Carroll Quigley’s “Tragedy and Hope”, a Review


Richard Moore

From: "Boudewijn Wegerif" <•••@••.•••>
To: <Undisclosed-Recipient:;>
Subject: WHAT MATTERS-105: 'The Naked Capitalist*, a Review and Commentary 
Date: Thu, 24 Oct 2002 20:07:56 +0200

        From 'The Naked Capitalist', a Review and Commentary on
        Carroll Quigley's Book, Tragedy and Hope by W. Cleon

Dear list members,

After 9.11, it has become politically correct, almost,
to talk and write about there being 'a conspiracy' by a
power elite to set up a 'New World Order', in which our
feeble attempts at democracy will be null and voided
for something sinisterly mind controlled for perpetual
war, as in George Orwell's 1984. (In my E-letters, I
have been referring to the NWO power elite as
plutocrats and as 'the money masters', after the
excellent video The Money Masters - see PS.)

W. Cleon Skousen, who has been variously a professor of
ancient scripture, an FBI agent and a police chief, and
who is now a popular writer and speaker on the
rightwing circuit, has lent respectability to the word
'conspiracy' with his book 'The Naked Capitalist, A
Review and Commentary on Carroll Quigley's Book,
Tragedy and Hope'.

I have the material for this E-letter thanks to my
being on the ultra rightwing, patriot E-list of
Charleston Voice - •••@••.•••. (And if you are
prejudiced against the right wing, please bear in mind,
I am also on leftwing lists. Between the two wings, I
get a more balanced bird's eye view of things.)

Dr. Carroll Quigley is a professor of history at the
Foreign Service School of Georgetown University. He
formerly taught at Princeton and Harvard. The last
democratically elected president, Bill Clinton, has
credited Quigley with helping to form his political
outlook. In the 1,300-page Tragedy and Hope Quigley
deliberately exposes the machinations of the money
masters to gain total global control. What makes the
book remarkable is that he writes as an 'insider' who,
by and large, warmly supports the goals and purposes of
the 'network'.

Below are excerpts from The Naked Capitalist, including
excerpts from Tragedy and Hope, and an added comment by
Charleston Voice, I suspect. The w hole tells the story
of how the money masters have shaped vast, secret
pockets of power, through a network of banks, to
control the economies, and governments, of the world.
The sub-headings have been inserted by Skousen.

In his commentary, Cleon Skousen asks why Quigley would
want to expose the money masters? "Obviously," writes
Skousen, "disclosing the existence of a mammoth power
network which is trying to take over the world could
not help but arouse the vigorous resistance of the
millions of people who are its intended victims. So why
did Dr. Quigley write this hook?"

The answer, according to Skousen, is that Quigley wants
to show that "it is now too late for the little people
to turn back the tide. In a spirit of kindness Quigley
is therefore urging them not to fight the noose which
is already around their necks. He feels certain that
those who do will only choke themselves to death. On
the other hand, those who go along with the immense
pressure which is beginning to be felt by all humanity
will eventually find themselves in a man-made
millennium of peace and prosperity. All through his
book. Dr. Quigley assures us that we can trust these
benevolent, well-meaning men who are secretly operating
behind the scenes. THEY are the HOPE of the world. All
who resist them represent TRAGEDY. Hence, the title for
his book.

"Anyone reading Dr. Quigley's Tragedy and Hope will
have little difficulty detecting the tremendous
self-esteem of the author. He considers himself not
only an 'insider' but a member of the intellectual
elite among the insiders. He feels that the forces of
total global control are now sufficiently entrenched so
that they can reveal their true identity without fear
of being successfully overturned. He expresses the
utmost contempt for members of the American middle
class who think they can preserve what he calls their
'petty-bourgeois' property rights and constitutional

Skousen is sharply critical of Carroll Quigley's
arrogant assumptions, but acknowledges that Quigley
takes issue with the money masters' desire to keep
their conspiratorial subversion a secret. He thinks it
is time people knew who was running things.

"The real value of Tragedy and Hope," writes Skousen,
"is not so much as a 'history of the world in our time'
(as its subtitle suggests) but rather as a bold and
boastful admission by Dr. Quigley that there actually
exists a relatively small but powerful group which has
succeeded in acquiring a choke-hold on the affairs of
practically the entire human race."

He adds, "Of course, we should he quick to recognize
that no small group could wield such gigantic power
unless millions of people in all walks of life were 'in
on the take' and were willing to knuckle down to the
iron-clad regimentation of the ruthless bosses behind
the scene." And: "perhaps we should have anticipated
just such a development. [For] anyone familiar with the
writings of John's Apocalypse might have suspected that
modern history would eventually contain the account of
a gigantic complex of political and economic power
which would cover the whole earth.

