Because there was a lot of silver in
the U.S. the European bankers promoted the Gold standard. The
Contraction Act was passed to start removing the green backs. The
National Banks started contracting the money supply causing the post
Civil war depression. The idea was to show that a strong central
bank was required, i.e. they wanted the Federal Reserve banking system.
This was accomplished by calling in loans and no making new
loans. In this case there was no business cycle, rather a
manipulation of the money supply. Also silver coins were retired
In 1872 a man named Ernest Syed (Google
) was given 100,000 pounds
Sterling by the Bank of England and sent to the U.S. to bribe
Congressman to get silver demonetized. He was told if that
wasn't enough he could draw as much more as was necessary. The
next year Congress passed the Coinage Act of 1873 (Wiki
the Crime of 1873 (Wiki
promoted Gold as a standard. Samuel Hooper
) was the
Congressman who took the bribe and introduced the bill in the House of
Representatives. He admitted that Syed actually drafted the
legislation. In 1874 Syed addmitted how was behind the scheme:
"I went to America in the winter of
1872-1873, authorized to secure, if I could, the passage of a bill
demonetizing silver. It was in the interest of those I
represented - the governors of the Bank of England - to have it
done. By 1873, gold coins were the only form of coin money."
The bankers supported William McKinley (Wiki
supported the Gold Standard and had factories tell their workers that
if Bryan won the election they would be out of work. McKinley won.
J.P Morgan (Wiki
working for the Rothschild family (Wiki
) created the
panic of 1907 and then solved it by printing money with not reserve
whatsoever. He was praised by the president of Princeton
University Woodrow Wilson (Wiki
recommended that J.P Morgan and a small group of men head the U.S. in
financial matters. This lead to the creation of the Federal Reserve
The Panic of 1907 (Wiki
scam according the C.A. Lindbergh (Wiki
result of the 1907 panic the National Monetary Commission (Wiki
by the Aldrich-Vreeland Act (Wiki
was packed with Morgan's friends and cronies.
Chairman: Nelson W. Aldrich (Wiki
In 1906 Aldrich sold his interest in
the Rhode Island street railway system to the New York, New Haven
and Hartford Railroad
, whose president was J.
's loyal ally, Charles Sanger Mellen
As soon as the commission was setup Aldrich embarked on a 2 year tour
of Europe where he consulted with the central bankers of England,
France and Germany. The trip cost the taxpayers $300,000.
Nov 27, 1910 just after he returned, a number of his friends took his
private rail car to Jekyll Island (Wiki
History of the Federal Reserve System (Wiki
"Centralized banking was met with much
opposition from politicians, who were suspicious of a central bank and
who charged that Aldrich was biased due to his close ties to wealthy
bankers such as J.P. Morgan
daughter's marriage to John D. Rockefeller, Jr.
In 1910, Aldrich and executives representing the banks of J.P. Morgan,
Rockefeller, and Kuhn, Loeb & Co.
, secluded themselves
for 10 days at Jekyll Island
The executives included
Frank A. Vanderlip
president of the National City Bank of
New York, associated with the Rockefellers; Henry Davison, senior
partner of J.P. Morgan Company; Charles D. Norton, president of the
First National Bank of New York; and Col.
(Kuhn, Loeb, & Co. (Wiki
him $5000,000 per year salery to lobby for the passage of a privatley
owned central bank in America)
of Kuhn, Loeb, & Co. directed the
proceedings and wrote the primary features of what would be called the
Aldrich Plan. Warburg would later write that "The matter of a uniform
discount rate (interest rate) was discussed and settled at Jekyll
Island." Vanderlip wrote in his 1935 autobiography From Farmboy to
"I was as secretive, indeed I was as
furtive as any conspirator. Discovery, we knew, simply must not happen,
or else all our time and effort would have been wasted. If it were to
be exposed that our particular group had got together and written a
banking bill, that bill would have no chance whatever of passage by
Congress…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.”
Jacob Schiff (Wiki
Warburg's partner in Loeb & Co. He was the grandchild of the
Schiff who shared the Green Field house as the first Rothschild.
Schiff was to spend $20 million to overthrow the Czar of Russia.
(because of their poor treatment of Jews).
