Jewish Power and America’s Money Famine
Love Europe, Hate the EU
Jewish Power and America’s Money Famine
The international Jewish banker who has no country but plays them all
against one another, and the International Jewish proletariat that
roams from land to land in search of a peculiar type of economic
opportunity, are not figments of the imagination except to the non-Jew
who prefers a lazy laxity of mind.
Of these classes of Jews, one or both are at the heart of the problems
that disturb the world today. The immigration problem is Jewish. The
money question is Jewish. The tie-up of world politics is Jewish. The
terms of the Peace Treaty are Jewish. The diplomacy of the world is
Jewish. The moral question in movies and theaters is Jewish. The
mystery of the illicit liquor business is Jewish.
These facts are unfortunate as well as unpleasant for the Jew, and it
is squarely up to him to deal with the facts, and not waste time in
trying to destroy those who define the facts. These facts are
interpreted by the Jew and the anti-Semite with strange extremes of
blindness. The Jew never gets the world’s point of view at all; he
always gets the anti-Semite’s point of view; and the anti-Semite is
equally at fault in always getting the Jew’s point of view. What both
need is to get society’s point of view, which is the one being set
forth in this present series of articles.
To say that the immigration problem is Jewish does not mean that Jews
must be prohibited entry to any country; it means that they must
become rooted to a country in loyal citizenship, as no doubt some are,
and as no doubt most are not. To say that the money question is Jewish
does not mean that Jews must get out of finance; it means that they
must rid finance of the Jewish idea which has always been to use money
to get a strangle-hold on men and business concerns, instead of using
finance to help general business. To say that the tie-up of world
politics is Jewish does not mean that Jews, as human beings, are to be
denied a voice in affairs; it means that they must give up trying to
make the world revolve around the Jewish nation as its axis. To
describe the influence of the Jew on the theater is not to demand that
he leave the theater, but it is to demand that he rid the theater of
his idea that sensualism is entertaining.
The Jewish Question is first for the Jews to solve; if not, the world
will have to solve it for them. They may stay in business, say the
theater, for example, if they will cease spoiling the theater; if they
do not cease, the theater will be taken away from them just as
certainly as that day follows night. The world has been patient and
the world will be fair, but the world knows the limit of imposition.
It is not the true Jewishness of the Jew, nor yet the nationalism of
the Jew that is on trial, but his anti-national internationalism. A
true Mosaic Jew—not a Talmud Jew—would be a good citizen. A
nationalist Jew would at least be logical. But an international Jew
has proved an abomination, because his internationalism is focused on
his own racial nationalism, which in turn is founded on his ingrained
belief that the rest of humanity is inferior to him and by right his
prey. Jewish leaders may indulge in all the platitudes they possess,
the fact which they cannot deny is that the Jew has for centuries
regarded the “goyim” as beneath him and legitimately his spoil.
The internationalism of the Jew is confessed everywhere by him. Listen
to a German banker: imagine the slow, oily voice in which he said:
“We are international bankers. Germany lost the war?—what of it?—that
is an affair of the army. We are international bankers.”
And that was the attitude of every international Jewish banker during
the war. The nations were in strife? What of it? It was like a Dempsey-
Carpentier bout in New Jersey, or a baseball game in Chicago—an affair
of the fighters—“we are international bankers.”
A nation is being hamstrung by artificial exchange rates; another by
the sucking of money out of its channels of trade; what of it to the
international banker?—he has his own game to play. Hard times bring
more plums tumbling off the tree into the baskets of the international
bankers than does any other kind of times. Wars and panics are the
Jewish international bankers’ harvests.
Citizens wake up with a start to find that even the white nations are
hardly allowed to see each other nowadays except through Jewish eyes.
When the United States supposedly speaks to France, through whom does
she speak? All that France sees is Otto H. Kahn! Why must a Jew
represent the United States of America to France? When France
supposedly speaks to the United States, through whom is it done?
Through Viviani, Jewish in every thought and method. Now they are
talking of sending Millerand over, another Jew. Britain sends Lord
Reading. Germany sent Dr. Dernberg. And to other countries the United
States sent Morgenthau, Strauss, Warburg, and lesser Jewlings.
It comes with something of a shock to learn that Foch is coming to the
United States. We have not seen a Frenchman since Joffre visited us.
