CONTROLLING THE MONEY
In the mid 1700's the Colonies were prospering because they were issuing their own money, called Colonial Scrip, which was strictly regulated, and didn't require the payment of any interest. When the bankers in Great Britain heard this, the British Parliament passed a law prohibiting the currency, forcing them to accept the debt money issued by them. Contrary to what history teaches, the American Revolution was not ignited by a tax on tea. According to Benjamin Franklin, it was because "the conditions were so reversed that the era of prosperity ended." He said: "The Colonies would gladly have borne the little tax on tea and other matters had it not been the poverty caused by the bad influence of the English bankers on the Parliament: which has caused in the Colonies hatred of England and the Revolutionary War."
In 1787, our new Constitution gave Congress the power to "coin money, (and) regulate the value thereof (Article 1, Section 8)." After Great Britain tried to destroy and control the currency of our new country, Congress realized the danger of fiat, or paper money created by law. In 1775, paper money had been issued to finance the war, and independent state legislatures passed laws requiring citizens to accept it as legal tender. Since it was created from nothing, and not backed by any precious metal, inflation developed. By the end of the war, it took 500 paper dollars to get one silver dollar. Our forefathers wrote in Article I, Section 10, of the U.S. Constitution: "No State shall enter into any treaty, alliance or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make any thing by gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility."
Alexander Hamilton, an Illuminist, and agent of European bankers, had immigrated to the colonies in 1772 from the British colony of Nevis, on the Leeward Islands in the British West Indies. He married the daughter of Gen. Philip Schuyler, one of the most influential families of New York. In 1789 he was appointed Secretary of the Treasury. Hamilton and Robert Morris successfully convinced the new Congress not to take this power literally, enabling the Bank of North America to be established in 1781, which was similar to the Bank of England. At the time, America had a foreign debt of $12,000 (in money borrowed from Spain, France, Holland, and private interests in Germany), and a domestic debt of $42,000.
In 1790, Hamilton, who favored Central Banking, urged the Congress to charter a privately owned company to have the sole responsibility of issuing currency, in order to handle the country's financial situation. His Plan called for Congress to create a Central Banking system, with a main office in Philadelphia, and smaller branches located in important cities throughout the country. It would be used to deposit government funds and tax collections, and to issue bank notes to increase the money supply needed to finance the country's growth. This Bank of the United States would have a capital stock plan of $10 million, with 4/5's to be owned by private investors, and 1/5 by the U.S. Government. It would be administered by a President, and 25 Board of Directors, with 20 to be elected by the stockholders, and 5 appointed by the government.
Central Banking was initiated by international banker William Paterson in 1691, when he obtained the Charter for the Bank of England, which put the control of England's money in a privately owned company who had the right to issue notes payable on demand against the security of bank loans to the crown. One of their first transactions was to loan 1.2 million pounds at 8% interest to William of Orange to help the king pay the cost of his war with Louis XIV of France. Paterson said: "The bank hath benefit of interest on all monies which it creates out of nothing." Reginald McKenna, British Chancellor of the Exchequer(or Treasury), said 230 years later: "The banks can and do create money...And they who control the credit of the nation direct the policy of governments and hold in the hollow of their hands the destiny of the people."
Hamilton's elitist views, and real purpose for wanting Central Banking came to light, when he wrote: "All communities divide themselves into the few and the many. The first are rich and well-born, the other the mass of the people. The people are turbulent and changing; they seldom judge or determine right."
In 1791, Jefferson said: "To preserve our independence, we must not let our rulers load us with perpetual debt. If we run into such debts, we (will then) be taxed in our meat and our drink, in our necessities and in our comforts, in our labor and in our amusements. If we can prevent the government from wasting the labor of the people under the pretense of caring for them, they (will) be happy." Even though Thomas Jefferson, and James Madison(later to be our 4th President, 1809-17) opposed the Bill, Washington signed it into law on February 25, 1791, Alexander Hamilton became a very rich man. He and Aaron Burr helped establish the Manhattan Co. in New York City, which developed into a very prosperous banking institution. It would later be controlled by Warburg-Kuhn-Loeb interests, and in 1955 it merged with Rockefeller's Chase Bank to create the Chase Manhattan Bank.
When Jefferson(1801-09) became President, he opposed the bank as being unconstitutional, and when the 20 year charter came up for renewal in 1811, it was denied. Nathan Rothschild, head of the Bank of England, had recognized America's potential, and made loans to a few states, and in fact became the official European banker for the U.S. Government. Because he supported the Bank of the United States, he threatened: "Either the application for renewal of the Charter is granted, or the United States will find itself in a most disastrous war"; he then ordered British troops to: "Teach these impudent Americans a lesson. Bring them back to Colonial status." This brought on the War of 1812, our second war with England, which facilitated the rechartering of the Bank of the United States. The war raised our national debt from $45 million to $127 million.
Jefferson wrote to James Monroe(who later served as our 5th President, 1817- 25) in January, 1815: "The dominion which the banking institutions have obtained over the minds of our citizens...must be broken, or it will break us." In 1816, Jefferson wrote to John Tyler(who became our 10th President, 1841-45): "If the American people ever allow private banks to control the issuance of their currency, first by inflation, and then by deflation, the banks and the corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their father's conquered...I believe that banking institutions are more dangerous to our liberties than standing armies...The issuing power should be taken from the banks and restored to the Government, to whom it properly belongs."
On May 10, 1816, President James Madison signed the Bill which created the second Bank of the United States. Inflation, heavy debt, and the unavailability of an entity to collect taxes, were some of the reasons given for its rechartering. The new charter allowed it to operate another 20 years, raised its capital stock to $35 million, authorized the creation of bank branches, and the issuing of notes with denominations no smaller than $5.00. The new bank now had the power "to control the entire fiscal structure of the country." The bank was run by the Illuminati, through such international banker "front men" as John Jacob Astor, Stephen Girard, and David Parish(a Rothschild agent for the Vienna branch of the family).
In 1819, the Bank was declared constitutional by Supreme Court Justice John Marshall (a Mason), who said that Congress had the implied power to create the Bank.
People began to see how much power the Bank really had, and the voter backlash led to the election of Andrew Jackson as President in 1828. His slogan was: "Let the people rule." Jackson maintained: "If Congress has the right under the Constitution to issue paper money, it was given them to be used by themselves, not to be delegated to individuals or to corporations." Jackson said that the control of a central bank "would be exercised by a few over the political conduct of the many by first acquiring that control over the labor and earnings of the great body of people." During the 1828 Presidential campaign, Jackson said in an address before a group of bankers: "You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out." He went on to say: "If the people only understood the rank injustice of our Money and Banking system, there would be a revolution before morning." Jackson said that if such a Bank would continue to control "our currency, receiving our public monies, and holding thousands of our citizens in dependence, it would be more formidable and dangerous than the naval and military power of the enemy..."
After fiscal mismanagement by its first President, former Secretary of the Navy, Captain William Jones, the Bank was forced to call in loans and foreclosed on mortgages, which caused bankruptcy, a price collapse, unemployment and a depression. However, the Bank began to flourish under its new President, financier Nicholas Biddle(1786-1844), who petitioned the Congress for a renewal of the Bank's Charter in 1832, four years before its current charter expired. The Bill for the new Charter passed the Senate, 28-20, and the House 107-85, and everyone knew how Jackson felt. Biddle threatened: "Should Jackson veto it, I shall veto him!" Jackson did veto the Charter, and abolished the Bank in 1832. He ordered the Secretary of the Treasury to remove all Government deposits from U.S. Banks and deposit them in state banks. On January 8, 1835, Jackson paid off the final installment on our national debt, and it was the only time in history that our national debt was reduced to zero, and we were able to accumulate a surplus, $35 million of which was distributed to the States. Nicholas P. Trist, the President's personal secretary, said: "This is the crowning glory of A.J.'s life and the most important service he has ever rendered his country." The Boston Post compared it to Christ throwing the money-changers out of the Temple.
