Federal Reserve Banks
41 Things You Should Know
About Federal Reserve Banks!
From endoftheamericandream.com:
Today, most American students don't even understand what a central bank is, much
less that the battle over central banks is one of the most important themes in U.S.
history.
The truth is that our nation was birthed in the midst of a conflict over taxation and the
control of our money. Central banking has played a key role in nearly all of the wars
that America has fought. Presidents that resisted the central bankers were shot, while
others shamefully caved in to their demands. Our current central bank is called the
Federal Reserve and it is about as "federal" as Federal Express is. The truth is that it
is a privately-owned financial institution that is designed to ensnare the U.S.
government in an endlessly expanding spiral of debt from which there is no escape.
The Federal Reserve caused the Great Depression and the Federal Reserve is at the
core of our current economic crisis. None of these things is taught to students in
America's schools today.
In 2010, young Americans are taught a sanitized version of American history that
doesn't even make any sense. As with so many things, if you want to know what really
happened just follow the money.
The following are 41 facts about the history of central banks in the United States that
every American should know....
1. As a result of the Seven Years War with France, King George III of England was
deeply in debt to the central bankers of England.
2. In an attempt to raise revenue, King George tried to heavily tax the colonies in
America.
3. In 1763, Benjamin Franklin was asked by the Bank of England why the colonies
were so prosperous, and this was his response....
"That is simple. In the colonies we issue our own money. It is called Colonial Script. We
issue it in proper proportion to the demands of trade and industry to make the products
pass easily from the producers to the consumers. In this manner, creating for
ourselves our own paper money, we control its purchasing power, and we have no
interest to pay to no one."
4. The Currency Act of 1764 ordered the American Colonists to stop printing their
own money. Colonial script (the money the colonists were using at the time) was to be
exchanged at a two-to-one ratio for "notes" from the Bank of England.
5. Later, in his autobiography, Benjamin Franklin explained the impact that this
currency change had on the colonies....
"In one year, the conditions were so reversed that the era of prosperity ended, and a
depression set in, to such an extent that the streets of the Colonies were filled with
unemployed."
6. In fact, Benjamin Franklin stated unequivocally in his autobiography that the
power to issue currency was the primary reason for the Revolutionary War....
"The colonies would gladly have borne the little tax on tea and other matters had it not
been that England took away from the colonies their money, which created
unemployment and dissatisfaction. The inability of the colonists to get power to issue
their own money permanently out of the hands of George III and the international
bankers was the prime reason for the Revolutionary War."
7. Governor Morris, one of the authors of the U.S. Constitution, solemnly warned
us in 1787 that we must not allow the bankers to enslave us....
"The rich will strive to establish their dominion and enslave the rest. They always did.
They always will...
They will have the same effect here as elsewhere, if we do not, by (the power of)
government, keep them in their proper spheres."
8. Unfortunately, those warning us about the dangers of a central bank did not
prevail. After an aborted attempt to establish a central bank in the 1780s, the First
Bank of the United States was established in 1791. Alexander Hamilton (who had close
ties to the Rothschild banking family) cut a deal under which he would support the
move of the nation's capital to Washington D.C. in exchange for southern support for
the establishment of a central bank.
9. George Washington signed the bill creating the First Bank of the United States
on April 25, 1791. It was given a 20 year charter.
10. In the first five years of the First Bank of the United States, the U.S.
government borrowed 8.2 million dollars and prices rose by 72 percent.
11. The opponents of central banking were not pleased. In 1798, Thomas
Jefferson said the following...."I wish it were possible to obtain a single amendment to
our Constitution - taking from the federal government their power of borrowing."
12. In 1811, the charter of the First Bank of the United States was not renewed.
13. One year later, the War of 1812 erupted. The British and the Americans were
at war once again.
14. In 1814, the British captured and burned Washington D.C., but the Americans
subsequently experienced key victories at New York and at New Orleans.
15. The Treaty of Ghent, officially ending the war, was ratified by the U.S. Senate
on February 16th, 1815 and was ratified by the British on February 18th, 1815.
16. In 1816, another central bank was created. The Second Bank of the United
States was established and was given a 20 year charter.
17. Andrew Jackson, who became president in 1828, was determined to end the
power of the central bankers over the United States.
18. In fact, in 1832, Andrew Jackson's re-election slogan was "JACKSON and NO
BANK!"
