CHAPTER FOURTEEN Congressional Expose: Secrets of the Federal Reserve by Eustace Mullins from archive.org

CHAPTER FOURTEEN 

Congressional Expose 

"Mr. Volcker's politics is something of an enigma."— New York Times 

Since 1933 when Eugene Meyer resigned from the Federal Reserve Board of 
Governors, no member of the international banking families has personally 
served on the Board of Governors. They have chosen to work from behind 
the scenes through carefully selected presidents of the Federal Reserve Bank 
of New York and other employees. 

The present chairman of the Federal Reserve Board of Governors is Paul 
Volcker. His appointment was greeted by one well-known economist with the 
following prediction, "Volcker's selection has been by far the worst. Carter 
has put Dracula in charge of the blood bank. To us, it means a crash and 
depression in the 80s is more certain than ever." 

Col. E.C. Harwood's Research Report, August 6, 1979, gave much the same 
view. "Paul Volcker is from the same mold as the unsound money men who 
have misguided the monetary actions of this nation for the past five decades. 
The outcome probably will be equally disastrous for the dollar and the U.S. 
economy." 

Despite these gloomy views, the report from The New York Times on the 
selection of Volcker was positively ecstatic. On July 26, 1979, The Times 
commented that Volcker learned "the business" from Robert Roosa, now 
partner of Brown Brothers Harriman, and that Volcker had been part of the 
Roosa Brain Trust at the Federal Reserve Bank of New York, and, later, at 
the Treasury in the Kennedy administration. "David Rockefeller, the 
chairman of Chase, and Mr. Roosa were strong influences in the Mr. Carter 
decision to name Mr. Volcker for the Reserve Board chairmanship." The 
New York Times did not point out that David Rockefeller and Robert Roosa 
had previously chosen Mr. Carter, a member of the Trilateral Commission, 
as the presidential candidate of the Democratic Party, or that Mr. Carter 
would hardly refuse to appoint their choice of Paul Volcker as the new 
Chairman of the Federal Reserve Board. Nor is it straining the point to be 
reminded that this manner of selection of the Chairman of the Board of 
Governors is directly in the line of royal prerogative going back to George 
Peabody's initial agreement with N.M. Rothschild, to the Jekyll Island 
meeting, and to the enactment of the Federal Reserve Act. 

The Times noted that "Volcker's choice was approved by European banks in 

Bonn, Frankfurt and Zurich." William Simon, former Secretary of 

Treasury, was quoted as saying "a marvelous choice." The Times further 

noted that the Dow market rose on Volcker's nomination, registering the best 



195 
gains in three weeks for a rise of 9.73 points, and that the dollar rose sharply on 
foreign exchange® at home and abroad. 

Who was Volcker, that his appointment could have such an effect on the 
stock market and the value of the dollar in foreign exchange? He represented 
the most powerful house of "the London Connection," Brown Brothers 
Harriman, and the London houses which directed the Rockefeller empire. 
On July 29, 1979, The Times had said of Volcker, "New Man Will Chart His 
Own Course". 

Volcker's background shows that this was nonsense. His course has always 
been charted for him by his masters in London. He attended Princeton, 
obtained an M.A. at Harvard, and went to the London School of Economics 
1951-52, the banker's graduate school. He then came to the Federal Reserve 
Bank of New York as an economist from 1952-57, economist at Chase 
Manhattan Bank, 1957-61, with Treasury Department 1961-65, as deputy 
under secretary for monetary affairs, 1963-65, and under secretary for 
monetary affairs, 1969-74. He then became President of the Federal Reserve 
Bank of New York from 1975-79, when Carter, at the behest of Robert Roosa 
and David Rockefeller, appointed him Chairman of the Federal Reserve 
Board of Governors. He was succeeded as President of Federal Reserve Bank 
of New York by Anthony Solomon, a Harvard Ph.D. who was with the OPA 
1941-42 and with the government financial mission to Iran 1942-46. He 
operated a canned food company in Mexico from 1951-61, was president of 
International Investment Corp. for Yugoslavia 1969-72 (a communist 
country), under secretary for monetary affairs at Treasury 1977-80. In short, 
Solomon's background was much the same as Paul Volcker's. 

The New York Times stated on December 2, 1981, "For years the Federal 
Reserve was the second or third most secret institution in town. The 
Sunshine Act of 1976 penetrated the curtain a trifle. The board now holds a 
public meeting once a week on Wednesday at 10 a.m., but not to discuss 
Monetary policy, which is still regarded as top secret and not to be discussed 
in public." The Times mentioned that when Open Market Committee 
meetings are held, Solomon and Volcker sit together at the head of the table 
and relay the instructions which they have received from abroad. 

Behind Volcker and Solomon stands Robert Roosa, Secretary of the 
Treasury in Carter's shadow cabinet, and representing Brown Brothers 
Harriman, the Trilateral Commission, the Council on Foreign Relations, the 
Bilderbergers, and the Royal Economic Institute. He is a trustee of the 

Rockefeller Foundation*, and a director of Texaco and American Express 

companies. Dr. Martin Larson points out that "The international consortium 

of financiers known as the Bilderbergers, who meet annually in profound 

secrecy to determine the destiny of the western world, is a creature of the 

Rockefeller-Rothschild alliance, and that it held its third meeting on St. 



196 
Simons Island, only a short distance from Jekyll Island." Larson also states that 
"The Rockefeller interests work in close alliance with the Rothschilds and 

other central banks."** 

On June 18, 1983, President Ronald Reagan ended months of speculation by 
announcing that he was reappointing Paul Volcker as Chairman of the 
Federal Reserve Board of Governors for another four year term, although 
Volcker' s term was not up until August 6, 1983. Reagan's reappointment of a 
Carter appointee puzzled some political observers, but apparently he had 
succumbed to considerable pressure, as indicated by a lead editorial in The 
Washington Post, June 10, 1983, "There is no one who matches Mr. Volcker 
in both political standing and grasp of the intricate networks that make up 
the world's financial system." The anonymous writer gave no documentation 
for his elevation of Volcker to the standing of the world's greatest financier, 
and as for his political standing, The New York Times commented on June 
19, 1983, "Mr. Volcker's politics is something of an enigma." His "non- 
political" stance conforms with the Washington tradition of "the political 
independence of the Fed" which has been maintained for many years. 
However, the problem of its dependence on "the London connection" has 
never been discussed in Washington. 

In reality, Volcker is more of a politician than an economist. After attending 
the London School of Economics, and finding out who issues the orders of 
the international financial community, Volcker has ever since played the 
game. Not once has he failed to carry out the orders of the "London 
Connection". 

Can it really be possible that "The London Connection" exists, and that men 
like Volcker and Solomon receive their instructions, in however devious or 
indirect a manner, from foreign bankers? Let us look at the evidence, 
circumstantial, to be sure, but circumstantial evidence of the quality which 
has often sent men to the penitentiary or to the electric chair. John Moody 
pointed out in 1911 that seven men of the Morgan group, allied with the 
Standard Oil-Kuhn, Loeb group, ruled the United States. Where do these 
groups stand in the financial picture today? 

U.S. News published on April 11, 1983, a list of the largest bank holding 
companies in the United States by assets as of December 31, 1982. Number 1 
is Citicorp, New York, with assets of $130 billion. This is Baker and 



* See Chart V 
** See Chart I 



Morgan's First National Bank of New York, merged with National City Bank 
in 1955, two of the largest purchasers of Federal Reserve Bank of New York 



197 

stock in 1914. Number 3, is Chase Manhattan, New York, with assets of $80.9 

billion. This is Chase and Bank of Manhattan merged, the Rockefeller and 

Kuhn Loeb group, also purchasers of Federal Reserve Bank of New York 

stock in 1914. Number 4 is Manufacturers Hanover of New York $64 billion, 

also purchaser of Federal Reserve Bank of New York stock in 1914. Number 

5 is J.P. Morgan Company of New York, $58.6 billion in assets and holder of 

considerable Federal Reserve Bank stock. Number 6 is Chemical Bank of 

New York, $48.3 billion also purchaser of Federal Reserve stock in 1914. And 

Number 11, First Chicago Corporation, the First National Bank of Chicago 

which was principal correspondent of the Morgan-Baker bank in New York, 

and which furnished the first two presidents of the Federal Advisory 

Council. 

The direct line which leads from the participants in the Jekyll Island 
Conference of 1910 to the present day is illustrated by a passage from "A 
Primer on Money", Committee on Banking and Currency, U.S. House of 
Representatives, 88th Congress, 2d session, August 5, 1964, p. 75: 

"The practical effect of requiring all purchases to be made through the open 
market is to take 

money from the taxpayer and give it to the dealers. It forces the Government 
to pay a toll for 

borrowing money. There are six 'bank' dealers: First National City Bank of 
New York; Chemical 

Crop. Exchange Bank, New York, Morgan Guaranty Trust 
Co., New York, Bankers Trust of New York, First National 
Bank of Chicago, and Continental Illinois Bank of Chicago." 

Thus the banks which receive a "toll" on all money borrowed by the 
Government of the United States are the same banks which planned the 
Federal Reserve Act of 1913. There is ample evidence demonstrating the 
present preeminence of the same banks which set up the Federal Reserve 
System in 1914. For instance, Warren Brookes writes on the editorial page of 
The Washington Post, June 6, 1983: 

"Citicorp (National City Bank and First National Bank of New York, merged 
in 1955) just 

recorded an 18.6% return on equity, J.P. Morgan, 17%, 
Chemical Bank and Bankers Trust, nearly 16%, an 
exceptional rate of return." 

