As of 11:05 Tuesday, July 26, 1983, the list of member banks
holding Federal Reserve Bank of New York stock includes twenty-seven
New York City banks. Listed below are the number of shares held
by ten of these banks, amounting to 66% of the total outstanding
number of shares, namely 7,005,700:
Bankers Trust Company 438,831 ( 6%)
Bank of New York 141,482 ( 2%)
Chase Manhattan Bank 1,011,862 (14%)
Chemical Bank 544,962 ( 8%)
Citibank 1,090,813 (15%)
European American Bank & Trust 127,800 ( 2%)
J. Henry Schroder Bank & Trust 37,493 ( .5%)
Manufacturers Hanover 509,852 ( 7%)
Morgan Guaranty Trust 655,443 ( 9%)
National Bank of North America 105,600 ( 2%)
The tremendous number of shares held today as against the original
purchases in 1914 is brought about by Section 5 of the original
Federal Reserve Act which called for a member bank to buy and
hold stock in the district Federal Reserve Bank equal to 6% of
its capital and surplus.
Currently, shares held by five of the above named banks comprise
53% of the total Federal Reserve Bank of New York stock. An examination
of the major stockholders of the New York City banks shows clearly
that a few families, related by blood marriage, or business interests,
still control the New York City banks which, in turn, hold the
controlling stock of the Federal Reserve Bank of New York.
It is notable that three of the banks holding Federal Reserve
Bank of New York stock, in the amount of 270,893 shares, are
subsidiaries of foreign banks. J. Henry Schroder Bank and Trust
is listed by Standard and Poors as a subsidiary of Schroders
Ltd. of London. The National Bank of North America is a subsidiary
of the National Westminster Bank, one of London's "Big Five".
European American Bank is a subsidiary of the European American
Bank, Bahamas, LTD. It is interesting to note that the directors
of the European American Bank & Trust include Milton F. Rosenthal,
president and Chief Operating Officer of the international gold
Engelhard Minerals and Chemical; Hamilton F. Potter, a partner
in Sullivan and Cromwell (J. Henry Schroder Bank & Trust
attorneys); Edward H. Tuck, partner of Shearman and Sterling
(Citibank's attorneys); F.H. Ulrich and Hans Liebkutsch, managing
directors of the giant Midland Bank of London, one of the "Big
Five"; and Roger Alloo, Paul-Emmanuel Janssen, and Maurice
Laure of the Societe Generale de Banque (Brussels, Belgium).
[See Chart III]
This information, derived from the latest issue of the tabulation
available from the Board of Governors, Federal Reserve System,
is cited as current evidence which indicates that the controlling
stock in the Federal Reserve Bank of New York, which sets the
rate and scale of operations for the entire Federal Reserve System
is heavily influenced by banks directly controlled by "The
London Connection", that is, the Rothschild-controlled Bank
of England. [See Chart I]
E.C. Knuth, in The Empire of the City, priv. printed, 1946, p.
27, refers to "the Bank of England, the full partner of
the American Administration in the conduct of the financial affairs
of all the world" and cites the Encyclopaedia Americana,
Barron cites Lord Swaythling, (April 8, 1923), "Lord Swaythling
said, 'Exchange can only be run from London. This is the center
in Exchange.'" (They Told Barron, by Clarence W. Barron,
founder of Baron's Weekly, Harpers, New York, 1930, p. 27.)
Exchange, in the international financial world, means the transactions
in money or securities, or simply, the "exchange" of
the values of these securities. It is necessary that this "exchange"
take place where the values can be established, and this place
is the "City" in London.
London was established as the primary center of exchange because
of the "Consols" of the Bank of England, bonds which
could never be redeemed, but which paid a stable rate of return.
Henry Clews writes, in The Wall Street View, Silver Burdett Co.
1900, p. 255, "The Consolidated Act of 1757 consolidated
the debts of the nation of England at 3%, which were kept in
an account at the Bank of England and is the great bulwark of
its deposits." By ostentatiously "dumping" "Consols"
on the London Exchange after the Battle of Waterloo, in a pretended
panic, Nathan Meyer Rothschild then secretly bought up the Consols
sold in the panic by other holders at a low rate, and became
the largest holder of Consols, and thus won control of the Bank
of England in 1815.
Although a Labor government nationalized the Bank of England
in 1946, The Great Soviet Encyclopaedia points out (vol. I, p.
490c) that the Bank of England continues to pay 12% dividends
per annum, just as it had done prior to the nationalization.
