Federal Reserve Directors A Study of Corporate and Banking Influence. Staff Report, Committee on Banking,Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976. ** Published 1976 by U.S. Govt. Print. Off. in Washington. Source

 

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Federal Reserve Directors: A Study of Corporate and Banking Influence Published 1983

The J. Henry Schroder Banking Company chart encompasses the entire history of the twentieth century, embracing as it does the program (Belgium Relief Commission) which provisioned Germany from 1915-1918 and dissuaded Germany from seeking peace in 1916; financing Hitler in 1933 so as to make a Second World War possible; backing the Presidential campaign of Herbert Hoover ; and even at the present time, having two of its major executives of its subsidiary firm, Bechtel Corporation serving as Secretary of Defense and Secretary of State in the Reagan Administration.

The head of the Bank of England since 1973, Sir Gordon Richardson, Governor of the Bank of England (controlled by the House of Rothschild) was chairman of J. Henry Schroder Wagg and Company of London from 1963-72, and director of J. Henry Schroder,New York and Schroder Banking Corporation,New York,as well as Lloyd's Bank of London, and Rolls Royce. He maintains a residence on Sutton Place in New York City, and as head of "The London Connection," can be said to be the single most influential banker in the world.
 

Chart 1

Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1976

Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.

Chart 2

Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1983

The J. Henry Schroder Banking Company chart encompasses the entire history of the twentieth century, embracing as it does the program (Belgium Relief Commission) which provisioned Germany from 1915-1918 and dissuaded Germany from seeking peace in 1916; financing Hitler in 1933 so as to make a Second World War possible; backing the Presidential campaign of Herbert Hoover ; and even at the present time, having two of its major executives of its subsidiary firm, Bechtel Corporation serving as Secretary of Defense and Secretary of State in the Reagan Administration.

The head of the Bank of England since 1973, Sir Gordon Richardson, Governor of the Bank of England (controlled by the House of Rothschild) was chairman of J. Henry Schroder Wagg and Company of London from 1963-72, and director of J. Henry Schroder, New York and Schroder Banking Corporation, New York, as well as Lloyd's Bank of London, and Rolls Royce. He maintains a residence on Sutton Place in New York City, and as head of "The London Connection," can be said to be the single most influential banker in the world.

Chart 3

Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1976

The David Rockefeller chart shows the link between the Federal Reserve Bank of New York, Standard Oil of Indiana, General Motors and Allied Chemical Corportion (Eugene Meyer family) and Equitable Life (J. P. Morgan).

Chart 4

** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1976

This chart shows the interlocks between the Federal Reserve Bank of New York J. Henry Schroder Banking Corp., J. Henry Schroder Trust Co., Rockefeller Center, Inc., Equitable Life Assurance Society ( J.P. Morgan), and the Federal Reserve Bank of Boston.

Chart 5

Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1976

This chart shows the link between the Federal Reserve Bank of New York, Brown Brothers Harriman,Sun Life Assurance Co. (N.M. Rothschild and Sons), and the Rockefeller Foundation.

** Source: Federal Reserve Directors: A Study of Corporate and Banking Influence. Staff Report,Committee on Banking,Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976.

 

 

Federal Reserve Directors: A Study of Corporate and Banking Influence
Published 1976

Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.




Federal Reserve Directors: A Study of Corporate and Banking Influence Published 1976

The David Rockefeller chart shows the link between the Federal Reserve Bank of New York,Standard Oil of Indiana,General Motors and Allied Chemical Corportion (Eugene Meyer family) and Equitable Life (J. P. Morgan).

http://www.apfn.org/Mind_Control/money/owns_fed.htm



Federal Reserve Directors: A Study of Corporate and Banking Influence Published 1976

This chart shows the interlocks between the Federal Reserve Bank of New York J. Henry Schroder Banking Corp., J. Henry Schroder Trust Co., Rockefeller Center, Inc., Equitable Life Assurance Society ( J.P. Morgan), and the Federal Reserve Bank of Boston.

Federal Reserve Directors: A Study of Corporate and Banking Influence Published 1976

This chart shows the link between the Federal Reserve Bank of New York, Brown Brothers Harriman,Sun Life Assurance Co. (N.M. Rothschild and Sons), and the Rockefeller Foundation.



Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.

Federal Reserve directors, a study of corporate and banking influence : staff report for the Committee on Banking, Currency and Housing, House of Representatives, 94th Congress, second session, August 1976.

Author:	United States. Congress. House. Committee on Banking, Currency, and Housing.
Publisher:	Washington : U.S. Govt. Print. Off., 1976.
Edition/Format:	Book : National government publication : English

 

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Banking: Fight over the Federal Reserve Friday, Feb. 14, 1964
http://www.time.com/time/magazine/article/0,9171,870767,00.html
In a Washington hearing last week, the chairman of the House Banking Committee stared at one of the nation's top managers of money. Grumbled Texas Representative Wright Patman: "You can absolutely veto everything the President does. You have the power to veto what the Congress does, and the fact is that you have done it. You are going too far."
The object of Patman's wrath was ascetic-looking Alfred Hayes, president of the New York Federal Reserve Bank and a ranking member of the U.S.'s powerful central banking system. For three decades, Wright Patman has fumed and fussed that the Federal Reserve System is too secretive, too independent, too insensitive to the hopes of small borrowers. A sharecropper's son, he often charges that it is a tool of Wall Street bankers.
Immediately after moving up to the chairmanship of the Banking Committee last year, Patman started preparing what has become one of the farthest reaching investigations in the Federal Reserve's 50-year history. Patman has a team of economists and consultants studying the system with a critical eye, intends to call twelve top non-Government economists to the stand by month's end, and is pressing for new legislation to curb the central bank.
Expansion or Stability? The controversy comes at a pivotal time. Calmer critics than Patman accuse the Federal Reserve of starting, or at least contributing to, the recessions of 1958 and 1960 by hiking interest rates and reducing the credit supply in its zeal to head off inflation. Now that some prices are rising anew, the central bankers again must ponder the question of whether to battle inflation at the risk of nipping the economy's three-year-old expansion. In recent months Chairman William McChesney Martin Jr.—who occupies what Patman somewhat extravagantly calls "the most powerful job in the civilized world"—successfully campaigned for a slight squeezing of credit and rise in interest rates. But his colleagues are sharply divided on the issue, and the Federal Reserve is being pelted with criticism from several sides.

Treasury Secretary Douglas Dillon, Presidential Economist Walter Heller and M.I.T. Economist Paul Samuelson lately have taken up the argument that Martin and his colleagues unwisely tightened money before the last recession. Attacking the system's penchant for secrecy, such Democrats as Wisconsin Senator William Proxmire complain that trying to find out why and how the Federal Reserve makes its decisions is like "trying to paste a custard pie on a wall." To make the Federal Reserve more dependent upon the President and upon Congress' easy-money advocates, Patman is sponsoring bills that would:
>End its authority to set itsown budget (currently: $180 million a year) and oblige it to come to Congress for an annual appropriation. — Empower the General Accounting Office to audit its books. — Expand its board of governors from seven to twelve, with the chairman to be the Secretary of the Treasury.

Eliminate its credit-regulating Open Market Committee and transfer the committee's powers to the expanded board. At least four members of this board would be new presidential appointees, and they presumably would be amenable to the wishes of Congress and the President.
What Will Johnson Do? Chairman Martin admits that the Reserve has made mistakes and could stand some reforms. But he champions its freedom to make unpopular decisions, and argues that its unique strength has been in keeping control of the money supply out of the hands of politicians. He fears that Congress would be tempted to tamper with policy if it had power over the system's purse, and that the Treasury Secretary would be subject to a conflict of interest if he also headed the Federal Reserve. Says Martin: "The question is whether the principal officer in charge of paying the Government's bills should be entrusted also with the power to create the money to pay them."

Many businessmen and bankers, who consider Martin the very symbol of sound money, will lobby against attempts to rob him of authority or to pack the board. But Patman senses a widespread feeling that the whole Federal Reserve needs an overhaul, and he is confident of bucking through at least a few of his proposals. Much will depend upon whether his fellow Texan in the White House decides to press hard for the changes. Lyndon Johnson shares Patman's Populist dislike of tight credit, and is not as close to Bill Martin as John Kennedy was. The tip-off as to where he stands in the fight may come when he selects a man to fill a current vacancy on the Federal Reserve Board. The President's decision is long overdue, and so far he has not told even Bill Martin what kind of a man he will pick.

