A short review of the history of the Irish in North America reveals that few were here before 1845, when a disease struck the potato crops of Ireland, wiping out the chief or only source of food for many poor farmers. Famine continued for the next five years, killing over 2.5 million people. "God put the blight on the potatoes," complained the Irish farmers, "but England put the hunger upon Ireland." Farmers who were heavily in debt were shipped to England to pay the rent owed to their landlords. Impoverished Irish immigrants saved what little money they could to send family members across the Atlantic, traveling on overcrowded ships on which many died of disease or hunger on the way. When they arrived, the Irish men had to fight – often physically – to get labor jobs involving long hours and low pay; while the women worked mainly as servants (called "Brigets") to upper-class families. Despite their very low wages, they managed to send a bit of money back to their families, until other family members had enough to buy the ship tickets to America. In the American South (mainly New Orleans), the Irish lived in swamp land infested with disease. Here, Irish men were looked upon as actually lower than slaves. As one historian put it, if a plantation owner lost a slave, he lost an investment; if he lost a laborer, he could always get another. Because the Irish workers were plentiful and expendable, they were often sent in to do dangerous jobs for which the slave-owners were reluctant to send their valuable slaves.2
"Debt Slavery" Replaces Physical Slavery
This form of "debt slavery" or "debt peonage" was not just an accidental development of history. It was a deliberately-planned alternative to the slave arrangement in which owners were responsible for the feeding and care of a dependent population, and it is still with us today. Although European financiers were in favor of an American Civil War that would return the United States to its colonial status, they admitted privately that they were not necessarily interested in preserving slavery. They preferred "the European plan": capital could exploit labor by controlling the money supply, while letting the laborers feed themselves. In July 1862, this ploy was revealed in a notorious document called the Hazard Circular, which was circulated by British banking interests among their American banking counterparts. It said:
Slavery is likely to be abolished by the war power and chattel slavery destroyed. This, I and my European friends are glad of, for slavery is but the owning of labor and carries with it the care of the laborers, while the European plan, led by England, is that capital shall control labor by controlling wages. This can be done by controlling the money. The great debt that capitalists will see to it is made out of the war, must be used as a means to control the volume of money. To accomplish this, the bonds [government debt to the bankers] must be used as a banking basis. . . . It will not do to allow the greenback, as it is called, to circulate as money any length of time, as we cannot control that.3
A system of "debt peonage" is inextricably linked to a banking system in which money is issued privately by bankers and lent to the government rather than being issued as "greenbacks" by the government itself Today the "European plan" has evolved into the private central banking system, and it has come to dominate the economies of the world. A private central bank creates money simply by printing it or entering it as an accounting entry, then lends it to the federal government in exchange for government bonds or debt. Private commercial banks create many more dollars in the same way, advancing money created as accounting-entry loans without even incurring the cost of a printing press. Except for coins, the entire U.S. money supply is now created as a debt to private bankers.4 Banks create the principal but not the interest necessary to pay back their loans, so more money is always owed back than was put into the money supply in the first place. More loans must therefore continually be taken out to cover the interest, spiraling the economy into increasing levels of debt and inflation, in a futile attempt to repay principal and interest on a debt that is actually impossible to repay. The result is "debt peonage," and it has systematically reduced the people to working for the company store, bound to their corporate masters for the food, shelter and health care formerly provided by slave owners under the old physical-slave system.
The Colonial Alternative: The Pennsylvania System of Benjamin Franklin's Day
This is not the only way to run an economy. Until 1913, when the Federal Reserve Act was passed, the European system of debt peonage competed with what was called "the American system" – debt-free government-issued dollars generated by provincial governments to pay their expenses. This "greenback" system was not actually used in the United States after the American colonies became a nation, except during the Civil War; but the "American system" flourished for decades in colonial America. Paper money was issued by local provincial governments not only to pay their own expenses but as commercial loans. The most effective and efficient of these government-issued money systems was in Pennsylvania, where a publicly-owned bank issued paper notes and lent them to farmers. Since this money returned to the government, it did not inflate the money supply; and since the government issued and spent an additional sum of money on public works, enough money was kept in the system to pay the interest on the loans and prevent the debt spiral afflicting the private banking system. The Pennsylvania system worked so well that it completely funded the provincial government without taxes or inflation.
Benjamin Franklin and others maintained that the chief reason for the American Revolution was that Parliament forbade the colonies from issuing their own money. Paper money issued by the Revolutionary government got the colonists through the Revolutionary War, but the British heavily counterfeited this money as a deliberate war tactic, and by the end of the war it had been inflated so much that it was nearly worthless. Fear of inflation led the Continental Congress to completely omit paper money from the Constitution, which does not say who can issue paper money or under what circumstances. The private banks filled the breach, and by 1913 the United States had the same private central banking system that England had.
Today, the pyramid scheme of lending 10 dollars and requiring 11 back has resulted in the very inflationary spiral the Founding Fathers feared. The money supply is inflated with more and more debt, shrinking the value of the dollars paid to workers and propelling larger and larger portions of the population into debt peonage. If the government were to issue its own money rather than borrowing from banks that issued it, and if this money were used to pay for real goods and services (roads and bridges, sustainable energy development, health services, and the like), demand and supply would remain in balance and inflation would not result. A government with a properly designed and monitored system of publicly-issued money could fund itself without taxes, inflation or debt.
Publicly-owned banks are also called "national" banks or "nationalized" banks – the very thing that threatens the private banking system in Ireland today. We have come full circle: a system of national banks is what used to be called "the American system." This may be what we actually need – a public banking system operating for the benefit of the public. The private European system of debt peonage has failed. On this 2008 St. Patrick's Day, we the modern-day Irish of all persuasions can raise a glass to the possibility of being freed from the debt peonage that has kept us wage-slaves for most of our national history.
___________________
| 1 | "Irish Banks May Need Life-support as Property Prices Crash," www.telegraph.co.uk (March 13, 2008). |
| 2 | "Irish in America," www.essays.cc. |
| 3 | "Hazard Circular," 1862, quoted in Charles Lindburgh, Banking and Currency and the Money Trust (Washington D.C.: National Capital Press, 1913), page 102. |
| 4 | See Ellen Brown, "Dollar Deception: How Banks Secretly Create Money," www.webofdebt.com (July 3, 2007). |
Ellen Brown, J.D., developed her research skills as an attorney practicing civil litigation in Los Angeles. In Web of Debt, her latest book, she turns those skills to an analysis of the Federal Reserve and "the money trust." She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Her eleven books include the bestselling Nature's Pharmacy, co-authored with Dr. Lynne Walker, which has sold 285,000 copies. Her websites are www.webofdebt.com and www.ellenbrown.com.
http://www.webofdebt.com/articles/debt-serfdom.php
Stumble It!
Shore and begorrah, and ain't it amazin' that those who push free enterprise and the marketplace are among the first to run to government when the goin' gets tough.......
Shore and begorrah, and ain't it amazin' that those who push free enterprise and the marketplace are among the first to run to government when the goin' gets tough.......
Bear and Stearns that went for $30 a share on Friday is being bought for $2 a share on Sunday. That's a bank about the size of CIBC. And that's after a $20 Billion bailout from the Federal Reserve on Saturday.
Bush sends Ralphbucks to every citizen to prop up the economy.
I get a giggle when Americans call Canadians 'socialist' and still claim to be 'capitalists'. If the best social program is a job, then the best fiscal program is not to go into debt.
I get a giggle when Americans call Canadians 'socialist' and still claim to be 'capitalists'
HONEST MONEY
Part VI: The European Connection
by Douglas V. Gnazzo
November 22, 2004
CIVIL WAR FINANCING
Although Greenbacks are believed to be the main source of financing for the Civil War, they were not – government bonds were. The total emission of Greenbacks was under $850 million, while Treasury Bonds were issued in the amount of almost $2 billion.
