During the Democratic Presidential campaign, Wilson and the rulers of the Democratic Party pretended to oppose the Aldrich bill. As Republican representative, Louis T. McFadden, explained twenty years later, when he was Chairman Of The House Banking And Currency Committee,
"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 monarchical institution of the, 'King's Bank,' to control us from the top downward, and to shackle us from the cradle to the grave."
 
On November 5th, Woodrow Wilson was elected, and J. P. Morgan, Paul Warburg, Bernard Baruch et al, advanced a new plan which Warburg called the Federal Reserve System. The leadership of the Democratic Party hailed this new bill called the, "Glass-Owen Bill," as totally different to the Aldrich bill, when in fact it was virtually identical.
 
Funnily enough the Democrats were so vehement in their denial of the similarity of the, "Glass-Owen Bill," to the, "Aldrich Bill," that Paul Warburg, the creator of both bills, had to inform his paid friends in Congress, that the two bills were virtually identical and therefore they must vote to pass it. Warburg stated,
"Brushing aside the external differences affecting the, 'shells,' we find the, 'kernels,' of the two systems very closely resembling and related to one another."
However this admission by Warburg was not made public. Instead, Senator Aldrich, and Frank Vanderlip, the President of Rockefeller's National Citibank of New York, were to publicly state their opposition to the bill in order to make people think that the bill proposed was radically different to the Aldrich bill. Indeed, Frank Vanderlip stated years later in the Saturday Evening Post,
"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."
 
1913
With Congress nearing a vote on the Glass-Owen Bill, they called Ohio Attorney, Alfred Crozier, to testify. However, Crozier noticed the similarities between the Aldrich Bill and the Glass-Owen Bill, and subsequently stated,
"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."
 
The debate on this bill was not going well for the banks, with many Senators intimating the bill was corrupt and deceitful, however the bill was approved through the Senate on December 22nd. How did this happen? Because most of the Senators had left town to return home for the Christmas holidays. Furthermore, these Senators had been assured by the leadership, that nothing would be done regarding this bill until long after the Christmas recess.
Representative Charles A Lindbergh Sr. stated,
"This Act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government of the monetary power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed ... The worst legislative crime of the ages is perpetrated by this banking and currency bill."
Interestingly, only a few weeks earlier, in October, Congress finally passed a bill legalizing direct income tax of the people. This was in the form of a bill pushed through by Senator Aldrich, which is now commonly known as the 16th amendment. The income tax law was fundamental to the Federal Reserve. This is because the Federal Reserve was a system which would run up, essentially, an unlimited Federal debt.
The only way to guarantee the payment of interest on this debt was to directly tax the people, as they had done with the Bank Of England. If the Federal Reserve had to rely on contributions from the States, they would be dealing with bigger entities, who could revolt and refuse to pay the interest on their own money, or at least bring political pressure to bear in order to keep the debt small.
 
Actually, this 16th amendment was never ratified, and therefore many American citizens do not pay their income tax and there is nothing the United States Government can do about it. For further information on this go to thelawthatneverwas. Also, back in 1895, the Supreme Court had also found an income tax law similar to the 16th amendment, as unconstitutional. The Supreme Court also found a Corporate Tax Law unconstitutional in 1909.
Another important amendment that was put through this year is the 17th amendment. This provided for the direct election by the people of two Senators from each state as oppose to the original system of having state legislatures elect United States Senators. More democratic, you would think, until you realize these bankers could now provide the funds for their hand picked people to run for the Senate, and thus avoid future problems like getting the Federal Reserve through the Senate.
 