These are the banks which bought the first issue of Federal Reserve Bank 
stock in 1914, and which owned the controlling interest in the Federal 



Reserve Bank of New York, which sets the interest rate and is the bank for all 
open market operations. 

These banks also profit steadily from the otherwise inexplicable fluctuations 
in monetary growth and interest rates. Brookes further comments on "actual 
monetary growth rates alternately gyrating from to 17% in successive six 
month periods for three recession-wracked years. The two measures of 
money growth most admired by Milton Friedman M2 and M3, 

have actually shown little change on a year to year basis in the 1972-82 

period." 

Thus we have money growth rates gyrating from to 17% but no actual year 
to year changes, which raises the question of why we cannot have stability of 
monetary growth throughout the year. The answer is that the big profits are 
made by these gyrations, and the next question is, who sets in motion these 
gyrations? The answer is "the London Connection". 

To draw attention from the continued control of the bankers and their heirs, 
who obtained the government monopoly of the nation's money and credit in 
1913, the paid propagandists of the controlled media monopoly and 
academia are constantly trotting forth new and more exotic theories of 
economics. Thus James Burnham, one of the National Review propagandists, 
won fame with a ridiculous theory of "the managers". He postulated that the 
old arbiters of wealth, the J.P. Morgans, the Warburgs and the Rothschilds 
had, by 1950, disappeared from the scene, being replaced by a new class of 
"managers". This theory, which had no foundation in fact, served to obscure 
the fact that the same people still controlled the monetary system of the 
world. The "managers" were just that, executives like Volcker who were 
front men, paid employees who would continue to receive their paychecks 
only as long as they carried out their employers' instructions. Burnham 
remains a well-paid propagandist at the National Review, which many 
prominent leaders, including President Reagan, believe to be a 
"conservative" publication. 

From 1914 to 1982, a period in which many thousands of American banks 
went bankrupt, the original purchasers of Federal Reserve Bank stock have 
not only survived but they have consolidated their power. And what of "the 
London Connection"? Does it still exist, and is it still dictating the economic 
destiny of the United States? The Washington Post, May 19, 1983, carried a 
story datelined Nairobi, Kenya, noting the meeting of the African 
Development Bank. "The British merchant bank, Morgan Grenfell and a 
syndicate of the United States, Kuhn Loeb, Lehman Brothers International, 
the French Lazard Freres and Britain's Warburg are discreetly acting as 
financial advisors to about ten debt-plagued African states." 



199 
There are the same names we encountered in 1914, still managing the finances of 
the world, with profits for themselves but with disastrous results for 
everyone else. Perhaps we can look for relief to the present Administration of 
President Reagan. Unfortunately, before reaching him we have to run the 
gamut of the long list of his principal staff, composed of men from J. Henry 
Schroder, Brown Brothers Harriman, and other leading components of "The 
London Connection". 

Lopez Portillo, President of Mexico, in addressing the Mexican National 
Congress of Mexico in September, 1982, called the world credit boom of the 
past decade a financial pestilence akin to the Black Death which swept 

Europe in the fourteenth century. "As in mediaeval times, it flattens country 

after country. It is transmitted by rats and it yields unemployment and 
misery, industrial bankruptcy and enrichment by speculation. The remedy 
prescribed by faith healers is forced inactivity and depriving the patient of 

food." 

Forbes Magazine stated October 11, 1982, "The world gasps for liquidity, not 
because the supply of money has contracted but because too much of it now 
goes to pay off old debts rather than fund new productive investments." 

The policy of high interest rates and tight money has been disastrous for the 
United States. In early 1983, a slight easing of money and credit promises 
some relief, but as long as the Federal Reserve system and its unseen 
manipulators continue their control of the money supply, we can expect more 
problems. The Nation on December 11, 1982, in commenting on economic 
problems, stated, "The blame for all this lies at the door of the Federal 
Reserve System working as usual on behalf of the international banking 
system." 

The evidence of how the Federal Reserve System works on behalf of the 
international banking system is graphically illustrated by a series of charts 
drawn up by the staff of the Committee on Banking, Currency and Housing 
of the House of Representatives, 94th Congress, 2d session, August, 1976, 
"FEDERAL RESERVE DIRECTORS: A STUDY OF CORPORATE AND 
BANKING INFLUENCE".* We present as our Chart V page 49 of this 
study, showing the interlocking directorates of David Rockefeller. As our 
Chart VI we reproduce page 55 of this study, showing the interlocking 
directorates of Frank R. Milliken, one of the Class C Directors** of the 
Federal Reserve Bank of New York. In this chart are all the main personages 
in our story of the Jekyll Island conference: Citibank, J.P. Morgan and 
Company, Kuhn Loeb and Company, and many related firms. As Chart VII 
we reproduce page 53 of this study, showing the interlocking directorates of 
another Class C Director of the Federal Reserve Bank of New York, Alan 
Pifer. As President of the Carnegie Corporation of New York, he interlocks 
with J. Henry Schroder Trust Company, J. Henry Schroder Banking 



200 
Corporation, Rockefeller Center, Inc., Federal Reserve Bank of Boston, 
Equitable Life Assurance Society (J.P. Morgan), and others. Thus an August, 
1976 study from the House Committee on Banking, Currency and Housing, 
brings before us all of our main cast of personages, functioning today just as 
they did in 1914. 



* Due to space limitations, only five of the seventy-five charts in the study, all 
of which show the connections between prominent, powerful individuals with 
control in the Federal Reserve System have been selected to illustrate the 
connections between officers and directors of the twelve Federal Reserve 
Banks in 1976 and the firms listed in this book. 

** "The three Class C Directors are appointed by the Board of Governors as 
representatives of the public interest as a whole." p. 34, Congressional Study, 
1976. 

This 120 page Congressional study details public policy functions of the 

Federal Reserve District Banks, how directors are selected, who is selected, 

the public relations lobbying factor, bank domination and bank examination, 

and corporate interlocks with Reserve banks. Charts were used to illustrate 

Class A, Class B, and Class C directorships of each district bank. For each 

branch bank a chart was designed giving information regarding bank 
appointed directors and those appointed by the Board of Governors of the 

Federal Reserve System. 

In his Foreword to the study, Chairman Henry S. Reuss, (D-Wis) wrote: 

"This Committee has observed for many years the influence of private 
interests over the 

essentially public responsibilities of the Federal Reserve System. 

As the study makes clear, it is difficult to imagine a more narrowly based 
board of directors for a 

public agency than has been gathered together for the twelve banks of the 
Federal Reserve 

System. 

Only two segments of American society—banking and big business—have any 
substantial 

representation on the boards, and often even these become merged through 
interlocking 



201 
directorates .... Small farmers are absent. Small business is barely visible. No 
women appear on 

the district boards and only six among the branches. Systemwide—including 
district and branch 

boards—only thirteen members from minority groups appear. 

The study raises a substantial question about the Federal Reserve's oft- 
repeated claim of 

"independence". One might ask, independent from what? Surely not 
banking or big business, if 

we are to judge from the massive interlocks revealed by this analysis of the 
district boards. 

The big business and banking dominance of the Federal 
Reserve System cited in this report can be traced, in part, to 
the original Federal Reserve Act, which gave member 
commercial banks the 

right to select two-thirds of the directors of each district bank. But the Board 
of Governors in 

Washington must share the responsibility for this imbalance. They appoint 
the so-called "public" 

members of the boards of each district bank, appointments which have 
largely reflected the same 

narrow interests of the bank-elected members .... Until we have basic 
reforms, the Federal 

Reserve System will be handicapped in carrying out its public responsibilities 
as an economic 

stabilization and bank regulatory agency. The System's mandate is too 
essential to the nation's 

welfare to leave so much of the machinery under the control of narrow 
private interests. 

Concentration of economic and financial power in the United States has gone 
too far." 

In a section of the text entitled "The Club System", the Committee noted: 

"This 'club' approach leads the Federal Reserve to consistently dip into the 
same pools—the 



202 
same companies, the same universities, the same bank holding companies—to fill 
directorships." 

This Congressional study concludes as follows: 

"Many of the companies on these tables, as mentioned earlier, have multiple 

interlocks to the Federal Reserve System. First Bank Systems; Southeast 

Banking Corporation; Federated Department Stores; Westinghouse Electric 

Corporation; Proctor and Gamble; Alcoa; Honeywell, Inc.; Kennecott 

Copper; Owens-Corning Fiberglass; all have two or more director ties to 

district or branch banks. 

In Summary, the Federal Reserve directors are apparently representatives of 
a small elite group which dominates much of the economic life of this 
nation." END OF CONGRESSIONAL REPORT. 

ADDENDUM 

As of 11:05 Tuesday, July 26, 1983, the list of member banks holding Federal 
Reserve Bank of New York stock includes twenty-seven New York City 
banks. Listed below are the number of shares held by ten of these banks, 
amounting to 66% of the total outstanding number of shares, namely 
7,005,700: 





Shares 


Percent 


Bankers Trust Company 


438,831 


(6%) 


Bank of New York 


141,482 


(2%) 


Chase Manhattan Bank 


1,011,862 


(14%) 


Chemical Bank 


544,962 


(8%) 


Citibank 


1,090,813 


(15%) 


European American Bank & Trust 


127,800 


(2%) 


J. Henry Schroder Bank & Trust 


37,493 


(.5%) 


Manufacturers Hanover 


509,852 


(7%) 


Morgan Guaranty Trust 


655,443 


(9%) 


National Bank of North America 


105,600 


(2%) 



The tremendous number of shares held today as against the original 

purchases in 1914 is brought about by Section 5 of the original Federal 

Reserve Act which called for a member bank to buy and hold stock in the 

district Federal Reserve Bank equal to 6% of its capital and surplus. 

