FrankRep
01-29-2012, 06:35 PM
Why Americans Would Do Well to Abolish The Fed (http://www.scribd.com/doc/54100258/Abolish-the-Fed-1985)
American Opinion | Alan Stang
(publication of the John Birch Society (http://www.jbs.org/))
April 1985
Most Americans no doubt still believe that they are governed by the people they elect to Congress and the White House. Indeed, they were so governed until well into this century; and, even today, those elected officials wield considerable power, which makes the true relationship to our secret government difficult to see.
The fact is that the power our elected officials wield is the power to implement policy made elsewhere. Each party and each individual is allowed its own style, as long as it pleases powerful forces behind the scenes. The fact is that as long ago as December 23, 1913, the independence of the United States was all but cancelled. If the American people sufficiently understood just a small of what the central bankers have done to them with the Federal Reserve - the ruined property, the wasted lives - the response would be sudden and fierce.
To paraphrase Sun Tzu, excellence in warfare consists not just of winning without fighting, but of winning without the other side ever realizing that it has lost. Even greater excellence in warfare consists of winning without the other side even realizing there has been a battle. Supreme excellence in warfare consists of winning so artfully that the vanquished praise the victor as a savior, believing they have won with the help of the conqueror.
On learning for the first time of the machinations of the banking Insiders who control the Federal Reserve, many people protest our use of the word conspiracy, demanding: "Why do you have to call it that?" Such people would prefer a genteel "battle of ideas" to the hard fact that conspiracy is the only thing we can call it.
Origins Of The Fed
On the night of November 22, 1910, some of the most powerful bankers in the United States secretly met to plan a coup. Let Bertie Charles Forbes tell the story. He later founded Forbes magazine, and was the father of present editor Malcolm Forbes. Mr. B.C. Forbes's piece appeared in Current Opinion for December 1916. Here is what he 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 hundreds 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 name 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 which the railroad had received orders to draw up on an unfrequented platform ...."
They were on their way to Jekyll Island, Georgia, to orchestrate the theft of our nation's money system, without which our independence is impossible. Later, the conspirators referred to themselves humorously as the First Name Club, because they had forbidden each other the use of their last names on the island, and had brought in servants from the mainland who did not know them.
The conspirators were meeting to create a central bank. It would be privately owned. It would issue currency and control the nation's credit. However, it would not be called a central bank. It would be called the Federal Reserve, to create the spurious impression that it was part of the federal government. In fact, it would not be federal and there would be no reserve to maintain stability. Today, this remains true, with the addition that the "Federal Reserve Note" is not a note, either, because a note is a promise to pay, and the Federal Reserve "Note" promises nothing.
The conspirators had with genius set the stage for their 1910 meeting by deliberately fomenting a money panic in 1907. Conspirator J.P. Morgan did that by spreading rumors that the Hienze Bank and Knickerbocker Trust were in trouble. In The Misdirection Conspiracy (http://www.amazon.com/gp/product/0942632001/ref=as_li_ss_tl?ie=UTF8&tag=libert0f-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=0942632001) (Buena Park, California, Seraphim Press, 1982), financial analyst Kenneth Coleman tells us this : " . . . Thousands of New Yorkers rushed from their homes to form long, unruly lines in front of both institutions in a desperate attempt to rescue their life's savings. Tellers, now acting as adversaries to the public interest, used every trick to stall for time. They made endless checks of records and signatures, disappearing at the slightest excuse to examine files."
The conspirators now began to talk about the need for "banking reform." America was told that such reform was needed to "put Wall Street in its place. " The bankers who conspired at Jekyll Island in 1910 put forth the "Federal Reserve System" for this purpose. At the same time, the same people had arranged to protect their fortunes through tax-free foundations and were selling the income tax with the slogan that it would "soak the rich." The foundations, the income tax, and the Federal Reserve are three legs on the same animal.
In the final version of the Fed scheme, the Board of Governors would be appointed by the President, but the real work of the Board would be controlled by a Federal Advisory Council, meeting with the Governors. The Council would be chosen by the directors of the twelve Federal Reserve Banks, but chiefly the one in New York, and would remain unknown to the public.
Among the conspirators at Jekyll Island was Paul Warburg, a Kuhn, Loeb partner who had immigrated to the United States from Germany in 1902. He still spoke with a thick accent that irritated the other First Namers on the island, but they needed him. Warburg introduced the device that makes it difficult for its victims to realize that his Federal Reserve was and is a central bank. That device was the regional reserve system. Warburg proposed a system of four (later twelve) branch reserve banks located around the country, inspiring the deception that the System is a national institution. In fact, the total control of the System by the New York bank makes those regional banks about as superfluous as another leg on a centipede.
Three things must be present for a conspiracy to exist. Two or more people must be involved; they must operate in secret (so far the Fed qualifies); and, they must be working toward an illegal end. The Fed is just as illegal today as it was at the beginning, because it is unconstitutional. Remember that the Fed is a bank of issue; but Article One, Section Eight, Paragraph Five of our basic law delegates to Congress the power to "coin money" and regulate the value thereof. Indeed, Congress has no authority to give that power away to an independent body. Yet that is exactly what Congress has done: given control of our money to a private corporation. Imagine General Motors or I.B.M. with such power, and you will see how crazy this is.
