CHAPTER 2: SOVIET RUSSIA
Monopoly capitalist support for the Bolsheviks
Monopoly capitalist support for the Bolsheviks
American International Corporation
Financing the Revolution
Rockefeller Support for the Bolsheviks
Before, During and After World War II
The Present Danger
Financing the Revolution
Rockefeller Support for the Bolsheviks
Before, During and After World War II
The Present Danger
Soviet Russia was allowed to emerge from the destruction of World War II as one of the victors, solely because she was needed as the next “evil empire” against which the civilized West could launch a new Crusade. Because Russia was bankrupt, had lost 40 million of her population in the war, plus another 66 million murdered by the Bolsheviki since 1917, and was unable to feed herself, once again the World Order was obliged to step in with enormous subsidies of food and material from the U.S., in order to maintain an “enemy power”. The Belgian Relief Commission of 1916 became the Marshall Plan of 1948. Once again, the loads of supplies were shipped into Europe, ostensibly for our Allies, but destined to maintain the Soviet bloc.
Although Jacob Schiff’s personal agent, George Kennan, had regularly toured Russia during the latter part of the nineteenth century, bringing in money and arms for the Communist revolutionaries (his grandson said that Schiff had spent $20 million to bring about the Bolshevik Revolution) more concerted aid was called for to support an entire regime. Kennan also aided Schiff in financing the Japanese in the Russo-Japanese War of 1905; the Japanese decorated Kennan with the Gold War Medal and the Order of the Sacred Treasure.
In 1915, the American International Corporation was formed in New York. Its principal goal was the coordination of aid, particularly financial assistance, to the Bolsheviks which had previously been provided by Schiff and other bankers on an informal basis. The new firm was funded by J.P. Morgan, the Rockefellers, and the National City Bank. Chairman of the Board was Frank Vanderlip, former president of National City, and member of the Jekyll Island group which wrote the Federal Reserve Act in 1910; directors were
- Pierre DuPont,
- Otto Kahn of Kuhn, Loeb Co.,
- George Herbert Walker, grandfather of Vice President George H. Bush,
- William Woodward, director of the Federal Reserve Bank of New York;
- Robert S. Lovett, righthand man of the Harriman-Kuhn, Loeb Union Pacific Railroad;
- Percy Rockefeller,
- John DiRyan,
- J.A. Stillman, son of James Stillman principal organizer of the National City Bank; A.H. Wiggin, and
- Beekman Winthrop.
In their program of aiding the Communists, AIC worked closely with Guaranty Trust of New York (now Morgan Guaranty Trust). Guaranty Trust’s directors in 1903 included
- George F. Baker, founder of the First National Bank;
- August Belmont, representative of the Rothschilds;
- E.H. Harriman, founder of Union Pacific Railroad; former vice president of the U.S.,
- Levi Morton, who was a director of U.S. Steel and the Union Pacific;
- Henry H. Rogers, partner of John D. Rockefeller in Standard Oil, also a director of Union Pacific;
- H. McK. Twombly, who married the daughter of William Vanderbilt, and was now the director of fifty banks and industries;
- Frederick W. Vanderbilt, and
- Harry Payne Whitney.
“There is moreover a voice calling for these definitions of principles and purposes which is, it seems to me, more thrilling and more compelling than any of the moving voices with which the troubled air of the world is filled. It is the voice of the Russian people. There are men in the United States of the finest temper who are in sympathy with Bolshevism because it appears to them to offer that regime of opportunity to the individual which they desire to bring about.”Lenin's Program
(Woodrow Wilson, quoted in The Great Conspiracy Against Russia, Seghers and Kahn.)
The men of “the finest temper”, to whom Wilson referred, the Morgans and the Rockefellers, did not really desire opportunity for the individual; what they desired was the lifelong imposition of slavery under the World Order, and this is the goal which they continue to strive to achieve, on a world wide basis.
These Americans “of the finest temper” chose Lenin to do their work because he had outlined the plan they wanted in “The Threatening Catastrophe” in September, 1917,
“1. nationalisation of the banks. Ownership of capital which is manipulated by the banks is not lost or changed when the banks are nationalised and fused into one state bank, so that it is possible to reach a stage where the state knows whither and how, from where and at what time millions and billions are flowing. Only control over bank operations providing they are merged into one state bank will allow, simultaneously with other measures which can easily be put into effect the actual levying of income tax without concealment of property and income.It was the publication of this program which catapulted Lenin into the leadership of Russia via the Bolshevik Revolution. In 1917, Frank Vanderlip publicly referred to Lenin as “the modern version of George Washington.”
The state for the first time would be in a position to survey all the monetary operations, then to control them, then to regulate economic life. FINALLY, to obtain millions and billions for large state operations, without paying the capitalist gentlemen skyhigh commissions for their services. It would facilitate the nationalisation of syndicates, abolition of commercial secrets, the nationalisation of the insurance business, facilitate the control of and the compulsory organization of labor into unions, and the regulation of consumption.
The nationalisation of banks would make circulation of checks compulsory by law for all the rich, and introduce the confiscation of property for concealing incomes. The five points of the desired program then, are nationalisation of the banks, nationalisation of the syndicates, the abolition of commercial secrets, and the compulsory organization of the population into consumer associations.”
The Lenin program is not only the program of Soviet Russia – it is the program of Roosevelt’s New Deal, Truman’s Socialism, the postwar Labor Government in England, and the guiding principle of subsequent American Administrations. The Labor Government of England proved Lenin’s dictum that the ownership of capital is not affected by the nationalisation of the banks, when they nationalised the Bank of England. The Lenin program is the entire program of the U.S. Internal Revenue Service, “the actual levying of income tax without concealment of property or income”, “the confiscation of property for concealing incomes”. The Lenin program is the program of the big rich precisely because it abolishes private property, and puts it under the control of the state. The state is controlled by the big rich, the World Order.
The definitive authority of the Lenin program captured the attention of the financiers. Here was the opportunity to subdue and control all future competition with the power of a totalitarian state, to stifle future development, and to hold the entire population of the world in thrall to their greed. This program took Lenin back to Moscow to seize the government by force and to rule by terrorism.
Financing the Revolution
In “Germany and the Russian Revolution”, we find
Telegram No. 952 D 2615, State Sec. to min in Copenhagen: Your Embassy is authorized to pay one million roubles to Helphand. The corresponding sum should be drawn from the Legation assets.Vernadsky says, in his “Life of Lenin”,
Minister Copenhagen 23 Jan. 1916 – Dr. Helphand; “The sum of a million roubles already reached Petrograd, and devoted to the purposes for which it was intended.”
On May 8, 1916, Berlin requested 130,000 M. for Russian propaganda.
Under Secretary State to the Minister in Bern, telegram No. 348; “It was considered advantageous to Germany to bring out the members of Lenin’s party, the Bolsheviks, who are about forty in number. The special train will be under military escort.”
“In the autumn of 1915, the German Russian Social Democrat Parvus Helphand (Israel Lazarevitch) who had formerly been active in the Revolution of 1905, announced the paper published by him in Berlin, ‘The Bell’, his mission to ‘serve as an intellectual link between the armed Germans and the revolutionary Russian proletariat ...... During the war Helphand was engaged in furnishing supplies to the Germany army in huge quantities, and so considerable amounts of money passed through his hands .... A railway car in which were Lenin, Martov, and other exiles was attached to the train leaving for Germany from Switzerland on April 8, 1917. On April 13, Lenin embarked on the steamer sailing from Sassnitz to Sweden. So the trip through Germany took at least four days.”The Leninists quickly exhausted the funds advanced by the Germans when they reached Russia, and once again the Bolshevik bid for absolute power seemed in doubt. To whom should Lenin turn but his powerful friend in the White House ? Wilson promptly sent Elihu Root, Kuhn Loeb lawyer and former Secretary of State, to Russia with $20 million from his Special War Fund, to be given to the Bolsheviks. This was revealed in Congressional Hearings on Russian Bonds, HJ 8714.U5, which shows the financial statement of Woodrow Wilson’s expenditure of the $100 million voted him by Congress as a Special War Fund. The statement, showing the expenditure of $20 million in Russia by Root’s Special War Mission to Russia, is also recorded in the Congressional Record, Sept. 2, 1919, as given by Wilson’s secretary, Joseph Tumulty.
Not to be outdone in generosity, J.P. Morgan & Co. also rushed financial assistance to the beleaguered Lenin terrorists. Col. Raymond Robins headed a Red Cross Mission to Russia. Henry P. Davison, J.P. Morgan’s righthand man (also a member of the Jekyll Island team which secretly wrote the Federal Reserve Act in 1910), had raised $370 million in cash for the Red Cross during World War I, of which several millions were brought to the Russians by Robins team. Aiding him in this charitable work were Frank Vanderlip, chairman of American International Corp., and William Boyce Thompson, another director of the Federal Reserve Bank of New York. Major Harold H. Swift, head of the meat packing family, accompanied Robins on this mission of mercy, or should we say business ? Swift used the occasion to garner a $10 million meat order for his brother-in-law, Edward Morris, of Morris Co. On Jan. 22, 1920, the Soviets ordered another $50 million of meat from Morris Co.
Wall Street lawyer Thomas D. Thacher was also a key man of the Robins mission of mercy. The involvement of the J.P. Morgan firm with the Bolshevik Revolution is revealed in Harold Nicholson’s biography of Dwight Morrow (Morrow was the father-in-law of Charles Lindbergh Jr.) as follows,
“His (Morrow’s) interest in Russia dated from March 1917 when Thomas D. Thacher, his law partner, had been a member of the American Red Cross Mission during the revolution. It was strengthened by his friendship with Alex Gumberg, who had come to New York as representative of the All-Russian Textile Syndicate. ‘I have felt,’ he wrote in May 1927, ‘that the time would come when something would have to be done for Russia.’ He was himself active in furthering official relations between Soviet emissaries and the State Dept., and he provided M. Litvinov with a warm letter of recommendation to Sir Arthur Salter in Geneva. Nor was this all. When in Paris he gave a dinner party at Foyot’s to which he invited M. Rakovsky and other Soviet representatives.”Morrow’s actions might be understandable in a professor of economics at Polytechnic U., but they are incredible from a partner of the world’s most prominent banking firm. Alex Gumberg was no mewling social worker but a hardcore propagandist, who returned to the U.S. in 1918 as Trotsky’s literary agent, and promptly placed two Trotsky manuscripts with publishers. Gumberg also became consultant to Chase National Bank, and Simpson Thacher and Bartlett. He had been business manager of the Soviet paper Novy Mir during the first months of revolution in Russia; when Raymond Robins’ Red Cross Mission arrived in Russia, Gumberg served as interpreter and advisor to the Mission, working closely with Thacher. The present senior partner of Simpson Thacher and Bartlett is Cyrus Vance, who served as Carter’s Secretary of State, and is now a director of the Rockefeller Foundation.
The international financiers, advised by Gumberg, now launched a worldwide propaganda campaign to sell the Bolsheviks as idealists, selfless humanitarians, and the modern disciples of Christ, who wished only to spread brotherhood and universal love throughout the world. The tune rang strangely against the backdrop of the machine guns steadily chattering in Russia as the “disciples of love” massacred millions of women and children, but none of their devout admirers in the United States heard this as a sour note.
From the outset, the “humanitarians” showed an excessive concern for the material wealth which they had seized from its rightful owners. The New York Times noted on Jan. 30, 1918, a despatch from Petrograd,
“The people’s commissaries have decreed a State Monopoly of gold. Churches, museums and other public institutions are required to place their gold articles at the disposal of the State. Gold articles belonging to private persons must be handed over to the State. Informants will receive one-third of the value of the articles.”Lenin said, “The Soviet Union must carefully save its gold. When living with the wolves, howl like the wolves.”
One of the first orders issued by the new regime was, “The banking business is declared a state monopoly.” Signed: Lenin, Krylenko, Podvolsky, Gorbunov.
Marx’s philosophy of history claims that the world operates solely through the economic organization of society, based on the production and exchange of goods. However, this is the world view of the parasite, who is concerned only with obtaining his sustenance from the host. The materialist reduction of life to the obtaining of food at someone else’s expense eliminates first, man’s spiritual life, second, all ideas, because the materialist idea explicitly excludes all other ideas, and third, the long term view, the concept of investing over a period of time for a return which will not be available for years or perhaps never. The parasitic view is limited to the next meal, or to creating a situation in which he cannot be dislodged before obtaining his next meal. This Marxist short term view has become the standard doctrine in American graduate schools of business, particularly Harvard, which was financed by George F. Baker and J.P. Morgan. The result is that American industry, limited by the short term view, has steadily declined for twenty-five years. The high interest rates imposed by the international bankers also force industry to concentrate on short term gains merely to pay interest on their loans.
Marx said, “The first function of gold is to give the commercial world a material by which to express value, that is, to express the value of all other goods, as homynous variables, that are qualitatively identical and quantitatively comparable.” Karl Marx Soc. v.23, p.104.
Marx’s economic views were entirely compatible with the views of the banking establishment in the City of London and particularly the House of Rothschild. It is no accident that Karl Marx is buried, not in Moscow, but in London, nor is it an accident that the triumph and bloodbath of the Bolsheviks in Russia gave the Rothschilds and their associates one billion dollars in cash which the luckless Czar had deposited in their European and New York banks. Few people know that Marx had close relations with the British aristocracy, through his marriage to jenny von Westphalen. She was related to the Scottish Dukes of Argyll, who had long been revolutionaries; and the Campbells, who set up the baptist splinter group, the Campbellites.
Jenny von Westphalen’s ancestor, Anna Campbell, Countess of Balcarras and Argyll, was governess to the Prince of Orange from 1657-59, the future King William who later granted the charter of the Bank of England; Archibald Campbell, first Duke of Argyll, accompanied William on his voyage to England in 1688 to seize the throne. The present Earl of Balcarras is related to Viscount Cowdray, Weetman John Churchill Pearson, whose mother was the daughter of Lord Spencer Churchill; his sister married the Duke of Atholl, and he married the daughter of the Earl of Bradford. The Argyll-Balcarras family is represented by the Lindsay and Campbell families; the present Earl of Grawford, Robert A. Lindsay is the 29th Earl, and also the 12th Earl of Balcarras. His is also chairman of National Westminster Bank, director of Rothschild’s Sun Alliance Assurance. His mother was a Cavendish. He was formerly private secretary to the Secretary of State, and later served as Minister of State for Defense and Minister of State for Foreign and Commercial Affairs.
