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."
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