Three banking families: Rothschild, Warburg & Schiff were
interconnected by marriage over generations just as the American
banking families of the: Morgans, Rockefeller & Aldrich were
At the Jekyll Island meeting all 7 men
were cautioned to only address each other by their first names so the
servants would not know who they were. Later one of the
participents in the meeting Frank A. Vanderlip (Wiki
), pres of
Citi Bank of NY and a representive of the Rockefeller family, wrote
about the meeting in the Saturday Evening Post Feb 9, 1935.
Nelson Aldrich wrote in a magazine:
"Before passage of this Act, the New
York Bankers could only dominate the reserves of New York. Now,
we are able to dominate the bank reserves of the entire country."
Industry was financing expansion from
profits rather than making loans, something the bankers did not
The biggest problem for the meeting was choosing a name for the new
privatly owned central bank. The idea was to give the impression
that the purpose was to stop bank runs and to conceal it's monopoly
character. Aldrich insisted that it be called the Aldrich
Bill. The new central bank would be given a monopoly to create
money out of nothing.
Bonds are promises to pay or IOUs. At the due date the government
pays back the principle plus interest and then the bond is
destroyed. Here's how the money making process works:
1. The Federal Open Market Committee (Wiki
purchase of U.S. Bonds on the open market.
2. The bonds are purchased by the Fed. from whoever is offering them
3. The Fed pays for the bonds with electronic credits to the seller's
bank, these credits are based on nothing.
4. The banks use these deposits as reserves. They can loan out
over ten times the amount of their reserves to new borrowers, all at
To reduce the money supply the Fed sells bonds to the public.
Problems created at the Jekyll Island meeting:
1. Misdirected banking reform,
2. Prevented Greenbacks from making a comeback,
3. Delegated to the bankers the right to create 90% of our money
supply. (Fractional Reserve Banking (Wiki
4. Centralized overall control of our nation's money supply in the
hands of a few men.
5. Established a Central Bank with a high degree of independence from
effective political control. (the banks contraction caused the great
depression of the 1930s. (Wiki
The bank is run by a board of governors appointed by the president and
approved by the Senate. The bankers just buy the politicians to
get their friends on the board.
The NY banks put up a $5 million "educational fund" to finance
professors at respectable universities (shades of the 2008 meltdown
where the same thing was done) to endorse the new bank. It didn't
work, the Aldrich Bill was knows as the Money Trust bill by bankers.
Charles A. Lindbergh said in Congress:
"The Aldrich Plan is the Wall Street
Plan. It means another panic, if necessary, to intimidate the people.
Aldrich, paid by the government to represent the people, proposes a
plan for the trusts instead."
The Republicans never brought the bill
to a vote. So the bankers changed to the Democrats and financed
Woodrow Wilson's campaign for president. (Note: the idea of this
page is that there's no difference between Democrats and Republicans on
key issues, and this is another example of that.) "Bernard Baruch
brought Wilson to the Democratic Party Headquarters in New York in
1912, 'leading him like one would a poodle on a string.' Wilson
receiveed an 'indoctrination course' from the leaders convened
there..." - James Perloff
The Jacksonians became the Greenbackers who became the hard core
supporters of William Jennings Bryan (Wiki
know about the Baruch meeting with Wilson and supported
Wilson. The Democrats pretended to oppose the Aldrich bill during
Louis McFadden (D-PA) (Wiki
on this 20 years later:
"The Aldrich bill was condemned in the
platform...when Woodrow Wilson was nominated...The men who ruled the
Democratic party promised the people that if they were returned to
power there would be no central bank established here while they held
the reins of government. Thirteen months later that promise was
broken, and the Wilson administration, under the tutelage of those
sinister Wall Street figures who stood behind Colonel House (Wiki
established here in our country the worm-eaten monarchical institution
of the 'king's bank' to control us from the top downward, and to
shackle us from the cradle to the grave."
The new plan was called the Federal
Reserve System. It was put forward as the Glass Owen Bill (aka:
Federal Reserve Act) (Wiki
Paul Warburg explained to Congress:
"Brushing aside the external
differences affecting the "shells", we find the "kernals" of the two
systems very closely resembling and related to one another." This
was a private message, the public message was different.
