CHAPTER FIVE
The House of Rothschild
The success of the Federal Reserve Conspiracy will raise many questions in
the minds of readers who are unfamiliar with the history of the United States
and finance capital. How could the Kuhn, Loeb-Morgan alliance, powerful
though it might be, believe that it would be capable, first, of devising a plan
which would bring the entire money and credit of the people of the United
States into their hands, and second, of getting such a plan enacted into law?
The capability of devising and enacting the "National Reserve Plan", as the
immediate result of the Jekyll Island expedition was called, was easily within
the powers of the Kuhn, Loeb-Morgan alliance, according to the following
from McClure's Magazine, August 1911, "The Seven Men" by John Moody:
"Seven men in Wall Street now control a great share of the fundamental
industry and resources
of the United States. Three of the seven men, J.P. Morgan, James J. Hill, and
George F. Baker,
head of the First National Bank of New York belong to the so-called Morgan
group; four of them,
John D. and William Rockefeller, James Stillman, head of the National City
Bank, and Jacob H.
Schiff of the private banking firm of Kuhn, Loeb Company, to
the so-called Standard Oil City Bank group... the central
machine of capital extends its control over the United States...
The
process is not only economically logical; it is now practically
automatic."32
Thus we see that the 1910 plot to seize control of the money and credit of the
people of the United States was planned by men who already controlled most
of the country's resources. It seemed to John Moody "practically automatic"
that they should continue with their operations.
What John Moody did not know, or did not tell his readers, was that the
most powerful men in the United States were themselves answerable to
another power, a foreign power, and a power which had been steadfastly
seeking to extend its control over the young republic of the United States
since its very inception. This power was the financial power of England,
centered in the London Branch of the House of Rothschild. The fact was that
in 1910, the United States was for all practical purposes being ruled
63
32 John Moody, "The Seven Men", McClure's Magazine, August, 1911, p.
418
from England, and so it is today. 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.
Although these firms are ostensibly American firms, which merely maintain
branches in London, the fact is that these banking houses actually take their
direction from London. Their history is a fascinating one, and unknown to
the American public, originating as it did in the international traffic in gold,
slaves, diamonds, and other contraband. There are no moral considerations
in any business decision made by these firms. They are interested solely in
money and power.
Tourists today gape at the magnificent mansions of the very rich in Newport,
Rhode Island, without realizing that not only do these "cottages" stand as a
memorial to the baronial desires of our Victorian millionaires, but that their
erection in Newport represented a nostalgic memorialization of the great
American fortunes, which had their beginnings in Newport when it was the
capital of the slave trade.
The slave trade for centuries had its headquarters in Venice, until
Seventeenth Century Britain, the new master of the seas, used its control of
the oceans to gain a monopoly. As the American colonies were settled, its
fiercely independent people, most of whom did not want slaves, found to
their surprise that slaves were being sent to our ports in great numbers.
For many years, Newport was the capital of this unsavory trade. William
Ellery, the Collector of the Port of Newport, said in 1791:
"...an Ethiopian eld as soon change his skin as a Newport merchant eld be
induced to change so
lucrative a trade.... for the slow profits of any manufactory."
John Quincy Adams remarked in his Diary, page 459, "Newport's former
prosperity was chiefly owing to its extensive employment in the African slave
trade."
64
The pre-eminence of J.P. Morgan and the Brown firm in American finance can be
dated to the development of Baltimore as the nineteenth century capital of
the slave trade. Both of these firms originated in Baltimore, opened branches
in London, came under the aegis of the House of Rothschild, and returned to
the United States to open branches in New York and to become the dominant
power, not only in finance, but also in government. In recent years, key posts
such as Secretary of Defense have been held by Robert Lovett, partner of
Brown Brothers Harriman, and Thomas S. Gates, partner of Drexel and
Company, a J.P. Morgan sub-
sidiary firm. The present Vice President, George Bush, is the son of Prescott
Bush, a partner of Brown Brothers Harriman, for many years the senator
from Connecticut, and the financial organizer of Columbia Broadcasting
System of which he also was a director for many years.
To understand why these firms operate as they do, it is necessary to give a
brief history of their origins. Few Americans know that J.P. Morgan
Company began as George Peabody and Company. George Peabody (1795-
1869), born at South Danvers, Massachusetts, began business in Georgetown,
D.C. in 1814 as Peabody, Riggs and Company, dealing in wholesale dry
goods, and in operating the Georgetown Slave Market. In 1815, to be closer
to their source of supply, they moved to Baltimore, where they operated as
Peabody and Riggs, from 1815 to 1835. Peabody found himself increasingly
involved with business originating from London, and in 1835, he established
the firm of George Peabody and Company in London. He had excellent
entree in London business through another Baltimore firm established in
Liverpool, the Brown Brothers. Alexander Brown came to Baltimore in 1801,
and established what is now known as the oldest banking house in the United
States, still operating as Brown Brothers Harriman of New York; Brown,
Shipley and Company of England; and Alex Brown and Son of Baltimore.
