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The Federal
Reserve Act
The end of the
Civil War in 1865 ruined the Illuminati's chances to control our
monetary system, as they did in most European countries. So, the
Rothschilds modified their plan for financial takeover. Instead of
tearing down from the top, they were going to start at the bottom to
disrupt the foundation of our monetary system. The instrument of this
destruction was a young immigrant by the name of Jacob Schiff.
The Schiff family traced their lineage back to the fourteenth century,
and even claimed that King Solomon was an ancestor. Jacob Schiff was
born in 1847, in Frankfurt, Germany. His father, Moses Schiff, a rabbi,
was a successful stockbroker on the Frankfurt Stock Exchange. In 1865,
he came to America, and in 1867, formed his own brokerage firm with
Henry Budge and Leo Lehmann. After it failed, he went back to Germany,
and became manager of the Deutsche Bank in Hamburg, where he met Moritz
Warburg (1838-1910), and Abraham Kuhn, who had retired after helping to
establish the firm of Kuhn & Loeb in New York.
Kuhn and Loeb were German Jews who had come to the United States in the
late 1840's, and pooled their resources during the 1850's to start a
store in Lafayette, Indiana, to serve settlers who were on their way to
the West. They set up similar stores in Cincinnati and St. Louis. Later,
they added pawn broking and money lending to their business pursuits. In
1867, they established themselves as a well-known banking firm.
In 1873, at the age of 26, Jacob Schiff, with the financial backing of
the Rothschilds, bought into the Kuhn and Loeb partnership in New York
City. He became a full partner in 1875. He became a millionaire by
financing railroads, developing a proficiency at railroad management
that enabled him to enter into a partnership with Edward Henry Harriman
to create the greatest single railroad fortune in the world. He married
Solomon Loeb's oldest daughter, Theresa, and eventually bought out
Kuhn's interest. For all intents and purposes, he was the sole owner of
what was now known as Kuhn, Loeb and Company. Sen. Robert L. Owen of
Oklahoma indicated that Kuhn, Loeb and Company was a representative of
the Rothschilds in the United States.
Although John Pierpont Morgan (1837-1913), the top American Rothschild
representative, was the head of the American financial world, Schiff was
rapidly becoming a major influence by distributing desirable European
stock and bond issues during the Industrial Revolution. Besides Edward
H. Harriman's railroad empire, he financed Standard Oil for John D.
Rockefeller (1839-1937), and Andrew Carnegie's (1835-1919) steel empire.
By the turn of the century, Schiff was firmly entrenched in the banking
community, and ready to fulfill his role as the point man in the
Illuminati's plan to control our economic system, weaken Christianity,
create racial tension, and to recruit members to get them elected to
Congress and appointed to various government agencies.
In 1636, Miles, John, and James Morgan landed in Massachusetts, leaving
their father, William, to carry on the family business of harness-making
in England. Joseph Morgan (J. P. Morgan's grandfather), successful in
real estate and business, supported the Bank of the United States.
Junius Spencer Morgan (J. P. Morgan's father), was a partner in the
Boston banking firm of J. M. Beebe, Morgan, and Co.; and became a
partner in London's George Peabody and Co., taking it over when Peabody
died, becoming J. S. Morgan and Co.
John Pierpont Morgan, or as he was better known, J. P. Morgan, was born
on April 17, 1837. He became his father's representative in New York in
1860. In 1862, he had his own firm, known as J. Pierpont Morgan and Co.
In 1863, he liquidated, and became a partner with Charles H. Dabney (who
represented George Peabody and Co.), and established a firm known as
Dabney, Morgan and Co. He later teamed up with Anthony J. Drexel (son of
the founder of the most influential banking house in Philadelphia), in a
firm known as Drexel, Morgan and Co. Morgan also became a partner in
Drexel and Co. in Philadelphia. In 1869, Morgan and Drexel met with the
Rothschilds in London, and through the Northern Securities Corporation,
began consolidating the Rothschild's power and influence in the United
States. Morgan continued the partnership that began when his father
acted as a joint agent for the Rothschilds and the U.S. Government.
During the Civil War, J. P. Morgan had sold the Union Army defective
carbine rifles, and it was this government money that helped build his
Guaranty Trust Co. of New York. In 1880, he began financing and
reorganizing the railroads. After his father died in 1890, and Drexel
died in 1893, the Temporary National Economic Committee revealed that J.
P. Morgan held only a 9.1% interest in his own firm. George Whitney
owned 1.9%, and H. B. Davison held 1.2%, however, the Charles W. Steele
Estate held 36.6%, and Thomas W. Lamont (whose son, Corliss, was an
active communist) had 34.2%. Researchers believe that the Illuminati
controlled the company through these shares.
In 1901, Morgan bought out Andrew Carnegie's vast steel operation for
$500,000,000 to merge the largest steel companies into one big company
known as the United States Steel Corporation (in which, for a time, the
Rockefellers were major stockholders).
A speech by Senator Norris which was printed in the Congressional Record
of November 30, 1941, said:
"J. P. Morgan, with the assistance and cooperation of a few of the
interlocking corporations which reach all over the United States in
their influence, controls every railroad in the United States. They
control practically every public utility, they control literally
thousands of corporations, they control all of the large insurance
companies. Mr. President, we are gradually reaching a time, if we have
not already reached that point, when the business of the country is
controlled by men who can be named on the fingers of one hand, because
those men control the money of the Nation, and that control is growing
at a rapid rate."
