The Federal Reserve Caused The Economic Crash

[qwerty]

YouTube - The Federal Reserve Caused The Economic Crash (http://www.youtube.com/watch?v=ntegKUpSVLA)

http://www.reddit.com/r/Libertarian/comments/9hr3p/the_federal_reserve_caused_the_economic_crash/

[hillbilly123069]

I did some checking.There was no depression of any sort before the birth of the fed.Fact is,it looks as if the transition created by the switch from tthe gold standard caused the 30's depression.

[qwerty]

I did some checking.There was no depression of any sort before the birth of the fed.Fact is,it looks as if the transition created by the switch from tthe gold standard caused the 30's depression.

Good info!

[surf]

recessions/depressions were short in duration and local in effect prior to the creation of the Fed. Think about a regional drought that screws up crops locally for a year or two and you'll understand why it may be erroneous to claim that these did not exist prior to 1913. but you're correct that on a macro (i.e. national or international) level these economic clusterfucks did not occur in the USA prior to the creation of our central bank.

but you guys already knew this. i'll shut up.

[qwerty]

recessions/depressions were short in duration and local in effect prior to the creation of the Fed. Think about a regional drought that screws up crops locally for a year or two and you'll understand why it may be erroneous to claim that these did not exist prior to 1913. but you're correct that on a macro (i.e. national or international) level these economic clusterfucks did not occur in the USA prior to the creation of our central bank.

but you guys already knew this. i'll shut up.

:)

[qwerty]

Bump!

[roho76]

recessions/depressions were short in duration and local in effect prior to the creation of the Fed. Think about a regional drought that screws up crops locally for a year or two and you'll understand why it may be erroneous to claim that these did not exist prior to 1913. but you're correct that on a macro (i.e. national or international) level these economic clusterfucks did not occur in the USA prior to the creation of our central bank.

but you guys already knew this. i'll shut up.

It is from my understanding that even before the FED came to be there were small periods where central banks tried to gain a foot hold here and that correlates to most of the bad economic activities we have seen before 1912. That and wars which I think are brought on by central banks using other countries they already have a foot hold in to provoke us here. This is why I think RP spends so much time going after the Central banks and planners because he knows that's the root of all evil and if we successfully destroy them then everything else will follow.

There was a youtube video I seen on here a couple of months ago that talked about the presidents and there battles with the central bankers trying to setup shop here. It talked about the correlation between Presidents passing laws against central banks and then their assassinations/attempts right after. I wish could find it but I can't remember the name of the video. It was very good at showing the connection.

[PaulaGem]

It is from my understanding that even before the FED came to be there were small periods where central banks tried to gain a foot hold here and that correlates to most of the bad economic activities we have seen before 1912. That and wars which I think are brought on by central banks using other countries they already have a foot hold in to provoke us here. This is why I think RP spends so much time going after the Central banks and planners because he knows that's the root of all evil and if we successfully destroy them then everything else will follow.

There was a youtube video I seen on here a couple of months ago that talked about the presidents and there battles with the central bankers trying to setup shop here. It talked about the correlation between Presidents passing laws against central banks and then their assassinations/attempts right after. I wish could find it but I can't remember the name of the video. It was very good at showing the connection.


Depressions and recessions are created by sudden contractions of the money supply. Before the Fed it was the major European banks that were used to accomplish this. After the creation of the Fed it became the tool.

This is one reason why the manipulation of the money supply must be audited. If we go back and look at 2008 in full audit, this will be obvious, and it should be the beginning of the end for the Fed.

[Zippyjuan]

History of US Recessions: http://recession.org/history

•Late 2000's Recession
•Early 2000's Recession
•1990's Recession
•1980's Recession
•1970's Oil Crisis
•Late 1960's Recession
•Early 1960's Recession
•Late 1950's Recession
•Early 1950's Recession
•Late 1940's Recession
•Recession of 1945
•The Great Depression
•Recession 1926
•Post World War I Recession
•Panic of 1907
•1870's Recession
•1890's Recession
•Panic of 1857
•Panic of 1837
•Depression of 1807
•Panic of 1819
•Panic of 1797
More details on each at the link if anybody is interested.

[Zippyjuan]

There are a lot of errors condensed into that two minutes.
One. The Fed does not print money - at least not in a literal sense. That is done by the Treasury. Nor do they charge to print that money.
Two. The Fed is not owned by Europeans.
Three. We do not give them tax dollars. They are self funding and return any excess monies they have at the end of the year to the US Treasury.
Four. They do not lend us (or the government) money. They do lend money to member banks who feel the need to borrow from them. In a sense they do lend money through purchasing Treasury securities (those are purchased on the open market from others who own them and not directly from the Treasury).
Five. They do not charge interest on these "loans" (buying Treasuries) but they do receive the same interest payments on them which any holder of US Treasuries does. They do receive interest on loans made to member banks.
Six. They do not send money overseas.
Seven. The Fed does not control the US gold reserves. That again is the Treasury.

