Part II—Snatching the Gold

The Morgan Bank’s Intelligence Operations

Henry Stimson, we have been led to believe, devoted his entire life to selfless service, receiving almost no remuneration from the American government. How, then, did he become so wealthy? Godfrey Hodgson, in his biography of Stimson, refers obliquely to Stimson’s first cousin, Alfred Lee Loomis, an attorney whom Stimson had brought into his law firm to work with Bronson Winthrop. Loomis left to serve in World War I at Aberdeen Proving Ground (where military ordnance and chemical weapons are tested). He returned after the war to New York to take up where Whitney had left off—to make money for Morgan-controlled enterprises. With his brother-in-law, Landon K. Thorne, he purchased the brokerage firm of Bonbright and Company. It was this company which made Loomis, Thorne and Henry Stimson extremely wealthy. [1]

When William Colins Whitney, fifty years earlier (as described in Part I), had used Stetson’s holding-company model to consolidate streetcar companies into one municipal monopoly, he defrauded millions of small investors who believed the company would provide a more modern transportation system. There are many clues, however, that Whitney—though he himself became extremely wealthy—may have had additional political motives. Ron Chernow indicates that Whitney, likely upon the request of J.P. Morgan, acted as a virtual babysitter of President Grover Cleveland—while in Washington and in New York



A year after Cleveland left office in 1889 a gold drain began as a result of the American Populists’ promotion of free silver—causing Europeans to fear the devaluation of their currencies against the dollar. During the Panic of 1893, this drain became so severe that Morgan used Stetson to lobby Cleveland (who had been elected again in 1892), to convince the President to “rig, temporarily, the gold market” and ignore Populist pressure for a public bond issue. The investment banks of Morgan and Rothschild (acting through August Belmont Jr.) issued $65 million in 30-year gold bonds while promising the public that the government would not allow the gold to flow out again.[4]

But the gold continued to flow to Europe, and Cleveland finally allowed a $67 million public loan issue, which stemmed the tide. Political cartoonists of the day (see photos to the right) expressed the sentiment that the Morgan bank was in league with the Rothschilds and their agents. Ironically, as the Republicans were gearing up for war in Cuba and the Philippines, one cartoonist depicted Cleveland as preventing the U.S. from going to the aid of Cuban peasants, whose throats were being slashed by the Spanish Crown while Rothschilds caught their blood. As indicated earlier, Henry Stimson served on both sides of this controversy, advising both Cleveland and Taft.

The tension at the time was greatly heightened by the Haymarket riots that occurred in Chicago in 1886, which had begun at the plant of the McCormick Harvesting Machine Company.  We will explore this labor unrest and the reaction it engendered among members of the class of bankers and international traders in future articles. It was that riot which spurred formation of trusts, as well as the 1889 meeting of railroad tycoons called by J.P. Morgan, by which a plan was devised to “regulate” transportation and commerce by “the government,” which would be totally under control of the banking class. This too will be explored in greater depth later.

Rockefeller Overpowers Morgan

The 1893 Panic would create the impetus that would lead to the eventual takeover of Morgan interests by competing investors in the Harriman and Rockefeller syndicates. Most of America’s railroads had been placed in receivership as a result of gold flowing out of the country to European purchasers of American securities, and E.H. Harriman acquired the Union Pacific railroad (previously owned by Jay Gould) with approval of those creditors who hoped to recoup their investment. In 1901 Harriman challenged James J. Hill for control of the John Murray Forbes CB&Q railroad; Morgan sided with Hill and lost the contest to Harriman, who then gained the support of Rothschilds-linked firm Kuhn, Loeb as well as the Standard Oil group, which then included Oliver Payne and later his nephew Payne Whitney. 

