Carter Glass (Rothschild Agent) and creator of the Federal Reserve

[CrackSmokeRepublican]

The length of this correspondence is formidable.. but the details very revealing. Here we find echos of the Jew Rothschilds' secretly corrupting the "populist" notion of a central bank in the USA; the actual Jewish creation of the Jewish ruled Fed Reserve System under the auspices of Goyim; then, all of this occurs  in tandem with the Russian and European Bolshevik revolutions... a reflection should give pause...  -- CSR


http://ead.lib.virginia.edu/vivaead/pub ... .component

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A Guide to the Papers of Carter Glass 1858-1946
Correspondence:

    Personal correspondence of Carter Glass and Bernard Baruch extending over a period of years to about 1922; Newton D. Baker to Carter Glass regarding Wilson's "Confidential Documents" sent with letter, 20 January 1924, Baker to Carter Glass to obtain Glass' opinion of the use of the document in connection with the platform framed at the Democratic National convention of July 11, 1924; Carter Glass to Newton D. Baker asking him to examine Glass' book; Letters between Bernard Baruch and Carter Glass, 1920-22, 1936, regarding Baruch's book, Taking the Profits Out of War, and other matters; Folder of correspondence with Dr. [Edwin] Alderman; Carter Glass to Bernard Baruch, 29 March 1927, regarding the book, The Real Colonel Houseby Arthur Howden Smith; Carter Glass to Bernard Baruch regarding Arthur Howden Smith's article in the New York Herald Tribune, 2 April 1927; Bernard Baruch to Carter Glass regarding Carter Glass' book. An Adventure in Constructive Finance; Bernard Baruch to Carter Glass, 24 March 1926, in reference to Glass' piece on currency reform; Carter Glass to Baruch, 24 March 1926, regarding Colonel House; Carter Glass to Bernard Baruch, 18 October 1926, regarding Carter Glass' narrative on Federal Reserve legislation, written to destroy both Seymour and House; Bernard Baruch to Carter Glass suggesting that Glass write an article for "some magazine" refuting House; Folder of correspondence with John Stewart Bryan, 1932 regarding politics, speeches, personal friends, includes a few letters from Bernard Baruch; Folder of correspondence with Bernard Baruch; Folder of Bob Ainsworth letters, personal and political; Folder of Harry F. Byrd letters regarding state politics; Memorandum from correspondents of Harry F. Byrd and Carter Glass, said to be a statement of the Democratic platform of 1924, as Wilson desired it. "RS" initials on attached slip. Baker letters are also in this folder.
    Personal correspondence (C-D) Box: 2

    A. Correspondence with Calvin Coolidge.
    B. Correspondence relating to state politics.
    C. Correspondence concerning the 1924 Democratic State Convention.
    D. Copy of the Virginia Democratic platform for 1924, which Carter Glass sent to several people, including George W. Norris at the Federal Reserve Bank of Philadelphia.
    E. Copies of newspaper articles dealing with Bishop James Cannon.
    F. Political and personal correspondence with Ed A. Christian : Answer to letter from Christian on October 1, 1928, Carter Glass stating that Robert L. Owen had nothing to do with the Federal Reserve Act other than to "permit it to be mangled in the Senate, which necessitated restoring. . . . its integrity in the conference committee of the two houses," despite the claims of Robert L. Owen to the contrary.
    G. Miscellaneous articles: Copy of a Virginia Democratic platform; Copies of several speeches by Carter Glass, including, "A Menacing 'Group Alliance',"
and "Truth About the Federal Reserve System " (January, 1922); Congressional address made on December 15, 1924, by Edwin A. Alderman in memory of Woodrow Wilson; Editorial presenting the position of Carter Glass on agricultural loans by the Federal Reserve System; Article, January 18, 1922, in a Memphis newspaper, defending the Federal Reserve System against the critics claiming that system policies caused deflation following the war; Newspaper article, including figures, commenting briefly on a statement of the position of the Federal Reserve; Announcement of the opening of hearings under guidance of the Senate Banking and Currency Committee, aimed at changing banking laws to meet the severe depression condition of the 1930's.
    H. Correspondence with the Josephus Daniels, editor of a Raleigh, North Carolina, newspaper: Article describing the argument between Carter Glass and L. M. Williams, a Richmond, Virginia, banker, concerning Federal Reserve policy with respect to stock speculation; Editorial stating that, despite the opposition of bankers, Carter Glass should be entrusted with responsibility for perfecting legislation relating to banking; Answer to Josephus Daniels, Carter Glass expressing the opinion that real estate mortgages should not be made eligible for rediscount, since, "if that and kindred projects were followed, we would soon transform the Federal Reserve banks into investment banks, when they would no longer be liquid or able to respond to the demands of commerce"; Request made by Daniels for an opinion on a letter regarding real estate securities from the president of the American Mortgage Company occasioned Glass' remark.
    I. Envelope containing a series of memoranda concerning the Anti-Saloon League of America.
    Personal Correspondence (D-G) Box: 3

    A. Personal References: Summary of the Carter Glass bill on banking of 1932 with special reference to changes which had been made or attempted; Memorandum showing Carter Glass' unfavorable attitude toward devaluation of the dollar; Copy of a statement by the Mississippi legislator refusing to vote on the question of remonetizing silver in the way that the State Senate had instructed.
    B. Honors and citations bestowed upon Carter Glass.
    C. Letter from H. D. Flood, State Democratic Committee.
    D. Personal correspondence with Robert Glass, E. C. Glass, Mrs. Woodrow Wilson, and Claude Swanson.
    E. Statements by Carter Glass, prepared for publication during the period of Congressional consideration of the Glass-Steagall Act; includes is a list of the changes on the Glass-Steagall bill.
    F. Newspaper clipping concerning the impartial position of Carter Glass toward the hope of J. G. Ferneyhough to become state commissioner of agriculture.
    G. Correspondence with Theodore M. Gowans.
    H. Correspondence with E. C. Folkes.
    I. Booklets about Carter Glass, one which suggests that he would be the best Democratic presidential nominee. Also a handwritten editorial by Carter Glass.
    J. Expressions of regret by Carter Glass upon the death of Admiral Cary F. Grayson.
    K. Letter to G. C. Glass from James A. Garfield on March 15, 1879, discussing concept of "party spirit."
    L. Letters, memoranda, and speeches concerning the Federal Reserve System : Copy of a speech by Carter Glass before the House of Representatives on June 14, 1917, concerning the Hardwick amendment; Story of the opposition of Carter Glass to a Roosevelt appointee for a Virginia judgeship, when the President tried to prove that the appointive power carried greater weight than did the concept of senatorial courtesy; Copy of the speech made by Carter Glass, expressing unqualified opposition to the attempt by President Franklin D. Roosevelt and his political adherents to pack the Supreme Court with men who favored New Deal proposals; Answer from Adolph A. Miller, of the Federal Reserve Board, to Carter Glass on November 20, 1934, upon receipt of an expression of regret at his retirement from public service; Letter from Carter Glass to the editor of a Texas newspaper on April 16, 1929, citing the unfavorable effects on "legitimate business," which would result from action by the Federal Reserve Board along the lines suggested by Mitchell with respect to stock speculation; Letter of December 19, 1919, Benjamin Strong to Russell C. Leffingwell, discussing the relationship between the Treasury Department and the Federal Reserve System, which he feels should be considerably strengthened as a result of the end of the war, rather than deteriorating still further, as he fears will be the case; Note from Carter Glass to John Skelton Williams, Comptroller of the Currency, thanking Williams for sending him the first Federal Reserve note to be issued; Letter, Carter Glass to Neil M. Cronin on August 26, 1920, stating that the Federal Reserve Act did not represent a modification of Aldrich plan and that the Republicans opposed the measure in Congress; Memorandum regarding certain important changes in the Glass-Steagall bill; An article by Carter Glass, "The Service of the Federal Reserve System, " sent to a member of the Democratic National Committee; Article from the Lynchburg News, February 9, 1930, "Bankers of the Nation Consider Senator Carter Glass'Strong Man' in shaping New Banking Law"; Letter from Senator Champ Clark on August 16, 1913, praising Carter Glass for his oratorical endeavors; Letter from R. E. Byrd commending Carter Glass for his part in formulating currency legislation; Congratulatory note from R. Walton Moore on September 17, 1913, on the passing of the currency measure by the House; Letter from Carter Glass to Senator Arthur Capper on April 16, 1920, giving reasons for rejecting any plan to base currency issues on government bonds; Carter Glass to Robert W. Woolley on March 22, 1921, listing certain Republicans who opposed the Federal Reserve Act, including Senators Burton and Penrose, ex-Congressman Robert W. Bonynge, and A. Platt Andrew.
    M. Correspondence with Mrs. Dillard S. Boatwright.
    N. Copy of portions of the Congressional Record, December 3, 1923, to June 7, 1924, containing statements by Carter Glass on several issues of importance at the time.
    O. Correspondence relating to certain honors and degrees conferred upon Carter Glass : Correspondence with Richard E. Byrd, including announcement by Admiral Byrd that he was sending to Carter Glass a small rock, taken from a mountain range near the South Pole that had been named after Carter Glass.
    P. Notes from Leo T. Crowley, Jesse Jones, Jim Farley, Francis Pickens Miller, Henry Morganthau, Ronald Ransom, of the Federal Reserve Board, the associates of Carter Glass in the Fight For Freedom, Inc., and others congratulating Carter Glass upon his selection as a President Pro Tem of the Senate.
    Personal Correspondence (H-L) Box: 4

[CrackSmokeRepublican]

A. Correspondence with William Proctor Gould Harding, Governor of the Federal Reserve Board : Letter from W. P. G. Harding on January 13, 1930, concerning the best method for getting bonds used as security for circulation out of national banks and into Federal Reserve banks, and opposing the suggestion by Representative Louis T. McFadden that the Comptroller of the Currency examine Federal Reserve banks at their expense; Letter, February 2, 1929, from W. P. G. Harding, concerning the division of the surplus of the Federal Reserve banks, and mentioning that he would prefer to see reserve requirements against time deposits increase from 3% to 5%, but fears the resulting loss of membership would be too great to warrant such an increase in cost; Letter from W. P. G. Harding on January 13, 1930, stating that he finds the McFadden Bill unacceptable, because of the supervisory element involved and the requirement that member banks pay the expenses of examinations. It is suggested that the excess profits of a reserve bank be more equitably distributed; Correspondence with Harding, concerning a speech to a group of New England bankers, which Carter Glass failed to present on November 8, 1929,, because of more pressing obligations; Attempted explanation by W. P. G. Harding of a $2,700,000 item in the budget, presented to Congress by the President in 1928, covering expenses of the Federal Reserve Board; Letter of January 28, 1929, from Harding, presenting a plan for participation by member banks and the government, in any excess profits of the Federal Reserve banks, amending section 7 of the Act, and offering a tentative plan for retiring national bank notes from circulation; Letter from Carter Glass to W. P. G. Harding on January 30, 1929, accompanying a copy of a proposed amendment to Section 7 of the Federal Reserve Act. Glass requests Harding to write a bill, which Carter Glass would introduce in Congress, providing for the effective retirement of national bank notes; Note from Carter Glass to Harding on March 27, 1926, expressing favor for a plan, whereby Federal Reserve banks would be given indeterminate charters; Letter from W. P. G. Harding, enclosing a copy of a memorandum sent to Representative James G. Strong on January 16, 1928, concerning his proposed stabilization bill and particularly the limitations of Federal Reserve policy with respect to the level of interest rates and prices; Note of a personal nature from W. P. G. Harding on March 26, 1926, offering unofficial backing for Carter Glass in working for revision of the McFadden Bill to include indeterminate charters for Federal Reserve banks and listing the persons and groups, including Irving Fisher, who oppose the charter amendment offered by Carter Glass, and the reasons for their opposition; Letter of December 10, 1925, from W. P. G. Harding, expressing opposition to the McFadden Bill, and including the statement that he was "unalterably opposed to having the Federal Reserve System used as a club in the settlement of the branch banking question; Letter from Carter Glass to W. P. G. Harding on October 8, 1927, noting that he and Harding are in agreement, along with Governor Norris, on an unspecified matter; Letter, October 5, 1927, from W. P. G. Harding pertaining to a letter from Carter Glass to Norris, concerning the foreign transactions of the New York Federal Reserve bank, expressing the opinion that the Federal Reserve Act has not been violated, but that it would be better for certain of the larger member banks to carry on business with foreign banks with the support of the Federal Reserve bank; Letter from Harding to Carter Glass on September 22, 1927, expressing great pleasure at the appointment of Roy A. Young, who is said to favor the "regional principles of the Federal Reserve Act," to the Federal Reserve Board; Copy of a letter sent to W. P. G. Harding on October 27, 1925, complimenting him on the objective treatment of the problems considered in his book, The Formative Period of the Federal Reserve System. Carter Glass comments at length on the incapacity evidenced by Robert L. Owen in his handling of the Federal Reserve legislation, states that Senator Robert L. Owen was "a positive obstruction to the preparation of the bill," and further admits the mistake of the House conferees in placing the Comptroller of the Currency upon the Federal Reserve Board, since the men who have filled this office had been of such uniformly poor character; Telegram from W. P. G. Harding on January 28, 1925, stating that, while national bank standards should not be lowered, these banks should be able to compete with the state banks with respect to the establishment of branches; Letter of November 9, 1925, from Harding, responding to a query by Carter Glass to say that, although he does not possess certain incriminating telegrams, sent by Senator Robert L. Owen in connection with foreign exchange speculation during a period of inflation, he thinks copies can be found at the Federal Reserve Board and that Fred I. Kent possibly has the originals; Letter from Carter Glass to W. P. G. Harding on October 29, 1923, stating that he will probably not accept speaking engagements to oppose those, including Congressman Tom Heflin, who wanted to ruin the system, whereby checks were cleared at or near par; Letter, October 23, 1923, W. P. G. Harding suggesting that Carter Glass actively oppose those persons who sought to destroy the check collection system; Letter of October 8, 1923, W. P. G. Harding to Carter Glass, enclosing a copy of a letter from Harding to Edmund Platt, in which opinions of Harding are rendered against interference by the Federal Reserve Board with the situation with respect to branch banking, created by the state laws of California, and in favor of the Dallas Federal Reserve bank engaging in open market transactions, involving bill of lading drafts endorsed by non-member banks; Carter Glass responds on October 10, 1923, that he does not feel that the Board has any power to limit the number of branches operated by state banks, which also belong to the Federal Reserve System; Letter from W. P. G. Harding on January 29, 1923, stating that there is some reason for doubt as to the future of the Federal Reserve System, largely because of the policies and administrative powers which may be employed by those in positions of responsibility. Harding expresses the opinion that, given a continuation of the conservative lending policies of the Board, wise management of the Federal Reserve banks offers solution to the problems; Personal letter from W. P. G. Harding on January 29, 1923, opposing Senator Tom Heflin's proposed amendment to the Federal Reserve Act, whereby progressive rates of interest would not be charged by Federal Reserve banks. Harding fears that the next move by Tom Heflin would be to attempt to place an upper limit on the discount rate through legislative action; Letter from Carter Glass on January 24, 1923, congratulating W. P. G. Harding on becoming governor of the Boston Federal Reserve bank, stating that it was a pity that a President had not been elected, who would have been ready to protect the banking system of the country from political attacks, and suggesting that, given the recent appointments, it would be impossible for the system to remain intact; Letter of October 18, 1922, Carter Glass to George W. Detrick of Hopwell, Virginia, stating that he had done nothing about getting W. P. G. Harding reappointed as governor of the Federal Reserve Board, largely because he felt that his opinion carried no weight with the President, although he would prefer to see Harding remain at the job; Handwritten note from W. P. G. Harding to Carter Glass on September 2, 1922, stating that he has learned that the President refuses to place Harding's name in nomination for reappointment to the Board, because of his fear that Senator Tom Heflin will carry out his threat to invoke senatorial courtesy; Copy of a newspaper article praising Carter Glass for a speech in behalf of the Federal Reserve System is sent to him by Harding; Correspondence pertaining to the attacks by Senator Tom Heflin on the Federal Reserve bank; Letters relating to par clearance of checks, including a report by Charles A. Peple, deputy governor of the Richmond Federal reserve bank, on a controversial question, involving the collection system; Several complimentary letters from Carter Glass to W. P. G. Harding upon important occasions in the career of the governor; Newspaper report of a combination of bankers in opposition to the policies of the Federal Reserve System; Memorandum on November 17, 1919, from W. P. G. Harding to Senator Robert L. Owen, relating to speculative activities by the Federal Reserve banks; Response by Carter Glass to Harding's statement dispatched to Senator Robert L. Owen.
    B. Correspondence with Charles S. Hamlin : Letter, Carter Glass to Charles S. Hamlin on December 18, 1934, concerning the impropriety of the Federal Reserve Board, the Insurance of Deposits Corporation, or any institution, other than Congress, placing limits on the rate of interest charged on time deposits by state banks, which were not members of the Federal Reserve System; Copy of a November 7, 1929, letter from Carter Glass to W. P. G. Harding, discussing the distribution of a greater portion of the earnings of the Federal Reserve System to the member banks, rather that the government, as an incentive to membership in the System, and setting forth the desirability of preventing stack gambling through punitive legislation; Note from Governor Eugene Meyer, of the Federal Reserve Board, on December 6, 1932, accompanying a statement to the effect that " Congress has the constitutional power to establish a unified commercial banking system under national supervision;" Letter, Charles S. Hamlin to Carter Glass, June 7, 1935, quoting an entry in his diary, expressing the opinion that Carter Glass was in a position to strengthen the Federal Reserve Board and to make it a legally independent body, if he would work to have the Federal Reserve Act amended in the manner proposed at that time. Charles S. Hamlin offers to discuss this matter at the convenience of Carter Glass; Letter from Carter Glass to Secretary of the Interior, Harold L. Ickes, on March 31, 1935, defending certain government loans merely as a means of increasing employment, and not, according to the interpretation of Harold L. Ickes, as a method of revising the social structure. The question of whether projects are to involve work relief, or mere relief, is part of the discussion; Letter from Charles S. Hamlin to Carter Glass on January 22, 1926, listing the names of some men to whom positions on the Federal Reserve Board had been offered.
    C. Correspondence with Cordell Hull, Secretary of State.
    D. Correspondence with Pat Harrison, of the Democratic National Committee : Correspondence concerning defense in Congress by Robert L. Owen of certain special oil interests.
    E. History of connection between Carter Glass and the Lynchburg News.
    F. Correspondence concerning Herbert Hoover : Note from President Hoover on November 13, 1931, enclosing a statement of his concerning Mortgage Discount Banks, about which he and Carter Glass had talked; Several letters involving Carter Glass and Josephus Daniels, North Carolina newspaper editor, which reflect unfavorably on Hoover; Note from President Herbert Hoover to Carter Glass on December 2, 1931, enclosing an opinion, submitted to him by the Attorney General, stating that Congressional power to regulate interstate commerce did not include the power to regulate commercial banking. Thus, commercial banks could not be compelled to become members of the Federal Reserve System.
    G. Correspondence with Colonel E. M. House : Correspondence during December 15, 1919, between Carter Glass and E. M. House, concerning a successor for Carter Glass as Secretary of the Treasury. Carter Glass recommends Russell C. Leffingwell, citing his stand in opposition to the policies of Benjamin Strong and the New York Federal Reserve bank officials. House responds that he had favored Roper, of the Internal Revenue Bureau, but was inclined to concur in the opinion of Carter Glass that Leffingwell would be the best person for the job; Copy of a letter of December 11, 1919, from Carter Glass to William G. McAdoo, discussing possible successors at the Treasury Department, suggesting that it would be unwise to remove Roper from his place at the Internal Revenue Bureau, looking upon appointment of Williams with favor, except that Carter Glass feels that a southerner should be appointed, Charles Hamlin is considered an excellent choice, except for the likelihood of his surrendering to outside influences, many reasons are offered in favor of Russell C. Leffingwell; Telegram dated September 18, 1913, from E. M. House to Carter Glass, congratulating him upon "the passage of the currency bill"; Copy of a letter from Carter Glass to President Wilson on September 29, 1921, concerning the situation with respect to ratification of the German treaty.
    H. Foreign Affairs: Letter from Carter Glass to Andrew W. Mellon, Secretary of the Treasury, concerning certain cables from Mellon, which were of a confidential nature and which Carter Glass intended to file, although continuing to hold them in confidence; Note to President Woodrow Wilson from Carter Glass on February 26, 1919, recommending that the request of a former Treasury official to work at the forthcoming Peace Conference be favorably considered; Correspondence relating to the peace treaty with Germany, the Kellog Pact, and the Treaty of Versailles.
    I. Correspondence involving David F. Houston and Charles S. Hamlin, concerning the relative positions of Great Britain and the United States, regarding certain aspects of the German peace treaty.
    J. Copy of a speech by Frank Kent about Carter Glass.
    K. Correspondence relating to the Democratic National Convention of 1924, at which time there was a slight possibility that Carter Glass would be nominated for the presidency.
    L. Letter from Carter Glass to President Harding, March 2, 1923, Carter Glass refuses to serve on the Debt Funding Commission; a statement by Carter Glass, prepared upon request of the New York Times, expressing regret at the death of President Harding.
    M. Note from Warren G. Harding on March 3, 1923, stating that he regretted that Carter Glass could not serve on the Debt Funding Commission.
    N. Correspondence with Walter Edward Harris, editor of a Petersburg, Virginia, newspaper: Correspondence concerning a supposed inconsistency in the attitude of Carter Glass toward the powers of the Federal Reserve Board, Carter Glass minimizes the controversy; Correspondence relating to an article by Carter Glass, criticizing the McFadden bank bill; Brief correspondence in which Carter Glass assures Harris of his continued opposition to Colonel E. M. House.
    O. Letter of November 28, 1919, to R. D. Haislip of Staunton, Virginia, concerning the German peace treaty.
    P. Letter to Judge Robert C. Jackson on March 28, 1920, concerning the problems relating to the Treaty of Versailles and the positions of various persons with respect to the resulting controversies.
    Q. Several relatively lengthy letters, Carter Glass to Walter Lippmann during 1933, concerning the National Recovery Act and the effect on the reserve position of the Federal Reserve System as a result of either a devaluation of the dollar or the confiscation by the government of the gold holdings of the banks.
    R. Correspondence with Russell C. Leffingwell : Letters relating to the responsibility of the Federal Reserve System for the depression and the proposed course of action for the System as of July, 1933. Carter Glass and Leffingwell disagree upon the points discussed in these letters. Carter Glass criticizes the Federal Reserve policy of purchasing government securities in a futile attempt to restore the credit structure of the country, while Leffingwell states that monetary management offers the solution to economic recovery and that the return to a gold standard should await such recovery; Statements by Russell C. Leffingwell attempting to explain the loss of export trade by the United States; Letter of July 12, 1933, Carter Glass to Russell C. Leffingwell stating that three provisions of the Carter Glass bill had been included "upon urgent Administration request," but the although having accepted the suggestions of the President, Carter Glass had not changed his own views, which he had previously expressed to Leffingwell, devotes a lengthy paragraph to criticizing Leffingwell for his apparent acceptance of certain of the schemes put into effect during the Roosevelt administration, refers particularly to the gold embargo and the closing of banks.
    S. Correspondence with Norman H. Davis during January, 1927, admitting that a speech, made by Elihu Root in defense of the League of Nations, was quite worthy of praise, but stating that the time to have made such remarks was during the fight in the Senate to bring the United States into the League.
    T. Article entitled, "History of the Lynchburg News. "
    U. Correspondence between Carter Glass and Hugh S. Johnson, administrator of the National Recovery Administration.
    V. Copy of a Senate speech, made by Carter Glass on February 11, 1930, opposing the confirmation of Charles Evans Hughes as a member of the Supreme Court. One of the primary reasons for the opposition of Carter Glass to Hughes was his decision in the Shreveport case, on the basis of which states lost all vestige of control over inter-state commerce.
    W. Copy of a letter, marked "strictly personal," from Carter Glass to Cordell Hull, Secretary of State, on August 3, 1936, concerning the restrictions on the conduct of foreign trade.
    X. Correspondence between Carter Glass and Harold L. Ickes, Secretary of the Interior, concerning the conduct of relief and work relief programs and the legislation creating these programs.
    Y. Correspondence with Pat Harrison, of the Democratic National Committee, concerning party politics.
    Personal correspondence (M-N) Box: 5

