Pawns in the Game
CHAPTER FIVE
The American Revolution - 3

Dear Sirs :

We beg to acknowledge receipt of your letter of June 25th, in which you refer to a communication received from Honourable John Sherman, of Ohio, with reference to the advantages, and profits, of an American investment under the provisions of the National Banking Act.

Mr. Sherman possesses, in a marked degree, the distinguishing characteristics of a successful financier.  His temperament is such that whatever his feelings may be they never cause him to lose sight of the main chance.  He is young, shrewd and ambitious.  He has fixed his eyes upon the Presidency of the United States and already is a member of Congress (he has financial ambitions too).  He rightfully thinks he has everything to gain by being friendly with men, and institutions, having large financial resources, and which at times are not too particular in their methods, either of obtaining government aid, or protecting themselves against unfriendly legislation.

As to the organization of the National Bank here, and the nature and profits of such investments, we beg leave to refer to our printed circulars enclosed herein, viz :

Any number of persons not less than five may organize a National Banking Corporation.

Except in cities having 6,000 inhabitants or less, a National Bank cannot have less than $1,000,000 capital.

They are private corporations organized for private gain, and select their own officers and employees.

They are not subject to control of State Laws, except as Congress may from time to time provide.

They may receive deposits and loan the same for their own benefit.  They can buy and sell bonds and discount paper and do general banking business.

To start a National Bank on the scale of $1,000,000 will require purchase of that amount (par value) of U.S. Government Bonds.  U.S. Bonds can now be purchased at 50 per cent discount, so that a bank of $1,000,000 capital can be started at this time for only $500,000.  These bonds must be deposited with the United States Treasury at Washington as security for the National Bank currency, that will be furnished by the government to the bank.

The United States Government will pay 6 per cent interest on all bonds in gold, the interest being paid semi-annually.  It will be seen that at the present price of bonds the interest paid by the government itself is 12 per cent in gold on all money invested.

The United States Government on having the bonds aforesaid deposited with the Treasurer, on the strength of such security will furnish National currency to the bank depositing the bonds, at an annual interest of only one per cent per annum.

The currency is printed by the U.S. Government in a form so like Greenbacks that the people do not detect the difference.  Although the currency is but a promise of the bank to pay.

The demand for money is so great that this money can be readily loaned to the people across the counter of the Bank at a discount at the rate of 10 per cent at thirty or sixty days time, making it about 12 per cent interest on the currency.

The interest on the bonds, plus the interest on the currency which the bond secures, plus the incidentals of the business, ought to make the gross earnings of the bank amount to from 28 per cent to 33 and one-third per cent.

National Banks are privileged to increase and contract their currency at will, and of course, can grant or withhold loans, as they may see fit.  As the banks have a National organization and can easily act together in withholding loans or extending them, it follows that they can by united action in refusing to make loans cause a stringency in the money market, and in a single week or even a single day cause a decline in all products of the country.

National Banks pay no taxes on their bonds, nor on their capital, nor on their deposits.

Requesting that you will regard this as strictly confidential.
Most respectfully yours,
IKELHEIMIER, MORTON and VANDERGOULD

Following the exchange of the above letters the American Bankers put into practice once again the manipulations mentioned.  They reaped another rich harvest by foreclosures on property and securities left with them as security for loans, which their clients could not repay because the Bankers, acting in unity, withdrew currency, and restricted credits, to a degree that made it impossible for the vast majority of borrowers to meet their financial obligations.

Abraham Lincoln felt that after this sad, and costly, experience the American people might be ready to listen to sense so, once again, he launched a public attack upon the bankers.

In an address he said :  “I see in the near future a crisis approaching that unnerves me, and causes me to tremble for the safety of my Country;  corporations have been enthroned, an era of corruption in high places will follow, and the money power of the country will endeavour to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands and the Republic is destroyed.”

Shortly after making this momentous speech Abraham Lincoln was re-elected President but before he could have legislation enacted which would have curbed the avaricious practices of the bankers he was assassinated by John Wilkes Booth while attending a theatrical performance, on the night of April 14th, 1865.  Very few Americans know why President Lincoln was assassinated.  The true answer was found when investigators located a coded message amongst Booth’s effects.  The key to that coded message was in possession of Judah P. Benjamin who was Rothschild’s agent in America.  While the coded message had no direct bearing on the murder, it definitely established the contact Booth had with the International Bankers.  Once again they remained hidden behind the scenes while the Jew, Booth, was blamed for the death of a great man.  Had Abraham Lincoln lived he would most certainly have clipped the wings, and trimmed the sails, of the international moneylenders.

Before Lincoln was murdered, Salmon P. Chase, who was Secretary of the U.S. Treasury 1861-1864, stated publicly :  “My agency in promoting the passage of the National Banking Act was the greatest financial mistake of my life.  It has built up a monopoly which affects every interest in the country.  It should be repealed, but before that can be accomplished the people will be arrayed on one side, and the banks on the other, in a contest such as we have never seen before in this country.”^[8]

In 1866 there were $1,906,687,770 in currency in circulation in the United States.  This represented $50.46 per capita.  At the end of 1876 there was only about $605,250,000 in circulation representing a per capita amount of $14.60.  The currency of the nation had been reduced by bank withdrawals to the extent of over $1,300,000,000.  The importance of these figures will be better understood by the average man when he learns that the net result of the bankers policy was a total of 56,446 business failures representing a loss of $2,245,105,000 in cash investments.  The larger proportion of the losses was incurred by mortgage foreclosures.  In other words, by withdrawing currency and restricting credits the bankers had enriched themselves by well over $2,000,000,000 in a little over ten years.  There is plenty of evidence to prove that the American Bankers and the European Bankers, have been affiliated ever since, and that the subsequent depressions were created by similar financial manipulations, as will be explained in other chapters.

footnotes

8 For more detailed information on this angle of the world Revolutionary Movement read Lightning Over The Treasury Building by John R. Elsom and The Federal Reserve Conspiracy by Eustace Mullins.

Chapter Five 1 - 2 - 3 Go to Chapter 6