James K. Polk, the Speaker of the House (who later became the 11th President in 1845) said: "The Bank of the United States has set itself up as a great irresponsible rival power of the government."
The Bank continued to operate until 1836, and it was used by Biddle to wreak havoc upon the economy by reducing loans and increasing the quantity of money. Jackson became the first President of the United States to be censured, which was done in March, 1834, "for removing the government's deposits from the Bank of the United States without the express authorization of the United States Congress." It is quite obvious that he did it because of the "abuses and corruptions" of the Bank, and the censure was later reversed by the Senate in 1837. The Bankers continued their attempts to revive the Bank. President John Tyler vetoed two bills in 1841 that would have re-chartered the Bank of the United States.
In 1837, the Rothschilds sent another of their agents to America. His name was August Belmont(real name, August Schonberg, a cousin of the Seligman family of Frankfurt, Germany). In 1829, as a 15 year-old, he started working for the bank in Frankfurt, and proved himself to be a financial genius. In 1832, he was promoted to the Bank at Naples, so he could be fully integrated into international banking. He became fluent in English, French, and Italian. His mission was to stir up financial trouble within the southern banks. He ran a bank in New York City, and established himself as a leading figure in financial circles by buying government bonds, and later became a financial advisor to the President.
In 1857, the Illuminati met in London to decide America's fate. They had to create an incident which would allow the establishment of a Central Bank, and that had to be a war, since wars are expensive, and governments have to borrow to pay for them. Canada and Mexico, weren't strong enough, as evidenced by Santa Anna's defeat in Texas the year before; England and France were too far away, and Russia wasn't under their control; so they decided to "divide and conquer", by fermenting a conflict between the North and the South. The North was to become a British Colony, annexed to Canada, and controlled by Lionel Rothschild; while the South was to be given to Napoleon III of France, and controlled by James Rothschild.
In order to begin a movement that would lead to the secession of the South from the Union, the Illuminati used the Knights of the Golden Circle, which had been formed in 1854 by George W. L. Bickley, to spread racial tension from state to state, using slavery as an issue. War-time members included Jefferson Davis, John Wilkes Booth and Jesse James(1847-1882, a Mason, who after stealing gold from banks and mining companies, buried nearly $7 billion of it all over the western states in hopes of funding a second Civil War). The Ku Klux Klan, formed in 1867, were the military arm of the Knights. The states which seceded, united into the Confederate States of America, which meant they maintained their independence, and that if the South would win, each state would be like an independent country.
Abraham Lincoln informed the people that "combinations too powerful to be suppressed by the ordinary machinery of peacetime government had assumed control of various southern states." He had coastal ports blockaded to keep supplies from being shipped in from Europe.
The Rothschilds financed the North through emissaries August Belmont, Jay Cooke(who was commissioned to sell bond issues, arranging with Belmont to sell Union bonds in Europe), J. and W. Seligman and Company, and Speyer & Co.
Judah P. Benjamin(l811-84) of the law firm of Slidell, Benjamin and Conrad, in Louisiana, was a Rothschild agent, who became Secretary of State for the Confederacy in 1862. His law partner, John Slidell (August Belmont's wife's uncle) was the Confederate envoy to France. Slidell's daughter was married to Baron Frederick D'Erlanger, in Frankfurt, who were related to the Rothschilds, and acted on their behalf. Slidell was the representative of the South who borrowed money from the D'Erlangers to finance the Confederacy.
Towards the end of 1861, England sent 8,000 troops to Canada, and in 1862, English, French and Spanish troops landed at Veracruz, Mexico, supposedly to collect on debts owed them by Mexico. In April, 1861, the Russian Ambassador to America had advised his government: "England will take advantage of the first opportunity to recognize the seceded states and that France will follow her." On June 10, 1863, French General Elie-Frederic Forey, with the help of 30,000 additional French troops, took over Mexico City, and controlled most of the country. Through his representatives in Paris and London, Czar Alexander II in Russia discovered that the Confederates had offered the states of Louisiana and Texas to Napoleon III, if he would send his troops against the North. Russia had already indicated their support for Lincoln, but wanted something more to send their large navy to defend the country. On January 1, 1863, as a gesture of goodwill, Lincoln issued his Emancipation Proclamation to free the slaves, just as the Czar had done with the serfs in 1861. On September 8, 1863, at the request of President Lincoln and Secretary of State William H. Seward, Alexander sent the Russian fleet to San Francisco and New York, and ordered them "to be ready to fight any power and to take their orders only from Abraham Lincoln."
Lincoln said: "The privilege of creating and issuing money is not only the supreme prerogative of Government, but is the Government's greatest creative opportunity. By the adoption of these principles, the taxpayers will be saved immense sums of interest." On February and March, 1862, and March 1863, Lincoln received Congressional approval to borrow $450 million from the people by selling them bonds, or "greenbacks", to pay for the Civil War. They were not redeemable until 1865, when three could be exchanged for one in silver. They were made full legal tender in 1879. Thus, Lincoln solved America's monetary crisis without the help of the International Bankers. The London Times later said of Lincoln's greenbacks: "If that mischievous financial policy which had its origin in the North America Republic during the late war in that country, should become indurate 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 become prosperous beyond precedent in the history of the civilized governments of the world. The brains and wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe." Bismarck, the German Chancellor, said in 1876 about Lincoln: "He obtained from Congress the right to borrow from the people by selling to it the 'bonds' of States...and the Government and the nation escaped the plots of the foreign financiers. They understood at once, that the United States would escape their grip. The death of Lincoln was resolved upon."
Before the Lincoln administration, private commercial banks were able to issue paper money called state bank notes, but that ended with the National Banking Act of 1863, which prohibited the states from creating money. A forerunner of the Federal Reserve Act, it began the movement to abolish redeemable currency. A system of private banks were to receive charters from the federal government which would give them the authorization to issue National Bank Notes. This gave banks the power to control the finances and credit of the country, and provided centralized banking, under Federal control, in times of war. The financial panic created by the International Bankers, destroyed 172 State Banks, 177 private banks, 47 savings institutions, 13 loan and trust companies, and 16 mortgage companies.
Salmon P. Chase, Secretary of the Treasury(l861-64) under Lincoln, publicly said that his role "in promoting the passage of the National Banking Act was the greatest financial mistake of my life. It has built up a monopoly which affects every interest in the country. It should be repealed, but before that can be accomplished, the people will be arrayed on one side and the bankers on the other, in a contest such as we have never seen before in this country."
Lincoln said: "The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few and the Republic is destroyed...I feel at the moment more anxiety for the safety of my country than ever before, even in the midst of war."
On April 14, 1865, Lincoln was shot by John Wilkes Booth, and that same evening, an unsuccessful attempt by his fellow conspirators was made on the life of Seward. In 1866, an attempt was made to assassinate Czar Alexander II, and in 1881, the Czar was killed by an exploding bomb.
In Booth's trunk, coded messages were found, and the key to that code was found among the possessions of Judah Benjamin. Benjamin had fled to England, where he died. It was always known that Lincoln's death was the result of a massive conspiracy. However, nobody realized how deep and far reaching it was. In 1974, researchers found among the papers of Edwin M. Stanton, Lincoln's Secretary of War, letters describing the conspiracy cover-up, that were written to Stanton, or intercepted by him. They also found the 18 pages that were removed from Booth's diary, which revealed the names of 70 people(some in code) who were directly or indirectly involved in Booth's original plan to kidnap Lincoln. Besides Stanton's involvement in the conspiracy, Charles A. Dana, Assistant Secretary of War(and member of the Illuminati); and Major Thomas Eckert, Chief of the War Department's Telegraph Office, were also involved.
