In 1995 Patrick S. J. Carmack co-produced a two-volume video The Money Masters: How International Bankers Gained Control of America. Mr. Carmack, a member of the bar of the US Supreme Court of the United States, a BBA, JD, has practiced corporate law and was a former Administrative Law Judge for the Corporation Commission of the State of Oklahoma. His video
. . . . in addition to giving a history of Rothchild banking establishment argues among other things that private central banks owned and controlled American large media and other outlets. The Money Masters discusses the topics of money (as it relates to central banking and fractional reserve banking), debt, and taxes, and purports to describe the development of those subjects from their origin in the “dark ages”. The film claims that what it calls the “safe and easy guaranteed huge profit made by printing money” is currently being used in the United States to benefit a few wealthy individuals. It argues that this situation should be remedied, so that this alleged profit benefits the public good, as, according to the film, has been the case during four periods in the history of the United States.http://en.wikipedia.org/wiki/The_Money_Masters
At the beginning of the excerpts of the video the commentator asks the listener “What is going on in America today?” explaining that property ownership, a general feature of our society before the Civil War and largely until the Great Depression, has been replaced by debt and dependence on wages or salaries
Why are we over our heads in debt? Why can’t the politicians bring debt under control? Why are so many people – often both parents now – working at low-paying, deadend jobs and still making do with less? What’s the future of the American economy and way of life? Why does the government tell us inflation is low, when the buying power of our paychecks is declining at an alarming rate? Only a generation ago, bread was a quarter and you could get a new car for $1,995!
Unlike W. H. Brands in The Money Men who sees the Federal Reserve a quasi private and public venture responsible for our great prosperity, Carmack sees the Federal Reserve the last and most lethal private US bank relating American history to show some of our most valiant presidents rejecting and dismantling US national banks for the reasons he explains. As to our monetary system,
. . . . . we have one of the worst, , , ever devised – a central bank that operates independently of our government, which, with other private banks, creates all of our money with a parallel amount of interest-bearing debt. That’s why we can never get out of debt. And that’s why a deep depression is a certainty, for most of our citizens, whether caused suddenly in a severe economic crash, or gradually through continued relentless inflation. The Fed is creating it to enrich its private stockholder. . .
In times of prosperity, Americans might be unwilling to accept a history which destroys so many of our myths. But sitting as we do on top of a financial world that seems ready to crumble beneath us, such history begins to explain how we came to be atop such a dangerous precipice. At the beginning of 2008, our Federal Reserve prints money to deflate our currency in order to bail out financial institutions who created mortgage vehicles that turned out bogus and therefore worthless infecting banks throughout the world. While financial transactions often operate quietly behind the scenes to keep their overall power over the economy hidden, in this latest phase concerning mortgages, Wall Street collides with Main Street. Americans are losing their homes in groves and although the system may be bad, it is the one on which we all depend. At its heart are our banks which are freezing up, unable or too afraid to lend money. When the Federal Reserve retreats that many analysts predict they will be forced to do, institutions that are interconnected and intertwined will tumble one after another. The Feds efforts to save the system have helped to bring on more inflation and devalue the dollar. More and more mortgages will be unpaid as the prices of homes decline with their equity. Can we find the roots to such problems?
The extensive American history in the transcripts of The Money Masters helps us come to understand some of this as well as other global issues that have led to the exporting of jobs, declining standards of living, and importing of millions of immigrants. It is a story about them vs. us; a story about an aristocracy of capital living in the midst of a nation wanting to be a democracy. The main story begins, as previously reviewed, with international banking promoted by Rothschild’s’ agent Alexander Hamilton and coming to include others such as the Morgan’s and the Rockefeller’s
First, Part Seven of the The Money Masters video presents additional information on the origins and influence of the Rothschilds
The Rise of the Rothschilds
. . . . . Meyer Rothschild soon learned that loan money to governments and kings was more profitable than loaning to private individuals. Not only were the loans bigger, but they were secured by the nation’s taxes. . . . .
The Rothschilds broke into dealings with European royalty in Wilhelmshohe, the palace of the wealthiest man in Germany – in fact, tbe wealthiest monarch in all of Europe – Prince William of Hesse-Cassel.
At first, the Rothschilds were only helping William speculate in precious coins. But when Napoleon chased Prince William into exile, William sent £550,000 (a gigantic sum at that time, equivalent to many millions of current U.S. dollars) to Nathan Rothschild in London with instructions from him to buy Consola – British government bonds also called government stock. But Rothschild used the money for his own purposes. With Napoleon on the loose, the opportunities for highly profitable wartime investments were nearly limitless.
William returned to Wllhelmshohe, sometime prior to the Battle of Waterloo in 1815. He summoned the Rothschilds and demanded his money back. The Rothschilds returned William’s money, with the 8% interest the British Consols would have paid him had the investment actually been made. But the Rothschilds kept all the vast wartime profits they had made using Wilhelm’ s money—a shady practice in any century.
Partly by such practices, Nathan Rothschild was able to later brag that in the seventeen years he had been in England, he had increased his original £20,000 stake given to him by his father by 2,500 times (=£50,000,000), a truly vast sum at that time, comparable to billions of current U.S. dollars in purchasing power.
As early as 1817, the director of the Prussian Treasury, on a visit to London, wrote that Nathan Rothschild had: “… incredible influence upon all financial affairs here in London. It is widely stated … that he entirely regulates the rate of exchange in the City. His power as a banker is enormous. “
Austrian Prince Metternich’s secretary wrote of the Rothschilds as early as 1818 that:
“…they are the richest people in Europe”.
By cooperating within the family, using fractional reserve banking techniques (it could lend out money it didn’t have, then charge interest on it), the Rothschilds’ banks soon grew unbelievably wealthy. By the mid-1800s, they dominated all European banking, and were certainly the wealthiest family in the world. A large part of the profligate nobility of Europe became deeply indebted to them.
In virtue of their presence in five nations as bankers, they were effectively autonomous – an entity independent from the nations in which they operated. If one nation’s policies were displeasing to them or their interests, they could simply do no further lending there, or lend to those nations or groups opposed to such policies. Only they knew where their gold and other reserves were located, thus shielding them from government seizure, penalty, pressure or taxation, as well as effectively making any national investigation or audit meaningless. Only they knew the extent (or paucity) of their fractional reserves, scattered in five nations – a tremendous advantage over purely national banks engaging in fractional reserve banking too.
It was precisely their international character that gave them unique advantages over national banks and governments, and that was precisely what rulers and national parliaments should have prohibited, but did not. This remains true of international or multi-national banks to this very day, and is the driving force of globalization – the push for one-world government.
The Rothschilds provided huge loans to establish monopolies in various industries, thereby guaranteeing the borrowers’ ability to repay the loans by raising prices without fear of price competition, while increasing the Rothschild’s economic and political power.
They financed Cecil Rhodes, making it possible for him to establish a monopoly over the gold fields of South Africa and the deBeers over diamonds. In America, they financed the monopolization of railroads.
The National City Bank of Cleveland, which was identified in Congressional hearings as one of three Rothschild banks in the United States, provided John D. Rockefeller with the money to begin his monopolization of the oil refinery business, resulting in Standard Oil.
Jacob Schiff, who had been born in the Rothschild “Green Shield” house in Frankfort and who was then the principal Rothschild agent in the U.S., advised Rockefeller and developed the infamous rebate deal Rockefeller secretly demanded from railroads shipping competitors’ oil.
These same railroads were already monopolized by Rothschild control through agents and allies J.P. Morgan and Kuhn, Loeb & Company (Schiff was on the Board) which together controlled 95% of all U.S. railroad mileage. By 1850, James Rothschild, the heir of the French branch of the family, was said to be worth 600 million French francs – 150 million more than all the other bankers in France put together.
James had been established in Paris in 1812 with a capital of $200,000 by Mayer Amschel. At the time of his death in 1868, 56 years later, his annual income was $40,000,000. No fortune in America at that time equaled even one year’s income of James. Referring to James Rothschild, the poet Heinrich Heine said: “Money is the god of our times, and Rothschild is his prophet.” James built his fabulous mansion, called Femeres, 19 miles northeast of Paris. Wilhelm I, on first seeing it exclainned, “Kings couldn’t afford this. It could only belong to a Rothschild.”
Another 19 century French commentator put it this way; “There is but one power in Europe and that is Rothschild.”
There is no evidence that their predominant standing in European or world finance has changed, to the contrary, as their wealth has increased they have simply increased their “passion for anonymity”. Their vast holdings rarely bear their name.
Author Frederic Morton wrote of them that they had “conquered the world more thoroughly, more cunningly, and much more lastingly than all the Caesars before
By the mid-1700s, the British Empire was approaching its height of power around the world. Britain had fought four wars in Europe since the creation of its privately- owned central bank, the Bank of England. The cost had had been high. To finance these wars, the British Parliament, rather than issuing its own debt-free currency, had borrowed heavily from the Bank. ]
By the mid-1700s, the government’s debt was £140,000,000 – a staggering sum for those days. Consequently, the British government embarked on a program of trying to raise revenues from its American colonies in order to make the interest payments to the Bank.
But in America, it was a different story. The scourge of a privately-owned central bank had not yet landed in America, though the Bank of England exerted its baneful influence over the American colonies after 1694.
Four years earlier, in 1690 the Massachusetts Bay colony printed its own paper money – the first in America. This was followed in 1703 by South Carolina and then by other colonies. In the mid-1700s, pre-Revolutionary America was still relatively poor. There was a severe shortage of precious metal coins to trade for goods, so the early colonists were increasingly forced to experiment with printing their own home-grown paper money. Some of these experiments were successful. Tobacco was used as money in some colonies with success.
In 1720 every colonial Royal Governor was instructed to curtail the issue of colonial money. This was largely unsuccessful. In 1742 the British Resumption Act required that taxes and other debts be paid in gold. This caused a depression in the colonies – property was seized on foreclosure by the rich for one-tenth its value.
