

                B A C K G R O U N D   I N F O R M A T I O N



                         FEDERAL  RESERVE  SYSTEM

The Federal Reserve System, often called the Fed, is our nation's central
bank.  Created by Congress in 1913, it became the federal government agency
responsible for monetary policy -- influencing the supply and cost of
money.  The Fed also supervises banking organizations and provides services
to financial institutions.  These tasks, carried out by the Board of
Governors and the twelve regional Federal Reserve Banks, help provide a
growing economy with stable prices and a safe and flexible banking system.


                           BOARD  OF  GOVERNORS

The Board of Governors, located in Washington, DC, is the Fed's central
coordinating body.  Its primary function is the formulation of monetary
policy, but the Board also has supervisory and regulatory responsibilities
over the activities of banking organizations and Federal Reserve Banks.

The Board is comprised of seven members who are appointed by the President
and confirmed by the Senate.  The full term of a Board member is fourteen
years,  and the seven terms are arranged so that one expires in every even-
numbered year.  From among the seven Board members, the President names,
subject to Senate confirmation, the Board's chairman and vice chairman to
four-year terms.

     Current Fed Board Members                  Term Expires

     Alan Greenspan, Chairman                   January 31, 1992
     Manuel H. Johnson, Vice Chairman           January 31, 2000
     Wayne D. Angell                            January 31, 1994
     Vacant                                     January 31, 1996
     Edward W. Kelley, Jr.                      January 31, 1990
     John P. LaWare                             January 31, 2002
     Martha R. Seger                            January 31, 1998


                          FEDERAL  RESERVE  BANKS

To carry out the functions of the Fed, the country has been divided into
twelve districts, each served by a Federal Reserve Bank.  Some important
Reserve Bank services are check clearing, electronic funds transfer,
providing currency and coin, examining banks, processing bank holding
company applications, lending to financial institutions, and acting as
fiscal agent for the U.S. Treasury.

Reserve Banks are federally chartered corporations whose stockholders are
their district's national banks and state chartered banks that are members
of the Federal Reserve System.  Separate nine-member boards of directors
govern each of these twelve banks.  A Reserve Bank's stockholders elect six
of the directors, and the Board of Governors appoint the other three.
Directors appoint the Reserve Bank president (the chief executive officer)
and the first vice president (the chief administrative officer) to five-year terms, subject to the Brd of Governors' approval.


                             MONETARY  POLICY

The Board of Governors and the reserve banks have responsibility for open
market operations -- the Fed's primary monetary policy tool.  Through the
buying and selling of U.S. Government securities, the Fed influences bank
reserves.  Other things remaining equal, a purchase of government
securities by the Fed adds reserves to the commercial banking system,
enabling banks to expand their lending and investing.  Conversely, the sale
of securities by the Federal Reserve withdraws reserves from the banking
system.

Open market operations are the responsibility of the Federal Open Market
Committee, often called the FOMC.  It is composed of the seven members of
the Board of Governors and five of the reserve bank presidents.  The
president of the Federal Reserve Bank of New York serves on a continuous
basis; the presidents of the other reserve banks serve on a rotating basis.
The FOMC, which Congress established in 1935, is required to meet in
Washington, DC. at least four times a year.  Typically, it meets once every
five to eight weeks.

The Board of Governors and the reserve banks also share responsibility for
setting the discount rate -- another important monetary policy tool.  It is
the rate financial institutions pay to borrow from the Fed for temporary,
emergency, or seasonal purposes.  By raising or lowering the discount rate,
the Fed influences the cost and availability of bank reserves.  The
discount rate is set by the directors of each reserve bank every two weeks,
subject to determination and review by the Board of Governors.


                 OFTEN  ASKED  QUESTIONS  ABOUT  THE  FED

The unique structure of the Fed often raises three questions:

First, Who owns the Fed?  Although Fed member banks own stock in reserve
banks, their ownership rights are restricted.  If the Federal Reserve Banks
were to be liquidated and their assets sold, Fed member banks would only
receive back what they paid for their stock.  The value of the Fed's stock
over and above that would be returned to the U.S. Treasury.

Second, Where does the Fed receive its income?  Most of the Fed's earnings
come from its  portfolio of U.S. Government securities.  The interest on
them, for example, accounted for most of the Fed's $21.8 billion revenues
in 1989.  From its revenues the Fed pays its expenses and a 6 percent
statutory dividend on its member banks stock.  The remainder is returned to
the U.S. Treasury.  In 1989, for example, the Fed paid $21.6 billion to the
U.S. Treasury.  Since 1914, the Fed has paid more than $221 billion to the
U.S. Treasury.

Third, Since the Fed has considerable discretion in carrying out is
responsibilities, to whom is it accountable?  To ensure financial
accountability, reserve banks are audited by the Board of Governors, which
in turn, is audited by a private accounting firm.  Also, the General
Accounting Office (GAO) can audit selected Fed operations.
The Fed's ultimate accountability is to Congress which at any time can
amend the Federal Reserve Act.  Legislation requires the Fed to report
annually on its activities to the Speaker of the House of Representatives,
and twice a year to the Banking Committees of Congress on its plans for
monetary policy.  The Fed also testifies before Congress when requested.



