Chapter Ten: THE FEDERAL RESERVE TODAY: The Federal Reserve Conspiracy by Antony C. Sutton from archive.org

Chapter Ten: 
THE FEDERAL RESERVE TODAY 



Today in the 1990s the Federal Reserve quietly, and 
protected from any public examination or accounting, continues 
its never challenged monopoly of the money supply. 

Its twofold function is: (a) to regulate the flow of credit and 
money for specific economic objectives, and (b) to supervise 
commercial banks, i.e., mostly itself. 

The central policymaking body of the FRS is the Board of 
Governors appointed by the President and confirmed by the 
Senate. Each of the 12 regional banks has its own directors. These 
are divided into three classes. Class A directors represent the 
banking system, Class B directors represent industry and Class C, 
the public, supposedly. 

In fact, Class C directors have never represented the public. 
It is not at all unusual for a banker to serve a term as a Class A 
director then go on and serve another term as a Class C director. 

The Federal Reserve is a private system owned by the banks 
(see figure below). Fed control over money is a private monopoly 
granted by Congress. 

It's so powerful that no Congressman dare ask simple 
questions. 



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The Federal Reserve Conspiracy 

Of course, there is good reason why the Fed doesn't want citizens 
poking around asking questions. It is a moneymaking machine literally 
— and this is freely admitted by the U. S. Government. Here is an 
official statement: 

Where does the Federal Reserve get the money with which 
to create bank reserves'? 

It doesn't "get" the money, it creates it. When the 
Federal Reserve writes a check it is creating money. This can 
result in an increase in bank reserves - a demand deposit or in 
cash. If the customer prefers cash he can demand Federal Reserve 
Notes and the Federal Reserve will have the Treasury Department 
print them. The Federal Reserve is a total moneymaking machine. 
It can issue money or checks. And it never has a problem in 
making its checks good because it can obtain $5 and $10 bills 
necessary to cover its checks simply by asking the Treasury 
Department to print them. (Source: Money Facts, published by the 
Committee on Banking and Currency, 1964, U. S. Congress.) 

Back in 1913 when the Federal Reserve Act was passed, the idea 
of a Federal Reserve System - in effect a central bank - was promoted to 
the American people by both bankers and President Woodrow Wilson 
as an institution outside the control and influence of bankers - on the 
grounds that monetary policy was too important to be left in the hands 
of private interests. However, in fact, the institution is completely 
dominated, and always has been, by major New York bankers. 

The Fed lied! 

The very first meeting of the Federal Reserve Bank of New York 
on October 5, 1914, was held in the offices of the Bank of Manhattan, 
40 Wall Street, New York. Bank of 



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The Federal Reserve Today 

Manhattan later merged with Chase National to become Chase 
Manhattan Bank. 

Skipping intervening history for lack of space, we also find that in 
the mid-1970s, the leading Class A director of the New York Fed was 
none other than Chairman of the Trilateral Commission - David 
Rockefeller. David's term expired in 1976 and he was replaced by the 
chairman of Morgan Guaranty Trust. However, David's influence was 
perpetuated in two ways: by appointment of Trilateral Paul Volcker as 
president of the New York Federal Reserve Bank, a permanent position 
not subject to the necessity of re-election at periodic intervals and 
appointment of G. William Miller (member of the Chase Advisory 
Board) as Chairman of the Federal Reserve System, replacing 
Trilateralist Arthur Burns. 

Moreover, others (of the nine) Federal Reserve Bank of New York 
directors had links to Chase Manhattan Bank. For example, the three 
Class B directors were Maurice F. Granville, Chairman of the board of 
Texaco; William S. Sneath, Chairman of the Board of Union Carbide; 
and John R. Mulhearn, President of New York Telephone. 

Let's look briefly at the career of Paul Volcker, former president of 
the New York Federal Reserve Bank. In 30 years, Volcker has divided 
his time almost equally between the Federal Reserve Bank, Chase 
Manhattan Bank and sub-cabinet positions in Washington, D.C. - a 
perfect example of the so-called "revolving door" and the Trilateral 
objective of "blurring the distinctions between public and private 
institutions" for Trilateral advantage. 

