Forum Post: Is the Fed a private corporation or part of government?
Posted 10 years ago on July 10, 2013, 12:13 a.m. EST by Kavatz
(464)
from Edmonton, AB
This content is user submitted and not an official statement
I've heard from many good sources that it is not anything to do with government.
What do you think it's purpose was/is?
Who met in secrecy to plan it and why can't the public sector do the same thing?
Why did income tax get created right after the Fed?
Senator Nelson Aldrich, the maternal grandfather of the Rockefeller brothers, had been instrumental in the writing of the Payne-Aldrich Tariff Act for lowering tariffs in April of 1909 while at the same time being instrumental in the writing of the income tax amendment in June of 1909. Just a year before in 1908 in response to the Panic of 1907, he had been responsible for the passage of the Aldrich–Vreeland Act which had established the National Monetary Commission leading to the Aldrich Plan and the Federal Reserve System mainly based upon the central banking designs of Paul Warburg that had been published in 1906 and discussed in secret at the Jekyll Island Club in 1911 where both Aldrich and J. P. Morgan had been members. By having published rumors that the Knickerbocker Trust Company had become insolvent in 1907, J. P. Morgan is thought by some historians to have engaged in a deliberate act of market manipulation that had precipitated the 1907 panic to consolidate the banks controlled by Morgan.
The Pujo Committee Report concluded in 1913 that a community of influential financial leaders had gained control of major manufacturing, transportation, mining, telecommunications and financial markets of the United States. The report revealed that no less than eighteen different major financial corporations were under control of a cartel led by J.P Morgan, George F Baker and James Stillman. These three men, through the resources of seven banks and trust companies (Banker’s Trust Co., Guaranty Trust Co., Astor Trust Co., National Bank of Commerce, Liberty National Bank, Chase National Bank, Farmer’s Loan and Trust Co.) controlled an estimated $2.1 billion. The report revealed that a handful of men held manipulative control of the New York Stock Exchange and attempted to evade interstate trade laws.
The Pujo Report singled out individual bankers including Paul Warburg, Jacob H. Schiff, Felix M. Warburg, Frank E. Peabody, William Rockefeller and Benjamin Strong, Jr.. The report identified over $22 billion in resources and capitalization controlled through 341 directorships held in 112 corporations by members of the empire headed by J.P. Morgan.
http://en.wikipedia.org/wiki/Pujo_Committee#Overview
In short, the Federal Reserve is controlled by four large private companies: BlackRock, State Street, Vanguard and Fidelity. http://www.globalresearch.ca/who-controls-big-money-the-barclay-s-octopus/21392
"We may congratulate ourselves that this cruel war is nearing its end. It has cost a vast amount of treasure and blood. . . . It has indeed been a trying hour for the Republic; but I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war. God grant that my suspicions may prove groundless."
Abraham Lincoln in a letter to Col. William F. Elkins dated November 21, 1864
http://occupywallst.org/forum/free-democracy-amendment/#comment-750723
"A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the Nation, therefore, and all our activities are in the hands of a few men... We have come to be one of the worst ruled, one of the most completely controlled and dominated, governments in the civilized world—no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men."
Woodrow Wilson in 1916 as quoted by former Senator Robert L. Owen (the Father of the Federal Reserve Act) in "National Economy and the Banking System," Senate Documents No. 23, p. 100, 76th Congress, 1st Session, 1939. http://ia700500.us.archive.org/11/items/NationalEconomyAndTheBankingSystemOfTheUnitedStates/NationalEconomyAndTheBankingSystem.pdf
"In December 1907, 1 entered the United States Senate and served there for 18 years. Within ninety days after I entered the Senate, on the 25th day of February 1908, 1 analyzed completely the Panic of 1907; showed its causes, how it could be cured, and how depressions could be prevented in the future. My text was stability in the value of money."
"I was made Chairman of the Committee on Banking and Currency of the United States Senate on March 5, 1913, and immediately drafted a Bill called the Federal Reserve Bill. In drafting this Bill I was greatly assisted by the results of four years work done by the National Monetary Commission. That Commission's report consisted of 32 volumes, and an auxiliary library of 2500 volumes. It had been established on my request from the floor of the United States Senate."