"John predicted that before the great epic of Messianic
or Millennial peace, the human race would be subjected
to a ruthless, world-wide conglomerate of dictatorial
authority which would attempt to make all men
subservient to it or be killed (Revelations 13: 1 5).
He said it would compel all men, "both small and great,
rich and poor, free and bond," to be identified with it
(Rev. 13: 16). John also referred to its economic grip
on humanity and said that unless a person were
identified with its monopoly network,  'no man might
buy or sell' (13: 17).

"Dr. Quigley assures us that this type of global power
structure is on the verge of becoming a total reality.
He points out that during the past two centuries, when
the peoples of the world were gradually winning their
political freedom from the dynastic monarchies, the
major banking families of Europe and America were
actually reversing the trend by setting up new
dynasties of political control through the formation
of' international financial combines.

"Dr. Quigley points out that these banking dynasties
had learned that all governments must have sources of
revenue from which to borrow in times of' emergency.
They had also learned that by providing such funds from
their own private resources, they could make both kings
and democratic leaders tremendously subservient to
their will. It had proven to be a most effective means
of controlling political appointments and deciding
political issues."

I hope that you get as much conspiratorial edification
from what follows as I did. There is a lot of familiar
material here, out of the history of money, concisely
digested into a good overview of how the money masters
have taken control of the now thoroughly interlocked
world economies, through the Bank of England and the
Federal Reserve Bank principally.

In friendship,

Boudewijn Wegerif
What Matters Programme
Folkhogskola Vardingeby **

PS - For information on The Money Masters, see the web site, .
Excerpts from The Naked Capitalist by W. Cleon Skousen,
including excerpts from Tragedy and Hope by Carroll
Quigley. The sub-headings are by Cleon Skousen.


''In time they [the banker families] brought into their
financial network the provincial banking centers,
organized as commercial banks and savings banks, as
well as insurance companies, to form all of these into
a single financial system on an international scale
which manipulated the quantity and flow of money so
that they were able to influence, if not control,
governments on one side and industries on the other.
The men who did this. . . aspired to establish
dynasties of international bankers and were at least as
successful at this as were many of the dynastic
political rulers." (p. 51)


"The greatest of these dynasties, of course, were the
descendants of Meyer Amschel Rothschild (1743-1812) of
Frankfort, whose male descendants, for at least two
generations, generally married first cousins or even
nieces. Rothschild's five sons, established at branches
in Vienna, London, Naples, and Paris, as well as
Frankfurt, cooperated together in ways which other
international banking dynasties copied but rarely
excelled .

''The names of some of these other banking families are
familiar to all of us and should be more so. They
include Baring, Lazard, Erlanger, Warburg, Schroder,
Selingman, the Speyers, Mirabaud, Mallet Fould, and
above all Rothschild and Morgan. " (pp. 51-52 )


It should be noted in passing that while the
Rothschilds and certain other Jewish families
cooperated together in these ventures, this was by no
means a Jewish monopoly as some have alleged. Neither
was it a "Jewish conspiracy." As we shall see, men of
finance of many nationalities and many religious or
non-religious backgrounds collaborated together to
create the super-structure of economic and political
power which Dr. Quigley is about to disclose. No
student of the global conspiracy should fall for the
Hitlerian doctrine that the root of all evil is a super
"Jewish conspiracy." Nor should they fall for that
long-since-discredited document, The Protocols of the
Learned Elders of Zion, which Hitler palmed off on the
German people as an authentic declaration of policy by
an all-Jewish congress. The spurious origin of this
document was proven decades ago and serves as an object
lesson to those who are inclined to accept an
over-simplified explanation for the rise of the global
power structure which has snared mankind. Some would
answer this by saying that the Anti-Defamation League
(ADL) and certain other Jewish organizations have been
in the forefront of the collectivist movement and also
in the suppression of American voices seeking to warn
the nation. However, this infiltration of the Jewish
community is no more applicable to the Jewish people as
a whole than the scurrilous left-wing activities of the
National and World Councils of Churches is a reflection
on all Protestants or the liberal, irreligious Catholic
left-wing is a reflection on all Catholics. In studying
the global conspiracy it is important to keep in mind
that it was not any particular race or religion but the
"passion for money and power" which has drawn the
tycoons of world finance into a tightly-knit,
mutual-aid society. Dr. Quigley identifies this group
as the 'International Bankers'.