The behind the scenes power wielded by this firm is indicated by the fact that
Sir Montagu Norman, Governor of the Bank of England for many years, was
a partner of Brown, Shipley and Company.* Considered the single most
influential banker in the world, Sir Montagu Norman was organizer of
"informal talks" between heads of central banks in 1927, which led directly
to the Great Stockmarket Crash of 1929.
Soon after he arrived in London, George Peabody was surprised to be
summoned to an audience with the gruff Baron Nathan Mayer Rothschild.
Without mincing words, Rothschild revealed to Peabody, that much of the
London aristocracy openly disliked Rothschild and refused his invitations.
He proposed that Peabody, a man of modest means, be established as a lavish
host whose entertainments would soon be the talk of London. Rothschild
would, of course, pay all the bills. Peabody accepted the offer, and soon
became known as the most popular host in London. His annual Fourth of
July dinner, celebrating American Independence, became extremely popular
65
with the English aristocracy, many of whom, while drinking Peabody's wine,
regaled each other with jokes about Rothschild's crudities and bad manners,
without realizing that every drop they drank had been paid for by
Rothschild.
* "There is an informal understanding that a director of Brown, Shipley
should be on the Board of the Bank of England, and Norman was elected to it
in 1907." Montagu Norman, Current Biography, 1940.
It is hardly surprising that the most popular host in London would also
become a very successful businessman, particularly with the House of
Rothschild supporting him behind the scenes. Peabody often operated with a
capital of 500,000 pounds on hand, and became very astute in his buying and
selling on both sides of the Atlantic. His American agent was the Boston firm
of Beebe, Morgan and Company, headed by Junius S. Morgan, father of
John Pierpont Morgan. Peabody, who never married, had no one to succeed
him, and he was very favorably impressed by the tall, handsome Junius
Morgan. He persuaded Morgan to join him in London as a partner in
George Peabody and Company in 1854. In 1860, John Pierpont Morgan had
been taken on as an apprentice by the firm of Duncan, Sherman in New
York. He was not very attentive to business, and in 1864, Morgan's father
was outraged when Duncan, Sherman refused to make his son a partner. He
promptly extended an arrangement whereby one of the chief employees of
Duncan, Sherman, Charles H. Dabney, was persuaded to join John Pierpont
Morgan in a new firm, Dabney, Morgan and Company. Bankers Magazine,
December, 1864, noted that Peabody had withdrawn his account from
Duncan, Sherman, and that other firms were expected to do so. The Peabody
account, of course, went to Dabney, Morgan Company.
John Pierpont Morgan was born in 1837, during the first money panic in the
United States. Significantly, it had been caused by the House of Rothschild,
with whom Morgan was later to become associated.
In 1836, President Andrew Jackson, infuriated by the tactics of the bankers
who were attempting to persuade him to renew the charter of the Second
Bank of the United States, said, "You are a den of vipers. I intend to rout you
out and by the Eternal God I will rout you out. If the people only understood
the rank injustice of our money and banking system, there would be a
revolution before morning."
Although Nicholas Biddle was President of the Bank of the United States, it
was well known that Baron James de Rothschild of Paris was the principal
investor in this central bank. Although Jackson had vetoed the renewal of the
charter of the Bank of the United States, he probably was unaware that a few
months earlier, in 1835, the House of Rothschild had cemented a relationship
66
with the United States Government by superseding the firm of Baring as financial
agent of the Department of State on January 1, 1835.
Henry Clews, the famous banker, in his book, Twenty-eight Years in Wall
Street33, states that the Panic of 1837 was engineered because the charter of
the Second Bank of the United States had run out in 1836. Not only did
President Jackson promptly withdraw government funds
33 Henry Clews, Twenty-eight Years in Wall Street, Irving Company, New
York, 1888, page 157
from the Second Bank of the United States, but he deposited these funds, $10
million, in state banks. The immediate result, Clews tells us, is that the
country began to enjoy great prosperity. This sudden flow of cash caused an
immediate expansion of the national economy, and the government paid off
the entire national debt, leaving a surplus of $50 million in the Treasury.
The European financiers had the answer to this situation. Clews further
states, "The Panic of 1837 was aggravated by the Bank of England when it in
one day threw out all the paper connected with the United States."