Despite a later reputation for “anti-Communism”, Herbert Hoover was not only the most tireless proponent of the League of Nations in partnership with Col. House; he also was the first American to step in with large scale assistance to prevent a massive uprising against the faltering Bolshevik regime. Hoover saved the Bolsheviks by organizing a massive program to rush food to the beleaguered Communists. On Nov. 28, 1917, his associate, Col. House had cabled Wilson a few days after the Bolsheviks seized power, urging the extreme importance of suppressing all American newspaper criticism of the Bolsheviks: “It is exceedingly important that such criticism be suppressed.” The telegram was placed in a confidential file, and only came to light six years later.
In “The Unknown War with Russia”, Robert J. Maddox noted in 1977, “Wilson greeted the March Revolution in Russia as a major step toward achieving the kind of postwar world he envisioned. He made sure the U.S. was the first to recognize the Provisional Government.” Maddox points out that Wilson insisted that No. 6 of his famous fourteen points at Versailles was that “Russia should continue under institutions of her own choosing”, thus guaranteeing the future of the Bolshevik regime. His closest political aide, Col. House, sent his own secretary, Kenneth Durant, to Russia to become a secretary in the Soviet Bureau in 1920 !
William Laurence Sanders, chairman of Ingersoll Rand, and deputy chairman of the Federal Reserve Bank of New York, wrote to Wilson, Oct. 17, 1918, “I am in sympathy with the Soviet form of government as the best suited for the Russian people.” George Foster Peabody, also deputy chairman of the Federal Reserve Bank of New York since 1914, and noted “philanthropist” who organized the General Education Board for the Rockefellers, stated that he supported the Bolshevik form of state monopoly. Thus we had three of the most prominent officials of the Federal Reserve Bank of New York on record as supporting Bolshevism, Sanders, Peabody and William Boyce Thompson. Thompson then announced he was giving one million dollars to promote Bolshevik propaganda in the United States ! Because the Federal Reserve Bank of New York was controlled by five New York banks who owned 53% of its stock, and because these five banks were directly controlled by N.M. Rothschild & Sons of London, we can only conclude that these three men were merely stating the preferences of their employer. The National City Bank had already loaned Russia $50 million, and Guaranty Trust, whose directors were the leading financiers in New York, now became the financial correspondent for Soviet interests in America. In January 1922, Secretary of Commerce Herbert Hoover introduced on behalf of Guaranty Trust a resolution permitting relations with “the new State Bank at Moscow”. Secretary of State Charles Evans Hughes strongly opposed this resolution, but Hoover succeeded in getting it approved. A German banker, Max May, now vice pres. of Guaranty Trust, became head of the foreign dept. of the Ruskombank in 1923, the first Soviet international bank. Who’s Who states that Max May came to the U.S. 1883, naturalized 1888, vice pres. Guaranty Trust 1904-18, director and member of board Russian Commercial Bank 1922-25. J.P. Morgan and Guaranty Trust acted as the fiscal agents of the Soviet Government in the U.S.; the first shipments of “Soviet” gold, which was actually the Czar’s gold, were deposited in Guaranty Trust.
In a typical move to disguise their operations, Otto Kahn and several officials of Guaranty Trust then founded an “anti-Communist” group, United Americans, which circulated virulent anti-Communist and anti-Jewish propaganda. Like most such organizations, it was designed to discredit and render impotent anyone opposed to Communism who became involved in its work.
On Feb. 1, 1919, Edward L. Doheny, the oil tycoon, told C.W. Barron, founder of the Wall Street Journal,
“Pres. Eliot of Harvard is teaching Bolshevism. The worst Bolsheviks in the U.S. are not only college professors, of whom President Wilson is one, but capitalists and the wives of capitalists. Frank G. Vanderlip is a Bolshevik. Socialism is the poison that destroys democracy. Socialism holds out the hope that a man can quit work and be better off. Bolshevism is the true fruit of Socialism.”The world headquarters of the Bolshevik movement was now at 120 Broadway on Wall Street. The Equitable Life Bldg. at 120 Brodway had been built by a corporation organized by Gen. T. Coleman DuPont. During the early 1920s, 120 Broadway not only housed Equitable Life, but also
- the Federal Reserve Bank of New York, whose directors were enthusiastically supporting the Bolsheviks;
- the American International Corporation, which had been organized to aid the Soviet Union;
- Weinberg and Posner, which received a $3 million order for machinery from the Soviet Union in 1919, and whose vice president was Ludwig Martens, first Soviet Ambassador to the U.S.;
- John McGregor Grant, whose operations were financed by Olaf Aschberg of Nya Banken, Stockholm, who had transmitted large sums furnished by the Warburgs for the Bolshevik Revolution; the London agent of Nya Banken was the British Bank of North Commerce, whose chairman was Earl Grey, a close associate of Cecil Rhodes – Grant had been blacklisted by the U.S. Government for his support of Germany during World War I;
- and on the top floor of 120 Broadway was the exclusive Bankers Club.
Rockefeller Support for the Bolsheviks
Many Americans are puzzled by the relentless devotion of the Rockefeller Foundation to financing Communist organizations in many parts of the world. This dedication to Communism can be traced back to a crucial moment in the Bolsheviks’ march to power. In 1917, Mackenzie King had established a lifelong relationship with John D. Rockefeller, Jr. whom he met in June, 1914. They had been born in the same year, 1874, and seemed to agree on everything. Soon, King was working closely with Frederick T. Gates and Ivy Lee to further the Rockefeller “philantropies”, which seemed to view Communism as the ideal vehicle to bring about world brotherhood.
King wrote to this friend Violet Markham, “John D. Rockefeller Jr., the truest follower of Christ, has one purpose – to serve his fellow man.” King resolved that his one purpose was to serve Rockefeller; he testified for him at the trial investigating the Colorado Iron and Fuel Co. massacre before the Walsh Committee (the Rockefellers later tried to have Walsh framed and expelled from the Senate, but failed due to the obstinancy of Burton J. Wheeler; J.Edgar Hoover played a crucial role in setting up the frame).
The Rockefellers helped Mackenzie King obtain government contracts for the Canadian Army during World War I, which set King up for later blackmail (the “Panama” hold over the vassals). King sold hundreds of tons of rotten meat to be sent to the Canadian Army in Europe; boots of “leather”, which were mostly pasteboard and which disintegrated immediately in the watersoaked trenches; rifles that jammed when they were fired; and collar type life preservers (previously condemned) which broke the soldiers’ necks when they jumped into the water.
While Leon Trotsky was in New York in 1917, he received word to return to Russia at once to help bring off the Bolshevik seizure of power. The Rockefellers gave him $10,000 in cash for his journey, procured a special passport for him from President Woodrow Wilson, and sent Lincoln Steffens to safeguard him on the journey.
When Trotsky’s ship stopped in Halifax, the Canadian Secret Service, warned that he was on board, arrested him on April 3, 1917 and interned him in Nova Scotia. The patriotic agents knew that Trotsky was on his way to Russia to take Russia out of the war against Germany, which would free many German divisions to attack the Canadian troops on the Western Front. Prime Minister Lloyd George indignantly cabled demands from London that Trotsky be released, but the secret service ignored him.
By means never explained, Mackenzie King then stepped into the breach and obtained Trotsky’s freedom. Trotsky continued on his way to Russia, and became Lenin’s chief deputy in the extermination of Russian citizens; he also organized the Red Army with the able help of Wall Street lawyer Thomas D. Thacher. The agents who had arrested Trotsky were dismissed from the service; their careers were ended. As a reward for his intervention, the Rockefellers appointed Mackenzie King head of the Rockefeller Foundation dept. of Industrial Research at a salary of $30,000 a year (the average wage in the U.S. at that time was $500 year). Frank P. Walsh testified before a U.S. Commission that the Rockefeller Foundation was a cloak for the Rockefeller plan to lead organized labor into slavery.
King also became a director of the Carnegie Corporation. A Lady Laurier left him a large mansion in Ottawa, and in 1921 a group of wellwishers, led by Peter Larkin, refurbished and staffed it for him at a cost of $255,000. King then appointed Larkin High Commissioner of Canada in London. In 1940, the Canadian Parliament voted King, then Prime Minister of Canada “absolute and dictatorial powers for the duration”. On King’s 74th birthday in 1948, John D. Rockefeller Jr. gave him $100,000. The Rockefeller Foundation then put up $300,000 to pay for the writing of King’s Memoirs. In his final years, King, still on the take, was exposed as a principal in the $30 million Beauharnais Power Co. swindle during the building of the St. Lawrence Seaway. King had accepted $700,000 from Beauharnais for the Liberal Party, and among other enticements had received a trip to Bermuda.
The Rockefellers figured in many pro-Soviet deals during the 1920s. Because of the struggle for power which developed between Stalin and Trotsky, the Rockefellers intervened in October, 1926, and backed Stalin, ousting Trotsky. Years later, they would again intervene when the Kremlin was racked by disagreements; David Rockefeller summarily fired Kruschev.
John D. Rockefeller instructed his press agent, Ivy Lee in 1925 to promote Communism in the U.S. and to sparkplug a public relations drive which culminated in 1933 with the U.S. government recognition of Soviet Russia. In 1927 Standard Oil of New Jersey built a refinery in Russia, after having been promised 50% of the Caucasus oil production. The Rockefeller firm, Vacuum Oil, signed an agreement with the Soviet Naptha Syndicate to sell Russian oil in Europe, and made a $75 million loan to Russia. John Moody had stated in 1911,
“the Standard Oil Co. was really a bank of the most gigantic character – a bank within an industry ... lending vast sums of money to needy borrowers just as other great banks were doing ... the company was known as the Standard Oil Bank. As Rockefeller was no banker, this meant that the Standard Oil was being directed by professional bankers.”The Standard Oil operation has always been directed by the most professional bankers in the world, the Rothschilds; consequently, the Rothschilds through their agents, Kuhn Loeb Co. have maintained close supervision of the “Rockefeller” fortune.
In 1935, Stalin expropriated many foreign investments in Russia, but the Standard Oil properties were not touched. The Five Year Plans (1928-32, 1933-37, and 1938-42) were all financed by the international banking houses. During the 1920s, the principal firms doing business with Russia were Vacuum Oil, International Harvester, Guaranty Trust and New York Life, all firms controlled by the Morgan-Rockefeller interests.
Arthur Upham Pope’s biography of Litvinov notes that in March, 1921, a trade agreement was signed with Great Britain providing that gold sent in payment for machines bought by Russia would not be confiscated towards old debts or claims. This insured that Czarist gold sent to England would not be seized by his cousins, the British Royal Family. On July 7, 1922, Litvinov revealed that the Russian delegation at the Hague Conference was negotiating with an important group of financiers which included Otto H. Kahn of Kuhn Loeb Co. A week later, Kahn arrived at The Hague. He stated, “The conference with the Russians will bring useful results and will lead to a closer approach to unity of views and policies on the part of England, France and the U.S. in respect to the Russian situation.” When Otto Kahn’s wife visited Russia in 1936, she was treated like visiting royalty.
In 1922, the Chase National Bank had established the American-Russian Chamber of Commerce to promote trade with and government recognition of Russia. Its chairman was Reeve Schley, a vice president of Chase; he was a director of many corporations including Howe Sound, Electric Boat, the Yale Corp., chairman of Sundstrand and Underwnod; he had served as director of the U.S. Fuel Administration from 1917-1919. His son, Reeve Schley Jr. was a Captain in the O.S.S. under Gen. Donovan in World War II.
Before, During and After World War II
Both Chase and Equitable Trust led in granting credits to the Soviet Union during the 1920s. In 1934, Roosevelt established the Export Import Bank to finance increased trade with the Soviet Union. During World War II, Chase was AMTORG’S principal bank in handling the many billions of dollars of Lend Lease transactions for Russia.
Roosevelt went all out in supporting the Soviets, perhaps because all three of his personal assistants, Alger Hiss, Lauchlin Currie and Harry Dexter White, were identified as Soviet agents. Hiss’ mentor was Dean Acheson, formerly of J.P. Morgan Co. Asst Secretary of State A.A. Berle Jr. testified before the House Un-American Activities Committee Aug. 30, 1948 that “Acheson was the head of the pro-Russian group in the State Department.” Acheson later became senior partner of Covington and Burling, obtaining the position for the firm as Washington legal representative for nine Communist governments.
On April 29, 1943, the Board of Economic Warfare granted a special license to Chematar Corp. of New York to fill an order from the Soviet Purchasing Commission for 2001b. uranium oxide, 2201b. uranium nitrate, and 25 lb. of uranium metal, commodities virtually unknown at that time, thus launching the Soviet atomic program. Today every American citizen lives under the threat of Soviet nuclear war.
On Jan. 29, 1944, Special Ambassador W. Averill Harriman in Moscow informed the State Dept. that “we” must turn over to the Russians the currency printing plates which had been engraved for the U.S. Treasury by Forbes Co. of Boston. The State Dept. delayed action on this request for several weeks. On March 22, Harry Dexter White met with Gromyko at the Soviet Embassy and assured him the plates would be delivered. Both Harriman and White made daily demands until the plates were turned over to the Soviet Union April 14, 1944. The Soviet Union then printed $300 million in currency which was redeemed by the American taxpayers.