Frank Vanderlip said later in a
"Although the Aldrich Federal Reserve
Plan was defeated when it bord the name Aldrich, neverless its
essential points were all contained in the plan that finally was
Alfred Crozier (Ohio attorney) told Congress:
"The . . bill grants just what
Wall Street and the big banks for twenty-five yreas have been striving
for - private instead of public control of currency. It [the
Glass-Owen bill] does this as completely as the Aldrich Bill.
Both measures rob the government and the people of all effective
control over the public's money, and vest in the banks exclusively the
dangerous power to make money amoung the people scarce or plenty."
The bill was passed on 23 December 1913
when most Senators were on Christmas break. They had been assured
by the leadership that nothing would be done until they returned.
Charles A. Lindbergh (R-MN) said in
"This Act establishes the most gigantic
trust on earth. When the President signs this bill, the invisible
government by the Monetary Power will be legalized. The people
may not know it immediately, but the day of reckoning is only a few
yeard removed... The worst legislative crime of the ages is perpetrated
by this banking bill."
To guarantee the interest payments a
federal income tax was needed. In 1895 the supreme
court had ruled that a similar federal income tax was unconstitutional.
In 1909 they found a corporate income tax law unconstitutional.
To get around this Nelson Aldrich used a constitutional admendemnt to
put the income tax in place. [Note: the leglislative
has the power to override the supreme
The proposed 16th
to the states for approval. But it was not ratified by
the necessary 2/3 of the states, so there may be a legal problem with
it. Senator Aldrich got the 16th
Amendment passed by
Charles A. Lindbergh (R-MN) said in Congress:
"To cause high prices, all the Federal
Reserve Board will do will be to lower the rediscount rate...,
producing an expansion of credit and a rising stock market; then
when...business men are adjusted to these conditions, it can
check...prosperity in mid-career by arbitrarily raising the rate of
interest. It can sause the pendulum of a rising and falling
market to swing back and forth by slight changes in the discount rate,
or cause violent fluctuations by a greater rate variation, and in
either case it will possess inside information as to financial
conditions and advance knowledge of the coming change, either up or
down. This is the strangest, most dangerous advantage ever placed
in the hands of a special privilege class by any Government that ever
existed. The system is private, conducted for the sole purpose of
obtaining the greatest possible profits from the use of other people's
money. They know in advance when to create panics to their
advantage. They also know when to stop panic. Inflation and
deflation work equally well for them when they contrl finance..."
A year later he said: "Already the Federal Banks have already
cornered Gold and Gold certificates."
Louis McFadden (D-PA) (Wiki
) chair of
the House Banking and Currency committee (1920-1931) remarked that the
Federal Reserve act brought about:
"A super-state controlled by
international bankers and international industrialists acting toghther
to enslave the world for their own pleasure."
Wrigtht Patman (D-TX) (Wiki
"In the United States today we have in
effect two governments... We have the duly constituted Government...
Then we have an independent, uncomtrolled and uncoordinated government
in the Federal Reserve System, operating the money power which are
reserved to Congress by the Constitution."
Thomas A. Edison said:
"If our nation can issue a dollar bond,
it can issue a dollar bill. The element that makes the bond good,
makes the bill good also. The difference between the bond and
bill is the bond lets money brokers collect twice the amount of the
bond and an additional 20% , where as the currency pays nobody but
those who contribute directly in some useful way. It is absurd to
say that our country can issue $30 million in bonds and not #30 million
in currency. Both are promises to pay, but the one promise
fattens the usurers and the other helps the people."
Widrow Wilson later said:
"We have come to be one of the worst
ruled, one of the most completely controlled governments in the
civilized world - no longer a government of free opinion, no longer a
government by... a vote of the majority, but a government by the
opinion and duress of a small group of dominant men. Some of the
biggest men in the United States, in the field of commerce and
manufacture, are afraid of something. They know that there is a
power somewhere so organized, so subtle, so watchful, so interlocked,
so complete, so pervasive, that they had better not speak above their
breath when they speak in condemnation of it." 1924: "I have
unwittenly ruined my government."
