“I don’t want a nation of thinkers, I want a nation of workers.”
The Banking Swindle
A Historical Perspective: The Banking Monopoly
Posted by Stack Jones in The History Of Banking Fraud on 02/20/2014
I. Introduction: The Federal Reserve Act Of 1913.
In 1913, the U.S. Congress passed a bill called the Federal Reserve Act of 1913. This bill allowed an independent group to privatize, and take control of America’s monetary system. The Federal Reserve Bank’s name was chosen to deceive the American people into believing that it is a branch of the U.S. government. It isn’t. This privately held monopoly gives great power to a handful of international bankers, non-Americans, to issue America’s money, to set interest rates, to finance endless wars, and to enslave the masses. This debt based monetary system is what has been destroying the American economy, and bringing about depressions for generations. It needs to come to an end. By any means necessary.
Facts about the Federal Reserve.
The Federal Reserve is a privately owned for profit corporation.
The Federal Reserve has no reserves.
The name was created prior to the Federal Reserve Act being passed in 1913. This was done to make Americans believe the U.S. banking system operated in the public interest. The truth is the Federal Reserve is a private bank owned by private shareholders, and runs purely for private profits, and thereby creating massive debt to the American people.
This privately held organization pays no taxes on the trillions of dollars it makes.
The Federal Reserve was chartered by an act of deceit, through an act of congress when most had gone home for Christmas holiday on December 23rd, 1913. The Federal Reserve Act of 1913, had passed the house, but it was having difficulty getting through the senate.
No recess had been called, most senators had gone home, yet three senators passed the act with a unanimous voice vote. There was no objection. If there had been one person present in the absence of a quorum, the bill would not have been passed.
In 1923, Representative Charles A. Lindbergh, a Republican from Minnesota, and father of the famous aviator Lucky Lindberg stated, “The financial system has been turned over to the Federal Reserve Board. That board administers the finance system by authority of a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money.”
Former chairman of the House Banking, and Currency Committee, during the great depression era, Louis T. McFadden in 1932 stated, “We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States, and has practically bankrupted our Government. It has done this through the corrupt practices of the moneyed vultures who control it.”
Rep. McFadden said, “When the Federal Reserve Act was passed, the people of these United States did not perceive that a world banking system was being set up here. A super-state controlled by international bankers, and industrialists acting together to enslave the world. Every effort has been made by the Fed to conceal its powers, but the truth is it has usurped the government.” After McFadden lost his congressional seat in 1934, he remained in the public eye as a vigorous opponent of the financial system, until his sudden death on October 3rd, 1936. There were two previous attempts on Louis McFadden’s life. Two bullets were fired at him on one occasion, and later he was poisoned at a banquet. Evidently, the third time the assassins succeeded, and the most articulate critic of the Federal Reserve, and the financiers’ control of the nation would finally be silenced.
Senator Barry Goldwater, was a frequent critic of the Federal Reserve, “Most Americans have no real understanding of the operation of the international moneylenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States.”
Thomas Jefferson, “I sincerely believe that banking institutions are more dangerous to our liberties than standing armies. The issuing power should be taken from the banks, and restored to the people to whom it properly belongs.”
James Madison, the main author of the U.S. Constitution, “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”
The Federal Reserve is now the most powerful privately owned central bank in the world. However, it was not the first.
II. The Money Changers.
Two thousand years ago, Jesus threw the money changers out of the temple of Jerusalem for corrupting Judaism. It was the only time Jesus ever used force during his entire ministry.
When Jews went to the temple to pay their temple tax, they could only pay it with a special coin, the half shekel of the sanctuary, which is a half ounce of pure silver. It was the only coin that was pure silver, and didn’t have the image of the pagan emperor on it. In Judaism, the half shekel was the only coin acceptable to “god.”
The coins were not plentiful, therefore the money changers cornered the market on the coins, and raised the price, and just like any other commodity, they changed the price to whatever the market would bare. The money changers were making huge profits because they held a monopoly on the money. The Jews had to pay whatever they demanded. To Jesus this was an abomination that totally violated the sanctity of gods house.
The money changing scam did not originate in Jesus’ time. Two hundred years before Christ, Rome was having trouble with money changers. Two early Roman emperors tried to diminish the power of the money changers by reforming usury laws, and limiting land ownership to 500 acres. Both emperors were assassinated. In 48 B.C., Julius Caesar took back the power to coin money from the money changers, and minted coins for the benefit of all. With this new, and plentiful supply of money, Caesar built great public works projects. By making money plentiful Caesar won the loyalty, and admiration of the common man, but the money changers hated him. Economic experts believe this was an important factor in Caesar’s assassination. Upon the death of Caesar came the demise of plentiful money in Rome. Taxes increased, and so did political corruption. Just as in America today, usury, and debased coins became the rule.
Eventually the Roman money supply was reduced by 90%, as a result the common people lost their land, and their homes, just as it has happened in the U.S. With the demise of common money, the masses lost confidence in their government, and refused to support it. Rome then plunged into the dark ages. Since the U.S. has followed this same corrupt political, and money system, most Americans themselves have lost their money, and their property. Just as in Rome, when Rome met its demise, the U.S. government has refused to take action, and do away with the privatization, and monopoly of the U.S. money system. Rome as America will follow, fell from its greatness.