Journals and coded papers by Colonel Lafayette C. Baker, Chief of the National Detective Police, detailed Lincoln's kidnap and assassination conspiracy, and subsequent cover-up. The plot included a group of Maryland farmers; a group of Confederates including Jefferson Davis (President of the Confederacy) and Judah Benjamin (the Confederate Secretary of War and Secretary of State); a group of Northern Banking and Industrial interests, including Jay Cooke (Philadelphia financier), Henry Cooke (Washington, DC banker), Thurlow Weed (New York newspaper publisher); and a group of Radical Republicans who didn't want the south reunited with the North as states, but wanted to control them as military territories, and included Sen. Benjamin Wade of Ohio, Sen. Zechariah Chandler of Michigan, and Sen. John Conness of California. All of these groups pooled their efforts, and used actor John Wilkes Booth, a Confederate patriot. The original plan called for the kidnapping of Lincoln, Vice-President Andrew Johnson, and Secretary of State Seward. The National Detective Police discovered their plans, and informed Stanton. Planned for January 18, 1865, the kidnap attempt failed.
Captain James William Boyd, a secret agent for the Confederacy, and a prisoner of war in the Old Capitol Prison, was used by the National Detective Police to report on the activities of the prisoners, and to inform on crooked guards. He looked similar to Booth, and ironically, had the same initials. Stanton had him released, and Boyd took over the Northern end of the conspiracy, which had been joined by the Police and the War Department. The North wanted to kill Lincoln, while Booth wanted to kidnap him and use him as leverage to get Confederate prisoners of war released.
Booth failed twice in March, and then ended up shooting Lincoln at Ford's Theater. Boyd, warned that he could get implicated, planned to flee to Maryland. He was blamed for attacking Seward, which he didn't. Boyd was the one who was shot at Garrett's farm, and identified as Booth. The Police and Stanton discovered that it was really Boyd, after it was announced to the nation that it was Booth. The only picture taken of Boyd's dead body was found in Stanton's collection. The body was taken by Col. Lafayette Baker, to the old Arsenal Penitentiary, where it was buried in an unknown place, under the concrete floor.
Baker and Detectives Luther and Andrew Potter, knew the case wasn't closed, and had to find Booth to keep him from talking. They followed his trail to New York, and later to Canada, England and India. He allegedly faked his death and returned to the United States, where in Enid, Oklahoma, he revealed his true identity on his deathbed. The mortician who was summoned, instead of burying the corpse, had it preserved, and it is still in existence today.
Baker broke off relations with Stanton, who was discharged from the Army, and as head of the Secret Service in 1866. In 1867, in his book, the History of the U.S. Secret Service, he admitted delivering Booth's diary to Stanton, and on another occasion, testified that the diary was intact when it was in his possession. This means that Stanton did remove the pages to facilitate a cover-up, because the pages were found in his collection.
Andrew Johnson, who became President, issued the Amnesty Proclamation on May 29, 1865, to reunite the country. It stipulated that the South would not be responsible for the debt incurred, that all secession laws were to end, and that slavery was to be abolished. Needless to say, the Rothschilds, who heavily funded the south, lost a lot of money. In addition, the cost of the support of the Russian fleet cost the country about $7.2 million. Johnson didn't have the constitutional authority to give money to a foreign government, so arrangements were made to purchase Alaska from the Russians in April, 1867. It was labeled as "Seward's Folly" because it appeared that Seward purchased what was then a worthless piece of land, when in fact it was compensation for the Russian Navy. In August, 1867, Johnson, failed in an attempt to remove Stanton from office, and impeachment proceedings were begun against him in February, 1868, by Stanton and the Radical Republicans. Johnson was charged with attempting to fire Stanton without Senate approval, for treason against Congress, and public language "indecent and unbecoming" as the nation's leader.
Sen. Benjamin F. Wade, President pro tempore of the Senate, next in the line of Presidential succession, was so sure that Johnson would be impeached, that he already had his Cabinet picked. Stanton was to be his Secretary of Treasury. The May 26th vote was 35-19, one short of the necessary two-thirds needed to impeach Johnson.
Col. Lafayette Baker, who threatened to reveal the conspiracy, was slowly poisoned till he died in 1868.
President James A. Garfield, our 20th President, also realized the danger posed by the bankers and said: "Whoever controls the money of a nation, controls that nation." He was assassinated in 1881, during the first year of his Presidency.
In 1877, in Lampasas County, Texas, a group of farmers formed a group called the Knights of Reliance, who were concerned about the financial power being "concentrated into the hands of a few." Later renamed the Farmers Alliance, it spread to 120 chapters throughout Texas, and by 1887 the movement stretched up to the Dakotas, and as far east as the Carolinas. By the time 1890 rolled around, this Populist philosophy had succeeded in establishing itself, and they had elected governors and congressmen.
They advocated a progressive income tax; for railroads, communications, and corporations to be regulated by the Federal government; the right to establish labor unions; and government mediation to stabilize falling commodity prices and the initiation of credit programs. They were against the gold standard, and the country's private banking system, which was centered at Wall Street. They were impressed with Lincoln's "greenbacks", because of its ability to adapt in order to meet the credit needs of the economy. They wanted the money supply to be controlled by their elected representatives, and not the money interests of Wall Street. They created the People's Party, and ran their own independent presidential candidate in 1892. And in 1896, they hitched their wagon to the campaign of Democrat William Jennings Bryan, who lost to McKinley, effectively ending the Populist movement.
This political movement created the initial stirrings for what eventually became the Federal Reserve Act.
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.
In 1912, with President William Howard Taft running for re-election against Wilson, the Illuminati needed some insurance. They got it by urging another Republican, former President, Theodore Roosevelt (1901-09) to run on the Progressive ticket. Taft had served as Roosevelt's Secretary of War (1905-09), and was chosen by Roosevelt to succeed him as President. Now, Roosevelt was running again. Advocating the 'New Nationalism', Roosevelt said: "My hat is in the ring...the fight is on and I am stripped to the buff." Identified as 'anti-business' because of his stand against corporations and trusts, his proposals for reorganizing the government were attacked by the Illuminati-controlled New York Times as "super- socialism". His 'Bull Moose' Platform said: "We are opposed to the so-called Aldrich Currency Bill because its provisions would place our currency and credit system in private hands, not subject to effective public control." Frank Munsey and George Perkins, of the J. P. Morgan and Co. organized, ran, and financed Roosevelt's campaign. A recent example of the same plan that pulled votes away from Taft, in order to get Wilson elected, occurred in the 1992 Presidential election. In a 1994 interview, Barbara Bush told ABC-TV news correspondent Barbara Walters, that the third-party candidacy of independent H. Ross Perot was the reason that Bill Clinton was able to defeat President George Bush.
The Illuminati was able to get the support of perennial Democratic Presidential candidate, William Jennings Bryan, by letting him write the plank of the Party Platform which opposed the Aldrich Bill. Remember, the second version of the Bill prepared at Jekyll Island was to be an alternative, so public attention was turned against the Aldrich Bill. Wilson, an aristocrat, having socialistic views, was in favor of an independent reserve system, because he didn't trust the "common men" which made up Congress, however, publicly, he promised to "free the poor people of America from control by the rich", and to have a money system that wouldn't be under the control of Wall Street's International Bankers. In fact, in the summer of 1912, when he accepted the nomination as the Democratic candidate for the Presidency, he said: "A concentration of the control of credit...may at any time become infinitely dangerous to free enterprise." According to the Federal Reserve's historical narrative, the shift in Wilson's point of view was "a combination of political realities and his own lack of knowledge about banking and finance (and) after his election to the Presidency, Wilson relied on others for more expert advice on the currency question."
Because of the voting split in the Republican Party, not only was Woodrow Wilson able to win the Presidency, but the Democrats gained control of both houses in Congress.
