Modern History Project

 "A little learning is a
dangerous thing"

Final Warning

: A History of the New World Order
Illuminism and the master plan for world domination
-- by: David Allen Rivera, 1994, source: darivera.com
MHP hypertext version for non-profit educational use only

2.2  Creation of the Federal Reserve System


Jacob Schiff, Paul Warburg, Jekyll Island and the creation of the Fed

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Jacob Schiff (1847-1920)

The end of the Civil War in 1865 ruined the Illuminati's chances to control our monetary system as they did in most European countries. So, the Rothschilds modified their plan for financial takeover. Instead of tearing down from the top, they were going to start at the bottom to disrupt the foundation of our monetary system. The instrument of this destruction was a young immigrant by the name of Jacob Schiff.

The Schiff family traced their lineage back to the fourteenth century and even claimed that King Solomon was an ancestor. Jacob Schiff was born in 1847 in Frankfurt, Germany. His father, Moses Schiff, a rabbi, was a successful stockbroker on the Frankfurt Stock Exchange. In 1865 he came to America and in 1867 formed his own brokerage firm with Henry Budge and Leo Lehmann. After it failed, he went back to Germany and became manager of the Deutsche Bank in Hamburg where he met Moritz Warburg (1838-1910) and Abraham Kuhn, who had retired after helping to establish the firm of Kuhn and Loeb in New York.

Kuhn and Loeb were German Jews who had come to the United States in the late 1840's and pooled their resources during the 1850's to start a store in Lafayette, Indiana to serve settlers who were on their way to the West. They set up similar stores in Cincinnati and St. Louis. Later, they added pawnbroking and money lending to their business pursuits. In 1867, they established themselves as a well-known banking firm.

In 1873, at the age of 26, Jacob Schiff with the financial backing of the Rothschilds bought into the Kuhn and Loeb partnership in New York City. He became a full partner in 1875. He became a millionaire by financing railroads, developing a proficiency at railroad management that enabled him to enter into a partnership with Edward Henry Harriman to create the greatest single railroad fortune in the world. He married Solomon Loeb's oldest daughter, Theresa, and eventually bought out Kuhn's interest. For all intents and purposes he was the sole owner of what was now known as Kuhn, Loeb and Company. Sen. Robert L. Owen of Oklahoma indicated that Kuhn, Loeb and Company was a representative of the Rothschilds in the United States .

Although J.P. Morgan, the top American Rothschild representative, was the head of the American financial world, Schiff was rapidly becoming a major influence by distributing desirable European stock and bond issues during the Industrial Revolution. Besides Edward H. Harriman's railroad empire, he financed Standard Oil for John D. Rockefeller (1839-1937) and Andrew Carnegie's (1835-1919) steel empire. By the turn of the century Schiff was firmly entrenched in the banking community and ready to fulfill his role as the point man in the Illuminati's plan to control our economic system, weaken Christianity, create racial tension, and to recruit members to get them elected to Congress and appointed to various government agencies.

John Pierpont Morgan (1837-1913)

In 1636, Miles, John, and James Morgan landed in Massachusetts, leaving their father, William, to carry on the family business of harness-making in England. Joseph Morgan (J. P. Morgan's grandfather), successful in real estate and business, supported the Bank of the United States. Junius Spencer Morgan (J. P. Morgan's father) was a partner in the Boston banking firm of J. M. Beebe, Morgan, and Co. and became a partner in London's George Peabody and Co., taking it over when Peabody died, becoming J. S. Morgan and Co.

John Pierpont Morgan, or as he was better known, J. P. Morgan, was born on April 17, 1837. He became his father's representative in New York in 1860. In 1862, he had his own firm, known as J. Pierpont Morgan and Co.. In 1863, he liquidated, and became a partner with Charles H. Dabney (who represented George Peabody and Co.), and established a firm known as Dabney, Morgan and Co. He later teamed up with Anthony J. Drexel (son of the founder of the most influential banking house in Philadelphia), in a firm known as Drexel, Morgan and Co. Morgan also became a partner in Drexel and Co. in Philadelphia.

In 1869, Morgan and Drexel met with the Rothschilds in London, and through the Northern Securities Corporation began consolidating the Rothschild's power and influence in the United States. Morgan continued the partnership that began when his father acted as a joint agent for the Rothschilds and the U.S. Government.