    A. Correspondence with Eugene Meyer, Governor of the Federal Reserve Board : Personal correspondence with both Eugene and Mrs. Meyer; Statement on March 14, 1933, by Eugene Meyer saying that it was not wise of the Federal Reserve Board to permit the reserve banks to make direct loans to state banks and trust companies; Copy of a January 9, 1933, statement by the board, citing the value of provisions whereby advances could be made to member banks which did not possess satisfactory eligible paper, on the basis of which credit might be extended. The board went further, to accept the recommendation of the Federal Advisory Council, the Federal Reserve agents, and the governors of the Federal Reserve banks, that the reserve banks retain the privilege of pledging direct obligations of the United States as collateral security for Federal Reserve notes; Statement of November 25, 1932, from Eugene Meyer, stating that an opinion from the legal advisor to the board is forthcoming, which will render the opinion that Congress has the power to create a unified banking system; Brief memoranda from the Federal Reserve Board, March 29, 1932, concerning the amount of investment securities "of any one obligor" which might be held by any national bank, and relating to the powers of the board over the establishment of discount rates by the reserve banks; Note to Carter Glass, written on June 15, 1932, by Eugene Meyer, on stationary bearing the letterhead of the Reconstruction Finance Corporation; Memoranda from Govenor Meyer on June 3, 1932, to Senator Peter Norbeck, chairman of the Banking and Currency Committee, pointing out that pending legislation would repeal the provision of an earlier bill, sponsored by Norbeck, whereby certain obligations of the Federal Intermediate Credit Banks were made eligible both for purchase by Federal Reserve banks and as security for advances by the reserve banks to member banks; Note from Meyer on March 26, 1932, reporting progress in consideration, by several members of the board, of a bill presented by Carter Glass. The bill was not felt by Meyer to be entirely satisfactory; Letter of March 21, 1932, to Eugene Meyer from Carter Glass, stating the position of the Banking and Currency Committee with respect to claims on the part of the Federal Reserve Board that its views were not given adequate consideration in the formulation of the latest banking legislation; List of suggested amendments to the Reconstruction Finance Corporation Act, compiled by Eugene Meyer on December 29, 1931; Statement by Govenor Meyer on February 10, 1931, expressing confidence n the ability of the Federal Reserve banks in those regions, experiencing drought conditions, to meet the extra requirements of member banks, and reminding Carter Glass that it was possibly for one Federal Reserve bank to rediscount another reserve bank; Memorandum from Meyer on February 6, 1931, presenting Federal Reserve policy with respect to the situation in which an employee of a Federal Reserve bank held a position as director of another bank; In response to commendation by Angus W. McLean of the approval by the Senate Banking and Currency Committee of the appointment of Eugene Meyer as governor of the Federal Reserve Board, Carter Glass states that he was certain Meyer would be confirmed, despite the current opposition of Senator Brookhart; Miscellaneous correspondence involving Eugene Meyer.
    B. Correspondence with Attorney General William D. Mitchell, concerning the method of arriving at the decision that banking affiliates were legal.
    C. Miscellaneous correspondence, including a telegram from Rixey Smith to Carter Glass, relating the opinion of Eugene Meyer, rendered in May, 1932, that the United States would remain on the gold standard.
    D. Correspondence with Andrew Mellon, Secretary of the Treasury, January 19, 1932, wherein Mellon answers a question by Carter Glass by stating that the Treasury Department feels that no loans were made, nor were credits established to foreign governments without legal authority.
    E. Miscellaneous letters: Letter from A. P. Miller, of the Federal Reserve Board, on November 16, 1934, complimenting Carter Glass on his work in connection with the Federal Reserve System, Miller writes on the twentieth anniversary of the opening of the Federal Reserve banks and expresses the thought that, had it not been for the efforts of Carter Glass, the charters of the banks might on that day have expired and the history of the system might have paralleled that of the First and Second Bank of the United States; Note of November 16, 1936, from Henry Morgenthau, Secretary of the Treasury, congratulating Carter Glass upon his re-election to the Senate and assuring him of the cooperation of the Treasury Department; Social note from James A. Farley, Postmaster General, on January 10, 1940; Letter from J. Edgar Hoover, April 19, 1940; Letter from Senator Curtis on June 20, 1928; Note, November 6, 1912, to Carter Glass, asking support for the writer as speaker of the House during the coming session.
    F. Correspondence with G. Walter Mapp, concerning the support of Harry F. Byrd, rather than Mapp, for Govenor of Virginia and setting forth his position favoring women suffrage only for political reasons.
    G. Correspondence with William G. McAdoo : Personal and political correspondence; Correspondence relating to attacks by certain Senators against McAdoo; Answer on November 19, 1923, Carter Glass to McAdoo, criticizing the Federal Reserve Board for its unfavorable attitude toward branch banking and attempting to refute the statements by Comptroller Dawes, concerning violation of the "spirit of the Federal Reserve Act"; Letter, October 16, 1923, to William G. McAdoo, Carter Glass mentions having attended meetings of a joint Congressional committee, which was considering the reasons for failure of state banks to take advantage of membership in the Federal Reserve System; Letter of March 7, 1923, to William G. McAdoo, pertaining to certain political affairs involving Robert L. Owen and William Jennings Bryan, and strongly criticizing John Skelton Williams and Senator Tom Heflin for their attacks upon the Federal Reserve System; Personal letter to Carter Glass from William G. McAdoo on May 7, 1923, offering the opinion that "the Federal Reserve Board, as Harding has constituted it, is extremely weak and incompetent." Speaking of the branch banking situation in California, McAdoo says, " I have never been so disgusted with the incompetence and provincialism of a great administrative body as I have been with this one." The strengthening of the Board is proposed; Exchange of confidential letters between McAdoo and Carter Glass, March, April, and May, 1924, along with the correspondence, relating to political affairs; Letters relating to the German peace treaty; Letter from William G. McAdoo on July 7, 1921, expressing uncertainty about the proposal of the Secretary of the Treasury, Mellon, with respect to the funding of the foreign debt of the United States; Correspondence regarding the Federal Farm Loan System; Another copy of the letter of December 11, 1919, to McAdoo, in which Carter Glass recommends Russell C. Leffingwell as his successor as Secretary of the Treasury, in preference to several other men, including Charles S. Hamlin and John Skelton Williams; Letter from Charles S. Hamlin at the Federal Reserve Board on December 19, 1919, suggesting that Carter Glass verify the accuracy of certain figures being used by the Treasury Department; Favorable accounts about the book, An Adventure in Constructive Finance, by Carter Glass. William G. McAdoo suggests that his files might have added to the value of one of the chapters of the book; Series of letters between Carter Glass and William G. McAdoo, discussing the history of Federal Reserve legislation. In one of the letters Carter Glass accepts the explanation by William G. McAdoo that the Samuel Untermeyer - Robert L. Owen scheme, with which he had been associated by Carter Glass, had merely been one of numerous plans which he had examined; Another letter, written by Carter Glass on March 4, 1927, to William G. McAdoo, dealing with the continued opposition by Paul M. Warburg to certain of the provisions of the Federal Reserve Act, including the par clearance of checks and continuous rediscounting operations, even when no emergency situation existed; William G. McAdoo states in a letter, February 24, 1927, that, despite the opposition of Paul M. Warburg, who sought certain changes in the act, he exercised his power, as Treasury Secretary, to give the word for the opening of the Federal Reserve banks in late 1914; Note, July 19, 1927, Russell C. Leffingwell advising Carter Glass to ignore a pamphlet, prepared by Samuel Untermeyer, so as to avoid degrading controversy; Correspondence, relating to criticisms of post-war loans by the Treasury, with Russell C. Leffingwell; Note to Russell C. Leffingwell, April 12, 1928, from Carter Glass stating that " the one real disappointment of my pubic life was my failure to induce President Wilson to give the merited honor of appointment as Secretary of the Treasury as my successor;" Memorandum for the Secretary of the Treasury, September 26, 1919, concerning the refunding of loans to foreign governments; Letters and articles pertaining to the reduction of the national debt, particularly with reference to the apportionment of credit for the task of reduction.
    H. Correspondence with Senator Kenneth D. McKellar : Letter from E. M. Hall, of Memphis, Tennessee, to Senator Kenneth D. McKellar on January 15, 1937, asking the National Bank Act to be amended with respect to the payment of interest on deposits of the government; Letter from Carter Glass to Kenneth D. McKellar on December 8, 1945, mentioning the exertion of influence by Govenor McKee, of the Federal Reserve Board, on behalf of a friend of Carter Glass, who wanted a job as an engineer with the Reconstruction Finance Corporation.
    I. Letter, Carter Glass to Nathaniel C. Manson, July 28, 1894, declining the opportunity to run for the office of Mayor, preferring newspaper work to politics. Carter Glass said at that time, "after the fullest deliberation, I have cheerfully concluded that I was not cut out for a politician in any particular."
    J. Correspondence with George F. Milton, who was doing research on Stephen A. Douglas, and had found letters to Douglas from Robert H. Carter Glass, Carter's father. Milton was interested in the response made by Douglas to these letters.
    Correspondence between President Franklin D. Roosevelt and Carter Glass 1931-1933 Box: 6
    Clipping from the Washington Postregarding Carter Glass on the New Deal, 8 April, 1934; Clipping regarding the status of gold bonds in the English courts; Clipping regarding funds for the Works Progress Administration and economic recovery; Crusaders for economic liberty to governor Franklin D. Roosevelt, warning Franklin D. Roosevelt against Carter Glass' illusion; Clipping regarding gold standard backers and the New Deal, 14 November, 1933; Letter of Nelson Cherney regarding branch banking in New York; Carter Glass to Franklin Delano Roosevelt regarding appointees to Federal Deposit Insurance Corporation Board, 10 August 1933; Letter to the editor of Transcript, 6 March 1934, marked important by Carter Glass, containing several significant sections of statements attributed to Franklin Delano Roosevelt in 1932; Carter Glass to Pierre delBoab of the State Department, 4 February 1932, regarding representation of officials at the bank of France, 4 November 1931; Letter, 29 April 1933, to the President, designated official and confidential, regarding H. Parker Willis ' statement; Letter, 6 July 1935, characterizing H. Parker Willis as affiliated with international bankers; Memo, 23 June 1936, to the President regarding Robert T. Stewart as a member of the Federal Reserve Board in which several others are mentioned; Franklin Delano Roosevelt to Carter Glass, 21 February 1935, mentioning objections to underwriting by commercial banks; Letters to and from Franklin Delano Roosevelt on various subjects but no others mention the Federal Reserve System; Dr. Terrel advising Carter Glass not to accept the position of Secretary of the Treasury, 2 February 1933; Carter Glass to Raymond Moley; Carter Glass to Harry F. Byrd regarding appointment to the Treasury, 4 February 1933; Statement by Carter Glass to the press as to why he declined to be appointed Secretary of the Treasury, 22 February 1933; Statement for the press on Carter Glass' reasons for declining the Treasury post, no date; Virginia Democratic Platform, probably written by Carter Glass, 10 June 1932; Carter Glass to Norman Hamilton regarding his editorial and Carter Glass' objection thereto, 15 December 1926; Editorial in Portsmouth paper; Woodrow Wilson's letter approving the Virginia Democratic platform, 28 May 1920; Carter Glass to Sam Small regarding Virginia Democratic platform, 18 August 1920; Release, 23 October 1928, of Democratic National Committee regarding Carter Glass on William E. Borah; Clip of letters regarding the Woodrow Wilson administration, including two on the currency system; Letter to Norman Hamilton regarding his editorial in the Portsmouth Star; Virginia delegation's support of McAdoo, 15 December 1926, replying to above letter; Woodrow Wilson to Carter Glass praising Virginia platform; Release by the Democratic National Committee of Carter Glass' radio statement on William E. Borah's position relative to Herbert Hoover, 23 October 1938; Carter Glass to Woodrow Wilson, 7 November 1912, asking for an interview regarding the currency system and other matters, which are the purpose of the desired interview; Letter to Woodrow Wilson regarding ABA backing for Aldrich Bank Bill; Carter Glass to Robert L. Owen, 28 March 1935, responding to Robert L. Owen letter of 28 April 1935 in which Robert L. Owen attacked Carter Glass; Letter to New York Times, 19 August 1920, regarding Professor Mekker's address at the Williamstown Institute, finds fault with Royal Meeker because of his ignorance of economics; Carter Glass' letter to Philadelphia Recordon the stock market speculation, margin trading, 31 October 1929, and relative to Charles E. Mitchell, a member of the Board of Governors, and his position on speculation; Statement to the New York Timesin the Carter Glass file "Letters to editors" regarding the danger that the country "was within two weeks of being driven off the gold standard." This statement attributed to Carter Glass by Senator Watson, said to have been made at a conference with the President.
    Personal Correspondence (S-U) Box: 7

    A. Two folders of political correspondence with Claude A. Swanson.
    B. Two typewritten copies of an answer prepared by Carter Glass, after Samuel Untermeyer had published a pamphlet purporting to present the true story of the persons responsible for the Federal Reserve Act. The title of the paper by Carter Glass appears to be "Vapor vs. the Record."
    C. Miscellaneous speeches: Copy of a speech by Carter Glass at a Senate caucus, January 23, 1900; Copy of the address, made by Carter Glass before the Economic Club of New York, during the period of Congressional consideration of currency legislation; Copy of a speech by Carter Glass to a graduating class at Virginia Polytechnic Institute in [1910]; Speech by Carter Glass before a constitutional convention in Virginia, September 5, 1901, suggesting that the final product be approved by the people of the state; Speech upon the occasion of the education of the dedication of a memorial at Warsaw, Virginia; Copy of a speech by Carter Glass in the House of Representatives on March 8,1916, entitled "American Rights on the Seas;" Speech before the House on February 7, 1918, "The Truth About the War Department. "
    D. Correspondence relating to Treasury matters: Samuel Untermeyer to Carter Glass, following an attack upon his record by Carter Glass; Newspaper articles discussing the acceptance by Carter Glass of the position as Secretary of the Treasury; Memoranda covering a wide variety of subjects, including a certain Treasury business; Statement about Carter Glass when he became Secretary of the Treasury; Statement of September 11, 1919, presenting the views of the Treasury Department with respect to foreign loans; A report to the President on February 28, 1919, from Carter Glass as Secretary of the Treasury; Another copy of the statement from Treasury Secretary Mellon, to the effect that no law was violated in the extension of credit to foreign governments.
    E. Personal correspondence with Palmer St. Clair, of Roanoke, Virginia.
    F. Correspondence with Jouett Shouse, who was at one time associated with Carter Glass in the Treasury Department, dealing with political affairs, particularly William G. McAdoo's campaign for the presidency in 1924.
    G. Correspondence with George J. Seay, governor of the Richmond Federal Reserve bank : Letter from George J. Seay, May 16, 1932, approving the Carter Glass bill then under consideration, opposing the Goldsborough bill, and opposing the guarantee of bank deposits. Carter Glass says that some type of deposit guarantee is inevitable, so that he hopes to have accepted the idea of forming a liquidating corporation; Letter, April 14, 1930, Carter Glass states that his banking bill will contain provisions for branch banking and a more equal distribution of the earnings of the Federal Reserve System. Seay sent statistics showing the loss of member banks as a result of the prohibition against branches; Copy of a statement showing bank earnings, sent by Seay; Letter in which George Seay notes agreement between himself and Benjamin M. Anderson, economist of the Chase National Bank of New York; Letter from George Seay, March 15, 1928, explaining his reasons for feeling the Federal Reserve System had created too much credit. The expansion of time deposits had brought a low ratio of required reserves and the excess credit was finding its way into the security markets, said Seay. Seay disagreed with O. M. W. Sprague, who said that the excess credit in circulation arose from the investment of capital savings, rather than from Federal Reserve policy; Paper by George J. Seay, "Illustrating the Expanded Condition of Bank Credit;" Carter Glass, October 20, 1927, thanking George Seay for advising him upon the decision of the Federal Reserve Board on the Chicago discount rate case. Seay felt that the Board should continue to exercise powers of review over discount rate policy, but should not be permitted to dictate a uniform discount rate for all the banks; Letter from George J. Seay, August 12, 1927, advising against lowering the discount rate; Copy of an article from the Bankers Magazine, "Centralizing Federal Reserve Control," sent to Carter Glass by George Seay on April 12, 1927, Seay compliments Carter Glass on his own articles, designed to place credit for Federal Reserve legislation where it was due. In warning Carter Glass about renewed attempts to centralize the Federal Reserve System by some unrecognized individuals, Seay points out the extreme importance of preserving the regional aspect of the system; Copy of several amendments to the Federal Reserve Act aimed at stabilizing the general price level, forwarded by George J. Seay, who had received his copy from James. G. Strong, who planned to introduce the amendments in the House; Excellent statement by George Seay on June 1, 1926, criticizing the amendments proposed by Representative Strong. Seay doubts the wisdom of further attempts by any central body to control credit and does not feel that stabilized prices represent an appropriate goal; Brief letter from George Seay to John M. Miller, a Richmond, Virginia banker, criticizing the McFadden branch banking bill, particularly with respect to loans; Note from Carter Glass to Seay on April 20, 1929, expressing little respect for the officials of the American Bankers Association, who had been willing to sacrifice indeterminate charters for the Federal Reserve banks, if they could get the Hull amendments accepted; Seay states in a letter of April 17, 1926, that he does not feel that it is necessary to do away with branch banking; George Seay to Carter Glass, a copy of a booklet he prepared on September 15, 1925, reviewing the problem of, "Credit Expansion;" Correspondence whereby Seay obtained a copy of the report of the Pujo Committee; Figures sent by George J. Seay on February 15, 1924, purport to show the position of banks at that time, compared to what their position might have been, if the National Bank Act were still in effect; Other correspondence with George J. Seay.
    H. Personal correspondence with the evangelist William A. (Billy) Sunday, who had been so impressed by the large number of favorable comments, made during his visit to Lynchburg, in September, 1921, about Carter Glass that he had spoken of Carter Glass at one of his meetings.
    I. Letters to Edward M. Taylor, a member of the rotary club at Lynchburg, Virginia.
    J. Correspondence of Carter Glass, Russell C. Leffingwell, William G. McAdoo, and former Assistant Treasury Secretary Kelly, concerning the authority of the Treasury Department to extend foreign loans, following the armistice which ended World War I, including a conclusive memoranda from Russell C. Leffingwell, defending the extension of the loans. (Similar correspondence with William G. McAdoo may be found filed under his name.)
    K. Letter to Carter Glass from Senator Harry S. Truman, October 3, 1936, asking that Carter Glass recommend James K. Vardaman, Missouri official of the Reconstruction Finance Corporation, to the President for a vacant position on the Federal Reserve Board. Carter Glass responds that he has already submitted the name of Bob Stewart, of Oklahoma, for the position.
    Personal Correspondence (X-Z) Box: 8

    A. Correspondence with Woodrow Wilson : Page from a notebook kept by Carter Glass during June, 1919, concerning the possibility of a third term for President Wilson or the nomination of William G. McAdoo. Woodrow Wilson is not felt to be averse to another term. Carter Glass mentions having been asked to take the chairmanship of the Resolutions Committee; April 21, 1918, President Wilson to Carter Glass, asking him to secure immediate passage of the Silver Bill, since war conditions made such legislation imperative; Final page of the Federal Reserve Act, approved on December 23, 1913, with the signature of Woodrow Wilson; Photostats of a note from President Wilson to Carter Glass, accompanying a paper of Samuel Untermeyer, which is to be turned over to William G. McAdoo, after having been read by Carter Glass; Letter, January 9, 1913, from Woodrow Wilson, asking that the currency bill be ready for introduction before the close of the extraordinary session. The President says, "I have had some very interesting conferences about the banking and currency question recently which make it very desirable that I should see you again for a further talk"; January 1, 1913, President Wilson expressing a desire to talk with Carter Glass shortly after Royal Meeker has presented the views of the "members of the Economic Association" to him; President Wilson attempts to arrange a meeting with Carter Glass, April 4, 1912; Letter, June 18, 1913, from Carter Glass, asking that the President change his mind about government control of the Federal Reserve Board, so as to permit banker representation on the board. Carter Glass refers to the agreement of Robert J. Bulkley, "a strong man of the committee with whom we must reckon," an cites the opinion of Bulkley that government control already constituted the real weakness of the measure; Correspondence with Woodrow Wilson, while he was Governor of New Jersey; Copy of a letter, Carter Glass to President Wilson, November 16, 1919, stating that he would prefer to accept an appointment to the Senate, offered by Governor Davis of Virginia, but that, if Woodrow Wilson preferred, he would remain at the Treasury Department; Handwritten copy of a note from Carter Glass to Woodrow Wilson on January 24, 1919, suggesting that John Skelton Williams be reappointed as Comptroller of the Currency, and proposing that Jouett Shouse succeed Love as Assistant Secretary of the Treasury. These suggestions were approved by President Wilson; Resignation of Carter Glass as Secretary of the Treasury, submitted to President Wilson on November 18, 1919, after Wilson had advised acceptance of the appointment to the Senate; In a note, January 29, 1914, President Wilson, having recently spoken with E. D. Hulbert, asks that Carter Glass and Senator Robert L. Owen see what could be done about removing the restriction, inadvertently placed in the currency bill, permitting only national banks to act as reserve agents for a period of three years; Note from Woodrow Wilson on June 20, 1913, thanking Carter Glass for permitting him to see a telegram from E. D. Hulbert, and expressing the hope that Hulbert will change his mind when he sees the actual bill; In a note of May 8, 1913, President Wilson thanks Carter Glass for sending him a copy of "the bill" and promises to consult with him as soon as he has finished working on it; March 23, 1920, Carter Glass presented a recommendation to the President, upon the suggestion of Secretary Houston, that Edmund Platt be appointed to fill a vacant position on the Federal Reserve Board; Secretary to President Wilson writes to Carter Glass on May 24, 1922, to say that the President is anxious to know what Carter Glass has to say about an article by Frank Vanderlip; Newspaper clipping reporting that, before William G. McAdoo resigned from his Treasury post, President Wilson offered Carter Glass an appointment to the Federal Reserve Board; Report of Carter Glass to President Wilson on June 16, 1922, criticizing the plan, intimated by Frank A. Vanderlip, for the creation of an international reserve bank, which Carter Glass considers impractical and unnecessary; Numerous other letters touching upon many subjects.
    B. Correspondence with Clifton A. Woodrum, Congressman from Virginia : Recommendation for assuring true legal tender characteristic for all coin and currency issued by the government, submitted for the approval of Carter Glass by Clifton A. Woodrum; Copy of a letter from a businessman in Roanoke, Virginia, on May 9, 1932, proposing that the world-wide depression would require that the United States reduce its production, until output was more in line with consumption; Copy of a letter sent from a contracting concern to Clifton A. Woodrum on April 30, 1935, regarding a controversy over wages with the Public Works Administration, from which the company had borrowed the money to construct several buildings at the Virginia Polytechnic Institute; Numerous letters relating to a wide variety of national and local problems.
    C. Correspondence with Mrs. Edith Bolling Wilson, wife of Woodrow Wilson : Letter accompanying a portion of the newspaper series, written by Carter Glass in 1926. Carter Glass tells Mrs. Wilson that subsequent installments will relate to the diary of Colonel House and the method of obtaining the Federal Reserve legislation; In a letter, July 14, 1926, Carter Glass tells Mrs. Wilson that her influence was, to some degree, responsible for the rapid acceptance of Charles S. Hamlin as a member of the Federal Reserve Board. Carter Glass states that this appointment was "only thing I have ventured to ask of the present administration;" Considerable personal correspondence between Mrs. Wilson and Carter Glass.
    D. Numerous letter urging Carter Glass to do his best to secure senatorial approval of the entry of the United States into the World Court.
    E. Correspondence with Paul M. Warburg : Highly complimentary letter to Carter Glass from John Wanamaker; Letter, September 14, 1926, Paul M. Warburg expressing the hope that the extension of the charter of the Federal Reserve banks would not be lost in favor of the Hull amendments. Warburg asks that Carter Glass take the opportunity, afforded by his writing a book about the Federal Reserve legislation, to correct some of the misrepresentations contained in the book by H. Parker Willis. Paul M. Warburg states that he does not seek credit for his work in connection with the legislation, but only desires that an account of the history of the measure be presented; In a letter to Paul M. Warburg on October 18, 1926, Carter Glass notes with pleasure the reversal of position by the American Bankers Association on the proposed Hull amendments to the McFadden Bill. Carter Glass refuses to concur in the condemnation by Paul M. Warburg of the H. Parker Willis book, but does feel that certain of the personal attacks, made by H. Parker Willis, were unwarranted. Carter Glass points out that, by his connection with Dr. Edwin R. Seligman, Paul M. Warburg has made himself vulnerable to criticism. Carter Glass feels that he has been as truthful with respect the Paul M. Warburg in his book as he had been regarding Colonel House and Professor Seymour; Letter of April 25, 1930, from Paul M. Warburg, informing Carter Glass that he has found it necessary to submit for public consideration a refutation of certain statements made by Carter Glass and a correction of the numerous misstatements indulged by H. Parker Willis. Warburg expresses continued friendship for Carter Glass and hopes that the public controversy the history of the System quickly dies down, so that attention can be confined to the more important problems, involving saving the System from destruction; Correspondence with Paul M. Warburg in 1929, concerning permission to include two letters, one from Carter Glass to Senator Robert L. Owen and the other from Carter Glass to Paul M. Warburg, in the book which Paul M. Warburg was about to have published; Letter from Carter Glass to H. Parker Willis, marked strictly confidential and dated December 31, 1926. Carter Glass wants to know, whether H. Parker Willis knows anything about the Paul M. Warburg plan for a "Board of Regents," to which Paul M. Warburg has ascribed the origin of the idea for the Federal Reserve Board. Carter Glass continues to defend his position with respect to the origin of this phase of the law, tracing it to President Wilson. Paul M. Warburg feels that Wilson got the idea from him through Colonel House and Morgenthau. Carter Glass reproduces a letter from himself to Paul M. Warburg on this subject; Correspondence relating to the position taken by Carter Glass when the Senate was conducting investigations, under the leadership of Gerald P. Nye, into the part played by Woodrow Wilson in getting the United States into World War I. Carter Glass defended President Wilson.
    Personal and bibliographical correspondence Box: 9

    A. Remarks by Russell C. Leffingwell on January 4, 1940, upon the presentation of the chair of government at Sweet Briar College, which had been named after Carter Glass; Copies of the Congressional Recordfor January 8, 1940.
    B. Letters, newspaper clippings, memoranda, and data compiled on the subject of the attempt by the President to pack the Supreme Court; Copy of a speech by Jesse H. Jones, chairman of the Reconstruction Finance Corporation; Copy of an amendment, suggested by Carter Glass, to the law creating the Reconstruction Finance Corporation.
    C. Copy of a report by George N. Peek, head of the Agricultural Adjustment Administration, prepared on September 12, 1933, assigning a high credit rating to the Soviet Union.
    D. Newspaper clippings, relating to the speech by Carter Glass before the Senate on November 1, 1932, in which he attempted to refute the claims of the Hoover Administration that its economic program had been the salvation of the country. Carter Glass charged the Republicans with the responsibility for the depression; Requests for copies of the speech by Carter Glass.
    E. Typewritten copy of speech by Carter Glass, opposing the attempt to pack the Supreme Court.
    F. Photostatic copy of letter to Dr. John L. Newcomb, President of the University of Virginia, from Jesse H. Jones on October 23, 1945, offering to endow a school of international affairs.
    G. Correspondence relating to the candidacy of Carter Glass for re-election to the Senate in 1942.
    H. Several letters congratulating Carter Glass upon his re-election to the Senate in 1942.
    Historical correspondence Box: 10

    A. Correspondence regarding the purchase by the Federal government of "Red Hill," the home of Patrick Henry; Copies of the act, whereby the Secretary of the Interior was empowered to purchase the Henry estate, and copies of the preliminary bill, introduced by Carter Glass; Correspondence suggesting that Carter Glass support legislation to enshrine Patrick Henry's birthplace in Hanover County, Virginia.
    B. Correspondence involving the Thomas Jefferson Bicentennial Commission; Copies of a bill, introduced by Carter Glass, creating the commission and setting forth its objectives and powers.
    Miscellaneous correspondence Box: 11

    A. Miscellaneous correspondence: Note of February 26, 1921, from Joseph P. Tumulty, secretary of President Wilson, accompanying an article in which he felt Carter Glass might be interested; Personal note of thanks from Josephus Daniels, Secretary of the Navy; Correspondence concerning war risk insurance.
    B. Miscellaneous correspondence: Note from Joseph P. Tumulty, thanking Carter Glass for sending a letter to the President through him and promising to bring it to Woodrow Wilson's attention; Correspondence with Ray S. Baker concerning the contents of the book Carter Glass was preparing for publication; Photostatic copy of a note to Carter Glass from C. B. Slemp, secretary to the President, on December 13, 1923, expressing regret that Carter Glass disapproves of the "action of the National Committee in regard to Southern representation"; Copy of a report of a joint committee of the Illinois legislature in 1911 on tuberculin tests for cattle; Copy of a letter of November 8, 1912, to Hubert D. Stevens, in which Carter Glass requests support in preventing Samuel Untermeyer from infringing upon the work of the Carter Glass sub-committee, expressing the opinion that there was a connection between Samuel Untermeyer and the Aldrich supporters; Personal note from R. W. Wooley, Director of the Mint, on March 31, 1916; Notes from Richard E. Byrd in 1912; Note of thanks from John Skelton Williams on January 31, 1914.
    C. Miscellaneous and personal letters, relating largely to political affairs: Carter Glass to William C. Bruce on September 20, 1930, promises that he would assist in the effort to have Henry B. Wilcox, a Baltimore banker, appointed to fill the existing vacancy on the Federal Reserve Board; Correspondence relating to a proposed amendment of the Settlement of War Claims Act.
    D. Correspondence with Harold L. Ickes, Secretary of the Interior, largely concerning allocation of scarce resources during World War II: Evidence of a conflict of opinion between Harold L. Ickes and Carter Glass, concerning racial segregation; Letter, May 6, 1936, from Harold L. Ickes, recommending that Carter Glass cast a favorable vote on the question of changing the name of the Interior Department to the Department of Conservation. Harold L. Ickes explains that this move has nothing to do with the proposal, made by Senator Harry F. Byrd, to reorganize the executive branch of the government.
    E. Correspondence with Dr. Hugh G. Young, of Johns Hopkins University, relating largely to legislative matters of a medical nature: Commenting upon an editorial from a Baltimore newspaper on January 17, 1930, listing questions which should be objectively considered by the Carter Glass committee, studying the financial structure of the United States, Dr. Young states that Carter Glass will conduct a thorough investigation in a conservative manner.
    Miscellaneous correspondence Box: 12

    A. Correspondence with Fred Harper, Lynchburg, Virginia, lawyer.
    B. Correspondence with Samuel M. Kaplan, 1933-1945: Letters, mostly of a personal nature, some dealing with various types of political matters; Correspondence, involving Samuel M. Kaplan, concerning wartime regulation of the prices of woolen goods by the Office of Price Administration; Correspondence relating to legislation affecting the textile industry; Suggestion from Carter Glass that the extension of a loan by the Reconstruction Finance Corporation to a business firm, owned by Samuel M. Kaplan, would be worthy of consideration, honored on November 23, 1936, by the Reconstruction Finance Corporation; March 25, 1933, Carter Glass states that he looked with favor upon suggestion of Samuel M. Kaplan that a National Wool Acceptance Bank be established; Correspondence from Al Kaplan, relating to the economic situation confronting the Franklin D. Roosevelt administration just prior to its accession to control over the federal government. Kaplan was boosting his book, The Solution of the Depression; Copy of the preface of this book is included among the letters sent to Carter Glass; Letter, January 30, 1933, Al Kaplan requests that Carter Glass consider a monetary plan, which he offers as a solution to the economic problems of the depression period; Data regarding Joseph P. Carney, whom Samuel M. Kaplan boosts for a position on the Federal Reserve Board; Letter from Samuel M. Kaplan on March 26, 1934, suggesting that a bill, introduced by Carter Glass, permitting Federal Reserve banks to make capital loans directly to industry, be amended so as to permit Federal Reserve banks to subscribe to stock in any industrial acceptance banks, which might be organized; Criticism by Samuel M. Kaplan of suggested amendments to the Agricultural Adjustment Act, considered valid by Carter Glass; Letter from F. G. Awalt, Acting Comptroller of the Currency, on February 25, 1933, setting forth some of the points upon which further legislation would be necessary with respect to the national banks, if the idea of a National Wool Acceptance Bank were to be put into effect.
    C. Correspondence from Representative Schuyler O. Bland, concerning mostly minor political and legislative matters: Copy of a letter from Schuyler O. Bland to J. T. Garrett, of the Richmond Federal Reserve Bank, asking that the Parksley National Bank, Parksley, Virginia, be permitted to reopen, is sent to Carter Glass with the request that he make a similar appeal on behalf of the community involved; Note from Carter Glass to Schuyler O. Bland on April 18, 1923, accompanying a small copy of an engraving made of Carter Glass while he was Secretary of the Treasury.
    Miscellaneous Correspondence 1902-1942 Box: 13
    A. General correspondence, not arranged in any particular alphabetical or chronological order: Correspondence from bankers concerning their views on the Federal Reserve Act and their reactions to speeches on this subject by Carter Glass; Clippings of a speech made by Carter Glass at the Constitutional Convention in Norfolk, Virginia; Reproduction of an editorial concerning Louis T. McFadden's views on Investment Trusts, undated; Copy of a speech made by James Connor, Jr., November 23, 1928, regarding Prohibition and failure to support A. Smith; Editorials concerning passage of Federal Reserve Act; Alfred R. Kimball to Secretary William G. McAdoo concerning impression made by Carter Glass at Economics Club dinner and attitude of bankers toward Federal Reserve Act. November 13, 1913; Correspondence between Carter Glass and William G. McAdoo relative to Federal Reserve Act and monetary policies; Letter from Sir George Paish to William G. McAdoo bearing on the gold reserve against Federal Reserve notes; Memorandum from E.R. Black, member of Federal Reserve Board, relative to a study of the commercial and industrial situation in the United States, provisions of legislation enabling the Reserve Banks to make industrial loans, and emphasizing need of small businesses for working capital, undated; Several letters to E. M. Baty and Otis Wingo relative to the Cook County Bankers Association and the "Committee of One Hundred." Letter to Hon. Walter E. Edge regarding possible investigation of lobbying in connection with McFadden Bill; 25 letters betweeen Glass and Dave E. Satterfield; Miscellaneous correspondence with the Hon. P.H. Drewry; Correspondence with Ray Stannard Baker relative to the chapters in his biography of Woodrow Wilson that dealt with the Federal Reserve Act; Telegram from Huey Long setting forth his ideas on "scarcity of production" as a solution to the South's economic problems; Portion of letter to Senator Copper regarding monetization of debt in World War I; Copy of a report of Frederick A. Delano on the subject of clearing, 1915; Correspondence with President Woodrow Wilson, 1919; Letter to President Harding from Comptroller of the Currency, 1920, recommending a certain amendment to the Federal Reserve Act; Letter from Carter Glass to H. Parker Willis, 1912, regarding Samuel Untermeyer and Pujo, second page missing.
    Miscellaneous Correspondence 1912-1913 Box: 14

    A. General correspondence, apparently not filed in any systematic fashion, pertaining primarily to political appointments and elections in Virginia : Requests for bulletins, seeds, etc.; Bills; Receipts; Personal letters.
    B. Of special interest are the following: Letter from George Roberts to Carter Glass, 1913, expressing his views on the problem of gold reserves for the Reserve Banks; Letter from Laurence A. Murray, Comptroller, advising certain administrative reforms in National Bank Act, 1913; Editorials on monetary and currency problems; Letter from G. J. Frame relative to his opinions on the proposed currency legislation. February 10, 1913.
    Correspondence 1912-1916 Box: 15