" ... they remained different from ordinary bankers in
distinctive ways: (1) they were cosmopolitan and
international; (2) they were close to governments and
were particularly concerned with questions of
government debts . . . (3) their interests were almost
exclusively in bonds and very rarely in goods.. . (4)
they were, accordingly, fanatical devotees of deflation
. . . (5) they were almost equally devoted to secrecy
and the secret use of financial influence in political
life. These bankers came to be called 'international
bankers' and, more particularly, were known as
'merchant bankers' in England, 'private bankers' in
France, and 'investment bankers' in the United States.
In all countries they carried on various kinds of
banking and exchange activities, but everywhere they
were sharply distinguishable from other more obvious,
kinds of banks, such as savings banks or commercial
banks." (p.52)


"One of their less obvious characteristics was that
they remained as private unincorporated firms, usually
partnerships, until relatively recently, offering no
shares, no reports, and usually no advertising to the
public. This risky status, which deprived them of
limited liability, was retained, in most cases, until
modern inheritance taxes made it essential to surround
such family wealth with the immortality of corporate
status for tax avoidance purposes. This persistence as
private firms continued because it ensured the maximum
of anonymity and secrecy to persons of tremendous
public power who dreaded public knowledge of their
activities as an evil almost as great as inflation. As
a consequence, ordinary people had no way of knowing
the wealth or areas of operation of such firms, and
often were somewhat hazy as to their membership. Thus,
people of' considerable political knowledge might not
associate the names of' Walter Burns, Clinton Dawkins,
Edward Grenfell, Willard Straight, Thomas Lamont,
Dwight Morrow, Nelson Perkins, Russell Leffingwell,
Elihu Root, John W. Davis, John Foster Dulles, and S.
Parker Gilbert with the name "Morgan," yet all these
and many others were parts of the system of influence
which centered on the J. P. Morgan office at 23 Wall
Street. This firm, like others of the international
banking fraternity, constantly operated through
corporations and governments." (pp. 52-5 3)


"The influence of financial capitalism and of the
international bankers who created it was exercised both
on business and on governments, but could have done
neither if it had not been able to persuade both of
these to accept two "axioms" of its own ideology. Both
of these were based on the assumption that politicians
were too weak and too subject to temporary popular
pressures to be trusted with control of the money
system. ... To do this it was necessary to conceal or
even to mislead, both governments and people about the
nature of money and its methods of operation." (p. 53)


"Credit has been known to the Italians and
Netherlanders long before it became one of the
instruments of English world supremacy. Nevertheless,
the founding of the Bank of England by William Paterson
and his friends in 1694 is one of the great dates in
world history. For generations men had sought to avoid
the one draw-back of gold, its heaviness, by using
pieces of paper to represent specific pieces of gold.
Today we call such pieces of paper gold certificates.
Such a certificate entitles its bearer to exchange it
for its piece of gold on demand, but in view of the
convenience of paper, only a small fraction of
certificate holders ever did make such demands. It
early became clear that gold need be held on hand ONLY
to the amount needed to cover the FRACTION of
certificates likely to be presented for payment:
accordingly, the rest of the gold could he used for
business purposes, or, what amounts to the same thing,
a volume of certificates could be issued GREATER than
the volume of gold reserved for payment ... Such an
excess volume of paper claims against reserves we now
call bank notes.

"In effect, this creation of paper claims greater than
the reserves available means that bankers were creating
money out of nothing. The same thing could be done in
another way . . . Deposit bankers discovered that
orders and checks drawn against DEPOSITS by depositors
and given to a third person were often not cashed by
the latter but were deposited to their own accounts.
Thus there were no actual movements of funds, and
payments were made simply by bookkeeping transactions
on the accounts. Accordingly, it was necessary for the
banker to keep on hand in actual money (gold,
certificates, and notes) no more than the FRACTION of
deposits likely to be drawn upon and cashed: the rest
could be used for loans, and if these loans were made
by creating a deposit account for the borrower, who in
turn would draw checks upon it rather than withdraw it
in money, such 'created deposits ' or loans could also
be covered adequately by retaining reserves to only a
FRACTION of their value. Such created deposits also
were a creation of money out of nothing, although
bankers usually refused to express their actions,
either note issuing or deposit lending, in these terms.
William Paterson, however, on obtaining the charter of
the Bank of England in 1694, to use the moneys he had
won in privateering, said, "The bank hath benefit of
interest on all moneys which it creates out of
nothing.'" (pp. 48-49, emphasis added)


"In government the power of the Bank of England was a
considerable restriction on political action as early
as 1819 but an effort to break this power by a
modification of the bank's charter in 1844 failed. In
1852, Gladstone, then Chancellor of the Exchequer and
later prime minister, declared, 'The hinge of the whole
situation was this: the government itself was not to be
a substantive power in matters of Finance, but was to
leave the Money Power supreme and unquestioned.'

