Joined: 25 Jul 2005
Location: St. Pauls, Bristol, England
|Posted: Sat Oct 25, 2014 12:18 am Post subject: Montague Norman - Bank of England's pro-Nazi Governor
|TonyGosling wrote: |
Bank of England Nominees
This study was presented at the meeting of the Forum for Stable Currencies on October 5th, 2000 by Robert Owen, one of the Directors of SAFE, Struggle Against Financial Exploitation.
Robert Owen ~ THE BANK OF ENGLAND
[House of Lords 5th October 2000]
An interesting technique is revealed by the Charter of the Bank of England: it was slipped through as part of a tonnage bill, which was later to become a recognized parliamentary technique. The Charter provides that “rates and duties upon tonnage of ships are made security to such persons as shall voluntarily advance the sum of 1,500,000 pounds towards carrying on the war against France.”
Other European banks, such as the Banks of Genoa, Venice and Amsterdam, were primarily banks of deposit, but the Bank of England began the practice of coining its own credit into money, the beginning of the monetarist movement. The Bank of England soon created a “new class” of moneyed interests in the City, as opposed to the power of the old barons, whose fortunes derived from their landholdings. Of the five hundred original stockholders, four hundred and fifty lived in London. This was the dawn of the preeminence of the “City”, now the world’s leading financial center. For this reason, the Rothschilds identified their key American banks with the code word “City”.
Early descriptions of the shareholders of the Bank of England identify them as “a Society of about 1300 persons”. They included the King and Queen of England, who received shares to the value of 10,000 pounds each; Marlborough, who invested 10,000 pounds — he also invested large sums from his “commissions” in the East India Co. in 1697, and later became Governor of the Hudson Bay Company, which paid a 75% dividend; Lord Shrewsbury, who invested 10,000 pounds; Godolphin, who invested 7000 pounds — he predicted that the Bank of England would not only finance trade, but would carry the burden of her wars, which was proven true in the next three hundred years. Virginia Cowles writes, in “The Great Marlborough”: “England emerged from the war as the dominant force, because the Bank of England’s credit system enabled her to bear the burden of war without undue strain.”
Other charter subscribers were William Bentinck, later the first Earl of Portland, he had been a page in William of Orange’s household, accompanied William to England in 1670 on his initial visit, handled the delicate negotiations of his marriage with Mary in 1677, and prepared the details of William’s invasion of England. He was given the title of Earl of Portland, and became the most trusted agent of William’s foreign policy. (In 1984, we find the 9th Duke, Cavendish-Bentinck, is chairman of Bayers UK Ltd, and Nuclear Chemie Mittchorpe GMBH, Germany; he also had a distinguished career in foreign service, joining the Foreign Office in 1922; he represented England at the successive Paris, Hague and Locarno conferences, was chairman of joint Intelligence for the Chiefs of Staff 1939-45, and Ambassador to Poland during the critical years of 1945-47, when that country was turned over to the Soviet Union, with England’s surreptitious support.)
Other charter subscribers to the Bank of England were:
* the Duke of Devonshire (William Cavendish) who built Chatsworth; he also had signed the invitation to William to assume the throne of England; he was High Steward at Anne’s Coronation in 1702, and was said to lead a profligate private life — (the present duke sold seven drawings in July 1984 for $9.2 million [and] the 11th Duke married Deborah Freeman-Mitford daughter of Baron Redesdale; his present brother-in-law, Baron Redesdale, is vice president of Chase Manhattan Bank)
* the Duke of Leeds, Sir Thomas Osborne, who also signed the invitation to William — he was lord high treasurer and had arranged the marriage of Mary. He was later impeached for receiving a large bribe to procure the charter of the East India Co. in 1691; because of his favored position at court the proceedings were never concluded, and he left one of the largest fortunes in England
* the Earl of Pembroke, (Thomas Herbert), who became the first lord of the admiralty, and later lord privy seal
* the Earl of Carnarvon, who is also Earl of Powis and Earl of Bradford
* Lord Edward Russell, created Earl of Orford 1697; he had joined the service of William in 1683, was appointed treasurer of the Navy 1689, first lord of admiralty 1696-17, and lord justice 1697-1714 (Sir Robert Walpole, the famed British leader, was created Earl of Orford in the second creation)
* William Paterson, usually credited with being the founder of the bank of England — he was forced out within a year
* Sir Theodore Janssen, who invested 10,000 pounds
* Dr. Hugh Chamberlen
* John Asgill, an eccentric writer and pamphleteer
* Dr. Nicholas Barbon, son of Praisegod Barebones, who started the first insurance company in Great Britain
* John Holland, a reputed Englishman who also started the Bank of Scotland in 1695
* Michael Godfrey, who died at Namur, Belgium on his way to Antwerp to establish a branch of the Bank of England — he was the first deputy governor of the Bank of England, and nephew of Sir Edward Godfrey, who was murdered by Titus Oakes in 1678
* Sir John Houblon and twenty members of his family were also early stockholders; Sir John became lord of the admiralty, and Lord Mayor of London; his brother James was deputy governor of the Bank of England
* Salomon de Medina, later knighted by William III
* Sir William Scawen
* Sir Gilbert Heathcote, director of Bank of England 1699-1701, and from 1723-25; he was Sheriff and later Lord Mayor of London, founded the New East India Co. in 1693; his parsimony was ridiculed by Alexander Pope in his quatrains
* Sir Charles Montague, first Earl of Halifax, and Chancellor of the Exchequer — the present Earl is a director of Hambros Bank
* Marquess Normandy, John Sheffield, also held the title of Duke of Buckingham — he is buried in Westminster Abbey
* Thomas Howard, Earl of Arundel, comptroller of the royal household
* Charles Chaplin
* and the philosopher, John Locke.