At his death in 1904, William C. Whitney had left his fortune to son Harry (married to heiress Gertrude Vanderbilt) and to his daughter Dorothy. Harry was a director of Guaranty Trust (Morgan), while Dorothy was married to Willard Straight, a partner in the Morgan investment bank. According to Carroll Quigley, the Morgan group, which had been responsible for putting the capital together to finance the Bolsheviks in Russia, infiltrated the political left in the United States.[5] After J.P. Morgan’s death in 1913, Morgan Bank partners Thomas W. Lamont and Henry P. Davison used Dorothy Whitney's husband, Willard Straight, to work out a loan to Russia, while Dorothy Whitney Straight subsidized the “liberal press”—both The Nation and The New Republic. Her brother, Payne Whitney, inherited his uncle Oliver Payne’s Standard Oil stock and the largely Republican social set that it entailed.

As a result of the rise of Rockefeller to dominance in the Federal Reserve, the companies in which the family was most heavily invested became the ones that the Rockefeller-controlled banks (Chase and CitiGroup) protected. The industries that Morgan dominated—such as U.S. Steel and General Electric—would become increasingly less important until, by the end of World War II, major emphasis shifted to oil, chemicals and pharmaceuticals.

The Big Cheese Takes the Gold

But what can we say about Henry Stimson?  In the beginning his power came from Morgan—through the money-spinning combine of Whitney, Root and Cleveland.  But Stimson remained as an influence of power, even as Morgan’s position waned, and Rockefeller’s moon began to wax ever stronger. Stimson knew where all the bones were buried. As revealed by Sterling and Peggy Seagrave, it was Stimson who first suggested to President Franklin Roosevelt at the end of World War II that all the recovered Axis war loot from the Nazis and Japanese be used to finance a “global political action fund.” [6]

Stimson managed this top secret project called Black Eagle by delegating authority to four assistant secretaries of War 
  • Robert Patterson, a lawyer and former federal judge;
  • Harvey Bundy, Boston lawyer and Yale graduate; and
  • two dynamos Stimson called his Heavenly TwinsJohn McCloy and Robert Lovett
What they all had in common was their close relationship to the Harrimans and Rockefellers. [7]

Though Allen Dulles was not one of Stimson’s inner circle, as attorney at Sullivan & Cromwell, which handled other legal work  for the Rockefellers, he would become privy to the plan as well.[8]

We have met Bundy and McCloy in previous articles about John Kerry’s family background. Lovett was also from Skull and Bones (1918) and grew up with Averell and Bunny Harriman.[9] He married the daughter of a senior partner of the Brown Brothers investment bank, which he helped to merge with W.A. Harriman & Co., for which Prescott Bush and his father-in-law worked—making its executive committee very top-heavy with Skull and Bones members. Robert Patterson—senior partner of Patterson, Belknap, Webb & Tyler—a Wall Street firm set up in 1938 as an offshoot of McCloy’s Milbank Tweed which handled Rockefeller’s banking and oil business—represented the Rockefeller philanthropies.

This Wall Street (mostly Skull and Bones) team began in 1945 with a “separate pool of black gold that put an extra floor under the postwar economy,” to make a concerted effort to keep “gold prices artificially high while discreetly using derivatives of this gold as a clandestine slush fund.”[10] Very little, it seems, had changed in the years since Morgan had worked with August Belmont, Jr. to stop America’s gold from draining to Europe. August Belmont IV stepped in to advise the Rockefellers on how to create a web of corporations out of natural gas discoveries and energy pipelines—a subject which also requires a separate article.

Stimson’s Wealth Came from Loomis and Thorne Investments

As we mentioned earlier in Piracy, Henry Stimson was very close to both Alfred Loomis and Landon Thorne, who not only made Stimson rich, but created, through stock manipulation of public utility companies, a slush fund that pre-dated the Black Eagle trust. This slush fund financed the research of nuclear power without which we could not have bombed Japan, and the knowledge about how to create such troves of treasure has been secretly passed from one group of insiders (often schooled in esoteric societies like Skull and Bones.

