Search XAT3 & History of Money



The 19th century became known as the age of the Rothschild's when it was estimated they controlled half of the world's wealth. While their wealth continues to increase today, they have managed to blend into the background, giving an impression that their power has waned. They only apply the Rothschild name to a small fraction of the companies they actually control. Some authors claim that the Rothschild's had not only taken over the Bank of England but they had also in 1816 backed a new privately owned Central Bank in America called The Second Bank of The United States, causing huge problems to the American president.

ANDREW JACKSON (1828 - 1836)

When the American congress voted to renew the charter of The Second Bank of The United States, Jackson responded by using his veto to prevent the renewal bill from passing. His response gives us an interesting insight. "It is not our own citizens only who are to receive the bounty of our government. More than eight millions of the stock of this bank are held by foreigners... is there no danger to our liberty and independence in a bank that in its nature has so little to bind it to our country?...

Controlling our currency, receiving our public moneys, and holding thousands of our citizens in dependence... would be more formidable and dangerous than a military power of the enemy. If government would confine itself to equal protection, and, as Heaven does its rains, shower its favour alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles."

Andrew Jackson 1 In 1832 Jackson ordered the withdrawal of government deposits from the Second bank and instead had them put into safe banks. The Second Banks head, Nicholas Biddle was quite candid about the power and intention of the bank when he openly threatened to cause a depression if the bank was not re-chartered, we quote. "Nothing but widespread suffering will produce any effect on Congress... Our only safety is in pursuing a steady course of firm restriction - and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-charter of the bank."

Nicholas Biddle 1836 By calling in existing loans and refusing to issue new loans he did cause a massive depression, but in 1836 when the charter ran out, the Second Bank ceased to function. It was then he made these two famous statements: "The Bank is trying to kill me - but I will kill it!" and later "If the American people only understood the rank injustice of our money and banking system - there would be a revolution before morning..."

Andrew Jackson When asked what he felt was the greatest achievement of his career Andrew Jackson replied without hesitation "I killed the bank!" However we will see this was not the end of private financial influence passing itself off as official when we look at...

1. Andrew Jackson, Veto of the Bank Bill, to the Senate, (1832)


With the Central Bank killed off, fractional reserve banking moved like a virus through numerous state chartered banks instead causing the instability this form of economics thrives on. When people lose their homes someone else wins them for a fraction of their worth. Depression is good news to the lender; but war causes even more debt and dependency than anything else, so if the money changers couldn't have their Central Bank with a license to print money, a war it would have to be. We can see from this quote of the then chancellor of Germany that slavery was not the only cause for the American Civil War. "The division of the United States into federations of equal force was decided long before the Civil War by the high financial powers of Europe. These bankers were afraid that the US, if they remained as one block, and as one nation, would attain economic and financial independence, which would upset their financial domination over the world."

Otto von Bismark chancellor of Germany 1876 On the 12th of April 1861 this economic war began. Predictably Lincoln, needing money to finance his war effort, went with his secretary of the treasury to New York to apply for the necessary loans. The money changers wishing the Union to fail offered loans at 24% to 36%. Lincoln declined the offer. An old friend of Lincoln's, Colonel Dick Taylor of Chicago was put in charge of solving the problem of how to finance the war. His solution is recorded as this. "Just get Congress to pass a bill authorising the printing of full legal tender treasury notes... and pay your soldiers with them and go ahead and win your war with them also."

Colonel Dick Taylor When Lincoln asked if the people of America would accept the notes Taylor said. "The people or anyone else will not have any choice in the matter, if you make them full legal tender. They will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution."

Colonel Dick Taylor 1 Lincoln agreed to try this solution and printed 450 million dollars worth of the new bills using green ink on the back to distinguish them from other notes. "The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers..... The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government's greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power."

