In his book The Creature from Jekkyl Island, G. Edward Griffin says that it was Edward Mandell House who on behalf of Wall Street, lobbied Congress to pass the Federal Reserve Act.
During the democratic campaign the supporters of Woodrow Wilson pretended to oppose the Aldrich Bill. As Rep. Louis McFadden, a democrat and chairman of the House of Banking and Currency Committee explained it twenty years after the fact, “The Aldrich Bill was condemned in the platform, when Woodrow Wilson was nominated, the men who ruled the Democratic Party promised the people that if they were returned to power there would be no central bank established here while they held the reins of government. Thirteen months later that promise was broken, and the Wilson administration, under the tutelage of those sinister Wall Street figures who stood behind Colonel House, established here in our free country the worm-eaten institution of the “king’s bank” to control us from the top downward and to shackle us from the cradle to the grave.”
Once Wilson was elected Morgan, Warburg, Baruch and other bankers hatched a new plan, which Warburg named the Federal Reserve System as a ‘central bank’ was not popular at the time, but a central bank it was to be. Capital was subscribed by a chain of new regional Federal Reserve Banks whose capital was subscribed to by private banks controlled by the same bankers who promoted the formation of a central bank. The Democratic leadership hailed the new bill known as the Glass-Owen Bill as something radically different from the Aldrich Bill, but in fact the bill was virtually identical in every important detail. So vehement were the democrats in denial of the similarities of the bill, that Warburg the writer of both bills, he had to step in and reassure his paid friends in Congress that the two bills were identical. “Brushing aside the external differences affecting the shells, we find the kernels of the two systems very closely resembling and related to one another.” Warburg’s admission was for private consumption only.
Publicly the money trust used Aldrich and Frank Vanderlip, the president of Rockefeller’s National City Bank of New York, and one of the Jekyll island seven secret conspirators, to oppose the new federal reserve system. Years later in a Saturday Evening Post article, Vanderlip admitted that the two bills were identical. “Although the Aldrich Federal Reserve Plan was defeated when it bore the name Aldrich, nevertheless its essential points were all contained in the plan that finally was adopted.”
Perhaps not a coincidence, the most powerful opponent to the Federal Reserve, John Jacob Astor IV, died aboard the Titanic the previous year. Astor was the richest man in the world at the time, a friend of Nikola Tesla, and an outspoken opponent of the creation of the Federal Reserve. Astor gained his wealth, in part, as a real estate builder, investor, and inventor. Other prominent Federal Reserve detractors, such as Benjamin Guggenheim and Isa Strauss, also died on board while JP Morgan feigned illness at the last minute to miraculously avoid death aboard the ship he owned. There’s much more to this story HERE!
As Congress neared a vote, they called an Ohio attorney named, Alfred Crozier to testify. Crozier noted the similarities between the Aldrich Bill and the Glass-Owen Bill. “The bill grants just what Wall Street and the big banks for twenty-five years have been striving for – private instead of public control of currency. It (the Glass-Owen Bill) does this as completely as the Aldrich Bill. Both measures rob the government and the people of all effective control over the public’s money, and vest in the banks exclusively the dangerous power to make money among the people scarce or plenty.”
During the debate on the bill senators complained that big banks were using their financial muscle to influence the outcome. “There are bankers in this country that are enemies of the public welfare,” said one senator. Despite the charges of fraud and corruption, the bill was finally snuck through the senate on December 23rd, 1913 after most senators had left town during the holidays, after being assured by the leadership that nothing would be done about the bill until Congress was to reconvene after the Christmas recess. On the day the bill was passed, congressman Lindberg prophetically warned his countrymen that, “This Act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day or reckoning is only a few years removed. The worst legislative crime of the ages is perpetrated by this banking bill.”
“The Republican leader did not know what was in the Act nor was he given the opportunity to find out what was in the Act. Later in debate Bristow directly accused Owen of inserting provisions for the profit of his own bank.
There were major abuses of the legislative process in the passage of the Federal Reserve Act – sufficient to void the act. If we have a society that lives by rules then there is no Federal Reserve Act.
