Return to Central Banking:

• Early 1900s saw renewed efforts by influential bankers, like J.P. Morgan, to establish a private central bank in the U.S.

The Panic of 1907:

• Morgan is accused of engineering the 1907 stock market crash, causing widespread bank failures to create public demand for banking reform.
• He offered financial support to stabilize failing banks, further consolidating banking power.

Morgan’s Role:

• Known for financing monopolies in oil, steel, and railroads, Morgan is suspected of acting on behalf of Rothschild interests.
• Publicly seen as a hero for his role in the crisis, despite accusations of manipulation.

Impact of the Panic:

• The 1907 panic fueled calls for a central bank to prevent future economic crises.
• Critics, like Congressman Charles Lindbergh Sr., argued this was a deliberate tactic by bankers to frighten the public and push for centralization.

Historical Patterns:

• The chapter frames the panic as part of a broader strategy since the National Bank Act of 1863, using economic instability to justify centralized financial control.

Outcome:

• The groundwork was laid for the establishment of the Federal Reserve in 1913, concentrating financial power among a few elite bankers.

This chapter underscores the intentional manipulation of economic events to consolidate control over the U.S. financial system.

Video and summary at: “21. Jekyll Island”
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