- The Hitler Connection
J. Henry Schroder Banking Company is listed as Number 2 in
capitalization in Capital City 62 on the list of
merchant bankers who make up the exclusive Accepting Houses
Committee in London. Although it is almost unknown in the United
States, it has played a large part in our history. Like the others
on this list, it had first to be approved by the Bank of England.
And, like the Warburg family, the von Schroders began their banking
operations in Hamburg, Germany. At the turn of the century, in 1900, Baron Bruno von Schroder established the London branch of the firm.
He was soon joined by Frank Cyril Tiarks, in 1902. Tiarks married
Emma Franziska of Hamburg, and was a director of the Bank of England
from 1912 to 1945.
During World War I, J. Henry Schroder Banking Company played an
important role behind the scenes. No historian has a reasonable
explanation of how World War I started. Archduke Ferdinand was
assassinated at Sarajevo by Gavril Princeps, Austria demanded an
apology from Serbia, and Serbia sent the note of apology. Despite
this, Austria declared war, and soon the other nations of Europe
joined the fray. Once the war had gotten started, it was found that
it wasn’t easy to keep it going. The principal problem was that
Germany was desperately short of food and coal, and without Germany,
the war could not go on.
John Hamill in
The Strange Career of Mr.
Hoover 63 explains how the problem was solved.* He quotes from
Nordeutsche Allgemeine Zeitung, March 4, 1915,
demands that publicity should be given to the preeminent part taken
by the German authorities in Belgium in the solution of this
problem. The initiative came from them and it was only due to their
continuous relations with the American Relief Committee that the
provisioning question was solved."
Hamill points out "That is what
the Belgian Relief Committee was organized for--to keep Germany in
62 McRae and Cairncross, Capital City, Eyre Methuen, London, 1963
63 John Hamill, The Strange Career of Mr. Hoover, William Faro, New
* Copies of Hamill’s book were systematically located and destroyed
by government agents, because it was published on the eve of
President Hoover’s re-election campaign.
The Belgian Relief Commission was organized by
director of a large Belgian bank, Societe Generale, and a London
promoter, an American named Herbert Hoover, who had been associated
with Francqui in a number of scandals which had become celebrated
court cases, notably the Kaiping Coal Company scandal in China, said
to have set off the Boxer Rebellion, which had as its goal the
expulsion of all foreign businessmen from China. Hoover had been
barred from dealing on the London Stock Exchange because of one
judgment against him, and his associate, Stanley Rowe, had been
sent to prison for ten years. With this background, Hoover was
called an ideal choice for a career in humanitarian work.
Although his name is unknown in the United States, Emile Francqui
was the guiding spirit behind Herbert Hoover’s rise to fortune.
Hamill (on page 156) identifies Francqui as the director of many
atrocities committed against natives in the Congo. "For every
cartridge they spent, they had to bring in a man’s hand". Francqui’s
frightful record may have been the source for the charge later
leveled against German soldiers in Belgium, that they chopped off
the hands of women and children, a claim which proved to be
Hamill also says that Francqui,
"tricked the Americans
out of the Hankow-Canton railroad concession in China in 1901, and
at the same time had ‘stood by’ in case Hoover needed any further
help in the ‘taking’ of the Kaiping coal mines. This is the
humanitarian who had sole charge of the distribution of the Belgian
‘relief’ during the World War, for which Hoover did the buying and
shipping. Francqui was a director with Hoover, in the Chinese
Engineering and Mining Company (the Kaiping mines), through which
Hoover transported 200,000 Chinese slave workers to the Congo to
work Francqui’s copper mines."
Hamill says on page 311 that,
"Francqui opened the offices of the
Belgian Relief in his bank, Societe Generale, as a one-man show,
with a letter of permission from the German Governor General von der
Goltz dated October 16, 1914.
The New York Herald Tribune of February 18, 1930, quoted by
Congressman Louis McFadden in the House on February 26, 1930, said,
"One of Belgium’s two directors on the Bank for International
Settlements will be Emile Francqui of the Societe Generale, a member
of both the Young and Dawes Plan Committees. The board of directors
of the international bank will have no more colorful character than
Emile Francqui, former Minister of Finance, veteran of the Congo and
China... he is rated as the richest man in Belgium, and among the
twelve richest men in Europe."
Despite his prominence, The New York Times Index mentions
only a few times during two decades before his death. On October 3,
1931, The New York Times quoted Le Peuple of Brussels that Francqui
would visit the United States.
"As a friend of President Hoover,
Monsieur Francqui will not fail to pay a visit to the President."
On October 30, 1931, The New York Times reported this visit with the
"Hoover-Francqui Talk was Unofficial".
"It was stated that
Mr. Francqui spent Tuesday night as a personal guest of the
President, and that they talked of world financial problems in
general, strictly unofficial. Mr. Francqui was an associate of
President Hoover during the latters ministrations in Belgium during
the war. Their visit had no official significance. Mr. Francqui is a
private citizen and not engaged in any official mission."
No reference is made to the Hoover-Francqui business associations
which were the subject of huge lawsuits in London. The Francqui
visit probably involved Hoover’s Moratorium on German War Debts,
which stunned the financial world.
On December 15, 1931, Chairman
McFadden informed the House of a dispatch in the Public Ledger of
Philadelphia, October 24, 1931,
"GERMAN REVEALS HOOVER’S SECRET.
American President was in intimate negotiations with the German
government regarding a year’s debt holiday as early as December,
McFadden continued, "Behind the Hoover announcement there
were many months of hurried and furtive preparations both in Germany
and in Wall Street offices of German bankers. Germany, like a
sponge, had to be saturated with American money. Mr. Hoover himself
had to be elected, because this scheme began before he became
President. If the German international bankers of Wall Street--that
is Kuhn Loeb Company, J. & W. Seligman, Paul Warburg, J. Henry Schroder
-- and their satellites had not had this job waiting to be
done, Herbert Hoover would never have been elected President of the
The election of Mr. Hoover to the Presidency was
through the influence of the Warburg Brothers, directors of the
great bank of Kuhn Loeb Company, who carried the cost of his
election. In exchange for this collaboration Mr. Hoover promised to
impose the moratorium of German debts. Hoover sought to exempt Kreuger’s loan to Germany of $125 million from the operation of the
Hoover Moratorium. The nature of Kreuger’s swindle was known here in
January when he visited his friend, Mr. Hoover, in the White House."
Not only did Hoover entertain Francqui in the White House, but also
Ivar Kreuger, the most famous swindler of the twentieth century.
When Francqui died on November 13, 1935, The New York Times
memorialized him as,
"the copper king of the Congo...
Mr. Francqui, last year having gained dictatorial powers over the belga,
maintained it on the gold standard during a crisis. In 1891 he led
an expedition into the Congo and gained it for King Leopold. A man
of great wealth, rated among the twelve richest men in Europe, he
secured enormous copper deposits.
He was Minister of State in 1926
and Minister of Finance in 1934. It was his pride that he never
accepted a centime of remuneration for his services to the
government. While consul general at Shanghai, he secured valuable
concessions, notably the Kaiping coal mines and the
railway concession for the Tientsin Railroad. He was governor of the
Societe Generale de Belgique, Lloyd Royal Belge, and regent of
La Banque Nationale de Belgique."
The Times does not mention Francqui’s business partnerships with Hoover. Like Francqui, Hoover also refused remuneration for
"government service", and as Secretary of Commerce and as President
of the United States, he turned his salary back to the government.
On December 13, 1932, Chairman McFadden introduced a resolution of
impeachment against President Hoover for high crimes and
misdemeanors, which covers many pages, including violation of
contracts, unlawful dissipation of the financial resources of the
United States, and his appointment of Eugene Meyer to the Federal
Reserve Board. The resolution was tabled and never acted upon by the
In criticizing Hoover’s Moratorium of German War Debts, McFadden had
referred to Hoover’s "German" backers. Although all of the
principals of "the London Connection" did originate in Germany, most
of them in Frankfurt, at the time they sponsored Hoover’s candidacy
for the Presidency of the United States, they were operating from
London, as Hoover himself had done for most of his career.
Also, the Hoover Moratorium was not intended to "help" Germany, as
Hoover had never been "pro-German". The Moratorium on Germany’s war
debts was necessary so that Germany would have funds for rearming.
In 1931, the truly forward-looking diplomats were anticipating the
Second World War, and there could be no war without an "aggressor".
Hoover had also carried out a number of mining promotions in various
parts of the world as a secret agent for the
Rothschilds, and had
been rewarded with a directorship in one of the principal Rothschild
enterprises, the Rio Tinto Mines in Spain and
Bolivia. Francqui and
Hoover threw themselves into the seemingly impossible task of
provisioning Germany during the First World War.
Their success was
noted in Nordeutsche Allgemeine Zeitung, March 13, 1915, which noted
that large quantities of food were now arriving from Belgium by
rail. Schmoller’s Yearbook for Legislation, Administration and
Political Economy for 1916, shows that one billion pounds of meat,
one and a half billion pounds of potatoes, one and a half billion
pounds of bread, and one hundred twenty-one millions pounds of
butter had been shipped from Belgium to Germany in that year.
patriotic British woman who had operated a small hospital in Belgium
for several years, Edith Cavell, wrote to the Nursing Mirror in
London, April 15, 1915, complaining that the "Belgian Relief"
supplies were being shipped to Germany to feed the German army. The
Germans considered Miss Cavell to be of no importance, and paid no
attention to her, but the British Intelligence Service in London was
appalled by Miss Cavell’s discovery, and demanded that the Germans
arrest her as a spy.