Nothing creates debts like
warfare. In W.W. I the German Rothschild family loaned money to
the Germans, the British Rothschild family loaned money to the British
and the French Rothschild family loaned money to the French. In
America J.P. Morgan was the sales agent for war materials to both the
British and French. Six months into the war Morgan became the
largest consumer on Earth spending $10 million per day. His
offices at 23 Wall St were mobbed by salesmen. Wilson appointed
Bernard Baruch (Wiki
the War Industries Board (Wiki
1917. Both Baruch and the Rockefeller made $200 million from
Another motive for the war was revenge. Garry Allen explains why
the banks would back Communism:
"If one understands that socialism is
not a share-the-wealth program, but is in reality a method to
consolidate and control the wealth, then the sccming paradox of
super-rich men promoting socialism becomes no paradox at all.
Instead, it becomes logical, even the perfect tool of power-seeking
megalomanicacs. Communism, or more accuratley, socialism, is not
a movement of the downtrodden masses, but of the economic elite."
Willard Cleon Skousen (Wiki
Willard Cleon Skousen said:
"Power from any source tends to create
an appetite for additional power... It was almost inevitable that the
super-rich would one day aspire to control not only their own wealth,
but the wealth of the whole world. To achieve this, they were
perfectly willing to feed the ambitions of the power-humgry political
conspirators who were committed to the overthrow of all existing
governments and the establishments of a central world-wide
dictatorship." [Sure sounds like the PNAC
Vladimir Lenin (Wiki
) recognized that he
was not in control of something:
"The state does not function as we
desired. The car does not obey. A man is at the wheel and
seems to lead it, but the car does not drive in the desired
direction. It moves as another force wishes."
Louis McFadden (D-PA) (Wiki
) chair of
the House Banking and Currency committee (1920-1931) explained it this
"The course of Russian history has,
indeed, been greatly affected by the operations of international
bankers... The Soviet Government has been given United States
Treasury funds by the Federal Reserve Board... acting through the Chase
Bank. England has drawn money from us through the Federal Reserve
banks and has re-lent it at high rates of interest to the Soviet
Government... The Dnieperstory Dan (Wiki
built with funds unlawfully taken from the United States Treasury by
the corrupt and dishonest Federal Reserve Board and the Federal Reserve
In 1992 the Washington Times reported
that Boris Yeltsin (Wiki
most of the incoming foreign aid was being siphoned off
"straight back to the coffers of western banks in debt service."
Next the money changers went after world government as in The League of
not popular and died in Congress.
Warren Harding (R-) (Wiki
) won the
election in by a landslide and became president in 1921. He was
aginst both Bolshevism and the League of Nations, This was the
start of "The Roaring Twenties" (Wiki
The head of the Federal Reserve Bank, Benjimen Strong (Wiki
in secret with the governor of the Bank of England, Montague Norman (Wiki
determined to replace the Gold that England had lost to the
U.S. during W.W. I. to return the Bank of England to it's former
dominance of world finance. Under the presidencies of Harding and
debt was cut down by 38% down to $16 billion. Taxes
were cut, tariffs were raised and revenue grew. It was time to
crash the American economy. The Federal Reserve began flooding
the country with money, increasing the money supply by 62%.
In the March 27, 1927 edition of the NYT Teddy Roosevelt (Wiki)
"These international bankers and
Rockefeller-Standard Oil interests control the majority of newspapers
and the columns of these papers to club into submission or drive out of
public office officials who refuse to do the bidding of the powerful
corrupt cliques which compose the invisible government."
Businesses were borrowing and there was
speculation in the stock market. Then in April 1929, Paul
Warburg, the father of the Federal Reserve, sent out a secret advisory
warning his friends that a collapse and a nation wide depression was
certain. In August of 1929 the Fed began to tighten money.
It is not a conceidence that the biographys of all the Wall Street
giants of that era: John D. Rockefeller, J.P. Morgan, Joseph
Kennedy, Bernard Baruch, etc. all marveled that they got out of
the stock market just before the crash and put all their assets in cash
On Oct 24, 1929 the big New York
bankers called in their 24 hour broker loans. This meant that
both brokers and customers had to dump their stocks no matter what
price they would get. It became known as Black Thursday (Wiki
the peak of the selling Bernard Baruch brought Winston Churchill in to
impress him with his power.
Louis McFadden knew who to blame. He accused the Fed and
international bankers of orchestrating the crash.
