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THEHISTORYOFMONEYPART2

The19thcenturybecameknownastheageoftheRothschild's
whenitwasestimatedtheycontrolledhalfoftheworld'swealth.
Whiletheirwealthcontinuestoincreasetoday,theyhave
managedtoblendintothebackground,givinganimpression
thattheirpowerhaswaned.TheyonlyapplytheRothschild
nametoasmallfractionofthecompaniestheyactuallycontrol.
SomeauthorsclaimthattheRothschild'shadnotonlytaken
overtheBankofEnglandbuttheyhadalsoin1816backeda
newprivatelyownedCentralBankinAmericacalledThe
SecondBankofTheUnitedStates,causinghugeproblemstothe
Americanpresident.
ANDREWJACKSON(18281836)
WhentheAmericancongressvotedtorenewthecharterofThe
SecondBankofTheUnitedStates,Jacksonrespondedbyusing
hisvetotopreventtherenewalbillfrompassing.Hisresponse
givesusaninterestinginsight."Itisnotourowncitizensonly
whoaretoreceivethebountyofourgovernment.Morethan
eightmillionsofthestockofthisbankareheldbyforeigners...is
therenodangertoourlibertyandindependenceinabankthat
initsnaturehassolittletobindittoourcountry?...
Controllingourcurrency,receivingourpublicmoneys,and
holdingthousandsofourcitizensindependence...wouldbe
moreformidableanddangerousthanamilitarypowerofthe
enemy.Ifgovernmentwouldconfineitselftoequalprotection,
and,asHeavendoesitsrains,showeritsfavouralikeonthehigh
andthelow,therichandthepoor,itwouldbeanunqualified
blessing.Intheactbeforemethereseemstobeawideand
unnecessarydeparturefromthesejustprinciples."
AndrewJackson1In1832Jacksonorderedthewithdrawalof

governmentdepositsfromtheSecondbankandinsteadhad
themputintosafebanks.TheSecondBankshead,Nicholas
Biddlewasquitecandidaboutthepowerandintentionofthe
bankwhenheopenlythreatenedtocauseadepressionifthe
bankwasnotrechartered,wequote."Nothingbutwidespread
sufferingwillproduceanyeffectonCongress...Ouronlysafety
isinpursuingasteadycourseoffirmrestrictionandIhaveno
doubtthatsuchacoursewillultimatelyleadtorestorationof
thecurrencyandtherecharterofthebank."
NicholasBiddle1836Bycallinginexistingloansandrefusingto
issuenewloanshedidcauseamassivedepression,butin1836
whenthecharterranout,theSecondBankceasedtofunction.It
wasthenhemadethesetwofamousstatements:"TheBankis
tryingtokillmebutIwillkillit!"andlater"IftheAmerican
peopleonlyunderstoodtherankinjusticeofourmoneyand
bankingsystemtherewouldbearevolutionbeforemorning..."
AndrewJacksonWhenaskedwhathefeltwasthegreatest
achievementofhiscareerAndrewJacksonrepliedwithout
hesitation"Ikilledthebank!"Howeverwewillseethiswasnot
theendofprivatefinancialinfluencepassingitselfoffasofficial
whenwelookat...
1.AndrewJackson,VetooftheBankBill,totheSenate,(1832)

ABRAHAMLINCOLNANDTHECIVILWAR(18611865)
WiththeCentralBankkilledoff,fractionalreservebanking
movedlikeavirusthroughnumerousstatecharteredbanks
insteadcausingtheinstabilitythisformofeconomicsthriveson.
Whenpeoplelosetheirhomessomeoneelsewinsthemfora
fractionoftheirworth.Depressionisgoodnewstothelender
butwarcausesevenmoredebtanddependencythananything
else,soifthemoneychangerscouldn'thavetheirCentralBank
withalicensetoprintmoney,awaritwouldhavetobe.Wecan
seefromthisquoteofthethenchancellorofGermanythat
slaverywasnottheonlycausefortheAmericanCivilWar.
"ThedivisionoftheUnitedStatesintofederationsofequalforce
wasdecidedlongbeforetheCivilWarbythehighfinancial
powersofEurope.ThesebankerswereafraidthattheUS,if
theyremainedasoneblock,andasonenation,wouldattain
economicandfinancialindependence,whichwouldupsettheir
financialdominationovertheworld."