Paul Volcker was born in 1927 in New Jersey. His first degree is 
from Princeton, his M. A. from Harvard and his post-graduate work 
from the London School of Economics -that well known home of 
British socialism. In 1952, straight from the London School of 
Economics, Volcker joined the Federal Reserve Bank of New York as 
an economist. He stayed for five years, until 1957, at which time 
Volcker moved 



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The Federal Reserve Conspiracy 

from Liberty Street to become an economist for Chase Manhattan Bank, 
where he stayed for four years, until 1961. In 1961, Volcker went to the 
Treasury Department in Washington, thus completing the first round of 
his three stop "revolving door." Appointed as Deputy Undersecretary 
for Monetary Affairs, he held that job just long enough to learn the 
ropes in Washington, and returned to New York, to Chase Manhattan 
Bank, as Vice President in charge of Planning. After three years in that 
post, Volcker left in 1969 to become Undersecretary for Monetary 
Affairs at the U. S. Treasury Department. After five years, Volcker 
completed the second round of his "revolving door" with an 
appointment as President of the Federal Reserve Bank of New York. 

Volcker is also a member of the Council on Foreign Relations, the 
Rockefeller Foundation and the American Friends of the London 
School of Economics. 

If Paul Volcker was a solitary phenomenon, we could make no 
case for Trilateral control of the Federal Reserve System. In fact, the 
Volcker phenomenon is one of a dozen parallel situations. 

The Revolving Door Career of Trilateral Paul 
Volcker 

1952-57 Economist, Federal Reserve Bank of New York 1957- 
61 Economist, Chase Manhattan Bank 1962-63 U.S. Treasury 
1963-65 Deputy Undersecretary for Monetary Affairs, 

U.S. Treasury 1965-68 Vice President for Planning, 
Chase Manhattan 

Bank 1969-74 Undersecretary for Monetary Affairs, 
U.S. Treasury 1975 President, Federal 
Reserve Bank of New York 



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The Federal Reserve Today 

The Federal Reserve Board itself is appointed by the President. 

The original Federal Reserve Board represented those very 
interests that Woodrow Wilson assured the American public would not 
be represented in the Federal Reserve System. The Chairman of the 
Board was William G. M'Adoo, a prominent Wall Street figure, former 
Secretary of the Treasury - and Woodrow Wilson's son-in-law. A key 
appointment was Paul M. Warburg, the German banker brains behind 
the Federal Reserve System. The Warburg family controlled the 
Manhattan Bank. Also on the Board was Charles S. Hamlin, of the 
Carnegie Endowment for International Peace. Another member of the 
original board was banker W. P. G. Harding. Franklin D. Roosevelt's 
uncle, Frederic A. Delano, was Vice Governor of the board - very 
appropriate because the "liberal" Roosevelts came from an old-time 
New York banking family. John Skelton Williams, President of the 
Richmond Trust Company was another member. Thus, the initial 
makeup of the original Board of Governors reflected the elite and the 
banking interests and from that time on the Federal Reserve System has 
continued to reflect those interests. 

Trilateral Arthur M. Burns was Chairman of the Board from 1970 
to 1978, a dominant voice who pretty much dictated Federal Reserve 
policy. According to Board member and Trilateral Andrew Brimmer, 
"Arthur Burns has had a direct hand in selecting every board member. " 

Trilateral dominance of the domestic monetary system suggests 
we examine Trilateral world order objectives for a possible linkage. 

Trilateral policy makers and analysts fully realize that the world 
monetary system, with created money as reserve assets, is in a state of 
collapse. The Triangle Papers dealt with the world monetary systems 
(Towards a Renovated World Monetary System), and was authored by 
Richard N. Cooper 



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The Federal Reserve Conspiracy 

(later Undersecretary of State for Economic Affairs). Motoo Kaji, 
Professor of Economics at Tokyo University (author of a book in 
Japanese, Gendai No Kokusai Kinyu - Contemporary International 
Monetary Affairs) and Claudio Segre, a French banker with Compagnie 
Europeenne de Placements. 