After the “Cold War” began, the financiers continued their efforts to aid the Soviets. In 1967, the New York Times announced that a new consortium had been formed to promote trade with Russia, composed of Cyrus Eaton’s Tower Corp., Rockefeller’s International Basic Economy Corp., and N.M. Rothschild & Sons of London. Eaton had begun his career as a $2 a day factotum for John D. Rockefeller, who later financed his purchase of Canadian Gas & Electric Corp. Eaton stated that Rockefeller soon interested him in Russian affairs. In an interview with Mike Wallace, Eaton claimed that under Communism, the people of the Soviet Union were entirely contented. “They were happy. I was amazed at their happiness and dedication to the system.” Eaton was one of the first defenders of the Stalin-Hitler Pact in 1939.
The Rothschilds have rarely been identified with Communist causes, preferring to remain in the background. Only one member, N.M. Victor Rothschild, who served an apprenticeship with J.P. Morgan Co., had become involved with the Apostles Club at Cambridge, described by Michael Straight as composed mostly of Communists who were also homosexual. Its well known members were Guy Burgess and Donald MacLean, Anthony Blunt, Keeper of the Queen’s Pictures, and the double, or triple agent Kim Philby. During World War II. Victor Rothschild, who was with MI5, lent his London flat at No. 5 Bentinck St. to Burgess, while his mother, Mrs. Charles Rothschild, hired Burgess as her investment counselor. Blunt left the staff of the Warburg Institute to work with MI5; he introduced Victor Rothschild to his aunt, Teresa Mayor, who later became Lady Rothschild. Blunt has been recently described as having had an “affectionate” relationship with the Queen.
The Rockefeller family is sometimes called the first family of the Soviet Union. When Nelson Rockefeller was nominated for vice president in 1967, Pravda indignantly denounced his critics, saying that charges against Rockefeller were designed only to discredit him, and that the accusations came from ultra right wing organizations. Senator Frank Church, attending the 1971 Dartmouth Conference at Kiev, was amazed to find that “David Rockefeller was treated like we would treat royalty in this country. The Russian people appear to evince an adoration of Rockefeller that is puzzling.” When David Rockefeller’s plane lands in Russia, crowds line up to greet him at the airport, and line the streets of Moscow as his limousine passes, hailing him with cries of RAHK FAWLER. George Gilder remarked that no one knows how to revere, blandish and exalt a Rockefeller half as well as the Marxists.
After World War II, Dean Acheson frantically lobbied for an additional $300 million loan to the Soviet Union. Ed Burling, who was Frederic A. Delano’s brother-in-law, had founded the firm of Covington and Burling of which Acheson was partner, with Donald Hiss, brother of Alger.
When Acheson’s lobbying failed to develop the Russian aid, the Council on Foreign Relations drafted the Marshall Plan as an alternative measure. Their publication, “Foreign Affairs”, then published the “containment plan” as written by “X” (George Kennan). The policy of containment, which has been the official foreign policy of the U.S. toward the Soviet Union since 1947, guarantees not only Soviet Russia’s borders, but her continued enslavement of the “Captive nations” which she holds by military force.
Henry Luce, who always provided a forum for the international propagandists, reprinted the entire text of the July, 1947 Foreign Affairs article in Life magazine, July 28, 1947. Its key sentence was “The main element of any U.S. policy towards the Soviet Union must be the long-term, patient but firm and vigilant containment of Russian expansive tendencies”. Luce’s Time magazine dubbed Kennan “America’s senior policy-maker”. He later became a fellow of the Institute of Advanced Study of Princeton.
Kennan was the nephew and namesake of the George Kennan who operated as a Marxist agent for Jacob Schiff in Russia for many years before the Bolshevik Revolution, and was finally expelled by the Czarist Government. Kennan’s pen-name “X” was a favorite identification of Socialist operatives. In 1902, the Socialist “X” Club had been founded in New York by John Dewey, whose Socialist program has dominated American education during the twentieth century. The other founders of the “X” Club were James T. Shotwell, founder of the League of Nations, United Nations etc.; Morris Hillquit, Communist candidate for Mayor of New York, Charles Edward Russell, and Rufus Weeks, vice president and managing director of New York Life, which was controlled by J.P. Morgan.
When Nikolai Kruschev, dictator of the Soviet Union, came to New York Sept. 17, 1959, he was invited to dinner at W. Averill Harriman’s Home. Thirty people attended, who controlled aggregate wealth of $40 billion; they included
- Russian born David Sarnoff, head of RCA,
- Philip Mosely of the Council on Foreign Relations;
- Herbert H. Lehman of Lehman Bros.; Dean Rusk of the Rockefeller Foundation;
- George A. Woods, First Boston Corp.;
- Thomas K. Finletter of Coudert Bros., former Secretary of the Air Force;
- John K. Galbraith, economist;
- Frank Pace of General Dynamics.
In 1973, the U.S.-USSR Trade and Economic Council, consisting of leading U.S. heads of corporations, was formed to promote “trade” read (gifts) to the Soviet Union. In 1976, G.M. Miller of Textron was named head of the Council. Shortly afterwards, he was appointed chairman of the Federal Reserve Board of Governors by Carter. The Bolshevik Revolution, which was nurtured through its most trying days by three directors of the Federal Reserve Bank of New York, William Boyce Thompson, George Foster Peabody, and William Woodward, continues to be supported by the Federal Reserve System. The Federal Reserve System maintains close ties with the Gosbank, the Soviet Central Bank, which controls the Communist Party of the USSR. Gosbank employs 5000 economists, and is known as a “passive”, rather than an “active” bank of issue, meaning that it follows orders from other sources, as does the Federal Reserve Board of Governors. The Gosbank-Federal Reserve System “cooperation” in Soviet financial letters is handled through the Bank for International Settlements in Switzerland.
In 1949, the present flood of “Eurodollars” originated as European deposits of Communist dollar hoards in the Soviet Eurobank of Paris, Banque Commerciale pour Europe du Nord. The financiers then realized they created a new and even more untraceable source of paper money which had no backing. Anthony Sampson writes that “The more cosmopolitan banks with foreign experts and directors, such as Warburgs, Montagus, Rothschilds and Kleinworts, had also discovered a huge new source of profits in the market for Eurodollars.”
These profits now amount to some two trillion dollars, all of which are obligations of the American taxpayer. This Ponzi operation was made possible by the exclusive “Central Bankers Club”, the Bank for International Settlements, which had been established by Hjalmar Schacht, financier of the Nazi movement, Emile Francqui, guiding genius of Hoover’s Belgian Relief Commission, and John Foster Dulles, heir to the title “most dangerous man in America”. It was set up in May 1930 by the Hague Treaty to handle German reparations payments, which, of course, were never paid. BIS now controls one tenth of the world’s gold, which it rents out at a profit. Its assets have increased by an astronomical 1200% in the past twenty years. U.S. shares of BIS are held by Citibank.
American International Corporation continued to exercise a behind the scenes role in U.S. Soviet dealings until World War II, when W.A. Harriman’s presence in Moscow to direct Stalin’s handling of the war usurped its duties.
Standard and Poors shows in 1982 an American International Group, an insurance holding company with $3.4 billion in assets, whose attorneys are Sullivan & Cromwell. It was formed from the Cornelius V. Starr insurance network which was part of the CIA’s Asiatic operations. Its directors include
- Harry Kearns, chmn Eishenower-Nixon presidential campaign, now chmn American Asian Bank, served as president Export Import Bank 1969-73;
- William L. Hemphill, pres. United Guaranty, director of Cone Mills (the Hemphill family has been allied with J.P. Morgan for many years);
- Douglas MacArthur II, diplomat;
- John I. Howell, chmn J.Henry Schroder Bank, and Schroders Ltd of London;
- Edwin A. Granville Mentin of England, who was chairman of American International from 1946-1979, now director of the Starr Foundation; and
- J. Milburn Smith, director of Lloyd’s of London.
Prominent American businessmen and political leaders such as W. Averill Harriman do not bother to conceal their pro-Soviet activities. Russian Ambassador Dobrynin casually referred to Henry Kissinger’s double role, saying, “I am the laughing third man, sitting still. Kissinger is negotiating for us too.” Brezhnev, dictator of Russia, was asked why the Soviet Union did not take a role in Middle East negotiations. He replied, “We don’t need representation. Kissinger is our man in the Middle East.”
With this kind of influence, it seems odd that the Communists do not precipitate a coup, and seize absolute power in the U.S., as they did in Russia in 1917. There are 200,000,000 answers to this question, not 200,000,000 Americans, but 200,000,000 guns held privately by American citizens. A confidential Ford Foundation study showed that only 5 to 10% of Americans would actively resist a Communist seizure of power. This was the good news. The bad news was that only 1 % of our citizens, armed and opposing the takeover, would defeat it. Since 1948, Americans have asked this writer when the Communists will seize power in the U.S. The answer is that they will seize power after they have confiscated the 200,000,000 guns. Guns are forbidden in the Soviet Union. Only the highest officials are allowed to possess them.
Criminals understand only one law – the law of force. The criminal syndicalists who seek to enslave the entire world cannot be defeated by humility or compassion, but only by the most determined and the harshest measures. To examine the American situation in perspective, there are only five hundred men, primarily in the major foundations, who are actively engaged in transmitting international banker-Socialist orders to our government. Beneath them are ten thousand politicians, businessmen, media personalities, and academicians who, with the aid of religious operatives, implement the orders from London. This is a much smaller number than the members of the Communist Party of the USSR which rules the Soviet Union.
To protect these traitors, the U.S. government has imported 25 million aliens into the United States, which includes 5000 intensively trained terrorists, and 100,000 hardened criminals. This force is intended to neutralize the opposition of the American people to Communism. The government encourages crime, because it is the nationwide criminal force, not the police force, which keeps the population subdued. Americans must devote all their energies to defending themselves against the professional criminals, protecting their homes and families, leaving them no opportunity to organize against the criminal syndicalists of the World Order. This clever plan of subsidizing the criminal element was the sole achievement of the Law Enforcement Administration, a foundation-organized plan which originated at the University of Chicago.
The federal government uses its armed police, the IRS, the FBI, the BATF and the CIA solely to terrorize its American subjects into compliance with the program of the World Order. Most American citizens have had to come to the painful realization that the FBI is not concerned with fighting Communism, but only with battling American anti-Communists. They now realize that the IRS functions as an armed group of terrorists, not to collect funds, of which the government has no need, but solely to extort money by force from American citizens, as part of the program of the World Order. The intent is to render them impoverished and terrorized, so that they will be rendered impotent and unable to organize to resist the World Order. It is the program of 1984.
Even if they planned otherwise, the five masters of the World Order have now created a situation which must lead to world war, world economic collapse, or both. The thirty-year buildup o[ the Soviet Union as the next opponent in an ongoing world conflict was noted by Srully Blotnick in Forbes magazine, Nov. 7, 1983:
“A wealthy New York lawyer whose portfolio contained substantial holdings of McDonnell Douglas, Raytheon and General Dynamics, commented, ‘It bothers me even to think what would happen if the Russians decided to take us up on our 5% a year solution to the arms race. Once we started dismantling our stategic weapons, the defense stocks will make the hi tech group look stable by comparison. The 60% loss I took on my Fortune computer system could be a hint of things to come’.”The World Order has no religious, political or economic program except World Slavery. Only by subduing all potential opposition can the parasite guarantee his position of lodging on the host. The World Order sets up countless groups to promote any type of idea, and then sets up other groups to fanatically oppose them, but the masters have no dedication to anything except slavery. As R.E. McMaster wrote in The Reaper,
“The goal of international communism is not to destroy Western international debt capitalism. The goal of international communism is to enslave mankind at the behest of Western international debt capitalism.”This is all you can ever know about the present world situation, and it is all you need to know.
In law and finance, it is prudent to make up a “worst case” theory. What is the worst case theory we could apply to the U.S. economy today ? It is not more inflation, higher debt and interest rates, or higher taxes. These are already inevitable. The worst case is a revolution in Russia. Let us suppose a truly terrifying scenario, that the inmates of the Soviet concentration camps have been surreptitiously armed. They rise up and seize power in a coup which would be as impossible to stop as the Bolshevik coup of 1917. Americans would applaud if a patriotic Christian government which, like the Czar’s government, desired only peace with the U.S., suddenly seized power in Russia. Or would we ?
We could hardly applaud, because we would be too busy dodging the bodies falling from windows on Wall Street. Within hours, our defense-oriented stocks would collapse, dragging down the entire market with them. As Blotnick barely hints, there would be a complete economic collapse in the United States. The fact is that the World Order has made the economy of the U.S. entirely dependent on a “threat” from Russia; it could not survive a “friendly” regime.
That is why the CIA (also known as the Central Investment Agency) co-operates with the KGB to create and destroy anti-Communist groups around the world. The CIA has never engaged in sabotage in the Soviet Union; the KGB has never engaged in sabotage in the U.S. By betraying the anti-Communist fighters at the Bay of Pigs, the CIA bolstered Castro’s shaky regime and destroyed his opposition. He has never again faced any challenge. Former CIA official David Attlee Phillips says (p. 107 “THE NIGHT WATCH” that Dean Rusk (Rockefeller Foundation) ordered the cancellation of the air strike, which doomed the anti-Communist forces at the Bay of Pigs to annihilation. Powers, in his biography of Richard Helms, also identifies Rusk as the man who cancelled the air support of the anti-Communists.
CHAPTER 3: Franklin D. Roosevelt
World War II as a managed conflict on behalf of the financial oligarchy
World War II as a managed conflict on behalf of the financial oligarchy
The Rise of FDR
The Managed Conflict
The Rise of FDR
The Crash of 1929 and the resulting depression have been exhaustively covered in a previous work (Secrets of the Federal Reserve, 1983). Roosevelt was elected president in 1932 in a campaign which ignored Hoover’s Rothschild connections and his World War I record. Instead, Roosevelt blamed Hoover for a depression which had been set up by the Bank of England. Hoover states in his Memoirs.