In his “The Bank of England, A History”, Sir John Clapham notes that by 1721, a number of Spanish and Portuguese Jews had been buying stock in the Bank of England — Medina, two Da Costas, Fonseca, Henriquez, Mendez, Nunes, Roderiquez, Salvador Teixera de Mattes, Jacob and Theodore Jacobs, Moses and Jacob Abrabanel, Francis Pereira. Clapham notes that since 1751 there has been very little trading in Bank of England stock; it has been very closely held for more than two centuries.
The Bank of England has played a prominent role in American history — without it, the United States would not exist. The American colonists considered themselves loyal Englishmen to a man, but when they began to enjoy unequalled prosperity by printing and circulating their own Colonial scrip, the stockholders of the Bank of England went to George III and informed him that their monopoly of interest-bearing notes in the colonies was at stake. He banned the scrip, with the result that there was an immediate depression in the commercial life of the Americas. This was the cause of the Rebellion; as Benjamin Franklin pointed out, the little tax on tea, amounting to about a dollar a year per American family, could have been borne, but the colonists could not survive the banning of their own money.
The Bank of England and the Rothschilds continued to play a dominant role in the commercial life of the United States, causing panics and depressions for the Rothschilds whenever their officials were instructed to do so. When the Second Bank of the United States expired in 1836, and President Jackson refused to renew it, [thus] creating great prosperity in the United States when government funds were deposited in other banks, the Rothschilds punished the upstarts by causing the Panic of 1837. As Henry Clews writes in “Twenty-Eight Years on Wall Street”, p. 157: “The Panic of 1837 was aggravated by the Bank of England when it in one day threw out all the paper connected with the United States.”
By refusing to credit American notes and stocks, the Bank of England created financial panic among the holders of that paper. The panic enabled Rothschild’s agents, Peabody and Belmont, to reap a fortune in buying up depreciated stocks during the panic.
The Bank of England has played a prominent role in wars, revolutions, and espionage, as well as business panics. When Napoleon escaped from Elba in 1815, the London gold market jumped overnight from 4lb.6d to 5lb.7d. The leading buyer was Nathan Mayer Rothschild, who was under orders from the British Treasury to dispatch gold to the Duke of Wellington, grouping to stop Napoleon. After Waterloo, the price of gold dropped.
During the twentieth century, the most important name at the Bank of England was Lord Montagu Norman. His grandfather, George Warde Norman, had been governor of the Bank of England from 1821-1872, longer than any other man; his other grandfather, Lord Collet, was Governor of the Bank of England from 1887-89, and managing partner of Brown Shipley Co. in London for twenty-five years.
In 1894, Montague Norman was sent to New York to work in the offices of Brown Brothers; he was befriended by the W.A. Delano family, and lived with the Markoe family, partners of Brown Bros. In 1907, Norman was elected to the Court of the Bank of England. In 1912, he had a severe nervous breakdown, and was treated by [Carl] Jung in Switzerland. He became deputy governor of the Bank of England in 1916, and later served until 1944 as Governor. The Wall Street Journal wrote of him in 1927:
“Mr. M. Collet Norman, the Governor of the Bank of England, is now head and shoulders above all other British bankers. No other British banker has ever been as independent and supreme in the world of British finance as Mr. Norman is today. He has just been elected Governor for the eighth year in succession. Before the war, no Governor was allowed to hold office for more than two years; but Mr. Norman has broken all precedents. He runs his Bank and his Treasury as well. He appears to have no associations except his employees. He gives no interviews. He leaves the British financial world wholly in the thick as to his plans and ideas.”
