Money Masters Transcripts Part 20


Now it was time for the Money Changers to get back a new, private central bank for America, the fifth private central bank to control and manipulate America's money supply.

A major final panic would be necessary to focus the nation's attention on the supposed need for a central bank. The thin rationale offered was that only a centl banl can prevent widespread bank failures and stabilize the currency. The critically important feature of who would own and control it was an issue carefully avoided.

Before the Civil War, the Rothschilds had previously used, as principal agents in the U.S., J.L and S.I Joseph & Company. Later

{p. 45} George Peabody, an American bond salesman, traveled to London before the Civil War and developed a relationship with Nathan Rothschild, which became a highly profitable one for Peabody. His business expanding, he took on an American partner, Junius Morgan, father of J.P.

In 1857 Junius was the recipient of a £800,000 loan from the Bank of England at a time of financial crisis when many other firms were denied such loans. Junius Morgan became the Union's financial agent in Britain, often closely associated with the Rothschilds.

In the post-Civil War period the connection between Morgan and the Rothschilds was certainly well known in financial circles. As one writer noted:

"Morgan's activities in 1895-1896 in selling U.S. gold bonds in Europe were based on his alliance with the House of Rothschild."

After his father's death, J.P. Morgan took on a British partner, Edward Grenfell, a long-time director of the Bank of England. There is speculation the Morgans became the Rothschilds' principal agents in the U.S., eventually to be eclipsed by the Rockefellers.

Early in this century, in U.S. finance, the press and in politics, all lines of power converged on the financial houses of J.P. Morgan (J.P. Morgan Company; Bankers Trust Company; First National Bank of New York, Guaranty Trust), the Rockefellers (National City Bank of New York; Chase National Bank; Chemical Bank); Kuhn, Loeb & Company (a representative of the Rothschild banks; National City Bank of New York) and the Warburg's (Manhattan Corp. bank).

Morgan was clearly the most powerful banker in America, and like his father, worked as an agent for the Rothschild family, but also for his own interests. He helped finance the monopolization of various industries, consolidated big steel holdings into a monopoly by buying Andrew Carnegie's steel companies, and owned numerous industrial companies and banks.

Interestingly, though reputedly America's richest banker, upon J.P.'s death, his estate contained $68 million dollars, only 19% of J.P. Morgan company. The bulk of the securities most people thought he owned, were in fact owned by others. When J.P. Morgan, Jr. (Jack) died in 1943 his estate was valued at only $16 million. By contrast, when Alphonse Rothschild died in 1905 his estate contained $60 million in U.S. securities alone.

John D. Rockefeller and his brother William used their enormous profits from the Standard Oil monopoly to dominate the National City Bank, merged in 1955 with Morgan's and Kuhn, Loeb & Company's First National Bank of New York, which resulted in Citibank (Citicorp).

Similarly, John D. bought control of Chase National Bank, and merged it with Warburg's Manhattan bank, resulting in the Rockefeller-dominated Chase Manhattan bank, recently merged with the Rockefeller-controlled Chemical Bank.

The combination of the Rockefeller-controlled Chase-Manhattan/Citicorp banks gives them majority control over the New York Fed

{p. 47} (52%), which completely dominates the Federal Reserve System. But the New York Fed was controlled by Rockefeller long before any majority ownership was reached.

By these mergers, the Rockefellers gradually replaced the Morgans, Schiffs and Warburgs as the principal Rothschild allies in the U.S.

Recent 1998 mega-bank mergers have further consolidated this monolithic control.

David Rockefeller, retired Chairman, was the point man for the Rockefellers in recent decades. One wag described the Rockefellers' seventy-five palatial Pocantico Hills residences (on over 4,000 acres) in New York as "the kind of place God would have built if he had had the money."

In Europe a similar consolidation resulted in two main banking dynasties - the Warburgs and the Rothschilds. But whereas the Morgans and the Rockefellers were relatively fierce competitors until the famous Northern Securities battle resulted in a sort of truce, the Warburgs have always been subordinate to the Rothschilds and have not seriously challenged them.

The relationship between the Rothschilds and Rockefellers was initially one of debtor/creditor, as the Rothschild's provided the seed money for J.D. Rockefeller to monopolize the U.S. oil refinery business and most oil rduron.

Subsequently, the relationship entered into measured competition here (local wars between subordinates sometimes resulting) and cooperation there, but like the competition between the other banks, this too has resolved into a power sharing arrangement.

The centers of power are not easy to identify and remain to a large extent hidden through carefully concealed and interlocking directorships, off-shore accounts, nominee holdings, private foundations, trusts and the rest. But the top international bankers are vested with the last word in economic and political power.

Most commentators are of the opinion that the Rothschilds are definitely the dominant partner; citing for example, the 1950's appointrnent of J. Richardson Dilworth, partner of Kuhn, Loeb & Co. (a satellite of the Rothschild family) who left to take control of the Rockefeller family purse strings, where he managed the investments of Rockefeller descendants in as many as 200 private foundations.