DEMOCRAT (Wilson) 435 electoral votes 6,286,214 popular votes
PROGRESSIVE (Roosevelt) 88 electoral votes 4,126,020 popular votes
REPUBLICAN (Taft) 8 electoral votes 3,483,922 popular votes
Rep. Carter Glass of Virginia, Chairman of the Banking and Currency Committee, met with Wilson after his election, along with H. Parker Willis (who was Dean of Political Science at George Washington University) of the National Citizens League, to prepare a Bill, known as the Glass Bill, which began taking form in January, 1913. Now Plan B was set into motion. Remember, the National Citizens League, headquartered in Chicago, had already announced their opposition to the Aldrich Bill, now the Wall Street banking interests had come out against the Glass Bill, which was actually the Aldrich Bill in disguise.
The Wall Street crowd was generally referred to as the "money trust". However, a 1912 Wall Street Journal editorial said that the term "money trust" was just a reference to J. P. Morgan. The suspicion of the "money trust" peaked in 1912, during an investigation by a House banking subcommittee which revealed that twelve banks in New York, Boston, and Chicago, had 746 interlocking directorships in 134 corporations. Rep. Robert L. Henry of Texas said that for the past five years, the nation's financial resources had been "concentrated in the city of New York (where they) now dominate more than 75 percent of the moneyed interests of America..." George McC. Reynolds, the President of the Continental Bank of Chicago, testified: "The money power now lies in the hands of a dozen men..." The threat from this powerful private banking system was to be ended with the establishment of a central bank.
To avoid the mention of central banking, Wilson himself suggested that the regional banks be called "Federal Reserve Banks", and proposed a special session of the 63rd Congress to be convened to vote on the Federal Reserve Act. On June 23, 1913, he addressed the Congress on the subject of the Federal Reserve, threatening to keep them in session until they passed it. Wilson got Bryan's support by making him Secretary of State, and in October, 1913, Bryan said he would assist the President in "securing the passage of the Bill at the earliest possible moment."
The Glass Bill (HR7837) was introduced in the House of Representatives on June 26, 1913. The revision mentioned nothing about central banking, which was what the people feared. It was believed that Willis had written the Bill, but it was later discovered that Professor James L. Laughlin, at the Political Science Department of Columbia University, had written it, taking special precaution not to clash with the Bryan plank of the Democratic Party Platform. It was referred to the Banking and Currency Committee, reported back to the House on September 9th, and passed on September 18th.
Sen. Robert Latham Owen of Oklahoma, Chairman of the Senate Banking and Finance Committee, along with five of his colleagues, drafted a Bill which was more open-minded to the suggestions of the bankers. A Bill drafted by Sen. Gilbert M. Hitchcock, a Democrat from Nebraska, called for the elimination of the "lawful money" provision, and stipulated that note redemption must be made in gold. It also provided for public ownership of the regional reserve banks, which would be controlled by the government.
In the Senate, the Glass Bill was referred to the Senate Banking Committee, and reported back to the Senate on November 22, 1913. The Bill was now known as the Glass-Owen Bill. Sen. Owen, who opposed the Aldrich Bill, made some additional revisions, in an attempt to keep them from completely dominating our monetary system. Sen. Elihu Root of New York criticized some of these revisions, and some points were modified. It was passed by the Senate on December 19th.
Since different versions had been passed by both Houses, a Conference Committee was established, which was stacked with six Democrats and only two Republicans, to insure that certain portions of the original Bill would remain intact. It was hastily prepared without any public hearings, and on December 23, 1913, two days before Christmas, when many Congressmen, and three particular Senators, were away from Washington, the Bill was sent to the House of Representatives, where it passed 298-60, and then sent to the Senate, where it passed with a vote of 43-25(with 27 absent or abstaining). An hour after the Senate vote, Wilson signed the Federal Reserve Act into law, and the Illuminati had taken control of the American economy. The gold and silver in the nation's vaults were now owned by the Federal Reserve. Baron Alfred Charles Rothschild(1842-1918), who masterminded the entire scheme, then made plans to further weaken our country's financial structure.
Although Wilson, and Rep. Carter Glass were given the credit for getting the Federal Reserve Act through Congress, William Jennings Bryan played a major role in gaining support to pass it. Bryan later wrote: "That is the one thing in my public career that I regret- my work to secure the enactment of the Federal Reserve Law." Rep. Glass would later write: "I had never thought the Federal Bank System would prove such a failure. The country is in a state of irretrievable bankruptcy."
Eustace Mullins, in his book The Federal Reserve Conspiracy, wrote: "The money and credit resources of the United States were now in complete control of the banker's alliance between J. P. Morgan's First National Bank, and Kuhn & Loeb's National City Bank, whose principal loyalties were to the international banking interests, then quartered in London, and which moved to New York during the First World War."
The Reserve Bank Organization Committee, controlled by Secretary of the Treasury, William Gibbs McAdoo, and Secretary of Agriculture David F. Houston (who along with Glass, later became Treasury Secretaries under Wilson), was give $100,000 to find locations for the regional Reserve Banks. With over 200 cities requesting this status, hearings were held in 18 cities, as they traveled the country in a special railroad car.
On October 25, 1914, the formal establishment of the Federal Reserve System was announced, and it began operating in 1915.
Col. House, who Wilson called his "alter ego", because he was his closest friend and most trusted advisor, anonymously wrote a novel in 1912 called Philip Dru: Administrator, which revealed the manner in which Wilson was controlled. House, who lobbied for the implementation of central banking, would now turn his attention towards a graduated income tax. Incidentally, a central bank providing inflatable currency, and a graduated income tax, were two of the ten points in the Communist Manifesto for socializing a country.
House hand-picked the first Federal Reserve Board, naming Benjamin Strong as its Chairman. In 1914, Paul M. Warburg quit his $500,000 a year job at Kuhn, Loeb and Co. to be on the Board, later resigning in 1918, during World War I, because of his German connections.
The Banking Act of 1935 amended the Federal Reserve Act, changing its name to the Federal Reserve System, and reorganizing it, in respect to the number of directors and length of term.
Headed by a seven member Board of Governors, appointed by the President, and confirmed by the Senate for a 14 year term, the Board acts as an overseer to the nation's money supply and banking system,
The Board of Governors, the President of the Federal Reserve Bank in New York, and four other Reserve Bank Presidents, who serve on a rotating basis, make up the Federal Open Market Committee. This group decides whether or not to buy and sell government securities on the open market. The Government buys and sells government securities, mostly through 21 Wall Street bond dealers, to create reserves to make the money needed to run the government. The Committee also determines the supply of money available to the nation's banks and consumers.
There are twelve Federal Reserve Banks, in twelve districts: Boston (MA), Cleveland (OH), New York (NY), Philadelphia (PA), Richmond (VA), Atlanta (GA), Chicago( IL) , St. Louis (MO), Minneapolis (MN), Kansas City (KS), San Francisco (CA), and Dallas (TX). The twelve regional banks were set up so that the people wouldn't think that the Federal Reserve was controlled from New York. Each of the Banks have nine men on the Board of Directors; six are elected by member Banks, and three are appointed by the Board of Governors.
They have 25 branch Banks, and many member Banks. All Federal Banks are members, and four out of every ten commercial banks are members. In whole, the Federal Reserve System controls about 70% of the country's bank deposits. Ohio Senator, Warren G. Harding, who was elected to the Presidency in 1920, said in a 1921 Congressional inquiry, that the Reserve was a private banking monopoly. He said: "The Federal Reserve Bank is an institution owned by the stockholding member banks. The Government has not a dollar's worth of stock in it." His term was cut short in 1923, when he mysteriously died, leading to rumors that he was poisoned. This claim was never substantiated, because his wife would not allow an autopsy.
Three years after the initiation of the Federal Reserve, Woodrow Wilson said: "The growth of the nation...and all our activities are in the hands of a few men... We have come to be one of the worst ruled; one of the most completely controlled and dominated governments in the civilized world...no longer a government of free opinion, no longer a government by conviction and the free vote of the majority, but a government by the opinion and duress of a small group of dominant men."