Also on Jekyll Island with Paul was Nelson, Nelson Aldrich, the maternal grandfather of Nelson Aldrich Rockefeller and David Rockefeller, of the Chase Manhattan Bank. Nelson Aldrich was a tool of both John D. Rockefeller and J.P. Morgan. He was a U.S. Senator from Rhode Island at the time, and did what he could to translate the wishes of those two conspirators into law. After the secret Jekyll Island meeting, their media and minions tried to sell the so-called "Aldrich Plan." The usual propaganda blitzkrieg we are familiar with today erupted, spreading the good news that the Aldrich Plan would "put the bankers in their place." It did not go over. People were too aware of where Nelson really stood to believe he was doing anything but fronting for the banking Insiders.
Also, there were giants in the earth in those days. Even today, all Americans have heard of Charles A. Lindbergh. Your reporter certainly means no disrespect to our doughty astronauts by his belief that Lindbergh's personal achievement was greater than theirs. Theirs has been a triumph of organization, of "systems," of "backup." Again, this does not diminish their courage. On the other hand, Lindbergh did it alone. There was no "mission control." From planning to performance, credit for the first flight from New York to Paris was his. Your reporter likes to think that the flight and Lindbergh's Americanism were connected. Later, he tried to keep our country out of war, which aroused the ire of Franklin Roosevelt, who saw Lucky Lindy as a potential political opponent.
As great as -- or greater than -- Charles A. Lindbergh Jr., the aviator, was his father, Charles Sr., the Congressman. The elder Lindbergh exposed the conspiratorial hands behind the panic of 1907. On December 15, 1911, he said this: "The government prosecutes other trusts, but supports the money trust. I have been waiting patiently for several years for an opportunity to expose the false money standard, and to how that greatest of all favoritism is that extended by the Government to the money trust."
Under fire from the senior Lindbergh and others, the Aldrich Plan failed to get enough support for passage. However, the conspirators typically turned this to their advantage. In the 1912 elections, popular Republican incumbent William Howard Taft was running again. His Democrat opponent was the little known and remarkably unattractive Woodrow Wilson. Taft seemed sure of re-election, but his victory would have meant continued defeat for the Aldrich Plan. So the conspirators decided to dump Taft and install Wilson. Woodrow Wilson had publically praised J.P. Morgan and the Aldrich Plan. He had been selected as the Democrat candidate by Edward Mandell House, who was a front-man for J.P. Morgan and John D. Rockefeller.
Indeed, while the Old Guard Republicans had been pushing the Aldrich Plan, the Democrats pushed the proposed Federal Reserve Act. Neither party told the people that these schemes were identical twins with different names. The only thing lacking was insurance that Wilson would win.
Suddenly, Teddy Roosevelt announced his candidancy on the trumped up Bull Moose ticket.
Imagine a Republican ex-President running against a Republican incumbent! Nevertheless, T.R. was remarkably well-financed. He drew more press coverage than Taft and Wilson combined. Roosevelt's votes were of course drawn away from fellow Republican Taft, with the predictable result that Wilson won the election. The banking Insiders had financed all three to the extent it served their purposes. At Kuhn, Loeb and Company, Felix Warburg was supporting Taft, Paul Warburg and Jacob Schiff were supporting Wilson, and Otto Kahn was supporting Roosevelt. The split they helped to create not only elected Wilson but put the Democrats in control of Congress.
Now, like Br'er Rabbit, Nelson (Aldrich) and Frank (Vanderlip), president of the National City Bank, and another conspirator at Jekyll Island, began to denounce the Democrats' proposed Federal Reserve Act. They said it would be bad for banking and government. It would be inflationary, because the proposed Fed would print notes. On October 23, 1913, The Nation magazine said this: "Mr. Aldrich himself raised a hue and cry over the issue of government 'fiat money,' that is, money issued without gold or bullion back of it, although a bill to do precisely that had been passed in 1908 with his own name as author, and he knew besides, that the 'government' had nothing to do with it, that the Federal Reserve Board would have full charge of the issuing of such moneys."
In short, the publicized Old Guard "opposition" to the Federal Reserve Act was completely controlled and a fraud. Conspirators used a version of jiujitsu to turn their former weakness into strength. By now, the American people knew that the giant investment bankers were their enemy. So the bankers made a show of "opposing" what they really wanted, to booby trap the people into supporting it. Meanwhile, here's what was happening behind the scenes, according to Edward House's diary entry for March 27, 1913: "Mr. J.P. Morgan, Jr. and Mr. Denny of his firm came promptly at five. McAdoo came about ten minutes afterward. Morgan had a currency plan already printed. I suggested he have it typewritten, so it would not seem too prearranged, and send it to Wilson and myself today."
How could one call this anything but a conspiracy?
By September 18, 1913, the House version of the Federal Reserve Act had been passed. On December nineteenth the Senate passed its own version . More than forty important differences in the two versions remained, and the Fed's opponents confidently prepared to leave Washington for the annual Christmas recess, in the belief that, according to long tradition, the conference bill would not be considered until the following year. Instead, on Sunday, December 21, 1913, all forty of the differences were resolved. You see, some of the bill's staunchest critics had already left town. For instance, only sixty-six Senators voted. Thirty were missing. Only forty-three Senators - less than a majority of the then 96-man body - voted for the illegal delivery of control over our currency to a private corporation. Wilson signed the coup into law on December twenty-third.
Congressman Lindbergh told the House of Representatives: "This Act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress .... If we had a people's Congress, there would be stability. The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government."
