The Modern History Project	Feature article:
"America's Secret Establishment"


Articles > Books > FedReserve > SecretsCh05

Secrets of the Federal Reserve

The history, organization and controlling interests behind the Federal
Reserve

-- by Eustace Mullins, 1983 source: Whale.to

..: with hyperlinks to entries from the MHP database :.
Chapter 5: The House of Rothschild
The Rothschild family dominates the banking of London and Europe
The Seven Men
History of the U.S. Banking Establishment
George Peabody and Company
The Banking Panic of 1837
The Banking Panic of 1857
J.P. Morgan and Company
Financing the U.S. Civil War
Rothschild Control in Britain and Europe
Control of the Media
Footnotes
The Seven Men

The success of the Federal Reserve Conspiracy will raise many questions
in the minds of readers who are unfamiliar with the history of the
United States and finance capital. How could the Kuhn, Loeb - Morgan
alliance, powerful though it might be, believe that it would be
capable, first, of devising a plan which would bring the entire money
and credit of the people of the United States into their hands, and
second, of getting such a plan enacted into law?

The capability of devising and enacting the "National Reserve Plan", as
the immediate result of the Jekyll Island expedition was called, was
easily within the powers of the Kuhn, Loeb - Morgan alliance, according
to the following from McClure's Magazine, August 1911, "The Seven Men"
by John Moody:
"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 J. Hill, 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 Company, to the so-called Standard Oil City Bank group...
the central machine of capital extends its control over the United
States... The process is not only economically logical; it is now
practically automatic." [32]

Thus we see that the 1910 plot to seize control of the money and credit
of the people of the United States was planned by men who already
controlled most of the country's resources. It seemed to John Moody
"practically automatic" that they should continue with their
operations.

What John Moody did not know, or did not tell his readers, was that the
most powerful men in the United States were themselves answerable to
another power, a foreign power, and a power which had been steadfastly
seeking to extend its control over the young republic of the United
States since its very inception. This power was the financial power of
England, centered in the London Branch of the House of Rothschild. The
fact was that in 1910, the United States was for all practical purposes
being ruled from England, and so it is today.

The ten largest bank holding companies in the United States are firmly
in the hands of certain banking houses, all of which have branches in
London. They are J.P. Morgan Company, Brown Brothers Harriman, Warburg,
Kuhn Loeb and J. Henry Schroder. All of them maintain close
relationships with the House of Rothschild, principally through the
Rothschild control of international money markets through its
manipulation of the price of gold. Each day, the world price of gold is
set in the London office of N.M. Rothschild and Company.

Although these firms are ostensibly American firms, which merely
maintain branches in London, the fact is that these banking houses
actually take their direction from London. Their history is a
fascinating one, and unknown to the American public, originating as it
did in the international traffic in gold, slaves, diamonds, and other
contraband. There are no moral considerations in any business decision
made by these firms. They are interested solely in money and power.

History of the U.S. Banking Establishment

Tourists today gape at the magnificent mansions of the very rich in
Newport, Rhode Island, without realizing that not only do these
"cottages" stand as a memorial to the baronial desires of our Victorian
millionaires, but that their erection in Newport represented a
nostalgic memorialization of the great American fortunes, which had
their beginnings in Newport when it was the capital of the slave trade.

The slave trade for centuries had its headquarters in Venice, until
seventeenth century Britain, the new master of the seas, used its
control of the oceans to gain a monopoly. As the American colonies were
settled, its fiercely independent people, most of whom did not want
slaves, found to their surprise that slaves were being sent to our
ports in great numbers.

For many years, Newport was the capital of this unsavory trade. William
Ellery, the Collector of the Port of Newport, said in 1791:

"...an Ethiopian could as soon change his skin as a Newport merchant
could be induced to change so lucrative a trade.... for the slow
profits of any manufactory."

John Quincy Adams remarked in his Diary, page 459, "Newport's former
prosperity was chiefly owing to its extensive employment in the African
slave trade."

The pre-eminence of J.P. Morgan and the Brown [Brothers] firm in
American finance can be dated to the development of Baltimore as the
nineteenth century capital of the slave trade. Both of these firms
originated in Baltimore, opened branches in London, came under the
aegis of the House of Rothschild, and returned to the United States to
open branches in New York and to become the dominant power, not only in
finance, but also in government. In recent years, key posts such as
Secretary of Defense have been held by Robert Lovett, partner of Brown
Brothers Harriman, and Thomas S. Gates, partner of Drexel and Company,
a J.P. Morgan subsidiary firm. The present [1981] Vice President,
George H.W. Bush, is the son of Prescott Bush, a partner of Brown
Brothers Harriman, for many years the senator from Connecticut, and the
financial organizer of Columbia Broadcasting System of which he also
was a director for many years.

