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The Glass bill differed in making the Secretary of Treasury chairman and the Comptroller of the
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x P Isaac Mayer Wise founded the (Reform Judaism) Union of American Hebrew Congregations in 1873. S z P ԍ Frank S. Mead, Handbook of Denominations in the United States 128 (Revised by Samuel S. Hill 1990).
Albert Pike reacted with disgust in 1873 to the name JAHBULON: "No man or body of men can make me
accept as a sacred word, as a symbol of the infinite and eternal Godhead, a mongrel word, in part composed of the
name of an accursed and beastly heathen god, whose name has been for more than two thousand years an appellation
x P of the Devil."P S z P ԍ Stephen Knight, The Brotherhood 2367 (1984).P When Stephen Knight sought to interview otherwise cooperative Masons on JahBulOn, the
x P x interviews were rapidly brought to a close.N S z P ԍ Stephen Knight, The Brotherhood 236 (1984).N
x P In Latin America the Jesuits were suppressed in Mexico in 1873.G Sٍ Edmond
Paris, THE SECRET HISTORY OF THE JESUITS 74 (1975).G
x P In Latin America the Jesuits were suppressed in Brazil in 1874.G Sٍ Edmond
Paris, THE SECRET HISTORY OF THE JESUITS 74 (1975).G
x P (
Isaac Mayer Wise founded the (Reform Judaism) Hebrew Union College in 1875. S z P ԍ Frank S. Mead, Handbook of Denominations in the United States 128 (Revised by Samuel S. Hill 1990).
Texans experimented with appointed judges and they decided to abandon the appointive system shortly
after the end of the first Republican Governor Edmund Jackson Davis's regime. The last Texas Supreme
Court decision to be ignored was the semi-colon case which held the 2 to 1 vote for Richard Coke as
Governor to be contrary to a semi-colon in the Texas Constitution. Davis appointed 35 District judges and
x P the Texas Supreme Court.B Sٍ JOHN HENRY BROWN, II HISTORY OF TEXAS 453-454 (1893).B Frank X. Tolbert described the outcome of the Coke v. Davis election
and the Governor's resort to "his" appointed Texas Supreme Court: "In the 1873 gubernatorial election Coke scored
an astounding 85,549 to 42,663 victory over Davis, who immediately regretted the whole thing and got his
x P 0 Semicolon Court to declare the election illegal." Sٍ AN INFORMAL HISTORY OF TEXAS 226 (1961); THE REPUBLICAN PARTY OF TEXAS 29 (1965) ("The
members of the Supreme Court, all Republican judges of the Davis stamp, soon rendered a decision favorable to
Davis and the existing administration.").
A review of the Davis administration by John Tackett noted: "The inaugeration of Coke came only after
conflict. Davis had influenced the State Supreme Court judges he appointed to declare the election null
x P P and void because of a technicality in the wording of the constitution."_ Sٍ "Early Republican Governor A 'Dictator'", SAN ANTONIO EXPRESS NEWS (Nov. 7, 1982)._
By common agreement of the Texas Bar, no decision of the semi-colon court may be cited as authority
in a Texas Court. At Baylor Law School the Texas Reports have taped on them the words "Semi-Colon." Such was
the Texas experience with the last appointed Supreme Court.
Presiding Judge Wesley Ogden, along with Judges Moses B. Walker, J.D. McAdoo, Paul Casdorph,
obliged Davis with a favorable decision that remains unenforced to this day: "(T)he radical republicans had
no intention of surrendering office without protest. Plans were instituted almost immediately to forestall
x P X the inevitable. The Republicans took refuge in their own courts."5
Sٍ THE REPUBLICAN PARTY OF TEXAS 29 (1965).5
Davis requested President Grant to send U.S. troops to Texas to preserve his Governorship. Grant refused by
saying: "(W)ould it not be prudent, as well as right, to yield to the verdict of the people as
expressed by their ballots?" Soon after the Davis debacle, the Texas Constitution was amended to provide
for an elected Court. T.R. Ferenbach summarized this action: "Judgeships...were made elective, including
the bench of the supreme court. No judge who had to run for reelection regularly was expected to decide
x P cases against the popular feeling, on some new-fangled point of law."" Sٍ LONE STAR 435 (1968)."
x P `" In Latin America the Jesuits were suppressed in Equador and Columbia in 1875.G Sٍ Edmond
Paris, THE SECRET HISTORY OF THE JESUITS 74 (1975).G
x P # In 1875 Mary Todd Lincoln was committed to an asylum after an insanity trial.L
S z P ԍ Shelley Ross, Fall From Grace xiv (1988).L
In March of 1875 provision was made for calling a Texas constitutional convention. The proposal was
x P H& approved by the voters on August 2, 1875 by a margin of 69,583 to 30,549.@ Sٍ R. THRALL, A PICTORIAL HISTORY OF TEXAS 437 (1883).@ During the 1875 Texas
Constitutional Convention, the argument was made that the people were incompetent to select good judges
although they were admitted to be competent enough to elect a governor who would be capable of
appointing a good judiciary. Mr. Flourney retorted that if the people were not capable of selecting
comptent judges "then they should cast about for a form of government which did not originate with the h) 0*0*0* Ԍpeople and rest upon their authority. The experience of the people of Texas had shown that the elective
x P judiciary was the best the state had ever had."J Sٍ S. MCKAY, THE TEXAS CONSTITUTIONAL CONVENTION OF 1875 (1930).J
x P X The 1875 Texas Constitution was ratified on February 15, 1876 by a vote of 136,606 to 56,652.9 Sٍ L. WORTHAM, V A HISTORY OF TEXAS 87 (1924).9
x P In 1875 the Theosophical Society was founded by Helen Petrovna Blavatsky.z S z P ԍ She also founded the Hermetic Society. Eustace Mullins, The Curse of Canaan 103 (1987).z One of the basis teachings was
x P that all world religions had "common truths."T S z P ԍ Constance Cumbey, Hidden Dangers of the Rainbow 44 (1983). Blavatsky developed the society after "a sojorn
in India; the Indian chapters later came under a cloud because of the arrest of its members for the practice of
z P homosexuality." Eustace Mullins, The Curse of Canaan 103 (1987).T Acheivement of "illumination" was one of the Theosophist's
x P x goals.] S z P ԍ Constance Cumbey, Hidden Dangers of the Rainbow 44 (1983).] Thomas Alva Edison signed the group's pledge of secrecy in 1878.] S z P ԍ Constance Cumbey, Hidden Dangers of the Rainbow 44 (1983).] After seven years of embarassment
in India, Blavatsky headed for England where she promoted her books and organization. Theosophy introduced
reincarnation, karma $ "Although the global manipulators have the power to suppress revolts, it is easier to prevent
them...Their modus operandi is to change our religious world view...we would then be inclined to assist
our global masters in the matter of enslaving our brothers and neigbours, rather than resisting the utter
and evil bondage which they impose....In the Hindu worldview, good people are simply never born into
poor bodies. It is considered futile for the rich to help the poor since their sufferings are believed to be
good for them and anyone who interupts this suffering is merely slowing the progress of the poor toward
being born into better circumstances... Karma, in other words, is a system of enslaving the poor and then
blaming them for their troubles...In summary, their rotten system works as follows: First, a socialist
revolution we never asked for is financed entirely on our tab, incurring unnecessary and unpayable debt .
The next phase is to blame us for the debt incurred and impose upon us a sense of guilt . Step number
three is to demand even further dictatorship by governments and banks, to manage this crisis incurred
by governments and banks. In the final move, we huddle in overtaxed dwellings, nibbling overtaxed
macaroni, believing we're clever enough and powerful enough to have brought these troubles on
F (
ourselves." R.T. Kenney, Winston's Journal, Vol. 1, No. 3 23 (January 1992) (emphasis in original)., planes of consciousness, bodily auras,
F chakras and other pagan concepts.o $ F ԍ Paul deParrie and Mary Pride, Ancient Empires of the New Age 184185 (1990).o Dr. Richard Hodgson was assigned by the Psychic Society of
England to discredit Helen Blavatsy when she began intriguing for a pro-Russian Revolution in India
F against British rule.: $ Anton Chaikin, Treason in America 464 (1985).: Blavatsky and Rudolph Steiner spoke of an esoteric "wisdom tradition" that ran
F x back through the Rosicrucians to the Cathars and Templars.{ $ F ԍ Michael Baigent, Richard Leigh and Henry Lincoln, Holy Blood, Holy Grail 80 (Dell 1983).{ H.P. Blavatsky identified the Maitreya
to be the same figure as Hermes (also known as Cushthe father of the idoltrous Babylonian rulergod
F Nimrod.V $ F ԍ Gary D. Blevins, 666: The Final Warning 261 (1990).V There exists the Great White Brotherhood which supports the concept of a one-world
F government.> $ Michael Howard, THE OCCULT CONSPIRACY 164 (1989).> The Theosophists claimed they were under the supervision of "The Great White
Brotherhood." Until 1975, the society and its teachings were kept secret for 100 years. One of its
F `" publications was called "Lucifer" for many years. $ Cumbey at 46.
In 1876 Secretary of War William Belknap resigned after his first and second wife were discovered to
F $ have taken kickbacks.L $ F ԍ Shelley Ross, Fall From Grace xiv (1988).L
Western and southern farmers in the 1870s and 1880s formed organizations including the Grande and
the National Farmers' Alliance which spread out from Texas eastward and nortward and peaked in about
F ' 1890. From 1877 to 1884 farmers and workers formed the Greenback Labor party.N $ ARTHUR S. LINK AND RICHARD L. MCCORMICK, PROGRESSIVISM 13 (1983).N Mugwamps in
the eastern and midwest cities proposed the civil service system in response to corruption and bolted
F h) from the nomination of James G. Blaine in the presidential election of 1884.N $ ARTHUR S.
LINK AND RICHARD L. MCCORMICK, PROGRESSIVISM 14 (1983).N Two groups urged h)
0*0*0* reform of city governments. Businessmen and professionals in cities, such as William Strong, mayor of
New York from 1895 to 1897, resented the corruption and inefficiency of city machines during the
depression of the 1890s. Hazen Pengree served as mayor of Detriot from 1895 to 1897 and attempted to
F X welfare services, regulation of trolley companies and redistribution of the tax burden.N $ ARTHUR S. LINK AND RICHARD L. MCCORMICK, PROGRESSIVISM 29 (1983).N
From 1880-1890 M2 leveling period.