While I do agree with auditing the Fed, this video has numerous serious errors in it.

[Liberty Star]

Wow, FR is owned by European bankers??

Is this really true?
Why no one in MSM has ever reported this.

[torchbearer]

Wow, FR is owned by European bankers??

Is this really true?
Why no one in MSM has ever reported this.

can anyone list the member banks of the government protected cartel called the federal reserve?

[Zippyjuan]

The twelve member banks which form the Federal Reserve:
http://www.federalreserve.gov/fraddress.htm

[torchbearer]

The twelve member banks which form the Federal Reserve:
http://www.federalreserve.gov/fraddress.htm

it doesn't say who owns them, just where they are located.

[hugolp]

There are a lot of errors condensed into that two minutes.
One. The Fed does not print money - at least not in a literal sense. That is done by the Treasury. Nor do they charge to print that money.

Technicality. The fact is that the Fed doesnt literally print the money doesnt change what they are saying.


Two. The Fed is not owned by Europeans.

The Fed is owned by the local Feds, who in turn are owned by the banks, who in turn are owned by who?


Three. We do not give them tax dollars. They are self funding and return any excess monies they have at the end of the year to the US Treasury.

You hide behing technicalities again. The fact is that the Fed gets bonds and the goverment has to repay with interest, and for doing nothing. So in fact, you are giving them taxpayer money.


Four. They do not lend us (or the government) money. They do lend money to member banks who feel the need to borrow from them. In a sense they do lend money through purchasing Treasury securities (those are purchased on the open market from others who own them and not directly from the Treasury).

This is plain wrong. The Fed lends money to goverment.


Five. They do not charge interest on these "loans" (buying Treasuries) but they do receive the same interest payments on them which any holder of US Treasuries does. They do receive interest on loans made to member banks.

Technicalities again.


Six. They do not send money overseas.

Yes they do. Check Bernanke and Garrison last video in the congresional appearing.


Seven. The Fed does not control the US gold reserves. That again is the Treasury.

Yes they do. It has been transfered.


While I do agree with auditing the Fed, this video has numerous serious errors in it.

Glad we agree on something.

[Zippyjuan]

http://www.publiceye.org/conspire/flaherty/flaherty5.html
A look at "foreign" ownership of the Federal Reserve

[torchbearer]

http://www.publiceye.org/conspire/flaherty/flaherty5.html
A look at "foreign" ownership of the Federal Reserve

the founders that we know of:
http://www.jekyllislandhistory.com/federalreserve.shtml

The 1910 "duck hunt" on Jekyll Island included Senator Nelson Aldrich, his personal secretary Arthur Shelton, former Harvard University professor of economics Dr. A. Piatt Andrew, J.P. Morgan & Co. partner Henry P. Davison, National City Bank president Frank A. Vanderlip and Kuhn, Loeb, and Co. partner Paul M. Warburg.

[torchbearer]

and then the good stuff:
http://www.apfn.org/apfn/reserve.htm

SECRETS OF THE FEDERAL RESERVE

The London Connection

By

Eustace Mullins

Dedicated to two of the finest scholars of the twentieth century

GEORGE STIMPSON

and

EZRA POUND

Who generously gave of their vast knowledge to a young writer to guide him in a field which he could not have managed alone.

ACKNOWLEDGEMENTS

I wish to thank my former fellow members of the staff of the Library of Congress whose very kind assistance, cooperation and suggestions made the early versions of this book possible. I also wish to thank the staffs of the Newberry Library, Chicago, the New York City Public Library, the Alderman Library of the University of Virginia, and the McCormick Library of Washington and Lee University, Lexington, Virginia, for their invaluable assistance in the completion of thirty years of further research for this definitive work on the Federal Reserve System.

About the Author

Eustace Mullins is a veteran of the United States Air Force, with thirty-eight months of active service during World War II. A native Virginian, he was educated at Washington and Lee University, New York University, Ohio University, the University of North Dakota, the Escuelas des Bellas Artes, San Miguel de Allende, Mexico, and the Institute of Contemporary Arts, Washington, D.C.

The original book, published under the title Mullins On The Federal Reserve, was commissioned by the poet Ezra Pound in 1948. Ezra Pound was a political prisoner for thirteen and a half years at St. Elizabeth’s Hospital, Washington, D.C. (a Federal institution for the insane). His release was accomplished largely through the efforts of Mr. Mullins.

The research at the Library of Congress was directed and reviewed daily by George Stimpson, founder of the National Press Club in Washington, whom The New York Times on September 28, 1952 called, "A highly regarded reference source in the capitol. Government officials, Congressmen, and reporters went to him for information on any subject."

Published in 1952 by Kasper and Horton, New York, the original book was the first nationally-circulated revelation of the secret meetings of the international bankers at Jekyll Island, Georgia, 1907-1910, at which place the draft of the Federal Reserve Act of 1913 was written.