George Peabody and Company

To understand why these firms operate as they do, it is necessary to
give a brief history of their origins. Few Americans know that J.P.
Morgan Company began as George Peabody and Company. George Peabody
(1795-1869), born at South Danvers, Massachusetts, began business in
Georgetown, D.C. in 1814 as Peabody, Riggs and Company, dealing in
wholesale dry goods, and in operating the Georgetown Slave Market. In
1815, to be closer to their source of supply, they moved to Baltimore,
where they operated as Peabody and Riggs, from 1815 to 1835. Peabody
found himself increasingly involved with business originating from
London, and in 1835, he established the firm of George Peabody and
Company in London.

He had excellent entree in London business through another Baltimore
firm established in Liverpool, the Brown Brothers. Alexander Brown came
to Baltimore in 1801, and established what is now known as the oldest
banking house in the United States, still operating as Brown Brothers
Harriman of New York; Brown, Shipley and Company of England; and Alex
Brown and Son of Baltimore. The behind the scenes power wielded by this
firm is indicated by the fact that Sir Montagu Norman, Governor of the
Bank of England for many years, was a partner of Brown, Shipley and
Company. [32b] Considered the single most influential banker in the
world, Sir Montagu Norman was organizer of "informal talks" between
heads of central banks in 1927, which led directly to the Great
Stockmarket Crash of 1929.

Soon after he arrived in London, George Peabody was surprised to be
summoned to an audience with the gruff Baron Nathan Mayer Rothschild.
Without mincing words, Rothschild revealed to Peabody, that much of the
London aristocracy openly disliked Rothschild and refused his
invitations. He proposed that Peabody, a man of modest means, be
established as a lavish host whose entertainments would soon be the
talk of London. Rothschild would, of course, pay all the bills. Peabody
accepted the offer, and soon became known as the most popular host in
London. His annual Fourth of July dinner, celebrating American
Independence, became extremely popular with the English aristocracy,
many of whom, while drinking Peabody's wine, regaled each other with
jokes about Rothschild's crudities and bad manners, without realizing
that every drop they drank had been paid for by Rothschild.

It is hardly surprising that the most popular host in London would also
become a very successful businessman, particularly with the House of
Rothschild supporting him behind the scenes. Peabody often operated
with a capital of 500,000 pounds [sterling] on hand, and became very
astute in his buying and selling on both sides of the Atlantic. His
American agent was the Boston firm of Beebe, Morgan and Company, headed
by Junius S. Morgan, father of John Pierpont Morgan. Peabody, who never
married, had no one to succeed him, and he was very favorably impressed
by the tall, handsome Junius Morgan. He persuaded Morgan to join him in
London as a partner in George Peabody and Company in 1854.

In 1860, John Pierpont Morgan had been taken on as an apprentice by the
firm of Duncan, Sherman in New York. He was not very attentive to
business, and in 1864, Morgan's father was outraged when Duncan,
Sherman refused to make his son a partner. He promptly extended an
arrangement whereby one of the chief employees of Duncan, Sherman,
Charles H. Dabney, was persuaded to join John Pierpont Morgan in a new
firm, Dabney, Morgan and Company. Bankers Magazine, December, 1864,
noted that Peabody had withdrawn his account from Duncan, Sherman, and
that other firms were expected to do so. The Peabody account, of
course, went to Dabney, Morgan Company.

The Banking Panic of 1837

John Pierpont Morgan was born in 1837, during the first money panic in
the United States. Significantly, it had been caused by the House of
Rothschild, with whom Morgan was later to become associated.

In 1836, President Andrew Jackson, infuriated by the tactics of the
bankers who were attempting to persuade him to renew the charter of the
Second Bank of the United States, said:
"You are a den of vipers. I intend to rout you out and by the Eternal
God I will rout you out. If the people only understood the rank
injustice of our money and banking system, there would be a revolution
before morning."

Although Nicholas Biddle was President of the Bank of the United
States, it was well known that Baron James de Rothschild of Paris was
the principal investor in this central bank. Although Jackson had
vetoed the renewal of the charter of the Bank of the United States, he
probably was unaware that a few months earlier, in 1835, the House of
Rothschild had cemented a relationship with the United States
Government by superseding the firm of Barings as financial agent of the
Department of State on January 1, 1835.