In 1880 James Garfield became the first President publicly known to have an affair while
F @ married.K $ F ԍ Shelley Ross, Fall From Grace xv (1988).K President James Garfield was elected in 1880. He was shot by Charles J. Guiteau on July
2, 1881. The President died of his wounds two months later. Guiteau's reason was an order from "the
F Deity."n $ F ԍ American Heritage Magazine, 199 Things Every American Should Know 7 (1989).n Guiteau was a Roman Catholic.l $ F ԍ Robert Shea and Robert Anton Wilson, The Illuminatus! Trilogy 164 (1975).l Chester A. Arthur was his VicePresident.V $ F ԍ Gary D. Blevins, 666: The Final Warning 200 (1990).V
By 1880 eight Popes had condemned Freemasonry. Pope Clement XII in 1738 condemned masonry as
incompatible with Catholic belief "as indeed it was." He condemned its secrecy as an unlwaful practice that
F
would make possible the subversion of nations and governments.Q $ F ԍ Malachi Martin, Keys of This Blood 527 (1990).Q His Papal Bull aimed at the
F abolition of Freemasonry was the first of many Papal Bulls.O $ F ԍ H.L. Haywood, More About Masonry 190 (1948).O Poland became the classic fulfillment
F of Pope Clement's warning.Q $ F ԍ Malachi Martin, Keys of This Blood 527 (1990).Q Between 1738, when Pope Clement issued his condemnation, and 1815,
F H
some 316 Lodges dotted Poland. The Great Powers of the world "agreed at the Congress of Viennaz $ metternich was its architect and it set up a political and religious sytem with a dogma that rulers rule
by divine right. Metternich sent out word that Freeemasonry must be destroyed. he may be judged to have
F been "the most powerful and the most successful AntiMason in history..." H.L. Haywood, More About
F X Masonry 191 (1948).z
to ratify, under international law, the then accomplished fact of the obliterations of Poland from the face
F of the geopolitical world."Q $ F ԍ Malachi Martin, Keys of This Blood 528 (1990).Q Pope Bendict XIV proscribed the works of Voltaire and reiterated his
F predecessor's "condemnation of the rapidly proliferating Freemasonry."f $ F ԍ Nicholas Cheetham, A History of the Popes 236 (Dorsett Press 1992).f Pope Leo XIII issued his
famous encyclical Humanum Gensus in 1884. Leo XIII classed Freemasonry as a grouping of secret
societies in the "kingdom of Satan" and like the Greek Orthodox Church half a century later stated it
wished "to bring back after eighteen centuries the manners and customs of the pagans." He said Masonry
was subversive of Church and State, condemned it for its rejection of Christian revelation, for its religious
indifferentism (the idea that all religions are equally valid) and warned of its use of figurehead leaders and
F P the subtle use of "doublespeak."N $ F ԍ Stephen Knight, The Brotherhood 247 (1984).N He urged bishops to "tear away the mask of Freemasonry, and let
F it be seen for what it really is."N $ F ԍ Stephen Knight, The Brotherhood 247 (1984).N Leftwing governments under Depretis and Crispi were egged on in
their harassment by masonic and other anticlerical groups. A riot erupted when the remains of Pius IX
F were transfered from St. Peter's to the basilica of San Lorenzo Fuori le Mura.f $ F ԍ Nicholas Cheetham, A History of the Popes 270 (Dorsett Press 1992).f Condemnations also
followed in 1894 and 1902.
F The Jesuits were banished from France in 1880.G $ Edmond Paris, THE SECRET HISTORY OF THE JESUITS 74 (1975).G
In 1881 on July 2 President Garfield was shot by a "mentally disturbed office-seeker."
In 1884 Grant was left penniless when Grant & Ward Investment House collapsed.
F The Fabian Society was founded in 1883-84 $ The cofounders were all Freemasons (Annie Beasant, George BenardShaw, Lord Haldane, Ramsey
F MacConald, Sidney Webb and Beatrice Webb). Eustace Mullins, The Curse of Canaan 103 (1987). "with the aim of spreading socialist ideas among the
educated public and ultimately establishing a socialist government." Its prominent members have included
Bernard Shaw, Sidney and Beatrice Webb and Annie Besant. The Fabian Society included H.G.
F Wells $ F ԍ The overall direction and tactical strategy for the New Age may be found in The Open Conspiracy:
F Blueprints for a World Revolution by Wells. Cumbey at 55. , who stated that "revolutionary Socialism" would be converted to "Administrative
F Socialism." $ Epperson at 194. George Orwell also belonged to the Fabians. $ Epperson at 194. His book 1984, was titled 100 years
after the foundation of the Fabian Society.
Single investors such as Sir George Goldie, Sir William Mackinnon and Cecil Rhodes competed in
Africa along with the private partnership banking houses such as the Barings and the Bisschopheims. The
control of capital came into the hands of "joint stock investment trust companies founded in particularly
large numbers from 1884 to 1890, which could wield an influence and pressure quite unknown in the
F H& earlier period."W $ Frederick C. Dietz, A POLITICAL AND SOCIAL HISTORY OF ENGLAND 611
(1927).W
Banks and government developed "a much closer relationship" in Europe. "In Germany the Deutsche
Bank was so intimately associated with the government that it was hard to tell where the bank, a private
F h) joint stock company, began and where the government left off." $ Dietz at 611. h) 0*0*0* Ԍ In 1884 Grover Cleveland was elected in spite of the campaign disclosure of his illegitimate child by
F Maria C. Halpin.K $ F ԍ Shelley Ross, Fall From Grace xv (1988).K
F X In Latin America the Jesuits were suppressed in Costa Rica in 1884.G $ Edmond
Paris, THE SECRET HISTORY OF THE JESUITS 74 (1975).G
The Fabian Society was founded in 1884 to establish the same classless, godless, socialistic oneworld
F society envisioned by Marx. $ F ԍ John A. Stormer, None Dare Call It Treason 21 (1964); A Manifesto, Fabian Tract No. 2, 1884,
Quoted in Shaw, Man of the Century. The difference between liberals (including orthodox Socialists) and
Communists has been stated to be that the former agree to the fundamental principle that majority rule
shall be loyally accepted so long as it respects the basic rights of minorities. "The Communist, however,
rejects this principle. His party doctrine is Communist rule or general ruin. To him an opposition victory
F at the polls is simply the signal for conspiracy, sabotage and secret subversion."P $ F ԍ Allan Nevins, New York Times 9 (May 2, 1948).P The difference
between a Communist and a Socialist is that a Communist is in a hurry: "All that distinquished many a
Fabian Socialist from the local Communist gentry was the lack of a Communist Party card and a
F (
preference for indirect over direct action." $ Freeway at 51.
In 1886 Henry Edward Manning, the Archbishop of Westminister, England, warned that the work of
the Communist International was "the work of secret, political societies, which from 1789 to this day have
been perfecting their formation." He said the conspiracy was "now a power in the midst of the Christian
and civilized world, pledged to the destruction of Christianity and the old civilization of Europe." In that
same year a scholar, named Abbe Joseph Lane, said he had discovered a plan "to disorganize at one blow
Christian society and the beliefs and customs of the Jews...then bring about a state of things where,
F h religiously speaking, there will be neither Christian or Jew."U $ F ԍ A. Ralph Epperson, The New World Order 117 (1990).U
Beginning in the late 1880s, the Progressive Reform Movement launched an attack on
"Misrepresentative Government." In December 1979 Virginia Graham of the Congressional Reference
Service noted that Progressives observed "the apparent dominance of economic and political interest groups
over legislators." Hence, they "advocated changing the existing political structure to give more power to
F the people at the expense of political parties, legislators, and interest groups." $ Id. at 1. It was a movement
"national in scope." The most fertile ground for planting the ripening seeds of democracy was found in the
F Western States where the bulk of Initiative, Referendum and Recall provisions exist. $ Graham at 2. Both partisan
and nonpartisan leagues supported the I & R.
The Second Socialist International was founded in Paris on July 14, 1889. This gathering was founded
F to influence the workers of the world through penetration, organization, and control of labor unions.Y $ F ԍ Des Griffin, Fourth Reich of the Rich 83 (1989).Y
F X Isaac Mayer Wise founded the (Reform Judaism) Central Conference of American Rabbis in 1889. $ F ԍ Frank S. Mead, Handbook of Denominations in the United States 128 (Revised by Samuel S. Hill
1990).
In 1890 money (old M2) upswing.
In 1890, Senator John Sherman of Ohio authored an act that outlawed every "contract, combination
in the form of trust or otherwise, or conspiracy in restraint of trade or commerce..." He explained that it
was not intended as an attack upon Big Business. Rather it aimed at "the unlawful combination, tested
by the rules of the common law and human experience, that is aimed at by this bill, and not the lawful
F ! and useful combination.": $ H. Wayne Morgan, UNITY AND CULTURE 20 (1971).:
F (# In September 1890, Bryan switched from imperialism $ On August 8, 1890, Bryan said: "The contest of 1900 is a contest between democracy on the one hand
and plutocracy on the other." Williams at 152. to the trusts. Business consolidations
increased rapidly from 1895 to 1905 "at the pace of nearly 300 a year." McKinley hesitated. "Privately
F $ McKinley discussed strengthening the Sherman Antitrust Act and pledged action after the election."P $ F ԍ R.Hal Williams, Years of Decision 153 (1978).P
In 1890 Annie Besant "became the chief agitator in the English textile industry, which was centered
F ' in Lancashire."S $ F ԍ Eustace Mullins, The Curse of Canaan 103 (1987).S Fabian Annie Besant came to power in T.S. after a series of scandels. The U.S.
Theosophical Society gained respectability among the upper class "not at all diminished by the sex scandels
that so freely circulated about its leaders." She had a similar personality and beliefs as freesex advocate
F h) Margaret Sanger, the founder of Planned Parenthood.k $ F ԍ Paul deParrie and Mary Pride, Ancient Empires of the New Age 184 (1990).k The beautiful Annie Besant was a h) 0*0*0* F suffragist. $ Freeway at 51. Two Boston newspapermen were devotees of Blavatsky and Besant and offered to help
F Webb. $ Freeway at 125. Besant was re-elected to the London School Board. $ Freeway at 130. She was a King's Hall lecturer. $ Freeway at 467.
After Blavatsky died, Besant ran the organization with prosperity until an attempt was made to bring forth
F X the antichrist. In 1929 Krishnamurti dissolved the Order of the Star (his worldwide supporters). $ Cumbey at 47.
F After this fiasco, the torch was passed to Alice Bailey.1 $ In her book From Bethlehem to Calvary (p. 30), she wrote: "The Illuminati have ever led the race
forward; the knowers, mystics and saints have ever revealed to us the height of racial and individual
F possibilities." Texe Marrs, The Day They Take Our Money Away 29 (1990).1 In 1922 Lucifer Publishing Company was
F established. It was changed to Lucis Publishing Company in 1923. $ Cumbey at 49. A letter, dated August 17, 1984, was sent by Lucis Trust to an inquirer. It stated that
the Lucis Trust used the same name since its incorporation in 1923. "The publishing company, however,
was called at first the Lucifer Publishing Company as authored by H.P. Blavatsky." The letter added:
"Lucifer as here used means 'bringer of light or the morning star' and has no connection whatsoever with
Satan as conventional wisdom would have it." Revelations 22:16 states: "I Jesus...am the root and offspring
F of David, and the bright and morning star." A. Ralph Epperson, The New World Order 80 (1990). Both Madame Blavatsky and
F Annie Beasant were "heavily involved with Freemasonry."X $ F ԍ Gary H. Kah, En Route to Global Occupation 89 (1991).X Alice Bailey wrote that the Masonic
Movement "is the custodian of the law, it is the home of the Mysteries and the seat of initiation...The
methods of Diety are demonstrated in its Temples and under the Allseeing Eye the work can go forward.
It is a far more accult organization than can be realized, and is intended to be the training school for the
F coming advanced occultists." $ F ԍ Gary H. Kah, En Route to Global Occupation 89 (1991); Alice Bailey, The Externalization of the
F Hierachy 511 (1957).
