Secrets of the Federal Reserve
The history, organization and controlling
interests behind the Federal Reserve
by Eustace Mullins, 1985
Table of Contents
MHP Editors Preface
About this book
Acknowledgements and author profile
Ezra Pound as the inspiration for this research
Introduction by Ezra Pound.
Opinion from Thomas Jefferson about the central bank.
- Jekyll Island
Paul Warburg and the Jekyll Island conference of 1910
- The Aldrich Plan
The bankers lobby for the Aldrich bill to establish a new central bank
- The Federal Reserve Act
Wilson is elected President and the Federal Reserve Act is passed (1912-14)
- The Federal Advisory Council
The bankers control the membership of the regional oversight board
- The House of Rothschild
The Rothschild family dominates the banking of London and Europe
- The London Connection
The banks that own the Fed are controlled from London
- The Hitler Connection
J.H. Schroder Bank and the financing of Adolf Hitler
- World War One
Kuhn, Loeb Company and the management of the Great War
- The Agricultural Depression
Looting of the rural banks and the independent farmers (1920-21)
- The Money Creators
Control of the money supply, trade credit, and interest rates
- Lord Montagu Norman
The Bank of England, gold transfers, and the Roaring 20s
- The Great Depression
The Fed pops the speculative bubble and the insiders profit
- The 1930s
The Fed during the Hoover and Roosevelt administrations
- Congressional Expose
Charting the banking and business connections of the Fed directors
and more background information from another source:
Questions and Answers
Ezra Pound as the inspiration for this research
In 1949, while I was visiting Ezra Pound who was a political prisoner at St. Elizabeth's Hospital, Washington, D.C. (a
Federal institution for the insane), Dr. Pound asked me if I had ever heard of the Federal Reserve System. I replied that
I had not, as of the age of 25. He then showed me a ten dollar bill marked "Federal Reserve Note" and asked me if I would
do some research at the Library of Congress on the Federal Reserve System which had issued this bill. Pound was unable to
go to the Library himself, as he was being held without trial as a political prisoner by the United States government. After
he was denied broadcasting time in the U.S., Dr. Pound broadcast from Italy in an effort to persuade people of the United
States not to enter World War II. Franklin D. Roosevelt had personally ordered Pound's indictment, spurred by the demands
of his three personal assistants, Harry Dexter White, Lauchlin Currie, and Alger Hiss, all of whom were subsequently identified
as being connected with Communist espionage.
I had no interest in money or banking as a subject, because I was working on a novel. Pound offered to supplement my income
by ten dollars a week for a few weeks. My initial research revealed evidence of an international banking group which had secretly
planned the writing of the Federal Reserve Act and Congress' enactment of the plan into law. These findings confirmed what
Pound had long suspected. He said, "You must work on it as a detective story." I was fortunate in having my research at the
Library of Congress directed by a prominent scholar, George Stimpson, founder of the National Press Club, who was described
by The New York Times of September 28, 1952: "Beloved by Washington newspapermen as ‘our walking Library of Congress',
Mr. Stimpson was a highly regarded reference source in the Capitol. Government officials, Congressmen and reporters went to
him for information on any subject."
I did research four hours each day at the Library of Congress, and went to St. Elizabeth's Hospital in the afternoon. Pound
and I went over the previous day's notes. I then had dinner with George Stimpson at Scholl's Cafeteria while he went over
my material, and I then went back to my room to type up the corrected notes. Both Stimpson and Pound made many suggestions
in guiding me in a field in which I had no previous experience. When Pound's resources ran low, I applied to the Guggenheim
Foundation, Huntington Hartford Foundation, and other foundations to complete my research on the Federal Reserve. Even though
my foundation applications were sponsored by the three leading poets of America, Ezra Pound, E.E. Cummings, and Elizabeth
Bishop, all of the foundations refused to sponsor this research. I then wrote up my findings to date, and in 1950 began efforts
to market this manuscript in New York. Eighteen publishers turned it down without comment, but the nineteenth, Devin Garrity,
president of Devin Adair Publishing Company, gave me some friendly advice in his office. "I like your book, but we can't print
it," he told me. "Neither can anybody else in New York. Why don't you bring in a prospectus for your novel, and I think we
can give you an advance. You may as well forget about getting the Federal Reserve book published. I doubt if it could ever
This was devastating news, coming after two years of intensive work. I reported back to Pound, and we tried to find a publisher
in other parts of the country. After two years of fruitless submissions, the book was published in a small edition in 1952
by two of Pound's disciples, John Kasper and David Horton, using their private funds, under the title Mullins on the Federal
Reserve. In 1954, a second edition, with unauthorized alterations, was published in New Jersey, as The Federal Reserve Conspiracy.
In 1955, Guido Roeder brought out a German edition in Oberammergau, Germany. The book was seized and the entire edition of
10,000 copies burned by government agents led by Dr. Otto John.