III. The Goldsmiths.
One thousand years after the death of Christ, money changers, those that lend money for excessive fees, and those that manipulate the quantity of money, were active in Medieval England. They were so active that they could orchestrate, and manipulate the entire English economy. These were not bankers per se, these were goldsmiths the first bankers because they kept other people’s gold for safe keeping in their private vaults. The first paper money was merely a receipt of money, gold, and silver coin that was left with the goldsmith to store in those vaults. Paper money became the norm because it was more convenient than carrying around heavy gold, and silver coin. The goldsmiths eventually noticed that only a small fraction of people ever returned to demand their gold, at any one time. Goldsmiths then started cheating on the system, and discovered they could print more money than they had in actual gold. The goldsmiths would then loan out that extra money, and collect interest on it, and not pay any interest to depositors. This was the birth of Fractional Reserve Banking, which is loaning out many times more money than there are assets on deposit.
Example: If a goldsmith had 1000 in deposits, they would draw up 10,000 in paper money, and lend out 10 times more than they actually had in deposits. Goldsmiths gradually began to accumulate more wealth, and then used this criminal enterprise to accumulate more, and more gold.
Today the practice of loaning out more money than there is gold in deposit, is known as Fractional Reserve Banking. Every bank in the U.S. is allowed to loan out at least ten times more money than they actually have. That is how they get rich, charging interest.
Example: A bank gives a loan of 8% interest. There actual income is 80%.
In the middle ages Cannon Law of the Catholic Church forbade charging interest on loans. This concept followed the teachings of Aristotle, and Saint Thomas Aquinas. They taught the purpose of money was to serve the members of society, and to facilitate goods needed to lead a virtuous life. Interest was considered a hinderous, and unnecessary burden on the use of money. Interest was contrary to reason, and justice.
Europe followed the Cannon Laws of the Church, forbidding the charging of interest, and made it a crime called usury, and passed legislation known as Usury Laws. However, as commerce, and opportunity for investment arose in the late middle ages, it came to be recognized that lenders had risk in lending, and in lost opportunity for investment. Some charges began to be allowed, but charging interest still remained a crime. All moralist condemned fraud, oppression of the poor, and injustice.
Clearly, fractional lending is rooted in fraud, results in wide-spread poverty, and reduces the value of everyone that has honest money.
Ancient goldsmiths discovered that extra profits could be made by growing the economy between easy money, and tight money. When they made money easy to borrow, then the amount of money in circulation expanded, and people took out more loans to expand their businesses. Then the money changers would tighten the money supply, and make more money difficult to get. Goldsmiths realized that certain people could not repay their loans, and could not take out new loans to repay the old ones, as a result they would have to go bankrupt, and sell their property to the goldsmiths for pennies on the dollar.
The same criminal enterprise of usury lending, tightening the money supply, default on loans and property confiscation is still happening, only now it is called the business cycle.
IV. King Henry I Of England: The Tally Sticks.
Around 1100 AD King Henry 1st resolved to take the power of money away from the lenders. He invented one of the most unusual money systems in history. It was called the Tally Stick System. This system lasted until 1826. The Tally System was adopted to avoid the monetary manipulation of the goldsmiths. Tally Sticks were merely sticks of wood with notches cut on one edge of the stick to indicate denominations. Then the stick was split lengthwise so that both pieces still had a record of the notches.
The king kept one half to protect against counterfeiting. The other half would be spent into the economy, and circulate as money. Under this system money could not be manipulated, and it could not be stolen. No other form of money had worked as well, and for so long as Tally Sticks. The British Empire, which was the most powerful nation in the world, was built on the Tally Stick System.
The Bank of England was formed in 1694, and attacked the Tally Stick System because it was money that was outside the power of the money changers, just as King Henry had wanted it to be.
The Tally Stick succeeded despite the fact that the banks introduced the coin system as competition.
In the 1500s, King Henry 8th relaxed the usury laws, the money changers immediately made their metal coins plentiful for decades. But, when Queen Mary tightened the money laws on usury, the money changers renewed the hoarding of gold, and silver coins, causing the economy to plummet. When Queen Elizabeth the first took the throne she was determined to regain control of the economy. Her solution was to introduce gold, and silver coins from the public treasury, and take away control of the money supply from the money changers.
Financed by the money changers, Oliver Cromwell overthrew King Charles, purged the Parliament, and put the King to death. The money changers were allowed to immediately consolidate their financial power. The result was, for the next 50 years, the money changers plunged Great Britain into a series of costly wars. They took over a square mile of property in the center of London, known as the city of London. This area is still known as one of the three prominent financial centers of the world.
Conflicts with the Stewart King led the money changers of Britain to combine with the money changers of the Netherlands, and finance the invasion of William of Orange, and overthrow the Stewarts in 1688, and took the English throne.
V. The Bank Of England.
By the end of the 1600s, England was in financial ruin. The continuous wars with France and Holland had exhausted the nation. Frantic government officials met with the money changers and begged for the money necessary to pursue their political purposes. The price was a government sanctioned, privately owned bank, which could issue money created out of nothing.
The Bank of England would be the first privately owned central bank. It was deceptively called the Bank of England to make it appear to the general population that it was part of the government. Like any other private corporation, the bank sold shares to get started. The investors names were never revealed. Each investor was to put up one and a quarter million British pounds in gold coin to purchase their shares in the bank. However, only 750 thousand pounds was ever received. Despite that, the bank was chartered in 1694 and started loaning out several times the money it was supposed to have on reserve, all at interest. The new bank would lend politicians as much money as they needed as long as they secured the debt through direct taxation of the British people. As a result, the formation of the Bank of England became a form of legal counterfeiting of the national currency for private gain.
