Showing posts with label Federal Reserve. Show all posts
Showing posts with label Federal Reserve. Show all posts

Saturday, July 6, 2013

Fortune Was His Middle Name

Thomas Fortune Ryan

We know that William C. Whitney (paternal grandfather of John Hay "Jock" Whitney) was ready for retirement by 1900, and that Thomas Fortune Ryan, his "pump and dump" associate on Wall Street, was then still on the move, having purchased the Equitable Life Assurance Society in 1905. The New York Times on May 19, 1907 said of Ryan, quoting:
"the closest financial friend that Ryan ever had,... the late William C. Whitney:
 'He is the most adroit, suave, and noiseless man that American finance has ever known.' "

America's richest man, it was speculated, would also soon be ready for retirement. Who would succeed him? Without answering that question, the Times moved on, reciting for posterity Ryan's vast wealth of properties:
120 Broadway, Equitable Bldg.
  • The Equitable Life Assurance Society, with $434,000,000 of assets;
  • the Washington Life Insurance Company, with about $20,000,000 of assets;
  • the National Bank of Commerce, with $35,000,000 capital and surplus and nearly $200,000,000 of deposits;
  • the Morton Trust Company, with $6,500,000 capital and $880,000,000 of deposits;
  • the Mercantile Trust Company, with $8,000,000 capital and surplus and $70,000,000 of deposits;
  • the Equitable Trust Company, with $12,000,000 capital and surplus and $50,000,000 of deposits;
  • the American Tobacco Company, with $300,000,000 capital and bonded indebtedness and annual net earnings of $25,000,000 or more;
  • the Interborough-Metropolitan Street Railroad system, with $225,000,000 capital stock and bonded debt issued and authorized;
  • the Seaboard Air Line Railroad, with $125,000,000 capitalization.
Continuing in this line, the article succinctly summarized how the syndicates with which Ryan had been associated up until 1907 had operated:

How a syndicate really works?

In street railroad affairs it was first, William C. Whitney, then the Whitney-Widener-Elkins syndicate, then more recently August Belmont through the merger of Mr. Ryan's Metropolitan with Mr. Belmont's Interborough. In the Consolidated Gas Company the Standard Oil group of capitalists are more widely interested than any other. In the Southern Railroad Reorganization it was Morgan and Co.; in the Seaboard Airline, Blair & Co. with Morgan "willin'." In the Bank of Commerce the "life insurance interests," as they were known in the old days, were the co-participators, while the American Tobacco Company, as it is called to-day, represents a wide variety of financial affiliation. Only in the purchase of the Equitable did Thomas Ryan go it alone, as Mr. Harriman has had occasion to remark on several notable occasions.
The Vision Thing

In the midst of all his ability to work compatibly with certain of his competitors, Ryan was said to have suffered one memorable defeat, which he eventually turned into an advantage.  Throughout the twenty years or so of activity in building and reorganizing his various businesses, Ryan had the advice primarily of William C. Whitney, Elihu Root, and attorney Paul D. Cravath.

Electric street railways
These men had bet their future wealth on the advancement of a public-sponsored system of electric street railways without having a vision of individually owned petroleum-powered automobiles. Thus their short-sighted vision for the future is now notable only as fanciful history, which disappeared in the great stock market crash of 1929.

Leading up to that crash was a series of run-ins between Ryan, whose Irish Catholic roots in Virginia were at odds with a fellow Virginia capitalist named J.S. Williams. Back in the 1890s, Ryan had been challenged for control of the Seaboard Air Line Railway by this rival, about whom we have already written:
John Skelton Williams
John Skelton Williams of Richmond, who, with J. William Middendorf, organized a new syndicate and offered $200 a share. The Williams party planned a connection with the Baltimore and Ohio. The courts of Baltimore refused Mr. Ryan an injunction to prevent the transfer of the stock of the Williams crowd, and he appeared to have suffered defeat. Thomas F. Ryan never forgot that defeat. He had to wait—wait until the slow panic of 1903 brought the Williams group of financiers into difficulties. Then, through the banking house of Blair & Co. [operated by C. Ledyard Blair], he helped finance the needs of the Seaboard system with the inevitable result. Ryan got the Seaboard....

The question arises naturally, enough, who have been the advisers of Thomas F. Ryan during these twenty years of his participation in the larger financial doings of this town? Two of them, Elihu Root and William C. Whitney, have been already disclosed. Whitney was the close business and personal associate whose stake went in with Mr. Ryan's stake and whose profits came out with those of Mr. Ryan.
When we follow the money, rather than the men themselves, all roads lead to Brown Brothers, the American bank which spread its daughters out like Rothschild's arrows. It's a complicated story, which we'll attempt to clarify over a series of steps.

Start with these links:
  • T.F. Ryan lost control of the Seaboard Airline Railroad in 1893 to John Langbourne Williams' son, John Skelton Williams, who was working to connect it to the railroad controlled by Baltimore's premier banking family, Alexander Brown and his son, George Brown.
  • In 1903 Ryan worked through C. Ledyard Blair, head of a bank at 24 Broad Street in New York to regain control of the Seaboard Airline.
  • During the Panic of 1907, Morgan, with the help of James Stillman of the National City Bank (now Citigroup), and a few other bankers, pooled enough money together to allow Morgan-financed U.S. Steel to purchase the shares of the "too big to fail" Moore and Schley brokerage company in a competitor steel company, with last-minute approval of President Theodore Roosevelt.
  • C. Ledyard Blair, Ryan's banker in 1903, supported Republican William Howard Taft (Yale, Skull and Bones, 1878) for President in 1908 and again in 1912, when Democrat Woodrow Wilson won.
  • Wilson selected T.F. Ryan's nemesis, John Skelton Williams, to be Comptroller of the Currency in the very year, 1913, the new Federal Reserve Act went into effect and the same year J.P. Morgan died. James Stillman had retired from City Bank in 1908, and E.H. Harriman died in 1909. There was a vacuum at the top of the big banks during this time, waiting for someone to fill.

Who would fill this gap after the big names either retired or died? A group of banking scions were chomping at the bit to make their names known.

Thursday, April 18, 2013

For Whom Does "the CIA" Really Work?