Triangle Paper No. 1 identified two world problems: (a), how to 
achieve full employment without "rapid" inflation, and (b), how to 
combine "managed" national economies into a "mutually beneficial 
world economy." 

It is vital to hold Trilateralist assumptions in mind. Trilateralists 
are not looking for a solution to the world monetary problems: 
Trilateralists are looking for a "solution" consistent with, and which 
will promote, their own objectives. These objectives are: (a), a managed 
economy, i.e., managed by Trilaterals; and (b), a "new world order" of 
these managed economies. 

Once again we find manipulation of a problem to achieve 
Trilateral objectives. Almost on a daily basis we find reflections of the 
struggle to keep a hold on the U.S. monetary system in order to achieve 
a world federal reserve system. 

Fed Monetizes Foreign Debt 

In the early 1980s the Fed, through Paul Volcker, conned 
Congress into another vast expansion of monetary credit through 
monetization of foreign debt instruments. 

The so-called Depository Institutions Deregulation and Monetary 
Control Act of 1980 is a total misnomer. In practice it brings all banks 
under Fed control whether they like it or not and gives the Fed power to 
vastly increase fiat money by monetizing foreign debt, much of it 
worthless (see attached reproduction from the Bill). 

Once again the Fed did everything possible to avoid publicity. 
Only one Congressman, Dr. Ron Paul, spotted the clause to monetize 
foreign debt. To avoid any publicity, the 



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The Federal Reserve Today 

Chairman of the Banking Committee quickly agreed to Paul's request to 
remove the clause: "You want it removed? We'll take it out." 

Then we get a repeat of the unconstitutional conduct surrounding 
the 1913 FRS Act. The House voted for the Bill without the clause - but 
in Conference Committee it was quietly re-inserted and became part of 
the Act as finally approved by both Houses. We doubt any 
Congressman knew what was included in the bill as finally passed - 
that's the influence of the Fed today. 

Quietly, without fanfare - and with the vast bulk of citizens 
unaware - the world bankers have been building an international money 
machine: an international Federal Reserve System with power to 
control the world's financial and economic system. 

The elements of this global money machine can be traced back to 
the League of Nations and the Bank of International Settlements in the 
1920s. After World War Two the International Money Fund and the 
World Bank were instituted to globalize credit and loans. 

Then in the late 1950s came the Eurodollar market, now a vast 
international market dealing in deposits and credits denominated in 
dollars outside the United States. The Eurodollar system may in the 
light of history come to be seen as a first step in a global dollar system. 
Eurodollars are dealt in by banks not resident in the U.S. and by 
institutions not subject to U.S. banking regulations and restrictions. 

Paul A. Volcker, former Fed Chairman, has made the role of 
appointments to the Federal Reserve Board clear, - to support the 
Chairman's policy. 

In reference to Clinton appointment Alan Blinder, Volcker 
commented: 

I think a vice chairman has a responsibility for supporting 
policy in public statements. If he has 



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The Federal Reserve Conspiracy 

any real difference of opinion at the end of the day that shouldn 't 
be disguised but as much as possible he should support the 
institution. 

In brief, the policy created by New York bankers should prevail, 
whatever the personal opinions of the Vice Chairman of the Board or 
any lesser Director. Which is about as close to a closed shop monopoly 
as one can get. 

In replying to criticism that he spoke out too much, Alan Blinder 
made a revealing comment: "When we take actions, they are not 
reversible by any other body of government..." New York Times, 
September 26, 1994. 

So here we have it. The Federal Reserve is a private monopoly of 
money credit created by Congress under highly questionable 
circumstances which is beholden to the Chairman of the Board and 
whose decisions cannot be changed by Government or anyone else. 

A free society under the rule of law? The United States has quietly 
become a hostage to a handful of international bankers. And just dare 
any Congressman challenge Fed authority! 



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The Federal Reserve Today 



Federal Reserve Bank of San Francisco Claims "Some people 
think we're a branch of the Government We're not 
We're the banks' Bank. " 

This confirms our discussion in this book. 



July 16, 1979- 



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Federal 
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San Francisco 




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