Rothschild Money Trust

141
XXIII.
Deflation of 1937
'"The principal factor of success in political is the secrecy
of its undertakings; the word should not agree with the deed."
—From Protocol 7.
It should always be remembered that the Federal Reserve
System was created for the avowed purpose of supplying the
country with an adequate volume of currency and credit. At the
time of its consideration and adoption the commerce of the
country was in the process of recovery from the panic of 1907.
This panic was, as has been stated, a manipulated panic, precipitated
by the central reserve banks of New York City, and primarily
due to the fact that we did not have a sufficient volume
of money in circulation; the system was changed for the purpose
of supplying such volume.
There was universal demand for such change, led by the
bankers of New York City. So eager were they for a change of
system that the elder J. P. Morgan and the elder Geo. F. Baker
(president of the First National Bank of New York) testified
before the Pujo Committee that there was a "Money Trust" and
that it was in the public interest that it be controlled. This admission
was at the time a matter of great surprise; the purpose
of it is now better understood. In the light of subsequent events
and of our present knowledge, we are justified in suspecting
that the panic of 1907 was brought about for the purpose of establishing
the system we now have.
I prefer to believe in the integrity and sincerity of Woodrow
Wilson. I supported him for the presidency, in ignorance, however,
of the fact that his campaign was financed by Jews. Despite
my bias, I must admit that the Wilson Administration was
responsible for the deflation of 1920.
President Wilson appointed Paul Warburg, a member of the
Rothschild banking firm, as deputy governor and later governor
of the Federal Reserve System. Warburg was the real author
of the act and was also author of the Aldrich bill. He openly advocated
a central bank, and publicly testified that the system
could be transformed by administration into a central bank,—
and he proceeded to so transform it. He proposed the amendment
that gave the system the power of deflation, which President
Wilson approved. Warburg, however, resigned before the