With this post we continue to explore connections mentioned by JFK assassination researcher Lisa Pease, author of "David Atlee Phillips, Clay Shaw and Freeport Sulphur," who focused on the sulphur company during times it was headed by John Hay "Jock" Whitney. Originally published in Probe, Pease's article discusses Freeport Sulphur's international nature as well as its close ties to happenings in Cuba during the time JFK was President. 

Valuable in the insight Pease's article gives us into the role of the Central Intelligence Agency's use of Freeport Sulphur, nevertheless it does not ask who really owns and operates the CIA itself. Perhaps looking back deeper into the company and its formative years will help in answering that question.

Who Was Jock Whitney?

Jock's father was William Payne Whitney, commonly known simply as Payne. As a youngster, Payne Whitney was caught in a feud between his father and his mother's brother, Oliver Payne, following her death in 1893. Promised a share of Oliver's wealth, he turned against his own father, who had married Edith Randolph, a woman scorned by the Payne family, whom he had been seeing before his wife died. According to the New York Social Diary website:
Jock and Betsy Cushing Whitney
In 1902 [William Collins] Whitney’s son, Payne Whitney, who’d sided with Oliver Payne, married Helen Hay from Cleveland, Ohio. Miss Hay was the daughter of John Hay who had been private secretary to President Lincoln and later Ambassador to the Court of St. James under President McKinley. Mr. Whitney who, like his father, went to Yale, was 26. For a wedding gift, Col. Payne gave the couple a Stanford White house at 972 Fifth Avenue.... After the Second World War, he started an investment fund, run by a friend he’d met in the War, to invest in new ideas of the men coming back from the War. He called it Adventure Capital and later dropped the “ad” to coin the now established term: venture capital. He was known for his ventures in Hollywood (“Gone With the Wind”), his industrious ventures, as well as being the last publisher of The New York Herald-Tribune.... Like his grandfather, he was also the Ambassador to the Court of St. James (under Eisenhower). Married twice, first to a beauty who loved horses more, and finally to Betsey Cushing Roosevelt, daughter of the famous brain surgeon Harvey Cushing, first wife of FDR’s son’s James, to whom he [Jock] remained married to the end of his life.... The Payne fortune, inherited by Payne Whitney, and then his children, grew far larger than the fortune left by William C. Whitney to his children. That was partly due to the fact that Harry Payne Whitney and Gertrude Vanderbilt produced more offspring who produced more offspring. Jock Whitney produced no off-spring, and his investments after the War catapulted him (and partially his sister [Joan Whitney Payson]) into the realm of what are now billions.
972 Fifth Avenue mansion
Payne Whitney had inherited his uncle's huge mansion in New York, and the 1920 census shows Jock and Joan living there with their parents--only four people at 972 Fifth Avenue--being cared for by fifteen servants, none of whom were American-born. Payne's business address, 14 Wall Street, was the Bankers Trust Company, set up by the White and Case law firm in 1903, and was controlled by J.P. Morgan affiliates in the days prior to the creation of the Federal Reserve banking system. Before 1930 Morgan bankers controlled United States government policy on currency. According to economist Murray Rothbard, the first governor of the New York Federal Reserve Bank was:
Benjamin Strong, who had spent virtually his entire business and personal life in the circle of top associates of J.P. Morgan. A secretary of several trust companies (banks doing trust business) in New York City, Strong became neighbor and close friend of three top Morgan partners, Henry P. Davison, Dwight Morrow, and Thomas W. Lamont. Davison, in particular, became his mentor, and brought him into Morgan's Bankers Trust company, where he soon succeeded Lamont as vice-president, and then finally became president. When Strong was offered the post of Governor of the New York Fed, it was Davison who persuaded him to take the job....The main collaboration throughout the 1920s, much of it kept secret from the Federal Reserve Board in Washington, was between Strong and the man who soon became Governor of the Bank of England, Montagu Collet Norman. Norman and Strong were not only fast friends, but had important investment-banking ties, Norman's uncle having been a partner of the great English banking firm of Baring Brothers, and his grandfather a partner in the international banking house of Brown Shipley and Co., the London branch of the Wall Street banking firm of Brown Brothers. Before coming to the Bank of England, Norman himself had worked at the Wall Street office of Brown Brothers, and then returned to London to become a partner of Brown Shipley.

The Role of Brown Brothers Harriman

Montagu Norman had been called "the currency dictator of Europe" by the Wall Street Journal in 1927. Thus, when the U.S. government witnessed the decline of the Brown Brothers investment bank in 1926, it felt the need to shore it up with an infusion of capital and turned to the two Yale educated sons of robber baron E.H. Harriman to do so. Averell and Roland (Bunny) Harrison were the Skull and Bones friends and eventual partners of Prescott Sheldon Bush, the father and grandfather of two future presidents.

It is no coincidence that America's earliest attempts at setting up intelligence agencies called upon the talents of the sons of Wall Street bankers. Idealistic principles often fall by the wayside when big money is involved, and it is the wealthy elitists who think they have the most to lose in the games played in international market manipulations. The poor have only their lives, and are often treated as cannon fodder by such elitists on every front.

In the years between the two "great" wars the Brown Brothers partner, Montagu Norman, was actively concerned with handling Germany's reparations payments, working with the first head of the Bank for International Settlements, Gates McGarrah, whose grandson, Richard McGarrah Helms, would later head the Central Intelligence Agency. 

Within six months after the above photos appeared in the news, Norman had found the perfect rich kids to entice with the power of helping to run the world. Their father's death in September 1909, when the boys were mere teenagers, had been the top headline in newspapers throughout America. Their mentor became the man most trusted by their father to run his business, Robert Scott Lovett, who would see that the boys were educated at Yale alongside his own son, Robert Abercrombie Lovett. All would rise to power in the government as the second great war approached, with help from their brothers in Skull and Bones.

Prescott Bush, center, with Brown Brothers Harriman partners--Bunny Harriman, Knight Woolley, and R.A. Lovett

By following the money, you often learn how the world really operates, who works for whom, so to speak.