“In replying to Roosevelt’s statement that I was responsible for the orgy of speculation, I considered for some time whether I should expose the responsibility of the Federal Reserve Board by its deliberate inflation policies from 1925-28 under European influence, and my opposition to these policies.”Hoover remained silent, and was ushered out of office. He later termed Gerard Swope’s “economic planning” for the New Deal as “the precise pattern of Fascism”. “The New Dealers”, by an Unofficial Observer, Literary Guild 1934, noted that the New Deal included W.A. Harriman, administrator in charge of heavy industry, and his sister, Mary Rumsey, who backed Newsweek with Vincent Astor, and the New Deal weekly, Today. “Observer” also noted that Col. House was the elder statesman behind the New Deal, and that House had only backed two Presidential candidates, Wilson and FDR. Roosevelt continued the Wilson policies (actually the House policies outlined in “Philip Dru, Administrator”), with the same personnel, and ended as Wilson did, by involving America in another World War. Observer states that Col. House’s New York apartment was only two blocks from the Roosevelt home on E. 65th St. in New York, and that House was seen there almost every day in 1932. He also visited Roosevelt in New England and on the Roosevelt yacht.
To consolidate Roosevelt’s power, his backers used the typical World Order scheme – they set up his “opposition”. In August, 1934, the principal architects and financiers of his New Deal formed the Liberty League, immediately characterized as an “extreme rightwing” organization. Pierre and Irenee DuPont put up $325,000 for it. The League was also financed by J.P. Morgan, the Rockefellers, J. Howard Pew, and William J. Knudsen (who was later appointed by FDR to an important position!).
The backers of Liberty League, who were busily denouncing Roosevelt & his staff as “Communist”, which many of them were, were also the organizers of American International Corporation, which had been formed to prevent the economy of the Soviet Union from collapsing. Liberty League successfully corralled the opponents of FDR and branded them as “rightwing nuts”. Roosevelt was given the opportunity to rant against his opposition as “economic royalists”, “the Old Guard”, and “princes of privilege”. Gerald L.K. Smith was then brought into the picture, in order to smear Roosevelt's opposition as “anti-Semitic”.
The ploy operated from 1934 to the 1936 elections, when it effectively destroyed London's campaign. No effective political opposition was organized against Roosevelt for the rest of his lifetime in office. It was one of the most successful political hoaxes in American history. Roosevelt then married his son to an heiress of the DuPont dynasty. At the very time that Eugene DuPont, cousin of Pierre, was one of the most active members of the Liberty League, F.D. Roosevelt Jr. was courting his daughter, Ethell ! They were married June 28, 1937, in what Time Magazine called the “Wedding of the Year”, presided over by Dr. Endicott Peabody. The couple made the cover of Time magazine, the only newlyweds ever to do so.
These measures were necessary because FDR's backers were planning to involve the U.S. in the Second World War. Any popular political opposition to Roosevelt might have swept him out of office in 1940, just when he was needed to bring off the Pearl Harbor attack. On the morning of Pearl Harbor, Gen. Marshall, his Chief of Staff, met secretly with Maxim Litvinov (married to Ivy Low of England), to assure the Russians that everything was going according to plan. Marshall later testified before Congress that he “couldn't remember” where he was on Pearl Harbor Day.
The “managed conflict” was well on its way.
The Managed Conflict
Jacques Rueff points out that Schacht did not invent Hitler's monetary policy; it was imposed on Germany “by American and British creditors to finance war preparations and finally unleash war itself” (The Monetary Sins of the West). Rueff also points out that the Standstill Agreement of 1931 allowing Germany a moratorium on war debts through the 1930s was a amicable pact between the London, New York and German branches of the Warburg and Schroder houses. Max Warburg remained Schacht's deputy at the Reichsbank until 1938; Kurt von Schroder then became his deputy. (Schacht's father had been Berlin agent for the Equitable Life Insurance Co. of New York.) The industrialist levies for Hitler (the Circle of Friends) were paid into the Schroder Bank.
Throughout the 1930s, Hitler was duped into persevering in his desire for friendship with England, an alliance originally proposed jointly by Theodore Roosevelt and the Kaiser in 1898 between the three Nordic powers, England, Germany and the United States. The Schröders assured Hitler that their Anglo-German Fellowship in England was a hundred times more influential than it actually was. With such figures as the Astors and the Chamberlains supporting rapport with Germany, Hitler was persuaded that war with England was impossible.
In 1933 he had announced his discovery that Marx, Lenin and Stalin had all said that before international Communism could triumph, England and her Empire must be destroyed. “I am willing to help defend the British Empire by force if called upon,” he declared. In 1936, Hitler arranged for meetings to take place between English and German diplomats, but the desired result was never attained, as the British had only one goal to lull Hitler into a sense of false security until they could declare war against him.
To lure Hitler into World War II, it was necessary to guarantee him adequate supplies of such necessities as ball bearings and oil. Jacob Wallenberg of the Swedish Enskilda Bank, which controlled the giant SKF ball bearing plant, furnished ball bearings to the Nazis throughout the war. The anti aircraft guns sending flak against American air crews turned on SKF ball bearings. Its American plant, SKF of Philadelphia, was repeatedly put on the Proclaimed List, and each time, Dean Acheson removed it.
President William S. Farish of Standard Oil refueled Nazi ships and submarines through stations in Spain and Latin America. When Queen Elizabeth recently came to the U.S., the only family she visited was the Farishes. Throughout the war, the British paid royalty to Ethyl-Standard Corp. on the gasoline used by German bombers who were destroying London. The money was placed in Farben bank accounts until after the war. I.G. Farben was organized by the Warburgs in 1925 as a merger between six giant German chemical companies, Badische Anilin, Bayer, Agfa, Hoechst, Welierter-Meer, and Griesheim-Elektron. Max Warburg was director of I.G. Farben, Germany, and I.G. Chemie, Switzerland. American I.G. Farben was controlled by his brother, Paul, architect of the Federal Reserve System, Walter Teagle of Standard Oil, and Charles Mitchell of National City Bank. Just before World War II broke out, Ethyl-Standard shipped 500 tons of ethyl lead to the Reich Air Ministry through I.G. Farben, with payment secured by letter of Brown Bros. Harriman dated Sept. 21, 1938.
Throughout World War II, the Paris branches of J.P. Morgan and chase National Bank continued to do business as usual. At the end of the war, occupation authorities repeatedly issued orders to dismantle I.G. Farben plants, but were countermanded by Gen. William Draper of Dillon Read, which had financed German rearmament in the 1920s.
Winston Churchill remarked of this “managed conflict” in 1945, just before it ended, “There never was a war more easy to stop.” (quoted in Washington Post June 11, 1984). The only real difficulty had been encountered in getting it started. Churchill succeeded in prolonging the war for at least a year by defeating Gen. Wedemeyer's plan for a Channel crossing in 1943, and by embarking on his ruinous North African-Sicilian swing, a replay of his disastrous Gallipoli campaign of the First World War.
Life revealed April 9, 1951 that Eisenhower had radioed Stalin through the U.S. Military Mission in Moscow of his plan to stop at the Elbe and allow the Russians to take Berlin. The message had been written by Ike's political advisor, John Wheeler-Bennett of RIIA, received by W. Averill Harriman, and delivered to Stalin. In Washington, Gen. Marshall assured President Truman that we were “obligated” to allow the Russians to take Berlin. Senator Joseph McCarthy later called Marshall “a living lie”.
The conquered German people were now systematically looted and ruthlessly governed by the occupying powers. Henry Kissinger, John J. McCloy (son-in-law of a J.P. Morgan partner), Benjamin Buttenweiser, partner of Kuhn, Loeb & Co. (his wife was Alger Hiss's lawyer at his trial for perjury), and other Rothschild operatives descended like locusts upon the prostrate nation.
Aid to Soviet Russia continued under the guise of the Marshall Plan, a rerun of Hoover's Belgian Relief Commission in World War I. The Marshall Plan originated as a special study by David Rockefeller for the Council on Foreign Relations, “Reconstruction of Western Europe” completed in 1947. It was retitled the “Marshall Plan” and advertised as a great contribution to “democracy in Europe”. (Imperial Brain Trust-Shoup). W. Averell Harriman was installed in the Rothschild's Paris mansion, Hotel Talleyrand, as head of the Marshall Plan.
The victorious Rothschilds consolidated their control of world monetary systems by the Bretton Woods pact, a replica of the charter of the Bank of England. It provided immunity from the judicial process, its archives were inviolable and not subject to court or Congressional inspection; no taxation could be levied on any security dividend or interest of the Fund; all officers and personnel were immune from legal processes. The pact systematically looted Western Europe and the United States.
On April 3, 1984, AP reported that “British” investments in the U.S. were now $115 billion, and the British held $28 billion in U.S. bank assets. At least one U.S. Senator is a member of the British aristocracy, Malcolm Wallop, (R. Wyo.) son of Hon. Oliver Wallop, whose brother is Earl of Portsmouth (created 1743). Sen. Wallop's sister, Lady Porchester, married Lord Porchester, son of the Earl of Carnarvon. Lord Porchester is the Queen's Master of Horse, and her Racing Manager.
Lord Carrington, for many years British Foreign Minister, is now Henry Kissinger's partner in Kissinger Associates, and was recently appointed head of NATO. He is chum of GE chum Australian New Zealand Bank, director of Rio Tinto, Barclay's Bank, Cadbury Schweppes, Amalgamated Metal, British Metal, and Hambros Bank. His mother was the daughter of Viscount Colville, who was financial secretary of the treasury 1936-38.
Richard Davis notes in “The English Rothschilds” that Lionel Rothschild was a frequent visitor at Lord Carrington's house in Whitehall. In fact, Lord Carrington was related to the Rothschild family by marriage. The first Lord Carrington was Archibald Primrose. His son became Viscount Rosebery. The 5th Earl Rosebery married Hannah Rothschild, daughter of Mayer, in 1878. She was given away by Disraeli.
World War II delivered the peoples of the world into the hands of the World Order, with the predictable result that they have been systematically despoiled, terrorized, oppressed and massacred in further “managed conflicts”, not the least of which was the Vietnam War, in which American boys with little or no combat training were sent into battle against the highly trained guerilla troops of Ho Chi Minh and General Giap, communist troops whose leaders had been intensively trained by the special OSS Deer team.
The Rothschilds rule the U.S. through their foundations, the Council on Foreign Relations, and the Federal Reserve System, with no serious challenges to their power. Expensive “political campaigns” are routinely conducted, with carefully screened candidates who are pledged to the program of the World Order. Should they deviate from the program, they would have an “accident”, be framed on a sex charge, or indicted on some financial irregularity. Senator Moynihan stated in his book, “Loyalties”, “A British friend, wise in the ways of the world, put it thus: They are now on page 16 of the Plan.” Moynihan prudently did not ask what page 17 would bring.
The American citizen works hard and pays taxes, blissfully unaware that at any moment the secret rulers, operating through the Federal Reserve Board, can make a monetary ruling which will place him in onerous debt or bankrupt him. Gary Allen writes in American Opinion, Oct. 7, 1979, “Whatever the future holds, you can bet it will be unstable with wide swings in the value of the dollar and precious metals. As long as Volcker's sponsors know in advance what his policies will be, they will make big money.” This accurate prediction was followed by 20% interest and 25% inflation.
Businessweek, Feb. 20, 1984, stated,
“The worst market for traders is a stable one.... Investment banks now have a greater than ever vested interest in market instability. They can rack up enormous profits by guessing right about rapid, wide swings in profits, prices and interest rates.”It is obvious that they can rack up “enormous profits” if they know in advance what the monetary decisions will he. Anyone who seriously believes that no one knows in advance what Federal Reserve decisions will be is too naive to be allowed out on their own; anybody who believes that there is no one who can tell the Federal Reserve Board what its policies are to be is even more out of touch with reality.
Many people believed that Lord Montagu Norman ran the Bank of England as a one-man show for thirty years, showing that some people will believe anything. A. Craig Copetas writes in Harper's, Jan. 1984, “How the Barbarians Do Business” about the 2,000 dealers of the London Metal Exchange, that viewing these people objectively, “you are left with a simple scrap merchant – a rag and bone man, as the British call their junk dealers.” It is the rag and bone men who are running the economies of the world up and down like a window shade, and profiting handsomely on every move of the markets.
Carter Field notes in his biography of Baruch, “Baruch got out of the market just before the Crash. But what made Baruch sell stocks and buy tax-exempts at such a favorable time?” Field offers no answer.
Norman Dodd, who was then with Bankers Trust, states that Henry Morgenthau came into Bankers Trust a few days before the Crash, and ordered the officers to close out all securities of his trusts, $60 million, in three days. The officers tried to remonstrate with him, pointing out that if he would sell them over a period of weeks, he would make much greater profits, perhaps five million dollars more than if they were disposed of on such short notice. Morgenthau became furious, screaming at them, “I didn't come here to argue with you ! Do as I say!” Black Friday occurred within the week.
On May 30, 1936, Newsweek wrote about a Roosevelt appointee to the Federal Reserve Board, Ralph W. Morrison,
“He sold his Texas utility stock to Insull for ten million dollars, and in 1929 called a meeting and ordered his banks to close out all security loans by Sept. 1. As a result, they rode through the depression with flying colors.”The insiders come through “with flying colors”, while millions of victims are ruined, destroyed by forces which they refuse to believe exist. Heartbreak, losses of homes and businesses, breakdowns, suicides, destruction of families, these are the results of World Order economic policies initiated and carried out by “the rag and bone men”.
Through its monetary command to the Federal Reserve Board, the World Order determines the outcome of American elections. A news commentator recently pointed out that Paul Volcker would determine whether Reagan would be re-elected. In 1980, the Federal Reserve Board deliberately defeated Carter and elected Reagan. Otto Eckstein noted in U.S. News, Sept. 5, 1983, that the prime rate reached 21.5% in late 1980, creating a recession in an election year. Eckstein, head of Data Resources in Lexington, Mass. (he later died suddenly), said, “The Federal Reserve had never before made such a move.” Only the World Order knows whether the Federal Reserve will ride Reagan back into office in 1984 on a high tide of prosperity, or throw him out as the new Herbert Hoover. The more likely prospect is that he will be the Herbert Hoover of 1986 or 1988.