Unfortunately, today nearly ever nation has a privately owned central bank. Using the Bank of England as the basic model. This form of banking takes over an entire nations economy and becomes a plutocracy ruled by the rich.
Nations do need central banks, however they do not need them to be privately controlled.
The central bank scam is in reality a hidden tax where nations sell bonds to the central banks to pay for things politicians don’t have the political will to raise taxes to pay for. But, the bonds are created by the central banks out of nothing. More money in circulation makes the money already in circulation worth less. The government gets as much money as it needs and the people pay for it with inflation.
VI. The Rothchilds: Fraud on the Market.
Fifty years after the Bank of England opened its doors, a goldsmith named Anseim Moses Bauer, opened a coin shop in Frankfurt Germany. Over the door was a sign depicting a Roman eagle on a red shield. The shop became known as the Red Shield Firm. in the German language this meant Rothschild. When Amshel Mayor Bauer, Bauer’s son inherited the business he changed the family name to Rothschild. Amshel learned that loaning money to governments and kings was more profitable than loaning to private individual. Not only were the loans bigger, but they were secured by the nations taxes. Amshel had four sons and trained them all in the skill of money creation and sent them out to Europe to open family owned banks. The first son, Amshel Mayer stayed in Frankfurt to manage the hometown bank. The second son Solomon was sent to Vienna. The third son Nathan was sent to London, and at age 21, in 1798. The fourth son Karl went to Naples, and the fifth son went to Paris.
The Rothschild’s and the Schiff’s shared a house and both families would play a major role in European history and in the U.S.
When Napoleon chased Prince William of Hess Cassel into exile, he sent 500,000 pounds to Nathan Rothschild with instructions for Nathan to buy consoles, also known as British government bonds. But, Nathan used the money for his own purposes, investing in war-time opportunities. When William returned after the Battle of Waterloo, he summoned Rothschild and demanded his money back. Rothschild paid the money back with interest, but kept all the profits made using Williams money.
By the mid 1800s the Rothschild’s dominated European banking and were the wealthiest family on earth. The Rothschild’s financed Cecil Rhodes making it possible for him to have a monopoly over the diamond and gold fields of south Africa. In the U.S. they financed the Harriman’s, and the Vanderbilt’s in railroad, and the press, and Carnegie in the steel industry among many others.
During WWI, J.P. Morgan was thought to be the richest man in the U.S., but after his death is was discovered that he was only a lieutenant of the Rothschild’s. Once Morgan’s will was made public, it was discovered that he owned only 19% of J.P. Morgan companies. By 1850 James Rothschild the heir of the French Rothschild family was said to be worth 600 million French Franks. 150 million more than all the other banks in Europe combined.
VII. The American Revolution.
By the mid 1700s Britain had reached its height of power around the world. But, Britain had fought four costly wars since the creation of its privately owned central bank the Bank of England, which was lending money at high interests to finance war related debts. The British parliament was borrowing heavily from the bank. By the mid 1700s the government debt was 140 million pounds, a staggering number at that time. Consequently, the British government embarked on a new program of trying to raise revenue on the American colonies in order to pay the interest due to the bank. But, In the U.S., the scourge of a privately owned central bank had not yet hit the colonies.
In the U.S. there was a severe shortage of precious coins to pay for goods, so the early colonists experimented with printing their own paper money. Benjamin Franklin was a supporter of the colonies printing their own money. In 1757 Franklin was sent to London and stayed there for seventeen years until the start of the American Revolution. During this period the colonies began to distribute their own money known as Colonial Scrip. The endeavor was successful and provided a reliable means of exchange and helped to provide a feeling of unity between the colonies. The paper money was debt free and printed in the public interest and not backed by gold or silver coin. It was a total fiat currency.
When officials in England asked Franklin how he could account for the new-found prosperity of the colonies. Franklin replied, “In the colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one.”
This was common sense to Franklin but the impact it had on the Bank of England was profound. Parliament immediately passed the currency act of 1774. This prohibited colonial officials from issuing their own money and ordered them to pay all future taxes in gold or silver coins. This forced the colonies on a gold and silver standard. Franklin wrote in his autobiography, “In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed.” Franklin stated this was the real cause of the American revolution. Franklin wrote, “The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money which created unemployment and dissatisfaction. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the PRIME reason for the Revolutionary War.”
By the time the first shots were fired on April 19th, 1775 the colonies were drained of gold and silver coins through British taxation. As a result the constitutional government began to print its own money to finance the war. At the start of the war the U.S. money supply was 12 million dollars. By the end of the war it was nearly 500 million. As a result the currency was virtually worthless. Shoes sold for 5000 dollars a pair. Colonial Scrip had worked because just enough was printed to facilitate trade. George Washington lamented, “A wagon load of money will scarcely purchase a wagon load of provisions.”
Today those that support a gold backed currency point to this period of the revolution to demonstrate the pitfalls of a fiat currency, but the same currency had worked so well during times of peace that the Bank of England had Parliament outlaw it.
VIII. The Bank of North America.
Towards the end of the revolution the Continental Congress met at Independence Hall in Philadelphia to find a way to raise desperately needed money. In 1771, they allowed Robert Morris, their financial superintendent to open a privately owned central bank. Morris was a wealthy man who had grown richer during the war by trading in war materials.
The new bank, the Bank of North America was modeled after the Bank of England. It was allowed to practice fractional reserve banking. This means it could lend money the bank didn’t have and also charge interest on it.
Incidentally, if you or I were to do that we’d be charged with fraud, which is a felony.