19. On July 10th, 1832 President Jackson said the following about the danger of a
central bank....
"It is not our own citizens only who are to receive the bounty of our government. More
than eight millions of the stock of this bank are held by foreigners...is there no danger
to our liberty and independence in a bank that in its nature has so little to bind it to our
country? ...Controlling our currency, receiving our public moneys, and holding
thousands of our citizens in dependence... would be more formidable and dangerous
than a military power of the enemy."
20. In 1835, President Jackson completely paid off the U.S. national debt. He is the
only U.S. president that has ever been able to accomplish this.
21. President Jackson vetoed the attempt to renew the charter of the Second Bank
of the United States in 1836.
22. Richard Lawrence attempted to shoot Andrew Jackson, but he survived. It is
alleged that Lawrence said that "wealthy people in Europe" had put him up to it.
23. The Civil War was another opportunity for the central bankers of Europe to get
their hooks into America. In fact, it is claimed that Abraham Lincoln actually contacted
Rothschild banking interests in Europe in an attempt to finance the war effort.
Reportedly, the Rothschilds were demanding very high interest rates and Lincoln
balked at paying them.
24. Instead, Lincoln pushed through the Legal Tender Act of 1862. Under that act,
the U.S. government issued $449,338,902 of debt-free money.
25. This debt-free money was known as "Greenbacks" because of the green ink
that was used.
26. The central bankers of Europe were not pleased. The following quote
appeared in the London Times in 1865....
"If this mischievous financial policy, which has its origin in North America, shall become
endurated down to a fixture, then that Government will furnish its own money without
cost. It will pay off debts and be without debt. It will have all the money necessary to
carry on its commerce. It will become prosperous without precedent in the history of the
world. The brains, and wealth of all countries will go to North America. That country
must be destroyed or it will destroy every monarchy on the globe."
27. Abraham Lincoln was shot dead by John Wilkes Booth on April 14th, 1865.
28. After the Civil War, all money in the United States was created by bankers
buying U.S. government bonds in exchange for bank notes.
29. James A. Garfield became president in 1881, and he was a staunch opponent
of the banking powers. In 1881 he said the following....
"Whoever controls the volume of money in our country is absolute master of all
industry and commerce...and when you realize that the entire system is very easily
controlled, one way or another, by a few powerful men at the top, you will not have to
be told how periods of inflation and depression originate."
30. President Garfield was shot about two weeks later by Charles J. Guiteau on
July 2nd, 1881. He died from medical complications on September 19th, 1881.
31. In 1906, the U.S. stock market was setting all kinds of records. However, in
March 1907 the U.S. stock market absolutely crashed. It is alleged that elite New York
bankers were responsible.
32. In addition, in 1907 J.P. Morgan circulated rumors that a major New York bank
had gone bankrupt. This caused a massive run on the banks. In turn, the banks
started recalling all of their loans. The panic of 1907 resulted in a congressional
investigation that ended up concluding that a central bank was "necessary" so that
these kinds of panics would never happen again.
33. It took a few years, but the international bankers finally got their central bank in
1913.
34. Congress voted on the Federal Reserve Act on December 22nd, 1913
between the hours of 1:30 AM and 4:30 AM.
35. A significant portion of Congress was either sleeping at the time or was already
at home with their families celebrating the holidays.
36. The president that signed the law that created the Federal Reserve, Woodrow
Wilson, later sounded like he very much regretted the decision when he wrote the
following....
"A great industrial nation is controlled by its system of credit. Our system of credit is
privately 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."
37. Between 1921 and 1929 the Federal Reserve increased the U.S. money
supply by 62 percent. This was the time known as "The Roaring 20s".
38. In addition, highly leveraged "margin loans" became very common during this
time period.
39. In October 1929, the New York bankers started calling in these margin loans
on a massive scale. This created the initial crash that launched the Great Depression.
40. Rather than expand the money supply in response to this crisis, the Federal
Reserve really tightened it up.
41. In fact, it was reported the U.S. money supply contracted by eight billion dollars
between 1929 and 1933. That was an extraordinary amount of money in those days.
Over one-third of all U.S. banks went bankrupt. The New York bankers were able to
buy up other banks and all kinds of other assets for pennies on the dollar.
But are American students being taught any of this today?
