Link at

http://www.gold-eagle.com/editorials_99/turk121999.html

We Have A Right To Know

In the 1970's a very courageous gentleman named Edward Durrell claimed that substantially all of the US Gold Reserve being stored at Ft. Knox was gone. Only 1,000 tonnes or so of the 8,500 tonnes supposedly being stored there remained. The rest had been secretly taken from Ft. Knox and shipped to London in 1967 and early 1968 for sale by President Johnson in an ill-fated attempt to keep the price of Gold at $35 per ounce.

Mr. Durrell provided a lot of anecdotal evidence to support his claim. These included eyewitness accounts of hundreds of Army trucks leaving Ft. Knox in the middle of the night over a period of many weeks, supposedly loaded with the Gold bounty. Other interesting but circumstantial evidence was the sudden and unexpected dismissal of Gordon Tether, business editor for London's Financial Times, who published Mr. Durrell's claims. To my knowledge, no mainstream US newspaper dared to publish Mr. Durrell's allegations.

More circumstantial evidence emerged in the late 1970's when the US Treasury auctioned some Gold in an attempt to keep the Gold price from rising rapidly. The bullion banks bidding in the auction received 'coin-melt' bars, not good delivery bars. The coin-melt bars were fabricated in the 1930's after the Gold confiscation at that time. Coins are only 90% pure Gold, with 10% other metals added to provide durability to the Gold so that it can be used as coin without excessive wear or damage. In contrast, good delivery bars are 99% pure.

Mr. Durrell alleged that the coin-melt bars were not taken to London because their source could easily have been identified, the US being the only country that seized their citizens' Gold. Had the coin-melt bars been sold, the secret nature of the operation would have been compromised, so the coin-melt bars remained at Ft. Knox while the good delivery bars were sold in London in President Johnson's diabolical, unsuccessful scheme. Subsequent administrations, too afraid of the consequences from telling the truth, have continued the cover-up.

Clearly, the above examples are not sufficient to prove Mr. Durrell's claim, but one piece of evidence does raise serious questions. He claimed that a proper audit of the Gold reserve had not been made since the late 1950's during the Eisenhower administration. Moreover, despite his best efforts to get an audit completed, including as I recall offers to pay for the audit himself (which were not hollow promises because he was a very wealthy businessman), no audit was undertaken. The reason? The US Treasury said it was unnecessary 'because everyone knew that the Gold was still in Ft. Knox'.

The Treasury's curious response always seemed incredulous to me, so I have remained open-minded about whether the Gold was there or not. After all, we now know that President Johnson had lied to the nation about the Gulf of Tonkin incident that dragged the US into war in Viet Nam, so who is to say that he didn't also lie about the Gold in Ft. Knox?

Mr. Durrell passed away at age 90 in the early 1980's. With his passing, and the decline in inflation and the Gold price from the 1980 highs, over time this controversy was largely forgotten. I too put it largely out of mind until the early 1990's when I came to know a very wealthy industrialist with an interesting story.

I wrote about this gentlemen and his story in April 1994 (FGMR #143, Thinking the Unthinkable). He had requested anonymity, so I only refer to him as Andri, which is not his real name. Andri provided some additional interesting details, many of which filled in some unexplained gaps in Mr. Durrell's allegations.

Earlier in the year I reprinted this article because it was becoming clear to me that Mr. Durrell's and Andri's contention that the US Gold reserve was missing helped explain what was happening in the Gold market. As the huge weight of Gold being loaned and borrowed grew seemingly without end, it appeared to me that the Gold supposedly in Ft. Knox must be part of the equation. So I asked myself what could I do about it?

My answer was to try getting to the bottom of this matter for once and for all. And the only way to answer the question of whether the Gold was really in Ft. Knox was to complete an audit. Therefore, on August 30th, 1999, I wrote the following letter to US Treasury Secretary, Lawrence Summers:

Dear Mr. Summers:

Re: US Gold Reserve at Fort Knox

It is my understanding that a proper audit of the US Gold Reserve at Fort Knox has not been completed since the Eisenhower administration. I further understand that some visual inspections have been completed, but clearly, these can not be considered as a proper audit. The proper audit of bullion reserves is one undertaken by independent third parties, and includes among other safeguards, a review of security procedures and assays of Gold bars selected at random.

I am therefore concerned that the Gold Reserve at Ft. Knox may be at risk. My concerns could be alleviated if you would be kind enough to answer the following questions and provide me with the following information:

1) Is it true that a proper audit, as I've explained above, of the Gold Reserve at Fort Knox has not been completed since the Eisenhower administration? If it is not true, please provide me with a copy of the report prepared by the auditor.

2) Is it true that Treasury Department policy states that a proper audit will not be undertaken because the cost of an audit is considered to be unnecessary? If so, please explain why this expenditure, even if it were to cost a few million dollars, is unnecessary in view of the fact that it would ensure the safety of an asset that not only is of key importance, but is also worth about $70 billion at current market prices.

3) If a proper audit of the Gold Reserve at Fort Know has not been completed for a number of years, please explain why a proper audit has not been undertaken, and further, why a proper audit is not undertaken yearly as is the practice for other government assets. I look forward to receiving your response, and I thank you for your assistance. Yours sincerely, James Turk Weeks passed without any reply. Consequently, I sent the letter again on October 13th. Again, no reply.

On the surface, it would seem that my letter is a very simple one to answer. Why no reply? Why not even a letter from Mr. Summers acknowledging receipt? Does he not want to answer these seemingly very simple questions?

In any case, I am pursuing the truth. On November 22nd I wrote to my Congressman, John Sununu. I provided him with my letter to Mr. Summers, and requested that he contact Mr. Summers in order to see if he could get answers to my questions.

On December 1st, Congressman Sununu responded to me saying he had sent my letter to Secretary Summers. He also said that he would send to me Mr. Summers reply. We'll see whether or not Mr. Summers ignores my Congressman.

