[ Up ] [ Economic collapse ] [ Money myth ] [ The Fed ] [ Jekyll ] [ Gold standard ]
The Federal Reserve is
by Thomas D. Schauf (c 1992)
Pursuant to your request, I will attempt to clear up questions you have about
the Federal Reserve Bank (FED). I spent much time researching the FED and these
are the shocking and revealing conclusions.
THE FEDERAL RESERVE BANK IS A PRIVATE COMPANY.
Article 1, Section 8 of the Constitution states that Congress shall have the
power to coin (create) money and regulate the value thereof. Today however, the
FED, which is a privately owned company, controls and profits by printing money
through the Treasury, and regulating its value.
The FED began with approximately 300 people or banks that became owners
(stockholders purchasing stock at $100 per share - the stock is not publicly
traded) in the Federal Reserve Banking System. They make up an international
banking cartel of wealth beyond comparison (Reference 1, 14).
The FED banking system collects billions of dollars (Reference 8, 17) in
interest annually and distributes the profits to its shareholders. The Congress
illegally gave the FED the right to print money (through the Treasury) at no
interest to the FED. The FED creates money from nothing, and loans it back to us
through banks, and charges interest on our currency. The FED also buys
Government debt with money printed on a
printing press and charges U.S. taxpayers interest. Many Congressmen and
Presidents say this is fraud (Reference 1,2,3,5,17).
Who actually owns the Federal Reserve Central Banks? The ownership of the 12
Central banks, a very well kept secret, has been revealed:
Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Banks of Italy
Goldman, Sachs of New York
Warburg Bank of Amsterdam
Chase Manhattan Bank of New York
(Reference 14, P. 13, Reference 12, P. 152)
These bankers are connected to London Banking Houses which ultimately control
the FED. When England lost the Revolutionary War with America (our forefathers
were fighting their own government), they planned to control us by controlling
our banking system, the printing of our money, and our debt (Reference 4, 22).
The individuals listed below owned banks which in turn owned shares in the FED.
The banks listed below have significant control over the New York FED District,
which controls the other 11 FED Districts. These banks also are partly foreign
owned and control the New York FED District Bank. (Reference 22)
First National Bank of New York
James Stillman National City Bank, New York
Mary W. Harnman
National Bank of Commerce, New York
Hanover National Bank, New York
Chase National Bank, New York
Thomas F. Ryan
Levi P. Morton
George F. Baker
Mrs. G.F. St. George
Katherine St. George
J.P. Morgan (Equitable Life/Mutual Life)
Edith Brevour T. Baker
(Reference 4 for above, Reference 22 has details, P. 92, 93, 96, 179)
How did it happen? After previous attempts to push the Federal Reserve Act
through Congress, a group of bankers funded and staffed Woodrow Wilson's
campaign for President. He had committed to sign this act. In 1913, a
Senator, Nelson Aldrich, maternal grandfather to the Rockefellers, pushed
the Federal Reserve Act through Congress just before Christmas when much of
Congress was on vacation (Reference 3, 4, 5). When elected, Wilson passed
the FED. Later, Wilson remorsefully replied (referring to the FED), "I have
unwittingly ruined my country" (Reference 17, P. 31).
Now the banks financially back sympathetic candidates. Not surprisingly,
most of these candidates are elected (Reference 1, P. 208-210, Reference
12, P. 235, Reference 14, P. 36). The bankers employ members of the
Congress on weekends (nickname T&T club -out Thursday...-in Tuesday) with
lucrative salaries (Reference 1, P. 209). Additionally, the FED started
buying up the media in the 1930's and now owns or significantly influences
most of it Reference 3, 10, 11, P. 145).
Presidents Lincoln, Jackson, and Kennedy tried to stop this family of
bankers by printing U.S. dollars without charging the taxpayers interest
(Reference 4). Today, if the government runs a deficit, the FED prints
dollars through the U.S. Treasury, buys the debt, and the dollars are
circulated into the economy.
In 1992, taxpayers paid the FED banking system
$286 billion in interest on debt the FED purchased by printing money
virtually cost free (Reference 12, P. 265). Forty percent of our personal
federal income taxes goes to pay this interest. The FED's books are not
open to the public. Congress has yet to audit it.
Congressman Wright Patman was Chairman of the House of Representatives
Committee on Banking and Currency for 40 years. For 20 of those years, he
introduced legislation to repeal the Federal Reserve Banking Act of 1913.
Congressman Henry Gonzales, Chairman of a banking committee, introduces
legislation to repeal the Federal Reserve Banking Act of 1913 nearly every
year. It's always defeated, the media remains silent, and the public never
learns the truth. The same bankers who own the FED control the media and give huge political contributions to sympathetic members of Congress
(Reference 12, P. 155-163, Reference 22, P. 158, 159, 166).
The Fed fears the population will become aware of this
fraud and demand change
Rep. Louis T. McFadden (R. Pa.) rose from office boy to become cashier and
then President of the First National Bank in Canton Ohio. For 12 years he
served as Chairman of the Committee on Banking and Currency, making him one
of the foremost financial authorities in America. He fought continuously
for fiscal integrity and a return to constitutional government (Reference
1). The following are portions of Rep. McFadden's speech, quoted from the
Congressional Record, pages 12595-12603:
"THE FEDERAL RESERVE BOARD, A GOVERNMENT BOARD, HAS CHEATED THE GOVERNMENT
OF THE UNITED STATES AND THE PEOPLE OF THE UNITED STATES OUT OF ENOUGH MONEY TO
PAY THE NATIONAL DEBT.
"The depredations and the iniquities of the Federal Reserve Board and the
Federal Reserve banks acting together have cost this country ENOUGH MONEY
TO PAY THE NATIONAL DEBT SEVERAL TIMES OVER."
About the Federal Reserve banks, Rep. McFadden said,
"They are private
credit monopolies which prey upon the people of the United States for the
benefit of themselves and their foreign customers, foreign and domestic
speculators and swindlers, the rich and predatory money lenders. This is an
era of economic misery and for the reasons that caused that misery, the
Federal Reserve Board and the Federal Reserve banks are fully liable."
