- CHAPTER FIVE
- The House of Rothschild
-
-
- 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
- __________________________
-
- 32 John Moody, "The Seven Men",
McClure's Magazine, August, 1911, p. 418
-
-
-
- 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.
-
- 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 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 Vice President, George 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.
-
- 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.*
- 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.
- __________________________
-
- * "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.
-
-
-
- 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 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.
-
- 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 Baring 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 Street33
- , 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
- __________________________
-
- 33 Henry Clews, Twenty-eight Years in
Wall Street, Irving Company, New York, 1888, page 157
-
-
-
- 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 grandmother, 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.
-
- 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 Magnificent35
- 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 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. 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.
- __________________________
-
- 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
-
-
-
- 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 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.
-
- 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.
-
- LaRouche39
- 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 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. Carrol Quigley refers to
this group as "The British-American Secret Society" in 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
- __________________________
-
- 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.
-
-
-
- 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.*
- After World War I, the Round Table became
known as the Council on Foreign Relations in the United States, and the
Royal Institute of International Affairs 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 Bilderbergers, representing the identical
financial interests, began operations, with the more important officials,
such as Robert Roosa, being members of all three groups.
- __________________________
-
- 41 William Guy Carr, Pawns In The Game,
privately printed, 1956, pg. 60
-
- * 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.
-
-
- 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 & 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.
"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. 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."
-
- According to William Guy Carr, in Pawns
In The Game,42
- the initial meeting of these ex officio
planners took place in Mayer Amschel Bauer's Goldsmith Shop in Frankfurt
in 1773. Bauer, who adopted the name of "Rothschild" or Red Shield,
from the red shield which he hung over his door to advertise his business
(the red shield today is the official coat of arms of the City of Frankfurt),
(See Cover) "was only thirty years of age when he invited twelve other
wealthy and influential men to meet him in Frankfurt. His purpose was to
convince them that if they agreed to pool their resources they could then
finance and control the World Revolutionary Movement and use it as their
Manual of Action to win ultimate control of the wealth, natural resources,
and manpower of the entire world. This agreement reached, Mayer unfolded
his revolutionary plan. The project would be backed by all the power that
could be purchased with their pooled resources. By clever manipulation
of their combined wealth it would be possible to create such adverse economic
conditions that the masses would be reduced to a state bordering on starvation
by unemployment... Their paid propagandists would arouse feelings of hatred
and revenge against the ruling classes by exposing all real and alleged
cases of extravagance, licentious conduct, injustice, oppression, and persecution.
They would also invent infamies to bring into disrepute others who might,
if left alone, interfere with their overall plans... Rothschild turned
to a manuscript and proceeded to read a carefully prepared plan of action.
- 1. He argued that LAW was FORCE only
in disguise. He reasoned it was logical to conclude 'By the laws of nature
right lies in force.'
- 2. Political freedom is an idea, not
a fact. In order to usurp political power all that was necessary was to
preach 'Liberalism' so that the electorate, for the sake of an idea, would
yield some of their power and prerogatives which the plotters could then
gather into their own hands.
- 3. The speaker asserted that the Power
of Gold had usurped the power of Liberal rulers.... He pointed out that
it was immaterial to the success of his plan whether the established governments
were destroyed by external or internal foes because the victor had to of
necessity ask the aid of 'Capital' which 'Is entirely in our hands'.
- 4. He argued that the use of any and
all means to reach their final goal was justified on the grounds that the
ruler who governed by the moral code was not a skilled politician because
he left himself vulnerable and in an unstable position.
- 5. He asserted that 'Our right lies in
force. The word RIGHT is an abstract thought and proves nothing. I find
a new RIGHT... to attack by the Right of the Strong, to reconstruct all
existing institutions, and to become the sovereign Lord of all those who
left to us the Rights to their powers by laying them down to us in their
liberalism.
- 6. The power of our resources must remain
invisible until the very moment when it has gained such
- __________________________
-
- 42 William Guy Carr, Pawns In The Game,
privately printed, 1956
-
-
-
- strength that no cunning or force can
undermine it. He went on to outline twenty-five points.
- Number 8 dealt with the use of alcoholic
liquors, drugs, moral corruption, and all vice to systematically corrupt
youth of all nations.
- 9. They had the right to seize property
by any means, and without hesitation, if by doing so they secured submission
and sovereignty.
- 10. We were the first to put the slogans
Liberty, Equality, and Fraternity into the mouths of the masses, which
set up a new aristocracy. The qualification for this aristocracy is WEALTH
which is dependent on us.
- 11. Wars should be directed so that the
nations engaged on both sides should be further in our debt.
- 12. Candidates for public office should
be servile and obedient to our commands, so that they may readily be used.
- 13. Propaganda--their combined wealth
would control all outlets of public information.
- 14. Panics and financial depressions
would ultimately result in World Government, a new order of one world government."
-
- 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."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*
- , 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
- __________________________
-
- 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
-
- * "The original name of Rothschild
was Bauer." p. 397, Henry Clews, Twenty-eight years in Wall Street.
-
-
- 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 Rothschilds46
- 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.
-
- 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 sterling, giving rise to the saying, 'The
Allies won the Battle of Waterloo, but it was really Rothschild who won.'"*
-
-
- 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
-
- __________________________
-
- 46 Ignatius Balla, The Romance of the
Rothschilds, Everleigh Nash, London, 1913
-
-
-
- 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.
-
-
- 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: The Bank of Sweden, in 1656, which began to issue notes in 1661,
the earliest 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.*
-
-
- 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.
- __________________________
-
- * 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.
-
-
-
- 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 Bankers
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.
- __________________________
-
- 48 David Druck, Baron Edmond de Rothschild,
(Privately printed), N.Y. 1850
-
-
-
- Josephson49
- 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."50
-
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