In this case the Money Makers is a book written by Ben Tarnoff, Penguin Press, 2011  is about counterfeiters. Mr. Tarnoff wrote about the portion of American history from 1876 to after the Civil War focusing on the notes people used to exchange goods and services. If you look in your wallet, you will likely find a bill or some amount, what exactly is the history of that note? When people started coming to live in urban settings, there is a need for some sort of exchange of bills or something was used. Over time many different things have been used – corn, tobacco, sea shells, barter (Jack and the Beanstalk) something that facilitated the exchange. In the United States, the constitution did not directly deal with the printing of money, so for many years it was the states’ responsibility. The states gave the responsibility to the banks and some were outstanding and some were not. In every business there is some element of fraud and although fraud hurts, it usually does not kill anyone. Since it does not kill, law makers have traditionally put it down on the list of priority crimes. With such as an opening between ability to produce notes and very few consequences of penalties – counterfeiters stepped into the opening and produced many notes.

It was not until the civil war, because many in the Washington (government)  believed bank notes should be backed by gold or silver, however during this time, the government printed notes as a temporary measure to pay for the cost of the war. After the war, the temporary measure became permanent and the Treasury prints the greenbacks today. Also to go after the counterfeiters, the US Secret Service was created. Prior to the war, the lesson of when two levels of government fight over jurisdiction, little will be the result and the opportunities to step around the regulation never change. In the case of the Civil War, because the bank notes are backed by the confidence of the people, the north printed counterfeit notes to undermine the confidence of the South or Confederate money. It worked as inflation and the devaluation of the dollar happened. This was a government knowing about the counterfeiters but liking it because of the effect it had. The canary in the mine is the networks the counterfeiters built up are typically not shut down just because the war is over.

Linking to dividend paying stocks, similar to the government, after a company becomes successful there will be many imitators, some illegal to trade of the dividend paying company’s good will. Counterfeiting happens in all industries that is why sometimes it is best to go with the name brands as least there should be quality as well as good margins. Part of the job of the dividend paying company is to ensure its goodwill remains high. When it does not, it is a sell signal.

There is more questions than answers, till the next time – to raising questions