However, the operative relationship described by Georgetown historian Carroll Quigley is "feudalistic", that is, analogous to the relationships between a feudal king and the aristocracy consisting of dukes, earls, barons, etc., all mutually supportive, while safeguarding their own turf and "independence", expanding it when permitted without violating the fundamental hierarchical relationships - violations can result in wars.

Lesser members of this "feudalistic" international banking plutocracy include or have included, the Sassoon's (in India and the Far East); Lazard Freres Fance; Mendelsohn (Netherlands); Israel Moses Seif (Italy); Kuhn, Loeb (U.S.); Goldman Sachs (U.S.) Lehman Bros. (U.S.); Schroeders (Germany) ; Hambros (Scandinavia), the Bethmanns, Ladenburgs, Erlangers, Sterns, Seligmans, Schiffs, Speyers, Abs, Mirabauds, Mallets, Faulds, and many others.

{p. 48} The ruling clique in most nations now, excepting a portion ofthe Muslim world and a few so called "rogue" states, are equivalent to local barons, subservient to the higher banking dukes, earls, etc.

This generally reaches right down to the city level, where the dominant local bankers are usually the petty aristocracy, affiliated through banking and commercial relationships with their banking "barons" and so on.

As Georgetown historian Professor Carroll Quigley has noted, if it were possible to detail the asset portfolios of the banking plutocrats one would find the title-deeds of practically all the buildings, industries, farms, transport systems and mineral resources of the world. Accounting for this, Quigley wrote:

"Their secret is that they have annexed from governments, monarchies, and republics the power to create the world 's money on debt-terms requiring tribute both in principal and interest."

Unfortunately, rather than benevolent rulers, this international banking plutocracy has taken the Malthusian position that the world is overpopulated with serfs, and, at the highest levels, they are deadly serious about correcting this "threat" and "imbalance", whatever the cost in human misery and suffering.

To return to 1902: President Theodore Roosevelt allegedly went after Morgan and his friends by using the Sherman Anti-Trust Act to try to break up their industrial monopolies. Actually, Roosevelt did very little to interfere in the growing monopolization of American industry by the bankers and their surrogates.

For example, Roosevelt supposedly broke up the Standard Oil monopoly. But it wasn't really broken up at all. It was merely divided into seven corporations, all still controlled by the Rockefellers, who had been originally financed by the Rothschild-controlled National City Bank of Cleveland. The public was aware of this thanks to political cartoonists like Thomas Nast who referred to the bankers as the "Money Trust."

By 1907, the year after Teddy Roosevelt's re-election, Morgan decided it was time to try for a central bank again. Using their combined financial muscle, Morgan and his friends were able to crash the stock market.

Thousands of small banks were vastly overextended. Some of Morgan's principal competitors went under. Some had reserves of less than one percent (1%), thanks to the fractional reserve banking technique.

Within days, runs on banks were commonplace across the nation. Now Morgan stepped into the public arena and offered to prop up the faltering American economy by supporting failing banks with money he generously offered to create out of nothing.

It was an outrageous proposal, worse than even fractional reserve banking, but, in a panic, Congress let him do it. Morgan manufactured $200 million worth of this completely reserveless, private money - and bought things with it, paid for services with it, and sent some of it to his branch banks to lend out at interest.

His plan worked. Soon, the public regained confidence in money in general and quit hoarding their currency. But in the interim, many small banks failed and banking power was further consolidated into the hands of a

{p. 49} few large banks. By 1908 the arranged panic was over and Morgan was hailed as a hero by the president of Princeton University, a naive man by the name of Woodrow Wilson, who naively wrote:

"All this trouble could be averted if we appointed a committee of six or seven public-spirited men like J.P. Morgan to handle the affairs of our country."

Economic textbooks would later explain that the creation of the Federal Reserve System was the direct result of the panic of 1907, quote: "with its alarming epidemic of bank failures: the country was fed up once and for all with the anarchy of unstable private banking."

But Minnesota Congressman Charles A. Lindbergh, Sr., the father of the famous aviator, "Lucky Lindy," later explained that the Panic of 1907 was really just a scam:

"The Money Trust caused the 1907 panic… those not favorable to the Money Trust could be squeezed out of business and the people frightened into demanding changes in the banking and currency laws which the Money Trust would frame."

Since the passage of the National Banking Act of 1863, the National Banks that Act established as a cartel, had been able to coordinate a series of booms and busts. The purpose was not only to fleece the American public of their property, but later to claim that the decentralized banking system was basically so unstable that it had to be further consolidated and control centralized into a central bank once again, as it had been before Jackson ended it.

The supremely critical economic issue of private vs state ownership and control was carefully skirted, as was the fractional reserve banking fraud causing the booms and busts.

Acknowledgement and credits

The Money Masters: How International Bankers Gained Control of America

Video Script
Produced by Patrick S. J. Carmack
Directed by Bill Still
Royalty Production Company 1998

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