It is good to see man of the white race come across the sea as if to
reassure us that white men still live in those countries. The business
of the Peace Conference was done by Jews—has it come to a point where
international diplomacy is to become a Jewish monopoly also? Must the
special conversations between France, Britain and the United States be
held through Jewish interpreters, while Anglo-Saxons and true
Frenchmen do the routine embassy work—or shall it be possible for the
non-Jewish nations to see one another occasionally through non-Jewish
representatives?
Internationalism is not a Jewish conviction, but a Jewish business
device. It is most profitable. In diplomacy and at the immigrant
station, internationalism pays. Jews interpret nation to nation in the
high rites of special conversations between governments; Jewish
interpreters swarm at the ports of every country also, where the poor
swarm in. It was stated in the House of Lords the other day that most
of the trouble in Palestine was caused by Jewish interpreters. It was
charged that the Jewish administration added an extra language to the
official list in order to make Jewish interpreters indispensable.
Go through the government of the United States, where the income tax
secrets are kept, where the Federal Reserve secrets are kept, where
the State Department secrets are kept—and you will find Jews sitting
at the very spot where International Jewry desires them to sit, and
where nothing is kept from their knowledge.
Go abroad and come back to your country, and a Jew will open the gate
to let you in, or close it to keep you out—as he chooses.
“Will you be going to Detroit while you are here?” asked a Jewish
government agent of a gentleman entering the country on a visit a few
weeks ago.
“I may go to Detroit,” was the reply.
“Well, you go to the damned DEARBORN INDEPENDENT and tell them a Jew
let you into this country,” said the government agent.
What the visitor replied is known, but had better not be quoted. The
American Jewish Committee might shriek that the people were being
incited to pogroms.
The incident, however, is but a sample of what is occurring every day.
The truth about the Jewish Question in the United States is perhaps
the one form of truth that cannot be indiscriminately told.
The international Jewish bankers regard themselves as in similar
fashion “letting” the nations do this or that, regarding the nations
not as fatherlands but as customers—and as customers in the Jewish
sense. If an army wins or loses, if a government succeeds or fails,
what of it?—that is their affair—“we are international bankers,” and
we win, whoever loses.
For international Jewish bankers, the war is not over. The period of
actual hostilities and the emergencies of the nations were but the
opening of the trade. The ready cash was skimmed in then—all the cash
the world had. True, some of it had to be distributed among the people
as war wages and bonuses, in order to keep the struggle going, but
this was soon recovered through the means of high prices, artificial
scarcities and the orgy of extravagance deliberately organized and
stimulated among the people. That phase over, and money disappeared.
Is there any more tragic joke than that diligently disseminated in
this country—“The United States has more gold than any other country
in the world”? Where is it? How long since you have seen a piece of
gold? Where is all this gold—is it locked up in the Treasury of the
United States Government? Why, that government is in debt, desperately
trying to economize, cannot pay a soldier bonus because the finances
of the country cannot stand it! Where is that gold? It may be in the
United States, but it does not belong to the United States.
The American farmer, and those American industries which were not
“wise” to the tricks of international Jewish bankers, and who were
nipped by small loans, are wondering where all this money is.
Furthermore, Europe, suffering from every possible lack, is looking to
us and wondering where the money is.
This dispatch in a London paper may throw light on the matter:
(italics are ours)
“It is learned today that new gold shipments aggregating
$2,800,000 are consigned to Kuhn, Loeb & Company, New York, making
nearly $129,000,000 imported by that firm since the movement started.
In responsible banking circles the belief is expressed that some of
the German coin recently imported by the firm is from Russia, instead
of Germany, as generally supposed.”
This dispatch, coupled with one printed in a former article which
showed Warburg & Company of Germany arranging with Kuhn, Loeb &
Company of New York for a $5,000,000 loan to Norway, is not devoid of
light on the question—Where is the money?
The Jewish international banking system may be easily described.
First, there is the international Jewish headquarters. This was in
Germany. It had ramifications in Russia, Italy, France, Great Britain
and the South American states. (South American Jewry is very
menacing.) Germany and Russia were the two countries scheduled for
punishment by the International Jewish bankers because these two
countries were most aware of the Jew. They have been punished; that
job is done.
Jewish political headquarters, as related to the internal affairs of
the Jews, was also located in Germany, but the headquarters dealing
with the “goyim” was in France. Statements have been made that the
political center of Jewry has been transplanted to the United States.