On the subject of media control he state, "Half a million dollars was spent
on one part of the propaganda organized by those same European bankers for
the purpose of misleading public opinion in regard to it."
Rep. McFadden continued,
"Every effort has been made by the Federal Reserve
Board to conceal its power but the truth is the Federal Reserve Board has USURPED THE GOVERNMENT OF THE UNITED STATES. IT CONTROLS EVERYTHING HERE AND IT
CONTROLS ALL OUR FOREIGN RELATIONS. IT MAKES AND BREAKS GOVERNMENTS AT WILL.
"No man and no body of men is more entrenched in power than the arrogant
credit monopoly which operates the Federal Reserve Board and the Federal
Reserve banks. These evil-doers have robbed this country of more than
enough money to pay the national debt. What the Government has permitted
the Federal Reserve Board to steal from the people should now be restored
to the people."
"Our people's money to the extent of $1,200,000,000 has within the last few
months been shipped abroad to redeem Federal Reserve Notes and to pay other
gambling debts of the traitorous Federal Reserve Board and the Federal
Reserve banks. The greater part of our monetary stock has been shipped to
foreigners. Why should we promise to pay the debts of foreigners to
foreigners? Why should American Farmers and wage earners add millions of
foreigners to the number of their dependents? Why should the Federal
Reserve Board and the Federal Reserve banks be permitted to finance our
competitors in all parts of the world?" Rep. McFadden asked.
"The Federal Reserve Act should be repealed and the Federal Reserve banks,
having violated their charters, should be liquidated immediately.
FAITHLESS GOVERNMENT OFFICERS WHO HAVE VIOLATED THEIR OATHS SHOULD BE
IMPEACHED AND BROUGHT TO TRIAL", Rep. McFadden concluded (Reference 1,
contains an entire chapter on Rep. McFadden's speech).
If the media is unbiased, independent and completely thorough, why haven't
they discussed the FED? Currently, half the states have at least a grass
roots movement in action to abolish the FED, but there's no press coverage.
In July, 1968, the House Banking Subcommittee reported that Rockefeller,
through Chase Manhattan Bank, controlled 5.9% of the stock in CBS.
Furthermore, the bank had gained interlocking directorates with ABC.
In 1974, Congress issued a report stating that the Chase Manhattan Bank's
stake in CBS rose to 14.1% and NBC to 4.5% (through RCA, the parent company
of NBC). The same report said that the Chase Manhattan Bank held stock in
28 broadcasting firms. After this report, the Chase Manhattan Bank obtained
6.7% of ABC, and today the percentage could be much greater.
requires 5% ownership to significantly influence the media (Reference 14,
P. 56-57). This is only one of 300 wealthy shareholders of the FED. It is
believed other FED owners have similar holdings in the media. To control
the media, FED bankers call in their loans if the media disagrees with them
(Reference 25, P. 134-137).
Rockefeller also controls the Council on Foreign Relations (CFR), the sole
purpose of which is to aid in stimulating greater interest in foreign
affairs and in a one world government. Nearly every major newscaster
belongs to the Council on Foreign Relations. The Council on Foreign
Relations controls many major newspapers and magazines. Additionally, major
corporations owned by FED shareholders are the source of huge advertising
revenues which surely would influence the media (Reference 14, P. 56-59).
It can be no wonder why groups such as FED-UP(tm) receive minimal, if any,
press attention. .
In other words, by Congress allowing the constitutionally illegal FED to
continue, much of your taxes go to the shareholders of the FED and their
Note: The people who enacted the FED started the IRS, within
months of the FED's inception. The FED buys U.S. debt with money they
printed from nothing, then charges the U.S. taxpayers interest. The
government had to create income tax to pay the interest expense to the
FED's shareholders, but the income tax was never legally passed (Reference
20 shows details, state-by-state why it was not legally passed). The FED is
illegal, per Article 1, Section 8 of the United States Constitution. Not
one state legally ratified the 16th Amendment making income tax legal. .
Why has Congress allowed the FED to continue? If a Congressperson tries to
abolish the FED, the banks fund the Congressperson's opponent in the next
election (Reference 17, P. 35). The new Congressperson will obviously
support the FED. When Congresspeople retire, political campaign funds are
not taxed. Get elected and be a millionaire if you vote right. By the way,
the profit of the FED is not taxed either (Reference 1, 9).
Consider this fact. Most of the given sources in this booklet show how the
blood line of family bankers who own the FED funded both sides of all major
wars. They created fake colonial money to destroy the Americans during the
Revolutionary War and tried to finance both sides in the American Civil
War. Abraham Lincoln refused and the South accepted.
show that these bankers financed World War I, World War II, and the Russian
Revolutionary War, which helped Napoleon, Lenin, and Hitler come to power.
They financed both sides from money created from nothing and profited
These same bankers created a number of American
change the U.S. legislation and seize our wealth. Read the sources for
details. This is why our forefathers wrote in the Constitution that only
Congress can issue money - not private banks (Reference 18).
More wars create more debt which means
more profit to the bankers
(Reference 1, 21). These bankers planned three world wars so people would
welcome United Nations intervention to govern the world in peace, not war.
(Reference 22 gives specific details on World War I and World War II,
showing exactly how the bankers were responsible for the beginning and
continuation of these wars for their profit).
The banks have publicly announced they will force us to a cashless society
by 1997. Furthermore, they plan to create a one world government through
the United Nations headed by the FED, Trilaterals, and the Council on
Foreign Relations (Reference 3). By the definition of treason, they have
committed treason! This means you lose your rights under the Constitution
and Bill of Rights. Does this sound far fetched? . The FED announced
publicly that their first objective was to get nationalism out of the
American people's heads because patriotism to a country would not be of value in the future. The media makes us think the U.N. has all the answers,
and to "think globally." . State Department document 7277 calls for
disarming of America, thus turning our sovereignty over to a one-world
government. Again, the media is pushing to eliminate guns. Our forefathers
believed that the right to bear arms would prevent a takeover of our
government. History shows that before any government took over, they
disarmed the citizens. Hitler did it, and before our Revolutionary War, King George told us to disarm - good thing we didn't!