                                                              April 1990



 
 
 
 
 


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The Commercial Credit System

          When Congress borrows money on the credit of the  United  States,
bonds are thus legislated into existence and deposited as credit entries in
Federal Reserve banks.  United States bonds,  bills  and  notes  constitute
money  as affirmed by the Supreme Court (Legal Tender Cases, 110 U.S. 421), and
this money when deposited with the Fed becomes collateral  from  whence the 
Treasury  may  write  checks  against  the  credit thus created in its account
(12 USC  391).   For  example,  suppose  Congress  appropriates  an expenditure
of  $1 billion.  To finance the appropriation Congress creates the $1 billion
worth of bonds out of thin air  and  deposits  it  with  the privately  owned
Federal Reserve System.  Upon receiving the bonds, the Fed credits  $1  billion
to  the  Treasury's  checking  account,  holding  the deposited  bonds  as
collateral.  When the United States deposits its bonds with the Federal Reserve
System, private credit is extended to the Treasury by the Fed.  Under its power
to borrow money, Congress is authorized by the Constitution to contract debt,
and whenever something is borrowed  it  must be  returned.  When Congress
spends the contracted private credit, each use of credit is debt which must be
returned  to  the  lender  or  Fed.   Since Congress  authorizes  the 
expenditure  of  this private credit, the United States incurs  the  primary 
obligation  to  return  the  borrowed  credit, creating  a  National  Debt 
which  results  when  credit  is not returned. However, if anyone else accepts
this private credit and uses it to purchase goods  and  services,  the user
voluntarily incurs the obligation requiring him to make a return of income
whereby a portion of the income is collected by  the  IRS  and  delivered  to
the Federal Reserve bankers.  Actually the federal income tax imparts two
separate  obligations:   the  obligation  to file  a  return  and  the
obligation to abide by the Internal Revenue Code. The obligation to make a
return of  income  for  using  private  credit  is recognized  in  law  as  an 
irrecusable  obligation,  which  according  to 'Bouvier's Law Dictionary' (1914
ed.),  is  "a  term  used  to  indicate  a certain  class  of  contractual
obligations recognized by the law which are imposed upon a person without his
consent and without regard to any act  of his  own."  This  is  distinguished 
from  a  recusable  obligation  which, according to Bouvier, arises from a
voluntary act by which one  incurs  the obligation  imposed  by the operation
of law.  The voluntary use of private credit is the condition precedent which
imposes the irrecusable  obligation to  file a tax return.  If private credit
is not used or rejected, then the operation of law which imposes the
irrecusable obligation lies dormant  and cannot apply.

          In 'Brushaber v. Union Pacific RR Co.'  240  U.S.  1  (1916)  the
Supreme  Court  affirmed  that  the  federal  income tax is in the class of
indirect taxes, which include duties and excises.  The personal income  tax
arises  from a duty -- i.e., charge or fee -- which is voluntarily incurred and
subject to the rule of uniformity.  A charge is a duty  or  obligation, binding
upon him who enters into it, which may be removed or taken away by a discharge
(performance):  'Bouvier', p. 459.  Our federal personal income tax  is  not 
really  a  tax in the ordinary sense of the word but rather a burden or
obligation which the taxpayer voluntarily assumes, and the burden of  the  tax 
falls  upon those who voluntarily use private credit.  Simply stated the tax
imposed is a charge or fee upon the use  of  private  credit where  the amount
of private credit used measures the pecuniary obligation. The personal income
tax provision of the Internal Revenue Code  is  private law  rather  than 
public  law.  "A private law is one which is confined to particular
individuals, associations, or corporations":  50 AmJur 12, p.28. In  the
instant case the revenue code pertains to taxpayers.  A private law can be
enforced by a court of competent jurisdiction when statutes for  its
enforcement  are  enacted:   20  AmJur  33,  pgs.  58, 59.  The distinction
between public  and  private  acts  is  not  always  sharply  defined  when
published statutes are printed in their final form:  Case v. Kelly 133 U.S. 21
(1890).  Statutes creating corporations are private acts:  20 AmJur  35, p. 
60.   In  this  connection,  the  Federal  Reserve  Act is private law. Federal
Reserve banks derive their existence and corporate power  from  the Federal
Reserve Act:  Armano v. Federal Reserve Bank 468 F.Supp 674 (1979). A private
act may be published as a public law when the general  public  is afforded  the
opportunity of participating in the operation of the private law.  The Internal
Revenue Code is an example of private law which does not exclude  the 
voluntary  participation  of  the  general  public.   Had the Internal Revenue
Code been written as  substantive  public  law,  the  code would  be repugnant
to the Constitution, since no one could be compelled to file a return and
thereby become a  witness  against  himself.   Under  the fifty  titles  listed
on  the  preface page of the United States Code, the Internal Revenue Code (26
USC) is listed as  having  not  been  enacted  as substantive public law,
conceding that the Internal Revenue Code is private law.  Bouvier declares that
private law "relates to private  matters  which do  not  concern  the  public
at large." It is the voluntary use of private credit which imposes  upon  the 
user  the  quasi  contractual  or  implied obligation  to  make  a  return  of
income.  In 'Pollock v. Farmer's Loan & Trust Co.' 158 U.S. 601 (1895) the
Supreme Court had  declared  the  income tax  of  1894 to be repugnant to the
Constitution, holding that taxation of rents, wages and salaries  must  conform
to  the  rule  of  apportionment. However,  when  this  decision  was 
rendered, there was no privately owned central bank issuing private credit and
currency but rather public money in the  form  of legal tender notes and coins
of the United States circulated. Public  money  is  the  lawful  money  of  the
United  States  which   the Constitution  authorizes  Congress  to  issue,
conferring a property right, whereas the private credit issued by the Fed is
neither money nor property, permitting the user an equitable interest but
denying allodial title.