The Bank of England, of course, was synonymous with the name of Baron
Nathan Mayer Rothschild. Why did the Bank of England in one day "throw
out" all paper connected with the United States, that is, refuse to accept or
discount any securities, bonds or other financial paper based in the United
States? The purpose of this action was to create an immediate financial panic
in the United States, cause a complete contraction of credit, halt further
issues of stocks and bonds, and ruin those seeking to turn United States
securities into cash. In this atmosphere of financial panic, John Pierpont
Morgan came into the world. His grandmother, Joseph Morgan, was a well
to do farmer who owned 106 acres in Hartford, Connecticut. He later opened
the City Hotel, and the Exchange Coffee Shop, and in 1819, was one of the
founders of the Aetna Insurance Company.
George Peabody found that he had chosen well in selecting Junius S. Morgan
as his successor. Morgan agreed to continue the sub rosa relationship with
N.M. Rothschild Company, and soon expanded the firm's activities by
shipping large quantities of railroad iron to the United States. It was
Peabody iron which was the foundation for much of American railroad
tracks from 1860 to 1890. In 1864, content to retire and leave his firm in the
hands of Morgan, Peabody allowed the name to be changed to Junius S.
Morgan Company. The Morgan firm then and since has always been
directed from London. John Pierpont Morgan spent much of his time at his
magnificent London mansion, Prince's Gate.
67
One of the high water marks of the successful Rothschild-Peabody Morgan
business venture was the Panic of 1857. It had been twenty years since the
Panic of 1837: its lessons had been forgotten by hordes of eager investors
who were anxious to invest the profits of a developing America. It was time
to fleece them again. The stock market operates like a wave washing up on
the beach. It sweeps with it many minuscule creatures who derive all of their
life support from the oxygen and water of the wave. They coast along at the
crest of the "Tide of Prosperity". Suddenly the wave, having reached the
high water mark on the beach, recedes, leaving all of the creatures gasping
on the sand. Another wave may come in time to
save them, but in all likelihood it will not come as far, and some of the sea
creatures are doomed. In the same manner, waves of prosperity, fed by
newly created money, through an artificial contraction of credit, recedes,
leaving those it had borne high to gasp and die without hope of salvation.
Corsair, the Life of J.P. Morgan,34 tells us that the Panic of 1857 was caused
by the collapse of the grain market and by the sudden collapse of Ohio Life
and Trust, for a loss of five million dollars. With this collapse nine hundred
other American companies failed. Significantly, one not only survived, but
prospered from the crash. In Corsair, we learn that the Bank of England lent
George Peabody and Company five million pounds during the panic of 1857.
Winkler, in Morgan the Magnificent35 says that the Bank of England
advanced Peabody one million pounds, an enormous sum at that time, and
the equivalent of one hundred million dollars today, to save the firm.
However, no other firm received such beneficence during this Panic. The
reason is revealed by Matthew Josephson, in The Robber Barons. He says on
page 60:
"For such qualities of conservatism and purity, George Peabody and
Company, the old tree out of
which the House of Morgan grew, was famous. In the panic of 1857, when
depreciated securities
had been thrown on the market by distressed investors in America, Peabody
and the elder
Morgan, being in possession of cash, had purchased such bonds as possessed
real value freely,
and then resold them at a large advance when sanity was restored. "36
Thus, from a number of biographies of Morgan, the story can be pieced
together. After the panic had been engineered, one firm came into the market
with one million pounds in cash, purchased securities from distressed
investors at panic prices, and later resold them at an enormous profit. That
firm was the Morgan firm, and behind it was the clever maneuvering of
68
Baron Nathan Mayer Rothschild. The association remained secret from the most
knowledgeable financial minds in London and New York, although Morgan
occasionally appeared as the financial agent in a Rothschild operation. As the
Morgan firm grew rapidly during the late nineteenth century, until it
dominated the finances of the nation, many observers were puzzled that the
Rothschilds seemed so little interested in profiting by investing in the rapidly
advancing American economy. John Moody notes, in The Masters of Capital,
page 27, "The Rothschilds were content to remain a close ally of Morgan... as
far as the American field was concerned.'37 Secrecy was more profitable
than valor.
34 Corsair, The Life of Morgan
35 John K. Winkler, Morgan the Magnificent, Vanguard, N.Y. 1930
36 Matthew Josephson, The Robber Barons, Harcourt Brace, N.Y. 1934
37 John Moody, The Masters of Capital
The reason that the European Rothschilds preferred to operate anonymously
in the United States behind the facade of J.P. Morgan and Company is
explained by George Wheeler, in Pierpont Morgan and Friends, the
Anatomy of a Myth, page 17:
"But there were steps being taken even now to bring him out of the financial
backwaters—and
they were not being taken by Pierpont Morgan himself. The first suggestion
of his name for a role
in the recharging of the reserve originated with the London branch of the
House of Rothschild,
Belmont's employers."38
Wheeler goes on to explain that a considerable anti-Rothschild movement
had developed in Europe and the United States which focused on the banking
activities of the Rothschild family. Even though they had a registered agent
in the United States, August Schoenberg, who had changed his name to
Belmont when he came to the United States as the representative of the
Rothschilds in 1837, it was extremely advantageous to them to have an
American representative who was not known as a Rothschild agent.
