Public Banks: Declaring Independence from Wall Street [] Sala Quetzal La Biblioteca Publica (Public Library)

Public Banks:
Declaring Independence from Wall Street

Thursday, January 9th 
at 11:00 am

Sala Quetzal La Biblioteca Publica (Public Library)

When the big Wall Street banks crashed the economy a decade ago due to their financial speculation, many people began to ask “why should we put our money at risk with Wall Street?” Although the federal government bailed them out with billions of dollars at taxpayer expense, it was a clear warning of the danger of trusting our financial future to private banks. Homeowners lost their mortgaged houses, homelessness and unemployment rose, local and state governments found their budgets squeezed, and public services were curtailed. Many realized there must be a better way.

The State of North Dakota had a better way. During the 2008 national crisis North Dakota had the lowest mortgage foreclosure rate in the country. Unemployment was among the lowest and local governments enjoyed healthy budgets. How was that possible? It was because North Dakota had a public bank. It had a bank owned by the citizens of the state. Rather than depositing tax revenues in private Wall Street banks, North Dakota kept that money in the state and used it to support the local economy. Founded in 1919, the Bank of North Dakota used its money for farm loans, student loans, small business loans in partnership with small local banks around the state. As a result North Dakota has more local banks than any other state. It has a healthier economy because it declared independence from Wall Street a century ago.

The lessons of public banking have been taken to heart across the country over the last decade. Local groups of citizens have advocated for public banks in Philadelphia, Vermont, New York, Michigan, Illinois, Washington state, Arizona, Alaska and elsewhere. In 30 states legislation has been proposed in support of public-owned banks. California has just passed legislation that is opening the way for public banking across the state. And the governor of New Jersey is championing a public bank for that state.

The Public Banking Institute has been the primary resource for activists promoting public banking across the US. Go to www.publicbankinginstitute.org to learn more about how finance is being democratized.

Ellen Brown, who founded the Public Banking Institute, is the leading advocate of public banking. In a video talk by Brown, she explains how when a state government has its own public bank it can finance infrastructure projects without issuing bonds, saving 50% of the cost of such projects. The state can direct credit to serve the public good rather than private profit. Interest on loans comes back into the state coffers, reducing taxes. Public banks do not pay multimillion dollar compensation to their executives since they are public servants. And when public banks are democratically accountable, they empower citizens rather than the wealthy few.

Since public banks follow an old fashioned home town management philosophy, they are risk adverse and in tune with local needs. In fact, the Bank of North Dakota has been judged to be a safer bank than the Wall Street giants.

The library has thrived and grown through the generous gift of time and money by members of the community, and as is still the case, has relied for the past 50 years on the continued financial support of the people in San Miguel de Allende. The Biblioteca wishes to thank all of the generous persons, groups and companies for their donations of time and money. The library began in a private home in 1954 and moved in 1958 to its current location at Insurgentes 25. This year, the Biblioteca is celebrating its 50th anniversary at this address and will offer a series of special events. Aside from its holdings of more than 60,000 volumes in Spanish, English, German or French and its many lecture, film and theater events, the library grants scholarships to young students and offers cultural activities.

If you wouldn’t normally include a library on your vacation itinerary, you might want to reconsider when you’re in San Miguel. The city’s Public Library has an extensive collection of both Spanish- and English-language books and films, and offers a quiet respite from the sights and sounds of the city. In 1954, Canadian expat Helen Wale invited Mexican children to read through a collection of magazines in her home. Soon, the volume of visitors outgrew the space. In 1958, the library moved to its current location in an 18th-century building several blocks north of El Jardin in central San Miguel. Today, in addition to its abundant bilingual media, the library offers free classes for children on subjects like computers, painting and piano. The library also hosts cultural events and English-language tours that guide visitors through the neighborhood’s colonial architecture. Inside the library, you’ll find a courtyard cafe (good for a quick bite) and the Santa Ana Theatre, which shows international films and hosts concerts by San Miguel’s popular musicians. With its large number of events, the site has become a cultural artery for residents and visitors alike. “This is more than a library. It’s a memorable gathering point for Spanish and English speakers of all ages to share books, chess, movies, music and food,” one TripAdvisor reviewer wrote. The library is open to the public Monday through Friday from 10 a.m. to 7 p.m. and Saturday from 10 a.m. to 2 p.m. Guided house and garden tours operate on Sundays from 10 a.m. to noon; the two-hour tour costs 150 MXN (about $12 USD) per person. Tickets can be purchased at library’s Ticket Center.