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1957
http://fraser.stlouisfed.org/publications/frb/page/13021/2454/download/13021.pdf

2/25/1958
http://fraser.stlouisfed.org/docs/historical/martin/27_05_19580225.pdf
Board of Governors of the Federal Reserve System Washington D.C. 
Correspondence to the Board Z-4592
Enclosed is a preliminary copy (page proof) of Representative Patman*s statement during the hearings before the House Banking and Currency Committee

Mr. PATMAN. There is no decision holding that (he statute was valid.
The CTIAIHMAN. 1 want you to understand 1 am not making any arguments that the banks should go into the insurance business. That, has nothing to do with it.
Mr. BATMAN. YOU are supporting this bill; that insurance section is not in the law, and you are trying to put it in. You are trying to put the banks in the insurance business, Mr. Chairman. You cannot get around that.
The CHAIRMAN. T am only thinking about, what., considered to what, was in the law. It only applied to towns of less than 5,000 people.
Mr. BATMAN.* My time is limited and J do not care to go into that point any further. The Chairman will never be able to show a decision where the courts have passed upon the validity of the statute.

Now as to the Federal Reserve System:
PAY OFF THE SO-CALLED STOCK* OF THE FEDERAL RESERVE BANKS
Now some of the bankers who have appeared before our committee, here revealed that they have been under an impression that the Federal Reserve banks are owned by the commercial banks, the member banks.
Yesterday, I made a speech on the floor, in which I referred to this erroneous impression, and in which I showed conclusively that the Federal Reserve banks are owned by the Government of the United States. Tliere is no valid, legal stock held by commercial banks in the Federal Reserve banks. That so-called stock that the member banks own is not stock at all; "stock" is a misnomer. It has no stock value; it cannot be voted as stock; it cannot be sold; it cannot be hypothecated; it is just held as an investment or a loan upon winch they draw G percent. The banks do not own the Federal Reserve System.
Tins 6 percent interest which amounts to about $20 million a year should certainly be saved by the Government, by canceling that stock and paying it off. It could easily be paid out of the Federal Reserve surplus funds, now, without any inconvenience.

MAKE THE FEDERAL RESERVE BOARD" THE OPEN MARKET COMMITTEE
I am going to offer an amendment, Mr. Chairman, to increase the Federal Reserve Board to 12 members, and make it the Open Market Committee.
I have had a bill of this kind pending for a number of years. We have never had.a hearing on the bill, but I am going to offer it as an amendment to these bills.
Wejknow that operations of the Open Market Committee are in the New York bank alone. The Open Market Committee delegates to one man, who is in charge of the open market account, responsibility for carrying on trading with private brokers, amounting-to tens of billions of dollars worth of securities. There are dozens of people who know about the operations of this important comn ittee. With knowledge of what their account is going to do, a person can make millions overnight. We ought to look into that and find out what is going on. pg.7