Sir William Wiseman, head of British Intelligence, and partner of
Kuhn Loeb Company, feared that the continuance of the war was at
stake, and secretly notified the Germans that Miss Cavell must be
executed. The Germans reluctantly arrested her and charged her with
aiding prisoners of war to escape. The usual penalty for this
offense was three months imprisonment, but the Germans bowed to Sir
William Wiseman’s demands, and shot Edith Cavell, thus creating one
of the principal martyrs of the First World War.
With Edith Cavell out of the way, the "Belgian Relief" operation
continued, although in 1916, German emissaries again approached
London officials with the information that they did not believe
Germany could continue military operations, not only because of food
shortages, but because of financial problems. More "emergency
relief" was sent, and Germany continued in the war until November,
Two of Hoover’s principal assistants were a former lumber
shipping clerk from the West Coast, Prentiss Gray, and Julius H.
Barnes, a grain salesman from Duluth. Both men became partners in J.
Henry Schroder Banking Corporation in New York after the war, and
amassed large fortunes, principally in grain and sugar.
With the entry of the United States into the war, Barnes and
were given important posts in the newly created U.S. Food
Administration, which also was placed under Herbert Hoover’s
direction. Barnes became President of the Grain Corporation of the
U.S. Food Administration from 1917 to 1918, and Gray was chief of
Marine Transportation. Another J. Henry Schroder partner, G. A. Zabriskie, was named head of the U.S. Sugar Equalization Board.
the London Connection controlled all food in the United States
through its grain and sugar "Czars" during the First World War.
Despite many complaints of corruption and scandal in the U.S. Food
Administration, no one was ever indicted. After the war, the
partners of J. Henry Schroder Company found that they now owned most
of Cuba’s sugar industry.
One partner, M.E. Rionda, was president of
Cuba Cane Corporation, and director of Manati Sugar Company,
American British and Continental Corporation, and other firms. Baron
Bruno von Schroder, senior partner of the firm, was a director of
North British and Mercantile Insurance Company. His father, Baron
Rudolph von Schroder of Hamburg, was a director of Sao Paulo Coffee
Ltd., one of the largest Brazilian coffee companies, with F.C.
Tiarks, also of the Schroder firm.*
* The New York Times noted on October 11, 1923: "Frank C. Tiarks,
Governor of the Bank of England, will spend two weeks here to set up
the opening of the banking house branch of J. Henry Schroder of
After the war, Zabriskie, who had been sugar Czar of the United
States by presiding over the U.S. Sugar Equalization Board, became
the president of several of the largest baking corporations in the
United States: Empire Biscuit, Southern Baking Corporation, Columbia
Baking, and other firms.
As his principal assistant in the U.S. Food Administration, Hoover
chose Lewis Lichtenstein Strauss, who was soon to become a partner
in Kuhn Loeb Company, marrying the daughter of Jerome Hanauer of
Kuhn Loeb. Throughout his distinguished humanitarian service with
the Belgian Relief Commission, the U.S. Food Administration, and,
after the war, the American Relief Administration, Hoover’s closest
associate was one Edgar Rickard, born in Pontgibaud, France.
Who’s Who, he states that he was,
"World War administrative assistant
to Herbert Hoover in all war and post-war organizations including
the Commission For Relief in Belgium. He also served on the U.S.
Food Administration from 1914-1924."
He remained one of Hoover’s
closest friends, and usually the Rickards and Hoovers took their
vacations together. After Hoover became Secretary of Commerce under
Coolidge, Hamill tells us that Hoover awarded his friend the Hazeltine Radio patents, which paid him one million dollars a year
In 1928, "the London Connection" decided to run
Herbert Hoover for
president of the United States. There was only one problem; although
Herbert Hoover had been born in the United States, and was thus
eligible for the office of the presidency, according to the
Constitution, he had never had a business address or a home address
in the United States, as he had gone abroad just after completing
college at Stanford. The result was that during his campaign for the
presidency, Herbert Hoover listed as his American address Suite
2000, 42 Broadway, New York, which was the office of Edgar Rickard.
Suite 2000 was also shared by the grain tycoon and partner of J.
Henry Schroder Banking Corporation, Julius H. Barnes.
After Herbert Hoover was elected president of the United States, he
insisted on appointing one of the old London crowd, Eugene Meyer, as
Governor of the Federal Reserve Board. Meyer’s father had been one
of the partners of Lazard Freres of Paris, and Lazard Brothers of
London. Meyer, with Baruch, had been one of the most powerful men in
the United States during World War I, a member of the famous
Triumvirate which exercised unequalled power; Meyer as Chairman of
the War Finance Corporation, Bernard Baruch as Chairman of the War
Industries Board, and Paul Warburg as Governor of the Federal
A longtime critic of Eugene Meyer, Chairman Louis McFadden of the
House Banking and Currency Committee, was quoted in The New York
Times, December 17, 1930, as having made a speech on the floor of
the House attacking Hoover’s appointment of Meyer, and charging that,
represents the Rothschild interest and is liaison officer between
the French Government and J.P. Morgan."
On December 18, The Times
reported that "Herbert Hoover is deeply concerned" and that
McFadden’s speech was "an unfortunate occurrence." On December 20,
The Times commented on the editorial page, under the headline,
"The speech ought to insure the Senate
ratification of Mr. Meyer as head of the Federal Reserve. The speech
was incoherent, as Mr. McFadden’s speeches usually are"
Times predicted, Meyer was duly approved by the Senate.
Not content with having a friend in the White House, J. Henry Schroder Corporation was soon embarked on further international
adventures, nothing less than a plan to set up World War II. This
was to be done by providing, at a crucial juncture, the financing
for Adolf Hitler’s assumption of power in Germany. Although any
number of magnates have been given credit for the financing of
Hitler, including Fritz Thyssen, Henry Ford, and
J.P. Morgan, they,
as well as others, did provide millions of dollars for his political
campaigns during the 1920s, just as they did for others who also had
a chance of winning, but who disappeared and were never heard from
In December of 1932, it seemed inevitable to many observers
of the German scene that Hitler was also ready for a toboggan slide
into oblivion. Despite the fact that he had done well in national
campaigns, he had spent all the money from his usual sources and now
faced heavy debts.
In his book Aggression, Otto Lehmann-Russbeldt
tells us that,
"Hitler was invited to a meeting at the Schroder Bank
in Berlin on January 4, 1933. The leading industrialists and bankers
of Germany tided Hitler over his financial difficulties and enabled
him to meet the enormous debt he had incurred in connection with the
maintenance of his private army. In return, he promised to break the
power of the trade unions. On May 2, 1933, he fulfilled his
64 Otto Lehmann-Russbeldt, Aggression, Hutchinson & Co., Ltd.,
London, 1934, p. 44
Present at the January 4, 1933 meeting were the Dulles brothers,
John Foster Dulles and Allen W. Dulles of the New York law firm,
Sullivan and Cromwell, which represented the Schroder Bank.
Dulles brothers often turned up at important meetings. They had
represented the United States at the Paris Peace Conference (1919); John Foster Dulles would die in harness as Eisenhower’s Secretary of
State, while Allen Dulles headed the Central Intelligence Agency for
many years. Their apologists have seldom attempted to defend the
Dulles brothers appearance at the meeting which installed Hitler as
the Chancellor of Germany, preferring to pretend that it never
Obliquely, one biographer Leonard Mosley, bypasses it in
Dulles when he states,
"Both brothers had spent large amounts of time in Germany, where
Sullivan and Cromwell had considerable interest during the early
1930’s, having represented several provincial governments, some
large industrial combines, a number of big American companies with
interests in the Reich, and some rich individuals." 65
Allen Dulles later became a director of J. Henry Schroder Company.
Neither he nor J. Henry Schroder were to be suspected of being
pro-Nazi or pro-Hitler; the inescapable fact was that if Hitler did
not become Chancellor of Germany, there was little likelihood of
getting a Second World War going, the war which would double their
The Great Soviet Encyclopaedia states,
"The banking house Schroder
Bros. (it was Hitler’s banker) was established in 1846; its partners
today are the barons von Schroeder, related to branches in the
United States and England." 66 **
65 Leonard Mosley, Dulles, Dial Publishing Co., New York 1978, p. 88
66 The Great Soviet Encyclopaedia, Macmillan, London, 1973, v.2, p.
* Ezra Pound, in an April 18, 1943 broadcast over Radio Rome stated,
". . .and men in America, not content with this war are already
aiming at the next one. The time to object is now."
** The New York Times noted on October 11, 1944: "Senator Claude
Pepper criticized John Foster Dulles, Gov. Dewey’s foreign relations
advisor for his connection with the law firm of Sullivan and
Cromwell and having aided Hitler financially in 1933. Pepper
described the January 4, 1933 meeting of Franz von Papen and Hitler
in Baron Schroder’s home in Cologne, and from that time on the Nazis
were able to continue their march to power."