          Today, we have  two  competing  monetary  systems.   The  Federal
Reserve  System  with its private credit and currency, and the public money
system consisting of legal tender United States notes and coins.  One could use
the public money system, paying all bills with coins and United States notes
(if the notes can be obtained), or  one  could  voluntarily  use  the private 
credit system and thereby incur the obligation to make a return of income. 
Under 26 USC 7609 the IRS has carte blanche  authority  to  summon and
investigate bank records for the purpose of determining tax liabilities or
discovering unknown taxpayers:  'United States v.  Berg'  636  F.2d  203
(1980).   If  an investigation of bank records discloses an excess of $1000 in
deposits in a single year, the  IRS  may  accept  this  as  prima  facie
evidence  that  the  account  holder uses private credit and is therefore a
person obligated to make a return  of  income.   Anyone  who  uses  private
credit -- e.g., bank accounts, credit cards, mortgages, etc. -- voluntarily
plugs himself into the system and obligates himself to file.  A taxpayer is
allowed  to  claim  a $1000 personal deduction when filing his return.  The
average taxpayer in the course of  a  year  uses  United  States  coins  in
vending machines, parking meters, small change, etc., and this public money
must be deducted when computing the charge for using private credit.

          On June 5, 1933, the day of infamy  arrived.   Congress  on  that
date  enacted  House  Joint  Resolution 192, which provided that the people
convert or turn in their gold coins in exchange for Federal Reserve  notes.
Through  the operation of law, H.J.R. 192 took us off the gold standard and
placed us on the dollar standard where the dollar could be  manipulated  by
private  interests  for their self-serving benefit.  By this single act the
people and their wealth were delivered to the bankers.  When  gold  coinage was
thus  pulled  out  of  circulation, large denomination Federal Reserve notes
were issued to fill the void.  As  a  consequence  the  public  money supply 
in  circulation  was greatly diminished, and the debt-laden private credit of
the Fed gained supremacy.  This action made  private  individuals who  had 
been  previously  exempt from federal income taxes now liable for them, since
the general public began consuming and using large  amounts  of private 
credit.   Notice all the case law prior to 1933 which affirms that income is  a
profit  or  gain  which  arises  from  a  government  granted privilege.  
After  1933,  however,  the  case  law  no longer emphatically declares that
income is exclusively corporate profit or that it arises from a privilege.  So,
what changed? Two years after H.J.R. 192, Congress passed the Social Security
Act, which the Supreme Court  upheld  as  a  valid  act imposing  a  valid
income tax:  'Charles C. Steward Mach. Co. v, Davis' 301 U.S. 548 (1937).

          It is no accident that the United States is without a dollar unit
coin.   In  recent  years  the  Eisenhower  dollar coin received widespread
acceptance, but the Treasury minted them in limited number which encouraged
hoarding.  This same fate befell the Kennedy half dollars, which circulated as
silver sandwiched clads between 1965-1969 and  were  hoarded  for  their
intrinsic  value and not spent.  Next came the Susan B.  Anthony dollar, an
awkward coin which was instantly rejected as planned.  The  remaining  unit is 
the  privately  issued  Federal Reserve note unit dollar with no viable
competitors.   Back  in  1935  the  Fed  had  persuaded  the  Treasury   to
discontinue  minting  silver dollars because the public preferred them over
dollar  bills.   That  the  public  money  system   has   become   awkward,
discouraging its use, is no accident.  It was planned that way.

          A major purpose behind the 16th Amendment was  to  give  Congress
authority  to enforce private law collections of revenue.  Congress had the
plenary power to collect  income  taxes  arising  from  government  granted
privileges  long  before the 16th Amendment was ratified, and the amendment was
unnecessary, except  to  give  Congress  the  added  power  to  enforce
collections under private law:  i.e., income from whatever source.  So, the Fed
got its amendment and its private income tax, which is a banker's dream but  a 
nightmare for everyone else.  Through the combined operation of the Fed and H.
J.R. 192, the United States pays exorbitant interest whenever  it uses  its 
own  money deposited with the Fed, and the people pay outrageous income taxes
for the privilege of living and working in their own  country, robbed  of 
their  wealth and separated from their rights, laboring under a tax system
written by a cabal of loan shark bankers and rubber stamped by a spineless
Congress.

