“I see in the near future a crisis approaching that unnerves me, and causes me to tremble for the safety of my country…money power of the country will endeavor to prolong its reign…until wealth is aggregated into few hands, and the republic is destroyed.”
John F. Hylan, Mayor of New York City declared on March 22, 1911:
“The real menace of our republic is the invisible government which, like an octopus, sprawls its slimy length over our city, state, and nation. At the head is a small group of banking houses, generally referred to as ‘international bankers.’”
Dr. Carroll Quigley of Georgetown University made the following comments in his book "Tragedy and Hope":
He said, “it is quite impossible to understand the history of the twentieth century without some understanding of the role played by money in domestic affairs and foreign affairs…”
Quigley quotes Walter Rathenau who controlled German General Electric Company who stated in 1909:
“Three hundred men, all of whom know one another, direct the economic destiny of Europe and choose their successors from among themselves.”
Furthermore, Quigley declares:
“The power of investment bankers over government rests on a number of factors, of which the most significant, perhaps, is the need of governments to issue short-term treasury bills as well as long-term government bonds. Just as businessmen go to commercial banks for current capital advances to smooth over the discrepancies between their irregular and intermittent incomes and their periodic and persistent outgoes (such as monthly rents, annual mortgage payments, and weekly wages), so a government has to go to merchant bankers (or institutions controlled by them) to tide over the shallow places caused by irregular tax receipts. As experts in government bonds, the international bankers not only handled the necessary advances but provided advice to government officials and, on many occasions, placed their own members in official posts for varied periods to deal with special problems…"
In 1865 Gladstone, Chancellor of the Exchequer, declared,
“‘The hinge of the whole situation was this: the government itself was not to be a substantive power in matters of Finance, but was to leave the Money Power supreme and unquestioned.’”
The early machinations of this ruling elite is summarized by Quigley:
“The history of the last century slows, as we shall see later, that the advice given to governments by bankers, like the advice they gave to industrialists, was consistently good for bankers, but was often disastrous for governments, businessmen, and the people generally.”
He openly identifies the banking families of which he is speaking: Baring, Lazard, Erlanger, Warburg, Schroder, Seligman, Speyers, Mirabaud, Mallet, Fould, Rockefeller, Rothschild, and Morgan.
During the period between 1880 and 1933; the tycoons of “Big Banking” and “Big Business” were established in America into:
“two pinnacles of economic power, of which one, centered in New York, was headed by J. P. Morgan and Company, and the other, in Ohio, was headed by the Rockefeller family. When these two cooperated, as they generally did, they could influence the economic life of the country to a large degree and could almost control its political life, at least on the Federal level.”
The earliest mammoth banking family empire was founded by Mayer Amschel Rothschild (1743 – 1812) of Frankfurt, Germany. One of his five sons remained in Frankfurt to administrate the home base while the other four sons established banks in London, Paris, Vienna, and Naples.
Quigley states, the “male descendants, for at least two generations, generally married first cousins or even nieces.” This policy was followed “to establish dynasties of international bankers and were at least as successful at this as were many of the dynastic political rulers.”
Economist Stuart Crane explains how the family amassed a fortune financing governments during the 19th Century.
“If you look back at every war in Europe during the Nineteenth Century, you will see that they always ended with the establishment of a ‘balance of power.’ With every re-shuffling there was a balance of power in a new grouping around the House of Rothschild in England, France, or Austria. They grouped nations so that if any king got out of line a war would break out and the war would be decided by which way the financing went. Researching the debt positions of the warring nations will usually indicate who was to be punished.”
According to Gustavus Myers in "History of the Great American Fortunes" , in 1836, President Andrew Jackson abolished the Central Bank, through which the Rothschilds were exerting their control.
During the Civil War, Abraham Lincoln was approached by August Belmont, an agent of the Rothschild family in the North. Lincoln refused their exorbitant rate of interest to finance the Union. He ordered the Treasury Department to print $450 million “greenbacks.” Greenbacks are legal tender "United States Notes" which are interest free. Lincoln wisely decided that the Union would owe the money to itself. The Erlanger family was the agent of the Rothschild family in the South. Incidentally, the last president to issue "United States Notes" was John F. Kennedy.
International bankers cloaked their goals and ideals with a garment of a “righteous cause” at the close of the 19th Century. According to Dr. Quigley; in 1870, John Ruskin became professor of fine arts at Oxford University and hit Oxford “like an earthquake.”
Pat Brooks declares:
“Ruskin expounded the moral duty of a privileged ruling class [of England] to extend socialistic reform to the underprivileged of the world.”
