CHAPTER SIX
Monetary Manipulation
When the Rothschilds obtained control of the Bank of England, following Nathan’s spectacular financial “killing” in 1815, he and his associates insisted that Gold be made the only base for the issuance of paper money. In 1870 the European Bankers experienced a little annoyance in their control system due to the fact that in America a considerable amount of silver coin was used.
The European Bankers decided that silver must be demonetized in the United States. At that time England had much gold and very little silver : America had much silver and very little gold.[1] The bankers on both sides of the Atlantic knew that while this difference continued they could not obtain absolute control of the economy of the nation and absolute control is essential for the success of big scale manipulation.
The European International Bankers sent Ernest Seyd over to America and placed at his disposal in American banks $500,000 with which to bribe key members of the American legislature. In 1873, at the instigation of the bankers, their agents introduced a “Bill”, innocently named “A Bill to reform Coinage and Mint Laws”. It was cleverly drafted. Many pages of writing concealed the real purpose behind the Bill. The Bill was sponsored by none other than Senator John Sherman, whose letter to the House of Rothschild has already been referred to.
Sherman was supported by Congressman Samuel Hooper. After Senator Sherman gave a very plausible, but misleading, report regarding the purpose of the Bill, it was passed without a dissenting vote. Three years passed before the full import of the Bill began to be realized. It was a camouflaged Bill to demonetize silver. President Grant signed the Bill without reading the contents after he had been assured it was just a routine matter necessary to make some desirable reforms in the coinage and monetary laws. According to the Congressional Record none but the members of the Committee which introduced the Bill understood its meaning.
The International Bankers considered the passage of the Bill so essential to their plans, to obtain absolute control of the monetary system of the United States, that Ernest Seyd was instructed to represent himself as an expert on coining of money. After organizing the formation of a committee favourable to his master’s objectives, he sat in with the committee, in a professional advisory, capacity, and helped draft the Bill in accordance with the Rothschilds’ instructions.
Congressman Samuel Hooper introduced the Bill in the House on April 9th, 1872. He is recorded as saying : “Mr. Ernest Seyd, of London, a distinguished writer, has given great attention to the subject of mints and coinage. After examining the first draft of the Bill, he furnished many valuable suggestions which have been incorporated in the Bill.” Mr. John R. Elsom in his book Lightning over the Treasury Building on page 49 declares : According to his (Seyd’s) own statement, made to his friend Mr. Frederick A. Lukenback, of Denver, Colorado, who has, under oath, given us the story, he (Seyd) said “I saw the Committee of the House and Senate and paid the money, and stayed in America until I knew the measure was safe”.
In 1878 a further withdrawal of currency, and restricting of credits, caused 10,478 business and banking failures in the United States. In 1879 the issuance of more coin at the insistence of Congress halted the artificially created recession and reduced business failures to 6,658. But in 1882 the “Secret Power” behind International affairs issued orders that there was to be no more pussy-footing. They reminded their banking associates in the States that sentiment has no place in business. These admonishments produced results as spectacular as they were drastic. Between 1882 and 1887 the per capita money in circulation in the United States was reduced to $6.67. This action increased the total business failures from 1878 to 1892, to 148,703, while proportionate foreclosures were made on farms and private dwellings. Only the bankers and their agents, who made the loans and took foreclosure proceedings, benefited.
It would appear that the International bankers were deliberately creating conditions of poverty, and despair, in the United States in order to produce conditions which would enable their instrument the Word Revolutionary Party to recruit revolutionary forces. This accusation is supported by a letter issued to all American Bankers, by the American Bankers Association. It has been proved that this association was intimately affiliated with Rothschild’s European Monopoly, if not actually controlled by the House of Rothschild, at that time. The letter reads :
March 11, 1893.
Dear Sir :
The interests of the National Banks require immediate financial legislation by Congress. Silver certificates, and Treasury notes, must be retired, and national bank notes, upon a gold basis, made the only money. This will require the authorization of new bonds in the amount of $500,000,000 to $1,000,000,000 as the basis of circulation. You will at once retire one-third of your circulation and will call one-half of your loans. Be careful to create a money stringency among your patrons, especially among influential business men. The life of the National Banks, as fixed and safe investments, depends upon immediate action as there is an increasing sentiment in favour of government legal tender and silver coinage.
This command was obeyed immediately and the panic of 1893 was created. William Jennings Bryan tried to counteract the bankers’ conspiracy, but once again the public believed the false accusations circulated in the Press by the bankers’ propagandists. The man in the street blamed the government. The average citizen never even suspected the part the bankers had played in creating chaos in order to feather their own nests. William Jennings Bryan was unable to do anything constructive. His voice, like the voices of many other honest and loyal citizens, was a voice crying in the wilderness.