Why doesn't the Treasury complete an audit, thereby putting the rumors to rest? Is the Gold in Ft. Knox or not? We have a right to know.

James Turk

To contact Mr. Turk: James Turk jamesturk@fgmr.com

18 December 1999

-- Andy (2000EOD@prodigy.net), December 18, 1999

Answers

The reason no audit is the same reason records are sealed and evidence destroyed on all sorts of things, like the meetings leading to the creation of the Federal Reserve, how TPTB fomented WWI and WWII, Roswell, the Kennedy assassination ..... Klinton's Travelgate, Fostergate, Gore's Chinese connection, the Mars probes/satellite "failures" ..... (and many more) -- it's none of our (the peons -- peed upon) business. :-(

-- A (A@AisA.com), December 18, 1999.

No. Pure and simple.

And if there is any there it does not belong to the American Public.

And here's why:

Firstly we are, as the post says, talking about only $70b. These kinds of amounts of money do not take long to accumulate, even back in the 1920s. (Just as an example the US Debt in 1913 when the Federal Reserve was set up, by 1920s it was $24b).

To understand gold and the American monetory policy, it is crucial to understand the Federal Reserve. In 1913 when the Federal Reserve was set up it was granted, as an unregulated, unaccountable, unauditable, non-tax paying completely private instituion, the exclusive monoploy to issue its own "bank" note which would be used as the US currency (can you believe that). Their note was to be backed by (amongst other things) the US gold reserves and payable to them in gold by the American Government! If you do not believe it is private then besides reading the Federal Reserve Act, or examining the 12 shareholders see Court Case proves Federal Reseve's Status as a Private Instituion

"Congressman Louis T. McFadden served twelve years as Chairman of the Committee on Banking and Currency. On June 10, 1932, in the midst of the Great Depression, he addressed the House of Representatives, asking for investigations of criminal conspiracy to establish the privately owned 'Federal Reserve System'. He requested impeachment of Federal officers who had violated oaths of office both in establishing and directing the Federal Reserve -- imploring Congress to investigate an incredible scope of overt criminal acts by the Federal Reserve Board and Federal Reserve Banks. He refers to crimes including Broad, ongoing subversion of democracy; Conspiracy to remove the gold behind our currency to the foreign principals of these banks; the Financing of foreign military expansion in Germany and Japan with the very same gold removed from our public reserves [evidently, in preparation for WWII]; And conspiracy to bring about the Depression itself. "

His speech is a seminal piece of work and should be required reading for all to understand why the Constituional Framers (who made Central Banks like the Federal Reserve unconstituional), Jefferson, Jackson and others upto McFadden have all warned against such Central Banks.

Another seminal piece of work that must be also read is The Comming Battle written in 1899 which describes from the congressional record and other source documents the games that the European Banker Families have played since America's Declaration of Independence and their three prior attempts to the Federal Reserve to establish Central Banks. I have given some exerpts in Has any one else.... Read them. They will blow your mind away (and it may never be the same). They make Tom Clancy novels look like kindergarten stories.

I have quoted below some important parts of McFadden's speech to give you a summary of the Federal Reserve and its control over the gold reserves.

The complete speech (from the Congressional Record) is at: McFadden Speech to House of Representatives

(there is some editorial at the beginning of the above web page which you can skip if you wish).

------- EXERPTS FOLLOW --------- Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks.

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 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. This evil institution has impoverished and ruined the People of the United States; has bankrupted itself, and has practically bankrupted our government.

[*Although Mr. McFadden refers to the Federal Reserve Board as 'a government board', the chairman and seven board members are appointed by the President (rather than election). The board altogether is not bound either to take or comply with directives from traditional democratic channels. This has also been established in the court case sited above]

It has done this through the defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

(snip)

Some people think the Federal Reserve Banks are United States Government institutions. They are not government institutions. 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; and rich and predatory money lenders.

In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislation; and there are those who maintain an international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds, and set again their gigantic train of crime.

Those 12 private credit monopolies were deceitfully and disloyally foisted upon this country by bankers who came here from Europe and who repaid us for our hospitality by undermining our American institutions. Those bankers took money out of this country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace with Germany and Russia, and thus drove a wedge between the allies in the World War.

(snip)

It was, therefore, on the advice of others that the iniquitous Federal Reserve Act -- the death warrant of American Liberty -- became law in his [President Woodrow Wilson's] administration.

In 1912, the National Monetary Association, under the chairmanship of the late Senator Nelson W. Aldrich, made a report and presented a vicious bill called The National Reserve Association Bill. This bill is usually spoken of as The Aldrich Bill. Senator Aldrich did not write the Aldrich Bill. He was the tool of European-born bankers who for nearly 20 years had been scheming to set up a central bank in this country, and who in 1912 had spent and were continuing to spend vast sums of money to accomplish their purpose.

The Aldrich Bill was condemned in the platform upon which Theodore Roosevelt was nominated in the year 1912; and in the same year -- when Woodrow Wilson was nominated -- the Democratic platform, as adopted at the Baltimore Convention, expressly stated: "We are opposed to the Aldrich plan for a central bank.

This was plain language. The men who ruled the Democratic Party then promised the people that if they were returned to power, there would be no central bank established here while they held the reins of power.

Thirteen months later, that promise was broken; and the Wilson administration, under the tutelage of those sinister Wall Street figures who stood behind Colonel House, established here in our free country the worm-eaten, monarchical institution of the "King's Bank," to control us from the top downward, and to shackle us from the cradle to the grave. The Federal Reserve Act destroyed our old and characteristic way of doing business: It discriminated against our one-name commercial paper -- the finest in the world; it set up the antiquated two-name paper which is the present curse of this country, and which has wrecked every country which has ever given it scope: It fastened down upon this country the very tyranny from which the framers of the Constitution sought to save us.

