The Federal Reserve is PRIVATELY OWNED
|Thomas D. Schauf|
|Learning Centre: Banking, Federal Reserve|
The Federal Reserve is
by Thomas D. Schauf
"There is a self-satisfied dogmatism with which mankind at each period of its history cherishes the delusion of the finality of existing modes of knowledge."
-Alfred North Whitehead
Pursuant to your request, I will attempt to clear up questions you have about the Federal Reserve Bank (FED). I spent
much time researching the FED and these are the shocking and revealing conclusions.
THE FEDERAL RESERVE BANK IS A PRIVATE COMPANY.
Article 1, Section 8 of the Constitution states that Congress shall have the power to coin (create) money and regulate the
value thereof. Today however, the FED, which is a privately owned company, controls and profits by printing money
through the Treasury, and regulating its value.
The FED began with approximately 300 people or banks that became owners (stockholders purchasing stock at $100 per
share - the stock is not publicly traded) in the Federal Reserve Banking System. They make up an international banking
cartel of wealth beyond comparison (Reference 1, 14). The FED banking system collects billions of dollars (Reference 8,
17) in interest annually and distributes the profits to its shareholders. The Congress illegally gave the FED the right to
print money (through the Treasury) at no interest to the FED. The FED creates money from nothing, and loans it back to
us through banks, and charges interest on our currency. The FED also buys Government debt with money printed on a
printing press and charges U.S. taxpayers interest. Many Congressmen and Presidents say this is fraud (Reference
Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks, a very well kept secret,
has been revealed:
Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Banks of Italy
Goldman, Sachs of New York
Warburg Bank of Amsterdam
Chase Manhattan Bank of New York
(Reference 14, P. 13, Reference 12, P. 152)
These bankers are connected to London Banking Houses which ultimately control the FED. When England lost the
Revolutionary War with America (our forefathers were fighting their own government), they planned to control us by
controlling our banking system, the printing of our money, and our debt (Reference 4, 22).
The individuals listed below owned banks which in turn owned shares in the FED. The banks listed below have
significant control over the New York FED District, which controls the other 11 FED Districts. These banks also are
partly foreign owned and control the New York FED District Bank. (Reference 22)
First National Bank of New York
James Stillman National City Bank, New York
Mary W. Harnman
National Bank of Commerce, New York
Hanover National Bank, New York
Chase National Bank, New York
Thomas F. Ryan
Levi P. Morton
George F. Baker
Mrs. G.F. St. George
Katherine St. George
J.P. Morgan (Equitable Life/Mutual Life)
Edith Brevour T. Baker
(Reference 4 for above, Reference 22 has details, P. 92, 93, 96, 179)
How did it happen? After previous attempts to push the Federal Reserve Act through Congress, a group of bankers
funded and staffed Woodrow Wilson's campaign for President. He had committed to sign this act. In 1913, a Senator,
Nelson Aldrich, maternal grandfather to the Rockefellers, pushed the Federal Reserve Act through Congress just before
Christmas when much of Congress was on vacation (Reference 3, 4, 5). When elected, Wilson passed the FED. Later,
Wilson remorsefully replied (referring to the FED), "I have unwittingly ruined my country" (Reference 17, P. 31).
Now the banks financially back sympathetic candidates. Not surprisingly, most of these candidates are elected (Reference
1, P. 208-210, Reference 12, P. 235, Reference 14, P. 36). The bankers employ members of the Congress on weekends
(nickname T&T club -out Thursday...-in Tuesday) with lucrative salaries (Reference 1, P. 209). Additionally, the FED
started buying up the media in the 1930's and now owns or significantly influences most of it Reference 3, 10, 11, P.
Presidents Lincoln, Jackson, and Kennedy tried to stop this family of bankers by printing U.S. dollars without charging
the taxpayers interest (Reference 4). Today, if the government runs a deficit, the FED prints dollars through the U.S.
Treasury, buys the debt, and the dollars are circulated into the economy. In 1992, taxpayers paid the FED banking
system $286 billion in interest on debt the FED purchased by printing money virtually cost free (Reference 12, P. 265).
Forty percent of our personal federal income taxes goes to pay this interest. The FED's books are not open to the public.
Congress has yet to audit it.
Congressman Wright Patman was Chairman of the House of Representatives Committee on Banking and Currency for 40
years. For 20 of those years, he introduced legislation to repeal the Federal Reserve Banking Act of 1913.
Congressman Henry Gonzales, Chairman of a banking committee, introduces legislation to repeal the Federal Reserve
Banking Act of 1913 nearly every year. It's always defeated, the media remains silent, and the public never learns the
truth. The same bankers who own the FED control the media and give huge political contributions to sympathetic
members of Congress (Reference 12, P. 155-163, Reference 22, P. 158, 159, 166).