"This power of the Bank of England and of its governor
was admitted by most qualified observers. In January,
1924, Reginald McKenna, who had been Chancellor of the
Exchequer in 1915-1916, as chairman of the board of the
Midland Bank told its stock-holders: '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 hands THE DESTINY OF THE PEOPLE. ' In that same
year, Sir Drummond Fraser, vice-president of the
Institute of Bankers, stated, 'The Governor of the Bank
of England must be the autocrat who dictates the terms
upon which alone the Government can obtain borrowed
money." (p. 325, emphasis added)


"Although this situation is changing slowly, the inner
circle of English financial life remains a matter of
'whom one knows,' rather than ~what one knows.' Jobs
are still obtained by family, marriage, or school
connections; character is considered far more important
than knowledge or skill: and important positions, on
this basis, are given to men who have no training,
experience, or knowledge to qualify them.

"As part of this system and at the core of English
financial life have been seventeen private firms of
'merchant bankers' who find money for established and
wealthy enterprises. . . .

These merchant bankers, WITH A TOTAL OF LESS THAN A
HUNDRED ACTIVE PARTNERS, include the firms of Baring
Brothers, N. M. Rothschild, J. Henry Schroder, Morgan
Grenfell, Hambros, and Lazard Brothers. These merchant
hankers in the period of financial capitalism had a
dominant position with the Bank of England and,
government in 1946. As late as 1961 a Baring (Lord
Cromer) was named governor of the bank, and his board
of directors, called the 'Court' of the bank, included
representatives of Lazard. of Hambros, and of Morgan
Grenfell, as well as an industrial firm (English
Electric) controlled by these." (pp. 499-500, emphasis


"This period, 1884-1933, was the period of financial
capitalism in which investment hankers moving into
commercial banking and insurance on one side and into
railroading and heavy industry on the other were able
to mobilize enormous wealth and wield enormous
economic, political and social power. Popularly known
as 'Society,' or the '400' they lived a life of
dazzling splendor. Sailing the ocean in peat private
yachts or traveling on land by private trains, they
moved in a ceremonious round between their spectacular
estates and town houses in Palm Beach, Long Island, the
Berkshires, Newport. and Bar Harbor, assembling from
their fortress-like New York residences to attend the
Metropolitan Opera under the critical eye of Mrs.
Astor; or gathering for business meetings of the
highest strategic level in the awesome presence of J.
P. Morgan himself.

"The structure of financial controls created by the
tycoons of 'Big Banking' and 'Big Business' in the
period 1880-1933 was of extraordinary complexity, one
business fief being built on another, both being allied
with semi-independent associates, the whole rearing
upward into two pinnacles of economic and financial
power, of which one, centered in New York, was headed
by J. P. Morgan and Company, and the other, in Ohio,
was headed by the Rockefeller family. When these two
cooperated, as they generally did, they could influence
the economic life of the country to a large degree and
could almost control its political life, at least on
the Federal level." (pp.71-72)


"In the United States the number of billion-dollar
corporations rose from one in 1909 (United States
Steel, controlled by Morgan) to fifteen in 1930. The
share of all corporation assets held by the 200 largest
corporations rose from 32 percent in 1909 to 49 percent
in 1930 and reached 57 percent in 1939. By 1930 these
200 largest corporations held 49.2 percent of the
assets of all 40,000 corporations in the country ($81
billion out of $165 billion). . . . In fact, in 1930,
one corporation (American Telephone and Telegraph.
controlled by Morgan) had greater assets than the total
wealth in twenty-one states of the Union.

"The influence of these business leaders was so great
that the Morgan and Rockefeller groups acting together,
or even Morgan acting alone, could have wrecked the
economic system of the country. . . (p. 72)


By the beginning of the Twentieth Century, the American
economy had become so dynamic that the major banking
dynasties found it increasingly difficult to maintain a
tight control. Even the control they had SO carefully
kept secret was being challenged as a major political
issue in national elections.

As we have previously noted, the dynastic "banker
families" in England had established their monopoly
control over finance by setting up the Bank of England
as a privately controlled institution which had the
appearance of an official government institution.
Similar centers of financial control had been set up in
France, Germany, Italy and Switzerland. Many of these
European banking families had intermarried or bought
their way into the American banking dynasties so it was
inevitable that eventually the same device for
centralized control would be set up in the United
States as that which had worked so well in various
European countries.