The financial editor of "The Daily Herald" of London wrote on Sept.
30, 1933 of
"Mr. Norman’s decision to give the Nazis the backing of
the Bank (of England.)"
John Hargrave, in his biography of
"It is quite certain that Norman did all he could to assist
Hitlerism to gain and maintain political
power, operating on the financial plane from his stronghold in
Baron Wilhelm de Ropp, a journalist whose closest friend was
Major F.W. Winterbotham, chief of Air Intelligence of the British Secret
Service, brought the Nazi philosopher, Alfred Rosenberg, to London
and introduced him to Lord Hailsham, Secretary for War, Geoffrey
Dawson, editor of The Times, and Norman, Governor of the Bank of
England. After talking with Norman, Rosenberg met with the
representative of the Schroder Bank of London.
The managing director
of the Schroder Bank, F.C. Tiarks, was also a director of the Bank
of England. Hargrave says (p. 217),
"Early in 1934 a select group of
City financiers gathered in Norman’s room behind the windowless
walls, Sir Robert Kindersley, partner of Lazard Brothers, Charles
Tiarks, Sir Josiah Stamp, (also a director of the Bank of England).
Governor Norman spoke of
the political situation in Europe. A new power had established
itself, a great ‘stabilizing
force’, namely, Nazi Germany. Norman advised his co-workers to
include Hitler in their plans
for financing Europe. There was no opposition."
Wall Street and the Rise of Hitler,
Antony C. Sutton writes,
"The Nazi Baron Kurt von Schroeder acted as the conduit for I.T.T.
money funneled to Heinrich Himmler’s S.S. organization in 1944,
while World War II was in progress, and the United States was at war
with Germany." 67
Kurt von Schroeder, born in 1889, was partner in the Cologne Bankhaus, J.H. Stein & Co., which had been founded in 1788. After
the Nazis gained power in 1933, Schroeder was appointed the German
representative at the Bank of International Settlements. The Kilgore
Committee in 1940 stated that Schroeder’s influence with the Hitler
Administration was so great that he had Pierre Laval appointed head
of the French Government during the Nazi Occupation.
Committee listed more than a dozen important titles held by
Schroeder in the 1940’s, including,
President of Deutsche Reichsbahn
Reich Board of Economic Affairs
SS Senior Group Leader
Reich Post Office
other leading banks and
Schroeder served on the board of all
International Telephone and Telegraph subsidiaries in Germany.
In 1938, the London Schroder Bank became the German financial agent
in Great Britain. The New York branch of Schroder had been merged in
1936 with the Rockefellers, as Schroder, Rockefeller, Inc. at 48
Wall Street. Carlton P. Fuller of Schroder was president of this
firm, and Avery Rockefeller was vice-president. He had been a behind
the scenes partner of J. Henry Schroder for years, and had set up
the construction firm of Bechtel Corporation, whose employees (on
leave) now play a leading role in the Reagan Administration, as
Secretary of Defense and Secretary of State.
Ladislas Farago, in
The Game of the Foxes, 68 reported that Baron
William de Ropp, a double agent, had penetrated the highest echelons
in pre-World War II days, and Hitler relied upon de Ropp as his
confidential consultant about British affairs. It was de Ropp’s
advice which Hitler followed when he refused to invade England.
67 Antony C. Sutton,
WALL STREET AND THE RISE OF HITLER, 76 Press,
Seal Beach, California, 1976, p. 79
68 Ladislas Farago, The Game of the Foxes, 1973
Victor Perlo writes, in The Empire of High Finance:
"The Hitler government made the London Schroder Bank their financial
agent in Britain and America. Hitler’s personal banking account was
with J.M. Stein Bankhaus, the German subsidiary of the Schroder
Bank. F.C. Tiarks of the British J. Henry Schroder Company
was a member of the Anglo-German Fellowship with two other partners
as members, and a corporate membership." 69
69 Victor Perlo, The Empire of High Finance, International
Publishers, 1957, p. 177
The story goes much further than Perlo suspects.
J. Henry Schroder WAS the Anglo-German Fellowship, the English equivalent of the
America First movement, and also attracting patriots who did not
wish to see their nation involved in a needless war with Germany.
During the 1930’s, until the outbreak of World War II, the Schroders
poured money into the Anglo-German Fellowship, with the result that
Hitler was convinced he had a large pro-German fifth column in
England composed of many prominent politicians and financiers.
two divergent political groups in the 1930’s in England were the War
Party, led by Winston Churchill, who furiously demanded that England
go to war against Germany, and the Appeasement Party, led by Neville
Chamberlain. After Munich, Hitler believed the Chamberlain group to
be the dominant party in England, and Churchill a minor
Because of his own financial backers, the Schroders,
were sponsoring the Appeasement Party, Hitler believed there would
be no war. He did not suspect that the backers of the Appeasement
Party, now that Chamberlain had served his purpose in duping Hitler,
would cast Chamberlain aside and make Churchill the Prime Minister.
It was not only Chamberlain, but also Hitler, who came away from
Munich believing that it would be "Peace in our time."
The success of the Schroders in duping Hitler into this belief
explains several of the most puzzling questions of World War II. Why
did Hitler allow the British Army to decamp from Dunkirk and return
home, when he could have wiped them out? Against the frantic advice
of his generals, who wished to deliver the coup de grace to the
English Army, Hitler held back because he did not wish to alienate
his supposed vast following in England. For the same reason, he
refused to invade England during a period when he had military
superiority, believing that it would not be necessary, as the
Anglo-German Fellowship group was ready to make peace with him.
The Rudolf Hess flight to England was an attempt to confirm that the
Schroder group was ready to make peace and form a common bond
against the Soviets. Rudolf Hess continues to languish in prison
today, many years after the war, because he would, if released,
testify that he had gone to England to contact the members of the
Anglo-German Fellowship, that is, the Schroder group, about ending
* The following accounts are from The New York Times:
"A broadcast over the Luxembourg radio said tonight that
Kurt von Schroder, former banker who helped finance the rise of the
Nazi party, had been recognized in an American prison camp and
November 1, 1945,
"British Army Headquarters:
von Schroder, 55 year old banker and friend of Heinrich Himmler is
being held in Dusseldorf pending decision on his indictment as a war
criminal, the Military Government official announcement said today."
February 29, 1948,
"An immediate investigation was demanded
yesterday by the Society for the Prevention of World War III as to
why the German Nazi banker, Kurt von Schroder, was not tried as a
war criminal by an allied military tribunal. Noting that von Schroder was sentenced last November to three months imprisonment
and fined 1500 Reichsmarks by a German denazification court in
Bielefeld, in the British Zone, C. Monteith Gilpin, secretary for
the society said the question should be asked why von Schroder was
allowed to escape allied justice, and why our own officials have not
demanded that von Schroder be tried by an Allied military tribunal.
‘Von Schroder is as guilty as Hitler or Goering.’"
If anyone supposes this is all ancient history, with no application
to the present political scene, we introduce the name of John Lowery
Simpson of Sacramento, California. Although he appears for the first
time in Who’s Who in America for 1952, Mr. Simpson states that he
served under Herbert Hoover on the Commission for Relief in Belgium
from 1915 to 1917; U.S. Food Administration, 1917 to 1918, American
Relief Commission, 1919, and with P.N. Gray Company, Vienna, 1919 to
Gray was the Chief of Maritime Transportation for the U.S.
Food Administration, which enabled him to set up his own shipping
company after the war. Like other Hoover humanitarians, Simpson also
joined the J. Henry Schroder Banking Company (Adolf Hitler’s
personal bankers) and the J. Henry Schroder Trust Company. He also
became a partner of Schroder-Rockefeller Company when that
investment trust backed a construction company which became the
world’s largest, the firm of Bechtel Incorporated. Simpson was
chairman of the finance committee of Bechtel Company,
International, and Canadian Bechtel.
Simpson states he was
consultant to the Bechtel-McCone interests in war production during
World War II. He served on the Allied Control Commission in Italy
1943-44. He married Margaret Mandell, of the merchant family for
whom Col. Edward Mandell House was named, and he backed a California
personality, first for Governor, then for President.
As a result,
Simpson and J. Henry Schroder Company now have serving them as
Secretary of Defense, former Bechtel employee Caspar Weinberger. As
Secretary of State they have serving them George Pratt Schultz, also
a Bechtel employee, who happens to be a Standard Oil heir,
reaffirming the Schroder-Rockefeller company ties.
"conservative" Reagan Administration has,
a Secretary of Defense from Schroder Company
a Secretary of State from Schroder-Rockefeller
a vice president whose father was senior partner of Brown
The Heritage Foundation has also been an important factor in the
policy-making of the Reagan Administration. Now we find that the
Heritage Foundation is part of the
Tavistock Institute network,
directed by British Intelligence. The financial decisions are still
made at the Bank of England, and who is head of the Bank of England?
Sir Gordon Richardson, chairman of J. Henry Schroder Co. of London
and New York from 1962 to 1972, when he became Governor of the Bank
of England. The "London Connection" has never been more firmly in
the saddle of the United States Government.