During the Civil War, J.P. Morgan had sold the Union Army defective carbine rifles, and it was this government money that helped build his Guaranty Trust Co. of New York. In 1880, he began financing and reorganizing the railroads. After his father died in 1890 and Drexel died in 1893, the Temporary National Economic Committee (TNEC) revealed that J. P. Morgan held only a 9.1% interest in his own firm. George Whitney owned 1.9%, and Henry P. Davison held 1.2%. However, the Charles W. Steele Estate held 36.6%, and Thomas W. Lamont (whose son, Corliss, was an active communist) had 34.2%. Researchers believe that the Illuminati controlled the company through these shares.

In 1901, J.P. Morgan bought out Andrew Carnegie's vast steel operation for $500,000,000 to merge the largest steel companies into one big company known as the United States Steel Corporation in which, for a time, the Rockefellers were major stockholders.

A speech by Senator Norris which was printed in the Congressional Record of November 30, 1941, said:

"J. P. Morgan, with the assistance and cooperation of a few of the interlocking corporations which reach all over the United States in their influence, controls every railroad in the United States. They control practically every public utility, they control literally thousands of corporations, they control all of the large insurance companies.

Mr. President, we are gradually reaching a time, if we have not already reached that point, when the business of the country is controlled by men who can be named on the fingers of one hand, because those men control the money of the Nation, and that control is growing at a rapid rate."

The House of Morgan grew larger in 1959, when the Guaranty Trust Co. of New York merged with the J. Pierpont Morgan and Co. to form the Morgan Guaranty Trust Co.. They had four branch offices, and foreign offices in London, Paris, Brussels, Frankfurt, Rome, and Tokyo. The firm of Morgan, Stanley and Co. was also under their control.

The Warburg Brothers

Paul Moritz Warburg (1868-1932) and his brother Felix (1871-1937) came to the United States from Frankfurt in 1902, buying into the partnership of Kuhn, Loeb and Co. with the financial backing of the Rothschilds. They had been trained at the family banking house, M.M. Warburg and Co. (run by their father Moritz M. Warburg (1838-1910), a Rothschild-allied bank in Frankfurt, Hamburg, and Amsterdam, which had been founded in 1798 by their great-grandfather. Paul (said to be worth over $2.5 million when he died) married Nina Loeb, the daughter of Solomon Loeb (the younger sister of Schiff's wife); while Felix, in March, 1895, married Frieda Schiff, the daughter of Jacob Schiff.

Their brother Max Warburg (1867-1946), a major financier of the Russian Revolution (who in his capacity as Chief of Intelligence in Germany 's Secret Service, helped Lenin cross Germany into Russia in a sealed train and later [helped] Hitler), ran the Hamburg bank until 1938 when the Nazis took over. The Nazis, who didn't want the Jews running the banks, changed its name to Brinckmann, Wirtz and Co. After World War II, a cousin, Eric Warburg, returned to head it and in 1970 its name was changed to M. M. Warburg, Brinckmann, Wirtz and Co.

Siegmund Warburg, Eric's brother, established the banking firm of S.G. Warburg and Co. in London, and by 1956 had taken over the Seligman Brothers Bank.

The Warburgs are another good example of how the Illuminati controls both sides of a war. While Paul Warburg's firm of Kuhn, Loeb and Co. (who had five representatives in the U.S. Treasury Department) was in charge of Liberty Loans which helped finance World War I for the United States, his brother Max financed Germany through M.M. Warburg and Co.

Paul and Felix were men with a mission sent here by the Rothschilds to lobby for the passing of a central banking law in Congress. Colonel Ely Garrison (the financial advisor to Presidents Theodore Roosevelt and Woodrow Wilson) wrote in his book Roosevelt, Wilson, and the Federal Reserve Act:

"Mr. Paul Warburg is the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition. The mastermind of both plans was Alfred Rothschild of London."

Professor E.R.A. Seligman, head of the Economics Department of Columbia University, wrote in the preface of one of Warburg's essays on central banking: "The Federal Reserve Act is the work of Mr. (Paul) Warburg more than any other man in the country."

The Push for a New Central Bank

It is interesting to note that the fifth plank in the 1848 Communist Manifesto had to do with central banking:

"5. Centralization of credit in the hands of the State, by means of a national bank with state capital and an exclusive monopoly."