OttovonBismarkchancellorofGermany1876Onthe12thof
April1861thiseconomicwarbegan.PredictablyLincoln,
needingmoneytofinancehiswareffort,wentwithhissecretary
ofthetreasurytoNewYorktoapplyforthenecessaryloans.
ThemoneychangerswishingtheUniontofailofferedloansat
24%to36%.Lincolndeclinedtheoffer.Anoldfriendof
Lincoln's,ColonelDickTaylorofChicagowasputinchargeof
solvingtheproblemofhowtofinancethewar.Hissolutionis
recordedasthis."JustgetCongresstopassabillauthorising
theprintingoffulllegaltendertreasurynotes...andpayyour
soldierswiththemandgoaheadandwinyourwarwiththem
also."
ColonelDickTaylorWhenLincolnaskedifthepeopleof
AmericawouldacceptthenotesTaylorsaid."Thepeopleor
anyoneelsewillnothaveanychoiceinthematter,ifyoumake
themfulllegaltender.Theywillhavethefullsanctionofthe
governmentandbejustasgoodasanymoneyasCongressis
giventhatexpressrightbytheConstitution."
ColonelDickTaylor1Lincolnagreedtotrythissolutionand
printed450milliondollarsworthofthenewbillsusinggreen
inkonthebacktodistinguishthemfromothernotes."The
governmentshouldcreate,issueandcirculateallthecurrency
andcreditneededtosatisfythespendingpowerofthe
governmentandthebuyingpowerofconsumers.....The
privilegeofcreatingandissuingmoneyisnotonlythesupreme
prerogativeofGovernment,butitistheGovernment'sgreatest
creativeopportunity.Bytheadoptionoftheseprinciples,the
longfeltwantforauniformmediumwillbesatisfied.The
taxpayerswillbesavedimmensesumsofinterest,discountsand
exchanges.Thefinancingofallpublicenterprises,the
maintenanceofstablegovernmentandorderedprogress,and
theconductoftheTreasurywillbecomemattersofpractical
administration.Thepeoplecanandwillbefurnishedwitha
currencyassafeastheirowngovernment.Moneywillceaseto
bethemasterandbecometheservantofhumanity.Democracy
willrisesuperiortothemoneypower."
AbrahamLincoln2Fromthisweseethatthesolutionworkedso
wellLincolnwasseriouslyconsideringadoptingthisemergency
measureasapermanentpolicy.Thiswouldhavebeengreatfor
everyoneexceptthemoneychangerswhoquicklyrealisedhow
dangerousthispolicywouldbeforthem.Theywastednotimein
expressingtheirviewintheLondonTimes.Oddlyenough,while
thearticleseemstohavebeendesignedtodiscouragethis
creativefinancialpolicy,initsputdownwe'reclearlyabletosee
thepoliciesgoodness."Ifthismischievousfinancialpolicy,