The Socialist Fabian Society changed their symbol from a turtle (slow, gradual change) to a wolf in
F (
sheep's clothing at the suggestion of Bernard Shaw. $ Epperson at 194. In MAN AND SUPERMAN, Shaw endorsed a
F
master race. $ Id. at 154. The Fabian Society was formed by young intellectuals.C $ Herbert Heaton, ECONOMIC HISTORY OF EUROPE 747 (1968).C Sidney Webb, the founder
of the Fabian Society, created the London School of Econmics. It was early funded by the Rockefeller
Foundation, the Carnegie United Kingdom Trust Fund, and Mrs. Ernest Elmhirst--the widow of J.P.
F H
Morgan partner Willard Straight. $ Epperson at 195. Students have included Joseph Kennedy Jr., John Kennedy,
Robert Kennedy, Jr. (son of Robert Kennedy), David Rockefeller, Sen. David Moynihan and Eric Severeid
F (CBS).! $ Epperson at 195-196.!
During the Middle Ages the Jews were placed into an inferior social position because they were
F 0 prohibited from owning land.B $ Ernest Van Den Haag, THE JEWISH MYSTIQUE 147 (1969). B One of the Fabian Society's objectives set forth in 1887 was "the
"emanicipation of land...from individual and class ownership..." It works for "the extinction of private
F ownership of property in land."C $ Epperson at 194; Rose Martin, FABIAN FREEWAY at 18-19.C Social handbooks lay down high-taxing, high-spending policies as an
essential preliminary to the imposition of full Socialism to crush free enterprise with burdens of
every sort so it will be glad to throw in the sponge and quit. Tract No. 127 of the Fabian Society referred
to "Taxation is the chief means..." and said that to a Socialist the best of governments "is that which spends
F the most." $ Fahey at 98. A leading American Jewish propoent of Socialism, Morris Hillquit, whose real name was
F Misca Hilkowicz, wrote in SOCIALISM SUMMED UP (1913), that high taxes $ In Austin, Texas, it was reported in 1992 that the Austin I.S.D. school tax rate rate increased by 220%
since 1986. , shorter hours, shorter
F p weeks and freedom to strike would make owners of businesses glad to be taken over by the State. $ Fahey at 95.
Professor Laski, a Jewish Socialist from the London School of Economics, described "the weapon of
taxation" and Bernard Shaw noted that "Compulsory labour, with death as the final penalty, is the
keystone of Socialism..." and that opposition in a Socialist state would have to be an underground
conspiracy working in secret "until it is strong enough for an open test of strength." In turn, the
F X ruling clique is required to protect itself with a gigantic spy service. $ Fahey at 98. The system of spying can be traced back at least to the time of Sparta when the Helots
were numerous as slaves.
Socialism has utter contempt for personality and drowns human freedom in an ocean of materialism.
It takes away private property and reduces the average citizen to the sub-human, animal status that the
F x Talmud says it is their destiny to occupty.+ $"What, after all, is Soviet Communism? It is the triumph or climax of the philosophy of materialism,
the denial of the existence of God or the world of the spirit. Man is considered exclusively as an animal."
F 7 Louis F. Budenz, The Techniques of Communism 7 (1954).+ "Finance-Capitalism begins the work. Socialism completes
F @ it." $ Fahey at 99. Behind the facade of Democracy lies dominance by private financial interest rules. Given the
invention of a national debt, the domination is permanent and does not depend upon which party is in
office. All parties also need money and the Money Power often finances both sides. Legislatures become
marionette shows with puppets moved on wires from behind the scenes. "What masquerades as Democracy
throughout the world is, therefore, in great part, government by certain financial groups more or less
F (# inspired by Rousseauist-Masonic naturalist theories." $ Fahey at 100.
The society's methods include research, publications and seminars. In 1889 the Fabian Essays were
published. The Labour Representation Committee was founded in 1900--later to become the British labour
F H& Party. It is now a specialized research agency of the party. $ C.D.H. Cole, FABIAN SOCIALISM (1943); N. Bosanquet and P. Townsend, LABOUR AND
EQUALITY (1980); Anne Fredmantle, THIS LITTLE BAND OF PROPHETS (1960); Norman I.
MacKenzie, THE FABIANS (1977). Between 1892 and 1913 the membership
of British unions rose from 1.6 to 4.1 million. Workers read the works of Henry George, William Morris,
John Ruskin and Karl Marx. Some bought red ties and read Robert Blatchford's peppery socialist
newspaper called the Clarion. Webb built the British Labour Party and one of his last actions "was to move
the Austrian School of 'conservative' economics--von Hayek and all--to the 'Fabian' London School of h)
0*0*0* F Economics. $ UGLY TRUTH at 155. A letter written by John D. Rockefeller indicated he personally undertook to finance a
F cite for the hotbed of Communismthe London School of Economics & Political Science. $ F ԍ Emanuel M. Josephson, The "Federal" Reserve Conspiracy & Rockefellers 35 (1968) (the 1141927
letter was published by Lord Beveridge).
The University of Chicago began in 1892 as the chief American project of the Fabian Society. It was
launched with funds from the Rockefeller, Schiff and Field families. President McKinley's assassin was
sheltered by Emma Goldman at New York's Henry Street Settlement House. An assassin's bullet ended
McKinley's protectionism.
F @ On February 29, 1892 the U.S. Supreme Court held that the U.S. was a Christian nation.M $ F ԍ Holy Trinity Church v. U.S., 143 U.S. 471.M
In Texas the first discovered instance of the mention of direct democracy was in 1892 in the Texas
Populist Platform. Roscoe C. Martin wrote in 1970:
"In the troublous times which best populism toward the end of the century, the 'old
guard' reformers, unwilling to see the third party expire without making heroic efforts
to resuscitate it, resorted to proposals for yet another subsidiary organization, a 'Direct
Legislation League of Texas.' Direct legislation and the imperative mandate (the recall)
had long been recognized as a means of restoring all power to the people and therefore as
F being 'pure democracy of the Thomas Jefferson kind.'"4 $ THE PEOPLE'S PARTY IN TEXAS 156 (1970).4
The Progressive party picked up the direct democracy torch from the Populist Party. In 1892 the
national convention of the Populist (People's) Party, meeting in Omaha, Nebraska, went on record as being
F 0 in favor of initiative and referendum. $ MASS REPORT at 33. However, the party apparently failed to practice internally what
it advocated externally. Carle Lloyd, a disgruntled party member, complained: "The party that makes itself
the special champion of the initiative and referendum tricked out its very life and soul by a permanent
National chairman--something no other party has! Our Initiative and Referendum had better begin, like
F P charity, at home!"> $ RICHARD HOFSTADTER, THE AGE OF REFORM 190 (1955).>
The movement for direct legislation (a term used to denote both initiative and referendum) was based
upon at least four basic notions:
"First: a deep-rooted distrust of the State Legislatures as not truly representing and
obeying the popular will, because they fail to pass bills which the people desire, and do pass
bills which the people do not desire.
Secondly: Anger at and suspicion of wealth, and especially of great incorporated companies
which, by their influence over legislators, officials, and party organizations, are believed
to oppress the people and to enrich themselves at its expense.
Thirdly: A desire on the part of certain sections of opinion to carry certain particular
measures which--so these sections believe, could be carried by popular vote more easily than
by pressing them on the legislatures.
Fourthly: A faith in the wisdom and righteousness of the people which expects from their
direct action better work for the community than can be had from persons chosen to represent
them. It is thought that a sort of mystical sanctity not susceptible of regulation dwells in
the whole people. Its sacramental quality is deemed to be weakened by an attempt to transmit
it, as if it were a wire so imperfectly conducive that the electric current was lost in
F % transmission."5 $ LORD BRYCE, MODERN DEMOCRACIES (1921).5
The progressive movement's purposes were summarized by William Allen White:
"For it will be seen that each one of these movements is a leveling process, a tendency
to make money, capital, property, wealth, or financial distinction count for nothing more h) 0*0*0* Ԍ than an indirect influence in the ballot box. Each of these innovations, the secret ballot,
the primary, and the reformed party, is a step towards democracy--a step towards the
Declaration of Independence and away from the Constitution, which so feared majority rule
F X that the majority was hedged about with checks and balances at every possible point."Y $ "The Growth of Democracy in America," XIII THE ANNALS OF AMERICA 247 (1976).Y
White suggested that the battle was against the government of the few dating from the Federalist 1787
Constitution:
"The value of the initiative and referendum depends upon the point from which it is
viewed. In certain quarters politics is considered the science of government of the many
by the few. Also a government is considered excellent when it protects investment, when
it makes the right of contract more important than the welfare of citizens, when it protects
vested rights even after they become vested wrongs. In those quarters the initiative and
referendum, which is coming into American government as surely as the secret ballot came,
will be deemed a dangerous menance to our institutions.
Certainly it is a departure from the idea of a government by the few which inspired
the fathers of the federal constitution when Chief Justice John Marshall gave the federal
F judiciary the final vote on all laws passed by state or national legislatures."o $ WILLIAM ALLEN WHITE, "The Growth of Democracy in America," XIII THE ANNALS OF
AMERICA 249 (1976).
o
Various explanations of the progressive movement have characterized it as a Western phenomenon.
George E. Mowry explained it as "the ideological fissures that seperated urban and rural progressivism.
To the extent that the more rural and traditional progressives distrusted a state bureaucracy and the
F expert, they relied upon the ethical and intellectual qualities of the masses."5 $ THE ERA OF THEODORE ROOSEVELT 81 (1958).5 John D. Hicks, C. Vann
Woodward, and Russel B. Nyes saw progressivism as "a popular crusade---a broadening of agrarian
protest--to restore democracy and curtail the power of the large corporations, particularly the railroads and
F P banks, which had oppressed the farmer."M $ ARTHUR S. LINK AND RICHARD L. MCCORMICK, PROGRESSIVISM 4 (1983).M Benjamin parke DeWitt, Charles A. and Mary Beard,
Vernon Louis Parrington and Harold D. Faulkner, saw it as "the latest triumpant episode in the old
F conflict between ordinary Americans, on the one side, and wealth and privilege on the other."N $ ARTHUR S. LINK AND RICHARD L. MCCORMICK, PROGRESSIVISM 4
(1983).N
Legislators who represented immigrant constituencies in the large cities of the East and Middle West gave
F p critical support to the progressive reforms. $ Id. at
7.
The word "progressive" means "a person believing in moderate political and social improvement by
governmental action; esp. cap: a member of a Progressive Party (as in the presidential campaigns of 1912,
F 1924, and 1948) in the U.S."3 $ MERRIAM-WEBSTER DICTIONARY 555 (1974).3 In its broad sense it "was the way in which a whole generation of
Americans defined themselves politically and responded to the nation's problems at the turn of the
F century."N $ ARTHUR S. LINK AND RICHARD L. MCCORMICK, PROGRESSIVISM 3 (1983).