In 1917, Lindbergh published a book entitled Why Is Your Country At War? (http://www.amazon.com/gp/product/1150639059/ref=as_li_ss_tl?ie=UTF8&tag=libert0f-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1150639059), which exposed the Fed's secretive Advisory Council. Under authority of his war powers, Woodrow Wilson ordered government agents in 1918 to destroy the printing plates and copies of the book. There was a great deal that the big boys didn't want us to know.
Inside The Whale
Who owns the Fed? The answer will tell us who controls the country. The Federal Reserve Bank of New York issued 203,053 shares. On May 19, 1914, the Bank told the Comptroller of the Currency that the big New York banks had taken more than half of them. The Rockefeller National City Bank took the largest number of shares: 30,000. Morgan's First National Bank took 15,000 shares. When these two banks merged in 1955, they owned almost a quarter of the shares of the New York Fed, which controls the system. The Chase National Bank, also a Rockefeller entity, took 6,000 shares.
The shareholders of these banks, which own the stock of the Federal Reserve Bank of New York, have controlled our political and economic destinies since 1914. Among them were such familiar names as those of the Rothschilds of Europe; Lazard Freres; Kuhn, Loeb Company; Warburg Company; Lehman Brothers; Goldman Sachs; the Rockefeller family; and, the J.P. Morgan interests. Over the years these interests have been merged and consolidated so that the control is much more concentrated. Lehman Brothers has merged with Kuhn, Loeb Company, National Bank of Commerce is now Morgan Guaranty Trust Company, and First National Bank merged with the National City Bank.
As of July 26, 1983, the official Rockefeller banks (Chase Manhattan and Citibank) held almost thirty percent of the shares of the New York Fed. Morgan Guaranty held another nine percent. Foreign-held banks (European American, J. Henry Schroder, and National Bank of North America) control 4.5 percent of the stock. The same few families still control the banks that in turn control the Fed.
It is important to note that step five of the ten steps to Communism which Karl Marx listed in the Manifesto says this: "Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly." That is an exact description of the Federal Reserve System. Communist dictator Lenin believed that a Communist revolution was ninety percent complete when a central bank was established.
Indeed, the connection between the Fed and the Communists is not just ideological, but personal and organizational as well. As Woodrow Wilson observed in 1917: "Assurance has been added to our hope for the future peace of the world by the wonderful and heartening things that have been happening in the last few weeks in Russia. Here is a fit partner for a League of Honor."
Fed founder Paul Warburg's partner in Kuhn, Loeb - Jacob Schiff - reportedly financed the Russian revolution from New York to the tune of $20 million. Paul's brother Max financed Lenin and Trotsky through the Nye Banken in Sweden. Paul himself said in April of 1917 at the Commercial Club of Chicago that, in the future, "the most efficient Government promotion of industries in many lines will be held to exist in actual Government ownership and operation."
There was also the speech by Congressman Louis McFadden, Chairman of the House Banking and Currency Committee, and another hero like Lindbergh. The Congressional Record of June 15, 1933, printed his remarks. Your reporter's distinguished colleague Gary Allen quoted from them at length in AMERICAN OPINION for April 1970, and they deserve quoting again: "The Soviet government has been given United States Treasury funds by the Federal Reserve Board and the Federal Reserve Banks acting through the Chase Bank [Rockefeller] and the Guaranty Trust Company [Morgan] and other banks in New York City. England, no less than Germany, has drawn money from us through the Federal Reserve Banks and has relent it at high rates of interest to the Soviet government or has used it to finance its sales to Soviet Russia and engineering works within the Russian boundaries. The Dnieperstroy Dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Reserve Board and the Federal Reserve Banks . . . . "
All of which is by now a familiar story.
What It Has Done
The conspirators sold the Fed as a way to prevent the boom-and-bust they had fomented to sell the Fed. Since they won, it has of course fomented more boom-and-bust than ever before. Many Americans still think this is an accident, someone's mistake, or just the result of "dark market forces." On the contrary, the Fed was created precisely to produce boom-and-bust because boom-and-bust is exactly what it wants. The conspirators use it to bait their lines with "easy money" - inflation. The people swallow it and run with it. Finally, when the business people and farmers have spent years using it to create wealth, the conspirators call the notes, force the people to their knees, and foreclose on that wealth. Then the process begins again.
The conspirators behind the Fed also specialize in using war. They are as culpable as Stalin for millions of deaths. Take our involvement in World War I for example. By 1917, both the Army and Navy Departments had been buying war supplies for a year. Cordell Hull, later Roosevelt's Secretary of State, had earlier led the fight to give us the income tax. In his Memoirs (http://www.amazon.com/gp/product/0781248116/ref=as_li_ss_tl?ie=UTF8&tag=libert0f-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=0781248116) (New York, Macmillan, 1948), he wrote as follows of World War I: "The conflict forced the further development of the income* tax principle. Aiming, as it did, at the one great untaxed source of revenue, the income tax law had been enacted in the nick of time to meet the demands of war. And the conflict also assisted the putting into effect of the Federal Reserve System, likewise in the nick of time."
In the nick of time for what? Does not all this create the strong impression that both the Fed and the income tax were imposed upon us, at least in part, to finance a war into which conspirators were conspiring to trick us?
In 1914, Fed rates fell from six to four percent. In 1916, they went to three percent, and stayed there until 1920. This was not an accident. The conspirators who set these rates needed to float the billion-dollar Liberty Loans for the war. The purpose of the Liberty Bonds was to soak up the high wages and prices the workers and farmers were receiving. However, people accumulated millions in cash which they didn't put into bonds; wealth not controlled by the banking Insiders.