Henry Clews, the famous banker, in his book "Twenty-eight Years in Wall
Street" [33] states that the Panic of 1837 was engineered because the
charter of the Second Bank of the United States had run out in 1836.
Not only did President Jackson promptly withdraw government funds
from the Second Bank of the United States, but he deposited these
funds, $10 million, in state banks. The immediate result, Clews tells
us, is that the country began to enjoy great prosperity.

This sudden flow of cash caused an immediate expansion of the national
economy, and the government paid off the entire national debt, leaving
a surplus of $50 million in the Treasury.

The European financiers had the answer to this situation. Clews further
states, "The Panic of 1837 was aggravated by the Bank of England when
it in one day threw out all the paper connected with the United
States."

The Bank of England, of course, was synonymous with the name of Baron
Nathan Mayer Rothschild. Why did the Bank of England in one day "throw
out" all paper connected with the United States, that is, refuse to
accept or discount any securities, bonds or other financial paper based
in the United States?

The purpose of this action was to create an immediate financial panic
in the United States, cause a complete contraction of credit, halt
further issues of stocks and bonds, and ruin those seeking to turn
United States securities into cash. In this atmosphere of financial
panic, John Pierpont Morgan came into the world.

His grandfather, Joseph Morgan, was a well to do farmer who owned 106
acres in Hartford, Connecticut. He later opened the City Hotel, and the
Exchange Coffee Shop, and in 1819, was one of the founders of the Aetna
Insurance Company.

George Peabody found that he had chosen well in selecting Junius S.
Morgan as his successor. Morgan agreed to continue the sub rosa
relationship with N.M. Rothschild Company, and soon expanded the firm's
activities by shipping large quantities of railroad iron to the United
States.

It was Peabody iron which was the foundation for much of American
railroad tracks from 1860 to 1890. In 1864, content to retire and leave
his firm in the hands of Morgan, Peabody allowed the name to be changed
to Junius S. Morgan Company. The Morgan firm then and since has always
been directed from London. John Pierpont Morgan spent much of his time
at his magnificent London mansion, Prince's Gate.


The Banking Panic of 1857

One of the high water marks of the successful Rothschild - Peabody -
Morgan business venture was the Panic of 1857. It had been twenty years
since the Panic of 1837: its lessons had been forgotten by hordes of
eager investors who were anxious to invest the profits of a developing
America. It was time to fleece them again. The stock market operates
like a wave washing up on the beach. It sweeps with it many minuscule
creatures who derive all of their life support from the oxygen and
water of the wave. They coast along at the crest of the "Tide of
Prosperity". Suddenly the wave, having reached the high water mark on
the beach, recedes, leaving all of the creatures gasping on the sand.
Another wave may come in time to save them, but in all likelihood it
will not come as far, and some of the sea creatures are doomed. In the
same manner, waves of prosperity, fed by newly created money, through
an artificial contraction of credit, recedes, leaving those it had
borne high to gasp and die without hope of salvation.

"Corsair, the Life of J.P. Morgan" [34] tells us that the Panic of 1857
was caused by the collapse of the grain market and by the sudden
collapse of Ohio Life and Trust, for a loss of five million dollars.
With this collapse nine hundred other American companies failed.
Significantly, one not only survived, but prospered from the crash. In
"Corsair", we learn that the Bank of England lent George Peabody and
Company five million pounds during the panic of 1857. Winkler, in
"Morgan the Magnificent" [35] says that the Bank of England advanced
Peabody one million pounds, an enormous sum at that time and the
equivalent of one hundred million dollars today, to save the firm.
However, no other firm received such beneficence during this Panic. The
reason is revealed by Matthew Josephson, in "The Robber Barons". He
says on page 60:
"For such qualities of conservatism and purity, George Peabody and
Company, the old tree out of which the House of Morgan grew, was
famous. In the panic of 1857, when depreciated securities had been
thrown on the market by distressed investors in America, Peabody and
the elder Morgan, being in possession of cash, had purchased such bonds
as possessed real value freely, and then resold them at a large advance
when sanity was restored." [36]

Thus, from a number of biographies of Morgan, the story can be pieced
together. After the panic had been engineered, one firm came into the
market with one million pounds in cash, purchased securities from
distressed investors at panic prices, and later resold them at an
enormous profit. That firm was the Morgan firm, and behind it was the
clever maneuvering of [the firm of] Baron Nathan Mayer Rothschild. The
association remained secret from the most knowledgeable financial minds
in London and New York, although Morgan occasionally appeared as the
financial agent in a Rothschild operation.

