1912
The psychologist Henry Goddard had introduced the Binet intelligence test to the US at the start of the century. This gave the eugenicists a way to quantify intelligence, and, more particularly, measure and define íidiotsí, íimbecilesí and ímoronsí. Goddardís famous study of the inheritance of feeble-mindedness in the pseudonymous íKallikakí family was published in 1912.

Senator LaFollette and Congressman Lindbergh spoke regularly in opposition to the Aldrich Plan in 1912. They also aroused popular feeling against the Money Trust. Senator LaFollette publicly charged that a money trust of fifty men controlled the United States. George F. Baker, partner of J.P. Morgan, on being queried by reporters as to the truth of the charge, replied that it was absolutely in error. He said that he knew from personal knowledge that not more than eight men ran this country. The Nation Magazine replied editorially to Senator LaFollette that "If there is a Money Trust, it will not be practical to establish that it exercises its influence either for good or for bad." Senator LaFollette remarks in his memoirs that his speech against the Money Trust later cost him the Presidency of the United States, just as Woodrow Wilsonís early support of the Aldrich Plan had brought him into consideration for that office.

Congress appointed a committee to investigate the control of money and credit in the United States. This was the Pujo Committee , a subcommittee of the House Banking and Currency Committee, which conducted the famous "Money Trust" hearings in 1912, under the leadership of Congressman Arsene Pujo of Louisiana, who was regarded as a spokesman for the oil interests. These hearings were deliberately dragged on for five months, and resulted in six-thousand pages of printed testimony in four volumes. Month after month, the bankers made the train trip from New York to Washington, testified before the Committee and returned to New York. The hearings were extremely dull, and no startling information turned up at these sessions. The bankers solemnly admitted that they were indeed bankers, insisted that they always operated in the public interest, and claimed that they were animated only by the highest ideals of public service, like the Congressmen before whom they were testifying.

The man who single-handedly carried on these hearings, Samuel Untermyer. He was one of the principal contributors to Woodrow Wilsonís Presidential campaign fund, and was one of the wealthiest corporation lawyers in New York. He refused to ask either Senator LaFollette or Congressman Lindbergh to testify in the investigation which they alone had forced Congress to hold. [...]

Although he was a specialist in such matters, Untermyer did not ask any of the bankers about the system of interlocking directorates through which they controlled industry. He did not go into international gold movements, which were known as a factor in money panics, or the international relationships between American bankers and European bankers. The international banking houses of Eugene Meyer, Lazard Freres, J. & W. Seligman, Ladenburg Thalmann, Speyer Brothers, M. M. Warburg, and the Rothschild Brothers did not arouse Samuel Untermyerís curiosity, although it was well known in the New York financial world that all of these family banking houses either had branches or controlled subsidiary houses in Wall Street. When Jacob Schiff appeared before the Pujo Committee, Mr. Untermyerís adroit questioning allowed Mr. Schiff to talk for many minutes without revealing any information about the operations of the banking house of Kuhn Loeb Company, of which he was senior partner, and which Senator Robert L. Owen had identified as the representative of the European Rothschilds in the United States. [...]

The farce of the Pujo Committee ended without a single well-known opponent of the money creators being allowed to appear or testify. As far as Samuel Untermyer was concerned, Senator LaFollette and Congressman Charles Augustus Lindbergh had never existed. [...] At the close of the hearings, the bankers and their subsidized newspapers claimed that the only way to break the "Money Trust monopoly" was to enact the banking and currency legislation now being proposed to Congress, a bill which would be passed a year later as the Federal Reserve Act. The press seriously demanded that the New York banking monopoly be broken by turning over the administration of the new banking system to the most knowledgeable banker of them all, Paul Warburg. [...]

The Presidential campaign of 1912 records one of the more interesting political upsets in American history. The incumbent, William Howard Taft, was a popular president, and the Republicans, in a period of general prosperity, were firmly in control of the government through a Republican majority in both houses. The Democratic challenger, Woodrow Wilson, Governor of New Jersey, had no national recognition, and was a stiff, austere man who excited little public support. Both parties included a monetary reform bill in their platforms: The Republicans were committed to the Aldrich Plan, which had been denounced as a Wall Street plan, and the Democrats had the Federal Reserve Act. Neither party bothered to inform the public that the bills were almost identical except for the names. In retrospect, it seems obvious that the money creators decided to dump Taft and go with Wilson. [...]

Since the bankers were financing both candidates, they would win regardless of the outcome. Later Congressional testimony showed that in the firm of Kuhn Loeb Company, Felix Warburg was supporting Taft, Paul Warburg and Jacob Schiff were supporting Wilson. The result was that a Democratic Congress and a Democratic President were elected in 1912 to get the central bank legislation passed. It seems probable that the identification of the Aldrich Plan as a Wall Street operation predicted that it would have a difficult passage through Congress, as the Democrats would solidly oppose it, whereas a successful Democratic candidate, supported by a Democratic Congress, would be able to pass the central bank plan. [...] Col. Garrison, an agent of Brown Brothers bankers, later Brown Brothers Harriman, wrote in this book,

"Paul Warburg is the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition. The mastermind of both plans was Baron Alfred Rothschild of London." [...]

Colonel Edward Mandell House was referred to by Rabbi Stephen Wise in his autobiography, Challenging Years as "the unofficial Secretary of State". House noted that he and Wilson knew that in passing the Federal Reserve Act, they had created an instrument more powerful than the Supreme Court. The Federal Reserve Board of Governors actually comprised a Supreme Court of Finance, and there was no appeal from any of their rulings. [...]

In 1911, prior to Wilsonís taking office as President, Colonel House had returned to his home in Texas and completed a book called Philip Dru, Administrator. Ostensibly a novel, it was actually a detailed plan for the future government of the United States, "which would establish Socialism as dreamed by Karl Marx", according to House.

This "novel" predicted the enactment of the graduated income tax, excess profits tax, unemployment insurance, social security, and a flexible currency system. In short, it was the blueprint which was later followed by the Woodrow Wilson and Franklin D. Roosevelt administrations. It was published "anonymously" by B. W. Huebsch of New York, and widely circulated among government officials, who were left in no doubt as to its authorship. [...] Westbrook Pegler, the Hearst columnist from 1932 to 1956, heard of the Philip Dru book and wrote a column about it, stating:

"One of the institutions outlined in Philip Dru is the Federal Reserve System. The Schiffs, the Warburgs, the Kahns, the Rockefellers and Morgans put their faith in House. The Schiff, Warburg, Rockefeller and Morgan interests were personally represented in the mysterious conference at Jekyll Island. Frankfurter landed on the Harvard law faculty, thanks to a financial contribution to Harvard by Felix Warburg and Paul Warburg, and so we got Alger and Donald Hiss, Lee Pressman, Harry Dexter White and many other protŽgŽs of Little Weenie." [...]

