Bankers’ Confessions

“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”

The Rothschild brothers of London writing to associates in New York, 1863

“The bank hath benefit of interest on all moneys which it creates out of nothing.”

William Paterson, founder of the Bank of England

“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented.”

“Banking was conceived in iniquity and born in sin. The bankers own the world. Take it away from them, but leave them the power to create money and control over that money, and they will create that money right back again. Take this power away from bankers and all great fortunes will disappear, and they ought to disappear, for this then would be a happier, better world to live in … But if you want to continue to be slaves to the banker and pay the cost of your own enslavement, then let the bankers continue to create money and control credit.”

Josiah Stamp, governor of the Bank of England during an informal talk to about 150 history, economic, and social science professors in the late 1920′s at the University of Texas.

“I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.”

Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924

“Banks lend by creating credit. They create the means of payment out of nothing.”

Ralph M. Hawtry, former Secretary to the Treasury

“Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower’s IOU.”

The Federal Reserve Bank of New York

“This is a staggering thought. We are completely dependent on the Commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money, we are prosperous; if not, we starve. We are, absolutely, without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse, unless it becomes widely understood, and the defects remedied very soon.”

Robert H. Hemphill, Credit Manager of Federal Reserve Bank, Atlanta, Georgia

Congressman Patman: “How did you get the money to buy those 2 billion dollars’ worth of Government securities in 1933?”

Governor Eccles: “We created it.”

Patman: “Out of what?”

Eccles: “Out of the right to issue credit money.”

Patman: “And there is nothing behind it, is there, except our Government’s credit?”

Eccles: “That is what our money system is. If there were no debts in our money system, there wouldn’t be any money.”

Dialogue notated during hearings of the House Committee on Banking and Currency, September 30, 1941. Members of the Federal Reserve Board call themselves ‘Governors.’ Eccles was Chairman of the Federal Reserve Board at the time.

“Let me issue and control a nation’s money and I care not who writes the laws.”

Mayer Amschel Rothschild (1744–1812), founder of the House of Rothschild