During the intervening years, the author continued to gather new and more startling information about the backgrounds of the people who direct the Federal Reserve policies. New information gathered over the years from hundreds of newspapers, periodicals, and books give corroborating insight into the connections of the international banking houses.*

While researching this material, Eustace Mullins was on the staff of the Library of Congress. Mullins later was a consultant on highway finance for the American Petroleum Institute, consultant on hotel development for Institutions Magazine, and editorial director for the Chicago Motor Club’s four publications.

* The London Acceptance Council is limited to seventeen international banking houses authorized by the Bank of England to handle foreign exchange.

ABOUT THE COVER

The cover reproduces the outline of the eagle from the red shield, the coat of arms of the city of Frankfurt, Germany, adapted by Mayer Amschel Bauer (1744-1812) who changed his name from Bauer to Rothschild ("Red Shield"). Rothschild added five golden arrows held in the eagle’s talons, signifying his five sons who operated the five banking houses of the international House of Rothschild: Frankfurt, London, Paris, Vienna, and Naples.

Table of Contents

Chapter One Jekyll Island 1

Chapter Two The Aldrich Plan 10

Chapter Three The Federal Reserve Act 16

Chapter Four The Federal Advisory Council 40

Chapter Five The House of Rothschild 47

Chapter Six The London Connection 63

Chapter Seven The Hitler Connection 69

Chapter Eight World War One 82

Chapter Nine The Agricultural Depression 114

Chapter Ten The Money Creators 119

Chapter Eleven Lord Montagu Norman 131

Chapter Twelve The Great Depression 143

Chapter Thirteen The 1930's 151

Chapter Fourteen Congressional Expose 171

Addendum 179

Appendix I 181

Biographies 186

Bibliography 193

Index 197

[torchbearer]

,,

"HISTORICAL BEGINNINGS . . . . THE FEDERAL RESERVE",

published by the Federal Reserve Bank of Boston in its seventh printing, 1982.

Foreword

In 1949, while I was visiting Ezra Pound who was a political prisoner at St. Elizabeth’s Hospital, Washington, D.C. (a Federal institution for the insane), Dr. Pound asked me if I had ever heard of the Federal Reserve System. I replied that I had not, as of the age of 25. He then showed me a ten dollar bill marked "Federal Reserve Note" and asked me if I would do some research at the Library of Congress on the Federal Reserve System which had issued this bill. Pound was unable to go to the Library himself, as he was being held without trial as a political prisoner by the United States government. After he was denied broadcasting time in the U.S., Dr. Pound broadcast from Italy in an effort to persuade people of the United States not to enter World War II. Franklin D. Roosevelt had personally ordered Pound’s indictment, spurred by the demands of his three personal assistants, Harry Dexter White, Lauchlin Currie, and Alger Hiss, all of whom were subsequently identified as being connected with Communist espionage.

I had no interest in money or banking as a subject, because I was working on a novel. Pound offered to supplement my income by ten dollars a week for a few weeks. My initial research revealed evidence of an international banking group which had secretly planned the writing of the Federal Reserve Act and Congress’ enactment of the plan into law. These findings confirmed what Pound had long suspected. He said, "You must work on it as a detective story." I was fortunate in having my research at the Library of Congress directed by a prominent scholar, George Stimpson, founder of the National Press Club, who was described by The New York Times of September 28, 1952: "Beloved by Washington newspapermen as ‘our walking Library of Congress’, Mr. Stimpson was a highly regarded reference source in the Capitol. Government officials, Congressmen and reporters went to him for information on any subject."

I did research four hours each day at the Library of Congress, and went to St. Elizabeth’s Hospital in the afternoon. Pound and I went over the previous day’s notes. I then had dinner with George Stimpson at Scholl’s Cafeteria while he went over my material, and I then went back to my room to type up the corrected notes. Both Stimpson and Pound made many suggestions in guiding me in a field in which I had no previous experience. When Pound’s resources ran low, I applied to the Guggenheim Foundation, Huntington Hartford Foundation, and other foundations to complete my research on the Federal Reserve. Even though my foundation applications were sponsored by the three leading poets of America, Ezra Pound, E.E. Cummings, and Elizabeth Bishop, all of the foundations refused to sponsor this research. I then wrote up my findings to date, and in 1950 began efforts to market this manuscript in New York. Eighteen publishers turned it down without comment, but the nineteenth, Devin Garrity, president of Devin Adair Publishing Company, gave me some friendly advice in his office. "I like your book, but we can’t print it," he told me. "Neither can anybody else in New York. Why don’t you bring in a prospectus for your novel, and I think we can give you an advance. You may as well forget about getting the Federal Reserve book published. I doubt if it could ever be printed."