Although the London house of Junius S. Morgan and Company continued to
be the dominant branch of the Morgan enterprises, with the death of the
senior Morgan in 1890 in a carriage accident on the Riviera, John Pierpont
Morgan became the head of the firm. After operating as the American
69
representative of the London firm from 1864-1871 as Dabney Morgan Company,
Morgan took on a new partner in 1871, Anthony Drexel of Philadelphia and
operated as Drexel Morgan and Company until 1895. Drexel died in that
year, and Morgan changed the name of the American branch to J.P. Morgan
and Company.
LaRouche39 tells us that on February 5, 1891, a secret association known as
the Round Table Group was formed in London by Cecil Rhodes, his banker,
Lord Rothschild, the Rothschild in-law, Lord Rosebery, and Lord Curzon.
He states that in the United States the Round Table was represented by the
Morgan group. Dr. Carrol Quigley refers to this group as "The British-
American Secret Society" in Tragedy and Hope, stating that "The chief
backbone of this organization grew up along the already existing financial
cooperation running from the Morgan Bank in New York to a group of
international financiers in London led by Lazard Brothers (in 1901)."40
William Guy Carr, in Pawns In The Game states that, "In 1899, J.P. Morgan
and Drexel went to England to attend the International Bankers
38 George Wheeler, Pierpont Morgan and Friends, the Anatomy of a Myth,
Prentice Hall, N.J. 1973
39 Lyndon H. LaRouche, Jr., Dope, Inc., The New Benjamin Franklin House
Publishing Company, N.Y. 1978
40 Dr. Carrol Quigley, Tragedy and Hope, Macmillan Co., N.Y.
Convention. When they returned, J.P. Morgan had been appointed head
representative of the Rothschild interests in the United States. As the result
of the London Conference, J.P. Morgan and Company of New York, Drexel
and Company of Philadelphia, Grenfell and Company of London, and
Morgan Harjes Cie of Paris, M.M. Warburg Company of Germany and
America, and the House of Rothschild were all affiliated."41
Apparently unaware of the Peabody connection with the Rothschilds and the
fact that the Morgans had always been affiliated with the House of
Rothschild, Carr supposed that he had uncovered this relationship as of
1899, when in fact it went back to 1835.*
After World War I, the Round Table became known as the Council on
Foreign Relations in the United States, and the Royal Institute of
International Affairs in London. The leading government officials of both
England and the United States were chosen from its members. In the 1960s,
as growing attention centered on the surreptitious governmental activities of
the Council on Foreign Relations, subsidiary groups, known as the Trilateral
Commission and the Bilderbergers, representing the identical financial
70
interests, began operations, with the more important officials, such as Robert
Roosa, being members of all three groups.
41 William Guy Carr, Pawns In The Game, privately printed, 1956, pg. 60
* July 30, 1930 McFadden Basis of Control of Economic Conditions. This
control of the world business structure and of human happiness and progress
by a small group is a matter of the most intense public interest. In analyzing
it, we must begin with the internal group which centers itself around J.P.
Morgan Company. Never before had there been such a powerful centralized
control over finance, industrial production, credit and wages as is at this time
vested in the Morgan group... The Morgan control of the Federal Reserve
System is exercised through control of the management of the Federal
Reserve Bank of New York.
George F. Peabody History of the Great American Fortunes, Gustavus
Myers, Mod. Lib. 537, notes that J.P. Morgan's father, Junius S. Morgan,
had become a partner of George Peabody in the banking business. "When
the Civil War came on, George Peabody and Company were appointed the
financial representatives in England of the U.S. Government.... with this
appointment their wealth suddenly began to pile up; where hitherto they had
amassed the riches by stages not remarkably rapid, they now added many
millions within a very few years." According to writers of the day, the
methods of George Peabody & Company were not only unreasonable but
double treason, in that, while in the act of giving inside aid to the enemy,
George Peabody & Company were the potentiaries of the U.S. Government
and were being well paid to advance its interests. "Springfield Republic",
1866: "For all who know anything on the subject know very well that
Peabody and his partners gave us no faith and no help in our struggle for
national existence. They participated to the fullest in the common English
distrust of our cause and our success, and talked and acted for the South
rather than for our nation. No individuals contributed so much to flooding
our money markets and weakening financial confidence in our nationality
than George Peabody & Company, and none made more money by the
operation. All the money that Mr. Peabody is giving away so lavishly among
our institutions of learning was gained by the speculations of his house in our
misfortunes." Also, New York Times, Oct. 31, 1866: Reconstruction
Carpetbaggers Money Fund. Lightning over the Treasury Building, John
Elson, Meador Publishing Co., Boston 41, pg. 53, "The Bank of England with
its subsidiary banks in America (under the domination of J.P. Morgan) the
Bank of France, and the Reichsbank of Germany, composed an interlocking
and cooperative banking system, the main objective of which was the
exploitation of the people."