One of the greatest battles for the preservation of this Republic was fought out here in [President] Jackson's day, when the Second Bank of the United Sates -- which was founded upon the same false principles as those which are exemplified in the Federal Reserve Act -- was hurled out of existence. [You can read about the whole episode in The Comming Battle. Jackon's veto message, which destroyed the Second Bank of the United States can be read at Andrew Jackson's Veto Message.

After the downfall of the Second Bank of the United Sates in 1837, the country was warned against the dangers that might ensue if the predatory interests, after being cast out, should come back in disguise and unite themselves to the Executive, and through him acquire control of the government. That is what the predatory interests did when they came back in the livery of hypocrisy, and under false pretenses, obtained the passage of the Federal Reserve Act.

(snip)

It has been said that the draftsman who was employed to write the text of the Federal Reserve Bill used the text of the Aldrich Bill for his purpose. It has been said that the language of the Aldrich Bill was used because the Aldrich Bill had been drawn up by expert lawyers, and seemed to be appropriate. It was indeed drawn up by lawyers. The Aldrich Bill was created by acceptance bankers of European origin in New York City. It was a copy, and in general, a translation of the Reischbank, and other European central banks.

(snip)

Not all of the Democratic members of the Sixty-third Congress voted for this great deception. Some of them remembered the teachings of Jefferson. Senator Henry Cabot Lodge wrote as follows:

'The bill, as it stands, seems to me to open the way to a vast inflation of the currency.'

In the 18 years which have passed since Senator Lodge wrote that letter of warning, the government is in the banking business as never before. Against its will it has been made the backer of swindlers in all parts of the world. Through the Federal Reserve Board and the Federal Reserve Banks the riffraff of every country is operating on the public credit of the United States Government. Meanwhile, and on account of it, we ourselves are in the midst of the greatest depression we have ever known.

(snip)

A few days before the Federal Reserve Act was passed, Sen. Elihu Root denounced the Federal Reserve Bill as an outrage on our liberties; and made the following prediction:

'Long before we wake up from our dreams of prosperity through an inflated currency, our gold will have vanished, and no rate of interest will tempt it to return.'

If ever a prophecy came true, that one did. It was impossible however, for those luminous and instructed thinkers to control the course of events.

The Federal Reserve Act became law the day before Christmas Eve in the year 1913. And shortly afterwards, the German international bankers, Kuhn, Loeb & Co., sent one of their partners here to run it.

In 1913, when the Federal Reserve Bill was submitted to the Democratic caucus, there was a discussion in regard to the form the proposed paper currency should take.

The proponents of the Federal Reserve Act, in their determination to create a new kind of paper money, had not needed to go outside of the Aldrich Bill for a model. By the terms of the Aldrich bill, bank notes were to be issued by the National Reserve Association, and were to be secured partly by gold and partly by circulating evidences of debt. The first draft of the Federal Reserve Bill presented the same general plan, that is, for bank notes as opposed to government notes -- but with certain differences of regulation.

When the provision for the issuance of Federal Reserve Notes was placed before President Wilson, he approved of it. But other Democrats were more mindful of Democratic principles; and a great protest greeted the plan.

Foremost amongst those who denounced it was William Jennings Bryan, the Secretary of State. Bryan wished to have the Federal Reserve Notes issued as government obligations.

President Wilson had an interview with him, and found him adamant. At the conclusion of the interview, Bryan left with the understanding that he would resign if the notes were made bank notes.

The President then sent for his Secretary, and explained the matter to him. Mr. Tumulty went to see Bryan, and Bryan took from his library shelves a book containing all the Democratic platforms, and read extracts from them bearing on the matter of the public currency.

Returning to the President, Mr. Tumulty told him what had happened, and ventured the opinion that Mr. Bryan was right, and that Mr. Wilson was wrong.

The President then asked Mr. Tumulty to show him where the Democratic Party in its national platforms had ever taken the view indicated by Bryan. [Evidently the President was unapprised even of the basic party position on the issue.]

Mr. Tumulty gave him the book, which he had brought from Bryan's house, and the President read very carefully plank after plank on the currency.

He then said, "I am convinced there is a great deal in what Mr. Bryan says," and thereupon it was arranged that Mr. Tumulty should see the proponents of the Federal Reserve Bill, in an effort to bring about an adjustment of the matter.

The remainder of this story may by be told in the words of Senator Glass:

The only other feature of the currency bill around which a conflict raged at this time was the note-issue provision. Long before I knew it, the President was desperately worried over it.

Some of his advisers told him Mr. Bryan could not be induced to give his support to any bill that did not provide for a 'Government Note.'

There was in the Senate and House a large Bryan following, which, united with a naturally adversary party vote, could prevent legislation.

Certain overconfident gentlemen proffered their services in the task of 'managing Bryan.' They did not budge him. When a decision could no longer be postponed, the President summoned me to the White House to say he wanted Federal Reserve Notes to be 'obligations of the United States.'

I was for an instant speechless. With all the earnestness of my being I remonstrated, pointing out the unscientific nature of such a thing, as well as the evident inconsistency of it. [Entirely unqualified.]

There is not, in truth [unqualified] any government obligation here, Mr. President, I exclaimed. It would be a pretense on its face. Was there ever a government note based primarily on the property of banking institutions? Was there ever a government issue, not one dollar of which could be put out except by demand of a bank? The suggested government obligation is so remote it could never be discerned, I concluded, out of breath.

'Exactly so, Glass,' earnestly said the President. 'Every word you say is true. The government liability is a mere thought. And so, if we can hold to the substance of the thing and give the other fellow the shadow, why not do it, if thereby we can save our bill?' [an incredible case of confusion.]

SHADOW AND SUBSTANCE! One can see from this HOW LITTLE President Wilson knew about banking.

Unknowingly, he gave the substance to the international banker, and the shadow to the common man.