This was devastating news, coming after two years of intensive work. I reported back to Pound, and we tried to find a publisher in other parts of the country. After two years of fruitless submissions, the book was published in a small edition in 1952 by two of Pound’s disciples, John Kasper and David Horton, using their private funds, under the title Mullins on the Federal Reserve. In 1954, a second edition, with unauthorized alterations, was published in New Jersey, as The Federal Reserve Conspiracy. In 1955, Guido Roeder brought out a German edition in Oberammergau, Germany. The book was seized and the entire edition of 10,000 copies burned by government agents led by Dr. Otto John.

The burning of the book was upheld April 21, 1961 by judge Israel Katz of the Bavarian Supreme Court. The U.S. Government refused to intervene, because U.S. High Commissioner to Germany, James B. Conant (president of Harvard University 1933 to 1953), had approved the initial book burning order. This is the only book which has been burned in Germany since World War II. In 1968 a pirated edition of this book appeared in California. Both the FBI and the U.S. Postal inspectors refused to act, despite numerous complaints from me during the next decade. In 1980 a new German edition appeared. Because the U.S. Government apparently no longer dictated the internal affairs of Germany, the identical book which had been burned in 1955 now circulates in Germany without interference.

I had collaborated on several books with Mr. H.L. Hunt and he suggested that I should continue my long-delayed research on the Federal Reserve and bring out a more definitive version of this book. I had just signed a contract to write the authorized biography of Ezra Pound, and the Federal Reserve book had to be postponed. Mr. Hunt passed away before I could get back to my research, and once again I faced the problem of financing research for the book.

My original book had traced and named the shadowy figures in the United States who planned the Federal Reserve Act. I now discovered that the men whom I exposed in 1952 as the shadowy figures behind the operation of the Federal Reserve System were themselves shadows, the American fronts for the unknown figures who became known as the "London Connection." I found that notwithstanding our successes in the Wars of Independence of 1812 against England, we remained an economic and financial colony of Great Britain. For the first time, we located the original stockholders of the Federal Reserve Banks and traced their parent companies to the London Connection.

This research is substantiated by citations and documentation from hundreds of newspapers, periodicals and books and charts showing blood, marriage, and business relationships. More than a thousand issues of The New York Times on microfilm have been checked not only for original information, but verification of statements from other sources.

It is a truism of the writing profession that a writer has only one book within him. This seems applicable in my case, because I am now in the fifth decade of continuous writing on a single subject, the inside story of the Federal Reserve System. This book was from its inception commissioned and guided by Ezra Pound. Four of his protégés have previously been awarded the Nobel Prize for Literature, William Butler Yeats for his later poetry, James Joyce for "Ulysses", Ernest Hemingway for "The Sun Also Rises", and T.S. Elliot for "The Waste Land". Pound played a major role in the inspiration and in the editing of these works--which leads us to believe that this present work, also inspired by Pound, represents an ongoing literary tradition.

Although this book in its inception was expected to be a tortuous work on economic and monetary techniques, it soon developed into a story of such universal and dramatic appeal that from the outset, Ezra Pound urged me to write it as a detective story, a genre which was invented by my fellow Virginian, Edgar Allan Poe. I believe that the continuous circulation of this book during the past forty years has not only exonerated Ezra Pound for his much condemned political and monetary statements, but also that it has been, and will continue to be, the ultimate weapon against the powerful conspirators who compelled him to serve thirteen and a half years without trial, as a political prisoner held in an insane asylum a la KGB. His earliest vindication came when the government agents who represented the conspirators refused to allow him to testify in his own defense; the second vindication came in 1958 when these same agents dropped all charges against him, and he walked out of St. Elizabeth’s Hospital, a free man once more. His third and final vindication is this work, which documents every aspect of his exposure of the ruthless international financiers to whom Ezra Pound became but one more victim, doomed to serve years as the Man in the Iron Mask, because he had dared to alert his fellow-Americans to their furtive acts of treason against all people of the United States.

In my lectures throughout this nation, and in my appearances on many radio and television programs, I have sounded the toxin that the Federal Reserve System is not Federal; it has no reserves; and it is not a system at all, but rather, a criminal syndicate. From November, 1910, when the conspirators met on Jekyll Island, Georgia, to the present time, the machinations of the Federal Reserve bankers have been shrouded in secrecy. Today, that secrecy has cost the American people a three trillion dollar debt, with annual interest payments to these bankers amounting to some three hundred billion dollars per year, sums which stagger the imagination, and which in themselves are ultimately unpayable. Officials of the Federal Reserve System routinely issue remonstrances to the public, much as the Hindu fakir pipes an insistent tune to the dazed cobra which sways its head before him, not to resolve the situation, but to prevent it from striking him. Such was the soothing letter written by Donald J. Winn, Assistant to the Board of Governors in response to an inquiry by a Congressman, the Honorable Norman D. Shumway, on March 10, 1983. Mr. Winn states that "The Federal Reserve System was established by an act of Congress in 1913 and is not a ‘private corporation’." On the next page, Mr. Winn continues, "The stock of the Federal Reserve Banks is held entirely by commercial banks that are members of the Federal Reserve System." He offers no explanation as to why the government has never owned a single share of stock in any Federal Reserve Bank, or why the Federal Reserve System is not a "private corporation" when all of its stock is owned by "private corporations".