          Congress has the power to abolish the Federal Reserve System  and
thus destroy the private credit system.  However, the people have it within
their power to strip the Fed of its powers, rescind private credit and  get the
bankers to pay off the National Debt should Congress fail to act.  The key to
all this is 12 USC 411, which declares that  Federal  Reserve  notes shall  be 
redeemed  in  lawful  money at any Federal Reserve bank.  Lawful money is
defined as all the coins, notes, bills, bonds  and  securities  of the  United 
States:   'Julliard  v.  Greenman'  110  U.S. 421, 448 (1884); whereas public
money is the lawful money declared by Congress  as  a  legal tender  for  debts
(31 USC 5103); 524 F.2d 629 (1974).  anyone can present Federal Reserve notes
to any Federal Reserve bank and demand redemption  in public  money  --  i.e., 
legal  tender  United  States notes and coins.  A Federal Reserve note is a
fixed  obligation  or  evidence  of  indebtedness which  pledges  redemption
(12 USC 411) in public money to the note holder. The Fed maintains a ready
supply of United States notes in  hundred  dollar denominations  for redemption
purposes should it be required, and coins are available to satisfy claims  for 
smaller  amounts.   However,  should  the general  public decide to redeem
large amounts of private credit for public money, a financial melt-down within 
the  Fed  would  quickly  occur.   The process  works  like  this.   Suppose 
$1000  in  Federal Reserve notes are presented for redemption in public money. 
To raise $1000 in  public  money the  Fed  must  surrender  U.S.  Bonds  in 
that  amount to the Treasury in exchange for the public money demanded
(assuming that the Fed had no public money  on  hand).  In so doing $1000 of
the National Debt would be paid off by the Fed and thus cancelled.  Can you
imagine the result if large amounts of Federal Reserve notes were redeemed on a
regular, ongoing basis? Private credit would be withdrawn from circulation and
replaced with public  money, and with each turning of the screw the Fed would
be obliged to pay off more of the National Debt.  Should the Fed refuse to
redeem its notes in  public money,  then  the  fiction  that  private  credit
is used voluntarily would become unsustainable.  If the use of  private  credit
becomes  compulsory, then  the  obligation  to make a return of income is
voided.  If the Fed is under no obligation to redeem its notes, then no one has
an  obligation  to make  a return of income.  It is that simple! Federal
Reserve notes are not money and cannot be tendered when money is demanded:  105
So.  305  (1925). Moreover,  the  Ninth  Circuit  rejected  the  argument  that
a $50 Federal Reserve note be redeemed in gold or silver coin after  specie 
coinage  had been  rescinded  but upheld the right of the note holder to redeem
his note in current public money (31 USC 392; rev., 5103):  524 F.2d 629
(1974);  12 USC 411.

          It would be advantageous to close out all bank accounts,  acquire a
home safe, settle all debts in cash with public money and use U.S. postal money
orders for remittances.  Whenever a check is received, present it  to the  bank
of issue and demand cash in public money.  This will place banks in a
vulnerable position, forcing them to draw off their  assets.   Through their 
insatiable  greed,  bankers  have  over extended, making banks quite illiquid. 
Should  the  people  suddenly  demand  public  money  for  their deposits  and 
for  checks  received,  many  banks  will  collapse  and  be foreclosed by
those demanding public money.  Banks by their very nature are citadels of usury
and sin, and the most patriotic service one could perform is to obligate
bankers to redeem private credit.  When  the  first  Federal Reserve note is
presented to the Fed for redemption, the process of ousting the private credit
system will commence and will not end until the Fed  and the  banking system
nurtured by it collapse.  Coins comprise less than five percent of the
currency, and current law limits the amount of United States notes  in 
circulation  to  $300 million (31 USC 5115).  The private credit system is
exceedingly over extended compared  with  the  supply  of  public money,  and 
a  small  minority  working in concert can easily collapse the private credit
system and oust the Fed by demanding redemption  of  private credit.   If  the 
Fed  disappeared  tomorrow,  income  taxes  on wages and salaries would vanish
with it.  Moreover, the  States  are  precluded  from taxing  United  States 
notes:  4 Wheat. 316.  According to Bouvier, public money is the money which
Congress can tax for public purposes  mandated  by the  Constitution.   Private
credit  when  collected  in  revenue can fund programs and be spent for
purposes not cognizable by the Constitution.   We have in effect two competing
governments:  the United States Government and the Federal Government.  The
first is the government of the people, whereas the  Federal  Government  is
founded upon private law and funded by private credit.  What we really have is
private government.  Federal  agencies  and activities  funded  by  the 
private credit system include Social Security, bail out loans to bankers via
the IMF, bail out loans to Chrysler, loans to students,  FDIC,  FBI, supporting
the U.N., foreign aid, funding undeclared wars, etc., all of which would be
unsustainable if funded by  taxes  raised pursuant  to  the  Constitution.  The
personal income tax is not a true tax but rather an obligation or burden  which
is  voluntarily  assumed,  since revenue  is  raised  through  voluntary 
contributions and can be spent for purposes unknown to the Constitution. 
Notice how the IRS declares  in  its publications  that everyone is expected to
contribute his fair share.  True taxes must be spent for public purposes which
the Constitution  recognizes. Taxation  for  the  purpose  of giving or loaning
money to private business enterprises and individuals is illegal:  15 AmRep 39;
Cooley, 'Prin. Const. Law',  ch.  IV.   Revenue  derived  from the federal
income tax goes into a private slush fund raised from voluntary contributions,
and Congress is not restricted  by  the  Constitution  when spending or
disbursing the proceeds from this private fund.  It is incorrect to say that
the  personal  federal income  tax  is  unconstitutional,  since  the  tax code
is private law and resides outside the  Constitution.   The  Internal  Revenue 
Code  is  non-constitutional  because  it  enforces  an  obligation  which is
voluntarily incurred through an act of the individual who binds himself. 
Fighting  the Internal  Revenue Code on constitutional grounds is wasted
energy.  The way to bring it all down is to  attack  the  Federal  Reserve 
System  and  its banking  cohorts  by  demanding  that  private  credit  be 
redeemed, or by convincing Congress to abolish the Fed.  Never forget that 
private  credit is funding the destruction of our country.