Benjamin Franklin was a big supporter of the colonies printing their own money. In 1757, Franklin was sent to London to fight for colonial paper money. He ended up staying for the next 18 years – nearly until the start of the American Revolution. During this period, ignoring Parliament, more American colonies began to issue their own money. Called Colonial Scrip, the endeavor was successful, with notable exceptions. It provided a reliable medium of exchange, and it also helped to provide a feeling of unity between the colonies. Remember, most Colonial Scrip was just paper money – debt-free money – printed in the public interest and not really backed by gold or silver coin. In other words, it was a fiat currency.
Officials of the Bank of England asked Franklin how he would account for the new-found prosperity of the colonies. Without hesitation he replied: “That is simple. In the colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers… In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one.”
This was just common sense to Franklin, but you can imagine the impact it had at the Bank of England. America had learned the secret of money and that genie had to be returned to its bottle as soon as possible.
1st American Central Bank War (1764-1776)
As a result, Parliament hurriedly passed the Currency Act of 1764. This prohibited colonial officials from issuing their own money and ordered them to pay all future taxes in gold or silver coins. In other words, it forced the colonies on a gold and silver standard. This initiated the first intense phase of the first “Bank War” in America, which ended in defeat for the Money Changers beginning with the Declaration of Independence, and concluded by the subsequent peace Treaty of Paris 1783.
For those who believe that a gold standard is the answer for America’s current monetary problems, look what happened to America afar the Currency Act of 1764 was passed. Writing in his autobiography, Franklin said: “In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed.”
Franklin claims that this was even the basic cause for the American Revolution. As Franklin put it in his autobiography: “The Colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the Colonies their money, which created unemployment and dissatisfaction.”
In 1774, Parliament passed the Stamp Act which required that a stamp be placed on ever instrument of commerce indicating payment of tax in gold, which threatened the colonial paper money again. Less than two weeks later, the Massachusetts Committee of Safety passed a resolution directing the issuance of more colonial currency and honoring the currency of other colonies.
On June 10 and June 22, 1775, the “Congress of the Colonies” resolved to issue million in paper money based on the credit and faith of the “United Colonies”. This flew in the face of the Bank of England and Parliament. It constituted an act of defiance, a refusal to accept a monetary system unjust to the people of the colonies.
“Thus the bills of credit [ie. paper money] which historians with ignorance or prejudice have belittled as instruments of reckless financial policy, were really the standards of the Revolution. They were more than this: they were the Revolution itself.” – Alexander Del Mar, historian
NOTE Alexander del Mar, also Alex Delmar (1836–1926), was an American political economist, historian, numismatist and author. He was the first director of the Bureau of Statistics at the U.S. Treasury Department from 1866–69
By the time the first shots were fired in Concord and Lexington, Massachusetts on April 19, 1775, the colonies had been drained of gold and silver coin by British taxation. As result, the Continental government had no choice but to print its own paper money to finance the war.
At the start of the Revolution, the U.S. (colonial) money supply stood at $12 million. By the end of the war, it was nearly $500 million. This was partly a result of massive British counterfeiting. As a result, the currency was virtually worthless. Shoes sold for $5,000 a pair.
George Washington lamented, “A wagon load of money will scarcely purchase wagon of provisions.”
Earlier, Colonial scrip had worked because just enough was issued to facilitate trade and counterfeiting was minimal. Today, those who support a gold-backed currency point to this period during the Revolution to demonstrate the evils of a fiat currency. But remember, the currency had worked so well twenty years earlier during times of peace that England had Parliament outlaw it, and during the war the British deliberately sought to undermine it by counterfeiting it in England and shipping it “by the bale” to the colonies.
2nd American Central Bank War (1781-1785)
Towards the end of the Revolution, the Continental Congress, meeting at Independence Hall in Philadelphia, grew desperate for money. In 1781, they allowed Robert Morris, their Financial Superintendent, to open a privately-owned central bank in hopes that would help. Incidentally, Morris was a wealthy man who had grown wealthier during the Revolution by trading in war materials.
Called the Bank of North America, the new bank was closely modeled after the Bank of England. It was allowed to practice (or rather, it was not prohibited from) fractional reserve banking – that is, it could lend out money it didn’t have, then charge interest on it. If you or I were to do that, we would be charged with fraud, a felony. Few understood this practice at the time, which was, of course, concealed from the public and politicians as much as possible. Further, the bank was given a monopoly on issuing bank notes, acceptable in payment of taxes.
The Bank’s charter called for private investors to put up $400,000 worth of initial capital. But when Morris was unable to raise the money, he brazenly used his political influence to have gold deposited in the bank which had been loaned to America by France. He then loaned this money to himself and his friends to reinvest in shares of the bank. The second American Bank War was on.
Soon, the dangers became clear. The value of American currency continued to plummet, so, four years later, in 1785, the Bank’s charter was not renewed, effectively ending the threat of the Bank’s power. Thus the second American Bank War quickly ended in defeat for the Money Changers.
The leader of the successful effort to kill the Bank, a patriot named William Findley, of Pennsylvania, explained the problem this way: “This institution, having no principle but that of avarice, will never be varied in its object … to engross all the wealth, power and influence of the state.”
Plutocracy, once established, will corrupt the legislature so that laws will be made in its favor, and the administration of justice, to favor the rich. The men behind the Bank of North America – Alexander Hamilton, Robert Morris and the Bank’s President, Thomas Willing – did not give up. Only six years later, Hamilton – then Secretary of the Treasury – and his mentor, Morris, rammed a new privately-owned central bank through the new Congress. Called the First Bank of the United States, Thomas Willing again served as the Bank’s President. The players were the same, only the name of the Bank was changed.
The Constitutional Convention
In 1787, colonial leaders assembled in Philadelphia to replace the ailing Articles of Confederation. As we saw earlier, both Thomas Jefferson and James Madison were unalterably opposed to a privately-owned central bank. They had seen the problems caused by the Bank of England. They wanted nothing of it. As Jefferson later put it: “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
During the debate over the future monetary system, another one of the founding fathers, Governor Morris, headed the committee that wrote the final draft of the Constitution. Morris knew the motivations of the bankers well.
Along with his old boss, Robert Morris, Governor Morris and Alexander Hamilton were the ones who had presented the original plan for the Bank of North America to the Continental Congress in the last year of the Revolution. In a letter he wrote to James Madison on July 2, 1787, Governor Morris revealed what was really going on: “The rich will strive to establish their dominion and enslave the rest. They always did. They always will. … They will have the same effect here as elsewhere, if we do not, by [the power of] government, keep them in their proper spheres.”
Despite the defection of Governor Morris from the ranks of the Bank, Hamilton, Robert Morris, Thomas Willing, and their European backers were not about to give up.
NOTE: Robert Morris and Governor Morris were two different founding fathers, and as explained here, while both had been allied with Hamilton Governor came to defect from that alliance
They convinced the bulk of the delegates to the Constitution Convention not to give Congress the power to issue paper money. Most of the delegates were still reeling from the wild inflation of the paper currency during the Revolution. They had forgotten how well Colonial Scrip had worked before the War. But the Bank of England had not. The Money Changers could not stand to have America printing her own money again.
Many believed the Tenth Amendment, which reserved powers to the States which were not delegated to the federal government by the Constitution, made the issuance of paper money by the federal government unconstituonal, since the power to issue paper money was not specifically delegated to the federal government in the Constitution. The Constitution is silent on this point. However, the Constitution specifically forbade the individual States to “emit bills of credit” (paper money).
Most of the framers intended the Constitution’s silence to keep the new federal government from having the power to authorize money creation. Indeed, the journal of Convention for August 16 reads as follows: “It was moved and seconded to strike out words ‘and emit bills of credit,’ and the motion. . ..passed in the affirmative.”
But Hamilton and his banker friends saw this silence as an opportunity of keeping the government out of paper money creation which they hoped to monopolize privately. So both bankers and anti-banking delegates, for opposing motives, supported leaving any federal government authority for paper money creation out of the Constitution, by a four to one margin. This ambiguity left the door open for the Money Changers, just as they had planned.
Of course, paper money was not itself the main problem, fractional reserve lending was the greater problem since it multiplied any inflation caused by excessive paper currency issuance by several times. But this was not understood by many, whereas the evils of excessive paper currency issuance were.
In their belief that prohibiting paper currency was a good end the framers were well advised. Prohibiting all paper currency would have severely limited the fractional reserve banking then practiced, since the use of checks was minimal and would, arguably, have been prohibited as well. But bank loans, created as book entries, were not addressed, and so were not prohibited.
As it happened, the federal and state governments were widely regarded as prohibited from paper money creation, whereas private banks were not – it being argued that this power, by not being specifically prohibited, was reserved to the people (including legal persons, such as incorporated banks).
The contrary argument was that bank corporations were instruments or agencies of the states which incorporated them and so were prohibited from “emitting bills of credit” as were the states themselves. This argument was ignored by the bankers, who proceeded to issue paper bank notes based on fractional reserves, and it lost all force once the U.S. Supreme Court ruled that even the federal government could charter a bank (the 1st BUS) which could issue paper money.
In the end, only the states were prohibited from issuing paper money, not the federal government, and neither private banks nor even municipalities were prohibited from issuing paper money (as happened in 400 cities during the Great Depression).
Another error not often understood concerns the authority given the federal government “to coin money” and “to regulate the value thereof.” Regulating the value of money (that is to say its purchasing power, or value relative to other things) has nothing to do with quality or content (e.g. so many grains of gold or copper, etc,), but has to do with its quantity – the supply of money. It is quantity that determines its value, and never has Congress legislated any total quantity of money in the U.S.
Legislating a total money supply (including currency, checks and all bank deposits) would, in fact, regulate the value (purchasing power) of each dollar. Legislating the rate of growth of the money supply would then determine its future value. Congress has never done either, though it clearly has the constitutional authority to do so. It has left this function to the Fed and the 10,000+ banks which create our money supply.