The House of Morgan grew larger in 1959, when the Guaranty Trust Co. of
New York merged with the J. P. Morgan and Co., to form the Morgan
Guaranty Trust Co. They had four branch offices, and foreign offices in
London, Paris, Brussels, Frankfurt, Rome, and Tokyo. The firm of Morgan,
Stanley, and Co. was also under their control.
Paul Moritz Warburg (1868-1932), and his brother Felix (1871-1937), came
to the United States from Frankfurt in 1902, buying into the partnership
of Kuhn, Loeb and Co. with the financial backing of the Rothschilds.
They had been trained at the family banking house, M. M. Warburg and Co.
(run by their father Moritz M. Warburg, 1838-1910), a Rothschild-allied
bank in Frankfurt, Hamburg, and Amsterdam, which had been founded in
1798 by their great-grandfather. Paul (said to be worth over $2.5
million when he died), married Nina Loeb, the daughter of Solomon Loeb
(the younger sister of Schiff's wife); while Felix, in March, 1895,
married Frieda Schiff, the daughter of Jacob Schiff.
Their brother Max (1867-1946), a major financier of the Russian
Revolution (who in his capacity as Chief of Intelligence in Germany's
Secret Service, helped Lenin cross Germany into Russia in a sealed
train) and later Hitler, ran the Hamburg bank until 1938, when the Nazis
took over. The Nazis, who didn't want the Jews running the banks,
changed its name to Brinckmann, Wirtz and Co. After World War II, a
cousin, Eric Warburg, returned to head it, and in 1970, its name was
changed to M. M. Warburg, Brinckmann, Wirtz and Co.
Siegmund Warburg, Eric's brother, established the banking firm of S. G.
Warburg and Co. in London, and by 1956, had taken over the Seligman
Brothers' Bank.
The Warburgs are another good example of how the Illuminati controls
both sides of a war. While Paul Warburg's firm of Kuhn, Loeb and Co.
(who had five representatives in the U.S. Treasury Department) was in
charge of Liberty Loans, which helped finance World War I for the United
States, his brother Max financed Germany, through M. M. Warburg and Co.
Paul and Felix Warburg were men with a mission, sent here by the
Rothschilds to lobby for the passing of a central banking law in
Congress. Colonel Ely Garrison (the financial advisor to Presidents
Theodore Roosevelt and Woodrow Wilson) wrote in his book Roosevelt,
Wilson and the Federal Reserve Act: "Mr. Paul Warburg is the man who got
the Federal Reserve Act together after the Aldrich Plan aroused such
nationwide resentment and opposition. The mastermind of both plans was
Alfred Rothschild of London." Professor E. R. A. Seligman, head of the
Economics Department of Columbia University, wrote in the preface of one
of Warburg's essays on central banking: "The Federal Reserve Act is the
work of Mr. (Paul) Warburg more than any other man in the country."
In 1903, Paul Warburg gave Schiff a memo describing the application of
the European central banking system to America's monetary system.
Schiff, in turn, gave it to James Stillman, President of the National
City Bank in New York City. Warburg had graduated from the University of
Hamburg in 1886, and studied English central banking methods, while
working in a London brokerage house. In 1891, he studied French banking
methods; and from 1892-93, traveled the world to study central banking
applications. The bottom line, was that he was the foremost authority in
the world on central banking. It is interesting to note, that the fifth
plank in the 1848 Communist Manifesto had to do with central banking.
In 1906, Frank A. Vanderlip, of the National City Bank, convinced many
of New York's banking establishment, that they needed a
banker-controlled central bank, that could serve the nation's financial
system. Up to that time, the House of Morgan had filled that role. Some
of the people involved with Morgan were: Walter Burns, Clinton Dawkins,
Edward Grenfell, Willard Straight, Thomas Lament, Dwight Morrow, Nelson
Perkins, Russell Leffingwell, Elihu Root, John W. Davis, John Foster
Dulles, S. Parker Gilbert, and Paul D. Cravath. The financial panics of
1873, 1884, 1893, 1907, and later 1920, were initiated by Morgan with
the intent of pushing for a much stronger banking system.
On January 6, 1907, the New York Times published an article by Warburg,
called "Defects and Needs of Our Banking System," after which he became
the leading exponent of monetary reform. That same year, Jacob Schiff
told the New York Chamber of Commerce, that "unless we have a Central
Bank with adequate control of credit resources, this country is going to
undergo the most severe and far reaching money panic in history." When
Morgan initiated the economic panic in 1907, by circulating rumors that
the Knickerbocker Bank and Trust Co. of America was going broke, there
was a run on the banks, creating a financial crisis, which began to
solidify support for a central banking system. During this panic,
Warburg wrote an essay called "A Plan for a Modified Central Bank" which
called for a Central Bank, in which 50% would be owned by the
government, and 50% by the nation's banks. In a speech at Columbia
University, he quoted Abraham Lincoln, who said in an 1860 Presidential
campaign speech: "I believe in a United States Bank."