whichhasitsorigininNorthAmerica,shallbecomeendurated
downtoafixture,thenthatGovernmentwillfurnishitsown
moneywithoutcost.Itwillpayoffdebtsandbewithoutdebt.It
willhaveallthemoneynecessarytocarryonitscommerce.It
willbecomeprosperouswithoutprecedentinthehistoryofthe
world.Thebrains,andwealthofallcountrieswillgotoNorth
America.Thatcountrymustbedestroyedoritwilldestroy
everymonarchyontheglobe."
HazardCircularLondonTimes1865Fromthisextractitsplan
toseethatitistheadvantageprovidedbytheadoptingofthis
policywhichposesathreattothosenotusingit.1863,nearly
there,Lincolnneededjustabitmoremoneytowinthewar,and
seeinghiminthisvulnerablestate,andknowingthatthe
presidentcouldnotgetthecongressionalauthoritytoissuemore
greenbacks,themoneychangersproposedthepassingofthe
NationalBankAct.Theactwentthrough.Fromthispointon
theentireUSmoneysupplywouldbecreatedoutofdebtby
bankersbuyingUSgovernmentbondsandissuingthemfrom
reservesforbanknotes.Thegreenbackscontinuedtobein
circulationuntil1994,theirnumberswerenotincreasedbutin
factdecreased."Innumerousyearsfollowingthewar,the
FederalGovernmentranaheavysurplus.Itcouldnot(however)
payoffitsdebt,retireitssecurities,becausetodosomeantthere
wouldbenobondstobackthenationalbanknotes.Topayoff
thedebtwastodestroythemoneysupply."
JohnKennethGalbrathTheAmericaneconomyhasbeenbased
ongovernmentdebtsince1864anditislockedintothissystem.
Talkofpayingoffthedebtwithoutfirstreformingthebanking
systemisjusttalkandacompleteimpossibility.Thatsameyear
Lincolnhadapleasantsurprise.TurnsouttheTsarofRussia,
AlexanderII,waswellawareofthemoneychangersscam.The
Tsarwasrefusingtoallowthemtosetupacentralbankin
Russia.IfLincolncouldlimitthepowerofthemoneychangers
andwinthewar,thebankerswouldnotbeabletosplitAmerica
andhanditbacktoBritainandFranceasplanned.TheTsar
knewthatthishandingbackwouldcomeatacostwhichwould
eventuallyneedtobepaidbackbyattackingRussia,itbeing
clearlyinthemoneychangerssights.TheTsardeclaredthatif
FranceorBritaingavehelptotheSouth,Russiawouldconsider
thisanactofwar.BritainandFrancewouldinsteadwaitinvain
tohavethewealthofthecoloniesreturnedtothem,andwhile
theywaitedLincolnwonthecivilwar.Withanelectioncoming
upthenextyear,Lincolnhimselfwouldwaitforrenewedpublic
supportbeforereversingtheNationalBankActhehadbeen
pressuredintoapprovingduringthewar.Lincoln'sopposition
tothecentralbanksfinancialcontrolandaproposedreturnto
thegoldstandardiswelldocumented.Hewouldcertainlyhave

killedoffthenationalbanksmonopolyhadhenotbeenkilled
himselfonly41daysafterbeingreelected.Themoneychangers
werepressingforagoldstandardbecausegoldwasscarceand
easiertohaveamonopolyover.Muchofthiswasalready
waitingintheirhandsandeachgoldmerchantwaswellaware
thatwhattheyreallyhadcouldbeeasilymadetoseemlike
muchmuchmore.Silverwouldonlywidenthefieldandlower
thesharesotheypressedfor...
1.LincolnByEmilLudwig1930,containingaletterfromLincoln,also
reprintedinGlorytoGodandtheSuckerDemocracyAManuscriptCollection
oftheLettersofCharlesH.LanphiercompiledbyCharlesC.Patton.
2.AbrahamLincoln.Senatedocument23,Page91.1865.

THERETURNOFTHEGOLDSTANDARD(18661881)
"RightaftertheCivilWartherewasconsiderabletalkabout
revivingLincoln'sbriefexperimentwiththeConstitutional
monetarysystem.HadnottheEuropeanmoneytrust
intervened,itwouldhavenodoubtbecomeanestablished
institution."
W.CleonSkousen.Evenafterhisdeath,theideathatAmerica
mightprintitsowndebtfreemoneysetoffwarningbells
throughouttheentireEuropeanbankingcommunity.OnApril
12thin1866,theAmericancongresspassedtheContractionAct,
allowingthetreasurytocallinandretiresomeofLincoln's
greenbacks,Withonlythebanksstandingtogainfromthis,it's
nothardtoworkoutthesourceofthisaction.Togivethe
Americanpublicthefalseimpressionthattheywouldbebetter
offunderthegoldstandard,themoneychangersusedthe
controltheyhadtocauseeconomicinstabilityandpanicthe
people.Thiswasfairlyeasytodobycallinginexistingloansand
refusingtoissuenewones,atriedandprovenmethodofcausing
depression.Theywouldthenspreadthewordthroughthemedia
theylargelycontrolledthatthelackofasinglegoldstandard
wasthecauseofthehardshipwhichensued,whileallthistime
usingtheContractionActtolowertheamountofmoneyin
circulation.
Itwentfrom$1.8billionincirculationin1866allowing$50.46
perperson,to$1.3billionin1867allowing$44.00perperson,to
$0.6billionin1876makingonly$14.60perpersonanddownto
$0.4billiononlytenyearslaterleavingonly$6.67perperson
andacontinuallygrowingpopulation.
Mostpeoplebelievetheeconomistswhentheytellusthat
recessionsanddepressionsarepartofthenaturalflow,butin

