Thank you for educating me about the quote; this is one of the great things about Free Republic.
Here is a link to what appears to be an authoritative collection of Jefferson quotations concerning banking, hosted by his alma mater, the University of Virginia.
http://etext.virginia.edu/jefferson/quotations/jeff1325.htm
One cannot read these quotes fairly without distilling them into a less-prescient conclusion along the same lines as the spurious portion of the quote I used.
For example,
“Certainly no nation ever before abandoned to the avarice and jugglings of private individuals to regulate according to their own interests, the quantum of circulating medium for the nation — to inflate, by deluges of paper, the nominal prices of property, and then to buy up that property at 1s. in the pound, having first withdrawn the floating medium which might endanger a competition in purchase. Yet this is what has been done, and will be done, unless stayed by the protecting hand of the legislature. The evil has been produced by the error of their sanction of this ruinous machinery of banks; and justice, wisdom, duty, all require that they should interpose and arrest it before the schemes of plunder and spoilation desolate the country.” —Thomas Jefferson to William C. Rives, 1819. ME 15:232
One of the reasons we have even the vestiges of a Free Republic is because back then, people understood banking and money. But how few today could venture to explain why Thomas Paine said that any politician who even proposed tender laws should be put to death? “My people are destroyed for want of knowledge,” as the prophet Hosea said.
I hope you're not including Jefferson as one of those people.
Sorry, but this is just a cop-out. I'm glad you realized the quote was fabricated, but there should be no need to "distill" Jefferson's letters. It's not like he wrote in Old English.
Jefferson knew when to button his lips and let the pros do the work. Thus, we have the Louisiana purchase.