The banks private charter called for investors to put up an initial 400,000 dollars. However, Morris was unable to raise the money, so he used his political influence to have gold deposited in the bank, which had been loaned to America by France. Morris then loaned the 400,000 to himself and his friends and to reinvest in shares of the bank. This private bank was then given a monopoly over the American currency.
Soon the dangers became clear, as the value of the American currency continued to plummet. As a result, in 1775 the banks charter was not renewed. The leader of the effort to kill the bank was William Findley of Pennsylvania. Findley stated, “The institution, having no principle but that of avarice, will never be varied in its object, to engross all that wealth, power ad influence of the state.”
The men behind the Bank of North America included Alexander Hamilton, Robert Morris, and the banks president Thomas Wiling, did not give in. Only six years later Hamilton, the then secretary of the treasury, and his mentor Morris pushed a new bill through legislation for another privately owned bank. This new bank was called the First Bank of the United States. Thomas Wiling served as the banks president.
The players in the fraudulent scheme against the American people remained the same. The only thing that had changed was the name of the bank.
IX. The Constitutional Convention.
In 1787 colonial leaders assembled to replace the Articles of Confederation. Both Thomas Jefferson and James Madison remained steadfastly unmoved toward a privately owned bank. They had seen the problems caused by the Bank of England.
Jefferson stated, “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
During the debate over the future monetary system another one of the founding fathers, Gouvernor Morris castigated the motivations of the owners of the Bank of North America. Gouvernor Morris was head of the committee that wrote the final draft of the Constitution. Morris knew the motivations of the bank, as his old boss Robert Morris, and Alexander Hamilton were the ones who had presented the original plan for the Bank of North America to the Continental Congress during the last year of the revolution. In a letter he wrote to James Madison on July 2nd 1787, Gouvernor Morris revealed what was really going on, “The rich will strive to establish their dominion and enslave the rest. They always did. They always will. They will have the same effect here as elsewhere, if we do not, by the power of government, keep the in their proper spheres.”
Despite the defection of Gouvernor Morris from the ranks of the banks, Hamilton, Robert Morris, Thomas Wiling and their European backers were not about to throw in the towel. They convinced the bulk of the delegates at the Constitutional Convention not to give Congress the power to issue paper money. Most of the delegates were still aware of the paper currency problems that arose during the issuance of paper currency during the revolution. The had apparently forgotten how well Paper Scrip had worked prior to the war. But, the Bank of England had not and would not stand for the Americans to print their own money again. So, the Constitution remains silent on this matter. This defect left the door open for the money changers, just as they had planned.
X. The First Bank Of The United States.
Only three years after the signing of the new constitution, the newly appointed, first secretary of treasury, Alexander Hamilton proposed a bill calling for a new privately owned central bank. This bill was brought to Congress in the same year that Amshel Rothschild made a pronouncement from his flagship bank in Frankfurt. “Let me issue and control a nation’s money and I care not who writes the laws.”
Alexander Hamilton was a tool of the international banker. One of his first jobs after graduating from law school, in 1782 was as an aide to Robert Morris the head of the Bank of North America. A year before Hamilton had written a letter to Morris saying, “A national debt, if it is not too excessive will be to us a national blessing.”
Congress passed the banking bill proposed by Hamilton and gave it a twenty year charter. The new bank was to be called, the First Bank of the United States.
The bank was given a monopoly on printing U.S. currency, even though 80% of its stock was held by private investors. The other 20% was purchased by the U.S. government. The reason was not to give the government a piece of the profits, it was a scheme to provide the cash needed for the other 89% owners. As with the old Bank of North America and the Bank of England, the stock holders never paid the full amount of their shares. The U.S. government put up the private shareholders initial two million dollars in cash and then through fractional reserves made loans to its charter investors so they could come up with the remaining 8 million dollars needed for this risk free investment. The name of the bank was deliberately chosen to hide the fact that it was privately controlled, and like the Bank of England, the names of the private investors were never revealed. However, it was well-known that the Rothschild’s were the driving power behind the Bank of the United States.
The bank was sold as a way to stabilize the nations currency and to control inflation. However, over the first five years, the U.S. government borrowed 8.5 million dollars from the Bank of the United States and over that same five-year period, prices rose by 72%. Jefferson as the new secretary of state watched the borrowing with sadness and frustration, unable to stop it. Jefferson wrote, “I wish it were possible to obtain a single amendment to our Constitution taking from the federal government their power of borrowing.”
Millions of Americans feel the same way today as they helplessly watch Congress borrow the U.S. economy into oblivion.
XI. Napoleon’s Rise To Power.
The Bank of France was organized in 1800 in the same manner as the Bank of England.
Napoleon decided France had to break free of debt and he never trusted the Bank of France. Napoleon declared when the government relied on the bankers for money, the bankers, not the political leaders were on control of the government. “The hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
Back in the states, Thomas Jefferson narrowly defeated John Adams to become the third president of the U.S. BY 1803, Jefferson and Napoleon had struck a deal. The U.S. would give Napoleon three million dollars in gold in exchange for a huge piece of land west of the Mississippi river. This is known as the Louisiana purchase. With that three million dollars Napoleon forged and army and set off to conquer Europe. The Bank of England quickly rose to oppose Napoleon, financing every nation in his path reaping enormous war profits. Prussia, Austria and Russia all went into debt in a futile attempt to stop Napoleon. Four years later with the French army in Russia, Nathan Rothschild personally took charge to smuggle a supply of gold through France to finance and attack on France by the Duke of Wellington from Spain. Wellington’s attack from the south and other defeats eventually caused Napoleon to abdicate and Louis the Eighteenth was crowned king. Napoleon was exiled to Alba a tiny island off the coast of Italy. While Napoleon was in exile and temporarily defeated by England through the financial support of the Rothschild’s, America was trying to break free of its central bank as well.
