anthony @ 19:22 BST
…the day stays grey and lonely for Little Orphan Annie and Sandy gets sent to the pound and eternal sleep!
Excerpt: “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. We were told to leave our last names behind us. We were told further that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson where Senator Aldrich’s private car would be in readiness attached to the rear-end of a train to the south. Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as Ben, Paul, Nelson and Abe. Davison and I adopted even deeper disguises abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville after those two aviation pioneers the Wright brothers. The servants and train crew may have known the identities of one or two of us, but they did not know all and it was the names of all printed together that would’ve made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery we knew simply must not happen.” (Frank Vanderlip, Saturday Evening Post, February 9, 1935)
When I did my research on this topic I came to the startling conclusion that the Federal Reserve System does not need to be audited, it needs to be abolished. This is very intriguing to think we should audit the Fed but I discovered that probably if they audited the Fed it would get a clean bill because it’s undoubtedly doing exactly what it’s supposed to do according to the law. What it is supposed to do according to the law is justification for abolishing it so all we have to do is understand what the Federal Reserve System is supposed to do and we’ll be pretty upset about it. The fact of the matter is that most people haven’t the foggiest idea of what it is in fact supposed to do.
I came to the conclusion that the Federal Reserve needed to be abolished for seven reasons. I’d like to read them to you now just so that you get an idea of where I’m coming from, as they say. I put these into the most concise phrasing that I can to make them somewhat shocking and maybe you’ll remember them:
The Federal Reserve is incapable of accomplishing its stated objectives.
It is a cartel operating against the public interest.
It’s the supreme instrument of usury.
It generates our most unfair tax.
It encourages war.
It destabilizes the economy.
I don’t know what you think about those seven points. I know a lot of you folks agree with them right off the bat, but I presume that there are some skeptics here tonight and I hope there are otherwise I am the minister talking to the choir. I know in fact that there are always quite a few skeptics that come to these meetings and frankly you are the folks I’m talking to tonight because once, not too long ago, I was in that same frame of mind. I would’ve thought to myself those are rather extreme statements, I don’t think they can be supported by fact. Though time doesn’t permit me to cover all of those seven points here tonight, I would like to splash around on the first four topics for a little while and show you that there is in fact quite a bit of reason for a rational person to conclude that those statements are true.
The Creature from Jekyll Island
I think the best place to begin is with the formation of the “creature from Jekyll Island”; the creation of the Federal Reserve. It takes me back to the title of the book “The Creature from Jekyll Island” and anybody that’s here thinking that we’re going to show a movie which is a sequel to Jurassic Park, you’re in the wrong place. The title was designed, of course, to attract attention but it does have a great deal of significance to it. For those of you who have not yet had a chance to delve into this, I should explain to you that Jekyll Island is a real island that’s off the coast of Georgia. It was on that island back in 1910 that the Federal Reserve System was created at a highly secret meeting that took place there. What I’d like to do is illustrate to you that the meeting did in fact take place and I’ll show some of the documentation that is available for that to prove that the secrecy was extreme and then we’ll come face-to-face with the question “why the secrecy”? When things are done in secret quite often there’s something to hide and we’ll explore what it was that they wanted to hide. Once we’ve come to an understanding of that, then we’ll finally understand a very important aspect of the Federal Reserve System which is not generally understood.
Back in 1910, Jekyll Island was completely privately owned by a small group of millionaires from New York. We’re talking about people such as J. P. Morgan, William Rockefeller and their associates. This was a social club and it was called “The Jekyll Island Club.” They owned the island and it was where their families came to spend the winter months. There was a magnificent structure there, the clubhouse, which was the center of their social activities. That clubhouse is still there, by-the-way. The island has since been purchased by the
state of Georgia, converted into a state park and the clubhouse has been restored and you can visit it. I think you’d be very impressed by it. As you walk through the downstairs corridors you’ll come to a door and on the door there is a brass plaque and it says: “In this room the Federal Reserve System was created.” This is not a secret anymore; it’s a matter of public record. Around the clubhouse there were some cottages as they were called which were built by some of the families to quarter themselves. They’re attractive little things; they were magnificent examples of the architecture of the turn of the century. One of the cottages through which they take tours if you’re interested in doing that, as I recall the guide told us that there were 14 bathrooms in that cottage–not exactly what we would call a cottage.