Oliver Stone relates in his book, The Untold History of the United States:
Prominent among the American capitalists with ties to Nazi counterparts was Prescott Bush, the father of one president and grandfather of another. Researchers have been trying for years to determine the precise nature of Bush's ties to Fritz Thyssen, the wealthy German industrialist who played a crucial role in bankrolling Hitler, as revealed in his 1941 memoirs I Paid Hitler. Thyssen ultimately repudiated the Nazi dictator and was himself imprisoned.
While incarcerated, Thyssen's vast wealth was protected overseas, much of it by the investment firm of Brown Brothers Harriman, through the holding company Union Banking Corporation. The account was managed by senior partner Prescott Bush. 

About ten years younger than the Harriman boys, Jock Whitney and his sister sat atop a huge pile of money which they would make available to those in power engaged in manipulation of international currency. Although Jock went to Yale, he was tapped for Scroll and Key, rather than the Bones secret society, and was a mere two years behind Scroll and Key member James Stillman Rockefeller (son of Elsie Stillman and William G. Rockefeller), whose Uncle Percy, married in 1901 to Elsie's sister Isabel Stillman, was a member of the Skull and Bones class of 1900. Only a year after his Yale graduation, James Stillman Rockefeller had united fortunes with the Carnegies by marrying the niece of the steel magnate whose fortune had been liquidated by the Morgan bank. Five years later, Chase Manhattan bank would acquire the Equitable Trust, another Morgan affiliate--thus shifting control of the New York Fed in 1930 from Morgan to Rockefeller-owned banks at the same time Freeport Sulphur's control shifted under the leadership of Langbourne Williams, Jr., a Stillman son-in-law, as will be detailed in the next installment.

Monday, April 1, 2013

Government by Contract

If Jesse Jones served as the “bridge” between the purposes of the Democratic Party in the 1930s and the source of funds to accomplish such purposes, those initially "egalitarian" purposes quickly disintegrated into a factional grab for government succor—much as a newly born puppies fight amongst themselves in competition for access to their mother’s teats. Being "connected" came to mean the ability to manipulate the system that chose which contractors would perform the services the government's policy planners ordained. Eventually that would lead to planning the policy around the desire for the income from the contracts. That is, naturally, how democracy works. 

An Unbridled Administrator

The New Deal was merely an updated continuation of the unfinished agenda begun by the previous Democratic President, Woodrow Wilson—interrupted by Republicans Coolidge, Harding and Hoover. An outline of that platform had conveniently been set forth for us in a pathetically-written novel, originally published anonymously shortly before the 1912 election, whose author was revealed in the spring of 1916 to be none other than the mysterious little man from Texas known as Colonel House.

In Philip Dru, Administrator House laid out his plans for an efficiently run new world order—a model for rule by a beneficent executive officer in whose hands power would be centralized. The legislative agenda necessary to accomplish that ideal government was systematically put in place during the Woodrow Wilson administration (1913-1921) through enactment of:

Click image to enlarge.
  • The Federal Reserve Banking System (Owen-Glass Act, signed December 23, 1913) and 
  • The progressive federal income tax (Sixteenth Amendment, U.S. Constitution, ratified February 3, 1913).
The motive behind the Wilson agenda, to control the masses without upsetting the applecart, was reflected on the title page of House’s novel:

"No war of classes, no hostility to existing wealth, no wanton or unjust violation of the rights of property, but a constant disposition to ameliorate the condition of the classes least favored by fortune." --Giuseppe Mazzini [1]
An organic metaphor
In this paper, we will observe the results of that effort to make the executive branch of government, delineated by the U.S. Constitution to be only one of three co-equal branches of government, into what it is today — a centralized clearinghouse capable of obtaining natural resources and redistributing them by means of an oligarchical administrative system in which a bureaucracy contracts with corporations set up by factions within the financial elite. That clearinghouse function is best illustrated by picturing a spider plant. Over time, an elected executive government, headed by the U.S. President, has spun off various unelected and unaccountable offshoots to evolve into a bureaucratic infrastructure through which, like the initial plant, distributes its gathered resources.

The Model

House was assisted in his effort to set up a central bank by other behind-the-scenes advisers (in a curtain-behind-the-curtain sleight-of-hand maneuver), the most important of which was the German Jewish banker Paul Warburg. In 1907 Warburg met Senator Nelson Aldrich, who “visited [Jacob Schiff’s office at] Kuhn, Loeb to ask how the Reichsbank issued treasury bills. Schiff didn’t know and summoned Paul. By the time Aldrich left, an enthusiastic Paul mused, ‘There marches national bank currency and there goes currency reform.’” [2] 

The distribution clearinghouse Warburg designed, which was modified by Congress before final passage, is comprised of an elite class of bankers who are shareholders of the private centralized banking system granted power in 1913 — a class whose ultimate goal is to break free of any legislative or judicial constraints and to govern the country much as Philip Dru was allowed to do in Col. House’s warped imagination. The bankers operate within twelve separate regions of the country, each of which is governed by a separate governing board. 

Jesse Jones, super man?
Col. House’s challenge after the Act was passed (but before the system was actually operating to its full extent) was to put in place the administrative infrastructure he had laid out in his book. As individuals in power tend to do, he sought expertise for his experiment only from his inner circle of acquaintances. Jesse Jones states in his autobiography that, though he had refused House’s repeated summonses to Washington throughout the Wilson Administration, he finally gave in to the entreaties because his country needed him to help alleviate the symptoms of the depression; Jones thus viewed himself as the ideal administrator. Once Roosevelt replaced him, Jones’ support for the New Deal waned. Nevertheless, once the legislation had been enacted and forced down the throat of the Supreme Court, the enhanced administrative power given the executive branch remained. 