In 1919, John Maynard Keynes, later an advisor to Franklin D. Roosevelt, wrote is his book The Economic Consequences of Peace: "Lenin is to have declared that the best way to destroy the capitalist system was to debauch the currency...By a continuing process of inflation, governments can confiscate secretly and unobserved, an important part of the wealth of their citizens...As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless..."
Congressman Charles August Lindbergh, Sr., father of the historic aviator, said on the floor of the Congress: "This Act establishes the most gigantic trust on Earth...When the President signs this Act, the invisible government by the Money Power, proven to exist by the Money Trust investigation , will be legalized...This is the Aldrich Bill in disguise...The new law will create inflation whenever the Trusts want inflation...From now on, depressions will be scientifically created... The worst legislative crime of the ages is perpetrated by this banking and currency bill." Lindbergh supposedly paid for his opposition to the Illuminati. When there appeared to be growing support for his son Charles to run for the Presidency, his grandson was kidnapped, and apparently killed.
Rep. Henry Cabot Lodge, Sr. said of the Bill (Congressional Record, June 10, 1932): "The Bill as it stands, seems to me to open the way to vast expansion of the currency...I do not like to think that any law can be passed which will make it possible to submerge the gold standard in a flood of irredeemable paper currency."
On December 15, 1931, Rep. Louis T. McFadden, who for more than ten years served as Chairman of the Banking and Currency Committee in the House of Representatives, said: "The Federal Reserve Board and banks are the duly appointed agents of the foreign central banks of issue and they are more concerned with their foreign customers than they are with the people of the United States. The only thing that is American about the Federal Reserve Board and banks is the money they use..." On June 10, 1932, McFadden, said in an address to the Congress: "We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks...Some people think the Federal Reserve Banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers...The Federal Reserve Banks are the agents of the foreign central banks...In that dark crew of financial pirates, there are those who would cut a man's throat to get a dollar out of his pocket...Every effort has been made by the Federal Reserve Board to conceal its powers, but the truth is the FED has usurped the government. It controls everything here (in Congress) and controls all our foreign relations. It makes and breaks governments at will...When the FED was passed, the people of the United States did not perceive that a world system was being set up here...A super-state controlled by international bankers, and international industrialists acting together to enslave the world for their own pleasure!"
On May 23, 1933, McFadden brought impeachment charges against the members of the Federal Reserve:
"Whereas I charge them jointly and severally with having brought about a repudiation of the national currency of the United States in order that the gold value of said currency might be given to private interests..."
"I charge them...with having arbitrarily and unlawfully taken over $80,000,000,000 from the United States Government in the year 1928..."
"I charge them...with having arbitrarily and unlawfully raised and lowered the rates on money...increased and diminished the volume of currency in circulation for the benefit of private interests..."
"I charge them...with having brought about the decline of prices on the New York Stock Exchange..."
"I charge them...with having conspired to transfer to foreigners and international money lenders, title to and control of the financial resources of the United States..."
"I charge them...with having published false and misleading propaganda intended to deceive the American people and to cause the United States to lose its independence..."
"I charge them...with the crime of having treasonably conspired and acted against the peace and security of the United States, and with having treasonably conspired to destroy the constitutional government of the United States."
"I charge them...with having arbitrarily and unlawfully taken over $80,000,000,000 from the United States Government in the year 1928..."
"I charge them...with having arbitrarily and unlawfully raised and lowered the rates on money...increased and diminished the volume of currency in circulation for the benefit of private interests..."
"I charge them...with having brought about the decline of prices on the New York Stock Exchange..."
"I charge them...with having conspired to transfer to foreigners and international money lenders, title to and control of the financial resources of the United States..."
"I charge them...with having published false and misleading propaganda intended to deceive the American people and to cause the United States to lose its independence..."
"I charge them...with the crime of having treasonably conspired and acted against the peace and security of the United States, and with having treasonably conspired to destroy the constitutional government of the United States."
In 1933, Vice-President John Garner, when referring to the international bankers, said: "You see, gentlemen, who owns the United States."
Sen. Barry Goldwater wrote in his book With No Apologies: "Does it not seem strange to you that these men just happened to be CFR and just happened to be on the Board of Governors of the Federal Reserve, that absolutely controls the money and interest rates of this great country. A privately owned organization...which has absolutely nothing to do with the United States of America!"
Plain and simple, the Federal Reserve is not part of the Federal Government, it is a privately held corporation owned by stockholders. That is why the Federal Reserve Bank of New York (and all the others) is listed in the Dun and Bradstreet Reference Book of American Business (Northeast, Region 1, Manhattan/Bronx). According to Article I, Section 8 of the U. S. Constitution, only Congress has the right to issue money and regulate its value, so it is illegal for private interests to do so. Yet, it happened, and because of a provision in the Act, the Class A stockholders were to be kept a secret, and not to be revealed. R. F. McMaster, who published a newsletter called The Reaper, through his Swiss and Saudi Arabian contacts, was able to find out which banks held a controlling interest in the Reserve: the Rothschild Banks of London and Berlin; Lazard Brothers Bank of Paris; Israel Moses Seif Bank of Italy; Warburg Bank of Hamburg and Amsterdam; Lehman Brothers Bank of New York; Kuhn, Loeb, and Co. of New York; Chase Manhattan Bank of New York; and Goldman, Sachs of New York. These interests control the Reserve through about 300 stockholders.
Because of the way the Reserve was organized, whoever controls the Federal Reserve Bank of New York, controls the system, About 90 of the 100 largest banks are in this district. Of the reportedly 203,053 shares of the New York bank: Rockefeller's National City Bank had 30,000 shares; Morgan's First National Bank had 15,000 shares; Chase National, 6,000 shares; and the National Bank of Commerce (Morgan Guaranty Trust), 21,000 shares.
A June 15, 1978 Senate Report called "Interlocking Directorates Among the Major U.S. Corporations" revealed that five New York banks had 470 interlocking directorates with 130 major U.S. corporations: Citicorp (97), J. P. Morgan Co. (99), Chase Manhattan (89), Manufacturers Hanover (89), and Chemical Bank (96). According to Eustace Mullins, these banks are major stock holders in the FED. In his book World Order. he said that these five banks are "controlled from London." Mullins said: "Besides its controlling interest in the Federal Reserve Bank of New York, the Rothschilds had developed important financial interests in other parts of the United States...The entire Rockefeller empire was financed by the Rothschilds."
A May, 1976 report of the House Banking and Currency Committee indicated: "The Rothschild banks are affiliated with Manufacturers Hanover of London in which they hold 20 percent...and Manufacturers Hanover Trust of New York." The Report also revealed that Rothschild Intercontinental Bank, Ltd., which consisted of Rothschild banks in London, France, Belgium, New York, and Amsterdam, had three American subsidiaries: National City Bank of Cleveland, First City National Bank of Houston, and Seattle First National Bank. It is believed, that the Rothschilds hold 53% of the stock of the U.S. Federal Reserve.
Each year, billions of dollars are "earned" by Class A stockholders, from U. S. tax dollars which go to the FED to pay interest on bank loans.
How about our Gold reserves. First, lets take a brief look at the history of the two metals used for currency. The Coinage Act of 1792 established a dollar consisting of 371.25 grains of pure silver, but was later replaced with a gold dollar consisting of 25.8 grains of gold. In 1873, the Coinage Act was passed, prohibiting the use of Silver as a form of currency, because the quantity being discovered was driving the value down. In 1875, after temporarily suspending gold convertibility during the Civil War greenback period, the U. S. was put more firmly on the gold standard by the Gold Standard Act of 1900. From 1900 to 1933, gold was coined by the U. S. Mint, and our paper currency was tied into the amount of gold held in the U. S. Treasury reserves.
