Community with a view to establishing the fight one of Germany's greatest fears: European Community” introduced inflation. In return, the reunification of the fundamental innovations among them, it German Democratic Republic with the was agreed to replace the original name Federal Republic of Germany was the “European Economic Community” by the prize to be paid. “European Community” and the reinforcement of the traditional principles The establishment of the Economic existing in the original Treaties. 59 The and Monetary Union was designed by Treaty of Maastricht amended the Treaty mutual agreement between the German establishing the European Economic Chancellor, Helmut Kohl, the French Community including clear references to President, François Mitterrand and the the “establishing a common market and an European Commission, at that time economic and monetary union and by presided by the Frenchman Jacques Delors. implementing the common policies”. The During the Second Summit of the Article 2 has changed its wording to Conference on Security and Cooperation in underline that the Economic and Monetary Europe held in Paris, in November 1990, Union will go along with ·”a harmonious the Chancellor Kohl declared that “The and balanced development of economic European Community must evolve into a activities, sustainable and non-inflationary large single market, into an economic and growth respecting the environment, a high monetary union and into a political union. degree of convergence of economic It must at the same time perform its function as nucleus of a pan-European 57 Speech by German Chancellor Helmut Kohl to economic area that is open to the reformist the Second Summit of CSCE Heads of State or Government Paris, 19-21 November 1990. 58 Treaty on European Union, Title I, “Common provisions”, Article B, p. 7 59 TEU Article G-A (1)

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performance…”60. The Treaty underlined The Euro has still many risks ahead and the conditions for the establishment of the has to face many criticisms as “in its economic and monetary union and the current form, the EMU is not sustainable in single currency.”61 the long run”64 and the “euro and eurozone, as we know them, will The establishment of a European disappear”. The 2016 Nobel prize in Central Bank is provided in Article 4a as a Economic Sciences, Oliver Simon D’Arcy part of the European System of Central Hart, professor at Harvard University Banks: declared that the European member States are not “sufficiently homogeneous” to be “A European System of Central considered one single entity and to make Banks (hereinafter referred to as the EU-28 into one was an “error”.65 "ESCB') and a European Central Bank (hereinafter referred to as "ECB") shall be established in Conclusions accordance with the procedures laid down in this Treaty; they shall The construction of a new nation, act within the limits of powers like the United States, cannot be compared conferred upon them by this Treaty to the integration of countries with a and by the Statute of the ESCB and history of thousands of years, with of the ECB (hereinafter referred to

as “Statute of the ESCB') annexed 62 euro sont aujourd’hui plus importantes que les thereto” . exportations intra-zone euro, selon les données présentées par le gouverneur de la Banque de France. The Jacques Delors Institute L’euro était également censé engendrer une plus organized a debate on "The euro as a lever forte convergence entre les pays de la zone euro et for European integration", held on renforcer la croissance économique et la création d’emplois. Cette convergence n’a pas eu lieu et la December 9, 2017, in Paris, where performance de la zone euro en termes de François Villeroy de Galhau, Governor of croissance et d’emplois a été moins bonne que celle the Banque de France, recalled the des États-Unis. À l’évidence, malgré l’union positive balance of the euro, although some monétaire, les États y participant ont présenté des macroeconomic expectations based on the performances économiques. François Villeroy de 63 Galhau a attribué à l’UEM deux autres réussites. common currency did not materialize . D’une part, l’Eurosystème est probablement l’organe européen qui marche le mieux. Il y a une 60 The Article 2 has also references to “a high level bonne coordination entre les acteurs en termes de of employment and of social protection.” décision et exécution. D’autre part, l’euro a entraîné 61 The Article 3a, indent 2 mentioned activities that une reconnaissance politique de l’Europe sur la “shall include the irrevocable fixing of exchange scène internationale extrêmement importante. rates leading to the introduction of a single Quand le président de la Banque centrale currency, the ecu, and the definition and conduct of européenne (BCE), Mario Draghi, s’exprime au G7 a single monetary policy of exchange-rate policy ou au G20, il est écouté avec attention. Grâce à the primary objective of both of which shall be to l’euro, l’UE a une capacité d’influence sur la scène price stability. économique internationale très forte ». Institut 62 Treaty on European Union, Title II, “Provisions Jacques Delors. amending the Treaty establishing the European 64 «Dans sa forme actuelle, l'UEM n'est pas viable Economic Community with a view to establishing à long terme. La crise actuelle l'a poussée à ses the European Community”, Article 4a, p. 14. limites, et la prochaine crise risque de la faire 63 The Governor of the Banque of France said inter exploser”. Report of two think tank, l'Institut alia: « On attendait que l’euro entraîne un Jacques Delors and the Fondation Bertelsmann renforcement du marché unique ; or les Stiftung, on September, 20th, 2016. exportations en valeur vers l’extérieur de la zone 65 Euractiv, December 9th, 2016