The formula called for a scheme which would look like
the government was taking over when in reality, the
control would be solidified in the same secret group
which had always held it. As Dr. Gabriel Kolko pointed
out: "Ironically, contrary to the consensus of
historians, it was not the existence of monopoly that
caused the federal government to intervene in the
economy, but the lack of it. . . . In the long run, key
business leaders realized they had no vested interest
in a chaotic uncontrolled industry and economy in which
not only their profits hut their very existence might
be challenged." (The Triumph of Conservatism,
Quadrangle Books, Chicago, 1967, p. 4-6)


Dr. Quigley has identified them in Tragedy and Hope,
and Serano S. Pratt supports the Quigley position, in
his book entitled, The Work of Wall Street:

"When we speak in Wall Street of the 'private bankers,'
we refer to a handful of great banking houses whose
operations are on an international scale and which in
the United States represent the same power that the
Rothschilds have so long possessed in Europe. These
houses may, like J. P. Morgan & Co., and Brown Bros. &
Co., be closely allied by partnership ties to other
powerful firms in other cities: and represent here the
great firms and institutions of Europe,just as August
Belmont & Co. have long represented the Rothschilds."
(Appleton & Company, New York, 1916, p.340)

By the turn of the century, the Rockefellers had also
joined the dynastic banking families. John D.
Rockefeller had purchased the Chase Bank and his
brother William bought the National City Bank of New
York. The Rockefeller Chase Bank was later merged with
the Warburg's Manhattan Bank to form Chase-Manhattan,
the most powerful financial combine in the world today.

The scheme to set up a privately-controlled Federal
Reserve System was supported by all of these dynastic
banking families.


To appreciate some of Dr. Quigley's comments in Tragedy
and Hope we should summarize the origin and history of
the Federal Reserve System.

Stephen Birmingham (in his book, Our Crowd. Dell
Publishing Co.. New York, 1967, p. 400) says the person
who played the most significant part in getting the
Federal Reserve adopted was Paul Warburg. He had come
to the United States with his brother, Felix Warburg,
from Germany in 1902. They left their brother Max in
Frankfurt to run the family bank. In due time Paul
married Nina Loeb of Kuhn, Loeb and Company, while
Felix married Jacob Schiff's daughter, Frieda Schiff.
Both brothers became Kuhn-Loeb partners and Paul was
awarded a yearly salary of $500,000 to go up and down
the country preparing the climate for a central banking
system in the United States.

Working with Warburg was J. P. Morgan's leading
Washington representative, Senator Nelson Aldrich whose
daughter Abby was married to John D. Rockefeller, Jr.
(Nelson Rockefeller, governor of New York, is named
after his maternal grandfather.) Senator Aldrich and
Paul Warburg set up an extremely secretive meeting with
representatives of the leading banking dynasties to
prepare the first draft for the Federal Reserve System.
They met on Jekyl Island, Georgia. Rockefeller's agent,
Frank Vanderlip admitted many years later:

"Despite my views about the value to society of greater
publicity [or the affairs of corporations, there was an
occasion, near the close of 1910, when I was as
secretive- indeed as furtive- as any conspirator.

I do not feel it is any exaggeration to speak of our
secret expedition to Jekyl Island as the occasion of
the actual conception of what eventually became the
Federal Reserve System." (Frank Vanderlip, "Farm Boy to
Financier," Saturday Evening Post, February 9, 1935,
p.25) The secret meeting on Jekyl Island included Henry
P. Davison of J. P. Morgan & Company; Frank A.
Vanderlip. President of the Rockefeller-owned National
City Bank; A. Piatt Andrew, Assistant Secretary of the
Treasury; Benjamin Strong of Morgan's Bankers Trust
Company, and, of course, Paul Warburg.

This was right at the time when the idea of creating a
Federal central bank "free of Wall Street or any
monopolistic interest'' was being promoted by the
Banking Law Journal and a number of national political
personalities. Therefore, the object of the conference
on Jekyl Island was to set up a central bank which had
the appearance of meeting this demand while actually
thwarting it. Paul Warburg went to the conference with
a plan copied after the private central banks in
England and Europe. Professor Kolko writes: "The plan
which emerged from the conference was very much like
Warburg's in principle, and Warburg claimed authorship
for it even though Vanderlip actually drafted the final
plan." (Op. Cit., p. 1 84)

But the plan failed. It was introduced into the Senate
as the Aldrich Bill. The name of Aldrich was so closely
linked to Morgan and Wall Street, and the resentment
against these influences was so strong. that the bill
was readily defeated. The group of master planners
backed away to devise a new tactic.


It was decided that the Republican Party was too
closely connected with Wall Street and the only hope of
getting a central bank adopted would be to get the
Democrats in power and have a new bill introduced which
would be promoted into popular acceptance by claiming
that it was a measure designed to strip Wall Street of
its power. The Wall Street cadre thereupon set forth to
achieve this in the presidential election of 1912.