Jay Cooke and his brother Henry were close friends with Salmon Chase. The Cooke brothers supplied the money and backing that got Chase elected as Secretary of the Treasury. Henry owned one of the leading newspapers in Philadelphia, and he used it as a powerful forum to lobby for Chase. A letter from Cooke’s father stated that his sons planned to get Chase into the cabinet and Sherman into the Senate “to make money out of government contracts.”
The new Secretary of the Treasury responded by granting Jay Cooke the exclusive authority to underwrite all government bonds. Cooke retained the coveted monopoly from 1862 to 1873, for all but one year; during which time he underwrote bonds totaling $2 billion. The competition of a free market is a wonder to behold, an enigma that baffles the most penetrating minds.
Visions of conquest inspired the brother’s next move. They convinced Senator Sherman to sponsor the National Currency Acts, which he readily pushed through Congress, creating the first national banking system.
NATIONAL CURRENCY ACTS
Under the direction of Senator Sherman, Congress passed two National Currency Acts, one in 1863, another in 1864. The acts were intended to further the relationship between the government and the private banks, forming a symbiotic partnership capable of issuing a national paper currency.
At first the national banks were allowed to issue notes up to 90% of the value of their government bond reserves. In 1900, the limit was raised to 100%. Cooke already controlled the selling of all bonds. By creating a national banking system to purchase them with, he and his cronies gained complete dominance of the market.
A heavy tax was levied on state bank notes, causing them to essentially disappear. The Federal government now issued national banking charters. The National Currency Acts did not require national banks to redeem their notes in gold and silver. United States bonds provided the security, which meant that government debt was backing the currency. National bank notes were forced into use as the circulating currency, by declaring them to be legal tender for almost all payments to and from the government.
A more profitable scheme would be hard to come by, but the elite collectivists would find yet other ways to turn their dreams of wealth into the people’s nightmares: of debt, taxation; bondage and servitude. A society divided into the haves – and the haves not, subjects to the whims of fortune.
JACKSON AGAINST THE MONEY POWERS
Andrew Jackson has been quoted as saying the following to a group of bankers as they approached him in the drawing room of the White House:
“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be a true, gentleman, but that is your sin! Should I let you go on you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal God, I will rout you out!”
Who were the vipers and thieves Jackson was referring to? Were they the elite banking interests fighting for control of our monetary system? In 1862, while Senator Sherman was heading the Finance Committee, a most startling publication appeared: The Hazard Circular of 1862, which stated:
“Slavery is likely to be abolished by the war power and all chattel slavery abolished. This I and my European friends are in favor of, for slavery is but the owning of labor and carries with it the care of the laborers, while the European plan, led on by England, is that capital shall control labor by controlling wages. The great debt that the capitalists will see to it is made out of the war, must be used as a means to control the volume of money. To accomplish this the bonds must be used as a banking basis. We are now waiting for the Secretary of the Treasury to make this recommendation to Congress. It will not do to allow the Greenback, as it is called, to circulate as money any length of time, as we cannot control that. But we can control the bonds and through them the bank issues.”
Was it possible that Congress, although unknown to all but a select few elite, could pass legislation so similar to the above European plan to control America’s money? Recall the Coinage Act of 1878 that authorized the President to meet with foreign dignitaries to discuss an international monetary system; and the words of Senator Bate in regards to the Coinage Act of 1900: “It is the renewal and extension of the life of the bonds they are after, so that the national banks may flourish under existing laws.”
But many will dismiss The Hazard Circular, questioning its credibility and source of origin. Perhaps we should look to a more well-established and respected publication such as the London Times, which had the following to say:
“If that mischievous financial policy which had its origin in the North American Republic [i.e. honest Constitutionally authorized non debt money] should become indurated down to a fixture, then that government will furnish its own money without cost. It will pay off its debts and be without a debt [to the international bankers]. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.”
Taken together, the above statements provide a most revealing portrait of the elite money interests; and the sickness of a demented mind – itself deluded, while deluding others. Such disdain of freedom and liberty can only be equaled by their appalling view of world order. President Abraham Lincoln made a speech that was eerily similar to the above quoted Times article. It read as follows:
“Yes, we may all congratulate ourselves that this cruel war is nearing its close. It has cost a vast amount of treasure and blood. The best blood of the flower of American youth has been freely offered upon our country's altar that the Nation might live. It has been, indeed a trying hour for the Republic; but I see in the future a crisis approaching that unnerves me and causes me to tremble for the safety of my country.
As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of the war.”
Considering the fact that one half of one percent of the world’s population own 95% of everything, Lincoln’s fears have proved to be well grounded – a prescient warning of things to come.
JULLIARD V. GREENMAN
In 1884, the Supreme Court heard the case of Julliard v. Greenman, which reaffirmed the earlier Knox ruling on the constitutionality of paper currency as legal tender; but now it was applied to United States Notes issued during peace, as opposed to the duress of war. Supportive of Honest Money was the dissenting opinion of Justice Fields, who correctly said:
“If there be anything in the history of the constitution which can be established with moral certainty, it is that the framers of that instrument intended to prohibit the issue of legal-tender notes both by the general government and by the states...” [110 U.S. 421 at 451]
“We all know that the value of the notes of the government in the market, and in the commercial world generally, depends upon their convertibility on demand into coin; and as confidence in such convertibility increases of diminishes, so does the exchangeable value of the notes vary. So far from becoming themselves standards of value by reason of the legislative declaration to that effect, their own value is measured by the facility with which they can be exchanged into that which alone is regarded as money by the commercial world. They are promises of money, but they are not money in the sense of the constitution.” [110 U.S. 421 at 464]
“But beyond and above all the objections which I have stated to the decision recognizing a power in congress to impart the legal-tender quality to the notes of the government, is my objection to the rule of construction, adopted by the court to reach its conclusions — a rule which, fully carried out, would change the whole nature of our constitution, and break down the barriers which separate a government of limited from one of unlimited powers...The framers of the constitution, as I have said, were profoundly impressed with the evils which had resulted from the vicious legislation of the states making notes a legal tender, and they determined that such a power should not exist any longer. They therefore prohibited the states from exercising it, and they refused to grant it to the new government which they created. Of what purpose is it, then, to refer to the exercise of the power by the absolute or the limited governments of Europe, or by the states previous to out constitution? Congress can exercise no power by virtue of any supposed inherent sovereignty in the general government...The power to commit violence, perpetrate injustice, take private property by force without compensation to the owner, and compel the receipt of promises to pay in place of money, may be exercised, as it often has been, by irresponsible authority, but it cannot be considered as belonging to a government founded upon law. But be that as it may, there is no such thing as a power of inherent sovereignty in the government of the United States. It is a government of delegated powers, supreme within its prescribed sphere, but powerless outside of it. In this country, sovereignty resides in the people, and congress can exercise no power which they have not, by their constitution, intrusted to it; all else is withheld.” [110 U.S. 421 at 466-7]
“The doctrine that a power not expressly forbidden may be exercised would, as I have observed, change the character of our government. If I have read the constitution aright...the true doctrine is the very opposite of this. If the power is not in terms granted, and is not necessary and proper for the exercise of a power which is thus granted, it does not exist.” [110 U.S. 421 at 467-8]
Our current Supreme Court Justices and elected representatives would do well to heed the words of Justice Field; and to emulate his moral courage, knowledge, and understanding of our Constitution; and to act accordingly.