"It was not accidental. It was a
carefully contrived occurence... The international bankers sought to
bring about a condition of despair here so that they might emerge as
rulers of us all."
In Feb 1931 McFadden put it this way:
"I think it can hardly be disputed that
the statesman and financiers of Europe are ready to take almost any
means to reacquire rapidly the gold stock which Eurpoe lost to America
as the result of Wolrd War I."
Within a year $40 billion had been
lost. Joseph Kennedy's worth grew from $4 million in 1929 to over
$100 million by 1935. Instead of loosening the money supply to
help, the Fed contracted the money supply thereby deepening the
depression. Milton Friedman (Wiki
) said in
Jan 1996 on NPR:
"The Federal Reserve definitely caused
the Great depression by contracting the amount of currency in
circulation by one-third from 1929 to 1933."
Louis McFadden warned Congress:
"After WWI, German fell into the hands
of the German international bankers. Those bankers bought her and
they now own her, lock, stock and barrel. They have purchased her
industries, they have mortages on her soil, they control her
production, they control all her public utilities. The
international German bankers have subsidized the present Government of
Germany and they have also supplied every dollar of the money Adolph
Hitler has used in his lavish camaign to build up a threat to the
government of Bruening. When Bruening fails to obey the orders of
the German international Bankers, Hitler is brought forth to scare the
Germans into submission... Through the Federal Reserve Board over
$30 billions of American money has been pumped into Germany...
You have all heard of the spending that has taken place in Germany...
modernistic dwellings, her great plaetariums, her gymnasiums, her
swimming pools, her fine public highways, her perfect factories.
All this was done on our money. All this was given to Germany
through the Federal Reserve Board. The Federal Reserve Board ...
has pumped so many billions of dollars into Germany that they dare not
name the total."
When FDR was elected he put through
bills that gave the Fed more power, then they eased off on the money
supply. On March 4, 1933 FDR said:
Practices of the unscrupulous money
changers stand indicted in the court of public opinion, rejected by the
hearts and minds of men... The money changers have fled from their high
seats in the temple of our civilization."
Two days later FDR declared a bank
holiday and closed all banks. Later that year FDR outlawed
private ownership of gold bullion and gold coins with the exception of
rare coins. This amounted to a confiscation. Those who
turned in their gold were paid $20.66 per ounce.
No one would claim authorship of the confiscation bill. FDR sold
idea that it was necessary to get out of the depression. By 1936
Knox starting to fill with gold. By 1935 the price of gold went
per ounce for foreigners.
W.W. II caused the U.S. dept to increase from $43 billion in 1940
$257 billion in 1950, up 598%. A similar thing happened in all
other countried involved in the war. After the war there were two
economic camps: Communist command vs. monopoly capitalists. Next
the global government or new world order.
1. Central bank domination of the national economics worldwide.
2. Centralize regional economies--Eurpoean Monetary Union, NAFTA.
3. Centralize the world economy--World Central Bank, GATT (Wiki
) (abolish tariffs)
In 1971 Ronald Reagan's friends urged
him to study returning to a gold standard as a way to curb government
spending. Regan appointed the Gold Commission (The Case for Gold.pdf
The commission reported back in 1982 that there was no gold. It
all owned by the Federal Reserve as colateral aginst the national
The money changers promoted a peace making plan for world government
that has three parts:
1. A world central bank called the Bank of International
2. A world judicary to be called the World Court aka International
Court of Justice (Wiki
3. A world executive and legislature to be called the League of
In the book Tragedy and Hope by Carroll Quigley (Wiki
"The powers of financial capitalism had
(a) far-reaching (plan), nothing less than to create a world system of
financial control n private hands able to dominate the political system
of each country and the economy of the world as a whole. This
was to be controlled in a feudalist fashion by the central banks of the
world acting in concert, by secret agreements arrived at in frequent
meetings and conferences. The apex of the system was to be the
for International Settlements in Basel, Switzerland, a private bank
owned and controlled by the world's central banks which were themselves
private corporations. Each central bank - - Sought to dominate
government by its ability to control treasury loans, to manipulate
foreign exchanges, to influence the level of economic activity in the
country,and to influence cooperative politicians by subsequent economic
reqwards in the business world."