    A. Miscellaneous correspondence, not filed in any systematic order, covering mainly requests for favors, the election of 1912, and appointments in Virginia.
    B. Of interest are the following: Copies of several House bills referred to Carter Glass' subcommittee for consideration in 1912; Several addresses on the subject of banking; 3 typed sheets analyzing present banking situation and suggesting reform, undated and unsigned; Explanatory statement regarding "The Currency Reform Bill" by Harlow H. Chamberlain, and copy of bill; Letter from Carter Glass to Alexander Moyer of the New York Evening Postconcerning origin of Federal Reserve Act; Letter to John Gavit, "Evening Post," regarding origin of Federal Reserve Act; Reprints from various Chambers of Commerce endorsing the Morris plan.
    Miscellaneous Correspondence 1913 Box: 16
    A. Advance copy of the speech by Carter Glass to the House of Representatives in 1913, reporting the Currency Bill out of committee; Note from Joseph P. Tumulty, Secretary to President Wilson, mentioning Andrew; Notes from William G. McAdoo, Secretary of the Treasury, one of which concerns a redraft of a proposed amendment and a handwritten suggestion that Carter Glass consult Hayes, before taking any action; Letter from Woodrow Wilson on August 6, 1912, concerning campaign plans; Copy of the bill introduced in the House of Representatives in 1913 by Carter Glass and referred to the Banking and Currency Committee, attached is a list of nine reasons for considering the bill at the extra session of Congress; List of proposed amendments and the reason for the changes suggested; Lengthy statement from Frank Vanderlip of National City Bank on July 24, 1913, concerning the banking system and proposed reforms; Letter of July 7, 1913, from George N. Reynolds, of the Chicago Continental and Commercial National Bank, concerning reserve requirements and the creation of an Advisory Board; Handwritten copy of a speech Carter Glass had prepared for delivery before the House of Representatives, concerning the credit for the authorship of the Federal Reserve Act, particularly refuting the claim that the work of Senator Nelson W. Aldrich was largely responsible for the content of the Federal Reserve Act; Letter, April 13, 1917, by Paul M. Warburg, as a member of the Federal Reserve Board, requesting that state banks be permitted to hold reserve balances at the Federal Reserve Banks; Report from the Governor of the Federal Reserve Board addressed to Senator Robert L. Owen, defending the system of check clearing against elimination; Copy of a resolution, passed by the Governors of the Federal Reserve banks, opposing the Kitchen bill, which would permit the collection of exchange charges by national banks; Note from Joseph P. Tumulty, Secretary to the President, regarding examinations for entrance into the Naval Academy; Letter presents a question concerning the definition of "gold or lawful money" in the Currency Bill; Letter, August 5, 1913, approving a provision for the distribution of 40% of the surplus earnings among the banks according to their reserve balances; Letter of August 6, 1913, from a branch of the American Bankers Association, urging recognition of savings departments in National Banks; Letter, August 4, 1913, from a bank in Flint, Michigan, suggesting certain changes in the proposed currency legislation; Statement of opposition to the Glass-Owen bill under consideration by Congress during the summer of 1913; Letter, July 31, 1913, from the Solicitor of the Treasury, suggesting a few changes in the Currency Bill, having been requested to comment upon the measure; Telegram from Sol Wexler, August 6, 1913, requesting a draft of the bill as approved by the committee; Telegram, August 6, 1913, inquiring as to the possibility of making further changes in phraseology before the caucus meeting. William W. Flannagan sent the telegram; Letters touching upon the bill being prepared by Carter Glass; Copies of the amended banking and currency measure are requested; Letters from Robert D. Kent, President of the Merchants Bank of Passaic, New Jersey, suggesting changes in the tax on currency issue and questioning the possibility of acquiring emergency currency under the Aldrich-Vreeland Act; Letter from the president of the Craddock-Terry shoe concern in Lynchburg, Virginia, suggesting the amendment of the Aldrich-Vreeland Act, reducing the rate of interest; Letter, August 6, 1913, from H. Parker Willis to Carter Glass, stating that minor changes in wording were all that remained to accomplish in creating satisfac

[CrackSmokeRepublican]

Born of a Panic: Forming the Fed System (Orchestrated Jew Scams actually...--CSR)
August 1988

Writing in 1912 about the Aldrich plan for a National Reserve Association, Meyer Jacobstein, assistant professor of economics at the University of North Dakota, encouraged North Dakota's bankers, however unsuccessfully, to leave their rural prejudices behind and consider the greater good of the entire banking industry:

"The average country banker is always more or less suspicious of the city banker. As the Aldrich bill bears the name of an unpopular easterner, who is generally believed to be working in the interest of a group of eastern capitalists, it is not unnatural that North Dakota bankers should approach this proposed legislation with considerable timidity and suspicion. It will be well for the rural banker, however, to dispossess himself of this native prejudice and withhold judgment until he has made a careful and conscientious examination of the bill."

The banker was frantic. A large crowd was gathering outside his bank and the people were clamoring for their money. The banker called the Federal Reserve Bank in Minneapolis and warned that unless the "mad run" were stopped, he would soon be out of currency. With the bank nearly 200 miles from Minneapolis, a small plane was chartered and two Fed officials, along with a half-million dollars in small denomination bills, were quickly flown to the town.

Upon approaching the town the pilot guided the plane low over the main street to dramatize its arrival and then landed in a nearby field. From there the Fed officials were ceremoniously escorted into town by the police and the money was stacked along the bank's teller windows. The sight of all that money piled up inside the bank quelled the customers' fears and saved the bank from failing.

Although that story—from the Minneapolis Fed's 1953 annual report—is a latter-day account of a Depression-era bank rescue, it dramatically illustrates the two key responsibilities given to the Federal Reserve System 75 years ago: to serve as a lender-of-last-resort in times of crisis and to provide a national currency that would expand and contract as needed. Such was the primary vision of the framers of the Federal Reserve Act in the summer of 1913 as they planned the most radical banking reform in the country's history. Later that year, on Dec. 23, 1913, President Woodrow Wilson laid to rest years of political and practical debate when he signed the Federal Reserve Act into law. But far from being the end of a journey, Wilson's signature catapulted the Federal Reserve System into an economic adventure that would see it evolve from a passive institution designed to prevent banking panics, into what came to be known as a central bank—an active promoter of overall monetary stability and a multi-faceted player in the financial services industry.

But in order to understand the evolution of the Fed and the role it plays in today's economy, it is important to know why, and how, the Federal Reserve System was established. Essentially, the evolution of the Fed didn't begin on Dec. 23, 1913; rather, the Banking Panic of 1907, the most severe of four national banking panics that had occurred in the previous 34 years, was the primary inspiration for major banking reform. Abram P. Andrew, secretary of the National Monetary Commission—the committee assigned in 1908 to study the country's banking problems—collected nearly two hundred samples of various bank currencies created to stem the 1907 panic, and he provided a vivid description of the banks' quandary at that time:

    [The banks] were so singularly unrelated and independent of each other that the majority of them had simultaneously engaged in a life and death contest with each other, forgetting for the time being the solidarity of their mutual interest and their common responsibility to the community at large. Two-thirds of the banks of the country entered upon an internecine struggle to obtain cash, had ceased to extend credit to their customers, had suspended cash payments and were hoarding such money as they had. What was the result? ... Thousands of men were thrown out of work, thousands of firms went into bankruptcy, the trade of the country came to a standstill, and all this happened simply because the credit system of the country had ceased to operate.

The National Monetary Commission's list of banking problems was dominated by two flaws: a banking system prone to panics and a currency that was not responsive to changes in demand. To combat those problems the Commission made an urgent plea for effective lending to banks (referred to as "rediscounting" in the Federal Reserve Act). Banks in the earlier part of the century needed the flexibility provided by rediscounting if they were to meet the demands of the economy and avoid banking panics. Other problems highlighted by the Commission were inadequate supervision of banks and an inefficient check collection system.

The editors of the Independent, a newspaper in Winona, Minn., had this to say about the Federal Reserve Act in the fall of 1913:

"A good deal of opposition to the bill arises from a dislike of change of any sort. The principles underlying the measure are generally approved by intelligent opinion. If details, which are the object of criticism, are found to be really imperfect, they can readily be changed by an amendment at the next session of Congress."

"[The Federal Reserve Act] is not perfect. There are here and there defects which will undoubtedly be remedied, but they are of minor importance and in no way detract from the achievement of establishing at last, after sixty years of argument and debate, a discount market in the United States, and the mobilization of banking reserves."
John Rich, first reserve agent for the Minneapolis Fed, in a January 1915 speech, two months after the Minneapolis Fed opened for business.

The Federal Reserve System, in part, developed as a response to those problems; and, even though legislators and bankers from 1908 to 1913 could agree on the problems, they had a hard time agreeing on the ultimate solution. The Federal Reserve Act was not the first proposal made for banking reform prior to 1913. An earlier plan that was the offshoot of the National Monetary Commission—the National Reserve Association—was politically doomed, in large part, because of its chief sponsor, Sen. Nelson W. Aldrich of Rhode Island. Aldrich was seen as the embodiment of the "eastern establishment"—the perception by southern and western states that the wealthy families and large corporations of the northeast ran the country. Hence, the National Reserve Association was derided as giving undue power to the banking industry of the northeast. Indeed, many country bankers, who would seemingly benefit from a Reserve Association controlled by the banking industry, also opposed Aldrich's plan because they believed his plan would mainly benefit northeast banks. Furthermore, with neither party controlling both Houses of Congress prior to 1912 and with the Republican Aldrich unable to muster complete bipartisan (or even partisan) support, his banker-oriented plan was politically unfeasible.

In 1912, with the election of a Democratic President, Woodrow Wilson, and a Democratic Senate, which gave the Democrats a majority in both Houses of Congress, the stage was set for passage of a comprehensive banking reform bill. The key players then turned to the other side of the political aisle, with Woodrow Wilson and Carter Glass, Democratic Representative of Virginia and chairman of the House Banking Committee, largely acknowledged as the driving forces behind the passage of the Federal Reserve Act. Glass had a plan in the works by the fall of 1912 and was conferring with Wilson before the president-elect was inaugurated. Wilson, who wasn't well-versed in the technicalities of banking reform, was strongly influenced by William Jennings Bryan's populist ideas, and he employed a little Bryan rhetoric of his own during his presidential campaign. (Bryan, a populist politician and frequent Democratic contender for president, became Wilson's secretary of state.) About a year before he was elected Wilson said, "The greatest monopoly in this country is the money supply," adding a couple months later that he would not accept "any plan which concentrates control in the hands of the banks."

The eventual Federal Reserve Act, which took shape by the fall of 1913, was similar to the earlier plan launched by Senator Aldrich, except, of course, that private banks were not given as much control. Also, another primary difference in the Federal Reserve Act was the provision that all nationally chartered banks must be members of the Federal Reserve System. Many private banks, obviously, were opposed to certain provisions of the Federal Reserve Act because they reduced the banks' influence.

Following the passage of the Federal Reserve Act, The New York Times' editors sulked: "[The Federal Reserve Act] reflects the rooted dislike and distrust of banks and bankers that has been for many years a great moving force in the Democratic Party ... The measure goes to the very extreme in establishing absolute political control over the business of banking." Likewise, for the most part, populist factions approved of the banking plan, and Carter Glass echoed their feelings when he rejoiced at its passage: "The thing which had been vainly discussed and intermittently attempted for 20 years had finally been accomplished!"

In the end, following years of political and philosophical disagreements (disagreements that existed through the years and continued to shape the structure of the Federal Reserve System), the preamble to the Federal Reserve Act addressed the practical problems facing the country's banking system:

    An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes.

The Federal Reserve Act provided for the establishment of up to 12 Federal Reserve Banks (district banks) to coordinate policy with a seven-member Federal Reserve Board in Washington. Over the years the titles and the length of term of the board members have changed, as have other details involving the Fed's structure. For example, the name of the Federal Reserve Board was changed to the Federal Reserve Board of Governors in the 1930s, and thereafter the members were referred to as governors. The current structure of the Federal Reserve System, then, includes members of the Board of Governors who are selected by the president and confirmed by the Senate for 14-year terms, staggered to expire every two years. The 14-year term was designed to encourage the board of governors to take a long-run view of the economy, as well as reduce the chance that all seven members of the board could be appointed under one administration. One member of the board is appointed to serve as chairman and another as vice chairman, to serve four-year terms.

The district banks are headed by a president (prior to the 1930s district banks were headed by two officials: an agent and a governor), who is selected by a board of directors. The board of directors consists of nine members—selected to represent various banking, business and public interests in the district—who share a responsibility to report to the district banks on economic conditions in the region. Six of the district board members are elected by member banks, with three representing stockholding banks; the other three, who are appointed by the Board of Governors, represent the general public. As noted earlier, all nationally chartered banks are required to be members of the Federal Reserve System, with state banks retaining an option to join.

The framers of the Federal Reserve Act in 1913 were not so smug as to assume they had concocted a perfect plan. As the last sentence of the Act states: "The right to amend, alter, or repeal this Act is hereby expressly reserved"—a reservation, it seems, that understates the challenge and uncertainty that faced the country in the early days of the Federal Reserve System. While the country had experience with national banking systems in the past, it had no experience to prepare itself for the Federal Reserve System. Indeed, an overlying theme of the Federal Reserve Act was the notion of uncertainty; many of the provisions of the Act were left to be specified at a later time (such language as "under the rules and regulations to be specified by the Federal Reserve Board," and "subject to review and determination of the Federal Reserve Board" exists in the Act). In a sense, the rules had to be developed as the game was learned—decisions were made as unprecedented situations arose. For example, while the Federal Reserve System was established to prevent such economic disasters as the Great Depression, Fed officials were seemingly unprepared to deal with such a severe economic slump, and the Fed was criticized as having failed in its mission. Nearly 60 years later, however, the Fed was largely credited with helping to stem the negative impacts of the October 1987 stock plunge. That idea of challenge—of addressing needs as they arise—was described in the 40th anniversary annual report of the Minneapolis Fed as "plowing uncharted field," an appropriate metaphor for the Minneapolis district.

Such ideas stress the notion of the Federal Reserve System as an adventure—evolving from a passive institution to an active player in the country's economy. Carter Glass obviously shared the same thoughts when he titled his book on the subject, An Adventure in Constructive Finance. Likewise, Woodrow Wilson, whose signature marked the beginning of 75 years of adventure, eloquently addressed the same idea:

    We shall deal with our economic system as it is and as it may be modified, not as it might be if we had a clean sheet of paper to write upon, and step by step we shall make it what it should be.

See also:
Carter Glass, A brief biography of the man who shaped the Federal Reserve Act
Interview with Carter Glass, The senator's views on banking and the Federal Reserve are updated by a modern interpretation
Minneapolis vs. St. Paul, Competition was intense between Minneapolis and St. Paul for the Ninth District Federal Reserve Bank
Central banking: then and now, speech by Richmond Fed president J. Alfred Broaddus Jr.
Perspectives on Federal Reserve Independence? A Changing Structure for Changing Times, 1976 Annual Report essay

http://www.minneapolisfed.org/publicati ... fm?id=3816

[CrackSmokeRepublican]

Paul Warburg's Crusade to Establish a Central Bank in the United States

Paul Warburg was an advocate for a central bank in the United States and was chosen by President Woodrow Wilson to serve as one of the first members of the Federal Reserve Board.
Michael A. Whitehouse
May 1989

Whitehouse is staff assistant in the Office of the Secretary at the Board of Governors in Washington, D.C. He has written and lectured extensively on the early history of the Federal Reserve System and U.S. banking.

In paying tribute recently to Henry Wallich, late member of the Federal Reserve Board of Governors, Bankers Magazine noted that Wallich was a successor, in more than one respect, to Paul Warburg. Both of these board members were emigrants from Germany—and from the higher circles of German and European finance. Warburg, a member of the first Federal Reserve Board, like Wallich, was a staunch advocate of sound finance. Both, having witnessed the strengths and weaknesses of the European banking system during economic debacles as younger men, brought their experience to the United States committed to putting those lessons to use.

It's been said that Governor Wallich's speeches and essays represent one of the best financial histories of our time. The same can certainly be said of Warburg's writings, speeches and testimony for the period after the turn of the century. His life's work constitutes perhaps the best history of the development of central banking in the United States and mirrors its controversies, struggles and the final accomplishment.

It's seems fitting then, in this 75th anniversary year of the Federal Reserve System, to look at the life of Warburg, one of the System's architects and staunchest proponents.
Warburg's Early Banking Experience

Paul Warburg was born in Hamburg in 1868. The offspring of a prominent German banking family, he had been trained in banking in the European financial capitals. After attending the university, at age 18 he began his career in London where for two years he worked for a banking and discounting firm, followed by a short stint with a London stockbroker. After that he moved to France and gained additional experience at the Russian bank for foreign trade, which had an agency in Paris. He then traveled to India, China and Japan before returning to Hamburg to become a partner in M.M. Warburg & Co., the family banking firm.

Warburg's father had fully expected that Paul would take charge of his family's banking business along with his brothers Aby and Max, but in 1895 Warburg married an American citizen, Nina Loeb, an accomplished violinist, and began to live part of the year in New York. Six years later, at age 34, he left Germany, took up permanent residency in the United States, and accepted a position as a partner at his father-in-law's firm, Kuhn, Loeb and Co.—one of Wall Street's most important and respected banking houses. While adapting quickly to his new business, he still viewed the United States through the eyes of a European banker and was literally shocked at what he considered the primitive status of banking and financial affairs.

In the early 1900s, the nation was suffering from periodic liquidity crises. These crises or "panics" occurred because the banking system was fettered with a rigid amount of currency that could not meet unusual demands, and a system of reserves that pyramided up to New York. During these panics businessmen and farmers were unable to obtain credit to finance inventories and the production and transportation of crops. The crises spread across the country and converged upon Wall Street, resulting in plunges in the stock market, a large number of bank and business failures, and a further shortage of currency.

Such phenomena deeply affected Warburg, a small unassuming man whose most obvious physical characteristic was a large drooping mustache that gave him more the appearance of a tenor in a barbershop quartet than an important international banker.

While small in stature, however, he was hardly tame or timid in his professional assessment of conditions then prevailing in his new country. "The United States," he said, "is at about the same point that had been reached by Europe at the time of the Medicis." Witnessing first-hand a period of high interest rates — "where call money went up to 25 and 100 percent," he felt compelled to "write an article on the subject then and there for [his] own benefit."

Warburg thought it a bit presumptuous to attempt to educate a country to which he was so new a resident, so when advised by an associate to put the paper aside, he did so and attended to duties at his firm. However, when the same conditions arose in the beginning of 1907, he could hold his tongue no longer, and he began to circulate his writings for the benefit of others as well.
The Panic of 1907

Early in 1907, New York Times Annual Financial Review published Warburg's first official reform plan, entitled "A Plan for a Modified Central Bank," in which he outlined remedies that he thought might avert panics, like the great one that would occur later that year. Furthermore, he identified what he saw as the "evils" of the system in the United States — the "decentralization of reserves and the immobilization of [commercial] paper." To remedy this, he advocated the development of an American discount market and a European-style commercial paper. This system was based partly on a concept known as the "real bills" doctrine, which maintained that the money supply should vary with the short-term "legitimate" needs of business and commerce. By allowing banks to borrow only against short-term loans, the real bills doctrine, in theory, provided liquidity through the discounting (or selling) of loans and at the same time restricted the ability of a central bank to expand the supply of money. Warburg also proposed the creation of a "central reserve" or central bank that would hold the reserve funds of member banks so that collective funds could be made available to a bank in need of liquidity. Both the discounting and reserve concept, he contended, would help make money and credit more elastic and keep interest rates stable.

The Panic of 1907 hit full stride in October. The crash was of such severity that it immediately helped focus public awareness on the problems with the monetary and banking system. Although the issue of a central bank was unpopular because of its connotations of powerful central authority, Congress was now forced to act. The Aldrich-Vreeland Act, passed by Congress in May 1908, provided for the issuance of emergency currency and created a bipartisan National Monetary Commission to study central banking and other alternatives for monetary and banking reform. Warburg would serve this committee and, through his efforts for the commission, achieve an influence on subsequent proposals for reform.
Warburg Meets Sen. Aldrich

Sen. Nelson Aldrich of Rhode Island, chairman of the Senate Finance Committee, was appointed head of the National Monetary Commission. He divided the commission into two groups: one would study the US banking system and compile a report, and the other, headed by the senator himself, would travel to Europe and study the central banking systems in London, Paris and Berlin.

Aldrich was a known advocate of the extant bond-backed currency arrangement, which provided that bank notes could only be issued by national banks on the basis of the amount of US government bonds that were held to back them. However, the 67-year-old Aldrich, who was considered the most influential figure in Congress on financial matters, was committed to exploring new ideas for reform. In 1908, he announced that he would not seek office again and instead would devote his full attention to the currency and banking question.

Meanwhile, Warburg began to enlarge his circle of professional contacts and have his voice heard throughout the country. However, the German banker still didn't have the ear of the man who mattered most — Aldrich.

Aldrich first met Warburg by chance when the senator was preparing for the European trip and visited Kuhn, Loeb and Co. to gather preliminary material about the German banking system. Following that meeting, the German native began writing to Aldrich outlining his proposals, but Aldrich was cool to Warburg's plan and deferred his correspondence to A. Piatt Andrew, a Harvard professor whom Aldrich had appointed official secretary of the National Monetary Commission. As new ideas on banking reform began to crystallize for the senator, Andrew brought the work of Warburg to the senator's attention again and soon Andrew was corresponding with Warburg on behalf of the senator. Warburg was asked to write a study on the "discounting of commercial bills" for the National Monetary Commission, and became an unofficial advisor to the group. However, the banker and the senator still were at loggerheads on the question of what shape the central bank should take in the United States, and on the issue of discounting commercial paper.

In his monograph, "The Discount System in Europe," Warburg declared that the effective utilization of the discount policy was one of the most impressive victories for central banks in Europe during the Panic of 1907. The only structure that is safe, he concluded, is one that provides for effective concentration of cash reserves and their freest use in case of need, enabling banks, when necessary, to turn into cash a maximum of their assets with a minimum disturbance to general conditions. He noted further that a central bank is able to guard the cash reserve of the country and accommodate nonreserve banks by accepting prime security, like bank-accepted bills.

Warburg, in the meantime, continued his campaign on other fronts. He had followed his first New York Times article with a speech at Columbia University on "American and European Banking Methods and Banking Legislation Compared," and privately published a new, more complete proposal for a US banking system, entitled "A Modified Plan for a Central Bank."

In May 1908, the New York Times gave his revised plan prominent coverage. Primarily, Warburg continued to emphasize that the United States must finally develop some sort of central bank system, giving the country an elastic currency based on modern commercial bills payable in gold: a system similar in principle, if not exactly alike in form, to those of the important European central banks. He believed that "no measure that bases currency on a long term basis like the Aldrich-Vreeland Emergency Currency bill, (which allowed banks in regional currency associations to use their aggregate bank balances as the basis for the issuance of currency) can be acceptable." Also, he stressed that issuing notes "must be centralized into a few organs, or if feasible, into one organ to ensure effective expansion and contraction of reserves." The tireless reformer further stated that no central bank could be effective that "vests the powers of a central bank in political officers alone. That power clearly defined, ought to be vested in political officers and businessmen combined, in a way that would render impossible any political or financial abuse." Any hasty decisions on the composition of the directors of a central bank, he said, could stand in the way of the creation of such an organization. Better that those practical and political questions could be worked out after careful consideration.
Warburg's Contribution

The idea of an "elastic currency," which would expand to meet the legitimate needs of business and commerce, was not new. In fact, Warburg himself claimed no originality for the idea, but through his writings, speeches and counsel to others he began to have a greater impact than anyone else. Warburg did, however, succeed in injecting two new ideas into the discussion: first, shifting of emphasis from the currency problem to the reserve problem; and second, advocacy of the principle of rediscounting a new kind of commercial paper.

These ideas were starting to be discussed more seriously throughout the country, and other individuals involved in the banking and currency reform movement began to take note. With both the building momentum of other banking reform advocacy groups and Aldrich's own exposure to the efficient and effective central banking system in Europe, the senator finally opened to these other ideas.

The debate on central banking reform was still in full swing several years after the 1907 Panic. Indeed, it began to heat up, with the American Bankers Association standing opposed to "any form of central bank yet suggested by legislators." Meanwhile, Warburg, Aldrich and several other prominent figures intensified their efforts and began to form an alliance that was to last over the coming crucial years of the banking reform movement.
Aldrich Reconsiders His Position

The European interviews of the National Monetary Commission had a profound influence upon Aldrich. He had a clear plan for reform when he returned from Europe, radically different from his original beliefs. The change in the senator's thinking was so drastic that Aldrich's biographer explained it as an epiphany, saying, "Aldrich was converted on the road to Damascus."

When Aldrich and the National Monetary Commission returned from Europe in the fall of 1908, Aldrich asked Warburg to present his own ideas and answer questions regarding the European interviews at a meeting at New York's Metropolitan Club.

After Warburg's Metropolitan Club testimony, Aldrich pulled the banker aside and told him that he liked his plan for reform but he was being too timid about it. Warburg was surprised to learn that Aldrich, who before his European travels had not favored centralization and had advocated a national currency backed by government bonds, had changed his thinking and envisioned a European-type central bank for the United States. While Warburg now warned the senator against attempts to establish a full-scale central bank in the European sense—believing it politically unrealistic— he was nonetheless encouraged.

A particular key feature of the European systems persuaded the senator to reconsider his thinking. According to commission member Sen. Theodore Burton, the concept of currency backed by commercial assets began to take hold in Aldrich's mind in London, and the interviews in Berlin finally convinced him. Commission Assistant George Reynolds concurred, noting that "the experience and practice of German bankers in meeting the needs of commerce in their country demonstrated to Aldrich the validity of the use of commercial assets as a basis for currency. The idea, formerly so obscure, came home to him in great force from its demonstration in a non-political, practical atmosphere."

While Aldrich's conversion was a welcome one to Warburg and other progressive reformers, the very concept of a European-style central bank was still an anathema to a great many bankers and politicians. Bankers wanted reform that would make the banking system more efficient and better coordinated but were fearful of government interference in the management of a central bank. While Reynolds, as president of the American Bankers Association, had traveled to Europe and had become an intimate of Aldrich, his association was not supportive of reform. Moreover, many politicians believed that the geographic size of the United States and its diverse business conditions warranted a different banking system than those existing in Europe. Complicating the matter further was the fact that any plan to which Aldrich attached himself was sure to be attacked by Democrats and others who believed the senator had only the interest of eastern businessmen and bankers in mind. Aldrich had close ties with J. P. Morgan and other important bankers, and his eldest daughter's marriage to John D. Rockefeller Jr. did not help to dispel this suspicion.
The Jekyll Island Expedition

One evening in early November 1910, Warburg and a small party of men from New York quietly boarded Sen. Aldrich's private railway car, ostensibly for a trip south to an exclusive hunting club on an island off the coast of Georgia.

In addition to Warburg and Aldrich, the others, all highly regarded in the New York banking community, were: Frank Vanderlip, president of National City Bank; Harry P. Davison, a J.P. Morgan partner; Benjamin Strong, vice president of Banker's Trust Co.; and A. Piatt Andrew, former secretary of the National Monetary Commission and now assistant secretary of the Treasury. The real purpose of this historic "duck hunt" was to formulate a plan for US banking and currency reform that Aldrich could present to Congress.

Even Warburg at first questioned the motives of this gathering, not knowing if he was included because the group knew what he preached and was interested in what he had to offer, or if he was to be involved as a conspirator in order to be muzzled. He soon saw that the Jekyll Island conference was pulled together because, as Warburg later wrote, Aldrich was "bewildered at all that he had absorbed abroad and he was faced with the difficult task of writing a highly technical bill while being harassed by the daily grind of his parliamentary duties."

The group was secluded on Jekyll Island for about 10 days. All the participants came to the conference with strong views on the subject and did not agree on the exact shape a US central bank should take. Vanderlip noted: "Of course we knew that what we simply had to have was a more elastic currency through a bank that would hold the reserves of all banks." But there were many other questions that needed to be answered. If it was to be a central bank, how was it to be owned: by the banks, by the government, or jointly? Should there be a number of institutions or only one? Should the rate of interest be the same for the whole nation, or would it be higher in a community that was expanding too fast and lower in another that was lagging? In what open market operations should the bank be engaged?

Warburg realized that he had not been able to persuade the senator that if a central banking organization was to be created, it had to be a modified scheme based on the European models. In fact, Warburg, "the best equipped man there in the academic sense," according to Vanderlip, "was so intense ... and apparently felt a little antagonism towards Aldrich," so that there were some moments of strain that had to be eased by the others. Aldrich had his mind set on a European-style central bank, "a model he seemed loath to abandon," according to Warburg, and the senator strongly believed that the proposed central bank should be kept out of politics. Warburg and the others felt that whatever the theoretical justification for such a central bank, American conditions would require some sort of compromise and that concessions should be made considering government influence and representation. Aldrich, yielding somewhat, allowed that the government should be represented on the board of directors and have full knowledge of the bank's affairs, but a majority of the directors were to be chosen, directly or indirectly, by the members of the association.

Warburg also didn't agree with Aldrich's position on note issuance, conditions of membership of state banks and trust companies, or on the need for a uniform discount rate. Aldrich insisted, however, that a central bank should maintain a uniform rate of discount throughout the United States. He thought such a measure politically wise because it would refute the charges that other "great financial centres" would attempt to establish favorable rates for themselves in different regions to the disadvantage of other localities in the country.

Eventually all of the individuals at the Jekyll Island conference had to modify their views on a central bank plan. Nonetheless, Aldrich got out of the conference just what he intended—a banking scheme that rested upon a consensus of opinion representing the best-informed bankers of this country.

The banking bill the group brought north, which came to be known as the "Aldrich Plan," called for the establishment of a central bank in Washington, to be named the "National Reserve Association," meaning a central reserve organization with an elastic note issue based on gold and commercial paper. The association was to have 15 branches at geographically strategic locations throughout the country. The bank was to serve as fiscal agent for the US government and, by mobilizing the reserves of its member banks, become a lender of last resort to the American banking system. The association as a whole was to serve as a bank of rediscount, that is, it was empowered to discount a second time commercial paper that members of the association had already discounted. By rediscounting, the association could issue new money that might stay in circulation so long as the paper for which it was issued was not redeemed.