THE INTERNATIONAL SYNDICATE
Although Jackson had vetoed the renewal of the charter of the Bank of the United States, he was probably unaware that a few months earlier, in 1835, the House of Rothschild had signed an agreement with the United States Government, superseding the firm of Baring Brothers as the financial agent of the Department of State. Considering Jackson’s loathing of the money powers, any knowledge concerning such an agreement with the Rothschilds would have elicited his considerable wrath. The following is from the Rothschild’s Journal Records:
“The first established links between N. M. Rothschild and the United States date back to 1821 when the bankers R. & J. Phillips in Philadelphia became agents for NMR business in the USA. Phillips were the first in a series of agents who were used to develop NMR's business interests in the country and correspondence from them can be found among the records of the Correspondence Department.
From the Bank's accounts it is clear that by the end of the 1830s substantial and wide-ranging investments had been made in municipal and State stock, in canal and mining shares and in finance houses. The main activities carried on through the agents were in the fields of bullion and bills of exchange.
In 1833 NMR entrusted the New York banking house of J. L. & S. Josephs & Co. with the representation of its business interests in that city. The firm worked in conjunction with R. & J. Phillips.
In the following year, 1834, NMR succeeded in obtaining the business of undertaking the United States Government's banking interests in Europe, hitherto in the hands of Barings. The Rothschilds represented the U. S. Government until 1843, when John Tyler became President and Barings' ally Daniel Webster was appointed Secretary of State. Webster promptly restored the accounts from Rothschilds to Barings.
The disastrous New York banking crisis of 1837 saw the failure, along with many other banks, of the Rothschild’s New York agents J. L. & S. Josephs. This coincided with the arrival in New York of August Belmont, a confidential clerk employed by the Frankfurt Rothschilds.
Though on his way to Havana on behalf of the London and Paris Rothschilds, to investigate the affairs of the Spanish Government, on discovering the crisis in New York, Belmont turned his attention to sorting out Rothschild interests there. He quickly realized the potential of New York's growing economy and suggested that the Rothschilds appoint him as their agent in New York. The firm of August Belmont & Co. acted in this capacity until 1925.
The discovery of gold in California in 1848 awakened NMR interest, given the Bank's substantial involvement in bullion trading. A second important Rothschild agency in the USA was rapidly established in San Francisco in 1849 by Benjamin Davidson and John May. The connection persisted until the impact of the gold rush had diminished. Letters from the American agents are mainly filed within the Correspondence Department.
As far back as 1839, NMR had been involved in the business of raising finance for the U. S. Federal Government and its institutions. In that year, NMR, together with the Paris house of de Rothschild Frères, contracted for a £900,000 loan to the U. S. Bank.
It was, however, in the 1870s that the Bank's involvement in this area was at its fullest. In 1872, NMR raised a $15 million bond issue for the City of New York to finance municipal improvements and in the following year, with Baring Brothers, raised a 5% funded loan for the US Government for a massive $300 million. A loan of equal size was raised in 1876, this time in conjunction with J. S. Morgan & Co. and Seligman Brothers and in 1877 a further $700 million, with these same partners, together with Rose & Co.
The last major issue raised on behalf of the Federal Government was for $62 million, in 1895, with J. S. Morgan. The scope of the records in the American Department is wider then the name suggests. Rothschilds’ non-European business interests, in Australia, Mexico, China and India, were dealt with by the American Department.”
Most writers on this subject believe that the Rothschilds did not have much interest in American finance; yet we find them intricately involved in huge deals with the Philadelphian moneychangers, the New York and Wall Street financiers, and a West Coast connection as well. Perhaps compared to their all-encompassing dealings of global conquest, this was just a drop in the till.
George Wheeler, in “Pierpont Morgan and Friends, the Anatomy of a Myth” says:
“But there were steps being taken even now to bring him out of the financial backwaters – and they were not being taken by Pierpont Morgan himself. The first suggestion of his name for a role in the recharging of the reserve originated with the London branch of the House of Rothschild, Belmont's employers.”
Considering the various banking houses that we have seen directly influence our monetary policy; and the many financial deals with these establishments; the House of Rothschild looms large as one of the guiding hands, lurking in the shadows.
In his book “Pawns In The Game”, William Guy Carr clearly illustrates the sphere of influence the Rothschilds cast:
“In 1899, J.P. Morgan and Drexel went to England to attend the International Bankers Convention. When they returned, J.P. Morgan had been appointed head representative of the Rothschild interests in the United States. As the result of the London Conference, J.P. Morgan and Company of New York, Drexel and Company of Philadelphia, Grenfell and Company of London, and Morgan Harjes Cie of Paris, M.M. Warburg Company of Germany and America, and the House of Rothschild were all affiliated.”
Congressman Charles Lindbergh was one of the few individuals who knew and understood, not only the workings of our government, but of the elite money powers as well. In his book “The Money Trust”, Congressman Lindbergh had this to say:
“Ever since the Civil War, Congress has allowed the bankers to control financial legislation. The membership of the Finance Committee in the Senate (now the Banking and Currency Committee) and the Committee on Banking and Currency in the House have been made up chiefly of bankers, their agents, and their attorneys. ...In this way the committees have been able to control legislation in the interests of the few.”
THE FINANCE OF WAR
The sinews of war are money. All wars require huge financial sums. But where does all the money come from? Has it been saved up and stored somewhere in a war chest, awaiting the call to arms? Or does the start of hostilities suddenly require the raising of funds? By what art is war financed?
War requires soldiers, weapons, food, water and other necessities; all of which must be paid for with money. Without money, there can be no war – which means that war makes money for those who finance it. So who are the merchants of death? War is the business of the elite international collectivists who loan money to nations, not to individuals. And of the self-same global industrialists who build and produce the war machine.
Frederick Morton, in “The Rothschilds” says:
“For the last one hundred and fifty years the history of the House of Rothschild has been to an amazing extent the backstage history of Western Europe.... Because of their success in making loans not to individuals, but to nations, they reaped huge profits… Someone once said that the wealth of Rothschild consists of the bankruptcy of nations.”
In “The Great Soviet Encyclopedia” we find:
“The clearest example of a personal linkup (international directorates) on a Western European scale is the Rothschild family. The London and Paris branches of the Rothschilds are bound not just by family ties but also by personal link-ups in jointly controlled companies.”
A past professor of history at Georgetown University, Dr. Carrol Quigley, has written about an international association of powerbrokers, who formed The Round Table Group in London. The first members of the group were: Cecil Rhodes, Lord Rothschild, Lord Rosebery (who was a Rothschild in-law), and Lord Curzon.
Dr. Quigley mentions that this European Group was affiliated with another group in the United States, as he writes in his famous work “Tragedy and Hope”:
“The chief backbone of this organization grew up along the already existing financial cooperation running from the Morgan Bank in New York to a group of international financiers in London led by Lazard Brothers.”
A mighty breed these merchants of death, that have the wealth and power to mobilize the entire armies of nations; and if the possession of the wealth temporarily eludes them, they always have recourse to the King’s Prerogative: the lending of that which they do not have, so succinctly stated by William Patterson, founder of the Bank of England: “Hath benefit of interest on all the moneys which it, the bank, creates out of nothing.”
Such are the powers of magic, wielded by the money wizards, which forge the heavy shackles of credit and debt: the cost much greater than a pound of flesh; the cost of the soul – forever lost, to the evil art.
But even the Gods must answer to the twice times three Sisters of Fury and Fate. They would do well to heed the warning given from ages past:
“We claim to be just and upright. No wrath from us will come stealthily to the one who holds out clean hands, and he will go through life unharmed; but whoever sins and hides his blood-stained hands, as avengers of bloodshed we appear against him to the end, presenting ourselves as upright witnesses for the dead.” [The ERINYES. Aeschylus, Eumenides 310]
And yet, the Sisters pay tribute to Necessity, the goddess that bore them life. Prometheus himself was humbled by Her awesome power:
"I must bear my allotted doom as lightly as I can,
knowing that the might of Necessity permits no resistance."
[Aeschylus, Prometheus Bound 104]
© 2004 Douglas V. Gnazzo
All rights reserved.