Houseís openly Socialistic views were forthrightly expressed in Philip Dru, Administrator; on pages 57-58, House wrote: "In a direct and forceful manner, he pointed out that our civilization was fundamentally wrong, inasmuch, among other things, as it restricted efficiency. [...] In his book, House (Dru) envisions himself becoming a dictator and forcing on the people his radical views, page 148:

"They recognized the fact that Dru dominated the situation and that a master mind had at last risen in the Republic." He now assumes the title of General. "

General Dru announced his purpose of assuming the powers of a dictator . . . they were assured that he was free from any personal ambition . . . he proclaimed himself "Administrator of the Republic." [...]

Like most of the behind-the-scenes operators in this book, Col. Edward Mandell House had the obligatory "London connection". Originally a Dutch family, "Huis", his ancestors had lived in England for three hundred years, after which his father settled in Texas, where he made a fortune in blockade-running during the Civil War, shipping cotton and other contraband to his British connections, including the Rothschilds, and bringing back supplies for the beleaguered Texans. The senior House, not trusting the volatile Texas situation, prudently deposited all his profits from his blockade-running in gold with Baring banking house in London. At the close of the Civil War, he was one of the wealthiest men in Texas. [...] At the age of twelve, the young Edward Mandell House had brain fever, and was later further crippled by sunstroke. He was a semi-invalid, and his ailments gave him an odd Oriental appearance. He never entered any profession, but used his fatherís money to become the kingmaker of Texas politics, successively electing five governors from 1893 to 1911. In 1911 he began to support Wilson for president, and threw the crucial Texas delegation to him which ensured his nomination. House met Wilson for the first time at the Hotel Gotham, May 31, 1912. [...]

House recorded some of his efforts on behalf of the Federal Reserve Act in The Intimate Papers of Col. House,

"December 19, 1912. I talked with Paul Warburg over the phone concerning currency reform. I told of my trip to Washington and what I had done there to get it in working order. I told him that the Senate and the Congressmen seemed anxious to do what he desired, and that President- elect Wilson thought straight concerning the issue."

Thus we have Warburgís agent in Washington, Col. House, assuring him that the Senate and Congressmen will do what he desires, and that the President-elect "thought straight concerning the issue." In this context, representative government seems to have ceased to exist. (Secrets of the Federal Reserve, Griffin, 1952)

Woodrow Wilson wins by only 42% of the popular vote.

United States, Lockport, Illinois. Witnesses watched, as an object appeared to traverse the moonís face for about three minutes. It was rectangular with absolutely flat ends, about two-thirds the diameter of the full moon in length.

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1913
At his inauguration on March 4th, Woodrow Wilson notices that a wide space had been cleared in front of the speakerís platform. He motions to the police holding back the crowd and orders: "Let the people come forward." His supporters will later say the phrase expresses the spirit of his administration. The Wilson administration offers Franklin Roosevelt several posts. He chooses assistant secretary of the Navy, a post Theodore Roosevelt had held on his way to the presidency. President Wilson gives a Fourth of July battle reunion speech at Gettysburg.

Canada, Toronto. Several office workers in watched what they concluded to be a fleet of airships passing west to east in groups. They then returned later in a scattered formation. No airships or airplanes were ever identified with this report.

England. Two years before Germany officially launched its Zeppelin raids on Britain and phantom airships were once again crisscrossing the night skies. A few reports gave details of multi-colored, multiple lights being seen but as in earlier years the craft usually came equipped with one powerful light. See Mystery Airships of Britain for further details.

The psychologist Harry Goddard applied the Binet intelligence test to immigrants at Ellis Island for the first time. On that occasion 80% of those tested scored so low as to be considered ífeeble-mindedí (considering that the test - in English - was administered to many who spoke very little English, this absurd figure was later revised down, but not much). Laughlin later appeared as expert witness before the House Committee on Immigration and Naturalization and recommended that quotas be introduced restricting the numbers of immigrants from particular, undesirable racial groups. Stringent entry requirements were applied to the fortunate few. Jews were perceived as being just as unfit as any group and thus many Jews, fleeing racial persecution in Europe, were denied entry to the US by essentially racist regulations.

The New York State Legislature passes an act on April 24 incorporating the Rockefeller Foundation. The statement of purpose reads: "To promote the well-being of mankind throughout the world." New York Governor William Sulzer approves the charter on May 14. With the Foundation incorporated, John D. Rockefeller makes gifts to RF totaling $35 million, following a year later with $65 million.

Influenced by Abraham Flexnerís landmark study Medical Education in the United States and Canada, RF makes a grant to Johns Hopkins University to extend its model "full-time" system of basic medical education to clinical departments of medicine, surgery, and pediatrics. Other specialties are added later. Health becomes an RF priority at the first meeting of the board when Frederick Gates, long-time adviser to John D. Rockefeller, argues that "disease is the supreme ill in human life."

Congress passes the Federal Reserve Act. The New York Times reported on the front page, Monday, December 22, 1913 in headlines: MONEY BILL MAY BE LAW TODAY--CONFEREES HAD ADJUSTED NEARLY ALL DIFFERENCES AT 1:30 THIS MORNING--NO DEPOSIT GUARANTEES--SENATE YIELDS ON THIS POINT BUT PUTS THROUGH MANY OTHER CHANGES

"With almost unprecedented speed, the conference to adjust the House and Senate differences on the Currency Bill practically completed its labours early this morning. On Saturday the Conferees did little more than dispose of the preliminaries, leaving forty essential differences to be thrashed out Sunday. . . . No other legislation of importance will be taken up in either House of Congress this week. Members of both houses are already preparing to leave Washington." [...]

"Unprecedented speed", says The New York Times. One sees the fine hand of Paul Warburg in this final strategy. Some of the billís most vocal critics had already left Washington. It was a long-standing political courtesy that important legislation would not be acted upon during the week before Christmas, but this tradition was rudely shattered in order to perpetrate the Federal Reserve Act on the American people.

The Times buried a brief quote from Congressman Lindbergh that "the bill would establish the most gigantic trust on earth," and quoted Representative Guernsey of Maine, a Republican on the House Banking and Currency Committee, that "This is an inflation bill, the only question being the extent of the inflation."

Congressman Lindbergh said on that historic day, to the House:

"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 peopleís 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."

The December 23, 1913 New York Times editorially commented, in contrast to Congressman Lindberghís criticism of the bill,

"The Banking and Currency Bill became better and sounder every time it was sent from one end of the Capitol to the other. Congress worked under public supervision in making the bill."

By "public supervision", The Times apparently meant Paul Warburg, who for several days had maintained a small office in the Capitol building, where he directed the successful pre-Christmas campaign to pass the bill, and where Senators and Congressmen came hourly at his bidding to carry out his strategy. [...]