In 1908, Schiff laid out the final plans to seize the American monetary
system. Colonel (an honorary title) Edward Mandell House (1858-1938),
the son of British financier Thomas W. House, a Rothschild agent who
made his fortune by supplying the south with supplies from France and
England during the Civil War, was Schiff's chief representative and
courier; and Bernard Baruch (1870-1965), whose stock market speculating
made him a multi-millionaire by the early 1900's, and whose foreign and
domestic policy expertise led Presidents from Wilson to Kennedy to seek
his advice; were the two who were relied on heavily by Schiff to carry
out his plans. Herbert Lehman was also a close aide to Schiff.
President Woodrow Wilson wrote about House (published in The Intimate
Papers of Col. House): "Mr. House is my second personality. He is my
independent self. His thoughts and mine are one. If I were in his place,
I would do just as he suggested ... If anyone thinks he is reflecting my
opinion, by whatever action he takes, they are welcome to the
conclusion." George Sylvester Viereck wrote in The Strangest Friendship
in History: Woodrow Wilson and Colonel House: "When the Federal Reserve
legislation at last assumed definite shape, House was the intermediary
between the White House and the financiers." Schiff, who was known as
the "unseen guardian angel" of the Federal Reserve Act, said that the
U.S. Constitution was the product of 18th century minds, was outdated,
and should be "scrapped and rewritten."
In 1908, Sen. Nelson W. Aldrich (father-in-law of John D. Rockefeller,
Jr. and grandfather of Nelson and David Rockefeller) proposed a bill, in
which banks, in an emergency situation, would issue currency backed by
federal, state, and local government bonds, and railroad bonds, which
would be equal to 75% of the cash value of the bonds. It was harshly
criticized because it didn't provide a monetary system that would
respond to the seasonal demand, and fluctuate with the volume of trade.
Aldrich was the most powerful man in Congress, and the Illuminati's head
man in the Senate. A member of Congress for 40 years, 36 of them in the
Senate, he was Chairman of the powerful Senate Finance Committee.
In the House of Representatives, Rep. E. B. Vreeland of New York,
proposed the Vreeland Bill. After making some compromises with Aldrich,
and Speaker of the House Joseph Cannon, at a meeting in a hotel room at
the Arlington House, his bill became known as the Vreeland Substitute.
It called for the acceptance of asset currency, but only in cases of
emergency, and the currency would be based on commercial paper rather
than bonds. It passed in the House, 184 -145; but when it got to the
Senate, Aldrich moved against it, and pushed for further compromises.
The Aldrich-Vreeland Bill, called the Emergency Currency Act, was passed
on May 30, 1908, and led to the creation of the National Monetary
Commission, which was made up of members of Congress. Now, any monetary
legislation sent to Congress, would have to go through this group first.
The Bill approved by the National Monetary Commission was known as the
Aldrich Bill, and formed the legislative base for the Federal Reserve
Act. It was introduced as an amendment to the Republican sponsored
Payne-Aldrich Tariff Bill, in order to have Republican support. It was
based on Warburg's plan, except it would only have 15 districts; half of
the directors on the district level would be chosen by the banks, a
third by the stockholders, and a sixth by the other directors. On the
National Board: two chosen by each district; nine chosen by the
stockholders; and seven ex-officio members to be the Governor, Chairman
of the Board, two Deputy Governors, Secretary of the Treasury, Secretary
of Commerce and Labor, Secretary of Agriculture, and Comptroller of the
Currency. Most people were against the Bill, because it finally
identified the banking institution as a central bank, and the Democratic
Party opposed it in the 1912 Party platform.
Aldrich was appointed as head of the National Monetary Commission, and
from 1908-10, at a cost of $300,000, this 16-man committee traveled
around Europe to study the central banking system.
In 1910, Warburg gave a speech entitled, "A United Reserve Bank of the
United States," which called for a United Reserve Bank to be located in
Washington, D.C., having the capital of $100 million. The country would
be divided into 20 districts, and the system would be controlled by a
Board of Directors, which would be chosen by the banking associations,
the stockholders, and the government. Warburg said that the U.S.
monetary system wasn't flexible, and it was unable to compensate for the
rise and fall of business demand. As an example, he said, that when
wheat was harvested, and merchants didn't have the cash on hand to buy
and store a large supply of grain, the farmers would sell the grain for
whatever they could get. This would cause the price of wheat to greatly
fluctuate, forcing the farmer to take a loss. Warburg called for the
development of commercial paper (paper money) to circulate as currency,
which would be issued in standard denominations of uniform sizes. They
would be declared by law to be legal tender for the payment of debts and
taxes.
President Theodore Roosevelt said, concerning the criticism of finding
capable men to head the formation of a central bank: "Why not give Mr.
(Paul) Warburg the job? He would be the financial boss, and I would be
the political boss, and we could run the country together."
After a conference was held at Columbia University on November 12, 1910,
the National Monetary Commission published their plan in the December,
1910 issue of their Journal of Political Economy in an article called
"Bank Notes and Lending Power."
On November 22, 1910, Aldrich called a meeting of the banking
establishment and members of the National Monetary Commission, which was
proposed by Henry P. Davison (a partner of J. P. Morgan). Aldrich said
that he intended to keep them isolated until they had developed a
"scientific currency for the United States."