12/09/2004 Honest Money, Part VIII: Final Summary and Conclusions
11/30/2004 Honest Money, Part VII: The Moneychangers - Secrets of the Temple
11/22/2004 Honest Money, Part VI: The European Connection
11/15/2004 Honest Money, Part V: History of American Money and Banking
11/01/2004 Honest Money, Part IV: Treasury Notes
10/25/2004 Honest Money, Part III: Coinage Acts from 1834-1900
10/20/2004 Honest Money, Part II: Silver Standard with a Bimetallic Coinage System
10/20/2004 Honest Money, Part I: The Constitution and Honest Money
HONEST MONEY
Part VI: The European Connection
by Douglas V. Gnazzo
November 22, 2004
CIVIL WAR FINANCING
Although Greenbacks are believed to be the main source of financing for the Civil War, they were not – government bonds were. The total emission of Greenbacks was under $850 million, while Treasury Bonds were issued in the amount of almost $2 billion.
Jay Cooke and his brother Henry were close friends with Salmon Chase. The Cooke brothers supplied the money and backing that got Chase elected as Secretary of the Treasury. Henry owned one of the leading newspapers in Philadelphia, and he used it as a powerful forum to lobby for Chase. A letter from Cooke’s father stated that his sons planned to get Chase into the cabinet and Sherman into the Senate “to make money out of government contracts.”
The new Secretary of the Treasury responded by granting Jay Cooke the exclusive authority to underwrite all government bonds. Cooke retained the coveted monopoly from 1862 to 1873, for all but one year; during which time he underwrote bonds totaling $2 billion. The competition of a free market is a wonder to behold, an enigma that baffles the most penetrating minds.
Visions of conquest inspired the brother’s next move. They convinced Senator Sherman to sponsor the National Currency Acts, which he readily pushed through Congress, creating the first national banking system.
NATIONAL CURRENCY ACTS
Under the direction of Senator Sherman, Congress passed two National Currency Acts, one in 1863, another in 1864. The acts were intended to further the relationship between the government and the private banks, forming a symbiotic partnership capable of issuing a national paper currency.
At first the national banks were allowed to issue notes up to 90% of the value of their government bond reserves. In 1900, the limit was raised to 100%. Cooke already controlled the selling of all bonds. By creating a national banking system to purchase them with, he and his cronies gained complete dominance of the market.
A heavy tax was levied on state bank notes, causing them to essentially disappear. The Federal government now issued national banking charters. The National Currency Acts did not require national banks to redeem their notes in gold and silver. United States bonds provided the security, which meant that government debt was backing the currency. National bank notes were forced into use as the circulating currency, by declaring them to be legal tender for almost all payments to and from the government.
A more profitable scheme would be hard to come by, but the elite collectivists would find yet other ways to turn their dreams of wealth into the people’s nightmares: of debt, taxation; bondage and servitude. A society divided into the haves – and the haves not, subjects to the whims of fortune.
JACKSON AGAINST THE MONEY POWERS
Andrew Jackson has been quoted as saying the following to a group of bankers as they approached him in the drawing room of the White House:
“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be a true, gentleman, but that is your sin! Should I let you go on you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal God, I will rout you out!”
Who were the vipers and thieves Jackson was referring to? Were they the elite banking interests fighting for control of our monetary system? In 1862, while Senator Sherman was heading the Finance Committee, a most startling publication appeared: The Hazard Circular of 1862, which stated:
“Slavery is likely to be abolished by the war power and all chattel slavery abolished. This I and my European friends are in favor of, for slavery is but the owning of labor and carries with it the care of the laborers, while the European plan, led on by England, is that capital shall control labor by controlling wages. The great debt that the capitalists will see to it is made out of the war, must be used as a means to control the volume of money. To accomplish this the bonds must be used as a banking basis. We are now waiting for the Secretary of the Treasury to make this recommendation to Congress. It will not do to allow the Greenback, as it is called, to circulate as money any length of time, as we cannot control that. But we can control the bonds and through them the bank issues.”
Was it possible that Congress, although unknown to all but a select few elite, could pass legislation so similar to the above European plan to control America’s money? Recall the Coinage Act of 1878 that authorized the President to meet with foreign dignitaries to discuss an international monetary system; and the words of Senator Bate in regards to the Coinage Act of 1900: “It is the renewal and extension of the life of the bonds they are after, so that the national banks may flourish under existing laws.”
But many will dismiss The Hazard Circular, questioning its credibility and source of origin. Perhaps we should look to a more well-established and respected publication such as the London Times, which had the following to say:
“If that mischievous financial policy which had its origin in the North American Republic [i.e. honest Constitutionally authorized non debt money] should become indurated down to a fixture, then that government will furnish its own money without cost. It will pay off its debts and be without a debt [to the international bankers]. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.”
Taken together, the above statements provide a most revealing portrait of the elite money interests; and the sickness of a demented mind – itself deluded, while deluding others. Such disdain of freedom and liberty can only be equaled by their appalling view of world order. President Abraham Lincoln made a speech that was eerily similar to the above quoted Times article. It read as follows:
“Yes, we may all congratulate ourselves that this cruel war is nearing its close. It has cost a vast amount of treasure and blood. The best blood of the flower of American youth has been freely offered upon our country's altar that the Nation might live. It has been, indeed a trying hour for the Republic; but I see in the future a crisis approaching that unnerves me and causes me to tremble for the safety of my country.
As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of the war.”
Considering the fact that one half of one percent of the world’s population own 95% of everything, Lincoln’s fears have proved to be well grounded – a prescient warning of things to come.
JULLIARD V. GREENMAN
In 1884, the Supreme Court heard the case of Julliard v. Greenman, which reaffirmed the earlier Knox ruling on the constitutionality of paper currency as legal tender; but now it was applied to United States Notes issued during peace, as opposed to the duress of war. Supportive of Honest Money was the dissenting opinion of Justice Fields, who correctly said:
“If there be anything in the history of the constitution which can be established with moral certainty, it is that the framers of that instrument intended to prohibit the issue of legal-tender notes both by the general government and by the states...” [110 U.S. 421 at 451]
“We all know that the value of the notes of the government in the market, and in the commercial world generally, depends upon their convertibility on demand into coin; and as confidence in such convertibility increases of diminishes, so does the exchangeable value of the notes vary. So far from becoming themselves standards of value by reason of the legislative declaration to that effect, their own value is measured by the facility with which they can be exchanged into that which alone is regarded as money by the commercial world. They are promises of money, but they are not money in the sense of the constitution.” [110 U.S. 421 at 464]
“But beyond and above all the objections which I have stated to the decision recognizing a power in congress to impart the legal-tender quality to the notes of the government, is my objection to the rule of construction, adopted by the court to reach its conclusions — a rule which, fully carried out, would change the whole nature of our constitution, and break down the barriers which separate a government of limited from one of unlimited powers...The framers of the constitution, as I have said, were profoundly impressed with the evils which had resulted from the vicious legislation of the states making notes a legal tender, and they determined that such a power should not exist any longer. They therefore prohibited the states from exercising it, and they refused to grant it to the new government which they created. Of what purpose is it, then, to refer to the exercise of the power by the absolute or the limited governments of Europe, or by the states previous to out constitution? Congress can exercise no power by virtue of any supposed inherent sovereignty in the general government...The power to commit violence, perpetrate injustice, take private property by force without compensation to the owner, and compel the receipt of promises to pay in place of money, may be exercised, as it often has been, by irresponsible authority, but it cannot be considered as belonging to a government founded upon law. But be that as it may, there is no such thing as a power of inherent sovereignty in the government of the United States. It is a government of delegated powers, supreme within its prescribed sphere, but powerless outside of it. In this country, sovereignty resides in the people, and congress can exercise no power which they have not, by their constitution, intrusted to it; all else is withheld.” [110 U.S. 421 at 466-7]
“The doctrine that a power not expressly forbidden may be exercised would, as I have observed, change the character of our government. If I have read the constitution aright...the true doctrine is the very opposite of this. If the power is not in terms granted, and is not necessary and proper for the exercise of a power which is thus granted, it does not exist.” [110 U.S. 421 at 467-8]
Our current Supreme Court Justices and elected representatives would do well to heed the words of Justice Field; and to emulate his moral courage, knowledge, and understanding of our Constitution; and to act accordingly.