[Note: Nathan Mayer Rothschild died in 1836. His son Lionel N.
Rothschild was the head of the London branch of the family in 1857.
--ed]

As the Morgan firm grew rapidly during the late nineteenth century,
until it dominated the finances of the nation, many observers were
puzzled that the Rothschilds seemed so little interested in profiting
by investing in the rapidly advancing American economy. John Moody
notes, in "The Masters of Capital", page 27, "The Rothschilds were
content to remain a close ally of Morgan... as far as the American
field was concerned." [37] Secrecy was more profitable than valor.

The reason that the European Rothschilds preferred to operate
anonymously in the United States behind the facade of J.P. Morgan and
Company is explained by George Wheeler, in "Pierpont Morgan and
Friends, the Anatomy of a Myth", page 17:
"But there were steps being taken even now to bring him out of the
financial backwaters -- and they were not being taken by Pierpont
Morgan himself. The first suggestion of his name for a role in the
recharging of the reserve originated with the London branch of the
House of Rothschild, Belmont's employers." [38]

Wheeler goes on to explain that a considerable anti-Rothschild movement
had developed in Europe and the United States which focused on the
banking activities of the Rothschild family. Even though they had a
registered agent in the United States, August Schoenberg, who had
changed his name to [August] Belmont when he came to the United States
as the representative of the Rothschilds in 1837, it was extremely
advantageous to them to have an American representative who was not
known as a Rothschild agent.

J.P. Morgan and Company

Although the London house of Junius S. Morgan and Company continued to
be the dominant branch of the Morgan enterprises, with the death of the
senior Morgan in 1890 in a carriage accident on the Riviera, John
Pierpont Morgan became the head of the firm. After operating as the
American representative of the London firm from 1864-1871 as Dabney
Morgan Company, Morgan took on a new partner in 1871, Anthony Drexel of
Philadelphia and operated as Drexel Morgan and Company until 1895.
Drexel died in that year, and Morgan changed the name of the American
branch to J.P. Morgan and Company.

LaRouche [39] tells us that on February 5, 1891, a secret association
known as the Round Table Group was formed in London by Cecil Rhodes,
his banker, Lord [Nathaniel] Rothschild, the Rothschild in-law, Lord
Rosebery, and Lord Curzon. He states that in the United States the
Round Table was represented by the Morgan group.

Dr. Carroll Quigley refers to this group as "The British-American
Secret Society" in [his book] "Tragedy and Hope", stating that
"The chief backbone of this organization grew up along the already
existing financial cooperation running from the Morgan Bank in New York
to a group of international financiers in London led by Lazard Brothers
(in 1901)." [40]

William Guy Carr, in "Pawns In The Game" states that
"In 1899, J.P. Morgan and Drexel went to England to attend the
International Bankers Convention. When they returned, J.P. Morgan had
been appointed head representative of the Rothschild interests in the
United States. As the result of the London Conference, J.P. Morgan and
Company of New York, Drexel and Company of Philadelphia, Grenfell and
Company of London, and Morgan Harjes Cie of Paris, M.M. Warburg Company
of Germany and America, and the House of Rothschild were all
affiliated." [41]

Apparently unaware of the Peabody connection with the Rothschilds and
the fact that the Morgans had always been affiliated with the House of
Rothschild, Carr supposed that he had uncovered this relationship as of
1899, when in fact it went back to 1835. [41b]

After World War I, the Round Table became known as the Council on
Foreign Relations (CFR) in the United States, and the Royal Institute
of International Affairs (RIIA) in London. The leading government
officials of both England and the United States were chosen from its
members. In the 1960s, as growing attention centered on the
surreptitious governmental activities of the Council on Foreign
Relations, subsidiary groups, known as the Trilateral Commission and
the Bilderberg [Group], representing the identical financial interests,
began operations, with the more important officials, such as Robert
Roosa, being members of all three groups.

[For a more detailed history of these groups, see Final Warning,
chapters 5, 8 and 9 --ed]

Financing the U.S. Civil War

George F. Peabody, History of the Great American Fortunes, Gustavus
Myers, Mod. Lib. 537, notes that J.P. Morgan's father, Junius S.
Morgan, had become a partner of George Peabody in the banking business.

"When the Civil War came on, George Peabody and Company were appointed
the financial representatives in England of the U.S. Government....
with this appointment their wealth suddenly began to pile up; where
hitherto they had amassed the riches by stages not remarkably rapid,
they now added many millions within a very few years."

