In 1861, President Abraham Lincoln traveled to New York and approached the big bankers to apply for loans to help finance the war effort. The bankers were willing to lend, but only at interest rates ranging as high as thirty-six percent. Lincoln declined and left New York discouraged–knowing that such terms amounted to de facto extortion and would eventually bankrupt the North. Lincoln asked a trusted colleague within his administration, Colonel Dick Taylor of Illinois, to research the matter and find a solution. Colonel Taylor came up with an ingenious plan:
“Just get Congress to pass a bill authorizing the printing of full legal tender treasury notes … and pay your soldiers with them and go ahead and win your war with them also. If you make them full legal tender … they will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution.”
From 1862 to 1865, Lincoln printed around $450 million of what he called “U.S. notes”–which became popularly known as “greenbacks.” Ellen Hodgson Brown writes:
Lincoln took Col. Taylor’s advice and funded the war by printing paper notes backed by the credit of the government. These legal-tender U.S. Notes or “Greenbacks” represented receipts for labor and goods delivered to the United States. They were paid to soldiers and suppliers and were tradeable for goods and services of a value equivalent to their service to the community. The Greenbacks aided the Union not only in winning the war but in funding a period of unprecedented economic expansion. Lincoln’s government created the greatest industrial giant the world had yet seen. The steel industry was launched, a continental railroad system was created, a new era of farm machinery and cheap tools was promoted, free higher education was established, government support was provided to all branches of science, the Bureau of Mines was organized, and labor productivity was increased by 50 to 75 percent. The Greenback was not the only currency used to fund these achievements; but they could not have been accomplished without it, and they could not have been accomplished on money borrowed at the usurious rates the bankers were attempting to extort from the North.
Lincoln was now able to pay his troops and purchase the necessary supplies to win the war using the new money–all created with no interest to the Federal government.
“The underlying idea in the greenback philosophy … is that the issue of currency is a function of the government, a sovereign right which ought not to be delegated to corporations.”
–1902, Dr. Davis Rich Dewey, Professor of Economics and Statistics, MIT
On April 14, 1865, 41 days after his second inauguration, and just five days after the end of the Civil War, Abraham Lincoln was assassinated at Ford’s Theater in Washington, D.C. by John Wilkes Booth. On Lincoln’s murder, German Chancellor Otto von Bismark lamented:
“The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it systematically to corrupt modern civilisation. They will not hesitate to plunge the whole of Christendom into wars and chaos in order that the earth should become their inheritance.”
Ten years later, Chancellor Otto von Bismarck would narrowly escape an assassination attempt on his life in 1875.
Shortly following Lincoln’s assassination, the powerful forces of the international banking cartels began to reassert themselves over America’s money. This was no easy task. Americans were becoming accustomed to debt-free currency–even singing the praises of the “greenback” in popular songs of the day.
In 1866, the Congress passed the Contraction Act, ordering the Secretary of the Treasury to begin retiring the greenbacks in circulation and to contract the money supply.
“The hard times which occurred after the Civil War could have been avoided if the Greenback legislation had continued as President Lincoln had intended. Instead, there were series of ‘money panics’–what we call ‘recessions’–which put pressure on Congress to enact legislation to place the banking system under centralized control.”
–The Truth in Money Book, 1980. p. 123-4
Within 20 years, following the Contraction Act, 84% of the money supply in the U.S. had been taken out of circulation. This is what leads to economic depressions–the intentional and deliberate contraction of the money supply by big bankers for their own nefarious and self-centered political purposes–the very reason King Henry of England employed the use of debt-free Tally Sticks as currency in 1100 AD.
The Crime of 1873
The big bankers in post-Civil War America were not done bringing misery and despair to the American people; they wanted to retire all silver money and implement a gold only monetary system. In 1872, the Bank of England sent English banker Ernest Seyd to America with 100,000 pounds (roughly $5 million in today’s money) to try and bribe the necessary Congressman in order to demonetize silver money and further contract the money supply. The Bank of England wanted control over America’s wealth and decided that a gold only money system would serve their interests well.
In 1873, the Congress passed the Coinage Act, which halted the minting of all silver coins. The press of the day derided the Coinage Act as the “Crime of ’73” and was wildly unpopular with the American people. The legislation greatly restricted economic activity in the States.
“It is advisable to do all in your power to sustain such prominent daily and weekly newspapers, especially the Agricultural and Religious Press, as will the oppose the greenback issue of paper money … To repeal the Act creating bank notes, or to restore to circulation the government issue of money will be to provide the people with money and will therefore seriously affect our individual profits as bankers and lenders … See your Congressman at once and engage him to support our interests that we may control legislation.”
–1877, letter by James Buel, Secretary of American Bankers’ Association
In 1880, James Garfield was elected president. He was well aware of how the money changers are able to manipulate the money supply and corner the market, since he was a former member of the Appropriations Committee. Following Garfield’s inauguration in 1881, he publicly excoriated the money changers:
“Whoever 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.”