N The battle has been termed one which pitted the standpat "Reactionaries" against the
insurgent "Progressives." The Reactionaries were those who controlled Representative Government and
delighted in telling the Progressives that they had no chance. J.H. Denison described the two classes in
EMOTIONAL CURRENTS IN AMERICAN HISTORY: "On the one hand were those who felt that more
power should be given to the people, and more laws framed to resist the power of wealth and privilege,
and on the other, those who distrusted the people, who felt that too much had already been done to
hamper the great corporations, and that the prosperity of the nation depended on restoring power and
privilege to the dominent class."
Until the end of the 19th century, it was part of the myth of America that poverty was non-existent
or the result of failings such as to laziness or drunkeness. The corollary was that "anyone dissatisfied with
their lot could pick up stakes, go west, cut a farm out of the wilderness and make a decent living." Out
of 30 million in the national work force some 11 million were in agriculture. In 1893 historian Frederick
Jackson Turner "delivered a celebrated paper" which "pointed out that the continuous line of frontier land
F ' had disappeared."R $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 31 (1964).R
In 1893 a love affair between a Kentucky Congressman and a student helped ignite the woman's
F h) sufferage movement.K $ F ԍ Shelley Ross, Fall From Grace xv (1988).K h) 0*0*0* Ԍ The panic of 1893 "was brought about by the competition between the Jewish House of Rothschild and
F the Jewish rival firm of Baring Brothers."V $ F ԍ George Armstrong, Rothschild Money Trust 43 (1940).V
The Populist agitation of the 1890s "repelled" middle class farm owners, storekeepers, clergymen,
lawyers, doctors, teachers, salesmen and others who stood between the few with immense wealth and the
masses of working poor. Some of the Populist's planks adopted by the Democratic Party under William
Jennings Bryan in 1896 included "proposals for inflating the currency to help debtors against
creditors. Interpreting this program as revolutionary, the urban middle classes voted McKinley into office."
After it became apparent that the people of farm areas could not prevail politically, radicals were
discredited and the movement "shaved its whiskers, washed its shirt, put on a derby and moved up into
F the middle class." $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 51-52 (1964) (quoting
William Allen White, an Empora, Kansas newspaperman).
Lina Morgenstern was one of the forerunners of Women's Liberation. She organized the first
International Woman's Congress in 1896 which attracted 1,800 delegates. She was active in the peace
F
movement and was a protege of Geiger.I $ Rabbi Marvin S. Antelman, TO ELIMINATE THE OPIATE 48 (1974).I
In 1897 a Hungarian Jew named Theodore Herzl called the first World Zionist Council at Basel,
Switzerland.
In his speech opening the Zionist Congress of 1897 at Basle, Dr. Mandelstein, Professor of the
University of Kiev, stated: "The Jews will use all their influence and power to prevent the rise and
prosperity of all other nations and are resolved to adhere to their historic hopes, i.e. to the conquest of
F 0 world power." $ F ԍ Le Temps, September 3, 1897. The Jewish Rabbis teach that all nonjewish people must be excluded
from sharing the new world or taking any part in it; they can be tolerated only as a despised herd. Traktat,
Gittin, Fol. 57, Babylonian Talmud.
In 1897 Yale Professor William Laughlin prepared the Report of the National Monetary Commission
for Paul Warburg which detailed the content of the 1913 FRA. (19--173). Because John D. Rockefeller had
contributed some $40 million to the University of Chicago, the new banking bill was drawn up by a couple
F of associates there after the Aldrich Act was initially defeated.; $ JULES AKELS, THE
ROCKEFELLER BILLIONS, p. 285.;
South Dakota was first to propose the initiative and referendum in 1897. The amendment provided
for the petition of 5% of the electors, an immunity from the veto power of the Governor and also applied
F 8 to muncipalities.j $ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 359 (1909); South Dakota Laws, 5th Sess., Chap.
XXXIX.j It was then adopted in Utah by a majority of nearly three to one in November
F 1900.? $ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 360 (1909).? In Oregon it was adopted by a majority of about eleven to one in June of 1902.?
$ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 361 (1909).? Nevada
F then followed in adopting I & R in the general election of 1904.C $ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 362-363 (1909).C It was then adopted in Missouri in
F the general election of 1908 by a margin of over 30,000 votes.? $ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 363 (1909).? Montana's I & R was approved by the
F X people in the general election of 1906.?
$ CHARLES S. LOBINGIER, THE
PEOPLE'S LAW 363 (1909).? The movement started in the trans-Missouri region but was
F "neither sectional nor partisan."? $ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 365 (1909).? It has great importance: "The movement on the whole is one of the
most significant of contemporary political tendencies in America, and furnishes a subject for profitable
F study and thoughtful consideration."? $ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 366 (1909).? While most states have used constitutional referendum "from
the very beginning of their establishment as states," the other forms of direct legislation grew more slowly.
After the adoption of I & R in South Dakota (1898), Utah (1900) and Oregon (1902), nineteen other states
"followed suit between 1906 and 1918. There was a long pause from 1918 to 1959, but since 1959 four
F more states have added the initiative."^ $ AUSTIN RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND THEORY
69 (1978).^
Thirty nine states have some form of statutory referendum and twenty-four states have the liberal
version that requires a referendum whenever a stipulated number of voters submit a petition requesting
F # one.^ $ AUSTIN RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND THEORY
70 (1978).^ Twenty-two states have statutory initiative; 15 have the direct form (Alaska, Arizona, Arkansas,
California, Colorado, Idaho, Missouri, Montana, Nebraska, North Dakota, Oklahoma, Oregon, Utah,
Washington and Wyoming) and 7 require the legislature to act upon the proposal within a reasonable time
before it is voted on by the electorate (Florida, Ohio, Maine, Massachusetts, Michigan, Nevada and South
F ' Dakota) or indirect statutory initiative.^ $ AUSTIN RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND THEORY
70 (1978).^
The constitutional initiative is the most powerful form of direct legislation which permits a petition
with sufficient signatures to place a proposed constitutional amendment on the ballot without legislative h) 0*0*0* Ԍaction. Fourteen states have constitutional initiative (Arizona, Arkansas, California, Colorado, Florida,
F Illinois, Michigan, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oklahoma and Oregon).^ $ AUSTIN RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND THEORY
73 (1978).^
All fifteen states with the direct legislative initiative are in the West; and all ten states with the
F complete set of direct legislation devices are in the West.^ $ AUSTIN RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND THEORY
73 (1978).^ From this one can conclude on a directional
basis that direct legislation is a concept foreign to the East. When efforts have been made for national I&R
F in Washington, those in favor of the idea get good marks in the polls but little support from the pols. $ In 1977 a national statutory initiative bill was introduced by Sen. James Abourezk
(D.--S.D.) and a similar bill was introduced by Rep. James Jones (D.-Okl.) and Rep.
Guy Vander Jagt (R.--Mich.) in the House. The bill would have exempted constitutional
amendments, declarations of war and calling up the militia. For the first two years
after passage the law would have been subject to repeal by a two-thirds vote of the
full membership of both houses and thereafter by an ordinary majority of Congress.
The petition would have required signatures equal to 3% of the ballots cast in the most
recent presidential election and would have been required to be signed by 3% of the
voters in at least ten different states. The Abourezk bill was promoted by Initiative America headed by
Roger Telschow and John Foster. Polls showed it was favored by 57% of the nation's adults with only 21%
opposed. AUSTIN RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND
THEORY 75 (1978).
Between 1898 and 1976 there were 539 constitutional initiatives placed on state ballots. Of that total
186 or 35% were approved. In the same period there were 685 statutory initiatives of which 261 or 38%
were approved. The heaviest users of the initiative process were in Western States: Oregon (207),
California (159), North Dakota (137), Colorado (119) and Arizona (117). In that time period only Illinois
F ` and Wyoming had no initiatives.a $ AUSTIN RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND THEORY
76-77 (1978).a
In the 1890s Mayor Hazen Pingree of Detriot attacked public utility companies. Later, as Governor of
Michigan, he spent two terms battling big business. New York Governor Theodore Roosevelt sponsored
F laws to impose francise taxes on public utility companies.R $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 53 (1964).R In Wisconsin a millionaire Senator
lumberman by the name of Philetus Sawyer, offered former District Attorney and Congressman Robert
M. La Follette a fee in a case presided over by Follette's brother-in-law. When La Follettte interpreted the
offer as a bribe and dennounced Sawyer, his political career was attacked. By 1900 he was elected governor
of Wisconsin by a plurality of 102,000 votes and "entered office determined to give the public greater
control over the government." Governor La Follette supported the direct primary over delegate nominating
conventions and later I & R. Part of his program involved strong government regulations "where
F monopolistic power was inevitable."R $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 53 (1964).R La Follette first sought direct primaries and a tax on the physical
values of railroad properties (rather than gross earnings). In his first term the two proposals were
defeated in the State Senate. In his second term he won the fight for a direct primary and obtained the
railroad tax but not regulation. In 1904 he campaigned by naming those opposed to his program and said:
F "Put the men who have betrayed you on the retired list."R $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 54 (1964).R By the time La Follette moved on to the
U.S. Senate in 1906, he had successfully passed a strong railroad commission, a lobbyist registration bill
and competitive exams for civil service positions in the state. The "Wisconsin Idea" and success of the
average citizen coping with ruthless business combines spread for "a happier and better state to live in,
that its institutions are more democratic, that the opportunities of all its people are more equal, that social
F justice more nearly prevails, that human life is safer and sweeter.."R $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 54 (1964).R
In March, 1900, McKinley signed the Gold Standard Act which made gold the standard currency and
F X ended the silver controversy.P $ F ԍ R.Hal Williams, Years of Decision 152 (1978).P
In 1901 on September 6 President McKinley was shot by an anarchist.
McKinley was shot on September 5, 1901 by Leon Czolgosz "a twentyeightyear old unemployed
laborer and anarchist." McKinley began to recover and then died on September 14 of misdiagnosis and
F spreading internation infection.P $ F ԍ R.Hal Williams, Years of Decision 157 (1978).P "I don't believe one man should have so much services and another
F man should have none," said Czolgosz.n $ F ԍ American Heritage Magazine, 199 Things Every American Should Know 7 (1989).n Czolgosz was a Roman Catholic.l $ F ԍ Robert Shea and Robert Anton Wilson, The Illuminatus! Trilogy 164 (1975).l Theodore Roosevelt
F ! was mcKinley's Vicepresident.V $ F ԍ Gary D. Blevins, 666: The Final Warning 200 (1990).V
F (# In 1901 J.P. Morgan formed the United States Steel Corporation, the "first billiondollar trust."P $ F ԍ R.Hal Williams, Years of Decision 153 (1978).P
F $ The Jesuits were banished from from France in 1901.G ! $ Edmond Paris, THE SECRET HISTORY OF THE JESUITS 74 (1975).G
In February of 1902 T.R.'s attacked J.P. Morgan's great financial combination--the Northern Securities
Company. Morgan was surprised because until then the Sherman Act had been used to "check labor-union
activity." T.R. named Oliver Wendell Homes to the Supreme Court who was "a leading advocate of more
flexible constitutional interpretation." Although the high court did rule in favor of the government, Holmes
F h) dissented.U " $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 73-74 (1964).U Later T.R. moved against the meat-packing trust and filed some 40 antitrust actions.R # $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 74 (1964).R h) 0*0*0* T.R. told the Union League Club in Phildelphia in January 1905, after being relected by 7.6 million to 5
million for his opponent, his views on corporate wealth:
"Neither this people nor any other free people will permanently tolerate the use of vast
power conferred by vast wealth, and especially by wealth in its corporate form, without
lodging somewhere in the Government the still higher power of seeing that this power, in
addition to being used in the interest of the individual or individuals possessing it, is
also used for and not against the interests of the people as a whole...No finally satisfactory
result can be expected from merely State action. The action must come through the Federal
F Government."R $ $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 76 (1964).R
The potsmoking Madame Blavatsky and an associate named Karl Keller, founded the Order of the
Templars of the East (Ordo Templi Orientis) in 1902. Ihe order claimed it could communicate in nine
degrees the secrets of Freemasonry, the Rosicrucians, the Illuminati, the Order of the Holy Grail, the
Knights of the Holy Ghost and the Holy Sepulchre. The key was sexual magic (Phallicism). In the 1960's
there was a Lodge of this same order in Los Angeles called "The Process Church of the Final Judgment."