Acting as the financial hub of the New Deal government of Franklin D. Roosevelt, Jones distributed “Fifty Billion Dollars,” according to the title of his autobiography, though it has never been clear how that money was created. While Jones was head of the Reconstruction Finance Corporation he had the power to dole out and deny contracts to individuals and corporations in order to keep the masses employed so as not to be engaged in revolutionary activity against the existing power structure. Upon his return to Houston in 1946, he would not only continue his commercial real estate develop business, but would work through his Houston Endowment Foundation to set up a secret method to finance intelligence operations which will be discussed in a future essay. [3]

Secret Visionaries

One platform plank remained unfulfilled by the end of Wilson’s term of office.  Although it would take another world war to gain approval for that goal — which, incidentally, helped to further the international banking ideal desired by the Bank for International Settlements in Switzerland — Wilson was still hopeful he could achieve that goal.  In order to draft a constitution for the League of Nations, he appointed a four-main committee chaired by Col. House and named another man, like Warburg, from a German Jewish background, as adviser to the committee. George Louis Beer, whose father Julius Beer lived next door to Swiss-born Meyer Guggenheim and his son William on West 77th Street in New York, [4] used his knowledge of British imperial and colonial policy to develop a constitution for world government along similar lines. [5]  He was chief of the colonial division of the American delegation at the Paris Peace Conference and in charge of helping to draft the mandates for the administration of the former German colonies.

Just as a plant absorbs its required nutrients from the soil, the Guggenheim family had been instrumental in acquiring for the United States scarce minerals necessary for the nation’s strategic purposes — coinage, weapons manufacture, etc. Because of the scarcity and the expense in obtaining those minerals, the Guggenheims therefore occupied a powerful position in America at the turn of the century. Having been a member of the Jewish clique which included an assortment of Jewish bankers in Kuhn, Loeb and other Wall Street firms, George Louis Beer understood the importance of such strategic metals in banking and world trade. [6] His family maintained connections among the Jewish banking community which moved from one nation to the next, setting up centralized banking systems which could act within a global clearinghouse in an attempt to stabilize each nation to maintain control over its currency .[7]

The Texas Network

Like Col. House, Jesse Jones greased a political machine composed of Texans with whom he had been associated in business and banking.  It is the network to which they gave power which maintains power today. It is that network that explains who Halliburton is. Without understanding the past, we can never hope to understand the current power structure — how it thinks and how it works.

We can identify the network by its components — the businesses in which its constituents were engaged. The purpose of the “administrator” is to distribute the government’s money to those businesses, assuring the network that it will not need to compete with the same type of businesses not controlled by the network. Since money usually determines the outcomes of elections, the network sets up its own method of bypassing the law in order to funnel money to its candidates. Bush II's administration used Jack Abramoff and Tom DeLay in that role.

Vice President Dick Cheney’s primary function was to distribute contracts to his old employer, Halliburton, as well as to lay the groundwork for the pretext necessary to get the United States involved in a war. Can it really be that simple? The best way to answer that question is to examine and analyze the governing boards of Halliburton throughout its history — a time-consuming process. In “TheHalliburton Riddle,” we stated: “Connally, Rumsfeld, Cheney and Armstrong — of those four, three would serve as directors of Halliburton. The fourth, Rumsfeld, as Secretary of Defense would help George W. Bush engineer the war in Iraq, to Halliburton’s benefit,” thus intimating that there is a definite connection between that corporate clique and the policy decisions being made in the White House, and that, to a great degree, those policy decisions are concerned primarily with trade deficits and currency stabilization — issues with which the United States has been dealing throughout its history.

Federal Reserve System regions
The State of Texas houses one of the twelve district banks that operate the Federal Reserve. Located in Dallas, it controls all banks in Texas, southern New Mexico and northern Louisiana. Texans have always resented their subservience to Eastern capital, always searching for a way to avoid having to go to New York or Boston to sell their bonds or issue new corporate stock. When Jesse Jones headed the RFC, he made sure that his friends back home were not neglected, and those friends liked having one of their own as the nation’s chief banker. 

Although Jones had, in 1917 been one of the initial incorporators of Houston-based Humble Oil Company (a majority of whose stock was secretly, and illegally, owned by Standard Oil of New Jersey), he sold his stock when began work for the Red Cross at the end of World War I. His co-founders, however, because of Texas’ importance as a resource for petroleum and natural gas, would eventually see themselves in the chairmanship of Standard Oil of New Jersey. They would also gain access to the board of Houston’s prestigious Rice University, patterned along the lines of Princeton, where Jersey Standard was originally headquartered.  The founders would also control a major segment of the beef producing industry — with its King Ranch in South Texas performing a dual function as cattle raiser and oil producer (having leased its land to Humble Oil, which found huge oil fields there).

It was, in fact, a scion of the King Ranch — Congressman Richard Mifflin Kleberg — who gave Jesse Jones’ replacement as head of the Texas network his first job in Washington, D.C. in 1932. While young Lyndon Baines Johnson was still learning the ropes as Cong. Kleberg’s aide, Col. House was in New York meeting periodically with FDR. But between 1938 (when Col. House died) and about 1941, control of the Texas network wavered between Jesse Jones and Vice-President John Nance Garner. Once Garner was replaced as Vice-President by Henry Wallace, Jones’ power diminished, and the Texas network came increasingly under the influence of Lyndon Johnson. It was at that point that George and Herman Brown, founders of Brown & Root, began to use Johnson’s inside information and connection to FDR to keep the federal dollars flowing into Texas.

Johnson’s most significant and most secret tap into inside information sources, however, involved a Texan who is even more mysterious than Col. House — a man named Robert Bernerd Anderson, who possibly did more than any other individual to ensure Texas’ access to mineral resources independent of the Federal Reserve’s New York and Boston districts.  Anderson will be the subject of more detailed study in the future.

The political machine for which LBJ worked (he only thought he controlled it; whereas, it was the other way round) continues to reside in Texas today, although it is now headed by Republicans rather than Democrats, and is still centered within the Federal Reserve Bank in Dallas. Thus, it is no mere coincidence that three of the last seven Presidents allegedly “elected” by the people of the United States have claimed Texas as their residence. [8] The disproportionate influence asserted by Texans stems no more from a coincidence than does the fact that the election of 2004 pitted two members of the Yale secret society Skull and Bones against each other. Identification of the financial/political network (some have used the term “cabal”) which rose to power in 1963 — and which is so reluctant to relinquish that power — is of urgent importance in order to change the paradigm that has taken America ever closer into the grips of globalism.