–1881, President James Garfield
“Whoever controls the volume of money in our country is absolute master of all industry and commerce …”
Just a few days later, on January 2, 1881, Garfield was assassinated. Within a short time, the United States found itself in a deep depression.
The Federal Reserve Scam
In November 1910, Senator Nelson Aldridge sent his private railroad car to New Jersey in readiness for himself and the arrival of six other men. The whole affair was to be conducted with the utmost of secrecy. G. Edward Griffin, author of the compelling work The Creature from Jekyll Island, explains:
“… The year was 1910, that was three years before the Federal Reserve Act was finally passed into law. It was November of that year when Senator Nelson Aldrich sent his private railroad car to the railroad station in New Jersey and there it was in readiness for the arrival of himself and six other men who were told to come under conditions of great secrecy. For example, they were told to arrive one at a time and not to dine with each other on the night of their departure. They were told that should they arrive at the station at the same time they should pretend like they didn’t even know each other. They were instructed to avoid newspaper reporters at all cost because they were well-known people and had they been seen by a reporter they would’ve asked questions. Especially if two or three of them had been spotted together, this would’ve raised eyebrows and they would’ve asked a lot of questions. One of the men carried a shotgun in a big black case so that if he had been stopped and asked where he was going he was prepared to say that he was going on a duck hunting trip. The interesting thing about that part of the story is that we find out later from his biographer that this man never fired a gun in his life, in fact he borrowed that shotgun just to carry with him on this trip as part of the deception.
Once they got on board the private railroad car this pattern continued. They were told to use first names only, not to use their last names at all. A couple of the men even adopted code-names. The reason for that is so that the servants on board the train would not know who these people were. They were afraid that if the servants would talk about it then the word would leak out and it might get into the press. They traveled for two nights and a day on board this car and they arrived after a 1,000 mile journey to Brunswick, Georgia. From there they took a ferry across the inland straits and they ended up on Jekyll Island in the clubhouse where for the next nine days they sat around the table and hammered out all the important details of what eventually became the Federal Reserve System. When they were done they went back to New York.
For quite a few years thereafter these men denied that any such meeting took place. It wasn’t until after the Federal Reserve System was firmly established that they then began to talk openly about their journey and what they accomplished. Several of them wrote books on the topic, one of them wrote a magazine article and they gave interviews to newspaper reporters so now it’s possible to go into the public record and document quite clearly and in detail what happened there….”
The bill (Federal Reserve Act) to break the Money Trust (the cartel of big bankers) was conceived by the Money Trust, thus the secrecy! The following were in attendance at the secret meeting at the Jekyll Island clubhouse in 1910:
- Nelson Aldrich Rockefeller (U.S. senator and chairman of the National Monetary Commission)
- Abraham Andrew (Assistant Secretary of the Treasury)
- Frank Vanderlip (President of the National City Bank of New York)
- Henry Davison (Senior partner at J.P. Morgan Company)
- Charles Norton (President of the First National Bank of New York)
- Benjamin Strong (Head of J.P. Morgan’s Bankers’ Trust Company)
- Paul Wahrburg (Partner of Kuhn, Loeb & Company, representative of the Rothschild’s)
Between these seven powerful figures, they owned one quarter of all global wealth. The Federal Reserve (Banking Cartel) went into cooperation with the Federal government. As had been the custom of the money changers in America’s past, the Mandrake Mechanism (fractional reserve banking)–named after Mandrake the Magician–would once again be employed to create money out of thin air and straddle the American people with a debt-based economy.
The Mandrake Mechanism works like this: let’s say a customer deposits $100 into the bank. Since the law only requires that a bank keep 10% in reserve, the bank can turn around and loan out $900–another deposit which the bank can then charge interest on, even though this money does not technically exist. This goes on and on and on. If an average citizen tried to employ a scheme like this, they would be prosecuted for fraud.
G. Edward Griffin describes the Mandrake Mechanism in the following terms:
“Here’s how it works [Mandrake Mechanism]. It starts with the government side of the partnership, it starts in Congress which is spending money like crazy. It spends far more money than it takes in. It is spending way beyond its income. How can it do that? Basically this is what happens. Let’s say Congress needs an extra billion dollars today so it goes to the treasury and says “we want a billion dollars” and the treasury official says “you guys have got to be kidding, we don’t have any money here, you spent it all a long time ago, everything that we’ve taken in taxes you fellows have spent by March.” Congress says “we thought that was true but we thought we’d stop by just in case somebody sent some more in.” They get together and they go down the street and they get the idea that we’ll borrow the money. So they stop at the printing office and they don’t print money at the printing office, they print certificates and they’re very fancy things with borders on the edge with an eagle across the top and a seal at the bottom and it says “US Government Bond” or “Note” or “Bill” depending on the length of the maturity of it. If you hold it up to the light it really says “IOU” because that’s what it is. They print these things up and it looks very impressive and then they offer them to the private sector; they’re hoping that people will come up and loan money to the federal government and a lot of people do and are anxious to lend money to their government. Why? Because they’ve been told by their investment advisors that that’s the most sound investment that you can make. Why? We’ve all heard that these loans are backed by the full faith and credit of the US government. They’re not quite sure what that means but it sure sounds good. I’d like to explain for you who are in doubt what that means. The full faith and credit of the US government means that the government solemnly promises to pay back that loan plus interest if it has to take everything you and I have in the form of taxes in order to do it, it’s going to do it. It will take everything we have if necessary to hold its pledge. People don’t realize that they’re putting themselves on the line, they’re going to get their own money back minus a substantial handling fee.