F A male witch was attracted to the Lodge. His name was Charles Manson.] % $ F ԍ William Josiah Sutton, The Illuminati: 666 120122 (1983).]
F In 1902 William Hinds wrote American Communities. He listed 35 organizations that had adopted
communist principles. He said: "The first step out of communism was taken when 'mine and thine' were
applied to husband and wife; then followed naturally an exclusive interest in children; then the desire to
F h accumulate individual property for their present and future."a & $ F ԍ Rev. Clarence Kelly, Conspiracy Against God and Man 38 (1974).a
In 1902 Lenin wrote: "Conspiracy is so essential a condition of an organization of this kind that all
F other conditions...must be made to conform to it."X ' $ F ԍ John A. Stormer, None Dare Call It Treason 16 (1964).X Communism teaches that man is without soul,
spirit or free will. Marx taught that man was an evolutionary animal without significant individual value
or eternal life. Man is determined by his environment. The class war would replace capitalism with
socialism. Under socialism the Communist party would work to establish communism. The proletariat had
F to achieve control of the entire earth.X ( $ F ԍ John A. Stormer, None Dare Call It Treason 19 (1964).X Lenin said: "The bourgeoisie will sell us rope, and then we
F shall let the bourgeoisie hang itself."e ) $ F ԍ Quoted by Sen. Phil Crane, Congressional Record (January 3, 1985).e
An extended article was written by Emily Cranford titled "The United States of Europe" in 1903 that
F appeared in the Fortnightly Review.J * $ F ԍ Scott Nearing, United World 117 (1945).J
In the Concave of 1903, Emperor Franz Joseph of Austria had the privilege of vetoing any popeelect
he did not like. Despite the majority vote of the Cardinal Electors, he vetoed Italianborn Mariano Cardinal
Rampolla Del Tindara. The true motive for the veto was that Rampolla "had joined the Lodge of
F Freemasons."Q + $ F ԍ Malachi Martin, Keys of This Blood 678 (1990).Q "It was received with indignation, but Rampolla not only failed to be elected Pope but
was replaced as Secretary of State under the new pontiff by the Spanish Cardinal Merry dal Val. At the
F x seventh ballot the choice fell on Giuseppe Sarto, Cardinal Patriarch of Venice." , $ F ԍ# \ P[ ,Q iP# Nicholas Cheetham, A History of the Popes 274 (Dorsett Press 1992).
Louis Brandeis stated on March 18, 1903: "It is needed that public opinion be aroused, and that good,
honest honorable men be drafted into service as our office holders. We need intelligent public opinion. It
doesn't mean the periodic, spasmodic indignation at wrong. That won't give us good government."
Progressives, spurred by the examples of Johnson and La Follette "to believe that government could
help the people to protect itself against the economic aristocracy," dominated whole states. Where
governorships were not won, the reformers nontheless won measures to enact the direct primary, initiative
F % and referendum, tax reforms and provisions for regulatory commissions.R - $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 57 (1964).R
The "Father of I & R" in the United States was William S. U'Ren of Oregon. His interest in I & R
F ' began with his reading about the Swiss use in the nineties.6 . $ LINCOLN STEFFENS, UP-BUILDERS 286 (1909).6 In 1905 the Hon. W.S. U'Ren addressed
the national American Convention of suffragists on the subject of I & R. Ida H. Harper stated: "The
convention was much impressed by this innovation, as the suffragists had long struggled against the h) 0*0*0* Ԍ F refusal of the legislatures to submit their question to the voters."9 / $ V THE HISTORY OF WOMAN SUFFERAGE 136 (1970).9 Contrary to the normal policy
of considering only subjects relating directly to women and children, the convention passed a resolution
F affirming "its belief in I & R as a needed factor in the progress of true democracy."9 0 $ V THE HISTORY OF WOMAN SUFFERAGE 136 (1970).9
By 1905 the Jewish movement was split with Herzl wanting to accept the British offer of space in
Uganda East Africa. Russian Jews insisted that Israel be located in Palestine.
The limitation of the amounts and uses of money in elections was a major weapon of the progressives
to limit the power of corporations and money: "By 1905 at least three relatively effective laws had been
passed in the several states, and before a federal law was passed by the sixty-first Congress practically
F every progressive-dominated state had such legislation on its statute books."F 1 $ GEORGE E. MOWRY, THE ERA OF THEODORE ROOSEVELT 81 (1958).F
In 1905 the Texas legislature provided by law: "Whenever delegates are to be selected by any political
party to any state or county convention by primary election or primary convention, or candidates are
instructed for or nominated; it shall be the duty of the chairman of the county or precinct executive
committee of said political party upon application of ten per cent of the members...to submit at the time
and place of selecting said delegates any proposition desired to be voted on by said voters and the delegates
selected at that time shall be considered instructed for whichever proposition for which a majority of votes
F are cast."{ 2 $ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 359 (1909); Tex. Gen. Laws, 1905, 1st Called Sess.
Chap. XI, sec. 142.
{
F Sidney Webb came to America in 1888. In 1889 his book, Socialism in England, was circulated at
Harvard and other universities by the American Economic Association. By 1905 the Rand School of Social
Science at New York and the Intercollegiate Socialist Society had been formed by American Fabians. It
F was created under the direction of Jack London, Upton Sinclair and others.c 3 $ F ԍ Rene Wormser, Foundations: Their Power and Influence 143 (1958).c The first president of
F the Society was Robert Morss Lovett "a man with a total of 56 Communist front affiliations..."c 4 $ F ԍ Rene Wormser, Foundations: Their Power and Influence 143 (1958).c
Chapters of the Socialist Society were formed at Harvard, Princeton, Columbia, New York University and
F P the University of Pennsylvania.X 5 $ F ԍ John A. Stormer, None Dare Call It Treason 23 (1964).X American adherents included John Dewey, Walter Rauschenbusch
F (theology), Walter Lippman (government and press), and Felix Frankfurter (U.S. Supreme Court).X 6 $ F ԍ John A. Stormer, None Dare Call It Treason 23 (1964).X
F The name was later changed to The League for Industrial Democracy.c 7 $ F ԍ Rene Wormser, Foundations: Their Power and Influence 143 (1958).c
John Maynard Keynes said after the London Fabian meeting meeting with the Bolseviks in 1905: "The
F 8 only course open to me is to be buoyantly Bolshevik."5 8 $ Epperson at 195. Walter Lippman was the first to introduce him to America and helped arrange the
F publication of The Economic Consequences of Peace (1920). Keynes advocated big government and deficit
F spending. He was a homosexual. Fabian Freeway at 187.5
Up until 1906 the Democratic Party had not been ruled entirely by the large interests and the money
changers. After that year both parties became the same and it made no difference since slogans used were
F X the sole difference.? 9 $ DR. R.E. SEARCH, LINCOLN MONEY MARTYRED 75 (1935).?
From 1906 onward, Wilson thought he might at any moment die. On May 28, 1906, Wilson, then
President of Princeton University, "awoke to find he was completely blind in the left eye, a fact undisclosed
F x to the world." : $ F ԍ Ferdinand Lundberg, Cracks in the Constitution# \ P[ ,Q iP# 296 (1980). Under the terms of Wilson's will, the files of Dr. Francis X. Dercum of Philadelphia,
F @ a nuerologist who attended him from 1906 to 1919, were destroyed. ; $ F ԍ Ferdinand Lundberg, Cracks in the Constitution# \ P[ ,Q iP# 297 (1980).
F Wall Street also backed Wilson. In 1906 George Harvey, President of the Morgan-controlled Harper's
F ! Weekly, suggested Wilson for President. < $ Skousen at 18. During Roosevelt's first term he was advised by Hanna,
Aldrich, George Perkins of the House of Morgan, A.J. Cassatt of the Pennsylvania Railroad and James
F (# Stillman8 = $ "The financing of loans to sovereign governments is, of course, one of the richest trades known, and
one most eagerly sought for by great moneylenders." Matthew
Josephson, THE POLITICOS 626 (1938). His father was "well-to-do but had suffered reverses." Stillman
entered business at the age of 16 with a position in the cotton business. Frederick Allen, THE GREAT
PIERPONT MORGAN 8 (1989 Ed.). He was narrow-eyed, ridgid in manner and wore the "cold smile of
a Japanese statesman." After retiring he did not know how to enjoy himself: "I have never in all my life
done anything I wanted, and cannot now." Matthew Josephson, THE ROBBER BARONS 336 (1934).
Rockefeller's brothers-in-arms, members of the Standard
Oil family, included Archbold, Pratt, Stillman and Vandergrift. Matthew Josephson, THE ROBBER
BARONS 318 (1934). Stillman became fast friends with William
Rockefeller while on the board of directors of the Chicago, Milwaukee & St. Paul Railroad. He admired
Standard Oil's hiearchic and centralized controls--much
like the Catholic Church--and modeled his bank after it. "He bought Standard Oil stock and became one
of the family." Through his bank Rockefeller funds flowed to the
new gas, copper and steel companies and later into Harriman's railroad operations. City bank became
known as the "Standard Oil Bank" and "was the machine through which their greatest exploits were
carried out." Matthew Josephson, THE ROBBER BARONS 399 (1934). Stillman once said Ned Harriman
was "not a safe man to do
business with." Stephen Birmingham, OUR CROWD 188 (1967). The Rockefellers, through Stillman,
dominated a constellation of banks which included the National City,
Hanover, Farmers' Loan and Trust, Second National and United States Trust. Matthew Josephson, THE
ROBBER BARONS 400 (1934). In April of 1893, President Cleveland sent Daniel Lamount to see Stillman
about a gold exchange but Stillman
rebuffed him. Matthew Josephson, THE POLITICOS 527 (1938). The bankers furnished the gold to the
government "but, in order to do so, quietly presented their Legal Tender for redemption at the New York
Sub-Treasury, obtained the gold from the Government, and reloaned this same gold in effect to the
Treasury in Washington...In a few weeks the effect of the loan was lost." Matthew Josephson, THE
POLITICOS
541 (1938). In 1894 Cleveland's Secretary of the Treasury went to Morgan to borrow $50 million to buy
foreign gold. According to Stillman it was he who cabled Europe for $10 million in Standard Oil gold and
got another $10 million from other sources. Matthew Josephson, THE ROBBER BARONS 414 (1934). The
bankers had loaned the government money to purchase gold and then used the conversion privilege to
draw more gold. The government gold bonds were obtained at 104, offered by the syndicate (Morgan,
Stillman and Belmont) at 112 and rose to 123 on the market with
Morgan's backing. Matthew Josephson, THE ROBBER BARONS 415 (1934). When the income tax was
proposed around 1894, Stillman told Lamount: "It is an unjust discrimination." Matthew Josephson, THE
POLITICOS 554 (1938). In January 1896 Stillman loaned money for the current speculations of both
Whitney and Lamount. He urged acceptance of the Morgan offer--in which he was a partner. Matthew
Josephson, THE POLITICOS 627 (1938). In the Spring of 1901, at the age of 31, Baruch organized the
Amalgamated Copper Company to do for copper what Rockefeller had done with Standard Oil. William
Rockefeller and James Stillman were among those advertised as sponsors of the company. Bernard
Baruch, MY OWN STORY 126-127 (1957). In Theodore Roosevelt's 1904 campaign, the largest
contributions came from Frick, Harriman, Morgan, Stillman, George J. Gould, H.H. Rogers, Archbold and
H.B. Hyde (the notorous head of the Equitable Life Assurance Society). Matthew Josephson, THE
ROBBER BARONS 450 (1934). Among those locked up in 1907 by Morgan in his library were Stillman,
Hepburn, Baker and Perkins. John K. Winkler, MORGAN THE MAGNIFICENT 267 (1930). At a meeting
on October 24, 1907, Morgan, E.H. Harriman, James Stillman, Henry Frick and others created a $25
million pool to eliminate the panic. Gordon Thomas and Max Morgan-Witts, THE DAY THE BUBBLE
BURST 363 (1979). Stillman ranked third behind Morgan and Baker and "wielded his power through the
biggest bank in the country, the Rockefeller's National City Bank, with its quarter of a billion deposits."
