The Federal Reserve is PRIVATELY OWNED
by Thomas D. Schauf
Dear American: Pursuant to your request, I will attempt to clear up questions you have about the Federal Reserve Bank (FED). I spent much time researching the FED and these are the shocking and revealing conclusions.
by Thomas D. Schauf (c 1992)
THE FEDERAL RESERVE BANK IS A PRIVATE COMPANY.
Article 1, Section 8 of the Constitution states that Congress shall have the power to coin (create) money and regulate the value thereof. Today however, the FED, which is a privately owned company, controls and profits by printing money through the Treasury, and regulating its value. The FED began with approximately 300 people or banks that became owners (stockholders purchasing stock at $100 per share - the stock is not publicly traded) in the Federal Reserve Banking System. They make up an international banking cartel of wealth beyond comparison (Reference 1, 14). The FED banking system collects billions of dollars (Reference 8, 17) in interest annually and distributes the profits to its shareholders. The Congress illegally gave the FED the right to print money (through the Treasury) at no interest to the FED. The FED creates money from nothing, and loans it back to us through banks, and charges interest on our currency. The FED also buys Government debt with money printed on a printing press and charges U.S. taxpayers interest. Many Congressmen and Presidents say this is fraud (Reference 1,2,3,5,17).
Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks, a very well kept secret, has been revealed:
These bankers are connected to London Banking Houses which ultimately control the FED. When England lost the Revolutionary War with America (our forefathers were fighting their own government), they planned to control us by controlling our banking system, the printing of our money, and our debt (Reference 4, 22).
The individuals listed below owned banks which in turn owned shares in the FED. The banks listed below have significant control over the New York FED District, which controls the other 11 FED Districts. These banks also are partly foreign owned and control the New York FED District Bank. (Reference 22)
Now the banks financially back sympathetic candidates. Not surprisingly, most of these candidates are elected (Reference 1, P. 208-210, Reference 12, P. 235, Reference 14, P. 36). The bankers employ members of the Congress on weekends (nickname T&T club -out Thursday...-in Tuesday) with lucrative salaries (Reference 1, P. 209). Additionally, the FED started buying up the media in the 1930's and now owns or significantly influences most of it Reference 3, 10, 11, P. 145).
Presidents Lincoln, Jackson, and Kennedy tried to stop this family of bankers by printing U.S. dollars without charging the taxpayers interest (Reference 4). Today, if the government runs a deficit, the FED prints dollars through the U.S. Treasury, buys the debt, and the dollars are circulated into the economy. In 1992, taxpayers paid the FED banking system $286 billion in interest on debt the FED purchased by printing money virtually cost free (Reference 12, P. 265). Forty percent of our personal federal income taxes goes to pay this interest. The FED's books are not open to the public. Congress has yet to audit it. Congressman Wright Patman was Chairman of the House of Representatives Committee on Banking and Currency for 40 years. For 20 of those years, he introduced legislation to repeal the Federal Reserve Banking Act of 1913.
Congressman Henry Gonzales, Chairman of a banking committee, introduces legislation to repeal the Federal Reserve Banking Act of 1913 nearly every year. It's always defeated, the media remains silent, and the public never learns the truth. The same bankers who own the FED control the media and give huge political contributions to sympathetic members of Congress (Reference 12, P. 155-163, Reference 22, P. 158, 159, 166). THE FED FEARS THE POPULATION WILL BECOME AWARE OF THIS FRAUD AND DEMAND CHANGE
Rep. Louis T. McFadden (R. Pa.) rose from office boy to become cashier and then President of the First National Bank in Canton Ohio. For 12 years he served as Chairman of the Committee on Banking and Currency, making him one of the foremost financial authorities in America. He fought continuously for fiscal integrity and a return to constitutional government (Reference 1). The following are portions of Rep. McFadden's speech, quoted from the Congressional Record, pages 12595-12603:
"THE FEDERAL RESERVE BOARD, A GOVERNMENT BOARD, HAS CHEATED THE GOVERNMENT OF THE UNITED STATES AND THE PEOPLE OF THE UNITED STATES OUT OF ENOUGH MONEY TO PAY THE NATIONAL DEBT.
