SECRETS OF THE FEDERAL RESERVE - Shattering Denial

to be treated by Jung, as was fashionable among the powerful group which herepresented. *Lord Montagu Norman was Governor of the Bank of England from 1916 to 1944. Duringthis period, he participated in the central bank conferences which set up the Crash of1929 and a worldwide depression. In The Politics of Money by Brian Johnson, he writes,"Strong and Norman, intimate friends, spent their holidays together at Bar Harbour and inthe South of France." Johnson says, "Norman therefore became Strong’s alter ego. . . ."Strong’s easy money policies on the New York money market from 1925-28 were thefulfillment of his agreement with Norman to keep New York interest rates below those ofLondon. For the sake of international cooperation, Strong withheld the steadying hand ofhigh interest rates from New York until it was too late. Easy money in New__________________________87 Carroll Quigley, Tragedy and Hope, Macmillan, New York, p. 326* When people of this class are stricken by guilt feelings while plotting world wars and economicdepressions which will bring misery, suffering and death to millions of the world’s inhabitants, theysometimes have qualms. These qualms are jeered at by their peers as "a failure of nerve". After a bout withtheir psychiatrists, they return to their work with renewed gusto, with no further digressions of pity for "thelittle people" who are to be their victims.York had encouraged the surging American boom of the late 1920s, with its fantasticheights of speculation." 88Benjamin Strong died suddenly in 1928. The New York Times obituary, Oct. 17, 1928,describes the conference between the directors of the three great central banks in Europein July, 1927, "Mr. Norman, Bank of England, Strong of the New York Federal ReserveBank, and Dr. Hjalmar Schacht of the Reichsbank, their meeting referred to at the time asa meeting of ‘the world’s most exclusive club’. No public reports were ever made of theforeign conferences, which were wholly informal, but which covered many importantquestions of gold movements, the stability of world trade, and world economy."The meetings at which the future of the world’s economy are decided are always reportedas being "wholly informal", off the record, no reports made to the public, and on the rareoccasions when outraged Congressmen summon these mystery figures to testify abouttheir activities they merely trace the outline of steps taken, and develop no informationabout what was really said or decided.At the Senate Hearings on the Federal Reserve System in 1931, H. Parker Willis, one ofthe authors and First Secretary of the Federal Reserve Board from 1914 until 1920,pointedly asked Governor George Harrison, Strong’s successor as Governor of theFederal Reserve Bank of New York:"What is the relationship between the Federal Reserve Bank of New York and the moneycommittee of the Stock Exchange?"