THE INTERNATIONAL SYNDICATE
Although Jackson had vetoed the renewal of the charter of the Bank of the United States, he was probably unaware that a few months earlier, in 1835, the House of Rothschild had signed an agreement with the United States Government, superseding the firm of Baring Brothers as the financial agent of the Department of State. Considering Jackson’s loathing of the money powers, any knowledge concerning such an agreement with the Rothschilds would have elicited his considerable wrath. The following is from the Rothschild’s Journal Records:
“The first established links between N. M. Rothschild and the United States date back to 1821 when the bankers R. & J. Phillips in Philadelphia became agents for NMR business in the USA. Phillips were the first in a series of agents who were used to develop NMR's business interests in the country and correspondence from them can be found among the records of the Correspondence Department.
From the Bank's accounts it is clear that by the end of the 1830s substantial and wide-ranging investments had been made in municipal and State stock, in canal and mining shares and in finance houses. The main activities carried on through the agents were in the fields of bullion and bills of exchange.
In 1833 NMR entrusted the New York banking house of J. L. & S. Josephs & Co. with the representation of its business interests in that city. The firm worked in conjunction with R. & J. Phillips.
In the following year, 1834, NMR succeeded in obtaining the business of undertaking the United States Government's banking interests in Europe, hitherto in the hands of Barings. The Rothschilds represented the U. S. Government until 1843, when John Tyler became President and Barings' ally Daniel Webster was appointed Secretary of State. Webster promptly restored the accounts from Rothschilds to Barings.
The disastrous New York banking crisis of 1837 saw the failure, along with many other banks, of the Rothschild’s New York agents J. L. & S. Josephs. This coincided with the arrival in New York of August Belmont, a confidential clerk employed by the Frankfurt Rothschilds.
Though on his way to Havana on behalf of the London and Paris Rothschilds, to investigate the affairs of the Spanish Government, on discovering the crisis in New York, Belmont turned his attention to sorting out Rothschild interests there. He quickly realized the potential of New York's growing economy and suggested that the Rothschilds appoint him as their agent in New York. The firm of August Belmont & Co. acted in this capacity until 1925.
The discovery of gold in California in 1848 awakened NMR interest, given the Bank's substantial involvement in bullion trading. A second important Rothschild agency in the USA was rapidly established in San Francisco in 1849 by Benjamin Davidson and John May. The connection persisted until the impact of the gold rush had diminished. Letters from the American agents are mainly filed within the Correspondence Department.
As far back as 1839, NMR had been involved in the business of raising finance for the U. S. Federal Government and its institutions. In that year, NMR, together with the Paris house of de Rothschild Frères, contracted for a £900,000 loan to the U. S. Bank.
It was, however, in the 1870s that the Bank's involvement in this area was at its fullest. In 1872, NMR raised a $15 million bond issue for the City of New York to finance municipal improvements and in the following year, with Baring Brothers, raised a 5% funded loan for the US Government for a massive $300 million. A loan of equal size was raised in 1876, this time in conjunction with J. S. Morgan & Co. and Seligman Brothers and in 1877 a further $700 million, with these same partners, together with Rose & Co.
The last major issue raised on behalf of the Federal Government was for $62 million, in 1895, with J. S. Morgan. The scope of the records in the American Department is wider then the name suggests. Rothschilds’ non-European business interests, in Australia, Mexico, China and India, were dealt with by the American Department.”
Most writers on this subject believe that the Rothschilds did not have much interest in American finance; yet we find them intricately involved in huge deals with the Philadelphian moneychangers, the New York and Wall Street financiers, and a West Coast connection as well. Perhaps compared to their all-encompassing dealings of global conquest, this was just a drop in the till.
George Wheeler, in “Pierpont Morgan and Friends, the Anatomy of a Myth” says:
“But there were steps being taken even now to bring him out of the financial backwaters – and they were not being taken by Pierpont Morgan himself. The first suggestion of his name for a role in the recharging of the reserve originated with the London branch of the House of Rothschild, Belmont's employers.”
Considering the various banking houses that we have seen directly influence our monetary policy; and the many financial deals with these establishments; the House of Rothschild looms large as one of the guiding hands, lurking in the shadows.
In his book “Pawns In The Game”, William Guy Carr clearly illustrates the sphere of influence the Rothschilds cast:
“In 1899, J.P. Morgan and Drexel went to England to attend the International Bankers Convention. When they returned, J.P. Morgan had been appointed head representative of the Rothschild interests in the United States. As the result of the London Conference, J.P. Morgan and Company of New York, Drexel and Company of Philadelphia, Grenfell and Company of London, and Morgan Harjes Cie of Paris, M.M. Warburg Company of Germany and America, and the House of Rothschild were all affiliated.”
Congressman Charles Lindbergh was one of the few individuals who knew and understood, not only the workings of our government, but of the elite money powers as well. In his book “The Money Trust”, Congressman Lindbergh had this to say:
“Ever since the Civil War, Congress has allowed the bankers to control financial legislation. The membership of the Finance Committee in the Senate (now the Banking and Currency Committee) and the Committee on Banking and Currency in the House have been made up chiefly of bankers, their agents, and their attorneys. ...In this way the committees have been able to control legislation in the interests of the few.”
THE FINANCE OF WAR
The sinews of war are money. All wars require huge financial sums. But where does all the money come from? Has it been saved up and stored somewhere in a war chest, awaiting the call to arms? Or does the start of hostilities suddenly require the raising of funds? By what art is war financed?
War requires soldiers, weapons, food, water and other necessities; all of which must be paid for with money. Without money, there can be no war – which means that war makes money for those who finance it. So who are the merchants of death? War is the business of the elite international collectivists who loan money to nations, not to individuals. And of the self-same global industrialists who build and produce the war machine.
Frederick Morton, in “The Rothschilds” says:
“For the last one hundred and fifty years the history of the House of Rothschild has been to an amazing extent the backstage history of Western Europe.... Because of their success in making loans not to individuals, but to nations, they reaped huge profits… Someone once said that the wealth of Rothschild consists of the bankruptcy of nations.”
In “The Great Soviet Encyclopedia” we find:
“The clearest example of a personal linkup (international directorates) on a Western European scale is the Rothschild family. The London and Paris branches of the Rothschilds are bound not just by family ties but also by personal link-ups in jointly controlled companies.”
A past professor of history at Georgetown University, Dr. Carrol Quigley, has written about an international association of powerbrokers, who formed The Round Table Group in London. The first members of the group were: Cecil Rhodes, Lord Rothschild, Lord Rosebery (who was a Rothschild in-law), and Lord Curzon.
Dr. Quigley mentions that this European Group was affiliated with another group in the United States, as he writes in his famous work “Tragedy and Hope”:
“The chief backbone of this organization grew up along the already existing financial cooperation running from the Morgan Bank in New York to a group of international financiers in London led by Lazard Brothers.”
A mighty breed these merchants of death, that have the wealth and power to mobilize the entire armies of nations; and if the possession of the wealth temporarily eludes them, they always have recourse to the King’s Prerogative: the lending of that which they do not have, so succinctly stated by William Patterson, founder of the Bank of England: “Hath benefit of interest on all the moneys which it, the bank, creates out of nothing.”
