Chapter 26 2. The Seven Giants of Wall Street: Behind the scenes of the Federal Reserve

Seven people on Wall Street now control most of the basic industries and resources in the United States.Among them JP Morgan, James.Hill, George.Baker (President of the First National Bank of New York) belongs to the so-called Morgan Group; the remaining four, John.Rockefeller, William.Rockefeller, James.Stillman (President of National City Bank), Jacob.Sheff (Kuhn-Rapo & Co.), of the Standard Oil City Bank Group.The central hub of capital they constitute controls the United States.John.Moody's (the founder of the famous Moody's investment evaluation system) 1911 The seven biggest names on Wall Street are the real driving forces behind the establishment of the Federal Reserve.Their secret coordination among themselves and with the Rothschilds in Europe eventually established the American counterpart of the Bank of England.

The Rise of the Morgan Family The predecessor of Morgan Bank is the little-known British George.Peabody & Co.George.Peabody was originally a dry goods merchant in Baltimore, USA. After making some small fortunes, he came to London, England in 1835 to venture into the world.He saw that the financial industry was a profitable industry, so he started the acceptance bank business with some businessmen in London. This was a very fashionable high-level financial business at that time, and his customers mainly included the government, large companies and the rich.They provided international trade loans, issued stocks and bonds, and dealt in commodities. This is the predecessor of modern investment banks.

George.Peabody quickly entered the British financial circle through the introduction of the British branch of Brown Brothers in Baltimore.Soon, George.Peabody was surprised to receive Nathan.Baron Rothschild's invitation to visit.Terrified George.Peabody felt that being invited as a guest by Nathan, who was famous in the world of the World Bank, was as honored as a Catholic being received by the Pope.Nathan cut to the chase and put forward the hope that George.Peabody did him a favor by acting as the Rothschilds' secret public relations agent.Because the Rothschild family plundered and plundered in Europe, although they had a lot of wealth, they were also hated and despised by many people.The aristocratic class in London disdained to be with Nathan, and repeatedly rejected Nathan's invitation. Although Rothschild was very powerful in the UK, he always felt isolated by the nobles.Nathan took a fancy to George.Another reason for Peabody is that he is modest, popular, and American, and he can be of great use in the future.George.Peabody naturally agreed to Nathan's proposal, and all the public relations expenses were paid by Nathan, and George.Peabody's company soon became a well-known social center in London.Especially on July 4th every year at George.The American Independence Day banquet held by the Peabody family was a grand event in the circle of London aristocrats.The guests may not have imagined that the magnificent and luxurious hospitality expenses could be afforded by an ordinary businessman who was unknown a few years ago.

Until 1854, George.Peabody was only a million-pound banker, but in just six years, he made a windfall of nearly 20 million pounds and became a heavyweight banker in the United States in one fell swoop.It turned out that during the 1857 economic crisis in the United States instigated by the Rothschild family, George.Because Peabody invested heavily in American railroad bonds and government bonds, when British bankers suddenly dumped all bonds that had anything to do with the United States, George.Peabody was also deeply locked in.Strangely, when he was on the verge of bankruptcy, the Bank of England, like an angel descending from the sky, provided an emergency credit line of 800,000 pounds, which not only snatched him back from death, but also made him who had always been extremely cautious and had already lost his mind. George.Peabody gambled his entire fortune on bonds dumped as garbage by terrified American bond investors. In a few years, the U.S. economy has completely emerged from the shadow of recession.As a result, George.The U.S. bonds in Peabody's hands made him super rich in no time, which is strikingly similar to Nathan's British treasury campaign in 1815.George, who had just woken up from his bankruptcy nightmare without accurate information from insiders.Peabody absolutely did not dare to buy a large amount of U.S. bonds.

George.Peabody had no heirs in his life, and no one could inherit his huge property. He took great pains for this, and finally decided to invite the young Junius.Morgan joined.In George.After Peabody retired, Junius.Morgan took over the entire business and changed the company's name to Junius.Morgan & Co., still based in London.Later, Junius' son JP Morgan took over the company, and later he changed the name of the American branch to JP Morgan & Company.In 1869, JP Morgan and Zogso met with the Rothschild family in London, and the Morgan family fully inherited George.Peabody's relationship with the Rothschild family and took this cooperation to a new level.In 1880, JP Morgan began to heavily finance the commercial activities of the reorganized railroad companies.