Both Finance Committee Chairmen, Congressman Glass and Senator Owen, had conflict of interest with personal banking interests and stood to gain from the bill. Meetings to discuss the bill were held without knowledge of committee members. Decisions were arrived at and established without the knowledge and agreement of members. Major sections of the bill were settled without consultation and railroaded into final form. There is indisputable evidence of outside banking influence upon Congress.” – Dr. Antony Sutton, The Federal Reserve Conspiracy p. 102
The Federal Reserve was made to look respectable by placing it under the control of a Board appointed by the President. The President appointed the Chairman to a 14 year term – a device to ensure his political independence. In effect, of course, the Fed was owned by the commercial banks that owned the shares. We know these were the five main New York banks although the cartel of banks that run the legalized counterfeiting scheme are private and have never been disclosed. Also influential was the Bank of England whose shareholders owned the majority of the stock of the New York banks.
Accordingly, the Federal Reserve Bank of New York sets interest rates and directs market operations. It controls the daily supply and price of money throughout the US. Its stockholders are the real directors of the entire system and include the wealthy financiers who have controlled the US and world political and economic destinies since 1914. The system now has deep roots worldwide through layers of secret societies such as the Mount Pelerin Society, the Business Roundtable, the Bilderburg Group, and the Freemasons, all based in London.
Ellen Brown (American author, political candidate, attorney, public speaker, and advocate of alternative medicine and financial reform, most prominently public banking) simply explained the Federal Reserve Act:
“In plain English, the Federal Reserve Act authorized a private central bank to create money out of nothing, lend it to the government at interest, and control the nation’s money supply, expanding or contracting it at will.”
Only weeks earlier congress had legalized a bill legalizing income tax. Why was the income tax law important? Because bankers finally had in place a system that would run up a virtually unlimited federal debt. How would this interest and principal on this debt be repaid? Keeping in mind this central bank scheme prints money out of nothing, and that federal government was small at this time, the federal government existed on tariffs and excise taxes. Here, just as with the Bank of England, the income payments had to be guaranteed by direct taxation of the people. The money changers knew that if they had to rely solely on contributions from the state, eventually the individual state legislatures would revolt, and either refuse to pay the interest on their own money or at least bring political pressure to keep the debt small.
Interestingly, in 1875 the Supreme Court had found a similar income tax law to be unconstitutional. The Supreme Court even found a corporate income tax unconstitutional in 1909. As a result senator Aldrich supported a constitutional amendment that would allow an income tax. The proposed XVI Amendment to the constitution was then sent to legislatures for approval. Some critics of the Amendment claim it was never ratified by the necessary 3/4 of the states. In other words, the XVI Amendment may not be a legal attachment to the U.S. Constitution. However, by 1913, senator Aldrich has pushed the XVI Amendment through congress. Without the power to tax the people directly, and bypass the states, the Federal Reserve Bill would be far less useful to those who wanted to drive American’s deeper and deeper into debt and servitude of the big bankers, and their interests.
Not only should the 16th Amendment have been illegal, the Federal Reserve Act was unconstitutional.
Rockefeller/Morgan/Rothschild representatives planned the Federal Reserve System. Three years later, it became the law of the land. Congress acted unconstitutionally. So did Wilson signing FSA into law.
Doing so violated the Constitution’s Article I, Section 8. It affords Congress sole power to coin (create) money and regulate the value thereof.
In 1935, the Supreme Court ruled Congress can’t constitutionally delegate its authority to another body or group.
Congress and Wilson defrauded the public. They did so by granting Wall Street money creation power. They gave powerful bankers absolute monetary control.
One year after the passage of the Federal Reserve Bill, congressman Lindbergh explained how the Fed created what we have come to call the business cycle and how they use it to manipulate business and property ownership, and to the benefit of the bankers.
“To cause high prices, all the Federal Reserve Board will do will be to lower the rediscount rate, producing an expansion of credit and a rising stock market, then when businessmen are adjusted to these conditions, it can check prosperity in mid-career by arbitrarily raising the rate of interest. It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation, and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down.
This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money. They know in advance when to create panics to their advantage. They also know when to stop panic. Inflation and deflation work equally well for them when they control finance. Already the federal banks have cornered the gold and gold certificates.” Congressman Lindberg was correct on all point, however, he hadn’t realized that most European nations had already fallen prey to bankers decades, or centuries earlier. Congressman Lindbergh was not the only outspoken critic of the Fed. Congressman Louis McFadden the chairman of the House Banking and Currency Committee from 1920-1931 remarked, “The Federal Reserve Act brought about a super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure.”
Rep. Louis McFadden (D-PA). McFadden was well aware of the international bankers role in the formation, manipulation and control of America’s wealth and the newly formed private central bank, the Federal Reserve. Another chairman of the House Banking and Currency Committee in the 1960’s Wright Patman from Texas stated, “In the United States today we have in effect two governments. We have the duly constituted Government. Then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve System, operating the money powers which are reserved to Congress by the Constitution.”
