Part I—The Goose Comes of Age
Louis Brandeis in 1912 created a verbal vision for Woodrow Wilson’s “New Freedom” by proposing an ethical code of com-petitiveness to prevent further monopolistic power. Both Wilson and Brandeis had good intentions. Unfortunately, good intentions are not enough when power is at stake. Wilson had been set up, as he came to realize before his death. The very men who put him in the Presidency were the men who wanted to control “the people’s own money.”
Before we explore, at a future date, the role that Woodrow Wilson had in creation of the Federal Reserve system, we must under-stand how its predecessor—the J.P. Morgan banking network— functioned “as America’s central bank, and how it stepped into the historic breach between Andrew Jackson’s 1832 veto of the second Bank of the United States and passage of the Federal Reserve Act in 1913.”  It was a clique centered around Morgan which would use Wilson as a pawn. Decades before 1913, however, Morgan’s financial network was busily following models taught by August Belmont, the American agent for N.M. Rothschild & Company—by which they tried to control monetary supply, using the people’s own money. Who they were, and how they got their hands on that money (metaphorically compared by Brandeis to “golden eggs”) is the subject of this article.
This historical exploration is not without purpose. The model is still in use today. Morgan’s role as central banker has since been superseded, however, by the Federal Reserve System, and the names of the political minions have changed. Once we under-stand how events were shaped (dare we say “manipulated”) by Morgan, then we can begin to recognize how much control cen-tralized banking interests have over every aspect of our lives today.
The Role of Skull and Bones in
the Growth of the Morgan Bank
Before 1838, when George Peabody set up a brokerage office in London, there was no real need for a stock exchange in America, since there was no capital surplus large enough to finance the construction of new infrastructure; almost all major capital was raised from foreign investment.
But opium changed that. Profits from illicit trade in China were such that American entrepreneurs were able to bring huge profits back and reinvest it as equity in such industries as New England textile factories and railroads. Nevertheless, the profits were no sufficient initially to finance all the demands for funding of public infrastructure projects desired by state and municipal govern-ments. Peabody marketed such bonds and other securities in London to raise necessary funds for roads, canals and the like.
By 1868, Peabody had died, leaving his partner Junius S. Morgan in charge of the London banking house. Morgan, son of Joseph Morgan of Hartford, Connecticut, in 1836 married Juliet Pierpont—daughter of John and Mary Sheldon Lord Pierpont—who came from a long line of Congregationalist ministers. Juliet's great-great-grandfather, the Rev. James Pierpont (Harvard 1681), was a founder of Yale College, and his wife was the granddaughter of Thomas Hooker, a Puritan, who founded the colony of Connecticut, which had adopted the first written constitution. 
Rev. Pierpont’s daughter Sarah, who in 1728 had married the Rev. Jonathan Edwards, would later become the grandmother of both accused traitor Aaron Burr and of Northern Secessionist Timothy Dwight—president of Yale from 1795 until 1817. 
But Burr woul not be the only member of the Pierpont family who lost faith in the policies of America's elected representatives by the early years of the 19th century. Juliet’s own father, John Pierpont (Yale 1804), who practiced law in Newburyport (Essex County), Massachussetts, protested against the War of 1812 and the embargo before moving to Boston to study for the ministry. The Pierponts, in addition to being an aristocratic family with branches that controlled numerous pools of wealth, had long been connected to a faction which opposed the way majority rule operated in the American Republic.
Junius and Juliet Morgan’s eldest son, John Pierpont Morgan, was educated in Vevey, Switzerland and at the University of Göttingen, Germany, before working with his father in London. After serving as the Peabody and Junius Morgan bank’s New York agent for several years, he formed J.P. Morgan and Company in 1895, five years after his father had died. Connections to Yale’s elite came from his maternal grandmother, a descendant of both the Lord and Lynde families, which are strongly represented among the Skull and Bones society.
The Pierponts were related not only to the Edwards and Burr families, but to the opium trading Russell family. Sarah Pierpont’s sister Mary, who married William Russell, was mother to Samuel, who founded Russell and Company in 1824, and to Rev. Nodiah Russell, a founder of Yale and the grandfather of William Huntington Russell.
The ties to Yale made it possible for Morgan to become banker of choice for the Skull and Bones members who had gained positions as directors and trustees of institutions that had pools of money to invest, according to the original vision in 1832.