Anyway, back to the Federal Reserve, if you are in any doubt as to whether the Federal Reserve is a private company, a basic check the public can carry out is in their phone book. Look under the government pages and it is not listed, but you will find it listed within the business pages.
Actually some recent evidence has come forward as to who really owns the Federal Reserve, and they are the following banks:
    Rothschild Bank of London
    Warburg Bank of Hamburg
    Rothschild Bank of Berlin
    Lehman Brothers of New York
    Lazard Brothers of Paris
    Kuhn Loeb Bank of New York
    Israel Moses Serif Banks of Italy
    Goldman, Sachs of New York
    Warburg Bank of Amsterdam
    Chase Manhattan Bank of New York
Also some argue that the Federal Reserve is a quasi-governmental agency, yet the President appoints only 2 of the 7 members of the Federal Reserve Board of Governors, every four years, and he appoints them to 14 year terms, which is far longer than any term he could possibly serve as President. The Senate confirms these appointments, but as we have seen, that is the idea, because these are the very people hand picked by the bankers who also finance their campaigns, ensuring loyalty to them, not the people.
 
Let's summarize how the Federal Reserve creates money out of nothing. It is a four step process:
    1. The Federal Open Market Committee approves the purchase of United States Bonds*.
    2. The bonds are purchased by the Federal Reserve.
    3. The Federal Reserve pays for these bonds with electronic credits to the seller's bank, these credits are based on nothing.
    4. The banks use these deposits as reserves. They can loan out over ten times the amount of their reserves to new borrowers, all at interest.
    * Bonds are simply promises to pay or Government IOU's. People purchase bonds in order to get a secure rate of interest. At the end of the term of the bond, the government repays the bond, plus interest and the bond is destroyed.
Let's look at an example of how this works with a Federal Reserve purchase of $1,000,000 of bonds. This then gets turned into over $10,000,000 in bank accounts. The Federal Reserve in effect creates 10% of this totally new $10,000,000 and the banks create the other 90%.
To reduce the amount of money in circulation this process is simply reversed. The Federal Reserve sells these bonds to the public and the money flows out of the purchaser's local bank. Loans must be reduced by ten times the amount of the sale, so a Federal Reserve sale of $1,000,000 in bonds, results in $10,000,000 less money in the economy.
 
How does this benefit the bankers, whose representatives met at Jekyll Island?
    1. It prevented any future banking reform efforts, as the Federal Reserve was to be the only producer of money.
    2. This in turn prevented a proper debt free system of government finance, like President Lincoln's Greenbacks, from making a comeback. Instead, the bond based system of government finance, forced on Lincoln after he created Greenbacks, was now cast in stone.
    3. It delegated to the bankers the right to create 90% of our money supply based on a fraudulent system of fractional reserve banking and allowed them to loan out that 90% at interest.
    4. It centralized overall control of our nations money supply in the hands of and for the profits of a few men.
    5. It established a private central bank with a high degree of independence from effective political control.
 
1914
The start of World War I. In this war, the German Rothschilds loaned money to the Germans, the British Rothschilds loaned money to the British, and the French Rothschilds loaned money to the French.
One year after the passage of the Federal Reserve Bill, Representative Charles A Lindbergh Sr., outlined how The Federal Reserve created the, "business cycle," and how they manipulated that to their own advantage. He stated,
"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 strongest, 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."
 
1915
J. P. Morgan became the sales agent for the, "War Materials Board," to both the British and the French engaged in World War I, and becomes the biggest consumer on the planet, spending 10 million dollars a day. Furthermore, President Woodrow Wilson appointed banker, Bernard Baruch, to head the "War Industries Board."
According to historian, James Perloff, both Bernard Baruch and the Rockefellers profited by approximately 200 million dollars during World War I.
A lot of people believe the key to an effective money supply is to ensure it is backed by something of worth such as gold. However, who do you think would control that gold? As Republican, Charles A. Lindbergh stated this year, "Already the Federal Reserve Banks have cornered the gold and gold certificates."
 
1916
President Wilson began to realize the gravity of the damage he had done to America, by unleashing the Federal Reserve on the American people. He stated,
"We have come 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 the 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 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."
 