The idea that one individual ran the Bank of England to suit himself, with no influences, is too ridiculous to be considered. What about the Rothschilds? What about the other shareholders? Carroll Quigley, in “Tragedy and Hope” notes that: “M. Norman said, ‘I hold the hegemony of the currency.’ — He is called the currency dictator of Europe.”
Lionel Fraser of J. Henry Schroder Wagg notes in his autobiography, “All to the Good”, that he was in charge of Lord Norman’s personal investments. He also notes of the firm of Helbert Wagg, former jewelers from Halberstadt and now a London banking house (later J. Henry Schroder Wagg), “The firm was official brokers on Stock Exchange to the great and all powerful House of Rothschild.” Both Wagg and Schroder had been in business in London for 159 years when they merged in 1960. Another writer notes that Lord Norman frequently consulted with J.P. Morgan before making his Bank of England decisions.
Gordon Richardson, chairman of J. Henry Schroder from 1962-72, then became Governor of the Bank of England from 1972-83, when he was succeeded by Robert Leigh-Pemberton, chairman of the National Westminister Bank, also director of Equitable — he married into the Cecil-Burghley family.
The present directors of the Bank of England are:
* G.W. McMahon, deputy governor since 1964, economic analyst Treasury 1953-57, adviser British Embassy Washington 1957-60
* Sir Adrian Cadbury, chairman Cadbury Schweppes, dir. IBM UK
* Leopold de Rothschild, N.M. Rothschild and Sons, etc.
* George V. Blunden, exec. dir. Bank of England since 1947, served with IMF 1955-58
* A.D. Lochnis, dir. J. Henry Schroder Wagg
* G.A. Drain, member Trilateral Commission, treasurer European Movement, Franco-British Council, British North American Committee, lawyer for many unions and health associations
* Sir Jasper Hollom, has been on the board since 1936
* D.G. Scholey, chairman S.G. Warburg Co., Orion Insurance, Union Discount of London, Mercury Securities, which now owns S.G. Warburg Co. Irwin Holdings
* J.M. Clay, dep. chairman Hambros Bank, chairman Johnson and Firth Brown Ltd
* Hambros Life Assurance
* Sir David Steel, chairman British Petroleum, dir. Kuwait Oil Co., The Wellcome Trust, trustee The Economist (whose chairman is Evelyn de Rothschild)
* Lord Nelson of Stafford, chairman GE Ltd. chairman Royal Worcester Co., Natl. Bank of Australasia, International Nickel, British Aircraft, English Electric, Marconi Ltd. chairman World Power Conference, Worshipful Co. of Goldsmiths, Middle Eastern Assn
* Lord Weir, chairman The Weir Group, chairman Great Northern Investment Trust
* E.A.J. George, exec. dir Bank of England, dir. Gilt-Edged Division Bank of England, IMF 1972-72, Bank for International Settlements 1966-69
* Sir Hector Laing, chairman United Biscuit, Allied Lyons, Royal Insurance
* Sir Alastair Pilkington, chairman Pilkington Bros. Glass, dir. British Petroleum, British Railways Board.
The Bank of England also dominates the Bank of Scotland, whose chairman is Robert Bruce, Lord Balfour; his title Balfour of Burleigh was created in 1607; he is manager of English Electric and Viking Oil; he married the daughter of magnate E.S. Manasseh. Directors of Bank of Scotland include Lord Clydesmuir, also dir. Barclays Bank, and Rt. Hon. Lord Polwarth, director of Halliburton, which interlocks with the Rothschild First City Bank of Houston and Citibank, Imperial Chemical Industries, Canadian Pacific, and Brown and Root Wimpey Highland Fabricators, which interlocks with George Wimpey PLC, largest construction firm in the British Empire, whose 44 companies have revenues of 1.2 billion pounds per year. Lord Polwarth’s daughter married Baron Moran, High Commissioner of Canada, who previously served as Ambassador to Hungary and to Chad; Baron Moran’s daughter married Baron Mountevans, manager of Consolidated Goldfields.