XII. Death Of The First Bank Of The United States.
In 1811 a bill was given to Congress to renew the Bank of the U.S. The debate was heated and representatives of Pennsylvania and Virginia passed resolution asking Congress to kill the bank. The press of the day openly called the bank a swindle, a vulture, a viper and a cobra. Oh, to have an independent press once again in America. A Congressman named P.B. Porter attacked the bank from the floor saying, “If the bank’s charter was renewed Congress would have planted in the bosom of this Constitution a viper, which one day or another would sting the liberty of this country to the heart.”
Nathan Rothschild warned that the U.S. would find itself involved in a most disastrous war if the banks charter were not renewed. The renewal bill was defeated by a single vote in the house, and was deadlocked in the senate. At this time America’s fourth president was in the Whitehouse, James Madison. Madison, like Jefferson was a staunch opponent of the bank, his vice president George Clinton broke the tie in the senate and sent the bank into oblivion. Within five months England attacked the U.S. and the war of 1812 was on. But, the British were still fighting Napoleon, so the war ended in a draw in 1814. The money changers were down, but they were far from out.
It would take only another two years to bring back their bank, bigger and stronger than ever.
XIII. Waterloo.
Nothing in history reflects the ingenuity in the Rothschild family in their control of the British stock market after Waterloo.
In 1815 Napoleon escaped exile and returned to Paris. The French soldiers were sent to capture him, but he was such a charismatic figure that the soldiers, instead, rallied around their old leader and hailed him as their new emperor. In March of 1815 Napoleon equipped a new army that was defeated less than ninety days later at Waterloo. Some writers suggest that Napoleon borrowed five million pounds from the Bank of England to finance his new army, but it appears these new funds actually came from the Ubard Banking House in Paris. From this point on it was not unusual for privately owned banks to finance both sides of a war.
Why would a central bank finance both sides of a war? Because war is the biggest debt generator of them all. A nation will borrow any amount for victory. The ultimate loser is given enough financing for the hope of victory, while the ultimate winner is given just enough to win. Such loans are usually conditioned upon the guarantee the victor will honor the debt of the vanquished.
At Waterloo, Napoleon suffered his final defeat but not before thousands of French and Englishmen gave their lives. 74,000 French troops met 67,000 British and other European nation troops. The outcome was in doubt. Nathan Rothschild planned to use the opportunity of the outcome of the war to try to seize control of the British stocks and bonds markets of England. Rothschild stationed a trusted agent named Rothworth on the banks of the north side of the battlefield close to the English channel.
Once the battle had been decided Rothworth took off for the channel and delivered the news to Rothschild, before Wellington’s own courier. If Wellington had been defeated and Napoleon was loose on the continent again, Britain financial situation would become grave. Rothschild hurried to the stock market and took his usual position. With all eyes watching Rothschild, he began to sell all his shares. Other nervous investors observed Rothschild and panicked, this could only mean that Wellington lost to Napoleon. The market plummeted and all investors were selling their consoles and other British bonds. Prices dropped sharply. But, Rothschild began to secretly buy up consoles through his agents for pennies on the dollar, for their worth only hours before. Soon Nathan Rothschild dominated the bond market and the Bank of England as well. By the mid 1800s the Rothschild’s were the richest family in the world. The rest of the 19th Century was known as the age of the Rothschild’s.
One hundred years later the New York Times ran a story which said that Nathan’s grandson had attempted to secure a court order to suppress a book with the stock market story in it. The Rothschild family claimed the story was untrue and libelous, but the court denied the Rothschild family request and ordered the Rothschild to pay all court costs.
XIV. The Second Bank Of The United States.
One year after Waterloo and the Rothschild’s takeover of the Bank of England, the American congress passed another bill allowing for the formation of another privately owned bank, the Second Bank of the U.S. The new banks charter was a copy of the previous banks, with the U.S. government owning 20% shares in the bank. The shares were paid by the treasury – tax payer money, up front. Then through the fraudulent practice of fractional banking, the money was formed into loans with the loan money being used by the private bankers to purchase the remaining 80% of the bank shares. Just as before, the primary shareholders remained a secret. However, the largest blocks, about one-third of the shares were sold to foreigners. The second bank of the U.S. was deeply rooted in Britain. By 1816, the Rothschild’s had taken control over the Bank of England, and the new privately held Second Bank of the U.S.
XV. Andrew Jackson: “I Killed The Banks.”
After twelve years of the Second Bank of the U.S., manipulating the American economy, the American people had had enough. Opponents of the bank nominated a senator from Tennessee, Andrew Jackson, the hero of the Battle of New Orleans, to run for president. Initially, no one gave Jackson a chance to win the presidency. The banks had long been able to control the political process with money. To the surprise and dismay of the money changers, Jackson was swept into office in 1828. Jackson was determined to kill the bank at the first opportunity, and wasted no time trying. However, the banks twenty year charter didn’t come up for renewal until 1836. The last year of his second term, if he could survive that long. During his first term Jackson rooted out the banks minions from government service. He fired 2000 of the 11000 employees of the federal government. In 1832 with his reelection approaching, the banks struck and early blow, hoping Jackson would not want to stir up controversy. The banks asked Congress to sign a new renewal bill, four years early. Congress complied, and then sent it to the president for signing. Jackson vetoed the bill. This veto bill is one of America’s greatest documents, clearly laying out the responsibility of the American government towards its citizens, rich and poor.