George Wheeler, PIERPONT MORGAN & FRIENDS 297 (1973). In reaction to rumors he was against
the Glass bill,
Stillman notified his banks not to oppose the bill. Gabriel Kolko, THE TRIUMPH OF CONSERVATISM
240 (1967). 8 of the Rockefeller group but "they were never quite sure that it sank in."H > $ Russel B.
Nye, MIDWESTERN PROGRESSIVE POLITICS 229 (1959).H
By 1906 T.R. could refer to writers of political exposes "who reminded him of Bunyan's Man with the
Muck-rake who, when offered a celestial crown, 'would neither look up nor regard the crown he was
offered, but continued to rake to himself the filth of the floor.' T.R.'s label--'muckraker'--stuck. It was
F ' cherished, indeed, as a title of honor."R ? $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 58 (1964).R The editor of "McClure's" assigned Ida Tarbell to do a series
on the Standard Oil Company. "The end product was a damning indictment, for it left no doubt that
F ( Rockefeller's corporations had corrupted governments, extorted privileges and crushed competition."R @ $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 59 (1964).R
h) 0*0*0* Ԍ During the "muckraking" period, Ida Tarbell exposed Senator Aldrich's illegal activities in the
"American Magazine" and produced a definitive history of Rockefeller's Standard Oil. It was shown that
funds advanced from the National City Bank (of Kuhn, Loeb and Company) were crucial in financing the
F X gigantic expansion by Rockefeller.B A $ H.S. Kennan, THE FEDERAL RESERVE BANK 107-108 (1967).B Tarbell described the poverty Aldrich's workers. The Senator was
exposed as a partner in two of the largest corporations--the tobbacco trust formed with Duke as its head
and the rubber trust led by Rockefeller and Guggenheim. The great mergers were accomplished by a
"brilliant young financier named Bernard Baruch, who was just coming into prominent on Wall
F x Street."> B $ H.S. Kennan, THE FEDERAL RESERVE BANK 108 (1967).> Cosmopolitan ran a series of articles, published under the title "The Treason of the
Senate," in which leading U.S. Senators were described as "the willing tools of great economic
F interests."R C $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 59 (1964).R The impact of the muckrakers was summarized:
"For a few years the hubbub raised by the muckrakers was intense. Millions learned
about the methods of big business and the corrupt ties linking corporations and politicians.
The progressive movement, already strong in city halls and state capitals, now was in a
position to summon to political action on a national scale the great body of middle-class
F Americans whose conscience and fears had been aroused."R D $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 59 (1964).R
Delaware, which is the single state in which the people have not shared in adopting or amending a
constitution, in November 1906, submitted the question: "Shall the general assembly of the state of
Delaware provide a system of advisory initiative and advisory referendum?" A large majority was in the
F affirmative.? E $ CHARLES S.
LOBINGIER, THE PEOPLE'S LAW 364 (1909).? Delaware has never held a referendum and is the only one of the fifty states that does
F h not submit proposed constitutional amendments to its constitution to the voters.b F $ AUSTIN
RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND THEORY 69, 72 (1978).b 45 of the states
require only a simple majority to amend their constitutions (Hawaii and Nebraska require the majorities
to be equal to at least 35% of all votes cast in the election on all issues and offices), 3 states (Minnesota,
Tennessee and Wyoming) require approval by pluralities equal to or greater than a majority of all persons
casting valid votes on any other issue or office in the election held simultaneously with the constitutional
F P referendum and New Hamsphire requires approval by two-thirds of the vote cast.a G $ AUSTIN RANNEY, REFERENDUMS: A COMPARATIVE STUDY OF PRACTICE AND THEORY
69-70 (1978).a
On January 4, 1906 Jacob Schiff appeared before the New York Chamber of Commerce and lauched
the currency scheme. (11--75).
A year after Paul Warburg became a partner in Kuhn, Loeb he showed Jacob Schiff a memo indicating
a need to adapt the European central banking model to America's needs. Schiff passed Warburg on to
James Stillman. Stillman asked Warburg if the National City Bank had done well and whether things
should be left alone. Warburg agreed National City Bank had done extraordinarily well and added:
"Your bank is so big and so powerful that when the next panic comes you will wish your responsibilities
were less." After the 1907 panic, Stillman summoned Warburg and asked: "Warburg, where is your paper."
"Too late now, Mr. Stillman, what has been done can't be undone in a hurry. If reform is to be secured,
F it will take years of educational work to bring it about." H $ David Farrer, THE WARBURGS 59 (Stein and Day 1975). In America James Stillman was seen as
cold, austre, unbending, uninterested in social activities, unnoted for philanthrophy and bent solely on
moey-making. But he was known as "Monsieur Bonbon" by many children in Europe. As he motored about
he would stop and give them bonbons from a large basket of goodies. B.C. Forbes, MEN WHO MADE
AMERICA GREAT 368 (1917). For years Stillman was "the most powerful national
banker in America" who cooperated with J.P. Morgan who he was second "in shaping the financial
destinies of the United States during the last years of the nineteenth and the first decade of the twenieth
century." Forbes at 368. He followed a policy "of
shunning the limelight, of evading publicity of every sort, and working always unostentaciously,
unspectacularly, silently." Forbes at 369. He described a bank as "nothing but a bundle of debts." Forbes
at 370. Originally he was supposed to go to medical school but due to his father's illness he "entered the
merchantile office of
his father's agents in New York City and rapidly became acquainted with his business affairs. In a short
time he and William Woodward, the junior partner in the firm, succeeded to the business. Before Mr.
Woodward's death, in 1889, he and Mr.
Stillman had agreed to retire from active business in the following year and Mr. Stillman carried out this
resolution." Forbes at 372. His father was a close friend of Moses Taylor, President of National City Bank
who "in his day (was) the foremost American shipowner and commercial power in New York..." Forbes
at 372. Stillman was given "City Bank" play money as a child by his father and resolved to one day become
a director. At the age of forty he acheived his ambition and at forty one was made President. The
son-in-law of Moses Taylor, Percy R. Payne, succeeded his dad as President. After an illness and the death
of Payne, Stillman was chosen at the insistence of the directors as President. Forbes at 372. When
Stillman took over National City in 1891 its deposits were $12 million; by 1893 it had $30 million in
deposits and was the largest bank in New York. The panic of 1893 send many to the
bank because of its reputation for stability. B.C. Forbes at 370. While other banks were
shipping gold to London in 1893, his bank was paying a premium to bring gold across
the Atlantic. In a single year his gold stock increased from $2 to $8 million.
"The 1893 panic, therefore, found the City Bank strong as a rock. By 1897 its deposits had reached
$90,000,000, a new high record for the United States." Forbes at 370-371. At a time that other banks were
reducing their capital, Stillman increased National City's capital from $1 million to $10 million in 1900
and then to $25 million in 1902. B.C. Forbes at 370. In 1901 a combine was proposed to do for copper
what had
been done by Standard Oil for oil--Amalgamated Cooper Company. The organizers began by purchasing
Anaconda Copper and other properties from Marcus Daly with a check for $39 million "on the National
City Bank for this sum with the understanding that they were to cash it later." When the subscription
books were opened for the combine, the names of the sponsors included Henry H. Rogers, William
Rockefeller and James Stillman of the National City Bank. Bernard Baruch, MY OWN STORY 126-127
(1957). He maintained a gold reserve as high as 40% and was known for refusing "more loans than any
other banker who ever lived." "What you need is more capital, not more debts," he said to requesting
borrowers. Forbes at 371. In 1909 he handed over the presidency of the National City Bank to Frank A.
Vanderlip who had been selected a Vice-President by Stillman several years before. Forbes at 369.
Stillman's name never figured in society columns and his counsel was "sought by
prominent foreigners more often than the public could imagine." He was a member of the Society of
Cincinnati, Forbes at 373. The Society was one of the more
snobbish and pretentious of patriotic organizations from the Revolutionary War and included such
members as George Washington, Lafayette, Alexander Hamilton and Arron Burr. John Jay refused to join
saying he had no interest in a society that existed mainly for the purpose of "conferring honors on
themselves." Stephen Birmingham, AMERICA'S SECRET ARISTOCRACY 59 (1987). It is the oldest and
most exclusive ancestral association dating from the year 1783, just before the Continental army was
disbanded. "Its membership was limited to Washington's officers and, in accordance
with the rural traditions of primogeniture was to be passed on to oldest sons in
succeeding generations." E. Digby Baltzell, THE PROTESTANT ESTALISHMENT 114 (1964). Stillman
became a close associate of John D. Rockefeller's brother William who was managing the huge Standard
Oil trust. It was William Rockefeller that tilted business to Stillman to make National City the largest h) 0*0*0* bank in New York City. Also, this
financial marriage was cemented by the marriage of two of William Rockefeller's sons to two of Stillman's
daughters. Gary Allen, THE ROCKEFELLER FILE 30 (1976). James Stillman Rockefeller was chairman
of the First National City Bank until his retirement
in 1967. He married Nancy Carnegie. Allen at 30. One of Stillman's "most important customers" was
"Rockefeller and Standard Oil." Stephen Birmingham at 224. Stillman once asked Edward H. Harriman
what he most liked to do. "It's to be told that something can't be done," replied Harriman, "and jump into
it with both feet and do it." Bernard Baruch, MY OWN STORY 306 (1957).