Thorne worked on his stock spinning out of an office at White & Case located at 14 Wall—the Bankers Trust Building—adorned with a pyramid atop J.P. Morgan’s penthouse. Thorne’s son, who would spend his entire career working for Bankers Trust, was John Kerry’s first father-in-law. The elder Thorne had in 1911 married Loomis’ sister, Julia Atterbury Loomis. Thus, not only was Kerry tied to the Stimson network through his roommate Harvey Bundy III, but also through his wife Julia, whose grandmother was a first cousin of Stimson. [11]

Bankers Trust—a Morgan subsidiary set up to manage trust funds of wealthy clients such as the Du Ponts and Astors—was incorporated in 1901 by the law firm of White & Case, which has represented it ever since.[12] The purchase of Bonbright & Co. by Loomis and Thorne had been underwritten by J.P. Morgan & Co., through its full control of General Electric in 1892.[13] Bonbright was used as a front for the Morgan bank (much as it had used Whitney in 1890) to finance rural electrification and expand electrical markets all over the world. Loomis joined Thorne at Bonbright in 1919, six years after J.P. Morgan had died. It was not coincidental that Benjamin Strong, the man named to head the New York Fed in 1914, came from Bankers Trust, since Morgan had been, before his death in 1913, the equivalent of an American central bank.

All the utility companies Bonbright financed were taken public not long before the 1929 crash. Bonbright joined with the Morgan bank in issuing securities for a new holding company, United Corporation, which would control one-third of electric power in the eastern twelve states.  The initial price of the stock was so inflated, the men later claimed they realized how massive the Wall Street bubble had become.  As author Jennet Conant says, “quietly, over a period of months, Loomis and Thorne liquidated their remaining securities and converted everything into sound, long-term treasury bonds and cash.

Then came Black Thursday. [14]

A year after leaving the bank, Loomis and Thorne sold their interest and placed the proceeds in a holding company managed by Thorne, who also would continue to manage investments for Stimson. In 1932, however, while they were still actively running the business, the grandson of the famous August Belmont, N.M. Rothschild’s American agent, became an associate of the firm. The Who’s Who for August Belmont IV (1908-1995) notes that he was “with” Bonbright & Co. from 1932 until 1942. At this point we can only speculate whether there was a secretive Rothschild alliance that would help explain the young men’s rapid rise in the world of high finance. In the years after 1942 Belmont would move to Dillon Read, where he would be at the center of every issue of securities involving natural gas in Texas, as well as all major pipeline companies in that state.

John Kerry’s Ties to Bankers Trust

You will recall that Landon Thorne, Sr. worked out of an office at the White & Case law firm, located in the Bankers Trust Building at 14 Wall Street, and that his son—father of John Kerry’s wife Julia—spent his entire career at Bankers Trust. In 1966, in fact, John Kerry designated his fiancee Julia Thorne as a beneficiary of his Navy life insurance, with her address as 14 Wall Street. He and Julia were married in 1970, shortly before her twin brother began grooming Kerry for his first run for Congress. Her father died in 1980. In 1988 she divorced Kerry—the same year the Senator issued the "Kerry Report" on Iran-Contra, in which he covered up the Mena drug-smuggling that helped pay for the arms sent to Nicaragua.[15] We have never learned the entire truth of that operation.

Did John Kerry have connections through marriage to Bankers Trust? What is the significance of the sale of Bankers Trust in 1999 to Deutsche Bank—ten years after Deutsche Bank acquired Morgan Grenfell UK? 

We know that White & Case attorneys drafted the merger documents in 1999 to allow Deutsche Bank to buy out Bankers Trust (which had merged with Alex. Brown & Co.). Deutsche Bank had acquired Morgan Grenfell of the UK ten years earlier. Stocks on world markets had taken a 23% dive in October 1987, just two months after Alan Greenspan—appointed by President Reagan and sworn in by Vice-President George Bush—replaced Paul Volcker as chairman of the Board of Governors of the Federal Reserve. Greenspan at that time acknowledged his debt to his mentor, Dr. Arthur F. Burns—the Austrian-born economist appointed Chairman of the Federal Reserve in 1970 by Richard Nixon. 