Much of that money had been deposited in small country banks, which were refusing to have anything to do with the Fed. The Fed set out to ruin those banks. A Federal Fund Loan Board was established. It encouraged the farmers to invest in land on long terms. Then inflation did its work. Inflation's purpose in Europe was to cancel much of the war debt the Allies owed the American people; in this country its purpose was to separate the people from the cash they had earned by enticing them to speculation and the incurring of long-term debt. The scheme worked, and the inflation also caused an enormous increase in the price of land, which meant that the farmers thought they were even better off than before.
Senator Robert L. Owen, Chairman of the Senate Banking and Currency Committee, testified as follows at the Senate Silver Hearings in 1939: "In the early part of 1920, the farmers were exceedingly prosperous. They were paying off the mortgages and buying a lot of new land, at the instance of the Government had borrowed money to do it - and then they were bankrupted by a sudden contraction of credit and currency which took place in 1920. What took place in 1920 was just the reverse of what should have been taking place. Instead of liquidating the excess of credits created by the war through a period of years, the Federal Reserve Board met in a meeting which was not disclosed to the public. They met on the 18th of May, 1920, and it was a secret meeting. They spent all day conferring .... The Class A Directors, the Federal Reserve Advisory Council, were present, but the Class B Directors, who represented business, commerce, and agriculture, were not present. The Class C Directors, representing the people of the United States, were not present and were not invited to be present. Only the big bankers were there, and their work of that day resulted in a contraction of credit which had the effect the next year of reducing the national income fifteen billion dollars, throwing millions of people out of employment, and reducing the value of lands and ranches by twenty billion dollars."
By the end of the decade, it was again time to harvest the chumps. Almost everyone of influence, from the President on down, encouraged the purchase of overpriced stocks. The Insiders told their favorites when the plug would be pulled, and friends of the banking Insiders were allowed to buy profitable stock at cost on the way up. They, of course, were also told when to cut and run.
Economist William Bryan writes in The United States' Unresolved Monetary And Political Problems: "When everything was ready, the New York financiers started calling 24 hour broker call loans. This meant that the stock brokers and the customers had to dump their stock on the market and brought a banking collapse all over the country because the banks not owned by the oligarchy were heavily involved in broker calls at this time, and bank runs soon exhausted their coin and currency and they had to close. The Federal Reserve System would not come to their aid, although they were instructed under the law to maintain an elastic currency."
Remember that the Fed was sold to us as the way to restore stability. Typically, here it was doing just the opposite, more indication of fraud. William Bryan says this: "If the Federal Reserve System had been maintaining an elastic currency, they could have stopped the runs on the banks immediately and only those people who had purchased over*priced stocks would have been hurt. The speculative banks could have been 'bailed out' with little or no cost to the Fed. But of course this was not the plan."
Supreme excellence in war consists not just of winning, but of convincing your opponent that he was at fault. So the Great Depression was blamed on "unfettered Free Enterprise."
Indeed, is not the same thing happening yet again as you read this? Another credit crunch is again flattening the farmers after they had been induced to incur huge debts in anticipation of further raging inflation. They are being kicked off the land. Farmer friends tell your correspondent that the situation is as bad as - or worse than - the disaster of the Thirties, when farm debt was considerably smaller than it is now. Typically, government officials and some farm leaders are demanding still more government credit as the "solution," which amounts to throwing gasoline on a fire.
What will happen next? Ken Coleman, editor of Reality Theory ( 7439 La Palma, Buena Park, California 90620, $48 ), has one answer. He believes the Fed "intends no big bang depression or inflationary blow-off to either dilute the national debt or to purge private debt, price inflation or usurious interest rates from the economy. Rather, it will try to let the air out of its bloated economic balloon a little at a time. If I am right about this, we can expect another severe mini-recession or mini-inflation in the next 12-18 months. Whichever of these mini-crises occurs first will be blown way out of proportion to reality in order to inflict more monetary panic. The average person will be led to think the end is near. But the Fed and its fellow central banks will use these panics to fatten their reserves with profits and steal more and more power from our Democratic system ...."
Abolish The Fed!
A specter is haunting the Federal Reserve. A movement to abolish it is exploding across the country. The Alabama legislature has passed a Resolution, signed by the governor, asking Congress to repeal-it. In March 1983 the Idaho legislature did the same. So has the legislature of Washington. One of the national leaders of the movement to abolish the Fed is Washington state Senator Jack Metcalf. You will find Senator Metcalf at the state capital in Olympia.
Your reporter has yet to hear one word of coverage by the national press about any of this. Could that be because the people who control the Federal Reserve also control the mass media? For instance, Brown Brothers Harriman controls CBS; Lazard Freres does the same for the Washington Post; and, the New York Times interlocks with Morgan Guaranty Trust.
The word is nevertheless exploding, and the most dangerous moment will arrive when the revolution to restore control of the money to the people appears to have a chance of success. The record shows that the conspirators then will try to take control of the freedom movement, to deflect and pervert it, so that the "solution" will turn out to be the Federal Reserve under another name. By now, we have been fooled so often, we should be onto the game. Whatever we call it, central banking must be abolished. That means no more private corporations with legal-tender power over our money; no more debt currency. It means the restoration of the constitutional provisions on money. It means the restoration of gold and silver coinage and hard-money redemption of currency.