Thus was Bryan circumvented in his efforts to uphold the Democratic doctrine of the rights of the people. Thus the "unscientific blur" upon the bill was perpetrated.

The "unscientific blur" however, was the fact that the United States Government, by the terms of Bryan's edict, was obliged to assume as an obligation, WHATEVER currency was issued!

Mr. Bryan was right when he insisted that the United States should preserve its sovereignty over the public currency. The "unscientific blur" was the nature of the currency itself, a nature which makes it unfit to be assumed as an obligation of the United States Government!

It is the worst currency, and the most dangerous this country has ever known.

When the proponents of the act saw that Democratic doctrine would not permit to let the proposed banks issue the new currency as bank notes, they should have stopped at that. They should not have foisted that kind of currency, namely an asset currency, on the United States Government. They should not have made the government liable on private debts of individuals and corporations; and least of all, on the private debts of foreigners."

(snip)

Before the Senate Banking and Currency Committee, while the Federal Reserve Bill was under discussion, Mr. Crozier, of Cincinnati, said:

"In other words, the imperial power of elasticity of the public currency is wielded exclusively by these central corporations owned by the banks.

This is a life and death power over ALL local banks AND ALL BUSINESS. It can be used to create or destroy prosperity, to ward off or cause stringencies or panics.

By making money artificially scarce, interest rates throughout the country can be arbitrarily raised -- and the bank tax on all business, and cost of living, increased for the profit of the banks owning these regional, central banks -- and without the slightest benefit to the people.

These 12 corporations together cover the whole country, and monopolize and use for private gain EVERY dollar of the public currency -- and all public revenues of the United States.

NOT A DOLLAR can be put into circulation among the people, by their government, without the consent of, AND ON TERMS FIXED BY, these 12 private money trusts. In defiance of this, and all other warnings, the proponents of the Federal Reserve Act created [vested this power in] the 12 private credit corporations, and gave them an absolute monopoly of the currency of the United States -- not of Federal Reserve Notes alone, but of all the currency... the Federal Reserve Act providing ways by means of which the gold and general currency in the hands of the American people could be obtained by the Federal Reserve Banks in exchange for Federal Reserve Notes -- which are not money... but merely promises to pay money.

(snip)

Mr. Chairman, if Dynamit Nobel of Germany wishes to sell dynamite to Japan to use in Manchuria or elsewhere, it can draw its bill against its Japanese customers in dollars, and send that bill to the nefarious open discount market in New York City, where the Federal Reserve Board and the Federal Reserve Banks will buy it and use it as collateral for a new issue of Federal Reserve Notes -- while at the same time the Federal Reserve Board will be helping Dynamit Nobel by stuffing its stock into the United States banking system.

Why should we send our representatives to the disarmament conference at Geneva while the Federal Reserve Board and the Federal Reserve Banks are making our government pay Japanese debts to German munitions makers? [A prelude to W.W.II.]

(snip)

Why should the public credit of the United States Government and likewise money belonging to our National Bank depositors be used to support... WHY should our National Bank depositors and our government be forced TO FINANCE THE MUNITION FACTORIES OF GERMANY AND SOVIET RUSSIA?

Mr. Chairman, if a German in Germany wishes to sell wheelbarrows to another German, he can draw a bill in dollars and get the money out of the Federal Reserve Banks before an American farmer could explain his request for a loan to move his crop to market.

In Germany, when credit instruments are being given, the creditors say, "See you, it must be of a kind that I can cash at the Reserve." Other foreigners feel the same way.

The Reserve to which these gentry refer is our reserve which, as you know, is entirely made up of money belonging to American bank depositors.

I think foreigners should cash their own trade paper and not send it over here to bankers who use it to fish cash out of the pockets of the American people.

Mr. Chairman, there is nothing like the Federal Reserve pool of confiscated bank deposits in the world. It is a public trough of American wealth in which foreigners claim rights equal to or greater than those of Americans.

The Federal Reserve Banks are agents of the foreign central banks. They use our bank depositors' money for the benefit of their foreign principals. They barter the public credit of the United States Government, and hire it out to foreigners at a profit to themselves.

(snip)

Mr. Chairman, when you hold a $10 Federal Reserve Note in your hand, you are holding a piece of paper which sooner or later is going to cost the United States Government $10 in gold -- unless the government is obliged to give up the gold standard.

(snip)

Immense sums belonging to our national bank depositors have been given to Germany on no collateral security whatever. The Federal Reserve Board and the Federal Reserve Banks have issued United States currency on mere finance drafts drawn by Germans.

Billions upon billions of our money has been pumped into Germany -- and money is still being pumped into Germany by the Federal Reserve Board and the Federal Reserve Banks. [prelude to W.W.II]

Her worthless paper is still being negotiated here and renewed here on the public credit of the United States Government, and at the expense of the American people.

On April 27, 1932, the Federal Reserve outfit sent $750,000 belonging to American bank depositors, in gold, to Germany.

A week later, another $300,000 in gold was shipped to Germany in the same way.

About the middle of May, $12,000,000 in gold was shipped to Germany by the Federal Reserve Board and the Federal Reserve Banks.

Almost every week, there is a shipment of gold to Germany.

[Although it is obvious removal of gold from the public reserves would preclude redeeming these obligations [whether or not this gold was removed to foreign principals of the Federal Reserve Banks], nevertheless, no credible party has ever argued the Federal Reserve made any bona fide attempt to preserve its capability to redeem their paper as they were obligated to, while in fact they purported to be charged with overseeing the sanctity of the public reserves.

In fact, the 'Federal Reserve' was inherently directly involved in every such removal of gold reserves, as the 'Federal Reserve Act' itself set up this conglomerate of 12 private banking institutions as direct agent of gold disbursements. Mere paper issued by the 'Federal Reserve' itself was used to move our former public gold reserves to serve foreign objectives.]