Wilson signed the Federal Reserve Act on December 23, 1913. History proved that on that day, the Constitution ceased to be the governing covenant of the American people, and our liberties were handed over to a small group of international bankers. (Secrets of the Federal Reserve, Griffin, 1952)

Congress passes the Sixteenth Amendment to the US Constitution permitting an Income Tax.

Go Back


1914
The Federal Reserve System began its operations in 1914 with the activity of the Organization Committee, appointed by Woodrow Wilson, and composed of Secretary of the Treasury William McAdoo, who was his son-in-law, Secretary of Agriculture Houston and Comptroller of the Currency John Skelton Williams. [...]

The certification of incorporation of the Federal Reserve Bank of New York was filed May 18, 1914. It provided for three Class A directors representing member banks in the district, three Class B directors representing commerce, agriculture, and industry, and three Class C directors representing the Federal Reserve Board. The original directors were elected in 1914; they proceeded to generate an energetic program. In the first year of organization the Federal Reserve Bank of New York held no fewer than 50 meetings.

For many years, there has been considerable mystery about who actually owns the stock of the Federal Reserve Banks. Congressman Wright Patman, leading critic of the System, tried to find out who the stockholders were. The stock in the original twelve regional Federal Reserve Banks was purchased by national banks in those twelve regions. Because the Federal Reserve Bank of New York was to set the interest rates and direct open market operations, thus controlling the daily supply and price of money throughout the United States, it is the stockholders of that bank who are the real directors of the entire system.

The original organization certificates of the twelve Federal Reserve Banks, giving the ownership of shares by the national banks in each district provide the details: The Federal Reserve Bank of New York issued 203,053 shares, and, as filed with the Comptroller of the Currency May 19, 1914, the large New York City banks took more than half of the outstanding shares. The Rockefeller Kuhn, Loeb-controlled National City Bank took the largest number of shares of any bank, 30,000 shares. J.P. Morganís First National Bank took 15,000 shares. When these two banks merged in 1955, they owned in one block almost one fourth of the shares in the Federal Reserve Bank of New York, which controlled the entire system, and thus they could name Paul Volcker or anyone else they chose to be Chairman of the Federal Reserve Board of Governors.

Chase National Bank took 6,000 shares. The Marine Nation Bank of Buffalo, later known as Marine Midland, took 6,000 shares. This bank was owned by the Schoellkopf family, which controlled Niagara Power Company and other large interests. National Bank of Commerce of New York City took 21,000 shares.

These interests have merged and consolidated in recent years, so that the control is much more concentrated. National Bank of Commerce is now Morgan Guaranty Trust Company. Lehman Brothers has merged with Kuhn, Loeb Company, First National Bank has merged with the National City Bank, and in the other eleven Federal Reserve Districts, these same shareholders indirectly own or control shares in those banks, with the other shares owned by the leading families in those areas who own or control the principal industries in these regions. The "local" families set up regional councils, on orders from New York, of such groups as the Council on Foreign Relations, The Trilateral Commission, and other instruments of control devised by their masters. They finance and control political developments in their area, name candidates, and are seldom successfully opposed in their plans. [...]

These developments following the passing of the Federal Reserve Act proved every one of the allegations Thomas Jefferson had made against a central bank in 1791: that the subscribers to the Federal Reserve Bank stock had formed a corporation, whose stock could be and was held by aliens; that this stock would be transmitted to a certain line of successors; that it would be placed beyond forfeiture and escheat; that they would receive a monopoly of banking, which was against the laws of monopoly; and that they now had the power to make laws, paramount to the laws of the states. No state legislature can countermand any of the laws laid down by the Federal Reserve Board of Governors for the benefit of their private stockholders. This board issues laws as to what the interest rate shall be, what the quantity of money shall be and what the price of money shall be. All of these powers abrogate the powers of the state legislatures and their responsibility to the citizens of those states. [...]

The ten largest bank holding companies in the United States are firmly in the hands of certain banking houses, all of which have branches in London. They are J.P. Morgan Company, Brown Brothers Harriman, Warburg, Kuhn Loeb and J. Henry Schroder. All of them maintain close relationships with the House of Rothschild, principally through the Rothschild control of international money markets through its manipulation of the price of gold. Each day, the world price of gold is set in the London office of N.M. Rothschild and Company. (Secrets of the Federal Reserve, Griffin, 1952)

Congress passes the Clayton Anti-trust Act.

Congress passed the Federal Trade Commission Act.

Arch Duke Ferdinand is assassinated. World War I Begins. US President, Woodrow Wilson proclaims US neutrality.

J. Henry Schroder Banking Company played an important role behind the scenes of WW I. No historian has a reasonable explanation of how World War I started. Archduke Ferdinand was assassinated at Sarajevo by Gavril Princeps, Austria demanded an apology from Serbia, and Serbia sent the note of apology. Despite this, Austria declared war, and soon the other nations of Europe joined the fray. Once the war had gotten started, it was found that it wasnít easy to keep it going. The principal problem was that Germany was desperately short of food and coal, and without Germany, the war could not go on.

John Hamill in The Strange Career of Mr. Hoover explains how the problem was solved. He tells us that the initiative came from the German authorities in Belgium through their continuous relations with the American Relief Committee. Hamill points out "That is what the Belgian Relief Committee was organized for--to keep Germany in food." The Belgian Relief Commission was organized by Emile Francqui, director of a large Belgian bank, Societe Generale, and a London mining promoter, an American named Herbert Hoover, who had been associated with Francqui in a number of scandals which had become celebrated court cases, notably the Kaiping Coal Company scandal in China, said to have set off the Boxer Rebellion, which had as its goal the expulsion of all foreign businessmen from China. Hoover had also carried out a number of mining promotions in various parts of the world as a secret agent for the Rothschilds, and had been rewarded with a directorship in one of the principal Rothschild enterprises, the Rio Tinto Mines in Spain and Bolivia.

Hoover had been barred from dealing on the London Stock Exchange because of one judgment against him, and his associate, Stanley Rowe, had been sent to prison for ten years. With this background, Hoover was called an ideal choice for a career in humanitarian work. ( John Hamill, The Strange Career of Mr. Hoover, William Faro, New York, 1931 - Copies of Hamillís book were systematically located and destroyed by government agents, because it was published on the eve of President Hooverís re-election campaign).

Although his name is unknown in the United States, Emile Francqui was the guiding spirit behind Herbert Hooverís rise to fortune. Hamill (on page 156) identifies Francqui as the director of many atrocities committed against natives in the Congo. "For every cartridge they spent, they had to bring in a manís hand". Hamill also says that Francqui "tricked" the Americans out of the Hankow-Canton railroad concession in China in 1901, and at the same time had "stood by" in case Hoover needed any further help in the "taking" of the Kaiping coal mines.