Abraham Lincoln 2 From this we see that the solution worked so well Lincoln was seriously considering adopting this emergency measure as a permanent policy. This would have been great for everyone except the money changers who quickly realised how dangerous this policy would be for them. They wasted no time in expressing their view in the London Times. Oddly enough, while the article seems to have been designed to discourage this creative financial policy, in its put down we're clearly able to see the policies goodness. "If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe."

Hazard Circular - London Times 1865 From this extract its plan to see that it is the advantage provided by the adopting of this policy which poses a threat to those not using it. 1863, nearly there, Lincoln needed just a bit more money to win the war, and seeing him in this vulnerable state, and knowing that the president could not get the congressional authority to issue more greenbacks, the money changers proposed the passing of the National Bank Act. The act went through. From this point on the entire US money supply would be created out of debt by bankers buying US government bonds and issuing them from reserves for bank notes. The greenbacks continued to be in circulation until 1994, their numbers were not increased but in fact decreased. "In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply."

John Kenneth Galbrath The American economy has been based on government debt since 1864 and it is locked into this system. Talk of paying off the debt without first reforming the banking system is just talk and a complete impossibility. That same year Lincoln had a pleasant surprise. Turns out the Tsar of Russia, Alexander II, was well aware of the money changers scam. The Tsar was refusing to allow them to set up a central bank in Russia. If Lincoln could limit the power of the money changers and win the war, the bankers would not be able to split America and hand it back to Britain and France as planned. The Tsar knew that this handing back would come at a cost which would eventually need to be paid back by attacking Russia, it being clearly in the money changers sights. The Tsar declared that if France or Britain gave help to the South, Russia would consider this an act of war. Britain and France would instead wait in vain to have the wealth of the colonies returned to them, and while they waited Lincoln won the civil war. With an election coming up the next year, Lincoln himself would wait for renewed public support before reversing the National Bank Act he had been pressured into approving during the war. Lincoln's opposition to the central banks financial control and a proposed return to the gold standard is well documented. He would certainly have killed off the national banks monopoly had he not been killed himself only 41 days after being re-elected. The money changers were pressing for a gold standard because gold was scarce and easier to have a monopoly over. Much of this was already waiting in their hands and each gold merchant was well aware that what they really had could be easily made to seem like much much more. Silver would only widen the field and lower the share so they pressed for...

1. Lincoln By Emil Ludwig 1930, containing a letter from Lincoln, also reprinted in Glory to God and the Sucker Democracy A Manuscript Collection of the Letters of Charles H. Lanphier compiled by Charles C. Patton.
2. Abraham Lincoln. Senate document 23, Page 91. 1865.


"Right after the Civil War there was considerable talk about reviving Lincoln's brief experiment with the Constitutional monetary system. Had not the European money-trust intervened, it would have no doubt become an established institution."

W.Cleon Skousen. Even after his death, the idea that America might print its own debt free money set off warning bells throughout the entire European banking community. On April 12th in 1866, the American congress passed the Contraction Act, allowing the treasury to call in and retire some of Lincoln's greenbacks, With only the banks standing to gain from this, it's not hard to work out the source of this action. To give the American public the false impression that they would be better off under the gold standard, the money changers used the control they had to cause economic instability and panic the people. This was fairly easy to do by calling in existing loans and refusing to issue new ones, a tried and proven method of causing depression. They would then spread the word through the media they largely controlled that the lack of a single gold standard was the cause of the hardship which ensued, while all this time using the Contraction Act to lower the amount of money in circulation.

It went from $1.8 billion in circulation in 1866 allowing $50.46 per person, to $1.3 billion in 1867 allowing $44.00 per person, to $0.6 billion in 1876 making only $14.60 per person and down to $0.4 billion only ten years later leaving only $6.67 per person and a continually growing population.