Directors of George Wimpey PLC included S.S. Jardine; Viscount Hood, who is chairman Petrofina UK, and director J. Henry Schroder Wagg, and Union Miniere; and Sir Joseph Latham, chairman Ariel International, director Deutsches Kreditbank.
Wimpey Co. interlocks with Schroder Ltd, parent of J. Henry Schroder Wagg. The Earl of Airlie (David Ogilvy) is chairman of Schroder; he married Virginia Ryan, grand-daughter of Otto Kahn and Thomas Fortune Ryan; The Earl is also director of Royal Bank of Scotland; directors of Schroder include Lord Franks, director of the Rockefeller Foundation, the Rhodes Trust, and Kennedy Center; he is a former Ambassador to the United States; G.W. Mallinkrodt; Sir E.G. Woodruffe of Unlever; and Daniel Janssen of the Bank of England.
The Merchants of Death and World War I
One of the great Rothschild hoaxes was the “disarmament movement” of the early 1930s. The idea was not to disarm, but to persuade the nations to junk what arms they had so they could later be sold new ones. “The merchants of death”, as they were popularly known in those days, were never more than errand boys for their true masters, “the bankers of death”, or, as they were also known, “the Brotherhood of Death”.
In 1897, Vickers, in which Rothschilds had the largest holding, bought Naval Construction and Armament Co., and Maxim Nordenfeldt Guns & Ammunition Co. The new Vickers-Maxim Co. was able to test its products in the Spanish-American War, which was set off by J. & W. Seligman Co. to obtain the white gold (sugar) of Cuba; the Boer War of 1899-1901, to seize the gold and diamond fields of the Witwatersrand, and the Russo-Japanese War of 1905, designed to weaken the Czar and make the Communist Revolution inevitable. These three wars provided the excuse for tooling up for the mass production of World Wars I & II. In 1897, an international power trust was formed, consisting of DuPont, Nobel, Koln, and Kottweiler, which divided the world into four distinct sales territories.
The chairman of Vickers, Sir Herbert Lawrence, was director of Sun Assurance Office Ltd; Sun Life Assurance, and chairman the London committee of the Ottoman Bank; directors included Sir Otto Niemeyer, director of the Bank of England, and the Anglo International Bank; S. Loewe, the German arms magnate, Loewe & Co.; Sir Vincent Caillard, President of the Ottoman Debt Council, financial expert on the Near East; and Sir Basil Zaharoff, the “mystery man of Europe”.
The highwater mark of “the merchants of death” hoax was reached in the Nye Committee Hearings of 1934, copies of which are invariably missing in government libraries. Alger Hiss was investigator and counsel for the Committee. Typical was Chairman Nye’s questioning of Mr. Carse of the Electric Boat Co. (a subsidiary of Vickers):
Chairman NYE: In 1917, Mr. Carse, you drafted a letter to help Zaharoff avoid paying income tax on your commissions to him of $766,852. There is Exhibit 24, a letter dated Sept. 21, 1917, addressed to Mr. H.C. Sheridan, Washington, D.C. Who is Mr. Sheridan, Mr. Carse ?
CARSE: He owns the Hotel Washington. At that time he was the agent of Vickers Ltd. in this country, and he was also a representative of Zaharoff. Mr Sheridan handled Mr. Zaharoff’s income tax with White and Case.
CHMN: Did you know that this was false, that this omission of a million dollars referred to was actually Sir Basil Zaharoff’s income ?
CARSE: No, I did not know anything about Zaharoff’s income.
CHMN: But you have told us that a letter by Zaharoff six weeks earlier that 82,000 francs he received was his own personal income.
CARSE: I do not know what Zaharoff did in his business. He did not tell me.
CHMN: Did Zaharoff succeed in escaping the payment of income tax to the United States ?
CARSE: I believe there was some settlement made. Sheridan handled it….. Zaharoff was never a stockholder insofar as I ever knew. The men who handle very large stock do not put the stock in their own names.
CHMN: Zaharoff wrote to you 19 May, 1925: ‘I desire no thanks for what I have done, because I am bound to attend to the interest of my firm of Vickers and the Electric Boat Co. in both of which I am a stockholder.’
CARSE: I know he told me that, but I was never able to trace anything.”
Sen. Clark then pursued questioning on how the armaments firms and oil companies promoted wars:
CLARK: So this whole occasion of arming Peru, and of the revolution in Bolivia on the basis of arming against Chile was based on erroneous rumor ?
MR. SPEZAR: That is my impression.