Currently, shares held by five of the above named banks comprise 53% of 
the total Federal Reserve Bank of New York stock. An examination of the 
major stockholders of the New York City banks shows clearly that a few 
families, related by blood marriage, or business interests, still control the 
New York City banks which, in turn, hold the controlling stock of the 
Federal Reserve Bank of New York. 

It is notable that three of the banks holding Federal Reserve Bank of New 
York stock, in the amount of 270,893 shares, are subsidiaries of foreign 
banks. J. Henry Schroder Bank and Trust is listed by Standard and Poors as 



203 
a subsidiary of Schroders Ltd. of London. The National Bank of North America 
is a subsidiary of the National Westminster Bank, one of London's "Big 
Five". European American Bank is a subsidiary of the European American 
Bank, Bahamas, LTD. It is interesting to note that the directors of the 
European American Bank & Trust include Milton F. Rosenthal, president 
and Chief Operating Officer of the international gold company, 

Engelhard Minerals and Chemical; Hamilton F. Potter, a partner in Sullivan 

and Cromwell (J. Henry Schroder Bank & Trust attorneys); Edward H. 
Tuck, partner of Shearman and Sterling (Citibank's attorneys); F.H. Ulrich 

and Hans Liebkutsch, managing directors of the giant Midland Bank of 
London, one of the "Big Five"; and Roger Alloo, Paul-Emmanuel Janssen, 
and Maurice Laure of the Societe Generale de Banque (Brussels, Belgium). 

[See Chart III] 

This information, derived from the latest issue of the tabulation available 
from the Board of Governors, Federal Reserve System, is cited as current 
evidence which indicates that the controlling stock in the Federal Reserve 
Bank of New York, which sets the rate and scale of operations for the entire 
Federal Reserve System is heavily influenced by banks directly controlled by 
"The London Connection", that is, the Rothschild-controlled Bank of 
England. [See Chart I] 



204 

APPENDIX I 

E.C. Knuth, in The Empire of the City, priv. printed, 1946, p. 27, refers to 

"the Bank of England, the full partner of the American Administration in 

the conduct of the financial affairs of all the world" and cites the 

Encyclopaedia Americana, 1943 edition. 

Barron cites Lord Swaythling, (April 8, 1923), "Lord Swaythling said, 
'Exchange can only be run from London. This is the center in Exchange.'" 
(They Told Barron, by Clarence W. Barron, founder of Baron's Weekly, 
Harpers, New York, 1930, p. 27.) 

Exchange, in the international financial world, means the transactions in 
money or securities, or simply, the "exchange" of the values of these 
securities. It is necessary that this "exchange" take place where the values 
can be established, and this place is the "City" in London. 

London was established as the primary center of exchange because of the 
"Consols" of the Bank of England, bonds which could never be redeemed, 
but which paid a stable rate of return. Henry Clews writes, in The Wall 
Street View, Silver Burdett Co. 1900, p. 255, "The Consolidated Act of 1757 
consolidated the debts of the nation of England at 3%, which were kept in an 
account at the Bank of England and is the great bulwark of its deposits." By 
ostentatiously "dumping" "Consols" on the London Exchange after the 
Battle of Waterloo, in a pretended panic, Nathan Meyer Rothschild then 
secretly bought up the Consols sold in the panic by other holders at a low 
rate, and became the largest holder of Consols, and thus won control of the 
Bank of England in 1815. 

12% Dividends 

Although a Labor government nationalized the Bank of England in 1946, 
The Great Soviet Encyclopaedia points out (vol. I, p. 490c) that the Bank of 
England continues to pay 12% dividends per annum, just as it had done 
prior to the nationalization. The "Governor" is appointed by the 
government, in a situation similar to that in the United States, where the 
Governors of the Federal Reserve System are appointed by the President. 
However, as is pointed out in the Encyclopaedia Americana v. 13, p. 272, "In 
practice, the governors of the Bank of England have not hesitated to criticize 
and bring pressure on the government in public." 

Bank Rate 

The interest rate set by the Bank of England is known as "the Bank rate", 
and it is a controlling factor in interest rates throughout the world, 



205 
although rates in other countries may be higher or lower than this "Bank rate". 
The Bank of England manages the government debt, and is called upon to 
arbitrate in political affairs. It served as the intermediary with the Iran 
revolutionaries in negotiating for the return of the American hostages—a 

recent example. 

We should not be surprised that the present Governor of the Bank of 
England, Sir Gordon Richardson is a prominent international financial 
figure, who appears elsewhere in these pages because of his connection with 
the J. Henry Schroder @Wagg in London from 1962 to 1972, when he 
became Governor of the Bank of England. He was also director of J. Henry 
Schroder Co., New York, and Schroder Banking Corp., New York. He also 
serves as director of Rolls Royce and Lloyd's Bank. Although he resides in 
London, he maintains a home in New York, and is listed in the current 
Manhattan directory simply as "G. Richardson, 45 Sutton Place S.", 
although a prior listing showed him at 4 Sutton Place. Sutton Place was 
developed as a fashionable address for the international set by Bessie 
Marbury, whom we earlier cited for her connection with the Morgan family 
and the Roosevelts. 

The present directors of the Bank of England (1982) include Leopold de 
Rothschild of N.M. Rothschild & Sons, Sir Robert Clark, chairman of Hill 
Samuel Bank, the most influential bank after Rothschilds, John Clay, of 
Hambros Bank, and David Scholey, of Warburg Bank, and joint chairman of 
S.C. Warburg Co. 

Anthony Sampson writes, in "The Changing Anatomy of Britain", Random 
House, New York, 1982, p. 279, "The more cosmopolitan banks with foreign 
experts and directors, such as Warburgs, Montagus, Rothschilds and 
Kleinworts, had also discovered a huge new source of profits in the market 
for Eurodollars which began in the late fifties and multiplied through the 60s 
. . . British bankers themselves controlled relatively small funds, but they 
knew how to make money out of other people's money." 

The Eurodollar market, a new development in "created money" is 
monopolized by the above firms. 

Eurodollar Empire 

"Today, together with allies on the island of Manhattan (Britain's most 
important piece of real estate), the British Empire controls the entire $1.5 
trillion Eurodollar financial market, another $300-$500 billion in the 
Cayman Islands, Bahamas, and $50-$100 billion in the Hong-Kong 
Singapore "Asia-dollar market". . . . Consider the $1.5 trillion Eurodollar 
market an "outlaw" market in the U.S. dollars over which this nation has no 
control. Here control and profits are overwhelmingly in the hands of London 



206 
banks, who set the terms of lending and the interest rate on this mass of 
American dollars in relation to the London Interbank Borrowing 

Rate (LIBOR) . . . U.S. banks like Citibank (New York City), on whose board of 
directors sits the powerful British financier, Lord Aldington, collaborate openly 
in this market. At the same time, British banks including the known central 
bank for the world's drug trade, the Hongkong and Shanghai Bank, pour into 
America to devour U.S. banks. In 1978 the Hongshang (Ed.~Hongkong and 
Shanghai Bank) took over New York's Marine Midland Bank, the state's 11th 
largest commercial bank. . . The British also control the creation of American 
dollars. While Federal Reserve Board Chairman Paul Volcker tightens credit 
against the domestic economy, British-controlled banks in the Cayman Islands 
(such as the European American Bank—Ed.) a British possession 200 miles off 
Florida, and in the Bermudas and a dozen other "free banking" computer 
terminals create hundreds of billions of American dollars. How is this done? 
There are no reserve ratios or other restrictions on the creation of dollar- 
denominated credits in the Empire's "free enterprise" banking. A $1 million 
bona fide credit coming from the United States can be turned into $20 to $100 
million in dollar-denominated credits as it passes through the British system 
without reserve ratios."* 

Not only the financial power, but also the legal power, has remained seated in 
Britain. The Washington Post commented on June 18, 1983 that after the 
American Revolution, all the old laws remained in effect in the new United 
States: Some of these laws of "English common law" dated back to 1278, 
long before America was discovered. 

This enormous financial power of "the City" is revealed in many areas. Dean 
Acheson states, in "Present at the Creation", 1969, W.W. Norton, New York, 
p. 779, "We stayed at the embassy residence, the old J.P. Morgan mansion, 
14 Prince's Gate, facing Hyde Park." How many Americans are aware that 
the U.S. Embassy residence in London is the J.P. Morgan home, or that Dean 
Acheson, a former Morgan employee, described himself as Secretary of State 
on p. 505, "My own attitude had long been, and was known to have been, 
pro-British." No one commented on an American Secretary of State's open 
bias in favor of England. 

The Federal Reserve "created" money is not used only for financial matters; 
this money is also used to maintain the bankers' control of every aspect of 
political, economic and social life. It is used to bankroll the enormous 
expenditures of political candidates, the swollen budgets of universities, the 
huge outlays required to start newspapers or magazines, and a vast array of 
foundations, "think-tanks" and other instruments of mind control. 

Psychological Warfare 



207 
Few Americans know that almost every development in psychology in the United 
States in the past sixty-five years has been directed by the Bureau of 
Psychological Warfare of the British Army. A short time ago, 



* Harpers Magazine, Feb. 1980 

the present writer learned a new name, The Tavistock Institute of London, 

also known as the Tavistock Institute of Human Relations. "Human 

relations" covers every aspect of human behavior, and it is the modest goal of 

the Tavistock Institute to obtain and exercise control over every aspect of 

human behavior of American citizens. 