The depredations and the iniquities of the Federal Reserve Board and the Federal Reserve banks acting together have cost this country ENOUGH MONEY TO PAY THE NATIONAL DEBT SEVERAL TIMES OVER."
About the Federal Reserve banks, Rep. McFadden said, "They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; the rich and predatory money lenders. This is an era of economic misery and for the reasons that caused that misery, the Federal Reserve Board and the Federal Reserve banks are fully liable."
On the subject of media control he state, "Half a million dollars was spent on one part of the propaganda organized by those same European bankers for the purpose of misleading public opinion in regard to it."
Rep. McFadden continued, "Every effort has been made by the Federal Reserve Board to conceal its power but the truth is the Federal Reserve Board has USURPED THE GOVERNMENT OF THE UNITED STATES. IT CONTROLS EVERYTHING HERE AND IT CONTROLS ALL OUR FOREIGN RELATIONS. IT MAKES AND BREAKS GOVERNMENTS AT WILL.
No man and no body of men is more entrenched in power than the arrogant credit monopoly which operates the Federal Reserve Board and the Federal Reserve banks. These evil-doers have robbed this country of more than enough money to pay the national debt. What the Government has permitted the Federal Reserve Board to steal from the people should now be restored to the people."
"Our people's money to the extent of $1,200,000,000 has within the last few months been shipped abroad to redeem Federal Reserve Notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve banks. The greater part of our monetary stock has been shipped to foreigners. Why should we promise to pay the debts of foreigners to foreigners? Why should American Farmers and wage earners add millions of foreigners to the number of their dependents? Why should the Federal Reserve Board and the Federal Reserve banks be permitted to finance our competitors in all parts of the world?" Rep. McFadden asked.
"The Federal Reserve Act should be repealed and the Federal Reserve banks, having violated their charters, should be liquidated immediately.
FAITHLESS GOVERNMENT OFFICERS WHO HAVE VIOLATED THEIR OATHS SHOULD BE IMPEACHED AND BROUGHT TO TRIAL", Rep. McFadden concluded (Reference 1, contains an entire chapter on Rep. McFadden's speech).
If the media is unbiased, independent and completely thorough, why haven't they discussed the FED? Currently, half the states have at least a grass roots movement in action to abolish the FED, but there's no press coverage. In July, 1968, the House Banking Subcommittee reported that Rockefeller, through Chase Manhattan Bank, controlled 5.9% of the stock in CBS. Furthermore, the bank had gained interlocking directorates with ABC.
In 1974, Congress issued a report stating that the Chase Manhattan Bank's stake in CBS rose to 14.1% and NBC to 4.5% (through RCA, the parent company of NBC). The same report said that the Chase Manhattan Bank held stock in 28 broadcasting firms. After this report, the Chase Manhattan Bank obtained 6.7% of ABC, and today the percentage could be much greater. It only requires 5% ownership to significantly influence the media (Reference 14, P. 56-57). This is only one of 300 wealthy shareholders of the FED. It is believed other FED owners have similar holdings in the media. To control the media, FED bankers call in their loans if the media disagrees with them (Reference 25, P. 134-137).
Rockefeller also controls the Council on Foreign Relations (CFR), the sole purpose of which is to aid in stimulating greater interest in foreign affairs and in a one world government. Nearly every major newscaster belongs to the Council on Foreign Relations. The Council on Foreign Relations controls many major newspapers and magazines. Additionally, major corporations owned by FED shareholders are the source of huge advertising revenues which surely would influence the media (Reference 14, P. 56-59). It can be no wonder why groups such as FED-UP(tm) receive minimal, if any, press attention.