In July, 1927, the directors of the Bank of England, the New York Federal Reserve Bank, and the German Reichsbank, met to plan a way to get the gold moved out of the United States, and it was this movement of gold which helped trigger the depression. By 1928, nearly $500 million in gold was transferred to Europe.
President Franklin D. Roosevelt accepted the advice of England's leading economist, John Maynard Keynes(1883-1946), a member of the Illuminati, who said that deficit spending would be a shot in the arm to the economy. Most of the New Deal spending programs to fight economic depression, were based on Keynes theories on deficit spending, and financed by borrowing against future taxes. In 1910, Lenin said: "The surest way to overthrow an established social order is to debauch its currency." Nine years later, Keynes wrote: "Lenin was certainly right, there is no more positive, or subtler, no surer means of overturning the existing basis of society than to debauch the currency...The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million is able to diagnose."
A Presidential Executive Order by Roosevelt on April 5, 1933, required all the people to exchange their gold coins, gold bullion, and gold-backed currency, for money that was not redeemable in precious metals. The Gold Reserve Act of 1934, known as the Thomas Amendment, which amended the Act of May 12, 1933, made it illegal to possess any gold currency(which was rescinded December 31, 1974). Gold coinage was withdrawn from circulation, and kept in the form of bullion. Just as the public was to return all their gold to the U. S. Government, so was the Federal Reserve. However, while the people received $20.67 an ounce in paper money issued by the Federal Reserve, the Reserve was paid in Gold Certificates. Now the Federal Reserve, and the Illuminati, had control of all the gold in the country.
In 1934, the value of gold increased to $35 an ounce, which produced a $3 billion profit for the Government. But when the price of gold increases, the value of the dollar decreases. Our dollar has not been worth 100 cents since 1933, when we were taken off of the Gold Standard. In 1974, our dollar was worth 221/2 cents, and in l983 it was only worth 38 cents. Since our money supply had been limited to the amount of gold in Treasury reserves, when the value of the dollar decreased, more money was printed.
The first United Nations Monetary and Financial Conference, held in Bretton Woods, New Hampshire, from July 1 to July 22, 1944, which was under the direction of Harry Dexter Wnite(CFR member, and undercover Russian spy), established the policies of the International Monetary Fund. Its goals were to strip the United States of its gold reserves by giving it to other nations; and to merge with their industrial capabilities; and their economic, social, educational and religious policies; to facilitate a one-world government.
Because of paying off foreign obligations and strengthening foreign economies, between 1958 and 1968, the amount of gold bullion in the possession of the U. S. Treasury dropped by 52%. Of the amount remaining, $12 billion was reserved by law for backing the paper money in circulation. Our money had been backed by a 25% gold reserve in accordance to a law that was passed in 1945, but it was rescinded in 1968. The amount of gold slipped from 653.1 million troy ounces in 1957, to 311.2 million ounces in 1968, which according to the Treasury Department, was due to sales to foreign banking institutions, sales to domestic producers, and the buying and selling of gold on the world market to stabilize prices. This was a loss of 341.9 million troy ounces. In August, 1971, gold was used only for world trade, because foreign countries wouldn't accept U. S. dollars. As of November, 1981, sources had indicated that the gold reserve had dropped to 264.1 million troy ounces.
Title 31 of the U. S. Code, requires an annual physical inventory of our gold supply, but a complete audit was never done, so officially, nobody knows what has occurred. After World War II, America had 70% of the World's supply of loose gold, but today, we may have less than 7%. Sen. Jesse Helms seemed to think that the OPEC nations have our gold, while others believe that 70% of the world's gold supply is being held by the World Bank, which is dominated by the financial grip of the Rothschilds and the Rockefellers. I have received information from a gentleman in Michigan which indicates that counterfeit $5,000 and $10,000 Federal Reserve Notes have been used to steal U.S. gold reserves. Illegal to own, these notes are actually checks which are used to transfer ownership of large amounts of gold without actually moving the gold itself. Using public records, he shows the serial numbers of the bills which were originally printed, and how there are now more in existence.
It has been reported that 40%(13,000 tons) of the world's gold is five levels below street level, in a sub-basement of the New York Federal Reserve Bank, behind a 90-ton revolving door. Some of it is American-owned, but most is owned by the central banks of other countries. It is stored in separate cubicles, and from time to time, is moved from one cubicle to another to satisfy international transactions.
Now lets look at Silver. After March, 1964, Silver certificates were no longer convertible to Silver dollars; and in March, 1968, near the conclusion of the Johnson Administration, Silver backing of the dollar was removed. On the 1929 series of notes, it read: "Redeemable in gold on demand at the United States Treasury, or in gold or lawful money at any Federal Reserve Bank." This was just like the Silver Certificate, which was guaranteed by a dollar in silver that was on deposit. On the 1934 series of notes, it read: "This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve Bank." The 1950 series bore the same information, but reduced it to three lines, and reduced the size of the type. In the 1953 series, the wording was totally removed, although the bottom portion contained a promise to "pay the bearer on demand." However, in 1963, even that message was removed, and our dollars became nothing more than worthless pieces of paper because they no longer met the legal requirements of a note, which meant it had to list an issuing bank, and amount payable, a payee or 'bearer', and a time for payment, which was 'on demand'.
Since 1933, the Reserve has been printing too much money, compared to the declining Gross National Product(GNP). The GNP is the accumulated values of services and goods produced in the country. If the GNP is 4%, then the money produced should only be about 5-6%, thus insuring enough money to keep the goods produced by the GNP in circulation. Additional social services, which are promised during election year rhetoric to gain votes, increase the Federal Budget, so more money is printed. Then the Government will cut the Budget, establish wage and price controls. The extra money in circulation decreases the value of the dollar, and prices go up. Simply put, too much money in circulation causes inflation, and that is what the Reserve is doing, purposely printing too much money in order to destroy the economy. On the other hand, if they would stop printing money, our economy would collapse.
The Reserve is responsible for setting the interest rate that member banks can borrow from the Reserve, thus controlling the interest rates of the entire country. So what it boils down to, the Federal Reserve determines the amount of money needed, which is created by the International Bankers out of nothing. Besides the face value, they charge the government 3¢ to produce each bill. The Federal government pays the Reserve in bonds(which are also printed by the Reserve), and then pay the bonds off at a high rate of interest. That interest will very soon become the largest item in the Federal Budget.
William McChesney Martin, a member of the Council on Foreign Relations, and Chairman of the Federal Reserve during the 'New Frontier' years of the Kennedy Administration, testified to the Federal Banking Committee, that the value of the dollar was being scientifically brought down each year by 3-31/2 %, in order to allow wages to go up. The reasoning behind this, was that the people were being made to think that they were getting more, when in fact they were really getting less.
The Congress has also contributed to this process, by approving Federal Budgets, year after year, which requires the printing of more money to finance the debt, which is now over $ 4,800,000,000,000(4.8 trillion). When Wilson was President, the debt was about $1 billion, and in 1974, the debt was about $1 trillion.
In 1937, Rep. Charles G. Binderup of Nebraska, realizing the consequences of the Federal Reserve System, called for the Government to buy all the stock, and to create a new Board controlled by Congress to regulate the value of the currency and the volume of bank deposits, thus eliminating the FED's independence. He was defeated for re-election. Others have also tried to introduce various Bills to control the Federal Reserve: Rep. Goldborough (l935), Rep.Jerry Voorhis of California(l940, 1943), Sen. M. M. Logan of Kentucky, and Rep. Usher L. Burdick of North Dakota.