At first this looked virtually impossible, because
President William Howard Taft (a Republican who had
opposed the Aldrich Bill) was very popular and seemed a
sure-fire bet for re-election. The picture changed when
the former President Teddy Roosevelt (also a Republican
but opposed to Taft) decided to run on the Progressive
Party ticket against Taft. The Democrats then nominated
Woodrow Wilson, making it a three-way race. Suddenly
the central bank promoters saw the opportunity they

Two Morgan agents, Frank Munsey and George Perkins
moved in behind Teddy Roosevelt with money and manpower
from Wall Street. As Ferdinand Lundberg states:

"As soon as Roosevelt signified that he would again
challenge Taft, the President's defeat was inevitable.
Throughout the three-cornered fight Roosevelt had
Munsey and Perkins constantly at his heels, supplying
money, going over his speeches, bringing people from
Wall Street in to help, and, in general, carrying the
entire burden of the campaign against Taft. .

"Perkins and J. P. Morgan and Company were the
substance of the Progressive Party; everything else was
trimming. . . . In short, most of Roosevelt's campaign
fund was supplied by the two Morgan hatchet men who
were seeking Taft's scalp." (America's 60 Families, the
Vanguard Press, New York. 1938, pp. 110-112)

Meanwhile, Wall Street was ALSO backing Wilson. Clear
back in 1906, George Harvey, president of the
Morgan-controlled Harper's Weekly, had suggested Wilson
for President.

Then the Rockefellers took up the fund-raising for
Wilson together with other Wall Street backers of the
Democratic Party. Ferdinand Lundberg says:

"The financial genius behind Woodrow Wilson was
Cleveland H. Dodge of the [Rockefeller] National City
Bank. ... Sitting with Dodge as co-directors of the
National City Bank at the time were the younger
Rockefeller, J. Ogden Armour, and James Stillman. In
short, except for George I. Baker, everyone whom the
Pujo Committee (in Congress) had termed rulers of the
'Money 'Trust ' was in this bank." (Op. Cit., pp.

Additional supporters of Wilson who belonged to the
dynastic banking families included Jacob Schiff,
Bernard Baruch, Henry Morgenthau, Thomas Fortune Ryan,
and the publisher of the New York Times, Adolph Ochs.
(Kolko, Op. Cit., pp. 205 and 211)

Even Morgan's men who managed Teddy Roosevelt's
campaign had money behind Wilson. The idea was to give
Roosevelt enough support to divide Taft's Republican
vote and give Wilson enough support to beat them both.
This strategy worked, and Wilson was elected. Even
before the election, however, the promoters of the
central bank set up a front organization to create a
public climate, which would be favorable to the Federal
Reserve idea. Professor Kolko says: "During the spring
of 1911 the backers of the plan moved to create the
'National Citizens League for the Promotion of a Sound
Banking System' to accomplish the task. Warburg and the
other New York bankers behind the Aldrich plan arranged
to have the league centered in Chicago. . . ." (Op.
Cit.. p. 186)

Because of the Rockefeller influence over the
University of Chicago, this new front organization was
headed by J. Lawrence Laughlin of that institution with
his former student and close confidante, H. Parker
Willis writing the necessary legislation. It was simply
the Aldrich Bill in a new dress.

To see that the newly elected President would have the
right advisors, Wilson's financial backers surrounded
him with their own agents. The most important of these
was "Colonel" Edward Mandell House, the
British-educated son of a financier who represented
certain British financial interests in the Southern
States. House gradually emerged as the virtual
president during the Wilson administration. Two of his
pet projects, the central bank and the graduated income
tax, were both successfully adopted through the amazing
capacity of house to pull wires behind the scenes. It
is now known that House was the author of the book,
Philip Dru: Administrator, which described how Dru
worked to establish "Socialism as dreamed by Karl

Professor Charles Seymour who edited The Intimate
Papers of' (Colonel House, assures us that House was
the "unseen guardian angel" of the Federal Reserve Act.
There was constant contact between House and Paul
Warburg. The biographer for House assures us further
that "The Schiffs, the Warburgs, the Kahns, the
Rockefellers, and the Morgans had faith in House. To
prevent opponents of Wall Street from identifying the
Federal Reserve Act with the international bankers, a
smoke-screen of opposition was fulminated. In his
autobiography, William McAdoo, Wilson's Secretary of
the Treasury and son-in-law, wrote:

"Bankers fought the Federal Reserve legislation-and
every provision of the Federal Reserve Act with the
tireless energy of men fighting a forest fire. They
said it was populistic, socialistic, half-baked,
destructive, infantile, badly conceived and
unworkable." (p.213)

However, McAdoo talked with these heated opponents of
President Wilson's Federal Reserve project and decided
there might be something phoney about the smoke-screen
of opposition. "These interviews with bankers led me to
an interesting conclusion. I perceived gradually,
through all the haze and smoke of controversy, that the
banking world was not really as much opposed to the
bill as it pretended to be. . . ." (p. 225)

Thus the stage was set. It was December 22, 1913, that
the Federal Reserve Act passed the I louse of
Representatives by a vote of 298 to 60 and the Senate
passed it by a majority of 43 to 25.