According to writers of the day, the methods of George Peabody and
Company were not only unreasonable but double treason, in that, while
in the act of giving inside aid to the enemy, George Peabody & Company
were the potentiaries of the U.S. Government and were being well paid
to advance its interests. [From the] "Springfield Republic", 1866:
"For all who know anything on the subject know very well that Peabody
and his partners gave us no faith and no help in our struggle for
national existence. They participated to the fullest in the common
English distrust of our cause and our success, and talked and acted for
the South rather than for our nation. No individuals contributed so
much to flooding our money markets and weakening financial confidence
in our nationality than George Peabody & Company, and none made more
money by the operation. All the money that Mr. Peabody is giving away
so lavishly among our institutions of learning was gained by the
speculations of his house in our misfortunes."

Also, New York Times, Oct. 31, 1866: "Reconstruction Carpetbaggers
Money Fund". [Quoted in] "Lightning over the Treasury Building", John
Elson, Meador Publishing Co., Boston 41, pg. 53,
"The Bank of England with its subsidiary banks in America (under the
domination of J.P. Morgan) the Bank of France, and the Reichsbank of
Germany, composed an interlocking and cooperative banking system, the
main objective of which was the exploitation of the people."

Rothschild Control in Britain and Europe

[Editor's note: William Guy Carr's speculative and fictionalized
account of the 'secret meeting' at Mayer Amschel Bauer's Frankfurt shop
in 1773 has been deleted.]

The Rothschild family has played a crucial role in international
finance for two centuries, as Frederick Morton, in The Rothschilds
writes: "For the last one hundred and fifty years the history of the
House of Rothschild has been to an amazing extent the backstage history
of Western Europe." p. 38 (Preface). Because of their success in making
loans not to individuals, but to nations, they reaped huge profits,
although as Morton writes, p. 36, "Someone once said that the wealth of
Rothschild consists of the bankruptcy of nations." [43]

E.C. Knuth writes, in "The Empire of the City",
"The fact that the House of Rothschild made its money in the great
crashes of history and the great wars of history, the very periods when
others lost their money, is beyond question."[44]

The Great Soviet Encyclopaedia, states,
"The clearest example of a personal linkup (international directorates)
on a Western European scale is the Rothschild family. The London and
Paris branches of the Rothschilds are bound not just by family ties but
also by personal link-ups in jointly controlled companies." [45]

The encyclopaedia further described these companies as international
monopolies.

The sire of the family, Mayer Amschel Rothschild, established a small
business as a coin dealer in Frankfurt in 1743. Although previously
known as Bauer [45b], he advertised his profession by putting up a sign
depicting an eagle on a red shield, an adaptation of the coat of arms
of the City of Frankfurt, to which he added five golden arrows
extending from the talons, signifying his five sons. Because of this
sign, he took the name "Rothschild" or "Red Shield".

When the Elector of Hesse earned a fortune by renting Hessian
mercenaries to the British to put down the rebellion in the American
colonies, Rothschild was entrusted with this money to invest. He made
an excellent profit both for himself and the Elector, and attracted
other accounts. In 1785 he moved to a larger house, 148 Judengasse, a
five story house known as "The Green Shield" which he shared with the
Schiff family.

The five sons established branches in the principal cities of Europe,
the most successful being James in Paris and Nathan Mayer in London.
Ignatius Balla in "The Romance of the Rothschilds" [46] tells us how
the London Rothschild established his fortune. He went to Waterloo,
where the fate of Europe hung in the balance, saw that Napoleon was
losing the battle, and rushed back to Brussels. At Ostend, he tried to
hire a boat to England, but because of a raging storm, no one was
willing to go out. Rothschild offered 500 francs, then 700, and finally
1,000 francs for a boat. One sailor said, "I will take you for 2000
francs; then at least my widow will have something if we are drowned."
Despite the storm, they crossed the Channel.

[See editor's note E1]

The next morning, Rothschild was at his usual post in the London
Exchange. Everyone noticed how pale and exhausted he looked. Suddenly,
he started selling, dumping large quantities of securities. Panic
immediately swept the Exchange. "Rothschild is selling; he knows we
have lost the Battle of Waterloo". Rothschild and all of his known
agents continued to throw securities onto the market. Balla says,
"Nothing could arrest the disaster. At the same time he was quietly
buying up all securities by means of secret agents whom no one knew. In
a single day, he had gained nearly a million [pounds] sterling, giving
rise to the saying, 'The Allies won the Battle of Waterloo, but it was
really Rothschild who won.'" [46b]

In "The Profits of War", Richard Lewinsohn says,
"Rothschild's war profits from the Napoleonic Wars financed their later
stock speculations. Under Metternich, Austria after long hesitation,
finally agreed to accept financial direction from the House of
Rothschild." [47]

After the success of his Waterloo exploit, Nathan Mayer Rothschild
gained control of the Bank of England through his near monopoly of
"Consols" and other shares.