1917
The money changers never forgave the Tsars of Russia for both continually opposing their request to set up a central bank in Russia, as well as their support of President Lincoln during the Civil War. Therefore, Jacob Schiff, a Rothschild, spent 20 million dollars through his firm, Kuhn, Loeb & Co., in financing the Russian Revolution.
It is commonly believed that Communism is the opposite of Capitalism, so why would these capitalists support it? Respected researcher, Gary Allen, explains it as follows,
"If one understands that socialism is not a share-the-wealth program, but it is in reality a method to consolidate and control the wealth, then the seeming paradox of super-rich men promoting socialism becomes no paradox at all. Instead it becomes logical, even the perfect tool of power seeking megalomaniacs. Communism, or more accurately socialism, is not a movement of the downtrodden masses, but of the economic elite."
 
1919
In January the Paris Peace Conference takes place following the end of World War I. The bankers put World Government at the top of their agenda, and Paul Warburg and Bernard Baruch attend this conference with President Wilson. To the bankers dismay, the world was not yet ready to dissolve national boundaries and accept World Government, so that part of their plan had failed.
The plan for World Government was called the, "League Of Nations," and although many nations accepted this proposal, the United States Congress would not support it, and thus without the support of money from the United States Treasury, the bankers had failed and the League Of Nations died.
 
1921
The Inventor of the electric light, Thomas Edison, said in an article published in the New York Times, on December 6,
"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 ... It is absurd to say that our country can issue 30 million dollars in bonds and not 30 million dollars in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people."
 
1922
President Theodore Roosevelt who died in 1919 was quoted in the March 27th edition of the New York Times with the following statement,
"These International bankers and Rockefeller-Standard Oil interests control the majority of newspapers and the columns of these newspapers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government."
 
The reason the New York Times ran this article, was due to the Mayor of New York, John Hylan, who had been reported in the same paper the previous day, March 26th, with the following statement,
"The warning of Theodore Roosevelt has much timeliness today, for the real menace of our republic is this invisible government which like a giant octopus sprawls its slimy length over city, state, and nation ... It seizes in its long and powerful tentacles our executive officers, our legislative bodies, our schools, our courts, our newspapers, and every agency created for the public protection ...
To depart from mere generalizations, let me say that at the head of this octopus are the Rockefeller-Standard Oil interest and a small group of powerful banking houses generally referred to as international bankers. This little coterie of powerful international bankers virtually run the United States Government for their own selfish purposes.
They practically control both parties, write political platforms, make cats paws of party leaders, use the leading men of private organizations, and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business ... these International Bankers and Rockefeller-Standard Oil interests control the majority of newspapers and magazines in this country."
 
1923
On August 2nd, President Warren Harding died on a train in mysterious circumstances. The cause was given as either food poisoning or a stroke although no autopsy was performed. He was succeeded by his Vice-President Calvin Coolidge. President Coolidge continued Harding's tax cutting and tariff raising policies.
This policy was so successful that the economy still continued to grow, and the huge Federal Debt built up during World War I, under Harding and Coolidge was reduced by 38% down to 16 billion dollars. This was when the Federal Reserve started flooding the country with money, increasing the money supply by 62%.
Representative Charles A Lindbergh Sr. stated,
"The financial system ... has been turned over to ... the Federal Reserve Board. That board administers the finance system by authority of ... a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits, from the use of other people's money."
 
1924
Shortly before his death this year, President Woodrow Wilson made the following statement in relation to his support for the Federal Reserve,
"I have unwittingly ruined my country."
 
1927
In July, in Europe, Bank of England Governor Montagu Norman, Benjamin Strong of the Federal Reserve Bank, and Dr. Hjalmar Schacht of the Reichsbank, met in conference.
No public reports were ever made of these conferences, which happened on numerous occasions and were wholly informal, but which covered many important questions of gold movements, the stability of world trade, and world economy.
 
