FINAL WARNING: Financial Background
banking system. During this panic, Warburg wrote an essay called “A
Plan for a Modified Central Bank” which called for a Central Bank, in
which 50% would be owned by the government, and 50% by the
nation’s banks. In a speech at Columbia University, he quoted
Abraham Lincoln, who said in an 1860 Presidential campaign speech:
“I believe in a United States Bank.”In 1908, Schiff laid out the final plans to seize the American monetary
system. Colonel (an honorary title) Edward Mandell House (1858-1938),
the son of British financier Thomas W. House, a Rothschild agent who
made his fortune by supplying the south with supplies from France
and England during the Civil War, was Schiff’s chief representative and
courier; and Bernard Baruch (1870-1965), whose stock market
speculating made him a multi-millionaire by the early 1900’s, and
whose foreign and domestic policy expertise led Presidents from
Wilson to Kennedy to seek his advice; were the two who were relied on
heavily by Schiff to carry out his plans. Herbert Lehman was also a
close aide to Schiff.President Woodrow Wilson wrote about House (published in The
Intimate Papers of Col. House): “Mr. House is my second personality.
He is my independent self. His thoughts and mine are one. If I were in
his place, I would do just as he suggested ... If anyone thinks he is
reflecting my opinion, by whatever action he takes, they are welcome
to the conclusion.” George Sylvester Viereck wrote in The Strangest
Friendship in History: Woodrow Wilson and Colonel House: “When the
Federal Reserve legislation at last assumed definite shape, House was
the intermediary between the White House and the financiers.” Schiff,
who was known as the “unseen guardian angel” of the Federal
Reserve Act, said that the U.S. Constitution was the product of 18th
century minds, was outdated, and should be “scrapped and rewritten.”In 1908, Sen. Nelson W. Aldrich (father-in-law of John D. Rockefeller,
Jr. and grandfather of Nelson and David Rockefeller) proposed a bill, in
which banks, in an emergency situation, would issue currency backed
by federal, state, and local government bonds, and railroad bonds,
which would be equal to 75% of the cash value of the bonds. It was
harshly criticized because it didn’t provide a monetary system that
would respond to the seasonal demand, and fluctuate with the volume
of trade. Aldrich was the most powerful man in Congress, and the