71
According to William Guy Carr, in Pawns In The Game,42 the initial meeting of
these ex officio planners took place in Mayer Amschel Bauer's Goldsmith
Shop in Frankfurt in 1773. Bauer, who adopted the name of "Rothschild" or
Red Shield, from the red shield which he hung over his door to advertise his
business (the red shield today is the official coat of arms of the City of
Frankfurt), (See Cover) "was only thirty years of age when he invited twelve
other wealthy and influential men to meet him in Frankfurt. His purpose was
to convince them that if they agreed to pool their resources they could then
finance and control the World Revolutionary Movement and use it as their
Manual of Action to win ultimate control of the wealth, natural resources,
and manpower of the entire world. This agreement reached, Mayer unfolded
his revolutionary plan. The project would be backed by all the power that
could be purchased with their pooled resources. By clever manipulation of
their combined wealth it would be possible to create such adverse economic
conditions that the masses would be reduced to a state bordering on
starvation by unemployment... Their paid propagandists would arouse
feelings of hatred and revenge against the ruling classes by exposing all real
and alleged cases of extravagance, licentious conduct, injustice, oppression,
and persecution. They would also invent infamies to bring into disrepute
others who might, if left alone, interfere with their overall plans... Rothschild
turned to a manuscript and proceeded to read a carefully prepared plan of
action. 1. He argued that LAW was FORCE only in disguise. He reasoned it
was logical to conclude 'By the laws of nature right lies in force.' 2. Political
freedom is an idea, not a fact. In order to usurp political power all that was
necessary was to preach 'Liberalism' so that the electorate, for the sake of an
idea, would yield some of their power and prerogatives which the plotters
could then gather into their own hands. 3. The speaker asserted that the
Power of Gold had usurped the power of Liberal rulers.... He pointed out
that it was immaterial to the success of his plan whether the established
governments were destroyed by external or internal foes because the victor
had to of necessity ask the aid of 'Capital' which 'Is entirely in our hands'. 4.
He argued that the use of any and all means to reach their final goal was
justified on the grounds that the ruler who governed by the moral code was
not a skilled politician because he left himself vulnerable and in an unstable
position. 5. He asserted that 'Our right lies in force. The word RIGHT is an
abstract thought and proves nothing. I find a new RIGHT... to attack by the
Right of the Strong, to reconstruct all existing institutions, and to become the
sovereign Lord of all those who left to us the Rights to their powers by laying
them down to us in their liberalism. 6. The power of our resources must
remain invisible until the very moment when it has gained such
42 William Guy Carr, Pawns In The Game, privately printed, 1956
72
strength that no cunning or force can undermine it. He went on to outline twenty-
five points. Number 8 dealt with the use of alcoholic liquors, drugs, moral
corruption, and all vice to systematically corrupt youth of all nations. 9. They
had the right to seize property by any means, and without hesitation, if by
doing so they secured submission and sovereignty. 10. We were the first to
put the slogans Liberty, Equality, and Fraternity into the mouths of the
masses, which set up a new aristocracy. The qualification for this aristocracy
is WEALTH which is dependent on us. 11. Wars should be directed so that
the nations engaged on both sides should be further in our debt. 12.
Candidates for public office should be servile and obedient to our commands,
so that they may readily be used. 13. Propaganda—their combined wealth
would control all outlets of public information. 14. Panics and financial
depressions would ultimately result in World Government, a new order of
one world government."
The Rothschild family has played a crucial role in international finance for
two centuries, as Frederick Morton, in The Rothschilds writes:
"For the last one hundred and fifty years the history of the House of
Rothschild has been to an amazing extent the backstage history of Western
Europe."38 (Preface)... Because of their success in making loans not to
individuals, but to nations, they reaped huge profits, although as Morton
writes, p. 36, "Someone once said that the wealth of Rothschild consists of the
bankruptcy of nations."43
E.C. Knuth writes, in The Empire of the City, "The fact that the House of
Rothschild made its money in the great crashes of history and the great wars
of history, the very periods when others lost their money, is beyond
question. "44
The Great Soviet Encyclopaedia, states, "The clearest example of a personal
linkup (international directorates) on a Western European scale is the
Rothschild family. The London and Paris branches of the Rothschilds are
bound not just by family ties but also by personal link-ups in jointly
controlled companies. "45 The encyclopaedia further described these
companies as international monopolies.