By the 1870’s, however, a second generation had assumed con-trol, and they were not satisfied with simply investing existing capital. They wanted much more than that. Their vision was of turning the New York Stock Exchange into a goose whose golden eggs were theirs for the stealing. This second generation was composed of men who had been led to believe they were special, privileged and not answerable to the masses. There is a reason, as we shall see below, why they would become known as the “robber barons,” and their age as “gilded.”
Henry Stimson’s Bones Network
In 1856 a special act of the Connecticut legislature gave the Russell Trust Association the status of a corporation, with a New Haven attorney named Henry Dyer White (Skull and Bones 1851) as its treasurer.  Antony Sutton mentions in his classic book that another member of what he terms “The Order” was Charles Atwood White (Skull and Bones 1854), father of Mabel White, who married Henry Stimson five years after his 1881 graduation from Yale. The couple first met while young Stimson was a Yale student at a whist party given by the Whites’ next-door neighbor, William D. Whitney, Professor of Sanskrit and a member of an extraordinary Massachusetts family closely tied to the Order.  Mabel’s grand-father, Henry White, was a New Haven lawyer who had five sons initiated into the Order, several of whom became attorneys and worked at various times in his  firm. The Whites lived at 87 Trumbull, which today is part of Yale’s campus.  Skull and Bones was the social circle into which Stimson’s marriage brought him.
Skull and Bones at Yale
According to Stimson’s biographer, Henry Stimson’s father—Dr. Lewis Atterbury Stimson—did not relish the thought of his son’s marriage to a person of a lesser class than his family, even though Mabel’s ancestry, through her grandmother, was directly traceable to Captain Miles Standish of the Plymouth Colony.  Nevertheless, the connection to the Order would give the young husband a foot in the door with Bonesman William Collins Whitney (Skull and Bones 1863), a Yale classmate and friend of Dr. Stimson.  Whitney recommended Stimson to his own attorney, Elihu Root, a graduate of Hamilton College where Root’s father was a mathe-matics professor. Henry B. Payne, Whitney’s father-in-law had also been born and educated in Hamilton, NY before relocating in 1833 to Ohio, where his wife’s father, Nathan Perry, was the leading merchant.  Through this marriage, Payne thus made contact with the nautical Rhode Island Perrys of Newport—a town with the unpleasant distinction of having been the center of the African slave trade.  Rothschild agent August Belmont, who married Caroline Slidell Perry, had helped transform Newport into an opulent resort for America’s most wealthy, including the Vanderbilt and Astor families.
By accepting Root’s offer of employment in 1891, Stimson would be working for a man who had helped Democratic Governor Samuel Tilden end the Tweed Ring’s control of Tammany Hall, even though Root had represented Republican Boss William Tweed in 1873. Whitney’s goal had not been to stop corruption, but to control it, believing that graft and political corruption were contemptible only so long as they were not being used to his own advantage. Whitney boasted that he hired Root’s firm because Root knew how to manipulate the law without breaking it.
Inventing the “Pump and Dump”
Whitney’s loyalty to the Democratic Party won him an appoint-ment as Secretary of the Navy under Grover Cleveland in 1885. As naval chief for four years, Whitney supervised an ambitious pro-gram to build battleships and to modernize the navy, which would serve to benefit the Perry family, as well as to make it possible in 1898 to challenge Spain in Cuba and the Philippines.  By 1890 Whitney had returned to New York, and his syndicate had begun to consolidate street railways in Philadelphia, New York, and smaller cities into one electric transit company. They hired attorney Francis Lynde Stetson to incorporate America’s first holding company, which would become a model for financial fraud to the present day. 
According to the legal model Stetson followed, stock of Metropolitan Traction Company, a holding company, was issued to pay Whitney and his associates for the forty or so independent surface transit companies whose properties they had purchased, including franchise rights. Since Whitney’s syndicate controlled the new city officials, they were able to obtain a monopoly concession to build one electric streetcar system along the various routes previously authorized—a right which increased the value of the properties sold to the holding company.
Almost all the properties purchased were decrepit horse-car lines in unprofitable territory, with little earning capacity or value; yet Metropolitan paid prices in amounts from five to twenty times their acquisition costs plus anticipated cost of construction.  The routes with greater value were merely leased at large annual rentals in excess of their potential revenue.
When the holding company’s management (Whitney’s syndicate members) began declaring huge dividends for Metropolitan Traction Company—thus pumping up the stock’s price to ever greater heights—the unwary public rushed to the NYSE to buy the stock, which the insiders were happy to dump to the tune of millions in profits for themselves.