Under the Federal Reserve Bank Act, the bankers control our economy. The
FED controls interest rates and the amount of money in the economy. These
factors determine either economic prosperity or the lack thereof. Bankers
are now pushing for a one world government and a cashless society. Why
cashless? .What a cashless society really means is the banks can now
control you. Today you fear the IRS. In a cashless society, if you disagree
with the bankers' political goals, you'll find your money gone via computer
error. (For additional information on a cashless society, read Reference
13, P. 174; Reference 3; Reference 14, P. 9-12; Reference 15, P. 136;
Reference 25, P. 216).
If you could accurately predict future interest rates, inflation and
deflation, you would know when to buy or sell stocks and make a bundle of
money. The FED has secret meetings (per Congressional Record) to determine
future interest rates and the amount of money to be printed. The Securities
Exchange Commission (SEC) by law, stops insiders from profiting by
privileged information. Congressional records prove that FED bankers
routinely hold secret meetings to profit by manipulating the stock market
via interest rates and the amount of money they create. FED bankers also
profit greatly from economic disasters like the Depression (Reference 22,
P. 56). The bankers create inflation, sell their stocks before the market
crashes, then buy up stocks at cheaper prices. Bankers admitted this to
Congress. This violates the law, yet Congress does not act because these
bankers are large political contributors (Reference 17, P. 96-98; Reference
1, P. 162-163; Reference 22, P. 114-170 & P. 136). Thomas Jefferson
predicted this scenario if we ever allowed a private bank, like the FED, to
create our currency (Reference 1, P. 247).
FED Chairman Burns states "[A] Killing can be made simply by knowing the
next few months newspapers ahead of time." Congressman Patman said
officials own more than 100 million dollars (of stocks) while making
decisions influencing these stock prices..." (Reference 24, P. 123).
History proves that banks profit from bankrupting a nation (Reference 22,
P. 56). .
Section 7 of the Federal Reserve Act, passed December 23, 1913, states that
much of the profit of the FED should flow into the U.S. Treasury. In 1959,
new legislation allowed the FED to transfer bonds to commercial banks at no
cost to the bank. Now the FED receives less interest income and less profit
for the U.S. Treasury because the money is diverted to other banks through
an accounting entry (Reference 17, P. 115-130). Congress and the IRS do not
have access to the financial records of the FED. Every year Congress
introduces legislation to audit the FED, and every year it is defeated. The
FED banking system could easily be netting 100s of billions in profit each
year. Through "creative accounting" profit can easily be reclassified
expense (Reference 14, P. 20, Reference 17, P. 239). Within the first few
years, the shareholders of the FED received their initial investment back
with no risk. All the income is tax-free, except for property tax,
according to the Federal Reserve Act. .
"We the People" have pushed the following states to pass or introduce
legislation calling for an end to the FED: Arizona, Washington, Arkansas,
Idaho, Oregon, Indiana, and Texas. . By abolishing the FED, we would not
pay interest on Federal Reserve Notes. Until it is abolished, the FED has a
monopoly on profit on our currency and whether our money supply will be
increased or decreased, inflation or depression. The banks are capable of
controlling business by controlling who can or cannot obtain a loan. .
Why our forefathers fought the FED
"Allow me to control the issue and the nation's money and I care not who
makes its laws!"
The above quote has long been attributed to the 18th
century banker Amshell Rothschild (his blood line controls the FED). For if
one unscrupulous group is allowed to print a nation's money - it can
eventually use that money to gain control of the press AND the politicians - and thus gain control of making the nation's laws - and finally - control
of the nation itself. (Reference 4)
If you will take the time to read the reference material listed which has
been researched by Professors of Universities, Congress people, etc, you
will turn up information that might frighten you. For instance, in 1921 the
stockholders of the Federal Reserve financed an organization called the
"Council on Foreign Relations" (CFR). Harpers Magazine called this the
powerful organization in the United States. 90 percent of the people in
the State Department and key positions in the Executive Branch are members
of the CFR. The CFR publishes a magazine called "Foreign Affairs."
if you want to know what is going to happen in coming years. The CFR is in
favor of a New World Order (Reference 3).
Congressman Patman re-quoted Thomas Jefferson showing that our founding
fathers knew this banking principle very well.
"I believe that banking
institutions are more dangerous to our liberties than standing armies...."
"Already they have raised up a money aristocracy that has set the
government at defiance. The issuing power (of money)," he said,
taken from the banks and restored to the people to whom it properly
The American Revolution was a struggle to wrest control of wealth
from the Bank of England and to restore the centers of power to the People
where it "properly belongs." The Constitution is specific about the
authority of the People, through their elected officials, to control the
money, and thus, the affairs of their government. (Reference 5, P. 32).
Ben Franklin said in his autobiography that the inability of the colonists
to get the power to issue their own money permanently out of the hands of
George III and the international bankers was [one of] the PRIME reason[s]
for the Revolutionary War. (Quoted in Reference 4)
Thomas Jefferson stated,
"If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation,
the banks and corporations that will grow up around them will deprive the
people of all property until their children will wake up homeless on the
continent their fathers conquered." (Reference 1, P. 247)
Congressman Charles A. Lindbergh of Minnesota said:
"This [Federal Reserve]
Act establishes the most gigantic trust on Earth. When the President
[Wilson] signs this bill, the invisible government of the Monetary Power
will be legalized... the worst legislative crime of the ages, perpetuated
by this banking and currency bill." (Reference 5, P. 33)
Robert H. Hemphill (Credit Manager, Federal Reserve Bank in Atlanta):
are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit.
"If the banks create
ample synthetic money we are prosperous; if not, we starve. We are
absolutely without a permanent money system. When one gets a complete grasp
of the picture, the tragic absurdity of our hopeless position is almost
incredible, but there it is. It [the banking problem] is the most important
subject intelligent persons can investigate and reflect upon.