No one person was responsible for the final draft bill that was written. It was a record of their composite views. Yet Vanderlip regarded Warburg as having made significant and important contributions to the final result: "As a philosophical student of banking he was first among us at that time." Warburg was satisfied that the Aldrich Plan was not a central bank in the European sense. "It was strictly a bankers' bank with branches under the control of separate directorates having supervision over the rediscount operations with member banks," he said.

Warburg viewed the result of the Jekyll Island meeting as pivotal: "The period during which nonpolitical thought held the leadership in the banking reform movement may be considered as having ended with this conference." Up until then, bank reform had been an educational campaign carried on by individuals and groups; but at that point, the movement assumed a national character. Warburg saw Senator Aldrich as being the standard-bearer of a political proposal for a central bank. Said Warburg: "From then on until the final passage of the Federal Reserve Act, the generalship was in the hands of political leaders, while the role of banking reformers was to aid the movement by educational campaigns and, at the same time, to do their utmost to prevent fundamental parts of the nonpolitical plan from being disfigured by concessions born of political expediency." Aldrich presented his draft plan to the public in January 1911. One year later, on Jan. 19, 1912, the National Monetary Commission presented its report and endorsed the Aldrich Plan.
The Final Campaign

Warburg playfully described himself as a "fanatic" for what he considered sound finance. He was also pragmatic and sensitive to political realities, however. Thus he tempered his approach to a central bank in the United States, and his campaign over the next several years reflected that position. When he saw the roadblocks that lay ahead with Aldrich attempting to sell his plan to a greater part of the country, Warburg began a formal educational campaign to assist. Warburg believed that "beyond doubt, unless public opinion all over the United States could be educated and mobilized, any sound banking reform plan was doomed to fail."

The National Board of Trade appointed Warburg the head of a seven-man committee to set up a national group to promote reform. The group was called The National Citizens League For the Promotion of Sound Banking. It accomplished much of what it set out to do: establishing effective organizations in 45 states, printing a vast amount of educational materials for the businessman and layman alike, and publishing essays in pamphlets and articles in newspapers. Warburg also continued to publish in important journals and lecture before influential groups, doing all he could to help promote sound banking principles and convince larger audiences of the urgency for reform.
The Final Plan — The Federal Reserve Act

Before the Aldrich Plan could be enacted into law, the Democrats won the White House and took control of the Congress in 1912. The Democratic position called for a divisional reserve bank system, with a number of reserve banks or central banking cities. Nevertheless, President Woodrow Wilson believed that the Aldrich Plan was "60-70 percent correct." As a result, the plan became the basis for constructing the Federal Reserve bill, which began to take shape in Congress with the presentation of a bill proposed by Sen. Robert Latham Owen in May 1913.

When the Aldrich bill was rejected and the Democrats began to rework the banking bill, the group of bankers that had worked so hard in support of the Aldrich Plan began to split apart, and many of those bankers refused to consider an alternative plan. Warburg was more conciliatory and remained in contact with prominent Democrats, including Carter Glass, chairman of the House banking committee, and H. Parker Willis, the committee expert, and continued to write and speak on the new legislation. Warburg's reserve and discounting concepts were embraced in the Federal Reserve plan, though the central bank gradually abandoned the emphasis on discounting in favor of open market operations as the major monetary policy tool. Nonetheless, his efforts in educating the country, bringing sound banking techniques to the forefront of debate, were of tremendous importance in final preparation and passage of the Federal Reserve Act.
Epilogue

Warburg's career didn't end with passage of the Federal Reserve Act. In a sense, the close of this chapter marked the beginning of his next important role as a central banker. He was to wield a tremendous influence on the development of the System he worked so hard to help establish. In spite of vehement opposition from many Democrats and populists, President Wilson asked Warburg to become a member of the first Federal Reserve Board.

It appears President Wilson made a wise decision. Once Warburg was appointed to the board, Secretary of the Treasury William McAdoo, who often clashed with Warburg over policy matters, explained Warburg's appointment this way: "It was thought that his technical knowledge in international finance would be useful. It was useful, in some respects it was invaluable." Benjamin Strong, governor of the Federal Reserve Bank of New York, went even further in his estimation of Warburg. Although Warburg was appointed as a member of the board (not as the chairman or vice chairman), Strong called Warburg "the real head of the board in Washington, so far as knowledge and ability goes."

But the fact that he was at all chosen to serve on the board seems to have been as much a surprise to the European-born banker as to those who took issue with his nomination. Indeed, he first declined the appointment because of the "rampant prejudice in this country against a Wall Street man," and balked at testifying before the Senate banking committee because other nominees had not been asked to do so. However, when World War I erupted in Europe, Warburg decided to waive all personal considerations "in deference to the president's urgent request and in view of the present urgency which render desirable the promptest organization of the Federal Reserve Board," and appeared before a largely antagonistic committee.

With Warburg before them, rather than take advantage of his vast knowledge in central banking to learn how the country would adapt to this new system, the senators chose instead to question the banker on Kuhn, Loeb and Co.'s "money trust" connections. Thus, one of the best opportunities for history to record Warburg's extemporaneous impressions on the final Glass-Owen Federal Reserve bill was lost. But when Warburg was questioned as to his motives for making the sacrifice — financial and otherwise — to become a member of the Federal Reserve Board, the nominee's answer was characteristically to the point:

"When President Wilson asked me [again] whether I would take this [on] and make the sacrifice ... I felt that I had no right to decline it; and I will be glad to make the sacrifice, because I think there is a wonderful opportunity for bringing a great piece of constructive work into successful operation, and it appeals to me to do that."

http://www.minneapolisfed.org/publicati ... fm?id=3815

[CrackSmokeRepublican]

HOW TO BE A UNITED STATES SENATOR - The Hiding Place

By Eustace Mullins

The CDL Report
A Publication of the New Christian Crusade Church
P.O. Box 426
Metairie, LA, 70004
Issue 131
August 1990

When one surveys the present crop of United States Senators, it is obvious that that body no longer provides the melodrama on Capitol Hill.  During the 1930s, the Senators, particularly those from the Southern states, outdid themselves in colorful language, plantation owner attire, complete with wide brimmed Panama hats, and a cold-blooded approach to political dominance which has not been seen since they vanished like the dinosaurs of old.  Today, we have such creatures as Senator Metzenbaum of Ohio, making $300,000 deals over his office phone, his colleague, Senator-Glenn, still reeling from the after effects of his trips through outer space, and, in the historic State of Virginia, Senator Warner, who parlayed his advantage of being born into a good family by marrying two of the wealthiest women in the United States.

In the 1930s, no one in the United States Senate more successfully wielded political power than Senator Harry Byrd, the senior Senator from Virginia.  His career on Capitol Hill remains the howto-do-it Bible for would-be politicians, even though no one today has either the temerity or the ruthlessness to follow in his footsteps.

From the very outset of his career, Harry Byrd knew where the power lay, and he went after it.  In reviewing his personal history, one finds few mistakes, despite flaws of personality which effectively prevented him from attaining the supreme prize, one which was often near his grasp, the office of President of the United States.

Although he was born into a distinguished political family, Harry Byrd was not even a Virgin ian.  He was born in Martinsburg, West Virginia, where his closest childhood friend was a little Jewish boy named Lewis Lichtenstein Strauss, of whom more later.  Byrd attained supreme political power in the State of Virginia by closely following the outstanding political career of the dominant figure of the twentieth century, Josef Stalin, Master of all the Russias.  Byrd realized that Stalin, after the strange death of Lenin, reaped the benefits of efforts made years earlier, when he had carefully stacked the membership of local Soviets across Russia with his personal henchmen, sworn to support him.

As the crow flies, it is but a short distance from Martinsburg, West Virginia to Washington.  However, Harry Byrd realized at an early age that the road to Washington lies through the state capitol of Virginia, Richmond.  That road, since the end of the Civil War, is known as the Carpetbagger Trail, because of the pervasive influence of alien infiltrators who came in the wake of the Federal troops, bribing their commanders to allow them to set up business in the devastated countryside.  Byrd's own career began shortly after one of the most brazen robberies ever to occur on the Carpetbagger Trail, in 1893, when control of the state legislature of Virginia was purchased openly, as at a cattle auction, by the state's political boss, Senator Thomas Martin.  Martin's war chest came from his activities as the lawyer for the Wall Street firms of J.P. Morgan and Kuhn, Loeb Co. of New York, both firms being active in the United States as the secret representatives of the House of Rothschild.  As the paid lackey of the Morgan, Schiff and Belmont railroad interests, the Chesapeake and Ohio Railroad, and the Norfolk and Western Railway, Martin was advanced funds from these Rothschild firms in 1893 to buy the controlling interest in the state legislature, by bribing nine key members of the Virginia body for the sum of one thousand dollars each.  His assistant in this bribery was the chief counsel for the Norfolk and Western, one William A. Glasgow Jr, who later had a town named after him to memorialize his brilliant achievements of bribery and corruption.

Martin's chief enforcer in controlling the votes of the state legislature was Senator Hal Flood, the grandfather of Harry Byrd, whose middle name, Flood, memorializes his mentor.  With such advantages of birth, young Harry Byrd left school at the age of fifteen.  He already had enough education to achieve what he planned to do with his life.  He might later say, as did Commodore Vanderbilt, "I seen my chances, and I took 'em."  Senator Martin died in 1919, having successfully consolidated absolute power in Virginia through his Martin machine.  It was the up and coming Harry Byrd who was to transform this political cabal into the even more successful Bird machine.  Byrd would rule without a single serious challenge in Virginia for more than fifty years.  The iron hand of the Byrd machine was oiled by whatever funds he needed to maintain his power.  He had continuing access to money for political control from the greatest carpetbaggers of them all, the House of Rothschild.  That access came through his childhood friend, Lewis Lichtenstein Strauss.  After an unpromising beginning as an itinerant shoe salesman, Strauss suddenly showed up in Washington during the First World War as a key member of the Wilson bureaucracy, also known as the Baruch-House bureaucracy.  His tribal connections allowed Strauss, with no previous experience, to take over the recently named U.S. Food Administration, as deputy to the "engineer", Herbert Hoover.  After being banned from dealing on the London Stock Exchange because of a notorious swindle, Herbert Hoover had promptly been recruited by the Rothschilds as just the man they had been looking for.  Like J.P. Morgan and many others, he became an undercover Rothschild agent, with such success that he was named a director of the family firm, Rio Tinto.  After successfully carrying out the Rothschild assignment of keeping the First World War going a full two years after the Germans begged for peace, by providing them with food and fuel through his mis-named "Belgian Relief Administration", Hoover was sent to the United States to become the Food Czar in the Baruch bureaucracy.  Strauss was the person you had to see if you wanted to do business with the U.S. Food Administration.

Because he performed his job well for his masters, Strauss was rewarded at the end of the war by being appointed a director of the powerful Rothschild banking house, Kuhn, Loeb Co.  Thus his longtime friend, Harry Byrd, now had a personal pipeline into the richest mother lode in modern history, the gold of the House of Rothschild.  With the Byrd machine in control of the state; the partners of Kuhn, Loeb Co. lost no time in becoming Virginia squires.  Freddie Warburg bought a huge estate at Middleburg, where he became famous for his lavish parties during the 1920s, while Lewis Strauss bought a vast property at Brandy Station, Virginia, a historical monument famed as the sight of the last cavalry charge in the United States.

After seizing the reins of power in Virginia from the fallen Senator Martin in 1919, Byrd's personal fortune mushroomed, while the state itself began to suffer from what was to be known during the next fifty years as "the Byrd blight".  His financial sacrifices while serving the nation brought Harry Byrd an immense empire of orchards, warehouses, banks, newspapers and stock holdings, while the personal income of most Virginians continued to steadily decline.  All of Byrd's holdings have been gained since he entered the Virginia Senate in 1915.  The Byrd millions historically were sweated from cheap labor, which explains why he deliberately converted vast areas of Virginia into regions of hopeless poverty, the famed Appalachian pockets of depression which remain essentially unchanged today.  At the same time, neighboring states, such as North Carolina, enjoyed unparalleled prosperity.  He and his minions in the Byrd machine fought off all efforts of the national government to intervene with relief programs.  Byrd refused to allow federal funds to be spent in Virginia because he was fearful of losing control.  The government poured billions of dollars into slums in Chicago and New York, while Byrd's victims continued to exist in hopeless poverty.

The Byrd machine was able to retain power for a half century because of the twin evils of poverty and ignorance.  He kept the people in poverty, while the Byrd-controlled press kept the people in ignorance of what was being done to them.  The party line was laid down by the newspapers personally owned by Byrd in Winchester and Harrisonburg.  A 1950 survey among professors of journalism ranked the Virginia press forty-ninth in the nation in its record of public service.  Other Virginia newspaper publishers aspired to the Byrd image, hoping to be accepted by the local squirearchy, while they cynically continued to print editorials denying that there was a "Byrd machine" in Virginia.  The machine's "Fifty Years of Shame" continued without any political opposition.

Following the example of Josef Stalin, Byrd put into place the most successful Soviet type of bureaucracy ever seen in the United States.  In each of the one hundred Virginia counties, every office was held by a succession of Byrd look alikes, elderly, whitehaired, hard-drinking men who carefully cultivated the voice modulations of a cotton headed keeper of the men's room at an exclusive Southern country club.  It was well known in the state that even the janitor in the county courthouse must be a reliable Byrd supporter, and willing to kick in with a suitable contribution to the Democratic Party when election time approached.

A key department in this state control was Byrd's invention of the Alcoholic Beverage Control Board.  In the ancient Byzantine Empire, the Emperor maintained a personal monopoly on the sale of all alcoholic beverages, using the profits to pay his enormous palace expenses.  Emperor Byrd used the liquor monopoly to finance the enormous costs of maintaining his political machine.  He had rammed the ABC law through the state legislature while he was Governor in 1933, in a typical Byrd plebiscite.  The statute was later found to have been copied word for word from the Soviet statute setting up the Soviet State Liquor Trust in Russia !  Today, the ABC Board still maintains a statewide network of Gestapo agents whose activities are vital to the health of the Byrd machine.  Despite Byrd's huge Socialist bureaucracy in Virginia, his Soviet-style liquor monopoly, and other Soviet style state trusts, he always claimed to be a political conservative and an avowed anti-Communist.  In the neighboring environs of the District of Columbia, free enterprise liquor stores offered longer hours, greater variety, and an average of twenty per cent less prices than Byrd's Soviet type state liquor stores.  Visitors returning from the District of Columbia frequently had their cars stopped and searched, as Byrd's deputies sought to seize "contraband", that is, bottles of liquor purchased in the District of Columbia which had not been charged Byrd's state tax.  A liquor distributor complained that it was very expensive to get on Byrd's purchase list, but worth it because of access to the Byrd monopoly stores.  ABC agents still maintain iron control over restaurants, convenience stores and other outlets which handle any type of alcohol.

For eight years, Byrd kept Senator Carter Glass in the Senate of the United States, although it was known that he was totally senile.  Socialist bureaucracies often maintain senile and disabled persons in government offices, because they are more easily controlled.  Most Virginians refused to speak out against the Byrd dictatorship, because retaliation was swift.  A Richmond physician who criticized the brutal murder of a patient in a state institution, was summoned on the following day for a compete examination of his tax returns.  "Deficiencies" were found, and he was compelled to pay a large sum in additional state taxes.

After cynically running Carter Glass for re-election to the Senate, Byrd lost no power when the old man finally died.  He chose the most subservient member of his entourage to take Glass' place.  Newsman at the National Press Club joked that Senator Robertson could not go to the men's room unless he asked Byrd for the key.  Robertson attained some status in the Millionaire's Club, as the Senate was known, when he was quickly appointed to the powerful Senate Banking Committee.  Now he was answerable to the international bankers, as Byrd had been throughout his political career.  Robertson's son, Pat, later became a national figure by operating his own television network.

Byrd himself had followed a devious road to the Senate, attaining his seat by appointment rather than by election.  The Federal Reserve bankers needed to ramrod some changes in the Federal Reserve Act through Congress.  The original Act had bore Carter Glass' name, and had been signed into law by another Virginian, Woodrow Wilson.  Now Byrd's mentors, the Rothchilds, decreed that Byrd be given a seat in the United States Senate in order to update the Federal Reserve Act without opposition.  However, this posed a problem, as the incumbent Senator from Virginia, Claude Swanson, refused to vacate.  The dilemma was solved by having Franklin D. Roosevelt appoint Swanson to his Cabinet.  Byrd then took his Senate seat, and the changes to the Federal Reserve Act were passed without discussion.

Indeed none of the Senators had any idea how the Federal Reserve System worked what the changes portended.  To avoid any Senate discussion, Byrd quickly obtained pro forma approval, and the Federal Reserve Act was amended.

Meanwhile, Byrd's childhood friend, Lewis Lichtenstein Strauss, had used his position as partner in Kuhn, Loeb Co. to have himself appointed to a number of key government posts, including head of the Atomic Energy Commission.  Although lacking any military experience, he somehow became an Admiral along the way.  As the financier of the huge Industrial Rayon Corporation, an Ohio firm which produced most of the fibre for the entire U.S. tire industry, Strauss named the son of his old friend, Harry Byrd Jr., as director of this firm.  When Harry Byrd's failing health forced him to retire, it was Strauss who forced the reluctant son to take his place in the Senate.  It was at this point that a petulant voice was heard in a hotel lobby in Richmond, "You know I don't want to run !  Daddy's making me do it !"  To ensure that young Byrd would not lose heart and withdraw, Strauss appointed himself as his campaign chairman.  In the face of the Rothschild billions, all political opponents silently folded their tents, and young Byrd took his father's Senate seat, as though it were an hereditary post, to be handed down from father to son.  In his declining years, old Harry's personal fortune was declared to be $28,791,618.42, yet he had never had any employment in private business.

Despite his reputed anti-Communism, Byrd had received a personal telephone call from Bernard Baruch during the tense hearings on the appointment of Anna Rosenberg as Assistant Secretary of Defense during the Korean War.  She had been identified in testimony before the Senate Armed Services Committee as a Communist, which was not remarkable, because she had long been the Rockefeller empire's specialist in labor relations, and it was the Rockefellers who had dispatched Leon Trotsky from New York to bring about the successful Communist Revolution in Russia in 1917.  As the senior figure on the Armed Services Committee, Byrd informed his colleagues that they must vote for the confirmation of Anna Rosenberg as Assistant Secretary of Defense.  So much for his anti-Communism.

Byrd's political machine remained invulnerable because of the allegiance of the statewide Masonic lodges, which had been in place in the state of Virginia for some two hundred years.  They controlled every business and every state and local office in each of the Virginia counties and hamlets.  No one could expect any advancement or preferment, or a bank loan, without approval of the local lodge.  The academic historian, Allen Moger, writes that "Byrd's power amazed observers .... it was explained by friends as an association of like-minded men." However, Moger prudently refrains from telling us the common denominator of these likeminded men, namely, that they were "the determined men of Masonry" to whom Disraeli referred in his writings.  Mager's supposedly definitive history, "Virginia: Bourbon to Byrd", Univ. of Va. Press 1958, does not even mention Masonry in the Index.  Despite Byrd's importance to the Federal Reserve bankers, the Federal Reserve System is mentioned by Moger only twice.

After Byrd's passing, one might suppose that the State of Virginia would move into a new era of political freedom, as is customary once a dictator vanishes.  However, this failed to happen, because the Byrd state bureaucracy continued to function solely in its own interest.  The people remained effectively shut out of their own government.  Byrd's son left the Democratic Party, supposedly because of its extreme leftwing composition, and was elected as an independent, but this had no effect on the Byrd legacy, the Soviet style bureaucracy in Virginia.  It has continued to operate with business as usual, with Jewish and black governors cynically elected by the insiders to protect their power.

The victory of Governor Wilder, hailed as the first black governor elected anywhere in the United States since the Reconstruction era, conveniently ignores the fact that for the Southern states, the Reconstruction Era has never ended.  Although the Federal troops were withdrawn in 1877, the state governments were left firmly in the hands of the carpetbaggers.  No others need apply for office.  Wilder's election was a sop to the growing discontent of blacks in Virginia, who realized they, like everyone else in the state, continued to be robbed by the rapacious Soviet bureaucracy.  It was not a revolution, despite the manipulated press acclaim to that effect.  On the contrary, it was more of the same -- business as usual -- and that business will continue, without relief for the hard-pressed citizens who survived fifty years of shame under Harry Byrd, only to find that the yoke is still firmly riveted around their necks.

http://www.yamaguchy.netfirms.com/78974 ... iding.html

[Wimpy]

Thanks again CSR!  These detailed snippets from the rather recent past further solidify my thoughts and knowledge.  What were once speculation and musings are now facts.

[CrackSmokeRepublican]

The Federal Reserve Cartel: The Eight Families

The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP Amoco and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths.  But their monopoly over the global economy does not end at the edge of the oil patch.

According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.[1]

So who then are the stockholders in these money center banks?

This information is guarded much more closely.  My queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on "national security" grounds.  This is rather ironic, since many of the bank's stockholders reside in Europe.

One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation – founded in 1853 and now owned by Bank of America.  A recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild.  Other directors included Daniel Davison of JP Morgan Chase, Richard Tucker of Exxon Mobil, Daniel Roberts of Citigroup and Marshall Schwartz of Morgan Stanley. [2]

J. W. McCallister, an oil industry insider with House of Saud connections, wrote in The Grim Reaper that information he acquired from Saudi bankers cited 80% ownership of the New York Federal Reserve Bank- by far the most powerful Fed branch- by just eight families, four of which reside in the US.  They are the Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.

CPA Thomas D. Schauf corroborates McCallister's claims, adding that ten banks control all twelve Federal Reserve Bank branches.  He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York.  Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed. [3]  The Schiffs are insiders at Kuhn Loeb.  The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century.

Eustace Mullins came to the same conclusions in his book The Secrets of the Federal Reserve, in which he displays charts connecting the Fed and its member banks to the families of Rothschild, Warburg, Rockefeller and the others. [4]

The control that these banking families exert over the global economy cannot be overstated and is quite intentionally shrouded in secrecy.  Their corporate media arm is quick to discredit any information exposing this private central banking cartel as "conspiracy theory".  Yet the facts remain.

The House of Morgan

The Federal Reserve Bank was born in 1913, the same year US banking scion J. Pierpont Morgan died and the Rockefeller Foundation was formed.  The House of Morgan presided over American finance from the corner of Wall Street and Broad, acting as quasi-US central bank since 1838, when George Peabody founded it in London.

Peabody was a business associate of the Rothschilds.  In 1952 Fed researcher Eustace Mullins put forth the supposition that the Morgans were nothing more than Rothschild agents.  Mullins wrote that the Rothschilds, "...preferred to operate anonymously in the US behind the facade of J.P. Morgan & Company". [5]

Author Gabriel Kolko stated, "Morgan's activities in 1895-1896 in selling US gold bonds in Europe were based on an alliance with the House of Rothschild." [6]

The Morgan financial octopus wrapped its tentacles quickly around the globe.  Morgan Grenfell operated in London.  Morgan et Ce ruled Paris.  The Rothschild's Lambert cousins set up Drexel & Company in Philadelphia.

The House of Morgan catered to the Astors, DuPonts, Guggenheims, Vanderbilts and Rockefellers.  It financed the launch of AT&T, General Motors, General Electric and DuPont.  Like the London-based Rothschild and Barings banks, Morgan became part of the power structure in many countries.

By 1890 the House of Morgan was lending to Egypt's central bank, financing Russian railroads, floating Brazilian provincial government bonds and funding Argentine public works projects.  A recession in 1893 enhanced Morgan's power.  That year Morgan saved the US government from a bank panic, forming a syndicate to prop up government reserves with a shipment of $62 million worth of Rothschild gold. [7]

Morgan was the driving force behind Western expansion in the US, financing and controlling West-bound railroads through voting trusts.  In 1879 Cornelius Vanderbilt's Morgan-financed New York Central Railroad gave preferential shipping rates to John D. Rockefeller's budding Standard Oil monopoly, cementing the Rockefeller/Morgan relationship.

The House of Morgan now fell under Rothschild and Rockefeller family control.  A New York Herald headline read, "Railroad Kings Form Gigantic Trust".  J. Pierpont Morgan, who once stated, "Competition is a sin", now opined gleefully, "Think of it.  All competing railroad traffic west of St. Louis placed in the control of about thirty men."[8]

Morgan and Edward Harriman's banker Kuhn Loeb held a monopoly over the railroads, while banking dynasties Lehman, Goldman Sachs and Lazard joined the Rockefellers in controlling the US industrial base. [9]

In 1903 Banker's Trust was set up by the Eight Families.  Benjamin Strong of Banker's Trust was the first Governor of the New York Federal Reserve Bank.  The 1913 creation of the Fed fused the power of the Eight Families to the military and diplomatic might of the US government.  If their overseas loans went unpaid, the oligarchs could now deploy US Marines to collect the debts.  Morgan, Chase and Citibank formed an international lending syndicate.

The House of Morgan was cozy with the British House of Windsor and the Italian House of Savoy.  The Kuhn Loebs, Warburgs, Lehmans, Lazards, Israel Moses Seifs and Goldman Sachs also had close ties to European royalty.  By 1895 Morgan controlled the flow of gold in and out of the US.  The first American wave of mergers was in its infancy and was being promoted by the bankers.  In 1897 there were sixty-nine industrial mergers.  By 1899 there were twelve-hundred.  In 1904 John Moody – founder of Moody's Investor Services – said it was impossible to talk of Rockefeller and Morgan interests as separate. [10]

Public distrust of the combine spread.  Many considered them traitors working for European old money.  Rockefeller's Standard Oil, Andrew Carnegie's US Steel and Edward Harriman's railroads were all financed by banker Jacob Schiff at Kuhn Loeb, who worked closely with the European Rothschilds.

Several Western states banned the bankers.  Populist preacher William Jennings Bryan was thrice the Democratic nominee for President from 1896 -1908.  The central theme of his anti-imperialist campaign was that America was falling into a trap of "financial servitude to British capital".  Teddy Roosevelt defeated Bryan in 1908, but was forced by this spreading populist wildfire to enact the Sherman Anti-Trust Act.  He then went after the Standard Oil Trust.

In 1912 the Pujo hearings were held, addressing concentration of power on Wall Street.  That same year Mrs. Edward Harriman sold her substantial shares in New York's Guaranty Trust Bank to J.P. Morgan, creating Morgan Guaranty Trust.  Judge Louis Brandeis convinced President Woodrow Wilson to call for an end to interlocking board directorates.  In 1914 the Clayton Anti-Trust Act was passed.

Jack Morgan – J. Pierpont's son and successor – responded by calling on Morgan clients Remington and Winchester to increase arms production.  He argued that the US needed to enter WWI.  Goaded by the Carnegie Foundation and other oligarchy fronts, Wilson accommodated.  As Charles Tansill wrote in America Goes to War, "Even before the clash of arms, the French firm of Rothschild Freres cabled to Morgan & Company in New York suggesting the flotation of a loan of $100 million, a substantial part of which was to be left in the US to pay for French purchases of American goods."

The House of Morgan financed half the US war effort, while receiving commissions for lining up contractors like GE, Du Pont, US Steel, Kennecott and ASARCO.  All were Morgan clients.  Morgan also financed the British Boer War in South Africa and the Franco-Prussian War.  The 1919 Paris Peace Conference was presided over by Morgan, which led both German and Allied reconstruction efforts. [11]

In the 1930's populism resurfaced in America after Goldman Sachs, Lehman Bank and others profited from the Crash of 1929. [12]  House Banking Committee Chairman Louis McFadden (D-NY) said of the Great Depression, "It was no accident.  It was a carefully contrived occurrence...The international bankers sought to bring about a condition of despair here so they might emerge as rulers of us all".

Sen. Gerald Nye (D-ND) chaired a munitions investigation in 1936.  Nye concluded that the House of Morgan had plunged the US into WWI to protect loans and create a booming arms industry.  Nye later produced a document titled The Next War, which cynically referred to "the old goddess of democracy trick", through which Japan could be used to lure the US into WWII.

In 1937 Interior Secretary Harold Ickes warned of the influence of "America's 60 Families".  Historian Ferdinand Lundberg later penned a book of the exact same title.  Supreme Court Justice William O. Douglas decried, "Morgan influence...the most pernicious one in industry and finance today."

Jack Morgan responded by nudging the US towards WWII.  Morgan had close relations with the Iwasaki and Dan families – Japan's two wealthiest clans – who have owned Mitsubishi and Mitsui, respectively, since the companies emerged from 17th Century shogunates.  When Japan invaded Manchuria, slaughtering Chinese peasants at Nanking, Morgan downplayed the incident.  Morgan also had close relations with Italian fascist Benito Mussolini, while German Nazi Dr. Hjalmer Schacht was a Morgan Bank liaison during WWII.  After the war Morgan representatives met with Schacht at the Bank of International Settlements (BIS) in Basel, Switzerland. [13]

http://scienceoftruth.wordpress.com/201 ... -families/


The Federal Reserve Cartel: Part II: The Freemason BUS & The House of Rothschild
June 8, 2011 — Dean Henderson

In 1789 Alexander Hamilton became the first Treasury Secretary of the United States.  Hamilton was one of many Founding Fathers who were Freemasons. He had close relations with the Rothschild family which owns the Bank of England and leads the European Freemason movement.  George Washington, Benjamin Franklin, John Jay, Ethan Allen, Samuel Adams, Patrick Henry, John Brown and Roger Sherman were all Masons.