The "Governor" is appointed by the government, in a
situation similar to that in the United States, where the Governors
of the Federal Reserve System are appointed by the President.
However, as is pointed out in the Encyclopaedia Americana v.
13, p. 272, "In practice, the governors of the Bank of England
have not hesitated to criticize and bring pressure on the government
The interest rate set by the Bank of England is known as "the
Bank rate", and it is a controlling factor in interest rates
throughout the world,
although rates in other countries may be higher or lower than
this "Bank rate". The Bank of England manages the government
debt, and is called upon to arbitrate in political affairs. It
served as the intermediary with the Iran revolutionaries in negotiating
for the return of the American hostages--a recent example.
We should not be surprised that the present Governor of the Bank
of England, Sir Gordon Richardson is a prominent international
financial figure, who appears elsewhere in these pages because
of his connection with the J. Henry Schroder @Wagg in London
from 1962 to 1972, when he became Governor of the Bank of England.
He was also director of J. Henry Schroder Co., New York, and
Schroder Banking Corp., New York. He also serves as director
of Rolls Royce and Lloyd's Bank. Although he resides in London,
he maintains a home in New York, and is listed in the current
Manhattan directory simply as "G. Richardson, 45 Sutton
Place S.", although a prior listing showed him at 4 Sutton
Place. Sutton Place was developed as a fashionable address for
the international set by Bessie Marbury, whom we earlier cited
for her connection with the Morgan family and the Roosevelts.
The present directors of the Bank of England (1982) include Leopold
de Rothschild of N.M. Rothschild & Sons, Sir Robert Clark,
chairman of Hill Samuel Bank, the most influential bank after
Rothschilds, John Clay, of Hambros Bank, and David Scholey, of
Warburg Bank, and joint chairman of S.C. Warburg Co.
Anthony Sampson writes, in "The Changing Anatomy of Britain",
Random House, New York, 1982, p. 279, "The more cosmopolitan
banks with foreign experts and directors, such as Warburgs, Montagus,
Rothschilds and Kleinworts, had also discovered a huge new source
of profits in the market for Eurodollars which began in the late
fifties and multiplied through the 60s . . . British bankers
themselves controlled relatively small funds, but they knew how
to make money out of other people's money."
The Eurodollar market, a new development in "created money"
is monopolized by the above firms.
"Today, together with allies on the island of Manhattan
(Britain's most important piece of real estate), the British
Empire controls the entire $1.5 trillion Eurodollar financial
market, another $300-$500 billion in the Cayman Islands, Bahamas,
and $50-$100 billion in the Hong-Kong Singapore "Asia-dollar
market". . . . Consider the $1.5 trillion Eurodollar market
an "outlaw" market in the U.S. dollars over which this
nation has no control. Here control and profits are overwhelmingly
in the hands of London banks, who set the terms of lending and
the interest rate on this mass of American dollars in relation
to the London Interbank Borrowing
Rate (LIBOR) . . . U.S. banks like Citibank (New York City),
on whose board of directors sits the powerful British financier,
Lord Aldington, collaborate openly in this market. At the same
time, British banks including the known central bank for the
world's drug trade, the Hongkong and Shanghai Bank, pour into
America to devour U.S. banks. In 1978 the Hongshang (Ed.--Hongkong
and Shanghai Bank) took over New York's Marine Midland Bank,
the state's 11th largest commercial bank. . . The British also
control the creation of American dollars. While Federal Reserve
Board Chairman Paul Volcker tightens credit against the domestic
economy, British-controlled banks in the Cayman Islands (such
as the European American Bank--Ed.) a British possession 200
miles off Florida, and in the Bermudas and a dozen other "free
banking" computer terminals create hundreds of billions
of American dollars. How is this done? There are no reserve ratios
or other restrictions on the creation of dollar-denominated credits
in the Empire's "free enterprise" banking. A $1 million
bona fide credit coming from the United States can be turned
into $20 to $100 million in dollar-denominated credits as it
passes through the British system without reserve ratios."*
Not only the financial power, but also the legal power, has remained
seated in Britain. The Washington Post commented on June 18,
1983 that after the American Revolution, all the old laws remained
in effect in the new United States: Some of these laws of "English
common law" dated back to 1278, long before America was
This enormous financial power of "the City" is revealed
in many areas. Dean Acheson states, in "Present at the Creation",
1969, W.W. Norton, New York, p. 779, "We stayed at the embassy
residence, the old J.P. Morgan mansion, 14 Prince's Gate, facing
Hyde Park." How many Americans are aware that the U.S. Embassy
residence in London is the J.P. Morgan home, or that Dean Acheson,
a former Morgan employee, described himself as Secretary of State
on p. 505, "My own attitude had long been, and was known
to have been, pro-British." No one commented on an American
Secretary of State's open bias in favor of England.