I asked the gentleman who was president of the New York Reserve Bank just before Mr. Hayes, Mr. Sproul if it had any rules against bank officials or employees playing the market. He said no, except they couldn't buy on margin.
Now, imagine that. Here is a bank that is run bv private bankers in New York, handling Government bonds and other securities aggregating tens of billions of dollars a year, and we have never inquired into the procedures that they use. We have never attempted to determine whether or not it was being honestly conducted.
There are 17 dealers that trade with the open market account. I wouldn't say that they are handpicked but there are very few, usually about 12. In 1956, only 5 of these accounted for over 50 pei'cent of all the transactions of the open market account.
To show you something about the size of the operations, in 1956 the open market account purchased $11.9 billion worth of Government securities and sold $9.3 billion worth. Total transactions, $21-.2 billion during that 1 year alone. So it is not a small matter; this is not small potatoes. Twenty-two billion dollars worth of securities bought and sold in 1 year. I wouldn^t consider that an extraordinary year; they do about that much almost every year. And yet we have never looked into their operations; they have never been audited by the General Accounting Office; and we know almost nothing about them.
But I can tell you this much,because I have made inquiries; this so-called Open Market Committee operates the biggest market in the wrorld; and while it is called an "open market*" it is the most closed market that was ever invented. The people who operate this account do the buying-and-selling of Government securities, using Government money, and decide for themselves what price they will takg or pay, in each trade; they decide which one of their little select group ot dealers they will sell to pi* buy from; and there is never any public announcement of the prices this account pays or receives; there is never any public record of how much securities they sell to or buy from any one of their select group of dealers; and the people who carry on this under-the-counter trading in tens of billions of dollars each year of Government-owned securities are not even Government employees.
More than that, Chairman Martin refuses to tell the public, or even to tell this committee in confidence, anything about these dealers who are privileged to carry on this fabulous and hidden trading with the open market account. Chairman Martin has told us their names, and that is about all. He has refused to tell us what their net worth is and what percentage of the Government securities they hold at any one time, and he has refused any information about how much trading in Government securities these dealers do with their custdomers-.
I will insert a table showing the monthly volume of purchases and sales in 1954, which was a $11.6 billion year. This table shows that the open market account outright sales of securities amounts to $3.3 billion. We can assume that most of these outright sales were made to dealers, as contrasted to foreign control banks. At the same time the open market account made loans, that is, repurchase agreements, with the dealers amounting to $2.4 billion,
pg.8

You see, the Open Market Committee conceives of this little group of dealers as being "the makers of primary markets" for Government securities. In plain words, the open market account conceives of itself as adjusting from day to day the amount of money in the private banking system of the country. When there is too much money, according to the account's opinion, they buy some money in from these dealers and pay the dealers a profit on it; and ,when they think there is too little money, they sell some to these dealers and, of course, the dealers get their wholesaler's margin on this as they resell the securities to the banks, the corporations, or anyone else who may want to buy them.

Hundreds of member banks all over the country buY and sell Government securities, but they must go to the dealers for these. For mysterious reasons which have never been explained, they never trade directly with the open market account.

The open market account does trade with foreign central banks, they buy and sell billions of dollars worth of United States Government securities, all over Europe, all over South America, and everywhere else that there is a foreign bank that wants to trade with the open market account.
In contrast, however, the Federal Reserve banks themselves cannot trade with the open market account. These banks act as agents for the member banks and others ip buying and selling billions of dollars worth of Government securities but the Federal Reserve banks must also go to the dealers to trade, or go to some subsidiary dealers who in turn trade with the top dealers that the open market account trades with. Considering the vast amount of trading that is going on at almost all times, it is inevitable that there are many times when the Federal Reserve banks are in the market buying securities from private dealers at the very moment the open market account is selling those same securities to private dealers. And of course the sale by the open market account is on behalf of the Federal Reserve banks.
Under the 1913 act, each Federal Reserve Bank had its own opem market committee, but the 1935 act completely clumped the Federal Reserve4 System. There is now only one Open Market Committee, and the Federal Reserve Bank of New York is the sole agent of that committee4. This bank handles the entire account, and although it is supposed to operate according to policy guides laid down by the Open Market Committee, if you will read these policy guides -which are published in the Annual Report of the Board you will find that they are vague statements which leave the actual decisions up to the New York bank.
If yon turn to the Annual Report of the Board of Governors, for instance say 1956 you will see that the Dallas bank
1 happen to be in the Dallas district -that the Dallas bank earned from discounts and advances only $850,142. That is all that whole bank earned. Of course, it has earnings in its statement of $23 million. Where did the other come from? It comes directly from New York. None of these other 11 banks touches those Government securities in the open market. They are all right there in the city of New York in the Federal Reserve Bank Building. The coupons a;re clipped there, the interest is collected there, the taxpayers pay it into the treasury and the treasury sends it up to the Federal Reserve Bank of New York, to pay interest on over $23 billion of government bonds that have been bought by that open market account and which they now hold. The New York bank then sends to Dallas, Texas, $22 million, as the Dallas bank's part of the earnings. Did they earn that? They didn't turn their hands to get it.
The open market account bought these bonds on the credit of the Nation, using Federal Reserve notes which are also Government obligations; then the New York bank sends the money to Dallas, to San Francisco, Kansas City, Minneapolis, Chicago, Atlanta, Richmond, Cleveland, Philadelphia, New York, and Boston. Each one their proportionate share, but the, banks don't touch these bonds. They render no service for this income, and the bonds were purchased on Government credit.
The Dallas bank, although it only earned $830,000, it spent more than $6 million--$6,080,000.
Now this operation in 1935, on the Federal Reserve banking system, changed it completely, from an autonomous regional system to a central banking system.
We now have a central bank in the United States, and under this central banking system, there is no important power left in the regional banks. There is no important power left; It is all done by the Federal Reserve Board here in Washington or by the Open Market Committee composed of 12 members, all of whom are selected by representatives of private banks.
When the Open Market Committee meets, there are 12 members of private banks there at the meeting, presidents of the Reserve banks. Only five of these can vote but the others are there to participate in the meetings and to help evaluate tin4 problems and to help come to decisions. Those 7 public, members the Board members--are surrounded not only by these 12 representatives of the private banks but I hey have 12 other people with whom they must deal who directly represent the banks, too. These-are known as the Federal Advisory Council. So we have our 7 public members surrounded by 24 bankers to help them perform their public services and public, duty.
I say that alone should arouse our thinking. We should look into this carefully and make sure that it is being done in the public interest, and in the meantime we know that we should take the bankers off of the Open 'Market Committee. pg 10