In 1903, Paul Warburg gave Schiff a memo describing the application of the European central banking system to America 's monetary system. Schiff, in turn, gave it to James Stillman, President of the National City Bank in New York City. Warburg had graduated from the University of Hamburg in 1886 and studied English central banking methods while working in a London brokerage house. In 1891 he studied French banking methods and from 1892-93 traveled the world to study central banking applications. The bottom line was that he was the foremost authority in the world on central banking.

In 1906, Frank A. Vanderlip of the National City Bank convinced many of New York's banking establishment that they needed a banker-controlled central bank that could serve the nation's financial system. Up to that time, the House of Morgan had filled that role. Some of the people involved with Morgan were:

The financial panics of 1873, 1884, 1893, 1907, and later 1920, were initiated by Morgan with the intent of pushing for a much stronger banking system.

On January 6, 1907, the New York Times published an article by Paul Warburg called "Defects and Needs of Our Banking System," after which he became the leading exponent of monetary reform. That same year Jacob Schiff told the New York Chamber of Commerce that "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 history." When Morgan initiated the economic panic in 1907 by circulating rumors that the Knickerbocker Bank and Trust Co. of America was going broke, there was a run on the banks creating a financial crisis which began to solidify support for a central banking system. During this panic Warburg wrote an essay called "A Plan for a Modified Central Bank" which called for a Central Bank in which 50% would be owned by the government and 50% by the nation's banks. In a speech at Columbia University he quoted Abraham Lincoln who said in an 1860 Presidential campaign speech: "I believe in a United States Bank."

In 1908 Schiff laid out the final plans to seize the American monetary system. 'Colonel' (an honorary title) Edward Mandell House (1858-1938), the son of British financier Thomas W. House a Rothschild agent who made his fortune by supplying the south with supplies from France and England during the Civil War, was Schiff's chief representative and courier. [Along with House], Bernard Baruch (1870-1965) whose stock market speculating made him a multi-millionaire by the early 1900's and whose foreign and domestic policy expertise led Presidents from Wilson to Kennedy to seek his advice, were relied on heavily by Schiff to carry out his plans. Herbert Lehman was also a close aide to Schiff.

President Woodrow Wilson wrote about House (published in The Intimate Papers of Col. House):

"Mr. House is my second personality. He is my independent self. His thoughts and mine are one. If I were in his place, I would do just as he suggested ... If anyone thinks he is reflecting my opinion, by whatever action he takes, they are welcome to the conclusion."

George Sylvester Viereck wrote in The Strangest Friendship in History: Woodrow Wilson and Colonel House: "When the Federal Reserve legislation at last assumed definite shape, House was the intermediary between the White House and the financiers."

Jacob Schiff who was known as the "unseen guardian angel" of the Federal Reserve Act said that the U.S. Constitution was the product of 18th century minds, was outdated, and should be "scrapped and rewritten."

In 1908 Sen. Nelson W. Aldrich (father-in-law of John D. Rockefeller, Jr. and grandfather of Nelson and David Rockefeller) proposed a bill in which banks, in an emergency situation, would issue currency backed by federal, state, and local government bonds, and railroad bonds, which would be equal to 75% of the cash value of the bonds. It was harshly criticized because it didn't provide a monetary system that would respond to the seasonal demand and fluctuate with the volume of trade. Aldrich was the most powerful man in Congress and the Illuminati's head man in the Senate. A member of Congress for 40 years, 36 of them in the Senate, he was Chairman of the powerful Senate Finance Committee.

In the House of Representatives, Rep. E. B. Vreeland of New York proposed the Vreeland Bill. After making some compromises with Aldrich and Speaker of the House Joseph Cannon at a meeting in a hotel room at the Arlington House his bill became known as the Vreeland Substitute. It called for the acceptance of asset currency but only in cases of emergency, and the currency would be based on commercial paper rather than bonds. It passed in the House 184 to 145; but when it got to the Senate, Aldrich moved against it and pushed for further compromises.

The Aldrich-Vreeland Bill, called the "Emergency Currency Act", was passed on May 30, 1908 and led to the creation of the National Monetary Commission which was made up of members of Congress. Now, any monetary legislation sent to Congress would have to go through this group first. Aldrich was appointed as head of the Commission and from 1908 to 1910 at a cost of $300,000, this 16-man committee traveled around Europe to study the central banking system.