[Reprinted from `Freedom League', Sept/Oct 1984]









Tue, 22 Jun 1993 18:00
Brian F. Redman: Rep. Gonzalez Rips Federal Reserve



Gonzalez Rips Fed Megabanks for Usury
=====================================

by Marcia Merry
[Excerpts]

Washington, June 14 (EIRNS) -- Representative Henry Gonzalez (D -
Texas), 77, chairman of the House of Representatives Committee on
Banking, Finance and Urban Affairs, let fly last week against the
Federal Reserve, derivatives speculation, and usury by megabanks.

Representative Gonzalez's speech [delivered on late-night cable
television] was a call to arms for citizens and their elected
officials to intervene before it's too late [to avert disaster].

Gonzalez slammed the Federal Reserve for being a private monopoly
outside the constitutional control of the federal government, and
for being guilty of usury. He called the Fed and privileged banks
"malefactors of wealth," and explained that he had asked for
special orders to speak, because of the "general negligence or
lack of information disseminated to our American citizens with
respect to the banks' and financial institutions' activities in
our country."

In his June 10 speech, Gonzalez observed, "Part of [the problem]
is that, particularly among our largest banks, they are not in
the banking business any longer, really. They are in the
speculative or, what I would say, in the gambling business."
Gonzalez remarked that he "would have more confidence in Las
Vegas professionals than I would in these [banks]."

On June 8, Gonzalez had described the flood of drug money being
laundered by the banks, and the lawless activities of the Federal
Reserve -- and also those of the CIA, in particular in cases such
as that of BCCI Bank.

Gonzalez stressed how the U.S. taxpayer subsidizes the megabanks.
He explained, "... The Federal Reserve Board lends the bank, or 
the banks can borrow money, at 3%. Maybe now and then even under 
3%. With that, they buy U.S. government-guaranteed securities 
which pay at this point not less than 7% and on average more than 
that."
 
"Now that is a subsidy by the taxpayer. They do not want to call 
it that. But how are the people going to know unless those of us 
who happen to be in the position to know and evaluate, report?"
 
Gonzalez did report: "During 1992, the dollar value of loans held 
by U.S. banks fell by $27 billion... while their holdings of 
government securities soared."
 
Gonzalez defined derivatives as "a fancy name for a... contract 
in which two parties agree that they will bet on the future value 
of some market activity -- futures -- all the way from some 
commodity, to such things as the currency futures, which are 
volatile." He dramatized how highly speculative the 
electronically conducted trading is, saying, "Even as I am 
speaking, you will have a trillion or more of these speculative 
clicks chasing from London to New York to Frankfurt to Paris to
Tokyo."

"Is there money out there in these international markets for the
procurement of goods, for firing the engines of manufacturing and
production? No. It is paper chasing paper."

Gonzalez reported that "the holdings of our principal banks in
these derivatives rose from $2.3 trillion in 1986 to $8.3
trillion in 1989, and $15.3 trillion in 1991."

He listed the estimated derivatives trading volume, compared to
asset value, of the top seven U.S. banks: Citicorp, Chemical
Banking Corp., Chase Manhattan, Bankers Trust, First Chicago,
Continental Banking, and Bank of America. He blasted their off-
balance-sheet speculative activity, and the way the Federal
Deposit Insurance Corp. has covered it up.

Gonzalez did not propose new solutions to the crisis he
described; he has already introduced a bill to audit and regulate
the Federal Reserve. He warned, "All history shows that no
society has been able to endure usury."

-----------------------------------------------------------------

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-----------------------------------------------------------------




                    OWNERSHIP  OF  FEDERAL  RESERVE
 
 
=============================================================================
Chart 1
=======
** Federal Reserve Directors: A Study of Corporate and Banking Influence **
- - Published 1976
============================================================================
Chart 1 reveals the linear connection between the Rothschilds and the Bank
of England, and the London banking houses which ultimately control the
Federal Reserve Banks through their stockholdings of bank stock and their
subsidiary firms in New York. The two principal Rothschild representatives
in New York, J. P. Morgan Co., and Kuhn,Loeb & Co. were the firms which
set up the Jekyll Island Conference at which the Federal Reserve Act was
drafted, who directed the subsequent successful campaign to have the plan
enacted into law by Congress, and who purchased the controlling amounts
of stock in the Federal Reserve Bank of New York in 1914. These firms
had their principal officers appointed to the Federal Reserve Board of
Governors and the Federal Advisory Council in 1914. In 1914 a few
families (blood or business related) owning controlling stock in existing
banks (such as in New York City) caused those banks to purchase controlling
shares in the Federal Reserve regional banks. Examination of the charts
and text in the House Banking Committee Staff Report of August, 1976
and the current stockholders list of the 12 regional Federal Reserve
Banks show this same family control.
============================================================================
 
