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support for a central banking system. During this panic, Warburg wrote an essay called “A Plan
for a Modified Central Bank” which called for a Central Bank, in which 50% would be owned by
the government, and 50% by the nation’s banks. In a speech at Columbia University, he quoted
Abraham Lincoln, who said in an 1860 Presidential campaign speech: “I believe in a United
States Bank.”
In 1908, Schiff laid out the final plans to seize the American monetary system. Colonel (an
honorary title) Edward Mandell House (1858-1938), the son of British financier Thomas W.
House, a Rothschild agent who made his fortune by supplying the south with supplies from
France and England during the Civil War, was Schiff’s chief representative and courier; and
Bernard Baruch (1870-1965), whose stock market speculating made him a multi-millionaire by
the early 1900’s, and whose foreign and domestic policy expertise led Presidents from Wilson to
Kennedy to seek his advice; were the two who were relied on heavily by Schiff to carry out his
plans. Herbert Lehman was also a close aide to Schiff.
President Woodrow Wilson wrote about House (published in The Intimate Papers of Col.
House): “Mr. House is my second personality. He is my independent self. His thoughts and mine
are one. If I were in his place, I would do just as he suggested ... If anyone thinks he is reflecting
my opinion, by whatever action he takes, they are welcome to the conclusion.” George Sylvester
Viereck wrote in The Strangest Friendship in History: Woodrow Wilson and Colonel House:
“When the Federal Reserve legislation at last assumed definite shape, House was the
intermediary between the White House and the financiers.” Schiff, who was known as the
“unseen guardian angel” of the Federal Reserve Act, said that the U.S. Constitution was the
product of 18th century minds, was outdated, and should be “scrapped and rewritten.”
In 1908, Sen. Nelson W. Aldrich (father-in-law of John D. Rockefeller, Jr. and grandfather of
Nelson and David Rockefeller) proposed a bill, in which banks, in an emergency situation,
would issue currency backed by federal, state, and local government bonds, and railroad bonds,
which would be equal to 75% of the cash value of the bonds. It was harshly criticized because it
didn’t provide a monetary system that would respond to the seasonal demand, and fluctuate with
the volume of trade. Aldrich was the most powerful man in Congress, and the Illuminati’s head
man in the Senate. A member of Congress for 40 years, 36 of them in the Senate, he was
Chairman of the powerful Senate Finance Committee.
In the House of Representatives, Rep. E. B. Vreeland of New York, proposed the Vreeland
Bill. After making some compromises with Aldrich, and Speaker of the House Joseph Cannon, at
a meeting in a hotel room at the Arlington House, his bill became known as the Vreeland
Substitute. It called for the acceptance of asset currency, but only in cases of emergency, and the
currency would be based on commercial paper rather than bonds. It passed in the House, 184 -
145; but when it got to the Senate, Aldrich moved against it, and pushed for further
compromises. The Aldrich-Vreeland Bill, called the Emergency Currency Act, was passed on
May 30, 1908, and led to the creation of the National Monetary Commission, which was made
up of members of Congress. Now, any monetary legislation sent to Congress, would have to go
through this group first.
The Bill approved by the National Monetary Commission was known as the Aldrich Bill, and
formed the legislative base for the Federal Reserve Act. It was introduced as an amendment to
the Republican sponsored Payne-Aldrich Tariff Bill, in order to have Republican support. It was
based on Warburg’s plan, except it would only have 15 districts; half of the directors on the
district level would be chosen by the banks, a third by the stockholders, and a sixth by the other
directors. On the National Board: two chosen by each district; nine chosen by the stockholders;