Roger Livingston helped Sherman and Franklin write the Declaration of Independence. He gave George Washington his oaths of office while he was Grand Master of the New York Grand Lodge of Freemasons.  Washington himself was Grand Master of the Virginia Lodge.  Of the General Officers in the Revolutionary Army, thirty-three were Masons.  This was highly symbolic since 33rd Degree Masons become Illuminated. [1]

Populist founding fathers led by John Adams, Thomas Jefferson, James Madison and Thomas Paine- none of whom were Masons- wanted to completely severe ties with the British Crown, but were overruled by the Masonic faction led by Washington, Hamilton and Grand Master of the St. Andrews Lodge in Boston General Joseph Warren, who wanted to "defy Parliament but remain loyal to the Crown". St. Andrews Lodge was the hub of New World Masonry and began issuing Knights Templar Degrees in 1769. [2]

All US Masonic lodges are to this day warranted by the British Crown, whom they serve as a global intelligence and counterrevolutionary subversion network. Their most recent initiative is the Masonic Child Identification Program (CHIP). According to Wikipedia, the CHIP programs allow parents the opportunity to create a kit of identifying materials for their child, free of charge. The kit contains a fingerprint card, a physical description, a video, computer disk, or DVD of the child, a dental imprint, and a DNA sample.

The First Continental Congress convened in Philadelphia in 1774 under the Presidency of Peyton Randolph, who succeeded Washington as Grand Master of the Virginia Lodge.  The Second Continental Congress convened in 1775 under the Presidency of Freemason John Hancock.  Peyton's brother William succeeded him as Virginia Lodge Grand Master and became the leading proponent of centralization and federalism at the First Constitutional Convention in 1787.  The federalism at the heart of the US Constitution is identical to the federalism laid out in the Freemason's Anderson's Constitutions of 1723. William Randolph became the nation's first Attorney General and Secretary of State under George Washington. His family returned to England loyal to the Crown.  John Marshall, the nation's first Supreme Court Justice, was also a Mason. [3]

When Benjamin Franklin journeyed to France to seek financial help for American revolutionaries, his meetings took place at Rothschild banks.  He brokered arms sales via German Mason Baron von Steuben.  His Committees of Correspondence operated through Freemason channels and paralleled a British spy network.  In 1776 Franklin became de facto Ambassador to France.  In 1779 he became Grand Master of the French Neuf Soeurs (Nine Sisters) Lodge, to which John Paul Jones and Voltaire belonged.  Franklin was also a member of the more secretive Royal Lodge of Commanders of the Temple West of Carcasonne, whose members included Frederick Prince of Whales. While Franklin preached temperance in the US, he cavorted wildly with his Lodge brothers in Europe.  Franklin served as Postmaster General from the 1750's to 1775 – a role traditionally relegated to British spies. [4]

With Rothschild financing Alexander Hamilton founded two New York banks, including Bank of New York. [5]  He died in a gun battle with Aaron Burr, who founded Bank of Manhattan with Kuhn Loeb financing.  Hamilton exemplified the contempt which the Eight Families hold towards common people, once stating, "All communities divide themselves into the few and the many.  The first are the rich and the well born, the others the mass of the people...The people are turbulent and changing; they seldom judge and determine right.  Give therefore to the first class a distinct, permanent share of government.  They will check the unsteadiness of the second."[6]

Hamilton was only the first in a series of Eight Families cronies to hold the key position of Treasury Secretary.  In recent times Kennedy Treasury Secretary Douglas Dillon came from Dillon Read (now part of UBS Warburg). Nixon Treasury Secretaries David Kennedy and William Simon came from Continental Illinois Bank (now part of Bank of America) and Salomon Brothers (now part of Citigroup), respectively. Carter Treasury Secretary Michael Blumenthal came from Goldman Sachs, Reagan Treasury Secretary Donald Regan came from Merrill Lynch (now part of Bank of America), Bush Sr. Treasury Secretary Nicholas Brady came from Dillon Read (UBS Warburg) and both Clinton Treasury Secretary Robert Rubin and Bush Jr. Treasury Secretary Henry Paulson came from Goldman Sachs. Obama Treasury Secretary Tim Geithner worked at Kissinger Associates and the New York Fed.

Thomas Jefferson argued that the United States needed a publicly-owned central bank so that European monarchs and aristocrats could not use the printing of money to control the affairs of the new nation.  Jefferson extolled, "A country which expects to remain ignorant and free...expects that which has never been and that which will never be.  There is scarcely a King in a hundred who would not, if he could, follow the example of Pharaoh – get first all the people's money, then all their lands and then make them and their children servants forever...banking establishments are more dangerous than standing armies.  Already they have raised up a money aristocracy." Jefferson watched as the Euro-banking conspiracy to control the United States unfolded, weighing in, "Single acts of tyranny may be ascribed to the accidental opinion of the day, but a series of oppressions begun at a distinguished period, unalterable through every change of ministers, too plainly prove a deliberate, systematic plan of reducing us to slavery". [7[

But the Rothschild-sponsored Hamilton's arguments for a private US central bank carried the day.  In 1791 the Bank of the United States (BUS) was founded, with the Rothschilds as main owners.  The bank's charter was to run out in 1811.  Public opinion ran in favor of revoking the charter and replacing it with a Jeffersonian public central bank.  The debate was postponed as the nation was plunged by the Euro-bankers into the War of 1812.  Amidst a climate of fear and economic hardship, Hamilton's bank got its charter renewed in 1816.

 

Old Hickory, Honest Abe & Camelot

In 1828 Andrew Jackson took a run at the US Presidency.  Throughout his campaign he railed against the international bankers who controlled the BUS.  Jackson ranted, "You are a den of vipers.  I intend to expose you and by Eternal God I will rout you out.  If the people understood the rank injustices of our money and banking system there would be a revolution before morning."

Jackson won the election and revoked the bank's charter stating, "The Act seems to be predicated on an erroneous idea that the present shareholders have a prescriptive right to not only the favor, but the bounty of the government...for their benefit does this Act exclude the whole American people from competition in the purchase of this monopoly.  Present stockholders and those inheriting their rights as successors be established a privileged order, clothed both with great political power and enjoying immense pecuniary advantages from their connection with government.  Should its influence be concentrated under the operation of such an Act as this, in the hands of a self-elected directory whose interests are identified with those of the foreign stockholders, will there not be cause to tremble for the independence of our country in war...controlling our currency, receiving our public monies and holding thousands of our citizens independence, it would be more formidable and dangerous than the naval and military power of the enemy.  It is to be regretted that the rich and powerful too often bend the acts of government for selfish purposes...to make the rich richer and more powerful.  Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by acts of Congress.  I have done my duty to this country."[8]

Populism prevailed and Jackson was re-elected. In 1835 he was the target of an assassination attempt.  The gunman was Richard Lawrence, who confessed that he was, "in touch with the powers in Europe". [9]

Still, in 1836 Jackson refused to renew the BUS charter.  Under his watch the US national debt went to zero for the first and last time in our nation's history.  This angered the international bankers, whose primary income is derived from interest payments on debt.  BUS President Nicholas Biddle cut off funding to the US government in 1842, plunging the US into a depression.  Biddle was an agent for the Paris-based Jacob Rothschild. [10]

The Mexican War was simultaneously sprung on Jackson. A few years later the Civil War was unleashed, with London bankers backing the Union and French bankers backing the South. The Lehman family made a fortune smuggling arms to the south and cotton to the north.  By 1861 the US was $100 million in debt.  New President Abraham Lincoln snubbed the Euro-bankers again, issuing Lincoln Greenbacks to pay Union Army bills.

The Rothschild-controlled Times of London wrote, "If that mischievous policy, which had its origins in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off its debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed, or it will destroy every monarchy on the globe." [11]

The Euro-banker-written Hazard Circular was exposed and circulated throughout the country by angry populists.  It stated, "The great debt that capitalists will see is made out of the war and must be used to control the valve of money.  To accomplish this government bonds must be used as a banking basis.  We are now awaiting Secretary of Treasury Salmon Chase to make that recommendation.  It will not allow Greenbacks to circulate as money as we cannot control that.  We control bonds and through them banking issues".

The 1863 National Banking Act reinstated a private US central bank and Chase's war bonds were issued.  Lincoln was re-elected the next year, vowing to repeal the act after he took his January 1865 oaths of office.  Before he could act, he was assassinated at the Ford Theatre by John Wilkes Booth.  Booth had major connections to the international bankers.  His granddaughter wrote This One Mad Act, which details Booth's contact with "mysterious Europeans" just before the Lincoln assassination.

Following the Lincoln hit, Booth was whisked away by members of a secret society known as Knights of the Golden Circle (KGC).  KGC had close ties to the French Society of Seasons, which produced Karl Marx.  KGC had fomented much of the tension that caused the Civil War and President Lincoln had specifically targeted the group.  Booth was a KGC member and was connected through Confederate Secretary of State Judah Benjamin to the House of Rothschild.  Benjamin fled to England after the Civil War. [12]

Nearly a century after Lincoln was assassinated for issuing Greenbacks, President John F. Kennedy found himself in the Eight Families' crosshairs.  Kennedy had announced a crackdown on off-shore tax havens and proposed increases in tax rates on large oil and mining companies.  He supported eliminating tax loopholes which benefit the super-rich.  His economic policies were publicly attacked by Fortune magazine, the Wall Street Journal and both David and Nelson Rockefeller.  Even Kennedy's own Treasury Secretary Douglas Dillon, who came from the UBS Warburg-controlled Dillon Read investment bank, voiced opposition to the JFK proposals. [13]

Kennedy's fate was sealed in June 1963 when he authorized the issuance of more than $4 billion in United States Notes by his Treasury Department in an attempt to circumvent the high interest rate usury of the private Federal Reserve international banker crowd.  The wife of Lee Harvey Oswald, who was conveniently gunned down by Jack Ruby before Ruby himself was shot, told author A. J. Weberman in 1994, "The answer to the Kennedy assassination is with the Federal Reserve Bank.  Don't underestimate that.  It's wrong to blame it on Angleton and the CIA per se only.  This is only one finger on the same hand.  The people who supply the money are above the CIA". [14]

Fueled by incoming President Lyndon Johnson's immediate escalation of the Vietnam War, the US sank further into debt. Its citizens were terrorized into silence. If they could kill the President they could kill anyone.

The House of Rothschild

The Dutch House of Orange founded the Bank of Amsterdam in 1609 as the world's first central bank.  Prince William of Orange married into the English House of Windsor, taking King James II's daughter Mary as his bride.  The Orange Order Brotherhood, which recently fomented Northern Ireland Protestant violence, put William III on the English throne where he ruled both Holland and Britain.  In 1694 William III teamed up with the UK aristocracy to launch the private Bank of England.

The Old Lady of Threadneedle Street- as the Bank of England is known- is surrounded by thirty foot walls. Three floors beneath it the third largest stock of gold bullion in the world is stored. [15]

The Rothschilds and their inbred Eight Families partners gradually came to control the Bank of England. The daily London gold "fixing" occurred at the N. M. Rothschild Bank until 2004.  As Bank of England Deputy Governor George Blunden put it, "Fear is what makes the bank's powers so acceptable.  The bank is able to exert its influence when people are dependent on us and fear losing their privileges or when they are frightened."[16]

Mayer Amschel Rothschild sold the British government German Hessian mercenaries to fight against American Revolutionaries, diverting the proceeds to his brother Nathan in London, where N.M. (Nathan and Mayer) Rothschild & Sons was established.  Mayer was a serious student of Cabala and launched his fortune on money embezzled from William IX- royal administrator of the Hesse-Kassel region and a prominent Freemason.

Rothschild-controlled Barings bankrolled the Chinese opium and African slave trades. It financed the Louisiana Purchase.  When several states defaulted on its loans, Barings bribed Daniel Webster to make speeches stressing the virtues of loan repayment.  The states held their ground, so the House of Rothschild cut off the money spigot in 1842, plunging the US into a deep depression.  It was often said that the wealth of the Rothschilds depended on the bankruptcy of nations.  Mayer Amschel Rothschild once said, "I care not who controls a nation's political affairs, so long as I control her currency".

War didn't hurt the family fortune either.  The House of Rothschild financed the Prussian War, the Crimean War and the British attempt to seize the Suez Canal from the French.  Nathan Rothschild made a huge financial bet on Napoleon at the Battle of Waterloo, while also funding the Duke of Wellington's peninsular campaign against Napoleon. Both the Mexican War and the Civil War were goldmines for the family.

One Rothschild family biography mentions a London meeting where an "International Banking Syndicate" decided to pit the American North against the South as part of a "divide and conquer" strategy.  German Chancellor Otto von Bismarck once stated, "The division of the United States into federations of equal force was decided long before the Civil War.  These bankers were afraid that the United States...would upset their financial domination over the world.  The voice of the Rothschilds prevailed." Rothschild biographer Derek Wilson says the family was the official European banker to the US government and strong supporters of the Bank of the United States. [17]

Family biographer Niall Ferguson notes a "substantial and unexplained gap" in private Rothschild correspondence between 1854-1860. He says all copies of outgoing letters written by the London Rothschilds during this Civil War period "were destroyed at the orders of successive partners". [18]

French and British troops had, at the height of the Civil War, encircled the US.  The British sent 11,000 troops to Crown-controlled Canada, which gave safe harbor to Confederate agents.  France's Napoleon III installed Austrian Hapsburg family member Archduke Maximilian as his puppet emperor in Mexico, where French troops massed on the Texas border.  Only an 11th-hour deployment of two Russian warship fleets by US ally Czar Alexander II in 1863 saved the United States from re-colonization. [19]

That same year the Chicago Tribune blasted, "Belmont (August Belmont was a US Rothschild agent and had a Triple Crown horse race named in his honor) and the Rothschilds...who have been buying up Confederate war bonds."

Salmon Rothschild said of a deceased President Lincoln, "He rejects all forms of compromise.  He has the appearance of a peasant and can only tell barroom stories."  Baron Jacob Rothschild was equally flattering towards the US citizenry. He once commented to US Minister to Belgium Henry Sanford on the over half a million Americans who died during the Civil War, "When your patient is desperately sick, you try desperate measures, even to bloodletting."  Salmon and Jacob were merely carrying forth a family tradition.  A few generations earlier Mayer Amschel Rothschild bragged of his investment strategy, "When the streets of Paris are running in blood, I buy". [20]

Mayer Rothschild's sons were known as the Frankfurt Five.  The eldest – Amschel – ran the family's Frankfurt bank with his father, while Nathan ran London operations.  Youngest son Jacob set up shop in Paris, while Salomon ran the Vienna branch and Karl was off to Naples.  Author Frederick Morton estimates that by 1850 the Rothschilds were worth over $10 billion. [21] Some researchers believe that their fortune today exceeds $100 trillion.

The Warburgs, Kuhn Loebs, Goldman Sachs, Schiffs and Rothschilds have intermarried into one big happy banking family.  The Warburg family- which controls Deutsche Bank and BNP- tied up with the Rothschilds in 1814 in Hamburg, while Kuhn Loeb powerhouse Jacob Schiff shared quarters with Rothschilds in 1785.  Schiff immigrated to America in 1865. He joined forces with Abraham Kuhn and married Solomon Loeb's daughter.  Loeb and Kuhn married each others sisters and the Kuhn Loeb dynasty was consummated.  Felix Warburg married Jacob Schiff's daughter. Two Goldman daughters married two sons of the Sachs family, creating Goldman Sachs.  In 1806 Nathan Rothschild married the oldest daughter of Levi Barent Cohen, a leading financier in London. [22]  Thus, Merrill Lynch super-bull Abby Joseph Cohen and Clinton Secretary of Defense William Cohen are likely descended from Rothschilds.

Today the Rothschild's control a far-flung financial empire, which includes majority stakes in most world central banks.  The Edmond de Rothschild clan owns the Banque Privee SA in Lugano, Switzerland and the Rothschild Bank AG of Zurich.  The family of Jacob Lord Rothschild owns the powerful Rothschild Italia in Milan. They are founding members of the exclusive $10 trillion Club of the Isles – which controls corporate giants Royal Dutch Shell, Imperial Chemical Industries, Lloyds of London, Unilever, Barclays, Lonrho, Rio Tinto Zinc, BHP Billiton and Anglo American DeBeers. It dominates the world supply of petroleum, gold, diamonds, and many other vital raw materials. [23]

The Club of the Isles provides capital for George Soros' Quantum Fund NV – which made a killing in 1998-99 destroying the currencies of Thailand, Indonesia and Russia.  Soros was a major shareholder at George W. Bush's Harken Energy. Quantum NV operates from the Dutch island of Curacao, in the shadow of recently shuttered Royal Dutch/Shell and Exxon Mobil refineries.  Curacao was recently cited by an OECD Task Force on Money Laundering as a major drug money laundering nation.  The Club of Isles is led by the Rothschilds and includes Queen Elizabeth II and other wealthy European aristocrats and Black Nobility.  Fugitive Swiss financier and Mossad cutout Marc Rich, whose business interests were recently taken over by the Russian mafia Alfa Group, is also part of the Soros network. [24]

Ties to drug money are nothing new to the Rothschilds.  N. M. Rothschild & Sons was at the epicenter of the Bank of Credit & Commerce International (BCCI) scandal, but escaped the limelight when a warehouse full of documents conveniently burned to the ground around the time Rothschild-controlled Bank of England shut BCCI down.

Recent Rothschild endeavors include the backing of Russian oligarch Mikhail Khodorkovsky, control over Blackstone Group (see "...The 911 Short Selling Financial Scam": globalresearch.ca/index.php?context=va&aid=24687), and the takeover of giant Swiss oil trader Glencore.

Perhaps the largest repository for Rothschild wealth today is Rothschilds Continuation Holdings AG – a secretive Swiss-based bank holding company.  By the late 1990s scions of the Rothschild global empire were Barons Guy and Elie de Rothschild in France and Lord Jacob and Sir Evelyn Rothschild in Britain. [25]

Evelyn was chairman of the Economist and a director at DeBeers and IBM UK.

Jacob backed Arnold Schwarzenegger's California gubernatorial campaign. He took control of Khodorkovsky's YUKOS oil shares just before the Russian government arrested him. In 2010 Jacob joined Rupert Murdoch in a shale oil extraction partnership in Israel through Genie Energy – a subsidiary of IDT Corporation. [26]

Within months, Sarah Palin had hired former IDT executive Michael Glassner as her chief of staff. [27] Is Palin the Rothschild choice in 2012?

Next Week: Part III: Knights of the Roundtable & The Illuminati

[1] The Temple & the Lodge. Michael Bagent & Richard Leigh. Arcade Publishing. New York. 1989. p.259

[2] Ibid. p.219

[3] Ibid. p.253

[4] Ibid. p.233

[5] The Robot's Rebellion: The Story of the Spiritual Renaissance. David Icke. Gateway Books. Bath, UK. 1994. p.156

[6] Democracy for the Few. Michael Parenti. St. Martin's Press. New York. 1977. p.51

[7] Fourth Reich of the Rich. Des Griffin. Emissary Publications. Pasadena, CA. 1978. p.171

[8] Ibid. p.173

[9] Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids. Jim Marrs. HarperCollins Publishers. New York. 2000. p.68

[10] The Secrets of the Federal Reserve. Eustace Mullins. Bankers Research Institute. Staunton, VA. 1983. p.179

[11] Human Race Get Off Your Knees: The Lion Sleeps No More. David Icke. David Icke Books Ltd. Isle of Wight. UK. 2010. p.92

[12] Marrs. p.212

[13] Idid. p.139

[14] Ibid p.141

[15] Icke. The Robot's Rebellion. p.114

[16] Ibid. p.181

[17] Rothschild: The Wealth and Power of a Dynasty. Derek Wilson. Charles Schribner's Sons. New York. 1988. p.178

[18] The House of Rothschild. Niall Ferguson. Viking Press New York 1998 p.28

[19] Marrs. p.215

[20] Ibid

[21] "What You Didn't Know about Taxes and the Crown". Mark Owen. Paranoia. #41. Spring 2006. p.66

[22] Marrs. p.63

[23] "The Coming Fall of the House of Windsor". The New Federalist. 1994

[24] "The Secret Financial Network Behind 'Wizard' George Soros". William Engdahl. Executive Intelligence Review. 11-1-96

[25] Marrs. p.86

[26] "Murdoch, Rothschild Invest in Israeli Oil Shale". Jerusalem Post. November 22, 2010

[27] "Sarah Palin hires chief of staff for PAC", Huffington Post. February 2011

www.deanhenderson.wordpress.com

[CrackSmokeRepublican]

The Federal Reserve Cartel: Part IV: A Financial Parasite
June 19, 2011 — Dean Henderson

United World Federalists founder James Warburg's father was Paul Warburg. [1]

Colonel Ely Garrison was a close friend of both President Teddy Roosevelt and President Woodrow Wilson.  Garrison wrote in Roosevelt, Wilson and the Federal Reserve, "Paul Warburg was the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition.  The mastermind of both plans was Baron Alfred Rothschild of London."

The Aldrich Plan was hatched at a secret 1910 meeting at JP Morgan's private resort on Jekyl Island, SC between Rockefeller lieutenant Nelson Aldrich and Paul Warburg of the German Warburg banking dynasty.  Aldrich, a New York congressman, later married into the Rockefeller family.  His son Winthrop Aldrich chaired Chase Manhattan Bank.  While the bankers met, Colonel Edward House, another Rockefeller stooge and close confidant of President Woodrow Wilson, was busy convincing Wilson of the importance of a private central bank and the introduction of a national income tax. A member of House's staff was British MI6 Permindex insider General Julius Klein. [2]

Wilson didn't need much convincing, since he was beholden to copper magnate Cleveland Dodge, whose namesake Phelps Dodge became one of the biggest mining companies in the world.  Dodge bankrolled Wilson's political career. Wilson even wrote his inaugural speech on Dodge's yacht. [3]

Wilson was a classmate of both Dodge and Cyrus McCormick at Princeton.  Both were directors at Rockefeller's National City Bank (now Citigroup).  Wilson's main focus was on overcoming public distrust of the bankers, which New York City Mayor John Hylan echoed in 1911 when he argued, "The real menace to our republic is the invisible government which, like a giant octopus, sprawls its slimy length over our city, state and nation.  At the head is a small group of banking houses, generally referred to as the international bankers". [4]

But the Eight Families prevailed.  In 1913 the Federal Reserve Bank was born, with Paul Warburg its first Governor.  Four years later the US entered World War I, after a secret society known as the Black Hand assassinated Archduke Ferdinand and his Hapsburg wife.  The Archduke's friend Count Czerin later said, "A year before the war he informed me that the Masons had resolved upon his death."[5]

That same year, Bolsheviks overthrew the Hohehzollern monarchy in Russia with help from Max Warburg and Jacob Schiff, while the Balfour Declaration leading to the creation of Israel was penned to Zionist Second Lord Rothschild.

In the 1920's Baron Edmund de Rothschild founded the Palestine Economics Commission, while Kuhn Loeb's Manhattan offices helped Rothschild form a network to smuggle weapons to Zionist death squads bent on seizing Palestinian lands.  General Julius Klein oversaw the operation and headed the US Army Counterintelligence Corps, which later produced Henry Kissinger.  Klein diverted Marshall Plan aid to Europe to Zionist terror cells in Palestine after WWII, channeling the funds through the Sonneborn Institute, which was controlled by Baltimore chemical magnate Rudolph Sonneborn.  His wife Dorothy Schiff is related to the Warburgs. [6]

The Kuhn Loebs came to Manhattan with the Warburgs. At the same time the Bronfmans came to Canada as part of the Moses Montefiore Jewish Colonization Committee.  The Montefiores have carried out the dirty work of Genoese nobility since the 13th Century.  The di Spadaforas served that function for the Italian House of Savoy, which was bankrolled by the Israel Moses Seif family for which Israel is named.  Lord Harold Sebag Montefiore is current head of the Jerusalem Foundation, the Zionist wing of the Knights of St. John's Jerusalem.  The Bronfmans (the name means "liquorman" in Yiddish) tied up with Arnold Rothstein, a product of the Rothschild's dry goods empire, to found organized crime in New York City.  Rothstein was succeeded by Lucky Luciano, Meyer Lansky, Robert Vesco and Santos Trafficante.  The Bronfmans are intermarried with the Rothschilds, Loebs and Lamberts. [7]

The year 1917 also saw the 16th Amendment added to the US Constitution, levying a national income tax, though it was ratified by only two of the required 36 states.  The IRS is a private corporation registered in Delaware. [8]  Four years earlier the Rockefeller Foundation was launched, to shield family wealth from the new income tax provisions, while steering public opinion through social engineering.  One of its tentacles was the General Education Board.

In Occasional Letter #1 the Board states, "In our dreams we have limitless resources and the people yield themselves with perfect docility to our molding hands. The present education conventions fade from their minds and, unhampered by tradition, we will work our own good will upon a grateful and responsive rural folk.  We shall try not to make these people or any of their children into philosophers or men of learning or men of science...of whom we have ample supply."[9]

Though most Americans think of the Federal Reserve as a government institution, it is privately held by the Eight Families.  The Secret Service is employed, not by the Executive Branch, but by the Federal Reserve. [10]

An exchange between Sen. Edward Kennedy (D-MA) and Fed Chairman Paul Volcker at Senate hearings in 1982 is instructive.  Kennedy must have thought of his older brother John when he told Volcker that if he were before the committee as a member of US Treasury things would be much different.  Volcker, puffing on a cigar, responded cavalierly, "That's probably true. But I believe it was intentionally designed this way". [11]  Rep. Lee Hamilton (D-IN) put it to Volcker that, "People realize that what that board of yours does has a very profound impact on their pocketbooks, and yet it is a group of people basically inaccessible to them and unaccountable to them."

President Wilson spoke of, "a power so organized, so complete, so pervasive, that they had better not speak above their breaths when they speak in condemnation of it." Rep. Charles Lindberg (D-NY) was more blunt, railing against Wilson's Federal Reserve Act, which had cleverly been dubbed the "People's Bill".  Lindberg declared that the Act would, "...establish the most gigantic trust on earth...When the president signs this act, the invisible government by the money power will be legitimized.  The law will create inflation whenever the trusts want inflation.  From now on, depressions will be scientifically created.  The invisible government by the money power, proven to exist by the Money Trust Investigation, will be legalized.  The whole central bank concept was engineered by the very group it was supposed to strip of power". [12]

The Fed is made up of most every bank in the US, but the New York Federal Reserve Bank controls the Fed by virtue of its enormous capital resources.  The true center of power within the Fed is the Federal Open Market Committee (FOMC), on which only the NY Fed President holds a permanent voting seat.  The FOMC issues directives on monetary policy which are implemented from the 8th Floor of the NY Fed, a fortress modeled after the Bank of England. [13]

In the fifth sub-basement of the 14-story stone hulk lie 10,300 tons of mostly non-US gold, 1/3 of the world's gold reserves and by far the largest gold stock in the world. [14]

The world of money is increasingly computerized.  With the introduction by the Eight Families of complicated financial instruments like derivatives, options, puts and futures; the volume of inter-bank transactions took a quantum leap.  To handle this the fed built a superhighway eerily known as CHIPS (Clearing Interbank Payment System), which is based in New York and modeled after Morgan's Belgium-based Euro-Clear – also known as The Beast.

When the Fed was created five New York banks- Citibank, Chase, Chemical Bank, Manufacturers Hanover and Bankers Trust- held a 43% stake in the New York Fed.  By 1983 these same five banks owned 53% of the NY Fed.  By year 2000, the newly merged Citigroup, JP Morgan Chase and Deutsche Bank combines owned even bigger chunks, as did the European faction of the Eight Families. Collectively they own majority stock in every Fortune 500 corporation and do the bulk of stock and bond trading.  In 1955 the above five banks accounted for 15% of all stock trades.  By 1985 they were involved in 85% of all stock transactions. [15]

Still more powerful are the investment banks which bear the names of many of the Eight Families. In 1982, while Morgan bankers presided over negotiations between Britain and Argentina after the Falklands War, President Reagan pushed through SEC Rule 415, which helped consolidate securities underwriting in the hands of six large investment houses owned by the Eight Families: Goldman Sachs, Merrill Lynch, Morgan Stanley, Salomon Brothers, First Boston and Lehman Brothers.  These banks further consolidated their power via the merger mania of 1980s and 1990s.

American Express swallowed up both Lehman Brothers-Kuhn Loeb – which had merged in 1977 – and Shearson Lehman-Rhoades.  The Israel Moses Seif's Banca de la Svizzera Italiana bought a 7% stake in Lehman Brothers. [16]  Salomon Brothers nabbed Philbro from the South African Oppenheimer family, then bought Smith Barney. All three then became part of Traveler's Group, headed by Sandy Weill of the David-Weill family, which controls Lazard Freres through senior partner Michel David-Weill.  Citibank then bought Travelers to form Citigroup. S.G. Warburg, of which Oppenheimer's Chartered Consolidated owns a 9% stake, joined the old money Banque Paribas- which merged into Merrill Lynch in 1984.  Union Bank of Switzerland acquired Paine Webber, while Morgan Stanley ate up Dean Witter and purchased Discover credit card operations from Sears.

Kuhn Loeb-controlled First Boston merged with Credit Suisse, which had already absorbed White-Weld, to become CS First Boston- the major player in the dirty London Eurobond market.  Merrill Lynch – merged into Bank of America in 2008 – is the major player on the US side of this trade.  Swiss Banking Corporation merged with London's biggest investment house S.G. Warburg to create SBC Warburg, while Warburg became more intertwined with Merrill Lynch through their 1998 Mercury Assets tie up.  The Warburg's formed another venture with Union Bank of Switzerland, creating powerhouse UBS Warburg.  Deutsche Bank bought Banker's Trust and Alex Brown to briefly become the world's largest bank with $882 billion in assets.  With repeal of Glass-Steagal, the line between investment, commercial and private banking disappeared.

This handful of investment banks exerts an enormous amount of control over the global economy.  Their activities include advising Third World debt negotiations, handling mergers and breakups, creating companies to fill a perceived economic void through the launching of initial public stock offerings (IPOs), underwriting all stocks, underwriting all corporate and government bond issuance, and pulling the bandwagon down the road of privatization and globalization of the world economy.

A recent president of the World Bank was James Wolfensohn of Salomon Smith Barney.  Merrill Lynch had $435 billion in assets in 1994, before the merger frenzy had really even gotten under way.  The biggest commercial bank at the time, Citibank, could claim only $249 billion in assets.