Rep. Wright Patman of Texas (who was the House Banking Chairman until 1975), said in 1952: "In fact there has never been an independent audit of either the twelve banks of the Federal Reserve Board that has been filed with the Congress...For 40 years the system, while freely using the money of the government, has not made a proper accounting." Patman, said that the Federal Open Market Committee (who, in addition to the Board of Governors, decide the country's monetary policy) is "one of the most secret societies. These twelve men decide what happens in the economy...In making decisions they check with no one - not the President, not the Congress, not the people." Patman also said: "In the United States we have, in effect, two governments...We have 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." During his career, Patman has sought to force the FED to allow an independent audit, lessen the influence of the large banks, shorten the terms of the FED Governors, expose it to regular Congressional review just like any other Federal agency, and to have only officials nominated by the President and confirmed by Congress to be on the Federal Open Market Committee. In 1967, Patman tried to have them audited, and on January 22, 1971, introduced HR11, which would have altered its organization, diminishing much of its power. He was later removed from the Chairmanship of the House Banking and Currency Committee, which he held for years.
On January 22, 1971, Rep. John R. Rarick of Louisiana introduced HR351: "To vest in the Government of the United States the full, absolute, complete, and unconditional ownership of the twelve Federal Reserve Banks." He said: "The Federal Reserve is not an agency of government. It is a private banking monopoly." He was later defeated for re-election. During the 1980's, Rep. Phil Crane of Illinois introduced House Resolution HR70 that called for an annual audit of the FED (which never came to a full vote); and Rep. Henry Gonzales of Texas introduced HR1470, that called for the repeal of the Federal Reserve Act.
The Federal Reserve System has never been audited, and their meetings, and minutes of those meetings, are not open to the public. They have repelled all attempts to be audited. In 1967, Arthur Burns, the Chairman of the Federal Reserve, said that an audit would threaten the independence of the Reserve.
In 1979, after dismissing Secretary of Treasury, Michael Blumenthal, President Jimmy Carter offered the position to American Illuminati chief, David Rockefeller, the CEO of Chase-Manhattan Bank, as did Nixon, but he turned it down. He also turned down the nomination for the Chairmanship of the Federal Reserve Board. Carter then appointed Paul Volcker as Chairman. Volcker graduated from Princeton with a degree in Economics, and from Harvard, with a degree in Public Administration. He was an economist with the Federal Reserve Bank of New York(1952-57), worked at the Chase Manhattan Bank(1957-61), was with the U.S. Treasury Department(l961-65), Deputy Under Secretary for Monetary Affairs(1963-65), Under Secretary for Monetary Affairs(1969-74), and President of the New York Federal Reserve Bank(1975-79). In the Nixon Administration, as the Under Secretary for Monetary Policy and International Affairs, the executive branch official who works most closely with the Federal Reserve, he and Treasury Secretary John Connally helped formulate the policy that took us off the gold standard in 1971, because of the dwindling gold reserves at Fort Knox. Volcker was chosen because he was the "candidate of Wall Street". He was a Trilateralist, and a major Rockefeller supporter. Bert Lance, the Georgia banker and political advisor to Carter who became his Budget Director, and was later forced to resign, contacted Gerald Rafshoon, a Carter aide, and said that if Volcker would be appointed, he would be "mortgaging his re-election to the Federal Reserve." Lance predicted that he would bring high interest rates and high unemployment. He was confirmed by the Senate Banking Committee in August, 1979, replacing Arthur Burns, an Austrian-born economist who was a CFR member with close ties to the Rockefellers. Volcker was against a gold-back dollar, and gold being used as a form of currency. He attempted to tighten the money situation in order to curb the 10% annual growth in the money supply, and to ease the pressure of loan demand. The result was a dramatic increase in interest rates, which climbed to 131/2 % by September, 1979, and then soared to 211/2 % by December, 1980.
Conjecture could dictate that this economic decline was purposely engineered to cause the political decline of Carter. In response to the rising interest rates, Carter said: "As you well know, I don't have control over the FED, none at all. It's carefully isolated from any influence by the President or the Congress. This has been done for many generations and I think it's a wise thing to do." Even though inflation had skyrocketed to all-time highs, Reagan kept Volcker on. It was Volcker who started the collapse of the U. S. economy.
During the 1970's, many banks had left the Federal Reserve, and in December, 1979, Volcker told the House Banking Committee that "300 banks with deposits of $18.4 billion have quit the FED within the past 41/2 years," and that another 575 of the remaining 5,480 member banks, with deposits of $70 billion, had indicated that they intended to withdraw. He said that this would curtail their control over the money supply, and that led Congress, in 1980, to pass the Monetary Control Act, which gave the Federal Reserve control of all banking institutions, regardless if they are members or not.
Alan Greenspan, who became the Chairman of the Federal Reserve Board in 1987, is a member of the Council of Foreign Relations. He has a bachelor's and master's, degree, and a doctorate in Economics from New York University. He met Ayn Rand, the author of Atlas Shrugged, in 1952, and they became friends. It is from her that he learned that capitalism "is not only efficient and practical, but also moral." In February, 1995, the seventh increase in the interest rate, within the period of a year, took place. This put Greenspan in the limelight, as well as the Federal Reserve. It was very interesting how the media spin doctors churned out information that totally skirted the issue concerning the FED's actual role in controlling our economy.
In the mid-1970's, Paper 447, Article 3, from the World Bank, said that the World economy would be fairly stable until 1980, when it would begin falling, in domino fashion. On October 29, 1975, the Wall Street Journal printed a comment by H. Johannes Witteveen, Managing Director of the United Nation's International Monetary Fund, that the IMF "ought to evolve into a World Central Bank...to prevent inflation." Dr. H. A. Murkline, Director of the International Institute University in Irving, Texas, wrote in World Oil: 1976, that he projected that the Federal Government could only hold out till the end of 1981. Dow Theory Letters, Inc. reported that by 1982, the cost of dealing with the national debt "would eat up all the government tax money available."
The Robbins Report of January 15, 1978, said: "If Carter introduces Bancor, which will be the yielding of our dollar to the ECU (European Currency Unit), this is what will happen: look for hyperinflation and collapse of all the world's paper money before 1985." Julian Snyder said in the International Money Line of February, 1978: "The United States is trying to solve its problem through currency depreciation (debasement)...it will not work. If the crash does not occur this year, it could be postponed until 1982."
On March 13, 1979, while meeting at Strasbourg, France, the Parliament of Europe, which governs the European Economic Community (Common Market), oversaw the establishment of a new European money system. Known as the ECU, it was backed by 20% of the participating countries' gold reserves (about 3,150 tons). What little strength our dollar had, came from the fact that all nations buying oil from OPEC, had to use U. S. dollars. Then came the word in March, 1980, from Arab diplomatic sources at the United Nations that the Chase Manhattan Bank was making plans to drop the dollar in lieu of the ECU.
Dr. Franz Pick, a well known authority on world currency, said in December, 1979, in the Silver and Gold Report: "The most serious problem we face today is the debasement of our currency by the government. The government will continue to debase the dollar until...within 12-24, months it will shrink to l¢...at which time Washington will be forced to create the new hard currency...A currency reform is nothing but a fancy name for state bankruptcy...A currency reform completes the expropriation of all kinds of savings...it will wipe out all public and private bonds, most pensions; all annuities, and all endowments."
Even though our economy continues to hang on, more and more financial analysts are talking about the disastrous condition of our financial system. In 1992, independent Presidential candidate H. Ross Perot garnered nearly 20% of the vote by making the state of the economy an issue during the campaign. In 1993, Sen. Bob Kerrey (Democrat, NE) promised to support President Bill Clinton's Budget Plan, if Clinton would appoint a Committee to study the condition of the American economy. The President established a 32-member bipartisan committee and in August, 1994, they issued their report. According to the committee's findings, by the year 2012, unless drastic changes are made, we won't even be able to pay the interest on the national debt. Knowing this, if the federal government allows the current trend to continue, then it is obvious that the destruction of the American economy has been part of a deliberate plot to financially enslave our nation.