One critic pointed out that Volcker has boosted interest rates, which hurts U.S. stocks, making short term U.S. money instruments more desirable than long-term, and bringing about the very instability of foreign capital flows which he claims to fear. Gordon Thether writes in The London Financial Times,
“In all history, there can be fewer instances of a man having inflicted greater damage on the interests of his fellow human beings than Volcker has done with 'benigh neglect' and its all too many malignant manifestations – not the first of which is the ill-conceived gold demonetization campaign Washington has been engaged in since the late 60s. Interest rates rise when gold does not back currency.”Through the London Gold Pool, the Federal Reserve System and the U.S. Treasury disposed of American gold at the giveway price of $35 an ounce, one tenth of its current value, robbing the American public of billions of dollars. On July 24, 1969, Volcker authorized SDR paper gold, Special Drawing Rights, to replace gold in foreign exchange. He then triumphantly remarked to his fellow bankers in Paris, “Well, we got this thing launched.” Secretary of the Treasury Connally then took the Nixon Administration off gold, devaluing the dollar in August, 1971.
On July 17, 1984, Jack Anderson described the Federal Open Market Committee in the Washington Post as “a mysterious council of 12”, “the enigmatic group” with “excessive secrecy” who, says Anderson, “influence what rates you will pay, how much money will be available for business to borrow and whether inflation once again will eat up your earnings and reduce the value of your bank accounts.”
Despite the far-reaching importance of “Volcker's” decisions, his testimony before Congress is shrouded in gobbledy-gook; this writer has gone through hundreds of pages of his testimony without finding a single quotable phrase about his economic intentions. On July 9, 1984, Jack Anderson said of Volcker's meetings with high Treasury officials, “One of them, asked if he could recall anything Volcker had said during the high-level meetings, thought a moment and replied, ‘I can't remember anything he said that I understood'.”
Sen. Moynihan noted in the New Republic, Dec. 31, 1983,
“The Fed does not control the precise money supply and cannot precisely determine interest rates. But it can set the direction and range for both, and this it did. Anyone who tried to dissent was soundly rapped. Its two dozen or so central bankers decided to bust the economy, and bust it they did.”Paul Craig Roberts writes in Businessweek, Feb. 27, 1984,
“Whatever Volcker's intentions, the empirical data show that there has been a deceleration in money growth since last spring and that the Fed has been using open market operations to keep interest rates up.... What concerns the financial markets is the eclipse of Reagan's policies by Volcker's.... the most likely result will be higher taxes and higher deficits.”Nevertheless, the press and the Democrats attack Reagan as responsible for the deficit, over which he has no control, and which Volcker creates.
The New York Times stated that whoever won the election in Nov. 1984, it has already been decided that taxes will be increased by $100 billion. Here again, why have an election of elected officials who have no influence in economic affairs ? Brunner recently interviewed Walter Wriston, retired head of Citibank, who said,
“I have been through the Fed's actions for the past fifteen years in detail – the Fed has exercised a malign influence on the economy of this country. Its interference in the financial markets of America over the last decade has resulted in persistently excessive money growth, inflation which undermined the financial strength of U.S. corporations owing to the combined inflation and excessive rates of taxation, and record debt.”Forbes pointed out June 20, 1983 in a story about “Tony” Solomon, “Solomon may be the most important man in the Federal Reserve System after the chairman, and what he says and does has an effect upon us all.”
Perhaps you have never heard of “Tony” Solomon. Certainly you have never voted him into any office, yet what he says and does has an effect upon us all. He is the chairman of the Federal Reserve Bank of New York, a post formerly held by Paul Volcker. This bank represents the New York money market in the Federal Reserve System. Fifty-three per cent of its stock is held by five New York banks whose controlling influence is the London House of Rothschild.
The chairman of the FRBNY sits permanently on the FOMC at the right hand of the chairman of the Board of Governors. Sec. 12A of the 1913 Federal Reserve Act provided that five representatives of the 12 Federal Reserve Banks should rotate on the FOMG. This was quietly amended in August 1943, while World War II was raging, to read, “one elected annually by the board of directors of the Federal Reserve Bank of New York” replacing the provision that “one should be elected annually by the boards of directors of the Federal Reserve Banks of Boston and New York”. FRBNY is now the only Federal Reserve Bank with a permanent seat on the FOMC. The American public was never informed of this change.
CHAPTER 4: THE BUSINESS OF AMERICA
U.S. business and financial ties to European financiers
U.S. business and financial ties to European financiers
The Seven Men
The Federal Reserve Bank of New York
National City Bank of New York (Citibank)
National City Bank of Cleveland
First City National Bank of Houston
J. P. Morgan and George Baker
Brown Brothers Harriman
The Warburgs and Kuhn, Loeb Co.
Other Power Brokers
The Seven Men
John Moody, author of many standard reference works on American finance, stated in McClure’s Magazine, Aug., 1911, “The Seven Men,”
“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 Stillman, 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 Co., to the so-called Standard Oil National City Bank group ... the central machine of capital extends its control over the U.S..... The process is not only economically logical; it is now practically automatic.”What was true in 1911 is even more true in 1984; the seven men are now, as then, merely American agents for London interests. In 1919, Moody wrote in “Masters of Capital”,
“All of the great bankers began as dry goods traders, including Junius S. Morgan.”Beebe Morgan was a dry goods house. J.M. Beebe Co. of Boston made Junius S. Morgan a partner. Junius Morgan was later invited to join George Peabody & Co. of London, which handled most of the House of Rothschild’s trading in American stocks. Junius Morgan’s son, J.P. Morgan, later changed the name of the firm to J.P. Morgan & Co., but it continued to one of three representatives of the House of Rothschild in the U.S., the others being Kuhn, Loeb & Co. and August Belmont.
The Morgan group and the National City Bank group held a secret meeting at Jekyl Island, Ga. the week of Nov. 22, 1910 to consolidate their financial power. Present were
- Sen. Nelson Aldrich (his daughter married John D. Rockefeller Jr.), his private secretary, Shelton,
- A. Piatt Andrews, Asst. Sec. of the Treasury,
- Frank Vanderlip, president National City Bank,
- Henry P. Davison, J.P. Morgan’s righthand man,
- Charles D. Norton, pres. First National Bank of New York,
- Benjamin Strong of Liberty Natl. Bank (he later married the daughter of the president of Bankers Trust, became president of Bankers Trust, and chairman of the Federal Reserve Bank of New York) and
- Paul Warburg, a German immigrant who had joined Kuhn, Loeb & Co.
To enact the Federal Reserve Act into the law of the land, the bankers elected Woodrow Wilson president of the U.S. in 1912 by splitting the Republican Party, defeating the popular William Howard Taft by financing Theodore Roosevelt’s malicious Bull Moose third party candidacy.
Wilson’s academic career at Princeton had been financed by gifts from Cleveland H. Dodge, director of National City Bank, and Moses Taylor Pyne, grandson and heir of the founder of National City Bank. Wilson then signed an agreement not to go to any other college.
The Federal Reserve Act was legislated through Congress as the Glass-Owen bill, backed by two Democrats, Congressman Carter Glass of Virginia, and Sen. Robert Owen of Oklahoma. Owen was persuaded to back the bill by Samuel Untermyer, who had cultivated him while acting as counsel for the Pujo Money Trust investigation. Untermyer flattered Owen by entertaining him at Greystone, his palatial Hudson River estate. Untermyer claimed to be a “progressive Democrat”, although he lived in feudal splendor, employing 167 men to tend his expanse of orchids and greenhouses. At Greystone, Owen dined with Paul Warburg, Bernard Baruch, and other financiers who had been instructed to get the Federal Reserve Act passed. Owen, a former Indian agent who knew little about finance, was easily persuaded by Paul Warburg’s doctrinaire pronunciamentos about “our antiquated banking system”, which must be brought up to par with the more modern banking system of Europe.
The Federal Reserve Bank of New York
After the Federal Reserve Act had been passed by Congress and signed into law by President Woodrow Wilson, six New York banks controlled by the Morgan-Standard Oil group bought controlling interest of the Federal Reserve Bank of New York, which they have held ever since. The May 19, 1914 organization chart of the Federal Reserve Bank of New York shows that of the 203,053 shares issued,
- National City Bank took 30,000 shares;
- the Morgan-Baker First National Bank took 15,000 shares. These two banks merged into the present Citibank in 1955, giving them one-fourth of the shares in the Federal Reserve Bank of New York. The $134 billion Citicorp is now the largest bank in the U.S.
- The National Bank of Commerce of which Paul Warburg was a large shareholder, took 21,000 shares;
- Hanover Bank (now Manufacturers Hanover, of which Lord Rothschild is a director,) took 10,200 shares;
- Chase National Bank took 6000 shares;
- Chemical Bank took 6000 shares.
[National City and First National] merged into the present Citibank in 1955, giving them one-fourth of the shares in the Federal Reserve Bank of New York. The $134 billion Citicorp is now the largest bank in the U.S.
The Federal Reserve System printout of shareholders July 26, 1983 showed that they now own 53%, as follows:
- Citibank 15%;
- Chase Manhattan 14%;
- Morgan Guaranty Trust 9%;
- Manufacturers Hanover 7%;
- Chemical Bank 8%.
- Citicorp Citibank is No. 1 in size in the U.S.
- No. 3 is Chase Manhattan with $82 billion assets;
- No. 4 is Manufacturers Hanover, $64 billion;
- No. 5 is J.P. Morgan, $58 billion;
- No. 6 Chemical Bank.
- No. 11 is First Chicago, formerly First National Bank of Chicago, controlled by the Baker-Morgan interests.
“Next to Baker and Son, Morgan & Co. is the largest stockholder of First National (of New York), owning 14,500 shares; Baker and Morgan together own 40,000 of the 100,000 shares of First National Bank.”The New York Times, Sept. 3, 1914, at the time of the Federal Reserve stock was being sold, showed the principal stockholders of these banks as follows:
- National City Bank – 250,000 shares of which James Stillman owned 47,498; J.P. Morgan & Co., 14,500; W. Rockefeller 10,000; M.T. Pyne 8267; Percy Pyne 8267; J.D. Rockefeller 1750; J.S. Rockefeller 100; W.A. Rockefeller 10; J.P. Morgan Jr. 1000.
- National Bank of Commerce, 250,000 shares – George F. Baker 10,000; J.P. Morgan Co. 7800; Mary W. Harriman, (widow E.H.) 5650; Paul Warburg 3000; Jacob Schiff 1000; J.P. Morgan Jr. 1100.
- Chase Natl. Bank – George F. Baker 13,408.
- Hanover Natl. Bank – James Stillman 4000; William Rockefeller 1540.
CITICORP 97 directoratesThis centralized control over American industry by five New York banks controlled from London suggests that instead of 130 major U.S. corporations, we may have only one, which in itself is an outpost of the London Connection.
J.P. MORGAN CO. 99 directorates
CHEMICAL BANK 96 directorates
CHASE MANHATTAN 89 directorates
MANUFACTURERS HANOVER 89 directorates
National City Bank of New York (Citibank)
In the early 19th century, the House of Rothschild established a number of affiliates in the U.S. which carried the code identification of City banks, or City companies, identifying them as originating in the financial centre, the City of London. The City Bank was established in New York in 1812, in the same room in which the Bank of the United States had operated until its charter expired.
Later called the National City Bank, its principal for fifty years was Moses Taylor, whose father had been a confidential agent for John Jacob Astor and British intelligence. Like the Morgan-Peabody operation, Moses Taylor doubled his fortune in the Panic of 1837 by purchasing stock in the depressed market with capital advanced by N.M. Rothschild of London. During the Panic of 1857, while many of its competitors failed, City Bank prospered. Moses Taylor purchased the outstanding stock of Delaware Lackawanna Railroad for $5 a share during the panic. Seven years later, it was worth $240 a share. He was now worth $50 million.
His son-in-law, Percy Pyne, had come from London to work at City Bank, and married Taylor’s daughter. When Taylor died in 1882, he left $70 million. His son-in-law, now paralyzed, became president of the now National City Bank. John D. Rockefeller’s brother William invested in the bank, and persuaded Pyne to step aside in 1891 in favor of James Stillman, Rockefeller’s associate, to become president. William’s son William married Stillman’s daughter Elsie; his other son Percy married Stillman’s daughter Isabelle. James Stillman also had a London connection – his father, Don Carlos, had been a Rothschild agent in Brownsville, Texas and a successful blockade runner during the Civil War.
The National City Bank acquired several subsidiaries in New York, the National City Co., later renamed the City Co., and City Bank Farmers Trust Co.
The dominance of the Morgan-Kuhn Loeb financial power in New York is shown by a Dow Jones report in the New York Times Feb. 11, 1928 that of total offerings of bonds in 1927, J.P. Morgan was first with $502,590,000; National City Co. was second with $435,616,000; Kuhn Loeb was third with $423,988,000.
On July 3,1929, the New York Times noted that Charles A. Peabody had joined the boards of National City Co. and City Bank Farmers Trust.
On Aug. 4, 1932, the New York Times stated that National City Bank would issue its own currency against U.S. bonds carrying the circulatory power under the new Federal Home Loan Bank Act which empowered National City Bank to issue up to $124 million in currency. The National City Bank had now become a “bank of issue”, a function formerly reserved to central banks.
On June 8, 1933, James H. Perkins, chmn National City Bank, announced the National City Co., would change its name to City Co. of New York. On Nov. 21, 1933, the National City Bank listed 31 affiliates including City Bank Farmers Trust, City Co. of New York, City Co. of Massachusetts, 44 Wall St. Co. and Cuban Sugar Plantations Inc.
On March 3, 1934, the New York Times announced that National City Bank would sell the National Bank of Haiti, a wholly owned subsidiary, on April 29, 1934. The Times also noted that National City Bank had organized United Aircraft Feb. 2, 1934, and that its subsidiary, City Bank Farmers Trust had celebrated its 112th anniversary on Feb. 28, 1929.
On June 27, 1934, the City Co. of New York was designated German bond scrip agent in the U.S. On May 22, 1933, City Co. of N.Y. announced its merger with Brown Bros. Harriman, with Joseph Ripley as chairman of the board. The company went through several name changes as Brown Harriman Co., Harriman Ripley, and is now Brown Bros. Harriman once more.