agreement. I said awhile ago, I don't see anything in the law authorizing this.
Under this practice that has been built up, because nobody has been looking over their shoulder or auditing their books, these Federal Reserve people have been going foot-loose and fancy-free. That practice of lending the dealers money to carry Government securities is one that certainly should receive some attention.
THE DISCOUNT RATE SHOULD BE FIXED BY THE BOARD NOT PRIVATE, BANKERS
I am also going to offer an amendment to require that the Board of Governors and the Board alone fix the discount rates. As we know, when a change in the Federal Reserve discount rate is announced, securities markets shoot up or down, just in a matter of minutes. Values of stocks, Government bonds, and all other securities change by billions of dollars.
Now, Mr. Chairman, we have in our own Federal Reserve System the same procedure for changing the discount rate that they have in the Bank of England. The boards of directors of the Federal Reserve banks recommend a change and these boards are made up of private bankers and men who are also on the boards of the big corporations. This procedure is open to exactly the same problem that has recently come up in connection with the Bank of England. There they have some of the directors of the Bank of England, their central bank, who are also bankers; and they have some who are on the boards of industrial corporations.
They are very quick to point out that not one of the six largest banks in England is allowed to have representation on the board of the Bank of England. None of the big banks is allowed representation on that board. But some of the smaller banks are.
Recently it was shown that where the Bank of England was going to raise the discount rate from 5 to 7 percent, one of the bank's directors who had recommended the change advised his corporation to unload its holdings of "guilt edge" bonds "which the corporation did to the extent of $2.8 million worth" the day before the change in discount rate was publicly announced. Later, when this matter came to light during an investigation, the director in question, a Mr. Keswick, testified quite frankly that, he felt he owed equal loyalties to the bank and to his corporation. A Renter's dispatch of December 6 reported: "William J. Keswick said that as a director of the bank, he could not betray secrets, and yet he was bound to protect the business interests he legally represented." pg 11

THE FEDERAL RESERVE SYSTEM SHOULD CARRY ITS OWN INSURANCE
Now, the Federal Reserve banks are buying insurance of all kinds. They are spending over $1 million a year; $1,821,429 during the year 1950 for insurance:
Why should the Federal Reserve banks buy insurance?
Whom do they buy it from? Who gets the commissions? Are they connected with the banks? We don't know. This insurance is unneeded, it is, unnecessary. These Reserve banks are part of the Government just as much so as the Capitol. And with all the money and resources of the Federal Reserve System, if it cannot carry the risk of its own insurance, then certainly there is no private insurance company that can carry this risk.
Suppose someone suggested that the Congress should take insurance on the Capitol storm insurance, hail insurance, rain insurance, cyclone insurance for which-the Government would be charged a fee. We would certainly not.like that.
Well, this is a comparable situation. The Federal Reserve banks are doing just that. Why are they allowed to do it? It is because they have never been looked into. Their books are never audited. They are never audited and never have any supervision. That matter should certainly receive the attention of this committee.