North Carolina Chief Justice Walter Clark declared in Nov. 1907: "At the present time the supreme
power is not in the hands of the people, but in the power of the judges, who set aside at will any
expression of the people's will made through an act of Congress or a state legislature. These judges are
not chosen by the people, nor subject to review by them. This is arbitrary power, and the corporations take
possession of it simply by naming a majority of the judges."
The Panic of 1907 was contrived to gain public support for a central banking system in the U.S. After
J.P. Morgan spread a rumor about the insolvency of the Trust Company of American, bank runs
F % snowballed.; I $ James Perloff, THE SHADOWS OF POWER 21 (1988).; In a Life Magazine article in 1949 historian Frederick Lewis Allen noted that chroniclers
had concluded that "the Morgan interests took advantage of the unsettled conditions during the autumn
of 1907 to precipitate the panic, guiding it shrewdly as it progressed so that it would kill off rival banks
F ' and consolidate the preeminece of the banks within the Morgan orbit."e J $ "Morgan the Great," 126 (April 25, 1949); James Perloff, THE SHADOWS OF POWER 21 (1988).e Allen himself concluded the
lesson of the Panic of 1907 was that "the United States gravely needed a central banking system."
h) 0*0*0* Ԍ The FRA came after the 1907 panic which began after runs were made on New York banks by the
"well-to-do" (millionaires and multi-millionaires). (11-75). This was at a time of greatest prosperity.
(11--75). In 1907, J.P. Morgan spread rumors that the Knickerbocker Bank and the Trust Company of
America were insolvent and this led to a run on the bank. The resulting "Panic of 1907" was then used
F to justify the need for a central bank. K $ ALLEN at 3 Every American depression through the one in 1907 was "the
direct and immediate result of contractions in loans available on the London market." (19--181).
F x In 1907 the Fabian Joseph Felso L $ F ԍ Fels wed into the Rothschild family. Fabian Freeway at 29, 161, 286 and 307.o financed a London Bolshevik conference with a grant of 3,000
pounds. Ten years later the followers of Lenin increased from 17 to 40,000 as Russia was seized after the
F 1917 fall of the Czar.X M $ F ԍ John A. Stormer, None Dare Call It Treason 23 (1964).X
George Bernard Shaw described himself as a "communist" but differed with Marx in saying: "The
middle and upper classes are the revolutionary element in society; the proletariat is the conservative
F (
element." N $ F ԍ John A. Stormer, None Dare Call It Treason 21 (1964). Ludwig Von Mises said that socialism does
not spring from the masses but is instigated by intellectuals "that form themselves into a clique and bore
from within and operate that way...It is not a people's movement at all. It is a capitalization on the people's
F X emotions and sympathies toward a point these people want to reach." Rene Wormser, Foundations: Their
F Power and Influence 145 (1958). In his book for women, Shaw said:
"I also made it clear that Socialism means equality of income or nothing, and that under
Socialism you would not be allowed to be poor. You would be forcibly fed, clothed, lodged,
taught and employed, whether you liked it or not. If it were discovered that you had not
the character and industry enough to be worth all this trouble, you might possibly be executed
F in a kindly manner; but whilst you were permitted to live you would have to live well."X O $ F ԍ John A. Stormer, None Dare Call It Treason 22 (1964).X
In Cleveland industrialist Mayor Tom L. Johnson demanded the public service corporations be fairly
and objectively assessed for taxation. He also advocated city ownership of utility monopolies: "I believe in
muncipal ownership of all public service monopolies for the same reason that I believe in muncipal
ownership of waterworks, of parks, of schools. I believe in the municipal ownership of these monopolies
because if you do not own them they will in time own you. They will rule your politics, corrupt your
F P institutions and finally destroy your liberties."R P $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 56 (1964).R When a bond issue referendum was submitted to
provide funds for a city public power plant, the utility interests got a court injunction against the election.
Johnson then flanked the power companies by annexing adjoining villages that owned their own power
F plants.R Q $ ERNEST R. MAY AND THE EDITORS OF LIFE, THE PROGRESSIVE ERA 56 (1964).R By 1908 the private ownership system of streetcars was restored and Johnson was defeated
for re-election.
In 1908 the people of Maine adopted an amendment providing for I & R and for adoption of a measure
F proposed by twelve thousand electors and enacted by the legislature without change.? R $ CHARLES S. LOBINGIER, THE PEOPLE'S LAW 364 (1909).?
In 1908 the New York bankers, following Jacob Schiff's lead, asked Congress to legislation to prevent
a repetition of this currency panic. (11--75). This was carried out by the American Bankers Association
with simular measures used in the 1893 campaign for monetary stringency. (11--75). After the Panic of
1907, the Aldrich-Vreeland Act passed in 1908. The bill allowed for the issuance of currency against
securities in case of another money panic. It was put to use in its last months "when the sudden
withdrawal of large sums of European gold from this country, occasioned by the beginning of the First
World War, caused a temporary money stringency. The Federal Reserve Act, although already law, was
not yet in operation and the Aldrich-Vreeland Act was used as the basis for issuing $400 million to cover
F ! the loan due the firm of J.P. Morgan Company from the Bank of England."> S $ H.S. Kennan, THE FEDERAL RESERVE BANK 111 (1967).>
In 1908, Sen. Nelson Aldrich of Rhode Island introduced an amendment to establish an income tax
after he had denounced it as "communistic" in 1894. Aldrich was viewed as the "authentic voice of J.P.
Morgan" and his daughter later married the son of John D. Rockefeller. Vice-President Nelson Aldrich
F % Rockefeller was named for his maternal grand-father. T $ ALLEN at 2. The Federal Reserve Act and the Sixteenth
F H& Amendment were "heads and tails of the same coin." U $ SECRETS at 255? It has been pointed out that an income tax was
part of Karl Marx's plan for the Communist state. When the income tax was first created, the per capita
F ' tax was $1.68.] V $ GARY ALLEN, THE FEDERAL RESERVE: THE TRILLION-DOLLAR CONSPIRACY 15 (Feb.
1976).]
Congress created a National Monetary Commission under Sen. Aldrich. Sixteen Senators and h) 0*0*0* Ԍ F Representatives toured Europe for two years to study central banking. W $ ALLEN at 3. The Agnich Commission
compiled a vast amount of bewildering information "to the end that a special few assuming superior
wisdom and financial judgment might be allowed to dictate without question the reforms so urgently
demanded." Congressman Gray of Indiana (11--76). The idea was to get the government in debt to the
banks to repay interest while avoiding taxation. The whole central bank idea can be directly challenged:
"Most Americans believe that the U.S. government creates its own money. If that is true,
then why would the government need to tax anyone? Why does not the government simply allocate
to itself the money it needs to operate? That would obviously be far more sensible that
erecting enormous tax-collecting bureaucracies which can drive people to despair and greatly
F diminished productivity.": X $ William Bramley, THE GODS OF EDEN 434 (1990).:
"To obtain some of the money those banking entities create, the government must either
tax or borrow. It does both, and the citizens pay. Taxation, especially in nations with
graduated income tax schemes, makes it harder for people to save money and thereby
contributes to the need for most people to spend the majority of their lives toiling for
F physical existence.": Y $ William Bramley, THE GODS OF EDEN 334 (1990).:
The inflatable money system which continues to create indebtedness and instability at every level "can
easily be replaced by a stable monetary system by merely ending bank-created money and setting up a
system whereby money is issued by national governments in proportion to their gross national products
and dispersed without engendering debt. Banks could continue to participate in the system by being the
conduit for the release and circulation of the money; but banks could no longer create money on their own.
Governments would no longer need to tax anymore or borrow; they could simply allocate to themselves
the money they needed to operate, within limits imposed by their gross national products. Under this plan,
all debts owed to banks could be instantly forgiven; banks could be paid by the governments for their
F P services in dispersing and circulating the money, and by consumers for consumer services."> Z $ William
Bramley, THE GODS OF EDEN 465-466 (1990).>
A nationwide proganda campaign was then launched to sell "The Aldrich Plan." The national banks
were hit for a $5 million slush fund and great universities with their presidents and professors of
F p economics became strongholds.> [ $ H.S. Kennan, THE FEDERAL RESERVE BANK 105 (1967).> Much of the $5 million was spent under the "National Citizens'
League" that was made up primarily of "college teachers who wished to get on in the world." This was
headed by the FRA's secret author, J. Laurence Laughlin. He was the most prominent gold standard
economist in the nation and head of the Department of Economics at the University of Chicago
F (Rockefeller). Many abstruse and techical volumes were produced to urge "monetary reform."> \ $ H.S. Kennan, THE FEDERAL RESERVE BANK 106 (1967).>
Support for the plan from a prominent educator first came from Woodrow Wilson, President of
Princeton University. This gesture brought him the Governorship of New Jersey and later the Presidency.
During the panic of 1907 Wilson declared: "All this trouble could have been averted if we appointed a
F x commitee of six or seven public-spirited men like J.P. Morgan to handle the affairs of our country."> ] $ H.S. Kennan, THE FEDERAL RESERVE BANK 105 (1967).>
The voter fatigue that resulted from the progressive era, was, in part, the result of the number of
choices placed before them in the form of politicians, was well as issues. Wilson, in his 1909 work, wrote:
"To give the voter so many persons to vote for that the ballot becomes a complicated thing
which he had not time himself to prepare and which he cannot throughly understand after it has
been prepared for him by the professional politician. It is rare that a ballot put in the hands
of the voter contains less than twenty-five names. One ballot that I have seen contained 700,
was printed like a newspaper in compact columns, and was much larger than a single sheet of a
F H& newspaper."6 ^ $ II COLLEGE AND STATE 189 (Nov. 18, 1909).6
At the turn of the century, a movement of great power and potential was sweeping the country:
"Convulsive reform movements swept across the American landscape from the 1890s to 1917. h) 0*0*0* Ԍ Angry farmers demanded better prices for their products, regulation of the railroads, and
the destruction of what they thought was the evil power of bankers, middlemen, and corrupt
politicians. Urban residents crusaded for better city services and more efficient municipal
government.