Several "central" banks, or banks which had the power to issue
currency, had been started in Europe [including] the Bank of Sweden,
[founded] in 1656, which began to issue notes in 1661. The earliest [of
these] being the Bank of Amsterdam, which financed Oliver Cromwell's
seizure of power in England in 1649, ostensibly because of religious
differences. Cromwell died in 1657 and the throne of England was
re-established when Charles II was crowned in 1660. He died in 1685.

In 1689, the same group of bankers regained power in England by putting
King William of Orange on the throne. He soon repaid his backers by
ordering the British Treasury to borrow 1,250,000 pounds from these
bankers. He also issued them a Royal Charter for the Bank of England,
which permitted them to consolidate the National debt (which had just
been created by this loan) and to secure payments of interest and
principal by direct taxation of the people. The Charter forbade private
goldsmiths to store gold and to issue receipts, which gave the
stockholders of the Bank of England a money monopoly. The goldsmiths
also were required to store their gold in the Bank of England vaults.
Not only had their privilege of issuing circulating medium been taken
away by government decree, but their fortunes were now turned over to
those who had supplanted them. [47b]

In his "Cantos", 46; 27, Ezra Pound refers to the unique privileges
which William Paterson advertised in his prospectus for the Charter of
the Bank of England:
"Said Paterson

Hath benefit of interest on all the moneys which it, the bank, creates
out of nothing."

The "nothing" which is referred to, of course, is the bookkeeping
operation of the bank, which "creates" money by entering a notation
that it has "lent" you one thousand dollars, money which did not exist
until the bank made the entry.

By 1698, the British Treasury owed 16 million pounds sterling to the
Bank of England. By 1815, principally due to the compounding of
interest, the debt had risen to 885 million pounds sterling. Some of
this increase was due to the wars which had flourished during that
period, including the Napoleonic Wars and the wars which England had
fought to retain its American Colony.

William Paterson (1658-1719) himself benefited little from "the moneys
which the bank creates out of nothing", as he withdrew, after a policy
disagreement, from the Bank of England a year after it was founded. A
later William Paterson became one of the framers of the United States
Constitution, while the name lingers on, like the pernicious central
bank itself.

Paterson had found himself unable to work with the Bank of England's
stockholders. Many of them remained anonymous, but an early description
of the Bank of England stated it was
"A society of about 1330 persons, including the King and Queen of
England, who had 10,000 pounds of stock, the Duke of Leeds, Duke of
Devonshire, Earl of Pembroke, and the Earl of Bradford."

Because of his success in his speculations, Baron Nathan Mayer de
Rothschild, as he now called himself, reigned as the supreme financial
power in London. He arrogantly exclaimed, during a party in his
mansion,
"I care not what puppet is placed upon the throne of England to rule
the Empire on which the sun never sets. The man that controls Britain's
money supply controls the British Empire, and I control the British
money supply."

His brother James in Paris had also achieved dominance in French
finance. In "Baron Edmond de Rothschild", David Druck writes,
"(James) Rothschild's wealth had reached the 600 million mark. Only one
man in France possessed more. That was the King, whose wealth was 800
million. The aggregate wealth of all the bankers in France was 150
million less than that of James Rothschild. This naturally gave him
untold powers, even to the extent of unseating governments whenever he
chose to do so. It is well known, for example, that he overthrew the
Cabinet of Prime Minister Thiers." [48]

The expansion of Germany under Bismarck was accompanied by his
dependence on Samuel Bleichroder, court banker of the Prussian Emperor,
who had been known as an agent of the Rothschilds since 1828. The later
Chancellor of Germany, Dr. von Bethmann Hollweg, was the son of Moritz
Bethmann of Frankfurt, who had intermarried with the Rothschilds.
Emperor Wilhelm I also relied heavily on Bischoffsheim, Goldschmidt,
and Sir Ernest Cassel of Frankfurt, who emigrated to England and became
personal banker to the Prince of Wales, later Edward VII. Cassel's
daughter married Lord Mountbatten, giving the family a direct
relationship to the present British Crown.