The question now is: Will a peaceful solution be arranged before the people start throwing the ropes over the lamp posts? That is up to you, David.
American Opinion | Alan Stang
(publication of the John Birch Society (http://www.jbs.org/))
April 1985
Most Americans no doubt still believe that they are governed by the people they elect to Congress and the White House. Indeed, they were so governed until well into this century; and, even today, those elected officials wield considerable power, which makes the true relationship to our secret government difficult to see.
The fact is that the power our elected officials wield is the power to implement policy made elsewhere. Each party and each individual is allowed its own style, as long as it pleases powerful forces behind the scenes. The fact is that as long ago as December 23, 1913, the independence of the United States was all but cancelled. If the American people sufficiently understood just a small of what the central bankers have done to them with the Federal Reserve - the ruined property, the wasted lives - the response would be sudden and fierce.
To paraphrase Sun Tzu, excellence in warfare consists not just of winning without fighting, but of winning without the other side ever realizing that it has lost. Even greater excellence in warfare consists of winning without the other side even realizing there has been a battle. Supreme excellence in warfare consists of winning so artfully that the vanquished praise the victor as a savior, believing they have won with the help of the conqueror.
On learning for the first time of the machinations of the banking Insiders who control the Federal Reserve, many people protest our use of the word conspiracy, demanding: "Why do you have to call it that?" Such people would prefer a genteel "battle of ideas" to the hard fact that conspiracy is the only thing we can call it.
Origins Of The Fed
On the night of November 22, 1910, some of the most powerful bankers in the United States secretly met to plan a coup. Let Bertie Charles Forbes tell the story. He later founded Forbes magazine, and was the father of present editor Malcolm Forbes. Mr. B.C. Forbes's piece appeared in Current Opinion for December 1916. Here is what he 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 hundreds 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 name 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 which the railroad had received orders to draw up on an unfrequented platform ...."
They were on their way to Jekyll Island, Georgia, to orchestrate the theft of our nation's money system, without which our independence is impossible. Later, the conspirators referred to themselves humorously as the First Name Club, because they had forbidden each other the use of their last names on the island, and had brought in servants from the mainland who did not know them.
The conspirators were meeting to create a central bank. It would be privately owned. It would issue currency and control the nation's credit. However, it would not be called a central bank. It would be called the Federal Reserve, to create the spurious impression that it was part of the federal government. In fact, it would not be federal and there would be no reserve to maintain stability. Today, this remains true, with the addition that the "Federal Reserve Note" is not a note, either, because a note is a promise to pay, and the Federal Reserve "Note" promises nothing.
The conspirators had with genius set the stage for their 1910 meeting by deliberately fomenting a money panic in 1907. Conspirator J.P. Morgan did that by spreading rumors that the Hienze Bank and Knickerbocker Trust were in trouble. In The Misdirection Conspiracy (http://www.amazon.com/gp/product/0942632001/ref=as_li_ss_tl?ie=UTF8&tag=libert0f-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=0942632001) (Buena Park, California, Seraphim Press, 1982), financial analyst Kenneth Coleman tells us this : " . . . Thousands of New Yorkers rushed from their homes to form long, unruly lines in front of both institutions in a desperate attempt to rescue their life's savings. Tellers, now acting as adversaries to the public interest, used every trick to stall for time. They made endless checks of records and signatures, disappearing at the slightest excuse to examine files."
The conspirators now began to talk about the need for "banking reform." America was told that such reform was needed to "put Wall Street in its place. " The bankers who conspired at Jekyll Island in 1910 put forth the "Federal Reserve System" for this purpose. At the same time, the same people had arranged to protect their fortunes through tax-free foundations and were selling the income tax with the slogan that it would "soak the rich." The foundations, the income tax, and the Federal Reserve are three legs on the same animal.
In the final version of the Fed scheme, the Board of Governors would be appointed by the President, but the real work of the Board would be controlled by a Federal Advisory Council, meeting with the Governors. The Council would be chosen by the directors of the twelve Federal Reserve Banks, but chiefly the one in New York, and would remain unknown to the public.
Among the conspirators at Jekyll Island was Paul Warburg, a Kuhn, Loeb partner who had immigrated to the United States from Germany in 1902. He still spoke with a thick accent that irritated the other First Namers on the island, but they needed him. Warburg introduced the device that makes it difficult for its victims to realize that his Federal Reserve was and is a central bank. That device was the regional reserve system. Warburg proposed a system of four (later twelve) branch reserve banks located around the country, inspiring the deception that the System is a national institution. In fact, the total control of the System by the New York bank makes those regional banks about as superfluous as another leg on a centipede.
Three things must be present for a conspiracy to exist. Two or more people must be involved; they must operate in secret (so far the Fed qualifies); and, they must be working toward an illegal end. The Fed is just as illegal today as it was at the beginning, because it is unconstitutional. Remember that the Fed is a bank of issue; but Article One, Section Eight, Paragraph Five of our basic law delegates to Congress the power to "coin money" and regulate the value thereof. Indeed, Congress has no authority to give that power away to an independent body. Yet that is exactly what Congress has done: given control of our money to a private corporation. Imagine General Motors or I.B.M. with such power, and you will see how crazy this is.