3rd American Central Bank War (1791- 1811)
In 1790, less than three years after the Constitution had been signed, the Money Changers struck again. The newly-appointed first Secretary of the Treasury, Alexander Hamilton, proposed a bill to the Congress calling for a new privately-owned central bank. Coincidentally, that was the very year that Meyer Rothschild made his pronouncement from his flagship bank in Frankfort:
“Let me issue and control a nation’s money and I care not who writes its laws.”
Alexander Hamilton was a tool of the international bankers. He wanted to create another private central bank, the Bank of the United States, and did so. He convinced Washington to sign the bill over Washington’s reservations and over Jefferson’s and Madison’s opposition.
To win over Washington, Hamilton developed the “implied powers” argument used so often since to eviscerate the Constitution. Jefferson correctly predicted the dire consequences of opening such a Pandora’s box which would allow judges to “imply” whatever they wished. . . . .
“Never was a great historic event followed by a more feeble sequel. A nation arises to claim for itself liberty and sovereignty. It gains both of these by immense sacrifice of blood and treasure. Then, when victory is gained and secure, it hands the nation’s credit – that is to say a national treasure – over to private individuals, to do as they please with.” – Alexander Del Mar, historian
The first Bank of the United States was headquartered in Philadelphia. The Bank was even given authority to print currency and make loans, based on fractional reserves, even though 80% of its stock would be held by private investors. The other 20% would be purchased by the U.S. Government, but the reason was not to give the government a piece of the action, it was to provide the initial capital for the other 80% owners.
As with the old bank of North America and the Bank of England before that, the stockholders never paid the full amount for their shares. The U.S. government put up their initial $2,000,000 in cash, then the Bank through the old magic of fractional reserve lending, made loans to its charter investors so they could come up with the remaining $8,000,000 in capital needed for this risk-free investment.
Like the Bank of England, the name of the Bank of the United States was deliberately chosen to hide the fact that it was privately controlled. And like the Bank of England, the names of the investors in the Bank were never revealed.
“Under the surface, the Rothschilds long had a powerful influence in dictating American financial laws. The law records show that they were the power in the old Bank of the United States” – Myers, History of the Great American Fortunes.
The Bank was promoted to Congress as a way to bring stability to the banking system and to eliminate inflation. So what happened? Over the first five years, the U.S. government borrowed $8.2 million from the Bank of the United States. In that period, prices rose by 72%.
Jefferson, as the new Secretary of State, watched the borrowing with sadness and frustration, unable to stop it. “I wish it were possible to obtain a single amendment to our Constitution – taking from the federal government the power of borrowing.”
President Adams denounced the issuance of private bank notes as a fraud upon the public. He was supported in this view by all conservative opinion of his time. Why continue to farm out to private banks, for nothing, a prerogative of government?
Millions of Americans feel the same way today. They watch in helpless frustration as the Federal government borrows the American taxpayer into oblivion; borrowing from private banks and the rich the money the government has the authority and duty to issue itself, without debt. So, although it was called the First Bank of the U.S., it was not the first attempt at a privately-owned central bank in this country. As with the first two, the Bank of England and the Bank of North America, the government put up the cash to get this private bank going, then the bankers loaned that money to each other to buy the remaining stock in the bank.
It was a scam, plain and simple. And they wouldn’t be able to get away with it for long, but first we have to travel back to Europe to see how a single man was able to manipulate the entire British economy by obtaining the first news of Napoleon’s final defeat.
Napoleon’s Rise to Power
Here in Paris, the Bank of France was organized in 1800 just like the Bank of England. But Napoleon decided France had to break free of debt and he never trusted the Bank of France, even when he put some of his own relatives on the governing Board. He declared that when a government is dependent upon bankers for money, the bankers, not the leaders of the government are in control: “The hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency: their sole object is gain.He clearly saw the dangers, but did not see the proper safeguards or solution. Back in America, unexpected help was about to arrive.
In 1800, Thomas Jefferson narrowly defeated John Adams to become the third President of the United States. By 1803, Jefferson and Napoleon had struck a deal. The U.S. would give Napoleon $3,000,000 in gold in exchange for a huge chunk of territory west of the Mississippi River – the Louisiana Purchase.
With that three million dollars, Napoleon quickly forged an army and set off across Europe, conquering everything in his path. But England and the Bank of England quickly rose to oppose him. They financed every nation in his path, reaping the enormous profits of war. Prussia, Austria, and finally Russia all went heavily into debt in a futile attempt to stop Napoleon.
Four years later, with the main French Army in Russia, 30-year-old Nathan Rothschild – the head of the London office of the Rothschild family – personally took charge a bold plan to smuggle a much-needed shipment of gold right through France to finance an attack by the Duke of Wellington from Spain. Nathan later bragged at a dinner party in London that it was the best business he ever done. He made money on each step the shipment. Little did he know that would do much better business in the near future.
Wellington’s attacks from the south, and other defeats, eventually forced Napoleon to abdicate, and Louis XVIII was crowned King. Napoleon was exiled to Elba, a tiny island off the coast of Italy, supposedly exiled from France forever. While Napoleon was in Elba, temporarily defeated by England with the financial help of the Rothschilds – America was trying to break free of its central bank as well.
Death of the First Bank–War of 1812
In 1811, a bill was put before Congress to renew the charter of the Bank of the United States. The debate grew very heated and the legislature of both Pennsylvania and Virginia passed resolutions asking Congress to kill the Bank. The press corps of the day attacked the Bank openly, calling it “a great swindle”, a “vulture”, a “viper”, and a “cobra”. Oh, to have an independent press once again in America.
A Congressman named P.B. Porter attacked the bank from the floor of Congress, prophetically warned that if the bank’s charter were renewed, Congress, “will have planted in the bosom of this Constitution a viper, which one day or another will sting the liberties of this country to the heart.”
Prospects didn’t look good for the Bank. Some writers have claimed that Nathan Rothschild warned that the United States would find itself involved in a most disastrous war if the Bank’s charter were not renewed.
But it wasn’t enough. When the smoke had cleared, the renewal bill was defeated by a single vote in the House and was deadlocked in the Senate. By now, America’s fourth President, James Madison, was in the White House. Remember, Madison was a staunch opponent of the Bank. His Vice President, George Clinton, broke a tie in the Senate and sent the Bank, the second privately-owned central bank based in America, into oblivion. Thus, the third American Bank War, lasting twenty years, ended in defeat for the Money Changers.
Within 5 months, as Rothschild was said to have predicated, England attacked the U.S. and the War of 1812 was on. But the British were still busy fighting Napoleon, and so the war of 1812 vended in a draw in 1814. It is interesting to note that during this war, the Treasury printed some government paper money, not bearing interest, to fund the war effort. This was not repeated until the Civil War.
Though the Money Changers were temporarily down, they were far from out. It would take them only another two years to bring a fourth private central bank back – bigger and stronger than before.
. . . . . This episode aptly demonstrates the cunning of the Rothschild family in gaining control of the British stock market after Waterloo.
In 1815, a year after the end of the War of 1812 in America, Napoleon escaped his exile and returned to Paris. French troops were sent out to capture him, but such was his charisma that the soldiers rallied around their old leader and hailed him as their Emperor once again. Napoleon returned to Paris a hero. King Louis fled into exile and Napoleon again ascended to the French throne – this time without a shot being fired.
In March of 1815 Napoleon equipped an army which Britain’s Duke of Wellington defeated less than 90 days later at Waterloo. He borrowed 5 million pounds to rearm from the Ouvard banking house in Paris. Nevertheless, from about this point on, it was not unusual for privately-controlled central banks to finance both sides in a war.
Why would a central bank finance opposing sides in a war? Because war is the biggest debt-generator of them all. A nation will borrow any amount for victory. The ultimate looser is loaned just enough to hold out the vain hope of victory, and the ultimate winner is given enough to win. Besides, such loans are usually conditioned upon the guarantee that the victor will honor the debts of the vanquished. Only the bankers cannot lose. . . . .
4th American Central Bank War (1816- 1836)
Meanwhile, back in Washington, in 1816, just one year after Waterloo and Rothschilds’ alleged takeover of the Bank of England, the American Congress passed a bill permitting yet another privately-owned central bank – the fourth American Bank War had begun.
This bank was called the Second Bank of the United States. The new Bank’s charter was a copy of the previous Bank’s. The U.S. government would own 20% of the shares. Of course, the Federal share was paid by the Treasury up front, into the Bank’s coffers. Then, through the magic of fractional reserve lending, it was transformed into loans to private investors who then bought the remaining 80% of the shares. Sound familiar by now?
Just as before, the primary stockholders remained secret. But it is known that, at the largest single block of shares- about one-third of the total- was held by foreigners. As one observer put it:
“It is certainly no exaggeration to say that the Second Bank of the United States was rooted as deeply in Britain as it was in America.”
So by 1816, some authors claim the Rothschilds and their allies, some by now related by marriage, had taken control over the Bank of England and backed the new privately-owned central bank in America as well. With Napoleon’s defeat about the same time, they began to dominate the Bank of France as well.
After about a decade of monetary manipulations on the part of the Second Bank of the U.S., the American people, once again, had had just about enough. Opponents of the Bank nominated a famous senator from Tennessee, Andrew Jackson, the hero of the Battle of New Orleans, to run for president. His home he named “The Hermitage”. No one gave Jackson a chance initially. The Bank had long-ago learned how the political process could be controlled with money.
To the surprise and dismay of the Money Changers, Jackson was swept into office in 1828. Jackson was determined to kill the Bank at the first opportunity, and wasted no time to trying to do so. But the Bank’s 20 year charter didn’t come up for renewal until 1836, the last year of his second term – if he could survive that long. During his first term, Jackson contented himself with rooting out the Bank’s many minions from government service. He fired 2,000 of the 11,000 employees of the federal government.
In 1832, with his re-election approaching, the Bank struck an early blow, hoping Jackson would not want to stir up controversy. It asked Congress to pass a bank charter renewal bill four years early. Congress complied, and sent it to the President for signing. But Jackson weighed in with both feet. “Old Hickory,” never a coward, vetoed the bill. His veto message is one of the great American documents. It clearly lays out the responsibility of the American government towards its citizens – rich and poor.