CLARK: You wanted to interest the large oil companies in financing an armament program for South America
CARSE: I was willing to present any proposition the government might approve with regard to any oil companies which might be interested.
The Nye Committee frequently came back to Zaharoff’s activities, referring to him as “a kind of superspy in high social and influential circles”. For many years he exercised great influence on Prime Minister Lloyd George of England. Zaharoff, who began his career as a brothel tout and underworld tough, arranged for Lloyd George to have an affair with Zaharoff’s wife.
Arthur Maundy Gregory, an associate of Lloyd George, was also a Zaharoff agent. Maundy Gregory for many years regularly peddled peerages in London clubs; knighthoods, not hereditary, were 10,000-12,000 lbs.; baronetcies went for as high as 40,000 lb., of which he paid Lloyd George a standard 5000 lb. each. Maundy Gregory was also closely associated with Sir Basil Thompson in British counter-espionage.
Zaharoff, who was born in 1851 in Constantinople, married one Emily Ann Burrows of Knightsbridge. Maundy Gregory then introduced Emily Ann to the [sexually] insatiable Lloyd George. From that time on, he was at Zaharoff’s mercy. Although Zaharoff was closely associated with Lloyd George throughout World War I until 1922, when their association effectively ended Lloyd George’s political career, the name Zaharoff appears nowhere in Lloyd George’s extensive Memoirs. Lloyd George’s political career came to an end after Zaharoff persuaded him to help the Greeks against Turkey in 1920, a disastrous adventure which brought about Lloyd George’s downfall from political power. George Donald McCormick, in “The Mask of Merlin”, the definitive work on Lloyd George, states:
“Zaharoff kept him (Lloyd George) closely informed on the Balkans. During the war, Zaharoff was sent on various secret missions by Lloyd George. The Big Three, Wilson, Lloyd George and Clemenceau, met in Zaharoff’s home in Paris. On one occasion, Zaharoff went to Germany (in 1917) on Lloyd George’s personal instructions, disguised in the uniform of a Bulgarian Army doctor. Clemenceau later said, ‘The information which Zaharoff secured in Germany for Lloyd George was the most important piece of intelligence of the whole war.’”
Zaharoff was awarded the Order of British Empire in 1918 for this mission. McCormick also notes, “Zaharoff had interests in Briey furnaces of the Comite des Forges. Throughout the war no action was taken against Briey or nearby Thionville, a German area vital to the German army. Orders to bombard Briey were cancelled on orders of Zaharoff.” M. Barthe protested this event in a speech to the French Parliament January 24, 1919.
McCormick found that Zaharoff had made some interesting confessions to close associates. He boasted to Rosita Forbes, “I made wars so that I could sell arms to both sides.” He offered astute political advice to Sir Robert Lord Boothby, “Begin on the left in politics, and then, if necessary, work over to the right. Remember it is sometimes necessary to kick off the ladder those who have helped you to climb it.”
In addition to his Vickers and Electric Boat stock, Zaharoff had large holdings in other armaments manufacturers, Krupp and Skoda. The Skoda Works of Czechoslavakia were controlled by the powerful Schneider family of Schneider-Creusot, headed by Eugene Schneider, whose grand-daughter married the present Duke of Bedford. The Nye Committee found that Vickers interlocked with Brown Boveri of Switzerland, Fokker, Banque Ottomane, Mitsui, Schneider, and ten other armaments firms around the world. Vickers set up a torpedo manufacturing firm, Societe Francasies des Torpilles Whitehead, with the former Whitehead Co., whose owner, James B. Whitehead, then became English Ambassador to France. Frau Margareta von Bismarck was a director of Societe Francasies, as was Count Edgar Hoyos of Fiume.
At its peak in the 1930s, the Vickers network included Harvey Steel, Chas. Cammell & co. shipbuilding, John Brown & Co., Krupp and Dillinger of Germany, Terni Co. of Italy, Bethehem Steel and Electric Boat in the U.S., Schneider, Chatillon Steel, Nobel Dynamite Trust, and Chilworth Gunpowder Co. The trustee for the debentures of the armaments firms was Royal Exchange Assurance Co. of London, of which E. Roland Harriman of Brown Bros Harriman was a director.
As First Lord of the Admiralty, Winston Churchill obligingly changed the fuel of the entire English fleet from coal to oil, as a favor to the Samuel family which owned Royal Dutch Shell.