This is the humanitarian who had sole charge of the distribution of the Belgian "relief" during the World War, for which Hoover did the buying and shipping. Francqui was a director with Hoover, in the Chinese Engineering and Mining Company (the Kaiping mines), through which Hoover transported 200,000 Chinese slave workers to the Congo to work Francquiís copper mines."

Hamill says on page 311 that,

"Francqui opened the offices of the Belgian Relief in his bank, Societe Generale, as a one-man show, with a letter of permission from the German Governor General von der Goltz dated October 16, 1914. Francqui and Hoover threw themselves into the seemingly impossible task of provisioning Germany during the First World War."

President Wilson gives an address at Independence Hall in Philadelphia on the meaning of the Declaration of Independence. He utters the famous words, "Our country, right or wrong." Ellen Wilsonís health begins to fail early in the year from Brightís Disease. Informed that she is dying, Congress hastily passes a bill for slum clearance in Washington that she had very much to heart so that she can be told of it before she dies. She dies on August 6th. The president will become lonely and depressed.

Canada, Ontario. Eight witnesses saw a UFO floating on the water of Georgian Bay. Entities were manipulating a hose dipped into the water. On seeing the witnesses they returned inside, all except one who was still outside when the craft took off.

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1915
The success of Francqui and Hoover at provisioning Germany during the First World War was noted in Nordeutsche Allgemeine Zeitung, March 13, 1915, which noted that large quantities of food were now arriving from Belgium by rail. Schmollerís Yearbook for Legislation, Administration and Political Economy for 1916, shows that one billion pounds of meat, one and a half billion pounds of potatoes, one and a half billion pounds of bread, and one hundred twenty-one millions pounds of butter had been shipped from Belgium to Germany in that year. A patriotic British woman who had operated a small hospital in Belgium for several years, Edith Cavell, wrote to the Nursing Mirror in London, April 15, 1915, complaining that the "Belgian Relief" supplies were being shipped to Germany to feed the German army. The Germans considered Miss Cavell to be of no importance, and paid no attention to her, but the British Intelligence Service in London was appalled by Miss Cavellís discovery, and demanded that the Germans arrest her as a spy. Sir William Wiseman, head of British Intelligence, and partner of Kuhn Loeb Company, feared that the continuance of the war was at stake, and secretly notified the Germans that Miss Cavell must be executed. The Germans reluctantly arrested her and charged her with aiding prisoners of war to escape. The usual penalty for this offense was three months imprisonment, but the Germans bowed to Sir William Wisemanís demands, and shot Edith Cavell, thus creating one of the principal martyrs of the First World War.

28 American states had invalidated marriages between íNegroes and white personsí.

Canada. It was billed in newspapers of the time as the Phantom Invasion of Canada. Mystery aircraft invaded the skies and capital of this nation

The American International Corporation (AIC) was organized in New York on November 22, 1915, by the J.P. Morgan interests, with major participation by Stillmanís National City Bank and the Rockefeller interests. The general office of AIC was at 120 Broadway. The companyís charter authorized it to engage in any kind of business, except banking and public utilities, in any country in the world. The stated purpose of the corporation was to develop domestic and foreign enterprises, to extend American activities abroad, and to promote the interests of American and foreign bankers, business and engineering. The original capital authorization was $50 million and the board of directors represented the leading lights of the New York financial world. The company established representation in London, Paris, Buenos Aires, and Peking as well as in Petrograd, Russia. Less than two years after its formation AIC was operating on a substantial scale in Australia, Argentina, Uruguay, Paraguay, Colombia, Brazil, Chile, China, Japan, India, Ceylon, Italy, Switzerland, France, Spain, Cuba, Mexico, and other countries in Central America.

American International owned several subsidiary companies outright, had substantial interests in yet other companies, and operated still other firms in the United States and abroad. AIC also invested in United Fruit Company, which was involved in Central American revolutions in the 1920s.

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1916
With Edith Cavell out of the way, the "Belgian Relief" operation continued, although in 1916, German emissaries again approached London officials with the information that they did not believe Germany could continue military operations, not only because of food shortages, but because of financial problems. More "emergency relief" was sent, and Germany continued in the war until November, 1918. Two of Hooverís principal assistants were a former lumber shipping clerk from the West Coast, Prentiss Gray, and Julius H. Barnes, a grain salesman from Duluth. Both men became partners in J. Henry Schroder Banking Corporation in New York after the war, and amassed large fortunes, principally in grain and sugar.

Congress passes the Shipping Act.

President Wilson orders General John J. Pershing to pursue Mexican rebel Pancho Villa deep into Mexico. They donít catch him. Only a series of dramatic events will avert open war between Mexico and the U.S.

The Allied Machinery Company of America was founded in February 1916 and the entire share capital taken up by American International Corporation. The vice president of American International Corporation was Frederick Holbrook, an engineer and formerly head of the Holbrook Cabot & Rollins Corporation.

Ireland, Ballinasloe. A bright object was seen hovering in the sky. It was visible for fifteen minutes before traveling to the northwest. It was then observed to hover for a further forty-five minutes. It eventually vanished for good after Venus rose on the horizon.

Leon Trotsky was expelled from France, officially because of his participation in the Zimmerwald conference but also no doubt because of inflammatory articles written for Nashe Slovo, a Russian-language newspaper printed in Paris. In September 1916 Trotsky was politely escorted across the Spanish border by French police. A few days later Madrid police arrested him and lodged him in a "first-class cell" at a charge of one-and-one-half pesetas per day. Subsequently Trotsky was taken to Cadiz, then to Barcelona finally to be placed on board the Spanish Transatlantic Company steamer Monserrat. Trotsky and family crossed the Atlantic Ocean and landed in New York on January 13, 1917.

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1917
In January the Grace Russian Company was formed, the joint owners being W. R. Grace & Co. and the San Galli Trading Company of Petrograd. American International Corporation had a substantial investment in the Grace Russian Company and through Holbrook an interlocking directorship.

Trotsky wrote in his autobiography, My Life, "My only profession in New York was that of a revolutionary socialist." Yet the Trotsky family apartment in New York had a refrigerator and a telephone, and, according to Trotsky, that the family occasionally traveled in a chauffeured limousine. The stylish living standard is also at odds with Trotskyís reported income. The only funds that Trotsky admits receiving in 1916 and 1917 are $310, and, said Trotsky, "I distributed the $310 among five emigrants who were returning to Russia." Yet Trotsky had paid for a first-class cell in Spain, the Trotsky family had traveled across Europe to the United States, they had acquired an excellent apartment in New York - paying rent three months in advance - and they had use of a chauffeured limousine. All this on the earnings of an impoverished revolutionary for a few articles for the low-circulation Russian-language newspaper Nashe Slovo in Paris and Novy Mir in New York! Trotsky claimed that those who said he had other sources of income are "slanderers" spreading "stupid calumnies" and "lies," but obviously Trotsky had an unreported source of income.