American history in the twentieth century has recorded the amazing achievements of the Federal Reserve bankers. First, the outbreak of World War I, which was made possible by the funds available from the new central bank of the United States. Second, the Agricultural Depression of 1920. Third, the Black Friday Crash on Wall Street of October, 1929 and the ensuing Great Depression. Fourth, World War II. Fifth, the conversion of the assets of the United States and its citizens from real property to paper assets from 1945 to the present, transforming a victorious America and foremost world power in 1945 to the world’s largest debtor nation in 1990. Today, this nation lies in economic ruins, devastated and destitute, in much the same dire straits in which Germany and Japan found themselves in 1945. Will Americans act to rebuild our nation, as Germany and Japan have done when they faced the identical conditions which we now face--or will we continue to be enslaved by the Babylonian debt money system which was set up by the Federal Reserve Act in 1913 to complete our total destruction? This is the only question which we have to answer, and we do not have much time left to answer it.

Because of the depth and the importance of the information which I had developed at the Library of Congress under the tutelage of Ezra Pound, this work became the happy hunting ground for many other would-be historians, who were unable to research this material for themselves. Over the past four decades, I have become accustomed to seeing this material appear in many other books, invariably attributed to other writers, with my name never mentioned. To add insult to injury, not only my material, but even my title has been appropriated, in a massive, if obtuse, work called "Secrets of the Temple--the Federal Reserve". This heavily advertised book received reviews ranging from incredulous to hilarious. Forbes Magazine advised its readers to read their review and save their money, pointing out that "a reader will discover no secrets" and that "This is one of those books whose fanfares far exceed their merit." This was not accidental, as this overblown whitewash of the Federal Reserve bankers was published by the most famous nonbook publisher in the world.

After my initial shock at discovering that the most influential literary personality of the twentieth century, Ezra Pound, was imprisoned in "the Hellhole" in Washington, I immediately wrote for assistance to a Wall Street financier at whose estate I had frequently been a guest. I reminded him that as a patron of the arts, he could not afford to allow Pound to remain in such inhuman captivity. His reply shocked me even more. He wrote back that "your friend can well stay where he is." It was some years before I was able to understand that, for this investment banker and his colleagues, Ezra Pound would always be "the enemy".

EustaceMullins

Jackson Hole, Wyoming

1991

[torchbearer]

,,

Introduction



Here are the simple facts of the great betrayal. Wilson and House knew that they were doing something momentous. One cannot fathom men’s motives and this pair probably believed in what they were up to. What they did not believe in was representative government. They believed in government by an uncontrolled oligarchy whose acts would only become apparent after an interval so long that the electorate would be forever incapable of doing anything efficient to remedy depredations.

EZRA POUND

(St. Elizabeth’s Hospital,

Washington, D.C. 1950)



(AUTHOR’S NOTE: Dr. Pound wrote this introduction for the earliest version of this book, published by Kasper and Horton, New York, 1952. Because he was being held as a political prisoner without trial by the Federal Government, he could not afford to allow his name to appear on the book because of additional reprisals against him. Neither could he allow the book to be dedicated to him, although he had commissioned its writing. The author is gratified to be able to remedy these necessary omissions, thirty-three years after the events.)

JEFFERSON’S OPINION ON THE

CONSTITUTIONALITY OF THE BANK

February 15, 1791

(The Writings of Thomas Jefferson, ed. by H. E. Bergh, Vol. III, p. 145 ff.)

The bill for establishing a national bank, in 1791, undertakes, among other things,--

1. To form the subscribers into a corporation.

2. To enable them, in their corporate capacities, to receive grants of lands; and, so far, is against the laws of mortmain.

3. To make alien subscribers capable of holding lands; and so far is against the laws of alienage.

4. To transmit these lands, on the death of a proprietor, to a certain line of successors; and so far, changes the course of descents.

5. To put the lands out of the reach of forfeiture, or escheat; and so far, is against the laws of forfeiture and escheat.

6. To transmit personal chattels to successors, in a certain line; and so far, is against the laws of distribution.

7. To give them the sole and exclusive right of banking, under the national authority; and, so far, is against the laws of monopoly.

8. To communicate to them a power to make laws, paramount to the laws of the states; for so they must be construed, to protect the institution from the control of the state legislatures; and so probably they will be construed.

I consider the foundation of the Constitution as laid on this ground--that all powers not delegated to the United States, by the Constitution, nor prohibited by it to the states, are reserved to the states, or to the people (12th amend.). To take a single step beyond the boundaries thus specially drawn around the powers of Congress, is to take possession of a boundless field of power, no longer susceptible of any definition.

The incorporation of a bank, and the powers assumed by this bill, have not, in my opinion, been delegated to the United States by the Constitution.