In 1991 Merrill Lynch handled 26.8% of all global bank mergers.  Morgan Stanley did 16.8%, Goldman Sachs 16.3%, Lehman Brothers 16.1% and Credit Suisse First Boston 14.5%.  Morgan Stanley did $60 billion in corporate mergers in 1989.  By 2007, reflecting the repeal of Glass-Steagel, the top ten NMA advisers in order were: Goldman Sachs, Morgan Stanley, Citigroup, JP Morgan Chase, Lehman Brothers, Merrill Lynch, UBS Warburg, Credit Suisse, Deutsche Bank and Lazard. In the IPO stock underwriting field for 1991 the top four were Goldman Sachs, Merrill Lynch, Morgan Stanley and CS First Boston.  In the arena of global privatization for years 1985-1995, Goldman Sachs led the way doing $13.3 billion worth of deals.  UBS Warburg did $8.2 billion, BNP Paribas $6.8 billion, CS First Boston $4.9 billion and Paribas-owner Merrill Lynch $4.4 billion. [17]

In 2006 BNP Paribas bought the notorious Banca Nacionale de Lavoro (BNL), which led the charge in arming Saddam Hussein. According to Global Finance, it is now the world's largest bank with nearly $3 trillion in assets.

The leading US debt underwriters for the first nine months of 1995 bore the same familiar names.  Merrill Lynch underwrote $74.2 billion in the US debt markets, or 15.3% of the total.  Lehman Brothers handled $52.5 billion, Morgan Stanley $47.4 billion, Salomon Smith Barney $45.6 billion.  CS First Boston, Chase Manhattan and Goldman Sachs rounded out the top seven.  The top three municipal debt underwriters that year were Goldman Sachs, Merrill Lynch and UBS Paine Webber.  In the euro-market the top four underwriters in 1995 were UBS Warburg, Merrill Lynch, Deutsche Bank and Goldman Sachs. [18]  Deutsche Bank's Morgan Grenfell branch engineered the corporate takeover binge in Europe.

The dominant players in the oil futures markets at both the New York Mercantile Exchange and the London Petroleum Exchange are Morgan Stanley Dean Witter, Goldman Sachs (through its J. Aron & Company subsidiary), Citigroup (through its Philbro unit) and Deutsche Bank (through its Banker's Trust acquisition).  In 2002 Enron Online was auctioned off by a bankruptcy court to UBS Warburg for $0.  UBS was to share monopoly Enron Online profits with Lehman Brothers after the first two years of the deal. [19] With Lehman's 2008 demise, its new owner Barclays will get their cut.

Following the Lehman Brothers fiasco and the ensuing financial meltdown of 2008, the Four Horsemen of Banking got even bigger. For pennies on the dollar, JP Morgan Chase was handed Bear Stearns and Washington Mutual. Bank of America commandeered Merrill Lynch and Countrywide. And Wells Fargo seized control over the reeling #5 US bank Wachovia. Barclays got a sweetheart deal for the remains of Lehman Brothers.

Former House Banking Committee Chairman Wright Patman (D-TX), declared of Federal Reserve Eight Families owners, "The United States today has in effect two governments.  We are the duly constituted government.  Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution". [20]

Since the creation of the Federal Reserve, US debt (mostly owed to the Eight Families) has skyrocketed from $1 billion to nearly $14 trillion today.  This far surpasses the total of all Third World country debt combined, debt which is mostly owed to these same Eight Families, who own most all the world's central banks.

As Sen. Barry Goldwater (R-AZ) pointed out, "International bankers make money by extending credit to governments.  The greater the debt of the political state, the larger the interest returned to lenders.  The national banks of Europe are (also) owned and controlled by private interests.  We recognize in a hazy sort of way that the Rothschilds and the Warburgs of Europe and the houses of JP Morgan, Kuhn Loeb & Co., Schiff, Lehman and Rockefeller possess and control vast wealth.  How they acquire this vast financial power and employ it is a mystery to most of us."[21]

[1] Behold a Pale Horse. William Cooper. Light Technology Press. Sedona, AZ. 1991. p.81

[2] Dope Inc.: The Book that Drove Kissinger Crazy. The Editors of Executive Intelligence Review. Washington, DC. 1992.

[3] Democracy for the Few. Michael Parenti. St. Martin's Press. New York. 1977. p.67

[4] Descent into Slavery. Des Griffin. Emissary Publications. Pasadena 1991

[5] The Robot's Rebellion: The Story of the Spiritual Renaissance. David Icke. Gateway Books. Bath, UK. 1994. p.158

[6] The Editors of Executive Intelligence Review. p.504

[7] Ibid

[8] Ibid

[9] Ibid. p.77

[10] "Secrets of the Federal Reserve". Discovery Channel. January 2002

[11] The Confidence Game: How Un-Elected Central Bankers are Governing the Changed World Economy. Steven Solomon. Simon & Schuster. New York. 1995. p.26

[12] Icke. p.178

[13] Solomon. p.63

[14] Ibid. p.27

[15] The Corporate Reapers: The Book of Agribusiness. A.V. Krebs. Essential Books. Washington, DC. 1992. p.166

[16] The Editors of Executive Intelligence Review. p.79

[17] "Playing the Middle". Anita Raghavan and Bridget O'Brian. Wall Street Journal. 10-2-95

[18] Securities Data Corporation. 1995

[19] CNN Headline News. 1-11-02

[20] The Rockefeller File. Gary Allen. '76 Press. Seal Beach, CA. 1977. p.156

[21] Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids. Jim Marrs. HarperCollins Publishers. New York. 2000. p.77

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[CrackSmokeRepublican]

From Eustace Mullins:


Secrets of the Federal Reserve

by Eustace Mullins


Dedicated to two of the finest scholars of the twentieth century

GEORGE STIMPSON and EZRA POUND
who generously gave of their vast knowledge to a young writer to guide him in a field which he could not have managed alone.


            Table of Contents

            Forward

            Introduction - Jefferson's Opinion on the Constitutionality of the Bank

            Chapter - Jekyll Island

            Chapter - The Aldrich Plan

            Chapter - The Federal Reserve Act

            Chapter - The Federal Advisory Council

            Chapter - The House of Rothschild

            Chapter - The London Connection

            Chapter - The Hitler Connection

            Chapter - World War One

            Chapter - The Agricultural Depression

            Chapter - The Money Creators

            Chapter - Lord Montagu Norman

            Chapter - The Great Depression

            Chapter - The 1930's

            Chapter - Congressional Expose

            Addendum

            Appendix I

            Biographies

            Bibliography

            Index

            Frequently Asked Questions about the Federal Reserve System



---------

CHAPTER FOUR - The Federal Advisory Council

In steamrolling the Federal Reserve Act through the House of Representatives, Congressman Carter Glass declared on September 30, 1913 on the floor of the House that the interests of the public would be protected by an advisory council of bankers.

    "There can be nothing sinister about its transactions. Meeting with it at least four times a year will be a bankers' advisory council representing every regional reserve district in the system. How could we have exercised greater caution in safeguarding the public interest?"

Carter Glass neither then nor later gave any substantiation for his belief that a group of bankers would protect the interests of the public, nor is there any evidence in the history of the United States that any group of bankers has ever done so. In fact, the Federal Advisory Council proved to be the "administrative process" which Paul Warburg had inserted into the Federal Reserve Act to provide just the type of remote but unseen control over the System which he desired.

 

When he was asked by financial reporter C.W. Barron, just after the Federal Reserve Act was enacted into law by Congress, whether he approved of the bill as it was finally passed, Warburg replied,

   "Well, it hasn't got quite everything we want, but the lack can be adjusted later by administrative processes."

The council proved to be the ideal vehicle for Warburg's purposes, as it has functioned for seventy years in almost complete anonymity, its members and their business associations, unnoticed by the public.

Senator Robert Owen, chairman of the Senate Banking and Currency Committee, had said, as quoted in The New York Times, August 3, 1913 before passage of the act:

    "The Federal Reserve Act will furnish the bank and industrial and commercial interests with the discount of qualified commercial paper and thus stabilize our commercial and industrial life. The Federal Reserve banks are not intended as money making banks, but to serve a great national purpose of accommodating commerce and businessmen and banks, safeguard a fixed market for manufactured goods, for agricultural products and for labor.


    There is no reason why the banks should be in control of the Federal Reserve system. Stability will make our commerce expand healthfully in every direction."

Senator Owen's optimism was doomed by the domination of the Jekyll Island promoters over the initial composition of the Federal Reserve System.

 

Not only did the Morgan-Kuhn, Loeb alliance purchase the dominant control of stock in the Federal Reserve Bank of New York, with almost half of the shares owned by the five New York banks under their control,

            First National Bank

            National City Bank

            National Bank of Commerce

            Chase National Bank

            Hanover National Bank,

but they also persuaded President Woodrow Wilson to appoint one of the Jekyll Island group, Paul Warburg, to the Federal Reserve Board of Governors.

Each of the twelve Federal Reserve Banks was to elect a member of the Federal Advisory Council, which would meet with the Federal Reserve Board of Governors four times a year in Washington, in order to "advise" the Board on future monetary policy.

 

This seemed to assure absolute democracy, as each of the twelve "advisors", representing a different region of the United States, would be expected to speak up for the economic interests of his area, and each of the twelve members would have an equal vote. The theory may have been admirable in its concept, but the hard facts of economic life resulted in a quite different picture.

 

The president of a small bank in St. Louis or Cincinnati, sitting in conference with Paul Warburg and J.P. Morgan to "advise" them on monetary policy, would be unlikely to contradict two of the most powerful international financiers in the world, as a scribbled note from either one of them would be sufficient to plunge his little bank into bankruptcy. In fact, the small banks of the twelve Federal Reserve districts existed only as satellites of the big New York financial interests, and were completely at their mercy.

 

Martin Mayer, in The Bankers, points out that,

    "J.P. Morgan maintained correspondent relationships with many small banks all over the country." 30

30 Martin Mayer, The Bankers, Weybright and Talley, New York, 1974, p. 207

 

The big New York banks did not confine themselves to multi-million dollar deals with other great financial interests, but carried on many smaller and more routine dealings with their "correspondent" banks across the United States.

Apparently secure in their belief that their activities would never be exposed to the public, the Morgan-Kuhn, Loeb interests boldly selected the members of the Federal Advisory Council from their correspondent banks and from banks in which they owned stock. No one in the financial community seemed to notice, as nothing was said about it during seventy years of the Federal Reserve System's operation.

To avoid any suspicion that New York interests might control the Federal Advisory Council, its first president, elected in 1914 by the other members, was J.B. Morgan, president of the First National Bank of Chicago. Rand McNally Bankers Directory for 1914 lists the principal correspondents of the large banks. The principal correspondent bank of the Baker-Morgan controlled First National Bank of New York is listed as the First National Bank of Chicago.

 

The principal correspondent listed by the First National Bank of Chicago is the Bank of Manhattan in New York, controlled by Jacob Schiff and Paul Warburg of Kuhn, Loeb Company. James P. Morgan also was listed as a director of Equitable Life Insurance Company, also controlled by Morgan. However, the relationship between First National Bank of Chicago and these New York banks was even closer than these listings indicate.

On page 701 of The Growth of Chicago Banks by F. Cyril James, we find mention of

    "the First National Bank of Chicago's profitable connection with the Morgan interests. A goodwill ambassador was hastily sent to New York to invite George F. Baker to become a director of the First National Bank of Chicago." 31

    (J.B. Forgan to Ream, January 7, 1903.)

31 F. Cyril James, The Growth of Chicago Banks, Harper, New York, 1938

 

In effect, Baker and Morgan had personally chosen the first president of the Federal Advisory Council.

James P. Morgan (1852-1924) also shows the obligatory "London Connection" in the operation of the Federal Reserve System. Born in St. Andrew's, Scotland, he began his banking career there with the Royal Bank of Scotland, a correspondent of the Bank of England. He came to Canada for the Bank of British North America, worked for the Bank of Nova Scotia, which sent him to Chicago in the 1880's, and by 1900 he had become president of the First National Bank of Chicago. He served for six years as president of the Federal Advisory Council, and when he left the council, he was replaced by Frank O. Wetmore, who had also replaced him as president of the First National Bank of Chicago when Morgan was named chairman of the board.

Representing the New York Federal Reserve district on the first Federal Advisory Council was J.P. Morgan. He was named chairman of the Executive Committee. Thus, Paul Warburg and J.P. Morgan sat in conference at the meetings of the Federal Reserve Board during the first four years of its operation, surrounded by the other Governors and members of the council, who could hardly have been unaware that their futures would be guided by these two powerful bankers.

Another member of the Federal Advisory Council in 1914 was Levi L. Rue, representing the Philadelphia district. Rue was president of the Philadelphia National Bank. Rand McNally Bankers Directory of 1914 listed as principal correspondent of the First National Bank of New York, the Philadelphia National Bank. First National Bank of Chicago also listed Philadelphia National Bank as its principal correspondent in Philadelphia. The other members of the Federal Advisory Council included Daniel S. Wing, president of the First National Bank of Boston, W.S. Rowe, president of the First National Bank of Cincinnati, and C.T. Jaffray, president of the First National Bank of Minneapolis. These were all correspondent banks of the New York "big five" banks who controlled the money market in the United States.

Jaffray had an even closer connection with the Baker-Morgan interests. In 1908, to reinvest the large annual dividends from their First National Bank of New York stock, Baker and Morgan set up a holding company, First Security Corporation, which bought 500 shares of the First National Bank of Minneapolis. Thus Jaffray was little more than a wage-earning employee of Baker and Morgan, although he had been "selected" by stockholders of the Federal Reserve Bank of Minneapolis to represent their interests.

 

First Security Corporation also owned:

        50,000 shares of Chase National Bank

        5400 shares of National Bank of Commerce

        2500 shares of Bankers Trust

        928 shares of Liberty National Bank, the bank of which Henry P. Davison had been president when he was tapped to join the J.P. Morgan firm

        shares of New York Trust, Atlantic Trust and Brooklyn Trust

First Security concentrated on bank stocks which rapidly appreciated in value, and paid handsome annual dividends. In 1927, it earned five million dollars, but paid the shareholders eight million, taking the rest from its surplus.

Another member of the initial Federal Advisory Council was E.F. Swinney, president of the First National Bank of Kansas City. He was also a director of Southern Railway, and lists himself in Who's Who as "independent in politics".

Archibald Kains represented the San Francisco district on the Federal Advisory Council, although he maintained his office in New York, as president of the American Foreign Banking Corporation.

After serving as a Governor of the Federal Reserve Board from 1914-1918, Paul Warburg did not request another term. However, he was not ready to sever his connection with the Federal Reserve System which he had done so much to set up and put into operation. J.P. Morgan obligingly gave up his seat on the Federal Advisory Council, and for the next ten years, Paul Warburg continued to represent the Federal Reserve district of New York on the Council. He was vice president of the council 1922-25, and president 1926-27. Thus Warburg remained the dominant presence at Federal Reserve Board meetings throughout the 1920s, when the European central banks were planning the great contraction of credit which precipitated the Crash of 1929 and the Great Depression.

Although most of the Federal Advisory Council's "advice" to the Board of Governors has never been reported, on rare instances a few glimpses into its deliberations were afforded by brief items in The New York Times.

 

On November 21, 1916, The Times reported that the Federal Advisory Council had met in Washington for its quarterly conference.

    "There was talk about absorbing Europe's extension of credit to South America and other countries. Federal Reserve officials said that to maintain a position as one of the world's bankers the United States must expect to be called upon to render a good deal of the service performed largely by England in the past, in extending short term credits necessary in the production and transportation of goods of all kinds in the world's trade, and that acceptances in foreign trade require lower discounts and the freest and most reliable gold markets."

    (The First World War was at its zenith in 1916.)

In addition to his service on the Board of Governors and the Federal Advisory Council, Paul Warburg continued to address bankers' groups about the monetary policies they were expected to follow.

 

On October 22, 1915, he addressed the Twin City Bankers Club, St. Paul, Minnesota during which speech he stated,

    "It is to your interest to see the Federal Reserve banks as strong as they possibly can be. It staggers the imagination to think what the future may have in store for the development of American banking. With Europe's foremost powers limited to their own field, with the United States turned into a creditor nation for all the world, the boundaries of the field that lies open for us are determined only by our power of safe expansion. The scope of our banking future will ultimately be limited by the amount of gold that we can muster as the foundation of our banking and credit structure."

The composition of the Federal Reserve Board of Governors and the Federal Reserve Advisory Council, from its initial membership to the present day, shows links to the Jekyll Island conference and the London banking community which offers incontrovertible evidence, acceptable in any court of law, that there was a plan to gain control of the money and credit of the people of the United States, and to use it for the profit of the architects. Old Jekyll Island hands were,

        Frank Vanderlip, president of the National City Bank, which bought a large portion of the shares of the Federal Reserve Bank of New York in 1914

        Paul Warburg of Kuhn, Loeb Company

        Henry P. Davison, J.P. Morgan's right-hand man, and director of the First National Bank of New York and the National Bank of Commerce, which took a large portion of Federal Reserve Bank of New York stock

        Benjamin Strong, also known as a Morgan lieutenant, who served as Governor of the Federal Reserve Bank of New York during the 1920's.*

* "The Federal Advisory Council has great influence with the Federal Reserve Board. Conspicuously upon that council is J.P. Morgan, the leading member of J.P. Morgan Company and son of the late J.P. Morgan. Every one of the twelve members of the Advisory Council, as you well know, was educated in the same atmosphere. The Federal Reserve Act is not only a special privilege act but privileged persons have been placed in control and are its advisors in its administration. The Federal Reserve Board and the Federal Advisory Council administer the Federal Reserve System as its head authority, and no one of the lesser officials, even if they wished, would dare to cross swords with them."

(FROM: "Why Is Your Country At War?" by Charles Lindbergh, published in 1917). The above paragraph explains why Woodrow Wilson ordered government agents to seize and destroy the printing plates and copies of this book in the spring of 1918.

 

The selection of the regional members of the Federal Advisory Council from the list of bankers who worked most closely with the "big five" banks of New York, and who were their principal correspondent banks, proves that the much-touted "regional safeguarding of the public interest" by Carter Glass and other Washington proponents of the Federal Reserve Act was from its very inception a deliberate deception.

 

The fact that for seventy years this council was able to meet with the Federal Reserve Board of Governors and to "advise" the Governors on decisions of monetary policy which affected the daily lives of every person in the United States, without the public being aware of their existence, demonstrates that the planners of the central bank operation knew exactly how to achieve their objectives through "administrative processes" of which the public would remain ignorant.

 

The claim that the "advice" of the council members is not binding on the Governors or that it carries no weight is to claim that four times a year, twelve of the most influential bankers in the United States take time from their work to travel to Washington to meet with the Federal Reserve Board merely to drink coffee and exchange pleasantries. It is a claim which anyone familiar with the workings of the business community will find impossible to take seriously. In 1914, it was a four-day trip each way for bankers from the Far West to come to Washington for a council meeting with the Federal Reserve Board.

 

These men had extensive business interests which demanded their time. J.P. Morgan was a director of sixty-three corporations which held annual meetings, and could hardly be expected to travel to Washington to attend meetings of the Federal Reserve Board if his advice was to be considered of no importance.**

** The J.P. Morgan connection has remained predominant on the Federal Advisory Council. For the past several years, the prestigious Federal Reserve District No. 2, the New York District, has been represented on the Federal Advisory Council by Lewis Preston. Preston is Chairman of J.P. Morgan Company and also Chairman and Chief Executive Officer of Morgan Guaranty Trust, New York. An heir to the Baldwin fortune (a company controlled by Morgan), Preston married the heiress to the Pulitzer newspaper fortune. On February 26, 1929, The New York Times noted that a merger had been effected between National Bank of Commerce and Guaranty Trust, making them the largest bank in the United States, with a capital of two billion dollars. The merger was negotiated by Myron C. Taylor, president of U.S. Steel, a Morgan firm. The banks occupied adjoining buildings on Wall Street, and, as The New York Times noted, "The Guaranty Trust Company long has been known as one of 'the Morgan group' of banks." The National Bank of Commerce has also been identified with Morgan interests.

Go Back

 



CHAPTER FIVE - The House of Rothschild


The success of the Federal Reserve Conspiracy will raise many questions in the minds of readers who are unfamiliar with the history of the United States and finance capital. How could the Kuhn, Loeb-Morgan alliance, powerful though it might be, believe that it would be capable, first, of devising a plan which would bring the entire money and credit of the people of the United States into their hands, and second, of getting such a plan enacted into law?

The capability of devising and enacting the "National Reserve Plan", as the immediate result of the Jekyll Island expedition was called, was easily within the powers of the Kuhn, Loeb-Morgan alliance, according to the following from McClure's Magazine, August 1911, "The Seven Men" by John Moody:

    "Seven men in Wall Street now control a great share of the fundamental industry and resources of the United States. Three of the seven men, J.P. Morgan, James J. Hill, and George F. Baker, head of the First National Bank of New York belong to the so-called Morgan group; four of them, John D. and William Rockefeller, James Stillman, head of the National City Bank, and Jacob H. Schiff of the private banking firm of Kuhn, Loeb Company, to the so-called Standard Oil City Bank group... the central machine of capital extends its control over the United States... The process is not only economically logical; it is now practically automatic."32

32 John Moody, "The Seven Men", McClure's Magazine, August, 1911, p. 418

 

Thus we see that the 1910 plot to seize control of the money and credit of the people of the United States was planned by men who already controlled most of the country's resources. It seemed to John Moody "practically automatic" that they should continue with their operations.

What John Moody did not know, or did not tell his readers, was that the most powerful men in the United States were themselves answerable to another power, a foreign power, and a power which had been steadfastly seeking to extend its control over the young republic of the United States since its very inception. This power was the financial power of England, centered in the London Branch of the House of Rothschild. The fact was that in 1910, the United States was for all practical purposes being ruled from England, and so it is today.

 

The ten largest bank holding companies in the United States are firmly in the hands of certain banking houses, all of which have branches in London. They are

            J.P. Morgan Company

            Brown Brothers Harriman

            Warburg, Kuhn Loeb

            J. Henry Schroder

All of them maintain close relationships with the House of Rothschild, principally through the Rothschild control of international money markets through its manipulation of the price of gold. Each day, the world price of gold is set in the London office of N.M. Rothschild and Company.

Although these firms are ostensibly American firms, which merely maintain branches in London, the fact is that these banking houses actually take their direction from London. Their history is a fascinating one, and unknown to the American public, originating as it did in the international traffic in gold, slaves, diamonds, and other contraband. There are no moral considerations in any business decision made by these firms. They are interested solely in money and power.

Tourists today gape at the magnificent mansions of the very rich in Newport, Rhode Island, without realizing that not only do these "cottages" stand as a memorial to the baronial desires of our Victorian millionaires, but that their erection in Newport represented a nostalgic memorialization of the great American fortunes, which had their beginnings in Newport when it was the capital of the slave trade.

The slave trade for centuries had its headquarters in Venice, until Seventeenth Century Britain, the new master of the seas, used its control of the oceans to gain a monopoly. As the American colonies were settled, its fiercely independent people, most of whom did not want slaves, found to their surprise that slaves were being sent to our ports in great numbers.

For many years, Newport was the capital of this unsavory trade. William Ellery, the Collector of the Port of Newport, said in 1791:

    "...an Ethiopian cld as soon change his skin as a Newport merchant cld be induced to change so lucrative a trade.... for the slow profits of any manufactory."

John Quincy Adams remarked in his Diary, page 459,

    "Newport's former prosperity was chiefly owing to its extensive employment in the African slave trade."

The pre-eminence of J.P. Morgan and the Brown firm in American finance can be dated to the development of Baltimore as the nineteenth century capital of the slave trade. Both of these firms originated in Baltimore, opened branches in London, came under the aegis of the House of Rothschild, and returned to the United States to open branches in New York and to become the dominant power, not only in finance, but also in government.

 

In recent years, key posts such as Secretary of Defense have been held by Robert Lovett, partner of Brown Brothers Harriman, and Thomas S. Gates, partner of Drexel and Company, a J.P. Morgan subsidiary firm. The present Vice President, George Bush, is the son of Prescott Bush, a partner of Brown Brothers Harriman, for many years the senator from Connecticut, and the financial organizer of Columbia Broadcasting System of which he also was a director for many years.

To understand why these firms operate as they do, it is necessary to give a brief history of their origins. Few Americans know that J.P. Morgan Company began as George Peabody and Company. George Peabody (1795-1869) (image left), born at South Denvers, Massachusetts, began business in Georgetown, D.C. in 1814 as Peabody, Riggs and Company, dealing in wholesale dry goods, and in operating the Georgetown Slave Market. In 1815, to be closer to their source of supply, they moved to Baltimore, where they operated as Peabody and Riggs, from 1815 to 1835.

 

Peabody found himself increasingly involved with business originating from London, and in 1835, he established the firm of George Peabody and Company in London. He had excellent entree in London business through another Baltimore firm established in Liverpool, the Brown Brothers. Alexander Brown came to Baltimore in 1801, and established what is now known as the oldest banking house in the United States, still operating as Brown Brothers Harriman of New York; Brown, Shipley and Company of England; and Alex Brown and Son of Baltimore.

 

The behind the scenes power wielded by this firm is indicated by the fact that Sir Montagu Norman, Governor of the Bank of England for many years, was a partner of Brown, Shipley and Company.* Considered the single most influential banker in the world, Sir Montagu Norman was organizer of "informal talks" between heads of central banks in 1927, which led directly to the Great Stockmarket Crash of 1929.

* "There is an informal understanding that a director of Brown, Shipley should be on the Board of the Bank of England, and Norman was elected to it in 1907." Montagu Norman, Current Biography, 1940.

 

Soon after he arrived in London, George Peabody was surprised to be summoned to an audience with the gruff Baron Nathan Mayer Rothschild. Without mincing words, Rothschild revealed to Peabody, that much of the London aristocracy openly disliked Rothschild and refused his invitations. He proposed that Peabody, a man of modest means, be established as a lavish host whose entertainments would soon be the talk of London.

 

Rothschild would, of course, pay all the bills. Peabody accepted the offer, and soon became known as the most popular host in London. His annual Fourth of July dinner, celebrating American Independence, became extremely popular with the English aristocracy, many of whom, while drinking Peabody's wine, regaled each other with jokes about Rothschild's crudities and bad manners, without realizing that every drop they drank had been paid for by Rothschild.

It is hardly surprising that the most popular host in London would also become a very successful businessman, particularly with the House of Rothschild supporting him behind the scenes. Peabody often operated with a capital of 500,000 pounds on hand, and became very astute in his buying and selling on both sides of the Atlantic. His American agent was the Boston firm of Beebe, Morgan and Company, headed by Junius S. Morgan, father of John Pierpont Morgan.

 

Peabody, who never married, had no one to succeed him, and he was very favorably impressed by the tall, handsome Junius Morgan. He persuaded Morgan to join him in London as a partner in George Peabody and Company in 1854. In 1860, John Pierpont Morgan had been taken on as an apprentice by the firm of Duncan, Sherman in New York. He was not very attentive to business, and in 1864, Morgan's father was outraged when Duncan, Sherman refused to make his son a partner.

 

He promptly extended an arrangement whereby one of the chief employees of Duncan, Sherman, Charles H. Dabney, was persuaded to join John Pierpont Morgan in a new firm, Dabney, Morgan and Company. Bankers Magazine, December, 1864, noted that Peabody had withdrawn his account from Duncan, Sherman, and that other firms were expected to do so. The Peabody account, of course, went to Dabney, Morgan Company.

John Pierpont Morgan was born in 1837, during the first money panic in the United States. Significantly, it had been caused by the House of Rothschild, with whom Morgan was later to become associated.

In 1836, President Andrew Jackson (image right), infuriated by the tactics of the bankers who were attempting to persuade him to renew the charter of the Second Bank of the United States, said,

    "You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning."

Although Nicholas Biddle was President of the Bank of the United States, it was well known that Baron James de Rothschild of Paris was the principal investor in this central bank. Although Jackson had vetoed the renewal of the charter of the Bank of the United States, he probably was unaware that a few months earlier, in 1835, the House of Rothschild had cemented a relationship with the United States Government by superseding the firm of Baring as financial agent of the Department of State on January 1, 1835.

Henry Clews, the famous banker, in his book, Twenty-eight Years in Wall Street 33, states that the Panic of 1837 was engineered because the charter of the Second Bank of the United States had run out in 1836. Not only did President Jackson promptly withdraw government funds from the Second Bank of the United States, but he deposited these funds, $10 million, in state banks. The immediate result, Clews tells us, is that the country began to enjoy great prosperity.

 

This sudden flow of cash caused an immediate expansion of the national economy, and the government paid off the entire national debt, leaving a surplus of $50 million in the Treasury.


33 Henry Clews, Twenty-eight Years in Wall Street, Irving Company, New York, 1888, page 157


The European financiers had the answer to this situation. Clews further states,

    "The Panic of 1837 was aggravated by the Bank of England when it in one day threw out all the paper connected with the United States."

The Bank of England, of course, was synonymous with the name of Baron Nathan Mayer Rothschild. Why did the Bank of England in one day "throw out" all paper connected with the United States, that is, refuse to accept or discount any securities, bonds or other financial paper based in the United States?

 

The purpose of this action was to create an immediate financial panic in the United States, cause a complete contraction of credit, halt further issues of stocks and bonds, and ruin those seeking to turn United States securities into cash. In this atmosphere of financial panic, John Pierpont Morgan came into the world. His grandfather, Joseph Morgan, was a well to do farmer who owned 106 acres in Hartford, Connecticut. He later opened the City Hotel, and the Exchange Coffee Shop, and in 1819, was one of the founders of the Aetna Insurance Company.

George Peabody found that he had chosen well in selecting Junius S. Morgan as his successor. Morgan agreed to continue the sub rosa relationship with N.M. Rothschild Company, and soon expanded the firm's activities by shipping large quantities of railroad iron to the United States. It was Peabody iron which was the foundation for much of American railroad tracks from 1860 to 1890. In 1864, content to retire and leave his firm in the hands of Morgan, Peabody allowed the name to be changed to Junius S. Morgan Company. The Morgan firm then and since has always been directed from London. John Pierpont Morgan spent much of his time at his magnificent London mansion, Prince's Gate.