On February 5, 1891, the Rothschild family and some other British bankers established a secret organization, the Round Table Group, and the United States also established a corresponding organization, led by the Morgan family.After World War I, the Round Table Group in the United States was renamed the Diplomatic Council, and the Royal Society of International Affairs in the United Kingdom.Many important officials of the American and British governments were selected from these two associations. In 1899, JP Morgan and Zogeso went to London, England to attend the International Bankers Conference.When they returned, JP Morgan had been appointed chief attorney for the Rothschild family's interests in the United States.As a result of the London conference, J.P. Morgan & Co. in New York, Zogeso & Co. in Philadelphia, Grenfell & Co. in London, Morgan S.Haggis.The Schiller Company, the Warburg Company of Germany and the United States, is fully connected with the Rothschild family.

In 1901, JP Morgan acquired Carnegie's steel company at a sky-high price of US$500 million, and formed the world's first giant with a market value of more than one billion US dollars, the United States Steel Corporation. JP Morgan was considered to be the richest person in the world at that time, but, according to the report of the National Provisional Economic Council, he only owned 9% of the shares of his company.It seems that the illustrious Morgan is just a front office figure. Rockefeller: Oil King Old John.Rockefeller is a controversial figure in American history, dubbed the most ruthless person.His name is naturally inseparable from the famous Standard Oil Company.His oil career began during the American Civil War (1861︱1865), and until 1870 when he founded the Standard Oil Company of the United States, his business was still at an average level.Since receiving a batch of seed loans from the National City Bank of Cleveland, he seems to have found a feeling all of a sudden, especially in terms of vicious competition, which has shown extraordinary imagination.In the oil refining industry he is very optimistic about, he realized early on that although oil refining has extremely high short-term profits, due to uncontrolled fierce competition, it will eventually fall into suicidal vicious competition.There is only one way, to eliminate competitors mercilessly, and for this purpose, all means can be used.

The specific method is that first, the unknown intermediary company controlled by it proposes a low-price cash acquisition of a competitor. If it is rejected, the competitor will face a fierce price war until the other party succumbs or goes bankrupt.If that doesn't work, Rockefeller will finally resort to his best trick: violent destruction.Beating competitors' workers, setting fire to opponents' factories, etc. After several rounds, there are very few survivors.Such a domineering monopolistic behavior has aroused public indignation among peers, but it has also aroused great interest from New York bankers.Bankers who love monopoly appreciate Rockefeller's high execution ability to achieve monopoly.

The Rothschild family has been painstakingly trying to control the increasingly powerful United States, but has repeatedly failed.Controlling a European king is much simpler than controlling an elected government.After the American Civil War, the Rothschilds began to deploy plans to control the United States.In the financial industry, there are Morgan Bank and Kuhn Repo Company. In the industrial world, no suitable agent has been found yet. What Rockefeller has done has made the Rothschild family shine.If a large number of blood transfusions are given in terms of finance, Rockefeller's strength will go far beyond the small Cleveland area.

The Rothschild family sent their most important financial strategist in the United States, Jacob K.Shef.In 1875, Jacob.Sheff went to Cleveland to give advice on Rockefeller's next expansion plan.Jacob.Scheff brought unprecedented support that Rockefeller could not have imagined. Since Rothschild had already controlled 95% of the railroad capacity in the United States through Morgan Bank and Kuhn Leibo at this time, Jacob.Scheff proposed a shadow company to provide very low freight discounts to Rockefeller's Standard Oil Company. Under the pressure of this freight discount, few oil refining companies can continue to survive.Rockefeller soon completely monopolized the U.S. oil industry and became a veritable oil king.