Portugal, Fatima. Such phenomena including disks, like an "aircraft of light," described exactly in these terms by the witnesses of the fifth apparition. Also observed were double supersonic detonations, light protuberances, electro-static charges, and moving "stars," mysterious white flowers or snow that dropped down from the "aircraft of light," but disappeared when it made contact with the ground. These descriptions of "snow" or mysterious white "flowers" are quite similar to the descriptions of "angel hair" that are well known from some famous UFO cases. This was accompanied by additional unexplained aerial phenomena, in the form of glowing spheres and disc-shaped objects. The story given was that a silver disc appeared just as "the rain stopped and the clouds rolled back, the sun dimmed out and everything took on a gray, opaque appearance". The disc then dove in an erratic, zigzag pattern at the crowd, stopped just above their heads and then slowly maneuvered back into the sky. As it faded from view, the sun brightened and began to shine again normally. A local reporter took a photo of the disc.

Germany Bonn. The flamboyant fighter pilot Baron Manfred von Richtofen, known as the Red Baron not only shot down 80 enemy planes for the Germans during World War I, it is claimed that he also was the first human in history to gun down an alien spaceship! Former German Air Force ace Peter Waitzrik says he watched in astonishment as the deadeye fighter pilot shot a UFO with undulating orange lights out of the sky over Belgium in 1917. Then, Waitzrik says, he stared in disbelief as two bruised and battered occupants of the downed craft climbed from their spaceship and scampered off into the woods -- apparently never to be seen again.

"The Baron and I gave a full report on the incident back at headquarters and they told us not to ever mention it again," the feisty, 105-year-old retired airline pilot recently told a reporter. "And except for my wife and grandkids, I never told a soul. But itís been over 80 years, so what difference could it possibly make now?"

The aging Waitzrik said he and Baron Manfred von Richtofen -- the renowned Red Baron -- were flying an early morning mission over western Belgium in the spring of 1917 when the UFO suddenly appeared in a clear, blue sky directly ahead of their Fokker triplanes.

"We were terrified because weíd never seen anything like it before," recalled the easygoing great-great grandfather of five. "The U.S. had just entered the war, so we assumed it was something theyíd sent up."

The Baron immediately opened fire and the thing went down like a rock, shearing off tree limbs as it crashed in the woods. Then the two little baldheaded guys climbed out and ran away. Waitzrik said he assumed the glittering silver spaceship was some sort of enemy invention until the flying saucer scare that began in the late 1940s convinced him that his buddy had shot down a UFO.

"The thing was maybe 40 meters (136 feet) in diameter and looked just like those saucer- shaped spaceships that everybodyís been seeing for the last 50 years," the awed oldster said. "So thereís no doubt in my mind now that that was no U.S. reconnaissance plane the Baron shot down, that was some kind of spacecraft from another planet and those little guys who ran off into the woods werenít Americans, they were space aliens of some kind."

The Soviet Union is formed after Tsar Nicholas II is overthrown. It is often said that Jacob Schiff of Kuhn and Loeb financed the Russian Revolution, however, documents in the State Department files confirm Jacob Schiff was in fact against support of the Bolshevik regime. This position, as we shall see, was in direct contrast to the Morgan-Rockefeller promotion of the Bolsheviks.

Wilson, who ran for office again on the slogan, “He kept us out of the war,” begins his second term. In December, the US enters World War I.

G. Amsinck & Co., Inc. of New York; control of the company was acquired by American International Corporation in November 1917. Amsinck was the source of financing for German espionage in the United States.

American International Corporation (AIC) formed, in November, and wholly owned the Symington Forge Corporation, a major government contractor for shell forgings. Consequently, American International Corporation had significant interest in war contracts within the United States and overseas. It had a vested interest in the continuance of World War I.

American International Shipbuilding Corporation was wholly owned by AIC and signed substantial contracts for war vessels with the Emergency Fleet Corporation: one contract called for fifty vessels, followed by another contract for forty vessels, followed by yet another contract for sixty cargo vessels. American International Shipbuilding was the largest single recipient of contracts awarded by the U.S. government Emergency Fleet Corporation.

The directors of American International and some of their associations in 1917:

  • J. OGDEN ARMOUR Meatpacker, of Armour & Company, Chicago; director of the National City Bank of New York; and mentioned by A. A. Heller in connection with the Soviet Bureau

  • GEORGE JOHNSON BALDWIN Of Stone & Webster, 120 Broadway. During World War I Baldwin was chairman of the board of American International Shipbuilding, senior vice president of American International Corporation, director of G. Amsinck (Von Pavenstedt of Amsinck was a German espionage paymaster in the U.S.), and a trustee of the Carnegie Foundation, which financed the Marburg Plan for international socialism to be controlled behind the scenes by world finance.

  • C. A. COFFIN Chairman of General Electric (executive office: 120 Broadway), chairman of cooperation committee of the American Red Cross.

  • W. E. COREY (14 Wall Street) Director of American Bank Note Company, Mechanics and Metals Bank, Midvale Steel and Ordnance, and International Nickel Company; later director of National City Bank.

  • ROBERT DOLLAR San Francisco shipping magnate, who attempted in behalf of the Soviets to import tsarist gold rubles into U.S. in 1920, in contravention of U.S. regulations.

  • PIERRE S. DU PONT Of the du Pont family.

  • PHILIP A. S. FRANKLIN Director of National City Bank.

  • J.P. GRACE Director of National City Bank.
    R. F. HERRICK Director, New York Life Insurance; former president of the American Bankers Association; trustee of Carnegie Foundation.

  • OTTO H. KAHN Partner in Kuhn, Loeb. Kahnís father came to America in 1948, "having taken part in the unsuccessful German revolution of that year." According to J. H. Thomas (British socialist, financed by the Soviets), "Otto Kahnís face is towards the light."???

  • H. W. PRITCHETT Trustee of Carnegie Foundation.

  • PERCY A. ROCKEFELLER Son of John D. Rockefeller; married to Isabel, daughter of J. A. Stillman of National City Bank.

  • JOHN D. RYAN Director of copper-mining companies, National City Bank, and Mechanics and Metals Bank.

  • W. L. SAUNDERS Director the Federal Reserve Bank of New York, 120 Broadway, and chairman of Ingersoll-Rand. According to the National Cyclopaedia (26:81): "Throughout the war he was one of the Presidentís most trusted advisers."

  • J. A. STILLMAN President of National City Bank, after his father (J. Stillman, chairman of NCB) died in March 1918.

  • C. A. STONE Director (1920-22) of Federal Reserve Bank of New York, 120 Broadway; chairman of Stone & Webster, 120 Broadway; president (1916-23) of American International Corporation, 120 Broadway.

  • T. N. VAIL President of National City Bank of Troy, New York

  • F. A. VANDERLIP President of National City Bank.