One of the high water marks of the successful Rothschild-Peabody Morgan business venture was the Panic of 1857. It had been twenty years since the Panic of 1837: its lessons had been forgotten by hordes of eager investors who were anxious to invest the profits of a developing America. It was time to fleece them again. The stock market operates like a wave washing up on the beach. It sweeps with it many minuscule creatures who derive all of their life support from the oxygen and water of the wave.

 

They coast along at the crest of the "Tide of Prosperity". Suddenly the wave, having reached the high water mark on the beach, recedes, leaving all of the creatures gasping on the sand. Another wave may come in time to save them, but in all likelihood it will not come as far, and some of the sea creatures are doomed. In the same manner, waves of prosperity, fed by newly created money, through an artificial contraction of credit, recedes, leaving those it had borne high to gasp and die without hope of salvation.

Corsair, the Life of J.P. Morgan, 34 tells us that the Panic of 1857 was caused by the collapse of the grain market and by the sudden collapse of Ohio Life and Trust, for a loss of five million dollars. With this collapse nine hundred other American companies failed. Significantly, one not only survived, but prospered from the crash. In Corsair, we learn that the Bank of England lent George Peabody and Company five million pounds during the panic of 1857.

 

Winkler, in Morgan the Magnificent 35 says that the Bank of England advanced Peabody one million pounds, an enormous sum at that time, and the equivalent of one hundred million dollars today, to save the firm. However, no other firm received such beneficence during this Panic. The reason is revealed by Matthew Josephson, in The Robber Barons.

 

He says on page 60:

    "For such qualities of conservatism and purity, George Peabody and Company, the old tree out of which the House of Morgan grew, was famous. In the panic of 1857, when depreciated securities had been thrown on the market by distressed investors in America, Peabody and the elder Morgan, being in possession of cash, had purchased such bonds as possessed real value freely, and then resold them at a large advance when sanity was restored." 36

34 Corsair, The Life of Morgan
35 John K. Winkler, Morgan the Magnificent, Vanguard, N.Y. 1930
36 Matthew Josephson, The Robber Barons, Harcourt Brace, N.Y. 1934

 

Thus, from a number of biographies of Morgan, the story can be pieced together. After the panic had been engineered, one firm came into the market with one million pounds in cash, purchased securities from distressed investors at panic prices, and later resold them at an enormous profit. That firm was the Morgan firm, and behind it was the clever maneuvering of Baron Nathan Mayer Rothschild.

 

The association remained secret from the most knowledgeable financial minds in London and New York, although Morgan occasionally appeared as the financial agent in a Rothschild operation. As the Morgan firm grew rapidly during the late nineteenth century, until it dominated the finances of the nation, many observers were puzzled that the Rothschilds seemed so little interested in profiting by investing in the rapidly advancing American economy.

 

John Moody notes, in The Masters of Capital, page 27,

     "The Rothschilds were content to remain a close ally of Morgan... as far as the American field was concerned.' 37

37 John Moody, The Masters of Capital

 

Secrecy was more profitable than valor.

The reason that the European Rothschilds preferred to operate anonymously in the United States behind the facade of J.P. Morgan and Company is explained by George Wheeler, in Pierpont Morgan and Friends, the Anatomy of a Myth, page 17:

    "But there were steps being taken even now to bring him out of the financial backwaters--and they were not being taken by Pierpont Morgan himself. The first suggestion of his name for a role in the recharging of the reserve originated with the London branch of the House of Rothschild, Belmont's employers." 38

Wheeler goes on to explain that a considerable anti-Rothschild movement had developed in Europe and the United States which focused on the banking activities of the Rothschild family. Even though they had a registered agent in the United States, August Schoenberg, who had changed his name to Belmont when he came to the United States as the representative of the Rothschilds in 1837, it was extremely advantageous to them to have an American representative who was not known as a Rothschild agent.

Although the London house of Junius S. Morgan and Company continued to be the dominant branch of the Morgan enterprises, with the death of the senior Morgan in 1890 in a carriage accident on the Riviera, John Pierpont Morgan became the head of the firm. After operating as the American representative of the London firm from 1864-1871 as Dabney Morgan Company, Morgan took on a new partner in 1871, Anthony Drexel of Philadelphia and operated as Drexel Morgan and Company until 1895. Drexel died in that year, and Morgan changed the name of the American branch to J.P. Morgan and Company.

LaRouche 39 tells us that on February 5, 1891, a secret association known as the Round Table Group was formed in London by Cecil Rhodes, his banker, Lord Rothschild, the Rothschild in-law, Lord Rosebery, and Lord Curzon. He states that in the United States the Round Table was represented by the Morgan group. Dr. Carrol Quigley refers to this group as "The British-American Secret Society" in Tragedy and Hope, stating that

    "The chief backbone of this organization grew up along the already existing financial cooperation running from the Morgan Bank in New York to a group of international financiers in London led by Lazard Brothers (in 1901)." 40

38 George Wheeler, Pierpont Morgan and Friends, the Anatomy of a Myth, Prentice Hall, N.J. 1973
39 Lyndon H. LaRouche, Jr., Dope, Inc., The New Benjamin Franklin House Publishing Company, N.Y. 1978
40 Dr. Carrol Quigley, Tragedy and Hope, Macmillan Co., N.Y.
 

William Guy Carr, in Pawns In The Game states that,

    "In 1899, J.P. Morgan and Drexel went to England to attend the International Bankers Convention. When they returned, J.P. Morgan had been appointed head representative of the Rothschild interests in the United States.

     

    As the result of the London Conference,

            J.P. Morgan and Company of New York

            Drexel and Company of Philadelphia

            Grenfell and Company of London

            Morgan Harjes Cie of Paris

            M.M. Warburg Company of Germany and America

            the House of Rothschild,

    were all affiliated." 41

Apparently unaware of the Peabody connection with the Rothschilds and the fact that the Morgans had always been affiliated with the House of Rothschild, Carr supposed that he had uncovered this relationship as of 1899, when in fact it went back to 1835.*
 

41 William Guy Carr, Pawns In The Game, privately printed, 1956, pg. 60

* July 30, 1930 McFadden Basis of Control of Economic Conditions. This control of the world business structure and of human happiness and progress by a small group is a matter of the most intense public interest. In analyzing it, we must begin with the internal group which centers itself around J.P. Morgan Company. Never before had there been such a powerful centralized control over finance, industrial production, credit and wages as is at this time vested in the Morgan group... The Morgan control of the Federal Reserve System is exercised through control of the management of the Federal Reserve Bank of New York.


After World War I, the Round Table became known as the Council on Foreign Relations in the United States, and the Royal Institute of International Affairs in London. The leading government officials of both England and the United States were chosen from its members. In the 1960s, as growing attention centered on the surreptitious governmental activities of the Council on Foreign Relations, subsidiary groups, known as the Trilateral Commission and the Bilderbergers, representing the identical financial interests, began operations, with the more important officials, such as Robert Roosa, being members of all three groups.

George F. Peabody History of the Great American Fortunes, Gustavus Myers, Mod. Lib. 537, notes that J.P. Morgan's father, Junius S. Morgan, had become a partner of George Peabody in the banking business.

    "When the Civil War came on, George Peabody and Company were appointed the financial representatives in England of the U.S. Government.... with this appointment their wealth suddenly began to pile up; where hitherto they had amassed the riches by stages not remarkably rapid, they now added many millions within a very few years."

According to writers of the day, the methods of George Peabody & Company were not only unreasonable but double treason, in that, while in the act of giving inside aid to the enemy, George Peabody & Company were the potentiaries of the U.S. Government and were being well paid to advance its interests.

 

"Springfield Republic", 1866:

    "For all who know anything on the subject know very well that Peabody and his partners gave us no faith and no help in our struggle for national existence. They participated to the fullest in the common English distrust of our cause and our success, and talked and acted for the South rather than for our nation. No individuals contributed so much to flooding our money markets and weakening financial confidence in our nationality than George Peabody & Company, and none made more money by the operation. All the money that Mr. Peabody is giving away so lavishly among our institutions of learning was gained by the speculations of his house in our misfortunes."

Also, New York Times, Oct. 31, 1866: Reconstruction Carpetbaggers Money Fund. Lightning over the Treasury Building, John Elson, Meador Publishing Co., Boston 41, pg. 53,

    "The Bank of England with its subsidiary banks in America (under the domination of J.P. Morgan) the Bank of France, and the Reichsbank of Germany, composed an interlocking and cooperative banking system, the main objective of which was the exploitation of the people."

According to William Guy Carr, in Pawns In The Game, 42 the initial meeting of these ex officio planners took place in Mayer Amschel Bauer's Goldsmith Shop in Frankfurt in 1773.

 

Bauer, who adopted the name of "Rothschild" or Red Shield, from the red shield which he hung over his door to advertise his business (the red shield today is the official coat of arms of the City of Frankfurt), (right image)

 

42 William Guy Carr, Pawns In The Game, privately printed, 1956

    "was only thirty years of age when he invited twelve other wealthy and influential men to meet him in Frankfurt. His purpose was to convince them that if they agreed to pool their resources they could then finance and control the World Revolutionary Movement and use it as their Manual of Action to win ultimate control of the wealth, natural resources, and manpower of the entire world. This agreement reached, Mayer unfolded his revolutionary plan. The project would be backed by all the power that could be purchased with their pooled resources.

     

    By clever manipulation of their combined wealth it would be possible to create such adverse economic conditions that the masses would be reduced to a state bordering on starvation by unemployment... Their paid propagandists would arouse feelings of hatred and revenge against the ruling classes by exposing all real and alleged cases of extravagance, licentious conduct, injustice, oppression, and persecution.

     

    They would also invent infamies to bring into disrepute others who might, if left alone, interfere with their overall plans... Rothschild turned to a manuscript and proceeded to read a carefully prepared plan of action.

        1. He argued that LAW was FORCE only in disguise. He reasoned it was logical to conclude 'By the laws of nature right lies in force.'

        2. Political freedom is an idea, not a fact. In order to usurp political power all that was necessary was to preach 'Liberalism' so that the electorate, for the sake of an idea, would yield some of their power and prerogatives which the plotters could then gather into their own hands.

        3. The speaker asserted that the Power of Gold had usurped the power of Liberal rulers.... He pointed out that it was immaterial to the success of his plan whether the established governments were destroyed by external or internal foes because the victor had to of necessity ask the aid of 'Capital' which 'Is entirely in our hands'.

        4. He argued that the use of any and all means to reach their final goal was justified on the grounds that the ruler who governed by the moral code was not a skilled politician because he left himself vulnerable and in an unstable position.

        5. He asserted that 'Our right lies in force. The word RIGHT is an abstract thought and proves nothing. I find a new RIGHT... to attack by the Right of the Strong, to reconstruct all existing institutions, and to become the sovereign Lord of all those who left to us the Rights to their powers by laying them down to us in their liberalism.'

        6. The power of our resources must remain invisible until the very moment when it has gained such strength that no cunning or force can undermine it. He went on to outline twenty-five points.

        Number 8 dealt with the use of alcoholic liquors, drugs, moral corruption, and all vice to systematically corrupt youth of all nations.

        9. They had the right to seize property by any means, and without hesitation, if by doing so they secured submission and sovereignty.

        10. We were the first to put the slogans Liberty, Equality, and Fraternity into the mouths of the masses, which set up a new aristocracy. The qualification for this aristocracy is WEALTH which is dependent on us.

        11. Wars should be directed so that the nations engaged on both sides should be further in our debt.

        12. Candidates for public office should be servile and obedient to our commands, so that they may readily be used.

        13. Propaganda -- their combined wealth would control all outlets of public information.

        14. Panics and financial depressions would ultimately result in World Government, a new order of one world government."

The Rothschild family has played a crucial role in international finance for two centuries, as Frederick Morton, in The Rothschilds writes:

    "For the last one hundred and fifty years the history of the House of Rothschild has been to an amazing extent the backstage history of Western Europe."38 (Preface)...

     

    Because of their success in making loans not to individuals, but to nations, they reaped huge profits, although as Morton writes, p. 36, "Someone once said that the wealth of Rothschild consists of the bankruptcy of nations." 43

E.C. Knuth writes, in The Empire of the City,

    "The fact that the House of Rothschild made its money in the great crashes of history and the great wars of history, the very periods when others lost their money, is beyond question."44

The Great Soviet Encyclopaedia, states,

    "The clearest example of a personal linkup (international directorates) on a Western European scale is the Rothschild family. The London and Paris branches of the Rothschilds are bound not just by family ties but also by personal link-ups in jointly controlled companies."45

The encyclopaedia further described these companies as international monopolies.

The sire of the family, Mayer Amschel Rothschild, established a small business as a coin dealer in Frankfurt in 1743. Although previously known as Bauer *, he advertised his profession by putting up a sign depicting an eagle on a red shield, an adaptation of the coat of arms of the City of Frankfurt, to which he added five golden arrows extending from the talons, signifying his five sons.

 

Because of this sign, he took the name "Rothschild" or "Red Shield". When the Elector of Hesse earned a fortune by renting Hessian mercenaries to the British to put down the rebellion in the American colonies, Rothschild was entrusted with this money to invest. He made an excellent profit both for himself and the Elector, and attracted other accounts. In 1785 he moved to a larger house, 148 Judengasse, a five story house known as "The Green Shield" which he shared with the Schiff family.

43 Frederick Morton, The Rothschilds, Fawcett Publishing Company, N.Y., 1961
44 E.C. Knuth, Empire of the City, p. 71
45 Great Soviet Encyclopaedia, Edition 3, 1973, Macmillan, London, Vol. 14, pg. 691

* "The original name of Rothschild was Bauer." p. 397, Henry Clews, Twenty-eight years in Wall Street.

The five sons established branches in the principal cities of Europe, the most successful being James in Paris and Nathan Mayer in London. Ignatius Balla in The Romance of the Rothschilds 46 tells us how the London Rothschild established his fortune. He went to Waterloo, where the fate of Europe hung in the balance, saw that Napoleon was losing the battle, and rushed back to Brussels.

 

At Ostend, he tried to hire a boat to England, but because of a raging storm, no one was willing to go out. Rothschild offered 500 francs, then 700, and finally 1,000 francs for a boat. One sailor said, "I will take you for 2000 francs; then at least my widow will have something if we are drowned." Despite the storm, they crossed the Channel.

The next morning, Rothschild was at his usual post in the London Exchange. Everyone noticed how pale and exhausted he looked. Suddenly, he started selling, dumping large quantities of securities. Panic immediately swept the Exchange. Rothschild is selling; he knows we have lost the Battle of Waterloo. Rothschild and all of his known agents continued to throw securities onto the market.

 

Balla says,

    "Nothing could arrest the disaster. At the same time he was quietly buying up all securities by means of secret agents whom no one knew. In a single day, he had gained nearly a million sterling, giving rise to the saying, 'The Allies won the Battle of Waterloo, but it was really Rothschild who won.'" *

In The Profits of War, Richard Lewinsohn says,

    "Rothschild's war profits from the Napoleonic Wars financed their later stock speculations. Under Metternich, Austria after long hesitation, finally agreed to accept financial direction from the House of Rothschild." 47

46 Ignatius Balla, The Romance of the Rothschilds, Everleigh Nash, London, 1913

* The New York Times, April 1, 1915 reported that in 1914, Baron Nathan Mayer de Rothschild went to court to suppress Ignatius Balla's book on the grounds that the Waterloo story about his grandfather was untrue and libelous. The court ruled that the story was true, dismissed Rothschild's suit, and ordered him to pay all costs. The New York Times noted in this story that "The total Rothschild wealth has been estimated at $2 billion." A previous story in The New York Times (May 27, 1905) noted that Baron Alphonse de Rothschild, head of the French house of Rothschild, possessed $60 million in American securities in his fortune, although the Rothschilds reputedly were not active in the American field. This explains why their agent, J.P. Morgan, had only $19 million in securities in his estate when he died in 1913, and securities handled by Morgan were actually owned by his employer, Rothschild."

47 Richard Lewinsohn, The Profits of War, E.P. Dutton, 1937

After the success of his Waterloo exploit, Nathan Mayer Rothschild gained control of the Bank of England through his near monopoly of "Consols" and other shares. Several "central" banks, or banks which had the power to issue currency, had been started in Europe: The Bank of Sweden, in 1656, which began to issue notes in 1661, the earliest being the Bank of Amsterdam, which financed Oliver Cromwell's seizure of power in England in 1649, ostensibly because of religious differences. Cromwell died in 1657 and the throne of England was re-established when Charles II was crowned in 1660.

 

He died in 1685. In 1689, the same group of bankers regained power in England by putting King William of Orange on the throne. He soon repaid his backers by ordering the British Treasury to borrow 1,250,000 pounds from these bankers. He also issued them a Royal Charter for the Bank of England, which permitted them to consolidate the National debt (which had just been created by this loan) and to secure payments of interest and principal by direct taxation of the people.

 

The Charter forbade private goldsmiths to store gold and to issue receipts, which gave the stockholders of the Bank of England a money monopoly. The goldsmiths also were required to store their gold in the Bank of England vaults. Not only had their privilege of issuing circulating medium been taken away by government decree, but their fortunes were now turned over to those who had supplanted them.*

In his "Cantos", 46; 27, Ezra Pound refers to the unique privileges which William Paterson advertised in his prospectus for the Charter of the Bank of England:

    "Said Paterson

    Hath benefit of interest on all the moneys which it, the bank, creates out of nothing."

The "nothing" which is referred to, of course, is the bookkeeping operation of the bank, which "creates" money by entering a notation that it has "lent" you one thousand dollars, money which did not exist until the bank made the entry.

By 1698, the British Treasury owed 16 million pounds sterling to the Bank of England. By 1815, principally due to the compounding of interest, the debt had risen to 885 million pounds sterling. Some of this increase was due to the wars which had flourished during that period, including the Napoleonic Wars and the wars which England had fought to retain its American Colony.

* NOTE: In the United States, after the stockholders of the Federal Reserve System had consolidated their power in 1934, our government also issued orders that private citizens could not store or hold gold.

William Paterson (1658-1719) himself benefited little from "the moneys which the bank creates out of nothing", as he withdrew, after a policy disagreement, from the Bank of England a year after it was founded. A later William Paterson became one of the framers of the United States Constitution, while the name lingers on, like the pernicious central bank itself.

Paterson had found himself unable to work with the Bank of England's stockholders. Many of them remained anonymous, but an early description of the Bank of England stated it was,

    "A society of about 1330 persons, including the King and Queen of England, who had 10,000 pounds of stock, the Duke of Leeds, Duke of Devonshire, Earl of Pembroke, and the Earl of Bradford."

Because of his success in his speculations, Baron Nathan Mayer de Rothschild, as he now called himself, reigned as the supreme financial power in London. He arrogantly exclaimed, during a party in his mansion,

    "I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man that controls Britain's money supply controls the British Empire, and I control the British money supply."

His brother James in Paris had also achieved dominance in French finance. In Baron Edmond de Rothschild, David Druck writes,

    "(James) Rothschild's wealth had reached the 600 million mark. Only one man in France possessed more. That was the King, whose wealth was 800 million. The aggregate wealth of all the bankers in France was 150 million less than that of James Rothschild. This naturally gave him untold powers, even to the extent of unseating governments whenever he chose to do so. It is well known, for example, that he overthrew the Cabinet of Prime Minister Thiers."48

The expansion of Germany under Bismarck was accompanied by his dependence on Samuel Bleichroder, Court Bankers of the Prussian Emperor, who had been known as an agent of the Rothschilds since 1828.

 

The later Chancellor of Germany, Dr. von Bethmann Hollweg, was the son of Moritz Bethmann of Frankfurt, who had intermarried with the Rothschilds. Emperor Wilhelm I also relied heavily on Bischoffsheim, Goldschmidt, and Sir Ernest Cassel of Frankfurt, who emigrated to England and became personal banker to the Prince of Wales, later Edward VII. Cassel's daughter married Lord Mountbatten, giving the family a direct relationship to the present British Crown.

Josephson 49 states that Philip Mountbatten was related through the Cassels to the Meyer Rothschilds of Frankfurt. Thus, the English royal House of Windsor has a direct family relationship to the Rothschilds. In 1901, when Queen Victoria's son, Edward, became King Edward VII, he re-established the Rothschild ties.

 

48 David Druck, Baron Edmond de Rothschild, (Privately printed), N.Y. 1850
49 E.M. Josephson, The Strange Death of Franklin D. Roosevelt, pg. 39, Chedney Press, N.Y. 1948

Paul Emden in Behind The Throne says,

    "Edward's preparation for his métier was quite different from that of his mother, hence he 'ruled' less than she did. Gratefully, he retained around him men who had been with him in the age of the building of the Baghdad Railway... there were added to the advisory staff Leopold and Alfred de Rothschild, various members of the Sassoon family, and above all his private financial advisor Sir Ernest Cassel." 50

The enormous fortune which Cassel made in a relatively short time gave him an immense power which he never misused. He amalgamated the firm of Vickers Sons with the Naval Construction Company and the Maxim-Nordenfeldt Guns and Ammunition Company, a fusion from which there arose the worldwide firm of Vickers Sons and Maxim. On an entirely different capacity from Cassel were businessmen like the Rothschilds. The firm was run on democratic principles, and the various partners all had to be members of the family. With great hospitality and in a princely manner they led the lives of grand seigneurs, and it was natural that Edward VII should find them congenial.

 

Thanks to their international family relationships and still more extended business connections, they knew the whole world, were well informed about everybody, and had reliable knowledge of matters which did not appear on the surface. This combination of finance and politics had been a trademark of the Rothschilds from the very beginning. The House of Rothschild always knew more than could be found in the papers and even more than could be read in the reports which arrived at the Foreign Office. In other countries also the relations of the Rothschilds extended behind the throne. Not until numerous diplomatic publications appeared in the years after the war did a wider public learn how strongly Alfred de Rothschild's hand affected the politics of Central Europe during the twenty years before the war (World War I)."

With the control of the money came the control of the news media. Kent Cooper, head of the Associated Press, writes in his autobiography, Barriers Down,

    "International bankers under the House of Rothschild acquired an interest in the three leading European agencies." 51

Thus the Rothschilds bought control of Reuters International News Agency, based in London, Havas of France, and Wolf in Germany, which controlled the dissemination of all news in Europe.

50 Paul Emden, Behind The Throne, Hoddard Stoughton, London, 1934
51 Kent Cooper, Barriers Down, pg. 21

In Inside Europe 52, John Gunther wrote in 1936 that any French prime minister, at the end of 1935, was a creature of the financial oligarchy, and that this financial oligarchy was dominated by twelve regents, of whom six were bankers, and were headed by Baron Edmond de Rothschild.

The iron grip of the "London Connection" on the media was exposed in a recent book by Ben J. Bagdikian The Media Monopoly, described as

    "A startling report on the 50 corporations that control what America sees, hears, reads".53

Bagdikian, who edited the nation's most influential magazine the Saturday Evening Post until the monopoly suddenly closed it down, reveals the interlocking directorates among the fifty corporations which control the news, but fails to trace them back to the five London banking houses which control them. He mentions that CBS interlocks with the Washington Post, Allied Chemical, Wells Fargo Bank, and others, but does not tell the reader that Brown Brothers Harriman controls CBS, or that the Eugene Meyer family (Lazard Freres) controls Allied Chemical and the Washington Post, and Kuhn Loeb Co. the Wells Fargo Bank. He shows the New York Times interlocked with Morgan Guaranty Trust, American Express, First Boston Corporation and others, but does not show how the banking interlocks.

 

He does not mention the Federal Reserve System in his entire book, which is conspicuous by its absence.

Bagdikian documents that the media monopoly is steadily closing down more newspapers and magazines. Washington D.C., with one paper, The Post, is unique among world capitols. London has eleven daily newspapers, Paris fourteen, Rome eighteen, Tokyo seventeen, and Moscow nine. He cites a study from the 1982 World Press Encyclopaedia that the United States is at the bottom of industrial nations in the number of daily newspapers sold per 1,000 population. Sweden leads the list with 572, the United States is at the bottom with 287.

 

There is universal distrust of the media by Americans, because of their notorious monopoly and bias. The media unanimously urge higher taxes on working people, more government spending, a welfare state with totalitarian powers, close relations with Russia, and a rabid denunciation of anyone who opposes Communism. This is the program of "the London Connection." It flaunts a maniacal racism, and has as its motto the dictum of its high priestess, Susan Sontag, that "The white race is the cancer of history."

 

Everyone should be against cancer. The media monopoly deals with its opponents in one of two ways; either frontal assault of libel which the average person cannot afford to litigate, or an iron curtain of silence, the standard treatment for any work which exposes its clandestine activities.

52 John Gunther, Inside Europe, 1936
53 Ben H. Bagdikian, The Media Monopoly, Beacon Press, Boston 1983

Although the Rothschild plan does not match any single political or economic movement since it was enunciated in 1773, vital parts of it can be discerned in all political revolution since that date. LaRouche 54 points out that the Round Tables sponsored Fabian Socialism in England, while backing the Nazi regime through a Round Table member in Germany, Dr. Hjalmar Schacht, and that they used the Nazi Government throughout World War II through Round Table member Admiral Canaris, while Allen Dulles ran a collaborating intelligence operation in Switzerland for the Allies.

54 Lyndon H. LaRouche, Jr., Dope, Inc., New Benjamin Franklin House Publishing Co., New York, 1978

Go Back to Secrets of The Federal Reserve

Go Back to Rothschild

 

 


CHAPTER SIX - The London Connection

    "So you see, my dear Coningsby, that the world is governed by very different personages from what is imagined by those who are not behind the scenes." 55

    --Disraeli, Prime Minister of England during Queen Victoria's reign.

In 1775, the colonists of America declared their independence from Great Britain, and subsequently won their freedom by the American Revolution. Although they achieved political freedom, financial independence proved to be a more difficult matter. In 1791, Alexander Hamilton, at the behest of European bankers, formed the first Bank of the United States, a central bank with much the same powers as the Bank of England. The foreign influences behind this bank, more than a century later, were able to get the Federal Reserve Act through Congress, giving them at last the central bank of issue for our economy.

 

Although the Federal Reserve Bank was neither Federal, being owned by private stockholders, nor a Reserve, because it was intended to create money, instead of to hold it in reserve, it did achieve enormous financial power, so much so that it has gradually superseded the popular elected government of the United States. Through the Federal Reserve System

[CrackSmokeRepublican]

Much of this was borrowed from Eustace Mullins but it has a few good items:

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THE FEDERAL RESERVE ACT

The end of the Civil War in 1865, ruined the Illuminati's chances to control our monetary system, as they did in most European countries. So, the Rothschilds modified their plan for financial takeover. Instead of tearing down from the top, they were going to start at the bottom to disrupt the foundation of our monetary system. The instrument of this destruction was a young immigrant by the name of Jacob Schiff.

The Schiff family traced their lineage back to the fourteenth century, and even claimed that King Solomon was an ancestor. Jacob Schiff was born in 1847, in Frankfurt, Germany. His father, Moses Schiff, a rabbi, was a successful stockbroker on the Frankfurt Stock Exchange. In 1865, he came to America, and in 1867, formed his own brokerage firm with Henry Budge and Leo Lehmann. After it failed, he went back to Germany, and became manager of the Deutsche Bank in Hamburg, where he met Moritz Warburg(1838-1910), and Abraham Kuhn, who had retired after helping to establish the firm of Kuhn & Loeb in New York.

Kuhn and Loeb were German Jews who had come to the United States in the late 1840's, and pooled their resources during the 1850's to start a store in Lafayette, Indiana, to serve settlers who were on their way to the West. They set up similar stores in Cincinnati and St. Louis. Later, they added pawn broking and money lending to their business pursuits. In 1867, they established themselves as a well-known banking firm.

In 1873, at the age of 26, Jacob Schiff, with the financial backing of the Rothschilds, bought into the Kuhn and Loeb partnership in New York City. He became a full partner in 1875. He became a millionaire by financing railroads, developing a proficiency at railroad management that enabled him to enter into a partnership with Edward Henry Harriman to create the greatest single railroad fortune in the world. He married Solomon Loeb's oldest daughter, Theresa, and eventually bought out Kuhn's interest. For all intents and purposes, he was the sole owner of what was now known as Kuhn, Loeb and Company. Sen. Robert L. Owen of Oklahoma indicated that Kuhn, Loeb and Company was a representative of the Rothschilds in the United States.

Although John Pierpont Morgan (l837-1913), the top American Rothschild representative, was the head of the American financial world, Schiff was rapidly becoming a major influence by distributing desirable European stock and bond issues during the Industrial Revolution. Besides Edward H. Harriman's railroad empire, he financed Standard Oil for John D. Rockefeller (1839-1937), and Andrew Carnegie's (1835-1919) steel empire. By the turn of the century, Schiff was firmly entrenched in the banking community, and ready to fulfill his role as the point man in the Illuminati's plan to control our economic system, weaken Christianity, create racial tension, and to recruit members to get them elected to Congress and appointed to various government agencies.

In 1636, Miles, John, and James Morgan landed in Massachusetts, leaving their father, William, to carry on the family business of harness-making in England. Joseph Morgan(J. P. Morgan's grandfather), successful in real estate and business, supported the Bank of the United States. Junius Spencer Morgan (J. P. Morgan's father), was a partner in the Boston banking firm of J. M. Beebe, Morgan, and Co.; and became a partner in London's George Peabody and Co., taking it over when Peabody died, becoming J. S. Morgan and Co.

John Pierpont Morgan, or as he was better known, J. P. Morgan, was born on April 17, 1837. He became his father's representative in New York in 1860. In 1862, he had his own firm, known as J. Pierpont Morgan and Co. In 1863, he liquidated, and became a partner with Charles H. Dabney(who represented George Peabody and Co.), and established a firm known as Dabney, Morgan and Co. He later teamed up with Anthony J. Drexel(son of the founder of the most influential banking house in Philadelphia), in a firm known as Drexel, Morgan and Co. Morgan also became a partner in Drexel and Co. in Philadelphia. In 1869, Morgan and Drexel met with the Rothschilds in London, and through the Northern Securities Corporation, began consolidating the Rothschild's power and influence in the United States. Morgan continued the partnership that began when his father acted as a joint agent for the Rothschilds and the U. S. government.