Just as Brown & Root (Halliburton) understood that maintaining political power is a necessary step in order to assure its continued access to government contracts, the contracts themselves helped to determine what policies those politicians, whose power was contingent on continuing to feed contracts to the network which elected them, would pursue.  It is a vicious cycle that, in the hands of Texans, always becomes deadly and dangerous.


[1] Philip Dru Administrator: A Story of Tomorrow, 1920-1935, originally published anonymously in 1912 by B.W. Huebsch. The badly written novel was in 1916 disclosed to have been authored by Col. Edward M. House, the man behind Woodrow Wilson’s rise to prominence. Indicating that his true purpose in creating such an administrative framework within the federal executive branch of government was to keep the peasants happy so as not to upset the existing order, House began his book with a quote from the Italian nationalist, Giuseppe Mazzini, whom present-day conspiracy theorists have called an illuminati leader.
[2] Ron Chernow, The Warburgs: The Twentieth-Century Odyssey of a Remarkable Jewish Family (New York:  Random House, 1993), 132. Chernow reveals that Paul Warburg, along with Aldrich, “sneaked off” to Jekyll Island, Georgia late in 1910 to discuss currency reform with other wealthy men from American banking circles. This meeting was discussed in “Membershipby Inheritance Only.”
[3] William R. Corson, The Armies of Ignorance: The Rise of the American Intelligence Empire (New York: Dial Press/James Wade Books, 1977).  According to Corson, Jones had been chosen by Colonel House to serve under Major General Ralph H. Van Deman—General Pershing's senior intelligence officer and Chief of Allied Counterintelligence—at the Paris Peace Commission after World War I. Van Deman’s 38-year career in intelligence had taken place long before the Office of Strategic Services, the Central Intelligence Agency, or National Security Agency had been created, before any funding mechanism for intelligence operations existed. Corson had lived, worked, and traveled in Japan, China, Indonesia, Thailand, Burma, Laos, and Cambodia throughout the cold war years and had fought in  World War II, Korea, and Vietnam—retiring as a retired lieutenant colonel from the Marine Corps.  He had “learned the intricate workings of the intelligence community in a wide variety of field and staff intelligence assignments,” including “Staff Secretary of the President's Special Group (CI) joint DOD-CIA Committee on Counterinsurgency R & D, Special Assistant to the Secretary of Defense's Director of the Advanced Research Projects Agency, and Officer in Charge of the Assistant Secretary of Defense (Systems Analysis) Southeast Asia intelligence evaluation program.”  Yet, with all that experience, after talking with Van Deman, Corson admitted to being left “with a conundrum which after 27 years remains unresolved.  It involved my stated disbelief that the activities surrounding his card file project could have been carried out without the financial assistance of others.  His reply was equally disarming and bemusing.  In essence he said, “I have never personally accepted a penny to carry out this work; however, others have had need for funds to do what is necessary’ and he asked, ‘Do you have any quarrel with the idea that private citizens should not make funds available to those able and willing to carry out the work required to keep us free?’  We left it there with his gentle admonition, ‘Your father understood this and there is no reason you should not.’ My thoughts jumped to my father's relationship with Jesse Jones and the Houston Endowment, but Van Deman, in a sphinxlike pronouncement said, ‘Your future lies with those in the active forces, but never fear, there are those in reserve who will help in their own silent ways.’” (See footnote at pages 104-105.)
[4] The Guggenheims were discussed in “Who “Created” Condi Rice?” written in 2004 (see revised article and also Part 2).  As stated in that essay, the Guggenheims had amassed a fortune in lead, copper and silver smelting in Colorado, which “in 1887, led to the formation of the American Smelting & Refining Company (ASARCO) and the Guggenheim Exploration Company in 1899 and created the American Smelting and Refining Co. (ASARCO).”
[5] In addition to becoming wealthy from importing tobacco, Beer’s studies had been pursued first at Columbia in New York and later in London, where he learned how the British socialists had financed their own welfare scheme, first with Indian opium, and later with gold and diamonds from South Africa.
[6] The Federal Reserve Act’s “chief architect was Paul Warburg of the German and Swiss banking house who moved to America only nine years earlier. He brought with him all the experience of European central banking. His brother Max Warburg was financial adviser to the Kaiser and later Director of Germany's central bank, The Reichsbank.  Paul Warburg’s Wall Street banking operation was a partnership with the Rothschilds in Kuhn Loeb & Co.”  G. Edward Griffin, The Creature from Jekyll Island (American Media, Fourth Edition, 2002).
[7] Julius Beer’s name appeared often in The New York Times in conjunction with names such as Schiff, Guggenheim, Rothschild, Warburg, Lewisohn, Lehman and Loeb — within the context of “Jewish society” and charitable causes of that day.
[8] The first of the three, Lyndon B. Johnson, entered the White House as a result of John F. Kennedy’s assassination on November 22, 1963 and was elected in 1964. The second was George H.W. Bush, virtual president for much of Reagan’s eight years in the Office, elected in 1988.  The third is George W. Bush, who has held the job since 2001. We don’t count Gerald Ford as being “elected”; he was appointed to the vice presidency after Spiro Agnew resigned and ascended to the Presidency following Richard Nixon’s disgrace. We also use the term “elected” loosely because of disputes surrounding the elections of 2000 and 2004. 

Tuesday, July 31, 2012

Accumulations of Money = Accumulated Power

 © 2004 by Linda Minor

"The North Americans created the myth that those who had wealth or who were children of those of wealth were superior people, harder working, and more intelligent." 
© 1996-2012 by Roedy Green, Canadian Mind Products
It seems to be very simple. Accumulate a pile of money. Associate with others who also have piles of money. Network together to combine the money to attain power and control government institutions. Use the government power to keep the wealth within the network. Use the wealth to keep members of the network in power. It all leads to a more orderly business environment. Right?
Henry Stimson's Skull and Bones Networks
According to Henry Stimson’s biographer, his father — Dr. Lewis Atterbury Stimson, a surgeon — did not relish the thought of his son’s marriage to a person of a lesser class than his family, even though Mabel’s ancestry, through her grandmother, was directly traceable to Captain Miles Standish of the Plymouth Colony. [9] 
Dr. Lewis A. Stimson
The good doctor believed that "accumulated wealth" should combine with organized learning institutions to make their power productive:
"The man, the brain, is the essential. The history of thought and science is filled wίth instances of great accomplishment effected with only the scantiest aid from accumulated wealth; but the same history shows most painfully the cost, the waste, and the limitations due to the lack of that aid. The combination of the two [the brain and wealth] permits the man of affairs to make his accumulated power productive along lines where his interest could not be gratified without the aid of special training, and it makes possible for the possessor of that training, much that could not be accomplished without it. The workshop and the endowment must come from the intelligent interest of the outsider, and that interest must be created and stimulated by the worker.