The sire of the family, Mayer Amschel Rothschild, established a small
business as a coin dealer in Frankfurt in 1743. Although previously known as
Bauer*, he advertised his profession by putting up a sign depicting an eagle
on a red shield, an adaptation of the coat of arms of the City of Frankfurt, to
which he added five golden arrows extending from the talons, signifying his
five sons. Because of this sign, he took the
43 Frederick Morton, The Rothschilds, Fawcett Publishing Company, N.Y.,
1961
73
44 E.C. Knuth, Empire of the City, p. 71
45 Great Soviet Encyclopaedia, Edition 3, 1973, Macmillan, London, Vol. 14,
pg. 691
* "The original name of Rothschild was Bauer." p. 397, Henry Clews,
Twenty-eight years in Wall Street.
name 'Rothschild" or "Red Shield". When the Elector of Hesse earned a
fortune by renting Hessian mercenaries to the British to put down the
rebellion in the American colonies, Rothschild was entrusted with this money
to invest. He made an excellent profit both for himself and the Elector, and
attracted other accounts. In 1785 he moved to a larger house, 148
Judengasse, a five story house known as "The Green Shield" which he
shared with the Schiff family.
The five sons established branches in the principal cities of Europe, the most
successful being James in Paris and Nathan Mayer in London. Ignatius Ball a
in The Romance of the Rothschilds46 tells us how the London Rothschild
established his fortune. He went to Waterloo, where the fate of Europe hung
in the balance, saw that Napoleon was losing the battle, and rushed back to
Brussels. At Ostend, he tried to hire a boat to England, but because of a
raging storm, no one was willing to go out. Rothschild offered 500 francs,
then 700, and finally 1,000 francs for a boat. One sailor said, "I will take you
for 2000 francs; then at least my widow will have something if we are
drowned." Despite the storm, they crossed the Channel.
The next morning, Rothschild was at his usual post in the London Exchange.
Everyone noticed how pale and exhausted he looked. Suddenly, he started
selling, dumping large quantities of securities. Panic immediately swept the
Exchange. Rothschild is selling; he knows we have lost the Battle of
Waterloo. Rothschild and all of his known agents continued to throw
securities onto the market. Balla says, "Nothing could arrest the disaster. At
the same time he was quietly buying up all securities by means of secret
agents whom no one knew. In a single day, he had gained nearly a million
sterling, giving rise to the saying, 'The Allies won the Battle of Waterloo, but
it was really Rothschild who won.'"*
In The Profits of War, Richard Lewinsohn says, "Rothschild's war profits
from the Napoleonic Wars financed their later stock speculations. Under
Metternich, Austria after long hesitation, finally agreed to accept financial
direction from the House of Rothschild."47
46 Ignatius Balla, The Romance of the Rothschilds, Everleigh Nash, London,
1913
74
* The New York Times, April 1, 1915 reported that in 1914, Baron Nathan Mayer
de Rothschild went to court to suppress Ignatius Balla's book on the grounds
that the Waterloo story about his grandfather was untrue and libelous. The
court ruled that the story was true, dismissed Rothschild's suit, and ordered
him to pay all costs. The New York Times noted in this story that "The total
Rothschild wealth has been estimated at $2 billion." A previous story in The
New York Times (May 27, 1905) noted that Baron Alphonse de Rothschild,
head of the French house of Rothschild, possessed $60 million in American
securities in his fortune, although the Rothschilds reputedly were not active
in the American field. This explains why their agent, J.P. Morgan, had only
$19 million in securities in his estate when he died in 1913, and securities
handled by Morgan were actually owned by his employer, Rothschild."
47 Richard Lewinsohn, The Profits of War, E.P. Dutton, 1937
After the success of his Waterloo exploit, Nathan Mayer Rothschild gained
control of the Bank of England through his near monopoly of "Consols" and
other shares. Several "central" banks, or banks which had the power to issue
currency, had been started in Europe: The Bank of Sweden, in 1656, which
began to issue notes in 1661, the earliest being the Bank of Amsterdam,
which financed Oliver Cromwell's seizure of power in England in 1649,
ostensibly because of religious differences. Cromwell died in 1657 and the
throne of England was re-established when Charles II was crowned in 1660.