Carroll Quigley declares: “He told them that they were the possessors of a magnificent tradition of education, beauty, rule of law, freedom, decency, and self-discipline but that this tradition could not be saved, and did not deserve to be saved, unless it could be extended to the lower classes in England itself and to the non-English masses throughout the world…Ruskin’s message had a sensational impact. His inaugural lecture was copied out in longhand by undergraduate Cecil Rhodes, who kept it with him for thirty years…With financial help from Lord Rothschild and Alfred Beit, he was able to monopolize the diamond mines of South Africa as DeBeers Consolidated Gold Fields. In the middle of the 1890’s Rhodes had a personal income of at least a million pounds sterling a year (then about five million dollars) which was spent so freely for his mysterious purposes that he was usually overdrawn on his account. These purposes centered on his desire to federate the English-speaking peoples and to bring all habitable portions of the world under their control.”
Cecil Rhodes and journalist – reformer William T Stead organized a secret society on February 5, 1891. Rhodes was the leader while Stead, Bret (Lord Escher) , and Alfred (Lord) Milner were the executive committee. Alfred (Lord) Balfour, (Sir) Harry Johnston, Lord Rothschild, Albert (Lord) Grey and others became the ‘Circle of Initiates.’ Originally, the outer circle was known as “Association of Helpers” and was reorganized by Milner as the “Round Table.”
Milner was governor-general and high commissioner of South Africa. He recruited like minded men from Oxford idealists who became known as Milner’s Kindergarten and existed until 1910. Semi-secret Round Table groups were organized by these idealists in British dependencies and the United States. As of 1976, eight of these groups still exist. The Royal Institute of International Affairs (Chatham House) was founded by them in 1919. Sir Abe Baily and the Astor family, who owned The Times, supported the RIIA.
Colonel Edward Mandel House, companion and advisor of President Woodrow Wilson, hosted a meeting of Round Table representatives in Paris 13 days after the Versailles Treaty was presented to the Plenary Committee. The American branch of the Round Table was organized as a separate entity on May 19, 1919. Colonel House wrote the charter of the Council on Foreign Relations by 1921.
The Institute of Pacific Relations, a similar network of organizations, was established in twelve countries of the Pacific region after 1925.
Dr. Quigley states that in these there were:
“units in each British dominion existing on an interlocking basis with the Round Table Group and the Royal Institute of International Affairs in the same country.”
A network of international bankers brought about two horrendous changes into America long before the CFR and the IPR were created. J.P Morgan precipitated the “Panic of 1907” after spreading rumors that Knickerbocker Bank and Trust Company of America was insolvent. Morgan’s rival banks were ruined while other banks were brought into Morgan’s influence and control. Paul Warburg came to American with his brother Felix Warburg in 1902. Paul Warburg was vice-president of Kuhn, Loeb, and Company and engineered a central banking system. Warburg used the Panic of 1902 to emphasize the “need” for a central banking system. Morgan promoted the panic for his own selfish economic interests as Warburg promoted the need for “bank reform” by lecturing and writing on the subject. He received a salary of half a million dollars from Kuhn Loeb while writing and lecturing to promote “bank reform” and a “central banking system” he engineered. Warburg had United States Senator Nelson Aldrich, “Morgan’s floor broker in the Senate,” working toward their goals. Nelson Aldrich’s daughter Abby married John D. Rockefeller, Jr. Consequently, Nelson Aldrich was the grandfather of David Rockefeller; chairman of the Council of Foreign Relations, president of Chase Manhattan Bank, and founder of the Trilateral Commission. David Rockefeller’s brother Nelson Aldrich Rockefeller was vice-president of the United States in 1976.
Nelson Aldrich worked tirelessly to create a revived “central bank” which President Andrew Jackson destroyed. He was the Republican “whip” in the Senate and chairman of the National Monetary Commission. The NMC was a special committee of Congress created for the purpose of making recommendations to Congress for banking reform legislation. The American public was concerned about what was happening in the banking industry. Banks were folding and people were losing their investments through broken promises banks made to protect depositor’s assets. Aldrich spent over $300,000 of taxpayer’s money to fulfill the aspirations and goals of international bankers. Americans were concerned about the concentration of wealth in the hands of a few large New York Banks on Wall Street. In those days, the concentration of wealth in a few large banks was termed “the money trust.” Various politicians had been elected to office on their campaign promise to break the grasp of “the money trust.” President Woodrow Wilson was among the politicians who campaigned on this issue but was actually hand-picked, financed, and surrounded by associates and advisors of “the money trust.” The public wasn’t aware of this at that time in history. One who campaigned against the money trust could most assuredly be elected. Aldrich was an important business associate of J.P. Morgan and the father-in-law to John D. Rockefeller Jr.
In November of 1910, a secret meeting of the Morgan - Rockefeller banking officers was held at a social club on Jekyll Island, Georgia. This was a social club and it was called "The Jekyll Island Club." Walk through the downstairs corridors and you will discover a door which identified with a brass plaque that declares: "In this room the Federal Reserve System was created."