Because of the intensive artillery barrages of World War I, many soldiers 
were permanently impaired by shell shock. In 1921, the Marquees of 
Tavistock, 11th Duke of Bedford, gave a building to a group which planned 
to conduct rehabilitation programs for shell shocked British soldiers. The 
group took the name of "Tavistock Institute" after its benefactor. The 
General Staff of the British Army decided it was crucial that they determine 
the breaking point of the soldier under combat conditions. The Tavistock 
Institute was taken over by Sir John Rawlings Reese, head of the British 
Army Psychological Warfare Bureau. A cadre of highly trained specialists in 
psychological warfare was built up in total secrecy. In fifty years, the name 
"Tavistock Institute' appears only twice in the Index of the New York Times, 
yet this group, according to LaRouche and other authorities, organized and 
trained the entire staffs of the Office of Strategic Services (OSS), the 
Strategic Bombing Survey, Supreme Headquarters of the Allied 
Expeditionary Forces, and other key American military groups during 
World War II. During World War II, the Tavistock Institute combined with 
the medical sciences division of the Rockefeller Foundation for esoteric 
experiments with mind-altering drugs. The present drug culture of the 
United States is traced in its entirety to this Institute, which supervised the 
Central Intelligence Agency's training programs. The "LSD counter 
culture" originated when Sandoz A.G., a Swiss pharmaceutical house owned 
by S.G. Warburg & Co., developed a new drug from lysergic acid, called 
LSD. James Paul Warburg (son of Paul Warburg who had written the 
Federal Reserve Act in 1910), financed a subsidiary of the Tavistock Institute 
in the United States called the Institute for Policy Studies, whose director, 
Marcus Raskin, was appointed to the National Security Council. James Paul 
Warburg set up a CIA program to experiment with LSD on CIA agents, 
some of whom later committed suicide. This program, MK-Ultra, supervised 
by Dr. Gottlieb, resulted in huge lawsuits against the United States 
Government by the families of the victims. 

The Institute for Policy Studies set up a campus subsidiary, Students for 
Democratic Society (SDS), devoted to drugs and revolution. Rather than 



208 
finance SDS himself, Warburg used CIA funds, some twenty million dollars, to 
promote the campus riots of the 1960s. 

The English Tavistock Institute has not restricted its activities to left-wing 
groups, but has also directed the programs of such supposedly 
"conservative" American think tanks as the Herbert Hoover Institute at 
Stanford University, Heritage Foundation, Wharton, Hudson, Massachusetts 
Institute of Technology, and Rand. The "sensitivity train- 
ing" and "sexual encounter" programs of the most radical California groups 
such as Esalen Institute and its many imitators were all developed and 
implemented by Tavistock Institute psychologists. 

One of the rare items concerning the Tavistock Institute appears in Business 
Week, Oct. 26, 1963, with a photograph of its building in the most expensive 
medical offices area of London. The story mentions "the Freudian bias" of 
the Institute, and comments that it is amply financed by British blue-chip 
corporations, including Unilever, British Petroleum, and Baldwin Steel. 
According to Business Week, the psychological testing programs and group 
relations training programs of the Institute were implemented in the United 
States by the University of Michigan and the University of California, which 
are hotbeds of radicalism and the drug network. 

It was the Marquees of Tavistock, 12th Duke of Bedford, whom Rudolf Hess 
flew to England to contact about ending World War II. Tavistock was said to 
be worth $40 million in 1942. In 1945, his wife committed suicide by taking 
an overdose of pills. 

BIOGRAPHIES 

NELSON ALDRICH (1841-1915) 

Senator from Rhode Island; head of National Monetary Commission; his 
daughter Abby Aldrich married John D. Rockefeller, Jr.; he became the 
grandfather of his namesake. Nelson Aldrich Rockefeller, as well as the 
present David Rockefeller and Laurence Rockefeller. 

WILLIAM JENNINGS BRYAN (1860-1925) 

Woodrow Wilson's Secretary of State, three times losing presidential 
candidate of the Democratic Party, in 1896, 1900, and 1908, and head of the 
Democratic Party. 

ALFRED OWEN CROZIER (1863-1939) 

A prominent attorney in Grand Rapids, Cincinnati, and New York, Crozier 
wrote eight books on legal and monetary problems, focussing on his 



209 
opposition to the supplanting of Constitutional money by the corporation 
currency printed by private firms for their profit. 

CLARENCE DILLON (1882-1979) 

Born in San Antonio, Texas, son of Samuel Dillon and Bertha Lapowitz. 
Harvard, 1905. Married Anne Douglass of Milwaukee. His son, C. Douglas 
Dillon (later Secretary of the Treasury, 1961-65) was born in Geneva, 
Switzerland in 1909 while they were abroad. Dillon met William A. Read, 
founder of the Wall Street bond broker William A. Read and Company, 
through introduction by Harvard classmate William A. Phillips in 1912 and 
Dillon joined Read's Chicago office in that year. He moved to New York in 
1914. Read died in 1916, and Dillon bought a majority interest in the firm. 
During World War 1, Bernard Baruch, chairman of the War Industries 
Board, (known as the Czar of American industry) asked Dillon to be 
assistant chairman of the War Industries Board. In 1920, William A. Read & 
Company name was changed to Dillon, Read & Company. Dillon was 
director of American Foreign Securities Corporation, which he had set up in 
1915 to finance the French Government's purchases of munitions in the 
United States. His righthand man at Dillon Read, James Forrestal, became 
Secretary of the Navy, later Secretary of Defense, and died under mysterious 
circumstances at a Federal hospital. In 1957, Fortune Magazine listed Dillon 
as one of the richest men in the United States, with a fortune then estimated 
to be from $150 to $200 million. 

ALAN GREENSPAN (1926- ) 

Appointed by President Reagan to succeed Paul Volcker as Chairman of the 
Board of Governors of the Federal Reserve System in 1987. Greenspan had 
succeeded Herbert Stein as chairman of the President's Council of Economic 

Advisors in 1974. He was the protege of former chairman of the Board of 
Governors, Arthur Burns of Austria (Bernstein). Burns was a monetarist 

representing the Rothschild's Viennese School of Economics, which 

manifested its influence in England through the Royal Colonial Society, a 

front for Rothschilds and other English bankers who stashed their profits 

from the world drug trade in the Hong Kong Shanghai Bank. The staff 

economist for the Royal Colonial Society was Alfred Marshall, inventor of 

the monetarist theory, who, as head of the Oxford Group, became the patron 

of Wesley Clair Mitchell, who founded the National Bureau of Economic 

Research for the Rockefellers in the United States. Mitchell, in turn, became 

the patron of Arthur Burns and Milton Friedman, whose theories are now 

the power techniques of Greenspan at the Federal Reserve Board. Greenspan 

is also the protege of Ayn Rand, a weirdo who interposed her sexual affairs 

with guttural commands to be selfish. Rand was also the patron of CIA 

propagandist William Buckeley and the National Review. Greenspan was 

director of major Wall Street firms such as J.P. Morgan Co., Morgan 



210 

Guaranty Trust (the American bank for the Soviets after the Bolshevik 

Revolution of 1917), Brookings Institution, Bowery Savings Bank, the 

Dreyfus Fund, General Foods, and Time, Inc. Greenspan's most impressive 

achievement was as chairman of the National Commission on Social Security 

from 1981-1983. He juggled figures to convince the public that Social 

Security was bankrupt, when in fact it had an enormous surplus. These 

figures were then used to fasten onto American workers a huge increase in 

Social Security withholding tax, which invoked David Ricardo's economic 

dictum of the iron law of wages, that workers could only be paid a 
subsistence wage, and any funds beyond that must be extorted from them 

forcibly by tax increases. As a partner of J.P. Morgan Co. since 1977, 

Greenspan represented the unbroken line of control of the Federal Reserve 

System by the firms represented at the secret meeting on Jekyll Island in 

1910, where Henry P. Davison, righthand man of J.P. Morgan, was a key 

figure in the drafting of the Federal Reserve Act. Within days of taking over 

as chairman of the Federal Reserve Board, Greenspan immediately raised 

the interest rate on Sept. 4, 1987, the first such increase in three years of 

general prosperity, and precipitated the stock market crash of Oct., 1987, 

Black Monday, when the Dow Jones average plunged 508 points. Under 

Greenspan's direction, the Federal Reserve Board has steadily nudged the 

United States deeper and deeper into recession, without a word of criticism 

from the complaisant members of Congress. 

COLONEL EDWARD MANDELL HOUSE (1858-1938) 

Son of a Rothschild agent in Texas. Succeeded in electing five consecutive 
governors of Texas; became Woodrow Wilson's advisor in 1912. Cooperated 
with Paul Warburg to get the Federal Reserve Act passed by Congress in 
1913. 

ROBERT MARION LAFOLLETTE (1855-1925) 

Served in Senate from Wisconsin 1905-25. Led agrarian reformers in 
opposing Eastern bankers and their plans for the Federal Reserve Act. Ran 
for President in 1924 on Progressive-Socialist ticket. 

CHARLES AUGUSTUS LINDBERGH, SR. (1860-1924) 

Congressman from Minnesota (1907-1917) who led the fight against 
enactment of the Federal Reserve Act in 1913. He served until 1917 when he 
resigned to run for governor of Minnesota. He ran a good campaign despite 
adverse newspaper attacks led by The New York Times. His campaign was 
adversely affected when Federal agents burned his books, including Why Is 
Your Country At War? and the papers and contents of his home office in 
Little Falls, Minnesota. 