The most revealing works on the armaments dealers, the Nye Committee Hearings, and “Merchants of Death” are now fifty years old. On p. 167 of “Merchants” we find that:
“The Societe Miniere de Penarroya controls the most important lead mines of the world, accounting for one-eighth of the world’s production. Since 1833 the French bankers, the Rothschilds, have controlled these mines, but in 1909 the Rothschild Bank entered into an alliance with the Metallgeschaft of Frankfurt, the company in which both the Kaiser and Krupp were heavily interested. This company remained under German and French control for about two years of the war. At the outbreak of hostilities, 150,000 tons of lead were shipped from these mines to Germany, via Switzerland. When shipments to France were resumed, the price was raised to such an extent that it more than doubled the price which the English paid for their lead. Free trade between Germany and France in important chemicals, for powder, etc. continued; the Swiss supplied both sides with electric power. All along their frontier great powerhouses sprang into being, facing Germany from Italy, producing iron, bauxite, chemicals and power. Zeiss products were exported to Britain throughout the war.”
Dr. Ellis Powell told an audience at Queens Hall, London, March 4, 1917:
“At the beginning of the war many thousands of German reservists were allowed to return to Germany although our Fleet could have stopped them. German individuals, firms and companies went on trading merrily in British names, collecting their debts, and indirectly, no doubt, financing German militarism. At the very moment when Germans were destroying our property by Zeppelin bombs we were actually paying them money instead of taking their holdings as part compensation for damage done. In January 1915 came the vicious decision by Lord Reading (Rufus Isaacs) and the Appeal Court, according to which the Kaiser and Little William Co. was a good British company, capable of suing the King’s own subjects in the King’s own courts …. The uninterrupted activity in this country of the Frankfurt Metal Octopus is not an accident … Let me analyze one lurid case, which has stirred public indignation and anger to its depths. I mean the impudent survival of the German banks. We have now been at war nearly three years. Yet their doors are still open. They sent large quantities of bullion to Germany after the war started.”
There was a remarkable amount of goodwill and free trade continuing during World War I among the warring nations. Of course the Americans did not wish to be left out of the great outpouring of ‘goodwill’ in which forty million people were killed. It was not enough that the Americans were financing the war through their Federal Reserve System and the personal income tax, which, as Cordell Hull so aptly put it in his Memoirs, “had been passed in the nick of time” before the outbreak of the war; nor was it enough that the Americans were feeding the “Belgians”, actually the Germans, through the Belgian Relief Commission, so that the war could be prolonged until the United States became a belligerent. Concerned Americans dedicated themselves to the proposition that American boys should be killed in the trenches with the British, the French, the Germans and other nationalites.
The warmongers set up three principal organizations to force the United States into World War I — the Council on National Defense, the Navy League, and the League to Enforce Peace. The Council on National Defense was authorized by act of Congress August, 1916, although there was no nation on earth known to be contemplating any attack on the United States.
Pancho Villa had led a small group of bandits against Columbus, New Mexico, but this raid was hardly an occasion for national mobilization. It was a retaliatory strike because of the actions of New York bankers in Mexico — the Warburgs held the bonds of the National Railways of Mexico; George F. Peabody and Eugene Meyer and Cleveland H. Dodge owned the copper mines of Mexico; Seligman & Co. owned Electric Power and Light of Mexico. The Mexican Revolution was an uprising against President Porfirio Diaz, who had collaborated profitably with the Warburgs and Rockefellers for years. Percy N. Furber, president of the Oil Fields of Mexico Ltd. told C.W. Barron:
Robin Breeds | June 23, 2011 at 8:02 pm | Reply
Wars are carefully staged productions and they did what they supposed to do they had a good audience so they successful, to say they had one philosophy of government against another is total nonsense, These are World Order production’s, each side is set up to perform in a certain manner outcome was always predetermined a staged production kinda like a Soap opera. You ask that question to one thousand Britons, and I kid you not, all of them will say that it is owned by the Government. They would be wrong.
The people wielding this power see the world’s financial crisis as their moment of opportunity to seize greater power. The scary part of that is that hardly a living soul even knows they exist. Now that’s real power.
Sabine Kurjo McNeill | June 23, 2011 at 9:30 pm | Reply
What fascinating comments, Robin!
THANK YOU VERY MUCH INDEED!!!