THE FEDERAL RESERVE SYSTEM MUST BE SUBJECT TO AUDIT

Another amendment I will offer to the Federal Reserve Act portion of these bills will require that the Federal Reserve Board, the Federal Reserve banks, and the Open Market Committee be audited by the General Accounting Office.

Since its organization in 1913, there has never been an outside audit of the System or any part of it.

Now this is shocking, Mr. Chairman. It is bound to be shocking to all American citizens that we would let the Federal Reserve System handle hundreds of billions of dollars of the Government's money and two-thirds of every board of directors of each Federal Reserve bank is composed of private bankers or people selected by the private bankers and never have any audit.

The only audit Federal Reserve banks have ever had is an internal audit, where they select the auditors, give the auditors their instructions, and report back to themselves. It is bordering on a disgrace for Congress to permit that situation to continue. It just doesn't make souse, either common, book or horse. There is just no sense to it.
I will come back to this point later, and give the committee some illustrations taken from their own internal audit reports which will, I think, give convincing proof of the need for having the. Reserve banks audited. pg.13

The Comptroller of the Federal Reserve System Are Not Audited
Now, the General Accounting Office has never audited the books of a Federal Reserve bank, Federal Reserve Board, or the Comptroller of the Currency, Mr. Chairman.
The office of the Comptroller of the Currency has handled over $154 billion worth of Federal Reserve notes; it has received this much from the Bureau of Printing and Engraving; it has issued a major percentage of this to the Federal Reserve banks; it has received back a large percentage of this for destruction; and it holds several billion dollars worth in custody, yet none of h.ese operations is subject to any audit; they are not even audited by the Treasury's own internal auditors.
The Federal reserve system, as 1 have pointed out, lias never had a Government audit. It has never had any audit by independent auditors from outside Ihe system itself. There are internal audits, made by personnel of the system, and even these audits�taking them for what they are, internal audits�show on their face to be subject to serious inadequacies and limitations. The audit teams are supposed to be made up so that the employees of one bank audit another bank, but even this principle is rarely followed 100 percent. In practice the employees of a particular bank are on the team to help audit their . own banks.

These internal audits of the Federal Reserve banks have many limitations with respect to verification of currency, checks, <i'old, and securities. Frequently the banks' audits do not conform to the recommended procedures of the Conference of Auditors and the audit committees of the boards of directors of the banks themselves. The audit committees override the recommended procedures of the Conference of Auditors. Sometimes audit committees of the board of directors fail to meet even once a year. Examples

pg 49
Now, if there ever was a disgrace, it is Congress' permitting people to have complete control of United States currency who do not consider themselves obligated to the Government, at least not even a Government employee. Some of these employees of Federal Reserve banks are, but they are not willing to admit it, and they do not concede it.They claim they are not.
They have charge of destroying the worn and mutilated currency. And, of all the irregularities and seemingly dishonest dealings in connection with it, you will find plenty of eye openers in these reports that even their own auditors made about the irregularities in handling the tremendous amount of money that is destroyed 'every year, and the loose fashion in which it is handled.
Up at Pittsburgh, a cyclone or a heavy wind hit the city while currency was being destroyed in the municipal incinerator and scattered money all over Pittsburgh, Pa. The only reason we found out about it through the newspapers and they had to redeem a lot of that currency because it wasn't bunted and under certain conditions it is redeemable.
There are other cases just as bad as that throughout the United States.
In July of 1953, the Federal Reserve banks took over the destruction of unfit United States currency which had previously boon handled by the Treasury Department. The principal reason given for the changeover was to save the expense of transporting the currency back to Washington for destruction�the only possible savings since the Treasury reimburses the banks for the actual costs of destruction. However, one expense not considered was the costs to the Federal Reserve banks and branches for the installation of incinerators and other equipment' for destruction. These costs the Federal Reserve banks have charged off to current expenses, thereby reducing their revenues and amount of money paid into the Treasury by the Federal Reserve. And the savings to the Government, if there have been any, have been at the sacrifice of less security over United States currency.
The banks have destroyed around $8 billion of currency since 1953 and this without Government audit.
The banks have employed inadequate controls over the destruction of United States currency. Although their own auditors recommended methods of improving procedures, the same weaknesses continued throughout the System year after year.
Banks permit canceled currency to be destroyed by the same em ployees who act as verifiers, contrary to Treasury regulations.
They do not verify bundles not included in percentage counts nor do they make any determination that the standard of fitness of the currency conforms to Treasury regulations.