Josephson [49] states that Philip Mountbatten was related through the
Cassels to the Meyer Rothschilds of Frankfurt. Thus, the English royal
House of Windsor has a direct family relationship to the Rothschilds.
In 1901, when Queen Victoria's son, Edward, became King Edward VII, he
re-established the Rothschild ties.

Paul Emden in "Behind The Throne" says,
"Edward's preparation for his metier was quite different from that of
his mother, hence he 'ruled' less than she did. Gratefully, he retained
around him men who had been with him in the age of the building of the
Baghdad Railway... there were added to the advisory staff Leopold and
Alfred de Rothschild, various members of the Sassoon family, and above
all his private financial advisor Sir Ernest Cassel."

The enormous fortune which Ernest Cassel made in a relatively short
time gave him an immense power which he never misused. He amalgamated
the firm of Vickers Sons with the Naval Construction Company and the
Maxim-Nordenfeldt Guns and Ammunition Company, a fusion from which
there arose the worldwide firm of Vickers Sons and Maxim.

On an entirely different [level] from Cassel were businessmen like the
Rothschilds. The firm was run on democratic principles, and the various
partners all had to be members of the family. With great hospitality
and in a princely manner they led the lives of grand seigneurs, and it
was natural that Edward VII should find them congenial.

Thanks to their international family relationships and still more
extended business connections, they knew the whole world, were well
informed about everybody, and had reliable knowledge of matters which
did not appear on the surface. This combination of finance and politics
had been a trademark of the Rothschilds from the very beginning. The
House of Rothschild always knew more than could be found in the papers
and even more than could be read in the reports which arrived at the
Foreign Office. In other countries also the relations of the
Rothschilds extended behind the throne. Not until numerous diplomatic
publications appeared in the years after the war did a wider public
learn how strongly Alfred de Rothschild's hand affected the politics of
Central Europe during the twenty years before the war (World War I)."
[50]

In "Inside Europe" [52], John Gunther wrote in 1936 that any French
prime minister, at the end of 1935, was a creature of the financial
oligarchy, and that this financial oligarchy was dominated by twelve
regents, of whom six were bankers, and were headed by Baron Edmond de
Rothschild.
Control of the Media

With the control of the money came the control of the news media. Kent
Cooper, head of the Associated Press, writes in his autobiography
"Barriers Down": "International bankers under the House of Rothschild
acquired an interest in the three leading European agencies." [51]

Thus the Rothschilds bought control of Reuters International News
Agency, based in London, Havas of France, and Wolf in Germany, which
controlled the dissemination of all news in Europe.

The iron grip of the "London Connection" on the media was exposed in a
recent book by Ben J. Bagdikian "The Media Monopoly", described as "A
startling report on the 50 corporations that control what America sees,
hears, reads". [53] Bagdikian, who edited the nation's most influential
magazine, the Saturday Evening Post, until the monopoly suddenly closed
it down, reveals the interlocking directorates among the fifty
corporations which control the news, but fails to trace them back to
the five London banking houses which control them.

He mentions that CBS interlocks with the Washington Post, Allied
Chemical, Wells Fargo Bank, and others, but does not tell the reader
that Brown Brothers Harriman controls CBS, or that the Eugene Meyer
family (Lazard Freres) controls Allied Chemical and the Washington
Post, and Kuhn Loeb Co. [controls] the Wells Fargo Bank. He shows the
New York Times interlocked with Morgan Guaranty Trust, American
Express, First Boston Corporation and others, but does not show how the
banking interlocks. He does not mention the Federal Reserve System in
his entire book, which is conspicuous by its absence.

Bagdikian documents that the media monopoly is steadily closing down
more newspapers and magazines. Washington D.C., with one paper, The
Post, is unique among world capitols. London has eleven daily
newspapers, Paris fourteen, Rome eighteen, Tokyo seventeen, and Moscow
nine. He cites a study from the 1982 World Press Encyclopaedia that the
United States is at the bottom of industrial nations in the number of
daily newspapers sold per 1,000 population. Sweden leads the list with
572, the United States is at the bottom with 287.

There is universal distrust of the media by Americans, because of their
notorious monopoly and bias. The media unanimously urges higher taxes
on working people, more government spending, a welfare state with
totalitarian powers, close relations with Russia, and a rabid
denunciation of anyone who opposes Communism. This is the program of
"the London Connection." It flaunts a maniacal racism, and has as its
motto the dictum of its high priestess, Susan Sontag, that "The white
race is the cancer of history." Everyone should be against cancer. The
media monopoly deals with its opponents in one of two ways; either
frontal assault of libel which the average person cannot afford to
litigate, or an iron curtain of silence, the standard treatment for any
work which exposes its clandestine activities.