(snip)

The magnitude of the acceptance racket, as it has been developed by the Federal Reserve Banks, their foreign correspondents, and the predatory European-born bankers who set up the Federal Reserve institution here and taught our own brand of pirates how to loot the people... the magnitude of this racket is estimated to be in the neighborhood of $9,000,000,000 [nine billion dollars] a year. In the past ten years, it is said to have amounted to $90,000,000,000 [ninety billion].

(snip)

Mr. Speaker, on the 13th of January of this year, I addressed the House on the subject of the Reconstruction Finance Corporation. In the course of my remarks, I made the following statement:

"In 1928 [year prior to stock market crash], the member banks of the Federal Reserve System borrowed $60,593,690,000 from the Federal Reserve Banks on their 15-day promissory notes. Think of it! Sixty billion dollars payable upon demand in gold in the course of one single year!

The actual payment of such obligations calls for six times as much monetary gold as there is in the entire world.

Such transactions represent a grant in the course of one single year of about $7,000,000 to every member bank of the Federal Reserve System.

(snip)

Every effort has been made by the Federal Reserve Board to conceal its power. But the truth is that the Federal Reserve Board has usurped the government of the United States.

It controls everything here; and it controls our foreign relations. It makes or 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 National Government has permitted the Federal Reserve Board to steal from the people should now be restored to the people.

The people have a valid claim against the Federal Reserve Board and the Federal Reserve Banks. If that claim is enforced, Americans will not need to stand in breadlines. Homes will be saved. Families will be kept.

What is needed here is a return to the Constitution of the United States. The old struggle that was fought out here in Jackson's day must be fought over again.

The Federal Reserve Act should be repealed; and the Federal Reserve Banks -- having violated their charters -- should be liquidated immediately.

-- Interested Spectator (is@the_ring.side), December 18, 1999.

Oops, didn't close off the link. Perhaps the sysops could clean this up for me. Thanks.

The URL to the link is http://www.moneymaker.com/money/jackson1.htm

-- Interested Spectator (is@the_ring.side), December 18, 1999.

Re-Posting with html corrected below: ****************************************************************** No. Pure and simple.

And if there is any there it does not belong to the American Public.

And here's why:

Firstly we are, as the post says, talking about only $70b. These kinds of amounts of money do not take long to accumulate, even back in the 1920s. (Just as an example the US Debt in 1913 when the Federal Reserve was set up, by 1920s it was $24b).

To understand gold and the American monetory policy, it is crucial to understand the Federal Reserve. In 1913 when the Federal Reserve was set up it was granted, as an unregulated, unaccountable, unauditable, non-tax paying completely private instituion, the exclusive monoploy to issue its own "bank" note which would be used as the US currency (can you believe that). Their note was to be backed by (amongst other things) the US gold reserves and payable to them in gold by the American Government! If you do not believe it is private then besides reading the Federal Reserve Act, or examining the 12 shareholders see Court Case proves Federal Reseve's Status as a Private Instituion

"Congressman Louis T. McFadden served twelve years as Chairman of the Committee on Banking and Currency. On June 10, 1932, in the midst of the Great Depression, he addressed the House of Representatives, asking for investigations of criminal conspiracy to establish the privately owned 'Federal Reserve System'. He requested impeachment of Federal officers who had violated oaths of office both in establishing and directing the Federal Reserve -- imploring Congress to investigate an incredible scope of overt criminal acts by the Federal Reserve Board and Federal Reserve Banks. He refers to crimes including Broad, ongoing subversion of democracy; Conspiracy to remove the gold behind our currency to the foreign principals of these banks; the Financing of foreign military expansion in Germany and Japan with the very same gold removed from our public reserves [evidently, in preparation for WWII]; And conspiracy to bring about the Depression itself. "

His speech is a seminal piece of work and should be required reading for all to understand why the Constituional Framers (who made Central Banks like the Federal Reserve unconstituional), Jefferson, Jackson and others upto McFadden have all warned against such Central Banks.

Another seminal piece of work that must be also read is The Comming Battle written in 1899 which describes from the congressional record and other source documents the games that the European Banker Families have played since America's Declaration of Independence and their three prior attempts to the Federal Reserve to establish Central Banks. I have given some exerpts in Has any one else.... Read them. They will blow your mind away (and it may never be the same). They make Tom Clancy novels look like kindergarten stories.

I have quoted below some important parts of McFadden's speech to give you a summary of the Federal Reserve and its control over the gold reserves.

The complete speech (from the Congressional Record) is at: McFadden Speech to House of Representatives

(there is some editorial at the beginning of the above web page which you can skip if you wish).

------- EXERPTS FOLLOW ---------Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks.

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 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. This evil institution has impoverished and ruined the People of the United States; has bankrupted itself, and has practically bankrupted our government.

[*Although Mr. McFadden refers to the Federal Reserve Board as 'a government board', the chairman and seven board members are appointed by the President (rather than election). The board altogether is not bound either to take or comply with directives from traditional democratic channels. This has also been established in the court case sited above]

It has done this through the defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

(snip)

Some people think the Federal Reserve Banks are United States Government institutions. They are not government institutions. 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; and rich and predatory money lenders.

In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislation; and there are those who maintain an international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds, and set again their gigantic train of crime.

Those 12 private credit monopolies were deceitfully and disloyally foisted upon this country by bankers who came here from Europe and who repaid us for our hospitality by undermining our American institutions. Those bankers took money out of this country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace with Germany and Russia, and thus drove a wedge between the allies in the World War.

(snip)

It was, therefore, on the advice of others that the iniquitous Federal Reserve Act -- the death warrant of American Liberty --became law in his [President Woodrow Wilson's] administration.