"It [the banking problem] is so
important that our present civilization may collapse unless it becomes
widely understood and the defects are remedied very soon."
(Reference 1, P.
Napoleon, a sympathizer for the international bankers, turned against them
in the last years of his rule. He said:
"When a government is dependent
upon bankers for money, they and not the leaders of the government control
the situation, since the hand that gives is above the hand that takes...
Money has no motherland; financiers are without patriotism and without
decency; their sole object is gain." (Reference 4)
Congress people have referred to Federal Reserve Notes as "FIAT" (no-backing) money. (Reference 1, P. 128, 169)
In 1879 the Supreme Court declared that the U.S. Government can legally
issue United States Notes, debt and interest-free, just as Lincoln and
Kennedy attempted. (Reference 1, P. 233)
A bank that attempted to repossess property on the basis of default faced
Judge Mahoney in a jury trial. Jerome Daly was found innocent. The bank
could not foreclose on the property because it created the loan money from
thin air, as many banks do. Use this as a precedent the next time any bank
tries to foreclose on your house. (Reference 17, P. 82, 83 for court
The FED violates Security & Exchange Commission (SEC) rules. (Reference 17,
California 9th Circuit Court declared FED banks are private, not
government. (Reference 17, P. 273)
Mr. Marriner Eccles, who was Chairman of the board of Governors of the
Federal Reserve System longer than any other man, testified before the
Joint Economic Committee in August 1962. When Chairman Rep. Wright Patman
asked whether it was not a fact that the Federal Reserve System has more
power than either the Congress or the President, Eccles replied: "In the
field of money and credit, yes." (Reference 1, P. 206)
Dr. Hans F. Sennholz, Chairman of the Department of Economics at Grove City
(PA) College stated: "The Federal Reserve System facilitates the
government's own inflationary financing in "periods of emergency." It
easy the inflationary financing of budget deficits and the inflationary
refunding of government loans. It stabilizes the government bond market
through inflationary methods and manipulates this market to the advantage
of the government. It does all this by wrecking the purchasing power of the
dollar; by subtly stealing from the people of this country what it thus
provides for the government, through a process exactly on par with the coin
clipping of ancient kings but much less visible." (Reference 1, P. 250,
Source: Banking Act of 1935, Hearings before a Subcommittee of the Banking
and Currency Committee, U.S. Senate, 74th Congress, 1st Session, on S.1715,
May 1935, pp 871-2. "The Federal Reserve System is in the wrong hands. No
Constitutional republic can function when the government's money powers are
in the hands of the financial oligarchy such as New York financiers.
.By controlling Congress, the FED has been able to control the nominating
conventions of both political parties. In this way, it has been able to
hand-pick the presidential nominees so that no matter which party wins,
their nominee for President is under definite obligations to the FED...
(Reference 1, P. 210; Reference 22)
In 1975, the Rockefeller Foundation Report discussed the
of the countries of the world on each other. It stated we are one world and
America shall become a nation-state under one government. They also say we
must reach a zero state population growth. The Rockefeller Foundation
stated that they have in excess of 747 million dollars to achieve this
with. (Reference 3)
Congressman John R. Rarick states that the Council on Foreign Relations
CFR) is dedicated to a one world government. The media remains
conspicuously quiet. The CFR wants to convert the U.S. from a sovereign,
constitutional republic into a servile member state of a one world
dictatorship. On February 17, 1950, CFR member James Warburg (banker, and
architect of the Federal Reserve System) stated before a Senate Foreign
Relations Committee, "We shall have one world government whether or not you
like it, by conquest or consent." Again, the media remained silent. In the
April 1974 issue of the CFR journal, "Foreign Affairs", page 558,
Gardener states that the new world order "will be built... but an end run
around national sovereignty, eroding it piece by piece, will accomplish
much more than the old fashioned frontal assault." Congressman McDonald,
Heinz and Tower stated that this is a conspiracy. Again, the media remained
silent. (Reference 14, P. 17, 18, 32, 33). .
In a letter to Thomas Jefferson, John Adams wrote: "All the perplexities,
confusions, and distresses in America arise, not from defects in the
Constitution or confederation, not from want of honor or virtue, as much as
from downright ignorance of the nature of coin, credit, and circulation".
British bankers have stated "Those that create and issue money and credit
direct the policies of government and hold in their hands the destiny of
the people". (Reference 1, P. 200-214) Adams, Jefferson, and
believed that banker capitalism was more dangerous to our liberties than
standing armies. In a republic, banks would lend money but could not create
or manufacture it. (Reference 1, P. 215)
Later, Jefferson used stronger language and denounced the institution as
"one of the most deadly hostilities against the principles and form of our
Constitution." Some have said that Jefferson did not favour a strong central
bank. What he did not favour was the delivery of our monetary system into
private hands to be run for private profit. (Reference 1, P. 230)
President James A. Garfield said: "Whoever controls the money in any
country is absolute master of industry [legislation] and commerce".
(Reference 1, P. 247, Reference 4) .
By controlling our own money, Thomas Jefferson expected that the government
would incur no debt, as had occurred in the European system. (Reference 1,
P. 243) European banks are like the FED.
England lost the Revolutionary War.
England nearly destroyed the Colonies by creating fake Colonial money and
Rothschilds who control the Bank of England (Like our FED) said that by
controlling the issue of money (printing it) you can control the
The authors of the Constitution understood private banks' control over
governments. The Constitution gives only Congress the right to print money.
From the beginning of the United States to present there have been two
ways to issue new currency:
The first way is to have the government print the money, debt and interest-free, and circulate it through the economy for use as a medium of exchange.
There is no tax levied to pay interest on the currency in circulation
because it is debt and interest-free. This is the system Lincoln used with
his "greenbacks", a system Kennedy desired, and Jefferson demanded.