During the Civil War, J. P. Morgan had sold the Union Army defective carbine rifles, and it was this government money that helped build his Guaranty Trust Co. of New York. In 1880, he began financing and reorganizing the railroads. After his father died in 1890, and Drexel died in 1893, the Temporary National Economic Committee revealed that J. P. Morgan held only a 9.1% interest in his own firm. George Whitney owned 1.9%, and H. B. Davison held 1.2%, however, the Charles W. Steele Estate held 36.6%, and Thomas W. Lamont(whose son, Corliss Lament, was an active communist) had 34.2%. Researchers believe that the Illuminati controlled the company through these shares.

In 1901, Morgan bought out Andrew Carnegie's vast steel operation for $500,000,000 to merge the largest steel companies into one big company known as the United States Steel Corporation(in which, for a time, the Rockefellers were major stockholders).

A speech by Senator Norris which was printed in the Congressional Record of November 30, 1941, said: "J. P. Morgan, with the assistance and cooperation of a few of the interlocking corporations which reach all over the United States in their influence, controls every railroad in the United States. They control practically every public utility, they control literally thousands of corporations, they control all of the large insurance companies. Mr. President, we are gradually reaching a time, if we have not already reached that point, when the business of the country is controlled by men who can be named on the fingers of one hand, because those men control the money of the Nation, and that control is growing at a rapid rate."

The House of Morgan grew larger in 1959, when the Guaranty Trust Co. of New York merged with the J. P. Morgan and Co., to form the Morgan Guaranty Trust Co. They have four branch offices, and foreign offices in London, Paris, Brussels, Frankfurt, Rome, and Tokyo. The firm of Morgan, Stanley, and Co. is also under their control.

Paul Moritz Warburg(1868-1932), and his brother Felix(1871-1937), came to the United States from Frankfurt in 1902, buying into the partnership of Kuhn, Loeb and Co. with the financial backing of the Rothschilds. They had been trained at the family banking house, M. M. Warburg and Co.(run by their father Moritz M. Warburg, 1838-1910), a Rothschild-allied bank in Frankfurt, Hamburg, and Amsterdam, which had been founded in 1798 by their great-grandfather. Paul(said to be worth over $2.5 million when he died), married Nina Loeb, the daughter of Solomon Loeb(the younger sister of Schiff's wife); while Felix, in March, 1895, married Frieda Schiff, the daughter of Jacob Schiff.

Their brother Max(1867-1946), a major financier of the Russian Revolution (who in his capacity as Chief of Intelligence in Germany's Secret Service, helped Lenin cross Germany into Russia in a sealed train) and later Hitler, ran the Hamburg bank until 1938, when the Nazis took over. The Nazis, who didn't want the Jews running the banks, changed its name to Brinckmann, Wirtz and Co. After World War II, a cousin, Eric Warburg, returned to head it, and in 1970, its name was changed to M. M. Warburg, Brinckmann, Wirtz and Co.

Siegmund Warburg, Eric's brother, established the banking firm of S. G. Warburg and Co. in London, and by 1956, had taken over the Seligman Brothers' Bank.

The Warburgs are another good example of how the Illuminati controls both sides of a war. While Paul Warburg's firm of Kuhn, Loeb and Co.(who had five representatives in the U. S. Treasury Department) was in charge of Liberty Loans, which helped finance World War I for the United States, his brother Max financed Germany, through M. M. Warburg and Co.

Paul and Felix Warburg were men with a mission, sent here by the Rothschilds to lobby for the passing of a central banking law in Congress. Colonel Ely Garrison (the financial advisor to Presidents Theodore Roosevelt and Woodrow Wilson) wrote in his book Roosevelt, Wilson and the Federal Reserve Act: "Mr. Paul Warburg is the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition. The mastermind of both plans was Alfred Rothschild of London." Professor E. R. A. Seligman, head of the Economics Department of Columbia University, wrote in the preface of one of Warburg's essays on central banking: "The Federal Reserve Act is the work of Mr. (Paul) Warburg more than any other man in the country."

In 1903, Paul Warburg gave Schiff a memo describing the application of the European central banking system to America's monetary system. Schiff, in turn, gave it to James Stillman, President of the National City Bank in New York City. Warburg had graduated from the University of Hamburg in 1886, and studied English central banking methods, while working in a London brokerage house. In 1891, he studied French banking methods; and from 1892-93, traveled the world to study central banking applications. The bottom line, was that he was the foremost authority in the world on central banking. It is interesting to note, that the fifth plank in the 1848 Communist Manifesto had to do with central banking.

In 1906, Frank A. Vanderlip, of the National City Bank, convinced many of New York's banking establishment, that they needed a banker-controlled central bank, that could serve the nation's financial system. Up to that time, the House of Morgan had filled that role. Some of the people involved with Morgan were: Walter Burns, Clinton Dawkins, Edward Grenfell, Willard Straight, Thomas Lament, Dwight Morrow, Nelson Perkins, Russell Leffingwell, Elihu Root, John W. Davis, John Foster Dulles, S. Parker Gilbert, and Paul D. Cravath. The financial panics of 1873, 1884, 1893, 1907, and later 1920, were initiated by Morgan with the intent of pushing for a much stronger banking system.

On January 6, 1907, the New York Times published an article by Warburg, called "Defects and Needs of Our Banking System", after which he became the leading exponent of monetary reform. That same year, Jacob Schiff told the New York Chamber of Commerce, that "unless we have a Central Bank with adequate control of credit resources, this country is going to undergo the most severe and far reaching money panic in history." When Morgan initiated the economic panic in 1907, by circulating rumors that the Knickerbocker Bank and Trust Co. of America was going broke, there was a run on the banks, creating a financial crisis, which began to solidify support for a central banking system. During this panic, Warburg wrote an essay called "A Plan for a Modified Central Bank" which called for a Central Bank, in which 50% would be owned by the government, and 50% by the nation's banks. In a speech at Columbia University, he quoted Abraham Lincoln, who said in an 1860 Presidential campaign speech: "I believe in a United States Bank."

In 1908, Schiff laid out the final plans to seize the American monetary system. Colonel (an honorary title) Edward Mandell House(1858-1938), the son of British financier Thomas W. House, a Rothschild agent who made his fortune by supplying the south with supplies from France and England during the Civil War, was Schiff's chief representative and courier; and Bernard Baruch(1870-1965), whose stock market speculating made him a multi-millionaire by the early 1900's, and whose foreign and domestic policy expertise led Presidents from Wilson to Kennedy to seek his advice; were the two who were relied on heavily by Schiff to carry out his plans. Herbert Lehman was also a close aide to Schiff.

President Woodrow Wilson wrote about House (published in The Intimate Papers of Col. House): "Mr. House is my second personality. He is my independent self. His thoughts and mine are one. If I were in his place, I would do just as he suggested...If anyone thinks he is reflecting my opinion, by whatever action he takes, they are welcome to the conclusion." George Sylvester Viereck wrote in The Strangest Friendship in History: Woodrow Wilson and Colonel House: "When the Federal Reserve legislation at last assumed definite shape, House was the intermediary between the White House and the financiers." Schiff, who was known as the "unseen guardian angel" of the Federal Reserve Act, said that the U. S. Constitution was the product of 18th century minds, was outdated, and should be "scrapped and rewritten."

In 1908, Sen. Nelson W. Aldrich (father-in-law of John D. Rockefeller, Jr. and grandfather of Nelson and David Rockefeller) proposed a bill, in which banks, in an emergency situation, would issue currency backed by federal, state, and local government bonds, and railroad bonds, which would be equal to 75% of the cash value of the bonds. It was harshly criticized because it didn't provide a monetary system that would respond to the seasonal demand, and fluctuate with the volume of trade. Aldrich was the most powerful man in Congress, and the Illuminati's head man in the Senate. A member of Congress for 40 years, 36 of them in the Senate, he was Chairman of the powerful Senate Finance Committee.

In the House of Representatives, Rep. E. B. Vreeland of New York, proposed the Vreeland Bill. After making some compromises with Aldrich, and Speaker of the House Joseph Cannon, at a meeting in a hotel room at the Arlington House, his bill became known as the Vreeland Substitute. It called for the acceptance of asset currency, but only in cases of emergency, and the currency would be based on commercial paper rather than bonds. It passed in the House, 184 -145, but when it got to the Senate, Aldrich moved against it, and pushed for further compromises. The Aldrich-Vreeland Bill, called the Emergency Currency Act, was passed on May 30, 1908, and led to the creation of the National Monetary Commission, which was made up of members of Congress. Now, any monetary legislation sent to Congress, would have to go through this group first.

The Bill approved by the National Monetary Commission was known as the Aldrich Bill, and formed the legislative base for the Federal Reserve Act. It was introduced as an amendment to the Republican sponsored Payne-Aldrich Tariff Bill, in order to have Republican support. It was based on Warburg's plan, except it would only have 15 districts; half of the directors on the district level would be chosen by the banks, a third by the stockholders, and a sixth by the other directors. On the National Board: two chosen by each district; nine chosen by the stockholders; and seven ex-officio members to be the Governor, Chairman of the Board, two Deputy Governors, Secretary of the Treasury, Secretary of Commerce and Labor, Secretary of Agriculture, and Comptroller of the Currency. Most people were against the Bill, because it finally identified the banking institution as a central bank, and the Democratic Party opposed it in the 1912 Party platform.

Aldrich was appointed as head of the National Monetary Commission, and from 1908 -10, at a cost of $300,000, this 16-man committee traveled around Europe to study the central banking system,

In 1910, Warburg gave a speech entitled, "A United Reserve Bank of the United States", which called for a United Reserve Bank to be located in Washington, D.C., having the capital of $100 million. The country would be divided into 20 districts, and the system would be controlled by a Board of Directors, which would be chosen by the banking associations, the stockholders, and the government. Warburg said that the U. S. monetary system wasn't flexible, and it was unable to compensate for the rise and fall of business demand. As an example, he said that when wheat was harvested, and merchants didn't have the cash on hand to buy and store a large supply of grain, the farmers would sell the grain for whatever they could get. This would cause the price of wheat to greatly fluctuate, forcing the farmer to take a loss. Warburg called for the development of commercial paper (paper money) to circulate as currency, which would be issued in standard denominations of uniform sizes. They would be declared by law to be legal tender for the payment of debts and taxes.

President Theodore Roosevelt said, concerning the criticism of finding capable men to head the formation of a central bank: "Why not give Mr. (Paul) Warburg the job? He would be the financial boss, and I would be the political boss, and we could run the country together."

After a conference was held at Columbia University on November 12, 1910, the National Monetary Cormnission published their plan in the December, 1910 issue of their Journal of Political Economy in an article called, "Bank Notes and Lending Power."

On November 22, 1910, Aldrich called a meeting of the banking establishment and members of the National Monetary Commission, which was proposed by Henry P. Davison (a partner of J. P. Morgan). Aldrich said that he intended to keep them isolated until they had developed a "scientific currency for the United States."

All those summoned to the secret meeting, were members of the Illuminati. They met on a railroad platform in Hoboken, New Jersey, where they chartered a private railroad car owned by Aldrich to Georgia. They were taken by boat, to Jekyll Island, off the coast of Brunswick, Georgia. Jekyll Island is in a group of ten islands, including St. Simons, Tybee, Cumberland, Wassau, Wolf, Blackbeard, Sapelo, Ossabow, and Sea Islands. Jekyll Island was a "hideaway resort of the rich", purchased in 1888 by J. P. Morgan, Cyrus McCormick, William Rockefeller (John D. Rockefeller's brother), William K. Vanderbilt, and George F. Baker (who founded Harvard Business School with a gift of $5 million) for $125,000 from Eugene du Bignon, whose family owned it for a century. Up until the time it was converted into a public resort, no uninvited foot ever stepped on its shores. It was said, that when all 100 members of the Jekyll Island Hunting Club sat down for dinner at the clubhouse, it represented a sixth of the world's wealth. St. Simons Island, a short distance away, to the north, was also owned by Illuminati interests.

Those attending the meeting at the private hunting lodge, were said to be on a duck-hunting expedition. They were sworn to secrecy, even addressing each other by code names or just by their first names. Details are very sketchy, concerning who attended the meeting, but most scenarios agree that the following people were present: Sen. Aldrich, Frank A. Vanderlip (Vice-President of the Rockefeller owned National City Bank), Henry P. Davison (of the J. P. Morgan and Co.), Abram Piatt Andrew (Assistant Secretary of the Treasury, an Assistant Professor at Harvard, and Special Assistant to the National Monetary Commission during their European tour), Paul Moritz Warburg (of Kuhn, Loeb and Co.), Benjamin Strong (Vice- President of Morgan's Bankers Trust Co.), Eugene Meyer (a former partner of Bernard Baruch, and the son of a partner in the Rothschild-owned Lazard Freres, who was the head of the War Finances Corporation, and later gained control of the Washington Post), J. P. Morgan, John D. Rockefeller, Col. House, Jacob Schiff, Herbert Lehman (of Lehman Brothers), Bernard Baruch (appointed by President Wilson to be the Chairman of the War Industries Board, which gave him control of all domestic contacts for Allied war materials, which enabled him to make $200 million for himself while working for the government), Joseph Seligman (a leading Jewish financier, who founded J. & W. Seligman and Co., who had helped to float bonds during the Civil War, and were known as "World Bankers", then later declined President Grant's offer to serve as the Secretary of Treasury), and Charles D. Norton (President of the First Natonal Bank of New York).

About ten days later, they emerged with the groundwork for a central banking system, in the form of, not one, but two versions, to confuse the opposition. The final draft was written by Frank Vanderlip, from Warburg's notes, and was incorporated into Aldrich's Bill, in the form of a completed Monetary Commission report, which Aldrich railroaded through Congress by avoiding the term "central bank". No information was available on this meeting until 1933, when the book The Federal Reserve Act: It's Origins and Problems, by James L. Laughlin, appeared; and other information, which was supplied by B. C. Forbes, the editor of Forbes Magazine. In 1935, Frank Vanderlip wrote in the Saturday Evening Post: "I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System."

The banker-initiated mini-depressions, the last of which had occurred in 1907, helped get Congressional support for the Bill, and on May 11, 1911, the National Citizens League for the Promotion of a Sound Banking System, an Illuminati front-organization, publicly announced their support for Aldrich's Bill. However, the Aldrich Bill was destined for failure, because he was so closely identified with J. P. Morgan. So, the Illuminati went to Plan B, which was the second version hammered out at the Jekyll Island summit. The National Citizens League publicly withdrew their support of the Aldrich Bill, and the move was on to disguise it, so that it could get through Congress.

Once the new version was ready, they were a little apprehensive about introducing it in Congress, because even if it would be passed by Congress, President Taft would veto it, so they had to wait until they could get their own man elected. That man was Woodrow Wilson.

The Democrats, with the exception of Grover Cleveland's election, had been out of power since 1869. Being a "hungry" Party, the Illuminati found them easier to infiltrate. During the late 1800's, they began the process of changing the Democrats from conservative to liberal, and the Republicans, from liberal to conservative.

Wilson graduated from Princeton University in 1879, studied law at the University of Virginia, and received his doctorate degree from Johns Hopkins in 1886. He taught Political Science and History at Bryn Mawr and Wesleyan, and in 1902, became President of Princeton. Because of his support of Aldrich's Bill, when it was first announced, he was supported by the Illuminati in his successful bid as Governor of New Jersey in 1910. The deal was made through Vanderlip agents, William Rockefeller and James Stillman, at Vanderlip's West Chester estate. The liaison between the Illuminati and Wilson, would be his prospective son-in-law, William G. McAdoo.

Rabbi Stephen Wise, a leading Jewish activist, told an audience at the Y.M.C.A. in Trenton, New Jersey: "On Tuesday the President of Princeton University will be elected Governor of your state. He will not complete his term of office as Governor. In November, 1912, he will be elected President of the United States. In March, 1917, he will be inaugurated for the second time as President. He will be one of the greatest Presidents in American history." Wise, who made this prophetic statement in 1910, later became a close advisor to Wilson. He had good reason to believe what he said, because the deal had already been struck. Wilson wasn't viewed as being pro-banking, and the Democratic Party Platform opposed a Central Bank, which was now linked to the Republicans and the bankers.

The main problem of the Democrats, was the Republican voting edge, and the lack of money. After the Illuminati made the decision to support Wilson, money was no problem. Records showed that the biggest contributors to Wilson's campaign were Jacob Schiff, Bernard Baruch, Henry Morgenthau, Sr., Thomas Fortune Ryan (mining magnate), Sammuel Untermyer, Cleveland H. Dodge(of the National City Bank), Col. George B. M. Harvey( an associate of J. P. Morgan, and editor of the Morgan-controlled Harper's Weekly, and President of the Harper and Brothers publishing firm), William Laffan (editor of the New York Sun), Adolph Ochs (publisher of the New York Times), and the financiers that owned the New York Times, Charles R. Flint, Gen. Sam Thomas, J. P. Morgan, and August Belmont. All of these men were Illuminati members.

The problem of the voter registration edge was a bit more difficult, but that was a project that the Illuminati was working on. The Russian pogroms of 1881 and 1882, in which thousands of Russians were killed; and religious persecution and anti-Semitism in Poland, Romania, and Bulgaria in the early 1890's, began three decades of immigration into the United States by thousands of Jews. By the turn of the century, a half-million Jews had arrived to the port cities of New York, Baltimore, and Boston. It was the Democrats who initiated a program to get them registered to vote. Humanitarian committees were set up by Schiff and the Rothschilds, such as the Hebrew Immigration Aid Society, and the B'nai B'rith, so when the Jews arrived, they were made naturalized citizens, registered Democrat, then shuffled off to other large cities, such as Chicago, Philadelphia, Detroit and Los Angeles, where they were given financial help to find a place to live, food, and clothing. This is how the Jews became a solid Democratic voting bloc, and it was these votes that would be needed to elect Wilson to the Presidency.


http://www.silverbearcafe.com/private/NWO/nwo2.html

[CrackSmokeRepublican]

Zero (Jew) Hedge has commentary on the Fed... never is the J-Word mentioned.  Typical Usurious Jew Scamming at its worst.... never are the Communist Jews running the Truman administration along with the Freemasons ever mentioned in the tract below.... but that's pretty typical of the J-Team at Z.H.   It's everybody's fault except the J-Tribe Scammers....  --CSR

http://www.zerohedge.com/news/who-lying ... talin-lost

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Who Is Lying: The Federal Reserve Or... The Federal Reserve? And Why Stalin "Lost"
Tyler Durden's picture
Submitted by Tyler Durden on 04/21/2012 09:09 -0400


When one thinks of the early 1950's, things that often come to mind are fries and milkshake, muscle cars, Little Richard, and greased hair. Things that rarely come to mind are that the US and China were openly at war over a little piece of land called Korea, that the Treasury market did not exist, that short and long end rates were "fixed" by the Fed at 0.125% and 2.5% respectively, even as inflation was at the highest it has ever been in the post war period at over 20%. What absolutely never comes to mind, is that on March 3, 1951, the world as we know it changed forever, after a little noted event known as the Fed-Treasury Accord of March 3, 1951 took place, and mutated the role of the Federal Reserve, which set off on a path that would ultimately lead to the disastrous economic state the world finds itself in today.

Oh and another thing that never comes to mind, is that while the current iteration of the Fed, various recent voodoo economic theories, and assorted blogs, all claim that excess bank reserves are never an inflationary threat, it is precisely two Federal Reserve chairmen's heretic claims that reserves will light an inflationary conflagration, that forced then president Truman to eliminate not one but two Fed Chairmen, and nearly result in the "independent" Federal Reserve being subsumed by the Treasury to do its monetization and market manipulation/intervention bidding. Which then begs the question: who is telling the truth about the linkage of reserve accumulation to inflation - the Fed of 1951, or every other Fed since, now firmly under the control of the Treasury-banker syndicate. Because they can not both be right.

Why is March 3, 1951 such an important date? Because, more than anything, the confluence of events that led to the "Accord" signed on this day have extensive parallels to our current situation, as the attached paper by the Federal Reserve of Richmond shows in exquisite detail, yet 100% in reverse.  

In a nutshell what happened in the late 1940s and early 1950s was that in the aftermath of WWII, and the outbreak of the Korean war, America found itself in a very odd situation... one never really encountered until today. The country had soaring inflation - as in real inflation, not just core inflation measured by hedonic adjustments and excluding all those thing that actually do go up in price. More importantly, it had the 1950's version of ZIRP - only then it was called a peg, in this case of 0.375%, and subsequently 0.125% on short end Treasurys, and 2.5% on long-dated paper. In other words, the monetary situation in 1951 was one where both the short and long end of the curve were artificially boosted (think ZIRP and Twist), just so holders of Treasury paper (at that time only insurance companies as banks were not allowed to invest in TSYs) did not experience losses and get further "demoralized" in addition to the war that Truman was currently waging.

In fact, the following quote from none other than Truman is as idiotic, yet as valid today, as it was 61 years ago:

    [T]he Federal Reserve Board should make it perfectly plain. . . to the New York Bankers that the peg is stabilized....I hope the Board will...not allow the bottom to drop from under our securities. If that happens that is exactly what Mr. Stalin wants. (FOMC Minutes, 1/31/51, p. 9)

And this:

    The FOMC met with President Truman late in the afternoon of Wednes- day, January 31.17    Truman began by stating that "the present emergency is  greatest this country has ever faced, including the two World Wars and all the preceding wars.. . . [W]e must combat Communist influence on many fronts.. . . f the people lose confidence in government securities all we hope to gain from our military mobilization, and war if need be, might be jeopardized."  

This is arguably the earliest recorded iteration in modern history of a "the world will come to an end unless you don't do what I tell you" type of threat uttered by a member of the administration (ahem Hank Paulson) to a governing body. We will skip commenting on the supreme irony that according to Truman, Stalin would win if the US did not engage in the same central planning that ultimately brought the Soviet empire down.

Yet what is so very different about this date in history, is that while it was the Treasury pushing tooth and nail for endless bond pegging by the Fed (apparently nobody had thought of QE back then yet, because it would have been all the rage), the body warning about the potential threat of runaway inflation from a surge in reserves, as well as the dangers associated with central planning was... The Federal Reserve.

Huh !!??

The same Fed that can not withhold its exuberance in encouraging ZIRP, Twist, LSAP, selling of Treasury Puts, and every other form of market intervention known to man, warning the president these very same actions would lead to ruin? And not only that but Truman being forced to get rid of not just Fed veteran Marriner Eccles (after whom the building in which centrally planned schemes are hatched every single day in yet another supreme irony), but also his successor Thomas McCabe who also refused to follow the precepts of central planning... who in turn was replaced by a Treasury muppet, or someone who will gladly monetize US debt whenever needed, at which point the scene for the final outcome was set.

That is impossible you say. Oh, not only is it impossible but it gets much better.

Because not only did the two veteran Fed chairmen warn against the state's incursion into central planning, but they explicitly said something which the Fed, or at least its modern versions, have rejected over and over, especially during congressional committees: that a build of bank reserves is the surest way to spark hyperinflation.

But....but....but.... this is what fringe tin-foil hat blogs allege.... not Fed chairmen who between them have over 20 years of tenure.

Well, here are the facts:

    "We have marched up the hill several times and then marched down again. This time I think we should act on the basis of our unwillingness to continue to supply reserves to the market by supporting the existing rate structure and should advise the Treasury that this is what we intend to do—not seek instructions" (FOMC Minutes, 8/18/50, p. 137).

     

    [Fed member] Sproul would state the idea that a central bank controls inflation through the monetary control made possible by allowing market determination of the interest rate: "[T]he Committee did not in its operations drive securities to any price or yield....[M]arket forces had been the determining factor, and that only in resisting the creation of reserves had the committee been a party to an increase in interest rates. That...was the result of market forces, and not the action of the Committee. (FOMC Minutes, 3/1/51, pp. 125–26)"

In response to Truman's ceaseless demands for pegging interest rates even as inflation was spiking over 20%, NY Fed president Sproul said that...

    ...this "would make the Federal Reserve System a bureau of the Treasury and, in light of the responsibilities placed in the System by the Congress, would be both impossible and improper" (FOMC Minutes, 1/31/51, p. 23).

In other words, pegging (i.e., ZIRP, Twist, LSAP)... is "impossible and improper"... is unconstitutional another word for it?

In retrospect perhaps we were a little too rought on Mr. Martin, who despite being a Treasury puppet, had these words to say:

    In his speech accepting an appointment to the Board of Governors, Martin (1951, p. 377) said:

     

    "Unless inflation is controlled, it could prove to be an even more serious threat to the vitality of our country than the more spectacular aggressions of enemies outside our borders. I pledge myself to support all reasonable measures to preserve the purchasing power of the dollar."

There are those who claim the Fed has become the bankers' puppet. It was not always so. In fact, the bankers loathed the Fed... Until the "Accord"

    The banking community contributed to the Fed's isolation by refusing to support its position. On February 2, the Board had met with the Federal Advisory Council, which represents the views of large banks. At that meeting, Eccles accused bankers of a lack of "courage and realistic leadership" (Board Minutes, 2/20/51, p. 389).

     

    The Executive Committee refused to withdraw the FOMC's letter to the President. Furthermore, it wrote a defiant letter to Senator O'Mahoney. The initial substantive paragraph began with the famous quote from John Maynard Keynes: "[T]hat the best way to destroy the Capitalist System was to debauch the currency" (FOMC Minutes, 2/14/51, p. 87).

It just gets better, as Marriner Eccles puts it into overdrive:

    "We favor the lowest rate of interest on government securities that will cause true investors to buy and hold these securities. Today's inflation. ... is due to mounting civilian expenditures largely financed directly or indirectly by sale of Government securities to the Federal Reserve.. . . The inevitable result is more and more money and cheaper and cheaper dollars." (FOMC Minutes, 2/7/51, p. 60)

Yet punchline #1:

    [We are making] it possible for the public to convert Government securities into money to expand the money supply....We are almost solely responsible for this inflation. It is not deficit financing that is responsible because there has been surplus in the Treasury right along; the whole question of having rationing and price controls is due to the fact that we have this monetary inflation, and this committee is the only agency in existence that can curb and stop the growth of money.. . . [W]e should tell the Treasury, the President, and the Congress these facts, and do something about it....We have not only the power but the responsibility....If Congress does not like what we are doing, then they can change the rules. (FOMC Minutes, 2/6/51, pp. 50–51)

And #2 and final:

    Governor Eccles and Representative Wright Patman, who was a populist congressman from Texarkana, Texas, went head-to-head:

     

    Patman: Don't you think there is some obligation of the Federal Reserve System to protect the public against excessive interest rates?

     

    Eccles: I think there is a greater obligation to the American public to protect them against the deterioration of the dollar.

     

    Patman: Who is master, the Federal Reserve or the Treasury? You know, the Treasury came here first.

     

    Eccles: How do you reconcile the Treasury's position of saying they want the interest rate low, with the Federal Reserve standing ready to peg the market, and at the same time expect to stop inflation?

     

    Patman: Will the Federal Reserve System support the Secretary of the Treasury in that effort [to retain the 2 1/2 percent rate] or will it    refuse?. . . You    are    sabotaging    the    Treasury.    I    think    it    ought    to    be stopped.

     

    Eccles: [E]ither the Federal Reserve should be recognized as having some independent status, or it should be considered as simply an agency or a bureau of the Treasury. (U.S. Congress 1951, pp. 172–76)

And there you have it folks, clear as daylight, every aspect of the tension of the "independent" Fed brought to the surface. Because the few men who dared to stand up against Truman,  the doctrine of central planning, "pegging" Treasury prices,  and the banking cartel whose sole prerogative has always and only been cheap and easy money, all got their just deserts:

Fed president #1:

    Eccles also reported in his memoirs that shortly before this event he had completed a letter of resignation to the President. He then decided to postpone his resignation. Eccles had been Chairman of the FOMC from its creation in 1935 until 1948. He did not intend to leave Washington with the Federal Reserve under the control of the Treasury. According to a Truman staff member, Truman had failed to reappoint Eccles as Board Chairman in 1948 to show him "who's boss" (Donovan 1982, p. 331).

And Fed president #2...

    While in the hospital, Snyder conveyed to Truman the message that he felt he could no longer work with McCabe. Without a working relationship with the Treasury, McCabe could not function as Chairman of the Board of Governors. McCabe sent in a bitter letter of resignation, but resubmitted a bland version when asked to do so by the White House. McCabe, however, conditioned his resignation on the requirement that his successor be acceptable to the Fed.

As a reminder Snyder was the Secretary of the Treasury.

And whom did Truman replace McCabe with?

    On March 15, the President appointed William McChesney Martin to replace McCabe.

Martin was undersecretary of the Treasury: the same institution that wanted all objectors to central planning scrapped. His position? Quote the Fed:

    Truman and Snyder were populists who believed that banks, not the market forces of supply and demand, set interest rates. Truman felt that government had a moral obligation to protect the market value of the war bonds purchased by patriotic citizens. He talked about how in World War I he had purchased Liberty Bonds, only to see their value fall after the war.

Yet by keeping bonds pegged at ridiculously low prices during the late 1940s, and early 1950s, inflation exploded.

And that is what marked the beginning of the end, as while the Fed may have gained its independence, the US presidency, acting on behalf of the banks and populism (to keep capital losses to a minimum) made it all too clear anyone who steps out of line would be fired.

Call it a Stalinist putsch.

Actually hold on, did we say Stalin lost? Perhaps we may need to revise that. And while we got closure on that, we are still confused: is the real seed of inflation in reserves?

    "Forced by the rate peg issue to make a stand on the role
    of a central bank in creating inflation, Eccles expressed the nature of a
    central bank in a fiat money regime. It was not private
    speculation or government deficits that caused inflation, but rather
    reserves and money creation by the central bank." [The Treasury-Fed Accord: A New Narrative Account, Richmond Fed, Robert L. Hetzel and Ralph F. Leach]

Ok, now we get it.

And should we listen to the Fed or the... Fed?

Read the full absolutely must read Rchmond Fed narrative of the 1951 accord here. We can only hope someone in Congress can ask Bernanke for his take on the allegations made by the man responsible for the name of the current Fed headquarters.