On March 4, 1934, Gen. Billy Mitchell, addressing the Foreign Policy Association, stated that National City Bank and its affiliates control aviation in this country. Allen W. Dulles, introduced as a “specialist in international affairs” announced the profits of international munitions makers were unconscionable.
On March 2, 1955, National City Bank announced it would purchase the stock of First National Bank for $165 million, $550 a share (in the 1929 boom, First National sold for $8600 share). Some market analysts believed the stock should have brought $750 a share in the 1955 sale, suggesting that the Baker family was no longer able to protect its interests. The resulting Citibank became the largest bank in the U.S., with a controlling interest in the Federal Reserve Bank of New York. National City Bank had been in Hong Kong for eighty years; it has a $90 million Citibank Centre there. In 1983, 4% of its annual profits came from the Hong Kong operation, which is the center of the world’s drug trade.
National City Bank of Cleveland
Besides its controlling interest in the Federal Reserve Bank of New York, the Rothschilds had developed important financial interests in other parts of the United States. The House Banking and Currency Committee Report May, 1976, “International Banking”, p. 60, identified the Rothschild Five Arrows Group and its present five branches:
- N.M. Rothschild & Sons Ltd. London;
- Banque Rothschild, France;
- Banque Lambert, Belgium;
- New Court Securities, N.Y.;
- Pierson, Holdring & Co., Amsterdam.
- National City Bank of Cleveland;
- First City National Bank of Houston (First City Bancorp); and
- Seattle First National Bank.
In 1900, Cleveland was the home of Marcus Alonzo Hanna (known as Mark), the legendary political boss of the Republican Party. He twice nominated and elected an Ohio Congressman, William McKinley, to the Presidency of the U.S. He initiated the checkoff system by which banks and corporations were required to make regular political contributions. Hanna founded two companies; M.A. Hanna Co., and Hanna Mining Co., which acquired large steel and iron holdings.
In 1953, President Eisenhower named George Humphrey Secretary of the Treasury. Humphrey, president of M.A. Hanna Co., was also chmn National Steel Co. (recently acquired by Nippon Kokan, a Japanese concern); director of Sun Life Assurance Co. (Rothschild), Industrial Rayon Corp., the world’s largest manufacturer of auto tire cord (L.L. Strauss of Kuhn, Loeb Co. controlled the firm; Harry Byrd Jr. was also a director.
Humphrey was also a director of the National City Bank of Cleveland. Other directors of this bank were
- C.T. Foster, chmn Standard Oil of Ohio;
- J.A. Greene, chmn Ohio Telephone Co.;
- L.L. White, chmn Chicago & St. Louis Rwy.;
- R.A. Weaver, chmn Ferro Corp.;
- J.B. Ward, President Addressograph Co.;
- H.B. Kline, President Industrial Rayon Corp.; and
- William McAfee, director Standard Oil of Ohio.
In 1978, George Humphrey’s son, Gilbert W., was chmn Hanna Mining Co., director National City Bank of Cleveland, Sun Life Assurance, National Steel, Massey Ferguson, General Reinsurance, and St. John del Rey Mining Co. M.A. Hanna Co. the holding company, was liquidated in 1965, and its $700 million assets distributed to its stockholders.
The National City Bank of Cleveland’s influence was not limited to the Hanna and Humphrey families. As the Ohio Connection of the House of Rothschild, it guided the careers of two of the nation’s best known families, the Tafts and the Rockefellers. The bank financed the Taft family’s activities in politics and business, the Taft Broadcasting Co. and other firms. John D. Rockefeller’s success began when he obtained the backing of the National City Bank of Cleveland to finance his takeover of his competitors in the oil business.
Because J.P. Morgan and Kuhn, Loeb Co. controlled 95% of all railway mileage in the U.S. in the latter half of the 19th century, they offered Rockefeller special rebates on shipping oil through his holding company, South Improvement Co. This enabled him to undersell and ruin his competitors. One of them was a Mr. Tarbell, whose daughter, Ida Tarbell, later wrote the first expose of Standard Oil and was termed a “muckraker” by Theodore Roosevelt, a term which promptly went into the language. The entire Rockefeller empire was financed by the Rothschilds.
When Lincoln Steffens became a Wall Street reporter, he interviewed both J.P. Morgan and John D. Rockefeller on several occasions. He soon realized that these gentlemen, powerful though they were, were mere front men. He noted that
“No one ever seems to ask the question ‘who is behind the Morgans and the Rockefellers ?’”No one else ever asked the question, nor did anyone answer it ! Steffens knew the money for their operations was coming from someone else, but never managed to trace it.
In February 1930, one of the few articles on the Rothschilds ever to appear in an American magazine appeared in Fortune, which stated,
“On only one important point did the Rothschilds guess wrong. They never would have anything to do with the U.S. of America. Imagination falters at what the Rothschilds might be today if they had spent on the infant industries of this country one-half the sums they poured into Imperial Austria.”The Fortune writer did not know then and probably never knew that the Rothschilds have always controlled the Morgan and Rockefeller operations, as well as the foundations set up by these front men to control the people of the United States.
During the past quarter of a century, many writers have published alarming exposes of the Rockefellers and their control of the U.S. through the Council on Foreign Relations. In 1950, the New York Times carried a small notice on an inside page that L.L. Strauss, a partner of Kuhn, Loeb Co., had been appointed financial advisor to the Rockefeller brothers. In short, all their investments must be approved by a partner of Kuhn, Loeb Co. It has always been thus, beginning with Jacob Schiff.
Strauss held the position from 1950 to 1953, when it passed to J. Richardson Dilworth. Dilworth, who married Elizabeth Cushing, was a partner of Kuhn, Loeb Co. from 1946 to 1958, when he became director of Finances for the entire Rockefeller family, presiding over all their accounts on the 56th floor of Rockefeller Center. He held the position until 1981. He is now Chairman of the Board of Rockefeller Center, director of International Basic Economy Corp., Chrysler, R.H. Macy, Colonial Williamsburg and Rockefeller University.
The National City Bank of Cleveland continues to dominate Midwestern industry and politics. For many years, its primary law firm has been Jones, Day, Reavis and Pogue of Cleveland. The Washington Post announced Dec. 19, 1983 that this law firm was spending $5 million for office space in Washington to house a staff of sixty lawyers, making this Cleveland law firm one of the most potent lobbying groups in Washington.
Hanna Mining Co., despite relatively modest revenues of $333 million exercises an important role, as shown by its board of directors, including such distinguished names as
- Herbert Hoover Jr. (Under Secretary of State under Eisenhower & Dulles);
- Stephen D. Bechtel, chmn of Bechtel Group and director of J.P. Morgan Co.;
- K.L. Ireland of Brown Bros. Harriman;
- George F. Bennett, treasurer of Harvard University, and
- Nathan W. Pearson, financial manager of the Mellon family.
Despite the Hollywood image of redfaced Texas oil millionaires driving new Cadillacs, the Texan oil industry has for years been dominated by the London Rothschilds through the billion dollar First City National Bank of Houston, and its fifty-seven subsidiary Texas banks. Chairman of First City is James Anderson Elkins Jr., who is a director of Hill Samuel Co. of London, one of the seventeen merchant banks chartered by the Bank of England.
His father was chairman of First City, and founded the Texas law firm of Vinson and Elkins, the primary law firm of First City Bank. This firm dominated national politics through its most well known partner, John B. Connally, who achieved a reputation as “kingmaker” in Texas politics. He began as administrative assistant to Congressman Lyndon B. Johnson in 1949, then became attorney for the oil millionaire Sid Richardson, and Perry Bass, 1952-61, Secretary of the Navy 1961, Governor of Texas 1963-69; Secretary of the Treasury 1971-72. He was wounded in the Kennedy assassination in Dallas. He is now trustee of the Andrew Mellon Foundation, serves on the President’s Foreign Intelligence Advisory Board, and the Advisory Committee on Reforming the International Monetary System. He advised Nixon on devaluing the dollar and going off the gold standard in 1971. He is now director of Superior Oil, and Falconbridge Nickel Mines Ltd.
James Anderson Elkins is also director of Freeport Minerals, whose directors include some of the leading names in American business. Chmn of Freeport is Benno H. Schmidt, managing director of J.H. Whitney Co. Schmidt, who married into the wealthy Fleischmann family – (New Yorker magazine etc.) graduated from Harvard Law in 1941, became general counsellor of the War Production Baord in Washington 1941-42, and headed the Foreign Liquidation Commission 1945-46, which disposed of billions of dollars worth of property. He is also director of CBS, and Schlumberger, the huge oil field service firm who began business in 1928 when it was awarded its first contract by the Soviet Union – it is said to have important Anglo-Swiss intelligence connections. Other directors of Freeport Minerals are
- William McChesney Martin Jr., Chairman of the Federal Reserve Board 1951-1970, now director of J.P. Morgan U.S. Steel, Eli Lilly, General Foods, Royal Dutch Shell, IBM, American Express, Riggs National Bank, and Scandinavian Securities (the Wallenberg firm);
- Donald S. Perkins, of Morgan Guaranty Trust, Time magazine;
- John B. Madden, partner Brown Bros. Harriman;
- Godfrey S. Rockefeller; Norborne Berkeley Jr., director Uniroyal, and Anglo-Energy Ltd.
- Anne Armstrong, U.S. Ambassador to Britain 1976-77, co-chmn Reagan-Bush Campaign 1980, director of General Foods, General Motors, trustee Hoover Institution, Guggenheim Foundation, Atlantic Council, Council on Foreign Relations, Halliburton Co.;
- George R. Brown, director of Halliburton
The Brown-Johnson association began in 1940, when Johnson secured a lucrative contract for Brown & Root to build a large naval base at Corpus Christi, Texas; it was said then that any course chosen by Johnson would be paved by money from Brown & Root. J. Evetts Haley pointed out that Brown & Root prospered on government contracts after Johnson helped them and rapidly became a worldwide operation.
In 1940, the Internal Revenue Service found that large contributions given to Johnson by Brown & Root and its subsidiary, Victoria Gravel Co., as much as $100,000 each, were taken by Brown & Root as tax deductions. Haley states,
“Brown & Root were in control of Texas politics; that L.B. Johnson was in control of IRS; that records had been burned at IRS to get Brown off the hook in 1954. Johnson and Connally then picked up a government plant for a small sum which became a giant wartime contractor, the Sid Richardson Carbon plant at Odessa, Tex., in which Mrs. Lyndon B. Johnson had a one-fourth interest.”In 1955, Johnson suffered a major heart attack on his way to George Brown’s palatial Middleburg Va. estate.
As mentioned, Brown is a director of Halliburton, whose primary law firm is also Vinson & Elkins. In 1981, Halliburton had $8.3 billion revenues, 110,398 employees, and daily monitors most U.S. oil wells. In addition to George Brown and Anne Armstrong, directors of Halliburton include Lord Polwarth of Scotland, who is Governor of the Bank of Scotland, director of Canadian Pacific, Sun Life Assurance Ltd. and Brown & Root UK which interlocks with George Wimpey Ltd., the largest construction firm in England, through Brown & Root Wimpey Highland Fabricators.
Lord Polwarth, Henry Hepburne-Scott, is a descendant of James Hepburn, Earl of Bothwell, who was married to Mary, Queen of Scots. The first Baron Polwarth (1641-1724) was Sir Patrick Hume, first Earl of Marchmont, and William of Orange’s closest advisor. He accompanied William in 1688 on his voyage to take possession of the throne of England, and became his privy councillor, in which office he advised William to grant the charter of the Bank of England. He became a peer of Scotland 1689, Lord Chancellor of Scotland 1696-1702, and Earl of Marchmont 1697. He passed the Act of Succession on to the House of Hanover, and was reappointed by King George I.
John Pickens Harbin, president of Halliburton, is a director of Citicorp. Another director of Halliburton is William E. Simon, Secretary of the Treasury 1973-77. He is a director of Citicorp, Citibank, and United Technologies. As director of Citibank, he interlocks with Lord Aldington of London (Toby Low), who is also director of Ci[ibank and chairman of Sun Life Assurance, the keystone of the Rothschild fortune. Lord Aldington is chairman of Grindlay’s Bank, London, director of General Electric Ltd., Lloyd’s Bank, United Power Ltd., and National Discount Corp.
During a national “oil crisis” government officials complained they could not obtain any records from oil companies on production and reserves, yet Halliburton received this information on a daily basis.
As director of United Technologies, William Simon again interlocks with Citibank, the only corporation which has four officers on the board of directors of Citibank – Harry Gray, churn of United Technologies, Simon, William I. Spencer, who is president of Citibank, and Darwin Eatna Smith, chmn of Kimberly Clark.
Other directors of United Technologies are
- Robert F. Dee, chmn & CEO of the Smith Kline drug firm;
- T. Mitchell Ford, general counsel CIA 1952-55, now chmn of the $1.8 billion Emhart Corp., and director of Travelers Insurance;
- Richard S. Smith, exec. vice-pres. National Steel, was with First National Bank New York 1952-62, and treasurer of M.A. Hanna Co. 1962-63, and director of Hartford Fire Insurance, and Hartford Accident & Indemnity;
- Charles W. Duncan, Jr., dep. Sec. Defense, 1977-79, Sec. Dept of Energy 1979-81, chmn Coca Cola International, chmn Coca Cola Europe, director Humble Oil Co.;
- Melvin C. Holm, pres & CEO Carrier Corp., director N.Y. Telephone, Mutual of New York SKF Industries;
- Antonia Chandler Hayes, wife of Abram Hayes, who was law clerk to Felix Frankfurter, later joined Covington & Burling, Washington 1952-55, wrote the Democratic Natl. Platform 1960, legal adviser Sec. of State 1961-64, director of foreign policy Democratic Natl. Committee 1972;
- Jacqueline Wexler, pres. Webster College 1965-69, pres. Hunter College since 1969, leader of the feminist movement; and
- Robert L. Sproull, with the Dept. Defense 1963-65, pres. Univ. of Rochester since 1970, lecturer at NATO, director of Xerox, General Motors, pres. Telluride Assn.