                                N.M. Rothschild , London - Bank of England
                                 ______________________________________
                                |                                     |
                                |                           J. Henry Schroder
                                |                             Banking | Corp.
                                |                                     |
                          Brown, Shipley - Morgan Grenfell - Lazard - |
                           & Company        & Company       Brothers  |
                                |               |              |      |
            --------------------|        -------|              |      |
            |                   |        |      |              |      |
 Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---|
 & Son      |  Harriman       Norman     |    Paris          Bros     |
            |                   |        /      |            N.Y.     |
            |                   |       |       |              |      |
            |            Governor, Bank | J.P. Morgan Co -- Lazard ---|
            |            of England    /  N.Y. Morgan       Freres    |
            |            1924-1938    /   Guaranty Co.      Paris     |
            |                        /    Morgan Stanley Co.  |      /
            |                       /           |              \Schroder Bank
            |                      /            |              Hamburg/Berlin
            |                     /      Drexel & Company         /
            |                    /       Philadelphia            /
            |                   /                               /
            |                  /                           Lord Airlie
            |                 /                               /
            |                /     M. M. Warburg       Chmn J. Henry Schroder
            |                |      Hamburg ---------  marr. Virginia F. Ryan
            |                |         |               grand-daughter of Otto
            |                |         |                Kahn of Kuhn Loeb Co.
            |                |         |
            |                |         |
Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y.
            |                |     --------------------------
            |                |       |                      |
            |                |       |                      |
Lehman Brothers - Mont. Alabama   Solomon Loeb           Abraham Kuhn
            |                |     __|______________________|_________
Lehman-Stern, New Orleans   Jacob Schiff/Theresa Loeb  Nina Loeb/Paul Warburg
- -------------------------    |       |                      |
             |               | Mortimer Schiff        James Paul Warburg
_____________|_______________/       |
|            |          |   |        |
Mayer Lehman |     Emmanuel Lehman    \
|            |          |              \
Herbert Lehman     Irving Lehman        \
|            |          |                \
Arthur Lehman \    Phillip Lehman     John Schiff/Edith Brevoort Baker
              /         |             Present Chairman Lehman Bros
             /  Robert Owen Lehman    Kuhn Loeb - Granddaughter of
            /           |             George F. Baker
           |           /               |
           |          /                |
           |         /           Lehman Bros Kuhn Loeb (1980)
           |        /                  |
           |       /             Thomas Fortune Ryan
           |      |                    |
           |      |                    |
      Federal Reserve Bank Of New York |
           ||||||||                    |
  ______National City Bank N. Y.       |
  |        |                           |
  |   National Bank of Commerce N.Y ---|
  |        |                            \
  |   Hanover National Bank N.Y.         \
  |        |                              \
  |   Chase National Bank N.Y.             \
  |                                        |
  |                                        |
Shareholders - National City Bank - N.Y.   |
- -----------------------------------------  |
  |                                        /
James Stillman                            /
Elsie m. William Rockefeller             /
Isabel m.  Percy Rockefeller            /
William Rockefeller          Shareholders - National Bank of Commerce N. Y.
J. P. Morgan                 -----------------------------------------------
M.T. Pyne                    Equitable Life - J.P. Morgan
Percy Pyne                   Mutual Life - J.P. Morgan
J.W. Sterling                H.P. Davison - J. P. Morgan
NY Trust/NY Edison           Mary W. Harriman
Shearman & Sterling          A.D. Jiullard - North British Merc. Insurance
|                            Jacob Schiff
|                            Thomas F. Ryan
|                            Paul Warburg
|                            Levi P. Morton - Guaranty Trust - J. P. Morgan
|
|
Shareholders - First National Bank of N.Y.
- -------------------------------------------
J.P. Morgan
George F. Baker
George F. Baker Jr.
Edith Brevoort Baker
US Congress - 1946-64
|
|
|
|
|
Shareholders - Hanover National Bank N.Y.
- ------------------------------------------
James Stillman
William Rockefeller
|
|
|
|
|
Shareholders - Chase National Bank N.Y.
- ---------------------------------------
George F. Baker
 
============================================================================
Chart 2
=======
** Federal Reserve Directors: A Study of Corporate and Banking Influence **
- - Published 1983
============================================================================
The J. Henry Schroder Banking Company chart encompasses the entire history
of the twentieth century, embracing as it does the program (Belgium Relief
Commission) which provisioned Germany from 1915-1918 and dissuaded Germany
from seeking peace in 1916; financing Hitler in 1933 so as to make a Second
World War possible; backing the Presidential campaign of Herbert Hoover ;
and even at the present time, having two of its major executives of its
subsidiary firm, Bechtel Corporation serving as Secretary of Defense and
Secretary of State in the Reagan Administration.
 
