Influences behind the Fed
When you read about the players who were instrumental behind the Fed, you will see a nefarious group's centuries-old plan beginning to take shape.
President Andrew Jackson, the only administration to totally abolish the National Debt, condemned the international bankers as a "den of vipers” and determined to "rout out" these vermin. Jackson lamented that if only the American people understood how these vipers operated on the American scene "there would a revolution before morning."
After Congress passed the Federal Reserve Act on December 23, 1913, Congressman Charles Lindbergh said: "The Act establishes the most gigantic trust on earth. When the President [Wilson] signs this Bill, the invisible government of the monetary power will be legalized.... The greatest crime of the ages is perpetrated by this banking and currency bill."
Congressman Louis T. McFadden who, for more than ten years, served as chairman of the Banking and Currency Committee, stated that the international bankers are a "dark crew of financial pirates who would cut a man's throat to get a dollar out of his pocket... They prey upon the people of these United States."
John F. Hylan, mayor of New York in 1911: "[T]he real menace of our republic is the invisible government which, like a giant octopus, sprawls its slimy length over our city, state and nation. At the head is a small group of banking houses, generally referred to as 'international bankers.'"
Were these leading public figures conspiracy theorists? Paranoid? Or, were they correct in their assessment?
The book entitled, Federal Reserve Directors: A Study of Corporate and Banking Influence , Published 1976, reveals the direct connection between the Rothschilds, the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their holdings of bank stock and their subsidiaries in New York.
The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. were firms that set up the 1910 Jekyll Island Conference at which the Federal Reserve Act was drafted.
In attendance for this secret meeting in 1910 was Senator Nelson Aldrich, John D. Rockefeller, Jr.’s father-in-law, and head of the National Monetary Commission, enacted in 1908 as a result of the panic of 1907. Aldrich had spent $300 thousand dollars of public money to take members of the Commission on a two-year tour of Europe, yet had not reported to Congress the results, nor had he offered any plan for banking reform.
Also in attendance for the meeting were Aldrich's private secretary, Arthur Shelton; A. Piatt Andrew, Assistant Secretary of the Treasury and Special Assistant of the National Monetary Commission; Frank Vanderlip, president of the National City Bank of New York; Henry P. Davison, senior partner of J.P. Morgan Company; and, Charles D. Norton, president of the Morgan-dominated First National Bank of New York. Joining the group just before the train left the station were Benjamin Strong of J.P. Morgan; and Paul M. Warburg, a recent German immigrant who had joined the banking house of Kuhn, Loeb.
Paul Warburg and the Federal Reserve
Warburg was born in 1868, in Hamburg, Germany, to a prominent banking family. After graduating from Realgymnasium, Warburg began working in London for an undisclosed banking and discounting firm and then a London stockbroker. Warburg moved to France where he worked for a Russian bank for foreign trade. Mr. Warburg took some time to travel through India, China and Japan and settled back in Germany as a partner in the family banking firm of M.M. Warburg & Co., founded 1798.
Warburg’s business trips while working for his family’s banking firm took him to New York several times. In 1895, Warburg married Nina J. Loeb, and joined the New York investment firm of Kuhn, Loeb & Co., founded by her father, Solomon Loeb. Paul and Nina had a son in 1896. But, Warburg continued living in Germany, seemingly working for M. M. Warburg? By his own admission Paul Warburg states he lived permanently in the U.S. only beginning in 1902 and finally became a citizen in 1911.
Warburg was a director of Wells Fargo & Company in February 1910, but resigned in September, 1914, after his appointment to the Federal Reserve Board, and Jacob Schiff, his wife's brother-in-law, was elected to his seat on the Wells Fargo board, while he remained in leadership at Kuhn, Loeb.
Among his business endeavors, Paul Warburg became director of the Council on Foreign Relations when it was founded in 1921, remaining there until his death in 1932; and, also trustee of the Institute of Economics in 1922 and, when it was merged into the Brookings Institute in 1927, became trustee.
Warburg believed there existed a lagging state of development in the American banking industry that a central institution would cure. This institution could rediscount bank promissory notes to facilitate the exchange of promises of future payment for cash. Warburg wanted to develop an institution like Reichsbank that could fulfill this role, making it easier for the excess reserves of one bank to be used to bolster the insufficient reserves of another.
Warburg was not even a U.S. citizen, but was influential, in developing and enacting the Fed!
Father Coughlin’s periodical, Social Justice, saw Warburg’s influence on the final form of the Federal Reserve Act as on a par with that of the bill’s main sponsor, Congressman Carter Glass, charging them both with the “chief credit for ‘putting over’ the Federal Reserve System.” (The Cavalcade of Greed,” Social Justice, 8/3/1936, p. 9.)
Harold Kellock of The Century Magazine castigated Warburg as “the mildest-mannered man that ever personally conducted a revolution.”
After that secret planning meeting between government representatives and private banking, a campaign was designed to have the plan enacted into law by Congress and the members would purchase controlling amounts of stock in the Federal Reserve Bank of New York.
Principal officers of the firms represented at the meeting were appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. A few families caused the banks in which they owned controlling stock to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976, and the current stockholders list of the 12 regional Federal Reserve Banks show this continued family control.
Did Paul Warburg come to the United States to aid in establish the institution designed as the downfall of the United States? The institution President Thomas Jefferson said would be the undoing of the Republic?
Kuhn, Loeb & Co. was an investment bank, founded in 1867 in the mid-west by Abraham Kuhn and Solomon Loeb and relocated to New York City. On January 1, 1875, Solomon Loeb's son-in-law, Jacob Schiff, joined the firm. The firm grew to be the second most prestigious investment bank in the United States, behind J.P. Morgan & Co.