Burns had been at the Fed when Nixon and Treasury Secretary John Connally imposed wage and price controls and removed the gold backing on the dollar. [16] The result was that the dollar suffered its greatest loss in value since the Civil War.  Burns left the Fed in 1978 and was subsequently appointed by Reagan as American ambassador to Germany, serving until 1985. [17] 

The Gold Vanishes

What was the end result of the dollar’s decline? 

According to the writers of Executive Intelligence Review, by 1981 the dollar had fallen to 60% of its pre-1971 level, while American stock equity fell 30% in terms of gold. Every major brokerage firm in the United States at that point began having serious financial problems. Lehman Brothers sold 7% of its equity to a Lugano-based Swiss bank functioning as a subsidiary of Banca Commerciale d’Italia (where the P2 Masonic lodge had been created). [18] Drexel Burnham Lambert sold out its entire capital to the Lambert family of Brussels, Begian cousins of the Rothschilds. A.G. Becker of Chicago merged with the S.G. Warburg bank and Paribas to form Warburg-Becker-Paribas, which merged into Merrill-Lynch in 1984.

In 1981 Salomon Brothers (investing arm of Citibank) merged with Phibro (the trading arm of the Oppenheimer interests); the name was changed to Salomon, Inc. in 1986, and is now (2004) a division within the Citibank corporate banking system. Therefore, according to EIR, “Oppenheimers acquired effective policy control of the largest American commercial bank, Citibank.” [19] As we know, Citibank now controls the New York Fed, which controls America’s entire Federal Reserve System. 

Henry Stimson had died in 1950, by which time his team in control of Project Black Eagle had managed to secrete gold in 176 accounts in 42 different countries.[20] Of Black Eagle’s original team and others who would have been taken into the circle:  Robert Patterson died in 1952, Harvey Bundy in 1963, and Allen Dulles in 1969.  Robert A. Lovett died in May 1986, and John McCloy would follow in March 1989. Robert B. Anderson, who was also a trustee, would depart the scene in August 1989, two years after William J. Casey, who expired in May 1987. 

As the last of the Black Eagle trustees were fading away, others who took the side of the “old soldier,” General Douglas MacArthur, were appearing on the scene. “Private” organizations linked to elements of U.S. intelligence and anti-communists recovered more hidden gold from the Philippines. General John Singlaub—closely associated with the former World Anti-Communist League and the off-the-shelf intelligence operations associated with the Iran-Contra affair—was part of a recovery program known as the Nippon Star (a subsidiary to Nippon Electronics). [21] Also interested were former military and intelligence officers Ray Steiner Cline, CIA deputy director of operations; General John Vessey, the first man to rise through ranks from private to four-star general to chairman of Joint Chiefs of Staff, 1979-85; and General Robert Schweitzer, Reagan’s National Security Council chairman (Oliver North’s boss). [22]

Another insider in this group was General Erle Cocke, Jr., an alternate executive director of the World Bank, 1961-64, who died in 2000. Cocke was interviewed before his death by former banker, David Guyatt, who has written about his own experience with “Project Hammer,” a collateral trading program wherein “vast pools of unvouchered slush funds,” were transferred in 1989. Used to “generate funds to pay off debts on bullion certificates issued by certain metal trusts, the funds were siphoned off surreptitiously in order to rescue numerous major U.S. and other banks that by the latter half of the 1980s were tottering on the brink of bankruptcy.”[23] It should be noted here that the Euro, which was introduced January 1, 2002, claimed to be backed by precious metals, presumably under the control of the “metal trusts” which benefited from the diversion of the gold to the Fed banks in 1989.

