CHAPTER 14B - Congressional Exposé

Digg, Reddit, Propellor, Stumble and more

Debt Elimination, Accelerated Mortgage Pay-off, and Real Money are the Paths to Real Freedom. Eliminate Debt. Get out of Debt Now! Get Your Bailout Started Today!

Debt Elimination Is Real Freedom
Accelerated Mortgage Payoff - Eliminate Credit Card Debt - Eliminate Student Loans - Mortgage Elimination - Tax Freedom - Avoid the Draft  -  Asset Protection - Credit Repair - Stop Foreclosure - Earn Real Money - Accelerated Equity - Eliminate Debt - Get out of Debt - Bailout for the People!

President Lopez Portillo addressing the Mexican National Congress in September 1982, called the world credit boom of the 70's a financial pestilence akin to the Black Death which swept Europe in the 14nth century.

"As in mediaeval times, it flattens country after country. It is transmitted by rats and it yields unemployment and misery, industrial bankruptcy and enrichment by speculation. The remedy prescribed by faith healers is forced inactivity and depriving the patient of food."

The Nation on December 11, 1982:

"The blame for all this lies at the door of the Federal Reserve System working as usual on behalf of the international banking system."

August, 1976 study from the House Committee on Banking, Currency and Housing

Federal Reserve directors are apparently representatives of a small elite group which dominates much of the economic life of this nation.

 CHAPTER 14B - Congressional Exposé

From 1914 to 1982, a period in which many thousands of American banks went bankrupt, the original purchasers of Federal Reserve Bank stock have not only survived but they have consolidated their power. And what of "the London Connection"? Does it still exist, and is it still dictating the economic destiny of the United States? The Washington Post, May 19, 1983, carried a story datelined Nairobi, Kenya, noting the meeting of the African Development Bank. "The British merchant bank, Morgan Grenfell and a syndicate of the United States, Kuhn Loeb, Lehman Brothers International, the French Lazard Freres and Britain's Warburg are discreetly acting as financial advisors to about ten debt-plagued African states."

There are the same names we encountered in 1914, still managing the finances of the world, with profits for themselves but with disastrous results for everyone else. Perhaps we can look for relief to the present Administration of President Reagan. Unfortunately, before reaching him we have to run the gamut of the long list of his principal staff, composed of men from J. Henry Schroder, Brown Brothers Harriman, and other leading components of "The London Connection".

Lopez Portillo, President of Mexico, in addressing the Mexican National Congress of Mexico in September, 1982, called the world credit boom of the past decade a financial pestilence akin to the Black Death which swept Europe in the fourteenth century.

"As in mediaeval times, it flattens country after country. It is transmitted by rats and it yields unemployment and misery, industrial bankruptcy and enrichment by speculation. The remedy prescribed by faith healers is forced inactivity and depriving the patient of food."

Forbes Magazine stated October 11, 1982,

"The world gasps for liquidity, not because the supply of money has contracted but because too much of it now goes to pay off old debts rather than fund new productive investments."

The policy of high interest rates and tight money has been disastrous for the United States. In early 1983, a slight easing of money and credit promises some relief, but as long as the Federal Reserve system and its unseen manipulators continue their control of the money supply, we can expect more problems. The Nation on December 11, 1982, in commenting on economic problems, stated, "The blame for all this lies at the door of the Federal Reserve System working as usual on behalf of the international banking system."