Kuhn, Loeb acted as the leading investment house for John D. Rockefeller and partnered with Rockefeller in 1911 to gain control of the Equitable Trust Company, which was later merge with and became Chase Bank.
Famous partners of the firm included Otto Kahn, Paul Warburg, Felix Warburg, Mortimer Schiff, Benjamin Buttenwieser, Lewis Strauss, and Sigmund Warburg. The partners of Kuhn, Loeb were closely related by blood and marriage to the partners of J & W Seligman, Speyer & Co., Goldman, Sachs & Co., Lehman Brothers and other prominent firms. Prior to the Second World War, a particularly close relationship existed between the partners of Kuhn, Loeb and M. M. Warburg & Co. of Hamburg, Germany through its partners, Paul and Felix.
(Kuhn, Loeb existed until 1977 when, facing a capital crisis, the firm merged with Lehman Brothers, to form Lehman Brothers, Kuhn, Loeb Inc. Lehman was eventually sold to American Express in 1984.)
Jacob Schiff had important financial connections in Europe and Kuhn, Loeb brought European capital into contact with American industry.
Jacob Schiff married Nina Loeb’s sister and worked for the same father-in-law and in the same industry as Paul Warburg. Did Warburg meet Nina through Schiff? Schiff's "important financial connections in Europe" were the Rothschilds and their German representatives, the M. M. Warburg Company of Hamburg and Amsterdam, as evidenced by Loeb's daughter marrying Paul Warburg in 1895.
At a hearing of the House Committee on Banking and Currency in 1913, Warburg revealed that he was "a member of the banking firm of Kuhn, Loeb and Co. I came to this country in 1902, having been born and educated in the banking business in Hamburg, Germany, and studied banking in London and Paris, and have gone all around the world...."
In the late 1800s, people didn't study banking in London and "all around the world" unless they had a special mission to perform! Better yet, if Paul Warburg was born into a prominent banking family, why did he work in London and Paris for competitors? Could it be coincidence that the Rothschild house has offices in London and Paris?
Like his brother-in-law, Jacob Schiff was also in favor of a Central Bank in the U.S. Early in 1907, in a speech to the New York Chamber of Commerce, Jacob Schiff of Kuhn, Loeb and Co. warned, "unless we have a Central Bank with adequate control of credit resources, this country is going to undergo the most severe and far reaching money panic in its history."
The 1907 Panic - A Precursor to the Fed and then the Great Depression
Shortly after Schiff’s prophetic statement, the United States was plunged into the ‘panic of 1907’ (a/k/a, 1907 Bankers Panic), a financial crisis that occurred when the New York Stock Exchange fell almost 50% from its peak the previous year. Panic was triggered by the failed attempt in October 1907 to corner the market on United Copper Company stock and resulted in numerous runs on banks and trust companies.
Banks that had lent money suffered runs that later spread to affiliated banks and trusts, leading a week later to the collapse of New York City's third-largest trust, the Knickerbocker Trust Company, and spread fear throughout the city's trusts when regional banks withdrew reserves from New York City banks. Panic spread across the nation much like 1929.
Financier, J. P. Morgan, pledged large sums of his own money, and convinced other New York bankers to do the same; and, by November, panic waned. Then, as if to emphasize the precarious situation, another crisis began when a large brokerage firm borrowed heavily using the stock of Tennessee Coal, Iron and Railroad Company (TC&I) as collateral. Collapse of TC&I's stock price was avoided by an emergency takeover by Morgan again, through his company, U..S. Steel Corporation (even anti-monopolist, Teddy Roosevelt approved of this takeover). Seems to me that this was a win-win situation for Morgan!
The following year, Senator Nelson W. Aldrich, father-in-law of John D. Rockefeller, Jr., established and also chaired a commission to investigate the crisis and propose future solutions, leading to the Jekyll Island group and the Fed.
Did Jacob Schiff have inside information regarding the panic of 1907 would happen and so soon? Was this a planned event to create panic so the public would demand action? If the Fed was the answer, why did the crash of 1929 cause a worse event?
Who are the Rothschilds? And, what do they have to do with the Fed?
On February 17, 1950, as John Paul Warburg, son of Paul M. Warburg, and former financial advisor to President Franklin D. Roosevelt, stated before the U.S. Senate: 'We will have a world government whether you like it or not. The only question is whether that government will be achieved by conquest or consent.'
The House of Rothschild began in Frankfurt-On-The-Main in Germany in 1750, where Mayer Amschel Bauer was born. His father, Moses Amschel Bauer was an itinerant money lender and goldsmith who decided to settle down in the city where his first son was born and open a counting house. Over the door of Moses’ shop, he placed a large Red Shield (Moses had adopted this shield from the Red Flag which was the supposed emblem of revolutionary minded Jews in eastern Europe). Mayer learned everything he knew about money lending from his father.
Moses died when Mayer was still young, and Mayer obtained work as a clerk in a bank owned by the Oppenheimers in Hannover. He advanced quickly in the firm due to his abilities and was given a junior partnership.
Mayer left his partnership and returned to Frankurt to re-purchase his father’s business. Referring to the Red Shield still displayed over the door, Mayer Amschel Bauer changed his name to Rothschild.
Mayer had run errands for General von Estorff while employed at the Oppenheimer Bank. After returning to Frankfurt, Mayer renewed his acquaintance with von Estorff and discovered that the general was attached to the court of Prince William of Hanau and was interested in rare coins. Mayer curried favor with the general and other influential members of the court by offering valuable coins and trinkets at discount prices.
Continued on the Tab: More Rothschild ...