Although the Rothschild plan does not match [or conform to] any single
political or economic movement since it was enunciated in 1773, vital
parts of it can be discerned in all political revolutions since that
date. LaRouche [54] points out that the Round Tables sponsored Fabian
Socialism in England, while backing the Nazi regime through a Round
Table member in Germany, Dr. Hjalmar Schacht, and that they used the
Nazi Government throughout World War II through Round Table member
Admiral Canaris, while Allen Dulles ran a collaborating intelligence
operation in Switzerland for the Allies.
Notes for Chapter 4

32. John Moody, "The Seven Men", McClure's Magazine, August, 1911, p.
418

32b. "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." Montagu Norman, Current Biography, 1940.

33. Henry Clews, Twenty-eight Years in Wall Street, Irving Company, New
York, 1888, page 157

34. Corsair, The Life of Morgan

35. John K. Winkler, Morgan the Magnificent, Vanguard, N.Y. 1930

36. Matthew Josephson, The Robber Barons, Harcourt Brace, N.Y. 1934

37. John Moody, The Masters of Capital

38. George Wheeler, Pierpont Morgan and Friends, the Anatomy of a Myth,
Prentice Hall, N.J. 1973

39. Lyndon H. LaRouche, Jr., Dope, Inc., The New Benjamin Franklin
House Publishing Company, N.Y. 1978

40. Dr. Carrol Quigley, Tragedy and Hope, Macmillan Co., N.Y.

41. William Guy Carr, Pawns In The Game, privately printed, 1956, pg.
60

41b. July 30, 1930, McFadden, Basis of Control of Economic Conditions.
"This control of the world business structure and of human happiness
and progress by a small group is a matter of the most intense public
interest. In analyzing it, we must begin with the internal group which
centers itself around J.P. Morgan Company. Never before had there been
such a powerful centralized control over finance, industrial
production, credit and wages as is at this time vested in the Morgan
group... The Morgan control of the Federal Reserve System is exercised
through control of the management of the Federal Reserve Bank of New
York."

42. William Guy Carr, Pawns In The Game, privately printed, 1956

43. Frederick Morton, The Rothschilds, Fawcett Publishing Company,
N.Y., 1961

44. E.C. Knuth, Empire of the City, p. 71

45. Great Soviet Encyclopaedia, Edition 3, 1973, Macmillan, London,
Vol. 14, pg. 691

45b. "The original name. of Rothschild was Bauer." p. 397, Henry Clews,
Twenty-eight years in Wall Street.

46. Ignatius Balla, The Romance of the Rothschilds, Everleigh Nash,
London, 1913

46b. The New York Times, April 1, 1915. reported that in 1914, Baron
Nathan Mayer de Rothschild went to court to suppress Ignatius Balla's
book on the grounds that the Waterloo story about his grandfather was
untrue and libelous. The court ruled that the story was true, dismissed
Rothschild's suit, and ordered him to pay all costs. The New York Times
noted in this story that "The total Rothschild wealth has been
estimated at $2 billion." A previous story in The New York Times (May
27, 1905) noted that Baron Alphonse de Rothschild, head of the French
house of Rothschild, possessed $60 million in American securities in
his fortune, although the Rothschilds reputedly were not active in the
American field. This explains why their agent, J.P. Morgan, had only
$19 million in securities in his estate when he died in 1913, and
securities handled by Morgan were actually owned by his employer,
Rothschild.

47. Richard Lewinsohn, The Profits of War, E.P. Dutton, 1937

47b. NOTE: In the United States, after the stockholders of the Federal
Reserve System had consolidated their power in 1934, our government
also issued orders that private citizens could not store or hold gold.

48. David Druck, Baron Edmond de Rothschild, (Privately printed), N.Y.
1850

49. E.M. Josephson, The Strange Death of Franklin D. Roosevelt, pg. 39,
Chedney Press, N.Y. 1948

50. Paul Emden, Behind The Throne, Hoddard Stoughton, London, 1934

51. Kent Cooper, Barriers Down, pg. 21

52. John Gunther, Inside Europe, 1936

53. Ben H. Bagdikian, The Media Monopoly, Beacon Press, Boston 1983

54. Lyndon H. LaRouche, Jr., Dope, Inc., New Benjamin Franklin House
Publishing Co., New York, 1978
Editor's notes:

E1. Other sources report that it was a Rothschild agent in Dunkirk who
actually crossed the channel and reported the news to Nathan in London.

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