Such are the powers of magic, wielded by the money wizards, which forge the heavy shackles of credit and debt: the cost much greater than a pound of flesh; the cost of the soul – forever lost, to the evil art.
But even the Gods must answer to the twice times three Sisters of Fury and Fate. They would do well to heed the warning given from ages past:
“We claim to be just and upright. No wrath from us will come stealthily to the one who holds out clean hands, and he will go through life unharmed; but whoever sins and hides his blood-stained hands, as avengers of bloodshed we appear against him to the end, presenting ourselves as upright witnesses for the dead.” [The ERINYES. Aeschylus, Eumenides 310]
And yet, the Sisters pay tribute to Necessity, the goddess that bore them life. Prometheus himself was humbled by Her awesome power:
"I must bear my allotted doom as lightly as I can,
knowing that the might of Necessity permits no resistance."
[Aeschylus, Prometheus Bound 104]
© 2004 Douglas V. Gnazzo
All rights reserved.
12/09/2004 Honest Money, Part VIII: Final Summary and Conclusions
11/30/2004 Honest Money, Part VII: The Moneychangers - Secrets of the Temple
11/22/2004 Honest Money, Part VI: The European Connection
11/15/2004 Honest Money, Part V: History of American Money and Banking
11/01/2004 Honest Money, Part IV: Treasury Notes
10/25/2004 Honest Money, Part III: Coinage Acts from 1834-1900
10/20/2004 Honest Money, Part II: Silver Standard with a Bimetallic Coinage System
10/20/2004 Honest Money, Part I: The Constitution and Honest Money
HONEST MONEY
Part VI: The European Connection
by Douglas V. Gnazzo
November 22, 2004
CIVIL WAR FINANCING
Although Greenbacks are believed to be the main source of financing for the Civil War, they were not – government bonds were. The total emission of Greenbacks was under $850 million, while Treasury Bonds were issued in the amount of almost $2 billion.
Jay Cooke and his brother Henry were close friends with Salmon Chase. The Cooke brothers supplied the money and backing that got Chase elected as Secretary of the Treasury. Henry owned one of the leading newspapers in Philadelphia, and he used it as a powerful forum to lobby for Chase. A letter from Cooke’s father stated that his sons planned to get Chase into the cabinet and Sherman into the Senate “to make money out of government contracts.”
The new Secretary of the Treasury responded by granting Jay Cooke the exclusive authority to underwrite all government bonds. Cooke retained the coveted monopoly from 1862 to 1873, for all but one year; during which time he underwrote bonds totaling $2 billion. The competition of a free market is a wonder to behold, an enigma that baffles the most penetrating minds.
Visions of conquest inspired the brother’s next move. They convinced Senator Sherman to sponsor the National Currency Acts, which he readily pushed through Congress, creating the first national banking system.
NATIONAL CURRENCY ACTS
Under the direction of Senator Sherman, Congress passed two National Currency Acts, one in 1863, another in 1864. The acts were intended to further the relationship between the government and the private banks, forming a symbiotic partnership capable of issuing a national paper currency.
At first the national banks were allowed to issue notes up to 90% of the value of their government bond reserves. In 1900, the limit was raised to 100%. Cooke already controlled the selling of all bonds. By creating a national banking system to purchase them with, he and his cronies gained complete dominance of the market.
A heavy tax was levied on state bank notes, causing them to essentially disappear. The Federal government now issued national banking charters. The National Currency Acts did not require national banks to redeem their notes in gold and silver. United States bonds provided the security, which meant that government debt was backing the currency. National bank notes were forced into use as the circulating currency, by declaring them to be legal tender for almost all payments to and from the government.
A more profitable scheme would be hard to come by, but the elite collectivists would find yet other ways to turn their dreams of wealth into the people’s nightmares: of debt, taxation; bondage and servitude. A society divided into the haves – and the haves not, subjects to the whims of fortune.
JACKSON AGAINST THE MONEY POWERS
Andrew Jackson has been quoted as saying the following to a group of bankers as they approached him in the drawing room of the White House:
“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be a true, gentleman, but that is your sin! Should I let you go on you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal God, I will rout you out!”
Who were the vipers and thieves Jackson was referring to? Were they the elite banking interests fighting for control of our monetary system? In 1862, while Senator Sherman was heading the Finance Committee, a most startling publication appeared: The Hazard Circular of 1862, which stated:
“Slavery is likely to be abolished by the war power and all chattel slavery abolished. This I and my European friends are in favor of, for slavery is but the owning of labor and carries with it the care of the laborers, while the European plan, led on by England, is that capital shall control labor by controlling wages. The great debt that the capitalists will see to it is made out of the war, must be used as a means to control the volume of money. To accomplish this the bonds must be used as a banking basis. We are now waiting for the Secretary of the Treasury to make this recommendation to Congress. It will not do to allow the Greenback, as it is called, to circulate as money any length of time, as we cannot control that. But we can control the bonds and through them the bank issues.”
Was it possible that Congress, although unknown to all but a select few elite, could pass legislation so similar to the above European plan to control America’s money? Recall the Coinage Act of 1878 that authorized the President to meet with foreign dignitaries to discuss an international monetary system; and the words of Senator Bate in regards to the Coinage Act of 1900: “It is the renewal and extension of the life of the bonds they are after, so that the national banks may flourish under existing laws.”
But many will dismiss The Hazard Circular, questioning its credibility and source of origin. Perhaps we should look to a more well-established and respected publication such as the London Times, which had the following to say:
“If that mischievous financial policy which had its origin in the North American Republic [i.e. honest Constitutionally authorized non debt money] should become indurated down to a fixture, then that government will furnish its own money without cost. It will pay off its debts and be without a debt [to the international bankers]. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.”
Taken together, the above statements provide a most revealing portrait of the elite money interests; and the sickness of a demented mind – itself deluded, while deluding others. Such disdain of freedom and liberty can only be equaled by their appalling view of world order. President Abraham Lincoln made a speech that was eerily similar to the above quoted Times article. It read as follows:
“Yes, we may all congratulate ourselves that this cruel war is nearing its close. It has cost a vast amount of treasure and blood. The best blood of the flower of American youth has been freely offered upon our country's altar that the Nation might live. It has been, indeed a trying hour for the Republic; but I see in the future a crisis approaching that unnerves me and causes me to tremble for the safety of my country.
As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of the war.”
Considering the fact that one half of one percent of the world’s population own 95% of everything, Lincoln’s fears have proved to be well grounded – a prescient warning of things to come.