truththemoneysupplyiscontrolledbyasmallminoritywho
havealwaysdonesoandwillcontinuetodosoifweletthem.By
1872theAmericanpublicwasbeginningtofeelthesqueeze,so
theBankofEngland,scheminginthebackrooms,sentErnest
Seyd,withlotsofmoneytobribecongressintodemonetising
silver.Ernestdraftedthelegislationhimself,whichcameinto
lawwiththepassingoftheCoinageAct,effectivelystoppingthe
mintingofsilverthatyear.Here'swhathesaidabouthistrip,
obviouslypleasedwithhimself."IwenttoAmericainthewinter
of187273,authorisedtosecure,ifIcould,thepassageofabill
demonetisingsilver.ItwasintheinterestofthoseIrepresented
thegovernorsoftheBankofEnglandtohaveitdone.By1873,
goldcoinsweretheonlyformofcoinmoney."
ErnestSeydOrasexplainedbySenatorDanielofVirginia"In
1872silverbeingdemonetizedinGermany,England,and
Holland,acapitalof100,000pounds($500,000.00)wasraised,
ErnestSeydwassenttothiscountrywiththisfundasagentfor
foreignbondholderstoeffectthesameobject(demonetization
ofsilver)".1
Withinthreeyears,with30%oftheworkforceunemployed,the
Americanpeoplebegantoharkenbacktothedaysofsilver
backedmoneyandthegreenbacks.TheUSSilverCommission
wassetuptostudytheproblemandrespondedwithtelling
history:"ThedisasteroftheDarkAgeswascausedby
decreasingmoneyandfallingprices...Withoutmoney,
civilisationcouldnothavehadabeginning,andwitha
diminishingsupply,itmustlanguishandunlessrelieved,finally
perish.AttheChristianerathemetallicmoneyoftheRoman
Empireamountedto$1,800,million.Bytheendofthefifteenth
centuryithadshrunktolessthan$200,million.Historyrecords
noothersuchdisastroustransitionasthatfromtheRoman
EmpiretotheDarkAges..."
UnitedStatesSilverCommissionWhiletheyobviouslycouldsee
theproblemsbeingcausedbytherestrictedmoneysupply,this
declarationdidlittletohelptheproblem,andin1877riots
brokeoutalloverthecountry.Thebank'sresponsewastodo
nothingexcepttocampaignagainsttheideathatgreenbacks
shouldbereissued.TheAmericanBankersAssociation
secretaryJamesBuelexpressedthebankersattitudewellina
lettertofellowmembersoftheassociation.
Hewrote:"Itisadvisabletodoallinyourpowertosustainsuch
prominentdailyandweeklynewspapers,especiallythe
AgriculturalandReligiousPress,aswillopposethegreenback
issueofpapermoneyandthatyouwillalsowithholdpatronage
fromallapplicantswhoarenotwillingtoopposethe

