Ordo Ab Chao: Jekyll Island Club

It was Walter Lippmann who recommended Allen Dulles—a former lawyer for Sullivan & Cromwell, and future head of the CIA—as a top recruit for Col. House’s plan to use the United States relief program in Europe after the war as cover for intelligence activities. Allen and his brother John Foster were in the employ of the prestigious New York law firm Sullivan and Cromwell, which represented the Kuhn Loeb Company. Sullivan and Cromwell was founded in 1879 by William Nelson Cromwell, the head of Grand Prior of the SOSJ in America.

Col. House did not hold office but was an “executive agent,” and President Woodrow Wilson’s chief advisor on European politics and diplomacy at the Paris Peace Conference. In 1911, prior to Wilson’s taking office as President, House completed a book called Philip Dru, Administrator. Though written as a novel, it was actually a detailed plan for the future government of the United States, “which would establish Socialism as dreamed by Karl Marx,” according to House. It was published anonymously and widely circulated among government officials, who were left in no doubt as to its authorship. The novel predicted the enactment of the graduated income tax, excess profits tax, unemployment insurance, social security and a flexible currency system. In short, it was the blueprint which was later followed by the Woodrow Wilson and the New Deal of Franklin D. Roosevelt administrations.

One of the institutions outlined in Philip Dru was the Federal Reserve System. The Federal Reserve was created in 1913, founded on the desire for central control of the monetary system in order to alleviate financial crises. Early in 1907, New York Times Annual Financial Review published Paul Warburg’s first official reform plan, entitled “A Plan for a Modified Central Bank,” in which he outlined solutions he thought might avert panics. Early in 1907, Jacob Schiff, in a speech to the New York Chamber of Commerce, warned that “unless we have a central bank with adequate control of credit resources, this country is going to undergo the most severe and far reaching money panic in its history.” “The Panic of 1907” ensued in October.

George Sylvester Viereck, who knew Col. House for years, later wrote an account of Wilson’s relationship with House, The Strangest Friendship in History. According to Viereck, “The Schiffs, the Warburgs, the Kahns, the Rockefeller’s, the Morgans put their trust in House. When the Federal Reserve legislation at last assumed definite shape, House was the intermediary between the White House and the financiers.” What later became the basis of the Federal Reserve Act was crafted during a secret meeting on Jekyll Island in 1910. The conference attendees had obtained permission from J.P. Morgan to use the facilities of the Jekyll Island Club, a private club, whose members came from many of the world’s wealthiest families, most notably the Rockefellers, Morgans, Vanderbilts and others associated with the SOSJ. The “duck hunt” included Senator Nelson Aldrich, his personal secretary Arthur Shelton, former Harvard University professor of economics Dr. A. Piatt Andrew, J.P. Morgan & Co. partner Henry P. Davison, National City Bank president Frank A. Vanderlip and Paul Warburg. After the war, the Federal Reserve, led by Paul Warburg and New York Governor Bank President Benjamin Strong, convinced Congress to modify its powers, giving it the ability to both create money, as the 1913 Act intended, and destroy money, as a central bank could.

From the book, Ordo ab Chao, by David Livingstone.

Volume Three, League of Nations

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