All those summoned to the secret meeting, were members of the
Illuminati. They met on a railroad platform in Hoboken, New Jersey,
where they chartered a private railroad car owned by Aldrich to Georgia.
They were taken by boat, to Jekyll Island, off the coast of Brunswick,
Georgia. Jekyll Island is in a group of ten islands, including St.
Simons, Tybee, Cumberland, Wassau, Wolf, Blackbeard, Sapelo, Ossabow,
and Sea Islands. Jekyll Island was a 'hideaway resort of the rich,'
purchased in 1888 by J. P. Morgan, Henry Goodyear, Joseph Pulitzer,
Edwin and George Gould, Cyrus McCormick, William Rockefeller (John D.
Rockefeller's brother), William K. Vanderbilt, and George F. Baker (who
founded Harvard Business School with a gift of $5 million) for $125,000
from Eugene du Bignon, whose family owned it for a century. Up until the
time it was converted into a public resort, no uninvited foot ever
stepped on its shores. It was said, that when all 100 members of the
Jekyll Island Hunting Club sat down for dinner at the clubhouse, it
represented a sixth of the world's wealth. St. Simons Island, a short
distance away, to the north, was also owned by Illuminati interests.
Those attending the meeting at the private hunting lodge were said to be
on a duck-hunting expedition. They were sworn to secrecy, even
addressing each other by code names or just by their first names.
Details are very sketchy, concerning who attended the meeting, but most
scenarios agree that the following people were present: Sen. Aldrich,
Frank A. Vanderlip (Vice-President of the Rockefeller owned National
City Bank), Henry P. Davison (of the J. P. Morgan and Co.), Abram Piatt
Andrew (Assistant Secretary of the Treasury, an Assistant Professor at
Harvard, and Special Assistant to the National Monetary Commission
during their European tour), Paul Moritz Warburg (of Kuhn, Loeb and
Co.), Benjamin Strong (Vice-President of Morgan's Bankers Trust Co.),
Eugene Meyer (a former partner of Bernard Baruch, and the son of a
partner in the Rothschild-owned Lazard Freres, who was the head of the
War Finances Corporation, and later gained control of the Washington
Post), J. P. Morgan, John D. Rockefeller, Col. House, Jacob Schiff,
Herbert Lehman (of Lehman Brothers), Bernard Baruch (appointed by
President Wilson to be the Chairman of the War Industries Board, which
gave him control of all domestic contacts for Allied war materials,
which enabled him to make $200 million for himself while working for the
government), Joseph Seligman (a leading Jewish financier, who founded J.
& W. Seligman and Co., who had helped to float bonds during the Civil
War, and were known as 'World Bankers,' then later declined President
Grant's offer to serve as the Secretary of Treasury), and Charles D.
Norton (President of the First National Bank of New York).
About ten days later, they emerged with the groundwork for a central
banking system, in the form of, not one, but two versions, to confuse
the opposition. The final draft was written by Frank Vanderlip, from
Warburg's notes, and was incorporated into Aldrich's Bill, in the form
of a completed Monetary Commission report, which Aldrich railroaded
through Congress by avoiding the term 'central bank.' No information was
available on this meeting until 1933, when the book The Federal Reserve
Act: It's Origins and Problems, by James L. Laughlin, appeared; and
other information, which was supplied by B. C. Forbes, the editor of
Forbes Magazine. In 1935, Frank Vanderlip wrote in the Saturday Evening
Post: "I do not feel it is any exaggeration to speak of our secret
expedition to Jekyll Island as the occasion of the actual conception of
what eventually became the Federal Reserve System."
The banker-initiated mini-depressions, the last of which had occurred in
1907, helped get Congressional support for the Bill, and on May 11,
1911, the National Citizens League for the Promotion of a Sound Banking
System, an Illuminati front-organization, publicly announced their
support for Aldrich's Bill. However, the Aldrich Bill was destined for
failure, because he was so closely identified with J. P. Morgan. So, the
Illuminati went to Plan B, which was the second version hammered out at
the Jekyll Island summit. The National Citizens League publicly withdrew
their support of the Aldrich Bill, and the move was on to disguise it,
so that it could get through Congress.
Once the new version was ready, they were a little apprehensive about
introducing it in Congress, because even if it would be passed by
Congress, President Taft would veto it, so they had to wait until they
could get their own man elected. That man was Woodrow Wilson.
The Democrats, with the exception of Grover Cleveland's election, had
been out of power since 1869. Being a 'hungry' Party, the Illuminati
found them easier to infiltrate. During the late 1800's, they began the
process of changing the Democrats from conservative to liberal, and the
Republicans, from liberal to conservative.
Wilson graduated from Princeton University in 1879, studied law at the
University of Virginia, and received his doctorate degree from Johns
Hopkins in 1886. He taught Political Science and History at Bryn Mawr
and Wesleyan, and in 1902, became President of Princeton. Because of his
support of Aldrich's Bill, when it was first announced, he was supported
by the Illuminati in his successful bid as Governor of New Jersey in
1910. The deal was made through Vanderlip agents, William Rockefeller
and James Stillman, at Vanderlip's West Chester estate. The liaison
between the Illuminati and Wilson, would be his prospective son-in-law,
William G. McAdoo.