The burning of the book was upheld April 21, 1961 by judge Israel Katz of the Bavarian Supreme Court. The U.S. Government
refused to intervene, because U.S. High Commissioner to Germany, James B. Conant (president of Harvard University 1933 to
1953), had approved the initial book burning order. This is the only book which has been burned in Germany since World War
II. In 1968 a pirated edition of this book appeared in California. Both the FBI and the U.S. Postal inspectors refused to
act, despite numerous complaints from me during the next decade. In 1980 a new German edition appeared. Because the U.S. Government
apparently no longer dictated the internal affairs of Germany, the identical book which had been burned in 1955 now circulates
in Germany without interference.
I had collaborated on several books with Mr. H.L. Hunt and he suggested that I should continue my long-delayed research
on the Federal Reserve and bring out a more definitive version of this book. I had just signed a contract to write the authorized
biography of Ezra Pound, and the Federal Reserve book had to be postponed. Mr. Hunt passed away before I could get back to
my research, and once again I faced the problem of financing research for the book.
My original book had traced and named the shadowy figures in the United States who planned the Federal Reserve Act. I now
discovered that the men whom I exposed in 1952 as the shadowy figures behind the operation of the Federal Reserve System were
themselves shadows, the American fronts for the unknown figures who became known as the "London Connection." I found that
notwithstanding our successes in the Wars of Independence of 1812 against England, we remained an economic and financial colony
of Great Britain. For the first time, we located the original stockholders of the Federal Reserve Banks and traced their parent
companies to the London Connection.
This research is substantiated by citations and documentation from hundreds of newspapers, periodicals and books and charts
showing blood, marriage, and business relationships. More than a thousand issues of The New York Times on microfilm have been
checked not only for original information, but verification of statements from other sources.
It is a truism of the writing profession that a writer has only one book within him. This seems applicable in my case,
because I am now in the fifth decade of continuous writing on a single subject, the inside story of the Federal Reserve System.
This book was from its inception commissioned and guided by Ezra Pound. Four of his protégés have previously been awarded
the Nobel Prize for Literature, William Butler Yeats for his later poetry, James Joyce for "Ulysses", Ernest Hemingway for
"The Sun Also Rises", and T.S. Elliot for "The Waste Land". Pound played a major role in the inspiration and in the editing
of these works--which leads us to believe that this present work, also inspired by Pound, represents an ongoing literary tradition.
Although this book in its inception was expected to be a tortuous work on economic and monetary techniques, it soon developed
into a story of such universal and dramatic appeal that from the outset, Ezra Pound urged me to write it as a detective story,
a genre which was invented by my fellow Virginian, Edgar Allan Poe. I believe that the continuous circulation of this book
during the past forty years has not only exonerated Ezra Pound for his much condemned political and monetary statements, but
also that it has been, and will continue to be, the ultimate weapon against the powerful conspirators who compelled him to
serve thirteen and a half years without trial, as a political prisoner held in an insane asylum a la KGB. His earliest vindication
came when the government agents who represented the conspirators refused to allow him to testify in his own defense; the second
vindication came in 1958 when these same agents dropped all charges against him, and he walked out of St. Elizabeth's Hospital,
a free man once more. His third and final vindication is this work, which documents every aspect of his exposure of the ruthless
international financiers to whom Ezra Pound became but one more victim, doomed to serve years as the Man in the Iron Mask,
because he had dared to alert his fellow-Americans to their furtive acts of treason against all people of the United States.
In my lectures throughout this nation, and in my appearances on many radio and television programs, I have sounded the
toxin that the Federal Reserve System is not Federal; it has no reserves; and it is not a system at all, but rather, a criminal
syndicate. From November, 1910, when the conspirators met on Jekyll Island, Georgia, to the present time, the machinations
of the Federal Reserve bankers have been shrouded in secrecy. Today, that secrecy has cost the American people a three trillion
dollar debt, with annual interest payments to these bankers amounting to some three hundred billion dollars per year, sums
which stagger the imagination, and which in themselves are ultimately unpayable. Officials of the Federal Reserve System routinely
issue remonstrances to the public, much as the Hindu fakir pipes an insistent tune to the dazed cobra which sways its head
before him, not to resolve the situation, but to prevent it from striking him. Such was the soothing letter written by Donald
J. Winn, Assistant to the Board of Governors in response to an inquiry by a Congressman, the Honorable Norman D. Shumway,
on March 10, 1983. Mr. Winn states that "The Federal Reserve System was established by an act of Congress in 1913 and is not
a ‘private corporation'." On the next page, Mr. Winn continues, "The stock of the Federal Reserve Banks is held entirely
by commercial banks that are members of the Federal Reserve System." He offers no explanation as to why the government has
never owned a single share of stock in any Federal Reserve Bank, or why the Federal Reserve System is not a "private corporation"
when all of its stock is owned by "private corporations".