“It is not our own citizens only who are to receive the bounty of our Government. More than eight millions of the stock of this bank are held by foreigners. Is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence would be more formidable and dangerous than a military power of the enemy. If government would confine itself to equal protection, and, as Heaven does its rains, shower its favor alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.”
In July of 1832, Congress was unable to override Jackson’s veto. Jackson had to now run for reelection, and took his argument directly to the people. For the first time in presidential history, Jackson took his campaign for reelection on the road. His campaign slogan was Jackson and no bank. The national republican party ran Senator Henry Clay against Jackson. Despite the fact that the bankers spent more than three million dollars on Clay’s campaign, Jackson was reelected by a landslide in November of 1832.
The battle was only beginning. “The hydra of corruption is only scorched, not dead.” Jackson ordered his new secretary of treasury, Louis McClain, to start removing the government deposits from the second bank, and start placing them in state banks. McClain refused to do so. Jackson fired him, and appointed William J. DeWayne as the new secretary of the treasury. DeWayne also refused to comply with the president’s order. Jackson fired him as well and appointed Roger B. Taney to the office. Taney began withdrawing government money from the banks on October of 1833. The banks head Nicolas Biddle used his influence to get the senate to reject Taney’s nomination. Then, in a rare show of arrogance, Biddle threatened to cause a depression if the bank was not rechartered. “This worthy president thinks that because he has scalped Indians, and imprisoned Judges, he is to have his way with the Bank. He is mistaken.” Biddle admitted that he was going to make money scarce, and force Congress to restore the bank. “Nothing but widespread suffering will produce any effect on Congress. Our only safety is in pursuing a steady course of firm restriction, and I have no doubt that such a course will ultimately lead to restoration of the currency and the recharter of the bank.” Biddle clearly intended to use the money contraction power of the bank to cause a massive depression, until the U.S. gave in.
Biddle made good on his threat. The bank began to contract the money supply be calling in old loans and refusing to extend new ones. A financial panic ensued, followed by a deep depression. Biddle blamed Jackson for the crash, saying it was caused by the withdrawal of the federal funds from the bank. As a result, wages and prices plummeted, unemployment soared, and businesses went bankrupt. The nation newspapers blasted Jackson in editorials. The banks threatened to withhold payments from politicians who refused to support the bank’s position. Within months Congress formed what was called, the Panic Session. Six months after Jackson had withdrawn federal money from the privately owned banks, he was officially censored. The resolution was passed 26-20 and was the first time a president had been censured by Congress. Jackson lashed out at the bankers, “You are a den of vipers and I intend to route you out, and by God I will route you out.” If Congress could raise enough votes, Congress could pass another bill and renew the banks monopoly over America’s money for another twenty years or more. What the nation needed was a miracle, and it got one. The governor of Pennsylvania came out in support of Jackson, and Biddle had been caught boasting in public about the banks plan to crash the economy. Suddenly, the tide shifted and in 1834, the House of Representatives voted 124-82 against rechartering the bank. This was followed by a more lopsided vote to establish a committee to investigate whether the bank had intentionally caused the crash. When the investigating committee, armed with a subpoena to examine the banks books, Biddle refused to give them up. Nor would he allow inspection of correspondence with members of Congress, related to their personal loans and advances he had made to them. Biddle also refused to testify before the committee. On January, 8th 1835, Jackson paid off the final installment on the national debt, which had been necessitated by allowing the banks to issue currency for government bonds rather than issuing treasury bonds without such debt. Jackson was the only president to ever pay off the debt.
A few weeks later on January 30th, 1835, an assassin named Richard Lawrence tried to shoot President Jackson. However, both pistols misfired. Lawrence was later found not guilty by reason of insanity. After his release he bragged to friends that powerful people in Europe had put him up to the task, and promised to protect him if he were caught.
The following year the banks charter ran out and the Second Bank of the U.S. ceased functioning as the nations central bank. Biddle was later arrested and charged with fraud. He was tried and acquitted, but died shortly thereafter while still tied up in civil suits. It took the money changers 77 more years before it could undue the damage Jackson had caused it. When asked what his most important accomplishment had been, Jackson was quoted as saying, “I killed the bank.”
XVI. Abraham Lincoln: Greenbacks, Bankers and Assassination.
Although Jackson killed the central bank, unfortunately, fractional reserve banking remained in use by the numerous state chartered banks. This fueled economic instability in the years before the civil war. Still the central bankers were out and as a result American thrived as it expanded westward. The central bankers struggled to regain power of the bank, but to no avail. Then finally they reverted to the old central bankers formula of war to create debt and dependency. If they couldn’t get their bank any other way, America could be brought to its knees by plunging it into a civil war, just as they had done in 1812 after the First Bank of the U.S. was not rechartered.
One month after the inauguration of Abraham Lincoln, the first shots of the Civil War was fired at Fort Sumter South Carolina, on April 12th 1861. Certainly, slavery was a cause of the Civil War, but not the primary cause. Lincoln knew that the economy of the South was dependent upon slavery, and so before the Civil War he had no intention of eliminating it. Lincoln addressed slavery in his inaugural address, “I have no purpose, directly or indirectly to interfere with the institution of slavery in the states where it now exists. I believe I have no lawful right to do so, and I have no inclination to do so.” Lincoln would continue to insist that the Civil War was not about the issue of slavery. “My paramount objective is to save the Union, and it is not either to save or destroy slavery. If I could save the Union without freeing any slave, I would do it.”