The Bill approved by the National Monetary Commission was known as the Aldrich Bill, and formed the legislative base for the Federal Reserve Act. It was introduced as an amendment to the Republican sponsored Payne-Aldrich Tariff Bill, in order to have Republican support. It was based on Warburg's plan, except it would only have 15 districts; half of the directors on the district level would be chosen by the banks, a third by the stockholders, and a sixth by the other directors. On the National Board: two chosen by each district; nine chosen by the stockholders; and seven ex-officio members to be the Governor, Chairman of the Board, two Deputy Governors, Secretary of the Treasury, Secretary of Commerce and Labor, Secretary of Agriculture, and Comptroller of the Currency. Most people were against the Bill because it finally identified the banking institution as a central bank, and the Democratic Party opposed it in the 1912 Party platform.

In 1910, Warburg gave a speech entitled "A United Reserve Bank of the United States" which called for a United Reserve Bank to be located in Washington, D.C. having the capital of $100 million. The country would be divided into 20 districts and the system would be controlled by a Board of Directors which would be chosen by the banking associations, the stockholders, and the government. Warburg said that the U.S. monetary system wasn't flexible and it was unable to compensate for the rise and fall of business demand. As an example, he said, that when wheat was harvested and merchants didn't have the cash on hand to buy and store a large supply of grain, the farmers would sell the grain for whatever they could get. This would cause the price of wheat to greatly fluctuate forcing the farmer to take a loss. Warburg called for the development of commercial paper (paper money) to circulate as currency which would be issued in standard denominations of uniform sizes. They would be declared by law to be legal tender for the payment of debts and taxes.

President Theodore Roosevelt said, concerning the criticism of finding capable men to head the formation of a central bank: "Why not give Mr. (Paul) Warburg the job? He would be the financial boss, and I would be the political boss, and we could run the country together."

The Jekyll Island Conference (1910)

After a conference was held at Columbia University on November 12, 1910, the National Monetary Commission published their plan in the December, 1910 issue of their Journal of Political Economy in an article called "Bank Notes and Lending Power." On November 22, 1910, Aldrich called a meeting of the banking establishment and members of the National Monetary Commission, which was proposed by Henry P. Davison (a partner of J. P. Morgan). Aldrich said that he intended to keep them isolated until they had developed a "scientific currency for the United States ."

All those summoned to the secret meeting, were members of the Illuminati. They met on a railroad platform in Hoboken, New Jersey, where they chartered a private railroad car owned by Aldrich to Georgia. They were taken by boat, to Jekyll Island, off the coast of Brunswick, Georgia.

Jekyll Island is in a group of ten islands, including St. Simons, Tybee, Cumberland, Wassau, Wolf, Blackbeard, Sapelo, Ossabow, and Sea Islands. Jekyll Island was a "hideaway resort of the rich," purchased in 1888 by J.P. Morgan, Henry Goodyear, Joseph Pulitzer, Edwin and George Gould, Cyrus McCormick, William Rockefeller (John D. Rockefeller's brother), William K. Vanderbilt, and George F. Baker (who founded Harvard Business School with a gift of $5 million) for $125,000 from Eugene du Bignon, whose family owned it for a century. Up until the time it was converted into a public resort, no uninvited foot ever stepped on its shores. It was said, that when all 100 members of the Jekyll Island Hunting Club sat down for dinner at the clubhouse, it represented a sixth of the world's wealth. St. Simons Island, a short distance away to the north was also owned by Illuminati interests. [Note that the 2004 "G8" global economic summit was held on Sea Island --ed]

Those attending the meeting at the private hunting lodge were said to be on a duck-hunting expedition. They were sworn to secrecy, even addressing each other by code names or just by their first names. Details are very sketchy, concerning who attended the meeting, but most scenarios agree that the following people were present:

