[color="#008080"][size="4"]Part XII[/size][/color][size="4"][color="#008080"][size="2"] (of XVIII)[/size] :[/color][/size][color="#008080"][size="4"] Jekyll Island[/size][/color]
[color="#008080"][font="Arial"][size="3"]# National Monetary Commission[/size][/color]
After the crash Teddy Roosevelt, in response to the panic of 1907, signed into law a bill creating the National Monetary Commission.
The Commission was to study the banking problem and make recommendations to congress.
Of course the Commission was packed with Morgan's friend and cronies.
The chairman was a man named senator Nelson Aldrich from Rhode Island.
Aldrich represented the Newport Rhode Island homes of America's richest banking families. His daughter married John D. Rockefeller junior and together they had 5 sons. John, Nelson who would become vice-president in 1974, Lawrence, Winthrop, and David, the head of the Council on Foreign Relations (CFR) and former chairman of Chase Manhattan banking.
Senator Aldrich immediately embarked on a 2 years tour of Europe, where he consulted at length with the private central bankers in England, France and Germany. The total cost of his trip alone to the taxpayers was $300,000, an astronomical sum in those days.
[color="#008080"][size="3"]# Conspiracy for the final takeover[/size][/color]
Shortly after his return on Nov. 22, 1910, some of the wealthiest and most powerful men in America boarded president Aldrich private railcar, and in the strictest secrecy journeyed to Jekyll Island, off the coast of Georgia.
With the group came Paul Warburgh.
Warburgh had been given a $500,000 salary to lobby for the passage of a privately owned central bank in America, by the investment firm Kuhn, Loeb & Co.
Warburgh partner in this firm was a man named Jacob Schiff, the grandson of the man who shared the green shield house with the Rothschild family in Frankfurt.
[color="#ff0000"](These 3 European banking families the Rothschilds, the Warburghs and the Schiffs, were interconnected by marriage down through the years, just as their American counterparts the Morgans, Rockefellers and the Aldriches were.)[/color]
Years later, one participant Frank Vanderlip, president of National City Bank of New York and a representative of the Rockefeller family, confirmed the Jekyll Island trip in a Feb. 9th, 1935 edition of the Saturday Evening Post:
[/font][indent][font="Courier New"]"I was as secretive indeed as furtive as any conspirator.... Discovery, we knew simply must not happen, or else all our time and effort would be wasted. If it were to be exposed that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by congress." [/font]
[/indent] [color="#008080"][font="Arial"][size="3"]# The Jekyll island deliberations[/size][/color][/font]
The participants came here to figure out how to solve their major problem:
How to bring back a privately owned central bank.
But there were other problems that needed to be addressed as well.
First of all, the markets share of the big national bank was shrinking fast.
In the first 10 years of the century the number of U.S. banks had more than doubled to over 20,000. By 1913 only 29% of all banks were national banks and they held only 57% of all deposits.
As senator Aldrich later admitted in a magazine article:
[indent][font="Courier New"]"Before passage of this Act, the New York Bankers could only dominate the reserves of New York. Now, we are able to dominate the bank reserves of the entire country."[/font]
[/indent]
Therefore something had to be done to bring this new banks under their control.
As John D. Rockefeller put it:
[indent][font="Courier New"]"[color="#ff0000"]Competition is sin.[/color]"[/font]
[/indent]
Secondly, the nation's economy was so strong that corporations started to finance their expansions out of profits instead of taking out huge loans from large banks.
In the first 10 years of the new century 70% of corporate funding came from profits.
In other words American industry was becoming independent of The Money Changers and that trend had to be stopped.
But perhaps their biggest problem was a public relations problem: the name of the new bank.
Aldrich believed that the word bank should not even appear in the name.
The idea here was to give the impression that the purpose of the new central bank was to stop bank runs, and also to conceal its monopoly character.
Aldrich insisted the bill be called the Aldrich bill.
After 9 days on Jekyll Island the group dispersed.
[color="#008080"][font="Arial"][size="3"]# The planned central bank[/size][/color][/font]
The new central bank would be similar to the old Bank of the United States. [color="#ff00ff"]{ [/color][color="#ff00ff"]Later, it came to be be informally called the Fed after establishment }[/color]
It would be given a monopoly over U.S. currency and create that money out of nothing.