He died in 1685. In 1689, the same group of bankers regained power in
England by putting King William of Orange on the throne. He soon repaid
his backers by ordering the British Treasury to borrow 1,250,000 pounds
from these bankers. He also issued them a Royal Charter for the Bank of
England, which permitted them to consolidate the National debt (which had
just been created by this loan) and to secure payments of interest and
principal by direct taxation of the people. The Charter forbade private
goldsmiths to store gold and to issue receipts, which gave the stockholders of
the Bank of England a money monopoly. The goldsmiths also were required
to store their gold in the Bank of England vaults. Not only had their privilege
of issuing circulating medium been taken away by government decree, but
their fortunes were now turned over to those who had supplanted them.*
In his "Cantos", 46; 27, Ezra Pound refers to the unique privileges which
William Paterson advertised in his prospectus for the Charter of the Bank of
England:
"Said Paterson
Hath benefit of interest on all
the moneys which it, the bank, creates out of nothing."
The "nothing" which is referred to, of course, is the bookkeeping operation
of the bank, which "creates" money by entering a notation that it has "lent"
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you one thousand dollars, money which did not exist until the bank made the
entry.
By 1698, the British Treasury owed 16 million pounds sterling to the Bank of
England. By 1815, principally due to the compounding of interest, the debt
had risen to 885 million pounds sterling. Some of this increase was due to the
wars which had flourished during that period, including the Napoleonic
Wars and the wars which England had fought to retain its American Colony.
* NOTE: In the United States, after the stockholders of the Federal Reserve
System had consolidated their power in 1934, our government also issued
orders that private citizens could not store or hold gold.
William Paterson (1658-1719) himself benefited little from "the moneys
which the bank creates out of nothing", as he withdrew, after a policy
disagreement, from the Bank of England a year after it was founded. A later
William Paterson became one of the framers of the United States
Constitution, while the name lingers on, like the pernicious central bank
itself.
Paterson had found himself unable to work with the Bank of England's
stockholders. Many of them remained anonymous, but an early description
of the Bank of England stated it was "A society of about 1330 persons,
including the King and Queen of England, who had 10,000 pounds of stock,
the Duke of Leeds, Duke of Devonshire, Earl of Pembroke, and the Earl of
Bradford."
Because of his success in his speculations, Baron Nathan Mayer de
Rothschild, as he now called himself, reigned as the supreme financial power
in London. He arrogantly exclaimed, during a party in his mansion, "I care
not what puppet is placed upon the throne of England to rule the Empire on
which the sun never sets. The man that controls Britain's money supply
controls the British Empire, and I control the British money supply."
His brother James in Paris had also achieved dominance in French finance.
In Baron Edmond de Rothschild, David Druck writes, "(James) Rothschild's
wealth had reached the 600 million mark. Only one man in France possessed
more. That was the King, whose wealth was 800 million. The aggregate
wealth of all the bankers in France was 150 million less than that of James
Rothschild. This naturally gave him untold powers, even to the extent of
unseating governments whenever he chose to do so. It is well known, for
example, that he overthrew the Cabinet of Prime Minister Thiers."48
The expansion of Germany under Bismarck was accompanied by his
dependence on Samuel Bleichroder, Court Bankers of the Prussian Emperor,
who had been known as an agent of the Rothschilds since 1828. The later
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Chancellor of Germany, Dr. von Bethmann Hollweg, was the son of Moritz
Bethmann of Frankfurt, who had intermarried with the Rothschilds.
Emperor Wilhelm I also relied heavily on Bischoffsheim, Goldschmidt, and
Sir Ernest Cassel of Frankfurt, who emigrated to England and became
personal banker to the Prince of Wales, later Edward VII. Cassel's daughter
married Lord Mountbatten, giving the family a direct relationship to the
present British Crown.
48 David Druck, Baron Edmond de Rothschild, (Privately printed), N.Y.
1850
49 E.M. Josephson, The Strange Death of Franklin D. Roosevelt, pg. 39,
Chedney Press, N.Y. 1948
Josephson49 states that Philip Mountbatten was related through the Cassels
to the Meyer Rothschilds of Frankfurt. Thus, the English royal House of
Windsor has a direct family relationship to the Rothschilds. In 1901, when
Queen Victoria's son, Edward, became King Edward VII, he re-established
the Rothschild ties.
Paul Emden in Behind The Throne says,
"Edward's preparation for his metier was quite different from
that of his mother, hence he 'ruled' less than she did.