In 1912, the National Monetary Association, under the chairmanship of the late Senator Nelson W. Aldrich, made a report and presented a vicious bill called The National Reserve Association Bill. This bill is usually spoken of as The Aldrich Bill. Senator Aldrich did not write the Aldrich Bill. He was the tool of European-born bankers who for nearly 20 years had been scheming to set up a central bank in this country, and who in 1912 had spent and were continuing to spend vast sums of money to accomplish their purpose.

The Aldrich Bill was condemned in the platform upon which Theodore Roosevelt was nominated in the year 1912; and in the same year --when Woodrow Wilson was nominated -- the Democratic platform, as adopted at the Baltimore Convention, expressly stated: "We are opposed to the Aldrich plan for a central bank.

This was plain language. The men who ruled the Democratic Party then promised the people that if they were returned to power, there would be no central bank established here while they held the reins of power.

Thirteen months later, that promise was broken; and the Wilson administration, under the tutelage of those sinister Wall Street figures who stood behind Colonel House, established here in our free country the worm-eaten, monarchical institution of the "King's Bank," to control us from the top downward, and to shackle us from the cradle to the grave. The Federal Reserve Act destroyed our old and characteristic way of doing business: It discriminated against our one-name commercial paper -- the finest in the world; it set up the antiquated two-name paper which is the present curse of this country, and which has wrecked every country which has ever given it scope: It fastened down upon this country the very tyranny from which the framers of the Constitution sought to save us.

One of the greatest battles for the preservation of this Republic was fought out here in [President] Jackson's day, when the Second Bank of the United Sates -- which was founded upon the same false principles as those which are exemplified in the Federal Reserve Act -- was hurled out of existence. [You can read about the whole episode in The Comming Battle. Jackon's veto message, which destroyed the Second Bank of the United States can be read at Andrew Jackson's Veto Message]

After the downfall of the Second Bank of the United Sates in 1837, the country was warned against the dangers that might ensue if the predatory interests, after being cast out, should come back in disguise and unite themselves to the Executive, and through him acquire control of the government. That is what the predatory interests did when they came back in the livery of hypocrisy, and under false pretenses, obtained the passage of the Federal Reserve Act.

(snip)

It has been said that the draftsman who was employed to write the text of the Federal Reserve Bill used the text of the Aldrich Bill for his purpose. It has been said that the language of the Aldrich Bill was used because the Aldrich Bill had been drawn up by expert lawyers, and seemed to be appropriate. It was indeed drawn up by lawyers. The Aldrich Bill was created by acceptance bankers of European origin in New York City. It was a copy, and in general, a translation of the Reischbank, and other European central banks.

(snip)

Not all of the Democratic members of the Sixty-third Congress voted for this great deception. Some of them remembered the teachings of Jefferson. Senator Henry Cabot Lodge wrote as follows:

'The bill, as it stands, seems to me to open the way to a vast inflation of the currency.'

In the 18 years which have passed since Senator Lodge wrote that letter of warning, the government is in the banking business as never before. Against its will it has been made the backer of swindlers in all parts of the world. Through the Federal Reserve Board and the Federal Reserve Banks the riffraff of every country is operating on the public credit of the United States Government. Meanwhile, and on account of it, we ourselves are in the midst of the greatest depression we have ever known.

(snip)

A few days before the Federal Reserve Act was passed, Sen. Elihu Root denounced the Federal Reserve Bill as an outrage on our liberties; and made the following prediction:

'Long before we wake up from our dreams of prosperity through an inflated currency, our gold will have vanished, and no rate of interest will tempt it to return.'

If ever a prophecy came true, that one did. It was impossible however, for those luminous and instructed thinkers to control the course of events.

The Federal Reserve Act became law the day before Christmas Eve in the year 1913. And shortly afterwards, the German international bankers, Kuhn, Loeb & Co., sent one of their partners here to run it.

In 1913, when the Federal Reserve Bill was submitted to the Democratic caucus, there was a discussion in regard to the form the proposed paper currency should take.

The proponents of the Federal Reserve Act, in their determination to create a new kind of paper money, had not needed to go outside of the Aldrich Bill for a model. By the terms of the Aldrich bill, bank notes were to be issued by the National Reserve Association, and were to be secured partly by gold and partly by circulating evidences of debt. The first draft of the Federal Reserve Bill presented the same general plan, that is, for bank notes as opposed to government notes -- but with certain differences of regulation.

When the provision for the issuance of Federal Reserve Notes was placed before President Wilson, he approved of it. But other Democrats were more mindful of Democratic principles; and a great protest greeted the plan.

Foremost amongst those who denounced it was William Jennings Bryan, the Secretary of State. Bryan wished to have the Federal Reserve Notes issued as government obligations.

President Wilson had an interview with him, and found him adamant. At the conclusion of the interview, Bryan left with the understanding that he would resign if the notes were made bank notes.

The President then sent for his Secretary, and explained the matter to him. Mr. Tumulty went to see Bryan, and Bryan took from his library shelves a book containing all the Democratic platforms, and read extracts from them bearing on the matter of the public currency.

Returning to the President, Mr. Tumulty told him what had happened, and ventured the opinion that Mr. Bryan was right, and that Mr. Wilson was wrong.

The President then asked Mr. Tumulty to show him where the Democratic Party in its national platforms had ever taken the view indicated by Bryan. [Evidently the President was unapprised even of the basic party position on the issue.]

Mr. Tumulty gave him the book, which he had brought from Bryan's house, and the President read very carefully plank after plank on the currency.

He then said, "I am convinced there is a great deal in what Mr. Bryan says," and thereupon it was arranged that Mr. Tumulty should see the proponents of the Federal Reserve Bill, in an effort to bring about an adjustment of the matter.

The remainder of this story may by be told in the words of Senator Glass:

The only other feature of the currency bill around which a conflict raged at this time was the note-issue provision. Long before I knew it, the President was desperately worried over it.

Some of his advisers told him Mr. Bryan could not be induced to give his support to any bill that did not provide for a 'Government Note.'

