One hundred years ago Congress passed the Federal Reserve Act. The Washington Post published a book excerpt about the creation of the law. But that doesn’t mean it says much about deliberations in Congress. The law wasn’t created b y Congress. The law was created by a secret meeting of the wealthiest of the wealthiest American bankers. We are supposed to believe that this is all entirely good for the country.
The mustachioed man in the silk top hat strode to his private railcar parked at a New Jersey train station, a mahogany-paneled affair with velvet drapes and well-polished brass accents. Five more men — and a legion of porters and servants — soon joined him. They referred to one another by their first names only, an uncommon informality in 1910, intended to give the staff no hints as to who the men actually were, lest rumors make their way to the newspapers and then to the trading floors of New York and London. One of the men, a German immigrant named Paul Warburg, carried a borrowed shotgun in order to look like a duck hunter, despite having never drawn a bead on a waterfowl in his life.
Two days later, the car deposited the men at the small Georgia port town of Brunswick, where they boarded a boat for the final leg of their journey. Jekyll Island, their destination, was a private resort owned by the powerful banker J.P. Morgan and some friends, a refuge on the Atlantic where they could get away from the cold New York winter. Their host — the man in the silk top hat — was Nelson Aldrich, one of the most powerful senators of the day, a lawmaker who lorded over the nation’s financial matters.
For nine days, working all day and into the night, the six men debated how to reform the U.S. banking and monetary systems, trying to find a way to make this nation just finding its footing on the global stage less subject to the kinds of financial collapses that had seemingly been conquered in Western Europe. Secrecy was paramount. “Discovery,” wrote one attendee later, “simply must not happen, or else all our time and effort would have been wasted. If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage by Congress.”
For decades afterward, the most powerful men in American finance referred to one another as part of the “First Name Club.” Paul, Harry, Frank and the others were part of a small group that, in those nine days, invented the Federal Reserve System.
How does the writer justify this act of corrupt criminality? He simply asserts it as if it was beyond dispute that this cabal of the one percent gave us a blessing that we, the American people, were too stupid to recognize that we needed. Isn’t it wonderful that these powerful bankers gave us this secretly-developed law that is completely in the public interest and in no way designed to profit these banking houses at public expense? Where would we be today if a “recent German immigrant” and other one-percenters hadn’t been willing to hold a secret meeting to craft a law that transformed the American economy?
The story’s claims about the need for an “elastic” money supply are lies. The damage the Fed has done to the US economy and specifically to the middle and lower classes is ignored.
Do you really think that people who are willing to hold secret meetings to foist laws on Congress are too ethical to use their money to influence newspapers or economic textbooks or economic departments in major universities?
The system these kleptocrats put in place made Warren Buffett 37 million dollars richer every day in 2013. You think such people don’t make sure that a justifying rationale for the Federal Reserve continues to circulate among “educated” people?
Don’t listen to central-bank liars. If they admit to secret conspiracies then what they are hiding is far worse.