Northern protectionist were using their power to prevent the southern states from purchasing cheaper goods, and European nations began to boycott cotton imports from the south. The southern states were in a double financial bind. They were forced to pay higher prices for the necessities of life, while their cotton exports plummeted. But there were other factors at work. The money changers were still infuriated that they had no control over America’s central bank. America’s “wildcat” economy had made the nation rich since the money changers lost control only 25 years earlier. The central bankers used the division between the North and the South as an opportunity to split this rich new nation, and to gain control of the central bank once again. Their intention was to divide and conquer through the use of war. A Civil War. Otto Von Bismarck the Chancellor of Germany, the man who united the German states a few years later. “The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the United States, if they remained as one block, and as one nation, would attain economic and financial independence, which would upset their financial domination over the world.”
Within months after the first shots at Fort Sumter, the central bankers loaned the nephew of Napoleon, Napoleon III of France, 210 million francs to seize Mexico and station troops along the southern border of the U.S. taking advantage of the states war, to violate the Monroe Doctrine and to return Mexico to colonial rule. No matter what the outcome of the Civil War, a weakened America, heavily indebted to the central and international bankers, would open up Central, and South America to European colonization and domination. This was the very thing the Monroe Doctrine had forbidden in 1823.
During this same time, Britain moved 17,000 troops into Canada and positioned them menacingly on the U.S. northern border. The British fleet went on war alert, should their quick intervention be called for. Lincoln was in a double bind, and agonized over the fate of the Union. There was a lot more to the war, than the differences between the northern and southern states. That is why Lincoln’s emphasis was always on Union, and not just merely the defeat of the South. But, Lincoln needed money to win, and in 1861 Lincoln and his secretary of treasury Solomon P. Chase, went to New York to apply for the necessary loans. The money changers anxious to see the Union fail, offered loans at 36% interest. Lincoln refused to accept those rates and returned to Washington.
Lincoln turned to an old friend Colonel Dick Taylor of Chicago and put him on the problem of financing the war. During on meeting Taylor told Lincoln, “Just get Congress to pass a bill authorizing the printing of full legal tender treasury notes and pay your soldiers with them and go ahead and win your war with them also.” Lincoln asked if the people of the U.S. would accept the notes Taylor said, “The people or anyone else will not have any choice in the matter, if you make them full legal tender. They will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution.” Between 18662-1863, Lincoln printed up 400 million dollars worth of new bills. In order to distinguish them from other bank notes in circulation he printed them in green ink on the back side. Thus, the notes became known as green backs. With this new money, Lincoln paid the troops, and bought their supplies. During the course of the war nearly 450 million dollars in green backs were printed at no interest to the federal government. Lincoln understood who was really pulling the strings and this is how he explained his rationale, “The Government should create, issues and circulate all of the credit needed to satisfy the spending power of the Government and the buying power of the consumers. The privilege of creating and issuing money is not only the supreme prerogative of Government, but is the Government’s greatest creative opportunity. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be the master and become the servant of humanity.”
An editorial in the London Times explained the bankers attitude toward the greenbacks. “If this mischievous financial policy, which has its origin in North America, shall become underrated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.”
The scheme was so effective that in 1863, federal and confederate troops began to mass for the decisive battle of the Civil War. The treasury was in need of further authority to issue more green backs. Lincoln allowed the bankers to push through the National Bank Act. These new banks would operate under a tax-free status, and collectively have the exclusive monopoly power to create the new form of money – bank notes. Though green backs continued to circulate, there numbers were not increased. Most importantly, the entire U.S. money supply would be created out of debt where bankers would be buying U.S. government bonds, and issuing them for reserves for bank notes. John Kenneth Galbraith wrote, “In numerous years following the war, the Federal government ran a heavy surplus. It could not however, pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.”
Later in 1863 Lincoln received unexpected help from Czar Alexander II of Russia. The Czar, like Bismarck in Germany knew what the international money changers were up to, and steadfastly refused to allow them to set up a central bank in Russia. If America survived, and was able to remain out of the crutches of the bankers, the Czar’s position would remain secure. If the bankers were successful in dividing America, and giving the pieces back to Britain and France, and both nations back to the control of the central banks, eventually they would threaten Russian again. So, the Czar gave orders that if either Britain or France, actively intervened by giving aid to the South, Russia would consider such action a declaration of war. Alexander II then sent part of his naval fleet to port in San Francisco.
Lincoln was reelected the following year in 1864. Had he lived he surely would have killed the national banks money monopoly extracted from him during the war. In November of 1864, Lincoln wrote a friend the following note, “The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy.” Shortly before Lincoln was murdered, his former secretary Salmon P. Chase, bemoaned his role in helping secure the passage of the national banking act. “My agency in promoting the passage of the National Banking Act was the greatest financial mistake in my life. It has built up a monopoly which affects every interest in the country.”
On April 14th 1865, just forty-one days after Lincoln’s second inauguration, and just five days after Lee surrendered to Grant, Lincoln was shot by John Wilkes Booth at Ford’s Theater. Otto Van Bismarck, the Chancellor of Germany lamented the death of Abraham Lincoln, “The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America, and use it systematically to corrupt modern civilization. They will not hesitate to plunge the whole of Christendom into wars and chaos in order that the earth should become their inheritance.” Bismarck well understood the bankers plan, and allegations that the international bankers were responsible for Lincoln’s assassination surfaced 70 years later in 1934.