The head of the Bank of England since 1973, Sir Gordon Richardson, Governor
of the Bank of England (controlled by the House of Rothschild) was chairman
of J. Henry Schroder Wagg and Company of London from 1963-72, and director
of J. Henry Schroder,New York and Schroder Banking Corporation,New York,as
well as Lloyd's Bank of London, and Rolls Royce. He maintains a residence
on Sutton Place in New York City, and as head of "The London Connection,"
can be said to be the single most influential banker in the world.
============================================================================
 
                               J. Henry Schroder
                               -----------------
                                      |
                                      |
                                      |
                          Baron Rudolph Von Schroder
                           Hamburg - 1858 - 1934
                                      |
                                      |
                                      |
                            Baron Bruno Von Schroder
                            Hamburg - 1867 - 1940
 F. C. Tiarks                         |
 1874-1952                            |
     |                                |
 marr. Emma Franziska                 |
 (Hamburg)                    Helmut B. Schroder
 J. Henry Schroder 1902               |
 Dir. Bank of England                 |
 Dir. Anglo-Iranian                   |
 Oil Company         J. Henry Schroder Banking Company N.Y.
                                      |
                                      |
                       J. Henry Schroder Trust Company N.Y.
                                      |
                                      |
                                      |
                   ___________________|____________________
                  |                                        |
            Allen Dulles                              John Foster Dulles
          Sullivan & Cromwell                        Sullivan & Cromwell
          Director - CIA                             U. S. Secretary of State
                                                     Rockefeller Foundation
 Prentiss Gray
 ------------
Belgian Relief Comm.                     Lord Airlie
Chief Marine Transportation              -----------
US Food Administration WW I          Chairman; Virgina Fortune
Manati Sugar Co. American &          Ryan daughter of Otto Kahn
British Continental Corp.            of Kuhn,Loeb Co.
       |                                    |
       |                                    |
 M. E. Rionda                               |
 ------------                               |
Pres. Cuba Cane Sugar Co.                   |
Manati Sugar Co. many other                 |
sugar companies.                     _______|
       |                            |
       |                            |
 G. A. Zabriskie                    |
 ---------------                    |                Emile Francoui
Chmn U.S. Sugar Equalization        |                --------------
Board 1917-18; Pres Empire          |            Belgian Relief Comm. Kai
Biscuit Co., Columbia Baking        |            Ping Coal Mines, Tientsin
Co. , Southern Baking Co.           |            Railroad,Congo Copper, La
                                    |            Banque Nationale de Belgique
             Suite 2000 42 Broadway | N. Y                      |
          __________________________|___________________________|
         |                          |                           |
         |                          |                           |
    Edgar Richard            Julius H. Barnes             Herbert Hoover
    -------------            ----------------             --------------
Belgium Relief Comm         Belgium Relief Comm       Chmn Belgium Relief Com
Amer Relief Comm            Pres Grain Corp.           U.S. Food Admin
U.S. Food Admin             U.S. Food Admin           Sec of Commerce 1924-28
1918-24, Hazeltine Corp.    1917-18, C.B Pitney       Kaiping Coal Mines
   |                        Bowes Corp, Manati        Congo Copper, President
   |                        Sugar Corp.                  U.S. 1928-32
   |
   |
   |
John Lowery Simpson
- -------------------
Sacramento,Calif Belgium Relief                       |
Comm. U. S. Food Administration             Baron Kurt Von Schroder
Prentiss Gray Co. J. Henry Schroder         -----------------------
Trust, Schroder-Rockefeller, Chmn         Schroder Banking Corp. J.H. Stein
Fin Comm, Bechtel International           Bankhaus (Hitler's personal bank
Co. Bechtel Co. (Casper Weinberger        account) served on board of all
Sec of Defense, George P. Schultz         German subsidiaries of ITT . Bank
Sec of State (Reagan Admin).              for International Settlements,
            |                             SS Senior Group Leader,Himmler's
            |                             Circle of Friends (Nazi Fund),
            |                             Deutsche Reichsbank,president
            |
            |
Schroder-Rockefeller & Co. , N.Y.
- ---------------------------------
Avery Rockefeller, J. Henry Schroder
Banking Corp., Bechtel Co., Bechtel
International Co. , Canadian Bechtel
Company.          |
                  |
                  |
                  |
         Gordon Richardson
         -----------------
Governor, Bank of England
1973-PRESENT C.B. of J. Henry Schroder N.Y.
Schroder Banking Co., New York, Lloyds Bank
Rolls Royce
 
============================================================================
Chart 3
=======
** Federal Reserve Directors: A Study of Corporate and Banking Influence **
- - Published 1976
============================================================================
The David Rockefeller chart shows the link between the Federal Reserve
Bank of New York,Standard Oil of Indiana,General Motors and Allied
Chemical Corportion (Eugene Meyer family) and Equitable Life (J. P. Morgan).
===========================================================================
 
