From American Institute for Economic Research

Discussion in 'Economics' started by harrytrader, Nov 16, 2003.

  1. I have found something funny :D

    America's Unknown Enemy:
    Beyond Conspiracy
    By the Editorial Staff
    of the
    American Institute for Economic Research
    IV. The Federal Reserve Conspiracy

    Although it is true that several years before the Federal Reserve bill came before Congress a group of politicians and bankers had met privately to formulate plans for a central banking system, the Federal Reserve Act itself was not passed clandestinely. Conspiracy theorists make much of the "secret" meeting held on Jekyll Island, Georgia in November 1910 as evidence that a conspiracy lay behind the Federal Reserve plan. Consider, for example, the financial reporter B.C. Forbes's account: "Picture a party of the nation's greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily hieing hundreds of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance."

    According to this scenario, the banking houses of 3. P. Morgan and of Kuhn, Loeb and Company - in concert with the Rockefeller "Standard Oil group" at National City Bank - bought influence in Congress and invested in the career of Presidential hopeful Woodrow Wilson in order to secure legislation favorable to their conspiratorial designs. The details of this plot, which resulted in the Federal Reserve System and thereby delivered control of the Nation's money into the hands of the conspirators, allegedly were hatched at the Jekyll Island ultra-secret meeting. The chief figures at this clandestine gathering were: Senator Nelson Aldrich (Nelson Rockefeller's namesake), who was then the head of the National Monetary Commission; Frank Vanderlip, president of the National City Bank of New York; Henry P Davison, senior partner of J. P Morgan Company; Charles D. Norton, president of the First National Bank of New York; Paul Warburg of Kuhn, Loeb and Company (he was the principal author of the draft of the Federal Reserve bill); and Col. Edward Mandel House (he would become President Woodrow Wilson's closest advisor, even though without official title). Especially sinister implications are often drawn in conspiracy literature from the biographies of two of the participants. Paul Warburg, a Jew who emigrated to the United States from Germany in 1904, was the brother of Felix Warburg, also of Kuhn, Loeb, and of the international bankers Max and Fritz Warburg of Germany. Col. House, on the other hand, was a Texan "connected" to the London banking establishment by virtue of his father's Civil War exploits as a blockade runner for the Confederacy. But his greater notoriety derived from a novel he had written the year before Wilson was elected President. That novel, titled Philip Dru, Administrator, ostensibly endorsed "a detailed plan for the future government of the United States" which "would establish Socialism as dreamed by Karl Marx." In conspiracy literature, these men are condemned on the basis of these relationships. Admittedly, the relationships provided opportunity for scheming, but "nonbelievers" are not likely to be persuaded by such circumstantial evidence.

    The Jekyll Island meeting was indeed convened in secret, but it did not remain a secret for long. And although the imagery of the supposed intrigues on Jekyll Island may be fully consistent with what would be expected of powerful personalities, there is no verifiable evidence that any activities at that meeting constituted conspiracy or fraud. Unquestionably, a draft of legislation - or at least the broad outlines - for a U.S. central bank was drawn there; participants in the meeting subsequently acknowledged and celebrated their "achievement." For example, Frank Vanderlip recalled in his autobiography, "Our secret expedition to Jekyll Island was the occasion of the actual conception of what eventually became the Federal Reserve System. The essential points ... were all contained in the Federal Reserve Act as it was passed."

    There was and is nothing illegal about collaboration of this type -- that is, collaboration among interested parties. Allegations that "much of the influence exerted to get the Federal Reserve Act passed was done behind the scenes, principally by two shadowy, non-elected persons: The German immigrant, Paul Warburg, and Colonel Edward Mandel House of Texas" describe the way the American legislative process often has worked. Somebody behind the scenes initiates an idea or a working draft that subsequently is publicly debated, revised, and either rejected or adopted.
  2. All right but what did the same Frank Vanderlip - who has been participant of the FED Bill - said also in the February 9, 1935, issue of the Saturday Evening Post (

    "Despite my views about the value to society of greater publicity for the affairs of corporations, there was an occasion, near the close of 1910, when I was as secretive - indeed, as furtive - as any conspirator....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 Jersy littoral of the Hudson, where Senator Aldrich's private car would be in readiness, attached to the rear end of a train for 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," "Abe" - it is Abraham Piatt Andrew. Davison and I adopted even deeper disguises, abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville, after those two aviation pioneers, the Wright brothers....The servants and train crew may have known the identities of one or two of us, but they did not know all, and it was the names of all printed together that would have made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery, we knew, simply must not happen, or else all our time and effort would be wasted.