Gerald G. McGeer, a popular and well-respected attorney revealed the stunning charge in a five-hour speech before the Canadian House of Commons, blasting Canada’s debt based money system. During the height of the depression McGeer stated that he could end the depression, which was ravaging Canada as well. McGeer had obtained evidence that was deleted from the public record, that was provided to him by secret service agents that had attended the trial of John Wilkes Booth. Booth was a mercenary working for the international bankers. According to an article of the Vancouver Sun, on May the 2nd, 1934 wrote, “Abraham Lincoln was assassinated through the machinations of a group representative of the international bankers who feared the United States President’s national credit ambitions and the plot was hatched on Toronto and Montreal. There was only one group in the world at that time that desired the death of Lincoln. They were the group that was opposed to his national currency program, and had fought him throughout the entire Civil War on his policy of green back currency. McGeer stated that the international bankers not only wanted to reestablish a federal central bank, but also wanted to debase America’s currency on gold they controlled. What this meant was the bankers wanted to put America on a gold standard. Lincoln had done just the opposite when he issued green backs, which were based purely on the good faith and credit of the U.S. nation. McGeer also wrote, “They were the men interested in the establishment of the Gold Standard money system and the right of the bankers to manage the currency and credit of every nation in the world. With Lincoln out-of-the-way they were able to proceed with that plan, and did proceed with in the United States. Within eight years after Lincoln’s assassination silver was demonetized and the Gold Standard money system set up in the United States.” Not since Lincoln has the United States issued debt free U.S. notes.
In another act of folly and ignorance, the 1994 Regal Act actually authorized the replacement of Lincoln’s green backs with debt based notes. In other words, green backs were in circulation in the U.S. until 1994.
Why is silver bad for the bankers, and gold good? Because silver was plentiful in the U.S. and very hard to control. Gold was, and always had been scarce. Historically, it as always been easy to manipulate the value of gold, but silver has always been more than 15 times more abundant.
XVII. The Return Of The Gold Standard.
With Lincoln out-of-the-way, the money changers next objective was to gain complete control over America’s money. This was no easy task with the opening of the American west, silver had been discovered in huge quantities and Lincoln green backs remained very popular. Despite this, the bankers continued to attack Lincoln’s green backs that continued to circulate in the U.S. W. Cleon Skousen wrote, “Right after the Civil War there was considerable talk about reviving Lincoln’s brief experiment with the Constitutional monetary system. Had not the European money-trust intervened, it would have no doubt become an established institution.”
On April 12th 1866, nearly one year to the day of Lincoln’s assassination, Congress began to work for the interest of the international banking interests, passing the Contraction Act, authorizing the secretary of the treasury to begin retiring some of the green backs that were in circulation, and thereby contract the money supply. Authors Theodore R. Thoren and Richard F. Warner explained the results of the money contraction in their book, The Truth In Money Book. “The hard times that occurred after the Civil War could have been avoided if the green back legislation had continued as president Lincoln had intended. Instead, there were a series of manufactured money panics, known as recessions, which put pressure on Congress to enact legislation to put the banking system under the bankers exclusive control. Eventually, the Federal Reserve Act was passed on December, 23rd, 1913. Under this act the money changers once again gained control of the central banking system, and American currency backed by gold. There strategy was to cause a series of panics through recessions, and to convince the American people who only centralized control of the U.S. money supply could provide economic stability. The second step was to remove so much money from the system that most Americans would be so desperately poor that they didn’t care or would be too weak to oppose the bankers.
In 1866 there was about 1.8 billion dollars in currency about 50.46 per capita.
In 1867 half a billion dollars had been removed from circulation resulting in 44.00 per capita.
By 1876 America’s money supply had been reduced to only 600 million dollars, and only 14.60 per capita remained in circulation.
In 1886 the money supply continued to be reduced to only 400 million in supply with only 6.67 per capita remained in circulation. A 760% loss in buying power over 20 years.
Today economists attempt to sell the idea that recessions and depressions are a natural part of “the business cycle.” The truth is the money supply is manipulated by bankers, just as it was before and after the Civil War.
How did the money supply become so scarce? Simply, loans were called in, and no new loans were issued. In addition, silver coins were melted down. In 1872 a man named Ernest Seyd was given 100,000 pounds, about 500,000 dollars by the Bank of England and sent to America to bribe Congressmen to get silver demonetized. He was told that if that was not sufficient, to draw an additional 100,000 pounds, or as much as would be necessary. The next year Congress passed the Coinage Act of 1873, with Seyd actually drafting the legislation. In 1874, Said admitted who was behind the scheme. “I went to America in the winter of 1872-1873, authorized to secure, if I could, the passage of a bill demonetizing silver. It was in the interest of those I represented – the governors of the Bank of England – to have it done. By 1873, gold coins were the only form of coin money.”
In 1876, only three years later with one-third of America’s workforce unemployed, the population was growing restless. People desired a return to the green back money system, or a return to the silver money, anything that would make money more plentiful. That year Congress created the U.S. Silver Commission to study the problem. Their report clearly blamed the money retraction on the international money bankers. The report compared the deliberate money contraction after the Civil War to the fall of the Roman Empire. “The disaster of the Dark Ages was caused by decreasing money and falling prices. Without money, civilization could not have had a beginning and with a diminishing supply, it must languish and unless relieved, finally perish. During the Christian era the metallic money of the Roman Empire amo