Also on Jekyll Island with Paul was Nelson, Nelson Aldrich, the maternal grandfather of Nelson Aldrich Rockefeller and David Rockefeller, of the Chase Manhattan Bank. Nelson Aldrich was a tool of both John D. Rockefeller and J.P. Morgan. He was a U.S. Senator from Rhode Island at the time, and did what he could to translate the wishes of those two conspirators into law. After the secret Jekyll Island meeting, their media and minions tried to sell the so-called "Aldrich Plan." The usual propaganda blitzkrieg we are familiar with today erupted, spreading the good news that the Aldrich Plan would "put the bankers in their place." It did not go over. People were too aware of where Nelson really stood to believe he was doing anything but fronting for the banking Insiders.
Also, there were giants in the earth in those days. Even today, all Americans have heard of Charles A. Lindbergh. Your reporter certainly means no disrespect to our doughty astronauts by his belief that Lindbergh's personal achievement was greater than theirs. Theirs has been a triumph of organization, of "systems," of "backup." Again, this does not diminish their courage. On the other hand, Lindbergh did it alone. There was no "mission control." From planning to performance, credit for the first flight from New York to Paris was his. Your reporter likes to think that the flight and Lindbergh's Americanism were connected. Later, he tried to keep our country out of war, which aroused the ire of Franklin Roosevelt, who saw Lucky Lindy as a potential political opponent.
As great as -- or greater than -- Charles A. Lindbergh Jr., the aviator, was his father, Charles Sr., the Congressman. The elder Lindbergh exposed the conspiratorial hands behind the panic of 1907. On December 15, 1911, he said this: "The government prosecutes other trusts, but supports the money trust. I have been waiting patiently for several years for an opportunity to expose the false money standard, and to how that greatest of all favoritism is that extended by the Government to the money trust."
Under fire from the senior Lindbergh and others, the Aldrich Plan failed to get enough support for passage. However, the conspirators typically turned this to their advantage. In the 1912 elections, popular Republican incumbent William Howard Taft was running again. His Democrat opponent was the little known and remarkably unattractive Woodrow Wilson. Taft seemed sure of re-election, but his victory would have meant continued defeat for the Aldrich Plan. So the conspirators decided to dump Taft and install Wilson. Woodrow Wilson had publically praised J.P. Morgan and the Aldrich Plan. He had been selected as the Democrat candidate by Edward Mandell House, who was a front-man for J.P. Morgan and John D. Rockefeller.
Indeed, while the Old Guard Republicans had been pushing the Aldrich Plan, the Democrats pushed the proposed Federal Reserve Act. Neither party told the people that these schemes were identical twins with different names. The only thing lacking was insurance that Wilson would win.
Suddenly, Teddy Roosevelt announced his candidancy on the trumped up Bull Moose ticket.
Imagine a Republican ex-President running against a Republican incumbent! Nevertheless, T.R. was remarkably well-financed. He drew more press coverage than Taft and Wilson combined. Roosevelt's votes were of course drawn away from fellow Republican Taft, with the predictable result that Wilson won the election. The banking Insiders had financed all three to the extent it served their purposes. At Kuhn, Loeb and Company, Felix Warburg was supporting Taft, Paul Warburg and Jacob Schiff were supporting Wilson, and Otto Kahn was supporting Roosevelt. The split they helped to create not only elected Wilson but put the Democrats in control of Congress.
Now, like Br'er Rabbit, Nelson (Aldrich) and Frank (Vanderlip), president of the National City Bank, and another conspirator at Jekyll Island, began to denounce the Democrats' proposed Federal Reserve Act. They said it would be bad for banking and government. It would be inflationary, because the proposed Fed would print notes. On October 23, 1913, The Nation magazine said this: "Mr. Aldrich himself raised a hue and cry over the issue of government 'fiat money,' that is, money issued without gold or bullion back of it, although a bill to do precisely that had been passed in 1908 with his own name as author, and he knew besides, that the 'government' had nothing to do with it, that the Federal Reserve Board would have full charge of the issuing of such moneys."
In short, the publicized Old Guard "opposition" to the Federal Reserve Act was completely controlled and a fraud. Conspirators used a version of jiujitsu to turn their former weakness into strength. By now, the American people knew that the giant investment bankers were their enemy. So the bankers made a show of "opposing" what they really wanted, to booby trap the people into supporting it. Meanwhile, here's what was happening behind the scenes, according to Edward House's diary entry for March 27, 1913: "Mr. J.P. Morgan, Jr. and Mr. Denny of his firm came promptly at five. McAdoo came about ten minutes afterward. Morgan had a currency plan already printed. I suggested he have it typewritten, so it would not seem too prearranged, and send it to Wilson and myself today."
How could one call this anything but a conspiracy?
By September 18, 1913, the House version of the Federal Reserve Act had been passed. On December nineteenth the Senate passed its own version . More than forty important differences in the two versions remained, and the Fed's opponents confidently prepared to leave Washington for the annual Christmas recess, in the belief that, according to long tradition, the conference bill would not be considered until the following year. Instead, on Sunday, December 21, 1913, all forty of the differences were resolved. You see, some of the bill's staunchest critics had already left town. For instance, only sixty-six Senators voted. Thirty were missing. Only forty-three Senators - less than a majority of the then 96-man body - voted for the illegal delivery of control over our currency to a private corporation. Wilson signed the coup into law on December twenty-third.
Congressman Lindbergh told the House of Representatives: "This Act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress .... If we had a people's Congress, there would be stability. The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government."