pg 70 I can state, however, that according, to one report of the T)pen Market Committee that I have seen, the open-market account ho ugh t from and sold to lo of these dealers who are not hanks�that is, nonbank dealers
Who are these dealers? We have their names and that is about all. I will list these names and then point out what 1 have tried to do to learn something for myself about who these dealers are.

Dealer:
Discount Corp
Chemical Corn Exchange Bank
Salomon Bros. & Hutzler
C. J. Devine & Co
Aubrev G. Lanston & Co., Inc
D. W/Rich & Co :
C. F. Childs & Co., Inc
Guaranty Trust Co
Rankers Trust Co
First Boston Corp
Continental Illinois National Bank & Trust Co., Chicago
Hriggs, Schaedle & Co., Inc r
First National Bank, Chicago
Win. E. Pollock & Co., Inc
N. Y. Hanseatic Corp
J. G. White
Chas. E. Quincey & Co

Now, I think the committee should look into the Open Market Committee and try to find out a little something about who these, dealers are that serve as the funnels through which our great Federal Reserve System passes out additions to the money supply of the country, and pulls in substructions from the money supply of the country. So, I have had the first 10 names looked up - that is the names of the 10 biggest dealers- to try to find out who the people are that are partners in these dealer firms, and who are the officers and directors in these dealer firms where the firm is incorporated.

I have asked for information on the other connections of these people wherever such information is available from published directories Well a huge percentage of these people do not publish information about themselves. But enough of them do give information to show us that they represent all of the big money interest of the country, the big commercial banks, the big investment banks, the big insurance companies, the trust funds, and the big industrial and utility corporations.
The following list shows the names of the top officials in each of the 10 dealer firms doing the largest volume of business with the open-market account in 1956. Then, where information is published about the other connections of the individuals, those, connections are shown too.

Guaranty Trust Co., New York
Cleveland, J. Luther, chairman and director
Guaranty Safe Deposit .Co., director
Atchison. Topeka <fe Santa, Fe Railway, director
Anaconda Co., director
Discount Corporation of New York, director
Sunray Mid-Continent Oil Co., director
Kleitz, William L., president and director
Wilson & Co., director
IBM World Trade Corp., director
Liverpool & London & Globe Insurance Co., Ltd., member local board in NewYork
Royal Insurance Co., Ltd., member local board New York
British & Foreign Marines Insurance Co., Ltd., member local board in New York
Virginia Fire & Marine Insurance Co., director
Thames <v. Mersev Marine Insurance Co., Ltd., member local board in T New York
Newark Insurance Co., director
Queen Insurance Company of America, director
American & Foreign Insurance Co., director
Globe lndemnity Co.. director
Royal Indemnity Co.. director
Star Insurance Company of America, director
One Hundred Fifty William Street Corp., director
W. T. Gran Co., director
American Smelting & Refining Co., director
Sharp, Dale E., executive vice president
Standard Accident Insurance^ Co., director
Pilot Insurance Co. (Toronto), director
Planet. Insurance Co., director
Yorkshire Insurance Company of New York, chairman
Seaboard Fire & Marine Insurance Co., director
Jerman, Thnomas Palmer, executvie vice president
Union Pacific Railroad, director
Broome, Robert E., vice president
Iowas Public Service Co. director
Town Public Service Co., director
McCabe, Herbert P., vice president
New Jersey Natural Gas Co.. director
Palmer, Louis Babcoek, vice president
Peerless Insurance Co., director Verbeck, Cuido F., Jr., vice president
Morris County Savings Bank, director Wallace. John Brougham. Jr., vice president
Union Terminal'Cold Storage Co., director
Manhattan Refrigerat ing Co.. director
Interwoven Stocking Co.. director ,
White, William RafTord, vice presidc.nl
Bowery Savings Bank, trustee, member executive committee Strelow, William Richard, \ ire president
Pan American Society of United States, director.
National Council American Importers, Inc., director
National Foreign Trade Council, director


