“From 1776 to 1914, drugs were mostly legal on a federal and local level.”
Please review the history of Opium Dens in the US and laws passed in response to them with respect to the statement quoted above.
In 1988 Paul made a presidential campaign stop at the National Organization for the Reform of Marijuana Laws while running on the Libertarian Party ticket. “What was so bad about the period from 1776 to 1914?” Paul wondered, referring to a time in American history when drugs were legal on the federal, and, in many towns, local level. “In the 20th Century, the doctors, like all business people, decided that there ought to be a monopoly. If you wanted a little bit of codeine in your cough medicine, it would be much better if you come to me so I can charge you $25 for a prescription.’
http://www.huffingtonpost.com/2011/12/27/ron-paul-drugs-drug-war_n_1170878.html