Dr. Pick said that late 1983, or early 198~ was the target date for the "new money". Carl Mintz, a staff member of the House Banking Committee, had said: "I believe it's in the billions of dollars, and it's buried in lots of places." It is believed to be already printed, and stored at the Federal Reserve Emergency Relocation Facility in Culpepper, Virginia, which is built into the side of a mountain, and would be able to continue functioning during the aftermath of a nuclear or natural disaster; and the 200,000 sq. ft. Federal Reserve underground facility in Mt. Weather, Virginia (near Berryville), which is the primary relocation area for the President, Cabinet Secretaries, Supreme Court Justices, and several thousand federal employees (Congress would be relocated to an underground facility in White Sulphur Springs, West Virginia). When our monetary system is finally destroyed, the new money will be issued.
Rep. Ron Paul, Republican from Texas, who was on the Committee on Banking, Finance and Urban Affairs, wrote about the new money in a letter to Charles T. Roberts, Executive Vice-President of the Hull State Bank in Texas: "In a closed briefing for the members of the House Banking Committee on November 2nd, representatives of the Bureau of Engraving and Printing, the Federal Reserve, and the Secret Service described plans for making changes in Federal Reserve Notes beginning in 1985(although the long range target is 1988)...These changes, which will probably include taggents, security threads, and colors, and may include holograms, diffraction gratings, or watermarks, will be made in coordination with six other nations: Canada, Britain, Japan, Australia, West Germany and Switzerland. Japan, for example, will begin recalling its present currency in November, 1984, and have it nearly completed within six months...According to the government, the only reason for the currency changes is to deter counterfeiting. Although it was admitted by one spokesman in the group that there would have to be a call-in of our present currency for new currency to work, the spokesmen for the government were adamant in saying that there was no other motive for a currency change..." According to law, the Treasury Secretary has the authority to change the currency.
Over $3 million had been spent under "counterfeit prevention" authority for the development of the new money, which according to the Currency Design Act (HR6005) hearings, would be issued by the Federal Reserve Board. It was first reported by the Patterson Organization in Cincinnati, Ohio, that in a July, 1983 market survey in Buena Park, California, people were shown proposed designs for "new U. S. dollar bills." The variations shown, consisted of each denomination being a different color; Federal Reserve seals replaced with a design utilizing reflective ink; and other optical devices like holograms (a process which produces a 3-dimensional image which can change color depending on the angle it is viewed), and multilayer diffraction gratings (similar to a hologram); as well as bills containing metal security threads, and planchettes (red and blue colored discs incorporated into the paper, similar to threads) to trigger scanning equipment which would detect its presence, and to sort cash faster. A consumer research firm from Illinois was hired by the Treasury Department to gauge the public's reactions to the various designs.
It was shown that a drastic change would not be accepted, so a process of incrementalism was adopted. It was decided that the Bureau of Printing and Engraving would have a fine metallic strip running through the currency, leaving the basic design intact; however, they later decided to use a clear imprinted polyester strip, woven into the paper, running vertically on the left side of the Federal Reserve Seal. The length of the translucent polyester filament reads "USA1OO" for $100 bills, and "USA5O" for $50 bills, and can only be read if held up to direct light. It was reported that a company called Checkmate Electronics, Inc., which manufactures the equipment needed to scan checks, scanned the new money, and found the strip to contain "machine detectable" aluminum. Their scan produced an indecipherable bar code. Though the basic design did not change, there is microscopic type printed around the picture which reads, "The United States of America", but appears to only be a line. This currency was introduced in August, 1991, with $100, $50 bills and $20 bills, and the Government discontinued printing any of the old money, and began emptying their vaults to get rid of the old bills.
The International Monetary Fund has been responsible for the decline of our dollar, and our present economic situation. The first step to initiating this "crash" was the Monetary Control Act of 1980, which instead of a 6:1 ratio, mandated the Federal Reserve to only have one dollar on deposit for every twelve they create. Further plans were made during a meeting of Western leaders at Williamsburg, Virginia, on May 28-30, 1983.
International cooperation has been intense to coordinate currency changes among its member governments. In 1985, officials from the Morgan Bank in New York met with the Credit Lyonnais Bank in France. They established the European Currency Unit Banking Association (ECUBA), to get world cooperation for a unified currency, and had support from bankers in Europe, Japan, and the United States. It was an offshoot of the Banking Federation of the European Community (BFEC), which has been engaged in shutting down small banks in order to develop a conglomerate of a few huge banks. In October, 1987, the Association for the Monetary Union of Europe (AMUE), secretly met and recommended that the ECU (European Currency Unit) replace existing national currencies; and that all European Central Banks be combined into one and issue the ECU as the official unified currency (which is scheduled to occur in the year 2000). It is believed that the plan is to have only three central banks in the world: The Federal Reserve Bank, the European Central Bank, and the Central Bank of Japan. In a June, 1989 hearing of the Senate Banking Securities Subcommittee, Alan Greenspan, Chairman of the Federal Reserve, said that exchange rates could be fixed in order to solve the problem of uniformity between the currencies of various nations.
Many countries had planned to come out with new money, such as Switzerland, the United Kingdom, Japan, Canada, France, Germany, Australia, and Brazil. Of the countries that already had, most currencies had a common 1" square, usually on the left side of the bill. Held over a light, a hologram appears on the spot, barely visible to the naked eye, which cannot be reproduced on a copier. It is believed that this spot is reserved for a central World Bank overprint. They also contain metallic strips that can be detected when they pass through scanners at airports and international borders.
On May 10, 1994, USA Today carried a page-one article concerning major changes in the design of the paper currency, which is expected to take place by the end of the year. Officials from the Department of the Treasury, the Secret Service, and the Bureau of Engraving said that the changes were necessary to combat counterfeiters. The minor changes they had made before, for the same reason, had stopped with the twenty dollar bill, which kind of leads me to believe that the changes were just a smokescreen to prepare us for bigger changes in the appearance of the money. The article was accompanied with a picture of the new $100 bill, with a larger portrait of Benjamin Franklin which has been pushed to the right side of the bill, and the Eagle in the center. The line "United States of America" appears along the top right, and the line "One Hundred Dollars" appears on the lower left, with the serial number being placed over that. There is a conspicuous open spot on the left side of the bill, very similar to the new currency in other countries.
Some financial experts have theorized that when every denomination is changed over to the new money, that the business sector may not want to accept old bills, which would then become worthless, and could create a financial emergency. Federal officials have said that the old money would be accepted, but scrutinized. It has been suggested that the government could really take advantage of the situation, that in order for people to exchange their old money for new, an exchange rate may be determined which would benefit the economy. For example, it may take two old dollars to exchange for a new one.
Or perhaps, the new money is just a transitional currency, the first step in testing the public's willingness to accept economic change. The Reserve had about seven currency sorting machines which counted up to 55,000 bills per minute, but by the end of 1983, they were to receive 110 new machines which could count up to 72,000 bills per minute. Jane Kettleson, an economic consultant to the U. S. Paper Exchange, said that shortly, "the FED will have the capability to physically replace the entire U. S. currency in circulation in just four days time."
The institution of a common world-wide currency may be delayed because of the possibility of moving right to a cashless system, making paper money obsolete. If this is the case, there would be a massive campaign to promote debit cards and a move to accommodate their use in all aspects of business. The Visa MagiCard seems to be the first step towards a national debit card. With this card, you can make purchases at any of the 10 million merchants who accept Visa, and have the amount electronically deducted from your checking account. Financial experts believe that in only a few years, there will be more debit cards than credit cards.
In a letter to Edward M. House (President Wilson's closest aide), dated November 23, 1933, Franklin D. Roosevelt said: "The real truth of the matter is, and you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson." Henry Ford, founder of the Ford Motor Company, said: "It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." In 1957, Sen. George W. Malone of Nevada said before Congress about the Federal Reserve: "I believe that if the people of this nation fully understood what Congress has done to them over the past 49 years, they would move on Washington: they would not wait for an election...It adds up to a preconceived plan to destroy the economic and social independence of the United States."