[torchbearer]

,,

CHAPTER ONE

Jekyll Island

"The matter of a uniform discount rate was discussed and settled at Jekyll Island."--Paul M. Warburg1

On the night of November 22, 1910, a group of newspaper reporters stood disconsolately in the railway station at Hoboken, New Jersey. They had just watched a delegation of the nation’s leading financiers leave the station on a secret mission. It would be years before they discovered what that mission was, and even then they would not understand that the history of the United States underwent a drastic change after that night in Hoboken.

The delegation had left in a sealed railway car, with blinds drawn, for an undisclosed destination. They were led by Senator Nelson Aldrich, head of the National Monetary Commission. President Theodore Roosevelt had signed into law the bill creating the National Monetary Commission in 1908, after the tragic Panic of 1907 had resulted in a public outcry that the nation’s monetary system be stabilized. Aldrich had led the members of the Commission on a two-year tour of Europe, spending some three hundred thousand dollars of public money. He had not yet made a report on the results of this trip, nor had he offered any plan for banking reform.

Accompanying Senator Aldrich at the Hoboken station were his private secretary, Shelton; A. Piatt Andrew, Assistant Secretary of the Treasury, and Special Assistant of the National Monetary Commission; Frank Vanderlip, president of the National City Bank of New York, Henry P. Davison, senior partner of J.P. Morgan Company, and generally regarded as Morgan’s personal emissary; and Charles D. Norton, president of the Morgan-dominated First National Bank of New York. Joining the group just before the train left the station were Benjamin Strong, also known as a lieutenant of J.P. Morgan; and Paul Warburg, a recent immigrant from Germany who had joined the banking house of Kuhn, Loeb

__________________________

1 Prof. Nathaniel Wright Stephenson, Paul Warburg’s Memorandum, Nelson Aldrich A Leader in American Politics, Scribners, N.Y. 1930

1



and Company, New York as a partner earning five hundred thousand dollars a year.

Six years later, a financial writer named Bertie Charles Forbes (who later founded the Forbes Magazine; the present editor, Malcom Forbes, is his son), wrote:

"Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily hieing hundred of miles South, embarking on a mysterious

launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written . . . . The utmost secrecy was enjoined upon all. The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York’s ubiquitous reporters had been foiled . . . Nelson (Aldrich) had confided to Henry, Frank,

Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System, the plan done on Jekyll Island in the conference with Paul, Frank and Henry . . . . Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality."2

The official biography of Senator Nelson Aldrich states:

"In the autumn of 1910, six men went out to shoot ducks, Aldrich, his secretary Shelton, Andrews, Davison, Vanderlip and Warburg. Reporters were waiting at the Brunswick (Georgia) station. Mr. Davison went out and talked to them. The reporters dispersed and the secret of the strange journey was not divulged. Mr. Aldrich asked him how he had managed it and he did not volunteer the information."3

Davison had an excellent reputation as the person who could conciliate warring factions, a role he had performed for J.P. Morgan during the settling of the Money Panic of 1907. Another Morgan partner, T.W. Lamont, says:



"Henry P. Davison served as arbitrator of the Jekyll Island expedition."4

__________________________

2 "CURRENT OPINION", December, 1916, p. 382.

3 Nathaniel Wright Stephenson, Nelson W. Aldrich, A Leader in American Politics, Scribners, N.Y. 1930, Chap. XXIV "Jekyll Island"

4 T.W. Lamont, Henry P. Davison, Harper, 1933

2

From these references, it is possible to piece together the story. Aldrich’s private car, which had left Hoboken station with its shades drawn, had taken the financiers to Jekyll Island, Georgia. Some years earlier, a very exclusive group of millionaires, led by J.P. Morgan, had purchased the island as a winter retreat. They called themselves the Jekyll Island Hunt Club, and, at first, the island was used only for hunting expeditions, until the millionaires realized that its pleasant climate offered a warm retreat from the rigors of winters in New York, and began to build splendid mansions, which they called "cottages", for their families’ winter vacations. The club building itself, being quite isolated, was sometimes in demand for stag parties and other pursuits unrelated to hunting. On such occasions, the club members who were not invited to these specific outings were asked not to appear there for a certain number of days. Before Nelson Aldrich’s party had left New York, the club’s members had been notified that the club would be occupied for the next two weeks.

The Jekyll Island Club was chosen as the place to draft the plan for control of the money and credit of the people of the United States, not only because of its isolation, but also because it was the private preserve of the people who were drafting the plan. The New York Times later noted, on May 3, 1931, in commenting on the death of George F. Baker, one of J.P. Morgan’s closest associates, that "Jekyll Island Club has lost one of its most distinguished members. One-sixth of the total wealth of the world was represented by the members of the Jekyll Island Club." Membership was by inheritance only.