On July 3, 1983, The New York Times announced that Gordon
Richardson, Governor of the Bank of England for the past ten years,
had been replaced by Robert Leigh-Pemberton, Chairman of the
National Westminster Bank. The list of directors of National
Westminster Bank reads like a Who’s Who of the British ruling class.
the Chairman, Lord Aldenham, who is also Chairman of Antony Gibbs & Son, merchant bankers, one of the seventeen
privileged firms chartered by the Bank of England
Barrie, Chairman of the British Broadcasting System
Governor of the London School of Economics, the training school for
the international bankers, and chairman of New Zealand Shipping
Sir E.C. Mieville, private secretary to the King of England
Marquess of Salisbury, Lord Cecil, Lord Privy Seal (the
Cecils have been considered one of England’s three ruling families
since the Middle Ages)
Lord Leathers, Baron of Purfleet, Minister
of War Transport 1941-45, chairman of William Cory group of
Sir W.H. Coates and W.J. Worboys of Imperial Chemical
Industries (the English DuPont)
Earl of Dudley, chairman British
Iron & Steel, Sir W. Benton Jones, chairman United Steel and many
other steel companies
Sir G.E. Schuster, Bank of New Zealand; East
India Coal Company
A. d’A. Willis, Ashanti Goldfields and many
banks, tea companies and other firms
V.W. Yorke, chairman of
Mexican Railways Ltd
Richardson, former chairman of Schroders with a New York subsidiary
holding Federal Reserve Bank of New York stock, was replaced by the
chairman of National Westminster, with a subsidiary in New York
holding Federal Reserve Bank of New York stock.
Pemberton, a director of Equitable Life Assurance Society (J.P.
Morgan), married the daughter of the Marchioness of Exeter, (the
Cecil Burghley family). Thereby, the control of the London
Connection remains constantly in effect.
The list of the present directors of J. Henry Schroder Bank and
Trust shows the continuing international influence since the First
George A. Braga is also director of Czarnikow-Rionda
Company, vice-president of Francisco Sugar Company, president of
Manati Sugar Company, and vice-president of New Tuinicui Sugar
Rionda B. Braga, is president of Francisco Sugar Company and
vice-president of Manati Sugar Company.
The Schroder control of
sugar goes back to the U.S. Food Administration under Herbert Hoover
and Lewis L. Strauss of Kuhn, Loeb, Company during World War I.
Schroder’s attorneys are the firm of Sullivan and Cromwell.
Foster Dulles of this firm was present during the historic agreement
to finance Hitler, and was later Secretary of State in the
Alfred Jaretzki, Jr., of Sullivan and
Cromwell is also a director of Manati Sugar Company and Francisco
Another director of J. Henry Schroder is Norris Darrell, Jr., born
in Berlin, Germany, partner of Sullivan and Cromwell, and a director
of Schroder Trust Company.
Bayless Manning, partner of the Wall
Street law firm of Paul, Weiss, Rifkind and Wharton, is also a
director of J. Henry Schroder. He was president of the
Foreign Relations from 1971-1977, and is editor in chief of the Yale
Paul H. Nitze, the prominent "disarmament negotiator" for the United
States government, is a director of Schroder’s Inc. He married
Phyllis Pratt, of the Standard Oil fortune, whose father gave the
Pratt family mansion as the building which houses the Council on
CHAPTER EIGHT -
World War One
"Money is the worst of all contraband."
--William Jennings Bryan
It is now apparent that there might have been no World War without
the Federal Reserve System. A strange sequence of events, none of
which were accidental, had occurred. Without Theodore Roosevelt’s
"Bull Moose" candidacy, the popular President Taft would have been
reelected, and Woodrow Wilson would have returned to obscurity.*
Wilson had not been elected, we might have had no Federal Reserve
Act, and World War One could have been avoided. The European nations
had been led to maintain large standing armies as the policy of the
central banks which dictated their governmental decisions.
1887, the Quarterly Journal of Economics had pointed out:
"A detailed revue of the public debts of Europe shows interest and
sinking fund payments of $5,343 million annually (five and one-third
billion). M. Neymarck’s conclusion is much like Mr. Atkinson’s. The
finances of Europe are so involved that the governments may ask
whether war, with all its terrible chances, is not preferable to the
maintenance of such a precarious and costly peace. If the military
preparations of Europe do not end in war, they may well end in the
bankruptcy of the States. Or, if such follies lead neither to war
nor to ruin, then they assuredly point to industrial and economic
* NOTE: P.34. "House revealed to me in a confidential moment, ‘Wilson
was elected by Teddy Roosevelt.’" The Strangest Friendship in
History, Woodrow Wilson and Col. House, George Sylvester Viereck,
Liveright, N.Y. 1932
From 1887 to 1914, this precarious system of heavily armed but
bankrupt European nations endured, while the United States continued
to be a debtor nation, borrowing money from abroad, but making few
international loans, because we did not have a central bank or
"mobilization of credit".
The system of national loans developed by
the Rothschilds served to finance European struggles during the
nineteenth century, because they were spread out over Rothschild
branches in several countries. By 1900, it was obvious that the
European countries could not afford a major war. They had large
standing armies, universal military service, and modern weapons, but
their economies could not support the enormous expenditures.
The Federal Reserve System began operations in
1914, forcing the American people to lend the Allies twenty-five
billion dollars which was not repaid, although considerable interest
was paid to New York bankers. The American people were driven to
make war on the German people, with whom we had no conceivable
political or economic quarrel. Moreover, the United States comprised
the largest nation in the world composed of Germans; almost half of
its citizens were of German descent, and by a narrow margin, German
had been voted down as the national language.*
* 1787 Constitutional Convention
The German Ambassador
to Turkey, baron Wangeheim asked the American Ambassador to Turkey,
Henry Morgenthau, why the United States intended to make war in
Germany. "We Americans," replied Morgenthau, speaking for the group
of Harlem real estate operators of which he was the head, "are going
to war for a moral principle."
J.P. Morgan received the proceeds of
the First Liberty Loan to pay off $400,000,000 which he advanced to
Great Britain at the outset of the war. To cover this loan,
$68,000,000 in notes had been issued under the provisions of the
Aldrich-Vreeland Act for issuing notes against securities, the only
time this provision was employed.
The notes were retired as soon as
the Federal Reserve Banks began operation, and replaced by Federal
During 1915 and 1916, Wilson kept faith with the bankers who had
purchased the White House for him, by continuing to make loans to
the Allies. His Secretary of State, William Jennings Bryan,
protested constantly, stating that "Money is the worst of all
By 1917, the Morgans and Kuhn, Loeb Company had floated
a billion and a half dollars in loans to the Allies. The bankers
also financed a host of "peace" organizations which worked to get us
involved in the World War. The Commission for Relief in Belgium
manufactured atrocity stories against the Germans, while a Carnegie
organization, The League to Enforce Peace, agitated in Washington
for our entry into war. This later became the Carnegie Endowment for
International Peace, which during the 1940s was headed by Alger
One writer * claimed that he had never seen any "peace
movement" which did not end in war.
* NOTE: Emmett Tyrell, Jr., Richmond Times Dispatch, Feb. 15, 1983
"Every peace movement of this century has been followed by war."
The U.S. Ambassador to Britain, Walter Hines Page, complained that
he could not afford the position, and was given twenty-five thousand
dollars a year spending money by Cleveland H. Dodge, president of
the National City Bank. H.L. Mencken openly accused Page in 1916 of
being a British agent, which was unfair. Page was merely a bankers’
On March 5, 1917, Page sent a confidential letter to Wilson.
"I think that the pressure of this
approaching crisis has gone beyond the ability of the Morgan
Financial Agency for the British and French Governments... The greatest help we could give the Allies would be a
credit. Unless we go to war with Germany, our Government, of course,
cannot make such a direct grant of credit."
The Rothschilds were wary of Germany’s ability to continue in the
war, despite the financial chaos caused by their agents, the
Warburgs, who were financing the Kaiser, and Paul Warburg’s brother,
Max, who, as head of the German Secret Service, authorized Lenin’s
train to pass through the lines and execute the Bolshevik Revolution
According to Under Secretary of the Navy, Franklin D.
Roosevelt, America’s heavy industry had been preparing for war for a
year. Both the Army and Navy Departments had been purchasing war
supplies in large amounts since early in 1916.
Cordell Hull remarks
in his Memoirs:
"The conflict forced the further development of the income-tax
principle. Aiming, as it did, at the one great untaxed source of
revenue, the income-tax law had been enacted in the nick of time to
meet the demands of the war. And the conflict also assisted the
putting into effect of the Federal Reserve System, likewise in the
nick of time." 70
70 Cordell Hull, Memoirs, Macmillan, New York, 1948, v. 1, page 76
One may ask, in the nick of time for whom? Certainly not for the
American people, who had no need for "mobilization of credit" for a
European war, or to enact an income tax to finance a war. Hull’s
statement affords a rare glimpse into the machinations of our
The Notes of the Journal of Political Economy, October, 1917, state:
"The effect of the war upon the business of the
Banks has required an immense development of the staffs of these
banks, with a corresponding increase in expenses. Without, of
course, being able to anticipate so early and extensive a demand for
their services in this connection, the framers of the Federal
Reserve Act had provided that the Federal Reserve Banks should act
as fiscal agents of the Government."
The bankers had been waiting since 1887 for the United States to
enact a central bank plan so that they could finance a European war
among the nations whom they had already bankrupted with armament and
"defense" programs. The most demanding function of the central bank
mechanism is war finance.
On October 13, 1917, Woodrow Wilson made a major address, stating:
"It is manifestly imperative that there should be a complete
mobilization of the banking reserves of the United States. The
burden and the privilege (of the Allied loans) must be shared by
every banking institution in the country. I believe that cooperation
on the part of the banks is a patriotic duty at this time, and that
membership in the Federal Reserve System is a distinct and
significant evidence of patriotism."
E.W. Kemmerer writes that,
"As fiscal agents of the Government,
federal reserve banks rendered the nations services of incalculable
value after our entrance into the war. They aided greatly in the
conservation of our gold resources, in the regulation of our foreign
exchanges, and in the centralization of our financial energies. One
shudders when he thinks what might have happened if the war had
found us with our former decentralized and antiquated banking
Mr. Kemmerer’s shudders ignore the fact that if we had kept "our
antiquated banking system" we would not have been able to finance
the World War or to enter as a participant ourselves.
Woodrow Wilson himself did not believe in his crusade to save the
world for democracy. He later wrote that "The World War was a matter
of economic rivalry."
On being questioned by Senator McCumber about the circumstances of
our entry into the war, Wilson was asked,
"Do you think if Germany
had committed no act of war or no act of injustice against our
citizens that we would have gotten into this war?"
"I do think so,"
"You think we would have gotten in anyway?" pursued
"I do," said Wilson.
In Wilson’s War Message in 1917, he included an incredible tribute
to the Communists in Russia who were busily slaughtering the middle
class in that unfortunate country.
"Assurance has been added to our hope for the future peace of the
world by the wonderful and heartening things that have been
happening in the last few weeks in Russia. Here is a fit partner for
a League of Honor." 71
71 Public Papers of Woodrow Wilson, Dodd & Baker, v.5, p. 12-13
(image right) paean to a bloodthirsty regime which has since murdered
sixty-six million of its inhabitants in the most barbarous manner
exposes his true sympathies and his true backers, the bankers who
had financed the blood purge in Russia. When the Communist
Revolution seemed in doubt, Wilson sent his personal emissary,
Root, to Russia with one hundred million dollars from his Special
Emergency War Fund to save the toppling Bolshevik regime.
The documentation of Kuhn, Loeb Company’s involvement in the
establishment of Communism in Russia is much too extensive to be
quoted here, but we include one brief mention, typical of the
literature on this subject.
In his book, Czarism and the Revolution,
Gen. Arsene de Goulevitch writes,
"Mr. Bakmetiev, the late Russian Imperial Ambassador to the United
States, tells us that the Bolsheviks, after victory, transferred 600
million roubles in gold between the years 1918-1922 to Kuhn, Loeb
After our entry into World War I, Woodrow Wilson turned the
government of the United States over to a triumvirate of his
campaign backers, Paul Warburg, Bernard Baruch and Eugene Meyer.
Baruch was appointed head of the War Industries Board, with life and
death powers over every factory in the United States
was appointed head of the War Finance Corporation, in charge of the
loan program which financed the war
Paul Warburg was in control of
the nation’s banking system *
* NOTE: New York Times, August 10, 1918; "Mr. (Paul) Warburg was the
author of the plan organizing the War Finance Corporation."
Knowing that the overwhelming sentiment of the American people
during 1915 and 1916 had been anti-British and pro-German, our
British allies viewed with some trepidation the prominence of Paul
Warburg and Kuhn, Loeb Company in the prosecution of the war. They
were uneasy about his high position in the Administration because
his brother, Max Warburg, was at that time serving as head of the
German Secret Service.
On December 12, 1918, the United States Naval
Secret Service Report on Mr. Warburg was as follows:
"WARBURG, PAUL: New York City. German, naturalized citizen, 1911.
was decorated by the Kaiser in 1912, was vice chairman of the
Federal Reserve Board. Handled large sums furnished by Germany for
Lenin and Trotsky. Has a brother who is leader of the espionage
system of Germany."
Strangely enough, this report, which must have been compiled much
earlier, while we were at war with Germany, is not dated until
December 12, 1918, AFTER the Armistice had been signed. Also, it
does not contain the information that Paul Warburg resigned from the
Federal Reserve Board in May, 1918, which indicates that it was
compiled before May, 1918, when Paul Warburg would theoretically
have been open to a charge of treason because of his brother’s
control of Germany’s Secret Service.
Paul Warburg’s brother Felix in New York was a director of the
Prussian Life Insurance Company of Berlin, and presumably would not
have liked to see too many of his policyholders killed in the war.
On September 26, 1920, The New York Times mentioned in its obituary
of Jacob Schiff in reference to Kuhn, Loeb and Company,
world War certain of its members were in constant contact with the
Government in an advisory capacity. It shared in the conferences
which were held regarding the organization and formation of the
Federal Reserve System."
The 1920 Schiff obituary revealed for the first time that
Schiff, like the Warburgs, also had two brothers in Germany during
World War I, Philip and Ludwig Schiff, of Frankfurt-on-Main, who
also were active as bankers to the German Government!
This was not a
circumstance to be taken lightly, as on neither side of the Atlantic
were the said bankers obscure individuals who had no influence in
the conduct of the war. On the contrary, the Kuhn, Loeb partners
held the highest governmental posts in the United States during
World War I, while in Germany, Max and Fritz Warburg, and
Ludwig Schiff, moved in the highest councils of government.
From Memoirs of Max Warburg,
"The Kaiser thumbed the table violently and
shouted, ‘Must you always be right?’ but then listened carefully to
Max’s view on financial matters." 72
In June, 1918, Paul Warburg wrote a private note to
"I have two brothers in Germany who are bankers. They naturally now
serve their country to their utmost ability, as I serve mine."
Neither Wilson nor Warburg viewed the situation as one of concern,
and Paul Warburg served out his term on the Federal Reserve Board of
Governors, while World War I continued to rage.
The background of Kuhn, Loeb & Company had been exposed in "Truth
Magazine", edited by George Conroy:
"Mr. Schiff is head of the great private banking house of Kuhn, Loeb
& Co. which represents the Rothschild interest on this side of the
Atlantic. He has been described as a financial strategist and has
been for years the financial minister to the great impersonal power
known as Standard Oil. He was hand-in-glove with the Harrimans, the
Goulds and the Rockefellers, in all their railroad enterprises and
has become the dominant power in the railroad and financial world in
Louis Brandeis, because of his great ability as a lawyer and for
other reasons which will appear later, was selected by Schiff as the
instrument through which Schiff hoped to achieve his ambition in New
England. His job was to carry on an agitation which would undermine
public confidence in the New Haven system and cause a decrease in
the price of its securities, thus forcing them on the market for the
wreckers to buy." 74
72 Max Warburg, Memoirs of Max Warburg, Berlin, 1936
73 David Farrar, The Warburgs, Michael Joseph, Ltd., London, 1974
74 "Truth Magazine", George Conroy, editor, Boston, issue of
December 16, 1912
We mention Schiff’s lawyer, Brandeis, here because the first
available appointment on the Supreme Court of the United States
which Woodrow Wilson was allowed to fill was given to the Kuhn, Loeb
Not only was the U.S. Food Administration managed by Hoover’s
director, Lewis Lichtenstein Strauss, who married into the Kuhn Loeb
Company by marrying Alice Hanauer, daughter of partner Jerome
Hanauer, but in the most critical field, military intelligence,
William Wiseman, chief of the British Secret Service, was a partner
of Kuhn, Loeb & Company. He worked most closely with Wilson’s alter
ego, Col. House.
"Between House and Wiseman there were soon to be
few political secrets, and from their mutual comprehension resulted
in large measure our close cooperation with the British." 75
One example of House’s cooperation with
Wiseman was a confidential
agreement which House negotiated pledging the United States to enter
into World War I on the side of the Allies. Ten months before the
election which returned Wilson to the White House in 1916 ‘because
he kept us out of war’, Col. House negotiated a secret agreement
with England and France on behalf of Wilson which pledged the United
States to intervene on behalf of the Allies.
On March 9, 1916,
Wilson formally sanctioned the undertaking. 76
75 Edward M. House, The Intimate Papers of Col. House, edited by
Charles Seymour, Vol. II, p. 399. Houghton, Mifflin Co.
76 George Sylvester Viereck, The Strangest Friendship in History,
Woodrow Wilson and Col. House, p. 106
Nothing could more forcefully illustrate the duplicity of Woodrow
Wilson’s nature than his nationwide campaign on the slogan, "He kept
us out of war", when he had pledged ten months earlier to involve us
in the war on the side of England and France. This explains why he
was regarded with such contempt by those who learned the facts of
his career. H.L. Mencken wrote that Wilson was "the perfect model of
the Christian cad", and that we ought "to dig up his bones and make
dice of them."
According to The New York Times, Paul Warburg’s letter of
resignation stated that some objection had been made because he had
a brother in the Swiss Secret Service. The New York Times has never
corrected this blatant falsehood, perhaps because Kuhn, Loeb Company
owned a controlling interest in its stock. Max Warburg was not
Swiss, and although he had probably come into contact with the Swiss
Secret Service during his term of office as head of the German
Secret Service, no responsible editor at The New York Times could
have been unaware of the fact that Max Warburg was German, and that
his family banking house was in Hamburg, and that he held a number
of high positions in the German Government.
He represented Germany
at the Versailles Peace Conference, and remained peacefully in
Germany until 1939, during a period when persons of his religion
were being persecuted. To avoid injury during the approaching war,
when bombs would rain on Germany, Max Warburg was allowed to sail to
New York, his funds intact.
At the outset of World War I, Kuhn, Loeb Company had figured in the
transfer of German shipping interests to other control. Sir Cecil
Spring-Rice, British Ambassador to the United States, in a letter to
Lord Grey wrote:
"Another matter is the question of the transfer of the flag to the
Hamburg Amerika ships. The company is practically a German
Government affair. The ships are used for Government purposes, the
Emperor himself is a large shareholder, and so is the great banking
house of Kuhn, Loeb Company. A member of that house (Warburg) has
been appointed to a very responsible position in New York, although
only just naturalized. He is concerned in business with the
Secretary of the Treasury, who is the President’s son-in-law. It is
he who is negotiating on behalf of the Hamburg Amerika Shipping
On November 13, 1914, in a letter to Sir Valentine Chirol,
Spring-Rice wrote, (p. 241, v. 2)
"I was told today that The New York Times has been practically
acquired by Kuhn, Loeb and Schiff, special protégé of the (German)
Emperor. Warburg, nearly related to Kuhn Loeb and Schiff is a
brother of the well known Warburg of Hamburg, the associate of Ballin (Hamburg) Amerika line, is a member of the Federal Reserve
Board or rather THE member. He practically controls the financial
policy of the Administration, and Paish & Blackett (England) had
mainly to negotiate with him. Of course, it was exactly like
negotiating with Germany. Everything that was said was German
Col. Garrison wrote in Roosevelt, Wilson and the Federal Reserve
"Through the banking House of the Kuhn Loeb Company, a
powerful weapon would have been placed in the hands of the German
Kaiser over the destiny of American business and American
77 Letters and Friendships of Sir Cecil Spring-Rice, p. 219-220
78 Col. Elisha Garrison, Roosevelt, Wilson and the Federal Reserve
Law, Christopher Publishing House, Boston, 1931, p. 260
Garrison was referring to the Hamburg Amerika affair.
It seemed strange that
Woodrow Wilson felt it necessary to place the
nation in the hands of three men whose personal history was one of
ruthless speculation and the quest for personal gain, or that during
war with Germany, he found as persons of supreme trust a German
immigrant naturalized in 1911, the son of an immigrant from Poland,
and the son of an immigrant from France. Bernard Baruch (image left) first
attracted attention on Wall Street in 1890 while working for A.A.
Housman & Co.
In 1896 he merged the six principal tobacco companies of the United
States into the Consolidated Tobacco Company, forcing
James Duke and
the American Tobacco Trust to enter into this combination. The
second great trust set up by Baruch brought the copper industry into
of the Guggenheim family, who have controlled it ever since.
worked with Edward H. Harriman, who was Schiff’s front man in
controlling America’s railway system for the Rothschild family.
Baruch and Harriman also combined their talents to gain control over
the New York City transit system, which has been in perilous
financial condition ever since.
In 1901, Baruch formed the firm of Baruch Brothers, bankers, with
his brother Herman, in New York. In 1917, when Baruch was appointed
Chairman of the War Industries Board, the name was changed to Hentz
Testifying before the Nye Committee on September 13, 1937, Bernard
Baruch stated that "All wars are economic in their origin." So much
for religious and political disagreements, which had been specially
touted as the cause of wars.*
* NOTE: Baruch also stated in this testimony, "I carried through the
war three major investments, Alaska Juneau Gold Mining Company (with
partner Eugene Meyer), Texas Gulf Sulphur, and Atolia Mining Company
(tungsten)." Rep. Mason, Illinois, told the House on February 21,
1921 that Baruch made more than $50 million in copper during the
A profile in the "New Yorker" magazine reported that
Baruch made a
profit of seven hundred fifty thousand dollars in one day during
World War I, after a phony peace rumor was planted in Washington. In
"Who’s Who", Baruch mentions that he was a member of the Commission
which handled all purchasing for the Allies during World War I. In
fact, Baruch WAS the Commission.
He spent the American
taxpayer’s money at the rate of ten billion dollars a year, and was
also the dominant member of the Munitions Price-Fixing Committee. He
set the prices at which the Government bought war materials. It
would be naive to presume that the orders did not go to firms in
which he and his associates had more than a polite interest
dictator over American manufacturers.*
* Baruch chose as Assistant Chairman of the War Industries Board a
fellow Wall Street speculator, Clarence Dillon (Lapowitz). See
At the Nye Committee hearings
in 1935, Baruch testified,
"President Wilson gave me a letter authorizing me to take over any
industry or plant. There was udge Gary, President of United States
Steel, whom we were having trouble with, and when I showed him that
letter, he said, ‘I guess we will have to fix this up’, and he did
fix it up."
Some members of Congress were curious about
to exercise life and death powers over American industry in time of
war. He was not a manufacturer, and had never been in a factory.
When he was called before a Congressional Committee, Bernard Baruch
stated that his profession was "Speculator".
A Wall Street gambler
had been made Czar of American Industry.
@insert Facsimile of New York Times article
Facsimile of an article which appeared in The New York Times dated
September 23, 1914. Listed are major stockholders of the five New
York City banks which purchased 40% of the 203, 053 shares of the
Federal Reserve Bank of New York when the System was organized in
1914. They thus obtained control of that Federal Reserve Bank and
have held it ever since.
As of Tuesday, July 26, 1983, the top five
surviving New York City banks have increased their
ownership of the Federal Reserve Bank of New York to 53%
of the shares.
Chart I 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 shows this same family
Baruch’s erstwhile partner, Eugene Meyer, (Alaska-Juneau Gold Mining
Co.), later claimed that Baruch was a nitwit, and that Meyer, with
his family banking connections (Lazard Freres), had guided Baruch’s
investment career. These claims appeared in the fiftieth anniversary
edition of The Washington Post, editorial page, June 4, 1983, with a
parting shot from Meyer’s editor, Al Friendly, that
journalist in Washington, Meyer included, knew that Bernard M.
Baruch was a self-aggrandizing phony."
The third member of the Triumvirate, Eugene Meyer, was son of the
partner in the international banking house of Lazard Freres, of
Paris and New York. In My Own Story Baruch explains how
head of the War Finance Corporation.
"At the outset of World War
One," he says, "I sought out Eugene Meyer, Jr. . . . who was a man
of the highest integrity with a keen desire to be of public
79 Bernard Baruch, My Own Story, Henry-Holt Company, New York, 1957,
The nation has suffered greatly from persons who desired to be of
public service, because their desires often went considerably beyond
their passion for office. In fact, Meyer and Baruch had operated an
Alaska venture, Alaska-Juneau Gold Mining Company in 1915, and had
worked together on other financial schemes. Meyer’s family house of
Lazard Freres specialized in international gold movements.
Eugene Meyer’s stewardship of the War Finance Corporation comprises
one of the most amazing financial operations ever partially recorded
in this country. We say "partially recorded", because subsequent
Congressional investigations revealed that each night, the books
were being altered before being brought in for the next day’s
investigation. Louis McFadden, Chairman of the House Banking and
Currency Committee, figured in two investigations of Meyer, in 1925,
and again in 1930, when Meyer was proposed as Governor of the
Federal Reserve Board.
The Select Committee to Investigate the
Destruction of Government Bonds, submitted, on March 2, 1925,
"Preparation and Destruction of Government Bonds--68th Congress, 2d
Session, Report No. 1635:
"Duplicate bonds amounting to 2314 pairs and duplicate coupons
amounting to 4698 pairs
ranging in denominations from $50 to $10,000 have been redeemed to
July 1, 1924. Some of
these duplications have resulted from error and some from fraud."
These investigations may explain why, at the end of World War One,
Eugene Meyer was able to buy control of Allied Chemical and Dye
Corporation, and later on, the nation’s most influential newspaper,
The Washington Post. The duplication of bonds, "one for the
government, one for me" in denominations to the amount of $10,000
each, resulted in a tidy sum.
p. 6 of these Hearings.
"These transactions of the Treasury prior to
June 20, 1920 (including
settlements for purchases and sales), executed by the War Finance
Corporation (Eugene Meyer,
managing director), were largely directed by the managing director
of the War Finance
Corporation, and settlements with the Treasury were made principally
by him with the Assistant Secretary of the Treasury, and the books
show that the basis of the price paid by the Government for over
$1,894 millions worth of bonds ($1,894,000,000.00), which the
Treasury purchased through the War Finance Corporation was not the
market price and was not the cost of the bond plus interest, and the
elements entering into the settlement are not disclosed by the
correspondence. The managing director of the War Finance Corporation
stated that he and an Assistant Secretary of the Treasury (Jerome J. Hanauer, partner of
Kuhn, Loeb Co. whose daughter married Lewis L.
Strauss) agreed to the price, and it was simply an arbitrary figure
set by an Assistant Secretary of the Treasury as to the bonds so
purchased by the War Finance Corporation.
During the period of these
transactions and up until quite a recent date the managing director
of the War Finance Corporation, Eugene Meyer, Jr., in his private
capacity maintained an office at No. 14 Wall Street, New York City,
and through the War Finance Corporation sold about $70 millions in
bonds to the Government, and also bought through the War Finance
Corporation about $10 millions in bonds, and approved the bills for
most, if not all, of these bonds in his official capacity as
managing director of the War Finance Corporation.
transactions, just referred to, were disclosed to the committee in
open hearing, the managing director
appeared before the committee and stated the fact that commissions
were paid on these transactions, they were in turn paid over to the
brokers, selected by the managing director, who executed the orders
issued by his brokerage house, and immediately after this disclosure
to the committee, the managing director employed Ernst and Ernst,
certified public accountants, to audit the books of the War Finance
Corporation, who did, upon completion of the examination of these
books, report to the committee that all moneys received by the
brokerage house of the managing director had been accounted for.
While simultaneously with the examination being made by the
committee, the certified public accountants, heretofore referred to,
were nightly carrying on their examination, it was discovered by
your committee that alterations and changes were being made in the
books of record covering these transactions, and when the same was
called to the attention of the treasurer of the War Finance
Corporation, he admitted to the committee that changes were being
made. To what extent these books have been altered during the
process the committee have not been able to determine. After June,
1921, about $10 billions worth of securities were destroyed."
It was Eugene Meyer’s Washington Post, (under the direction of his
daughter, Katherine Graham - image
above right) which was later to drive a President of
the United States from the White House on the grounds that he had
knowledge of a burglary.
What are we to think of the revelations of
duplications of hundreds of millions of dollars worth of bonds
This chart shows the interlocking banking directorates which were
revealed by the backgrounds of the officials selected to be the
original members of the Federal Advisory Council in 1914. The
principals were the same bankers who had been present or represented
at the Jekyll Island Conference in 1910, and during the campaign to
have the Federal Reserve Act enacted into law by Congress in 1913.
These officials represented the largest stock holdings in the New
York banks which bought the controlling stock in the Federal Reserve
Bank of New York, and also were the principal correspondent banks of
the banks in other Federal Reserve districts who, in turn, selected
their officials to represent them on the Federal Advisory Council.
The J. Henry Schroder Banking Company chart encompasses the entire
history of the twentieth century, embracing as it does the program
(Belgian 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, 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.
Meyer’s directorship of the War Finance Corporation, the alteration
of the books during a Congressional investigation, and the fact that
Meyer came out of this situation with many millions of dollars with
which he proceeded to buy Allied Chemical Corporation, The
Washington Post, and other properties? Incidentally, Lazard
Brothers, Meyer’s family banking house, personally manages the
fortunes of many of our political luminaries, including the Kennedy
Besides these men, Warburg, Baruch, and Meyer, a host of
Co., and Kuhn, Loeb Co., partners, employees, and satellites came to
Washington after 1917 to administer the fate of the American people.
The Liberty Loans, which sold bonds to our citizens, were nominally
in the jurisdiction of the United States Treasury, under the
leadership of Wilson’s Secretary of the Treasury, William G. McAdoo,
whom Kuhn, Loeb Co. had placed in charge of the Hudson-Manhattan
Railway Co. in 1902.
Paul Warburg had most of the Kuhn Loeb Co. firm
with him in Washington during the War. Jerome Hanauer, partner in
Kuhn, Loeb Co., was Assistant Secretary of the Treasury in charge of
The two Under-secretaries of the Treasury during the
War were S. Parker Gilbert and Roscoe C. Leffingwell. Both
and Leffingwell came to the Treasury from the law firm of Cravath
and Henderson, and returned
to that firm when they had fulfilled their mission for Kuhn, Loeb
Co. in the Treasury. Cravath and Henderson were the lawyers for
Loeb Co. Gilbert and Leffingwell subsequently received partnerships
in J.P. Morgan Co.
The Peabody-Morgan chart shows the London Connection of these
prominent banking firms, which have been headquartered in London
since their inception. The Peabody fortune set up an Educational
Fund in 1865, which was later absorbed by John D. Rockefeller into
the General Educational Board in 1905, which, in turn, was absorbed
by the Rockefeller Foundation in 1960.
Kuhn, Loeb Company, the nation’s largest owners of railroad
properties in this country and in Mexico, protected their interests
during the First World War by having Woodrow Wilson set up a United
States Railroad Administration.
The Director-General was William
McAdoo, Comptroller of the Currency. Warburg replaced this set up in
1918 with a tighter organization which he called the Federal
Transportation Council. The purpose of both of these organizations
was to prevent strikes against Kuhn, Loeb Company during the War, in
case the railroad workers should try to get in wages some of the
millions of dollars in wartime profits which Kuhn, Loeb received
from the United States Government.
Among the important bankers present in Washington during the War was
Herbert Lehman (image right), of the rapidly rising firm of
Bankers, New York, Lehman was promptly put on the General Staff of
the Army, and given the rank of Colonel.
The Lehmans had had prior experience in "taking the profits out of
war", a double entendre and one of Baruch’s favorite phrases. In
Who Rule America, Arthur D. Howden Smith writes of the Lehmans
during the Civil War,
"They were often agents, fixers for both
sides, intermediaries for confidential communications and handlers
of the many illicit transactions in cotton and drugs for the
Confederacy, purveyors of information for the North. The Lehmans,
with Mayer in Montgomery, the first capital of the Confederacy,
Henry in New Orleans, and Emanuel in New York were ideally situated
to take advantage of every opportunity for profit which appeared.
They seem to have missed few chances." 80
80 Arthur D. Howden Smith, Men Who Rule America, Bobbs Merrill, N.Y.
1935, p. 112
David Rockefeller chart shows the link between the
Reserve Bank of New York, Standard Oil of Indiana, General Motors,
and Allied Chemical Corporation (Eugene Meyer family) and Equitable
Life (J.P. Morgan).
Other appointments during the First World War were as follows:
J.W. McIntosh, director of the Armour meat-packing trust, who was
made chief of Subsistence for the United States Army in 1918. He
later became Comptroller of the Currency during Coolidge’s
Administration, and ex-officio member of the Federal Reserve Board.
During the Harding Administration, he did his bit as Director of
Finance for the United States Shipping Board when the Board sold
ships to the Dollar Lines for a hundredth of their cost and then let
the Dollar Line default on its payments. After leaving public
service, J.W. McIntosh became a partner in J.W. Wollman Co., New
W.P.G. Harding, Governor of the Federal Reserve Board, was also
managing director of the War Finance Corporation under Eugene Meyer.
George R. James, member of the Federal Reserve Board in 1923-24, had
been Chief of the Cotton Section of the War Industries Board.
Henry P. Davison, senior partner in J.P. Morgan Co., was appointed
head of the American Red Cross in 1917 in order to get control of
the three hundred and seventy million dollars cash which was
collected from the American people in donations.
Ronald Ransom, banker from Atlanta, and Governor of the Federal
Reserve Board under Roosevelt in 1938-39, had been the Director in
Charge of Personnel for Foreign Service for the American Red Cross
John Skelton Williams, Comptroller of the Currency, was appointed
National Treasurer of the American Red Cross.
President Woodrow Wilson, the great liberal
who signed the Federal
Reserve Act and declared war against Germany, had an odd career for
a man who is now enshrined as a defender of the common people.
chief supporter in both his campaigns for the Presidency was Cleveland H. Dodge, of Kuhn Loeb, who controlled National City Bank
of New York. Dodge was also President of the Winchester Arms Company
and Remington Arms Company. He was very close to President Wilson
throughout the great democrat’s political career.
Wilson lifted the
embargo on shipment of arms to Mexico on February 12, 1914, so that
Dodge could ship a million dollars worth of arms and ammunition to
Carranza and promote the Mexican Revolution. Kuhn, Loeb Co. which
owned the Mexican National Railways System, had become dissatisfied
with the administration of Huerta and had him kicked out.
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.
When the British naval auxiliary Lusitania was sunk in 1915, it was
loaded with ammunition from Dodge’s factories. Dodge became Chairman
of the "Survivors of Victims of the Lusitania Fund", which did so
much to arouse the public against Germany. Dodge also was notorious
for using professional gangsters against strikers in his plants, yet
the liberal Wilson does not appear to have ever been disturbed by
Another clue to
Wilson’s peculiar brand of liberalism is to be found
in Chaplin’s book Wobbly, which relates how Wilson scrawled the word
"REFUSED" across the appeal for clemency sent him by the aging and
ailing Eugene Debs (image left), who had been sent to Atlanta Prison for
"speaking and writing against war".
The charge on which Debs was
convicted was "spoken and written denunciation of war". This was
treason to the Wilson dictatorship, and Debs was imprisoned. As head
of the Socialist Party, Debs ran for the Presidency from Atlanta
Prison, the only man ever to do so, and polled more than a million
It was ironic that Debs’ leadership of the Socialist Party,
which at that time represented the desires of many Americans for an
honest government, should fall into the sickly hands of Norman
Thomas, a former student and admirer of Woodrow Wilson at Princeton
University. Under Thomas’ leadership, the Socialist Party no longer
stood for anything, and suffered a steady decline in influence and
Wilson continued to be deeply involved in the Bolshevik Revolution,
as were House and Wiseman. Vol. 3, p. 421 of House Intimate Papers
records a cable from Sir William Wiseman to House from London, May
1, 1918, suggesting allied intervention at the invitation of the Bolsheviki
to help organize the Bolshevik forces.
Lt. Col. Norman Thwaites, in
his memoirs, Velvet and Vinegar says,
"Often during the years 1917-20 when delicate decisions had to be
made, I consulted with Mr.(Otto) Kahn, whose calm judgment and almost uncanny foresight as to
political and economic
tendencies proved most helpful. Another remarkable man with whom I
have been closely
associated is Sir William Wiseman who was advisor on American
affairs to the British delegation
at the Peace Conference, and liaison officer between the American
and British government
during the war. He was rather more the Col. House of this country in
his relations with Downing
81 Lt. Col. Norman Thwaites, Velvet and Vinegar, Grayson Co.,
This chart shows the interlocks of the Federal Reserve Bank of New
York with Citibank, Guaranty Bank and Trust Co. (J.P. Morgan), J.P.
Morgan Co., Morgan Guaranty Trust Co., Alex Brown & Sons (Brown
Brothers Harriman), Kuhn Loeb & Co., Los Angeles and Salt Lake RR
(controlled by Kuhn Loeb Co.), and Westinghouse (controlled by Kuhn
In the summer of 1917, Woodrow Wilson named Col. House to head the
American War Mission to the Interallied War Conference, the first
American mission to a European council in history. House was
criticized for naming his son-in-law, Gordon Auchincloss, as his
assistant on this mission. Paul Cravath, the lawyer for Kuhn, Loeb
Company, was third in charge of the American War Mission. Sir
William Wiseman guided the American War Mission in its conferences.
In The Strangest Friendship in History, Viereck writes,
"After America entered the War,
Wiseman, according to Northcliffe,
was the only man who had
access at all times to the Colonel and to the White House. Wiseman
rented an apartment in the
House where the Colonel lived. David Lawrence referred to the
Fifty-Third Street house (New York City) jestingly as the American
No. 10 Downing St. . . . Col. House had a special code used only
with Sir William Wiseman. Col. House was Bush, the Morgans were Haslam, and Trotsky was Keble." 82
82 George Sylvester Viereck, The Strangest Friendship in History,
Woodrow Wilson and Col. House, Liveright, N.Y. 1932, p. 172
Thus these two "unofficial" advisors to the British and American
governments had a code solely for each other, which no one else
could understand. Even stranger was the fact that the international
espionage apparatus for many years used Col. House’s book,
Philip Dru -
Administrator, as their official code book.
"Gorodin, Lenin’s agent in China, was alleged to have with him a
copy of the book published by
Col. House, Philip Dru, Administrator and a code expert who lived in
China told this writer that
the purpose of having constant access to this book by Gorodin was to
use it for coding and
decoding messages." 83
83 Francois Coty, Tearing Away the Veil, Paris, 1940
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.
After the Armistice, Woodrow Wilson assembled the American
Delegation to the Peace Conference, and embarked for Paris. It was,
on the whole, a most congenial group, consisting of the bankers who
had always guided Wilson’s policies. He was accompanied by
Thomas W. Lamont of J.P. Morgan Co.
Albert Strauss of J & W
Seligman bankers, who had been chosen by Wilson to replace Paul
Warburg on the Federal Reserve Board of Governors
Morgan lawyers Frank Polk and John W. Davis
Accompanying them were
Walter Lippmann, Felix Frankfurter, Justice Brandeis, and other
interested parties. Mason’s biography of Brandeis states that,
Paris in June of 1919, Brandeis met with such friends as Paul
Warburg, Col. House, Lord Balfour, Louis Marshall, and Baron Edmond
Indeed, Baron Edmond de Rothschild served as the genial host to the
leading members of the American Delegation, and even turned over his
Paris mansion to them, although the lesser members had to rough it
at the elegant Hotel Crillon with Col. House and his personal staff
of 201 servants.
Baruch later testified before the Graham Committee of the Senate
Foreign Relations Committee,
"I was economic advisor with the peace
GRAHAM: Did you frequently advise the President while
BARUCH: Whenever he asked my advice I gave it. I had
something to do with the reparations clauses. I was the American
Commissioner in charge of what they called the Economic Section. I
member of the Supreme Economic Council in charge of raw metals.
GRAHAM: Did you sit in the council with the gentlemen who were
negotiating the treaty?
BARUCH: Yes, sir, some of the time.
All except the meetings that were participated in by the Five? (The
Five being the leaders of the five allied nations).
frequently those also."
This chart shows the interlocks between the Federal Reserve Bank of
New York and J.P. Morgan Co., Morgan Guaranty Trust Co., and the
Rothschild affiliates of Royal Bank of Canada, Sun Life Assurance
Co. of Canada, Sun Alliance, and London Assurance Group.
Paul Warburg (image right) accompanied Wilson on the American Commission to
Negotiate Peace as his chief financial advisor. He was pleasantly
surprised to find at the head of the German delegation his brother,
Max Warburg, who brought along Carl Melchior, also of M.M. Warburg
Company, William Georg von Strauss, Franz Urbig, and
Thomas W. Lamont states in his privately printed memoirs,
"The German delegation included two German bankers
of the Warburg firm whom I happened to know slightly and with whom I
was glad to talk informally, for they seemed to be striving
earnestly to offer some reparations composition that might be
acceptable to the Allies." 84
Lamont was also pleased to see Sir
William Wiseman, chief advisor to the British delegation.
84 Thomas W. Lamont, Across World Frontiers, (Privately printed)
1950, p. 138
The bankers at the conference convinced Wilson that they needed an
international government to facilitate their international monetary
operations. Vol. IV, p. 52, Intimate Papers of Col. House quotes a
message from Sir William Wiseman to Lord Reading, August 16, 1918,
"The President has two main principles in view; there must be a
League of Nations and it must be virile."
Wilson, who seems to have lived in a world of fantasy, was shocked
when American citizens booed him during his campaign to have them
sign over their hard won independence to what appeared to many to be
an international dictatorship.
He promptly went into a depression,
and retired to his bedroom. His wife immediately shut the White
House doors against Col. House, and from September 25, 1919 to April
13, 1920, she
ruled the United States with the aid of an intimate friend, her
"military aide", Col. Rixey Smith. As everyone was shut out of their
deliberations, no one ever knew which of the pair functioned as the
President, and which was the Vice President.
The admirers of Woodrow Wilson were led for decades by Bernard
Baruch, who stated that Woodrow Wilson was the greatest man he ever
knew. Wilson’s appointments to the Federal Reserve Board, and that
body’s responsibility for financing the First World War, as well as
Wilson’s handing over the United States to the immigrant triumvirate
during the War, made him appear to be the most important single effector of ruin in American history.
It is no wonder that after his abortive trip to Europe, where he was
hissed and jeered in the streets by the French people, and snickered
at in the halls of Versailles by Orlando and Clemenceau, Woodrow
Wilson returned home to take to his bed. The sight of the
destruction and death in Europe, for which he was directly
responsible, was perhaps more of a shock than he could bear.
Italian Minister Pentaleoni expressed the feelings of the European
peoples when he wrote that:
"Woodrow Wilson is a type of
Pecksniff who was now disappeared amid
It is America’s misfortune that our subsidized press and educational
system have been devoted to enshrining a man who colluded in causing
so much death and sorrow throughout the world.
The financial cartel suffered only minor setbacks in those crucial
years. On February 12, 1917, The New York Times reported that,
five members of the Federal Reserve Board were impeached on the
floor of the House by Rep. Charles A. Lindbergh (image right), Republican member
of the House Banking and Currency Committee. According to Mr.
Lindbergh, ‘the conspiracy began in’ 1906 when the late J.P. Morgan,
Paul M. Warburg, a present member of the Federal Reserve Board, the
National City Bank and other banking firms ‘conspired’ to obtain
currency legislation in the interest of big business and the
appointment of a special board to administer such a law, in order to
create industrial slaves of the masses, the aforesaid conspirators
did conspire and are now conspiring to have the Federal Reserve
Board administered so as to enable the conspirators to coordinate
all kinds of big business and to keep themselves in control of big
business in order to amalgamate all the trusts into one great trust
in restraint and control of trade and commerce."
resolution was not acted on by the House.
The New York Times reported on August 10, 1918,
"Mr. Warburg’s term
having expired, he voluntarily retired from the Federal Reserve
Thus the previous intimation that Mr. Warburg left the
Federal Reserve Board because he had a brother in the Secret Service
of a foreign
country, namely, Germany, with whom we were at war, was not the
cause of his retirement. In any case, he did not leave the Federal
Reserve Administration, as he immediately took over J.P. Morgan’s
seat on the Federal Advisory Council, from which post he continued
to administer the Federal Reserve System for the next ten years.