The clubhouse is where the Federal Reserve System was created. Let’s retell that story in detail and see how it came about. The year was 1910, that was three years before the Federal Reserve Act was finally passed into law. It was November of that year when Senator Nelson Aldrich sent his private railroad car to the railroad station in New Jersey and there it was in readiness for the arrival of himself and six other men who were told to come under conditions of great secrecy. For example, they were told to arrive one at a time and not to dine with each other on the night of their departure. They were told that should they arrive at the station at the same time they should pretend like they didn’t even know each other. They were instructed to avoid newspaper reporters at all cost because they were well-known people and had they been seen by a reporter they would’ve asked questions. Especially if two or three of them had been spotted together, this would’ve raised eyebrows and they would’ve asked a lot of questions. One of the men carried a shotgun in a big black case so that if he had been stopped and asked where he was going he was prepared to say that he was going on a duck hunting trip. The interesting thing about that part of the story is that we find out later from his biographer that this man never fired a gun in his life, in fact he borrowed that shotgun just to carry with him on this trip as part of the deception.
Once they got on board the private railroad car this pattern continued. They were told to use first names only, not to use their last names at all. A couple of the men even adopted code-names. The reason for that is so that the servants on board the train would not know who these people were. They were afraid that if the servants would talk about it then the word would leak out and it might get into the press. They traveled for two nights and a day on board this car and they arrived after a 1,000 mile journey to Brunswick, Georgia. From there they took a ferry across the inland straits and they ended up on Jekyll Island in the clubhouse where for the next nine days they sat around the table and hammered out all the important details of what eventually became the Federal Reserve System. When they were done they went back to New York.
For quite a few years thereafter these men denied that any such meeting took place. It wasn’t until after the Federal Reserve System was firmly established that they then began to talk openly about their journey and what they accomplished. Several of them wrote books on the topic, one of them wrote a magazine article and they gave interviews to newspaper reporters so now it’s possible to go into the public record and document quite clearly and in detail what happened there.
Who were these seven men? The first one I have already mentioned, Senator Nelson Aldrich was the Republican whip in the Senate, he was the chairman of the National Monetary Commission which was the special committee of Congress created for the purpose of making a recommendation to Congress for proposed legislation to reform banking. The public was quite concerned in those days over what was going on in the banking industry; a lot of banks were folding, people were losing their investments in banks, they had broken their promise to guard the depositors assets, there were runs on the bank, banks couldn’t give the people their money back. In particular they were concerned over the concentration of wealth in the hands of a few large banks in New York on Wall Street. This is what they called the “money trust” in those days. The money trust was a common phrase. Quite a few politicians had been elected to office on their campaign promise to break the grip of the money trust. President Wilson was one of those politicians that campaigned on that even though Wilson was himself hand-picked by the money trust and financed by the money trust and surrounded by the money trust–all of his advisors and politic cronies. The public didn’t know that at the time and it was a popular issue. If you campaigned against the money trust you were quite apt to be elected and that was what I call “the people you love to hate” money trust.
That was one of the purposes of the National Monetary Commission which was to propose legislation to break the grip of the money trust and Aldrich was chairman of that committee. He was also the very important business associate of J. P. Morgan. He was the father-in-law of John D. Rockefeller, Jr. which means that eventually he became the grandfather of Nelson Rockefeller, our former vice-president. You remember his full name was Nelson Aldrich Rockefeller; his middle name being derived from his famous grandfather.
The second important person there was Abraham Andrew who was Assistant Secretary of the Treasury. He later became a Congressman and he was very important in banking circles.