American history in the twentieth century has recorded the amazing achievements of the Federal Reserve bankers. First,
the outbreak of World War I, which was made possible by the funds available from the new central bank of the United States.
Second, the Agricultural Depression of 1920. Third, the Black Friday Crash on Wall Street of October, 1929 and the ensuing
Great Depression. Fourth, World War II. Fifth, the conversion of the assets of the United States and its citizens from real
property to paper assets from 1945 to the present, transforming a victorious America and foremost world power in 1945 to the
world's largest debtor nation in 1990. Today, this nation lies in economic ruins, devastated and destitute, in much the same
dire straits in which Germany and Japan found themselves in 1945. Will Americans act to rebuild our nation, as Germany and
Japan have done when they faced the identical conditions which we now face--or will we continue to be enslaved by the Babylonian
debt money system which was set up by the Federal Reserve Act in 1913 to complete our total destruction? This is the only
question which we have to answer, and we do not have much time left to answer it.
Because of the depth and the importance of the information which I had developed at the Library of Congress under the tutelage
of Ezra Pound, this work became the happy hunting ground for many other would-be historians, who were unable to research this
material for themselves. Over the past four decades, I have become accustomed to seeing this material appear in many other
books, invariably attributed to other writers, with my name never mentioned. To add insult to injury, not only my material,
but even my title has been appropriated, in a massive, if obtuse, work called "Secrets of the Temple--the Federal Reserve".
This heavily advertised book received reviews ranging from incredulous to hilarious. Forbes Magazine advised its readers to
read their review and save their money, pointing out that "a reader will discover no secrets" and that "This is one of those
books whose fanfares far exceed their merit." This was not accidental, as this overblown whitewash of the Federal Reserve
bankers was published by the most famous nonbook publisher in the world.
After my initial shock at discovering that the most influential literary personality of the twentieth century, Ezra Pound,
was imprisoned in "the Hellhole" in Washington, I immediately wrote for assistance to a Wall Street financier at whose estate
I had frequently been a guest. I reminded him that as a patron of the arts, he could not afford to allow Pound to remain in
such inhuman captivity. His reply shocked me even more. He wrote back that "your friend can well stay where he is." It was
some years before I was able to understand that, for this investment banker and his colleagues, Ezra Pound would always be
Jackson Hole, Wyoming, 1991
Introduction by Ezra Pound.
Opinion from Thomas
Jefferson about the central bank.
"Here are the simple facts of the great betrayal. Wilson and House knew that they were doing something momentous. One cannot
fathom men's motives and this pair probably believed in what they were up to. What they did not believe in was representative
government. They believed in government by an uncontrolled oligarchy whose acts would only become apparent after an interval
so long that the electorate would be forever incapable of doing anything efficient to remedy depredations."
(St. Elizabeth's Hospital, Washington, D.C. 1950)
Author's Note: Dr. Pound wrote this introduction for the earliest version of this book, published by Kasper
and Horton, New York, 1952. Because he was being held as a political prisoner without trial by the Federal Government, he
could not afford to allow his name to appear on the book because of additional reprisals against him. Neither could he allow
the book to be dedicated to him, although he had commissioned its writing. The author is gratified to be able to remedy these
necessary omissions, thirty-three years after the events.
Jefferson's Opinion on the Constitutionality of the Bank
(From: "The Writings of Thomas Jefferson", ed. by H. E. Bergh, Vol. III, p. 145 ff.)
February 15, 1791
The bill for establishing a national bank, in 1791, undertakes, among other things,--
- To form the subscribers into a corporation.
- To enable them, in their corporate capacities, to receive grants of lands; and, so far, is against the laws of mortmain.
- To make alien subscribers capable of holding lands; and so far is against the laws of alienage.
- To transmit these lands, on the death of a proprietor, to a certain line of successors; and so far, changes the course
- To put the lands out of the reach of forfeiture, or escheat; and so far, is against the laws of forfeiture and escheat.
- To transmit personal chattels to successors, in a certain line; and so far, is against the laws of distribution.
- To give them the sole and exclusive right of banking, under the national authority; and, so far, is against the laws of
- To communicate to them a power to make laws, paramount to the laws of the states; for so they must be construed, to protect
the institution from the control of the state legislatures; and so probably they will be construed.
I consider the foundation of the Constitution as laid on this ground--that all powers not delegated to the United States,
by the Constitution, nor prohibited by it to the states, are reserved to the states, or to the people (12th amend.). To take
a single step beyond the boundaries thus specially drawn around the powers of Congress, is to take possession of a boundless
field of power, no longer susceptible of any definition.
The incorporation of a bank, and the powers assumed by this bill, have not, in my opinion, been delegated to the United
States by the Constitution.
Read the complete book online by using the links in the table of content.