governmentissueofmoney.TorepealtheActcreatingbank
notes,ortorestoretocirculationthegovernmentissueofmoney
willbetoprovidethepeoplewithmoneyandwilltherefore
seriouslyaffectourindividualprofitsasbankersandlenders.
Seeyourcongressmanatonceandengagehimtosupportour
interestthatwemaycontrollegislation."
JamesBuelAmericanBankersAssociation2Whatthis
statementexposesisthedifferenceinmentalitybetweenyour
averagepersonandabanker.Withabanker'lessreallyismore'
andeveryneedanopportunitytoexploit.JamesGarfield
becamePresidentin1881withafirmgraspofwherethe
problemlay."Whosoevercontrolsthevolumeofmoneyinany
countryisabsolutemasterofallindustryandcommerce...And
whenyourealisethattheentiresystemisveryeasilycontrolled,
onewayoranother,byafewpowerfulmenatthetop,youwill
nothavetobetoldhowperiodsofinflationanddepression
originate."
JamesGarfield1881Withinweeksofreleasingthisstatement
PresidentGarfieldwasassassinated.Thecryfromthestreets
wasto...
1.SenatorDanielofVirginia,May22,1890,fromaspeechinCongress,tobe
foundintheCongressionalRecord,page5128,quotingfromtheBankers
MagazineofAugust,1873
2.fromacircularissuedbyauthorityoftheAssociatedBankersofNewYork,
Philadelphia,andBostonsignedbyoneJamesBuel,secretary,sentoutfrom
247Broadway,NewYorkin1877,tothebankersinalloftheStates

FREESILVER(18911912)
Fleecingoftheflockisthetermthemoneychangersuseforthe
processofboomsanddepressionswhichmakeitpossiblefor
themtorepossesspropertyatafractionofitsworth.In1891a
majorfleecewasbeingplanned."OnSept1st,1894,wewillnot
renewourloansunderanyconsideration.OnSept1stwewill
demandourmoney.Wewillforecloseandbecomemortgagees
inpossession.Wecantaketwothirdsofthefarmswestofthe
Mississippi,andthousandsofthemeastoftheMississippias
well,atourownprice...Thenthefarmerswillbecometenantsas
inEngland..."
1891AmericanBankersAssociationasprintedinthe
CongressionalRecordofApril29,1913Thecontinuedgold
standardmadethispossible.WilliamJenningsBryanwasthe
Democraticcandidateforpresidentin1896,campaigningto
bringsilverbackasamoneystandard.(freeSilver)"Wewill

answertheirdemandforagoldstandardbysayingtothem:
Youshallnotpressdownuponthebrowoflabourthiscrownof
thorns,youshallnotcrucifymankinduponacrossofgold."
WilliamJenningsBryanOfcoursethemoneychangers
supportedhisoppositionontheRepublicansidesolongashe
wantedthegoldstandardmaintained.Thefactorybosseswere
somehowconvincedtotelltheirworkforcethatbusinesswould
closedownifBryanwaselected,andeveryonewouldlosetheir
jobs.TheRepublicanswonbyasmallmargin.Bryantriedagain
in1900andin1908butlostbothtimes.Hebecamesecretaryof
stateunderWilsonin1912butbecamedisenchantedand
resignedin1915undersuspiciouscircumstancesconnectedwith
thesinkingoftheLusitaniawhichdroveAmericaintotheFirst
WorldWar.
J.P.MORGANANDTHECRASHOF1907
Ifyouwanttoworkoutthecauseofthecrashof1907,checking
whobenefitediswhereyoumightliketolookfirst.Withthe
stockmarketslumpcausingmostoftheoverextendedbanksto
falter,instepsJ.P.Morganofferingtosavetheday.Peoplewill
dostrangethingswheninapanic,andthismightexplainwhy
Morganwasauthorisedtoprint$200millionfromnothing,
whichhethenusedtopropthingsup.Someofthetroubled
bankswithlessthan1%inreservehadnochoice.Itwasaccept
thissolutionorgounder.Eveniftheyhadworkedoutthattheir
problemshadbeencausedbythesamepeoplenowofferingthe
solution,thereisnotalottheycouldhavedoneaboutit.
J.P.Morganwashailedahero."Allthistroublecouldbeaverted
ifweappointedacommitteeofsixorsevenmenlikeJ.P.Morgan
tohandletheaffairsofourcountry."
WoodrowWilsonButnoteveryonewasfooled."Thosenot
favourabletothemoneytrustcouldbesqueezedoutofbusiness
andthepeoplefrightenedintodemandingchangesinthe
bankingandcurrencylawswhichtheMoneyTrustwould
frame."
Rep.CharlesA.Lindbergh(RMN)Apartfrommakingasmall
numberrichattheexpenseofthemany,inthiscasethe
instabilityalsoservedthesecondpurposeofencouragingthe
publictobelievethattheywouldbebetterofflivingundera
CentralBankandaGoldStandard.Desperatepeoplehavelittle
timeforlogic.
LINCOLNWATCHES