pg. 92 Federal Reserve System Personnel who are directors and officers of major Financial Companies


Philadelphia
http://fraser.stlouisfed.org/docs/historical/brookings/17502_philadelphia.pdf
1957 http://fraser.stlouisfed.org/publications/frb/page/13021/2454/download/13021.pdf

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Secrets of
The Power Elite Since 1833

The Russell Trust Association was first established among the class graduating from Yale in 1833. Its founder was William Huntington Russell of Middletown, Connecticut. The Russell family was the master of incalculable wealth derived from the largest U.S. criminal organization of the nineteenth century: Russell and Company, the great opium syndicate.

1st of all you need to know that George Walbridge Perkins, Sr. is a direct descendant of the opium drug smuggler Perkins family. The founding families of Skull & Bones included the Russell and Perkins families, Over several generations, however, all these families heavily intemarried and became, in effect, one extended power grouping. They considered themselves to be a special among the merchant, banking, and Puritan Pilgrim elite of Yale. They took the Puritan beliefs of the early New England settlers, that they were "elected by God," and pre-ordained to rule North America.

J. P. Morgan incorporates United States Steel as the first billion-dollar company. He partners with George Walbridge Perkins, Sr. In 1912 he helped organize Theodore Roosevelt's new Progressive party, becoming its executive secretary. At the convention an anti-trust plank was suddenly dropped, shocking reformers like Gifford Pinchot who saw Roosevelt as a true trust-buster. They blamed Perkins (who was still on the board of U.S. Steel and remained on it until his death.)

McKinley is assassinated and Theodore Roosevelt becomes president.

1907

USA

The "Panic of 1907" begins with a run on Knickerbocker Trust Company stock October 22nd sets events in motion that will lead to a depression in the United States. The recession would last until 1908.

"All this trouble could be averted if we appointed a committee of six or seven men like J. P. Morgan to handle the affairs of our country." — Woodrow Wilson

(Sir William Wiseman, tenth baronet of Ulster, partner in Manhattan's Kuhn, Loeb & Co., was the second most powerful Briton in the U.S., unofficial head of His Majesty's World War I secret service in the U.S. and Woodrow Wilson's "confidential Englishman." Sir William Wiseman, "the chief British spy master in America during World War I," was a Kuhn, Loeb partner and advisor to John Schiff, grandson of Jacob Schiff and the chief partner. (The Warburgs, by Ron Chernow. Random House, 1993, pp 612-613.) He was a correspondent of Strauss between 1941 and 1962.

"Those not favorable to the money trust could be squeezed out of business and the people frightened into demanding changes in the banking and currency laws which the Money Trust would frame." — Rep. Charles A. Lindbergh (R-MN)

1908

USA

The Glass-Owen Act was passed in response to the Panic of 1907. Its purpose was to provide for the issue of emergency currency during widespread financial crisis. The National Monetary Commission was also established under this act to develop a more durable solution to the nation's problematic financial and banking practices.

The Financial Purpose of the Senate explained in 1906 by David Graham Phillips
The Treason of the Senate: Aldrich, The Head of It All by David Graham Phillips Cosmopolitan March 1906

 

 

1909

The Russell Building was occupied in 1909 by the Senate of the 61st Congress.
Introduction to The Russell Family and the Russell Trust Association.
Skull and Bones, a secret society founded in 1832 at Yale University in New Haven, Connecticut.
Founding members (1832-1833 academic year) Opium Drug Smuggling Pirate William Huntington Russell (1833), Connecticut State Legislator, Major General descendent.