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different cultures and with different of traditional values and freedom. political, economic and social structures, Economic integration within the European such as the European Union. The Union and a common European currency is construction of a nation needs a currency a symbol of stability for its political future. and its own monetary system as an element of integration. Hamilton was a great The Thirteen Colonies of North visionary who knew how to set up the right America became a great country because basis to ensure the future of the United of the work of Washington, Hamilton, States. When Hamilton and Jefferson were Jefferson, ... but Europe as well was the at work to build their new nation they had result of the work of Monnet, Schumann, already a monetary structure, the monetary Halstein, Adenauer, Delors, great system of the Spanish Empire that was visionaries who contributed to build a adopted from that time onwards, as another European Union peacefully, as an example of the American practical- integration model worldwide. mercantilist philosophy. Europe started from a multitude of different monetary systems and managed to transform them References into an Economic and Monetary Union in the 21st century. - Cabot Lodge, H. The Continentalist, The Works of Alexander Hamilton. Online The United States needed much Library of Liberty. longer periods to establish its own - Donges, Juergen B. Las Comunidades currency that was only achieved in 1857, Europeas: aspectos económicos, in Las and to organize a banking system, Comunidades Europeas, Documentación established in 1919, after the country administrativa, Madrid, January-March suffered a cascade of economic crises and 1980. In Spanish. panics since the founding of the nation. - Fontaine, Pascal. Jean Monnet, a grand The European Union had established its design for Europe, European Commission, Economic and Monetary Union, and a 1988. common European currency, in a shorter - Founders Archives. National Historical period of time, despite the difficulties. Publications and Records Commission (NHPRC). In the recent global crisis 2008- - Founders Online, The official website of 2017 the criticisms against the Euro were the U.S. government. even harsher and the false "gurus" of the - Hamilton, Alexander. Works IV, pp. 104- economy predicted not only the blow up of 138, Annals of America, vol. 3 Sel 91. the Euro but the European Union as well, Chicago: Mortimer J. Adler ed. 2007. mainly after the deep crisis of Greece and - Hargreaves-Mawdslay, W.N. Eighteenth- the referendum with the result "pro Brexit" Century Spain 1700–1788: A Political, in the United Kingdom. Diplomatic and Institutional History, The Macmillan Press, London 1979 The European Union has faced a - Jefferson, Thomas. Notes on a Money great number of difficulties to reach the Unit for the U.S., 1782, The Library of the 21st Century’s shape and has still a long Congress. way ahead before reaching the complete - Jenkins, Roy. Churchill, Spanish economic and political union. In spite of translation, Diario ABC, S.L., Madrid, all difficulties and the instability expected 2002 ahead the European Union is the only - Monnet, Jean. Memoirs, Double Day and guarantee for a peaceful Europe, defenders Company, Inc., Garden City, New York,

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1978, Translated from the French by - Thatcher, Margaret. The Downing Street Richard Mayne. Years, Harper-Collins Publishers, Inc., - National Archives of the United States N.Y., 1993. government. - Treaties of the European Union - North, Douglass C. Growth and Welfare -Webster’s Dictionary of the English in the American Past. A new economic Language, Encyclopedic Edition, Lexicon history, Prentice-Hall, Inc., Englewood Publications Inc., New York, 1988. Cliffs, N.J., 1966. - Works of Alexander Hamilton, IV, pp. - Stiglitz, Joseph E. The Euro. How a 104-138. Annals of America, vol. 3 Sel 91. common currency Threatens the Future of Chicago: Mortimer J. Adler ed. 2007 Europe, Penguin, 2017.

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