The Shadow Bank – History of the Federal Reserve

The Federal Reserve has operated in the shadows since its inception in 1913.  While its defenders claim it was designed to give stability to financial markets, what it has really done is preside over the near destruction of the U.S. dollar, which has lost more than 95% of its purchasing power.

On March 13, 1907, the New York Stock Exchange crashed, triggered by failed speculation of two large brokerage firms which was triggered in part by the San Francisco quake in 1906, which drew gold out of the world’s major money centers and created a liquidity crunch. Easy credit and wild financial speculation added to the problem.  Panic erupted!  People were scared and called on the government to save them.   BE CAREFUL WHAT YOU ASK FOR!

In response to the panic, the government passed the Aldrich Vreeland Act of 1908 which created the National Monetary Commission to inquire into and report on needed or desirable changes to our monetary system and the laws relating to banking and currency.   Senator Nelson Aldrich, as Republican Majority Leader became head of the Commission.  Knowing that any real reform would be detrimental to the powerful banking families who owned Congress,  and to further his socialist goals, Aldrich turned to J.P. Morgan for help.

Jekyll Island, Georgia, purchased by J.P. Morgan and a group of wealthy friends for a retreat/hunt club,  was to become the site of a conspiracy that would forever change our nation.    

In 1910, Senator Nelson Aldrich, maternal grandfather of Nelson Rockefeller;  A. Piatt Andrew, former Assistant Economics Professor at Harvard,  Assistant Secretary of the Treasury and Congressman;  Frank Vanderlip,  President of National City Bank of  New York and  former Assistant Secretary of the Treasury;  Henry P. Norton,  President of (Morgan’s) First National Bank of New York;  Paul Moritz Warburg, partner in  Kuhn, Loeb & Co., and first appointed member of the Board of Directors of the soon to Federal Reserve Bank; and Benjamin Strong,  an aide of  J.  P.  Morgan and future Board Member of the Federal Reserve, traveled in secret to Jekyll Island, to write banking and currency legislation. 

With Paul Warburg at the helm, the draft proposal was completed in only nine days.   Warburg had warned his partners in crime not to use the term central bank to describe the proposal because it would be hard to sell it to the voters and instead suggested the term Federal Reserve System.   

The conspirators hurried back to New York to start a nationwide campaign to sell the newly drafted “Aldrich Plan”, enlisting the help of Harvard, Princeton and the University of Chicago, to push their propaganda.  Woodrow Wilson, Governor of New Jersey and former President of Princeton, was selected as spokesman.

Senator Aldrich presented “his” plan to Congress as a culmination of three years of hard work, study, and travel by members of the National Monetary Commission, with expenses of more than $300,000.  Even though it was the first time the other members of the National Monetary Commission had ever heard of the plan, like good little soldiers they fell in line behind Aldrich.  Just like today’s Congress – one hand washes another.   But even with all the deceit and posturing for the voters, Aldrich’s plan was labeled a “central bank scheme” and was shelved.

The Presidential campaign of 1912 could have played out in today’s headlines.  There was Republican Taft running for reelection against  Democrat Woodrow Wilson, both with a monetary bill in their platform.   Taft had the Aldrich Plan and Wilson the Federal Reserve Act.   No one bothered to inform the voters that both drafts, with few exceptions, were the same or that Paul Warburg was author of both. Wilson wasn’t drawing much enthusiasm from the voters and everyone expected Taft to win but, “fate” had other plans.

Former Republican President Teddy Roosevelt threw his hat in the ring on the Bull Moose ticket.  The press, in bed with the wealthy bankers, covered Roosevelt and pretty much ignored Taft and Wilson.   Roosevelt cut into Taft’s support leaving Woodrow Wilson as the new president.   Of course the bankers were financially backing all three candidate so they had nothing to lose, or did they?  With the Democrats firmly in command, there was little doubt the Shadow Bank would become a reality.

Again posturing for the voters, hearings were held on Wilson’s Federal Reserve Act that excluded anyone in opposition while Paul Warburg and Colonel Edward House worked behind the scenes, twisting a few arms as needed.   To no one’s surprise, the legislation passed on December 21, 1913, even though the majority of the members of Congress had already left D.C. for the Christmas Holidays.  Doesn’t that sound vaguely familiar?

Colonel Garrison, an agent of Brown Brothers Bank would later write that “Paul Warburg was the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition.  The mastermind behind both plans was the Baron Rothschild of London.”

After the bill passed Congressman Lindbergh stated that “this act establishes the most gigantic trust on earth.  When the President signs this bill, the invisible government by the monetary power will be legalized . . . the worst legislative crime of the ages is perpetrated by this banking and currency bill.”

On the day the Wilson signed the bill into law, the Constitution ceased to be the governing covenant of the American people.  We had turned the fate of our country over to a small group of international bankers.   Socialist had not only wormed their way into key government positions, they were in the process of taking control of our educational system and held monopolies in major industries and banking.  With the passage of the Federal Reserve Act, they had NOW gained control over our money.

Woodrow Wilson wrote in “The New Freedom“  that  “some of the biggest men in the U.S., in the field of commerce and manufacturing, are afraid of somebody, are afraid of something.  They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.”

He would later write that “I am a most unhappy man.  I have unwittingly ruined my country.  A great industrial nation is controlled by its system of credit.  Our system of credit is concentrated, the growth of the nation, therefore, and all our activities are in the hands of a few men.  We have come to be one of the worst ruled, one of the most controlled and dominated governments in the civilized world – no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”

In 1932 Congressman Louis T. McFadden would say in a speech before congress that “we have, in this country, one of the most corrupt institutions the world has even 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.”

December 21, 2016, marked  the 103th year that the Federal Reserve and the “shadow government” behind it have ruled this country. The Federal Reserve System was created in secrecy for the benefit of the wealthy and today it still operates in secrecy. It was created by Socialist Democrats and is still controlled by Socialist Democrats and a few Socialists hiding behind the Republican Party.

“If the American people ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied.  The issuing power of money should be taken from the banks and restored to Congress and the people to whom it belongs.”  Thomas Jefferson,  “The Story of Our Money,”  by Olive Cushing Dwinell.

Source:   “Secrets of The Federal Reserve”  by Eustace Mullins;  The New Freedom, Woodrow Wilson,  1913

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