"Of such fruitful aids to the advancement of knowledge and of wise instruction, this building, for the opening of which we are gathered today, is another added to those grouped upon our Campus which testify to the wise and generous thought of the benefactors of the University. It is for us to use the means thus afforded in order that that wisdom and generosity may have their full effect and that their fruits may stimulate others to effort in the same beneficent work."

The American health industry has always felt it had a nobler cause than merely making the masses healthy. The motivation of Henry's father, as shown above, was to build a medical infrastructure so that men of his own class could continue to be trained in medical research and the study of disease. In many ways Dr. Stimson had a mentality similar to the doctors in Germany, where had studied. His own classmates would ultimately use Jews as subjects in experiments before World War II, for the "advancement" of knowledge. They, too, simply wanted to know how disease worked in the body and had no regard for persons of lesser class or race. Their ultimate goal was to improve the lot of their own kind. It was the same mentality that pervaded the secret society called Skull and Bones.

The Skull and Bones network was illustrated by Antony Sutton in his book, America's Secret Establishment, as follows:

Networking Through Marriage
When Henry Lewis Stimson married Mary White, he gained a phenomenal connection to the Order through his new in-laws that tapped into many generations of accumulation of wealth and power in New England. Mary White Stimson's father, Charles Atwood White, and her brothers were not only members of Skull and Bones, but her uncle, Henry Dyer White, was treasurer of the Russell Trust Association in 1856, the year Skull and Bones became a state-chartered corporation in Connecticut.  

This strong connection to the Order's goals gave young Stimson a foot in the door with another relative of his wife Bonesman Sherman Evarts (Yale, Skull and Bones,1881), who became his own law associate but to a  Bonesman who was a Yale classmate of his father (both were members of the Yale class of 1863), William Collins Whitney; while Henry's uncle and namesake, Rev. Henry Albert Stimson (Skull and Bones 1865) was only two years behind the two. [10] 

The secret society at Yale soon was able to control as was its goal, according to Antony Sutton in the video below the boards of many of the most prestigious networks of professionals in America attorneys, clergy, universities, and the medical profession.

Belmonts' mansion in Newport
W. C. Whitney wasted no time introducing Stimson to his own attorney, Elihu Root, a graduate of Hamilton College where Root’s father was a mathematics professor. Hamilton had also been the alma mater of Whitney’s father-in-law, Henry B. Payne, before his move to Ohio in 1833. Payne's own father-in-law, Nathan Perry, was the leading merchant in what was then "the West." [11] Through this marriage, U.S. Senator Henry B. Payne had thus made contact with the nautical Rhode Island Perrys of Newport — a town with the unpleasant distinction of having been the center of the African slave trade. [12] Newport was then an opulent resort for America’s most wealthy, including the Vanderbilt and Astor families as well as the Rothschild banking representative August Belmont, who married the daughter of Commodore Matthew Calbraith Perry.

Nast cartoon of Boss Tweed
By accepting Elihu Root’s offer of employment in 1891, Stimson would thus be working for a man who had helped Governor Samuel Tilden, a Democrat, end the Tweed Ring’s control of Tammany Hall, even though Root had earlier represented Boss William Tweed, a Republican, in 1873. But Whitney’s goal had not been to stop corruption; he simply wanted to control it believing that graft and political corruption were contemptible only so long as they were not being used to his own advantage. 

Whitney boasted that he hired Root’s firm because, in so many words, Root knew how to manipulate the law without breaking it. It was a useful lesson for those who wanted to control the increasingly powerful federal government.

Inventing the “Pump and Dump”
Building ships for U.S. Navy
Whitney’s loyalty to the Democrats won him an appointment as Secretary of the Navy under Grover Cleveland in 1885. As naval chief for four years, Whitney supervised an ambitious program to build battleships in order to modernize the navy to the benefit of the Perry family, who were, incidentally, connected by marriage with Rothschild banking agent, August Belmont, whose financing was critical in the plan. Only by building up the naval fleet of battleships could America have the ability by 1898 to challenge Spain in Cuba and the Philippines, necessary for the expansionist plans of President Taft's Skull and Bones network. [13] Ship construction on such a massive scale required money, of course, and August Belmont was there to help the Perrys and Whitney all an intricate part of "the government" of President Cleveland with the financing of the massive effort.

By 1890 Whitney had returned to New York, and his investment syndicate began consolidating street railways in Philadelphia, New York, and smaller cities into one electric transit company. They hired attorney Francis Lynde Stetson to incorporate America’s first holding company, which would become a model for financial fraud even to the present day. [14] Within ten years, the Whitney syndicate would "merge" with the Rockefellers, according to the New York Times story posted to the right.

Metropolitan Traction
According to the legal model Stetson followed, stock of Metropolitan Traction Company, a holding company, was issued to pay Whitney and his associates for the forty or so independent surface transit companies whose properties they had purchased, including the right to operate exclusively in various metropolitan areas (called franchise rights). Since Whitney’s syndicate controlled the new city officials, they were able to obtain a monopoly concession to build one electric streetcar system along the various routes previously authorized — a right which theoretically increased the value of the properties sold to the holding company, even though most of the purchased properties were decrepit horse-car lines in unprofitable territory, with little earning capacity or value. Still Metropolitan paid prices in amounts from five to twenty times their acquisition costs plus anticipated cost of construction. [15] 

When the holding company’s management (Whitney’s wealthy syndicate members who desired to invest in the most modern technology then available) began declaring huge dividends for Metropolitan Traction Company — thus pumping up the stock’s price to ever greater heights — the unwary public rushed to the NYSE to buy the stock. Insiders who knew how inflated the value was, were happy to dump their stock to the tune of millions in profits for themselves.