“It is not our own citizens only who are to receive the bounty of our Government. More than eight millions of the stock of this bank are held by foreigners… It is easy to conceive that great evils to our country and its institutions might flow from such a concentration of power in the hands of a few irresponsible to the people. Is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country? Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence… would be more formidable and dangerous than a military power of the enemy…It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes… If [government] would confine itself to equal protection, and, as Heaven does its rains, shower its favor alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles. Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by act of Congress… If we can not at once, in justice to interests vested under improvident legislation, make our Government what it ought to be, we can at least take a stand against all new grants of monopolies and exclusive privileges, against any prostitution of our Government to the advancement of the few at the expense of the many, and in favor of compromise and gradual reform in our code of laws and system of political economy. . . . .
Jackson also declared: “If Congress has the right to issue paper money, it was given them to be used by themselves, and not to be delegated to individuals or corporations.”
Later that year, in July 1832, Congress was unable to override Jackson’s veto. Now Jackson had to stand for re-election. . . . .
The National Republican Party ran Senator Henry Clay against Jackson. Despite the fact that the Bank poured in over $3,000,000 into Clay’s campaign, an enormous sum at that time, Jackson was re-elected by a landslide in November of 1832.
Despite his presidential victory, Jackson knew the battle was only beginning: “The hydra of corruption is only scotched, not dead,” said the newly-elected President. . . . . But the Bank was not through fighting yet. .. . . . In a rare, public display of arrogance, Biddle (the Bank’s President) threatened to cause a national economic depression if the Bank were not rechartered. He declared war:
What a stunning revelation! Here was the pure truth, revealed with shocking clarity. Biddle intended to use the money contraction power given to the Bank to cause a massive depression until America gave in. Unfortunately, this has happened time and time again throughout U.S. history, though without the blunder of Biddle’s arrogant admission, and may be about to happen again in our time. . . . .
Nicholas Biddle made good on his threat. The Bank sharply contracted the money supply by calling in old loans and refusing to extend new ones. A financial panic ensued, followed by a deep economic depression. Predictably, Biddle blamed Jackson for the crash, saying that it was caused by the withdrawal of federal funds from the Bank. Unfortunately, his plan worked well. Wages and prices sagged. Unemployment soared along with business bankruptcies. The nation quickly went into an uproar. . . .
Six months after he had withdrawn funds from the bank, Jackson was officially censured by a resolution which passed the Senate by a vote of 26 to 20. It was the first time a President had ever been censured by Congress. Jackson lashed out at the Bank. “You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out.” . . . .
Then something close to a miracle occurred. The Governor of Pennsylvania, where the 2nd BUS was headquartered, came out supporting the President and strongly criticized the Bank. On top of that, Biddle had been caught boasting in public about the Bank’s plan to crash the economy. Suddenly the tide shifted. In April of 1834, the House of Representatives voted 134 to 82 against re-chartering the Bank.
On January 8, 1835, eleven years after taking office, Jackson paid off the final installment on the national debt which had been necessitated by allowing the banks to issue currency to buy government bonds, rather than simply issuing Treasury notes without such debt. He was the only President ever to pay off the national debt.
A few weeks later, on January 30, 1835, an assassin by the name of Richard Lawrence tried to shoot President Jackson. Both pistols misfired. Lawrence was later found not guilty by reason of insanity. After his release, he bragged to friends that powerful people in Europe had put him up to the task and promised to protect him if he were caught.
The following year, when its charter ran out, the Second Bank of the United States ceased functioning as the nation’s central bank. Biddle was later arrested and charged with fraud. He was tried and acquitted, but died shortly thereafter while still tied up in civil suits. The Second Bank of the US went belly up. The fourth American Bank War had ended in the fourth defeat for the Money Changers.
After his second term as President, Jackson retired to The Hermitage outside Nashville.. . . Jackson also warned future generations of Americans: “The bold effort the present bank had made to control the government… the distress it had wantonly produced … are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.”
Abe Lincoln and the Civil War
. . . . .One month after the inauguration of Abraham Lincoln, the first shots of the American Civil War were fired at Fort Sumter, South Carolina on April 12, 1861. The fifth and final American Bank War was beginning. Certainly slavery was a cause for the Civil War, but not the primary cause. Lincoln knew that the economy of the South depended upon slavery and so (before the Civil War) he had no intention of eliminating it. Lincoln had put it this way in his inaugural address only one month earlier: “I have no purpose, directly or indirectly, to interfere with the institution of slavery in the states where it now exists. I believe I have no lawful right to do so, and I have no inclination to do so.”
Even after the first shots were fired at Fort Sumter, Lincoln continued to insist that the Civil War was not about the issue of slavery: “My paramount objective is to save the Union, and it is not either to save or destroy slavery. If I could save the Union without freeing any slave, I would do it.”
So what was the Civil War all about? There were many factors at play. Northern industrialists had used protective tariffs to prevent their southern states from buying cheaper European goods. Europe retaliated by stopping cotton imports from the South. The Southern states were in a financial bind. They were forced to pay more for most of the necessities of life while their income from cotton exports plummeted. The South grew increasingly angry.
But there were other factors at work. The Money Changers were still stung by America’s withdrawal from their control 25 years earlier. Since then, America’s wildcat economy, despite the presence of fractional reserve banking with its attendant booms and busts, had made the nation rich – a bad example for the rest the world.
The central bankers now saw an opportunity to use the North/South divisions to split the rich new nation – to divide and conquer by war. Was this just some sort of wild conspiracy theory? Well, let’s look at what a well placed observer of the scene had to say at time.
This was Otto von Bismarck, Chancellor of Germany, the man who united the German states in 1871. A few years later, in 1876, he is quoted as saying: “It is not to be doubted, I know of absolute certainty,” Bismarck declared, “that the division of the United States into two federations of equal power was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the United States, if they remained as one block and were to develop as one nation, would attain economic and financial independence, which would upset the capitalist domination of Europe over the world.”
Within months after the first shots were fired at Fort Sumter, the central bankers loaned Napoleon III of France (the nephew of the Waterloo Napoleon) 210 million francs to seize Mexico and station troops along the southern border of the U.S., taking advantage of the Civil War to violate the Monroe Doctrine and return Mexico to colonial rule.
We add another note about The Monroe Doctrine: It . . . was a U.S. policy of opposing European colonialism in the Americas beginning in 1823. It stated that further efforts by European nations to take control of any independent state in North or South America would be viewed as “the manifestation of an unfriendly disposition toward the United States.” At the same time, the doctrine noted that the U.S. would recognize and not interfere with existing European colonies nor meddle in the internal concerns of European countries. The Doctrine was issued in 1823 at a time when nearly all Latin American colonies of Spain and Portugal had achieved or were at the point of gaining independence from the Portuguese and Spanish Empires. President James Monroe first stated the doctrine during his seventh annual State of the Union Address to Congress. The term “Monroe Doctrine” itself was coined in 1850 By the end of the 19th century, Monroe’s declaration was seen as a defining moment in the foreign policy of the United States and one of its longest-standing tenets. It would be invoked by many U.S. statesmen and several U.S. presidents, including Ulysses S. Grant, Theodore Roosevelt, John F. Kennedy, Ronald Reagan and many others . . . . https://en.wikipedia.org/wiki/Monroe_Doctrine
No matter what the outcome of the Civil War, it was hoped that a war-weakened America, heavily indebted to the Money Changers, would open up Central and South America once again to European colonization and domination – the very thing America’s Monroe Doctrine had forbade in 1823.
At the same time, Great Britain moved 11,000 troops into Canada and positioned them along America’s northern border. The British fleet went on war alert should their quick intervention be called for.
Lincoln knew he was in a bind. He agonized over the fate of the Union. There was a lot more to it than just differences between the North and the South. That’s why his emphasis was always on “Union” and not merely the defeat of the South. But Lincoln needed money to win.
In 1861, Lincoln and his Secretary of the Treasury, Salmon P. Chase, went to New York to apply for the necessary war loans. The Money Changers, anxious to maximize their war profits, only offered loans at 24-36% interest. Lincoln said thanks, but no thanks, and returned to Washington. He sent for an old friend, Colonel Dick Taylor of Chicago, and put him onto the problem of financing the War. At one particular meeting, Lincoln asked Taylor how else to finance the war. Taylor put it this way: “Why, Lincoln, that is easy; just get Congress to pass a bill authorizing the printing of full legal tender treasury notes… pay your soldiers with them and go ahead and win your war with them also.”
When Lincoln asked if the people of the United States would accept the notes, Taylor said: “The people or anyone else will not have any choice in the matter, if you make them full legal tender. They will have the full sanction of the government and be just as good as any money … the stamp of full legal tender by the Government is the thing that makes money good any time, and this will always be as good as any other money inside the borders of our country. “
So that’s exactly what Lincoln did. From 1862 to 1865, with Congressional authorization, he printed up $432,000,000 of the new bills. In order to distinguish them from private bank notes in circulation, he had them printed with green ink on the back side. That’s why the notes were called “Greenbacks.” With this new money, Lincoln paid the troops, and bought their supplies. During the course of the war, nearly all of the 450 million dollars of Greenbacks authorized by Congress were printed at no interest to the federal government.
By now Lincoln realized who was really pulling the strings and what was at stake for the American people. Lincoln understood the matter better than even Jackson apparently had. This is how he explained his monetary views: “The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of consumers… The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government’s greatest creative opportunity… By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest. The financing of all public enterprises and the conduct of the Treasury will become matters of practical administration. Money will cease to be master and become the servant of humanity.”
. . . . .Keep in mind, by this time the European monarchs were already chained to their private central banks, hence the bankers’ concern to preserve their captive monarchs. Within four days of the passage of the law which allowed Greenbacks to be issued, bankers met in convention in Washington to discuss the situation. It was agreed that Greenbacks would surely be their ruin. Something had to be done. They devised a scheme gradually to undermine the value of the Greenbacks.
Seemingly unimportant limitations on the use of Greenbacks (printed on the green back), insisted on by the bankers, forbidding their use to pay import duties and interest on the public debt, were utilized by the banks to slap a surcharge on Greenbacks of up to 185%. This undermined the confidence of the people in Greenbacks and necessitated further concessions to the bankers to obtain more, discounted as the Greenbacks now were.