  • E. S. WEBSTER Of Stone & Webster, 120 Broadway.

  • A. H. WIGGIN Director of Federal Reserve Bank of New York in the early 1930s.

  • BECKMAN WINTHROPE Director of National City Bank.

  • WILLIAM WOODWARD Director of Federal Reserve Bank of New York, 120 Broadway, and Hanover National Bank.

The positions of the twenty-two directors of American International Corporation with other institutions is significant. The National City Bank had no fewer than ten directors on the board of AIC; Stillman of NCB was at that time an intermediary between the Rockefeller and Morgan interests, and both the Morgan and the Rockefeller interests were represented directly on AIC. Kuhn, Loeb and the du Ponts each had one director. Stone & Webster had three directors. No fewer than four directors of AIC (Saunders, Stone, Wiggin, Woodward) either were directors of or were later to join the Federal Reserve Bank of New York. William Boyce Thompson, who contributed funds and his considerable prestige to the Bolshevik Revolution, was also a director of the Federal Reserve Bank of New York - the directorate of the FRB of New York comprised only nine members.

In 1917 the three Class A directors of the FRB were Franklin D. Locke, William Woodward, and Robert H. Treman. William Woodward was a director of American International Corporation (120 Broadway) and of the Rockefeller-controlled Hanover National Bank.

The three Class B directors were William Boyce Thompson, Henry R. Towne, and Leslie R. Palmer. We have already noted William B. Thompsonís substantial cash contribution to the Bolshevik cause. Henry R. Towne was chairman of the board of directors of the Morris Plan of New York, located at 120 Broadway; his seat was later taken by Charles A. Stone of American International Corporation (120 Broadway) and of Stone & Webster (120 Broadway).

The three Class C directors were Pierre Jay, W. L. Saunders, and George Foster Peabody. Nothing is known about Pierre Jay, except that his office was at 120 Broadway and he appeared to be significant only as the owner of Brearley School, Ltd. William Lawrence Saunders was also a director of American International Corporation; he openly avowed pro-Bolshevik sympathies, disclosing them in a letter to President Woodrow Wilson. George Foster Peabody was an active socialist. In brief, of the nine directors of the Federal Reserve Bank of New York, four were physically located at 120 Broadway and two were then connected with American International Corporation. And at least four members of AICís board were at one time or another directors of the FRB of New York.

Woodrow Wilson was the fairy godmother who provided Trotsky with a passport to return to Russia to "carry forward" the revolution. This American passport was accompanied by a Russian entry permit and a British transit visa. Jennings C. Wise, in Woodrow Wilson: Disciple of Revolution, makes the pertinent comment,

"Historians must never forget that Woodrow Wilson, despite the efforts of the British police, made it possible for Leon Trotsky to enter Russia with an American passport."

Consequently, by virtue of preferential treatment for Trotsky, when the S.S. Kristianiafjord left New York on March 26, 1917, Trotsky was aboard and holding a U.S. passport - and in company with other Trotskyire revolutionaries, Wall Street financiers, American Communists, and other interesting persons, few of whom had embarked for legitimate business. This mixed bag of passengers has been described by Lincoln Steffens, the American Communist:

The passenger list was long and mysterious. Trotsky was in the steerage with a group of revolutionaries; there was a Japanese revolutionist in my cabin. There were a lot of Dutch hurrying home from Java, the only innocent people aboard. The rest were war messengers, two from Wall Street to Germany....

Notably, Lincoln Steffens was on board en route to Russia at the specific invitation of Charles Richard Crane, a backer and a former chairman of the Democratic Partyís finance committee. Charles Crane, vice president of the Crane Company, had organized the Westinghouse Company in Russia, was a member of the Root mission to Russia, and had made no fewer than twenty-three visits to Russia between 1890 and 1930. Richard Crane, his son, was confidential assistant to then Secretary of State Robert Lansing. According to the former ambassador to Germany William Dodd, Crane "did much to bring on the Kerensky revolution which gave way to Communism."

And so Steffensí comments in his diary about conversations aboard the S.S. Kristianiafjord are highly pertinent:

" . . . all agree that the revolution is in its first phase only, that it must grow. Crane and Russian radicals on the ship think we shall be in Petrograd for the re-revolution."

Crane returned to the United States when the Bolshevik Revolution (that is, "the re-revolution") had been completed and, although a private citizen, was given firsthand reports of the progress of the Bolshevik Revolution as cables were received at the State Department. For example, one memorandum, dated December 11, 1917, is entitled "Copy of report on Maximalist uprising for Mr Crane." It originated with Maddin Summers, U.S. consul general in Moscow.

The unlikely and puzzling picture that emerges is that Charles Crane, a friend and backer of Woodrow Wilson and a prominent financier and politician, had a known role in the "first" revolution and traveled to Russia in mid-1917 in company with the American Communist Lincoln Steffens, who was in touch with both Woodrow Wilson and Trotsky. The latter in turn was carrying a passport issued at the orders of Wilson and $10,000 from supposed German sources. On his return to the U.S. after the "re-revolution," Crane was granted access to official documents concerning consolidation of the Bolshevik regime: This is a pattern of interlocking - if puzzling - events that warrants further investigation and suggests, though without at this point providing evidence, some link between the financier Crane and the revolutionary Trotsky.

Documents on Trotskyís brief stay in Canadian custody are now de-classified and available from the Canadian government archives. According to these archives, Trotsky was removed by Canadian and British naval personnel from the S.S. Kristianiafjord at Halifax, Nova Scotia, on April 3, 1917, listed as a German prisoner of war, and interned at the Amherst, Nova Scotia, internment station for German prisoners. Mrs. Trotsky, the two Trotsky boys, and five other men described as "Russian Socialists" were also taken off and interned. Their names are recorded by the Canadian files as:

  • Nickita Muchin,

  • Leiba Fisheleff,

  • Konstantin Romanchanco,

  • Gregor Teheodnovski,

  • Gerchon Melintchansky and

  • Leon Bronstein Trotsky (all spellings from original Canadian documents). [...]

The Trotsky party was removed from the S.S. Kristianiafjord under official instructions received by cablegram of March 29, 1917, London, presumably originating in the Admiralty with the naval control officer, Halifax. The cablegram reported that the Trotsky party was on the "Christianiafjord" (sic) and should be "taken off and retained pending instructions." The reason given to the naval control officer at Halifax was that "these are Russian Socialists leaving for purposes of starting revolution against present Russian government for which Trotsky is reported to have 10,000 dollars subscribed by Socialists and Germans."

On April 1, 1917, the naval control officer, Captain O. M. Makins, sent a confidential memorandum to the general officer commanding at Halifax, to the effect that he had "examined all Russian passengers" aboard the S.S. Kristianiafjord and found six men in the second-class section:

"They are all avowed Socialists, and though professing a desire to help the new Russian Govt., might well be in league with German Socialists in America, and quite likely to be a great hindrance to the Govt. in Russia just at present."

