Creature From Jekyll Island by G. Edward

403

UPl/Bettmann

The First National Bank in St.

Petersburg, Florida experiences a

run on June 12,1930. Angry

depositors want their money, but the

bank cannot pay them. Their money

has been loaned to others. This

scene has been repeated thousands

of times throughout history and in

every country. It is the consequence

of fractional-reserve banking.

John Kenneth Galbraith, well-known

historian and professor at Harvard,

has verified that he was asked to bfj

part of the team that put together Vn

Report from Iron Mountain, a think-tank study commissioned by the ,

Defense Department. The purpose '

the study was to explore novel waff

keeping the masses in subsen/iei'

When a copy of the Report was ^

to the press, the government cla'%

it was a hoax. Galbraith confirmed

it was totally authentic.

UPl/Bettmann

Section V

THE HARVEST

Monetary and political scientists continue to

expound the theoretical merits of the Federal

Reserve System. It has become a modern act of

faith that economic life simply could not go on

without it. But the time for theory is past. The

Creature moved into its final lair in 1913 and has

snorted and thrashed about the landscape ever

since. If we wish to know if it is a creature of

service or a beast of prey, we merely have to look

at what it has done. And, after the test of all those

years, we can be sure that what it has done, it will

continue to do. Or, to use the Biblical axiom, a tree

shall be known by the fruit it bears. Let us now

examine the harvest.

Chapter Twenty

THE LONDON

CONNECTION

The rise of the House of Morgan; Morgan's ties

with England and the House of Rothschild; the

connection between the Federal Reserve System

and the Bank of England; the Fed's decision to