October 17, 2017

SECRET BIRTH OF THE FEDERAL RESERVE: THE CREATURE FROM JEKYLL ISLAND (by G. Edward Griffin) “It Shouldn’t Be Audited. It Should Be Abolished!”

The Creature From Jekyll Island
A Second Look at the Federal Reserve
by G. Edward Griffin

7 REASONS THE FEDERAL RESERVE SHOULD BE ABOLISHED

1) It is incapable of accomplishing it’s ‘Stated Objectives’.

2) It is a ‘Cartel’ Operating against the ‘Public Interest’.

3) It is the Supreme Instrument of ‘Usury’.

4) It Generates our most ‘Unfair Tax’.

5) It encourages WAR!

6) It Destabilizes the Economy.

7) It is an instrument of Totalitarianism!

Jeckyll Island and the Federal Reserve

In 1908, the year after a national money panic purportedly created by J. P. Morgan, Congress established, in 1908, a National Monetary Authority. In 1910 another, more secretive, group was formed consisting of the chiefs of major corporations and banks in this country. The group left secretly by rail from Hoboken, New Jersey, and traveled anonymously to the hunting lodge on Jekyll Island.

The meeting was so secret that none referred to the other by his last name. Why the need for secrecy? Frank Vanderlip wrote later in the Saturday Evening Post, “…it would have been fatal to Senator Aldrich’s plan to have it known that he was calling on anybody from Wall Street to help him in preparing his bill…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.”

At Jekyll Island, the true draftsman for the Federal Reserve was Paul Warburg. The plan was simple. The new central bank could not be called a central bank because America did not want one, so it had to be given a deceptive name. Ostensibly, the bank was to be controlled by Congress, but a majority of its members were to be selected by the private banks that would own its stock.

To keep the public from thinking that the Federal Reserve would be controlled from New York, a system of twelve regional banks was designed. Given the concentration of money and credit in New York, the Federal Reserve Bank of New York controlled the system, making the regional concept initially nothing but a ruse.

The board and chairman were to be selected by the President, but in the words of Colonel Edward House, the board would serve such a term as to “put them out of the power of the President.” The power over the creation of money was to be taken from the people and placed in the hands of private bankers who could expand or contract credit as they felt best suited their needs.

Why the opposition to a central bank?

Americans at the time knew of the destruction to the economy the European central banks had caused to their respective countries and to countries who became their debtors. They saw the large- scale government deficit spending and debt creation that occurred in Europe.

Shortly after the United States gained its freedom, the Rothschilds attempted to saddle the country with a private central bank. This Bank of the United States was abolished by President Andrew Jackson with these words:

The bold effort the present bank has made to control the government, the distress it had wantonly produced…are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.

But European financial moguls didn’t rest until the New World was within their orbit. In 1902, Paul Warburg, a friend and associate of the Rothschilds and an expert on European central banking, came to this country as a partner in Kuhn, Loeb and Company. He married the daughter of Solomon Loeb, one of the founders of the firm. The head of Kuhn, Loeb was Jacob Schiff, whose gift of $20 million in gold to the struggling Russian communists in 1917 no doubt saved their revolution.

The Fed controls the banking system in the USA, not the Congress nor the people indirectly (as the Constitution dictates). The U.S. central bank strategy is a product of European banking interests.

By John Pounders, Paradigm Publishing, Copyright 1996

Planning of the Federal Reserve System

At the end of November 1910, Senator Nelson W. Aldrich and Assistant Secretary of the U.S. Treasury Department A. Piatt Andrew, and 5 more of the country’s leading financiers, who together represented about one-fourth of the world’s wealth[citation needed], arrived at the Jekyll Island Club to discuss monetary policy and the banking system, an event led to the creation of the current Federal Reserve. According to the Federal Reserve Bank of Atlanta, the 1910 Jekyll Island meeting resulted in draft legislation for the creation of a U.S. central bank. Parts of this draft (the Aldrich plan) were incorporated into the 1913 Federal Reserve Act.

On November 5–6, 2010, Ben Bernanke stayed on Jekyll Island to commemorate the 100-year anniversary of this original meeting.[9] The Conference was the first official confirmation of the revelations made initially in 1949 by Ezra Pound to Eustace Mullins in his work Secrets of The Federal Reserve and later reported by G. Edward Griffin in his book The Creature from Jekyll Island.

Forbes magazine founder Bertie Charles Forbes wrote several years later:

Picture a party of the nation’s greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred 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.

I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written… The utmost secrecy was enjoined upon all. The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York’s ubiquitous reporters had been foiled… Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System, the plan done on Jekyll Island in the conference with Paul, Frank and Henry… Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality.[9] WIKIPEDIA

Because of the crescendo effect of banks which lent more than their assets could cover, during the last quarter of the 19th century and the beginning of the 20th century, the United States economy went through a series of financial panics.[3]

The Federal Reserve System is the third central banking system in the United States’ history. The First Bank of the United States (1791–1811) and the Second Bank of the United States (1816–1836) each had 20-year charters, and both issued currency, made commercial loans, accepted deposits, purchased securities, had multiple branches, and acted as fiscal agents for the U.S. Treasury.[1]

In both banks the Federal Government was required to purchase 20% of the bank’s capital stock and appoint 20% of the directors.

Thus majority control was in the hands of private investors who purchased the rest of the stock. The banks were opposed by state-chartered banks, who saw them as very large competitors, and by many who understood them to be banking cartels which compelled to them servitude of the common man. President Andrew Jackson vetoed legislation to renew the Second Bank of the United States, starting a period of free banking. Jackson staked his second term on the issue of central banking stating, “Every monopoly and all exclusive privileges are granted at the expense of the public, which ought to receive a fair equivalent. The many millions which this act proposes to bestow on the stockholders of the existing bank must come directly or indirectly out of the earnings of the American people.”[2]

In 1863, as a means to help finance the Civil War, a system of national banks was instituted by the National Currency Act.

And thus it began. From the very beginning.


G Edward Griffin: A New Currency is Coming Soon; and The US Dollar is a Big Scam – PT. 1 of 2