This scheme was effective – so effective that the next year, 1863, with Federal and Confederate troops beginning to mass for the decisive battle of the Civil War, and the Treasury in need of further Congressional authority at that time to issue more Greenbacks, Lincoln gave in to the pressure, which he described: “They persist, they have argued me almost blind – I am worse off than St. Paul. He was in a strait between two. I am in a strait between twenty and they are bankers and financiers.”
Lincoln allowed the bankers to push through the National Banking Act of 1863 in exchange for their support for the urgently needed additional Greenbacks. This act created “National Banks” (hence the N.A. still in use after National banks’ names) and gave them a virtual tax-free status. The new banks also got the exclusive power to create the new form of money – National Bank Notes. Though Greenbacks continued to circulate, their quantity was limited and no more were authorized after the war.
On June 13, 1863, according to Judge Rutherford’s book, “Vindication” this letter was sent from the Rothschilds’ London office, which does, in fact, accurately assess the National Banking Act of 1863:
“Rothschild Brothers, Bankers, London, June 25th, 1863
Messrs Ikleheimer, Morton and Vandergould, No 3 Wall St., New York, US.A.
A Mr. John Sherman has written us from a town in Ohio, U.S.A., as to the profits that may be made in the National Bankng business under a recent act of your Congress, a copy of which act accompanied his letter. Apparently this act has been drawn upon the plan formulated here last summer by the British Bankers Association and by that Association recommended to our American friends as one that if enacted into law, would prove highly profitable to the banking fraternity throughout the world.
Mr. Sherman declares that there has never been such an opportunity for capitalists to accumulate money, as that presented by this act, and that the old plan of State Banks is so unpopular, that the new scheme will, by contrast, be most favorably regarded, notwithstanding the fact that it gives the National Banks an almost absolute control of the National finance.
‘The few who can understand the system,’ he says, ‘will either be so interested in its profits, or so dependent of its favors that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantages that capital derives from the system, will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.’
Please advise fully as to this matter and also state whether or not you will be of assistance to us, if we conclude to establish a National Bank in the City of New York. If you are acquainted with Mr. Sherman (he appears to have introduced the Banking Act) we will be glad to know something of him. If we avail ourselves of the information he furnished, we will, of course, make due compensation.
Awaiting your reply, we are
Your respectful servants, Rothschild Brothers”
From this point on, the U.S. money supply would be created in parallel with an equivalent quantity of debt by bankers buying U.S. government bonds, which they used as reserves for National Bank Notes, the nation’s new form of money, instead of by direct debt-free issue by the government, as were Lincoln’s Greenbacks. The banks got interest from the government on the bonds and from borrowers of their Bank Notes – thus almost doubling their interest income. As historian John Kenneth Galbraith explained: “In numerous years following the war, the Federal government ran a heavy surplus. It could not [however] pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.”
Predictably, the new National Banks quickly applied pressure to Congress to have state bank notes taxed out of existence. Congress complied. Thus the fifth American Bank War progressed in small stages in favor of the Money Changers, culminating in passage of the Federal Reserve Act of 1913 and the National Bank Act of 1935. . . .
. . .. .Victorious in the Civil War, had he lived, as his statements quoted above and following make – abundantly clear, Lincoln would surely have killed the National Banks’ money monopoly extracted from him during the war. On November 21, 1864, he wrote a friend
“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 trem- } ble 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 a few hands and the republic is destroyed.”
Shortly before Lincoln was assassinated, his former Secretary of the Treasury, Salrnon P. Chase, bemoaned his role in helping secure the passage of the National Banking Act only one year earlier: “My agency in promoting the passage of the National Banking Act was the greatest financial mistake in my life. It has built up a monopoly which affects every interest in the country.”
Return of the Gold Standard
. . . . .”Right after the Civil War there was considerable talk about reviving Lincoln’s brief experiment with the Constitutional monetary system. Had not the European money-trust intervened, it would have no doubt become an established institution.”
. . . . .On April 12, 1866, nearly one year to the day of Lincoln’s assassination, Congress went to work at the bidding of the European central-banking interests. It passed the Contraction Act, authorizing the Secretary of the Treasury to begin to retire the Greenbacks in circulation and to contract the money supply.
Authors Theodore R. Thoren and Richard F. Warner explained the results of the money contraction in their book on the subject, The Truth in Money Book: “The hard times which occurred after the Civil War could have been avoided if the Greenback legislation had continued as President Lincoln had intended. Instead, there were a series of ‘money panics’ – what we call ‘recessions’ – which put pressure on Congress to enact legislation to place the banking system under centralized control. Eventually the Federal Reserve Act was passed on December 23, 1913.”
In other words, the Money Changers wanted two things: 1) the re-institution of a privately-owned central bank under their exclusive control, and, 2) an American currency issued by them and backed by their gold. . . . . .
. . . . .Today, bank-funded economists try to sell the idea that recessions and depressions are a natural part of something they call the “business cycle.” One economist actually tried to explain business cycles with reference to sun spots! The truth is, our money supply is completely manipulated now, just as it was after the Civil War, just as it was by Nicholas Biddle and the 2nd BUS (during Jackson’s Adm.).. . . .
How did money become so scarce? Simple – bank loans were called in and no new ones were given. In addition, Greenbacks were retired by the millions and silver coins were melted down.
On March 13, 1868, James Rothschild wrote to his U.S. agent, Belmont, “warning ruin to those who might oppose the payment of U.S. Bonds in coin, or who might advocate their liquidation in greenbacks.” Another scheme was afoot.
On March 18, 1869, Congress, at these bankers’ bidding, passed the Credit Strengthening Act which provided that U.S. bonds purchased during the Civil War with greenbacks the bankers had discounted on receipt to as little as $.35 on the dollar, would be repaid, in gold at full value. By this means the Treasury paid the bankers some $500 million more than they had paid for the bonds, plus the interest due. A colossal sum, equivalent to well over 5 billion dollars today, was thus transferred from the Treasury to the Money Changers. Thereafter, their power over the U.S., thus mightily augmented, continually increased.
In 1872, a man named Ernest Seyd was given £100,000 (about $5,000,000 then) by the Bank of England and sent to America to bribe the necessary Congressmen to get silver “demonetized to further reduce the money supply.” He was told that if this was not sufficient, to draw an additional £100,000, “or as much more as was necessary.” The next year, Congress passed the Coinage Act of 1873 and the minting of silver dollars abruptly stopped.
In fact, Rep. Samuel Hooper, who introduced the bill in the House, acknowledged that Mr. Seyd actually drafted the legislation. But it gets worse than that. In 1874, Seyd himself admitted who was behind the scheme: “I went to America in the winter of 1872-73, 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.”
The international bankers accomplished the same demonetization of silver in Germany (1871-73); the Latin Monetary Union (France, Italy, Be1gium, Switzerland) in 1873-74; the Scandinavian Union (Denmark, Norway and Sweden) in 1875-76; and the Netherlands in 1875-76. Within five short years, the gold standard was thus imposed worldwide, with China being the only significant holdout.. . . .
On February 28, 1878, Congress passed the Sherman Law allowing the minting of a limited number of silver dollars, ending a 5-year hiatus. This did not end gold-backing of the currency, however. Nor did it completely free silver. Previous to 1873, anyone who brought silver to the U.S. mint could have it struck into silver dollars free of charge. No longer. But at least some silver money began to flow back into the economy again. Under political pressure, the bankers loosened up on loans for awhile and the post-Civil War depression was finally ended.
Three years later, the American people elected Republican James Garfield President. Garfield understood how the economy was being manipulated. As a Congressman, he had been chairman of the Appropriations Committee, and was a member of the Banking and Currency Committee. After his inauguration, he slammed the Money Changers publicly in 1881: “Whoever controls the volume of money in any country is absolute master of all industry and commerce… and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”
Garfield understood. Within a few weeks of making this statement, on July 2 of 1881, President Garfield was assassinated.
. . . . By 1896, the issue of more silver money had become the central issue in the Presidential campaign. William Jennings Bryan, a Senator from Nebraska ran for President as a Democrat on the “Free Silver” issue. His father had been an ardent Greenbacker. At the Democratic National Convention in Chicago, he made an emotional speech which won him the nomination entitled, “Crown of Thorns and Cross of Gold.” Though Bryan was only 36 years old at the time, this speech is widely regarded as the most famous oration ever made before a political convention. In the dramatic conclusion. Bryan said: “We will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of old.”
The bankers lavishly supported the Republican candidate, William McKinley, who favored the gold standard. The resulting contest was among the most fiercely contested Presidential races in American history.
Bryan made over 600 speeches in 27 states. Bryan stood with the Greenbackers: “The right to coin and issue money is a function of Government. It is a part of sovereignty and cannot, with safety, be delegated to private individuals.”
The McKinley campaign got manufacturers and industrialists to inform their employees that if Bryan were elected, all factories and plants would close and there would be no work. The ruse succeeded. McKinley beat Bryan by a small margin.
Some authors believe, and the course of history supports them, that under the bankers’ President, McKinley, before the summer of 1897, the United States entered into a secret agreement (no papers of any sort were signed) that the U.S. would support England in its inevitable conflict with Germany – the product of Bismarck’s nation building.
This was, de facto, an agreement surrendering American independence into a worldwide alliance (France being a minor partner) to dominate the world, presided over by the Money Changers who dominated the Bank of England from the City, in London, and through it, the British government.
Almost immediately, in 1898, the Spanish-American War was begun. Later, the U.S. was dragged into two World Wars (and other minor ones) to secure the worldwide imperialistic designs of the Money Changers. The 1897 Agreement made the U.S. a principal in the British Empire, which has been succeeded by the international financial empire of the Money Changers, defended and expanded by U.S., and more recently, by U.S.-led U.N. armed forces.
