Banks and money supply

What does it mean to "contract the money supply causing a depression"?
This 'contract the money' thing puzzles me, why go to war if it is that easy to destroy a nation? Just put up a bank and contract money... ?

contracting of the money supply in US was done in 1833 at least;
1832: President Andrew Jackson, runs the campaign for his second term in office under the slogan, "Jackson And No Bank!" This is in reference to his plan to take the control of the American money system to benefit the American people, not for the profiteering of the Rothschilds.

1833: President Andrew Jackson starts removing the government's deposits from the Rothschild controlled, Second Bank of the United States and instead deposits them into banks directed by democratic bankers.
This causes the Rothschilds to panic and so they do what they do best, contract the money supply causing a depression. President Jackson knows what they are up to and later states,
"You are a den of thieves vipers, and I intend to rout you out, and by the Eternal God, I will rout you out."



[edit on 18-1-2008 by Ghaele]