In other words, by Congress allowing the constitutionally illegal FED to continue, much of your taxes go to the shareholders of the FED and their bankers. Note: The people who enacted the FED started the IRS, within months of the FED's inception. The FED buys U.S. debt with money they printed from nothing, then charges the U.S. taxpayers interest. The government had to create income tax to pay the interest expense to the FED's shareholders, but the income tax was never legally passed (Reference 20 shows details, state-by-state why it was not legally passed). The FED is illegal, per Article 1, Section 8 of the United States Constitution. Not one state legally ratified the 16th Amendment making income tax legal. . Why has Congress allowed the FED to continue? If a Congressperson tries to abolish the FED, the banks fund the Congressperson's opponent in the next election (Reference 17, P. 35).
The new Congressperson will obviously support the FED. When Congresspeople retire, political campaign funds are not taxed. Get elected and be a millionaire if you vote right. By the way, the profit of the FED is not taxed either (Reference 1, 9). . Consider this fact. Most of the given sources in this booklet show how the blood line of family bankers who own the FED funded both sides of all major wars. They created fake colonial money to destroy the Americans during the Revolutionary War and tried to finance both sides in the American Civil War. Abraham Lincoln refused and the South accepted. Many publications show that these bankers financed World War I, World War II, and the Russian Revolutionary War, which helped Napoleon, Lenin, and Hitler come to power. They financed both sides from money created from nothing and profited greatly. These same bankers created a number of American depressions to change the U.S. legislation and seize our wealth. Read the sources for details. This is why our forefathers wrote in the Constitution that only Congress can issue money - not private banks (Reference 18).
More wars create more debt which means more profit to the bankers (Reference 1, 21). These bankers planned three world wars so people would welcome United Nations intervention to govern the world in peace, not war. (Reference 22 gives specific details on World War I and World War II, showing exactly how the bankers were responsible for the beginning and continuation of these wars for their profit).
The banks have publicly announced they will force us to a cashless society by 1997. Furthermore, they plan to create a one world government through the United Nations headed by the FED, Trilaterals, and the Council on Foreign Relations (Reference 3). By the definition of treason, they have committed treason! This means you lose your rights under the Constitution and Bill of Rights. Does this sound far fetched? . The FED announced publicly that their first objective was to get nationalism out of the American people's heads because patriotism to a country would not be of value in the future. The media makes us think the U.N. has all the answers, and to "think globally." . State Department document 7277 calls for the disarming of America, thus turning our sovereignty over to a one-world government. Again, the media is pushing to eliminate guns. Our forefathers believed that the right to bear arms would prevent a takeover of our government. History shows that before any government took over, they disarmed the citizens. Hitler did it, and before our Revolutionary War, King George told us to disarm - good thing we didn't!
Under the Federal Reserve Bank Act, the bankers control our economy. The FED controls interest rates and the amount of money in the economy. These factors determine either economic prosperity or the lack thereof. Bankers are now pushing for a one world government and a cashless society. Why cashless? .What a cashless society really means is the banks can now control you. Today you fear the IRS. In a cashless society, if you disagree with the bankers' political goals, you'll find your money gone via computer error. (For additional information on a cashless society, read Reference 13, P. 174; Reference 3; Reference 14, P. 9-12; Reference 15, P. 136; Reference 25, P. 216).
If you could accurately predict future interest rates, inflation and deflation, you would know when to buy or sell stocks and make a bundle of money. The FED has secret meetings (per Congressional Record) to determine future interest rates and the amount of money to be printed. The Securities Exchange Commission (SEC) by law, stops insiders from profiting by privileged information. Congressional records prove that FED bankers routinely hold secret meetings to profit by manipulating the stock market via interest rates and the amount of money they create. FED bankers also profit greatly from economic disasters like the Depression (Reference 22, P. 56).
The bankers create inflation, sell their stocks before the market crashes, then buy up stocks at cheaper prices. Bankers admitted this to Congress. This violates the law, yet Congress does not act because these bankers are large political contributors (Reference 17, P. 96-98; Reference 1, P. 162-163; Reference 22, P. 114-170 & P. 136). Thomas Jefferson predicted this scenario if we ever allowed a private bank, like the FED, to create our currency (Reference 1, P. 247).
FED Chairman Burns states "[A] Killing can be made simply by knowing the next few months newspapers ahead of time." Congressman Patman said "The FED officials own more than 100 million dollars (of stocks) while making decisions influencing these stock prices..." (Reference 24, P. 123). History proves that banks profit from bankrupting a nation (Reference 22, P. 56).