Bryan ran for president again in 1900 and in 1908, but fell short each time. But the threat his presence presented to the National Bankers afforded the Republican alternatives, Roosevelt and Taft, a grating measure of independence from the bankers (Roosevelt mildly opposed their monopolies and Taft was unenthusiastic about their proposed central bank legislation), who therefore shifted support to Wilson in 1912.
During the 1912 Democratic Convention, Bryan was a powerful figure who stepped aside to help Woodrow Wilson win the nomination. When Wilson became President he appointed Bryan as Secretary of State. But Bryan soon became disenchanted with the Wilson administration.
Bryan served only two years . . . before resigning in 1915 over the highly-suspicious sinking of the Lusitania, the event which was used to drive America into World War I.
Although William Jennings Bryan never gained the Presidency, his efforts delayed the Money Changers for seventeen years from attaining their next goal – a new, privately-owned central bank for America. But like Wilson, Bryan was deceived as to the true import of the Federal Reserve Act of 1913. Both initially supported it. Both later publicly repented over their support of 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.”
J.P. Morgan and the Crash of 1907/Rockefeller
Now it was time for the Money Changers to get back a new, private central bank for America, the fifth private central bank to control and manipulate America’s money supply.
A major final panic would be necessary to focus the nation’s attention on the supposed need for a central bank. The thin rationale offered was that only a central bank can prevent widespread bank failures and stabilize the currency. The critically important feature of who would own and control it was an issue carefully avoided.
Before the Civil War, the Rothschilds had previously used, as principal agents in the U.S., J.L and S.I Joseph & Company. Later George Peabody, an American bond salesman, traveled to London before the Civil War and developed a relationship with Nathan Rothschild, which became a highly profitable one for Peabody. His business expanding, he took on an American partner, Junius Morgan, father of J.P.
In 1857 Junius was the recipient of a £800,000 loan from the Bank of England at a time of financial crisis when many other firms were denied such loans. Junius Morgan became the Union’s financial agent in Britain, often closely associated with the Rothschilds.
In the post-Civil War period the connection between Morgan and the Rothschilds was certainly well known in financial circles. As one writer noted: “Morgan’s activities in 1895-1896 in selling U.S. gold bonds in Europe were based on his alliance with the House of Rothschild.”
After his father’s death, J.P. Morgan took on a British partner, Edward Grenfell, a long-time director of the Bank of England. There is speculation the Morgans became the Rothschilds’ principal agents in the U.S., eventually to be eclipsed by the Rockefellers.
Early in this century, in U.S. finance, the press and in politics, all lines of power converged on the financial houses of J.P. Morgan (J.P. Morgan Company; Bankers Trust Company; First National Bank of New York, Guaranty Trust), the Rockefellers (National City Bank of New York; Chase National Bank; Chemical Bank); Kuhn, Loeb & Company (a representative of the Rothschild banks; National City Bank of New York) and the Warburg’s (Manhattan Corp. bank).
Morgan was clearly the most powerful banker in America, and like his father, worked as an agent for the Rothschild family, but also for his own interests. He helped finance the monopolization of various industries, consolidated big steel holdings into a monopoly by buying Andrew Carnegie’s steel companies, and owned numerous industrial companies and banks.
Interestingly, though reputedly America’s richest banker, upon J.P.’s death, his estate contained $68 million dollars, only 19% of J.P. Morgan company. The bulk of the securities most people thought he owned, were in fact owned by others. When J.P. Morgan, Jr. (Jack) died in 1943 his estate was valued at only $16 million. By contrast, when Alphonse Rothschild died in 1905 his estate contained $60 million in U.S. securities alone.
John D. Rockefeller and his brother William used their enormous profits from the Standard Oil monopoly to dominate the National City Bank, merged in 1955 with Morgan’s and Kuhn, Loeb & Company’s First National Bank of New York, which resulted in Citibank (Citicorp).
Similarly, John D. bought control of Chase National Bank, and merged it with Warburg’s Manhattan bank, resulting in the Rockefeller-dominated Chase Manhattan bank, recently merged with the Rockefeller-controlled Chemical Bank.
The combination of the Rockefeller-controlled Chase-Manhattan/Citicorp banks gives them majority control over the New York Fed (52%), which completely dominates the Federal Reserve System. But the New York Fed was controlled by Rockefeller long before any majority ownership was reached.
By these mergers, the Rockefellers gradually replaced the Morgans, Schiffs and Warburgs as the principal Rothschild allies in the U.S. . . . . .
The relationship between the Rothschilds and Rockefellers was initially one of debtor/creditor, as the Rothschild’s provided the seed money for J.D. Rockefeller to monopolize the U.S. oil refinery business . . . . . Subsequently, the relationship entered into measured competition here (local wars between subordinates sometimes resulting) and cooperation there, but like the competition between the other banks, this too has resolved into a power sharing arrangement.
The centers of power are not easy to identify and remain to a large extent hidden through carefully concealed and interlocking directorships, off-shore accounts, nominee holdings, private foundations, trusts and the rest. But the top international bankers are vested with the last word in economic and political power.
Most commentators are of the opinion that the Rothschilds are definitely the dominant partner; citing for example, the 1950’s appointrnent of J. Richardson Dilworth, partner of Kuhn, Loeb & Co. (a satellite of the Rothschild family) who left to take control of the Rockefeller family purse strings, where he managed the investments of Rockefeller descendants in as many as 200 private foundations.
However, the operative relationship described by Georgetown historian Carroll Quigley is “feudalistic”, that is, analogous to the relationships between a feudal king and the aristocracy consisting of dukes, earls, barons, etc., all mutually supportive, while safeguarding their own turf and “independence”, expanding it when permitted without violating the fundamental hierarchical relationships – violations can result in wars.
Lesser members of this “feudalistic” international banking plutocracy include or have included, the Sassoon’s (in India and the Far East); Lazard Freres France; Mendelsohn (Netherlands); Israel Moses Seif (Italy); Kuhn, Loeb (U.S.); Goldman Sachs (U.S.) Lehman Bros. (U.S.); Schroeders (Germany) ; Hambros (Scandinavia), the Bethmanns, Ladenburgs, Erlangers, Sterns, Seligmans, Schiffs, Speyers, Abs, Mirabauds, Mallets, Faulds, and many others. The ruling clique in most nations now, excepting a portion ofthe Muslim world and a few so called “rogue” states, are equivalent to local barons, subservient to the higher banking dukes, earls, etc.
This generally reaches right down to the city level, where the dominant local bankers are usually the petty aristocracy, affiliated through banking and commercial relationships with their banking “barons” and so on.
As Georgetown historian Professor Carroll Quigley has noted, if it were possible to detail the asset portfolios of the banking plutocrats one would find the title-deeds of practically all the buildings, industries, farms, transport systems and mineral resources of the world. Accounting for this, Quigley wrote: “Their secret is that they have annexed from governments, monarchies, and republics the power to create the world’s money on debt-terms requiring tribute both in principal and interest.”
. . . .To return to 1902: President Theodore Roosevelt allegedly went after Morgan and his friends by using the Sherman Anti-Trust Act to try to break up their industrial monopolies. Actually, Roosevelt did very little to interfere in the growing monopolization of American industry by the bankers and their surrogates.
For example, Roosevelt supposedly broke up the Standard Oil monopoly. But it wasn’t really broken up at all. It was merely divided into seven corporations, all still controlled by the Rockefellers, who had been originally financed by the Rothschild-controlled National City Bank of Cleveland. The public was aware of this thanks to political cartoonists like Thomas Nast who referred to the bankers as the “Money Trust.”
By 1907, the year after Teddy Roosevelt’s re-election, Morgan decided it was time to try for a central bank again. Using their combined financial muscle, Morgan and his friends were able to crash the stock market. Thousands of small banks were vastly overextended. Some of Morgan’s principal competitors went under. Some had reserves of less than one percent (1%), thanks to the fractional reserve banking technique.
Within days, runs on banks were commonplace across the nation. Now Morgan stepped into the public arena and offered to prop up the faltering American economy by supporting failing banks with money he generously offered to create out of nothing.
It was an outrageous proposal, worse than even fractional reserve banking, but, in a panic, Congress let him do it. Morgan manufactured $200 million worth of this completely reserveless, private money – and bought things with it, paid for services with it, and sent some of it to his branch banks to lend out at interest.
His plan worked. Soon, the public regained confidence in money in general and quit hoarding their currency. But in the interim, many small banks failed and banking power was further consolidated into the hands of a few large banks. By 1908 the arranged panic was over and Morgan was hailed as a hero by the president of Princeton University, a naive man by the name of Woodrow Wilson, who naively wrote: “All this trouble could be averted if we appointed a committee of six or seven public-spirited men like J.P. Morgan to handle the affairs of our country.”
Economic textbooks would later explain that the creation of the Federal Reserve System was the direct result of the panic of 1907, quote: “with its alarming epidemic of bank failures: the country was fed up once and for all with the anarchy of unstable private banking.”
But Minnesota Congressman Charles A. Lindbergh, Sr., the father of the famous aviator, “Lucky Lindy,” later explained that the Panic of 1907 was really just a scam: “The Money Trust caused the 1907 panic… those not favorable to the Money Trust could be squeezed out of business and the people frightened into demanding changes in the banking and currency laws which the Money Trust would frame.”
Since the passage of the National Banking Act of 1863, the National Banks that Act established as a cartel had been able to coordinate a series of booms and busts. The purpose was not only to fleece the American public of their property, but later to claim that the decentralized banking system was basically so unstable that it had to be further consolidated and control centralized into a central bank once again, as it had been before Jackson ended it.
The supremely critical economic issue of private vs. state ownership and control was carefully skirted, as was the fractional reserve banking fraud causing the booms and busts.
After the crash, Teddy Roosevelt, in response to the Panic of 1907, signed into law a bill creating something called the National Monetary Commission. The Commission was to study the banking problem and make recommendations to Congress. Of course, the Commission was packed with Morgan’s friends and cronies.