LOUIS T. McFADDEN (1876-1936) 



211 
Congressman and Chairman of the House Banking and Currency Committee, 
1927-33; courageously opposed the manipulators of the Federal Reserve 
System in the 1920's and the 1930's. Introduced bills to impeach Federal 
Reserve Board of Governors and allied officials. After three attempts on his 
life, he died mysteriously. 

JOHN PIERPONT MORGAN (1837-1913) 

Considered the dominant American financier at the turn of the century. 
Who's Who in 1912 stated he "controls over 50,000 miles of railroads in the 
United States." Organized United States Steel Corporation. Became 
representative of House of Rothschild through his father, Junius S. Morgan, 
who had become London partner of George Peabody & Company, later 
Junius S. Morgan Company, a Rothschild agent. John Pierpont Morgan, Jr. 
succeeded his father as head of the Morgan empire. 

DAVID MULLINS (1946- ) 

Appointed Governor of the Federal Reserve Board May 21, 1990, David 
Mullins' term runs to Jan. 31, 1996. He was recently nominated to serve as 
Vice Chairman of the Federal Reserve Board, and served as Assistant 
Secretary of the Treasury for Domestic Finance 1988-90, receiving the 
department's highest award, the Alexander Hamilton Award, for his service 
in such programs as synthetic fuels, federal finance, Farm Credit Assistance 
Board, and author of the President's Plan for rescuing the savings and loan 
institutions. He is a distant cousin of the author, descended from John 
Mullins, the first recorded settler in the western area of Virginia, hero of the 
battle of King's Mountain, and recipient of a 200 acre grant of land for his 
service in the American Revolution. 

WRIGHT PATMAN (1893-1976) 

Congressman and Chairman of the House Banking and Currency Committee 
1963-74. Led the fight in Congress to stop the manipulators of the Federal 
Reserve System from 1937 to his death in 1976. 

CONGRESSMAN ARSENE PUJO 

Served in Congress 1903-1913. Democrat from Louisiana. Chairman of 
House Banking and Currency Committee. Chairman of "Pujo Hearings" 
Subcommittee, 1912. 

SIR GORDON RICHARDSON (1915- ) 

Head of the Bank of England since 1973. Chairman J. Henry Schroder 
Wagg, London, 1962-72; director of J. Henry Schroder Banking 
Corporation, New York; Schroder Banking Corporation, New York; Lloyd's 
Bank, London; Rolls Royce. 



212 
JACOB SCHIFF (1847-1920) 

Born in Rothschild house in Frankfurt, Germany. Emigrated to United 
States, married Therese Loeb, daughter of Solomon Loeb, founder of Kuhn, 
Loeb and Co. Schiff became senior partner of Kuhn, Loeb and Co., and as 
representative of Rothschild interests gained control of most of railway 
mileage in United States. 

BARON KURT VON SCHRODER (1889- ) 

Adolph Hitler's personal banker, advanced funds for Hitler's accession to 
power in Germany in 1933; German representative of the London and New 
York branches of J. Henry Schroder Banking Corporation; SS Senior Group 
Leader; director of all German subsidiaries of I.T.T; Himmler's Circle of 
Friends; advisor to board of directors, Deutsche Reichsbank (German 
central bank). 

ANTHONY MORTON SOLOMON (1919- ) 

Educated at Harvard, economist Office of Price Administration, 1941-42; 
financial mission to Iran, 1942-46; Agency for international Development 
South America, 1965-69; president international Investment Corporation for 
Yugoslavia 1969-72; advisor to Chairman, Ways and Means Committee, 
House of Representatives, 1972-73; Undersecretary Monetary Affairs, U.S. 
Treasury, 1977-80; president Federal Reserve Bank of New York, 1980- 

SAMUEL UNTERMYER (1858-1940) 

A partner of the law firm of Guggenheimer and Untermyer of New York, 
who conducted the "Pujo Hearings" of the House Banking and Currency 
Committee in 1912. Counsel for Rogers and Rockefeller in many large suits 
against F. Augustus Heinze, Thomas W Lawson and others. Earned a single 
fee of $775,000 for handling merger of Utah Copper Company. Reported in 
The New York Times May 26, 1924 as urging immediate recognition of 
Soviet Russia at Carnegie Hall meeting. Untermyer' s prestige and power is 
illustrated by the fact that this front page obituary in The New York Times 
covered six columns. His listing in Who's Who was the longest for thirteen 
years. 

FRANK VANDERLIP (1864-1937) 

Assistant Secretary of Treasury 1897-1901; won prestige for financing 
Spanish American War by floating $200,000,000 in bonds during his 
incumbency for what is known as "National City Bank's War" President of 
National City Bank 1909-19. One of the original Jekyll Island group who 
wrote Federal Reserve Act in November, 1910. No mention of this important 
fact is made in extensive obituary in The New York Times, June 30, 1937. 



213 
GEORGE SYLVESTER VIERECK (1884-1962) 

Author of the definitive study The Strangest Friendship in History, 
Woodrow Wilson and Col. House, Liveright, 1932. A leading poet of the 
early 1900's, reviewed on the front page of The New York Times Book 
Review, and known as the leading German-American citizen of the United 
States. 

PAUL VOLCKER (1927- ) 

Chairman of the Federal Reserve Board of Governors since 1979, appointed 
by President Carter, reappointed by President Reagan for another four year 
term beginning August 6, 1983. Educated at Princeton, Harvard and London 
School of Economics; employed by Federal Reserve Bank of New York, 1952- 
57; Chase Manhattan Bank, 1957-61; Treasury Department, 1961-74; 
president Federal Reserve Bank of New York, 1975-79. 

PAUL WARBURG (1868-1932) 

Conceded to be the actual author of our central bank plan, the Federal 
Reserve System, by knowledgeable authorities. Emigrated to the United 
States from Germany 1904; partner, Kuhn Loeb and Company bankers, 
New York; naturalized 1911. Member of the original Federal Reserve Board 
of Governors, 1914-1918; president Federal Advisory Council, 1918-1928. 
Brother of Max Warburg, who was head of German Secret Service during 
World War I and who represented Germany at the Peace Conference, 1918- 
1919, while Paul was chairman of the Federal Reserve System. 

SIR WILLIAM WISEMAN (1885-1962) 

Partner of Kuhn, Loeb and Company; head of British Secret Service during 
World War I. Worked closely with Col. House dominating the United States 
and England. 



214 

BIBLIOGRAPHY 

Newspapers: 

New York Times 1858-1983 

Washington Post 1933-1983 

Periodicals: 

Barron's Weekly 1921-1983 

Business Week 1929-1983 

Forbes Magazine 1917-1983 

Fortune 1930-1983 

Harper's 1850-1983 

National Review 1955-1983 

Newsweek 1933-1983 

The Nation 1865-1983 

The New Republic 1914-1983 

Time 1923-1983 

Books: 

Current Biography 1940-1983 H.W. Wilson Co., N.Y. 

Dictionary of National Biography, Scribners, N.Y. 1934-1965 

Directory of Directors, London 1896-1983 

Directory of Directors In The City of New York 1898-1918 

The Concise Dictionary of National Biography, 1903-1979, Oxford University 

Press 
Congressional Record 1910-1983 

International Index to Periodicals 1920-1965, H.W. Wilson Co., N.Y. 
Poole's Index to Periodical Literature 1802-1906, Wm. T Poole, Chicago 
Readers Guide to Periodicals 1900-1983 



215 
Rand McNally's Bankers Guide 1904-1928 

Moody's Banking and Finance 1928-1968 

Who's Who in America 1890-1983, A.N. Marquis Co. 

Who's Who, Great Britain 1921-1983 

Who Was Who In America 1607-1906, A.N. Marquis Co. 

Who's Who in the World 1972-1983, A.N. Marquis Co. 

Who's Who in Finance and Industry 1936-1969, A.N. Marquis Co. 

Standard and Poor's Register of Directors 1928-1983 

Senate Committee Hearings on Federal Reserve Act, 1913 

House Committee Hearings on Federal Reserve Act, 1913 

House Committee Hearings on the Money Trust (Pujo Committee) 1913 

House Investigation of Federal Reserve System, 1928 

Senate Investigation of Fitness of Eugene Meyer to be a Governor of the 
Federal 

Reserve Board, 1930 

Senate Hearings on Thomas B. McCabe to be a Governor of the Federal 
Reserve 

System, 1948 

House Committee Hearings on Extension of Public Debt, 1945 

Federal Reserve Directors: A Study of Corporate and Banking Influence. 

Staff Report, Committee on Banking, Currency and Housing, House of 

Representatives, 94th Congress, 2d Session, August, 1976. 