Section 7 of the Federal Reserve Act, passed December 23, 1913, states that much of the profit of the FED should flow into the U.S. Treasury. In 1959, new legislation allowed the FED to transfer bonds to commercial banks at no cost to the bank. Now the FED receives less interest income and less profit for the U.S. Treasury because the money is diverted to other banks through an accounting entry (Reference 17, P. 115-130).
Congress and the IRS do not have access to the financial records of the FED. Every year Congress introduces legislation to audit the FED, and every year it is defeated. The FED banking system could easily be netting 100s of billions in profit each year. Through "creative accounting" profit can easily be reclassified as expense (Reference 14, P. 20, Reference 17, P. 239).
Within the first few years, the shareholders of the FED received their initial investment back with no risk. All the income is tax-free, except for property tax, according to the Federal Reserve Act.
"We the People" have pushed the following states to pass or introduce legislation calling for an end to the FED: Arizona, Washington, Arkansas, Idaho, Oregon, Indiana, and Texas. . By abolishing the FED, we would not pay interest on Federal Reserve Notes. Until it is abolished, the FED has a monopoly on profit on our currency and whether our money supply will be increased or decreased, inflation or depression. The banks are capable of controlling business by controlling who can or cannot obtain a loan. .
WHY OUR FOREFATHERS FOUGHT THE FED
"Allow me to control the issue and the nation's money and I care not who makes its laws!" The above quote has long been attributed to the 18th century banker Amshell Rothschild (his blood line controls the FED). For if one unscrupulous group is allowed to print a nation's money - it can eventually use that money to gain control of the press AND the politicians - and thus gain control of making the nation's laws - and finally - control of the nation itself. (Reference 4)
If you will take the time to read the reference material listed which has been researched by Professors of Universities, Congresspeople, etc, you will turn up information that might frighten you. For instance, in 1921 the stockholders of the Federal Reserve financed an organization called the "Council on Foreign Relations" (CFR). Harpers magazine called this the most powerful organization in the United States. Ninety percent of the people in the State Department and key positions in the Executive Branch are members of the CFR. The CFR publishes a magazine called "Foreign Affairs." Read it if you want to know what is going to happen in coming years. The CFR is in favor of a New World Order (Reference 3).
Congressman Patman re-quoted Thomas Jefferson showing that our founding fathers knew this banking principle very well. "I believe that banking institutions are more dangerous to our liberties than standing armies...." "Already they have raised up a money aristocracy that has set the government at defiance. The issuing power (of money)," he said, "should be taken from the banks and restored to the people to whom it properly belongs." The American Revolution was a struggle to wrest control of wealth from the Bank of England and to restore the centers of power to the People where it "properly belongs." The Constitution is specific about the authority of the People, through their elected officials, to control the money, and thus, the affairs of their government. (Reference 5, P. 32)
Ben Franklin said in his autobiography that the inability of the colonists to get the power to issue their own money permanently out of the hands of George III and the international bankers was [one of] the PRIME reason[s] for the Revolutionary War. (Quoted in Reference 4)
Thomas Jefferson stated, "If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered." (Reference 1, P. 247)
Congressman Charles A. Lindbergh of Minnesota said: "This [Federal Reserve] Act establishes the most gigantic trust on Earth. When the President [Wilson] signs this bill, the invisible government of the Monetary Power will be legalized... the worst legislative crime of the ages, perpetuated by this banking and currency bill." (Reference 5, P. 33)
Robert H. Hemphill (Credit Manager, Federal Reserve Bank in Atlanta): "We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It [the banking problem] is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects are remedied very soon." (Reference 1, P. 247)
Napoleon, a sympathizer for the international bankers, turned against them in the last years of his rule. He said: "When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain." (Reference 4)
Congresspeople have referred to Federal Reserve Notes as "FIAT" (no- backing) money. (Reference 1, P. 128, 169)
In 1879 the Supreme Court declared that the U.S. Government can legally issue United States Notes, debt and interest-free, just as Lincoln and Kennedy attempted. (Reference 1, P. 233)