Jacob.Shef: Rothschild's Financial Strategist The close relationship between the Rothschilds and the Sheffs dates back to 1785, when the elder Rothschilds moved their family to a five-story building in Frankfurt, which they shared with the Sheffs for many years .Both are German Jewish bankers, and the two have a century-long family relationship. In 1865, when Jacob was only 18 years old.Scheff came to the United States after a period of apprenticeship at the Rothschild Bank in England.After the assassination of President Lincoln, Jacobs would coordinate the interests of European banker agents in the United States to jointly promote the establishment of a private central banking system in the United States.Another purpose of his is to discover and train agents of European banks, and send them to various important positions in the government, courts, banks, industries, news, etc., waiting for the opportunity. On January 1, 1875, Jacob joined the Kuhn Repo Company and has since become the core of the company.With the support of the powerful Rothschild, Kuhn-Rapo eventually became one of the most famous investment banks in the United States in the late nineteenth and early twentieth centuries. James.Hill: King of the Railroads The construction of railways is an important basic industry that relies heavily on financial support. The development of the huge railway industry in the United States is largely dependent on money from the capital markets of the United Kingdom and other European countries.Controlling the issuance of U.S. railroad bonds in Europe has become a direct means of controlling the lifeline of the U.S. railroad industry.In 1873, due to the sudden financial austerity imposed on the United States by international bankers, they dumped U.S. bonds, and U.S. railroad bonds were not spared.When the crisis ended in 1879, the Rothschild family had become the largest creditor of the American railroads. As long as he liked, he could cut off the financial lifeline of any American railroad company at any time.Against this background of the times, James.Hill had to take refuge in the banner of financiers in order to survive and grow in the fierce competition in the railway industry, and Morgan was his financial backer.With the strong support of Morgan, James.Hill implemented plans for rapid mergers and expansion. By 1893, James.Hill's dream of owning the transcontinental railroad finally came true.In the struggle for control of the Midwestern Railroad, James.Hill encountered a powerful opponent, and the Union Pacific Railroad supported by the Rockefeller consortium launched a surprise attack on him.Harriman, president of the Union Pacific Railroad, began to secretly acquire James.The stock of the Northern Pacific Railroad Company controlled by Hill, when James.When Hill realized that he was about to lose control, Harriman was only 40,000 shares away.James.Hill immediately called for help to Morgan, the backstage boss who was on vacation in Europe, and Morgan immediately ordered his men to counter Rockefeller's challenge.All of a sudden, Wall Street was full of wars, and the competition for the shares of the Northern Pacific Railway Company reached a feverish level, and the price of each share once reached a sky-high price of one thousand dollars. In the end, international bankers had to mediate. The final result was to establish a new holding company, Northern Securities Company, and the two powers jointly controlled the rail transportation in the northern United States.On the day the company was founded, President McKinley was assassinated, and Vice President Roosevelt Sr. succeeded him.Under the strong opposition of the elder Roosevelt, the Northern Securities Company was forcibly disbanded by the "Sherman Antitrust Act" passed by the United States in 1890.After being frustrated, James.Hill's development direction turned south, buying the railroad from Colorado to Texas.By the time of his death in 1916, James.Hill amassed a fortune of $53 million. warburg brothers In 1902, brothers Paul and Felix immigrated to the United States from Frankfurt, Germany.The two brothers, born in a banking family, are very proficient in banking business, especially Paul, who can be called the top financial expert in the world.Rothschild valued Paul's talent very much, and deliberately transferred the two brothers from the Warburg Family Bank of the European strategic alliance to the American front, which was in urgent need of talents. At this time, the Rothschild family has been implementing a private central bank plan in the United States for nearly a hundred years, and it has been ups and downs without success.This time, Paul will take on the main task.Shortly after arriving in the United States, Paul joined the vanguard of Jacob.Shef's Coon Repo Company, and married the daughter of the Shef couple's sister, and Felix married the Shef's daughter. Garrison, the financial adviser to Presidents Roosevelt and President Wilson, pointed out: When the Orci plan caused resentment and opposition across the country, it was Paul.Mr. Warburg put the Fed Act back together.The genius behind both of these plans came from Alfred Alfred in London.Rothschild.