The next document in the Canadian files is dated April 7, from the chief of the General Staff, Ottawa, to the director of internment operations, and acknowledges a previous letter (not in the files) about the internment of Russian socialists at Amherst, Nova Scotia:

". . . in this connection, have to inform you of the receipt of a long telegram yesterday from the Russian Consul General, MONTREAL, protesting against the arrest of these men as they were in possession of passports issued by the Russian Consul General, NEW YORK, U.S.A."

The reply to this Montreal telegram was to the effect that the men were interned "on suspicion of being German," and would be released only upon definite proof of their nationality and loyalty to the Allies.

No telegrams from the Russian consul general in New York are in the Canadian files, and it is known that this office was reluctant to issue Russian passports to Russian political exiles. However, there is a telegram in the files from a New York attorney, N. Aleinikoff, to R. M. Coulter, then deputy postmaster general of Canada. The postmaster generalís office in Canada had no connection with either internment of prisoners of war or military activities. Accordingly, this telegram was in the nature of a personal, nonofficial intervention. It reads:

DR. R. M. COULTER, Postmaster Genl. OTTAWA
Russian political exiles returning to Russia detained Halifax interned Amherst camp. Kindly investigate and advise cause of the detention and names of all detained. Trust as champion of freedom you will intercede on their behalf. Please wire collect.
NICHOLAS ALEINIKOFF

On April 11, Coulter wired Aleinikoff,

"Telegram received. Writing you this afternoon. You should receive it tomorrow evening.

R. M. Coulter."

This telegram was sent by the Canadian Pacific Railway Telegraph but charged to the Canadian Post Office Department. Normally a private business telegram would be charged to the recipient and this was not official business.

The follow-up Coulter letter to Aleinikoff is interesting because, after confirming that the Trotsky party was held at Amherst, it states that they were suspected of propaganda against the present Russian government and "are supposed to be agents of Germany." Coulter then adds," . . . they are not what they represent themselves to be"; the Trotsky group is "...not detained by Canada, but by the Imperial authorities." After assuring Aleinikoff that the detainees would be made comfortable, Coulter adds that any information "in their favour" would be transmitted to the military authorities.

On April 11 Arthur Wolf of 134 East Broadway, New York, sent a telegram to Coulter. Though sent from New York, this telegram, after being acknowledged, was also charged to the Canadian Post Office Department.

Pay close attention to this: In the Trotsky affair, here we have two American residents corresponding with a Canadian deputy postmaster general in order to intervene in behalf of an interned Russian revolutionary, a Canadian or Imperial military matter of international importance. Coulterís subsequent action suggests something more than casual intervention.

After Coulter acknowledged the Aleinikoff and Wolf telegrams, he wrote to Major General Willoughby Gwatkin of the Department of Militia and Defense in Ottawa - a man of significant influence in the Canadian military - and attached copies of the Aleinikoff and Wolf telegrams. He wrote:

These men have been hostile to Russia because of the way the Jews have been treated, and are now strongly in favor of the present Administration, so far as I know. Both are responsible men. Both are reputable men, and I am sending their telegrams to you for what they may be worth, and so that you may represent them to the English authorities if you deem it wise.

Coulter intimates that he knows a great deal about Aleinikoff and Wolf. His letter was in effect a character reference, and aimed at the obvious source of the internment problem - London.

Gwatkin was well known in London, and in fact was on loan to Canada from the War Office in London.

Aleinikoff then sent a letter to Coulter to thank him,

"most heartily for the interest you have taken in the fate of the Russian Political Exiles .... You know me, esteemed Dr. Coulter, and you also know my devotion to the cause of Russian freedom .... Happily I know Mr. Trotsky, Mr. Melnichahnsky, and Mr. Chudnowsky . . . intimately."

It might be noted as an aside that if Aleinikoff knew Trotsky "intimately," then he would also probably be aware that Trotsky had declared his intention to return to Russia to overthrow the Provisional Government and institute the "re-revolution."

On receipt of Aleinikoffís letter, Coulter immediately (April 16) forwarded it to Major General Gwatkin, adding that he became acquainted with Aleinikoff,


"in connection with Departmental action on United States papers in the Russian language" and that Aleinikoff was working "on the same lines as Mr. Wolf . . . who was an escaped prisoner from Siberia."

Previously, on April 14, Gwatkin sent a memorandum to his naval counterpart on the Canadian Military Interdepartmental Committee repeating that the internees were Russian socialists with "10,000 dollars subscribed by socialists and Germans." The concluding paragraph stated: "On the other hand there are those who declare that an act of high-handed injustice has been done."

Then on April 16, Vice Admiral C. E. Kingsmill, director of the Naval Service, took Gwatkinís intervention at face value. In a letter to Captain Makins, the naval control officer at Halifax, he stated, "The Militia authorities request that a decision as to their (that is, the six Russians) disposal may be hastened." A copy of this instruction was relayed to Gwatkin who in turn informed Deputy Postmaster General Coulter.

Three days later Gwatkin applied pressure. In a memorandum of April 20 to the naval secretary, he wrote, "Can you say, please, whether or not the Naval Control Office has given a decision?"

On the same day (April 20) Captain Makins wrote Admiral Kingsmill explaining his reasons for removing Trotsky; he refused to be pressured into making a decision, stating, "I will cable to the Admiralty informing them that the Militia authorities are requesting an early decision as to their disposal."

However, the next day, April 21, Gwatkin wrote Coulter:

"Our friends the Russian socialists are to be released; and arrangements are being made for their passage to Europe."

The order to Makins for Trotskyís release originated in the Admiralty, London. Coulter acknowledged the information, "which will please our New York correspondents immensely."

We can conclude that Coulter and Gwatkin were intensely interested in the release of Trotsky, but we do not know why. There was little in the career of either Deputy Postmaster General Coulter or Major General Gwatkin that would explain an urge to release Leon Trotsky.

Dr. Robert Miller Coulter was a medical doctor of Scottish and Irish parents, a liberal, a Freemason, and an Odd Fellow. He was appointed deputy postmaster general of Canada in 1897. His sole claim to fame derived from being a delegate to the Universal Postal Union Convention in 1906 and a delegate to New Zealand and Australia in 1908 for the "All Red" project. All Red had nothing to do with Red revolutionaries; it was only a plan for all-red or all-British fast steamships between Great Britain, Canada, and Australia.

Major General Willoughby Gwatkin stemmed from a long British military tradition (Cambridge and then Staff College). A specialist in mobilization, he served in Canada from 1905 to 1918.

Given only the documents in the Canadian files, we can but conclude that their intervention in behalf of Trotsky is a mystery.