In 1917, Lindbergh published a book entitled Why Is Your Country At War? (http://www.amazon.com/gp/product/1150639059/ref=as_li_ss_tl?ie=UTF8&tag=libert0f-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1150639059), which exposed the Fed's secretive Advisory Council. Under authority of his war powers, Woodrow Wilson ordered government agents in 1918 to destroy the printing plates and copies of the book. There was a great deal that the big boys didn't want us to know.
Inside The Whale
Who owns the Fed? The answer will tell us who controls the country. The Federal Reserve Bank of New York issued 203,053 shares. On May 19, 1914, the Bank told the Comptroller of the Currency that the big New York banks had taken more than half of them. The Rockefeller National City Bank took the largest number of shares: 30,000. Morgan's First National Bank took 15,000 shares. When these two banks merged in 1955, they owned almost a quarter of the shares of the New York Fed, which controls the system. The Chase National Bank, also a Rockefeller entity, took 6,000 shares.
The shareholders of these banks, which own the stock of the Federal Reserve Bank of New York, have controlled our political and economic destinies since 1914. Among them were such familiar names as those of the Rothschilds of Europe; Lazard Freres; Kuhn, Loeb Company; Warburg Company; Lehman Brothers; Goldman Sachs; the Rockefeller family; and, the J.P. Morgan interests. Over the years these interests have been merged and consolidated so that the control is much more concentrated. Lehman Brothers has merged with Kuhn, Loeb Company, National Bank of Commerce is now Morgan Guaranty Trust Company, and First National Bank merged with the National City Bank.
As of July 26, 1983, the official Rockefeller banks (Chase Manhattan and Citibank) held almost thirty percent of the shares of the New York Fed. Morgan Guaranty held another nine percent. Foreign-held banks (European American, J. Henry Schroder, and National Bank of North America) control 4.5 percent of the stock. The same few families still control the banks that in turn control the Fed.
It is important to note that step five of the ten steps to Communism which Karl Marx listed in the Manifesto says this: "Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly." That is an exact description of the Federal Reserve System. Communist dictator Lenin believed that a Communist revolution was ninety percent complete when a central bank was established.
Indeed, the connection between the Fed and the Communists is not just ideological, but personal and organizational as well. As Woodrow Wilson observed in 1917: "Assurance has been added to our hope for the future peace of the world by the wonderful and heartening things that have been happening in the last few weeks in Russia. Here is a fit partner for a League of Honor."
Fed founder Paul Warburg's partner in Kuhn, Loeb - Jacob Schiff - reportedly financed the Russian revolution from New York to the tune of $20 million. Paul's brother Max financed Lenin and Trotsky through the Nye Banken in Sweden. Paul himself said in April of 1917 at the Commercial Club of Chicago that, in the future, "the most efficient Government promotion of industries in many lines will be held to exist in actual Government ownership and operation."
There was also the speech by Congressman Louis McFadden, Chairman of the House Banking and Currency Committee, and another hero like Lindbergh. The Congressional Record of June 15, 1933, printed his remarks. Your reporter's distinguished colleague Gary Allen quoted from them at length in AMERICAN OPINION for April 1970, and they deserve quoting again: "The Soviet government has been given United States Treasury funds by the Federal Reserve Board and the Federal Reserve Banks acting through the Chase Bank [Rockefeller] and the Guaranty Trust Company [Morgan] and other banks in New York City. England, no less than Germany, has drawn money from us through the Federal Reserve Banks and has relent it at high rates of interest to the Soviet government or has used it to finance its sales to Soviet Russia and engineering works within the Russian boundaries. The Dnieperstroy Dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Reserve Board and the Federal Reserve Banks . . . . "
All of which is by now a familiar story.
What It Has Done
The conspirators sold the Fed as a way to prevent the boom-and-bust they had fomented to sell the Fed. Since they won, it has of course fomented more boom-and-bust than ever before. Many Americans still think this is an accident, someone's mistake, or just the result of "dark market forces." On the contrary, the Fed was created precisely to produce boom-and-bust because boom-and-bust is exactly what it wants. The conspirators use it to bait their lines with "easy money" - inflation. The people swallow it and run with it. Finally, when the business people and farmers have spent years using it to create wealth, the conspirators call the notes, force the people to their knees, and foreclose on that wealth. Then the process begins again.
The conspirators behind the Fed also specialize in using war. They are as culpable as Stalin for millions of deaths. Take our involvement in World War I for example. By 1917, both the Army and Navy Departments had been buying war supplies for a year. Cordell Hull, later Roosevelt's Secretary of State, had earlier led the fight to give us the income tax. In his Memoirs (http://www.amazon.com/gp/product/0781248116/ref=as_li_ss_tl?ie=UTF8&tag=libert0f-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=0781248116) (New York, Macmillan, 1948), he wrote as follows of World War I: "The conflict forced the further development of the income* tax principle. Aiming, as it did, at the one great untaxed source of revenue, the income tax law had been enacted in the nick of time to meet the demands of war. And the conflict also assisted the putting into effect of the Federal Reserve System, likewise in the nick of time."
In the nick of time for what? Does not all this create the strong impression that both the Fed and the income tax were imposed upon us, at least in part, to finance a war into which conspirators were conspiring to trick us?
In 1914, Fed rates fell from six to four percent. In 1916, they went to three percent, and stayed there until 1920. This was not an accident. The conspirators who set these rates needed to float the billion-dollar Liberty Loans for the war. The purpose of the Liberty Bonds was to soak up the high wages and prices the workers and farmers were receiving. However, people accumulated millions in cash which they didn't put into bonds; wealth not controlled by the banking Insiders.