Even the inventor of electric light, Thomas Edison joined the fray in criticizing the formation of the Federal Reserve. “If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good also. The difference between the bond and the bill is the bond lets money brokers collect twice the amount of the bond and an additional 20%, where as the currency pays nobody but those who contribute directly in some useful way. It is absurd to say our country can issue 30 million in bonds and not 30 million in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people.”
Three years after the passage of the Federal Reserve Act, even the bankers puppet president Woodrow Wilson began to have second thoughts about his role in the scheme. “We have become to be one of the worst ruled, one of the most completely controlled governments in the civilized world – no longer a government of free opinion, no longer a government by, a vote of majority, but a government by the opinion and duress of a small group of dominant men. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.” Before his death in 1924, president Wilson realized the full extent of the damage he had done to the nation when he confessed, “I have unwittingly ruined my government.”
So, finally the money changers, the bankers that profit by manipulating the amount of money in circulation, had their privately owned central bank installed, once again in America. The major newspapers, which they also owned hailed the passage of the Federal Reserve Act as a money system that could be scientifically prevented. The real fact is that depressions, and recessions could now be scientifically created.
James Madison knew the dangers of letting bankers create money.
“History,” he said, “records that the Money Changers have used every form of abuse, intrigue, deceit and violent means possible to maintain their control over governments by controlling money and its issuance.”
Thomas Jefferson stressed:
“I sincerely believe that banking institutions are more dangerous to our liberties than standing armies.”
“Already they have raised up a money aristocracy that has set the government at defiance.”
“The issuing power should be taken from the banks and restored to the people to whom it properly belongs.”
The Bank of the United States was its first national one. In 1791, it was established. It was based in Philadelphia. At the time, it was America’s capital. Andrew Jackson called it a “hydra-headed monster.” He called bankers “vipers and thieves.”
Lincoln expressed angst during America’s Civil War, saying:
“The money powers prey upon the nation in times of peace and conspire against it in times of adversity.”
“It is more despotic than a monarch, more insolent than autocracy and more selfish than a bureaucracy.”
“It denounces, as public enemies, all who question its methods or throw light upon its crimes.”
“I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at the rear is my greatest foe.”
He signed into law the 1862 Legal Tender Act. It empowered the Treasury to issue greenbacks. Lincoln refused to pay bankers 24 – 36% interest. They demanded usury to fund his war on southern states. Treasury issued currency was interest free. It would be today if Washington issued its own money. After Lincoln’s assassination, new legislation rescinded greenback currency. Washington again paid bankers irresponsibly. It still does so today. It benefits bankers. It enriches them. It does so at the expense of popular interests. Wall Street and Washington conspire against them.
Wealth is transferred from Main Street to powerful financial interests. Bipartisan complicity permits it. Monied interests run America. They wage financial war on humanity. They do so by controlling money, credit and debt. They manipulate markets for private enrichment.
In his book titled , “Tragedy and Hope,” historian Carroll Quigley said:
“(T)he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.”
“This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.”
Money power is supreme. It’s omnipotent. It assures controlling economies, commerce, politics and imperial adventurism. House of Rothschild founder Amschel Rothschild said:
“Permit me to issue and control the money of a nation, and I care not who makes its laws.” He didn’t care what laws were passed provided he retained money power.
Former Bank of England director Josiah Stamp said:
“Banking was conceived in iniquity and was born in sin. The bankers own the earth.”
“Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again.”
“However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in.”
“But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.”
The Fed isn’t federal. It has no reserves. It’s one of four dominant central banks. Others include the Bank of England, ECB, and Bank of Japan. The Basel, Switzerland-based Bank of International Settlements (BIS) functions as a central bank for central bankers. It’s an unaccountable boss of bosses. It’s final solution plan calls for establishing a global currency it controls. Achieving it assures ultimate money power.
Ellen Brown calls its headquarters the “tower of Basel.” It’s been “scandal-ridden” from inception. It’s called “the most exclusive, secretive, and powerful supranational club in the world.” It’s run by a handful of powerful private central banks. They can make or break world economies. Their tactics include lowering or raising capital requirements. Doing so permits greater or lesser amounts of lending.
Economist Henry CK Liu said Basel Accords force national banking systems “to march to the same tune. (They) serve the needs of highly sophisticated global financial markets.” It’s done “regardless of the development needs of their national economies.”
Continued on next page…