THE FED FEARS THE POPULATION WILL BECOME
AWARE OF THIS FRAUD AND DEMAND CHANGE
We, the People, are at fault for being passive and allowing this to continue.
Rep. Louis T. McFadden (R. Pa.) rose from office boy to become cashier and then President of the First National Bank in
Canton Ohio. For 12 years he served as Chairman of the Committee on Banking and Currency, making him one of the
foremost financial authorities in America. He fought continuously for fiscal integrity and a return to constitutional
government (Reference 1). The following are portions of Rep. McFadden's speech, quoted from the Congressional
Record, pages 12595-12603:
"THE FEDERAL RESERVE BOARD, A GOVERNMENT BOARD, HAS CHEATED THE GOVERNMENTOF
THE UNITED STATES AND THE PEOPLE OF THE UNITED STATES OUT OF ENOUGH MONEY TO PAY
THE NATIONAL DEBT.
The depredations and the iniquities of the Federal Reserve Board and the Federal Reserve banks acting together have cost
this country ENOUGH MONEY TO PAY THE NATIONAL DEBT SEVERAL TIMES OVER."
About the Federal Reserve banks, Rep. McFadden said, "They are private credit monopolies which prey upon the
people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators
and swindlers; the rich and predatory money lenders. This is an era of economic misery and for the reasons that caused
that misery, the Federal Reserve Board and the Federal Reserve banks are fully liable."
On the subject of media control he state, "Half a million dollars was spent on one part of the propaganda organized by
those same European bankers for the purpose of misleading public opinion in regard to it."
Rep. McFadden continued, "Every effort has been made by the Federal Reserve Board to conceal its power but the truth
is the Federal Reserve Board has USURPED THE GOVERNMENT OF THE UNITED STATES. IT CONTROLS
EVERYTHING HERE AND IT CONTROLS ALL OUR FOREIGN RELATIONS. IT MAKES AND BREAKS
GOVERNMENTS AT WILL.
No man and no body of men is more entrenched in power than the arrogant credit monopoly which operates the Federal
Reserve Board and the Federal Reserve banks. These evil-doers have robbed this country of more than enough money to
pay the national debt. What the Government has permitted the Federal Reserve Board to steal from the people should
now be restored to the people."
"Our people's money to the extent of $1,200,000,000 has within the last few months been shipped abroad to redeem
Federal Reserve Notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve
banks. The greater part of our monetary stock has been shipped to foreigners. Why should we promise to pay the debts
of foreigners to foreigners? Why should American Farmers and wage earners add millions of foreigners to the number of
their dependents? Why should the Federal Reserve Board and the Federal Reserve banks be permitted to finance our
competitors in all parts of the world?" Rep. McFadden asked.
"The Federal Reserve Act should be repealed and the Federal Reserve banks, having violated their charters, should be
FAITHLESS GOVERNMENT OFFICERS WHO HAVE VIOLATED THEIR OATHS SHOULD BE IMPEACHED
AND BROUGHT TO TRIAL", Rep. McFadden concluded (Reference 1, contains an entire chapter on Rep. McFadden's
If the media is unbiased, independent and completely thorough, why haven't they discussed the FED? Currently, half the
states have at least a grass roots movement in action to abolish the FED, but there's no press coverage. In July, 1968, the
House Banking Subcommittee reported that Rockefeller, through Chase Manhattan Bank, controlled 5.9% of the stock in
CBS. Furthermore, the bank had gained interlocking directorates with ABC.
In 1974, Congress issued a report stating that the Chase Manhattan Bank's stake in CBS rose to 14.1% and NBC to 4.5%
(through RCA, the parent company of NBC). The same report said that the Chase Manhattan Bank held stock in 28
broadcasting firms. After this report, the Chase Manhattan Bank obtained 6.7% of ABC, and today the percentage could
be much greater. It only requires 5% ownership to significantly influence the media (Reference 14, P. 56-57). This is only
one of 300 wealthy shareholders of the FED. It is believed other FED owners have similar holdings in the media. To
control the media, FED bankers call in their loans if the media disagrees with them (Reference 25, P. 134-137).
Rockefeller also controls the Council on Foreign Relations (CFR), the sole purpose of which is to aid in stimulating
greater interest in foreign affairs and in a one world government. Nearly every major newscaster belongs to the Council on
Foreign Relations. The Council on Foreign Relations controls many major newspapers and magazines. Additionally,
major corporations owned by FED shareholders are the source of huge advertising revenues which surely would influence
the media (Reference 14, P. 56-59). It can be no wonder why groups such as FED-UP(tm) receive minimal, if any, press
How do taxpayers stop financing those whose purpose it is to destroy us? First, expose their activity, then demand
Currently all we do is exchange FED money (interest attached) for real U.S. money (interest-free) dollar for dollar as
Kennedy tried to do. We should not be required to pay interest on our own currency. According to Benjamin Franklin,
this was one of the primary reasons we fought the Revolutionary War. Today we are still fighting the same family of
bankers (Reference 4, Reference 1, P. 211, 212).