Having once sold all their stock, the promoters then felt no obligation to actually build the modernized streetcar system they had promised. Newspaper publicity against the fraud perpetrated by the Metropolitan Traction Co. resulted in rescission of its monopoly franchise, an action overturned after an appeal to the Supreme Court handled by Elihu Root's firm.

Elihu Root
"It is not a function of law," Root rationalized, "to enforce the rules of morality."

The evidence supports only one conclusion:  
Henry Stimson’s true role as an attorney and “statesman” was engineered by men inside Yale's inner core. His role as Secretary of War placed him in a position of being able to defend financial investments abroad of the men he fronted for. As his network saw it, without continued profits from those companies, stocks and related interests they held, they would be unable to support Yale's endowment, which, as a consequence, would limit the influence in political affairs of their alumni, who had branched out into so many areas of American life. It was a vicious cycle. Whether the money or the power came first was of no consequence; reality was that the loss of either meant the loss of both.
Investment Roll-Overs
This merger of investments, as indicated in the Whitney Syndicate cover-up story above, is highly suspicious. Why would the transportation empire controlled by William C. Whitney and Thomas Fortune Ryan begin this switch in 1900 from electrically powered transportation to oil and gas powered engines? We can only surmise that part of the answer may have been the fact that 1900's Yale Skull and Bones graduates included a Rockefeller, whose uncle was John D. Rockefeller, and whose first cousin was John D. Rockefeller, Jr. Percy (who went by his middle name "Avery") in 1901 married Isabel Goodrich Stillman, sister of Elsie Stillman. Both were daughters of James Stillman, president of the National City Bank. Elsie had married P. Avery's elder brother, William G. Rockefeller in 1898. Perhaps Yale's elite saw an opportunity to benefit its endowment by using this scion as leverage for its own sustenance. [This subject will be examined at another time. It is also dealt with at other blog/websites of this author: and, each of which contains labels and a search engine to facilitate further research.]

Skull and Bones 1900--Percy Rockefeller, seated at right.

Stimson's law office was located almost adjacent to the site where in 1914 the Federal Reserve Bank of New York would be located, in a building which would remain his home base off and on for over fifty years. [16] When Root left the firm in 1899 to join the Republican administration, Stimson and another associate, Bronson Winthrop, started their own firm in the same location, engaged primarily in corporate securities and litigation. Winthrop (an American globalist, who had been born in Paris and educated in England), shared with John Forbes Kerry a mutual ancestor, Wait Winthrop, as detailed in Untitled Aristocracy.

In 1906 Stimson followed the same path blazed by Elihu Root — as attorney for the southern district of New York — the district with jurisdiction over the New York Stock Exchange and the lower Manhattan banks. Bronson remained in the original offices to carry on the firm’s legal business, with Stimson returning from time to time between appointments in Washington.  These men comprised an internationalist, even imperialistic, circle of men deter-mined to make America a supreme power in the world.

Musical Chairs Skull and Bones Style
Oliver Hazard Payne
In 1899 Republican Elihu Root was appointed secretary of war by President McKinley, who had spearheaded the Spanish-American War, which would then lead to his suppression of the Boxer Rebellion in China. [17] Less than six months after the inauguration on his second term,  McKinley was assassinated, and Theodore Roosevelt  became President. Secretary of State John Hay, whose daughter Helen in 1902 would marry Whitney’s son Payne (Skull and Bones 1898), had supervised the treaty to end the Spanish-American War and formulated the Open Door policy. [18] No doubt Secretary Hay was looking out for his daughter's financial future in his role as foreign policy adviser to the President--equating what was best for the nation as what was best for Standard Oil, in which Payne Whitney had a huge stake which he inherited from his Bonesman uncle, Oliver Hazard Payne.

When Hay left the Cabinet, Elihu Root took his position and would be replaced in turn by William Howard Taft (Skull and Bones 1878, son of co-founder Alphonso Taft). Taft had first served in 1900 on the Philippine Commission, eventually serving as Governor General of the Islands, before advancing to the chair of Secretary of War in 1904. After his stint as head of the State Department, Taft moved to the White House in 1909.

As President, Taft appointed Root’s former associate Stimson to be Secretary of War in 1911. In 1912, after Taft and TR had campaigned against each other, thus making way for a Democrat, Woodrow Wilson, to usher in the radical banking “reforms” which the Republicans had been supporting by other names for years, Taft returned to Yale as a professor until he was named Chief Justice of the Supreme Court in 1921.

In 1927 Stimson served under Calvin Coolidge in Taft’s former role of Governor General of the Philippines (where John Kerry’s great-uncle W. Cameron Forbes, had also served), as well as being Secretary of State in the administration of Republican Herbert Hoover. So popular (or perhaps only “connected”) was Stimson that he was also tapped by Democrats Franklin Roosevelt and Harry Truman to be Secretary of War. [19]

Stimson’s ubiquity in each successive administration was due, not so much to his military and diplomatic brilliance, but to his knowledge of how to secretly finance war and extract spoils from the defeated — combined with his closeness to the money spinners operating undeterred behind the scenes. Colonel Stimson was like a sentry, pacing back and forth in front of the door to the henhouse where geese were busily laying golden eggs. He was there, not to protect the geese or their eggs, but to run interference for his co-conspirators inside who snatched up the gold as soon as it appeared. 

These "geese" represent pools of wealth accumulated through hard work, charitable donations and taxes imposed on Americans. Investment bankers, ostensibly intending only to “borrow” the gold and return it with interest, have been trained for generations how to stealthily remove that gold, in order to amass huge fortunes for themselves through market manipulation and fraud.  

When they fail in their claimed intent to return the gold, to prevent exposure they blithely plan new wars or other diversions in order to save their reputations. McKinley, Roosevelt and Taft, for example, promised the American people that there was an urgent need to “liberate” the islands of Cuba and the Philippines from Spain, and that the territory would be “developed” and “reconstructed” for the benefit of those abused populations. 