InWashingtonthestatueofLincolnsittinginhischairisfacing
abuildingcalledtheFederalReserveHeadquarters.This
institutionwouldnotbethereifLincoln'smonetarypolicyhad
beenadoptedbytheUSA.ItisnotFederalandithasdoubtful
reserves.Thenameisanopendeceptiondesignedtogivethis
privatebanktheappearancethatitisoperatinginthepublic's
interest,wheninfactitisrunsolelytogainprivateprofitforits
selectstockholders.Itcameintobeingastheresultofoneofthe
slickestmovesinfinancialhistory.On23rdDecember1913the
houseofrepresentativeshadpasttheFederalReserveAct,butit
wasstillhavingdifficultygettingitoutofthesenate.Most
membersofcongresshadgonehomefortheholidays,but
unfortunatelythesenatehadnotadjournedsenedie(without
day)sotheyweretechnicallystillinsession.Therewereonly
threemembersstillpresent.Onaunanimousconsentvoicevote
the1913FederalReserveActwaspassed.Noobjectionwas
made,possiblybecausetherewasnoonetheretoobject.Charles
Lindberghwouldhaveobjected."Thefinancialsystemhasbeen
turnedoverto...thefederalreserveboard.Thatboard
administersthefinancesystembyauthorityof...apurely
profiteeringgroup.Thesystemisprivate,conductedforthesole
purposeofobtainingthegreatestpossibleprofitsfromtheuseof
otherpeoplesmoney."
RepCharlesA,Lindbergh(RMN)LouisT.McFaddenwould
haveobjected."Wehaveinthiscountryoneofthemostcorrupt
institutionstheworldhaseverknown.IrefertotheFederal
ReserveBoard...Thisevilinstitutionhasimpoverished...the
peopleoftheUnitedStates...andhaspracticallybankruptedour
Government.Ithasdonethisthrough...thecorruptpracticeof
themoneyedvultureswhocontrolit."
Rep.LouisT,McFadden(RPA)BarryGoldwaterwouldalso
haveobjected."MostAmericanshavenorealunderstandingof
theoperationoftheinternationalmoneylenders...Theaccounts
oftheFederalReserveSystemhaveneverbeenaudited.It
operatesoutsidethecontrolofCongressand...manipulatesthe
creditoftheUnitedStates."
Sen.BarryGoldwater(RAZ)MostAmericanswouldobjectif
theyknew.TheFederalReserveisthelargestsinglecreditorof
theUnitedStatesGovernment,andtheyarealsothepeoplewho
decidehowmuchtheaveragepersonscarpaymentsaregoingto
be,whattheirhousepaymentsaregoingtobe,andwhetherthey
haveajobornot.ThethreepeoplewhopassedtheFederal
ReserveActin1913,knewexactlywhattheyweredoingwhen
theysetupthisprivatebank,modelledontheBankofEngland

andthefactthatTHEBANKOFENGLANDhadbeen
operatingindependentlyunopposedsince1694musthavegiven
themagreatdealofconfidence.
WHERETHERE'SWARTHERE'SMONEY
Warusesupmorematerialsmorequicklythanmostanything
elseonearth.Inwarexpensiveequipmentdoesn'twearout
slowly,itgetsblownup.(It'sinterestingtonotethatduringthe
119yearperiodfromthefoundingoftheBankofEnglandto
Napoleon'sdefeatatWaterloo,Englandhadbeenatwarfor56
years,whiletherestofthetimepreparingforit.Intheprocess
themoneychangershadbeengettingrich.)Sothereitwas,the
newlyformedFederalReservepoisedtoproduceanymoneythe
U.S.Governmentmightneedfromthinairwitheachdollar
standingtomakeahealthyinterest.Ninedaysafterits
formationtheFederalReservefounderswerewishingeach
otheraHappyNewYear.Whatgoodfortunemight1914bring?

THEHISTORYOFMONEYPART3
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