    If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by Congress.--

    As with all cartels, it had to be created by legislation and sustained by the power of goverment under the deception of protecting the consumer.--
  3. Really then why (see

    In 1930, Paul Warburg [also participant with Frank VanDerLip above] wrote a massive book - 1750 pages in all - entitled "The Federal Reserve System, Its Origin and Growth". In this tome, he described the meeting and its purpose but did not mention either its location or the names of those who attended. But he did say: "The results of the conference were entirely confidential. Even the fact there had been a meeting was not permitted to become public." Then in a footnote he added: "Though eighteen years have since gone by, I do not feel free to give a description of this most interesting conference concerning which Senator Aldrich pledged all participants to secrecy."--

  4. Personally, I would never fade the Invisible Hand.:eek:
  5. :D

    I have more funny testimony :

    "I had no interest in money or banking as a subject, because I was working on a novel. Pound offered to supplement my income by ten dollars a week for a few weeks. My initial research revealed evidence of an international banking group which had secretly planned the writing of the Federal Reserve Act and Congress’ enactment of the plan into law. These findings confirmed what Pound had long suspected. He said, "You must work on it as a detective story." I was fortunate in having my research at the Library of Congress directed by a prominent scholar, George Stimpson, founder of the National Press Club, who was described by The New York Times of September 28, 1952: "Beloved by Washington newspapermen as ‘our walking Library of Congress’, Mr. Stimpson was a highly regarded reference source in the Capitol. Government officials, Congressmen and reporters went to him for information on any subject."
    I did research four hours each day at the Library of Congress, and went to St. Elizabeth’s Hospital in the afternoon. Pound and I went over the previous day’s notes. I then had dinner with George Stimpson at Scholl’s Cafeteria while he went over my material, and I then went back to my room to type up the corrected notes. Both Stimpson and Pound made many suggestions in guiding me in a field in which I had no previous experience. When Pound’s resources ran low, I applied to the Guggenheim Foundation, Huntington Hartford Foundation, and other foundations to complete my research on the Federal Reserve. Even though my foundation applications were sponsored by the three leading poets of America, Ezra Pound, E.E. Cummings, and Elizabeth Bishop, all of the foundations refused to sponsor this research. I then wrote up my findings to date, and in 1950 began efforts to market this manuscript in New York. Eighteen publishers turned it down without comment, but the nineteenth, Devin Garrity, president of Devin Adair Publishing Company, gave me some friendly advice in his office. "I like your book, but we can’t print it," he told me. "Neither can anybody else in New York. Why don’t you bring in a prospectus for your novel, and I think we can give you an advance. You may as well forget about getting the Federal Reserve book published. I doubt if it could ever be printed.

    This was devastating news, coming after two years of intensive work. I reported back to Pound, and we tried to find a publisher in other parts of the country. After two years of fruitless submissions, the book was published in a small edition in 1952 by two of Pound’s disciples, John Kasper and David Horton, using their private funds, under the title Mullins on the Federal Reserve. In 1954, a second edition, with unauthorized alterations, was published in New Jersey, as The Federal Reserve Conspiracy. In 1955, Guido Roeder brought out a German edition in Oberammergau, Germany. The book was seized and the entire edition of 10,000 copies burned by government agents led by Dr. Otto John.
    The burning of the book was upheld April 21, 1961 by judge Israel Katz of the Bavarian Supreme Court. The U.S. Government refused to intervene, because U.S. High Commissioner to Germany, James B. Conant (president of Harvard University 1933 to 1953), had approved the initial book burning order. This is the only book which has been burned in Germany since World War II. In 1968 a pirated edition of this book appeared in California. Both the FBI and the U.S. Postal inspectors refused to act, despite numerous complaints from me during the next decade. . In 1980 a new German edition appeared. Because the U.S. Government apparently no longer dictated the internal affairs of Germany, the identical book which had been burned in 1955 now circulates in Germany without interference."