The Federal Reserve System
Apparently there were constant battles for control of the republic between
the international bankers and presidents.
Controlling the central bank of a country seems
to be a crucial part of installing a dictatorship.
Allen wrote,
"From the earliest days, the Founding
Fathers had been conscious of attempts to control America through money
manipulation, and they carried on a running battle with the
international bankers."
"Essential to controlling a government is the establishment of a central
bank with a monopoly on the country's supply of money and credit," wrote
Perloff.
Meyer Rothschild is said to have remarked,
"Let me issue and control a nation's money,
and I care not who writes its laws."
Allen concurred,
"All those who have sought dictatorial
control over modern nations have understood the necessity of a central
bank. When the League of Just Men hired a hack revolutionary named Karl
Marx to write a blueprint for conquest called The Communist Manifesto,
the fifth plank read: "Centralization of credit in the hands of the
state... Lenin later said that the establishment of a central bank was
ninety percent of communizing a country."
Senator Barry Goldwater described an
international banker as one who makes money by extending credit to
governments. This is more beneficial to the banker than loaning to an
individual because governments borrow much more, and they can guarantee
repayment by burdening the people with taxes. Also, instead of debt payment,
a banker may receive political influence.
Perloff wrote,
"No turn of events is more lucrative for an
international banker than war - because nothing generates more
government borrowing faster."
"Whoever controls the volume of money in our
country is absolute master of all industry, and commerce... and when you
realize that the system is very easily controlled, one way or another,
by a few powerful men at the top, you will not have to be told how
periods of inflation, and depression originate."
-President James Garfield July 2,
1881
One attempt to gain control of the country by
way of a central bank was with the Bank of the United States (1816-36),
which was abolished by President Andrew Jackson. Jackson warned,
"The bold effort the present [Bank of the
United States] had made to control the government, the distress it had
wantonly produced... are but premonitions of the fate that awaits the
American people should they be deluded into a perpetuation of this
institution or the establishment of another like it."
Note the semantic deception used with the naming
of the bank, "Bank of the United States," as if to imply that it was part of
the government. This was not the last time this tactic was used.(*)
Senator Goldwater wrote, "In the early years of the Republic... Jefferson
opposed Alexander Hamilton's scheme for the First Bank of the United States,
and Andrew Jackson abolished Nicholas Biddle's Second Bank of the United
States." "America heeded Jackson's warning for the remainder of the
century," wrote Perloff. But the "tide began to turn... with the linking of
European and U.S. banking interest, and the growing in power of America's
money barons, such as J.P. Morgan, John D. Rockefeller, and Bernard Baruch."
A German banker named Paul Warburg migrated to the U.S. in 1902. He was an
associate of the Rothschilds and became a partner in Kuhn, Loeb, and
Company, which was headed by Jacob Schiff. The Schiffs also had ties to the
Rothschilds, which went back about a century. Warburg began to lecture
widely on the need for a central banking system.
Apparently the international bankers became impatient over the unwillingness
of congress to accept a central bank. So using the Problem-Reaction-Solution
formula, Wall Street deliberately created a panic to force congress to
create a central banking system controlled by private interests. This was
done to eliminate competition and to seize control of the country by way of
the Federal Reserve System.
Perloff wrote, "The Panic of 1907 was artificially triggered to elicit
public acceptance of this idea. Snowballing bank runs began after J.P.
Morgan spread a rumor about the insolvency of the Trust Company of America."
He added, "Tragedy is the mother of new directions. The Panic of 1907
spawned the Federal Reserve."
Allen described J. P. Morgan as "an old hand at creating artificial panics."
He stated, "Such affairs were well co-coordinated. Senator Robert Owen, a
co-author of the Federal Reserve Act, (who later deeply regretted his role),
testified before a Congressional Committee that the bank he owned received
from the National Bankers' Association what came to be know as the Panic
Circular of 1893. It established: 'You will at once retire one-third of your
circulation and call in one-half of your loans.'"
On April 25, 1949, Life Magazine ran an article entitled, Morgan The Great,
where historian Frederick Lewis Allen reported that "certain chroniclers
have arrived at the ingenious conclusion that the Morgan interests took
advantage of the unsettled conditions during the autumn of 1907 to
precipitate the panic, guiding it shrewdly as it progressed so that it would
kill off rival banks and consolidate the preeminence of the banks within the
Morgan orbit."
This deliberately created (problem) caused a predictable panic (reaction),
which forced congress to create a commission to investigate other banking
options, which resulted in the Federal Reserve (solution). In a
Congressional Record dated, December 22, 1913, vol. 51, Congressman Charles
Lindberg declared, "The Money Trust... caused the 1907 panic, and thereby
forced Congress to create a National Monetary Commission."
Federal Reserve BoardPerloff describes the Money Trust as, Wall Street
monopolists such as Rockefeller, Morgan, Warburg, and Schiff. Heading the
National Monetary Commission was Senator Nelson Aldrich, who was under the
control of the international bankers. "Aldrich was known as the
international bankers' mouthpiece on Capitol Hill," wrote Perloff. There was
apparently some bribery that took place too. Top left is Paul Warburg.
Bottom right is Frederic Delano.(**)
The commission spent about two years studying central banks in Europe, and
finally the "Federal Reserve became law in December 1913," declared Perloff.
The solution was drafted at Morgan's hunting club on Jekyl (sic) Island off
the coast of Georgia. "The Fed," stated Allen, "was drafted on Jekyl Island
in Georgia by Senator Nelson Aldrich; Henry P. Davison of J. P. Morgan and
Company; Frank A. Vanderlip, President of the Rockefeller-owned National
City Bank; A. Piatt Andrew, Assistant Secretary of the Treasury; Benjamin
Strong of Morgan's Bankers Trust Company; and [Rothschild representative]
Paul Warburg." Tucker added "The 'Fed,'... is allied with the Bilderberg
group, which is composed of the world's biggest moneychangers - led by the
Rockefellers and Rothschilds."