In order [color="#ff0000"]to fool the public into thinking the government retained control, the plan called for the the central bank to be run by a board of governors appointed by the president and approved by the senate.[/color]
But [color="#ff0000"]all the bankers had to do was to make sure their man got appointed to the board of governors[/color].
That wasn't hard.
Bankers have money, and money buys influence over the politicians.
[color="#008080"][font="Arial"][size="3"]# The Fed, Money and Economy[/size][/color][/font]
First a word on bonds.
Bonds are simply promises to pay or government IOU's.
People buy bonds 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.
How does the Fed create money out of nothing?
It is a 4 step process.
1. [color="#ff0000"]The Federal Open Market Committee approves the purchase of US Bonds.[/color]
2. [color="#ff0000"]Bonds are purchased by the Fed[/color] by whoever is offering them for sale on the open market.
3. [color="#ff0000"]The Fed pays for the bonds with electronic credits to the seller's bank, which in turn credits the seller's bank account. The trick is these credits are based on nothing. The Fed just creates them.[/color]
4. [color="#ff0000"]The bank uses this deposits as reserves They can loan out over 10 times the amount of their reserves to new borrowers, all at interest.[/color]
In this way a Fed purchases up say $1 million worth of bonds gets turned in to over $10 million in bank accounts. The Fed in effect creates 10% of this totally new money and the bank create the other 90%.
How does the Fed reduce the amount of money in the economy?
To reduce the amount of money in the economy the process is just reversed.
The Fed sells bonds to the public and the money flows out of the purchasers locale bank.
Loans must be reduced by 10 times the amount of the sell.
So a Fed's sell of $1 million dollars in bonds results in $10 million less money in the economy.
How does this benefit the bankers who's representatives huddled in the Jekyll Island?
1. - It totally misdirected banking reform efforts from proper solutions.
2. - It prevented a proper debt-free system of government finance like Lincolns greenbacks from making a comeback. The bond based system of government finance was now cast in stone.
3. - It delegated to the bankers the right to create 90% of our money supply based on only fractional reserves which they then loan out at interest.
4. - It centralized overall control of our nation's money supply in the hands of a few men.
5. - It established a central bank with a high degree of independence from effective political control. [color="#ff0000"]Soon after its creation the Fedââ¬â¢s great contraction in the early 1930's would cause the Great Depression.[/color]
This independence has been enhanced since then through additional laws
[color="#008080"][font="Arial"][size="3"]# The game's afoot[/size][/color][/font]
Once the participants left Jekyll Island the public relations blitz was on.
The big New York banks put together an educational bond of $5 million to finance professors at respected universities to endorse the new bank.
Woodrow Wilson at Princeton was one of the first to jump on the bandwagon.
But the bankers subterfuge didn't work.
The Aldrich Bill was quickly identified as the bankers bill.
A bill to benefit only what became known as the money trust.
As congressman Lindbergh put it during the congressional debate:
[indent][font="Courier New"]"[color="#ff0000"]The Aldrich Plan is the Wall Street Plan. It means another panic, if necessary; to intimidate the people. Aldrich, paid by the government to represent the people, proposes a plan for the trusts instead.[/color]"[/font]
[/indent]
Seeing they didn't have the votes to win in congress, the republican leadership never brought the Aldrich Bill to a vote.
The bankers quietly decided to move to track 2: the democratic alternative.
They begin financing Woodrow Wilson as the democratic nominee.
As respected historian James Perloff put it:
[indent][font="Courier New"]"Wall Street financier Bernard Baruch was put in charge of Wilson's education."[/font]
[font="Courier New"]"Baruch brought Wilson to the Democratic Party Headquarters in New York in 1912, 'leading him like one would a poodle on a string'. Wilson received an 'indoctrination course' from the leaders convened there...."[/font]
[/indent]
So now the stage was set.
The Money Changers were poised to install their privately owned central bank once again.
The damage president Andrew Jackson had done 76 years earlier had been only partly repaired with the passage of the National Bank Act during the civil war.
The Jacksonians became the greenbackers who became the hardcore supporters of William Jennings Bryan. With Bryan leading the charge, these opponents of The Money Changers, ignorant of Baruch tutelage, now threw themselves behind Woodrow Wilson.
