"There are instruments so dangerous to the rights of the nation and which place them so totally at the mercy of their governors that those governors, whether legislative or executive, should be restrained from keeping such instruments on foot but in well-defined cases. Such an instrument is a standing army." --Thomas Jefferson to David Humphreys, 1789. ME 7:323
I didn't even have to combine that with another quote.
If a bank acts in good faith and accepts the consequences of its actions, no.
and disband the military?
No. Are you sure that's not a Ron Paul quote?
Maybe you could send all the troops home until needed in the 18th century, but not today.