But these statements have been made by American Jews whose wish may
have been father to the thought. During the Wilson Administration it
was possible for a Jew to think and to hope this, but affairs have
slightly changed. The ousting of American Jews from the Zionist
movement at the behest of Eastern Jews indicates that if the political
center of world Jewry has shifted to the United States, the power is
still in the hands of aliens resident here. The center is still in
Jewry; the United States is merely a square on Jewry’s world checker-
board.
But, wherever the financial and political world centers may be, each
country is separately handled. In every country—the United States,
Mexico and the republics of South America; in France, England, Italy,
Germany, Austria—yes, and in Japan—there is an international Jewish
banking firm which stands at the head of the group for that country.
Thus, the chief Jewish firm in the United States is Kuhn, Loeb &
Company, of which one of the members is Paul M. Warburg, brother of M.
Warburg & Company, of Hamburg; and another member of which is Otto H.
Kahn, resident successively of Germany, Great Britain and the United
States, and self-appointed financial spokesman for the United States
to France and Great Britain. Great Britain and France seldom see a
special American spokesman who is not a Jew. That may be the reason
why they reciprocate by sending Jews to us, thinking perhaps that we
prefer them.
Paul M. Warburg was the inventor, perfector and director of the
Federal Reserve System of the United States. He is not the only Jew in
the Federal Reserve System, but he was the chief Jew there. His mind
counted for a great deal. There were others in the war government, of
course; Bernard M. Baruch; Eugene Meyer, Jr.; Hoover’s regiment of
Jews; Felix Frankfurter; Julius Rosenwald—hundreds of them, and
everywhere; but the financial group alone is receiving our attention
just now, and they are not so notably successful in getting the
country out of financial difficulty as they were in other lines of
effort.
The Federal Reserve System may not be a bad system, in spite of the
fact that it yields government monetary functions to private financial
corporations, but there are all sorts of testimony that it has been
badly manipulated. Mr. Warburg, the reader will remember, spoke about
certain things being “overcome in an administrative way,” showing that
there was a certain amount of “play” or loose motion in the system
which could be manipulated either way. The fact remains that the
country went swimmingly through the war by reason of the assistance of
the System, and is coming very lamely through the Peace, as the
result, monetary experts say, of the hindrance of the same System. Mr.
Warburg, whose name was so prominently connected with the
advertisement of the glory of the System, must also stand being
mentioned in connection with the criticism.
Whatever money we are said to have as the per capita in the United
States, it is a false statement. The money per capita should always be
figured on the basis of money in circulation. The statistical “per
capita” is not always in circulation. Less than half of it, as a rule.
The rest is being juggled.
Whatever the gold in the country, the wealth is still greater. There
is more wealth in the United States than there is gold in the world.
One year’s products of the farms of the United States exceeds in money
value all the gold in the world.
Yet, under our present system, the burgeoning bulk of the country’s
wealth must pass through the narrow neck of Money. And the Money must
pass through the still narrower neck of Gold. And the controller of
the Gold, under our present system, controls the world. There is more
wealth than there is money; there is more money than there is gold;
money exists at the pleasure of gold; wealth moves at the pleasure of
money. Whoever sits at the neck of money, opening or closing as he
will, controls the movement of the world’s wealth. And the world’s
prosperity depends on the movement of that wealth. When wealth stands
still and does not pass from hand to hand, the world’s circulation has
stopped; the world becomes economically sick.
The scarcity of cash in hand has led to Credit. Credit is a form of
barter. It is a form of dealing by which many transactions are carried
on, only the final one being cleared in money. It is a device which
has its dangers, in spite of the efforts of apologists to exploit its
advantages. But one thing the system of Credit indubitably does—it
allows the money masters to hang on to the Cash. When the world is
caught, it is caught with paper, not with Cash. The Cash is always in
the hands of those who extol the advantage of the Credit System. Who
holds money holds power, and will hold it, until real barter or real
money comes in fashion again.
In 1919-1920, according to one of the best monetary authorities in the
United States, the total shrinkage in values of the products of our
fields, mines, factories, mills and forests represented a sum greater
than the total gold supply of the world. It runs as high as the total
amount of Liberty Bonds outstanding.
