[color="#008080"][size="4"]Part XIII[/size][/color][size="4"][color="#008080"][size="2"] (of XVIII)[/size] :[/color][/size][color="#008080"][size="4"] The Creature from Jekyll Island[/size][/color]
[size="3"][color="#008080"][font="Arial"]# The Fed Act of 1913[/color][/size]
During the presidential campaign the democrats were careful to pretend to oppose the Aldrich Bill.
As representative Louis McFadden, himself a democrat, as well as chairman of the House of Banking and Currency committee, explained it 20 years after the facts:
[/font][indent][font="Courier New"]"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 if 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."[/font]
[/indent]
Once Wilson was elected Morgan, Warburg, Baruch & company advanced a new plan which Warburg named the federal reserve system.
The democratic leadership then opened a new bill called The Glass Owen Bill as something radically different from The Aldrich Bill.
But in fact the bill was virtually identical in every important detail.
In fact so vehement was the democratic denials of similarities that Paul Warburg, the father of both bills, had to step in to reassure paid friends in congress that the two bills were virtually identical:
[indent][font="Courier New"]"Brushing aside the external differences affecting the 'shells,' we find the 'kernels' of the two systems very closely resembling and related to one another."[/font]
[/indent]
But that admission was for private consumption only!
Publicly, the money trust trotted out senator Aldrich and Frank Vanderlip, the president of Rockefeller National Citibank of New York and one of the Jekyll Island's seven, to oppose the new federal reserve system.
Years later however Vanderlip admitted in the Saturday Evening Post that the two measures were virtually identical:
[indent][font="Courier New"]"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."[/font]
[/indent]
As congress neared a vote they called Ohio attorney Alfred Crozier to testify.
Crozier noticed the similarities between the Aldrich bill and the Glass-Owen bill:
[indent][font="Courier New"]"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."[/font]
[/indent]
During the debate senators complained that the big banks where using their financial muscles to influence the outcome.
Despite the charges of deceit and corruption, [color="#ff0000"]the bill was finally snuck through the senate on December 22nd 1913, after most senators had left town for the holidays, after having been assured by the leadership, that nothing would be done until long after the Christmas recess.[/color]
On the day the bill was passed, congressman Lindbergh prophetically warned his country that:
[indent][font="Courier New"]"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 of reckoning is only a few years removed.... The worst legislative crime of the ages is perpetrated by this banking bill."[/font]
[/indent][size="3"][color="#008080"][font="Arial"]# Legalizing Income Tax[/color][/size][/font]
On top of all this, only weeks earlier congress had finally passed a bill legalizing income tax.
Why was the income tax law important?
Because bankers finally had in place a system which would run up a virtually unlimited federal debt.
How would the interest on this debt be repaid, never mind the principle?
Remember a privately owned central bank creates the principle out of nothing.
The federal government was small then. Up to then it had subsisted merely on tariffs and excise taxes.
Now just as with The Bank of England, interest payments had to be guaranteed by direct taxation of the people.
The Money Changers knew that if they had to rely on contributions from the states, eventually the individual state legislators would revolt, and either refuse to pay the interest on their own money, or at least bring political pressure to bear to keep the debt small.
It is interesting to know that in 1895 the supreme court had found a similar income tax law to be unconstitutional. The supreme court even found a corporate income tax law unconstitutional in 1909.
As a result, senator Aldrich hustled the bill for a constitutional amendment allowing income tax through the congress in October of 1913. The proposed 16th amendment to the constitution was then send to the state legislators for approval.
But some critics claim that the 16th amendment was never ratified by the necessary three quarters of the states.