  • Sen. Nelson Aldrich
  • Frank A. Vanderlip (Vice-President of the Rockefeller owned National City Bank)
  • Henry P. Davison (of J. P. Morgan and Co.)
  • Abram Piatt Andrew (Assistant Secretary of the Treasury, an Assistant Professor at Harvard, and Special Assistant to the National Monetary Commission during their European tour)
  • Paul Moritz Warburg (of Kuhn, Loeb and Co.)
  • Benjamin Strong (Vice-President of Morgan's Bankers Trust Co.)
  • Eugene Meyer (a former partner of Bernard Baruch, and the son of a partner in the Rothschild-owned Lazard Freres, who was the head of the War Finances Corporation, and later gained control of the Washington Post)
  • J.P. Morgan
  • John D. Rockefeller
  • Col. House
  • Jacob Schiff (of Kuhn, Loeb and Co.)
  • Herbert Lehman (of Lehman Brothers)
  • Bernard Baruch (appointed by President Wilson to be the Chairman of the War Industries Board, which gave him control of all domestic contacts for Allied war materials [during WW1], which enabled him to make $200 million for himself while working for the government)
  • Joseph Seligman (a leading Jewish financier, who founded J. & W. Seligman and Co., who had helped to float bonds during the Civil War, and were known as "World Bankers," then later declined President Grant's offer to serve as the Secretary of Treasury)
  • Charles D. Norton (President of the First National Bank of New York).

About ten days later, they emerged with the groundwork for a central banking system in the form of not one, but two versions to confuse the opposition. The final draft was written by Frank Vanderlip from Warburg's notes and was incorporated into Aldrich's Bill in the form of a completed Monetary Commission report which Aldrich railroaded through Congress by avoiding the term "central bank." No information was available on this meeting until 1933 when the book The Federal Reserve Act: It's Origins and Problems by James L. Laughlin appeared, [along with] other information which was supplied by B. C. Forbes, the editor of Forbes Magazine. In 1935, Frank Vanderlip wrote in the Saturday Evening Post: "I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System."

The banker-initiated mini-depressions, the last of which had occurred in 1907, helped get Congressional support for the Bill, and on May 11, 1911 the "National Citizens League for the Promotion of a Sound Banking System", an Illuminati front-organization, publicly announced their support for Aldrich's Bill. However, the Aldrich Bill was destined for failure because he was so closely identified with J.P. Morgan. So, the Illuminati went to "Plan B" which was the second version hammered out at the Jekyll Island summit. The National Citizens League publicly withdrew their support of the Aldrich Bill and the move was on to disguise it so that it could get through Congress. Once the new version was ready they were a little apprehensive about introducing it in Congress because even if it [were] passed by Congress, President Taft would veto it, so they had to wait until they could get their own man elected. That man was Woodrow Wilson.

The Election of Woodrow Wilson (1912)

The Democrats, with the exception of Grover Cleveland's election, had been out of power since 1869. Being a "hungry" Party, the Illuminati found them easier to infiltrate. During the late 1800's, they began the process of changing the Democrats from conservative to liberal, and the Republicans from liberal to conservative.

Woodrow Wilson graduated from Princeton University in 1879, studied law at the University of Virginia, and received his doctorate degree from Johns Hopkins in 1886. He taught Political Science and History at Bryn Mawr and Wesleyan, and in 1902 became President of Princeton. Because of his support of Aldrich's Bill when it was first announced he was supported by the Illuminati in his successful bid as Governor of New Jersey in 1910. The deal was made through Vanderlip agents William Rockefeller and James Stillman at Vanderlip's West Chester estate. The liaison between the Illuminati and Wilson would be his prospective son-in-law, William G. McAdoo.

Rabbi Stephen Wise, a leading Jewish activist, told an audience at the Y.M.C.A. in Trenton, New Jersey:

"On Tuesday the President of Princeton University will be elected Governor of your state. He will not complete his term of office as Governor. In November, 1912, he will be elected President of the United States. In March, 1917, he will be inaugurated for the second time as President. He will be one of the greatest Presidents in American history."

Wise, who made this prophetic statement in 1910, later became a close advisor to Wilson. He had good reason to believe what he said because the deal had already been struck. Wilson wasn't viewed as being pro-banking and the Democratic Party Platform opposed a Central Bank which was now linked to the Republicans and the bankers.

The main problem for the Democrats was the Republican voting edge and their lack of money. After the Illuminati made the decision to support Wilson, money was no problem. Records showed that the biggest contributors to Wilson's campaign were:

[snip]

The problem of the voter registration edge was a bit more difficult but that was a project that the Illuminati had already been working on. The Russian pogroms of 1881 and 1882 in which thousands of Russians were killed and religious persecution and anti-Semitism in Poland, Romania, and Bulgaria in the early 1890's began three decades of immigration into the United States by thousands of Jews. By the turn of the century, a half-million Jews had arrived to the port cities of New York, Baltimore, and Boston. It was the Democrats who initiated a program to get them registered to vote.

