Chapter 25 1. Mysterious Jekyll Island

On the night of November 22, 1910, in a completely sealed train carriage outside New York City, all the windows were tightly blocked by curtains, and the train slowly drove south.All the most important bankers in the United States were sitting in the carriage, and no one knew the destination of their trip.The train's final destination was Jekyll Island, Georgia, hundreds of miles away. Jekyll Island in Georgia is a winter resort owned by a group of super rich Americans. The big names headed by JP Morgan have established a Jekyll Island hunting club.One-sixth of the wealth on earth is gathered in the hands of members of this club, and membership can only be inherited and cannot be transferred.At this point, the club is notified that someone is going to use the club premises for about two weeks, and all members cannot use the club premises during this time.All the service personnel of the clubhouse are transferred from the mainland, and all the guests who arrive at the clubhouse are called only by their first names, and their surnames are absolutely not allowed.A fifty-mile radius around the clubhouse was secured from any journalists.

When everything is ready, the guests appear in the clubhouse.Those attending this top-secret meeting were: Nelson.Olich, Senator, Chairman of the National Monetary Committee, Nelson.rockefeller's grandfather Piatt.Andrew, Assistant Secretary of the U.S. Treasury Frant.Vanderlip, President, National City Bank of New York Henry.Davidson, Senior Partner, JP Morgan & Co. Charles.Norton, President, First National Bank of New York Benjamin.Strong, JP Morgan's right-hand man Paul.Warburg, a Jewish immigrant from Germany, came to the United States in 1901, a senior partner of Kuhn Repo, an agent of the Rothschild family in Britain and France, the chief architect of the Federal Reserve, and the first director of the Federal Reserve .

These important people came to this remote island and had no interest in hunting here. Their main task was to draft an important document: the Federal Reserve Act. Paul.Warburg was a master of banking, versed in almost all the details of banking operations.When other people had various questions, Paul not only answered them patiently, but also eloquently explained the historical origin of every detail concept.Everyone was impressed by his profound knowledge of banking.Paul naturally became the main drafter and interpreter of the document. Nelson.Orci, the only layman of the group, was in charge of making the document politically correct and acceptable to Congress.Others represented the interests of different banking groups, and they finally reached consensus after nine days of bitter debate over the details of Paul's proposal.

Since the banking crisis in 1907, the image of bankers in the eyes of the American people was so bad that no member of Congress dared to publicly support the bills formulated by bankers. Therefore, these people traveled thousands of miles from New York to this secluded place. Kojima came to draft this document.In addition, the name Central Bank was too pretentious. Since Jefferson, the name of the Central Bank had been too closely associated with the British international banker conspiracy, so Paul suggested that the name of the Federal Reserve System be used as a cover-up.But it has all the functions of a central bank, and like the Bank of England, the Federal Reserve was designed to be privately owned and would benefit enormously from it.Unlike Bank One and Bank Two, the original 20% government share in the Federal Reserve's stock composition has been removed, and it will become a purely private central bank.

To make the Federal Reserve sound more deceitful, on the question of who controls the Fed, Paul subtly argues that Congress controls the Fed, the government has representation on the board, but the majority of the board is controlled directly or indirectly by the Banking Association. Later, in Paul's final version, board members were appointed by the President of the United States, but the real function of the board was controlled by the Federal Advisory Council, which met regularly with the board to discuss its work.The fact that members of the Federal Advisory Committee will be determined by the directors of the twelve Federal Reserve Banks has been deliberately concealed from the public.

Another conundrum for Paul is how to hide the fact that New York bankers will dominate the Fed.Since the 19th century, many small and medium-sized businessmen and farmers in the Midwest of the United States have suffered from the catastrophe of the banking crisis and hated the eastern bankers. It is impossible for congressmen in these areas to support the central bank dominated by New York bankers.Paul devised an ingenious solution for this in which twelve Federal Reserve area banks constituted the entire system.Few people outside of banking circles understand that, given the base case that US money and credit issuance is highly concentrated in the New York area, the proposal to recommend regional Fed banks simply creates the impression that the central bank's operations are not concentrated in New York. It's just an illusion.

Another manifestation of Paul's foresight is to set the headquarters of the Federal Reserve in Washington, the political capital, and deliberately stay away from New York, the financial capital where it actually receives instructions, so as to further distract the public from New York bankers' concerns. The fourth Paul's obsession is how to produce the administrators of the twelve regional Federal Reserve Banks, Nelson.Olic's congressional experience finally came in handy.He pointed out that congressmen in the Midwest were generally hostile to New York bankers, and that in order to avoid a runaway phenomenon, the directors of all regional banks should be appointed by the president rather than by Congress.But this created a legal loophole. Chapter 1, Section 8 of the Constitution clearly stipulates that Congress is responsible for managing the issuance of currency, excluding Congress, which means that the Federal Reserve has violated the Constitution from the beginning.Later, it turned out that this point became the target of many congressmen attacking the Fed.

After such ingenious arrangements, the bill appears to simulate the separation of powers and checks and balances of the US Constitution.Appointed by the president, reviewed by the Congress, independents serve as directors, bankers serve as consultants, it is really a watertight design!