In other words the [color="#ff0000"]16th amendment may not be legal.[/color]
[size="3"][color="#008080"][font="Arial"]# 'I have unwittingly ruined the government'[/color][/size][/font]
A year after the passage of the federal reserve bill, congressman Lindbergh explained how the Fed created what we have come to call the [color="#ff0000"]business-cycle[/color] and how they use it to their advantage:
[indent][font="Courier New"]"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... business men are adjusted to these conditions, it can check... prosperity in mid-career by arbitrarily raising the rate of interest.... [color="#ff0000"]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[/color]... 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 the 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..."[/font]
[/indent]
Congressman Lindbergh was correct on all points.
What he didn't realize was that most European nations had already fallen prey to the central bankers decades or centuries earlier.
But he also mentions the interesting fact that only one year later the Fed had cornered the market in gold.
Congressman Louis McFadden, the chairman of The House Banking and Currency Committee, from 1920 to 1931, remarked that the Federal Reserve Act brought about:
[indent][font="Courier New"]"... a super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure."[/font]
[/indent]
Notice how McFadden saw the international character of the stockholders of the federal reserve.
Another chairman of The House Banking and Currency Committee in the 1960's, Wright Patman from Texas, put it this way:
[indent][font="Courier New"]"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."[/font]
[/indent]
Even the inventor of the electric light, Thomas Edison, joined the fray in criticizing of the system of the Federal Reserve:
[indent][font="Courier New"]"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."[/font]
[/indent]
Three years after the passage of the Federal Reserve Act, even president Wilson began to have second thoughts about what had been unleashed during his first term in office :
[indent][font="Courier New"]"We have come to be one of the worst ruled, one of the most completely controlled governments in the civilized world - [color="#ff0000"]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....[/color] [color="#ff0000"]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[/color] above their breath when they speak in condemnation of it."[/font]
[/indent]
Before his death in 1924, president Wilson realized the full extend of the damage he done to America when he confessed:
[indent][font="Courier New"]"I have unwittingly ruined my government".[/font]
[/indent]
So finally The Money Changers, those who profit by manipulating the amount of money in circulation, have their privately owned central bank installed again in America.
The major newspapers, which they also owned, hailed passage of the Federal Reserve Act in 1913 telling the public that now depressions could be scientifically prevented.
The fact of the matter was, that [color="#ff0000"]now depressions could be scientifically created.[/color]
Stay tuned...
[size="3"][color="#008080"][font="Arial"]# The Fed Act of 1913[/color][/size]
During the presidential campaign the democrats were careful to pretend to oppose the Aldrich Bill.
As representative Louis McFadden, himself a democrat, as well as chairman of the House of Banking and Currency committee, explained it 20 years after the facts:
[/font][indent][font="Courier New"]"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 if 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."[/font]
[/indent]
Once Wilson was elected Morgan, Warburg, Baruch & company advanced a new plan which Warburg named the federal reserve system.
The democratic leadership then opened a new bill called The Glass Owen Bill as something radically different from The Aldrich Bill.
But in fact the bill was virtually identical in every important detail.
In fact so vehement was the democratic denials of similarities that Paul Warburg, the father of both bills, had to step in to reassure paid friends in congress that the two bills were virtually identical:
[indent][font="Courier New"]"Brushing aside the external differences affecting the 'shells,' we find the 'kernels' of the two systems very closely resembling and related to one another."[/font]
[/indent]
But that admission was for private consumption only!
Publicly, the money trust trotted out senator Aldrich and Frank Vanderlip, the president of Rockefeller National Citibank of New York and one of the Jekyll Island's seven, to oppose the new federal reserve system.
Years later however Vanderlip admitted in the Saturday Evening Post that the two measures were virtually identical:
[indent][font="Courier New"]"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."[/font]
[/indent]
As congress neared a vote they called Ohio attorney Alfred Crozier to testify.
Crozier noticed the similarities between the Aldrich bill and the Glass-Owen bill:
[indent][font="Courier New"]"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."[/font]
[/indent]
During the debate senators complained that the big banks where using their financial muscles to influence the outcome.
