Federal Reserve Banks
41 Things You Should Know
About Federal Reserve Banks!
Today, most American students don't even understand what a central bank is,
much less that the battle over central banks is one of the most important themes
in U.S. history.
The truth is that our nation was birthed in the midst of a conflict over taxation and
the control of our money. Central banking has played a key role in nearly all of
the wars that America has fought. Presidents that resisted the central bankers
were shot, while others shamefully caved in to their demands. Our current central
bank is called the Federal Reserve and it is about as "federal" as Federal
Express is. The truth is that it is a privately-owned financial institution that is
designed to ensnare the U.S. government in an endlessly expanding spiral of debt
from which there is no escape. The Federal Reserve caused the Great
Depression and the Federal Reserve is at the core of our current economic crisis.
None of these things is taught to students in America's schools today.
In 2010, young Americans are taught a sanitized version of American history that
doesn't even make any sense. As with so many things, if you want to know what
really happened just follow the money.
The following are 41 facts about the history of central banks in the United States
that every American should know....
1. As a result of the Seven Years War with France, King George III of
England was deeply in debt to the central bankers of England.
2. In an attempt to raise revenue, King George tried to heavily tax the
colonies in America.
3. In 1763, Benjamin Franklin was asked by the Bank of England why the
colonies were so prosperous, and this was his response....
"That is simple. In the colonies we issue our own money. It is called Colonial
Script. We issue it in proper proportion to the demands of trade and industry to
make the products pass easily from the producers to the consumers. In this
manner, creating for ourselves our own paper money, we control its purchasing
power, and we have no interest to pay to no one."
4. The Currency Act of 1764 ordered the American Colonists to stop printing
their own money. Colonial script (the money the colonists were using at the time)
was to be exchanged at a two-to-one ratio for "notes" from the Bank of England.
5. Later, in his autobiography, Benjamin Franklin explained the impact that
this currency change had on the colonies....
"In one year, the conditions were so reversed that the era of prosperity ended,
and a depression set in, to such an extent that the streets of the Colonies were
filled with unemployed."
6. In fact, Benjamin Franklin stated unequivocally in his autobiography that
the power to issue currency was the primary reason for the Revolutionary War....
"The colonies would gladly have borne the little tax on tea and other matters had
it not been that England took away from the colonies their money, which created
unemployment and dissatisfaction. The inability of the colonists to get power to
issue their own money permanently out of the hands of George III and the
international bankers was the prime reason for the Revolutionary War."
7. Governor Morris, one of the authors of the U.S. Constitution, solemnly
warned us in 1787 that we must not allow the bankers to enslave us....
"The rich will strive to establish their dominion and enslave the rest. They always
did. They always will...
They will have the same effect here as elsewhere, if we do not, by (the power of)
government, keep them in their proper spheres."
8. Unfortunately, those warning us about the dangers of a central bank did
not prevail. After an aborted attempt to establish a central bank in the 1780s, the
First Bank of the United States was established in 1791. Alexander Hamilton
(who had close ties to the Rothschild banking family) cut a deal under which he
would support the move of the nation's capital to Washington D.C. in exchange
for southern support for the establishment of a central bank.
9. George Washington signed the bill creating the First Bank of the United
States on April 25, 1791. It was given a 20 year charter.
10. In the first five years of the First Bank of the United States, the U.S.
government borrowed 8.2 million dollars and prices rose by 72 percent.
11. The opponents of central banking were not pleased. In 1798, Thomas
Jefferson said the following...."I wish it were possible to obtain a single
amendment to our Constitution - taking from the federal government their power
12. In 1811, the charter of the First Bank of the United States was not
13. One year later, the War of 1812 erupted. The British and the Americans
were at war once again.
14. In 1814, the British captured and burned Washington D.C., but the
Americans subsequently experienced key victories at New York and at New
15. The Treaty of Ghent, officially ending the war, was ratified by the U.S.
Senate on February 16th, 1815 and was ratified by the British on February 18th,
16. In 1816, another central bank was created. The Second Bank of the
United States was established and was given a 20 year charter.