JULLIARD V. GREENMAN
In 1884, the Supreme Court heard the case of Julliard v. Greenman, which reaffirmed the earlier Knox ruling on the constitutionality of paper currency as legal tender; but now it was applied to United States Notes issued during peace, as opposed to the duress of war. Supportive of Honest Money was the dissenting opinion of Justice Fields, who correctly said:
“If there be anything in the history of the constitution which can be established with moral certainty, it is that the framers of that instrument intended to prohibit the issue of legal-tender notes both by the general government and by the states...” [110 U.S. 421 at 451]
“We all know that the value of the notes of the government in the market, and in the commercial world generally, depends upon their convertibility on demand into coin; and as confidence in such convertibility increases of diminishes, so does the exchangeable value of the notes vary. So far from becoming themselves standards of value by reason of the legislative declaration to that effect, their own value is measured by the facility with which they can be exchanged into that which alone is regarded as money by the commercial world. They are promises of money, but they are not money in the sense of the constitution.” [110 U.S. 421 at 464]
“But beyond and above all the objections which I have stated to the decision recognizing a power in congress to impart the legal-tender quality to the notes of the government, is my objection to the rule of construction, adopted by the court to reach its conclusions — a rule which, fully carried out, would change the whole nature of our constitution, and break down the barriers which separate a government of limited from one of unlimited powers...The framers of the constitution, as I have said, were profoundly impressed with the evils which had resulted from the vicious legislation of the states making notes a legal tender, and they determined that such a power should not exist any longer. They therefore prohibited the states from exercising it, and they refused to grant it to the new government which they created. Of what purpose is it, then, to refer to the exercise of the power by the absolute or the limited governments of Europe, or by the states previous to out constitution? Congress can exercise no power by virtue of any supposed inherent sovereignty in the general government...The power to commit violence, perpetrate injustice, take private property by force without compensation to the owner, and compel the receipt of promises to pay in place of money, may be exercised, as it often has been, by irresponsible authority, but it cannot be considered as belonging to a government founded upon law. But be that as it may, there is no such thing as a power of inherent sovereignty in the government of the United States. It is a government of delegated powers, supreme within its prescribed sphere, but powerless outside of it. In this country, sovereignty resides in the people, and congress can exercise no power which they have not, by their constitution, intrusted to it; all else is withheld.” [110 U.S. 421 at 466-7]
“The doctrine that a power not expressly forbidden may be exercised would, as I have observed, change the character of our government. If I have read the constitution aright...the true doctrine is the very opposite of this. If the power is not in terms granted, and is not necessary and proper for the exercise of a power which is thus granted, it does not exist.” [110 U.S. 421 at 467-8]
Our current Supreme Court Justices and elected representatives would do well to heed the words of Justice Field; and to emulate his moral courage, knowledge, and understanding of our Constitution; and to act accordingly.
THE INTERNATIONAL SYNDICATE
Although Jackson had vetoed the renewal of the charter of the Bank of the United States, he was probably unaware that a few months earlier, in 1835, the House of Rothschild had signed an agreement with the United States Government, superseding the firm of Baring Brothers as the financial agent of the Department of State. Considering Jackson’s loathing of the money powers, any knowledge concerning such an agreement with the Rothschilds would have elicited his considerable wrath. The following is from the Rothschild’s Journal Records:
“The first established links between N. M. Rothschild and the United States date back to 1821 when the bankers R. & J. Phillips in Philadelphia became agents for NMR business in the USA. Phillips were the first in a series of agents who were used to develop NMR's business interests in the country and correspondence from them can be found among the records of the Correspondence Department.
From the Bank's accounts it is clear that by the end of the 1830s substantial and wide-ranging investments had been made in municipal and State stock, in canal and mining shares and in finance houses. The main activities carried on through the agents were in the fields of bullion and bills of exchange.
In 1833 NMR entrusted the New York banking house of J. L. & S. Josephs & Co. with the representation of its business interests in that city. The firm worked in conjunction with R. & J. Phillips.
In the following year, 1834, NMR succeeded in obtaining the business of undertaking the United States Government's banking interests in Europe, hitherto in the hands of Barings. The Rothschilds represented the U. S. Government until 1843, when John Tyler became President and Barings' ally Daniel Webster was appointed Secretary of State. Webster promptly restored the accounts from Rothschilds to Barings.
The disastrous New York banking crisis of 1837 saw the failure, along with many other banks, of the Rothschild’s New York agents J. L. & S. Josephs. This coincided with the arrival in New York of August Belmont, a confidential clerk employed by the Frankfurt Rothschilds.
Though on his way to Havana on behalf of the London and Paris Rothschilds, to investigate the affairs of the Spanish Government, on discovering the crisis in New York, Belmont turned his attention to sorting out Rothschild interests there. He quickly realized the potential of New York's growing economy and suggested that the Rothschilds appoint him as their agent in New York. The firm of August Belmont & Co. acted in this capacity until 1925.
The discovery of gold in California in 1848 awakened NMR interest, given the Bank's substantial involvement in bullion trading. A second important Rothschild agency in the USA was rapidly established in San Francisco in 1849 by Benjamin Davidson and John May. The connection persisted until the impact of the gold rush had diminished. Letters from the American agents are mainly filed within the Correspondence Department.
As far back as 1839, NMR had been involved in the business of raising finance for the U. S. Federal Government and its institutions. In that year, NMR, together with the Paris house of de Rothschild Frères, contracted for a £900,000 loan to the U. S. Bank.
It was, however, in the 1870s that the Bank's involvement in this area was at its fullest. In 1872, NMR raised a $15 million bond issue for the City of New York to finance municipal improvements and in the following year, with Baring Brothers, raised a 5% funded loan for the US Government for a massive $300 million. A loan of equal size was raised in 1876, this time in conjunction with J. S. Morgan & Co. and Seligman Brothers and in 1877 a further $700 million, with these same partners, together with Rose & Co.
The last major issue raised on behalf of the Federal Government was for $62 million, in 1895, with J. S. Morgan. The scope of the records in the American Department is wider then the name suggests. Rothschilds’ non-European business interests, in Australia, Mexico, China and India, were dealt with by the American Department.”
Most writers on this subject believe that the Rothschilds did not have much interest in American finance; yet we find them intricately involved in huge deals with the Philadelphian moneychangers, the New York and Wall Street financiers, and a West Coast connection as well. Perhaps compared to their all-encompassing dealings of global conquest, this was just a drop in the till.
George Wheeler, in “Pierpont Morgan and Friends, the Anatomy of a Myth” says:
“But there were steps being taken even now to bring him out of the financial backwaters – and they were not being taken by Pierpont Morgan himself. The first suggestion of his name for a role in the recharging of the reserve originated with the London branch of the House of Rothschild, Belmont's employers.”
Considering the various banking houses that we have seen directly influence our monetary policy; and the many financial deals with these establishments; the House of Rothschild looms large as one of the guiding hands, lurking in the shadows.
In his book “Pawns In The Game”, William Guy Carr clearly illustrates the sphere of influence the Rothschilds cast:
“In 1899, J.P. Morgan and Drexel went to England to attend the International Bankers Convention. When they returned, J.P. Morgan had been appointed head representative of the Rothschild interests in the United States. As the result of the London Conference, J.P. Morgan and Company of New York, Drexel and Company of Philadelphia, Grenfell and Company of London, and Morgan Harjes Cie of Paris, M.M. Warburg Company of Germany and America, and the House of Rothschild were all affiliated.”
Congressman Charles Lindbergh was one of the few individuals who knew and understood, not only the workings of our government, but of the elite money powers as well. In his book “The Money Trust”, Congressman Lindbergh had this to say:
“Ever since the Civil War, Congress has allowed the bankers to control financial legislation. The membership of the Finance Committee in the Senate (now the Banking and Currency Committee) and the Committee on Banking and Currency in the House have been made up chiefly of bankers, their agents, and their attorneys. ...In this way the committees have been able to control legislation in the interests of the few.”
THE FINANCE OF WAR
The sinews of war are money. All wars require huge financial sums. But where does all the money come from? Has it been saved up and stored somewhere in a war chest, awaiting the call to arms? Or does the start of hostilities suddenly require the raising of funds? By what art is war financed?
War requires soldiers, weapons, food, water and other necessities; all of which must be paid for with money. Without money, there can be no war – which means that war makes money for those who finance it. So who are the merchants of death? War is the business of the elite international collectivists who loan money to nations, not to individuals. And of the self-same global industrialists who build and produce the war machine.
Frederick Morton, in “The Rothschilds” says:
“For the last one hundred and fifty years the history of the House of Rothschild has been to an amazing extent the backstage history of Western Europe.... Because of their success in making loans not to individuals, but to nations, they reaped huge profits… Someone once said that the wealth of Rothschild consists of the bankruptcy of nations.”
In “The Great Soviet Encyclopedia” we find:
“The clearest example of a personal linkup (international directorates) on a Western European scale is the Rothschild family. The London and Paris branches of the Rothschilds are bound not just by family ties but also by personal link-ups in jointly controlled companies.”