Other directors of Halliburton Corp. include
- James W. Glanville, former ptnr. Lehman Bros. and Lazard Freres, was with Humble Oil 1945-59, Lehman Bros. 1959-78, had been with Lazard Freres since 1978, and is director of International Mining & Chemical Co. Other directors of Lazard Freres include its senior partner, Michel David Neill, head of the Paris house of Lazard Freres;
- Donald C. Cook, SEC financial examiner 1935-45, director Office of Alien Property Custodian for Dept. of justice, 1946-47, commissioner SEC 1949-53, and is now director of ABC, Amerada Hess, chmn of the board American Electric Power and director of General Dynamics, the defense oriented firm;
- Felix Rohatyn, horn in Austria, came to U.S. 1942, married Jeannette Streit, daughter of Clarence Streit, head of Union. Now with England; Rohatyn joined Lazard Freres in 1948, is director of Schlumberger, MCA, American Motors, Owens Illinois, Engelhardt Mining & Chemical, Pfizer, ITT, and Rockefeller Bros. Fund; he is chmn Municipal Assistance Corp., which bailed New York City out of its approaching bankruptcy;
- Frank C. Zarb, asst. to President of the U.S. 1974-77, administrator Federal Energy Administration 1974-77, now director of Philbro Corp., Engelhard Mining & Chemical, and the Energy Fund.
- W.Michael Blumenthal, Secretary of the Treasury 1977-79, who interlocks with the axis through Chemical Bank, Equitable Life and the Rockefeller Foundation;
- Robert B. Anderson, Secretary of Treasury 1957-61, partner of the law firm of Stroock Stroock & Lavan which administers the Warburg family finances, and interlocks with this group through Equitable Life, ITT and PanAm;
- G. William Miller, chmn Federal Reserve Board of Governors 1978-79, Secretary of the Treasury 1979-81, interlocks with this group through Textron and First City Bancorporation, was chmn of U.S.-U.S.S.R. Trade & Economic Council, now director of Federated Dept. Stores whose directors include three directors of Chase Manhattan Bank and interlocks with Citibank and Kuhn, Loeb Co.
The May 1976 staff rept. of the House Banking & Currency Committee noted another Rothschild affiliate (p.60), “The Rothschild banks are affiliated with Manufacturers Hanover of London (in which they hold 20% interest, a merchant bank, and Manufacturers Hanover Trust of N.Y.” Manufacturers Hanover recently bought the giant CIT Financial Corp. for $1.6 billion in October, 1983.
J. P. Morgan and George Baker
Despite his reputed wealth, the elder J.P. Morgan did not leave one of the great American fortunes when he died in 1913; it was first estimated at $75 million, then 50, and finally disclosed there were only $19 million of securities in the entire estate, of which $7 million was owed to the art dealer Duveen. J.P. Morgan Jr. (known to a very few intimates as Jack) was embarrassed to find he had to sell off many of his father’s art treasures to pay the debts of the estate. Most of the huge sums handled by J.P. Morgan went directly to the Rothschilds. In 1905, the New York Times noted in its obituary of Baron Alphonse de Rothschild that he possessed some $60 million in American securities, although the Rothschilds, according to most financial authorities, had never been active in American finance.
Lincoln Steffens noted,
“Senator Aldrich is a great man to me; not personally, but as leader of the Senate. He, Aldrich, bows to J.P. Morgan. The other day J.P. Morgan came to Washington, and he and I and Aldrich had a conference. And I noticed how he, Morgan, addressed himself to me, not to Aldrich. Morgan talked to me, while I talked to Aldrich, who talked to Morgan.”Morgan’s partner, George W. Perkins, worked furiously to obtain Theodore Roosevelt’s nomination as McKinley’s running mate. During Roosevelt’s presidency, his closest advisor was George W. Perkins. Despite Roosevelt’s nickname of “trustbuster”, he protected Morgan’s interests throughout his term of office. His successor, William Howard Taft, was opposed to Morgan, and introduced anti-trust legislation to control two Morgan trusts, International Harvester and U.S. Steel. Perkins then created the Progressive Party in 1912 to split the party and defeat Taft.
J.P. Morgan’s apex of power was attained in the Panic of 1907, when he assumed control of Wall Street. Oakleigh Thorne, president of the Trust Co. of America, a victim of the “panic”, testified before a Congressional Committee that his bank had been subjected to only moderate withdrawals, that he had not applied for help, and that it was Morgan’s ‘sore point’ statement alone that had caused the run on his bank...... “that Morgan interests took advantage of the unsettled conditions during the autumn of 1907 to precipitate the panic, guiding it shrewdly as it progressed so that it would kill off rival banks and consolidate the preeminence of the banks within the Morgan orbit.”
Morgan’s financial power came from control of the enormous cash flow of the nation’s biggest life insurance companies. He gained control of Mutual Life, New York Life, Metropolitan Life, and with George F. Baker and James Stillman, bought controlling interest in Equitable from Thomas Fortune Ryan, who had acquired it from the Hyde family. Hyde originally set Equitable up while acting as a front for Jacob Schiff and James Speyer.
On June 7, 1933, Nation noted “J.P. Morgan is generally regarded as the most prominent banker in the world.” Paul Y. Anderson mentioned in this article that testimony before the Senate Banking Committee showed that Morgan and his partners, including Thomas W. Lamont and E.T. Stotesbury, paid no federal income tax in 1931-32; the partners paid a total of $48,000 in 1930. Anderson remarked,
“Is there any mystery as to why the Marines were despatched against Haiti, San Domingo, and Nicaragua when those countries defaulted, or threatened to default, on the debt payments to American banks ? It has been shown that the Morgan firm had a certain selected list of ‘clients’ to whom it sold stock at figures substantially under market prices. In the case of the Allegheny Corp. these fair-haired boys got the stock at 20, when the market was 35.”Anderson pointed out that these fortunate few could have sold the stock immediately for almost double what they had paid. Among the recipients of these Morgan favors he listed Senator McAdoo, Justice Owen Roberts, Secretary Woodin, Owen D. Young, and John J. Raskob.
In Nation, June 21, 1933, Anderson continued,
“When Ft. Sumter was fired on, gold began to leave the country. The man who later said ‘Don’t sell America short’ then took a flyer on the short side of America. He borrowed 2 million in gold coins and shipped it to London. This was really a blow behind the lines. Then he went to the ‘gold room’ to watch the effect. There was a scramble for gold to pay commitments abroad and this patriotic American with 2 million in eagles in London sold at his own price.”In March, 1929, perhaps in preparation for the coming storm, two Morgan banks merged, the National Bank of Commerce, which, according to the New York Times had “important foreign connections”, and Guaranty Trust, forming a $2 billion institution. On Feb. 26, 1929, the New York Times noted, “The Guaranty Trust has long been known as one of the ‘Morgan group’. The National Bank of Commerce has also been identified with Morgan interests.”
J.P. Morgan’s longtime associate, George Fisher Baker, was one of the founders of First National Bank, purchasing 30 shares in 1863 for $3000. He also was cashier, and later became president. Sheridan A. Logan’s book, “George F. Baker and his Bank”, privately printed, 1981, noted that
“a European syndicate headed by N.M. Rothschild was represented in New York by August Belmont and First National Bank to refund the Government debt. Baker wrote a letter Aug. 29, 1876, ‘I have to advise you that our negotiations with the Treasury Dept. resulted in a contract between Messrs. N.M. Rothschild & Sons and others and the Secretary of the Treasury for the purpose of forty million dollars of U.S. 4½ per cents of 1891, with an option on the remainder, $260 million. In this contract the bank participated to the extent of 10%, $4 million.”Logan also states that
“In 1901 Baker sold to J.P. Morgan $23 million stock in Central Railroad of New Jersey. The mutual confidence and respect which developed between Mr. Baker and Mr. Morgan cemented their increasingly close relationship and the First National Bank became more and more the unswerving ally and valuable source of mobile funds for the work of J.P. Morgan & Co.”In 1901, Baker increased the stock of First National Bank from $500,000 to $10 million by a 1900% stock dividend. He organized First Security Co., a holding company, with this dividend. During the 1929 boom, Baker’s personal fortune reached the $500 million mark. His son, George Jr. pleaded with him to pay of the $29 million owed on stocks in First Security’s $80 million portfolio. Baker, then 89 years old, had not been informed of the planned credit contraction, possibly because the insiders feared he might gossip about it. He continued to refuse to sell any stocks; the crash of 1929 reduced his fortune to $200 million.
When he died in 1931, the estate was appraised at $73 million; his son, George Jr. inherited $30 million. His health had been shattered by the strain of working with his father during the desparate days of 1929, and he died of a heart attack in Honolulu, aged 59. His son, George F. III was found shot at Horseshoe Plantation, Fla. in 1977. George III’s son, Grenville, was found shot at Tallahassee, Fla. in 1949, at age 33. George Jr.’s daughter, Edith Brevoort Baker, married Jacob Schiffs grandson, John Mortimer Schiff, in 1939, uniting two of America’s largest fortunes. George Baker I’s daughter Florence had married Howard Bligh St. George in 1891, member of one of England’s oldest families. Their granddaugher Priscilla married Angier Biddle Duke in 1937, and second, Allen A. Ryan Jr. in 1941, a relative of the Delanos.
In 1935, Gen. Smedley D. Butler wrote in the Nov. issue of Common Sense of his Marine career,
“I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in.... I helped purify Nicaragua for the international banking house of Brown Bros. in 1909-12. In China in 1927 I helped see to it that Standard Oil went its way unmolested. In 1899 J.P. Morgan floated the first important foreign loan on behalf of the Mexican Government. In 1901 he lent $50 million to the British Government to fight the Boer War. But it was mainly into the countries of Spanish America that American capital found its way.”Butler continued his revelations in the Dec. 1935 issue,
“In 1910, six months after the Nicaraguan Revolution which ousted President Zelaya, his successor, Dr. Madris, grew cold towards the Nicaraguan investments of Brown Bros. and Seligman Co. Another revolution immediately ‘occurred’.”Butler mentions the Latin American activities of Brown Bros., now Brown Bros. Harriman, a firm little known to most Americans. In 1801, a linen auctioneer from Belfast, Alexander Brown, established a banking house, Alexander Brown & Co. in the slavetrading port of Baltimore. It is now the oldest banking house in the U.S. Its English branch, Brown Shipley, also became influential, its most wellknown member being Lord Montague Norman, Governor of the Bank of England for many years, 1907-44, longer than any other man in history. Current Biography 1940, noted, “There is an informal understanding that a director of Brown Shipley should be on the board of the Bank of England and Norman was elected to it in 1907.”
Brown Brothers Harriman
In expanding Rothschild investments in U.S. railroads, Kuhn, Loeb Co. found a useful agent in E.H. Harriman. A young man on the make, Harriman married the daughter of the president of a small New York railroad, and soon looked for more worlds to conquer. George Redmond writes in “Financial Giants of America”
“He (Harriman) early won the confidence of Kuhn, Loeb Co. and established relations which later became most advantageous to both.”Kuhn, Loeb financed the Union Pacific takeover by Harriman. H.J. Eckenrode notes in “E.H. Harriman”,
“In his takeover of UP, Harriman had behind him tremendous financial force – not only Kuhn, Loeb Co. with funds from Frankfurt and Berlin, but the National City Bank, ‘the greatest source of cash in the country’.”Harriman employed judge Robert Scott Lovett as general counsel for Union Pacific. When Harriman and Otto Kahn were summoned by the ICC in 1897, Lovett advised them to refuse to answer all questions about their stock operations. In 1908, the Supreme Court upheld their refusal to talk. The records of this case, SC No. 133 US v. UP RR, later disappeared from the Library of Congress. In 1911, the Equitable Life Insurance building, which contained all the records of the UP RR, burned, destroying all UP papers to that date.
Lovett’s son, Robert Abercrombie Lovett married Adele Brown, daughter of a partner of Brown Bros. and became partner in 1926. He was Special Asst. Sec. of War 1940-45, under secretary of state, 1947-49, dep. secretary of Defense 1950-51, secretary of Defense 1951-53. It was Lovett who took the then Secretary of Defense James Forrestal, of Dillon Read Co. to Fishers Island to persuade him to change his stand against U.S. Middle Eastern policies. Forrestal refused, and was placed in a mental ward at the National Institute of Health, where he fell out of the window. Lovett then replaced him as Secretary of Defense.
Brown Bros. backed the B & O steamship line in 1887, and went into joint venture with J & W Seligman Co. on a number of South American loans. In 1915, Brown Bros. combined with J.P. Morgan to float a series of Latin American loans, which in many instances were followed by revolutions in the respective countries. In the Nation, June 7, 1922, Oswald Garrison Villard noted, “The Republic of Brown Bros with J & W Seligman had reduced Haiti, Santo Domingo, and Nicaragua to the status of colonies with ruinous loans. Most of the loans were repaid in 1924.”
In 1931, W. Averell Harriman, son of E.H. Harriman, merged his banking house, W.A. Harriman & Co. with Brown Bros. to form the present firm of Brown Bros. Harriman. In 1933, Brown Bros. Harriman backed the expansion of CBS, in which they have maintained a large position. The Brown Bros. firm occupied offices on the corner of Wall Street and Hanover which had been occupied by J.L. & J.S. Joseph Co., the American representatives of the Rothschilds. Josephs went broke in the Panic of 1837, having been cut loose by the Rothschilds, who were now operating through August Belmont and George Peabody & Co.
W. Averell Harriman brought to the new firm his vice president, Prescott Sheldon Bush, who had been with him since 1926. Bush became chairman of the Board of Pennsylvania Water & Power Co., director U.S. Rubber, PanAm, CBS, Dresser Mfg Co. Vanadium, U.S. Guaranty, Prudential Insurance and partner Brown Bros Harriman. He was chmn National War Fund 1943-44 and chmn USO. His son George Bush is now vice president of the U.S.