In 1899 J.P. Morgan, and Anthony Drexel, went to England to attend the International Bankers’ Convention. When they returned, J.P. Morgan had been appointed head representative for the Rothschild’s interests in the United States. He was probably chosen as Top-man because of the ingenuity he had shown when he made a fortune selling his government Union Army rifles which had already been condemned.[2]
As the result of the London Conference J.P. Morgan & Co. of New York, Drexel & Co. of Philadelphia, Grenfell & Co. of London, Morgan Harjes & Co. of Paris, M.M. Warburgs of Germany & Amsterdam and the House of Rothschild were all affiliated.
The Morgan-Drexel combination organized the Northern Securities Corporation in 1901 for the purpose of putting the Heinze-Morse group out of business. The Heinze-Morse controlled considerable banking, shipping, steel and other industries. They had to be put out of business so the Morgan-Drexel combination could control the forthcoming Federal election.
The Morgan-Drexel combination succeeded in putting in Theodore Roosevelt in 1901. This delayed the prosecution which had been started against them by the Justice Department because of the alleged illegal methods used to rid themselves of competition. Morgan-Drexel then affiliated with Kuhn-Loeb & Co. To test their combined strength it was decided to stage another financial “killing”. They created “The Wall Street Panic of 1907”. The public reaction to such methods of legalized gangsterism was sufficient to make the Government take action, but the evidence which follows clearly proves how the public was betrayed.
The Government appointed a National Monetary Commission. Senator Nelson Aldrich was appointed head of the commission. He was charged with the duty of making a thorough study of financial practices, and then formulating banking and currency reforms by submitting the necessary legislation to Congress. Aldrich, it was discovered afterwards, was financially interested with the powerful Rubber and Tobacco Trusts. He was just about the last man in the Senate who should have been entrusted with such a task. Immediately after his appointment Aldrich picked a small group of trusted lieutenants and they all departed for Europe.
While in Europe they were given every facility to study the way the international bankers controlled the economy of European countries. After Aldrich had spent two years, and over $300,000 of the American tax-payers’ money in Europe, lie returned to the U.S.A. All the public received for their money was to be told by Aldrich that he hadn’t been able to arrive at any definite plan which would prevent recurring financial panics which had upset business, created unemployment, and destroyed many small fortunes in the U.S.A. since the Civil War. Aldrich was so close to the Rockefellers that J.D. Jr. married his daughter Abby.
Prior to the tour of Europe Aldrich had been advised to consult Paul Warburg. This Paul Moritz Warburg was a unique character. He had arrived in the U.S.A. as a German immigrant about 1902. It turned out afterwards that he was a member of the European Financial House of M.M. Warburg & Co. of Hamburg and Amsterdam. This company was as we have seen, with the House of Rothschild. Paul Warburg had studied International finance in Germany, France, Great Britain, Holland and other countries before entering America as an immigrant. The U.S.A. proved to be his land of golden opportunity because, in no time at all, he purchased a partnership in Kuhn-Loeb & Co. of New York. He was voted a salary of $500,000 a year. One of his new partners was Jacob Schiff who had previously purchased into the firm with Rothschild gold. This Jacob Schiff is the man evidence will prove financed the Terrorist Movement in Russia from 1883, onwards to 1917.
Schiff hadn’t done too badly for himself, and his backers. He had managed to achieve undisputed control over the transportation, the communication systems, and the supply lines in the United States. As has been proved, control of these is absolutely essential for successful revolutionary effort in any country.[3]
On the night of November 22nd, 1910 a private railway coach was waiting at the Hoboken, New Jersey, Railway Station. Senator Aldrich arrived with A. Piatt Andrews, a professional economist and treasury official, who had been wined and dined in Europe. Shelton, Aldrich’s private secretary, also turned up. He was followed by Frank Vanderlip, president of the National City Bank of New York; this Bank represented the Rockefeller Oil Interests and the Kuhn-Loeb railway interests. The directors of the National City Bank had been publicly charged with helping to foment a war between the U.S.A. and Spain in 1898. Regardless of the truth or otherwise, of the charges, the fact remains that the National City Bank owned and controlled Cuba’s sugar industry when the war ended.
Others who joined Aldrich were H.P. Davison, senior partner of J.P. Morgan & Co., Charles D. Norton, president of Morgan’s First National Bank of New York. These last three had been accused in the American legislature of controlling the entire money and credit of the U.S.A. Last to arrive were Paul Warburg and Benjamin Strong. Warburg was so wealthy and powerful by this time that he is said to have inspired the famous comic strip (“Orphan Annie”) in which Warbucks is featured as the most wealthy and influential man in the world; a man who can, when he so wishes, use superhuman or supernatural powers to protect himself and his interests. Benjamin Strong came into prominence during the preliminary manipulations of high finance which led to the Wall Street Panic of 1907. As one of J.P. Morgan’s lieutenants he had earned a reputation for carrying out orders without question and with ruthless efficiency.