Frank Vanderlip was there. He was the President of the National City Bank of New York which was the largest of all of the banks in America representing the financial interests of William Rockefeller and the international investment firm of Kuhn, Loeb & Company.
Henry Davison was there, the senior partner of the J. P. Morgan Company. Charles Norton was there; he was the President of the First National Bank of New York which was another one of the giants. Strong was at the meeting; he was the head of J. P. Morgan’s Banker’s Trust Company and Benjamin Strong three years later would become the first head of the Federal Reserve System.
Finally, there was Paul Warburg who was probably the most important at the meeting because of his knowledge of banking as it was practiced in Europe. Paul Warburg was born in Germany and eventually became a naturalized American citizen. He was a partner in Kuhn, Loeb & Company and was a representative of the Rothschild banking dynasty in England and France where he maintained very close working relationships throughout his entire career with his brother, Max Warburg, who was the head of the Warburg banking consortium in Germany and the Netherlands. Paul Warburg was one of the wealthiest men in the world. In fact, those of you who are Little Orphan Annie fans will remember Daddy Warbucks. Daddy Warbucks was the characterization of Paul Warburg and everyone at the time was well aware of that fact. I have his photograph in my book and if you compare the photograph to the cartoon drawing you’ll see the resemblance between Paul WARburg and Daddy WARbucks. And while we’re on the topic of cartoon characters, if you played Monopoly, you remember the drawing of the capitalist with the handle-bar mustache and the cigar? That’s J. P. Morgan.
These were the seven men aboard that railroad car who were at Jekyll Island. Amazing as it may seem, they represented approximately 1/4 of the wealth of the entire world. These are the men that sat around the table and created the Federal Reserve System. For the skeptic who’s wondering it didn’t happen that way surely Griffin is exaggerating to make some kind of a point. Let me put your mind at ease that it did happen that way (perhaps not at ease but in a state of tension).
How do we know? For example, Frank Vanderlip who was at the meeting wrote an article that appeared in the Saturday Evening Post on February 9, 1935 and I’d like to read for you just a short excerpt from that article. This is what Vanderlip said:
“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. We were told to leave our last names behind us. We were told further that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson where Senator Aldrich’s private car would be in readiness attached to the rear-end of a train to the south. Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as Ben, Paul, Nelson and Abe. Davison and I adopted even deeper disguises abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville after those two aviation pioneers the Wright brothers. The servants and train crew may have known the identities of one or two of us, but they did not know all and it was the names of all printed together that would’ve made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery we knew simply must not happen.”
Why not? why the secrecy? what’s the big deal about a group of bankers getting together in private and talking about banking or even banking legislation. And the answer is provided by Vanderlip himself in the same article. He said: “If it were to be exposed publicly that our particular group had gotten together and written a banking bill, that bill would have no chance whatever of passage by Congress.” Why not? Because the purpose of the bill was to break the grip of the money trust and it was written by the money trust. And had that fact been known at the get-go, we would never have had a Federal Reserve System because as Vanderlip said it would have had no chance of passage at all by Congress. So it was essential to keep that whole thing a secret as it has remained a secret even to this day. Not exactly a secret that you couldn’t discover because anybody can go to the library and dig this out, but it is certainly not taught in textbooks. We don’t know any of this in the official literature from the Federal Reserve System because that was like asking the fox to build the henhouse and install the security system.
That was the reason for the secrecy at the meeting. Now we know something very important about the Federal Reserve that we didn’t know before, but there’s much more to it than that. Consider the composition of this group. Here we had the Morgans, the Rockefellers, Kuhn, Loeb & Company, the Rothschilds and the Warburgs. Anything strange about that mixture? These were competitors. These were the major competitors in the field of investment and banking in those days; these were the giants. Prior to this period they were beating their heads against each other, blood all over the battlefield fighting for dominance in the financial markets of the world. Not only in New York but London, Paris and everywhere. And here they are sitting around a table coming to an agreement of some kind. What’s going on here? We need to ask a few questions.