In Part 1, click here , the warnings of "who rules America" ruled out any conspiracy. It concluded the "elephants in the room" are clearly visible to anyone choosing to look. The thread of money and power relevant to "who rules America" was traced to the UK's Rhodes-Milner Round Table and here at home, to the American Round Table. Other knots on the thread of money and power in America include the Federal Reserve System, the American Liberty League, the League of Nations, the Council on Foreign Relations, the 1944 Bretton Woods Conference, the United Nations, the Central Intelligence Agency, the Bilderberg Group, the "Chicago School", the Business Round Table, the Trilateral Commission, NAFTA, the World Trade Organization, the U.S. Supreme Court, and the Chamber of Commerce.
Part 2 begins with the Federal Reserve System, continues through the League of Nations and introduces the Council on Foreign Relations.
The Federal Reserve System (Fed): The importance of the Fed, as with The Bank of England, to be held in private hands, was best expressed by Meyer Nathaniel Rothschild in a speech to a gathering of world bankers in 1912, "Let me control a peoples currency and I care not who makes their laws." Plans for a Central Bank in the U.S. were, by then, well developed. Having recognized how the power of government could be used to advance their own interests, members of the American Round Table backed Woodrow Wilson in the presidential elections and then controlled him through their front man, Colonel House.
The Wall Street crowd was generally referred to as the "money trust." The suspicion of the "money trust" peaked in 1912 during an investigation by a House banking subcommittee which revealed that twelve banks in New York, Boston, and Chicago, had 746 interlocking directorships in 134 corporations. Rep. Robert L. Henry of Texas said that for the past five years, the nation's financial resources had been "concentrated in the city of New York (where they) now dominate more than 75 percent of the moneyed interests of America ..." On December 13, 1911, George McC. Reynolds, the President of the Continental and Commercial Bank of Chicago, said to a group of other bankers: "I believe the money power now lies in the hands of a dozen men..." Yet, the plan for the Fed moved forward.
Signed into law in 1913, from 1850-1913, The Statistical History of the U.S. reports real worker wages tripled in 63 years, prices declined and GDP growth exceeded 4%/year. In the last 63 years real worker wages increased through the mid-1970s but have remained flat for more than 3 decades. Annual GDP growth averaged about 1% less than during the prior period. What a dollar was valued at in terms of 1913 spending power is equivalent to a 2010 nickel. Productivity and wage increases slowed, prices and inflation increased. But, as Charles Lindbergh noted, boom-bust cycles would be more "scientifically created" through the inevitable consequence of excessive growth in bank credit.
The plan that would become the Federal Reserve Act was essentially that of Senator Nelson Aldrich, leader of the Republican Party whose nickname was 'The General Manger of the Country'. His daughter Abby would later marry John D. Rockefeller, Jr. Secretly developed at the Rockefeller vacation home on Jekyll Island, other participants included Treasury's A. Piatt Andrew, J.P. Morgan & Co. partner Henry P. Davison, National City Bank president Frank A. Vanderlip and Kuhn, Loeb, and Co. partner Paul M. Warburg and president Jacob H. Schiff.
Colonel House, President Wilson's confidant without portfolio, assured the President's 1913 signature authorizing formation of the Fed as an independent privately owned Central Bank. It was to be owned by twelve regional Fed banks which, in turn, would be owned by other private banks in each of the regions despite the fact of Thomas Jefferson's earlier warning, "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered".
Colonel House, the Colonel was an honorary title, was the son of British financier Thomas W. House, a Rothschild agent who made his fortune by supplying the south with supplies from France and England during the Civil War. He will continue in evidence throughout his life at the interface of money and polotics.