Much of that money had been deposited in small country banks, which were refusing to have anything to do with the Fed. The Fed set out to ruin those banks. A Federal Fund Loan Board was established. It encouraged the farmers to invest in land on long terms. Then inflation did its work. Inflation's purpose in Europe was to cancel much of the war debt the Allies owed the American people; in this country its purpose was to separate the people from the cash they had earned by enticing them to speculation and the incurring of long-term debt. The scheme worked, and the inflation also caused an enormous increase in the price of land, which meant that the farmers thought they were even better off than before.
Senator Robert L. Owen, Chairman of the Senate Banking and Currency Committee, testified as follows at the Senate Silver Hearings in 1939: "In the early part of 1920, the farmers were exceedingly prosperous. They were paying off the mortgages and buying a lot of new land, at the instance of the Government had borrowed money to do it - and then they were bankrupted by a sudden contraction of credit and currency which took place in 1920. What took place in 1920 was just the reverse of what should have been taking place. Instead of liquidating the excess of credits created by the war through a period of years, the Federal Reserve Board met in a meeting which was not disclosed to the public. They met on the 18th of May, 1920, and it was a secret meeting. They spent all day conferring .... The Class A Directors, the Federal Reserve Advisory Council, were present, but the Class B Directors, who represented business, commerce, and agriculture, were not present. The Class C Directors, representing the people of the United States, were not present and were not invited to be present. Only the big bankers were there, and their work of that day resulted in a contraction of credit which had the effect the next year of reducing the national income fifteen billion dollars, throwing millions of people out of employment, and reducing the value of lands and ranches by twenty billion dollars."
By the end of the decade, it was again time to harvest the chumps. Almost everyone of influence, from the President on down, encouraged the purchase of overpriced stocks. The Insiders told their favorites when the plug would be pulled, and friends of the banking Insiders were allowed to buy profitable stock at cost on the way up. They, of course, were also told when to cut and run.
Economist William Bryan writes in The United States' Unresolved Monetary And Political Problems: "When everything was ready, the New York financiers started calling 24 hour broker call loans. This meant that the stock brokers and the customers had to dump their stock on the market and brought a banking collapse all over the country because the banks not owned by the oligarchy were heavily involved in broker calls at this time, and bank runs soon exhausted their coin and currency and they had to close. The Federal Reserve System would not come to their aid, although they were instructed under the law to maintain an elastic currency."
Remember that the Fed was sold to us as the way to restore stability. Typically, here it was doing just the opposite, more indication of fraud. William Bryan says this: "If the Federal Reserve System had been maintaining an elastic currency, they could have stopped the runs on the banks immediately and only those people who had purchased over*priced stocks would have been hurt. The speculative banks could have been 'bailed out' with little or no cost to the Fed. But of course this was not the plan."
Supreme excellence in war consists not just of winning, but of convincing your opponent that he was at fault. So the Great Depression was blamed on "unfettered Free Enterprise."
Indeed, is not the same thing happening yet again as you read this? Another credit crunch is again flattening the farmers after they had been induced to incur huge debts in anticipation of further raging inflation. They are being kicked off the land. Farmer friends tell your correspondent that the situation is as bad as - or worse than - the disaster of the Thirties, when farm debt was considerably smaller than it is now. Typically, government officials and some farm leaders are demanding still more government credit as the "solution," which amounts to throwing gasoline on a fire.
What will happen next? Ken Coleman, editor of Reality Theory ( 7439 La Palma, Buena Park, California 90620, $48 ), has one answer. He believes the Fed "intends no big bang depression or inflationary blow-off to either dilute the national debt or to purge private debt, price inflation or usurious interest rates from the economy. Rather, it will try to let the air out of its bloated economic balloon a little at a time. If I am right about this, we can expect another severe mini-recession or mini-inflation in the next 12-18 months. Whichever of these mini-crises occurs first will be blown way out of proportion to reality in order to inflict more monetary panic. The average person will be led to think the end is near. But the Fed and its fellow central banks will use these panics to fatten their reserves with profits and steal more and more power from our Democratic system ...."
Abolish The Fed!
A specter is haunting the Federal Reserve. A movement to abolish it is exploding across the country. The Alabama legislature has passed a Resolution, signed by the governor, asking Congress to repeal-it. In March 1983 the Idaho legislature did the same. So has the legislature of Washington. One of the national leaders of the movement to abolish the Fed is Washington state Senator Jack Metcalf. You will find Senator Metcalf at the state capital in Olympia.
Your reporter has yet to hear one word of coverage by the national press about any of this. Could that be because the people who control the Federal Reserve also control the mass media? For instance, Brown Brothers Harriman controls CBS; Lazard Freres does the same for the Washington Post; and, the New York Times interlocks with Morgan Guaranty Trust.
The word is nevertheless exploding, and the most dangerous moment will arrive when the revolution to restore control of the money to the people appears to have a chance of success. The record shows that the conspirators then will try to take control of the freedom movement, to deflect and pervert it, so that the "solution" will turn out to be the Federal Reserve under another name. By now, we have been fooled so often, we should be onto the game. Whatever we call it, central banking must be abolished. That means no more private corporations with legal-tender power over our money; no more debt currency. It means the restoration of the constitutional provisions on money. It means the restoration of gold and silver coinage and hard-money redemption of currency.
The question now is: Will a peaceful solution be arranged before the people start throwing the ropes over the lamp posts? That is up to you, David.