Gratefully, he retained around him men who had been with
him in the age of the building of the Baghdad Railway...there
were added to the advisory staff Leopold and Alfred de
Rothschild, various members of the Sassoon family, and above
all his private financial advisor Sir Ernest Cassel."50
The enormous fortune which Cassel made in a relatively short
time gave him an immense power which he never misused. He
amalgamated the firm of Vickers Sons with the Naval
Construction Company and the Maxim-Nordenfeldt Guns and
Ammunition Company, a fusion from which there arose the
worldwide firm of Vickers Sons and Maxim. On an entirely
different capacity from Cassel were businessmen like the
Rothschilds. The firm was run on democratic principles, and
the various partners all had to be members of the family. With
great hospitality and in a princely manner they led the lives of
grand seigneurs, and it was natural that Edward VII should
find them congenial. Thanks to their international family
relationships and still more extended business connections,
they knew the whole world, were well informed about
everybody, and had reliable knowledge of matters which did
not appear on the surface. This combination of finance and
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politics had been a trademark of the Rothschilds from the very beginning.
The House of Rothschild always knew more than could be
found in the papers and even more than could be read in the
reports which arrived at the Foreign Office. In other countries
also the relations of the Rothschilds extended behind the
throne. Not until numerous diplomatic publications appeared
in the years after the war did a wider public learn how strongly
Alfred de Rothschild's hand affected the politics of Central
Europe during the twenty years before the war (World War
I)."
With the control of the money came the control of the news media. Kent
Cooper, head of the Associated Press, writes in his autobiography, Barriers
Down,
"International bankers under the House of Rothschild
acquired an interest in the three leading European
agencies."51
Thus the Rothschilds bought control of Reuters International News Agency,
based in London, Havas of France, and Wolf in Germany, which controlled
the dissemination of all news in Europe.
50 Paul Emden, Behind The Throne, Hoddard Stoughton, London, 1934
51 Kent Cooper, Barriers Down, pg. 21
In Inside Europe52, John Gunther wrote in 1936 that any French prime
minister, at the end of 1935, was a creature of the financial oligarchy, and
that this financial oligarchy was dominated by twelve regents, of whom six
were bankers, and were headed by Baron Edmond de Rothschild.
The iron grip of the "London Connection" on the media was exposed in a
recent book by Ben J. Bagdikian The Media Monopoly, described as "A
startling report on the 50 corporations that control what America sees, hears,
reads".53 Bagdikian, who edited the nation's most influential magazine the
Saturday Evening Post until the monopoly suddenly closed it down, reveals
the interlocking directorates among the fifty corporations which control the
news, but fails to trace them back to the five London banking houses which
control them. He mentions that CBS interlocks with the Washington Post,
Allied Chemical, Wells Fargo Bank, and others, but does not tell the reader
that Brown Brothers Harriman controls CBS, or that the Eugene Meyer
family (Lazard Freres) controls Allied Chemical and the Washington Post,
and Kuhn Loeb Co. the Wells Fargo Bank. He shows the New York Times
interlocked with Morgan Guaranty Trust, American Express, First Boston
Corporation and others, but does not show how the banking interlocks. He
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does not mention the Federal Reserve System in his entire book, which is
conspicuous by its absence.
Bagdikian documents that the media monopoly is steadily closing down more
newspapers and magazines. Washington D.C., with one paper, The Post, is
unique among world capitols. London has eleven daily newspapers, Paris
fourteen, Rome eighteen, Tokyo seventeen, and Moscow nine. He cites a
study from the 1982 World Press Encyclopaedia that the United States is at
the bottom of industrial nations in the number of daily newspapers sold per
1,000 population. Sweden leads the list with 572, the United States is at the
bottom with 287. There is universal distrust of the media by Americans,
because of their notorious monopoly and bias. The media unanimously urge
higher taxes on working people, more government spending, a welfare state
with totalitarian powers, close relations with Russia, and a rabid
denunciation of anyone who opposes Communism. This is the program of
"the London Connection." It flaunts a maniacal racism, and has as its motto
the dictum of its high priestess, Susan Sontag, that "The white race is the
cancer of history." Everyone should be against cancer. The media monopoly
deals with its opponents in one of two ways; either frontal assault of libel
which the average person cannot afford to litigate, or an iron curtain of
silence, the standard treatment for any work which exposes its clandestine
activities.
52 John Gunther, Inside Europe, 1936
53 Ben H. Bagdikian, The Media Monopoly, Beacon Press, Boston 1983
Although the Rothschild plan does not match any single political or economic
movement since it was enunciated in 1773, vital parts of it can be discerned
in all political revolution since that date. LaRouche54 points out that the
Round Tables sponsored Fabian Socialism in England, while backing the
Nazi regime through a Round Table member in Germany, Dr. Hjalmar
Schacht, and that they used the Nazi Government throughout World War II
through Round Table member Admiral Canaris, while Allen Dulles ran a
collaborating intelligence operation in Switzerland for the Allies.
54 Lyndon H. LaRouche, Jr., Dope, Inc., New Benjamin Franklin House
Publishing Co., New York, 1978
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CHAPTER SIX
The London Connection
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