A bank that attempted to repossess property on the basis of default faced Judge Mahoney in a jury trial. Jerome Daly was found innocent. The bank could not foreclose on the property because it created the loan money from thin air, as many banks do. Use this as a precedent the next time any bank tries to foreclose on your house. (Reference 17, P. 82, 83 for court records) The FED violates Security & Exchange Commission (SEC) rules. (Reference 17, P. 96-98)
California 9th Circuit Court declared FED banks are private, not government. (Reference 17, P. 273)
Mr. Marriner Eccles, who was Chairman of the board of Governors of the Federal Reserve System longer than any other man, testified before the Joint Economic Committee in August 1962. When Chairman Rep. Wright Patman asked whether it was not a fact that the Federal Reserve System has more power than either the Congress or the President, Eccles replied: "In the field of money and credit, yes." (Reference 1, P. 206)
Dr. Hans F. Sennholz, Chairman of the Department of Economics at Grove City (PA) College stated: "The Federal Reserve System facilitates the government's own inflationary financing in "periods of emergency." It makes easy the inflationary financing of budget deficits and the inflationary refunding of government loans. It stabilizes the government bond market through inflationary methods and manipulates this market to the advantage of the government. It does all this by wrecking the purchasing power of the dollar; by subtly stealing from the people of this country what it thus provides for the government, through a process exactly on par with the coin clipping of ancient kings but much less visible." (Reference 1, P. 250, 251)
Source: Banking Act of 1935, Hearings before a Subcommittee of the Banking and Currency Committee, U.S. Senate, 74th Congress, 1st Session, on S.1715, May 1935, pp 871-2. "The Federal Reserve System is in the wrong hands. No Constitutional republic can function when the government's money powers are in the hands of the financial oligarchy such as New York financiers.
By controlling Congress, the FED has been able to control the nominating conventions of both political parties. In this way, it has been able to hand-pick the presidential nominees so that no matter which party wins, their nominee for President is under definite obligations to the FED... (Reference 1, P. 210; Reference 22)
In 1975, the Rockefeller Foundation Report discussed the "Interdependence" of the countries of the world on each other. It stated we are one world and America shall become a nation-state under one government. They also say we must reach a zero state population growth. The Rockefeller Foundation stated that they have in excess of 747 million dollars to achieve this with. (Reference 3)
Congressman John R. Rarick states that the Council on Foreign Relations CFR) is dedicated to a one world government. The media remains conspicuously quiet. The CFR wants to convert the U.S. from a sovereign, constitutional republic into a servile member state of a one world dictatorship. On February 17, 1950, CFR member James Warburg (banker, and architect of the Federal Reserve System) stated before a Senate Foreign Relations Committee, "We shall have one world government whether or not you like it, by conquest or consent." Again, the media remained silent. In the April 1974 issue of the CFR journal, "Foreign Affairs", page 558, Richard Gardener states that the new world order "will be built... but an end run around national sovereignty, eroding it piece by piece, will accomplish much more than the old fashioned frontal assault." Congressman McDonald, Heinz and Tower stated that this is a conspiracy. Again, the media remained silent. (Reference 14, P. 17, 18, 32, 33).
In a letter to Thomas Jefferson, John Adams wrote: "All the perplexities, confusions, and distresses in America arise, not from defects in the Constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit, and circulation".
British bankers have stated "Those that create and issue money and credit direct the policies of government and hold in their hands the destiny of the people". (Reference 1, P. 200-214) Adams, Jefferson, and Lincoln believed that banker capitalism was more dangerous to our liberties than standing armies. In a republic, banks would lend money but could not create or manufacture it. (Reference 1, P. 215)
Later, Jefferson used stronger language and denounced the institution as "one of the most deadly hostilities against the principles and form of our Constitution." Some have said that Jefferson did not favor a strong central bank. What he did not favor was the delivery of our monetary system into private hands to be run for private profit. (Reference 1, P. 230) President James A. Garfield said: "Whoever controls the money in any country is absolute master of industry [legislation] and commerce". (Reference 1, P. 247, Reference 4) .