The October 1987 stock market crash occurred one year after the Iran/Contra scandal had hit the headlines. Oliver North was convicted in May 1989—at the same point in time that Project Hammer was taking place. The discovery was soon made that certain slush funds, or the gold used as their asset base, had disappeared. It is possible that the gold had been diverted by the U.S. Federal Reserve—primarily Citibank and other New York banks—which had suffered heavily from the global stock crash of 1987 and were on the verge of bankruptcy. [24]

An integral player in Project Hammer was Bankers Trust. We can infer from Guyatt's work that gold certificates that arose from the World War II looted gold accounts originated in the offices of White & Case—long-time attorney of the old Morgan subsidiary that handled trust funds of American oligarchs like the Astors and Belmonts.

Hegelian Pendulum

As yet we are unable to explain whether John Kerry had knowledge of the reasons for the gold’s disappearance. We do know his committee protected the drug money-laundering operations of Barry Seal at Mena, Arkansas, that had been conducted with the protection of then-governor Bill Clinton as an operation run through the offices of then-vice-president George H.W. Bush. The election of 2004 between John Kerry and George W. Bush (each of whom had been tapped by Skull and Bones at Yale) would guarantee that whichever one became President of the United States, the old boy network would be in control of America's top office. Globalism would be the ultimate winner. 

Under the Hegelian philosophy adopted by Skull and Bones--in which the electorate could choose between continuing the policies of George W. Bush or policies purporting to shift government to the left--either result would advance the world closer to centralized control by whoever can accumulate the most gold. We can be assured, however, it will not be the average middle-class citizen who controls that gold.

© 2004 by Linda Minor

[1] Hodgson’s only other reference to Loomis would be extremely confusing were it not for a more recent study of Loomis made by Jennet Conant. According to Godfrey Hodgson, The Colonel, pp. 288-289:
“As late as March 1941 James Bryant Conant, president of Harvard University and an organic chemist with an international reputation, who happened to be in England, learned of the possibility of a nuclear bomb for the first time from Winston Churchill’s friend the Oxford physicist F.A. Lindemann….That there was a war program for scientific research at all was largely the work of a small group of scientists, mostly New Englanders and New Yorkers, who were the opposite numbers in the scientific Establishment of Henry Stimson and those others in the political sphere who believed that the United States must be awakened to the danger of the war. Conant was one of these. So was Stimson’s first cousin Alfred Loomis, the multimillionaire investment banker turned physicist who conducted experiments in his privately funded laboratory at Tuxedo Park, New York.”
[2] William Whitney’s sister Lilly was married to Charles Tracy Barney, who became president of the Knickerbocker Trust. No family connection has been found, at the time of this writing, to link Barney to Tracy. The NYSE was located just across the street at 8-18 Broad.

[3] Ron Chernow, The House of Morgan, p. 73.

[4] Ron Chernow, The House of Morgan, p. 75.

[5]  Quigley states:  “The purpose was not to destroy, dominate, or take over but was really threefold: (1) to keep informed about the thinking of Left-wing or liberal groups; (2) to provide them with a mouthpiece so that they could ‘blow off steam,’ and (3) to have a final veto on their publicity and possibly on their actions, if they ever went ‘radical.’”  Carroll Quigley, Tragedy and Hope.

[6] Sterling & Peggy Seagrave, Gold Warriors:  The Covert History of Yamashita’s Gold—How Washington Secretly Recovered It To Set Up Giant Cold War Slush Funds and Manipulate Foreign Governments (Bowstring Books, 2002), p. 96.

[7] Seagrave, Gold Warriors, p. 97.

[8]The trust fund “was part of a secret agreement eclipsed behind the 1944 Bretton Woods Agreement. Consequently, the metal was placed under the care of OSS (and later CIA) operative Severino Garcia Santa Romana, who put it under the control of numerous corporate entities he formed for the purpose. These entities, in turn, proceeded to establish 176 bank accounts in 42 different countries in which to deposit these assets under private treaty agreement.”  David Guyatt, Project Hammer Reloaded.

