Read parts I-III:

“The Money Trust” “Overview,” “The Second Boer War”

By Richard C. Cook, May 14, 2025

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“The Money Trust” Part II: “The Russo -Japanese War,” “The ‘Great Rapprochement’ Between Britain and the US” Richard C. Cook

By Richard C. Cook, May 16, 2025

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“The Money Trust”: “Creation of the Federal Reserve.” Richard C. Cook

By Richard C. Cook, May 20, 2025

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Serialization of selections from my book Our Country, Then and Now continues with the cooperation of my publisher, Clarity Press. Today we have the fourth installment of Chapter 9, “The Money Trust”: “The Creation of the Federal Reserve” — Part II.

The previous chapter, “Rule Britannia,” explained the 500-year rise of Great Britain, its ascent to world dominance by the 19th century, and its late-19th-century rivalry with the rising power of Germany. This lengthy process culminated in the decision by diamond/gold magnate Cecil Rhodes and his henchman Lord Nathaniel Rothschild to use the wealth of South Africa to create a “secret society” to “recover the United States of America for the British Empire.”

Next to come would be Britain’s project of launching a century of world wars, with essential US help, in order to annihilate Germany, then Russia, as the last standing opponents to British global hegemony. Capturing of the US as accessory to the crime would be accomplished by financial means; namely by using the US Money Trust, headed by J.P. Morgan and the Rockefellers, to create the Federal Reserve. This would allow US banks, in league with the overarching power of the Bank of England, to supply Britain with the immense monetary sums needed to launch and carry out World War I, soon to be called “The Great War.”

The Federal Reserve Act was passed on December 24, 1913—Christmas Eve. It was the biggest Christmas present to the globalist financiers in history. The Federal Reserve Act was preceded by passage of the Sixteenth Amendment to the Constitution—the income tax amendment. This amendment was needed so that the American public could be forced to pay for the gigantic government deficits the Federal Reserve Act would soon produce. And it is still going on. Today the government’s debt is over $36 trillion.

The Federal Reserve Act was signed by President Woodrow Wilson, who had been a relative unknown when he was elected a little over a year earlier in 1912. How and why was Woodrow Wilson installed in the presidency? The story is almost unknown in the usual accounts of American history, but you can read about it here.

Creation of the Federal Reserve — Part II

Image: President William Howard Taft (Public Domain)

Meanwhile, one of the strangest episodes in the history of US presidential politics was unfolding. President William Howard Taft was running for re-election as president against Democrat Woodrow Wilson, former president of Princeton University and current governor of New Jersey. Taft had been a faithful successor to the wildly popular Theodore Roosevelt, and there was no reason on the face of the planet that Taft should not have been re-elected, especially since Wilson was relatively unknown at the national level and did not receive his party’s nomination until the 46^th convention ballot.

But on the Republican side, former President Theodore Roosevelt had broken with Taft for reasons no one has ever been able convincingly to explain. Much has been made in the historical literature about the differences between the two men, claiming that Roosevelt’s views were more “progressive” than the more conservative Taft. But in some respects, the opposite was true. Taft wanted more of the trusts broken up than did Roosevelt.

Roosevelt had rejected calls to run again in 1912. After all, he had already served as president for a majority of William McKinley’s term plus four full years of his own. There was no national emergency calling out for his return to the presidency. In fact, a party split could only be harmful to government stability and to the Republican Party’s hold on power. Amid considerable acrimony, Roosevelt had lost out against Taft in the party convention and had no reason now to refrain from folding his tent and going home. [1]

But at the last moment, Roosevelt decided to run on a third-party ticket, which was called the “Progressive” Party, or, more colloquially, the “Bull Moose” Party, the “moose” obviously being Roosevelt himself. It would have been impossible for Roosevelt not to have known that splitting the Republican Party between two equally-matched candidates could have only one result: Woodrow Wilson would be elected president.

It was a set-up. The Republicans intended to lose. Why? Obviously, they were being told to do so. Who could have told them? Only their bosses—the bankers.

Woodrow Wilson, who was born in Virginia and grew up in Georgia, was the first Southerner elected president since Zachary Taylor in 1848 and the second president, after John Tyler, to have been a citizen of the Confederacy. He was also the only president to hold a PhD. A capable scholar, but a chameleon in regard to his political views, no one quite knew where he stood on anything. The only certainty was that he was a racist, later going out of his way to assure that positions filled with the federal government would not go to blacks.

During his 1912 presidential campaign, Wilson bitterly attacked Wall Street. He claimed that the Republican Party had given their campaign contributors—the financiers—“special favors and monopolistic advantages.” [2] He said, “The Republican Party has put the intelligence of this country into the hands of receivers in Wall Street offices.” Wilson claimed he would “break up that little coterie” of financiers and politicians “that has determined what the government of the United States should do.” In another speech he said:

“The great monopoly in this country is the monopoly of big credits. So long as that exists, our old variety and freedom and individual energy of development are out of the question. A great industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men.”