People say, “Well, the prices were too high.” Certainly they were too
high, but who and what made them too high? It was the generosity with
which money was supplied by the private Federal Reserve System. There
was plenty of money. People say, “Well, the shrinkage is only in paper
values; the real value of the product is still there.” Certainly, but
when you live under a system in which “real” value and “money” value
are so intimately intertwined that it affects your bread and butter,
the tenure of your farm, and the steadiness of your job, it is pretty
hard to separate the two. Moreover, when your prosperity was due to
the readiness of a group of men to let out money, and your adversity
is due to the unwillingness of the same group, and your own welfare
and your country’s welfare is thus see-sawed up and down without any
reference to natural law but solely upon determinations taken in
committee rooms, you naturally inquire, “Who is doing this? Where is
all the money gone? Who is holding it? Here is the wealth of the
country; here is the need of the country; where is the money to
transfer the wealth to the need? Every condition remains as it was,
except money.”
We have a Federal Reserve System which still is benefiting by the
assistance of its perfector and director, Paul M . Warburg. And what
is the condition in the United States?
Some of the biggest industrial institutions in the country now in the
hands of creditors’ committees.
Farmers being sold out by the hundreds, their horses bringing about $3
each.
Cotton and wool enough to clothe the nation, spoiling in the hands of
the men who raised it and cannot dispose of it.
Every line of business, railroading, newspaper publishing, store-
keeping, manufacturing, agriculture, building, in depression. Why? For
lack of money.
Where is the money? This is a country that is supposed to be the
financial center of the world—where is the money?
It is in New York. The Federal Reserve System, which Mr. Warburg
desired to head up in one central bank, has just about turned out that
way. The money is in New York. Here is the charge made to the governor
of the Federal Reserve Board by a responsible public official who
knows:
While there is a scarcity of money for the producing sections of the
West and Northwest, the South and Southwest, “we find that individual
banks in New York City are borrowing from the Reserve System, in a
number of cases, more than $100,000,000 each; and sometimes as much as
$145,000,000 is loaned there to a single bank—twice as much as some of
the Reserve Banks have been lending recently to all the member banks
in their districts.”
One bank in New York borrowed $134,000,000, or $20,000,000 more than
the Federal Reserve Bank of Kansas City was advancing to 1,091 member
banks in that Reserve District, which covers the states of Kansas,
Nebraska, Colorado, Wyoming, and parts of Missouri, Oklahoma and New
Mexico.
At the same time, another New York bank was borrowing from the Federal
Reserve Bank about $40,000,000, which was more than the aggregate
loans which the Federal Reserve Bank of Minneapolis was lending to its
1,000 member banks in the great states of Minnesota, North and South
Dakota, Montana and part of Wisconsin.
Another New York bank borrowed from the Federal Reserve Bank a sum
which was greater by $30,000,000 than the Federal Reserve Bank at
Dallas was lending to all the banks in Texas, Louisiana and Oklahoma.
Still another New York bank got a loan which equaled the total loans
allowed by the Federal Reserve Bank of St. Louis to the 569 member
banks of that very important district, which includes the whole state
of Arkansas, parts of Illinois, Indiana, Kentucky, Tennessee and
Mississippi, and the larger part of Missouri.
Take the Fifth Federal Reserve District, served by the Federal Reserve
Bank at Richmond, Virginia: one New York bank was able to borrow from
the New York Reserve Bank more than the Richmond Reserve Bank would
lend to all its member banks in Maryland, Virginia, North and South
Carolina and the larger part of West Virginia.
That is the situation. The twelve regional banks, which were supposed
to make money serve all parts of the country equally, have apparently
been “overcome in an administrative way” to such an extent that the
New York Federal Reserve Bank is to all intents and purposes the
Central Bank of the United States and serves the speculative part of
the country with millions, while the productive part of the country is
permitted to wilt with paltry thousands.
When it can occur that four New York banks can borrow from the New
York Federal Reserve Bank as much money as the banks of 21 states were
able to borrow from the five Federal Reserve Banks of St. Louis,
Kansas City, Minneapolis, Dallas and Richmond—there would seem to be
need of explanation somewhere.
Where did this money loaned in New York come from? It came from those
parts of the country where money was scarcest. In May, 1920, the word
went out over telephones—“The tie-up will come on the 15th.” And it
came. Credit was stopped. Payment was pressed. A stream of money,
literally squeezed out of the producing sections of the country, began
to roll toward New York. Otherwise those giant loans just recorded
would have been impossible. It was pressure, Federal Reserve pressure,
politely known as deflation, and that is the way it worked. The banks
of the West were squeezed dry that the banks of New York might
overflow.