DAVID ROCKEFELLER
- ----------------------------
Chairman of the Board
Chase Manhattan Corp
      |
      |
______|_______________________
Chase Manhattan Corp.        |
Officer & Director Interlocks|---------------------
------|-----------------------                    |
      |                                           |
Private Investment Co. for America       Allied Chemicals Corp.
      |                                           |
Firestone Tire & Rubber Company          General Motors
      |                                           |
Orion Multinational Services Ltd.        Rockefeller Family & Associates
      |                                           |
ASARCO. Inc                              Chrysler Corp.
      |                                           |
Southern Peru Copper Corp.               Intl' Basic Economy Corp.
      |                                           |
Industrial Minerva Mexico S.A.           R.H. Macy & Co.
      |                                           |
Continental Corp.                        Selected Risk Investments S.A.
      |                                           |
Honeywell Inc.                           Omega Fund, Inc.
      |                                           |
Northwest Airlines, Inc.                 Squibb Corporation
      |                                           |
Northwestern Bell Telephone Co.          Olin Foundation
      |                                           |
Minnesota Mining & Mfg Co (3M)           Mutual Benefit Life Ins. Co. of NJ
      |                                           |
American Express Co.                            AT & T
      |                                           |
Hewlett Packard                          Pacific Northwestern Bell Co.
      |                                           |
FMC Corporation                          BeachviLime Ltd.
      |                                           |
Utah Intl' Inc.                          Eveleth Expansion Company
      |                                           |
Exxon Corporation                        Fidelity Union Bancorporation
      |                                           |
International Nickel/Canada              Cypress Woods Corporation
      |                                           |
Federated Capital Corporation            Intl' Minerals & Chemical Corp.
      |                                           |
Equitable Life Assurance Soc U.S.        Burlington Industries
      |                                           |
Federated Dept Stores                    Wachovia Corporation
      |                                           |
General Electric                         Jefferson Pilot Corporation
      |                                           |
Scott Paper Co.                          R. J. Reynolds Industries Inc.
      |                                           |
American Petroleum Institute             United States Steel Corp.
      |                                           |
Richardson Merril Inc.                   Metropolitan Life Insurance Co.
      |                                           |
May Department Stores Co.                Norton-Simon Inc.
      |                                           |
Sperry Rand Corporation                  Stone-Webster Inc.
      |                                           |
San Salvador Development Company         Standard Oil of Indiana
 
============================================================================
Chart 4
=======
** Federal Reserve Directors: A Study of Corporate and Banking Influence **
- - Published 1976
============================================================================
This chart shows the interlocks between the Federal Reserve Bank of New York
J. Henry Schroder Banking Corp., J. Henry Schroder Trust Co., Rockefeller
Center, Inc., Equitable Life Assurance Society ( J.P. Morgan), and the
Federal Reserve Bank of Boston.
============================================================================
 
 Alan Pifer, President
 Carnegie Corporation
 of New York
- ----------------------
         |
         |
- ----------------------
 Carnegie Corporation
 Trustee Interlocks      --------------------------
----------------------                            |
         |                                        |
Rockefeller Center, Inc                 J. Henry Schroder Trust Company
         |                                        |
The Cabot Corporation                   Paul Revere Investors, Inc.
         |                                        |
Federal Reserve Bank of Boston          Qualpeco, Inc.
         |
Owens Corning Fiberglas
         |
New England Telephone Co.
         |
Fisher Scientific Company
         |
Mellon National Corporation
         |
Equitable Life Assurance Society
         |
Twentieth Century Fox Corporation
         |
J. Henry Schroder Banking Corporation
 
============================================================================
Chart 5
=======
** Federal Reserve Directors: A Study of Corporate and Banking Influence **
- - Published 1976
============================================================================
This chart shows the link between the Federal Reserve Bank of New York,
Brown Brothers Harriman,Sun Life Assurance Co. (N.M. Rothschild and Sons),
and the Rockefeller Foundation.
 
===========================================================================
 
Maurice F. Granville
Chairman of The Board
Texaco Incorporated
- ----------------------
        |
        |
Texaco Officer & Director Interlocks  ---------- Liggett & Myers, Inc.
- ------------------------------------         |
        |                                      |
        |                                      |
 L  Arabian American Oil Company            St John d'el Ray Mining Co. Ltd.
 O      |                                      |
 N  Brown Brothers Harriman & Co.           National Steel Corporation
 D      |                                      |
 O  Brown Harriman & Intl' Banks Ltd.       Massey-Ferguson Ltd.
 N      |                                      |
    American Express                        Mutual Life Insurance Co.
        |                                      |
 N. American Express Intl' Banking Corp.    Mass Mutual Income Investors Inc.
 M.     |                                      |
    Anaconda                                United Services Life Ins. Co.
 R      |                                      |
 O  Rockefeller Foundation                  Fairchild Industries
 T      |                                      |
 H  Owens-Corning Fiberglas                 Blount, Inc.
 S      |                                      |
 C  National City Bank (Cleveland)          William Wrigley Jr. Co
 H      |                                      |
 I  Sun Life Assurance Co.                  National Blvd. Bank of Chicago
 L      |                                      |
 D  General Reinsurance                     Lykes Youngstown Corporation
        |                                      |
    General Electric (NBC)                  Inmount Corporation
 
**
Source: Federal Reserve Directors: A Study of Corporate and Banking
Influence. Staff Report,Committee on Banking,Currency and Housing,
House of Representatives, 94th Congress, 2nd Session, August 1976.
 
============================================================================
- -* Don Allen *-               // Only   | Tavistock + Esalen = "New Age"
Internet: dona@bilver.uucp  \X/ Amiga   | Rothschild + Rockefeller = FED
UUCP: .uunet!peora!bilver!vicstoy!dona  | UN + Maitreya = "Twilight Zone"
"A democracy cannot be both ignorant and free"  - Thomas Jefferson
 
.............................................................................
End: "Who owns the Federal Reserve?"
 
-------------------------------End FED_OWN.TXT
 ------------------------------------------------
(This file was found elsewhere on the Internet and uploaded to the
Patriot FTP site by S.P.I.R.A.L., the Society for the Protection of
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