Rabbi Stephen Wise, a leading Jewish activist, told an audience at the
Y.M.C.A. in Trenton, New Jersey:
"On Tuesday the President of Princeton University will be elected
Governor of your state. He will not complete his term of office as
Governor. In November, 1912, he will be elected President of the United
States. In March, 1917, he will be inaugurated for the second time as
President. He will be one of the greatest Presidents in American
history."
Wise, who made this prophetic statement in 1910, later became a close
advisor to Wilson. He had good reason to believe what he said, because
the deal had already been struck. Wilson wasn't viewed as being
pro-banking, and the Democratic Party Platform opposed a Central Bank,
which was now linked to the Republicans and the bankers.
The main problem for the Democrats, was the Republican voting edge, and
the Democrat's lack of money. After the Illuminati made the decision to
support Wilson, money was no problem. Records showed that the biggest
contributors to Wilson's campaign were Jacob Schiff, Bernard Baruch,
Henry Morgenthau, Sr., Thomas Fortune Ryan (mining magnate), Samuel
Untermyer, Cleveland H. Dodge (of the National City Bank), Col. George
B. M. Harvey (an associate of J. P. Morgan, and editor of the
Morgan-controlled Harper's Weekly, and President of the Harper and
Brothers publishing firm), William Laffan (editor of the New York Sun),
Adolph Ochs (publisher of the New York Times), and the financiers that
owned the New York Times, Charles R. Flint, Gen. Sam Thomas, J. P.
Morgan, and August Belmont. All of these men were Illuminati members.
The problem of the voter registration edge was a bit more difficult, but
that was a project that the Illuminati had already been working on. The
Russian pogroms of 1881 and 1882, in which thousands of Russians were
killed; and religious persecution and anti-Semitism in Poland, Romania,
and Bulgaria in the early 1890's, began three decades of immigration
into the United States by thousands of Jews. By the turn of the century,
a half-million Jews had arrived to the port cities of New York,
Baltimore, and Boston. It was the Democrats who initiated a program to
get them registered to vote. Humanitarian committees were set up by
Schiff and the Rothschilds, such as the Hebrew Immigration Aid Society,
and the B'nai B'rith, so when the Jews arrived, they were made
naturalized citizens, registered Democrat, then shuffled off to other
large cities, such as Chicago, Philadelphia, Detroit and Los Angeles,
where they were given financial help to find a place to live, food, and
clothing. This is how the Jews became a solid Democratic voting bloc,
and it was these votes that would be needed to elect Wilson to the
Presidency.
In 1912, with President William Howard Taft running for re-election
against Wilson, the Illuminati needed some insurance. They got it by
urging another Republican, former President, Theodore Roosevelt
(1901-09) to run on the Progressive ticket. Taft had served as
Roosevelt's Secretary of War (1905-09), and was chosen by Roosevelt to
succeed him as President. Now, Roosevelt was running again. Advocating
the 'New Nationalism,' Roosevelt said: "My hat is in the ring ... the
fight is on and I am stripped to the buff." Identified as
'anti-business' because of his stand against corporations and trusts,
his proposals for reorganizing the government were attacked by the
Illuminati-controlled New York Times as "super-socialism." His 'Bull
Moose' Platform said: "We are opposed to the so-called Aldrich Currency
Bill because its provisions would place our currency and credit system
in private hands, not subject to effective public control." Frank Munsey
and George Perkins, of the J. P. Morgan and Co. organized, ran, and
financed Roosevelt's campaign. A recent example of the same plan that
pulled votes away from Taft, in order to get Wilson elected, occurred in
the 1992 Presidential election. In a 1994 interview, Barbara Bush told
ABC-TV news correspondent Barbara Walters, that the third-party
candidacy of independent H. Ross Perot was the reason that Bill Clinton
was able to defeat the re-election bid of President George Bush.
The Illuminati were able to get the support of perennial Democratic
Presidential candidate, William Jennings Bryan, by letting him write the
plank of the Party Platform which opposed the Aldrich Bill. Remember,
the second version of the Bill prepared at Jekyll Island was to be an
alternative, so public attention was turned against the Aldrich Bill.
Wilson, an aristocrat, having socialistic views, was in favor of an
independent reserve system, because he didn't trust the 'common men'
which made up Congress. However, publicly, he promised to "free the poor
people of America from control by the rich," and to have a money system
that wouldn't be under the control of Wall Street's International
Bankers. In fact, in the summer of 1912, when he accepted the nomination
as the Democratic candidate for the Presidency, he said: "A
concentration of the control of credit ... may at any time become
infinitely dangerous to free enterprise." According to the Federal
Reserve's historical narrative, the shift in Wilson's point of view was
"a combination of political realities and his own lack of knowledge
about banking and finance (and) after his election to the Presidency,
Wilson relied on others for more expert advice on the currency
question."
Because of the voting split in the Republican Party, not only was
Woodrow Wilson able to win the Presidency, but the Democrats gained
control of both houses in Congress.