The Chairman was a man named Senator Nelson Aldrich from Rhode Island. Aldrich represented the Newport, Rhode Island homes of America’s richest banking families and was an investment associate of J.P. Morgan, with extensive bank holdings. His daughter married John D. Rockefeller, Jr., and together they had five sons: John, Nelson (who would become the Vice-President in 1974), Laurence, Winthrop, and David (the head of the Council on Foreign Relations and former Chairman of Chase Manhattan bank).
As soon as the National Monetary Commission was set up, Senator Aldrich immediately embarked on a two-year tour of Europe, where he consulted at length with the private central bankers in England, France and Germany. The total cost of his trip to the taxpayers was $300,000 – a huge sum in those days.
Shortly after his return, on the evening of November 22, 1910, seven of the wealthiest and most powerful men in America boarded Senator Aldnch’s private rail car and in the strictest secrecy journeyed to Jekyll Island, off the coast of Georgia.
With Aldrich and three Morgan representatives was Paul Warburg. Warburg had been given a $500,000 per year salary to lobby for passage of a privately-owned central bank in America by the investment firm, Kuhn, Loeb & Company. Warburg’s partner in this firm was a man named Jacob Schiff, the grandson of the man who shared the Green Shield house with the Rothschild family in Frankfort.
Schiff, as, we’ll later find out, was in the process of spending $20 million to finance the overthrow of the Czar of Russia. These three European banking families, the Rothschilds, the Warburgs, and the Schiffs were interconnected by marriage down through the years, just as were their American banking counterparts, the Morgans, Rockefellers and Aldrichs.
Secrecy was so tight that all seven primary participants were cautioned to use only first names to prevent servants from learning their identities. Years later one participant, Frank Vanderlip, president of Rockefeller’s National City Bank of New York and a representative of the Kuhn, Loeb & Company interests confirmed the Jekyll Island trip in the February 9, 1935 edition of the Saturday Evening Post: “I was as secretive – indeed, as furtive – as any conspirator… Discovery, we knew, simply must not happen, or else all our time and effort would be 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.”
The participants came together to figure out how to solve their major problem – how to bring back a privately-owned central bank – but there were other problems that needed to be addressed as well. First of all, the market share of the big national banks was shrinking fast.
In the first ten years of the century, the number of U.S. banks had more than doubled to over 20,000. By 1913, only 29% of all banks were National Banks and they held only 57% of all deposits. As Senator Aldrich later admitted in a magazine article: “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 county.”
Therefore, something had to be done to bring these new banks under their control. As John D. Rockefeller put it: “Competition is a sin.” Actually, moralists agree that monopoly abuse is a sin. But why quibble when there’s money to be made.
Secondly, the nation’s economy was so strong that corporations were starting to finance their expansion out of profits instead of taking out huge loans from large banks. In the first 10 years of the new century, 70% of corporate funding came from profits. In other words, American industry was becoming independent of the Money Changers, and that trend had to be stopped.
All the participants knew that these problems could be hammered out into a workable solution, but perhaps their biggest problem was a public relations problem – the name of the new central bank. That discussion took place in one of the many conference rooms in the sprawling hotel now known as the Jekyll Island Club.
Aldrich believed that the word “bank” should not even appear in the name. Warburg wanted to call the legislation the National Reserve Bill or the Federal Reserve Bill. The idea here was to give the impression that the purpose of the new central bank was to stop bank runs, but also to conceal its monopoly character. However, it was Aldrich, the egotistical politician, who insisted it be called the Aldrich Bill.
After nine days at Jekyll Island, the group dispersed. The new central bank (with twelve branches, ultimately) would be very similar to the old Bank of the United States. It would eventually be given a monopoly over the national currency and create that money out of nothing. . . . .
Once the participants left Jekyll Island, the public relations blitz was on. The big New York banks pooled an “educational” fund of five million dollars to finance professors at respected universities to endorse the new bank. Woodrow Wilson at Princeton was one of the first to jump on the bandwagon.
But the bankers’ subterfuge didn’t work. The Aldrich Bill was quickly identified as a banker’s bill – a bill to benefit only what had become known as the “Money Trust.” As Congressman Lindbergh put it during the Congressional debate: “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.”
Seeing they didn’t have the votes to win in Congress, the Republican leadership never brought the Aldrich Bill to a vote. President Taft would not back the Aldrich bill. The bankers quietly decided to move to track two, the Democratic alternative. They began financing Woodrow Wilson as the Democratic nominee. He was considered far more tractable than Bryan. As historian James Perloff put it, Wall Street financier Bernard Baruch was put in charge of Wilson’s education:
To increase Wilson’s chances of defeating the popular Taft, they funded the unwitting Teddy Roosevelt in order to split the Republican vote – a tactic often used since to insure getting their man in. The campaigning Roosevelt said: “Issue of currency should be lodged with the government and be protected from domination by Wall Street… We are opposed to the Aldrich Bill because its provisions would place our currency and credit system in private hands.”
This was certainly correct, and it helped draw votes from Taft and got Wilson elected.
Fed Act of 1913
During the Presidential campaign, the Democrats were careful to pretend to oppose the Aldrich Bill. As Rep. Louis McFadden, himself a Democrat as well as chairman of the House Banking and Currency Committee, explained it 20 years after the fact: “The Aldrich bill was condemned in the platform … when Woodrow Wilson was nominated… The men who ruled the Democraic 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, established here in our free 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.”
Once Wilson was elected, Warburg, Baruch and company advanced a “new” plan, which Warburg named the Federal Reserve System. The Democratic leadership hailed the new bill, called the Glass-Owen Bill, as something radically different from the Aldrich Bill. But in fact, the bill was virtually identical in every important detail.
In fact, so vehement were the Democratic denials of similarity to the Aldrich Bill that Paul Warburg – the father of both bills – had to step in privately to reassure his paid fiends in Congress that the two bills were virtually identical: “Brushing aside the external differences affecting the ‘shells,’ we find the ‘kernels ‘ of the two systems very closely resembling and related to one another.”
But that admission was of private consumption only. Publicly, the Money Trust trotted out Senator Aldrich and Frank Vanderlip, the president of the Morgan/Rockefeller dominated National City Bank of New York and one of the Jekyll Island seven, to offer token opposition to the new Federal Reserve System.
Years later, however, Vanderlip admitted in the Saturday Evening Post that the two measures were virtually identical:
Saturday Evening Post,
February 9, 1935, p. 25,
“From Farmboy to Financier Although the Aldrich Federal Reserve Plan was defeated when it bore the name Aldrich, nevertheless its essential points were all contained in the plan that finally was adopted.”
As Congress neared a vote, they called Ohio attorney Alfred Crozier to testify. Crozier noted the similarities between the Aldrich Bill and the Glass-Owen Bill: “The … bill grants just what Wall Street and the big boys for twenty-five years 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 among the people scarce or plenty.”
Exactly. During the debate on the measure, Senators complained that the big banks were using their financial muscle to influence the outcome. “There are bankers in this country who are enemies of the public welfare,” declared one Senator. What an understatement!
Despite the charges of deceit and corruption, the bill was finally rammed through the House and Senate on December 23, 1913, after many Senators and Representatives had left town for the Holidays, having been assured by the leadership that nothing would be done until long after the Christmas recess. On the day the bill was passed, Congressman Lindbergh prophetically warned his countrymen that: “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 years removed… The worst legislative crime of the ages is perpetrated by this banking bill.”
On top of all this, only weeks earlier, Congress had finally passed a bill legalizing the income tax. Why was the income tax law importt? Because bankers finally had in place a system which would run up a virtually unlimited federal debt. How would the interest on this debt be repaid, never mind the principal? Remember, a privately-owned central bank creates the principal out of nothing. The federal government was small then. Up to then, it had subsisted merely on tariffs and excise taxes.
Just as with the Bank of England, the interest payments had to be guaranteed by direct taxation of the people. The Money Changers knew that if they had to rely on contributions from the states, eventually the individual state legislatures would revolt and either refuse to pay the interest on their own money, or at least bring political pressure to bear to keep the debt small.
It is interesting to note that in 1895 the Supreme Court had found a similar income tax law to be unconstitutional. The Supreme Court even found a corporate income tax law unconstitutional in 1909. As a result, in October, 1913 Senator Aldrich hustled a bill through the Congress for a constitutional amendment allowing income tax.
The proposed 16th Amendment to the Constitution was then sent to the state legislatures for approval, but some critics claim that the 16th Amendment was never passed by the necessary 3/4s of the states. In other words, the 16th Amendment may not be legal. But the Money Changers were in no mood to debate the fine points. Without the power to tax the people directly and bypass the states, the Federal Reserve Bill would be far less useful to those who wanted to drive America deeply into their debt.
A year after passage of the Federal Reserve Bill, Congressman Lindbergh explained how the Fed created what we have come to call the “Business Cycle” and how they use it to their advantage:
“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 cause the pendulum of a rising and falling market to swing gently 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. 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 control finance…”
Congressman Lindbergh was correct on all points. What he didn’t realize was that most European nations had already fallen prey to the private central bankers decades or even centuries earlier. But he also mentions the interesting fact that only one year later, the Fed had cornered the market in gold: According to Lindbergh, “Already the Federal Reserve banks have cornered the gold and gold certificates…”
But Congressman Lindbergh was not the only critic of the Fed. Congressman Louis McFadden, the Chairman of the House Banking and Currency committee from 1920 to 1931 remarked that the Federal Reserve Act brought about: “A super state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure.”
Notice how McFadden saw the international character of the stockholders of the Federal Reserve.
Another chairman of the House Banking and Currency Committee in the 1960s, Wright Patman from Texas, put it this way: “In the United States today 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.”
Even the inventor of the electric light, Thomas Edison, joined the fray in criticizing the system of the Federal Reserve: “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… 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 one promise fattens the userers and the other helps the people.”
Three years after the passage of the Federal Reserve Act, even President Wilson began to have second thoughts about what he had unleashed during his first term in office. “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.”
Before his death in 1924, President Wilson realized the full extent of the damage he had done to America, when he sadly confessed: “I have unwittingly ruined my government.”