There was in the Senate and House a large Bryan following, which, united with a naturally adversary party vote, could prevent legislation.

Certain overconfident gentlemen proffered their services in the task of 'managing Bryan.' They did not budge him. When a decision could no longer be postponed, the President summoned me to the White House to say he wanted Federal Reserve Notes to be 'obligations of the United States.'

I was for an instant speechless. With all the earnestness of my being I remonstrated, pointing out the unscientific nature of such a thing, as well as the evident inconsistency of it. [Entirely unqualified.]

There is not, in truth [unqualified] any government obligation here, Mr. President, I exclaimed. It would be a pretense on its face. Was there ever a government note based primarily on the property of banking institutions? Was there ever a government issue, not one dollar of which could be put out except by demand of a bank? The suggested government obligation is so remote it could never be discerned, I concluded, out of breath.

'Exactly so, Glass,' earnestly said the President. 'Every word you say is true. The government liability is a mere thought. And so, if we can hold to the substance of the thing and give the other fellow the shadow, why not do it, if thereby we can save our bill?' [an incredible case of confusion.]

SHADOW AND SUBSTANCE! One can see from this HOW LITTLE President Wilson knew about banking.

Unknowingly, he gave the substance to the international banker, and the shadow to the common man.

Thus was Bryan circumvented in his efforts to uphold the Democratic doctrine of the rights of the people. Thus the "unscientific blur" upon the bill was perpetrated.

The "unscientific blur" however, was the fact that the United States Government, by the terms of Bryan's edict, was obliged to assume as an obligation, WHATEVER currency was issued!

Mr. Bryan was right when he insisted that the United States should preserve its sovereignty over the public currency. The "unscientific blur" was the nature of the currency itself, a nature which makes it unfit to be assumed as an obligation of the United States Government!

It is the worst currency, and the most dangerous this country has ever known.

When the proponents of the act saw that Democratic doctrine would not permit to let the proposed banks issue the new currency as bank notes, they should have stopped at that. They should not have foisted that kind of currency, namely an asset currency, on the United States Government. They should not have made the government liable on private debts of individuals and corporations; and least of all, on the private debts of foreigners."

(snip)

Before the Senate Banking and Currency Committee, while the Federal Reserve Bill was under discussion, Mr. Crozier, of Cincinnati, said:

"In other words, the imperial power of elasticity of the public currency is wielded exclusively by these central corporations owned by the banks.

This is a life and death power over ALL local banks AND ALL BUSINESS. It can be used to create or destroy prosperity, to ward off or cause stringencies or panics.

By making money artificially scarce, interest rates throughout the country can be arbitrarily raised -- and the bank tax on all business, and cost of living, increased for the profit of the banks owning these regional, central banks -- and without the slightest benefit to the people.

These 12 corporations together cover the whole country, and monopolize and use for private gain EVERY dollar of the public currency -- and all public revenues of the United States.

NOT A DOLLAR can be put into circulation among the people, by their government, without the consent of, AND ON TERMS FIXED BY, these 12 private money trusts. In defiance of this, and all other warnings, the proponents of the Federal Reserve Act created [vested this power in] the 12 private credit corporations, and gave them an absolute monopoly of the currency of the United States -- not of Federal Reserve Notes alone, but of all the currency... the Federal Reserve Act providing ways by means of which the gold and general currency in the hands of the American people could be obtained by the Federal Reserve Banks in exchange for Federal Reserve Notes -- which are not money... but merely promises to pay money.

(snip)

Mr. Chairman, if Dynamit Nobel of Germany wishes to sell dynamite to Japan to use in Manchuria or elsewhere, it can draw its bill against its Japanese customers in dollars, and send that bill to the nefarious open discount market in New York City, where the Federal Reserve Board and the Federal Reserve Banks will buy it and use it as collateral for a new issue of Federal Reserve Notes -- while at the same time the Federal Reserve Board will be helping Dynamit Nobel by stuffing its stock into the United States banking system.

Why should we send our representatives to the disarmament conference at Geneva while the Federal Reserve Board and the Federal Reserve Banks are making our government pay Japanese debts to German munitions makers? [A prelude to W.W.II.]

(snip)

Why should the public credit of the United States Government and likewise money belonging to our National Bank depositors be used to support... WHY should our National Bank depositors and our government be forced TO FINANCE THE MUNITION FACTORIES OF GERMANY AND SOVIET RUSSIA?

Mr. Chairman, if a German in Germany wishes to sell wheelbarrows to another German, he can draw a bill in dollars and get the money out of the Federal Reserve Banks before an American farmer could explain his request for a loan to move his crop to market.

In Germany, when credit instruments are being given, the creditors say, "See you, it must be of a kind that I can cash at the Reserve." Other foreigners feel the same way.

The Reserve to which these gentry refer is our reserve which, as you know, is entirely made up of money belonging to American bank depositors.

I think foreigners should cash their own trade paper and not send it over here to bankers who use it to fish cash out of the pockets of the American people.

Mr. Chairman, there is nothing like the Federal Reserve pool of confiscated bank deposits in the world. It is a public trough of American wealth in which foreigners claim rights equal to or greater than those of Americans.

The Federal Reserve Banks are agents of the foreign central banks. They use our bank depositors' money for the benefit of their foreign principals. They barter the public credit of the United States Government, and hire it out to foreigners at a profit to themselves.

(snip)

Mr. Chairman, when you hold a $10 Federal Reserve Note in your hand, you are holding a piece of paper which sooner or later is going to cost the United States Government $10 in gold -- unless the government is obliged to give up the gold standard.

(snip)

Immense sums belonging to our national bank depositors have been given to Germany on no collateral security whatever. The Federal Reserve Board and the Federal Reserve Banks have issued United States currency on mere finance drafts drawn by Germans.