Plenty of money is loaned to the government but never enough. Congress needs more money than that. They say not to worry. They go further down the street to the Federal Reserve building. The Fed has been waiting for them, that’s one of the reasons it was created. By the time they get inside the Federal Reserve building the officer of the Fed is opening his desk drawer. He knows they’re going to be there and he’s ready and he pulls out his checkbook and he writes a check to the US Treasury for one billion dollars or whatever the amount is that they need. He signs the check and gives it to the treasury official.
We need to stop here for a minute and ask a question. Where did they get a billion dollars to give to the treasury? who put that money into the account at the Federal Reserve System? The amazing answer is there is no money in the account at the Federal Reserve System. In fact, technically, there isn’t even an account, there is only a checkbook. That’s all. That billion dollars springs into being at precisely the instant the officer signs that check and that is called “monetizing the debt,” that’s the phrase they throw at you. That means they just wrote a check, a big rubber check. If you and I were to do that we would go to jail but they can do it because Congress wants them to do it. In fact, this is the payoff, this is the benefit to the government side of this partnership, this is how the government gets its instant access to any amount of money at any time without having to go to the taxpayer directly and justify it or ask for it. Otherwise, they would have to come to the taxpayer and say we’re going to raise your taxes another $3,000 this year and of course if they did that, they would be voted out of office real fast. They like the Mandrake Mechanism because it’s a no questions asked source of money. You may have noticed that it’s been many years since Congress has even discussed what anything costs, it’s not an issue. It doesn’t make any difference what the cost is because regardless of the overrun they know they can go down the street to the Federal Reserve and by law the officer has to write that big check and give it to them and they’re off and running….”
So, the private citizen is forced to pay interest on nothing, which leads to the weakening of the dollar, thereby creating inflation. Inflation is, in effect, a hidden tax–bankers collect the interest.
It’s important to reiterate that the Federal Reserve is a private corporation–the word “federal” is in name only, much like the Bank of England is a private corporation. The Fed works independently of the government. The important question here is who runs our government? The Fed or the people? Since our government is forced to borrow money from the Fed, it is logical to assume that our Federal government is beholden to the Fed and its interests.
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
–Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)
The famous free-market economist Milton Friedman clearly blamed the Federal Reserve’s actions for causing the Great Depression:
“The Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one-third from 1922 to 1933.”
–1996, Milton Friedman
Where’s the Gold?
Disturbingly, there has been no audit of the gold stored at Fort Knox in 53 years! One must question why the world’s biggest depository of gold would not conduct an annual audit of military-like precision every year, unless there is no gold at Fort Knox. Has the gold at Fort Knox been transferred to the Federal Reserve, or elsewhere? It is important to note that the Fed works closely with BIS, the World Bank, and the IMF. It is estimated that the IMF controls some 70% of the world’s gold. Since gold is scarce, it is the easiest commodity to control. More reasons to reconsider the thought of going to a strict gold standard.
Additionally, billions of dollars have been funneled from the Fed to the IMF (International Monetary Fund). It is a massive redistribution of our nation’s wealth, unlike anything our nation has ever seen.
There Are Solutions
We see how a gold only money system gives the advantage to those who control the gold–the ultra-rich. Silver is some 15 times more plentiful and would be a much better alternative than gold to back up a debt-free currency. But, as William Still has points out in his documentary the Secret of Oz, it really doesn’t matter what a currency ends up being (cf. King Henry’s tally stick currency, Rome’s “fiat money,” etc.). What is important is who controls its quantity. Remember, he who controls the money supply controls the money.
Still offers the solution, in my opinion: go back to a debt-free currency like Lincoln’s Greenback, repeal the Bank Act of 1864, and abolish the Federal Reserve system, thus putting currency back into the hands of the people. Some would point out that this could lead to hyper-inflation. But as William Still points out, this could be controlled by adjusting the bank’s reserve rate in proportion to the amount of new notes entering circulation, until eventually the banks would be required to keep 100% reserves on hand–ending the debt-based economy that is destroying the prosperity and future of our nation.
Without a doubt, the banking cartel behind the Federal Reserve would go apoplectic. Let them. Because, as far as this American is concerned, they can all rot in hell. The choice is ours: either the international bankers can rot in hell or the American people will.
“Gentlemen, I have had men watching you [big bankers] 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 true, gentlemen, 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.”
—President Andrew Jackson