Humanitarian committees were set up by Jacob Schiff and the Rothschilds such as the Hebrew Immigration Aid Society and the B'nai B'rith so when the Jews arrived they were made naturalized citizens, registered Democrat, then shuffled off to other large cities such as Chicago, Philadelphia, Detroit and Los Angeles, where they were given financial help to find a place to live, food, and clothing. This is how the Jews became a solid Democratic voting bloc and it was these votes that would be needed to elect Wilson to the Presidency.

In 1912, with President William Howard Taft running for re-election against Wilson, the Illuminati needed some insurance. They got it by urging another Republican, former President Theodore Roosevelt (1901-09), to run on the Progressive Party ticket. Taft had served as Roosevelt 's Secretary of War (1905-09) and was chosen by Roosevelt to succeed him as President. Now, Roosevelt was running again. Advocating the "New Nationalism," Roosevelt said: "My hat is in the ring ... the fight is on and I am stripped to the buff." Identified as "anti-business" because of his stand against corporations and trusts, his proposals for reorganizing the government were attacked by the Illuminati-controlled New York Times as "super-socialism." His "Bull Moose" Platform said: "We are opposed to the so-called Aldrich Currency Bill because its provisions would place our currency and credit system in private hands, not subject to effective public control." Frank Munsey and George Perkins, of the J.P. Morgan and Co. organized, ran, and financed Roosevelt's campaign.

(A recent example of the same plan that pulled votes away from Taft in order to get Wilson elected, occurred in the 1992 Presidential election. In a 1994 interview, Barbara Bush told ABC-TV news correspondent Barbara Walters, that the third-party candidacy of independent H. Ross Perot was the reason that Bill Clinton was able to defeat the re-election bid of President George Bush.)

The Illuminati was able to get the support of perennial Democratic Presidential candidate William Jennings Bryan by letting him write the plank of the Party Platform which opposed the Aldrich Bill. Remember, the second version of the Bill prepared at Jekyll Island was to be an alternative, so public attention was turned against the Aldrich Bill. Wilson, an aristocrat having socialistic views, was in favor of an independent reserve system because he didn't trust the "common men" which made up Congress. However, publicly he promised to "free the poor people of America from control by the rich" and to have a money system that wouldn't be under the control of Wall Street's International Bankers. In fact, in the summer of 1912 when he accepted the nomination as the Democratic candidate for the Presidency, he said: "A concentration of the control of credit ... may at any time become infinitely dangerous to free enterprise." According to the Federal Reserve's historical narrative, the shift in Wilson's point of view was "a combination of political realities and his own lack of knowledge about banking and finance (and) after his election to the Presidency, Wilson relied on others for more expert advice on the currency question."

Presidential Election Results (1912)

  • DEMOCRAT (Wilson) 435 electoral votes 6,286,214 popular votes
  • PROGRESSIVE (Roosevelt) 88 electoral votes 4,126,020 popular votes
  • REPUBLICAN (Taft) 8 electoral votes 3,483,922 popular votes

Because of the voting split in the Republican Party, not only was Woodrow Wilson able to win the Presidency, but the Democrats gained control of both houses in Congress.

Passage of the Federal Reserve Act (1913)

Rep. Carter Glass of Virginia, Chairman of the Banking and Currency Committee, met with Wilson after his election along with H. Parker Willis (who was Dean of Political Science at George Washington University) of the National Citizens League to prepare a Bill, known as the Glass Bill, which began taking form in January, 1913. Now 'Plan B' was set into motion. Remember, the National Citizens League, headquartered in Chicago, had already announced their opposition to the Aldrich Bill. Now the Wall Street banking interests had come out against the Glass Bill, which was actually the Aldrich Bill in disguise.