DEMOCRAT (Wilson) 435 electoral votes 6,286,214 popular votes
PROGRESSIVE (Roosevelt) 88 electoral votes 4,126,020 popular votes
REPUBLICAN (Taft) 8 electoral votes 3,483,922 popular votes
Rep. Carter Glass of Virginia, Chairman of the Banking and Currency
Committee, met with Wilson after his election, along with H. Parker
Willis (who was Dean of Political Science at George Washington
University) of the National Citizens League, to prepare a Bill, known as
the Glass Bill, which began taking form in January, 1913. Now Plan B was
set into motion. Remember, the National Citizens League, headquartered
in Chicago, had already announced their opposition to the Aldrich Bill,
now the Wall Street banking interests had come out against the Glass
Bill, which was actually the Aldrich Bill in disguise.
The Wall Street crowd was generally referred to as the 'money trust.'
However, a 1912 Wall Street Journal editorial said that the term 'money
trust' was just a reference to J. P. Morgan. The suspicion of the 'money
trust' peaked in 1912, during an investigation by a House banking
subcommittee which revealed that twelve banks in New York, Boston, and
Chicago, had 746 interlocking directorships in 134 corporations. Rep.
Robert L. Henry of Texas said that for the past five years, the nation's
financial resources had been "concentrated in the city of New York
(where they) now dominate more than 75 percent of the moneyed interests
of America..." On December 13, 1911, George McC. Reynolds, the President
of the Continental and Commercial Bank of Chicago, said to a group of
other bankers: "I believe the money power now lies in the hands of a
dozen men..." The threat from this powerful private banking system was
to be ended with the establishment of a central bank.
To avoid the mention of central banking, Wilson himself suggested that
the regional banks be called 'Federal Reserve Banks,' and proposed a
special session of the 63rd Congress to be convened to vote on the
Federal Reserve Act. On June 23, 1913, he addressed the Congress on the
subject of the Federal Reserve, threatening to keep them in session
until they passed it. Wilson got Bryan's support by making him Secretary
of State, and in October, 1913, Bryan said he would assist the President
in "securing the passage of the Bill at the earliest possible moment."
The Glass Bill (HR7837) was introduced in the House of Representatives
on June 26, 1913. The revision mentioned nothing about central banking,
which was what the people feared. It was believed that Willis had
written the Bill, but it was later discovered that Professor James L.
Laughlin, at the Political Science Department of Columbia University,
had written it, taking special precaution not to clash with the Bryan
plank of the Democratic Party Platform. It was referred to the Banking
and Currency Committee, reported back to the House on September 9th, and
passed on September 18th.
Sen. Robert Latham Owen of Oklahoma, Chairman of the Senate Banking and
Finance Committee, along with five of his colleagues, drafted a Bill
which was more open-minded to the suggestions of the bankers. A Bill
drafted by Sen. Gilbert M. Hitchcock, a Democrat from Nebraska, called
for the elimination of the 'lawful money' provision, and stipulated that
note redemption must be made in gold. It also provided for public
ownership of the regional reserve banks, which would be controlled by
the government.
In the Senate, the Glass Bill was referred to the Senate Banking
Committee, and reported back to the Senate on November 22, 1913. The
Bill was now known as the Glass-Owen Bill. Sen. Owen, who opposed the
Aldrich Bill, made some additional revisions, in an attempt to keep them
from completely dominating our monetary system. Sen. Elihu Root of New
York criticized some of these revisions, and some points were modified.
It was passed by the Senate on December 19th.
Since different versions had been passed by both Houses, a Conference
Committee was established, which was stacked with six Democrats and only
two Republicans, to insure that certain portions of the original Bill
would remain intact. It was hastily prepared without any public
hearings, and on December 23, 1913, two days before Christmas, when many
Congressmen, and three particular Senators, were away from Washington;
the Bill was sent to the House of Representatives, where it passed
298-60, and then sent to the Senate, where it passed with a vote of
43-25 (with 27 absent or abstaining). An hour after the Senate vote,
Wilson signed the Federal Reserve Act into law, and the Illuminati had
taken control of the American economy. The gold and silver in the
nation's vaults were now owned by the Federal Reserve. Baron Alfred
Charles Rothschild (1842-1918), who masterminded the entire scheme, then
made plans to further weaken our country's financial structure.
Although Wilson, and Rep. Carter Glass were given the credit for getting
the Federal Reserve Act through Congress, William Jennings Bryan played
a major role in gaining support to pass it. Bryan later wrote: "That is
the one thing in my public career that I regret- my work to secure the
enactment of the Federal Reserve Law." Rep. Glass would later write: "I
had never thought the Federal Bank System would prove such a failure.
The country is in a state of irretrievable bankruptcy."
Eustace Mullins, in his book The Federal Reserve Conspiracy, wrote:
"The money and credit resources of the United States were now in
complete control of the banker's alliance between J. P. Morgan's First
National Bank, and Kuhn & Loeb's National City Bank, whose principal
loyalties were to the international banking interests, then quartered in
London, and which moved to New York during the First World War."
The Reserve Bank Organization Committee, controlled by Secretary of the
Treasury, William Gibbs McAdoo, and Secretary of Agriculture David F.
Houston (who along with Glass, later became Treasury Secretaries under
Wilson), was given $100,000 to find locations for the regional Reserve
Banks. With over 200 cities requesting this status, hearings were held
in 18 cities, as they traveled the country in a special railroad car.