The naming of this bank was another tactic of semantic deception; there is
no reserve, and it's not federal. The Federal Reserve is privately owned, it
makes its own polices and is not subject to the president or congress. Many
of its members are from the CFR. "Probably 90% of the US citizens think that
the Federal Reserve System is one of the branches of the federal
government," Ross said, and added, "most think that it is part of the
Treasury Department... because of the term 'Federal' in its name." "This is
no accident," he proclaims, but a "psychological ploy to con the Americans
into accepting their deception. It is not 'Federal' and there is no
'Reserve.'"
Perloff added, "Indeed, the Fed is authorized to create money-and thus
inflate - at will. According to the constitution, only Congress may issue
money or regulate its value. The Federal Reserve Act, however, placed these
functions in the hands of private bankers - to their perpetual profit."
Senator Goldwater wrote, "The accounts of the Federal Reserve System have
never been audited. It operates outside of the control of Congress and
through its Board of Governors manipulates the credit of the United States."
Federal Reserve board members serve 14-year terms and are appointed by the
president. "Since these positions control the entire economy of the country
they are far more important than cabinet positions," said Allen. He
continued, "These appointments which should be extensively debated by the
Senate are routinely approved." The results he says are "ever-increasing
debt requiring ever-increasing interest payments, inflation and periodic
scientifically created depressions and recessions."
Also in 1913, the 16th amendment was passed which subjected citizens to a
federal tax. "Because income tax has been declared unconstitutional by the
Supreme Court in 1895, it had to be instituted by constitutional amendment,"
wrote Perloff. Again, Senator Nelson Aldrich who was handled by the
international bankers proposed the amendment. "The man who brought forward
the amendment in Congress was the same senator who proposed the plan for the
Federal Reserve - Nelson Aldrich," observed Perloff.
Apparently the American people agreed to this new tax because they believed
it would have a minimal impact on the middle class and would impede the
rich. "Initially, it was nominal," Perloff described, "a mere one percent of
income under $20,000 - a figure few made in those days." According to
Perloff the American people were assured it would never increase.
Another reason is that the public was deceived by clever propaganda that the
Federal Reserve would stabilize the economy and prevent future panics. "It
did nothing of the kind," declared Perloff. "Not only has our nation
suffered through the Great Depression and numerous recessions, but inflation
and federal debt-negligible problems before the Fed came into existence -
have plagued America ever since."
On June 10, 1932 Congressman Louis McFadden, a former chairman of the House
Committee on Banking and Currency warned, "When the Federal Reserve Act was
passed, the people of these United States did not perceive that a world
banking system was being set up here. A super-state controlled by
international bankers and international industrialists acting together to
enslave the world for their own pleasure. Every effort has been made by the
Fed to conceal its powers but the truth is - the Fed has usurped the
government."
Usurp
"1 to seize and hold (as office, place, or powers) in possession by force or
without right."
-Merriam-Webster's Dictionary
Congressman Lindberg informed the public in a Congressional Record dated
December 22, 1913, vol. 51, that "This [Federal Reserve] act establishes the
most gigantic trust on earth... When the President signs this act the
invisible government by the money power, proven to exist by the Money Trust
investigation, will be legalized..." He warned, "I have seen these forces
exerted during the different stages of this bill" and "The money power
overawes the legislative and executive forces of the Nation and of the
States."
"If the key to controlling a nation is to run its central bank," asked
Perloff, "one can imagine the potential of a global central bank, able to
dictate the world's credit and money supply. The roots for such a system
were planted when the International Monetary Fund (IMF) and World Bank were
formed at the Bretton Woods Conference of 1944. These UN agencies were both
CFR creations," he added.
Dr. Johannes Witteveen, former head of the IMF, said in 1975 that the agency
should become "the exclusive issuer of official international reserve
assets." In the fall 1984 issue of a CFR newsletter called, Foreign Affairs,
Richard N. Cooper laid out a modern plan for international currency. He
wrote, "I suggest a radical alterative scheme for the next century: the
creation of a common currency for all the industrial democracies, with a
common monetary policy and a joint bank of Issue to determine that monetary
policy."
In 1987 Senator Jesse Helms, stated,
"it is no secret that the international
bankers profiteer form sovereign state debt. The New York banks have
found important profit centers in lending to countries plunged into debt
by Socialist regimes. Under Socialist regimes, countries go deeper and
deeper into debt because Socialism as an economic system does not work.
International bankers are sophisticated enough to understand this
phenomenon and they are sophisticated enough to profit from it."
"Many historians would have us believe that this trio of events - the
income tax, the Federal Reserve, and the War - was a coincidence," wrote
Perloff.
"But too often history has been written by
authors financed by foundations, in books manufactured by Establishment
publishing houses." He observed, "Many more 'coincidences' were yet to
trouble the American people in this century."
Summary
Congressmen McFadden and Lindberg, both clearly state that the "legislative
and executive forces" had been "usurped" (taken over) by an "invisible
government" consisting of international "bankers" and "industrialists"
acting together to "enslave the world for their own pleasure."
What these researchers and statesmen are saying
is that the Federal Reserve is a privately owned corporation, which was
created using lies and deceit. It exists to control the nation, and to
eliminate competition using taxation, in order to prevent the middle class
from rising to affluence.
Footnotes
* A term commonly used by Charlotte Iserbyt
in her book, The Deliberate Dumbing-Down of America.
** Photo taken from the Shadows of Power, by James Perloff.
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