Aldrich’s private coach was attached to the train. Newspaper reporters learned of this gathering of the men who controlled America’s oil, finances, communications, transportations and heavy industries. They began to swarm down upon the private car like locusts ... But they couldn’t get anyone to speak. Mr. Vanderlip finally brushed off the reporters’ demands for information with the explanation “We are going away for a quiet week-end”.
It took years to discover what happened that quiet week-end. A secret meeting was held on Jekyl Island, Georgia. This hide-away was owned by J.P. Morgan, and a small group of his financial affiliates. The business discussed at the meeting referred to was “Ways and means to ensure that proposed legislation to curb financial racketeering and monetary manipulation in the U.S.A. be sabotaged and legislation favorable to those attending the secret meeting be substituted.” To achieve these two important objectives was no easy task. Mr. Paul Warburg was asked to suggest solutions. His advice was accepted.
Subsequent meetings were held by the same group to iron out details in New York. The conspirators named their group the First Name Club because, when meeting together, they always addressed each other by their first names to guard against strangers becoming interested should they hear the surnames of national and international financiers being spoken. To make a long story short, Aldrich, Warburg and Company, drew up the monetary legislation which Aldrich ultimately presented as the work of his special committee. He had it passed by Congress in 1913 under the title “The Federal Reserve Act of 1913”. The vast majority of American citizens honestly believed that this act protected their interests, and placed the Federal Government in control of the nation’s economy.
Nothing is further from the truth. The Federal Reserve System placed the affiliated bankers in America and Europe in position to bring about and control World War One. This statement will be proved. World War One was fought to enable the International Conspirators to bring about the Russian Revolution in 1917.
These facts illustrate how history does repeat itself and why. By means of similar plots, and intrigue, the International Bankers had brought about the English Revolution in 1640-1649; and the Great French Revolution of 1789.[4]
In 1914 the Federal Reserve System consisted of twelve banks which had bought $134,000,000 worth of Federal Reserve Stock. According to Congressional Record of May 29th, 1939; 8896, they had made a profit of $23,141,456,197. In 1940 the assets of the Federal Reserve were shown as five billion dollars. In 1946 they were declared to be forty five billion dollars. The bankers made forty billion dollars profit out of their transactions in World War Two.
The majority of citizens in the United States believe that the Federal Reserve System benefits the people of the Nation as a whole. They think the Federal Reserve System protects the depositors’ money by making bank failures an impossibility. They think that profits made by the Federal Reserve Banks benefit the National Treasury. They are wrong on all suppositions.
What the majority of the people think is exactly what the Federal Reserve System was originally intended to accomplish, but the legislation drawn up on Jekyl Island, Georgia in 1910, and passed by the American Congress in 1913, did not benefit the people or the government of the U.S.A. It benefited only the American Bankers, who were interlocked with the International Bankers of Europe.
The President of the United States nominates four of the men who are charged with the responsibility of operating the Federal Reserve System. They are paid $15,000 a year for their services. Congressional records will prove that the member banks shared illegally the profits made right from its inception. It wasn’t until 1922 that the original Act was amended so the bankers could take the profits legally.
Regarding the delusion that the Federal Reserve System protects people who deposit their money for safe-keeping in American Banks against possible bank failures, statistics show that since the Federal Reserve System came into operation in 1913 over 14,000 banks have failed. Millions upon millions of the depositors’ hard earned money were lost to the rightful owners. As money or wealth, generally speaking, is indestructible somebody got what the others lost. That is what we term “Smart Business” to-day.
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1 It was to aggravate this situation that agents of the International Conspirators in America organized the gangs of stage-coach and train-robbers to intercept shipments of gold being sent from various mines to the U.S. Treasury during this period. This connection between international Bankers and the Underworld will be proved to exist even today.
2 Gustavus Myers deals with J.P. Morgan’s and his father’s connections with the House of Rothschild in much greater detail and all Americans who wish to stop history repeating itself should read how they were sold down the river in the middle of last century. It is explained in another Chapter how the International Bankers met in one section of London and planned policy while the revolutionary leaders met in another and worked out the details of intrigue which would put the wars and revolutions planned by the master-minds into effect.
3 Investigations in several countries already subjugated prove that the Financial Tycoons who owned and controlled the transportation systems on land and sea, and affiliated industries deliberately brought about conditions which led to general strikes immediately prior to the date set for a revolutionary effort to take place. It must be obvious that these international Tycoons cannot form dictatorships as they did in Russia until existing governments and institutions have been overthrown. This book proves how this purpose was achieved in Russia.
4 For full details of the Federal Reserve. Conspiracy read the book of that title written by Eustace Mullins and published by Common Sense, Union, New-Jersey. 1954.