The Federal Reserve System, Purposes and Functions, Board of Governors, 
1963 

A History of Monetary Crimes, Alexander Del Mar, the Del Mar Society, 
1899 

Fiat Money Inflation in France, Andrew Dickson White, Foundation for 

Economic Education, N.Y. 1959 



216 
The War on Gold, Antony C. Sutton, 76 Press, California, 1977 

Wall Street and the Rise of Hitler, Antony C. Sutton, 76 Press, California, 
1976 

Collected Speeches of Louis T McFadden, Congressional Record 

The Truth About Rockefeller, E.M. Josephson, Chedney Press, N.Y. 1964 

The Strange Death of Franklin D. Roosevelt, E.M. Josephson, Chedney 
Press, 

N.Y. 1948 

Behind the Throne, Paul Emden, Hoddard Stoughton, London, 1934 

The Money Power of Europe, Paul Emden, Hoddard Stoughton, London 

The Robber Barons, Mathew Josephson, Harcourt Brace, N.Y. 1934 

The Rothschilds, Frederic Morton, Curtis Publishing Co., 1961 

The Magnificent Rothschilds, Cecil Roth, Robert Hale Co., 1939 

Pawns In The Game, William Guy Carr, (privately printed), 1956 

Tearing Away the Veils, Francois Coty, Paris, 1940 

Writers on English Monetary History, 1626-1730, London, 1896 

The Federal Reserve System After Fifty Years, Committee on Banking and 

Currency, Jan., Feb. 1964 

The Bankers' Conspiracy, Arthur Kitson, 1933 

Laws Of The United States Relating to Currency, Finance and Banking 
From 

1789 to 1891, Charles F. Dunbar, Ginn & Co., Boston, 1893 

Monetary Policy of Plenty Instead of Scarcity, Committee on Banking and 

Currency, 1937-1938 

The Strangest Friendship In History, Woodrow Wilson and Col. House, 
George 

Sylvester Viereck, Liveright, N.Y. 1932 

Federal Reserve Policy Making, G.L. Bach, Knapf, N.Y. 1950 



217 
Rulers of America, A Study of Finance Capital, Anna Rockester, International 

Publishers, N.Y. 1936 

Banking in the United States Before the Civil War, National Monetary 

Commission, 1911 

National Banking System, National Monetary Commission, 1911 

The Federal Reserve System, Paul Warburg, Macmillan, N.Y. 1930 

Roosevelt, Wilson and the Federal Reserve Law, Col. Elisha Garrison, 

Christopher Publishing House, Boston, 1931 

Men Who Run America, Arthur D. Howden Smith, Bobbs Merrill, N.Y., 
1935 

Financial Giants of America, George E Redmond, Stratford, Boston, 1922 

The Great Soviet Encyclopaedia, Macmillan, London, 1973 

Encyclopaedia Britannica, 1979 

Encyclopaedia Americana, 1982 

Dope, Inc., Goldman, Steinberg et at, New Benjamin Franklin House 
Publishing 

Company, N.Y. 1978 

Banking and Currency and the Money Trust, Charles A. Lindbergh, Sr. 1913 

The Strange Career of Mr. Hoover Under Two Flags, John Hamill, William 
Faro, 

N.Y. 1931 

The Federal Reserve System, H. Parker Willis, Ronald Co., 1923 

A.B.C. of the Federal Reserve System, E.W. Kemmerer, Princeton Univ., 
1919 

Adventures in Constructive Finance, Carter Glass, Doubleday, N.Y. 1927 

Banking Reform in the United States, Paul Warburg, Columbia Univ., 1914 

U.S. Money vs. Corporation Currency, Alfred Crozier, Cleveland, 1912 

Philip Dru, Administrator, E.M. House, B.W. Huebsch, N.Y. 1912 



218 
The Intimate Papers of Col. House, edited by Charles Seymour, 4 v. 1926-1928, 

Houghton Mifflin Co. 

The Great Conspiracy of the House of Morgan, H.W. Loucks, 1916 

Capital City, McRae and Cairncross, Eyre Methuen, London, 1963 

Aggression, Otto Lehmann-Russbeldt, Hutchinson, London, 1934 

The Empire of High Finance, Victor Perlo, International Pub., 1957 

Memoirs of Max Warburg, Berlin, 1936 

Letters and Friendships of Sir Cecil Spring-Rice 

Tragedy and Hope, Carroll Quigley, Macmillan, N.Y. 

The Politics of Money, Brian Johnson, McGraw Hill, N.Y. 1970 

A Primer on Money, House Banking and Currency Committee, 1964 

Pierpont Morgan and Friends, The Anatomy of A Myth, George Wheeler, 

Prentice Hall, N.J., 1973 

Pierpont Morgan, Herbert Satterleee, Macmillan, N.Y., 1940 

Morgan the Magnificent, John K. Winkler, Vanguard, N.Y., 1930 

Wilson, Arthur Link (5 vol.) Princeton University Press, Princeton, N.J. 

Historical Beginning... The Federal Reserve, Roger T Johnson, Federal 
Reserve 

Bank of Boston, 1977 (7 printings, 1977-1982, totaling 92,000 copies.) [It 

is noteworthy that this 64 page booklet makes no mention of Jekyll Island, 

Paul Warburg's authorship, or source of promotion funds which resulted 

in enactment of the Federal Reserve Act on December 23, 1913.] 

The Federal Reserve and Our Manipulated Dollar, Martin A. Larson, Devin 
Adair 

Co., Old Greenwich, Conn., 1975 

Chain Banking, Stockholder and Loan Links of 200 Largest Member Banks, 

House Banking and Currency Committee, Jan. 3, 1963 

International Banking, Staff Report, Committee on Banking Currency and 



219 
Housing, May 1976 

Audit of the Federal Reserve System, Hearings Before the House Banking 
and 

Currency Committee, 1975. 



220 



INDEX 



A Abbot, Lawrence~22 Adams, John Quincy~48 
Aldrich, Nelson-1, 2, 3, 6, 7, 8, 9, 10, 11, 19, 21, 
22, 30, 33, 36 Aldrich-Vreeland Emergency 
Currency Bill- 12, 19, 20, 22 Allen, W.H.-33 
American Acceptance Council~128 American 
Bankers Association~13, 127 American Relief 
Administration— 74, 78 Andrew, A. Piatt~l 
Astor, John Jacob— 64, 65 Auchincloss, Gordon— 
107 B Bagdikian, Ben H.--61 Baker, George F.~ 
16, 42, 43, 47, 66, 67 Baker, George F., Jr.-66 
Bank of England-32, 42, 51, 52, 58, 59, 68, 69, 
80, 123, 129, 131, 133, 142, 146, 180 Bank of 
France-32, 135 Banking Act of 1935-29, 159 
Barnes, Julius— 73, 74 Barron, Clarence W.~ 30 
Baruch, Bernard-17, 26, 28, 74, 86, 89, 90, 94, 
99, 109, 111, 112, 139, 147, 151 Bechtel 
Corporation— 77, 79 Belgian Relief Commission— 
69, 70, 72, 73, 74, 78, 83 Belmont, August-53 
Biddle, Nicholas-6, 50 Bilderbergers-54, 172 
Bleichroder, Samuel— 59 Blumenthal, George— 14 



Brandeis, Justice Louis— 87, 109 Bristow, 
Senator— 38 Brookhart, Senator— 117 Brown, 
Alexander— 49 Alex Brown & Son— 49 Brown 
Brothers Bankers— 22, 49, 131 Brown Brothers 
Harriman-22, 48, 49, 61, 68, 79, 131, 171, 172, 
175 Brown Shipley & Company— 49, 68 Bryan, 
William Jennings-26, 29, 82, 83, 118 Bull Moose 
Party— 18 Bush, George— 49 Bush, Prescott— 49 
Byrnes, James— 17 C Canaris, Admiral— 62 Carr, 
William Guy-53, 55 Carter, Jimmy-171, 172, 
173 Cassel, Ernest-59 Cavell, Edith-72, 73 
Central Bank— 5 Chamberlain, Neville— 78 
Churchill, Winston-78, 123 Clark, Champ-29 
Clay, John— 182 Clews, Henry— 50 Cooper, Kent- 
-60 Council on Foreign Relations— 35, 54, 81, 172 
Crissinger, D.R.— 141 Cromwell, Oliver— 58 
Crozier, Alfred-20 D Dabney, Charles H.--50, 51 
Davison, Daniel— 63 



Davison, Henry P.--1, 2, 4, 33, 43, 44, 66, 103 
Debs, Eugene-105 Delano, F.A.--36, 114 Delano, 
Warren-36 Dodge, Cleveland H.--103, 105 
Drexel, Anthony— 53 Drexel & Company— 48, 54 
Dulles, Allen— 62, 75, 76 Dulles, John Foster— 75, 
81 Duncan Sherman Company— 50 E Eccles, 
Marriner-122, 126, 159, 162, 163, 164, 167, 168, 
169 Eisenhower, Dwight D.--75, 81 Ellery, 
William-48 Emden, Paul-36, 60 F Federal 
Advisory Council-6, 19, 40, 41, 42, 43, 44, 45, 
113, 116, 117, 119, 128, 129, 144 Federal Reserve 
Act-7, 9, 15, 16, 18, 19, 21, 23, 26, 27, 28, 29, 30, 
31, 33, 34, 35, 40, 45, 64, 82, 125, 126, 139, 162, 
168, 171 Federal Reserve Banks-6, 8, 34, 35, 40, 

41, 44, 83 Federal Reserve Board of Governors— 
6, 14, 19, 23, 29, 31, 32, 34, 35, 36, 37, 38, 39, 41, 

42, 44, 45, 64, 78, 86, 87, 95, 112, 119, 124, 125, 
126 128, 129, 133, 139, 140, 143, 144, 145, 146, 
149, 154, 157, 159, 162, 163, 165, 169, 171, 172, 
180 Federal Reserve System-5, 6, 7, 8, 19, 21, 29, 
30, 32, 35, 40, 41, 42, 43, 63, 67, 82, 84, 113, 114, 
115, 118, 119, 120, 121, 122, 127, 128, 132, 134, 
139, 140, 141, 143, 146, 158, 162, 163, 164, 165, 
166, 168, 169, 170, 176, 180 