The operation of the Federal Reserve System is one of
the most interesting and mysterious combines in the
country. Since it was founded in 1913 it has
successfully resisted every attempt to conduct an audit
of its affairs. The system consists of 12 "National
Banks" but the only one of any significance is the one
in New York. The New York bank has always been managed
by someone completely congenial to the interests of the
international bankers. It is important to realize that
the Federal Reserve System is not a bona fide
Government agency.

Technically the stock is owned by the 12 National Banks
which receive a dividend of six percent each year. Any
profits from the System are supposed to be turned over
to the U. S. Treasury. In fact, the President appoints
the seven members of the Federal Reserve Board for
fourteen-year terms, but in spite of all this window
dressing the Federal Reserve Board is completely
independent in its decisions. President Johnson
admitted this when the Federal Reserve defied him
during his administration and when David Kennedy, the
Nixon Secretary of the treasury, was asked about the
credit-tightening policies of the Federal Reserve, he
replied: "It's not my job to approve or disapprove. It
is the action of the Federal Reserve." (U S. News and
World Report, May 5, 1969)

The mammoth and secret operations of the Federal
Reserve are therefore proceeding along the lines which
Dr. Quigley says the international bankers were
determined to achieve. They intended to use the
financial power of Britain and the United States to
force all the major countries to operate "through
central banks free from all political control, with all
questions of international finance to be settled by
agreements by such central banks without interference
from governments." (Quigley, p. 326)

The motivation for such a scheme can be better
appreciated when it is realized that loaning money to
governments can be a very lucrative business,
especially loans to the United States Government. The
U. S. presently owes more money (most of it to the
international banking institutions) than all the money
owed by the rest of the nations in the world combined.
The U. S. national debt is presently 372 billion
dollars. EVERY YEAR American taxpayers are required to
contribute 20 billion dollars to pay the interest on
this indebtedness. It is the third largest item in the
Federal budget. It can be readily seen why those who
are appointed to the key positions in the L'. S.
Federal Reserve System (where loans are negotiated and
interest rates fixed occupy possibly the most
critically influential spot in the entire world. Dr.
Quigley says the true dimensions of the whole scheme
are better appreciated when it is realized that the
far-reaching aim of the dynastic bankers was:

"...nothing less than to create a world system of
financial control in private hands able to dominate the
POLITICAL SYSTEM of each country and the ECONOMY of the
world as a whole. This system was to he controlled in a
feudalist fashion by the central banks of the world
acting in concert, by secret agreements arrived at in
frequent private meetings and conferences. The apex of
the system was to be the Bank for International
Settlements in Basle, Switzerland, a private bank owned
and controlled by the world's central banks which were
themselves private corporations. Each central bank, in
the hands of men like Montague Norman of the Bank of
England, Benjamin Strong of the New York Federal
Reserve Bank, Charles Rist of the Bank of France, and
Hjalmer Schacht of the Reichs bank, sought to dominate
its government by its ability to control Treasury
loans, to manipulate foreign exchanges, to influence
the level of economic activity in the country, and to
influence cooperative politicians by subsequent
economic rewards in the business world." (p. 324,
emphasis added)

That the international bankers have been in complete
control of the U. S. Federal Reserve System from its
inception is readily demonstrated. Dr. Quigley points
out that the first governor of' the Federal Reserve
Bank of New York was Benjamin Strong. who became a
close colleague of Montague Norman of the Bank of'

"Strong owed his career to the favor of the Morgan
Bank, especially of' Henry P. Davison, who made him
secretary of the Bankers Trust Company of New York (in
succession to Thomas W. Lamont) in 1904, used him as
Morgan's agent in the banking rearrangements following
the crash of 1907, and made him vice-president of the
Bankers Trust (still in succession to Lamont) in 1909.
He became governor of the Federal Reserve Bank of' New
York as the joint nominee of Morgan and of Kuhn, Loeb
and Company in 1914. Two years later, Strong met Norman
for the first time, and they at once made an agreement
to work in cooperation for the financial practices they
both revered." (p. 326)