So finally, the Money Changers, those who profit by creating and manipulating the amount of money in circulation, had their privately owned central bank installed again in America. The major newspapers (which they owned or heavily influenced through their advertising) hailed passage of the Federal Reserve Act of 1913, telling the public that “now depressions could be scientifically prevented.” The fact of the matter was that now depressions could be scientifically initiated.
By bribery, deceitful political manipulation and abuse of their press influence and ownership, they had usurped the monetary function of government. The U.S. government was left with only trivial relics of its sovereign monetary power: the minting of coins (a tiny fraction of the money supply, but a debt-free one); the re-printing of Lincoln’s U.S. notes (Greenbacks, but limited to $300,000,000 total); and issuing a limited number of gold and silver certificates.
As Mr. James Rand, former President of Remington Rand, Inc. well said:
“No government should permit such coercive power over its own credit to be held by any one group or class as the privately owned Federal Reserve System holds today. No government should delegate to private interests the control over the purchasing power of money. The issue must be faced and settled. There can be no complete restoration of confidence until the conflict between private and government control over money is ended.”
The 5th American Bank War ended in victory for the Money Changers and the defeat of the American people. In the interim, the Money Changers’ grip has gradually tightened, hiding this history, propagandizing our people to support their various nefarious activities through their media control, and choking our liberties by degrees. Whether America will escape their tightening grip is an open question, but is increasingly unlikely.
Morgan/World War I
Economic power was now centralized to a tremendous extent. Now it was time for a war – a really big war – in fact, the First World War. Of course, as the central bankers knew, nothing creates debts like warfare. England was the best example up to that time. During the 119-year period between the founding of the Bank of England and Napoleon’s defeat at Waterloo, England had been at war for 56 years. And much of the remaining time, she’d been preparing for war.
In World War I, the German Rothschilds loaned money to the Germans, the British Rothschilds loaned money to the British, and the French Rothschilds loaned money to the French. It was all highly profitable. In America, J.P. Morgan was the sales agent for war materials to both the British and the French.
In fact, six months into the war, Morgan became the largest consumer on earth, spending $10 million a day. His offices at 23 Wall Street were mobbed by brokers and salesmen trying to cut a deal. In fact, it got so bad that the bank had to post guards at every door and at the partners’ homes as well.
Other Rothschild allies in the United States made out as well from the war. President Wilson appointed Bernard Baruch to head the War Industries Board. According to historian Jarnes Perloff, both Baruch and the Rockefellers profited by some $200 million during the war.
But profits were not the only motive. There was also revenge and power. The Money Changers never forgave the Czars for their opposition nor for supporting Lincoln during the Civil War. Also, Russia was the last major European nation to refuse to give in to the privately-owned central bank scheme.
Three years after World War I broke out, the Russian Revolution toppled the Czar. Jacob Schiff of Kuhn, Loeb & Company bragged on his deathbed that he had spent $20 million towards the defeat of the Czar. But the truth was that much of that money funded the communist coup d’etat replacing the democratically elected Kerensky regime, which had replaced the Czar months earlier.
The bankers were not so much enemies of the Czar, as they were intent on seizing power in Russia, through the Bolsheviks. Three gold shipments in 1920 alone, from Lenin to Kuhn, Loeb & Company and Morgan Guaranty Trust repaid the $20 million to the bankers, and this was just a small down payment.
But would some of the richest men in the world financially back communism, the system that was openly vowing to destroy the so-called capitalism that made them wealthy? Communism, like plutocracy, is a product of capitalism. Researcher Gary Allen explained it was this way:
“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 seeming paradox of super-rich men promoting socialism becomes no paradox at all. Instead, it becomes logical, even the perfect tool for power-seeking megalomaniacs. Communism or more accurately, socialism, is not a movement of the downtrodden masses, but of the economic elite.”
As W. Cleon Skousen put it in his 1970 book The Naked Capitalist:
“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-hungry political conspirators who were committed to the overthrow of all existing governments and the establishment of a central world-wide dictatorship.”
But what if these revolutionaries get out of control and try to seize power from the Money Changers? After all, it was Mao Tse-tung who in 1938 stated his position concerning power:
“Political power grows out of the barrel of a gun.”
The London/Wall Street axis elected to take the risk. The master-planners attempted to control revolutionary communist groups by feeding them vast quantities of money when they obeyed, and contracting their money supply, or even financing their opposition or fascist parties in bordering nations, if they got out of control. Lenin began to understand that although he was the dictator of the new Soviet Union, he was not pulling the financial strings, someone else was silently in control:“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.”
Who was behind it? Rep. Louis T. McFadden, the Chairman of the House Banking and Currency Committee throughout the 1920s and into the Great Depression years of the 1930s, explained it this way: “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 Dnieper story Dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Reserve Board and the Federal Reserve banks.”
In other words, the Fed and the Bank of England, along with their controlling stock-holders, the Rothschilds, Rockefellers, Morgans, Schiffs, Warburgs, etc., were creating a monster, one which would fuel seven decades of unprecedented Communist revolution, warfare, and most importantly – debt.
The Soviet Union was also a useful counterbalance to Germany, and later to the U.S., until 1989 with its dismemberment into fifteen countries. China then became a new counterbalance to the U.S., and is being built up at the rate of over $100 million dollars a day by lopsided trade deals, IMF loans and Western investments.
Such balance-of-power arrangements assure that the Money Changers cannot be overthrown worldwide by a political revolt in any single country. In that case, they simply shift support to the counter-balanced country. Additionally, the inevitable military rivalry between roughly balanced powers results in massive expenditures and so more national borrowing and debt.
In case one thinks there is some chance that the Money Changers got communism going and then lost control – keep in mind that even in the socialist paradise, Rockefeller’s National City Bank (now Citigroup) in St. Petersburg was never nationalized, as were all Russian banks. Numerous Western bankers operated openly in the Soviet Union, and made vast profits.
However, setbacks, some major, did occur. For instance, it is likely the bankers early on preferred the more compliant Mensheviks to the more independent Bolsheviks, but Lenin got the upper hand. But both groups had the same end and so this was not a fundamental division. However, it did lead to a serious problem when Lenin died, as an even more independent sort – Stalin – squeezed out the bankers’ candidate – Leon Trotsky (real name: Bronstein; whose wife was linked to the Warburgs) – and took control of Soviet Communism. Even then Stalin continued to fear Trotsky’s powerful connections, and so had him tracked down and eventually assassinated in Mexico.
To pressure Stalin back into the ranks, as C.G. Rakovsky explained, the bankers financed Hitler, who was an avowed enemy of communism and openly advocated invading the Soviet Union. Anthony C. Sutton and others have documented the money trail from Wall Street to Hitler, which was mentioned above by Congressman McFadden. But it was only on the death of Stalin, with the rise of Khruschev et seq., that the Soviet Union was fully back in the ranks, securely under the bankers’ control.
In 1992, The Washington Times reported that Russian President Boris Yeltsen was upset that most of the incoming foreign aid was being siphoned off “straight back into the coffers of Western banks in debt service.” Much of that debt was incurred under the prior communist regimes, which were heavily in debt to the Money Changers.
Similarly, once in power, Mao Tse-Tung spread his wings and expelled the Soviets from Red China leading to the Sino-Soviet rift of the 1960’s. The U.S. and the U.S.S.R. initiated an encirclement policy of China including: heavy Soviet troop concentrations and border provocations in Manchuria; drawing North Korea and Mongolia tightly into the Soviet camp; placing nuclear weapons in Manchuria; arming Tibetan freedom fighters and Taiwanese troops; and establishing important U.S. (now Soviet) air and naval bases in Vietnam (such as Cam Rahn Bay) while beefing up U.S. forces in Guam, Japan, Laos and Thailand, all under the pretext of the Vietnam War.
Under this growing pressure, Mao first responded with internal political purges just as Stalin had done, but with the failure of the Great Leap Forward and with the U.S./U.S.S.R. noose tightening, Mao blinked and Kissinger was sent in to strike the deal.
Still, Mao’s price for China’s cooperation and integration in the bankers’ one-world scheme was obviously high, here is the result: the encirclement ended, including U.S. abandonment of South Vietnam and Laos; China got Taiwan’s U.N. seat (and doubtless a pledge of eventually getting Taiwan itself); a free hand in Tibet, Hong Kong; and gigantic bribes in the form of Western development of China.
This left the Bankers with few obstacles worldwide: Muslim fundamentalism here and there, India’s nuclear development, and the weak remnants of Western nationalism (concentrated in the large [but rapidly shrinking] U.S. middle class and in a minority of the British, French, and Russian aristocracy [e.g. Thatcher and Le Pen]).
To overcome these, the Russian Empire was dismembered into fifteen nations; the U.K, France and the U.S.A. are gradually being submerged into regional and global entities (such as NAFTA, WTO, MAI, EEC, EU, etc.) and Desert Storm et seq. is keeping the Muslims on a tight leash while India is being pressured to abandon its nuclear program.
The bankers’ three main regional groupings: the European Union, the proposed American Union in the Western hemisphere, and Chinese dominance in Asia, are rapidly bringing to life Orwell’s three virtually identical world nations set forth in his book 1984: Eurasia, Oceania and East Asia – all set to engage in perpetual war (WWIII) with its attendant debt and population reduction and control.
Wars are complex things with many causative factors. But on the other hand, it would also be equally foolish to ignore as a prime cause of World Wars I and II those who would profit the most from war, both financially and politically.
Senator Nye of North Dakota raised the possibility that the Wilson administration entered WWI, at a critical juncture for the allies, in order to protect huge Wall Street bank loans to the allies. During the War the U.S. money supply was doubled to pay for it, halving the dollar’s purchasing power and so Americans’ savings.
It is also interesting to note that the most belligerent pro-war hawk surrounding President Wilson was a man named Colonel Edward Mandell House, the son of a man commonly believed to be a Rothschild agent, who was himself closely associated with Wall Street and European bankers.
The role of the Money Changers is no wild conspiracy theory. They had a motive – a short-range, self-serving motive as well as a long-range, political motive of advancing totalitarian government, with the Money Changers maintaining the financial clout to control whatever politicians might emerge as the leaders.