The second method is: The Citizens allow the bank to print $500 billion in
currency (cash). The bank pays for printing costs, ink, and paper. The
citizens do not charge the bank any interest for use of the $500 billion in
printed currency. The bank uses the $500 billion cash to buy a $500 billion
government bond which pays the bankers interest. The bank keeps some of the
bonds and sells, for a fee (10%), some of the bonds to the public.
can buy back the bonds from the public simply by printing more money. The
bankers can create inflation and depressions by manipulating the amount of
currency in circulation. The FED operates exactly like this today. It also
prints money (through the U.S. Treasury) and uses this printed money to buy
loans from other banks. This money has created our inflation. We give the
bank cash interest-free, then they charge us interest on our own currency.
ANDREW JACKSON - A GREAT PRESIDENT!
When the 1816 charter expired in 1836, Andrew Jackson vetoed its renewal.
It was then that he made two famous statements: "The Bank is trying to kill
me - but I will kill it!" Later he said "If the American people only
understood the rank injustice of our money and banking system - there would
be a revolution before morning..." (Reference 4)
ABRAHAM LINCOLN - ANOTHER GREAT PRESIDENT!
President Lincoln needed money to finance the Civil War, and the
international bankers offered him loans at 24-36% interest. Lincoln balked
at their demands because he didn't want to plunge the nation into such a
huge debt. Lincoln approached Congress about passing a law to authorize the
printing of U.S. Treasury Notes. Lincoln said "We gave the people of this
Republic the greatest blessing they ever had - their own paper money to pay
their debts..." Lincoln printed over 400 million "Greenbacks"
interest-free) and paid the soldiers, U.S. government employees, and bought
war supplies. The international bankers didn't like it and wanted Lincoln
to borrow the money from them so that the American people would owe
tremendous interest on the loan. Lincoln's solution made this seem
ridiculous. (Reference 1, P. 46, 47; Reference 4)
Shortly after Lincoln's death, the government revoked the Greenback law
which ended Lincoln's debt-free, interest-free money. A new national
banking act was enacted and all money became interest bearing again.
The late Thomas A Edison explained the matter of issuing currency this way:
"If our nation can issue a dollar bond (interest bearing) it can issue a
dollar bill (interest-free). The element that makes the bond good makes a
bill good also. The difference between the bond and the bill is that the
bond lets money brokers collect twice the amount of the bond and an
additional 20 percent, whereas the currency pays nobody but those who
contribute directly in some useful way. It is absurd to say that our
country can issue $30 million in bonds and not $30 million in currency.
Both are promises to pay: But one promise fattens the usurers (interest
collectors) and the other helps the people." (Reference 1, P. 46)
The FED is owned largely by foreign banks that control our economy and
Congress through the power of money and the media which they bought with
profits generated with profits generated by artificial debt. .
Lincoln printed debt and interest-free Greenbacks (cash) to finance an
entire war. . Lincoln proved it. John F. Kennedy - a President with vision!
On June 4, 1964, President Kennedy issued Executive Order 11110. This
Executive Order called for the issuance of new currency - the United States
Note. At the time, $4,292,893 of this currency was put into circulation.
This new currency was to be distributed through the U.S. Treasury and not
the Federal Reserve System. Furthermore, it was to be issued debt and
interest-free. Upon Kennedy's assassination, this currency was withdrawn
from circulation, never to be issued again. The media remained silent on
how Kennedy would have eliminated the debt and interest payments, and
therefore eliminated the FED.
U.S. history proves that issuing debt and interest-free currency allows our
economy to prosper, as long as Congress controls the amount of money
(1) "The Federal Reserve Bank", by H.S. Kenan, published by The
(2) National Committee to Repeal the Federal Reserve Act, P.O. Box 156,
Westmont, IL 60559
(3) "The New World Order, Saving America", P.O. Box 1205, Middleburg,
(4) "Bulletin", February 1989 & November 1991 issues, P.O. Box
Ft. Collins, CO 80522 (Newsletter; $3 each)
(5) "The Most Secret Science", Betsy Ross Press, P.O. Box 986, Ft.
Collins, CO 80522 (Book) States attempt to abolish the FED. $12.00
(6) "Insider Report", P.O. Box 84903, Phoenix, AZ 85071
(7) "Phoenix Journal Express", P.O. Box 986, Tehachap, CA 93581
(8) $16 trillion in government and private debt, much of which the FED
printed and collected interest on (Reference 3)
(9) Northpoint Tactical Team, P.O. Box 129, Topton, NC 28781
(10) Christian Defense League, Box 449, Arabi, LA 70023
(11) "Bulletin", June 1992 issue, P.O. Box 986, Ft. Collins, CO 80522
(Newsletter; $3 each)
(12) "Savings and Loan Unethical Bailout" by Rev. Casimir F. Gierut
(13) "Dark Secrets of the New Age" by Texe Marrs
(14) "En Route to Global Occupation" by Gary H. Kah
(15) "One World" by John Amkerberg & John Weldon
(16) "The Spotlight", Liberty Lobby, 300 Independence Ave. S.E.,
Washington, D.C. 20003 (Newspaper)
(17) "Repeal the Federal Reserve Banks" by Rev. Casimir Frank Gierut
(18) The Constitution of the United States
(19) "Walls in Our Minds" by M.J. Red Beckman, Common Sense Press,
Box 1544, Billings, MT 59103. A must read book - $2.50
(20) "The Law That Never Was" Volume I, Bill Benson & M.J. Red
P.O. Box 1544, Billings, MT 59103 or write to Bill Benson, P.O.
Box 550, South Holland, IL 60473. Proof that the 16th Amendment
(income tax) was never properly ratified.
(21) "New World Order: The Ancient Plan of Secret Societies" by
(22) "The Secrets of the Federal Reserve" by Mullins
(23) "The Social Security & Pension Conspiracy" by Metz
(24) "The History of the Federal Reserve. How to Replace It or How to
Reform It" by Metz - for references 23 & 24 write to Howard Metz,
P.O. Box 341, Malverne, LI 11565
(25) "The New World Order" by Pat Robertson. On page 131 he states
that we must abolish the FED.