A past professor of history at Georgetown University, Dr. Carrol Quigley, has written about an international association of powerbrokers, who formed The Round Table Group in London. The first members of the group were: Cecil Rhodes, Lord Rothschild, Lord Rosebery (who was a Rothschild in-law), and Lord Curzon.
Dr. Quigley mentions that this European Group was affiliated with another group in the United States, as he writes in his famous work “Tragedy and Hope”:
“The chief backbone of this organization grew up along the already existing financial cooperation running from the Morgan Bank in New York to a group of international financiers in London led by Lazard Brothers.”
A mighty breed these merchants of death, that have the wealth and power to mobilize the entire armies of nations; and if the possession of the wealth temporarily eludes them, they always have recourse to the King’s Prerogative: the lending of that which they do not have, so succinctly stated by William Patterson, founder of the Bank of England: “Hath benefit of interest on all the moneys which it, the bank, creates out of nothing.”
Such are the powers of magic, wielded by the money wizards, which forge the heavy shackles of credit and debt: the cost much greater than a pound of flesh; the cost of the soul – forever lost, to the evil art.
But even the Gods must answer to the twice times three Sisters of Fury and Fate. They would do well to heed the warning given from ages past:
“We claim to be just and upright. No wrath from us will come stealthily to the one who holds out clean hands, and he will go through life unharmed; but whoever sins and hides his blood-stained hands, as avengers of bloodshed we appear against him to the end, presenting ourselves as upright witnesses for the dead.” [The ERINYES. Aeschylus, Eumenides 310]
And yet, the Sisters pay tribute to Necessity, the goddess that bore them life. Prometheus himself was humbled by Her awesome power:
"I must bear my allotted doom as lightly as I can,
knowing that the might of Necessity permits no resistance."
[Aeschylus, Prometheus Bound 104]
© 2004 Douglas V. Gnazzo
All rights reserved.
12/09/2004 Honest Money, Part VIII: Final Summary and Conclusions
11/30/2004 Honest Money, Part VII: The Moneychangers - Secrets of the Temple
11/22/2004 Honest Money, Part VI: The European Connection
11/15/2004 Honest Money, Part V: History of American Money and Banking
11/01/2004 Honest Money, Part IV: Treasury Notes
10/25/2004 Honest Money, Part III: Coinage Acts from 1834-1900
10/20/2004 Honest Money, Part II: Silver Standard with a Bimetallic Coinage System
10/20/2004 Honest Money, Part I: The Constitution and Honest Money
Brent
http://www.earlyamerica.com/review/summer/letter.html
"Shays' Rebellion — a sometimes-violent uprising of farmers angry over conditions in Massachusetts in 1786 — prompted Thomas Jefferson to express the view that "a little rebellion now and then is a good thing" for America. Unlike other leaders of The Republic, Jefferson felt that the people had a right to express their grievances against the government, even if those grievances might take the form of violent action."
http://thetruckintruth.blogspot.com/200 ... ks-to.html
James Garfield became the Republican President in 1881 with a firm grasp of where the problem lay:
"Whosoever controls the volume of money in any country is absolute master of all industry and commerce... And when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate." - James Garfield 1881 (Within weeks of releasing this statement President Garfield died of poisoning.)
It is these 'absolute masters' that own you!
Canada's fractional banking system is part of that.
I don't care if the "Irish" fart shamrocks. I do are that the is bank controld slavey in existance under the BIS and OVER our sorry asses!
People whine about high taxation due to debt not relising, it seems who the debt holders are.
The Rothchilds lived in a world of needless complexities, which they constructed and manipulated to their great advantage, depending on a cowed "common man" to remain in "shock and awe".
http://www.libertydollar.org/news-stori ... 918104.pdf
http://www.libertydollar.org/
HONEST MONEY
Part VII: The Moneychangers - Secrets of the Temple
by Douglas V. Gnazzo
November 30, 2004
THE BATTLE OF SILVER AND GOLD
Nelson Aldrich was financially well off when he left the wholesale grocery business. He then turned his attention to the political arena. Election to the United States Senate quickly followed. Within a few short years, Aldrich became a multi-millionaire of powerful influence. He was the father-in-law of John D. Rockefeller, and his grandson, Nelson Aldrich Rockefeller, later became Vice President of the United States.
Plans for a central bank had been on the drawing board long before 1900. A complex task of such intricate detail required vast amounts of time and effort to construct; the work performed behind the scenes, out of the public view, waiting for the perfect moment to be unveiled. The sensitive demeanor of public opinion demanded that the subject be revealed in the most convincing and acceptable manner possible, avoiding all suspicion or doubt.
Charles A. Conant provided the initial groundwork for both a central bank and a gold exchange system. From 1902 to 1906, Conant was the treasurer of the Morgan controlled Morton Trust Company of New York. He also worked for the Federal government as one of the three members of Roosevelt’s Commission On International Exchange, and for Brown Brothers Harriman. Conant was the guiding hand behind Mexico’s, Panama’s, and the Philippine’s change from a silver standard to a gold exchange system. China and Cuba were his only failures to convert to a gold standard.
In 1900, the United States, Britain, and Japan intervened in the Boxer Rebellion in China. After hostilities had ended, China was ordered to pay war reparations of $300 million. The United States demanded payment in gold. At the time, China was on a depreciated silver standard and wanted to pay in silver. Fortunately, the Chinese had centuries of experience in monetary affairs, and had learned their lessons well. They knew a ruse when they saw one, refusing to pay in gold. Silver was finally accepted.
Why did the elite money powers push Roosevelt, as well as the rest of the world, away from a silver standard, towards a gold standard? Might it be for the same reasons we have seen our own monetary system flip back and forth from silver to gold?
Our history provides clear evidence that first one metal was over-valued and then the other, creating imbalances in the price structure that could be manipulated in the domestic home market, and then sold abroad in a foreign market, where the rate of exchange was completely different. Gold and silver coins were driven out of circulation several times by the money powers employing these tactics.
Such adjustments in foreign exchange are one of the international banker’s favorite mechanisms to redistribute the wealth of the Nations – the wealth of “We The People”. Often appearing to be surreal, in the fullness of its absurdity – it is, in reality, the very real life game the rulers of the universe live by; and suffer upon the people.
Perhaps this explains the oversight in our bimetallic exchange system, where the price of silver had been fixed as the standard, but the price of gold was allowed to float, providing the means for manipulation and redistribution. Perhaps this explains Jefferson’s “blot”. The evidence has been presented; justice will decide the verdict.
And this was only the beginning of their wealth transference scheme. More cards remained hidden, waiting to be played: the Federal Reserve Act of 1913; the 1922 Genoa Gold Exchange Accord; Roosevelt’s infamous Gold Reserve Act of 1934; the 1944 Bretton Woods Agreement that declared the U.S. Dollar to be the reserve currency of the world; the 1944 creation of the International Monetary Fund (IMF), the General Agreement on Tariff and Trade (GATT) and the World Bank (WB) – all to promote a new socialistic world order, by slowly but methodically eliminating gold from world finance; Nixon’s closing of the Gold Window in 1971, which basically amounted to a national declaration of bankruptcy from the United States; and many more acts too numerous to list.
In 1911 the following excerpt appeared in McClure’s Magazine:
“Seven men in Wall Street now control a great share of the fundamental industry and resources of the United States. Three of the seven men, J.P. Morgan, James J. Hill, and George F. Baker, head of the First National Bank of New York belong to the so-called Morgan group; four of them, John D. and William Rockefeller, James Stillman, head of the National City Bank, and Jacob H. Schiff of the private banking firm of Kuhn, Loeb Company, to the so-called Standard Oil City Bank group... the central machine of capital extends its control over the United States... The process is not only economically logical; it is now practically automatic.”