The Wall Street crowd was generally referred to as the "money trust." However, a 1912 Wall Street Journal editorial said that the term "money trust" was just a reference to J.P. Morgan. The suspicion of the "money trust" peaked in 1912 during an investigation by a House banking subcommittee which revealed that twelve banks in New York, Boston, and Chicago, had 746 interlocking directorships in 134 corporations. Rep. Robert L. Henry of Texas said that for the past five years, the nation's financial resources had been "concentrated in the city of New York (where they) now dominate more than 75 percent of the moneyed interests of America ..." On December 13, 1911, George McC. Reynolds, the President of the Continental and Commercial Bank of Chicago, said to a group of other bankers: "I believe the money power now lies in the hands of a dozen men..." The threat from this powerful private banking system was [supposedly] to be ended with the establishment of a central bank.

To avoid the mention of central banking, Wilson himself suggested that the regional banks be called "Federal Reserve Banks," and proposed a special session of the 63rd Congress to be convened to vote on the Federal Reserve Act. On June 23, 1913, he addressed the Congress on the subject of the Federal Reserve, threatening to keep them in session until they passed it. Wilson got William Jennings Bryan's support by making him Secretary of State, and in October, 1913, Bryan said he would assist the President in "securing the passage of the Bill at the earliest possible moment."

The Glass Bill (H.R. 7837) was introduced in the House of Representatives on June 26, 1913. The revision mentioned nothing about central banking, which was what the people feared. It was believed that Willis had written the Bill, but it was later discovered that Professor James L. Laughlin at the Political Science Department of Columbia University had written it, taking special precaution not to clash with the Bryan plank of the Democratic Party Platform. It was referred to the Banking and Currency Committee, reported back to the House on September 9th, and passed on September 18th.

Sen. Robert Latham Owen of Oklahoma, Chairman of the Senate Banking and Finance Committee, along with five of his colleagues drafted a Bill which was more open-minded to the suggestions of the bankers. A Bill drafted by Sen. Gilbert M. Hitchcock, a Democrat from Nebraska, called for the elimination of the "lawful money" provision and stipulated that note redemption must be made in gold. It also provided for public ownership of the regional reserve banks which would be controlled by the government.

In the Senate, the Glass Bill was referred to the Senate Banking Committee and reported back to the Senate on November 22, 1913. The Bill was now known as the Glass-Owen Bill. Sen. Owen, who opposed the Aldrich Bill, made some additional revisions in an attempt to keep [the bankers] from completely dominating our monetary system. Sen. Elihu Root of New York criticized some of these revisions and some points were modified. It was passed by the Senate on December 19th.

Since different versions had been passed by both Houses, a Conference Committee was established which was stacked with six Democrats and only two Republicans to insure that certain portions of the original Bill would remain intact. It was hastily prepared without any public hearings and on December 23, 1913, two days before Christmas when many Congressmen and three particular Senators were away from Washington, the Bill was sent to the House of Representatives where it passed 298 to 60 and [was] then sent to the Senate where it passed with a vote of 43 to 25 (with 27 absent or abstaining). An hour after the Senate vote, Wilson signed the Federal Reserve Act into law and the Illuminati had taken control of the American economy. The gold and silver in the nation's vaults were now owned by the Federal Reserve. Baron Alfred Charles Rothschild (1842-1918), who [had] masterminded the entire scheme, then made plans to further weaken our country's financial structure.

Although Woodrow Wilson and Rep. Carter Glass were given the credit for getting the Federal Reserve Act through Congress, William Jennings Bryan played a major role in gaining support to pass it. Bryan later wrote: "That is the one thing in my public career that I regret: my work to secure the enactment of the Federal Reserve Law." Rep. Glass would later write: "I had never thought the Federal Bank System would prove such a failure. The country is in a state of irretrievable bankruptcy."

Eustace Mullins, in his book The Federal Reserve Conspiracy, wrote:

"The money and credit resources of the United States were now in complete control of the banker's alliance between J. P. Morgan's First National Bank, and Kuhn & Loeb's National City Bank, whose principal loyalties were to the international banking interests, then quartered in London, and which moved to New York during the First World War."

The Reserve Bank Organization Committee, controlled by Secretary of the Treasury William Gibbs McAdoo and Secretary of Agriculture David F. Houston (who along with Glass, later became Treasury Secretaries under Wilson), was given $100,000 to find locations for the regional Reserve Banks. With over 200 cities requesting this status, hearings were held in 18 cities as they traveled the country in a special railroad car. On October 25, 1914, the formal establishment of the Federal Reserve System was announced and it began operating in 1915.

(For more, see "Secrets of the Federal Reserve" by Eustace Mullins)

Copyright © David A. Rivera