(26) "Operation Vampire Killer 2000", highly recommended book. $6.00
for 2) from ACLA, P.O. Box 8712, Phoenix, AZ 85066 This is a must read book
with quotes from well known people. This book proves conspiracy. Your local
police needs to read this book so they will protect you - not become United
Nations Agents against you. This book will stop the New World Order plan to
take over the U.S.A.
"America Betrayed", Center For Action, 652 N. Glenview, Mesa, AZ
For references 1, 12, and 17, contact The National Committee to
Repeal the Federal Reserve Act (Reference 2)
A Phone Call To The Fed
- From Dan Benham ©1988-2002
- The following is a conversation with Mr. Ron Supinski
of the Public Information Department of the San
Francisco Federal Reserve Bank. This is an account of
- CALLER - Mr. Supinski, does my country own the Federal
- MR. SUPINSKI - We are an agency of the government.
- CALLER - That's not my question. Is it owned by my
- MR. SUPINSKI - It is an agency of the government
created by congress.
- CALLER - Is the Federal Reserve a Corporation?
- MR. SUPINSKI - Yes
- CALLER - Does my government own any of the stock in
the Federal Reserve?
- MR. SUPINSKI - No, it is owned by the member banks.
- CALLER - Are the member banks private corporations?
- MR. SUPINSKI - Yes
- CALLER - Are Federal Reserve Notes backed by anything?
- MR. SUPINSKI-Yes, by the assets of the Federal Reserve
but, primarily by the power of congress to lay tax on
- CALLER - Did you say, by the power to collect taxes is
what backs Federal Reserve Notes?
- MR. SUPINSKI - Yes
- CALLER - What are the total assets of the Federal
- MR. SUPINSKI - The San Francisco Bank has $36 Billion
- CALLER - What are these assets composed of?
- MR. SUPINSKI - Gold, the Federal Reserve Bank itself
and government securities.
- CALLER - What value does the Federal Reserve Bank
carry gold per oz. on their books?
- MR. SUPINSKI - I don't have that information but the
San Francisco Bank has $1.6 billion in gold.
- CALLER - Are you saying the Federal Reserve Bank of
San Francisco has $1.6 billion in gold, the bank itself
and the balance of the assets is government securities?
- MR. SUPINSKI - Yes.
- CALLER - Where does the Federal Reserve get Federal
Reserve Notes from?
- MR. SUPINSKI - They are authorized by the Treasury.
- CALLER - How much does the Federal Reserve pay for a
$10 Federal Reserve Note?
- MR. SUPINSKI - Fifty to seventy cents.
- CALLER - How much do they pay for a $100.00 Federal
- MR. SUPINSKI - The same fifty to seventy cents.
- CALLER - To pay only fifty cents for a $100.00 is a
tremendous gain, isn't it?
- MR. SUPINSKI - Yes
- CALLER - According to the US Treasury, the Federal
Reserve pays $20.60 per 1,000 denomination or a little
over two cents for a $100.00 bill, is that correct?
- MR. SUPINSKI - That is probably close.
- CALLER - Doesn't the Federal Reserve use the Federal
Reserve Notes that cost about two cents each to purchase
US Bonds from the government?
- MR. SUPINSKI - Yes, but there is more to it than that.
- CALLER - Basically, that is what happens?
- MR. SUPINSKI - Yes, basically you are correct.
- CALLER - How many Federal Reserve Notes are in
- MR. SUPINSKI - $263 billion and we can only account
for a small percentage.
- CALLER - Where did they go?
- MR. SUPINSKI - Peoples mattress, buried in their back
yards and illegal drug money.
- CALLER - Since the debt is payable in Federal Reserve
Notes, how can the $4 trillion national debt be paid-off
with the total Federal Reserve Notes in circulation?
- MR. SUPINSKI - I don't know.
- CALLER - If the Federal Government would collect every
Federal Reserve Note in circulation would it be
mathematically possible to pay the $4 trillion national
- MR. SUPINSKI - No
- CALLER - Am I correct when I say, $1 deposited in a
member bank $8 can be lent out through Fractional
- MR. SUPINSKI - About $7.
- CALLER - Correct me if I am wrong but, $7 of
additional Federal Reserve Notes were never put in
circulation. But, for lack of better words were
"created out of thin air " in the form of
credits and the two cents per denomination were not paid
either. In other words, the Federal Reserve Notes were
not physically printed but, in reality were created by a
journal entry and lent at interest. Is that correct?
- MR. SUPINSKI - Yes
- CALLER - Is that the reason there are only $263
billion Federal Reserve Notes in circulation?
- MR. SUPINSKI - That is part of the reason.
- CALLER - Am I mistaking that when the Federal Reserve
Act was passed (on Christmas Eve) in 1913, it
transferred the power to coin and issue our nation's
money and to regulate the value thereof from Congress to
a Private corporation. And my country now borrows what
should be our own money from the Federal Reserve (a
private corporation) plus interest. Is that correct and
the debt can never be paid off under the current money
system of country?
- MR. SUPINSKI - Basically, yes.
- CALLER - I smell a rat, do you?
- MR. SUPINSKI - I am sorry, I can't answer that, I work
- CALLER - Has the Federal Reserve ever been
- MR. SUPINSKI - We are audited.
- CALLER - Why is there a current House Resolution 1486
calling for a complete audit of the Federal Reserve by
the GAO and why is the Federal Reserve resisting?
- MR. SUPINSKI - I don't know.
- CALLER - Does the Federal Reserve regulate the value
of Federal Reserve Notes and interest rates?
- MR. SUPINSKI - Yes
- CALLER - Explain how the Federal Reserve System can be
Constitutional if, only the Congress of the US, which
comprises of the Senate and the House of representatives
has the power to coin and issue our money supply and
regulate the value thereof? [Article 1 Section 1 and
Section 8] Nowhere, in the Constitution does it give
Congress the power or authority to transfer any powers
granted under the Constitution to a private corporation
or, does it?
- MR. SUPINSKI - I am not an expert on constitutional
law. I can refer you to our legal department.