On October 25, 1914, the formal establishment of the Federal Reserve
System was announced, and it began operating in 1915.
Col. House, who Wilson called his "alter ego," because he was his
closest friend and most trusted advisor, anonymously wrote a novel in
1912 called Philip Dru: Administrator, which revealed the manner in
which Wilson was controlled. House, who lobbied for the implementation
of central banking, would now turn his attention towards a graduated
income tax. Incidentally, a central bank, providing inflatable currency;
and a graduated income tax, were two of the ten points in the Communist
Manifesto for socializing a country.
It was House who hand-picked the first Federal Reserve Board. He named
Benjamin Strong as its first Chairman. In 1914, Paul M. Warburg quit his
$500,000 a year job at Kuhn, Loeb and Co. to be on the Board, later
resigning in 1918, during World War I, because of his German
connections.
The Banking Act of 1935 amended the Federal Reserve Act, changing its
name to the Federal Reserve System, and reorganizing it, in respect to
the number of directors and length of term.
Headed by a seven member Board of Governors, appointed by the President,
and confirmed by the Senate for a 14 year term, the Board acts as an
overseer to the nation's money supply and banking system.
The Board of Governors, the President of the Federal Reserve Bank in New
York, and four other Reserve Bank Presidents, who serve on a rotating
basis, make up the Federal Open Market Committee. This group decides
whether or not to buy and sell government securities on the open market.
The Government buys and sells government securities, mostly through 21
Wall Street bond dealers, to create reserves to make the money needed to
run the government. The Committee also determines the supply of money
available to the nation's banks and consumers.
There are twelve Federal Reserve Banks, in twelve districts: Boston
(MA), Cleveland (OH), New York (NY), Philadelphia (PA), Richmond (VA),
Atlanta (GA), Chicago (IL) , St. Louis (MO), Minneapolis (MN), Kansas
City (KS), San Francisco (CA), and Dallas (TX). The twelve regional
banks were set up so that the people wouldn't think that the Federal
Reserve was controlled from New York. Each of the Banks has nine men on
the Board of Directors; six are elected by member Banks, and three are
appointed by the Board of Governors.
They have 25 branch Banks, and many member Banks. All Federal Banks are
members, and four out of every ten commercial banks are members. In
whole, the Federal Reserve System controls about 70% of the country's
bank deposits. Ohio Senator, Warren G. Harding, who was elected to the
Presidency in 1920, said in a 1921 Congressional inquiry, that the
Reserve was a private banking monopoly. He said: "The Federal Reserve
Bank is an institution owned by the stockholding member banks. The
Government has not a dollar's worth of stock in it." His term was cut
short in 1923, when he mysteriously died, leading to rumors that he was
poisoned. This claim was never substantiated, because his wife would not
allow an autopsy.
Three years after the initiation of the Federal Reserve, Woodrow Wilson
said:
"The growth of the nation ... and all our activities are in the hands of
a few men ... We have come to be one of the worst ruled; one of the most
completely controlled and dominated governments in the civilized world
... no longer a government of free opinion, no longer a government by
conviction and the free vote of the majority, but a government by the
opinion and duress of a small group of dominant men."
In 1919, John Maynard Keynes, later an advisor to Franklin D. Roosevelt,
wrote in his book The Economic Consequences of Peace:
"Lenin is to have declared that the best way to destroy the capitalist
system was to debauch the currency ... By a continuing process of
inflation, governments can confiscate secretly and unobserved, an
important part of the wealth of their citizens ... As the inflation
proceeds and the real value of the currency fluctuates wildly from month
to month, all permanent relations between debtors and creditors, which
form the ultimate foundation of capitalism, become so utterly disordered
as to be almost meaningless ..."
Congressman Charles August Lindbergh, Sr., father of the historic
aviator, said on the floor of the Congress: "This Act establishes the
most gigantic trust on Earth ... When the President signs this Act, the
invisible government by the Money Power, proven to exist by the Money
Trust investigation, will be legalized ... This is the Aldrich Bill in
disguise ... The new law will create inflation whenever the Trusts want
inflation ... From now on, depressions will be scientifically created
... The worst legislative crime of the ages is perpetrated by this
banking and currency bill." Lindbergh supposedly paid for his opposition
to the Illuminati. When there appeared to be growing support for his son
Charles to run for the Presidency, his grandson was kidnapped, and
apparently killed.
Rep. Henry Cabot Lodge, Sr. said of the Bill (Congressional Record, June
10, 1932):
"The Bill as it stands, seems to me to open the way to vast expansion of
the currency ... I do not like to think that any law can be passed which
will make it possible to submerge the gold standard in a flood of
irredeemable paper currency."
On December 15, 1931, Rep. Louis T. McFadden, who for more than ten
years served as Chairman of the Banking and Currency Committee in the
House of Representatives, said: "The Federal Reserve Board and banks are
the duly appointed agents of the foreign central banks of issue and they
are more concerned with their foreign customers than they are with the
people of the United States. The only thing that is American about the
Federal Reserve Board and banks is the money they use..." On June 10,
1932, McFadden, said in an address to the Congress:
"We have in this country one of the most corrupt institutions the world
has ever known. I refer to the Federal Reserve Board and the Federal
Reserve Banks ... Some people think the Federal Reserve Banks are United
States Government institutions. They are not Government institutions.