Most people believe the economists when they tell us that recessions and depressions are part of the natural flow, but in truth the money supply is controlled by a small minority who have always done so and will continue to do so if we let them. By 1872 the American public was beginning to feel the squeeze, so the Bank of England, scheming in the back rooms, sent Ernest Seyd, with lots of money to bribe congress into demonetising silver. Ernest drafted the legislation himself, which came into law with the passing of the Coinage Act, effectively stopping the minting of silver that year. Here's what he said about his trip, obviously pleased with himself. "I went to America in the winter of 1872-73, authorised to secure, if I could, the passage of a bill demonetising silver. It was in the interest of those I represented - the governors of the Bank of England - to have it done. By 1873, gold coins were the only form of coin money."

Ernest Seyd Or as explained by Senator Daniel of Virginia "In 1872 silver being demonetized in Germany, England, and Holland, a capital of 100,000 pounds ($500,000.00) was raised, Ernest Seyd was sent to this country with this fund as agent for foreign bond holders to effect the same object (demonetization of silver)". 1

Within three years, with 30% of the work force unemployed, the American people began to harken back to the days of silver backed money and the greenbacks. The US Silver Commission was set up to study the problem and responded with telling history: "The disaster of the Dark Ages was caused by decreasing money and falling prices... Without money, civilisation could not have had a beginning, and with a diminishing supply, it must languish and unless relieved, finally perish. At the Christian era the metallic money of the Roman Empire amounted to $1,800,million. By the end of the fifteenth century it had shrunk to less than $200,million. History records no other such disastrous transition as that from the Roman Empire to the Dark Ages..."

United States Silver Commission While they obviously could see the problems being caused by the restricted money supply, this declaration did little to help the problem, and in 1877 riots broke out all over the country. The bank's response was to do nothing except to campaign against the idea that greenbacks should be reissued. The American Bankers Association secretary James Buel expressed the bankers attitude well in a letter to fellow members of the association.

He wrote: "It is advisable to do all in your power to sustain such prominent daily and weekly newspapers, especially the Agricultural and Religious Press, as will oppose the greenback issue of paper money and that you will also withhold patronage from all applicants who are not willing to oppose the government issue of money. To repeal the Act creating bank notes, or to restore to circulation the government issue of money will be to provide the people with money and will therefore seriously affect our individual profits as bankers and lenders. See your congressman at once and engage him to support our interest that we may control legislation."
James Buel American Bankers Association 2 What this statement exposes is the difference in mentality between your average person and a banker. With a banker 'less really is more' and every need an opportunity to exploit. James Garfield became President in 1881 with a firm grasp of where the problem lay. "Whosoever controls the volume of money in any country is absolute master of all industry and commerce... And when you realise that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate."

James Garfield 1881 Within weeks of releasing this statement President Garfield was assassinated. The cry from the streets was to...

1. Senator Daniel of Virginia, May 22, 1890, from a speech in Congress, to be found in the Congressional Record, page 5128, quoting from the Bankers Magazine of August, 1873
2. from a circular issued by authority of the Associated Bankers of New York, Philadelphia, and Boston signed by one James Buel, secretary, sent out from 247 Broadway, New York in 1877, to the bankers in all of the States

FREE SILVER (1891 - 1912)

Fleecing of the flock is the term the money changers use for the process of booms and depressions which make it possible for them to repossess property at a fraction of its worth. In 1891 a major fleece was being planned. "On Sept 1st, 1894, we will not renew our loans under any consideration. On Sept 1st we will demand our money. We will foreclose and become mortgagees in possession. We can take two-thirds of the farms west of the Mississippi, and thousands of them east of the Mississippi as well, at our own price... Then the farmers will become tenants as in England..."

1891 American Bankers Association as printed in the Congressional Record of April 29, 1913 The continued gold standard made this possible. William Jennings Bryan was the Democratic candidate for president in 1896, campaigning to bring silver back as a money standard. (free Silver) "We will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labour this crown of thorns, you shall not crucify mankind upon a cross of gold."
William Jennings Bryan Of course the money changers supported his opposition on the Republican side so long as he wanted the gold standard maintained. The factory bosses were somehow convinced to tell their work force that business would close down if Bryan was elected, and everyone would lose their jobs. The Republicans won by a small margin. Bryan tried again in 1900 and in 1908 but lost both times. He became secretary of state under Wilson in 1912 but became disenchanted and resigned in 1915 under suspicious circumstances connected with the sinking of the Lusitania which drove America into the First World War.