Lieutenant Colonel John Bayne MacLean, a prominent Canadian publisher and businessman, founder and president of MacLean Publishing Company, Toronto, with a long-time association with Canadian Army Intelligence, wrote for his own MacLeanís magazine, in 1918, an article entitled "Why Did We Let Trotsky Go? How Canada Lost an Opportunity to Shorten the War." The article contained detailed and unusual information about Leon Trotsky which provides two clues. Government records since released by Canada, Great Britain, and the United States confirm MacLeanís clues to a significant degree. MacLeanís opening argument is that

"some Canadian politicians or officials were chiefly responsible for the prolongation of the war [World War I], for the great loss of life, the wounds and sufferings of the winter of 1917 and the great drives of 1918." Further, "the man chiefly responsible for the defection of Russia was Trotsky... acting under German instructions."

Who was Trotsky? According to MacLean, Trotsky was not Russian, but German

Odd as this may seem it does coincide with other scraps of intelligence information: to wit, that Trotsky spoke better German than Russian, and that he was the Russian executive of the German "Black Bond."

According to MacLean, Trotsky in August 1914 had been "ostentatiously" expelled from Berlin; he finally arrived in the United States where he organized Russian revolutionaries, as well as revolutionaries in Western Canada, who "were largely Germans and Austrians traveling as Russians." MacLean continues: Originally the British found through Russian associates that Kerensky, Lenin and some lesser leaders were practically in German pay as early as 1915 and they uncovered in 1916 the connections with Trotsky then living in New York.

In the early part of 1916 a German official sailed for New York. British Intelligence officials accompanied him. He was held up at Halifax; but on their instruction he was passed on with profuse apologies for the necessary delay. After much manoeuvering he arrived in a dirty little newspaper office in the slums and there found Trotsky, to whom he bore important instructions. From June 1916, until they passed him on [to] the British, the N.Y. Bomb Squad never lost touch with Trotsky. They discovered that his real name was Braunstein and that he was a German, not a Russian.

Such German activity in neutral countries is confirmed in a State Department report (316-9-764-9) describing organization of Russian refugees for revolutionary purposes.

Continuing, MacLean states that Trotsky and four associates sailed on the "S.S. Christiania" (sic), and on April 3 reported to "Captain Making" (sic) and were taken off the ship at Halifax under the direction of Lieutenant Jones. (Actually a party of nine, including six men, were taken off the S.S. Kristianiafjord. The name of the naval control officer at Halifax was Captain O. M. Makins, R.N. The name of the officer who removed the Trotsky party from the ship is not in the Canadian government documents; Trotsky said it was "Machen.") Again, according to MacLean, Trotskyís money came "from German sources in New York."

MacLean states further that Trotsky was released "at the request of the British Embassy at Washington . . . [which] acted on the request of the U.S. State Department, who were acting for someone else."

The theme of MacLeanís report is that Trotsky had intimate relations with, and probably worked for, the German General Staff. While such relations have been established regarding Lenin - to the extent that Lenin was subsidized and his return to Russia facilitated by the Germans - it appears certain that Trotsky was similarly aided. The $10,000 Trotsky fund in New York was from German sources, and a recently declassified document in the U.S. State Department files reads as follows:

March 9, 1918 to: American Consul, Vladivostok from Polk, Acting Secretary of State, Washington D.C. For your confidential information and prompt attention: Following is substance of message of January twelfth from Von Schanz of German Imperial Bank to Trotsky, quote Consent imperial bank to appropriation from credit general staff of five million roubles for sending assistant chief naval commissioner Kudrisheff to Far East.

This message suggests some liaison between Trotsky and the Germans in January 1918, a time when Trotsky was proposing an alliance with the West. The State Department does not give the provenance of the telegram, only that it originated with the War College Staff. The State Department did treat the message as authentic and acted on the basis of assumed authenticity. It is consistent with the general theme of Colonel MacLeanís article.

Official documentation clearly demonstrates two faces to Trotsky: one for the public, and one in private. For example, the Division of Far Eastern Affairs in the U.S. State Department received on March 23, 1918, two reports stemming from Trotsky; one is inconsistent with the other. One report, dated March 20 and from Moscow, originated in the Russian newspaper Russkoe Slovo. The report cited an interview with Trotsky in which he stated:

"...any alliance with the United States was impossible: The Russia of the Soviet cannot align itself... with capitalistic America for this would be a betrayal It is possible that Americans seek such an rapprochement with us, driven by its antagonism towards Japan, but in any case there can be no question of an alliance by us of any nature with a bourgeoisie nation."

The other report, also originating in Moscow, is a message dated March 17, 1918, three days earlier, and from Ambassador Francis:

"Trotsky requests five American officers as inspectors of army being organized for defense also requests railroad operating men and equipment."

This private request to the U.S. is of course inconsistent with the public rejection of an "alliance."

So long as we see all international revolutionaries and all international capitalists as implacable enemies of one another, then we miss a crucial point - that there has indeed been some operational cooperation between international capitalists, including fascists. And there is no a priori reason why we should reject Trotsky as a part of this alliance.

First thereís Trotsky, a Russian internationalist revolutionary with German connections who sparks assistance from two supposed supporters of Prince Lvovís government in Russia (Aleinikoff and Wolf, Russians resident in New York). These two ignite the action of a liberal Canadian deputy postmaster general, who in turn intercedes with a prominent British Army major general on the Canadian military staff. These are all verifiable links.

In short, allegiances may not always be what they are called, or appear. We can, however, surmise that Trotsky, Aleinikoff, Wolf, Coulter, and Gwatkin in acting for a common limited objective also had some common higher goal than national allegiance or political label. This is the only a logical supposition from the facts. (WALL STREET AND THE BOLSHEVIK REVOLUTION By Antony C. Sutton. 2001, HTML version created in the United States of America by Studies in Reformed Theology)

Olof Aschberg and Nya Banken in Stockholm were central to Bolshevik funding.

With the entry of the United States into the war, Barnes and Gray, Hooverís helpers in the Belgian Relief Operation, were given important posts in the newly created U.S. Food Administration, which also was placed under Herbert Hooverís direction. Barnes became President of the Grain Corporation of the U.S. Food Administration from 1917 to 1918, and Gray was chief of Marine Transportation. Another J. Henry Schroder partner, G. A. Zabriskie, was named head of the U.S. Sugar Equalization Board.

Hoover chose Lewis Lichtenstein Strauss as his principal assistant in the U.S. Food Administration. Strauss was soon to become a partner in Kuhn Loeb Company, marrying the daughter of Jerome Hanauer of Kuhn Loeb. Throughout his service with the Belgian Relief Commission, the U.S. Food Administration, and, after the war, the American Relief Administration, Hooverís closest associate was one Edgar Rickard, born in Pontgibaud, France. After Hoover became Secretary of Commerce under Coolidge, Hamill tells us that Hoover awarded his friend the Hazeltine Radio patents, which paid him one million dollars a year in royalties.

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