We all recognize that George W. Bush is in no sense a creative intellectual. Neither are those who planned the war in Iraq. They are merely following the same model used at the turn of the previous century — for exactly the same reason. They know there is oil in Iraq, and that the untapped markets there could not be tapped while Saddam was in power.  By removing him, it would be possible to open the door to trade with Iraq — another goose of sorts — whose glittering eggs were too hard to resist.

Videos about Brown Brothers & Co.  and others from  Uroko on You Tube

NOTES (continued from Part I):

[9] Godfrey Hodgson, THE COLONEL, p. 48; The Family Forest Descendants of Thomas Mitchell genealogy.

[10] Stimson had worked since leaving law school for Sherman Evarts, another Bonesman (1881) from a prestigious, politically connected, family, at 52 Wall Street—the same building which housed National City Bank of New York, where Franklin Roosevelt would later have his law office.  Sherman’s father was William Maxwell Evarts (Skull and Bones 1837), the attorney general under Andrew Johnson (who defended the Republican on impeachment charges) as well as being secretary of state under Rutherford B. Hayes when the controversy over the 1876 election was decided). The elder Evarts was also a trustee of the Peabody Educational Fund, 1867-1901 and a member of the Corporation of Yale College, 1872-91. See OBITUARY RECORD OF GRADUATES OF YALE UNIVERSITY DECEASED FROM JUKE, 1900, TO JUNE, 1910.

[11] “Mary Perry was the only daughter of Nathan Perry and Pauline Shimmer. Nathan had moved to Cleveland in 1804, one year after Ohio became a state. He became the chief rival of John Jacob Astor in the fur trade, and later became the leading merchant in Cleveland. Edward Perry, a Quaker, emigrated to Sandwich, Mass around 1639. Two of his sons, tired of harassment of Quakers, moved around 1704 to Narragansett country, near the town of Newport, Rhode Island which had large farms which used many slaves imported through Newport. Church of England enjoyed greater prestige. The impact of this gay, opulent, slaveholding society was unfavorable to the growth of so ascetic a sect as the Quakers, and the Perrys eventually moved into the Anglican communion. Freeman Perry married Mercy Hazard in 1755, the daughter of Oliver Hazard. She inherited 300 acres in North Kingstown and lived and died there.”  Oliver Hazard Payne website. The Payne mansion was donated to Marist College, which hosts the website.

[12] “Rhode Island was a key juncture of the ‘notorious triangle’ in which Rhode Island rum was sold for African slaves, who then were sold in the Caribbean for molasses and sugar that were, in turn, sold to rum distillers in Rhode Island….The papers of other Rhode Islanders with slave trade connections appear in Part 2. These businessmen lived in Providence and Newport as well as Bristol, which was a center of the African trade in later years, until the 1808 congressional ban on slave importing.”  Editorial Adviser: Jay Coughtry, Author of The Notorious Triangle: Rhode Island and the African Slave Trade, 1700–1807.  

[13] The battleships Maine and Texas, commissioned during Whitney’s tenure, were useful in the Spanish-American War that began in 1898.

[14] Originally called Bangs & Stetson, the firm’s name was later changed to Davis, Polk & Wardwell, though in 1890, while former President Cleveland was a partner there, it was known as "Bangs, Stetson, Tracy, & MacVeagh." Partner Charles Tracy was the father-in-law of J.P. Morgan.  Its offices were located at 15 Broad, next door to the Morgan bank.  Bangs made his reputation by taking on William ‘Boss’ Tweed, whose corrupt political machine dominated New York City in the 19th century. Stetson was one of the first attorneys to build a large practice by advising corporations on business matters (as opposed to litigation). In 1887 Stetson began representing J. Pierpont Morgan when he helped Morgan combine several small electric companies into General Electric. The firm had also been counsel for Samuel J. Tilden in the Tilden-Hayes controversy over the 1876 Presidential election and also set up the U.S. Steel, International Paper, and ITT corporations.  The Vault Guide to the Top 100 Law Firms, 7th edition, (2004), p. 122;
The name “Wardwell” belonged to Stetson’s son-in-law, who was appointed to the Red Cross Mission to Russia.  This mission was discussed by Antony Sutton in his book , Wall Street and the Bolshevik Revolution.

[15] Hendrick , The Age of Big Business, p. 42; .  See also "Taking Panama."

[16] Hodgson states that the firm was on the 14th floor of the Liberty Mutual Insurance Building at 32 Nassau.  Godfrey Hodgson, The Colonel, p. 48.  Today’s maps do not identify that building, but it appears to have been very near the New York Fed.

[17] McKinley favored the remonetization of silver. Aware of silver sentiment among his constituents, he sought some means of securing bimetallism without inflation and therefore surprisingly voted with the Democratic majority to pass the Bland-Allison Act of 1878 over the veto of President Hayes, authorizing limited silver purchases and instructing the treasury secretary either to coin the silver or to issue silver certificates.  As author of the McKinley Tariff Act in 1890, he forced tariffs to new highs. He was then defeated for reelection to Congress. He served as governor during the Panic of 1893, before being nominated for President. Although McKinley was prepared to campaign on the issue of tariffs, the nomination of William Jennings Bryan—an ardent free-silver advocate—changed the central issue of the campaign. McKinley dropped his advocacy of silver coinage and came out strongly for the gold standard, winning the support of President Cleveland and many other conservative Democrats.

[18] Hay carried to the Treaty the protocol issued by McKinley. In the re-election campaign, the Republican Platform  characterized the Spanish-American War as “a war for liberty and human rights … a war unsought and patiently resisted,” and called Americans to “a new and noble responsibility” in foreign affairs. The document reaffirmed the party’s traditional commitments to the gold standard, tariff protectionism, trade reciprocity, veterans’ pensions, voting rights for all races, and an inter-oceanic canal in Central America. It approved the annexation of Hawaii (1898), antitrust legislation, and the creation of a cabinet-level department of commerce.

[19] Another fascinating Cabinet member during this era was Charles Joseph Bonaparte, great-nephew of the Emperor Napoleon—first serving as Secretary of the Navy, and then as Attorney General during Theodore Roosevelt’s administration. In 1875 Bonaparte, a Baltimore attorney, married Ellen Channing Day, daughter of Bonesman, Thomas Mills Day (1837), in Newport, Rhode Island.