- CALLER - I can tell you I have read the Constitution.
It does NOT provide that any power granted can be
transferred to a private corporation. Doesn't it
specifically state, all other powers not granted are
reserved to the States and to the citizens? Does that
mean to a private corporation?
- MR. SUPINSKI - I don't think so, but we were created
- CALLER - Would you agree it is our country and it
should be our money as provided by our Constitution?
- MR. SUPINSKI - I understand what you are saying.
- CALLER - Why should we borrow our own money from a
private consortium of bankers? Isn't this why we had a
revolution, created a separate sovereign nation and a
Bill of Rights?
- MR. SUPINSKI - (Declined to answer).
- CALLER - Has the Federal Reserve ever been declared
constitutional by the Supreme Court?
- MR. SUPINSKI - I believe there has been court cases on
- CALLER - Have there been Supreme Court Cases?
- MR. SUPINSKI - I think so, but I am not sure.
- CALLER - Didn't the Supreme Court declare unanimously
in A.L.A. Schechter Poultry Corp. vs. US and Carter vs.
Carter Coal Co. the corporative-state arrangement an
unconstitutional delegation of legislative power? ["The
power conferred is the power to regulate. This is
legislative delegation in its most obnoxious form; for
it is not even delegation to an official or an official
body, presumptively disinterested, but to private
persons." Carter vs. Carter Coal Co...]
- MR. SUPINSKI - I don't know, I can refer you to our
- CALLER - Isn't the current money system a house of
cards that must fall because, the debt can
mathematically never be paid-off?
- MR. SUPINSKI - It appears that way. I can tell you
have been looking into this matter and are very
knowledgeable. However, we do have a solution.
- CALLER - What is the solution?
- MR. SUPINSKI - The Debit Card.
- CALLER - Do you mean under the EFT Act (Electronic
Funds Transfer)? Isn't that very frightening, when one
considers the capabilities of computers? It would
provide the government and all it's agencies, including
the Federal Reserve such information as: You went to the
gas station @ 2:30 and bought $10.00 of unleaded gas @
$1.41 per gallon and then you went to the grocery store
@ 2:58 and bought bread, lunch meat and milk for $12.32
and then went to the drug store @ 3:30 and bought cold
medicine for $5.62. In other words, they would
know where we go, when we went, how much we paid, how
much the merchant paid and how much profit he made.
Under the EFT they will literally know everything about
us. Isn't that kind of scary?
- MR. SUPINSKI - Yes, it makes you wonder.
- CALLER - I smell a GIANT RAT that has overthrown my
constitution. Aren't we paying tribute in the form of
income taxes to a consortium of private bankers?
- MR. SUPINSKI - I can't call it tribute, it is
- CALLER - Haven't all elected officials taken an oath
of office to preserve and defend the Constitution from
enemies both foreign and domestic? Isn't the Federal
Reserve a domestic enemy?
- MR. SUPINSKI - I can't say that.
- CALLER - Our elected officials and members of the
Federal Reserve are guilty of aiding and abetting the
overthrowing of my Constitution and that is treason.
Isn't the punishment of treason death?
- MR. SUPINSKI - I believe so.
- CALLER - Thank you for your time and information and
if I may say so, I think you should take the necessary
steps to protect you and your family and withdraw your
money from the banks before the collapse, I am.
- MR. SUPINSKI - It doesn't look good.
- CALLER - May God have mercy on the souls who are
behind this unconstitutional and criminal act called the
Federal Reserve. When the ALMIGHTY MASS awakens to this
giant hoax, they will not take it with a grain of salt.
It has been a pleasure talking to you and I thank you
for your time. I hope you will take my advice before it
- MR. SUPINSKI - Unfortunately, it does not look good.
- CALLER - Have a good day and thanks for your time.
- MR. SUPINSKI - Thanks for calling.
- If the reader has any doubts to the validity of this
conversation, call your nearest Federal Reserve Bank,
YOU KNOW THE QUESTIONS TO ASK! You won't find them
listed under the Federal Government. They are in the
white pages, along with Federal Express, Federal Deposit
Insurance Corp. (FDIC), and any other business. Find out
for yourself if all this is true.
- And then, go to your local law library and look up the
case of Lewis vs. US, case #80-5905, 9th Circuit, June
24, 1982. It reads in part: "Examining the
organization and function of the Federal Reserve Banks
and applying the relevant factors, we conclude that the
federal reserve are NOT federal instrumentality's . .
but are independent and privately owned and controlled
corporations - federal reserve banks are listed neither
as "wholly-owned' government corporations [under 31
USC Section 846] nor as 'mixed ownership' corporations
[under 31 USC Section 856] . . . 28 USC Sections
1346(b), 2671. '
- Federal agency' is defined as: the executive
departments, the military departments, independent
establishments of the United States, and corporations
acting primarily as instrumentality's of the United
States, but does not include any contractors with the
United States . . . There are no sharp criteria for
determining whether an entity is a federal agency within
the meaning of the Act, but the critical factor is the
existence of the federal government control over the
'detailed physical performance' and 'day to day
operations' of that entity.
- Other factors courts have considered include whether
the entity is an independent corporation . . . whether
the government is involved in the entity's finances, . .
. and whether the mission of the entity furthers the
policy of the United States . . . Examining the
organization and function of the Federal Reserve Banks,
and applying the relevant factors, we conclude that the
Reserve Banks are not federal instrumentalities ...
- It is evident from the legislative history of the
Federal Reserve Act that Congress did not intend to give
the federal government direction over the daily
operation of the Reserve Banks . . . The fact that the
Federal Reserve Board regulates the Reserve Banks does
not make them federal agencies under the Act . . .
Unlike typical federal agencies, each bank is empowered
to hire and fire employees at will. Bank employees do
not participate in the Civil Service Retirement System.
They are covered by worker's compensation insurance,
purchased by the Bank, rather than the Federal Employees
- Employees traveling on Bank business are not subject
to federal travel regulations and do not receive
government employee discounts on lodging and services .