George Herbert Walker, grandfather of George Bush, who was named after him, became president of W.A. Harriman Co. in 1928 (now Brown Bros. Harriman). He was director of Belgian-American Coke Ovens Corp., chmn Habershaw Cable Corp., chmn International Great Northern Railway, director Certain Teed Products, American Shipping & Commerce Corp., American International Corporation, Cuba Railway Co., Pennsylvania Coal & Coke. He was the donor of the Walker Cup, the prestigious golf trophy, and president of the U.S. Golf Association. In 1925, he financed the building of Madison Square Garden. His son, George H. Walker Jr. became chmn Walker-Bush Oil Corp., and Zapata Petroleum (George Bush’s firm), Silesian Holdings, with W.A. Harriman Citv Investing Corp., Westmoreland Coal. Co. and West Indies Sugar Co. He is a trustee of Yale. George H. Walker III merged the firm of G.H. Walker Co. with Laird & Co. and White & Weld in 1974. He is now a senior vice pres. of White & Weld.
Harriman was the go-between of Churchill and Roosevelt’s World War II alliance. The two leaders did not know or particularly like each other; each of them conferred with W. Averell Harriman about how to talk to the other, and carefully followed his advice.
W.A. Harriman served as U.S. Ambassador at large during World War II, principally in Moscow with Stalin; his brother E. Roland was president of the American Red Cross; [partner] Robert A. Lovett was Secretary of Defense. Harriman was related by marriage to Wild Bill Donovan, founder of the OSS.
Brown Bros has always maintained close relations with British firms. James Brown, partner from 1935-50 was director Northern Assurance of London, Sun Insurance, pres. British Empire Club and National Bank of Nicaragua. Thatcher M. Brown, another partner, was director of Manchester Land Co., National Bank of Nicaragua, chairman of the board of Liverpool and London Insurance Co. Ltd., Globe Indemnity Co., Royal Insurance, British and Foreign Marine Insurance Ltd., American London & Empire Co., Ocean Accident & Guaranty of London, and Thames & Mersey Marine Insurance Co.
The New York Times noted May 29, 1928:
"Dr. Rudolf Roesler, representative of the New York banking house of Brown Bros. said Germany for a number of years to come would be a borrowing nation. Brown Bros. had loaned the City of Berlin $15 million on 6% 30 yr. bonds and Mr. Roesler, who completed details of the transaction said that 'it was the biggest loan to a city in Europe since 1914'."The New York Times later noted:
"Word was received here yesterday by J. Henry Schroder Banking Corp., representative in the U.S. for Capt. Alfred Lowenstein, that a corporation organized by the Belgian capitalist and French associates, whom it has offered the public in Paris, had been oversubscribed twenty-five times."The holding company for artificial silk shares was offered at $117.50 and promptly went to $200. This good news was somewhat palled by the Times report that a syndicate had been formed to handle this stock since:
"Capt. Alfred Lowenstein whose reported death through a fall from an airplane in the English Channel July 4th has been surrounded by mystery. J. Henry Schroder is to purchase $25 million of bonds of International Holding and Investment Corp. through Albert Pam, of J. Henry Schroder London, and Albert Svarvasy, head of British Foreign and Colonial Corp., British investing company."The July 5, 1928 New York Times headlined: "CAPT. LOWENSTEIN FALLS FROM PLANE. Known as Mystery Man." Alfred Lowenstein was known as a Croesus.
"The 'mystery man of Europe', the successor to Sir Basil Zaharoff as a man of mystery, in European finance. The pilot informed the authorities that while the plane was crossing the sea, Capt. Lowenstein, wishing to go to the washroom, opened the wrong door and fell out. His valet and two stenographers as well as the pilot and mechanic of the plane were present, but did not notice what happened."The story added that Lowenstein owned eight villas in Biarritz, an estate in Lancashire, a castle in Brussels, and a townhouse in London.
Informed observers believed it was Zaharoff himself who dethroned the pretender to his title as "mystery man of Europe". Lowenstein had become involved in a desperate struggle with Zaharoff and his associate, Dreyfus Clavell, to control the artificial silk industry in Europe. After Lowenstein's accident, his two associates in this struggle also died mysteriously. M.M. Ayrich had an automobile accident on a deserted road, with no witnesses. Lowenstein's third associate, Prince Radziwill, was poisoned by a woman friend, according to a French journal, La Crapoulle.
W. Averill Harriman was 78 when his wife died. A year later, Katharine Meyer Graham, publisher of the Washington Post, invited him to a party to meet Pam Churchill, daughter of Lord Digby, an English horse fancier. She had been married to Randolph Churchill, and was mother of the present Winston Churchill. She then married into the first family of Hollywood, producer Leland Hayward, formerly married to actress Margaret Sullavan. In Haywire, her autobiography, Brooke Hayward describes her stepmother as "a cold-blooded golddigger who made off with her mother's jewels". Pam dated Elie de Rothschild before deciding to marry Harriman. They are now the dominant figures in the Democratic Party. Harriman has given $15 million to the Russian Institute at Columbia, (now the Harriman Institute).
Another prominent banking house is the firm of Dillon Read. Clarence Dillon (1882-1979) was born in San Antonio, Texas, son of Samuel and Bertha Lapowski or Lapowitz. He graduated from Harvard in 1905, married Anne Douglass of Milwaukee, whose father owned Milwaukee Machine & Tool Co. They went abroad from 1908 to 1910. Their son, C. Douglas Dillon, was born in Switzerland in 1909. In 1912, Dillon met William A. Read, founder of a well known Wall Street bond brokerage, through a Harvard classmate. They became partners. Read died suddenly in 1916, and Dillon bought control of the firm.
During World War I, Dillon served as Bernard Baruch's righthand man at the War Industries Board. In 1915, Dillon had set up American & Foreign Securities Corp. to finance the French Government's purchases of munitions in the U.S. His righthand man at Dillon Read was James A. Forrestal, who later died [under mysterious circumstances --ed] while serving as Secretary of Defense. Dillon Read played a crucial role in rearming Hitler during the preparation for World War II.
In 1957, Fortune Magazine listed Clarence Dillon as one of the richest men in the U.S. ($150-200 million). By normal growth rates, his son C. Douglas Dillon should be worth over $1 billion, but nobody knows. C. Douglas Dillon worked with John Foster Dulles on the Dewey campaigns, and served as Under Secretary of State, helping Bechtel Corp. obtain its first large Saudi Arabian contracts, which later became a $135 billion operation. Dillon was Ambassador to France 1953-57, later became Secretary of the Treasury. He was chairman of the Rockefeller Foundation from 1971-75, then chairman of the Brookings Institution. To organize his estate, he sold Dillon Read to the Bechtel Corp. He is considered to be one of the ten wealthiest men in the U.S. and one of the three most powerful.
The Warburgs and Kuhn, Loeb Co.
Second to the Rothschilds, the Warburgs were considered the most important international banking family of the 19th and 20th centuries. In 1798, two sons of Marcus Gumprich Warburg, Moses Marcus [Warburg] and Gerson W. [Warburg] founded M.M. Warburg Co. in Hamburg.
They were descendants of Simon von Cassel, a 16th century moneylender and pawnbroker. They were also direct descendants of Abraham del Banco, largest banker in Venice. When they moved north, they took the name of Warburg, after Cassel settled in this Westphalian town. In 1814, the Warburgs became one of the first affiliates of N.M. Rothschild of London. They were related to the leading banking families of Europe, the Rosenbergs of Kiev, the Gunzburgs in St. Petersburg, the Oppenheims and Goldschmidts in Germany. Moritz Warburg was apprenticed to the Rothschilds in Italy and Paris, and later married Charlotte Oppenheim, whose family were diamond merchants in Frankfort.
They had five sons, known as "the Five Hamburgers": the oldest, Aby, founded the Warburg Institute; Max financed the German struggle in World War I and later, the Nazi regime; Dr. Fritz Warburg was German commercial attache in Stockholm during World War I; Paul and Felix emigrated to America and joined the firm of Kuhn, Loeb & Co. with Jacob Schiff, who had been born in the Rothschild house in Frankfort. Paul wrote the Federal Reserve Act and saw it through Congress. He represented the U.S. at the Versailles Peace Conference, while his brother Max represented German interests.
The Memoirs of Max Warburg state, "The Kaiser thumped the table violently and shouted 'Must you always be right?', but then listened carefully to Max's view of financial matters."
M.M. Warburg Co. closed during World War II but reopened in 1970. George Sokolsky noted in "We Jews": "Even in Hitler Germany the firm of Max Warburg was exempted from persecution. Max left for the U.S. in 1939, unhampered by supposed restrictions on Jews."
The U.S. Naval Secret Service Report Dec. 2, 1918 noted:
"PAUL WARBURG. German, nationalized U.S. citizen 1911, decorated bv Kaiser, handled large sums furnished by German bankers for Lenin & Trotsky. Has brother Max who is director of espionage system of Germany."In partnership with Walter Teagle of Standard Oil, Paul Warburg organized the international dye trust, I.G. Farben and Agfa Ansco Film Trust. At the second annual convention of the American Acceptance Council, Dec. 2, 1920, President Paul Warburg said:
"It is a great satisfaction to report that during the year under review it was possible for the American Acceptance Council to further develop and strengthen its relations with the Federal Reserve Svstem."He did not add that as vice chairman of the Federal Reserve Board from 1914-18, he had organized the Federal Reserve System, or that he served as president of the Federal Advisory Council from 1918-27, which actually formulated policy for the Board. He was director of Union Pacific RR, B&O RR, National Railways of Mexico, Western Union, Wells Fargo, American IG Chemical, Agfa Ansco, Westinghouse, Warburg Banks in Amsterdam, London and Hamburg, and chairman of the board of International Acceptance Bank.
His brother Felix was chief financial banker of the Zionist Organization of America, Palestine Economic Corp., National Railways of Mexico, Prussian Life Insurance of Berlin, and many other companies. Felix's son Edward M.M. Warburg succeeded Gen. [Bill] Donovan as Coordinator of Information in 1941 and later served as special political advisor to Gen. Eisenhower at SHAEF, London during World War II. His other son Frederick was Herbert Lehman's righthand man in organizing the Lehman Corp., and was later known as "the foreign minister of Kuhn, Loeb" because of his many contacts around the world. He retired as a country gentleman at his estate Snake Hill, Middleburg, Va. His partner, Lewis L. Strauss had a magnificent estate nearby at Brandy Station, site of the Civil War engagement which was the largest calvary battle in U.S. history.
Dept. of Commerce figures show that Kuhn, Loeb controlled 64% of all railroad mileage in the U.S. in 1900, which dropped to a mere 41% by 1939. In 1900, Kuhn, Loeb and J.P. Morgan, representing the Rothschilds, controlled 93% of all railway mileage in the U.S.; Speyer & Co. controlled N.Y. real estate and South American minerals; Seligman & Co. sugar, public utilities, and Latin American loans; August Belmont, the New York subway system; Lazard Freres, gold and silver, specializing in international gold movements.
Other Power Brokers
U.S. News May 14, 1984 listed "Who Runs America"; the first ten included Weinberger and Shultz of Bechtel Corp.; the second ten included Sulzberger of the New York Times, vice pres. [George] Bush, David Rockefeller; the third ten included Katharine Graham and Henry Kissinger. Former president Gerald Ford was not listed; he is now director of GK Technologies, a $1.19 billion firm with large defense contracts.
Other leading defense firms are United Technologies; Scovill Corp. whose chairman Malcolm Baldrige is now Secretary of Commerce; directors include Daniel Pomeroy Davison of J.P. Morgan bank and president U.S. Trust Olin Corp., $1.85 billion; and General Dynamics, controlled by the Crown family of Chicago.
When Texaco swallowed the $12 billion Getty Oil corp. after its founder died, it showed the financial power of the London Connection. Directors of Texaco included Willard C. Butcher, former chmn of Chase Manhattan; Earl of Granard (Forbes) (the first baronet had reduced Sligo for William III), and grandson of Ogden Mills, Secretary of Treasury U.S. 1932-33; Thomas H. Moorer, chmn joint Chfs of Staff 1970-74, director Fairchild Bunker Ramo; Robert V. Roosa, director Brookings Institution, Trilateral Commission.
The Rothschild Houston-Cleveland axis brought off one of its greatest coups when its agent John Connally, then Secretary of the Treasury, persuaded Nixon to abandon the gold standard. The New York Times headlined, Aug. 16, 1971:
SEVERS LINK BETWEEN DOLLAR AND GOLDThe Times noted that "Advice to impose some controls has been given the President from such sources as David Rockefeller, chmn of the $23 billion Chase Manhattan Corp., and the Organization for Economic Development, a group representing 22 nations." The Times editorially stated, "We unhesitatingly applaud the boldness with which the President has moved on all economic fronts -- an admiration for the completeness with which the President has junked the do-nothing approach that immobilised the country and sapped the national will."
President Nixon announced tonight that henceforth the U.S. would cease to convert foreign held dollars into gold -- unilaterally changing the 25 year old international monetary system. The President said he was taking the action to stop 'the attacks of foreign monetary speculators against the dollar'. The change in the world monetary system brought about by the Presidential decision to cease converting foreign held dollars into gold is entirely uncertain. That was the word used by Secretary Treasury John B. Connally. Mr. Connally said he did not know what would happen."
On 17 Aug. 1971, the Times quoted Paul Volcker, Under Secretary of the Treasury, who, when asked if other currencies would rise in relation to the dollar, replied, "I think we are in no position to object." With the story was a photo of Volcker conferring with banking officials in London, with the caption:
"Under Secretary Paul A. Volcker conferred with leading European financial officials here today on President Nixon's new policy to meet the dollar crisis. He hinted broadly that the U.S. would be happy if other countries let their currencies float in the exchange markets. Their value would presumably rise in relation to the dollar. Mr. Volcker said he had found a 'very good understanding' in his meeting. But at the end of a confusing day in European ministries and banks, few thought they could see a clear way out of the immediate monetary chaos caused by Mr. Nixon's moves."Advance knowledge of such a far-reaching change in the monetary system would be worth billions of dollars.