A little over 100 years ago Wall Street gained control of the United States money supply and credit with the creation of the Federal Reserve System and began the process of conquering America. The power of The Federal Reserve has grown exponentially in the last 15 years and it is now the most powerful institution in America controlling the spending of tens of trillions of dollars. This website attempts to provide information about the creation of The Federal Reserve System.
As seen in the above quote by the eminent economic historian Murray Rothbard the Fed was “a governmentally created and sanctioned cartel device to enable the nation’s banks to inflate the money supply in a coordinated fashion, without suffering quick retribution from depositors or note holders demanding cash.” The book The Origins of the Federal Reserve by Murray Rothbard is a great introduction to this subject.
The Money Trust that is depicted in the pictures shows the danger that is inherent in giving bankers and financiers control of a Nations money supply and credit. That danger has now come full circle with the Federal Reserve in almost complete control of the United States economy and the owners of the Federal Reserve Bank of New York in complete control of the United States Congress. The “Aldrich Plan” in the pictures was named after Senator Nelson W. Aldrich and was the basis of the Federal Reserve Act that passed into law in 1913. The Federal Reserve Act created 12 regional Federal Reserve Banks and a Board of Governors in Washington DC. Of the 12 regional Reserve Banks in the United States the Federal Reserve Bank of New York is by far the dominant bank and the other 11 Reserve Banks are more like think tanks that get an occasional vote on monetary policy questions. With the creation of the Federal Reserve Act our Federal Government elevated a tiny number of people in New York City to be the most privileged people in our society with the control of a government approved printing press. It is the Federal Reserve Bank of New York that has control of this most valuable government enforced privilege. The largest owners of the Federal Reserve Bank of New York are JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of New York Mellon. This story from Wall Street on Parade gets into more detail about the ownership of the New York Fed These Are the Banks that Own the New York Fed and Its Money Button. This arrangement is in fact “privilege through statism” in its purist form and any attempt to take away this extraordinary privilege and reform the current system of monetary policy would be met with ferocious resistance by those attempting to retain their government granted privileges.
When the Federal Reserve Act was being debated in Congress Senator Francis Newlands of Nevada led a coalition of Senators that wanted to create a system that had a Reserve Bank and financial center in every State. Unfortunately the bankers and financiers in New York City won the day and seized control and the United States money supply and credit. The ultimate source of Wall Street’s power is the Federal Reserve Bank of New York – the only Reserve Bank with a permanent vote on monetary policy questions – and the government granted privileges which make the New York Fed so incredibly valuable. Until the Federal Reserve System is abolished and a new system is created the power of Wall Street is going to continue to grow unbounded. The solution to this problem is to decentralize monetary power from New York to the rest of the States. If it is possible to create a State Reserve System where we scale up our current system to one where every State has a permanent vote on monetary policy questions and the weight of that vote is tied to the population of the State we will have created a much fairer and more equitable system of monetary policy.
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Bertie Charles Forbes
Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under the cover of darkness stealthily hieing hundreds of miles South, embarking on a mysterious launch, sneaking on to an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was mentioned lest the servants learn the identity and disclose to the world this strangest, and most secret expedition in the history of American finance.
I am not romancing. I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency, was written.
Bertie Charles Forbes (1880-1954)
Financial journalist, author, founder Forbes Magazine
“Men Who Are Making America,” Leslie’s Weekly, October 19, 1916, p. 423
The Aldrich currency report that is mentioned in the above quote was designed by Senator Aldrich and the men who accompanied him to Jekyll Island, Georgia. It was the Aldrich currency report that formed the basis of the Federal Reserve Act. The seven people who had a seat at the table when the Aldrich currency report was written were:
Senator Nelson W. Aldrich – U.S. Senator
Henry P. Davison – senior partner J.P. Morgan
Frank A. Vanderlip – president of National City Bank of New York
Charles D. Norton – president of J.P. Morgan’s First National Bank of New York
Benjamin Strong – of J.P. Morgan’s Bankers Trust Company
Abraham Piatt Andrew – Assistant Secretary of the U.S. Treasury
Paul M. Warburg – partner in Kuhn, Loeb & Company
Years later Frank Vanderlip wrote about his trip to Jekyll Island with Senator Aldrich.
Frank A. Vanderlip
Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as “Ben,” “Paul,” “Nelson,” ”Abe” – it is Abraham Piat Andrew. Davison and I adopted even deeper disguises, abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville, after those two aviation pioneers, the Wright brothers. Incidentally, for years afterward Davison and I continued the practice, in communications, and when we were together.