The Aldrich group had no interest in hunting. Jekyll Island was chosen for the site of the preparation of the central bank because it offered complete privacy, and because there was not a journalist within fifty miles. Such was the need for secrecy that the members of the party agreed, before arriving at Jekyll Island, that no last names would be used at any time during their two week stay. The group later referred to themselves as the First Name Club, as the last names of Warburg, Strong, Vanderlip and the others were prohibited during their stay. The customary attendants had been given two week vacations from the club, and new servants brought in from the mainland for this occasion who did not know the names of any of those present. Even if they had been interrogated after the Aldrich party went back to New York, they could not have given the names. This arrangement proved to be so satisfactory that the members, limited to those who had actually been present at Jekyll Island, later had a number of informal get-togethers in New York.

Why all this secrecy? Why this thousand mile trip in a closed railway car to a remote hunting club? Ostensibly, it was to carry out a program of public service, to prepare banking reform which would be a boon to the people of the United States, which had been ordered by the National

3

Monetary Commission. The participants were no strangers to public benefactions. Usually, their names were inscribed on brass plaques, or on the exteriors of buildings which they had donated. This was not the procedure which they followed at Jekyll Island. No brass plaque was ever erected to mark the selfless actions of those who met at their private hunt

[forsmant]

To say that we didn't have depressions before the Federal Reserve is quite a misstatement. The US has had central banking before and has had nation wide depressions before. The federal reserve system is more efficient at inflating the supply of money for longer periods of time than any previous central bank. T

[PaulaGem]

To say that we didn't have depressions before the Federal Reserve is quite a misstatement. The US has had central banking before and has had nation wide depressions before. The federal reserve system is more efficient at inflating the supply of money for longer periods of time than any previous central bank. T

It is also more efficient at timing the crashes and enabling its member banks to profit from them.

[rpfan2008]

wow!!! that was very well said..short and to-the-point.

[Zippyjuan]

Technicality.


Glad we agree on something.

Technicalities are all the vid has to go on. They do not reflect reality of what the Fed does and how it operates.
"The Federal Reserve prints our money for a fee and then lends us the money we pay them to print, charges us interest on the loans and then sends that money overseas".
This is not the way it works.

Do you have any link to the Fed taking over the US Gold Reserves from the US Treasury? Or about the Fed sending money overseas? The money it says they send overseas is the money they allegedly charge the government to borrow money from the Fed.

The Fed collecting interest from the Government because it owns some Treasuries is not the Fed charging the government interest (the vid said they were charging them for printing money). Everybody who owns Treasuries gets that interest and the Fed has only a tiny percent of those issues.

And again, they are not "primarily owned by Europeans".

Perhaps some people need to read this: http://money.howstuffworks.com/fed.htm

Member banks:

Member Banks
Any national bank that is chartered by the federal government is automatically a member of the Federal Reserve System. State banks have to meet specific standards that the Board of Governors sets in order to become members.

Member banks are required to buy stock in their regional Reserve Banks. This stock doesn't give the bank any kind of voting privileges and cannot be sold or used as collateral for loans. What the banks do get is a six percent dividend on the stock and the ability to vote for the Class A and Class B directors of the Reserve Bank

[PaulaGem]

Technicalities are all the vid has to go on. They do not reflect reality of what the Fed does and how it operates.
"The Federal Reserve prints our money for a fee and then lends us the money we pay them to print, charges us interest on the loans and then sends that money overseas".
This is not the way it works.

Do you have any link to the Fed taking over the US Gold Reserves from the US Treasury? Or about the Fed sending money overseas? The money it says they send overseas is the money they allegedly charge the government to borrow money from the Fed.

The Fed collecting interest from the Government because it owns some Treasuries is not the Fed charging the government interest (the vid said they were charging them for printing money). Everybody who owns Treasuries gets that interest and the Fed has only a tiny percent of those issues.

And again, they are not "primarily owned by Europeans".

Perhaps some people need to read this: http://money.howstuffworks.com/fed.htm

I would not be sure that the Fed was "primarily owned by Europeans", but I do expect that they put up the front money and still own a huge chunk. After all, they were the ones that created the financial earthquake in the 1890s and the Jekyll Island crew couldn't have offered the American people a fictional earthquake-proof bank without their backing.

I would be surprised if it was not the same Euopean Banking interest still in control.

[PaulaGem]

The Fed collecting interest from the Government because it owns some Treasuries is not the Fed charging the government interest (the vid said they were charging them for printing money). Everybody who owns Treasuries gets that interest and the Fed has only a tiny percent of those issues.

And again, they are not "primarily owned by Europeans".

Perhaps some people need to read this: http://money.howstuffworks.com/fed.htm

Member banks:

BOLDED PHRASE: ????

Perhhaps some people need to read their posts more closely before they send.

Hey - the FED site says "nobody owns the Fed" too - you don't buy that one do you?

[Zippyjuan]

Questioning is a good thing but try to learn if there are facts to support it.

[Zippyjuan]

BOLDED PHRASE: ????

Perhhaps some people need to read their posts more closely before they send.

