Creature From Jekyll Island by G. Edward

exports began to decline; unemployment began to rise; low interest rates and easy credit led to speculation in the securities markets; and the system lunged full speed ahead toward the Great Crash of 1929. But that part of the story must wait for another chapter.

The technician who actually drafted the final version of the Federal Reserve Act was H. Parker Willis. After the System was created, he was appointed as First Secretary of the Board of Governors.

By 1929, he had become disillusioned with the cartel and, in an article published in The North American Review, he wrote: In the autumn of 1926 a group of bankers, among whom was one with a world famous name, were sitting at a table in a Washington hotel. One of them raised the question whether the low discount rates of the System were not likely to encourage speculation. 'Yes,' replied the conspicuous figure referred to, 'they will, but that cannot be helped. It is the price we must pay for helping Europe.'2

There can be little doubt that the banker in question was J.P.

(Jack) Morgan, Jr. It was Jack who was imbued with English tradition from the earliest age, whose financial empire had its roots in London, whose family business was saved by the Bank of England, who spent six months out of every year of his later life as a resident of England, who had openly insisted that his junior partners demonstrate a 'loyalty to Britain,'3 and who had directed the Council on Foreign Relations, the American branch of a secret society dedicated to the supremacy of British tradition and political 1- When an item is in demand, its price goes up. In the case of bonds and other interest-bearing debt instruments, the price is expressed in reverse of its interest yield. The higher the price, the lower the interest. In other words, the higher the price, the more one has to pay to obtain the same dollar return in interest. Therefore, when the Fed creates an artificial demand for bonds or commercial paper, such as acceptances, the interest yield on these items goes down, which makes them more costly as an investment.

2- 'The Failure of the Federal Reserve,' by H. Parker Willis, The North American Revieiu, May, 1929, p. 553.

3- Chernow, p. 167.

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power. It is only with that background that one can fully appreciate the willingness to sacrifice American interests. Indeed, 'it is the price we must pay for helping Europe.'

In spite of the growing signs of crisis in the American economy, Morgan's protege, Benjamin Strong, was nonetheless pleased with his accomplishment. In a letter written in 1929 to Parker Gilbert, who was the American Agent for Reparations, he said:

Our policy of the last four years, up to this January, has been effective in accomplishing the purpose for which it was designed. It has enabled monetary reorganization to be completed in Europe, which otherwise would haVe been impossible. It was undertaken with the well recognized hazard that we were liable to encounter a big speculation and some expansion of credit.. . Our course was perfectly obvious. We had to undertake it. The conditions permitted it, and the possibility of damage abroad was at a minimum.

Damage abroad? What about damage at home? It is clear that Strong saw little difference between the two. He was the forerunner of the internationalists who have operated the Federal Reserve ever since. He viewed the United States as but one piece in a complex world financial structure, and what was good for the world was good for America. And, oh yes, what was good for England was good for the world!

THE BRITISH-AMERICAN UNION

It is one of the least understood realities of modern history that many of America's most prominent political and financial figures-then as now—have been willing to sacrifice the best interests of the United States in order to further their goal of creating a one-world government. The strategy has remained unchanged since the formation of Cecil Rhodes' society and its offspring, the Round Table Groups. It is to merge the English-speaking nations into a single political entity, while at the same time creating similar groupings for other geopolitical regions. After this is accomplished, all of these groupings are to be amalgamated into a global government, the so-called Parliament of Man. And guess who is planning to control that government from behind the scenes.

This strategy was expressed aptly by Andrew Carnegie in his book, Triumphant Democracy. Expressing concern that England was in decline as a world power, he said:

1. Chandler, p. 458. For additional clarification, also see pp. 459-63.

THE LONDON CONNECTION

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Reunion with her American children is the only sure way to prevent continued decline.... Whatever obstructs reunion I oppose; whatever promotes reunion I favor. I judge all political questions from this standpoint....

The Parliament of Man and the Federation of the World have already been hailed by the poet, and these mean a step much farther in advance of the proposed reunion of Britain and America.... I say that as surely as the sun in the heavens once shone upon Britain and America united, so surely is it one morning to rise, shine upon, and greet again the reunited state, 'The British-American Union.'1

SUMMARY