From the upcoming book New World Odor by Greg Fernandez Jr.
The blueprints for the Federal Reserve System were created on Jekyll Island in 1910. It was there off the coast of Georgia, on an island in Glynn County, where Senator Nelson Aldrich invited some of the world’s most powerful bankers to help shape the National Monetary Commission Report. The National Monetary Commission, chaired by Senator Nelson Aldrich, was created in 1908 as a result of the Panic of 1907.
The “Panic of 1907,” also known as the Banker’s Panic, created the reason needed for the existence of a Federal Reserve System. The New York Stock Exchange dropped nearly 50% during the panic, causing a run on the banks when everyone tried to get their money out at the same time. Nationwide, this forced some state and local banks into bankruptcy. As a result of the panic, financiers and special interest groups pushed for a central bank in the United States. In G. Edward Griffin’s book, The Creatures from Jekyll Island, Griffin points out that “it is the act of borrowing by the federal government that causes money to spring into existence.”
Historian Frederick Lewis Allen wrote in Life magazine about “certain chroniclers” who had concluded JP Morgan “interests took advantage of the unsettled conditions during the autumn of 1907 to precipitate the panic, guiding it shrewdly as it progressed so that it would kill off rival banks and consolidate the preeminence of the banks within the Morgan orbit.”
In short, the panic created the excuse for a central banking system, the Federal Reserve Bank. What was decided at Jekyll Island was that a central banking system was needed to prevent a panic similar to the one in 1907. It is reported that every person who attended the Jekyll Island conference in 1910 agreed that a central bank was needed.
President Thomas Jefferson believed banking institutions were “more dangerous to our liberties than standing armies. 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.”
In 1934, Frank Vanderlip, then-President of National City Bank, (owned by the Rockefellers) spoke with the Sunday Evening Post about Jekyll Island and the creation of the Federal Reserve System. “Near the close of 1910,” said Vanderlip, “I was as secretive – indeed, as furtive – as any conspirator…I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System…We were told to leave our last names behind us. We were told, further, that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson, where Senator Aldrich’s private car would be in readiness, attached to the rear end of a train for the South…Once aboard the private car we began to observe the taboo that had been fixed on last names.” If they were discovered by the media and the public “all our time and effort would be wasted.”
In a quote from his memoirs, Frank Vanderlip again wrote about the secrecy of the 1910 Jekyll Island conference. Mr. Vanderlip stated the “secret expedition to Jekyll Island” was “the actual conception of what eventually became the Federal Reserve System.”
The Monetary Commission Report suggested a central government be created in the name of a regional reserve, with the New York branch at the head of the system. What came from the Monetary Commission Report, created at Jekyll Island, turned into the Aldrich Bill. With Aldrich’s name on the bill, it was doomed to fail. His ties to J.P. Morgan and John D. Rockefeller II put an end to the Aldrich Bill, temporarily. The bill would return in another form known as the Federal Reserve Act.
Years later, Vanderlip would admit that the central government plan created at Jekyll Island was essentially the same as what was signed into law December 22nd, 1913, as the Federal Reserve Act. The Federal Reserve Act passed both the House (298-60) and Senate (43-25) with ease.
Following the vote, Congressman Charles A. Lindbergh Sr. observed, “The new law will create inflation whenever the trusts want inflation.”
Thomas Jefferson believed that “a government big enough to give you everything you want, is big enough to take away everything you have.”
“Paper is not money. It can’t be money. It’s only money because we’re forced to use it and because there’s a residual thrust into pieces of paper that we carry around because at one time it did have real value.” – Ron Paul (1983)
Written by the Board of Governors of the Federal Reserve System, published in 1939, the Federal Reserve System – Purposes and Functions states that “the primary function” of the system “is to regulate the flow of bank credit and money.” This little 300-page book explains that “all principle nations” have central banks that “perform functions corresponding to those of the Federal Reserve System.”
The twelve regional banks of the Federal Reserve were “coordinated by a board of governors in Washington.” The Federal Reserve System was created to “foster a flow of credit and money that will facilitate orderly economic growth, a stable dollar, and long-run balance in our international payments…the Federal Reserve, through its influence on credit and money, affects indirectly every phase of American enterprise and commerce and every person in the United States.”
England’s equivalent to the Federal Reserve System is the Bank of England, which has been around since 1694 and is considered the second oldest central bank in the world. Likewise, France has the Banque of France, created under Napoleon on January 18th, 1800. The Bank of Canada is also mentioned as an example of a centralized bank functioning the same as the Federal Reserve. After the bank panic of 1907, the time was ripe for proponents of a centralized bank in America to push their agenda; under the guise of saving America from a similar panic in the future and preventing the dreaded “money crisis.”
“The greatest danger when we accept the notion that the government’s supposed to take care of us from cradle to grave, that we’re supposed to be the policemen of the world, is that ultimately it’s done at the expense of personal liberty.” – RonPaul (1/31/12)