If you want to work out the cause of the crash of 1907, checking who benefited is where you might like to look first. With the stock market slump causing most of the over extended banks to falter, in steps J.P. Morgan offering to save the day. People will do strange things when in a panic, and this might explain why Morgan was authorised to print $200 million from nothing, which he then used to prop things up. Some of the troubled banks with less than 1% in reserve had no choice. It was accept this solution or go under. Even if they had worked out that their problems had been caused by the same people now offering the solution, there is not a lot they could have done about it. J.P.Morgan was hailed a hero. "All this trouble could be averted if we appointed a committee of six or seven men like J.P.Morgan to handle the affairs of our country."

Woodrow Wilson But not everyone was fooled. "Those not favourable to the money trust could be squeezed out of business and the people frightened into demanding changes in the banking and currency laws which the Money Trust would frame."

Rep. Charles A. Lindbergh (R-MN) Apart from making a small number rich at the expense of the many, in this case the instability also served the second purpose of encouraging the public to believe that they would be better off living under a Central Bank and a Gold Standard. Desperate people have little time for logic.


In Washington the statue of Lincoln sitting in his chair is facing a building called the Federal Reserve Headquarters. This institution would not be there if Lincoln's monetary policy had been adopted by the USA. It is not Federal and it has doubtful reserves. The name is an open deception designed to give this private bank the appearance that it is operating in the public's interest, when in fact it is run solely to gain private profit for its select stock holders. It came into being as the result of one of the slickest moves in financial history. On 23rd December 1913 the house of representatives had past the Federal Reserve Act, but it was still having difficulty getting it out of the senate. Most members of congress had gone home for the holidays, but unfortunately the senate had not adjourned sene die (without day) so they were technically still in session. There were only three members still present. On a unanimous consent voice vote the 1913 Federal Reserve Act was passed. No objection was made, possibly because there was no one there to object. Charles Lindbergh would have objected. "The financial system has been turned over to... the federal reserve board. That board administers the finance system by authority of... a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other peoples money."

Rep Charles A, Lindbergh (R-MN) Louis T. McFadden would have objected. "We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board... This evil institution has impoverished... the people of the United States... and has practically bankrupted our Government. It has done this through... the corrupt practice of the moneyed vultures who control it."

Rep. Louis T, McFadden (R-PA) Barry Goldwater would also have objected. "Most Americans have no real understanding of the operation of the international money lenders... The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and... manipulates the credit of the United States."

Sen. Barry Goldwater (R-AZ) Most Americans would object if they knew. The Federal Reserve is the largest single creditor of the United States Government, and they are also the people who decide how much the average persons car payments are going to be, what their house payments are going to be, and whether they have a job or not. The three people who passed the Federal Reserve Act in 1913, knew exactly what they were doing when they set up this private bank, modelled on the Bank of England and the fact that THE BANK OF ENGLAND had been operating independently unopposed since 1694 must have given them a great deal of confidence.


War uses up more materials more quickly than most anything else on earth. In war expensive equipment doesn't wear out slowly, it gets blown up. (It's interesting to note that during the 119 year period from the founding of the Bank of England to Napoleon's defeat at Waterloo, England had been at war for 56 years, while the rest of the time preparing for it. In the process the money changers had been getting rich.) So there it was, the newly formed Federal Reserve poised to produce any money the U.S. Government might need from thin air with each dollar standing to make a healthy interest. Nine days after its formation the Federal Reserve founders were wishing each other a Happy New Year. What good fortune might 1914 bring?