The U.S. Government can buy back the FED at any time for $450 million (per Congressional record). The U.S. Treasury
could then collect all the profit on our money instead of the 300 original shareholders of the FED. The $4 trillion of U.S.
debt could be exchanged dollar for dollar with U.S. non- interest bearing currency when the debt becomes due. There
would be no inflation because there would be no additional currency in circulation. Personal income tax could be cut if we
bought back the FED and therefore, the economy would expand. According to the Constitution, Congress is to control
the creation of money, keeping the amount of inflation or deflation in check. If Congress isn't doing their job, they should
be voted out of office. Unfortunately, voters can't vote the FED or its Chairman out of office.
If the government has a deficit, we could handle it as Lincoln and Kennedy did. Print money and circulate it into the
economy, but this time interest-free. Today the FED, through foreign banks, owns much of our debt and therefore
controls us. The FED will cease to exist as taxpayers become informed and tell other taxpayers. The news media and
Congress will have no choice but to meet the demands of grass roots America. (Reference 1, P. 17, 22)
By law (check the Congressional record), we can buy back the FED for the original investment of the FED's 300
shareholders, which is $450 million (Reference 1, P. 227, Reference 17, P. 36). If each taxpayer paid $25, we could buy
back the FED and all the profit would flow into the U.S. Treasury. In other words, by Congress allowing the
constitutionally illegal FED to continue, much of your taxes go to the shareholders of the FED and their bankers. Note:
The people who enacted the FED started the IRS, within months of the FED's inception. The FED buys U.S. debt with
money they printed from nothing, then charges the U.S. taxpayers interest. The government had to create income tax to
pay the interest expense to the FED's shareholders, but the income tax was never legally passed (Reference 20 shows
details, state-by-state why it was not legally passed). The FED is illegal, per Article 1, Section 8 of the United States
Constitution. Not one state legally ratified the 16th Amendment making income tax legal.
Currently, fewer and fewer Americans are being convicted for refusal to pay income taxes. In IRS jury trials, the jury, by
law, must decide if the law is just. If taxpayers do not believe the law is just, the jury may declare the accused innocent.
Judges are legally bound to inform juries of their right to determine the fairness of a law. Judges often do not disclose this
information so they can control the court outcome. Luckily, more and more citizens are becoming informed. If one juror
feels the law is unfair, they can find the defendant innocent (Reference 19). In Utah, the IRS quit prosecuting taxpayers
because jurors verdict is not guilty. Please tell your friends and sit in the next jury.
If we eliminate the FED and uphold the Constitution, we could balance the budget and cut personal income tax to almost
nothing. In Congressional hearings on September 30, 1941, FED Chairman Eccles admitted that the FED creates new
money from thin air (printing press), and loans it back to us at interest (Reference 17, P. 93). On June 6, 1960, FED
President Mr. Allen admitted essentially the same thing (Reference 22, P. 164). If you or I did this we would go to jail.
It is time to abolish the FED! Tell your friends the truth and win America back. We don't even need to buy back the
FED. We only need to print money the way the Constitution requires, not the new proposed international money. We
want to keep our sovereignty and print real U.S. money.
Why has Congress allowed the FED to continue? If a Congressperson tries to abolish the FED, the banks fund the
Congressperson's opponent in the next election (Reference 17, P. 35). The new Congressperson will obviously support
the FED. When Congresspeople retire, political campaign funds are not taxed. Get elected and be a millionaire if you vote
right. By the way, the profit of the FED is not taxed either (Reference 1, 9). Once America understands, and takes action,
Congresspeople will then gladly abolish the FED. In 1992, Illinois Congressman Crane introduced a bill, co-sponsored by
40 other Congressman, to audit the FED. This is a step in the right direction.
America is a great nation. As "We the People" become informed, the media and Congress will be forced to buy back the
FED, balance the budget, significantly cut taxes, and stop allowing bribes to determine voting strategies. I have already
heard from politicians who claim they will change their platform to include abolishing the FED if enough people become
IT IS UP TO YOU TO INFORM THE PEOPLE.
The FED hopes you will be passive and not act on this information. We believe in grass roots America - we are waking
up America. Ultimately, the battle plan is to inform all Americans and demand change in the media and Congress. True
Americans should run for office and throw out the politicians who allow this fraud to continue. Congress may refuse to
deal with this issue. That's why each person needs to go to their local county/state government with the proper
paperwork and ask them to abolish the FED. With the proper documents, they are legally obligated to do it.
WE NEED LEADERS TO BEGIN THIS ACTION. WILL YOU HELP?
Consider this fact. Most of the given sources in this booklet show how the blood line of family bankers who own the
FED funded both sides of all major wars. They created fake colonial money to destroy the Americans during the
Revolutionary War and tried