. . Finally, the Banks are empowered to sue and be sued
in their own name. 12 USC Section 341. They carry their
own liability insurance and typically process and handle
their own claims . . ." According to the Federal
Reserve Bank of Philadelphia, "When the Federal
Reserve was created, its stock was sold to the member
banks." ("The Hats The Federal Reserve
Wears," published by the Federal Reserve Bank of
- The original Stockholders of the Federal Reserve Banks
in 1913 were the Rockefeller's, JP Morgan, Rothschild's,
Lazard Freres, Schoellkopf, Kuhn-Loeb, Warburgs, Lehman
Brothers and Goldman Sachs. The MONEYCHANGERS wanted to
be insured they had a monopoly over our money supply, so
Congress passed into law Title 12, Section 284 of the
United States Code. Section 284 specifically states,
"NO STOCK ALLOWED TO THE US" *
- Monopoly - "A privilege or peculiar advantage
vested in one or more persons or companies, consisting
in the exclusive right [or power] to carry on a
particular business or trade, manufacture a particular
article, or control the sale of the whole supply of a
particular commodity, A form of market structure in
which only a few firms dominate the total sales of a
product or service.
- 'Monopoly,' as prohibited by Section 2 of the Sherman
Antitrust Act, has two elements: possession of a
monopoly power in relevant market and willful
acquisition or maintenance of that power, as
distinguished from growth or development as a
consequence of a superior power, business acumen, or
historical product. A monopoly condemned by the Sherman
Act is the power to fix prices, or exclude competition,
coupled with policies designed to use and preserve that
power." (Black's Law Dictionary, 6th Edition) The
Federal Reserve Act goes one step farther, "No
Senator or Representative in Congress shall be a member
of the Federal Reserve Board or an officer or director
of a Federal Reserve Bank." They didn't want We The
People to have any say in the operation of their
monopoly through our elected officials.
- Copyright Notice: All rights reserved re: common-law
copyright of trade-name/trade-mark, DANIEL DOYLE BENHAM©-as
well as any and all derivatives and variations in the
spelling of said trade-name/trade-mark-Copyright© 1988
by Daniel Doyle Benham.
- Record Owner: Daniel Doyle Benham, Autograph Common
Law Copyright© 1988.
- From Dave Williams
- I would like to comment on the attached article posted
to your website.
- I am an avid reader of your site and think that some
of the articles you have posted have some merit behind
them. Others are written and posted by fear-mongers who
offer no solutions to the problems they encounter. This
one, however, seems to at least be taking a stand to
introduce legislation to turn the tide on the greedy,
robber barons of our time. But I would like to put to
rest something that has been commented for a long time
in various postings to your website that has had me
pegged for some time and has been completely untrue.
Whenever anyone talks about the Constitutional rights of
Congress to coin money and regulate the value thereof,
they always state that the Federal Reserve Banks (not
being an actual part of the government) have not been
duly authorized to perform these functions and the sole
right must remain with Congress. They site the
Constitution itself (Article I, Section 8, paragraph 5)
as being the law of the land (which it duly is) for the
legality of the Federal Reserve Banking system. For the
life of me, however, it seems that they quit reading at
this point, because the 18th and final paragraph of
Section 8 states:
- "To make all laws which shall be necessary and
proper for carrying into execution the foregoing powers
and all other powers vested by this Constitution in the
government of the United States, or in any department or
- Now, I'm not a Constitutional scholar, but I can read
plain English. This paragraph clearly shows how
farsighted the Constitutional framers were in the fact
that they new that the Constitution, while a great start
to this republic, was not the answer for every legality
to come up in the future. This paragraph clearly shows
also, that the Congress had the right to legislate the
power for coining money and its denominatory value to
other persons or businesses that were capable of doing
so by "carrying into execution the foregoing
powers", i.e. - the right to coin money and its
value. This final paragraph also means not just the
entire Section 8, but any part of the Constitution
pertaining to the making of laws vested in the power of
these United States by the Constitution.
- Why is it nobody ever comments on this paragraph?
Could it be that they just want to sow fear and hatred
in their fellow Americans for the government, all the
while knowing they are wrong? Or are they just plain
ignorant and believe what they want to? I for one, feel
the government is doing a pretty good job of bringing a
total disenchantment between them and the people of this
country. Why do think almost half the voting population
doesn't vote? I can tell you. They don't like who they
are voting for in either party!
- Again, I'll state for the record, I'm not a
Constitutional scholar, but a Design Engineer and while
not presuming that I know more than our duly appointed
Congressional Members, I do know from where right and
wrong is and where the laws currently stand on this.
Which is to say once and for all, that the Federal
Reserve Banking System is completely lawful!
- Now, do I agree with and like the current system? NO!!
But do we have to accept that it is and has been the law
since its enactment? YES! Now, I'm not going to split
hairs with anyone over whether or not it was duly
ratified by the 2/3rds margin of each states'
legislative group, but until the people of this country
wake up and take back their constitutional rights', as
in "We the people, by the people" we cannot
expect these changes to be made on our behalf. At least
the esteemed Rep Ron Paul is on the right track in
trying to get the laws changed legally. Now, whether he
will succeed or not will depend on the people of this
country. If we remain asleep at the wheel, so to say,
then we shall not. There has to be a common goal and
enough backing to make this happen! Wake up America!
- Dave Williams
Conspirators Heirarchy: The Committee of 300
By Dr John Coleman
I suggest that we try to find any media-outlet to do an exposé
on the Federal Reserve Board, which is what I did. I took my article, which was a good
exposé of the greatest swindle on earth, to every major newspaper, radio and
television station, magazine-house and several talk-show hosts. A few made
promises that sounded good--they would definitely air the article and have me
discuss it--give them about a week and they would get back to me. Not one of
them ever did, nor did my article ever appear in the pages of their newspapers
and journals. It was as if a blanket of silence had been thrown over me and the
subject I was endeavoring to promote, and indeed that was precisely what had
Secrets of the
Download in ZIP File
Download Word Document