The servants and train crew may have known the identities of one or two of us, but they did not know all, and it was the names of all printed together that would have made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery, we knew, simply must not happen, or else all our time and effort would be wasted. If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by Congress.
Frank A. Vanderlip (1864-1937)
From Farm Boy to Financier,” The Saturday Evening Post, pg. 70, Feb. 9, 1933
Paul M. Warburg
Though eighteen years have gone by, I do not feel free to give a description of this most interesting conference which Senator Aldrich pledged all participants to secrecy.
— The Federal Reserve System: Its Origin and Growth (New York: MacMillen, 1930), Vol. I, pg. 58
John William Wright Patman
The power to create money is an inherent power of government. As President Lincoln said:
“The privilege of creating and issuing money is not only the supreme prerogative of the government, it is the Governments greatest opportunity.”
During the past several centuries, various governments in the Western World have, at various times, delegated the money-creating power to private groups or had this power taken from them by default. In these situations, control of the Nations affairs has been not so much in the hands of the official head of state, but in the hands of the private groups controlling the money system. A famous British banker once summed up the matter this way:
“They who control the credit of the nation direct the policy of governments, and hold in their hands the destiny of the people.”
Reginald Mckenna, Chancellor of the Exchequer of Britain during the WWI period.
As we look over human history, we find the tribal chief, the king, the pharaoh, or the emperor has usually had direct or indirect control of the society’s money. In the modern, constitutional governments, one or another branch of the government is given responsibility for establishing and managing the money system. In the United States, the Constitution gives these powers to Congress.
John William Wright Patman (1893-1976)
Chairman of the United States House Committee on Banking and Currency (1965-1975)
— Primer on Money pg. 24, 1964 Produced by the Subcommittee on Domestic Finance
Congressman Ron Paul is referring to the Executive Order above signed by
President Roosevelt. At this time the Federal Government confiscated the
gold of the American people and transferred all of that gold to the
Federal Reserve System.
The Founders of this Country, and a large majority of the American people up until the 1930s, disdained paper money, respected commodity paper, and disproved of a central bank’s monopoly control of money creation and interest rates. Ironically, it was the abuse of the gold standard, the Fed’s credit creating habits of the 1920s, and its subsequent mischief in the 1930s, that not only gave us the Great Depression, but also prolonged it. Yet sound money was blamed for all the suffering. That’s why people hardly objected when Roosevelt and his statist friends confiscated gold and radically debased the currency, ushering in the age of worldwide fiat currencies with which the international economy struggles today.
Ron Paul (1935- )
Chairman of the House Financial Services Subcommittee on Domestic Monetary Policy
— Speech in the House of Representatives 5 September 2003
And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.
Thomas Jefferson (1743-1826)
Third President United States
— Letter to John Taylor, Monticello, 28 May 1816. Ford 11:533.
Thomas Hart Benton
Wise and prudent was the conduct of those who refused to recharter the second Bank of the United States. They profited by the error of their friends who refused to recharter the first one. These latter made no preparations for the event – did nothing to increase the constitutional currency – and did not even act until the last moment. The renewed charter was only refused a few days before the expiration of the existing charter, and the federal government fell back to the State banks, which immediately sunk under its weight. The men of 1832 acted very differently. They decided the question of the renewal long before the expiration of the existing charter. They revived the gold currency, which had been extinct for thirty years. They increased the silver currency by repealing the act of 1819 against the circulation of foreign silver. They branched the mints. In a word, they raised the specie currency from twenty millions to near one hundred millions of dollars; and thus supplied the country with a constitutional currency to take the place of the United States Bank notes. The supply was adequate, being nearly ten times the average circulation of the national bank. That average circulation was but eleven millions of dollars; the gold and silver was near one hundred millions. The success of our measures was complete. The country was happy and prosperous under it; but the architects of mischief – the political, gambling, and rotten parts of the banks, headed by the Bank of the United States, and aided by a political party – set to work to make panic and distress, to make suspensions and revulsions, to destroy trade and business, to degrade and poison the currency; to harass the country until it would give them another national bank: and to charge all the mischief they created upon the democratic administration. This has been their conduct; and having succeeded in the last presidential election, they now come forward to seize the spoils of victory in creating another national bank, to devour the substance of the people, and to rule the government of their people.
Thomas Benton (1782-1858)
–Thirty Years’ View, pg. 228, 1858