Senator Nelson Aldrich sent his private railroad car to the railroad station in New Jersey and there it was in readiness for the arrival of himself and six other men who were told to come under conditions of great secrecy.
Secretary of the Treasury Abraham Piatt Andrew was the second most important man at the meeting. He later became a congressman with important internal ties to banking circle.
Frank A. Vanderlip was President of National City Bank of New York which was the largest bank in America. Vanderlip represented the banking and financial interests of William Rockefeller and international investment banking firm of Kuhn, Loeb & Company. Vanderlip represented the largest most powerful banks in America.
Henry P. Davidson was the senior partner of J.P. Morgan Company. Incidentally, for those persons acquainted with the game “Monopoly;” the little fat capitalist with the handlebar mustache and cigar was a satirical caricature of J.P. Morgan.
Charles D. Norton was the President of the 1st National Bank of New York.
Benjamin Strong was head of J.P. Morgan’s Banker’s Trust Company. Three years later when the Federal Reserve Act was passed; Strong became the first head of the Federal Reserve System.
Paul M. Warburg was born in Germany and immigrated to America becoming a naturalized citizen. He was probably the most important man at the meeting because of his European banking knowledge. Paul M. Warburg was one of the wealthiest men in the world during the era in which he lived. Warburg was a partner in Kuhn Loeb & Company and also represented the interests of the banking dynasty of Rothschild family of England and France. Paul Warburg maintained close working relationship with the Rothschild’s throughout his entire career. His brother and closest liaison, Max Warburg was head of Warburg banking consortium in Germany and the Netherlands. Persons familiar with the syndicated comic strip “Little Orphan Annie” recognize that “Daddy Warbucks” in the infamous comic strip is a satirical caricature of Paul M. Warburg. Everyone in that era was aware of the satirical caricature.
These seven men created the Federal Reserve System and represented ¼ of the entire wealth of the world.
An article written by Frank Vanderlip, a member of the group who attended the meeting, was published in "Saturday Evening Post", February 9, 1935, after the ratification of the Federal Reserve Act.
"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. We were told to leave our last names behind us. We were told further that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson where Senator Aldrich's private car would be in readiness attached to the rear-end of a train to the south. Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as Ben, Paul, Nelson and Abe. Davison and I adopted even deeper disguises abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville after those two aviation pioneers the Wright brothers. The servants and train crew may have known the identities of one or two of us, but they did not know all and it was the names of all printed together that would've made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery we knew simply must not happen."
They received the following instructions:
Should they arrive at the station at the same time they were to pretend that they didn’t know each other.
Newspaper reporters might recognize them and ask question so they were instructed to avoid them at all costs. Suspicions would certainly arise if two or three of them were identified which would provoke questions.
One of the men carried a large black case that contained a shotgun. In the event that he might be questioned; he would respond by saying he was going on a duck hunting trip. We learn from his biography that he neither owned the gun nor ever fired a gun in his life. He borrowed the gun to aid in his deception.
Servants on board were not to know the identity of the guests on board the train. There was fear that servants might talk about the excursion which may be leaked to the press.
The seven men traveled for two days and a night aboard Aldrich’s private car traveling a journey of 1,000 miles to Brunswick, Georgia. They took a ferry across the inland straits arriving on Jekyll Island. For the next nine days they sat at a table in an a closed room to discuss the details of what became the Federal Reserve System. After they accomplished their objective; they returned to New York.
Why the all of these particular elements to maintain secrecy? What was wrong with a group of private bankers attending meetings to discuss economics and proposed banking legislation?
Vanderlip, who attended the secret meeting, explains the reason and provides the answer to the puzzling behavior.
"If it were to be exposed publicly that our particular group had gotten together and written a banking bill, that bill would have no chance whatever of passage by Congress."
The purpose of the National Monetary Commission was to propose legislation to break the grip of “the money trust.” Aldrich was the chairman of the committee to propose appropriate legislation to break “the money trust.” The Aldrich bill was the purported legislation that was to break the grip of the money trust. The men whom Aldrich assembled at Jekyll Island were “the money trust.” Had this fact been known from the outset; the Federal Reserve System would not exist today. Vanderlip said the proposed legislation would have had no chance to be passed into law by Congress. Therefore, it was essential for their secret to remain a secret and continues to remain so to this day.
Anybody could go to a library and discover the truth but truth isn’t taught in the classrooms of our schools and universities.
Edward Griffin states: “We don't know any of this in the official literature from the Federal Reserve System because that was like asking the fox to build the henhouse and install the security system.”