Montagu Norman was obsessed with getting back the gold that England had lost to America during World War I and returning the Bank of England to its former position of dominance in world finance.
Republican Congressman, Louis T. McFadden, Chairman of the House Banking & Currency Committee, from 1920 to 1931, would comment on this Bank of England plan in the midst of the Great Depression in February 1931 when he stated,
"I think it can hardly be disputed that the statesmen and financiers of Europe are ready to take almost any means to reacquire rapidly the gold stock which Europe lost to America as a result of World War I."
 
1929
In April, Paul Warburg sent out a secret warning to his friends that a collapse and nationwide depression had been planned for later that year. It is certainly no coincidence that the biographies of all the Wall Street giants of that era: John D. Rockefeller; J. P. Morgan; Joseph Kennedy; Bernard Baruch; et al, all marveled at the fact these people got out of the stock market completely just before the crash and put their assets into cash or gold.
So, as all the bankers and their friends already knew, in August the Federal Reserve began to tighten the money supply. Then on 24th October the big New York bankers called in their 24 hour broker call loans. This meant that both the stockbrokers and their customers had to dump their stocks on the stock market to cover their loans, irrespective of what price they had to sell them for.
As a result of this the stock market crashed on a day that would go down in history as, "Black Thursday." In his book, The Great Crash 1929, John Kenneth Gailbraith makes the following shocking statement,
"At the height of the selling frenzy, Bernard Baruch brought Winston Churchill into the visitors gallery of the New York Stock Exchange to witness the panic and impress him with his power over the wild events on the floor."
Republican Congressman, Louis T McFadden, Chairman of the House Banking & Currency Committee, from 1920 to 1931, was as usual quite candid as to who was responsible. He stated of this crash,
"It was not accidental. It was a carefully contrived occurrence ... The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all."
 
Curtis B. Dall, the son-in-law of Franklin Delano Roosevelt, who was working for Lehmann Brothers as a broker, on the floor of the New York Stock Exchange, on the day of the crash, stated in his 1967 book, F. D. R. My Exploited Father-In-Law,
"Actually, it was the calculated 'shearing' of the public by the World-Money powers triggered by the planned sudden shortage of call money in the New York Money Market."
Despite the claims of how the Federal Reserve would protect the country against depressions and inflation, they continued to further contract the money supply. Between 1929 and 1933, they reduced the money supply by an additional 33%. Even, Milton Friedman, the Nobel Peace Prize winning economist stated the following in a radio interview in January 1996,
"The Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one-third from 1929 to 1933."
 
In only a few weeks from the day of the crash, 3 billion dollars of wealth vanished. Within a year, 40 billion dollars of wealth vanished. However, it did not simply disappear, it just ended up consolidated in fewer and fewer hands, as was planned. An example of this is Joseph P. Kennedy, John F. Kennedy's father. In 1929 he was worth 4 million dollars, in 1935 that had increased to over 100 million dollars.
This is why depressions are caused. As stated previously the top bankers and their friends got out of the stock market and purchased gold just before the crash, which they shipped over to London. This meant that the money lost by most Americans during the crash didn't just vanish, it just ended up in these people's hands.
It also was spent overseas, as whilst the Great Depression was occurring, millions of American dollars was being spent on rebuilding Germany from damage sustained during World War I, in preparation for the bankers World War II. Republican Louis T. McFadden, Chairman of the House Banking & Currency Committee from 1920 to 1931, stated the following in relation to this,
"After World War I, Germany fell into the hands of the German International Bankers. Those bankers bought her and now they own her, lock, stock, and barrel. They have purchased her industries, they have mortgages on her soil, they control her production, they control all her public utilities.
The international German bankers have subsidized the present Government of Germany and they have also supplied every dollar of the money Adolph Hitler has used in his lavish campaign to build up a threat to the government of Bruening. When Bruening fails to obey the orders of the German International Bankers, Hitler is brought forth to scare the Germans into submission ...
Through the Federal Reserve Board over 30 billion of dollars of American money ... has been pumped into Germany ... You have all heard of the spending that has taken place in Germany ... modernistic dwellings, her great planetariums, her gymnasiums, her swimming pools, her fine public highways, her perfect factories.
All this was done on our money. All this was given to Germany through the Federal Reserve Board. The Federal Reserve Board ... has pumped so many billions of dollars into Germany that they dare not name the total."
The money pumped in to Germany to build her up in preparation for World War II, was into the German Thyssen banks which were affiliated with the Harriman interest in New York.
 