[9]  His Texan father, Robert Scott Lovett, a former partner in Houston’s Baker & Botts, was chairman of the Union Pacific after E.H. Harriman died.

[10] Seagrave, Gold Warriors, p. 99.

[11] Alfred and Julia’s mother, Julia Stimson Loomis, was the sister of Henry L. Stimson’s father.

[12] Paul Hoffman, Lions in the Street: The Inside Story of the Great Wall Street Law Firms (New York:  Saturday Review Press, 1973), p. 27.  The firm would also handle the Guggenheim trusts. In the 1970’s the firm would be involved in restructuring New York City’s finances and also the debt of Indonesia and other sovereigns around the world. A decade later the firm’s website takes credit for working with “the Federal Reserve Board on terms to provide liquidity when stock market crashes.” Defunct link,, accessed in 2004.

[13] Jennet Conant, Tuxedo Park:  A Wall Street Tycoon and the Secret Palace of Science That Changed the Course of World War II (Simon & Schuster 2002), p. 86. According to Conant, their retirement was necessitated by the provisions of the Glass Steagall Banking Act of 1933. “By leaving Bonbright, they would be free to hold their many bank directorships without conflict with the new stricter provisions….They were the young and restless forces behind the giant new power companies, and their impeccable credentials had allowed them to pool money from a dozen of the greatest private fortunes in the country—Morgan money, Mellon money—with the money invested by millions of working-class people.”

[14] Conant, Tuxedo Park, p. 76.

[15] See full report online.

[16] Nixon, in the summer of 1971, made a
“unilateral abrogation of commitments incurred by the U.S. in accord with the General Agreement on Tariffs and Trade. Far more basic was Washington's decision to scuttle the Bretton Woods Agreement, under which the International Monetary System, for more than a generation, had functioned. That pact required this country, in all circumstances, to exchange one ounce of gold for thirty-five American dollars. With a stroke of the pen, the President violated these solemn obligations, thereby welching on our creditors and setting the International Monetary System adrift on a sea of floating exchange rates….In early February, the U.S. devalued the dollar for the second time by nearly 10%, a move which unleashed the pent-up mistrust of this country's European creditors, who promptly began to dump their huge dollar holdings - well over $50 billion in what has come to be known as the third, if unofficial, devaluation. By the end of June, the dollar had depreciated by 20-25% against the strong European currencies and the Japanese yen….. Owing largely to the Committee on Interest and Dividends - -more specifically, to Arthur F. Burns - the dollar suffered its second and third devaluations. The sequence of events began unfolding in the fall of 1972, when Western Europe, beset by mounting inflationary pressures, moved to tighten credit. By the end of that year, the floating rate of the Bank of England, which stood at 6% in June, had gone to 8%. The Bank of France had increased its discount rate twice, from 5-¾% to 7-½%. Despite the sharp upward trend of interest rates abroad - one which accelerated in the early months of 1973 - the Federal Reserve persistently kept a lid on interest rates at home. Hence the gap between U.S. and foreign interest rates gradually widened to an alarming three hundred basis points, or three full percentage points…. In short, while pretending to control inflation, the Nixon Administration, aided and abetted by the allegedly independent Federal Reserve Board, has turned the inflationary spigots wide open. Small wonder that despite wage and price controls - or, more accurately, in some measure because of them - the U.S. currency has suffered its worst loss of value in over a century.” 
Robert M. Bleiberg, “Farewell to Wage and Price Controls,” Imprimis, the monthly journal of Hillsdale College. July 1974, Vol. 3, No. 7. See cached version saved on October 18, 2010 saved from
Farewell+to+Wage+and+Price+Controls%E2%80%9D+bleiberg&cd=1&hl=en&ct=clnk&gl=us .
While all this was going on in front of the American people in opposition to the advice of almost every economic adviser except Burns, we have only recently discovered that Nixon’s administration was also negotiating secretly with Japanese officials and Yakuza, regarding gold slush funds (the M-Fund) which Nixon returned to their control, subject to a kickback for his re-election campaign. See David Guyatt’s article “The Spoils of War.”