The original Federal Reserve Board was largely
hand-picked by "Colonel" House and included Paul
Warburg. Subsequent appointments have always been
completely congenial to the interests of Wall Street
and the international bankers. Ferdinand Lundberg
confirms Quigley's evaluations:

"In practice the Federal Reserve Bank of New York
became the fountainhead of the system of twelve
regional banks, for New York was the money market of
the nation. The other eleven banks were so many
expensive mausoleums erected to salve the local pride
and quell the Jacksonian fears of the Hinterland.
Benjamin Strong . . . president of the Bankers Trust
Company [Morgan], was selected as the first Governor of
the New York Reserve Bank. An adept in high finance,
Strong for many years manipulated the country's
monetary system at the discretion of directors
representing the leading New York banks. Under Strong
the Reserve System. unsuspected by the nation, was
brought into interlocking relations with the Bank of
England and the Bank of France. . . ." (Op. Cit., p. 1

So now we have run full circle. Dr. Carroll Quigley was
anxious to have us know who has been running the world.
He makes it clear that in spite of' their power, these
secret centers of control are seldom in dictatorial
positions where they can actually take direct, decisive
political action; but their financial stranglehold on
the world allows them to INFLUENCE and MANIPULATE the
affairs of various nations to an amazing degree and to
suit their own purposes. Therefore, whatever the
purposes and goals of this group happen to be, they are
of monumental importance to the rest of the world.


Having established how powerful the money-managers of
the world have now become, Dr. Quigley's second purpose
appears to have been his desire to let us know what the
political philosophy of these world giants has turned
out to be. This is undoubtedly the most shocking aspect
of his book. It is all the more disturbing because the
facts in this part of his book fit perfectly with the
world of reality in which we find ourselves. Many
things which have seemed inconsistent and incongruous
suddenly loom up with startling clarity as Dr. Quigley
provides an insider's analysis of what has been

In the beginning of this presentation I pointed out,
some of the disturbing questions which are likely to
occur to anyone who has been trying to understand the
significance of the amazing trends of current history.
There is a growing volume of evidence that the highest
centers of political and economic power have been
forcing the entire human race toward a global,
socialist, dictatorial-oriented society. And what has
been most baffling about it has been the fact that this
drift toward dictatorship with its inevitable
obliteration of a thousand years of struggle toward
human freedom, is being plotted, promoted and
implemented by the leaders of free nations and the
super-rich of those nations whose positions of
affluence would seem to make them the foremost
beneficiaries of the free-enterprise.
property-oriented, open society in which so much
progress has been made. Certainly they, above all men,
should know that in order for this system to survive,
freedom of action and the integrity of property rights
must be preserved. Then why are the super-capitalists
trying to destroy them?

Dr. Quigley provides an answer to this question but it
is so startling that at first it seems virtually
inconceivable. It becomes rational only as his
scattered references to it are collected and digested
point by point. In a nutshell, Dr. Quigley has
undertaken to expose what every insider like himself
has known all along -that the world hierarchy of the
dynastic super-rich is out to take over the entire
planet, doing it with Socialistic legislation where
possible, but having no reluctance to use Communist
revolution where necessary.

- - - Dr. Quigley is sometimes reluctant to admit the
full ramifications of his ugly thesis when the shocking
and often revolting implications of it spill out on the
blood-stained pages of recent history. This is why we
find him proving his thesis up to a point and then
frantically endeavoring to cover up the consequences of
it by denying the validity of what Congressional
Committees have exposed through their investigations.
This black thread of strange contradiction runs through
several important sections of Dr. Quigley's book, but
should offer no difficulty to the reader once he
understands what is happening.

(ends excerpts from The Naked Capitalist, by W. Cleon Skousen)
This E-letter will shortly be posted at

** The What Matters Programme is an initiative by
Boudewijn Wegerif, to spread information about what is
happening in the world today, and how things could be,
given a schooling at all levels to free the self and
the world from debt/guilt oppression and money madness
- a schooling for Satyagraha, truth and love force. The
trustees of the What Matters Programme are the
collegiate of Folkhögskola Vårdinge By, an adult
education residential college south of Stockholm.

You can read WHAT MATTERS E-letters 1-103 at the WHAT
MATTERS web site -

To subscribe or unsubscribe to the WHAT MATTERS E-letters: or write direct to me at

cyberjournal home page:

"Zen of Global Transformation" home page:

QuayLargo discussion forum:

cj list archives:'cj'

newslog list archives:'newslog'

cj_open list archives:'cj_open'

subscribe addresses for cj list:

subscribe addresses for cj_open list: