Chapter VI–More Worlds to Conquer
“Financiers took upon themselves, perhaps not the responsibility, but certainly the power, of controlling the markets of the world and therefore the numerous relationships between one nation and another, involving international friendships or mistrusts.”
That is part of the “deathbed” repentance of a former Governor of the Bank of England, Vincent Cartwright Vickers. Before leaving the Bank of England to see how the Money Trust conquered other lands besides England and America, some facts on the flood of current propaganda concerning the so-called socialization of the Bank of England are solely needed and long overdue.
Life magazine, a straw which indicates the current of contemporary wind, admits, “The bank retains its old powers of issuing British currency, managing the national debt and controlling credit and exchange. It has been given the new powers of investigating and dictating the policies of joint stock or commercial banks. This permits the bank to mold Britain’s economic future since commercial banks by giving or withholding credit control the lifeblood of business and industry.” This is indeed a rare statement of truth to be found in a national publication, even if it is substantially the same material as can be found in that standard authority, the Americana Encyclopedia. Then the article continues: “But in return the bank has lost its greatest power, which was its independence. Now a controlled arm of the government, it cannot, as it was accused of doing in 1931 to Labor, cause a government to fall by withholding credits to the Treasury. Nor can it pursue an international policy at odds with that of the Foreign Office, which the bank had done on many past occasions.” (Italics by the author.)
The latter quotation is purely purile propagandic prattle. If this Bank of England retains the power of issuing currency, controlling credit and exchange, as “Life” correctly says it does, then this Bank is still independent and can, in keeping with the wisdom of its founder’s philosophy, cause government to fall and enforce foreign policies at odds with those of the Foreign Office. No one who knows the Bank of England has been ruling the British government since 1664 with gradually increased power is so naive as to suppose that this bank would now suddenly allow its independence to be usurped by an outside force without at least one good big war.
The Labor government in Britain merely added the last detail to make the Financial Fascism in England complete. The Act exchanged bank stock for government stock! And at the astonishing level of $4 hundred for each $1 hundred share valuer Dalton said significantly: “The Bill brings the long established and intimate relations between the bank and the Treasury into a legal state and makes clear where ultimate responsibility rests. The government is satisfied and the stockholders should be.”
The Bank of England stockholders still get their usual 12 % under the Socialist regime, although stockholders of other institutions arc not allowed percentages approaching that figure. True to the same old banking principles, bankers who create nothing but debts and panics are better than the industrialists who create goods and services.
Moreover, the Bank of England Act does not name the present owners of the bank stock, thereby keeping a secret which has been maintained ever since the Rothschilds first bought the major portion of the stock sold. The issue of money is still based on debt, instead of national wealth, and comes into circulation as a debt to the nation. This is the real power by which international finance controls the world.
The English writer, H. T. Mills rightly says:
“From the point of monetary reform the change (to Socialization) means nothing.”
“Cavalcade,” a newspaper of London, August 25, 1945, writes:
“Our opinion on this so-called ‘nationalization’ of the Bank of England is fully confirmed by the news that London City editors have already dismissed the proposed nationalization of the Bank of England as not even a ‘palace revolution’. The Bank having been an instrument of national policy for so long, the change, it is insisted, is a nominal one only, involving little more technical than ‘fair compensation’ to Bank shareholders.”
Maybe the English Socialists do not dare endanger the existence of the international bankers after the terrible experience Germany had with her challenge.
The reason for this “socialization” is because the control of finance and credit makes easier the takeover of other industries as found in a Socialistic State.
The Old Lady of Threadneedle Street, as the Bank of England is frequently called, is still a privately owned structure of the government with its capital privately held, and its management no way directly or indirectly controlled by the State. It is now more securely than ever protected by the State. It is sovereign in its own right, and over and above the laws of England–a status admittedly attained by bribing dishonest officials of the British Isles through the years to gradually extinguish the freedom and rights of the people.
News dispatches openly admit that the Bank of England is the real source of British requests for more loans and the all-time effrontery high of Bevin’s philosophy of “let’s you and I share what you have” in the proposal that the United States pass out its Fort Knox gold to the world. Great Britain has the world’s greatest gold deposits in South Africa, yet it would be considered unfriendly to suggest she get her gold from her own territory with her own labor.
… The gold at Fort Knox was largely sent to Europe at a cheap price and purchased by America at the inflated price of $35 an ounce. This did two things: ( 1 ) Gave Europeans more dollars at America’s expense, (2) Reduced foreign debts to America by greatly raising the value of European gold upon which international exchanges are based. Now the bankers want it passed out to the world so America can do the same things over again. If Bevin had kept his mouth shut they probably would have succeeded immediately. Now they will have to wait until things quiet down and then slip it over sub-rosa.
The Bank of France, the Reichbank of Germany, and the banks of many other nations, all became other branch banks of the International Axis. With England and America, two of the most influential units on the globe because of their commerce, natural resources and far-flung possessions, in the hands of private bankers, the banking policies of other nations became affected with the very beginning.
Professor Usher stated in his Pan-Germanism of 1913: “Russia, Turkey, Egypt, India, China, Japan and South America are probably owned, so far as any nation can be owned in London or Paris. Payment of interest on these vast sums is secured by the pledging of the public revenues of these countries, and, in the case of the weaker nations, by the actual delivery of the perception into the hands of the agents of the English and French bankers. In addition, a very large share, if not the major part, of the stocks and industrial securities of the world are owned by those two nations and the policies of many of the world’s enterprises dictated by their financial heads.” He continues:
“The world itself, in fact, pays them tribute; it actually rises in the morning to earn its living by utilizing their capital, and occupies its days in making the money to pay them interest, which is to make them still wealthier.”
Since that date in 1913 the American branch of the international banking system, the Federal Reserve Bank, has large stakes abroad. It is the hand that helped guide the course of nations in their humiliating cycle–World War, overthrow of governments, worldwide economic debacle, World War.
Leon Henderson aptly wrote:
“The international bankers of the Rothschild Bleichroeder-Warburg-Mendelssohn group set up Communism in Russia, National Socialism in Germany, Fascism in Italy; totalitarianism in Poland, Lithuania, Hungary, and Esthonia; authoritarianism in Mexico and South America; economic planning in Britain and France, as economic and social instruments to repudiate debts owed to America and to salvage losses which they sustained in prosecuting war for these nations.”
The inflation of the German mark after the war has been held up as the horrible example of what will happen in the United States if we permit any increase in our volume of money, even if it be at the direction of the Government. But the entire catastrophe of postwar Germany was directed by the private international bankers with their-insane increase of Reichbank notes—an increase which, at one time stood the mark at the astronomical sum of 35 hundred billions to the dollar.
The Reichbank was itself independent and held directly responsible for the debacle. It was controlled by private individuals and not by the Government. From 1919 to the ascendancy of Adolph Hitler this bank was engineered by international forces. Their power had become such that they had the banking laws of Germany so changed as to enable them to borrow unlimited amounts with the assurance that the loans would not have to be paid. But when they destroyed the German mark, they destroyed all the mortgages, insurance policies, and other obligations to the German people. It was the suffering population that took the rap for the profit of a few … shysters.
After the war, Germany had to pay her debts to the Allies, not in their own paper, but in gold. Yet that same iniquitous treaty took practically all her gold from her. It was physically impossible under the set-up that the debt could ever be paid. Furthermore, she was deprived of the resources of her prospering colonies which were taken away. Her foreign trade was next to nothing and her foreign investments confiscated. Germany owed a huge debt to her banks, and another to the Allies. All this was her lot while being rendered as helpless as the spiteful authors of the Versailles Treaty could make her. They thought they were putting Germany in her place for all times to come.
They were so blinded by their unreasonable hatred that they could not see that they were breeding some Hitler who would some day overthrow their financial status quo and use German means to make Germany powerful once more. The man Hitler was only incidental. It could have been any lowly crackpot skilled in mob tactics–the man’s name just happened to be Hitler.
After forcing their demands on Germany, the Allies could not allow their squirming victim to repudiate her debt to them. Nor would the German banks allow the Government to repudiate her debt to them; that would have started a run that would have broken possibly every bank in the nation. No Government can ever afford to let her banks fail. This fact, together with the propaganda that such an event would turn the country over to Communism, prevented the repudiation.
The German Government did her best to pay reparations to the Allies, so much so that there was no money with which to pay interest to the banks. The banks could only be paid by further borrowings from the banks. These loans in turn had to be paid plus the accumulating interest. This was a vicious circle which necessitated still more borrowing for an ever increasing debt until the loans by the banks far outran their ability to redeem. This was the real inflation, the consequent rise in prices and the fall of the mark.
The Reparations Committee cared nothing about the value of the mark. The debt Germany owed them was entirely distinct from that which Germany owed her banks. This was the appropriate time for the international buzzards, the foreign financiers, to step in. They put at the disposal of the German Government various credits in Allied countries. By handing these over to the Allied Governments, an obligation to the international bankers would be created. That accounted for the Dawes loan of 800 million gold marks which Lloyd George later admitted was dictated by international bankers. Thus the Allies began to find themselves no longer creditors of Germany. To their profound chagrin they found this role was now assumed by their more powerful masters, the international financiers.
“Again, for the third time, Germany is threatening to sink in the sea of insolvency with all her creditors on board; and again it is the creditors who frantically work at the pumps. Their anxiety seems greater than Germany’s own, and it is, for the singular reason that in this sea only creditors can drown. If Germany sinks, she will rise again, lightened by the loss of her creditors.
“Twice the creditors, unable otherwise to keep her afloat, have cast overboard great parcels of debt, and that at first was easy to do because the debt was political. The name of it was reparations. But now, in this third crisis, there are two kinds of debt and two kinds of creditors on board, all in the same dilemma. There is what survives of the original reparations debt, and there is now, besides, an enormous private debt, owing not by the German Government to other governments but owing by the German Government, by all the German states, by German municipalities, by German banks, by German industry to private lenders all over the world. This is new debt, created in the past six or seven years. The amount of it is more than $3,500,000,000. Two-thirds of it is owing to American banks, American investors, American lenders.”
This was from the pen of Garet Garrett, writing in the Saturday Evening Post in 1931.
The Dawes Plan found that in spite of the wildest inflation in the world’s history, Germany was sound and good for a substantial loan to establish a tide of confidence. Once afloat it could bear a reparations debt burden of $625 million a year. On the undertaking to make it work the German Government borrowed $200 million gold from Great Britain, France and the United States, to begin a policy of fulfillment. Then, immediately, Germany at large launched herself upon a career of borrowing. This was the beginning of the private debt. Five years later the Dawes Plan was failing.
Mr. Lloyd George, himself a friend of the International Banker, once wrote:
“The International Bankers dictated the Dawes reparation settlement. The Protocol which was signed “between the Allied and Associated Powers and Germany is the triumph of the International financier.
“Agreement would never have been reached without the brusque and brutal intervention of the International Bankers. They swept statesmen, politicians and journalists to one side and issued their orders with the infuriousness of absolute monarchs who knew that there was no appeal from their ruthless decrees.
“The settlement is the joint Ukase of King Dollar and King Sterling. Dawes’ report was theirs. They inspired and fashioned it. The Dawes report was fashioned by the Money Kings. The orders of German financiers to their politicians were just as peremptory as those of the allied bankers to their political representatives.”
Then a second committee of international experts made an analysis of her resources and said she could afford to pay only $400 million a year. That was the Young Plan; and on the undertaking to make that plan work, the German Government borrowed $300 million from Great Britain, France and the United States to launch itself upon a second policy of fulfillment.
Such were the circumstances under which President Hoover proposed an international debt holiday. No reparations to be collected by the former Allies from Germany, no payments to be made by Europe on account of war debts to the United States Treasury, for a period of one year. The effect of this was a loan of $400-million to Germany. That was the amount she would have had otherwise to pay away on account of reparations. And besides that effect, international finance at the same time made a direct loan of $100-million to the German Reichbank to meet any emergency. The money was provided by the Federal Reserve Bank of New York, the Bank of England and the Bank of France. On this day’s work international finance heaved a great sigh. Nothing less than the bankruptcy of Germany had been averted. For several days there was a wonderful rise in German bonds, in securities of all kinds, even in commodities, the whole world over.
Frequent demands for the cancellation of war debts were heard. This reversal of policy by the bankers was quite convenient. If the Allies are to be their rivals in presenting bills for payment, the chance of the money men collecting are greatly reduced. Behind the great humanitarian and noble-soured principles with which the ears of the multitudes were charmed, the only reason for the propaganda for the cancellation of the war debts was due to that one cause. By the Hoover moratorium the debts were suspended; and by the Lausance Agreement they were abolished.
The victory for the international clan was thus completed. Had the oppressive conditions it brought not breeded a Hitler to overthrow this victory, there would never have been a World War II.
Every page of the downfall of Imperial Russia with the revolution and usurpation of Bolshevism is sordid with the activities of International Bankers. The origin of the internationalist’s hatred for Imperial Russia goes back, perhaps, to the Civil War in America. It was Russia which prevented England from sending troops into the South on which the bankers had bet their money. Following that incident written records, letters and memoirs show that the powers with the earth for their gambling board were bitter and bold in professing their supreme hatred for Russia.
From a letter to Lord Rothschild in England during the Russo-Japanese question in 1904 not only the hatred, but also the power, of these practitioners of plunder is manifest. These phrases speak for themselves: “Induce the American department of State . . all the influence we could command . . . ask the American Government to officially inform Russia . . . induce the British Government . . .” These are all found in a letter written by the American financier, Jacob Schiff, senior member of Kuhn-Loeb and Company of New York, to Lord Rothschild of London.
The setting up of totalitarian states under dictatorial governments is a favorite trick of the money masters for saddling national and international debts on the citizens of “creditor nations.” By changing the form of the government in these nations, the money masters repudiate all debts which they contracted through the former government. When a nation is bankrupt its money aristocracy simply reorganizes the government.
Thus, the American citizenry, forced to pay taxation to compensate for defaulted bonds, sustains the loss effected by changes of government in Russia, Germany, Austria, Italy and various nations of South America, and by the consequent repudiation of out. standing indebtedness.
It is significant that the original backers of Hitler were the very same as those who financed Lenin and Trotsky in Russia. They loaned money to wage war, sold their munitions and instruments of murder, and subsidized saboteurs and revolutionists to overturn institutional government.
Not only was the American Government involved in their plot, but they steadfastly refused to tender a loan to the Russian Empire. Russia would have used the loan to improve her vast agricultural acreage and her huge mineral potentialities. This would have prevented the rise of revolutionaries and the Red riders of ruination.
Meanwhile the loans made to other European nations were being consumed, not in the constructive needs of a better social order as would have been the case in Russia, but in a bigger and better armaments race. Nearly all the munitions factories were controlled at least indirectly by the international money men who at times deliberately precipitated military adventures for personal profit; every man murdered meant their precious products were being used. One of these bankers financed the Japanese in their war against Russia. Not only that, but he even delved into the unprecedented and incredible depths of intrigue by financing revolts among the Russian war prisoners in Japan.
In 1916 the Russian headquarters for the revolt received a report from a secret meeting of supporters in New York saying that the most serious problem, that of finance, had the interest of a high ranking banker in America. Immediately connected with his firm was a Mr. Warburg, a leading American banker, who represented the German Foreign Office in a meeting with Russian representatives in Stockholm in 1916.
This could only have been done by design. They deliberately and secretly plotted the overthrow of the Imperial Government and, by means of the revolution, repudiated the debts of the old regime to escape payment, and set up a system over which they had control. It followed the favorite pattern of the money powers. First, national bankruptcy, then social revolution, then repudiation of debts. It is illuminating to most of us to know that it is the American investor and taxpayer that carries most of the loss of revolutions no matter where they occur, and the subsequent repudiation of debts to America.
In 1919 a certain … banker of New York delivered a lecture at an international dinner in Buda-Pesth. In reply to a question asking how it was possible for high finance to favor Bolshevism? which is hostile to property, movable and immovable, this banker began by explaining that the … nation is the most national of all peoples and that Marxism is simply one of the weapons of its nationalism. Capitalism, he added, is equally sacred. The process of world rule is thus carried on from above by control of world goods and from below by the guidance of revolutions. An English writer, H. T. Mills, says:
“She (Russia) is entirely dominated by the monetary power, which in the first instance gave to Bolshevism the possibility of life.”
John K. Turner states in “Shall It Be Again” says: “Our illegal war in Russia was pleasing not only to Paris and London bankers, but to New York bankers as well. . . . Mr. Lamont, a partner of Morgan, was permitted to send an advance copy of the peace conditions to his Wall Street associates. While acting for the American people at Paris, Lamont participated in the organization of the China Consortium and the International Convention of Bankers on Mexico. So, along with the peace arrangements we find the beginnings of the “definite plan of international cooperation in the financing of foreign enterprises,” advanced by Pres. Farrell of the U. S. Steel Corporation, a year before.
When the Russian Empire had been supplanted by the ruthless might of a bloody state dictatorship, it was expected that all financing for that country would be done through the Soviet State Bank. But the dictatorship even took over the State Bank by the favorite method of the firing squad. Whenever things went wrong in the central bank, and they too frequently did, it was up to the OGPU, Russian secret police, to implicate someone and shoot him on suspicion of being a Trotskyist counter-revolutionary or some other first class version of a scape-goat….
These powers care no more for the misfortune of Europe than they did for the slavery of India and the poverty and wretchedness of China in previous years. They care no more for those behind the iron curtain than they did for those behind the Gold curtain. They don’t even care for the fate of America. They are perfectly willing for the United States to become thoroughly Socialized so long as they do the Socializing.
How the International Bankers branched into France is another perfect example of what the power of money utilized by the unscrupulosity of those possessed by its toxin can do. First, they had to discredit the monarchy of France. Insane financial abuses directed by the notorious Necter soon wearied a starving people to the point of revolt. During the revolution in 1793, the existing French money was destroyed by huge volumes of similar money printed in England and sold to puppets who passed it into the flow of French currency. It is said that seventeen presses and four hundred men were employed in England for the counterfeiting of money which was designed to ruin the honest money of France. From that time onward the money and most of the property of France was in the direction of the only strategists for which England is famous.
Napoleon knew what the bankers were up to all the while they were moving into position. They were gathering a reward on goods sold in France–even on the English topcoats which Napoleon’s troops wore on their invasion into Russia. Later, Napoleon retaliated with a levy on goods imported into France: He was the first to use the weapon of the levy. The British navy carried out the financiers design by preventing supplies from reaching Italy, through which Napoleon was to transport them to his forces in Russia. That is the untold story of the famous military leader’s defeat on the vast devastated snow-covered plains.
The Bank of France was founded just seven years after the start of the French Revolution, in 1800. It wielded the power of issuing all the money for the country and by means of that privilege placed an undignified tombstone on the freedom and independence of France from that day to this.
Each of the rapid succession of French Governments lived on a bank overdraft, being a line of implements in the hands of the Regents of the Bank of France. When Leon Blum was successful in overthrowing the office of Regents and established what he was pleased to call a Nationalization of banking, it was only a plain variety of window dressing such as is seen in England at the present time. The Government still had to borrow money from the Bank of France, and could borrow only so much as the private bankers who operated the institution deigned to permit the Government to have.
The Bank of France owned or controlled the leading manufacturers of France. It reached outside the country and took the dominating share in the Skoda munition factories of Czechoslovakia–Hitler’s principle objective in annexing the territory. While France, or rather her banks, ran the world’s largest munition concern, France refused to deliver machine guns to Portugal for fear they would get into the hands of the Spanish fictitiously-labelled Rebels for use against the Communist so-called Loyalists….
The fact that Spain succumbed to the power of the ubiquitous and omniscient money artists is but another proof of the universal might of finance and the treacherous forces which manipulate it.
International financiers became interested in Spain before the year 1840. The Rothschilds were anti-Carlist in the war of succession because they feared that the success of Don Carlos would mean that they would lose the famous Almaden quicksilver mines. By a bear operation on the stock exchange the Rothschilds sent Spanish securities tumbling down. The Prime Minister was forced to resign, and the Rothschilds realized a profit far beyond the amount of the bribe they had previously given him: A hot tip from Nathan Rothschild when the Rothschilds decided to bring the slump, bought his successor.
Spain is rich in mineral resources which have been exploited by foreign capital when exploited at all. Great amounts of money went out each year in the form of dividends to foreign investments. These speculations also caused a great amount of imports for Spain.
General de Rivera on his accession to power saw that foreign capital was pouring into the country at a dangerously rapid rate. The Spanish national debt was small due to her neutrality in World War I. The efficiency of the Spanish Government in managing its own financial affairs further freed it from the ravages of the war’s aftermath. Consequently de Rivera refused all offers of loans. Instead, he embarked upon a policy of vigorous economic nationalism. Foreign goods were excluded by a high tariff. Foreign capital, mostly from the United States and France, was checked. Spanish capital was governed from a central Government-owned bank. Increased activity in agriculture and industry was pursued.
Spain prospered. Foreign powers were no longer hauling away her treasures. She was dependent on neither the gold standard nor on foreign loans and goods. She did not have to fall in line with the other nations of the continent and suffer the miseries of disastrous inflation. Her price level remained regular. The nations who owed Spain found their debts increased by half due to their state of unstable price levels. General de Rivera persisted in maintaining that where a ton of mineral had been borrowed, a ton of mineral should be paid back. He refused to allow any debt repudiation.
Such staunch common sense policies greatly irritated the powers of finance controlling the other major nations. But they had to use their best diplomacy on this man de Rivera. After a time the hissing of these serpents persuaded him to reach for a big ripe apple. A loan was to be accepted from English and American bankers. His successor negotiated another loan from J. P. Morgan. The price these men wanted was deflation. Because they could not pay the price, the Spanish leaders, and later the monarchy, fell.
When the Republicans came in, the Bank of Spain negotiated a loan of about one thousand million francs from French financiers, or the French branch of the international cartel. The loan was covered by a gold guarantee which was deposited with the Bank of France at Mont de Marsan. The conditions of that loan have never been made public.
According to the latest figures available, J. P. Morgan held about $67-million of the $100-million of American capital invested in Spain. Americans would do well to remember this if they wish to know the truth behind the deception…. The international money powers and the large banks of Spain with their gold reserve were trying to beat Franco. These banks were in the hands of the “Loyalists” and made the financial guarantee of the Franco Nationalists difficult because their bills had no gold backing. The Bank of Spain, of course, refused to be responsible for the “rebel” bills. Let all who believe the late Spanish war was waged by fascists for the benefit of fascists ponder those incontrovertible facts! That the Communists whose cause was espoused by high finance did not beat Franco is not the fault of the banks.
Franco was saved only by a fundamental principle of sound finance. Because his money was backed up by the wealth of the country, and not by gold, his peseta was quoted at 1.75 francs while the “Loyalists” peseta was scarcely quoted at all, so ridiculously low was its value and so rarely was it accepted. This has been the story of how Spain was taken in and how she regained her independence. But the continuance of the events up to the present show the banks are again trying to subjugate her.
Shortly after Franco was established as leader of the new Spanish Government he was granted a $13,750,000 loan by the United States State Department. It was called here an effort to help American interests. That means, in straight language, the financial status of the privately owned branch banks of Spain. The branch of the National City Bank was closed because of the Spanish Government’s refusal to allow its officials to return. But here’s the joker in the deal. The loan was put up by various New York banking houses, but the Government Import-Export bank is held responsible. In other words, if Franco doesn’t pay off the loan, the private bankers won’t lose—they just collect from Uncle Sam. They have everything to gain and nothing to lose, but Uncle Sam, the taxpayers, stand to lose plenty and gain nothing.
The present Spanish situation in UN distinctly bears the trade mark “Made in Moscow” and proceeds because of the spineless attitude of the putty-headed One World American delegation which, failing in buying unity, will have it by heaping concession upon concession to those who keep coming back for more of the same. The fact that no one in UN dared mention the Soviet bloody intervention in the Spanish Civil War and to accuse the present Communist regimes in Europe as the only real danger for peace today, gave all the trump cards to the Soviet bloc. In this light they succeeded in presenting Franco as the only remnant of dictatorship in the world, an arch-criminal who summoned Nazi and Fascist troops to crush true democracy in his country, helped the Axis win the war, and is now the only exception in a world of freedom and justice.
This is not the issue of Spain alone, but another field of conflict between the “democracies” and Russia. Britain is interfering in internal Spanish affairs for the purpose of restoring the monarchy in Spain. The British design to give Don Juan to Spain as king has the obvious tangible advantage of fixing Spain in the British orbit, and reinforcing Britain’s shaky sway in the Mediterranean. As usual, the British are pursuing an ulterior course.
The battle between Britain and Russia for control of Spain explains most of the devious maneuvering that has gone on in the UN under the pious smoke-screen professions of horror about the Franco regime. The United Nations charter forbids any nation to interfere in the domestic concerns of another state, but that does not deter the self-styled champions of peace from hijacking Spain for themselves. The United States threw the German consuls out of this country before the late war because of interfering in American affairs. Whatever they might have done, it was less brazen than recent admitted intervention in Spain.
So powerful were the international vultures in the finance of Austria that when the battleships with which she was to fight Italy in the preliminary skirmish of World Supremacy known as World War I, these battleships were called “Rothschild Dregnaughts” by part of the European press. But when the fall of the Austrian crown came, it was the fall of Austria, not the fall of Rothschild.
The story is modeled on the same pattern as the tale of the German mark. It happened in almost the same way at almost the same time. While the crown was tottering between life and death, people continually crowded the windows of the money changers to get a glimpse of the health of the crown to see whether the flow of life had been upwards or downwards. Prices were posted in windows as each change developed.
To the people outside the condition of the crown was the same as the condition of their country. When the collapse came, the money they had saved was money lost. Many children were sent to England to overcome the effects of undernourishment. Many others, together with their mothers, worked at such jobs as brick making in order to keep alive.
When Germany invaded Austria and annexed it to the mother country, startling news in the world of money came from Austria. Baron Eugene de Rothschild, with headquarters in Paris, sued his own brother, Baron Louis von Rothschild, head of the Austrian banking establishment for $3,500,000. This made great newspaper stories; but it so happened that the 3 1/2 million dollars was the exact amount the Parisian brother had on deposit when Germany absorbed Austria. It was merely a clever way to keep the money in the family and out of the hands of a potential enemy.
When Germany was to take over the banking house of Austria, she felt herself obligated only by the business relations which Germany herself had contracted. Thus the Rothschild deposit of Louis would have been lost unless brother Eugene could take it into safe keeping for him by suing for it. It was an act of brotherly love, not of brotherly antagonism as so many propaganda sheets reported.
The four Rothschild brothers established branch banks in four different European quarters–a circumstance which helped Baron Louis of Austria before. He was once held responsible for the failure of the largest bank in the Danube region in 1931. The fall of this bank caused the failure of many smaller banks. But by transferring his personal wealth to his brothers in Paris and London, he avoided his obligations.
To pull a still further trick on Germany the Rothschild agents in the United States, Kuhn, Loeb and Company, and the Bank of Manhattan Company, were served a writ of attachment for the money and securities which these firms held. This legal action automatically prevented transfer of the money held in the name of the Austrian concern, which Baron Louis headed, to the German Government. These powers gave Hitler his first defeat. For indemnification, the only thing the German Chancellor could do was to arrest the Baron, thereby causing a swell of “bloody anti-Semitism” to be hurled at him.
She was the last of the world’s choice fruits to be plucked. Europe, Asia, Africa, the Orient and North America had all been brought in line. Now avaricious eyes turned to South America. Coffee from Brazil, tin from Bolivia, ore deposits in Chile, grain and cattle from Argentina made South America another treasure that would have to be captured and buried. Because she was so plundered is at least a large part of the story behind the unannounced fact that the 26 nation pledge against a separate armistice and peace with the Axis, signed at Washington January 1, 1942, did not contain a single important country in South America as a signatory!
Destruction of governments and the establishment and maintenance of others has been the continual procedure of the financial powers over South America. From the first American loan floated by J. P. Morgan to Mexico in 1899, through the loan to Santa Domingo in 1905, to Cuba in 1906 to Nicaragua in 1907, to Honduras in 1911, and later to Bolivia, Brazil, Peru and Columbia, this sinister fact stands out.
The United States has for years been trying to bribe the good will of South America from the Axis nations. Maybe the administration never heard of the English king who bribed the Danes. The only thing he accomplished was causing more Danes to come for more bribes. When bribes don’t work America uses threats. Thus she staged a meeting of foreign ministers in Rio to have all the good neighbors sign their names to a pact dictated by our Banker-controlled State Department. Anyone who refused would suffer the Hitler technique of economic reprisals which, in this case, meant isolation.
On September 10, 1940, here was the record of our loans to South American countries and their payments.
Bolivia had $60-million and was entirely in default.
Brazil had $360-million and was entirely in default.
Colombia had $146-million and was in default for all but three million.
Chile had $182-million and was in default for the entire amount.
Costa Rica was in default for her entire commitment of $8-million.
Cuba borrowed $125-million and still owed $42-million.
Equador received twelve million and owed twelve million.
Guatemala took five million and still owed three million.
Haiti was loaned eight million and owed the same.
Mexico had $275-million and only owed $273-million.
Panama took seventeen million and was in arrears on the full amount.
Peru was granted eighty-five million and was in default of the entire sum.
Uruguay benefited to the tune of fifty-five million and was in default of only five million of the original commitment.
Argentina had outstanding loans from America to the total of $233-million but only about one-tenth was in default. Argentina was particularly incensed at America because the American Government has a habit of making everyone except the English respect the Monroe Doctrine. The English took two small islands off the eastern coast of Argentina. England has for so long and in so many places taken defenseless territories that it is overlooked. But not by Argentina, who protested frequently to no avail. She prints stamps showing these two islands as part of her nation. No wonder she is suspicious of treachery from the London-Washington axis.
U. S. power politics lately turned again to the Argentine, trying to influence elections there, interfering with the internal affairs of another nation in violation of the United Nations charter on the old Commie charge of “fascist.” The mass of Argentine workers proved to be onto the Communist racket. They decided with Peron whom the American State Department tried to overthrow along with their Government.
Mexico. In 1922 it was realized that the real wealth of Mexico, really a Central American country, was in her expansive deposits of oil. And such an imaginary thing as a boundary line was not to keep the greed of finance from reaping to the full the benefits of the “liquid gold.” Through the medium of propaganda and with the approval of President Wilson, Americans were erroneously led to believe that President Diaz of Mexico was a tyrant and dangerous to American institutions. Because of the integrity and efficiency of Huerta, who succeeded Diaz, Americans were pushed to great lengths to secure oil leases.
Secret ambassadors chose Madero to head a revolt in Mexico, promising help in return for the lakes of oil in lower California, Madero was an honest man and refused. But Wilson knew a way of getting oil leases. He raised the arms embargo in favor of two of the meanest and most treacherous scoundrels this continent has seen, Villa and Carranza.
In 1914 Wilson ordered the American navy to sieze Vera Cruz which was the only port through which Huerta could obtain supplies for the defense of his cause from the enemies of everything sacred. This was a fatal blow. After the revolt was completed Wilson persuaded our nation to reverse itself on the Panama Canal tolls. Now American ships were taxed for the use of our own Canal in order to please England for the return favor of recognizing the revolutionary government of Carranza. From that time on, American interests in Mexico have been a constant source of diplomatic relations between Mexico and the United States.
A few years ago a six point agreement between the United States and Mexico, hailed as “a milestone in the cause of solidarity” was another piece of dollar diplomacy featuring a gallant effort to buy the friendship of our neighbor across the Rio Grande. Under the terms of the agreement Mexico promises to pay the United States in full the $40-million in so-called general and agrarian claims, although only $3-million of the total was to be paid immediately.
In return the United States has made many costly commitments. The Administration has agreed to set up a fund of $40-million for stabilization of the Mexican monetary system. The Administration has agreed to establish a $30-million credit through the Export-Import Bank for the “construction and developing of the Mexican national highways system.” The Administration has agreed to negotiate a reciprocal trade treaty with Mexico, the chief purpose of which, apparently, is to relax American restrictions on imports of Mexican oil.
Finally, the document commits the United States to a program of purchasing 6-million ounces of newly mined silver monthly from the Mexican government. This commitment means that every year, as long as the agreement remains in force, the United States will provide Mexico with upwards of $25-million in dollar exchange for metal that has no practical value as money and which will simply clutter up the vaults of the Treasury Department. Engineers in the Office of Production Management have suggested that some of the existing silver stock be used as a substitute for copper in electric wiring. That is how “valuable” the metal is as money.
Brazil, in one of the largest loans of an American finance company, received $8-million of American depositors’ money for bonds due in thirty years bearing 7% interest. These were to electrify a railroad which never has and, in all probability, never will receive the benefits of electrification. More recently, the strength and importance of such loans came to light when the American Government in its usual capacity as tool of the money changers, agreed to aid the establishment of a Brazilian Central Reserve Bank. After a conference with Bernard Baruch, international banker and Wall Street spokesman, our Secretary of the Treasury agreed to sell Brazil up to $60-million of gold for which America will make dollar exchange available to Brazil. By that deal the “powers that be” bought a portion of Brazil and by means of the dollar exchange have given themselves markets in this country for products raised by their interests in Brazil. The American farmer will suffer, perhaps to the extent of having the banks foreclose on his mortgage, but the bankers will have profitable markets in Brazil. The American farmer is a patient fellow and if he loses his farm the banks will have that, too. They win from both sides.
Colombia had American oil interests. When these were at stake the American State Department puppet-like took a hand again. A loan of $20-million had been arranged by the National City Bank of New York with the President of Colombia. Four million dollars were withheld until the demands of the American interests were met and the Barco oil concession was completely given over to Colombia.
The United States did not need oil because at the time her own fields in Texas and Oklahoma were being forced to close because of cheap South American oil produced with slave labor being shipped into the United States. To show how much the Government could do about it, we find the State Department giving information to the National City Bank of New York about the Barco oil concession. This same information was refused a Senate Investigation Committee.
Colombia saw in the proposed Latin America peace pact “a Morgan-Rockefeller scheme to weld the chains of economic slavery permanently upon the countries of Latin-America.” She saw that the greed of foreign financiers wanted terms in the peace pact which would prevent South American countries from securing arms when it became necessary to overthrow a ruler. These wars would be dangerous to American investments. On the other hand, arms for their favorite rulers could be obtained from their financial associates as was done in Venezuela and Cuba.
It is for the benefit of the bankers that America refused to allow South American countries to arm and then threaten to leave them to the mercy of the horrible Nazis unless they sign a pact to sever all relations with Germany and Italy and depend solely on our heroic generosity. When the Nye Investigation Committee brought J. P. Morgan and du Pont to Washington to talk over these deals, the lords of finance said they would be exposed if the hearings continued. So they had the politicians in Washington to whom they contributed campaign funds see to it that the Senate refused to appropriate the funds necessary for the continuance of the investigation.
Bolivia. In 1922 a loan from United States Bankers bolstered a Bolivian Government in which the citizens had lost all respect and confidence. During the negotiations the press was completely muzzled. Those who knew and objected to the loan were deported or jailed. When another loan was agreed on in 1928 even the senators of the Bolivian Government were persecuted and confined for combating the borrowing. In this way foreign financiers helped oppressive governments remain in power and financially ruin the little nations. Many unworthy and thoroughly corrupt governments have been prolonged or rescued by finances from America. The burden of debts thus caused by the loans placed a burden on the people and was too often spent for purposes unproductive and sinister.
During the investigation in which much of the South American scandals were made known, sworn evidence was advanced to show that when one of the largest loans to Peru was made, the son of the President of Peru was bribed with five thousand dollars by an agent of the international bankers in order that the banks might have the privilege of marketing some securities which time has shown to be as secure as quicksand. Debauchery in the Peruvian Government was long supported by a series of secret and unjustifiable loans.
Chile is another important South American country. It is only a hundred miles wide, but 2,620 miles long. It lies along the Western edge of the Andes mountains and therefore has mines numerous and excellent. Until nitrate was processed from air, 95 % of it came from Chile. About 70 % of the world’s iodine comes from there as a by-product of nitrate. Chile is second in the world’s supply of copper, and has huge reserves of 2 billion tons of coal. Agriculture is an important industry too.
Since an article written by Allen Haden for the Pittsburgh Press does a nice job telling of American exploitation in Chile and the consequent hostility towards the United States, let’s allow him to tell the story in pretty much his own way.
A politician in Chile told Haden, “We (meaning peddlers) cheat you in small things but for years you Yankees have been taking away our copper, nitrates, iodine, iron ore, with only small profit to Chile.” The implication was that in big things the Yankees cheated them.
Chileans claim that investments of private capital from the United States which is used by Anaconda and Kennecott in copper mining, by the Guggenheim interests in nitrate mining, and by the Bethlehem Steel Company in mining iron ore, only gives Chile the wages paid to the laborer, the price of fuel consumed, import duties on machinery and parts imported. They claim that the profits go outside the country to Yankee shareholders, and that Chile does not profit from her riches.
The minister of Finance’s report in October of 1940 to Congress states that of the $40-million value of copper exports, only a little over $13-million returned to Chile as exchange with which to pay for imports. This does not include the Government’s 33 % share of the net profit of the copper company’s operations. Thus the powers of the Import-Export banks do lots of exporting from Chile but do not help the importation very much. The good neighbor of Chile feels that her wealth is being plundered by American banking interests; that the big forks of the steam shovel are devouring the meat and leaving her the bone.
Venezuela. The corrupt U. S. power politicians working under the Good Neighbor policy inspired a revolution in Venezuela with lend-lease money from U. S. taxpayer’s pockets. Shortly after this a U. S. announcement was made by the revolutionary government of new oil concessions to U.S. firms. This didn’t get into the newspapers. American taxpayers also paid to keep it out of the press.
Americans despise all dictators, such as Hitler, Stalin, Franco. But they despise more, if possible, political sneaks and liars who smuggle arms and ammunition into a peaceful country to start civil war and to murder innocent people in order that the apostles of avarice might get a few more oil concessions.
A nationally known magazine in articles written by Ben Marcin give an authentic history of the tragedy of India. Reliable histories and books such as “The Way of the Aggressor” substantiate the awful truths.
India is a British colony but is almost as large in area as the United States and contains one fifth of the world’s population. Her wealth and industry are many and great. They had long made India the envy of commercial pirates. In industry she led the world. The quality and beauty of her precious stones and pottery, her works in metals, her architectural and engineering feats, her great trade on land and sea, her large number of business men and capable financiers made her one of the most prosperous nations in the world. The prize was too large to pass up.
The wealthy House of Sassoon with the power of its riches, position and matrimonial affiliations among the British nobility and the Rothschild family, invaded highly civilized India. The privately owned British West India Trading Company owned, controlled and operated by the Sassoons, rented trading posts at Madras, Calcutta and Bombay. They fortified them in spite of contracts to the contrary. When the 146 British prisoners were taken as hostages merely to hold the Trading Company to its contract, plans went wrong and all but 23 of the prisoners died in what is now known as “The Back Hole of Calcutta.”
This started a war in which the superior British armaments were easily victorious. Clive, the British General and employer of the Trading Company, led the forces that enabled the Sassoons to take over the most wealthy portion of India. The company prospered and paid such high dividends that its stock rose to the fantastic price of $32,000 a share. But the British kept, and still keep, the population in shocking poverty and weakness principally through excessive taxation and the might of the sword.
When Britain first offered India “independence” the rest of the world was at a loss to see why India did not accept. The simple reason was that the offer of independence was merely political; Britain offered governmental control to India but kept all her stolen riches. India knows that political independence without economic independence means nothing. It only gives Britain an excuse to release a big batch of lies about her concern for the welfare of other nations–a release the bankers who rule Britain and the United States would make the American State Department and a kept press instruments in promulgating.
That India finally did accept “Independence” came only after long and numerous negotiations in which she struggled for the best bargain she could get and then accept it as the lesser of two evils. Surely no one will argue with the assertion that her liberty is far from the kind of which Patrick Henry spoke.
An investigation into the crimes of the early Trading Company resulted in its charter being revoked and the Government of India put into the hands of the English in India rather than at London. This means that the same international House of Sassoons, who hold a monopoly on opium traffic, rule and their old policies prevail. First, however, they forced the British Government to pay dearly for their charter rights supposedly relinquished–a charter that had paid for itself many times over. In addition, the price was added to the public debt of India to be redeemed principle and interest out of the taxes placed on the already exploited people.
Because of their marriage into the House of Rothschild, the Sassoons were given all the English finance they needed to perpetuate the gigantic swindle and history’s most malodorous example of inhumanity in business practice.
If the Allies were really fighting for the “four freedoms everywhere” their own territory of India was a good place to give tangible evidence of their sincerity.
With the presentation of the oppression of the Orient by the lawless iniquity of international finance, nearly all the population of the world will have been portrayed as mere chattels of a few financial lords who are, like the masses they bleed, private individuals. China was once a relatively prosperous nation…. Certainly they used modern forms of money many centuries before the establishment of the Bank of England. Legend has it that paper money was used in China before the Christian era. Records show it to have been in use in the ninth century. In the fourteenth century records reveal that Chinese paper money was as good as gold. When the Ming dynasty came into power it issued paper money, but accepted only metal in payment of taxes, thereby concentrating silver and gold into its hands. Uncontrollable issues of paper money followed and the plague that ravished China brought on a disastrous inflation.
Then private bankers, those pirates of plutocracy, began their issuance of paper money, which together with copper, became the money of the country. Much of their gold and silver was used in the arts and the trades; now placed in sealed vaults where it is of no more use than it was as ore in the mountains. But when China traded with other nations she had to deal with their gold and silver dollars because their paper was often good only in the vicinity of the bank that issued it. Furthermore, paper money was so cheap that it took too much of it to allow the Chinese to obtain very many gold or silver dollars for use in foreign trade.
As early as 1905 American bankers were speculating in China where cheap labor would permit them to make more profits on manufactures produced there. Loans by bankers began in 1911. After World War I an international consortium was formed which would attend exclusively to all foreign financing to be undertaken in China. In this consortium signed by individual bankers of various nations, America has more finance available for Chinese investment than has all the other banking houses put together. Thus American International bankers have a virtual domination of Chinese financing. America for Americans profits the bankers, but Asia for the Asiatics does not. Silver legislation in this country has injured China immeasurably. By our silver policy, this metal is bought from China with Bank of England paper notes which the Chinese are forced to use as a base for their money. At any fixed time this paper can be declared worthless and exploitation will again be rife.
The bank-controlled loans in China account for the increase in Chinese goods and textiles in this country and the consequent harm to our own textile workers. The same-also accounts for the propaganda whereby sympathy was solicited for their war with Japan years before Pearl Harbor. In fact, if Japan did not want American and European interests controlling China, nor using her as a base to eventually control Japan herself, she probably would not have gone to war with China.
Japan could without war dominate the Orient just as the United States dominated the American continent. The countries who want America for Americans, Europe for Europeans did not logically want the Orient for Orientals. The strongholds of Singapore, Hongkong, Canton, Shanghai, with army and naval forces sent by governments to protect the interests of private bankers and taken at their own risks, were reasons enough to cause Japan to fear the encroachment of foreign domination. Knowledge of international financial intrigue simplifies much.