Ferdinand, Archduke— 69 First Name Club— 3, 8, 
33 First National Bank of N.Y.-l, 34, 41, 42, 44, 
47, 64, 66, 67 Forbes, B.C.--2, 7 Forbes, Malcom- 
-2 Forgan, James B.— 41, 42 Frame, Andrew— 13, 
14 Francqui, Emile-69, 70, 71, 72 G Garfield, 
James A.--20 Garrison, Col. Ely-22, 23, 120 
Gates, Thomas S.--48 Glass, Carter-13, 14, 19, 
21, 22, 29, 30, 34, 40, 45, 114, 116, 117, 138, 160 
Glass-Steagall Banking Act— 159 Goldenweiser, 
Emanuel— 118, 136, 146, 148 Graham, Katherine- 
-97 Gray, Prentiss~73, 78 Guggenheim~90 H 
Hamill, John— 69, 70 Hamilton, Alexander— 5 
Hamlin, Charles S.--36, 129, 138, 147 Hanauer, 
Jerome J. -87, 95, 99 Harding, W.P.G.-36, 103, 
121, 157 Harriman, E.H.--67, 90 Harriman, 
Mary— 67 Harrison, George L.— 132 Herrick, 
Myron T.--117 Hess, Rudolf~78 Hill, James J.~ 
47 Hiss, Alger-24, 83 Hiss, Donald-24 Hitler, 
Adolf-75, 76, 77, 78, 79, 81 Hoover, Herbert H.~ 
69, 70, 71, 72, 73, 74, 78, 139, 149, 150, 151, 158 
House, Col. Edward Mandel~21, 23, 24, 25, 26, 
27, 29, 30, 31, 36, 79, 88, 107, 109, 111 Hull, 
Cordell-84 



221 



I International Acceptance Bank— 128, 144 
Insull, Samuel--148 J Jackson, Andrew~5, 50 
Jaffray, C.T.--43 James, F. Cyril~42 Jefferson, 
Thomas-5, 7, 35 Jekyll Island-2, 3, 4, 5, 8, 9, 10, 
11, 12, 20, 29, 33, 41, 44, 171 Jekyll Island Club- 
3 Jones, Thomas D.— 36, 38, 39 Josephson, 
Matthew-60, 67 Juillard, A.D.-67 K Kahn, 
Otto-19, 38, 66, 107 Kains, Archibald-43 
Kaiping Coal Mines~70 Kemmerer, E.W.--85, 
124 Kreuger, Ivar-71, 148, 149 Kuhn, Loeb 
Company-1, 17, 18, 21, 33, 35, 36, 37, 38, 39, 41, 
44, 47, 48, 61, 66, 67, 71, 72, 74, 81, 83, 85, 86, 87, 
88, 89, 99, 101, 103, 119, 127, 128, 146, 174, 175 L 
LaFollette, Senator Robert M.--16, 17, 18 
Lamont, T.W.--2, 109, 111, 128 Laughlin, J. 
Lawrence~10, 11, 33 Lazard Freres— 14, 34, 53, 
61, 68, 74, 76, 94, 99, 152 League of Nations-136, 
143, 170 Leguia, Juan~155 Lehman, Herbert— 
101 Lehman Brothers~35, 66, 101, 175 Lincoln, 
Abraham— 20, 65 Lindbergh, Charles A., Sr.— 11, 
16, 17, 18, 28, 112 Loeb, Solomon-33 Lovett, 
Robert~48 Lundberg, Ferdinand— 32 



Manati Sugar Corporation—73, 80, 81 Marbury, 
Bessie— 155 Markoe, James —131 Marshall, 
Louis-29 Martin, William McChesney-163 
McAdoo, William-19, 21, 26, 29, 32, 39, 99, 101, 
114 McFadden, Louis-71, 72, 74, 75, 95, 127, 
128, 133, 134, 135, 136, 137, 150, 151, 152, 153, 
154 Mcintosh, J.W.-103 Mellon, Andrew-142, 
147, 150 Meyer, Eugene-14, 17, 34, 61, 72, 74, 
75, 94, 95, 99, 118, 122, 150, 151, 152, 153, 159, 
171 Miller, Adolph C.--36, 129, 133, 134, 135, 
136, 157, 166 Minsky-67 Money Trust-11, 12, 
16 Montague, Samuel & Co.-38, 68 Moody, 
John—47, 52 Morgan Grenfell Company— 63, 68 
Morgan Harjes Company—54 Morgan, J.P.— 1, 2, 
3, 10, 16, 17, 18, 26, 32, 35, 41, 42, 43, 44, 47, 48, 
49, 50, 51, 52, 53, 54, 66, 67, 75, 83, 101, 129, 146, 
150, 160, 174, 176 Morgan, J.P. Company-1, 33, 
35, 41, 47, 48, 53, 66, 123, 148, 174 Morgan, 
Joseph— 51 Morgan, Junius S.— 50, 51, 53, 65, 66 
Morton, Frederic— 56 Morton, Levi P.— 67 
Mountbatten, Philip~60 N Napoleon de 
Bonaparte-57 Nation, The-12, 16, 19, 30, 37 
National Bank Act of 1864-125 National 
Citizen's League— 10, 11 National City Bank— 21, 
33, 34, 41, 64, 65, 66, 112, 126, 127 National 
Monetary Commission— 1, 



4, 5, 10, 11, 12, 13, 14, 15, 33, 124, 125 National 
Recovery Act— 159, 168 National Reserve Plan— 7 
New York Times-27, 28, 29, 33, 35, 37, 40, 44, 
61, 71, 74, 75, 80, 112, 119, 126, 144, 166, 171 
Norman, Lord Montagu-49, 76, 77, 123, 129, 
131, 132, 133, 142, 150 Norten, Charles D.--1, 33 
O O'Gorman, Senator— 14, 38 Owen, Robert L.— 
17, 19, 29, 38, 39, 40, 41, 116, 119, 138, 157, 161 
Owen-Glass Bill— 21 P Page, Walter Hines-83 
Panic of 1837-5, 50, 51, 65 Panic of 1857-51, 52, 
65 Panic of 1907-1, 2, 5, 10, 12, 21 Paterson, 
William-58, 59 Patman, Wright-34, 164, 165, 
167 Peabody, George-49, 50, 51, 52, 54, 65, 171 
Peabody, Riggs & Co.— 49 Pegler, Westbrook— 23 
Pemberton, Robert Leigh— 80 Pound, Ezra— 58 
Pressman, Lee— 24 Princeps, Gavrel— 69 Pujo, 
Arsene— 16 Pujo Committee— 16, 17, 18, 149 
Pyne, Moses Taylor— 66 Pyne, Percy— 65, 66 Q 
Quigley, Dr. Carrol— 53, 131 R Reagan, Ronald— 
77, 79, 80, 173, 175 Reichsbank-12, 132 Rhodes, 
Cecil-53 



Richardson, Sir Gordon— 80 Rickard, Edgar— 74 
Rionda, M.E.-73 Rockefeller, David-171, 172, 
176 Rockefeller, John D.--47, 65 Rockefeller, 
William-47, 65 Rockefeller, William, Jr.-65 
Roosa, Robert— 54, 171, 172 Roosevelt, Franklin 
Delano-23, 24, 30, 31, 84, 129, 137, 139, 145, 151, 
155, 156, 158, 159, 162, 169, 170 Roosevelt, 
Theodore-1, 18, 19, 22, 38, 82 Rosebury, Lord- 
53 Rothschild, Baron Alfred-23, 60 Rothschild, 
House of-17, 47, 48, 50, 52, 53, 54, 60 Rothschild, 
James-5, 50, 57, 59, 61, 66, 109 Rothschild, 
Leopold— 60 Rothschild, Mayer Amschel— 55, 56 
Rothschild, N.M.-48, 49, 51, 53, 57, 58, 59, 68, 
171 Round Table-53, 54, 62 Rowe, W.S.-43, 70 
Rue, Levi L.~ 42 Ryan, John Barry— 66 Ryan, 
Thomas Fortune— 66 Ryan, Virginia Fortune— 66 
S Schiff, Jacob-17, 19, 26, 29, 42, 47, 66, 67, 86, 
87, 90, 149 Schiff, John-66 Schiff, Ludwig-87 
Schiff, Philip-87 Schoellkopf Family-34 
Scholey, David— 182 Schroder, Baron Bruno 
Von— 69, 76 Schroder, Baron Rudolph Von— 76 
Schroder, J. Henry Co.-48, 67, 68, 69, 71, 73, 74, 
75, 76, 77, 78, 79, 80, 81, 175, 176, 179, 180 
Schultz, George-79 Seligman, E.R.A.-9 
Seligman, J. & W.--9, 17, 71, 109, 114, 155 



222 



Seymour, Charles~31 Shaw, Leslie~14 Shelton-- 
1, 2 Simpson, John Lowery~78 Smith, Rixey~29, 
112 Sontag, Susan-61 Sprague, O.M.W.-ll, 
114, 161 Spring-Rice, Sir Cecil-89 St. George, 
George F.--66 St. George, Katherine~66 Sterling, 
John W.--66 Stillman, Don Carlos~65 Stillman, 
James— 8, 47, 65, 66 Stimson, Henry L.--161 
Stone, Senator-21 Strauss, Albert-112, 114, 122, 
140, 141, 157 Strong, Benjamin-1, 3, 32, 33, 44, 
118, 123, 129, 131, 132, 133, 137, 138 Sugar 
Equalization Board~74 Swinney, E.F.--43 T 
Taft, William Howard-18, 19, 38, 82 Taylor, 
Congressman~14 Taylor, H.A.C.— 66 Taylor, 
Moses-64, 65, 66 Tavistock Institute-80, 184, 
185 Thalmman, Ladenburg~17 Tiarks, Frank 
Cyril-69, 73, 76, 77 Tientsin Railroad-72 
Tobacco Trust— 89 Trilateral Commission— 35, 
54, 172 Tugwell, Rexford Guy-162 U 
Untermeyer, Samuel—17, 18 U.S. Food 
Administration—73, 74, 78, 87 V Vanderlip, 
Frank-1, 2, 3, 8, 9, 19, 33, 44, 161 