Despite the charges of deceit and corruption, [color="#ff0000"]the bill was finally snuck through the senate on December 22nd 1913, after most senators had left town for the holidays, after having been assured by the leadership, that nothing would be done until long after the Christmas recess.[/color]
On the day the bill was passed, congressman Lindbergh prophetically warned his country that:
[indent][font="Courier New"]"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 of reckoning is only a few years removed.... The worst legislative crime of the ages is perpetrated by this banking bill."[/font]
[/indent][size="3"][color="#008080"][font="Arial"]# Legalizing Income Tax[/color][/size][/font]
On top of all this, only weeks earlier congress had finally passed a bill legalizing income tax.
Why was the income tax law important?
Because bankers finally had in place a system which would run up a virtually unlimited federal debt.
How would the interest on this debt be repaid, never mind the principle?
Remember a privately owned central bank creates the principle out of nothing.
The federal government was small then. Up to then it had subsisted merely on tariffs and excise taxes.
Now just as with The Bank of England, interest payments had to be guaranteed by direct taxation of the people.
The Money Changers knew that if they had to rely on contributions from the states, eventually the individual state legislators would revolt, and either refuse to pay the interest on their own money, or at least bring political pressure to bear to keep the debt small.
It is interesting to know that in 1895 the supreme court had found a similar income tax law to be unconstitutional. The supreme court even found a corporate income tax law unconstitutional in 1909.
As a result, senator Aldrich hustled the bill for a constitutional amendment allowing income tax through the congress in October of 1913. The proposed 16th amendment to the constitution was then send to the state legislators for approval.
But some critics claim that the 16th amendment was never ratified by the necessary three quarters of the states.
In other words the [color="#ff0000"]16th amendment may not be legal.[/color]
[size="3"][color="#008080"][font="Arial"]# 'I have unwittingly ruined the government'[/color][/size][/font]
A year after the passage of the federal reserve bill, congressman Lindbergh explained how the Fed created what we have come to call the [color="#ff0000"]business-cycle[/color] and how they use it to their advantage:
[indent][font="Courier New"]"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... business men are adjusted to these conditions, it can check... prosperity in mid-career by arbitrarily raising the rate of interest.... [color="#ff0000"]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[/color]... 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 the 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..."[/font]
[/indent]
Congressman Lindbergh was correct on all points.
What he didn't realize was that most European nations had already fallen prey to the central bankers decades or centuries earlier.
But he also mentions the interesting fact that only one year later the Fed had cornered the market in gold.
Congressman Louis McFadden, the chairman of The House Banking and Currency Committee, from 1920 to 1931, remarked that the Federal Reserve Act brought about:
[indent][font="Courier New"]"... a super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure."[/font]
[/indent]
Notice how McFadden saw the international character of the stockholders of the federal reserve.
Another chairman of The House Banking and Currency Committee in the 1960's, Wright Patman from Texas, put it this way:
[indent][font="Courier New"]"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."[/font]
[/indent]
Even the inventor of the electric light, Thomas Edison, joined the fray in criticizing of the system of the Federal Reserve:
[indent][font="Courier New"]"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."[/font]
[/indent]
Three years after the passage of the Federal Reserve Act, even president Wilson began to have second thoughts about what had been unleashed during his first term in office :
[indent][font="Courier New"]"We have come to be one of the worst ruled, one of the most completely controlled governments in the civilized world - [color="#ff0000"]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....[/color] [color="#ff0000"]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[/color] above their breath when they speak in condemnation of it."[/font]
[/indent]
Before his death in 1924, president Wilson realized the full extend of the damage he done to America when he confessed:
[indent][font="Courier New"]"I have unwittingly ruined my government".[/font]
[/indent]
So finally The Money Changers, those who profit by manipulating the amount of money in circulation, have their privately owned central bank installed again in America.
The major newspapers, which they also owned, hailed passage of the Federal Reserve Act in 1913 telling the public that now depressions could be scientifically prevented.
The fact of the matter was, that [color="#ff0000"]now depressions could be scientifically created.[/color]
Stay tuned...