FEDERAL RESERVE ORIGINS

On January 9, 2015, in Uncategorized, by trayho

Italics are mine – Frank Trejo – Yesterday’s News Today.
This article was posted back in Oct. of 2008. It’s still newsworthy even though written in the 80s.

By Grandbouche and Ben Kriegh

Alexander Hamilton, representing aristocratic financial interests, was instrumental in establishing the First United States Bank in 1791. It was a privately owned bank with a monopolistic power to issue legal tender notes based on government bonds as collateral. The plan behind this was to increase government debt progressively, financed through the bank, and to create a huge federal bureaucracy. Thomas Jefferson opposed it because it placed too much power in private hands and operated government on a credit basis.

By 1793, Jefferson was so discouraged battling the banking elite that he resigned as Sec. of State. But in 1811, President Madison, who shared Jefferson’s view, refused to renew the charter of the bank – it was dissolved. The bankers not being deterred, from their goal, provided much of the impetus for pushing the U.S. into the war of 1812.

As a result of that war, the finances of the nation became chaotic. Pressure was put on Madison to approve a charter for the Second U.S. BANK which he reluctantly did in 1816. Once again, the bankers took control. Jefferson bitterly opposed the formation of this bank. He wrote to John Taylor in 1816 and said this: “I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raise up a money aristocracy that has set the government in defiance. The issuing power should be taken from the banks and restored to the government, to whom it properly belongs.”

Fortunately for the United States, Andrew Jackson was elected President in 1828 and 1832. Because those who controlled the Second U.S. Bank so ruthlessly attempted to drive local bankers and state chartered financial institutions out of business, Jackson vowed to destroy the bank. In effort to destroy Jackson’s bid for reelection, the bank called loans at will of Jackson’s supporters, but Jackson had the overwhelming support of the common people and won.

Under Jackson, the government not only liquidated its national debt but accumulated a surplus. The surplus was distributed among the states for public works. This was done without an income tax! Although the nation prospered, the international banking interests were able to contribute to financial problems which the state chartered banking houses were not able to correct. By 1860 these banking interests mounted great pressure on government once again to establish a central bank.

During Lincoln’s Administration, behind the scenes, the banking interests were helping to inflame the nation into conflict, as they did in the war of 1812. As the war progressed, Lincoln’s greatest battle was with the international bankers who hoped to establish control by forcing Lincoln to finance the war on credit. However, Lincoln outsmarted the banking establishment by issuing over 450 million dollars in United States Notes, a non-interest bearing debt obligation of the U.S. Government.

In 1862, the Bank of England issued its infamous paper known as the “Hazard Circular” to the seaboard financiers in the U.S. In it, they wrote: “…capital shall control labor by controlling wages. This can be done by controlling money. The great debt…made out of the war must be used as a means to control money…Bonds must be used as a banking basis…It will not do to allow the greenback to circulate as money…as we cannot control that. But we can control the bonds and through them the bank issues.” (Federal Reserve Notes in your pocket)

Lincoln’s reward for defiance of the financial establishment was his assassination. For the remainder of the century the United States was able to function without a central bank. The international banking interests, through their agents in our country, did control or own many banks, but their control was always localized. They had no hold on the monetary policy of government. However, they were able to exert pressure on the government elected officials, by creating monetary panics by transferring large amounts of money from one bank to another.

Thus, if a bank reserves were seriously depleted by the withdrawal of a large amount of money, it would be unable to pay off its numerous smaller creditors. By this device, the financial aristocrats were able to bring about banking failures and panics which they then used as an excuse advocating the need for a central banking authority. A central banking authority, they claimed, would bring an end to monetary panics and financial disruptions and restore stability.

It was not until 1913 that the financial elite were able to establish the control they sought. After the Supreme Court struck down the first income tax law, which was enacted as a legislative bill, as being unconstitutional, the financial establishment changed its tactics. It introduced the income tax as an amendment to the Constitution, which was approved in 1913. That same year, Congress passed the Federal Reserve Act, which gave the international banking establishment its long sought goal – the central bank.

There’s nothing in the Constitution to prevent Congress from contracting with a private corporation for the management of a popular currency. Yes, it is private. Its voting stockholders are kept in secret; they’re known to no one, not even the President of the United States.

The Federal Reserve System is not part of Government, and has never been audited by the General Accounting Office or any government agency. Of course, it seems to be an official department, with the President making appointments, but it’s completely autonomous. (Look in the government blue pages of the phone book – you won’t find it listed under Government)

Asked “Do you approve of the latest credit-tightening moves?” Treasury Secretary David M. Kennedy answered in U.S. News & World Report May 5, 1969: “It’s not my job to approve or disapprove. It is the action of the Federal Reserve. (“The Miracle On Main Street” by F. TUPPER SAUSSY..Spencer, Judd Publishers.1980. Sewanee, Tenn.

I add this response President Reagan gave during his re-election in 1984 when asked if he was going to fire the Federal Reserve Chairman, said (I quote him verbatim): “Well, you know they are autonomous, and that’s all I can say.” The President of the United States told the country on T.V. news the Federal Reserve is self-governed, answers to no one, and I want to believe most listening didn’t have a clue to the significance of what he meant.

Just the mere fact that our monetary system is run by international bankers should suffice in convincing people that something is wrong constitutionally. Your Constitution says one thing and criminals in Congress and White House operate outside the law. I have discovered no matter how much proof you may offer, many won’t believe nor care about it. We are led by the nose and criminals commit their crimes undisturbed. This is what becomes of people in a democracy.

The Congress operates in such a way that very few of the elected have time to read legislation introduced. You’ve seen paper work almost a foot high representing a piece of legislation. There is no way they’ll stop to read it – it’ll interfere their hustling money and attending cocktail parties.

It’s reported that other wording, unbeknown to others voting, is inserted just before legislation comes up for a vote. There are many in Congress (both parties) just as sly as a hustler on a street corner – no shame at all. Why not? Not many citizens seem to care.

My party (Democratic), upon taking control of the House promised the people better government, less pork-barrel, bi-partisan legislation …etc… and nothing changed. Millions are wasted on projects to reward both parties thus guaranteeing reelection in perpetuity.

franktrejo1257@hotmail.com

 

 

 

 

 

Comments are closed.