Vickers Sons & Maxim—60 Viereck, George— 23, 

25, 27 Volcker, Paul-34, 171, 172, 173, 183 
Vreeland, Edward—12 W War Finance 
Corporation-24, 86, 94, 95, 97, 99, 151, 153 War 
Industries Board-74, 86, 90, 151 Warburg, 
Felix-38, 86, 87, 128, 129 Warburg, James Paul- 
128, 129, 156, 161 Warburg, M.M. Company-12, 
17, 34, 54 Warburg, Max-84, 86, 87, 88, 111 
Warburg, Paul Moritz-1, 2, 3, 4, 5, 6, 7, 8, 9, 12, 
14, 19, 21, 22, 23, 24, 26, 28, 29, 30, 33, 34, 36, 37, 
38, 40, 41, 42, 43, 44, 48, 66, 71, 74, 84, 86, 87, 88, 
89, 99, 111, 112, 115, 117, 119, 120, 122, 126, 127, 
128, 138, 144, 148, 156, 157, 164 Weinberger, 
Caspar~79 Wetmore, Frank 0.--42 White, 
Harry Dexter— 24 Williams, John Skelton— 21, 32, 
39, 101, 103, 140 Willis, H. Parker-132, 140, 142 
Wilson, Woodrow-10, 17, 18, 19, 22, 23, 24, 25, 

26, 28, 29, 30, 32, 36, 38, 39, 41, 82, 83, 84, 85, 86, 
87, 88, 89, 90, 99, 101, 103, 105, 107, 109, 111, 
112, 117, 137, 139, 140, 141, 156 Wing, Daniel S.- 
-43 Wiseman, Sir William-73, 88, 105, 107, 111 

Z Zabriskie, G.A.--73, 74 



223 

Questions and Answers 

While lecturing in many countries, and appearing on radio and television 

programs as a guest, the author is frequently asked questions about the 

Federal Reserve System. The most frequently asked questions and the 

answers are as follows: 

Q: What is the Federal Reserve System? 

A: The Federal Reserve System is not Federal; it has no reserves; and it is 
not a system, but rather, a criminal syndicate. It is the product of criminal 
syndicalist activity of an international consortium of dynastic families 
comprising what the author terms "The World Order" (see "THE WORLD 
ORDER" and "THE CURSE OF CANAAN", both by Eustace Mullins). The 
Federal Reserve system is a central bank operating in the United States. 
Although the student will find no such definition of a central bank in the 
textbooks of any university, the author has defined a central bank as follows: 
It is the dominant financial power of the country which harbors it. It is 
entirely private-owned, although it seeks to give the appearance of a 
governmental institution. It has the right to print and issue money, the 
traditional prerogative of monarchs. It is set up to provide financing for 
wars. It functions as a money monopoly having total power over all the 
money and credit of the people. 

Q: When Congress passed the Federal Reserve Act on December 23, 1913, 
did the Congressmen know that they were creating a central bank? 

A: The members of the 63rd Congress had no knowledge of a central bank or 
of its monopolistic operations. Many of those who voted for the bill were 
duped; others were bribed; others were intimidated. The preface to the 
Federal Reserve Act reads "An Act to provide for the establishment of 
Federal reserve banks, to furnish an elastic currency, to afford means of 
rediscounting commercial papers, to establish a more effective supervision of 
banking in the United States, and for other purposes." The unspecified 
"other purposes" were to give international conspirators a monopoly of all 
the money and credit of the people of the United States; to finance World 
War I through this new central bank, to place American workers at the 
mercy of the Federal Reserve system's collection agency, the Internal 
Revenue Service, and to allow the monopolists to seize the assets of their 
competitors and put them out of business. 

Q: Is the Federal Reserve system a government agency? 

A: Even the present chairman of the House Banking Committee claims that 
the Federal Reserve is a government agency, and that it is not privately 
owned. The fact is that the government has never owned a single share of 
Federal Reserve Bank stock. This charade stems from the fact that the 



224 
President of the United States appoints the Governors of the Federal Reserve 
Board, who are then confirmed by the Senate. The secret author of the Act, 
banker Paul Warburg, a representative of the Rothschild bank, coined the 
name "Federal" from thin air for the Act, which he wrote to achieve two of 
his pet aspirations, an "elastic currency", read (rubber check), and to 
facilitate trading in acceptances, international trade credits. Warburg was 
founder and president of the International Acceptance Corporation, and 
made billions in profits by trading in this commercial paper. Sec. 7 of the 
Federal Reserve Act provides "Federal reserve banks, including the capital 
and surplus therein, and income derived therefrom, shall be exempt from 
Federal, state and local taxation, except taxes on real estate." Government 
buildings do not pay real estate tax. 

Q: Are our dollar bills, which carry the label "Federal Reserve notes" 
government money? 

A: Federal Reserve notes are actually promissory notes, promises to pay, 
rather than what we traditionally consider money. They are interest bearing 
notes issued against interest bearing government bonds, paper issued with 
nothing but paper backing, which is known as fiat money, because it has only 
the fiat of the issuer to guarantee these notes. The Federal Reserve Act 
authorizes the issuance of these notes "for the purposes of making advances 
to Federal reserve banks... The said notes shall be obligations of the United 
States. They shall be redeemed in gold on demand at the Treasury 
Department of the United States in the District of Columbia." Tourists 
visiting the Bureau of Printing and Engraving on the Mall in Washington, 
D.C. view the printing of Federal Reserve notes at this governmental agency 
on contract from the Federal Reserve System for the nominal sum of .00260 
each in units of 1,000, at the same price regardless of the denomination. 
These notes, printed for a private bank, then become liabilities and 
obligations of the United States government and are added to our present $4 
trillion debt. The government had no debt when the Federal Reserve Act was 
passed in 1913. 

Q: Who owns the stock of the Federal Reserve Banks? 

A: The dynastic families of the ruling World Order, internationalists who are 
loyal to no race, religion, or nation. They are families such as the 
Rothschilds, the Warburgs, the Schiffs, the Rockefellers, the Harrimans, the 
Morgans and others known as the elite, or "the big rich". 

Q: Can I buy this stock? 

A: No. The Federal Reserve Act stipulates that the stock of the Federal 
Reserve Banks cannot be bought or sold on any stock exchange. It is passed 
on by inheritance as the fortune of the "big rich". Almost half of the owners 
of Federal Reserve Bank stock are not Americans. 



225 
Q: Is the Internal Revenue Service a governmental agency? 

A: Although listed as part of the Treasury Department, the IRS is actually a 
private collection agency for the Federal Reserve System. It originated as the 
Black Hand in mediaeval Italy, collectors of debt by force and extortion for 
the ruling Italian mob families. All personal income taxes collected by the 
IRS are required by law to be deposited in the nearest Federal Reserve Bank, 
under Sec. 15 of the Federal Reserve Act, "The moneys held in the general 
fund of the Treasury may be ....deposited in Federal reserve banks, which 
banks, when required by the Secretary of the Treasury, shall act as fiscal 
agents of the United States." 

Q: Does the Federal Reserve Board control the daily price and quantity of 
money? 

A: The Federal Reserve Board of Governors, meeting in private as the 
Federal Open Market Committee with presidents of the Federal Reserve 
Banks, controls all economic activity throughout the United States by issuing 
orders to buy government bonds on the open market, creating money out of 
nothing and causing inflationary pressure, or, conversely, by selling 
government bonds on the open market and extinguishing debt, creating 
deflationary pressure and causing the stock market to drop. 

Q: Can Congress abolish the Federal Reserve System? 

A: The last provision of the Federal Reserve Act of 1913, Sec. 30, states, "The 
right to amend, alter or repeal this Act is expressly reserved." This language 
means that Congress can at any time move to abolish the Federal Reserve 
System, or buy back the stock and make it part of the Treasury Department, 
or to altar the System as it sees fit. It has never done so. 

Q: Are there many critics of the Federal Reserve beside yourself? 

A: When I began my researches in 1948, the Fed was only thirty-four years 
old. It was never mentioned in the press. Today the Fed is discussed openly in 
the news section and the financial pages. There are bills in congress to have 
the Fed audited by the Government Accounting Office. Because of my 
expose, it is no longer a sacred cow, although the Big Three candidates for 
President in 1992, Bush, Clinton and Perot, joined in a unanimous chorus 
during the debates that they were pledged not to touch the Fed. 

Q: Have you suffered any personal consequences because of your expose of 
the Fed? 

A: I was fired from the staff of the Library of Congress after I published this 
expose in 1952, the only person ever discharged from the staff for political 
reasons. When I sued, the court refused to hear the case. The entire German 
edition of this book was burned in 1955, the only book burned in Europe 



226 
since the Second World War. I have endured continuous harassment by 
government agencies, as detailed in my books "A WRIT FOR MARTYRS" 
and "MY LIFE IN CHRIST". My family also suffered harassment. When I 
spoke recently in Wembley Arena in London, the press denounced me as "a 
sinister lunatic". 

Q: Does the press always support the Fed? 

A: There have been some encouraging defections in recent months. A front 
page story in the Wall Street Journal, Feb. 8, 1993, stated, "The current Fed 
structure is difficult to justify in a democracy. It's an oddly undemocratic 
institution. Its organization is so dated that there is only one Reserve bank 
west of the Rockies, and two in Missouri...Having a central bank with a 
monopoly over the issuance of the currency in a democratic society is a very 
difficult balancing act."