Wilson was elected in 1912 but with only 41.8 percent of the popular vote. It was the lowest proportion of the popular vote since Lincoln won with 39.8 percent in 1860. But 1860 was a time of extreme crisis with votes splintered among four candidates and the nation on the cusp of dissolution. In 1912, the only crisis was that the bankers were very unhappy and very unpopular.

In the election, Roosevelt received 27.4 percent and Taft 23.2 percent of the popular vote. Together, Roosevelt and Taft had won a clear majority—but they weren’t together, but in opposition. The vote-splitting project worked like a charm, with Socialist Party candidate Eugene Debs receiving 6.0 percent. After the election, the results of which he accepted without protest, Taft spent the World War I years as a professor at Yale University, where as a student he had been a member of the elite Skull and Bones. He got his reward in 1921, when President Warren Harding named him Chief Justice of the United States.

Image: President Woodrow Wilson (Public Domain)

After Wilson was inaugurated as the 28^th president of the US on March 4, 1913, he had little to say about banking reform. Instead, Democratic Congressman Carter Glass of Virginia, chairman of the House Committee on Banking and Currency, took up the issue. After some murky exchanges with Wilson, Glass got the message that the bill he would be proposing had better be very close to the Aldrich Plan that the bankers held in such high regard. In fact, he had been told as much by the Currency Committee of the American Bankers Association that now entered the fray and that ultimately got their way. Carter Glass also got his reward by later becoming Wilson’s treasury secretary.

The Federal Reserve Act, a bill with immense significance for the future of money creation in the US and the world, sailed into passage with little debate. It was passed on December 23, 1913, by the House of Representatives, then by the Senate the following day, Christmas Eve. It was signed immediately by President Woodrow Wilson. The Federal Reserve Board took office in August 1914.

The Sixteenth Amendment to the Constitution, authorizing a federal income tax, resolved decades of controversy about such a tax. This amendment had been ratified prior to passage of the Federal Reserve Act. Between the income tax amendment and the Federal Reserve Act, the stage was set just in time to enable the massive explosion of American spending on World War I and the huge profits the financial system would make in handling all that money. Another likely reason European bankers like Paul Warburg and the Rothschilds were instrumental in instigating the Federal Reserve was so that Britain and France could use it to finance their project in fomenting a major war of annihilation against Germany. If this was the plan, it worked.

But some spoke up in opposition. Congressman Charles Lindbergh, Sr., said:

“This Act establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized… The worst legislative crime of the age is perpetrated by this banking and currency bill. The caucus of the party bosses have again operated and prevented the people from getting the benefits of their own government.”

Lindbergh spoke of the “invisible government.” President Wilson was well aware of this also, having written in The New Freedom in 1913:

‘‘Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they better not speak above their breath when they speak in condemnation of it.” [3]

The Federal Reserve was created by this “something,” this “power.” Wilson knew of it but did nothing to stop it or even slow it down, becoming among those who would not speak above their breath “in condemnation of it.” [But Wilson was never a free actor. His handler and controller has long been known to have been the secretive financial lobbyist, Col. Edward Mandell House.]

Through the Federal Reserve Act of 1913, the US Congress ceded its Constitutional power to create the nation’s currency and regulate its value. It ceded that power to the private banking industry. So whoever controls the banking industry controls the US. It was then that the US ceased to be a sovereign republic. From then until today it’s the Money Trust that rules.

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Richard C. Cook is a retired U.S. federal analyst with extensive experience across various government agencies, including the U.S. Civil Service Commission, FDA, the Carter White House, NASA, and the U.S. Treasury. He is a graduate of the College of William and Mary. As a whistleblower at the time of the Challenger disaster, he exposed the flawed O-ring joints that destroyed the Space Shuttle, documenting his story in the book “Challenger Revealed.” After serving at Treasury, he became a vocal critic of the private finance-controlled monetary system, detailing his concerns in “We Hold These Truths: The Hope of Monetary Reform.” He served as an adviser to the American Monetary Institute and worked with Congressman Dennis Kucinich to advocate for replacing the Federal Reserve with a genuine national currency. See his new book, Our Country, Then and Now, Clarity Press, 2023. Also see his Three Sages Substack and his American Geopolitical Institute articles at https://www.vtforeignpolicy.com/category/agi/.

“Every human enterprise must serve life, must seek to enrich existence on earth, lest man become enslaved where he seeks to establish his dominion!” Bô Yin Râ (Joseph Anton Schneiderfranken, 1876-1943), translation by Posthumus Projects Amsterdam, 2014. Also download the Kober Press edition of The Book on the Living God here.

Notes

[1] William Howard Taft had been a long-time Roosevelt ally. For example, when he was US solicitor general, Taft had urged President William McKinley to appoint Roosevelt Assistant Secretary of the Navy. Later, Roosevelt made Taft first civil governor of the Philippine colony. He then oversaw the Philippine genocide.

[2] Prins, p.30.

[3] <https://www.goodreads.com/work/quotes/2528363-the-new-freedom-a-call-for-the-emancipation-of-the-generous-energies-of>

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