Having once sold all their stock, the promoters then felt no obli-gation to actually build the modernized streetcar system they had promised. Newspaper publicity against the fraud perpetrated by the Metropolitan Traction Co. resulted in rescission of its fran-chise, an action overturned after an appeal to the Supreme Court handled by Root and Clarke. "It is not a function of law," Root rationalized, "to enforce the rules of morality."
The evidence supports only one conclusion: Henry Stimson’s true role as an attorney and “statesman” was to defend the interests of those bankers engaged in creating an American central bank. His office was located almost adjacent to the site where in 1914 the Federal Reserve Bank of New York would be located, in a building which would remain his home base off and on for over fifty years.  When Root left the firm in 1899 to join the Republican administration, Stimson and another associate, Bronson Winthrop, started their own firm in the same location, engaged primarily in corporate securities and litigation. Winthrop (an American globalist, who had been born in Paris and educated in England), shared with John Forbes Kerry a mutual ancestor, Wait Winthrop, as detailed in Untitled Aristocracy.
In 1906 Stimson followed the same path blazed by Elihu Root—as attorney for the southern district of New York—the district with jurisdiction over the New York Stock Exchange and the lower Manhattan banks. Bronson remained in the original offices to carry on the firm’s legal business, with Stimson returning from time to time between appointments in Washington. These men com-prised an internationalist, even imperialistic, circle of men deter-mined to make America a supreme power in the world.
Musical Chairs Skull and Bones Style
In 1899 Republican Elihu Root was appointed secretary of war by President McKinley, who had spearheaded the Spanish-American War, which would then lead to his suppression of the Boxer Rebellion in China.  Less than six months after the inauguration on his second term, McKinley was assassinated, and Theodore Roosevelt became President. Secretary of State John Hay, whose daughter Helen in 1902 would marry Whitney’s son Payne (Skull and Bones 1898), had supervised the treaty to end the Spanish-American War and formulated the Open Door policy.  When Hay left the Cabinet, Elihu Root took his position and would be re-placed in turn by William Howard Taft (Skull and Bones 1878, and son of founder Alphonso Taft). Taft had first served in 1900 on the Philippine Commission, eventually serving as Governor General of the Islands, before advancing to the chair of Secretary of War in 1904. After his stint as head of the State Department, Taft moved to the White House in 1909.
As President, Taft appointed Root’s former associate Stimson to be Secretary of War in 1911. In 1912, after Taft and TR had cam-paigned against each other, thus making way for a Democrat, Woodrow Wilson, to usher in the radical banking “reforms” which the Republicans had been supporting by other names for years, Taft returned to Yale as a professor until he was named Chief Justice of the Supreme Court in 1921.
In 1927 Stimson served under Calvin Coolidge in Taft’s former role of Governor General of the Philippines (where John Kerry’s great-uncle W. Cameron Forbes, had also served), as well as being Secretary of State in the administration of Republican Herbert Hoover. So popular (or perhaps only “connected”) was Stimson that he was also tapped by Democrats Franklin Roosevelt and Harry Truman to be Secretary of War. 
Stimson’s ubiquity in each successive administration was due, not so much to his military and diplomatic brilliance, but to his knowledge of how to secretly finance war and extract spoils from the defeated—combined with his closeness to the money spinners operating undeterred behind the scenes. Colonel Stimson was like a sentry, pacing back and forth in front of the door to the henhouse where geese were busily laying golden eggs. He was there, not to protect the geese or their eggs, but to run interference for his co-conspirators inside who snatched up the gold as soon as it appeared. These geese represent pools of wealth accumulated through hard work, charitable donations and taxes imposed on Americans. Investment bankers, ostensibly intending only to “borrow” the gold and return it with interest, have been trained for generations how to stealthily remove that gold, in order to amass huge fortunes for themselves through market manipulation and fraud.
When they fail in their claimed intent to return the gold, to prevent exposure they blithely plan new wars or other diversions in order to save their reputations. McKinley, Roosevelt and Taft, for example, promised the American people that there was an urgent need to “liberate” the islands of Cuba and the Philippines from Spain, and that the territory would be “developed” and “reconstructed” for the benefit of those abused populations.
We all recognize that George W. Bush is in no sense a creative intellectual. Neither are those who have planned the war in Iraq. They are merely following the same model used at the turn of the previous century—for exactly the same reason. They know there is oil in Iraq, and that the untapped markets there could not be tapped while Saddam was in power. By removing him, it would be possible to open the door to trade with Iraq—another goose of sorts—whose glittering eggs were too hard to resist.