1930
The Bank for International Settlements (BIS) was established by Charles G. Dawes (Rothschild agent and Vice President under President Calvin Coolidge from 1925-1929), Owen D. Young (Rothschild agent, founder of RCA and Chairman of General Electric from 1922 until 1939), and Hjalmar Schacht of Germany (President of the Reichsbank).
The BIS is referred to the bankers as the, "Central bank for the central banks." Whereas the IMF and the World Bank deal with governments, the BIS deals only with other central banks. All its meetings are held in secret and involve the top central bankers from around the world. For example the former head of the Federal Reserve, Alan Greenspan, would go to the BIS headquarters in Basel, Switzerland, ten times a year for these private meetings.
 
The BIS also has the status of a sovereign power and is immune from governmental control. A summary of this immunity is listed below:
     1. Diplomatic immunity for persons and what they carry with them (i.e., diplomatic pouches).
     2. No taxation on any transactions, including salaries paid to employees.
     3. Embassy-type immunity for all buildings and/or offices operated by the BIS worldwide including China and Mexico.
     4. No oversight or knowledge of operations by any government authority, they are not audited.
     5. Freedom from immigration restrictions.
     6. Freedom to encrypt any and all communications of any sort.
     7. Freedom from any legal jurisdiction, they even have their own police force.
 
BIS' current board of directors, only five of which are elected and the rest of which are permanent, are:
Nout H E M Wellink, Amsterdam (Chairman of the Board of Directors)
Hans Tietmeyer, Frankfurt am Main (Vice-Chairman)
Axel Weber, Frankfurt am Main
Vincenzo Desario, Rome
Antonio Fazio, Rome
David Dodge, Ottawa
Toshihiko Fukui, Tokyo
Timothy F Geithner, New York
Alan Greenspan, Washington
Lord George, London
Hervé Hannoun, Paris
Christian Noyer, Paris
Lars Heikensten, Stockholm
Mervyn King, London
Guy Quaden, Brussels
Jean-Pierre Roth, Zürich
Alfons Vicomte Verplaetse, Brussels
Georgetown Professor and historian, Carroll Quigley, commented on the creation of this central bank in his 1975 book, Tragedy And Hope, as follows,
"The powers of financial capitalism had (a) far reaching (plan), 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 meetings and conferences.
The apex of the system was to be the Bank For International Settlements in Basel, Switzerland*, a private bank owned and controlled by the world's central banks which were themselves private corporations.
Each central bank ... sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the Country, and to influence cooperative politicians by subsequent economic rewards in the business world."
* Home of first World Zionist Congress, chaired by Theodor Herzl in 1897.
A handful of United States Senators led by Henry Cabot Lodge, fought to keep the United States out of the Bank for International Settlements. However, even thought the United States rejected this World Central Bank, the Federal Reserve still sent members to participate in its meetings in Switzerland, right up until 1994 when the United States was, "officially," dragged into it.
 
1932
Republican Representative Louis T. McFadden of Pennsylvania, the Former Chairman of the House Banking & Currency Commission during the great depression, states,
"We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board ... This evil institution has impoverished ... the people of the United States ... and has practically bankrupted our government. It has done this through ... the corrupt practices of the moneyed vultures who control it."
In his final year in office, President Herbert Hoover puts forward a plan to bail out the failing banks, he seemed to feel that they took priority over millions of starving Americans, however this plan did not receive support from the Democratic Congress. Hoover's Presidency failing, Franklin D. Roosevelt is elected President later this year.
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