[color="#ff0000"]But the greenbackers and Bryan would soon be betrayed.[/color]
Stay tuned...
[color="#008080"][font="Arial"][size="3"]# National Monetary Commission[/size][/color]
After the crash Teddy Roosevelt, in response to the panic of 1907, signed into law a bill creating the National Monetary Commission.
The Commission was to study the banking problem and make recommendations to congress.
Of course the Commission was packed with Morgan's friend and cronies.
The chairman was a man named senator Nelson Aldrich from Rhode Island.
Aldrich represented the Newport Rhode Island homes of America's richest banking families. His daughter married John D. Rockefeller junior and together they had 5 sons. John, Nelson who would become vice-president in 1974, Lawrence, Winthrop, and David, the head of the Council on Foreign Relations (CFR) and former chairman of Chase Manhattan banking.
Senator Aldrich immediately embarked on a 2 years tour of Europe, where he consulted at length with the private central bankers in England, France and Germany. The total cost of his trip alone to the taxpayers was $300,000, an astronomical sum in those days.
[color="#008080"][size="3"]# Conspiracy for the final takeover[/size][/color]
Shortly after his return on Nov. 22, 1910, some of the wealthiest and most powerful men in America boarded president Aldrich private railcar, and in the strictest secrecy journeyed to Jekyll Island, off the coast of Georgia.
With the group came Paul Warburgh.
Warburgh had been given a $500,000 salary to lobby for the passage of a privately owned central bank in America, by the investment firm Kuhn, Loeb & Co.
Warburgh partner in this firm was a man named Jacob Schiff, the grandson of the man who shared the green shield house with the Rothschild family in Frankfurt.
[color="#ff0000"](These 3 European banking families the Rothschilds, the Warburghs and the Schiffs, were interconnected by marriage down through the years, just as their American counterparts the Morgans, Rockefellers and the Aldriches were.)[/color]
Years later, one participant Frank Vanderlip, president of National City Bank of New York and a representative of the Rockefeller family, confirmed the Jekyll Island trip in a Feb. 9th, 1935 edition of the Saturday Evening Post:
[/font][indent][font="Courier New"]"I was as secretive indeed as furtive as any conspirator.... Discovery, we knew simply must not happen, or else all our time and effort would be wasted. If it were to be exposed that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by congress." [/font]
[/indent] [color="#008080"][font="Arial"][size="3"]# The Jekyll island deliberations[/size][/color][/font]
The participants came here to figure out how to solve their major problem:
How to bring back a privately owned central bank.
But there were other problems that needed to be addressed as well.
First of all, the markets share of the big national bank was shrinking fast.
In the first 10 years of the century the number of U.S. banks had more than doubled to over 20,000. By 1913 only 29% of all banks were national banks and they held only 57% of all deposits.
As senator Aldrich later admitted in a magazine article:
[indent][font="Courier New"]"Before passage of this Act, the New York Bankers could only dominate the reserves of New York. Now, we are able to dominate the bank reserves of the entire country."[/font]
[/indent]
Therefore something had to be done to bring this new banks under their control.
As John D. Rockefeller put it:
[indent][font="Courier New"]"[color="#ff0000"]Competition is sin.[/color]"[/font]
[/indent]
Secondly, the nation's economy was so strong that corporations started to finance their expansions out of profits instead of taking out huge loans from large banks.
In the first 10 years of the new century 70% of corporate funding came from profits.
In other words American industry was becoming independent of The Money Changers and that trend had to be stopped.
But perhaps their biggest problem was a public relations problem: the name of the new bank.
Aldrich believed that the word bank should not even appear in the name.
The idea here was to give the impression that the purpose of the new central bank was to stop bank runs, and also to conceal its monopoly character.
Aldrich insisted the bill be called the Aldrich bill.
After 9 days on Jekyll Island the group dispersed.
[color="#008080"][font="Arial"][size="3"]# The planned central bank[/size][/color][/font]
The new central bank would be similar to the old Bank of the United States. [color="#ff00ff"]{ [/color][color="#ff00ff"]Later, it came to be be informally called the Fed after establishment }[/color]
It would be given a monopoly over U.S. currency and create that money out of nothing.