"In July 1913, Hon. Carter Glass joined me in presenting to the Senate and to the House the so-called Federal Reserve Bill which had been prepared by me the previous March, but which had been expanded, and contained provisions with which I was not entirely content. My Committee was immediately called together to take testimony on this Senate Bill, and after 3,000 pages of printed testimony had been taken, my colleagues in the Senate authorized me to write another Bill. I thereupon had the Senate strike out the Bill that had been prepared in the House and substitute the Bill which I had originally prepared. The Senate adopted the Bill written by me without a change of word. In the Bill introduced in July, in which the Hon. Carter Glass joined me, I had inserted a provision requiring that the powers of the Reserve System be employed in the service of commerce and to promote a stable price level. The meaning of this, of course, was to establish and maintain the stable value of money under mandate. This mandatory provision was stricken out in the House under the leadership of Hon. Carter Glass. I was unable to keep this mandatory provision in the Bill because of the secret hostilities developed against it, the origin of which at that time I did not fully understand."
"Under the administrations of Wilson, Harding, Coolidge and Hoover, this Act was diverted from its proper purpose on the advice of some who controlled the policies of a number of the largest banks."
"In the campaign of 1920, under the pretext of lowering the cost of living, those in charge of some of the largest banks demanded the contraction of credit and currency. This was done in spite of nine protests I had made on the floor of the Senate between January and June of 1920. Policies pursued by those in charge of the Central Federal Reserve Banks resulted in raising the value of money 80%, from an index of 60 in May 1920 to an index of 107 in June 1921."
"Again, under President Hoover, the contraction of credit took place on such a colossal scale as to force the dollar index (purchasing power) to 166. The consequence was universal bankruptcy, every bank in the United States being forced to suspend operations at the close of Hoover's services."
"The purpose of this book is to bring before the American people the knowledge that they must have regarding the nature and manipulations of their money system. In my opinion, America faces a crisis which may result in the loss of our Representative Constitutional Government unless every man and woman, rich or poor, young or old; doctor, lawyer, merchant, laborer, educator, clergyman, social worker, society leader; will bestir himself or herself toward the problem of bringing the fundamental truths of monetary science to every fireside."
"It is time for intelligent Americans to examine their money system and learn how to make simple but fundamental changes. Those who own insurance policies and savings accounts must bestir themselves to protect those accumulations. It is an obvious fact that the value of savings accounts and insurance policies will be destroyed unless correct measures are taken to restore property values, employment, and equitable raw material price levels. Instead of allowing our entire social order to be changed, we should examine the fundamental cause of our economic chaos. Making a few intelligent and scientific changes in the operation of our money system will eliminate the dangers of our being afflicted by false principles."
"It is hopeless to think that a few public- spirited citizens in some of the key cities of the United States can accomplish this enormous benefit. They cannot; their handicaps are many. The truths themselves are very simple, but many of the newspapers and publishing companies allow themselves to be used to carry misinformation to the American public, while neglecting to print the truths. Honest money principles are understandable to every one when the money subject is presented in its true light."
"America will remain in a deplorable condition only so long as the "Let George do it" attitude continues."
"Americans must bestir themselves to eliminate the causes of this business depression and social disorder, and restore prosperity and opportunities to the American people. Loyal Americans realize that the possession of knowledge carries with it the responsibility of dissemination."
"It required the assistance of every loyal American to help win the World War. In my opinion, the American people have more at stake today than they had at the time of the World War, not that I at all deprecate the glorious services rendered by men in uniform. But I believe the future of our nation and the principles for which it has stood, were less in jeopardy then than they are today. It is not necessary that you make the sacrifices you made at the time of the World War, but the cooperation of every one in this important educational program is absolutely necessary."