[17]  See brief biography of Arthur Frank Burns.

[18] See The Nazi Party, the Thule Society, the Occult, and Freemasonry for a discussion of the Propaganda Due lodge.

[19]  EIR, Dope, Inc. 1992 edition, p. 101.

[20]  Nazi Gold: The Black Eagle Trust.

[21] Singlaub founded the United States Council for World Freedom (USWCF) with funding from the WACL of Taiwan and from Joseph Coors (whose foundation is currently one of the biggest funders of the the Neocon-connected Hudson Institute). Singlaub reported that USWCF was raising $50,000 a month from a group of wealthy Texas conservatives including Bert Hurlbut of First Texas Royalty and Exploration Co. and John Howell of Howell Instruments in Houston, as well as Dallasites Nelson Bunker Hunt and Herbert Hunt, among others. See Institute for Policy Studies. See also Dave Emory's links to radio interviews (audio).

[22] See David Guyatt’s excellent e-book, The Secret Gold Treaty.

[23]  David Guyatt, Project Hammer Reloaded, Part 1 of 2, Nexus Magazine, Vol. 10, Number 5 (August-September 2003) See other articles by David Guyatt.

[24] In the stock market crash of October 1987, the S&P 500 index futures was priced at 10% discount to the spot index price, which was unprecedented in the US stock market. Source: Defunct link, accessed in 2004.
Cleveland "was a friend of the House of Morgan and a staunch advocate of the gold standard.  During the four years he spent on Wall Street between his two presidential terms, Cleveland worked in the law offices of Bangs, Stetson, Tracy, and MacVeagh—the law firm of Pierpont’s father-in-law, Charles Tracy, located at 15 Broad Street, next door to the Morgan bank at 23 Wall. [2] Cleveland had been good friends with the shrewd Francis Lynde Stetson, Pierpont’s lawyer for the railroad reorganizations and known on Wall Street as Morgan’s attorney general. He also befriended many Wall Street people and was one of the twelve pallbearers at the funeral of August Belmont, Sr., in 1890. Although Pierpont was a Republican, he wasn’t antagonistic toward the Democratic Cleveland. In 1884, he cast his lone Democratic vote for Cleveland precisely because the candidate endorsed sound money.” [3]
Belmont, Jr.
President Grover Cleveland, Democrat
Riots in Chicago's Haymarket district
Dorothy Whitney Straight
Willard Straight in China, 1908
L. to R., Gen. Patton, McCloy, Stimson
Read review by
Douglas Valentine
President Nixon's Violation of  GATT Treaty
Specifically, the President on August 15 decreed an
immediate 10% across-the-board surcharge on most imported goods and services. This, of course, was a unilateral abrogation of commitments incurred by the U.S. in accord with the General Agreement on Tariffs and Trade.

Far more basic was Washington's decision to scuttle the Bretton Woods Agreement, under which the International Monetary System, for more than a generation, had functioned. That pact required this country, in all circumstances, to exchange one ounce of gold for thirty-five American dollars. With a stroke of the pen, the President violated these solemn obligations, thereby welching on our creditors and setting the International Monetary System adrift on a sea of floating exchange rates.

While future historians may disagree, it strikes me as likely that the White House, by including a wage-price freeze as part of the package deal, was seeking to distract public attention from the fact that it was doing the unthinkable, i.e., reneging on solemn obligations. The ploy (if ploy it was) worked like a charm. To this day, few observers realize what a heavy setback, economic and political, this country suffered when it slammed the gold window shut. [emphasis added]
Robert M. Bleiberg
The role of the P2 lodge working within the Nixon adminis-tration can be seen in another article on this website: "Sophists and Other Scoundrels: Scooter Libby's Mentor".