Am currently exploring the ‘real’ power of Twitter to alert people to an attack on Berlin a la 9/11 – foreseen for this Sunday. http://twishort.com/ac4vj
Angela Kenny | August 6, 2011 at 12:10 pm | Reply
wow this is the best i’ve read in a long time.
james armstrong | August 27, 2011 at 7:55 pm | Reply
Backtracking to 1694…… It seems important that the original charter of the B of E was for a twelve year duration only. It was many times renewed, but not without controversy. Here is a precedent for fixing a termination date for every incorporated company, charging them annually for the inestimable privilege of operating in what Adam Smith called the ‘Golden Highway’ of trade in beautiful peaceful credit-respecting England. A Renewable Termination Date would give a sanction to be used for unethical behaviour by companies, banks etc. Money from the licence would easily pay off the national debt. c.f. Goldman S,’s profits of $12bn and salries of $16bn. James .
Sabine Kurjo McNeill | August 28, 2011 at 7:41 pm | Reply
WOW, that’s really useful / constructive / fascinating / interesting, James!
Any suggestion for how to take this forward???
"The maintenance of secrets acts like a psychic poison which alienates the possessor from the community" Carl Jung
Joined: 25 Jul 2005
Location: St. Pauls, Bristol, England
|Posted: Sat Oct 25, 2014 12:20 am Post subject:
|Never mind the Czech gold the Nazis stole...
The Bank for International Settlements actually financed Hitler’s war machine
Hjalmar Schacht (left), Hitler's finance minister, with his close friend Montagu Norman, Governor of the Bank of England from 1920 to 1944
By Adam Lebor8:21PM BST 31 Jul 2013Comments161 Comments
The documents reveal a shocking story: just six months before Britain went to war with Nazi Germany, the Bank of England willingly handed over £5.6 million worth of gold to Hitler – and it belonged to another country.
The official history of the bank, written in 1950 but posted online for the first time on Tuesday, reveals how we betrayed Czechoslovakia – not just with the infamous Munich agreement of September 1938, which allowed the Nazis to annex the Sudetenland, but also in London, where Montagu Norman, the eccentric but ruthless governor of the Bank of England agreed to surrender gold owned by the National Bank of Czechoslovakia.
The Czechoslovak gold was held in London in a sub-account in the name of the Bank for International Settlements, the Basel-based bank for central banks. When the Nazis marched into Prague in March 1939 they immediately sent armed soldiers to the offices of the National Bank. The Czech directors were ordered, on pain of death, to send two transfer requests.
The first instructed the BIS to transfer 23.1 metric tons of gold from the Czechoslovak BIS account, held at the Bank of England, to the Reichsbank BIS account, also held at Threadneedle Street.
The second order instructed the Bank of England to transfer almost 27 metric tons of gold held in the National Bank of Czechoslovakia’s own name to the BIS’s gold account at the Bank of England.
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To outsiders, the distinction between the accounts seems obscure. Yet it proved crucial – and allowed Norman to ensure that the first order was carried out. The Czechoslovak bank officials believed that as the orders had obviously been carried out under duress neither would be allowed to go through. But they had not reckoned on the bureaucrats running the BIS and the determination of Montagu Norman to see that procedures were followed, even as his country prepared for war with Nazi Germany.
His decision caused uproar, both in the press and in Parliament. George Strauss, a Labour MP, spoke for many when he thundered in Parliament: “The Bank for International Settlements is the bank which sanctions the most notorious outrage of this generation – the rape of Czechoslovakia.” Winston Churchill demanded to know how the government could ask its citizens to enlist in the military when it was “so butter-fingered that £6 million worth of gold can be transferred to the Nazi government”.
It was a good question. Thanks to Norman and the BIS, Nazi Germany had just looted 23.1 tons of gold without a shot being fired. The second transfer order, for the gold held in the National Bank of Czechoslovakia’s own name, did not go through. Sir John Simon, the Chancellor of the Exchequer, had instructed banks to block all Czechoslovak assets.
The documents released by the Bank of England are revealing, both for what they show and what they omit. They are a window into a world of fearful deference to authority, the primacy of procedure over morality, a world where, for the bankers, the most important thing is to keep the channels of international finance open, no matter what the human cost. A world, in other words, not entirely different to today.
The BIS was founded in 1930, in effect by Montagu Norman and his close friend Hjalmar Schacht, the former president of the Reichsbank, known as the father of the Nazi economic miracle. Schacht even referred to the BIS as “my” bank. The BIS is a unique hybrid: a commercial bank protected by international treaty. Its assets can never be seized, even in times of war. It pays no taxes on profits. The Czechoslovaks believed that the BIS’s legal immunities would protect them. But they were wrong.