"The solution of the problem to protect our homes does not rest with a few leaders in a distant city. It is necessary that every man and woman appoint himself and herself a leader. Honest Money Groups must be formed in every block, in every precinct throughout the United States, and in every rural community. The rural community centers and schoolhouses can be most profitably employed this winter in showing the American farmers how simply they can solve all of their own problems. Their grave troubles have been caused not by overproduction, but by money manipulations frequently executed upon foreign advice and to harmonize with foreign "policies." The result has been the extraction of dollars of a distorted purchasing power from the American farmer. Collecting dollars of such unfair purchasing power has deprived many American farmers of their homes, and all farmers of their share in the industrial products which this nation is so well equipped to manufacture and distribute."
"The principal reason for endorsing this book is that I feel it is an intelligent vehicle for the dissemination of the truths which must be understood in every home and crystallized into legislation as quickly as possible."
Robert L. Owen,
New York City,
October 29, 1934.
From the forward of "Money Creators" by Gertrude Coogan http://www.archive.org/stream/MoneyCreators/Coogan-MoneyCreators-WhoCreatesMoney-WhoShouldCreateIt1935_djvu.txt
http://occupywallst.org/forum/free-democracy-amendment/#comment-751774
http://www.youtube.com/watch?v=RrwbgdtbdXE&feature=youtube_gdata_player
It's no more federal than Federal Express.
Wow, awards for most informative documentary and best cartoon ever.
I have read that income tax was created so they could enact Prohibition due to the lost income on alcohol tax !!!
Yes, the FED is a corp not related to the government and Lord knows why that happened.
The income tax was created to compensate for the lowering of tariffs which had protected domestic production from foreign competition. One of the consequences of these tariffs had been a large and growing government surplus that politicians for some reason had felt needed to be avoided.
Senator Nelson Aldrich, the maternal grandfather of the Rockefeller brothers, had been instrumental in the writing of the Payne-Aldrich Tariff Act for lowering tariffs in April of 1909 while at the same time being instrumental in the writing of the income tax amendment in June of 1909. Just a year before in 1908 in response to the Panic of 1907, he had been responsible for the passage of the Aldrich–Vreeland Act which had established the National Monetary Commission leading to the Aldrich Plan and the Federal Reserve System mainly based upon the central banking designs of Paul Warburg that had been published in 1906 and discussed in secret at the Jekyll Island Club in 1911 where both Aldrich and J. P. Morgan had been members. By having published rumors that the Knickerbocker Trust Company had become insolvent in 1907, J. P. Morgan is thought by some historians to have engaged in a deliberate act of market manipulation that had precipitated the 1907 panic to consolidate the banks controlled by Morgan.
Thanks. Just want to make sure the sources I trust are not throwing me off.
Oh, and no set of links about the Fed would be complete without a nod to the book "The Creature From Jekyll Island:"
http://archive.org/details/TheCreatureFromJekyllIsland
Nice. Information is plentiful yet most of the world doesn't know.
That's true. I had no clue about the Fed until I came to this site. Right now I'm watching your YouTube clip from below. It's hilarious!
I'd recommend "End the Fed" by Ron Paul, but imagine I'll get banned for that! I've never read it but imagine it gives a good explanation.
Nah, you won't get banned for mentioning Paul's name. It's way past election so I'm sure it's no prob. And Paul does know a thing or two about the Fed. He's of the school of thought that we should eliminate it, which I totally agree with. But I'm not an expert and some think it serves a good purpose by 'stabilizing the economy' and such. Not being very knowledgeable about economics I can't really say either way, but from a fairly intelligent layman's point of view, it seems like way more harm's being done than good.
I should have said coolest cartoon ever!
It's a kick-ass cartoon. I'm almost thru with it. Had to pause it periodically to take care of things.
Yeah, I saw that comment earlier talking about conspiracy theories. Here's what the Fed themselves say:
http://www.federalreserve.gov/faqs/about_14986.htm
And, just for fun:
http://www.globalresearch.ca/who-owns-the-federal-reserve/10489
http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve
Textbook case
federal income tax was enacted in 1913. prohibition was enacted in 1919
KRS One kickin it on the FEderal Reserve
http://www.youtube.com/watch?v=AEb2WCK1nYE