The evidence of how the Federal Reserve System works on behalf of the international banking system is graphically illustrated by a series of charts drawn up by the staff of the Committee on Banking, Currency and Housing of the House of Representatives, 94th Congress, 2d session, August, 1976, "FEDERAL RESERVE DIRECTORS: A STUDY OF CORPORATE AND BANKING INFLUENCE".* We present as our Chart V page 49 of this study, showing the interlocking directorates of David Rockefeller. As our Chart VI we reproduce page 55 of this study, showing the interlocking directorates of Frank R. Milliken, one of the Class C Directors** of the Federal Reserve Bank of New York. In this chart are all the main personages in our story of the Jekyll Island conference: Citibank, J.P. Morgan and Company, Kuhn Loeb and Company, and many related firms. As Chart VII we reproduce page 53 of this study, showing the interlocking directorates of another Class C Director of the Federal Reserve Bank of New York, Alan Pifer. As President of the Carnegie Corporation of New York, he interlocks with J. Henry Schroder Trust Company, J. Henry Schroder Banking Corporation, Rockefeller Center, Inc., Federal Reserve Bank of Boston, Equitable Life Assurance Society (J.P. Morgan), and others. Thus an August, 1976 study from the House Committee on Banking, Currency and Housing, brings before us all of our main cast of personages, functioning today just as they did in 1914.
__________________________
* Due to space limitations, only five of the seventy-five charts in the study, all of which show the connections between prominent, powerful individuals with control in the Federal Reserve System have been selected to illustrate the connections between officers and directors of the twelve Federal Reserve Banks in 1976 and the firms listed in this book.

** "The three Class C Directors are appointed by the Board of Governors as representatives of the public interest as a whole." p. 34, Congressional Study, 1976.

This 120 page Congressional study details public policy functions of the Federal Reserve District Banks, how directors are selected, who is selected, the public relations lobbying factor, bank domination and bank examination, and corporate interlocks with Reserve banks. Charts were used to illustrate Class A, Class B, and Class C directorships of each district bank. For each branch bank a chart was designed giving information regarding bank appointed directors and those appointed by the Board of Governors of the Federal Reserve System.

In his Foreword to the study, Chairman Henry S. Reuss, (D-Wis) wrote:

"This Committee has observed for many years the influence of private interests over the essentially public responsibilities of the Federal Reserve System. As the study makes clear, it is difficult to imagine a more narrowly based board of directors for a public agency than has been gathered together for the twelve banks of the Federal Reserve System. Only two segments of American society--banking and big business--have any substantial representation on the boards, and often even these become merged through interlocking directorates . . . . Small farmers are absent. Small business is barely visible. No women appear on the district boards and only six among the branches. Systemwide--including district and branch boards - only thirteen members from minority groups appear.

The study raises a substantial question about the Federal Reserve's oft-repeated claim of "independence". One might ask, independent from what? Surely not banking or big business, if we are to judge from the massive interlocks revealed by this analysis of the district boards.

The big business and banking dominance of the Federal Reserve System cited in this report can be traced, in part, to the original Federal Reserve Act, which gave member commercial banks the right to select two-thirds of the directors of each district bank. But the Board of Governors in Washington must share the responsibility for this imbalance. They appoint the so-called "public" members of the boards of each district bank, appointments which have largely reflected the same narrow interests of the bank-elected members . . . . Until we have basic reforms, the Federal Reserve System will be handicapped in carrying out its public responsibilities as an economic stabilization and bank regulatory agency. The System's mandate is too essential to the nation's welfare to leave so much of the machinery under the control of narrow private interests. Concentration of economic and financial power in the United States has gone too far."

In a section of the text entitled "The Club System", the Committee noted:

"This 'club' approach leads the Federal Reserve to consistently dip into the same pools--the same companies, the same universities, the same bank holding companies--to fill directorships."

This Congressional study concludes as follows:

"Many of the companies on these tables, as mentioned earlier, have multiple interlocks to the Federal Reserve System. First Bank Systems; Southeast Banking Corporation; Federated Department Stores; Westinghouse Electric Corporation; Proctor and Gamble; Alcoa; Honeywell, Inc.; Kennecott Copper; Owens-Corning Fiberglass; all have two or more director ties to district or branch banks.

In Summary, the Federal Reserve directors are apparently representatives of a small elite group which dominates much of the economic life of this nation."

END OF CONGRESSIONAL REPORT

Foreword to Secrets of the Federal Reserve

Chapter 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - 14