The creation of the Federal Reserve System in secrecy by “the Money trust” is very important. Here were the giants of their era: J.P Morgan, the Rockefellers, Kuhn, Loeb & Company, the Rothschilds and Warburgs which were the major competitors in the field of investment and banking.
Normally, they would be competing against each other for dominance in New York, Paris, and London and in every financial market throughout the world. These competitors were sitting at a table making an agreement of some sort.
In this era of American history an extremely significant fundamental change in ideology was happening in business.
In the past, American free enterprise competition had been operating under the principles of private enterprise which caused America to surpass all other nations. At this point of history, a shift begins to happen; American free enterprise was departing from competition to monopoly. This is the era of the cartel. Throughout the fifteen year period prior to the secret meeting on Jekyll Island; investment groups were coming together engaging in joint ventures rather than competitive ventures. The Jekyll Island meeting was the culmination of trends where they came together deciding not to compete but to form a cartel.
The Aldrich bill establishing the Federal Reserve System was introduced in the Senate of the United States Congress.
“Colonel” Edward Mandel House is regarded by some historians as the real president during Wilson’s administration. “Colonel” House was Wilson’s chief advisor and confidant who guided the creation of the Federal Reserve System and graduated income tax into national policy.
The bill did not pass because the connections between Aldrich and the bankers were so obvious. The Morgan – Rockefeller – Kuhn, Loeb banking interests did not surrender their ambitions. Morgan backed ex-President Theodore Roosevelt; thus making the presidential election a three – way race for the incumbent William Howard Taft who opposed the Aldrich bill. The Progressive Party was a front to split the Republican vote which would assure Taft’s defeat. Consequently, Woodrow Wilson was elected president who, “for nearly twenty years…had moved in the shadow of Wall Street.”
The 16th Amendment of the United States Constitution was adopted on February 3, 1913. The Federal Reserve Act was passed by Congress on December 22 while many of the Senators were on Christmas recess.
Both, the “centralized bank” and “graduated income tax” are planks of Karl Marx’ Communist Manifesto.
Cartel: “It is a group of independently owned businesses which come together for the purpose of reducing or eliminating competition between themselves to enhance their profit margin or to secure their positions in the market. They do this by various means one of which is price fixing--no competition on price.”
One might divide a nation into regions of the north and south. One may produce the “gizmo” and another may produce the “widget” and they choose not to compete; perhaps even sharing patents and processes. Consequently, they eliminate competition between themselves. Layer upon layer of agreements are added which encase themselves in a cartel structure “insofar as the market is concerned even though within that grouping [they] are separately owned.”
This is as true for banking cartels as it is with any other industry. Hence, the nature of the Federal Reserve System, when examined in the historical setting, is that it is a cartel even though is masquerades as a government agency protected by unconstitutional law.
Charles A. Lindbergh, Sr. (1859 -1924) was the father of the famous aviator and a Congressman (R-MN). Congressman Lindbergh declared in his book "Banking and Currency and the Money Trust", 1913:
“The Act (the Federal Reserve Act, Dec. 23rd 1913) establishes the most gigantic trust on earth. When the President (Woodrow Wilson) signs the Bill, the invisible government of the Monetary Power will be legalized…The worst legislative crime of the ages is perpetrated by this banking and currency Bill.”
The Federal Reserve Cartel has been dangerously operating as lava tubes beneath the surface of the ground in Hawaii; carefully concealed from the American citizen. Occasionally, a hole will break open to the surface of the earth and one can actually see rivers of lava flowing a few feet beneath one’s feet.
The third ingredient is the most important when we realize that the cartel is in partner ship with government. Cartels need the force of law to enforce upon the citizen, the agreements of the cartel. When partnerships are formed there must be benefits to the parties.
We must examine in detail the mechanism by which the Federal Reserve “creates” money. Griffin calls the mechanism the “Mandrake Mechanism” named for the comic-book character of the 1940s. Mandrake could create something out of nothing; wave his cape and it would return into the void.
The Federal Reserve is incapable of accomplishing its stated objectives.
The Federal Reserve System is a cartel operating against the public interest.
The Federal Reserve System utilizes the supreme instrument of usury.
The Federal Reserve System generates the most unfair tax.
The Federal Reserve System encourages war.
The Federal Reserve System destabilizes the economy.
I enumerate the fruits of these two titanic policy changes over the past several decades till 1976:
Two world wars!
Two Asian wars!
A financial crash!
A great depression!
An unconstitutional direct unapportioned confiscatory tax!
Loss of incentive for free enterprise not in the orbit of multinationals!
Subversion of government bureaucracies, Congress, and the Executive branch staff!
Radicalized Supreme Court decisions!
Liberal bias in the media!
Tax-free foundations fund and airing information favorable to socialism and world government!
Once American ship of state sailed through the gate she has been listing to the left ever since.