They are private credit monopolies which prey upon the people of the
United States for the benefit of themselves and their foreign customers
... The Federal Reserve Banks are the agents of the foreign central
banks ... In that dark crew of financial pirates, there are those who
would cut a man's throat to get a dollar out of his pocket ... Every
effort has been made by the Federal Reserve Board to conceal its powers,
but the truth is the FED has usurped the government. It controls
everything here (in Congress) and controls all our foreign relations. It
makes and breaks governments at will ... When the FED was passed, the
people of the United States did not perceive that a world system was
being set up here ... A super-state controlled by international bankers,
and international industrialists acting together to enslave the world
for their own pleasure!"
On May 23, 1933, McFadden brought impeachment charges against the
members of the Federal Reserve:
"Whereas I charge them jointly and severally with having brought about a
repudiation of the national currency of the United States in order that
the gold value of said currency might be given to private interests...
I charge them ... with having arbitrarily and unlawfully taken over
$80,000,000,000 from the United States Government in the year 1928...
I charge them ... with having arbitrarily and unlawfully raised and
lowered the rates on money ... increased and diminished the volume of
currency in circulation for the benefit of private interests...
I charge them ... with having brought about the decline of prices on the
New York Stock Exchange...
I charge them ... with having conspired to transfer to foreigners and
international money lenders, title to and control of the financial
resources of the United States...
I charge them ... with having published false and misleading propaganda
intended to deceive the American people and to cause the United States
to lose its independence...
I charge them ... with the crime of having treasonably conspired and
acted against the peace and security of the United States, and with
having treasonably conspired to destroy the constitutional government of
the United States."
In 1933, Vice-President John Garner, when referring to the international
bankers, said: "You see, gentlemen, who owns the United States."
Sen. Barry Goldwater wrote in his book With No Apologies: "Does it not
seem strange to you that these men just happened to be CFR (Council on
Foreign Relations) and just happened to be on the Board of Governors of
the Federal Reserve, that absolutely controls the money and interest
rates of this great country. A privately owned organization ... which
has absolutely nothing to do with the United States of America!"
Plain and simple, the Federal Reserve is not part of the Federal
Government. It is a privately held corporation owned by stockholders.
That is why the Federal Reserve Bank of New York (and all the others) is
listed in the Dun and Bradstreet Reference Book of American Business
(Northeast, Region 1, Manhattan/Bronx). According to Article I, Section
8 of the U.S. Constitution, only Congress has the right to issue money
and regulate its value, so it is illegal for private interests to do so.
Yet, it happened, and because of a provision in the Act, the Class A
stockholders were to be kept a secret, and not to be revealed. R. F.
McMaster, who published a newsletter called The Reaper, through his
Swiss and Saudi Arabian contacts, was able to find out which banks held
a controlling interest in the Reserve: the Rothschild Banks of London
and Berlin; Lazard Brothers Bank of Paris; Israel Moses Seif Bank of
Italy; Warburg Bank of Hamburg and Amsterdam; Lehman Brothers Bank of
New York; Kuhn, Loeb, and Co. of New York; Chase Manhattan Bank of New
York; and Goldman, Sachs of New York. These interests control the
Reserve through about 300 stockholders.
Because of the way the Reserve was organized, whoever controls the
Federal Reserve Bank of New York, controls the system, About 90 of the
100 largest banks are in this district. Of the reportedly 203,053 shares
of the New York bank: Rockefeller's National City Bank had 30,000
shares; Morgan's First National Bank had 15,000 shares; Chase National,
6,000 shares; and the National Bank of Commerce (Morgan Guaranty Trust),
21,000 shares.
A June 15, 1978 Senate Report called "Interlocking Directorates Among
the Major U.S. Corporations" revealed that five New York banks had 470
interlocking directorates with 130 major U.S. corporations: Citicorp
(97), J. P. Morgan Co. (99), Chase Manhattan (89), Manufacturers Hanover
(89), and Chemical Bank (96). According to Eustace Mullins, these banks
are major stock holders in the FED. In his book World Order, he said
that these five banks are "controlled from London." Mullins said:
"Besides its controlling interest in the Federal Reserve Bank of New
York, the Rothschilds had developed important financial interests in
other parts of the United States ... The entire Rockefeller empire was
financed by the Rothschilds."
A May, 1976 report of the House Banking and Currency Committee
indicated: "The Rothschild banks are affiliated with Manufacturers
Hanover of London in which they hold 20 percent ... and Manufacturers
Hanover Trust of New York." The Report also revealed that Rothschild
Intercontinental Bank, Ltd., which consisted of Rothschild banks in
London, France, Belgium, New York, and Amsterdam, had three American
subsidiaries: National City Bank of Cleveland, First City National Bank
of Houston, and Seattle First National Bank. It is believed, that the
Rothschilds hold 53% of the stock of the U.S. Federal Reserve.
Each year, billions of dollars are 'earned' by Class A stockholders,
from U.S. tax dollars which go to the FED to pay interest on bank loans.
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