In order [color="#ff0000"]to fool the public into thinking the government retained control, the plan called for the the central bank to be run by a board of governors appointed by the president and approved by the senate.[/color]
But [color="#ff0000"]all the bankers had to do was to make sure their man got appointed to the board of governors[/color].
That wasn't hard.
Bankers have money, and money buys influence over the politicians.
[color="#008080"][font="Arial"][size="3"]# The Fed, Money and Economy[/size][/color][/font]
First a word on bonds.
Bonds are simply promises to pay or government IOU's.
People buy bonds 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.
How does the Fed create money out of nothing?
It is a 4 step process.
1. [color="#ff0000"]The Federal Open Market Committee approves the purchase of US Bonds.[/color]
2. [color="#ff0000"]Bonds are purchased by the Fed[/color] by whoever is offering them for sale on the open market.
3. [color="#ff0000"]The Fed pays for the bonds with electronic credits to the seller's bank, which in turn credits the seller's bank account. The trick is these credits are based on nothing. The Fed just creates them.[/color]
4. [color="#ff0000"]The bank uses this deposits as reserves They can loan out over 10 times the amount of their reserves to new borrowers, all at interest.[/color]
In this way a Fed purchases up say $1 million worth of bonds gets turned in to over $10 million in bank accounts. The Fed in effect creates 10% of this totally new money and the bank create the other 90%.
How does the Fed reduce the amount of money in the economy?
To reduce the amount of money in the economy the process is just reversed.
The Fed sells bonds to the public and the money flows out of the purchasers locale bank.
Loans must be reduced by 10 times the amount of the sell.
So a Fed's sell of $1 million dollars in bonds results in $10 million less money in the economy.
How does this benefit the bankers who's representatives huddled in the Jekyll Island?
1. - It totally misdirected banking reform efforts from proper solutions.
2. - It prevented a proper debt-free system of government finance like Lincolns greenbacks from making a comeback. The bond based system of government finance was now cast in stone.
3. - It delegated to the bankers the right to create 90% of our money supply based on only fractional reserves which they then loan out at interest.
4. - It centralized overall control of our nation's money supply in the hands of a few men.
5. - It established a central bank with a high degree of independence from effective political control. [color="#ff0000"]Soon after its creation the Fedââ¬â¢s great contraction in the early 1930's would cause the Great Depression.[/color]
This independence has been enhanced since then through additional laws
[color="#008080"][font="Arial"][size="3"]# The game's afoot[/size][/color][/font]
Once the participants left Jekyll Island the public relations blitz was on.
The big New York banks put together an educational bond of $5 million to finance professors at respected universities to endorse the new bank.
Woodrow Wilson at Princeton was one of the first to jump on the bandwagon.
But the bankers subterfuge didn't work.
The Aldrich Bill was quickly identified as the bankers bill.
A bill to benefit only what became known as the money trust.
As congressman Lindbergh put it during the congressional debate:
[indent][font="Courier New"]"[color="#ff0000"]The Aldrich Plan is the Wall Street Plan. It means another panic, if necessary; to intimidate the people. Aldrich, paid by the government to represent the people, proposes a plan for the trusts instead.[/color]"[/font]
[/indent]
Seeing they didn't have the votes to win in congress, the republican leadership never brought the Aldrich Bill to a vote.
The bankers quietly decided to move to track 2: the democratic alternative.
They begin financing Woodrow Wilson as the democratic nominee.
As respected historian James Perloff put it:
[indent][font="Courier New"]"Wall Street financier Bernard Baruch was put in charge of Wilson's education."[/font]
[font="Courier New"]"Baruch brought Wilson to the Democratic Party Headquarters in New York in 1912, 'leading him like one would a poodle on a string'. Wilson received an 'indoctrination course' from the leaders convened there...."[/font]
[/indent]
So now the stage was set.
The Money Changers were poised to install their privately owned central bank once again.
The damage president Andrew Jackson had done 76 years earlier had been only partly repaired with the passage of the National Bank Act during the civil war.
The Jacksonians became the greenbackers who became the hardcore supporters of William Jennings Bryan. With Bryan leading the charge, these opponents of The Money Changers, ignorant of Baruch tutelage, now threw themselves behind Woodrow Wilson.
[color="#ff0000"]But the greenbackers and Bryan would soon be betrayed.[/color]
Stay tuned...