“The money was withdrawn from legitimate business in various parts of
the country to be loaned at fancy rates in Wall Street,” says the
official referred to above.
The speculative banks, it has been discovered, were able to borrow
money at six per cent, which money they loaned at as high as 20, 25
and 30 per cent.
Federal Reserve deflation created a scarcity which speculative banks
utilized. The Federal Reserve policy took the money out; New York
banks borrowed the money taken out, and loaned it at tremendous rates—
rates which people paid to stave off the ruin caused by the moneyless
condition which the ill-measured deflation process brought on.
And all this time the Federal Reserve System was in the best financial
condition of its whole career. In December, 1920, it had 45 per cent
of its reserves, which was a higher reserve than it had in December,
1919. But at this writing (July, 1921) the reserve has reached 60 per
cent.
The money is in New York. Go out through the agricultural states, and
you will not find it. Go into the districts of silent factories and
you will not find it. It is in New York. The Warburg Federal Reserve
has deflated the country. A System that was intended to equalize the
ups and downs of financial weather has been used “in an
administrative” way to deplete the country of money.
The Federal Reserve Idea was doubtless right; if it had not been, it
could not have been established. But it has been manipulated. It has
not been a “federal” reserve; it has been a private reserve. It has
been operated in the interest of bankers and not of everyone in
general. Capable of being used to carry the country gradually back to
a natural flow of business and to a natural level of prices, it was
used to bludgeon business at a critical time and to bludgeon it in
such a way that money-lenders profited when producers suffered.
If that is the fact, there is no American banker but will say that the
method was wrong; economically wrong, logically wrong, commercially
wrong, if not criminally wrong.
Today the Federal Reserve boasts of its own reserve as if that were a
sign of national economic health. With the country struggling to live,
the Federal Reserve ought to be low, not high. The height which the
reserve has reached is a measure of the depth of the country’s
depression.
If the Federal Reserve would let out a part of that flood of money—a
high financial authority suggests that less than 10 per cent would do
it—it would be like an infusion of blood into the nation’s veins.
Kuhn, Loeb & Company, the Speyers and the other Jewish money-lenders
have money for Mexico, Norway, Germany, and all sorts of commercial
companies being organized to do business overseas, and it is American
money. The Warburg Federal Reserve System has been badly misused,
badly manipulated, and the country is suffering from it.
Still, the people know not what to do. Money is still a mystery.
Banking is still sacrosanct. What would be perfectly apparent if done
in ordinary business intercourse with a $5 bill, is exceedingly
complicated when the sum is five millions and the parties are (1)
country banks, (2) Federal Reserve banks and (3) Wall Street
speculative institutions. Yet they are only Tom, Dick and Harry with a
$5 bill, after all.
The matter is somewhat affected by the gags that are placed on many
men competent to criticize. High officials are more or less tied up,
by campaign contributions in which all financial concerns have an
interest. Legislative officials are, too many of them, indebted to
these same interests. A schedule of the private debts of some of the
men who have aspired to the Presidency in the last eight years would
be very illuminating—almost as illuminating as a schedule of the names
of Jews at whose homes they stayed while on journeys through the
country. Men who are thus tied up with the present financial system
cannot say what in their minds they know.
It is all illustrated in the testimony of T. Cushing Daniel before a
committee of Congress. It shows to what an extent the power of this
private corporation called the central bank can reach:
“When going through the Bank of England I presented a letter which
I had from Secretary Hay, and the official of the bank was very
polite. He took me through the bank and when we got back to the
reception room I asked him if he would allow me to put a few leading
questions to him. He said he would, and I asked him if he would give
me a statement of the Bank of England. ‘We do not issue statements.’
‘Does not the House of Parliament sometimes call on you for some
statement as to the condition of the bank?’ ‘No, sir; they do not call
on us.’ . . . . ‘How is it that some of these revolutionists, so-
called, do not get up in the House of Commons and raise the devil to
know something about what is going on down here? That would be the
condition in our country.’ ‘Oh most of them are large borrowers from
the bank, and we have no difficulty with them.’ (laughter.)”
[THE DEARBORN INDEPENDENT, issue of 16 July 1921]