By controlling our own money, Thomas Jefferson expected that the government would incur no debt, as had occurred in the European system. (Reference 1, P. 243) European banks are like the FED.
ABRAHAM LINCOLN - ANOTHER GREAT PRESIDENT!
President Lincoln needed money to finance the Civil War, and the international bankers offered him loans at 24-36% interest. Lincoln balked at their demands because he didn't want to plunge the nation into such a huge debt. Lincoln approached Congress about passing a law to authorize the printing of U.S. Treasury Notes. Lincoln said "We gave the people of this Republic the greatest blessing they ever had - their own paper money to pay their debts..." Lincoln printed over 400 million "Greenbacks" (debt and interest-free) and paid the soldiers, U.S. government employees, and bought war supplies. The international bankers didn't like it and wanted Lincoln to borrow the money from them so that the American people would owe tremendous interest on the loan. Lincoln's solution made this seem ridiculous. (Reference 1, P. 46, 47; Reference 4)
Shortly after Lincoln's death, the government revoked the Greenback law which ended Lincoln's debt-free, interest-free money. A new national banking act was enacted and all money became interest bearing again. (Reference 4)
The late Thomas A Edison explained the matter of issuing currency this way: "If our nation can issue a dollar bond (interest bearing) it can issue a dollar bill (interest-free). The element that makes the bond good makes a bill good also. The difference between the bond and the bill is that the bond lets money brokers collect twice the amount of the bond and an additional 20 percent, whereas the currency pays nobody but those who contribute directly in some useful way. It is absurd to say that our country can issue $30 million in bonds and not $30 million in currency. Both are promises to pay: But one promise fattens the usurers (interest collectors) and the other helps the people." (Reference 1, P. 46)
The FED is owned largely by foreign banks that control our economy and Congress through the power of money and the media which they bought with profits generated with profits generated by artificial debt.
Lincoln printed debt and interest-free Greenbacks (cash) to finance an entire war. . Lincoln proved it. John F. Kennedy - a President with vision! On June 4, 1964, President Kennedy issued Executive Order 11110. This Executive Order called for the issuance of new currency - the United States Note. At the time, $4,292,893 of this currency was put into circulation. This new currency was to be distributed through the U.S. Treasury and not the Federal Reserve System. Furthermore, it was to be issued debt and interest-free. Upon Kennedy's assassination, this currency was withdrawn from circulation, never to be issued again. The media remained silent on how Kennedy would have eliminated the debt and interest payments, and therefore eliminated the FED. . U.S. history proves that issuing debt and interest-free currency allows our economy to prosper, as long as Congress controls the amount of money created.
"America Betrayed", Center For Action, 652 N. Glenview, Mesa, AZ 85213 For references 1, 12, and 17, contact The National Committee to Repeal the Federal Reserve Act (Reference 2)
Thomas D. Schauf
About the Author
Thomas Schauf has a diverse background. He has written two books revealing the banking secret from the viewpoint of a CPA court expert witness. He graduated from Northern Illinois University with a Bachelor of Science with double majors in accounting and finance.
After graduation he worked as a staff accountant for Motorola. He worked for a small Certified Public Accounting firm, owned and operated his own business brokerage firm and Certified Public Accounting practice.
Over a period of nearly ten years, he has testified in a number of cases as an expert Witness in business valuation, and has taught the arts of business valuation, business acquisition and negotiations to buyers, CPA's and lawyers on a national level in colleges and major universities.
He has taught lawyers and thousands of CPAs the art of valuation and negotiations in his copyrighted course designed to meet continuing education requirements.
He has been a controller, head of purchasing and personal for a major manufacturing company. He has been a real estate broker and aircraft flight instructor (CFII).
Mr. Schauf is no longer actively involved in "debt validation" or the use of the information in his books. Please DO NOT try to contact him.
You can see his old site www.BankHonesty.com at the WayBackMachine.com, but you will not find any information not on this site.
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