Billions upon billions of our money has been pumped into Germany --and money is still being pumped into Germany by the Federal Reserve Board and the Federal Reserve Banks. [prelude to W.W.II]

Her worthless paper is still being negotiated here and renewed here on the public credit of the United States Government, and at the expense of the American people.

On April 27, 1932, the Federal Reserve outfit sent $750,000 belonging to American bank depositors, in gold, to Germany.

A week later, another $300,000 in gold was shipped to Germany in the same way.

About the middle of May, $12,000,000 in gold was shipped to Germany by the Federal Reserve Board and the Federal Reserve Banks.

Almost every week, there is a shipment of gold to Germany.

[Although it is obvious removal of gold from the public reserves would preclude redeeming these obligations [whether or not this gold was removed to foreign principals of the Federal Reserve Banks], nevertheless, no credible party has ever argued the Federal Reserve made any bona fide attempt to preserve its capability to redeem their paper as they were obligated to, while in fact they purported to be charged with overseeing the sanctity of the public reserves.

In fact, the 'Federal Reserve' was inherently directly involved in every such removal of gold reserves, as the 'Federal Reserve Act' itself set up this conglomerate of 12 private banking institutions as direct agent of gold disbursements. Mere paper issued by the 'Federal Reserve' itself was used to move our former public gold reserves to serve foreign objectives.]

(snip)

The magnitude of the acceptance racket, as it has been developed by the Federal Reserve Banks, their foreign correspondents, and the predatory European-born bankers who set up the Federal Reserve institution here and taught our own brand of pirates how to loot the people... the magnitude of this racket is estimated to be in the neighborhood of $9,000,000,000 [nine billion dollars] a year. In the past ten years, it is said to have amounted to $90,000,000,000 [ninety billion].

(snip)

Mr. Speaker, on the 13th of January of this year, I addressed the House on the subject of the Reconstruction Finance Corporation. In the course of my remarks, I made the following statement:

"In 1928 [year prior to stock market crash], the member banks of the Federal Reserve System borrowed $60,593,690,000 from the Federal Reserve Banks on their 15-day promissory notes. Think of it! Sixty billion dollars payable upon demand in gold in the course of one single year!

The actual payment of such obligations calls for six times as much monetary gold as there is in the entire world.

Such transactions represent a grant in the course of one single year of about $7,000,000 to every member bank of the Federal Reserve System.

(snip)

Every effort has been made by the Federal Reserve Board to conceal its power. But the truth is that the Federal Reserve Board has usurped the government of the United States.

It controls everything here; and it controls our foreign relations. It makes or 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 National Government has permitted the Federal Reserve Board to steal from the people should now be restored to the people.

The people have a valid claim against the Federal Reserve Board and the Federal Reserve Banks. If that claim is enforced, Americans will not need to stand in breadlines. Homes will be saved. Families will be kept.

What is needed here is a return to the Constitution of the United States. The old struggle that was fought out here in Jackson's day must be fought over again.

The Federal Reserve Act should be repealed; and the Federal Reserve Banks -- having violated their charters -- should be liquidated immediately.

-- Interested Spectator (is@the_ring.side), December 18, 1999.

URL to "The Comming Battle"

http://www-douzzer.ai.mit.edu:8080/conspiracy/comingbattle/cmgbtl.htm

URL to TB2000 thread that fails is

http://www.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=00209Z

-- Interested Spectator (is@the_ring.side), December 18, 1999.

I'd vote no. I would be VERY surprised if we have even a fraction of the gold we used to have. And what percentage of even that fraction is actually under control of the U.S. government?

A list of just who benefited from the sale of gold for French held U.S. dollars (besides DeGaulle, that is) would be very interesting reading.

-- chairborne commando (what-me-worry@armageddon.com), December 18, 1999.

I'll bet its the Rothschilds who bought the gold. They got the gold out of the Fed and have never stopped believing in gold as the true stored value medium.

Take a look at my posts in

OT?IF Y2k is such a threat why is gold/silver so cheap explaining what is happening with gold and what I think gold has to do with y2k.

-- Interested Spectator (is@the_ring.side), December 18, 1999.

comments: You may also recall that when FDR ILLEGALLY forced confiscation of all privately-held gold/certificates by US citizens(except, of course, for the PRIVATELY-HELD Federal Reserve), his exact wording of the E.O. stated that the gold was to be handed over to "...the Federal Reserve Bank..."

Since when the hell is an elected official allowed to confiscate private property against ONE group for delivery to another? The E.O. was CLEARLY unconstitutional, yet at the time, why was no alarm raised by Congress?

One of the GolD-Eagle articles that I just read (it's in the top-most dozen somewhere) states that Nixon took the USA OFF the gold standard in 1972 BECAUSE there wasn't enough gold in Fort Knox to cover the US "reserve" requirement!

No question in my mind that with the forward-hedging gold scam that is still being allowed on a world-wide scale(a form of economic blackmail against the very producers of the gold metal) by the big money names, that there is EVERY attempt over the past 100 years to fully control the financial accounts of every country and everyone by forcing everyone into penury with worthless fiat money, all the while accumulating ALL the old reserves around the world, so that when the paper currency collapses(and it WILL-- there has NOT been one paper currency IN HISTORY that has not eventually become totally worthless)ther will be no one with "wealth" except those that have the gold, which is EXACTLY what gold is and has been throughout history!

For a good starting point of all this , read"The Creature From Jekyll Island", and the first thing you will read about is how the Rothschilds got to where they are by playing both ends against the middle, by acting as almost a "sovereign courier" with diplomatic immunity, starting several hundred years ago. Also, "Rothschild" is simply German for "red shield", which was their diplomatic pouch ensign--read the book to find out what the family's last name REALLY is!

That will give you a good start into understanding the long-term plans of these bloodsuckers.

-- profit of doom (doom@helltopay.ca), December 18, 1999.