The Federal Reserve "created" money is not used only
for financial matters; this money is also used to maintain the
bankers' control of every aspect of political, economic and social
life. It is used to bankroll the enormous expenditures of political
candidates, the swollen budgets of universities, the huge outlays
required to start newspapers or magazines, and a vast array of
foundations, "think-tanks" and other instruments of
Few Americans know that almost every development in psychology
in the United States in the past sixty-five years has been directed
by the Bureau of Psychological Warfare of the British Army. A
short time ago,
* Harpers Magazine, Feb. 1980
the present writer learned a new name, The Tavistock Institute
of London, also known as the Tavistock Institute of Human Relations.
"Human relations" covers every aspect of human behavior,
and it is the modest goal of the Tavistock Institute to obtain
and exercise control over every aspect of human behavior of American
Because of the intensive artillery barrages of World War I, many
soldiers were permanently impaired by shell shock. In 1921, the
Marquees of Tavistock, 11th Duke of Bedford, gave a building
to a group which planned to conduct rehabilitation programs for
shell shocked British soldiers. The group took the name of "Tavistock
Institute" after its benefactor. The General Staff of the
British Army decided it was crucial that they determine the breaking
point of the soldier under combat conditions. The Tavistock Institute
was taken over by Sir John Rawlings Reese, head of the British
Army Psychological Warfare Bureau. A cadre of highly trained
specialists in psychological warfare was built up in total secrecy.
In fifty years, the name "Tavistock Institute' appears only
twice in the Index of the New York Times, yet this group, according
to LaRouche and other authorities, organized and trained the
entire staffs of the Office of Strategic Services (OSS), the
Strategic Bombing Survey, Supreme Headquarters of the Allied
Expeditionary Forces, and other key American military groups
during World War II. During World War II, the Tavistock Institute
combined with the medical sciences division of the Rockefeller
Foundation for esoteric experiments with mind-altering drugs.
The present drug culture of the United States is traced in its
entirety to this Institute, which supervised the Central Intelligence
Agency's training programs. The "LSD counter culture"
originated when Sandoz A.G., a Swiss pharmaceutical house owned
by S.G. Warburg & Co., developed a new drug from lysergic
acid, called LSD. James Paul Warburg (son of Paul Warburg who
had written the Federal Reserve Act in 1910), financed a subsidiary
of the Tavistock Institute in the United States called the Institute
for Policy Studies, whose director, Marcus Raskin, was appointed
to the National Security Council. James Paul Warburg set up a
CIA program to experiment with LSD on CIA agents, some of whom
later committed suicide. This program, MK-Ultra, supervised by
Dr. Gottlieb, resulted in huge lawsuits against the United States
Government by the families of the victims.
The Institute for Policy Studies set up a campus subsidiary,
Students for Democratic Society (SDS), devoted to drugs and revolution.
Rather than finance SDS himself, Warburg used CIA funds, some
twenty million dollars, to promote the campus riots of the 1960s.
The English Tavistock Institute has not restricted its activities
to left-wing groups, but has also directed the programs of such
supposedly "conservative" American think tanks as the
Herbert Hoover Institute at Stanford University, Heritage Foundation,
Wharton, Hudson, Massachusetts Institute of Technology, and Rand.
The "sensitivity train-
ing" and "sexual encounter" programs of the most
radical California groups such as Esalen Institute and its many
imitators were all developed and implemented by Tavistock Institute
One of the rare items concerning the Tavistock Institute appears
in Business Week, Oct. 26, 1963, with a photograph of its building
in the most expensive medical offices area of London. The story
mentions "the Freudian bias" of the Institute, and
comments that it is amply financed by British blue-chip corporations,
including Unilever, British Petroleum, and Baldwin Steel. According
to Business Week, the psychological testing programs and group
relations training programs of the Institute were implemented
in the United States by the University of Michigan and the University
of California, which are hotbeds of radicalism and the drug network.
It was the Marquees of Tavistock, 12th Duke of Bedford, whom
Rudolf Hess flew to England to contact about ending World War
II. Tavistock was said to be worth $40 million in 1942. In 1945,
his wife committed suicide by taking an overdose of pills.