The Bank of England’s historian argued that to refuse the transfer order would have been a breach of Britain’s treaty obligations with regard to the BIS. In fact there was a powerful counter-argument that the Nazi invasion of Czechoslovakia had rendered any such obligations null and void as the country no longer existed.
A key sentence in the Bank of England documents is found on page 1,295. It reads: “The general attitude of the Bank of England directors of the BIS during the war was governed by their anxiety to keep the BIS to play its part in the solution of post-war problems”. And here the secret history of the BIS and its strong relationship with the Bank of England becomes ever more murky.
During the war the BIS proclaimed that it was neutral, a view supported by the Bank of England. In fact the BIS was so entwined with the Nazi economy that it helped keep the Third Reich in business. It carried out foreign exchange deals for the Reichsbank; it accepted looted Nazi gold; it recognised the puppet regimes installed in occupied countries, which, together with the Third Reich, soon controlled the majority of the bank’s shares.
Indeed, the BIS was so useful for the Nazis that Emil Puhl, the vice-president of the Reichsbank and BIS director, referred to the BIS as the Reichsbank’s only “foreign branch”.
The BIS’s reach and connections were vital for Germany. So much so, that all through the war, the Reichsbank continued paying interest on the monies lent by the BIS. This interest was used by the BIS to pay dividends to shareholders – which included the Bank of England. Thus, through the BIS, the Reichsbank was funding the British war economy. After the war, five BIS directors were tried for war crimes, including Schacht. “They don’t hang bankers,” Schacht supposedly said, and he was right – he was acquitted.
Buried among the typewritten pages of the Bank of England’s history is a name of whom few have ever heard, a man for whom, like Montagu Norman, the primacy of international finance reigned over mere national considerations.
Thomas McKittrick, an American banker, was president of the BIS. When the United States entered the war in December 1941, McKittrick’s position, the history notes, “became difficult”. But McKittrick managed to keep the bank in business, thanks in part to his friend Allen Dulles, the US spymaster based in Berne. McKittrick was an asset of Dulles, known as Codename 644, and frequently passed him information that he had garnered from Emil Puhl, who was a frequent visitor to Basel and often met McKittrick.
Declassified documents in the American intelligence archives reveal an even more disturbing story. Under an intelligence operation known as the “Harvard Plan”, McKittrick was in contact with Nazi industrialists, working towards what the US documents, dated February 1945, describe as a “close cooperation between the Allied and German business world”.
Thus while Allied soldiers were fighting through Europe, McKittrick was cutting deals to keep the Germany economy strong. This was happening with what the US documents describe as “the full assistance” of the State Department.
The Bank of England history also makes disparaging reference to Harry Dexter White, an official in the Treasury Department, who was a close ally of Henry Morgenthau, the Treasury Secretary. Morgenthau and White were the BIS’s most powerful enemies and lobbied hard at Bretton Woods in July 1944, where the Allies met to plan the post-war financial system, for the BIS to be closed.White, the Bank history notes rather sneeringly, had said of the BIS: “There is an American president doing business with the Germans while our boys are fighting the Germans.”
Aided by its powerful friends, such as Montagu Norman, Allen Dulles and much of Wall Street, the BIS survived the attempts by Morgenthau and White to close it down. The bank’s allies used precisely the argument detailed on page 1,295 of the Bank of England’s history: the BIS was needed to plan the post-war European economy.
From the 1950s to the 1990s the BIS hosted much of the planning and technical preparation for the introduction of the euro. Without the BIS the euro would probably not exist. In 1994, Alexander Lamfalussy, the former BIS manager, set up the European Monetary Institute, now known as the European Central Bank.
The BIS remains very profitable. It has only about 140 customers (it refuses to say how many) but made a tax-free profit of about £900 million last year. Every other month it hosts the Global Economy Meetings, where 60 of the most powerful central bankers, including Mark Carney, Governor of the Bank of England, meet. No details of meetings are released, even though the attendees are public servants, charged with managing national economies.
The BIS also hosts the Basel Committee on Banking Supervision, which regulates commercial banks, and the new Financial Stability Board, which coordinates national regulatory authorities. The BIS has made itself the central pillar of the global financial system.
Montagu Norman and Hjalmar Schacht would be very proud indeed.
Adam LeBor is the author of 'Tower of Basel: The Shadowy History of the Secret Bank That Runs the World’, published by PublicAffairs
"The maintenance of secrets acts like a psychic poison which alienates the possessor from the community" Carl Jung