What did Henry Ford say about the banking system?

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

What would happen if we didn’t have banks?

Without banks, we wouldn’t have loans to buy a house or a car. We wouldn’t have paper money to buy the things we need. We wouldn’t have cash machines to roll out paper money on demand from our account. Seriously, in their time, all of these were novelties, introduced by banks.

How did Henry accumulate wealth?

In 1903, he borrowed $28,000 to establish the Ford Motor Company. The early cars produced by this firm generated enough profit to make Ford wealthy, and to give him time to take on a more long-range project: the Model T.

What provides the monetary system?

A monetary system is a system by which a government provides money in a country’s economy. Modern monetary systems usually consist of the national treasury, the mint, the central banks and commercial banks.

What would the world be without banks?

A world without banks would be a world without money as we know it. As such, companies that try to offer traditional bank-like services and nothing more will greatly struggle in a world where such services are no longer required and no longer desired.

How banks are important to the economy?

The banking system plays an important role in the modern economic world. Banks collect the savings of the individuals and lend them out to business- people and manufacturers. Thus, the banks play an important role in the creation of new capital (or capital formation) in a country and thus help the growth process.

Is paper money a debt?

National banknotes are often – but not always – legal tender, meaning that courts of law are required to recognize them as satisfactory payment of money debts. Historically, banks sought to ensure that they could always pay customers in coins when they presented banknotes for payment.