Members of various professions, such as social workers and doctors, tried to improve the
dangerous and unhealthy conditions in which many people lived and worked...By around 1910,
many of these crusading men and women were calling themselves progressives. Ever since,
historians have used the term progressivism to describe the many reform movements in the
F early twentieth century."O _ $ ARTHUR S. LINK AND RICHARD L. MCCORMICK, PROGRESSIVISM 1-2 (1983).O
The Progressives did not invent the Australian secret ballot. However, along with the Populists, the
"gave the measure so much support that by 1910 every state in the Union had adopted the device to
F (
prevent thte will of the voters being suborned at the polling places."I ` $ GEORGE E. MOWRY, THE ERA OF THEODORE ROOSEVELT 80-81 (1958).I
The initiative, referendum and recall were associated with the secret ballot and the direct primary. It
was a reform movement designed to obtain a real democracy at the beginning of this century. In the early
1900s the people got bills passed in their legislatures. The judicial veto, however, was applied. Hiding
behind the robes of constitutional supremacy, these reforms were vetoed one by one. The legislative
vetoes of the courts led to the use of constitutional initiative. As White noted: "State courts were elective
and therefore afraid of majorities. They cannot declare constitutional amendments unconstitutional, and
they handle laws adopted by a direct vote of the people with great care. Hence, the prevalance of the
constitutional amendment in American states, and the growth of initiative and referendum from Maine
F to California."n a $ WILLIAM ALLEN WHITE, "The Growth of Democracy in America," XIII THE ANNALS OF
AMERICA 249 (1976).n The constitutional initiative was warmly embraced by the majority of the people yet
there was intense minority resistence. As White submitted: "Where the habit of amending the state
constitution becomes settled...the habit amounts to a public referendum of many many laws, and form the
standpoint of direct legislation and government by the majority this habit is praiseworthy. If, however, the
guarantee of absolutely unrestricted capital is considered more important than majority rule, the habit of
F amending the constitution is dangerous and revolutionary."n b $ WILLIAM ALLEN WHITE, "The Growth of Democracy in America," XIII THE ANNALS OF
AMERICA 249 (1976).n
White suggested a frank admission that the I & R movement was directed at the legislatures and the
courts. He wrote:
"And the issue should be met candidly. The friends of the movement for direct legislation
should admit frankly that the purpose of their cause is twofold: first, to compel legislatures
to act quickly and without evasion; and, second, to circumvent the vote of such courts as are
elective and hence dependent upon popular majorities, and to put whatever righteousness there
is in a definitely registered expression of popular will before such courts as are elective to
stay them in their vetos. For the veto power of the American courts over legislation--under the
assumed right to declare legislation 'unconstitutional'-- is one of the most ruthless checks
upon democracy permitted by any civilized people. European kings and courts do not have such
F reactionary power; yet in the end it seems to make for righteousness."n c $ WILLIAM ALLEN WHITE, "The Growth of Democracy in America," XIII THE ANNALS OF
AMERICA 249 (1976).n
The colonies of Connecticut, Massachusetts, New Hampshire and Rhode Island all, soon after the
Declaration of Independence in 1776, decided to replace their old colonial charters with new constitutions
AND to require that these constitutions should take effect only after they had been considered, voted upon
and approved by the state's voters.
In 1910 peak of old M2.
In 1910 money (old M2) downswing.
In 1910, those present at Jekyl Island, it has been said, included: J.P. Morgan, John D. Rockefeller,
Edward M. House, Senator Nelson Aldrich, Schiff, Stillman and Vanderlip of the National City Bank, W. h) 0*0*0* Ԍ F & J, Seligman, Eugene Myer, Bernard Baruch, Herbert Lehman and Paul Warburg. d $ Myron Fagan, OUR INVISIBLE GOVERNMENT MADE VISIBLE; W.B. Vennard, CONQUEST OR
CONSENT 102 (1963). The year 1908 is used, probably erroneously. This list is also problematic although
revealing of the powerful men of that time.
Around 1910 the English government was the Bank of England's largest single customer. Public
deposits averaged about 19% of its total and government securities averaged about 35% of all its
F interest-bearing assets.< e $ WILLIAM A. SCOTT, MONEY AND BANKING 231 (1910).< Next to the government, other bankers were the Bank's most important
F customers. f $ Id.
On May 7, 1910 Harper's Weekly editorized against Aldrich and said: "Finance and the tarriff are
F @ reserved by Nelson Aldrich as falling within his sole purview and jurisdiction."> g $ H.S. Kennan, THE FEDERAL RESERVE BANK 108 (1967).> Aldrich led on "tarrif
and financial matters because he understood them by tireless study, therefore he was master of other men
F who had not paid the price of knowledge."l h $ WILLARD CANTELON, MONEY MASTER OF THE WORLD 25 (1976); III JEWISH INFLUENCES
IN AMERICA (1921).l Theodore Roosevelt said in August of 1910:
"For every special interest is entitled to justice, but not one is entitled to a vote in
Congress, to a voice on the bench, or to representation in any public ofices. The Constitution
guarantees protection of property, and we must make that promise good. But it does not give
the right of sufferage to any corporation."
In his Osawatomie speech on August 31, 1910, T.R. urged limitations on the sue of money in politics.
He said: "If our political institutions were perfect, they would absolutely prevent the domination of money
in any part of our affairs." The answer, to Roosevelt, was to make the government more responsive to the
citizens and less responsive to the special interests: "We need to make our political representatives more
quickly and sensitively responsive to the people whose servants they are. More direct action by the people
F 0 in their own affairs under proper safeguards is vitally necessary."! i $ The power of the corporations was seen in the first administration of President Reagan which
provided a $145 billion ACRS tax break for corporations--half of which
were paying not taxes prior to the new break. GREGG EASTERBROOK, "The Myth of Oppressive
Corporate Taxes," ATLANTIC MONTHLY 60 (June 1982). The U.S. Supreme Court has never blocked
a merger, has held that utility companies can freely insert political propaganda in its billings and has held
that corporations have freedom of speech guaranteed by the First Amendment.
!
The Kansas Republican platform of August 1910 "pledged state constitutional amendments providing
for the initiative and referendum and recall, and also a law providing for publicity of campaign
F P contributions as to source and disbursements." j $ White at 437-438.
Morgan Man Benjamin Strong (Pres. of New York Fed) wrote to Warburg: "If the United States
government embarks once more upon the expedient or experiment of issuing fiat paper, although in this
case supported by bank assets and percentage in gold reserve, the day will come when we will deeply
F 8 regret it..." k $ SECRETS at 283.
It was founded by Paul Warberg and "The founding of the Federal Reserve is a romance in itself, and
if we are to understand how completely high finance rules the world it is necessary to trace at least the
main outlines of the story." (11--74). The Aldrich Committee tour of "Europe's central banks" was followed
in November 1910 with what the press was told was a "duck-shooting holiday." Harry Davison (Morgan
Partner) met at the Georgia Jekyll Island Club which was "a favorite Morgan hideaway" and the resort
of one hundred millionaires: "Here Wall Street bankers worked out their plan for a central bank under
private aegis, a system of regional reserve banks topped by a governing board of commercial
F @ bankers."= l $ RON CHERNOW, THE HOUSE OF MORGAN 129-130 (1990).= The Aldrich plan was created at Jekyll Island in 1910 in secret to avoid certain
F congressional doom. m $ SECRETS at 276. The commission members spent ten days with representatives of the Morgan
F and Rockefeller interests with Paul Warburg creating the structure. n $ ALLEN at 3.
The first story mentioning the incident appeared three years after the FRA had been passed. It was
an article by E.C. Forbes in "Frank Leslie's Magazine" which praised Paul Warburg and gave the first
F # small revelations about "Jekel Island."> o $ H.S.
Kennan, THE FEDERAL RESERVE BANK 97 (1967).> The railroad car owned by Aldrich pulled out of Hoboken
F $ Station with drawn shades.= p $ H.S. Kennan, THE FEDERAL RESERVE BANK 95 (1967).= Along on the rear-end ride in Senator Aldrich's railroad car to the Jekyll
Island Hunt Club (owned by Morgan) were: A. Platt Andrew (Ass. Secretary of the Treasury), Senator
Nelson Aldrich (National Monetary Commission), Frank Vanderlip (President of Kuhn-Loeb's City Bank
of New York), Henry Davidson (Senior Partner of J.P. Morgan), Charles Norton (President of Morgan's
First National Bank of New York), Paul Warburg (Partner in the banking house of Kuhn-Loeb & Co.) and
F ( Benjamin Strong (President of Morgan's Banker's Trust Company). q $ Epperson at 170.
h) 0*0*0* Ԍ At Jekyll Island in 1910 were Senator Nelson W. Aldrich, A.P. Andrews (professional economist and
Assistant Secetary of the Treasury), Frank Vanderlip (President of the National Bank of New York City),
Harry P. Davidson (Senior partner of the J.P. Morgan Company), Charles W. Norton (President of
Morgan's First National Bank of New York), Benjamin Strong (of the J.P. Morgan Company central office
F in New York) and Paul Warburg (Partner in Kuhn, Loeb & Company of New York). r $ SENATOR JACK METCALF, THE TWO HUNDRED YEAR DEBATE: WHO SHALL ISSUE THE
NATION'S MONEY 29 (First Ed. September 1986). A very preliminary list of those who actually
participated directly at the meeting (indicated by stars) and those or who were closely linked to the
attendees is as follows: *Sen. Nelson Aldrich,
Winthrop Aldrich, Winthrop Rockefeller, *A. Platt Andrew (Assistant Sec. of Treasury),
Benard Baruch, Chief Justice Chase, Winston Churchill, *Henry Davidson (J.P. Morgan), Edsel Ford, W.
Averell Harriman, Otto Kahn, James Loeb, Nina Loeb, Solomon Loeb, Herman Metz, Charles D.
Mitchell, J.P. Morgan, *Charles Norton,
John D. Rockefeller, Alfred Rothschild--London, Frieda Schiff, Jacob Schiff,
Schachtt Schroeder, Lewis Strauss, *Benjamin Strong (Morgan Bankers Trust
Company), Walter Teagle, John Thompson, William B. Thompson, *Frank Vanderlip (President of
Rockefeller-controlled National City Bank), Edward B. Vreeland (Congressman and N.Y. banker who had
the Aldrich-Vreeland bill named after him which had as its real purpose the creation of a National
Monetary Commission),
James Warburg, Max Warburg, *Paul Mortiz Warburg.
J.P. "Jack" Morgan was "content to let his trusted associates, particularly Henry P. Davidson, bear the
F x brunt of the actual executive work, conscious that it is in capable hands."@ s $ B.C. Forbes, MEN WHO MADE AMERICA GREAT 250 (1917).@
F The remote hunting club was a thousand miles away.= t $ H.S. Kennan, THE FEDERAL RESERVE BANK 98 (1967).= The island club was very isolated and
served "as a comfortable retreat far from the cares of the New York money market." The other club
members, before the retreat, were told the club would be occupied for the next two weeks. The usual
attendants at the club were also given two week vacations and new servants were brought in for the
F (
occasion. Also, no visitors were permitted.= u $ H.S. Kennan, THE FEDERAL RESERVE BANK 97 (1967).= So anxious were the participants that they never used last
F
names.= v $ H.S. Kennan, THE FEDERAL RESERVE BANK 97 (1967).= The work took nine days and was not without some friction. Aldrich attempted to order the
others about even though he was the only non-professional banker present. Warburg gave numerous
lectures and long discourses, in a thick, grating alien accent, which drew barbs from Aldrich. Henry P.
F H
Davidson was the diplomat.= w $ H.S. Kennan, THE FEDERAL RESERVE BANK 98 (1967).= Vanderlip later described the secret expedition in the Saturday Evening
Post "as the occasion of the actual conception of what eventually became the Federal Reserve System." To
avoid discover last names were tabooed and each was instructed to arrive to the New Jersey terminal one
F at a time and as unobtrusively as possible.r x $ Epperson
at 170; Frank Vanderlip, FARM BOY TO FINANCIER; Saturday Evening Post 25 (February 9, 1935).r The meeting came at a time when the Banking Law
Journal was promoting a central bank "free of Wall street or any monopolistic interest." The plan had to
avoid the name "Central Bank" so the name "Federal Reserve System" was coined to allay popular
F suspicions.> y $ H.S. Kennan, THE FEDERAL RESERVE BANK 100 (1967).> Next, it was requir | | |