Hey - the FED site says "nobody owns the Fed" too - you don't buy that one do you?
The Department of Social Security and many other government agencies also hold Treasury notes and receive interest payments for them (the government is actually the #1 owner of Treasury notes). What is in error in the post?

[PaulaGem]

The Department of Social Security and many other government agencies also hold Treasury notes and receive interest payments for them (the government is actually the #1 owner of Treasury notes). What is in error in the post?

Then the Department of Social Security is supposedly charging interest too. The only problem is that it gets borrowed away as fast as it gets charged.

[Zippyjuan]

They are not charging interest- they are accepting interest offered by the Treasury for loaning them money- they are not getting any special deal that any other person or investor who loans money to the Treasury would get. If your bank offers you say five percent interest if you have a savings account with them, are you charging them interest or are they offering you interest?

[PaulaGem]

Questioning is a good thing but try to learn if there are facts to support it.

The fact is the House of Rothschild was pulling the strings of international finance for hundreds of years before the Fed was created, why in your wildest imagination would you believe they would give up that kind of action?

[Objectivist]

I did some checking.There was no depression of any sort before the birth of the fed.Fact is,it looks as if the transition created by the switch from tthe gold standard caused the 30's depression.

Bernanke agreed with Friedman on this point, the Fed didn't print money to keep up with the amount of Gold by a 1/3. Then someone pointed this out to the press and there was a run on banks, a 1/3 of the banks folded(4,400).

YouTube - Milton Friedman explains role of gold in Great Depression. (http://www.youtube.com/watch?v=O7pnjzCuSv8)

Then I've read a number of books that point to the same thing. Then some people win the Nobel Prize in their field of endeavor.:cool:

[qwerty]

This topic is getting interesting! :P

[qwerty]

Bump! :)

[Carson]

The problem may not be so much the Federal Reserve itself but the unrestrained borrowing that is being done through it.

http://photos.imageevent.com/stokeybob/newbegining/2508h-inflationgraph.jpg

Basically what this chart attempts to show is the buying power of the dollar. It is based on the Consumer Price Index.

See the little bump near the Revolutionary War? That is when the government printed up fiat money to help pay for the war. It was received so badly that, that is how the term, “Worthless as a Continental” came about.

You can see the other attempts at printing fiat money to finance wars on down through the years.

Now we get to recent history most of us can remember. Many of us will remember different things concerning the spending by the government; money it didn't have.

For me I remember my youth and the governments plan for, “Zero Population Growth” when they came into the schools and claimed the country was getting to crowded because we were running out of water, room on the roads, and things. They must have spent a lot on that and even more on subverting the nations immigration laws and flooding the county with illegal labor for the criminals in business.

Then there was the Vietnam War, and on, and on, and on with one need after the other for printing up fiat money it didn't have to manipulate the citizens of The United States and the, “We the People” of the world.

See the little line on the chart rise and rise and rise showing the value of our money being sucked dry by the vampires in the government.

Right now they are spending money to convince us that we need them to come to the rescue of our health care system. Like we've seen many times before they get the money they've just printed up out of thin air to their front organizations to get their dirty work done. You may say it isn't much, but look at the line on the chart. It all adds up and...What is it going to cost us in the future?

Not only are we responsible for the debt we are encoring but we are the only ones that seem to be held to the rules and all of the new laws they think up. Since California's Proposition 187 we know they are not only going to abide by ours but theirs as well.

When you realize that every time they spend money they don't have here, everyone anywhere in the world that holds a Federal Reserve Note is stiffed with the devaluation of the money they hold and are in fact paying the bill here, whether they realize it or not.

Maybe that is what they are thinking when they spend, and spend, and spend the way they do?????

Personally I think we need to come clean and regain control of our spending and our currency.








The CPI chart was reprinted with permission.
http://oregonstate.edu/cla/polisci/faculty/sahr-robert

[qwerty]

Thanks for the diagram!

[Zippyjuan]

Another look at historical price inflation:
http://upload.wikimedia.org/wikipedia/commons/thumb/2/20/US_Historical_Inflation_Ancient.svg/800px-US_Historical_Inflation_Ancient.svg.png
http://en.wikipedia.org/wiki/File:US_Historical_Inflation_Ancient.svg

I would agree that spending and deficit spending are more of a factor than the existance of the Fed. That is not to say though that the Fed has not been a factor though.

[Carson]

Another look at historical price inflation:

http://en.wikipedia.org/wiki/File:US_Historical_Inflation_Ancient.svg

I would agree that spending and deficit spending are more of a factor than the existance of the Fed. That is not to say though that the Fed has not been a factor though.


True. If they didn't print up fiat money when ever it suited them we wouldn't be in the fix we are right now.

Money may not need to be tied to gold but it needs to be tied to real assets in some sort of way that should be hard to manipulate for ill gotten gains.

The way it is now the Federal Reserve prints up our own fake money and we pay them interest on it. How did we get to this?