17. Andrew Jackson, who became president in 1828, was determined to
end the power of the central bankers over the United States.
18. In fact, in 1832, Andrew Jackson's re-election slogan was "JACKSON
and NO BANK!"
19. On July 10th, 1832 President Jackson said the following about the
danger of a central bank....
"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."
20. In 1835, President Jackson completely paid off the U.S. national debt.
He is the only U.S. president that has ever been able to accomplish this.
21. President Jackson vetoed the attempt to renew the charter of the
Second Bank of the United States in 1836.
22. Richard Lawrence attempted to shoot Andrew Jackson, but he survived.
It is alleged that Lawrence said that "wealthy people in Europe" had put him up to
23. The Civil War was another opportunity for the central bankers of Europe
to get their hooks into America. In fact, it is claimed that Abraham Lincoln actually
contacted Rothschild banking interests in Europe in an attempt to finance the war
effort. Reportedly, the Rothschilds were demanding very high interest rates and
Lincoln balked at paying them.
24. Instead, Lincoln pushed through the Legal Tender Act of 1862. Under
that act, the U.S. government issued $449,338,902 of debt-free money.
25. This debt-free money was known as "Greenbacks" because of the green
ink that was used.
26. The central bankers of Europe were not pleased. The following quote
appeared in the London Times in 1865....
"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."
27. Abraham Lincoln was shot dead by John Wilkes Booth on April 14th,
28. After the Civil War, all money in the United States was created by
bankers buying U.S. government bonds in exchange for bank notes.
29. James A. Garfield became president in 1881, and he was a staunch
opponent of the banking powers. In 1881 he said the following....
"Whoever controls the volume of money in our country is absolute master of all
industry and commerce...and when you realize 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."
30. President Garfield was shot about two weeks later by Charles J.
Guiteau on July 2nd, 1881. He died from medical complications on September
31. In 1906, the U.S. stock market was setting all kinds of records.
However, in March 1907 the U.S. stock market absolutely crashed. It is alleged
that elite New York bankers were responsible.
32. In addition, in 1907 J.P. Morgan circulated rumors that a major New
York bank had gone bankrupt. This caused a massive run on the banks. In turn,
the banks started recalling all of their loans. The panic of 1907 resulted in a
congressional investigation that ended up concluding that a central bank was
"necessary" so that these kinds of panics would never happen again.
33. It took a few years, but the international bankers finally got their central
bank in 1913.
34. Congress voted on the Federal Reserve Act on December 22nd, 1913
between the hours of 1:30 AM and 4:30 AM.
35. A significant portion of Congress was either sleeping at the time or was
already at home with their families celebrating the holidays.
36. The president that signed the law that created the Federal Reserve,
Woodrow Wilson, later sounded like he very much regretted the decision when he
wrote the following....
"A great industrial nation is controlled by its system of credit. Our system of
credit is privately concentrated. The growth of the nation, therefore, and all our
activities are in the hands of a few men ... We have come to be one of the worst
ruled, one of the most completely controlled and dominated, governments in the
civilized world--no longer a government by free opinion, no longer a government
by conviction and the vote of the majority, but a government by the opinion and
the duress of small groups of dominant men."
37. Between 1921 and 1929 the Federal Reserve increased the U.S. money
supply by 62 percent. This was the time known as "The Roaring 20s".
38. In addition, highly leveraged "margin loans" became very common during
this time period.
39. In October 1929, the New York bankers started calling in these margin
loans on a massive scale. This created the initial crash that launched the Great
40. Rather than expand the money supply in response to this crisis, the
Federal Reserve really tightened it up.
41. In fact, it was reported the U.S. money supply contracted by eight billion
dollars between 1929 and 1933. That was an extraordinary amount of money in
those days. Over one-third of all U.S. banks went bankrupt. The New York
bankers were able to buy up other banks and all kinds of other assets for pennies
on the dollar.
But are American students being taught any of this today?