103 Years Later, Wall Street Turned Out Just As One Man Predicted

Tyler Durden's picture

In 1910, three years before the US Federal Reserve was founded, Senator Nelson Aldrich, Frank Vanderlip of National City (Citibank), Henry Davison of Morgan Bank, and Paul Warburg of the Kuhn, Loeb Investment House met secretly at Jekyll Island in Georgia to formulate a plan for a US central bank just years ahead of World War I.

The result of their work was the so-called Aldrich Plan which called for a system of fifteen regional central banks, i.e., National Reserve Associations, whose actions would be coordinated by a national board of commercial bankers. The Reserve Association would make emergency loans to member banks, and would create money to provide an elastic currency that could be exchanged equally for demand deposits, and would act as a fiscal agent for the federal government.

In other words, the Aldrich Plan proposed a "central bank" that would be openly and directly controlled by Wall Street commercial banks on whose behalf it would solely operate, instead of doing so indirectly, behind closed doors and the need for criminal probe of Yellen's Fed seeking to find who leaked what to whom.

The Aldrich Plan was defeated in the House in 1912 but its outline became the model for the bill that eventually was adopted as the Federal Reserve Act of 1913 whose passage not only unleashed the Fed as we know it now, but the entire shape of modern finance.

In 1912, one person who warned against the passage of the Aldrich Plan, was Alfred Owen Crozier: a man who saw how it would all play out, and even wrote a book titled "U.S. Money vs Corporation Currency" (costing 25 cents) explaining and predicting everything that would ultimately happen, even adding some 30 illustrations for those readers who were visual learners. 

The book, which is attached at the end of this post, is a must read, but even those pressed for time are urged to skim the following illustrations all of which were created in 1912, and all of which predicted just what the current financial system would look like.

Or, in the words of Overstock's CEO Patrick Byrne, "that's uncanny"

From "U.S. Money vs Corporation Currency" (which can and should be read for free on Google), here are the selected illustrations:


None of this was rocket science: should the power to create money fall into the hands of a private few, or an entity working purely on their behalf (and lest there is any confusion, a multi-trillion bailout of the US financial system and the ongoing ZIRP/QE regime has benefited almost entirely that handful of people who stood to lose trillions in paper wealth should US banking as we know it end), it would "inaugurate a financial and industrial reign of terror." It was clear as day 103 years ago.


Fast forward 103 years when who should end up with that power? A group of central banking career academics, currently in the midst of a criminal probe what and how much information they leaked to a select group of private Wall Street interests and commercial bankers.

Why? Simple.


The country now knows: "Democracy" forgot.

* * *

Full book below (link for free ebook):

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CHX's picture

Shockingly accurate and visionary.

green sheen's picture

You might expect a blog that takes itself so seriously to spell out how the Fed works and what to do about it. But no. Just take any government protections away so the banks & corporations can rape you harder.

green sheen's picture

Surely Zero Hedge isn't advocating we manage the money as a utility like Andrew Jackson and the Founding Fathers proclaimed. That would be big government central planning right?

Billy the Poet's picture

Surely you're not talking to yourself, right?

macholatte's picture


Cozier called it “White Man’s Burden.

Today it’s called “White Priviledge”.


And don't call me Shirley!

Bra ha ha ha

rccalhoun's picture

the author probably hopped on the ponzi at ground zero.  if so, he was the smartest man.

BoredRoom's picture
BoredRoom (not verified) rccalhoun Jun 7, 2015 6:55 PM


Save_America1st's picture

And another excellent book on the history of these scumbag banksters:


The Creature From Jekyll Island, By G.Edward Griffin

El Oregonian's picture

Aldrich Plan... or is it for the AllRich Plan?

Manthong's picture

Now substitute McConnel/Boehner for Aldrich, Banking Cartel/Transnational Corporations for Banks, and TISA/TPP/TTIP for Aldrich Plan/Federal Reserve Act then  re-publish the book at $24.99

Interesting to note that the inflation of the book price would be the near to the inverse of the Fed policy impact on the FRN since 1913.


PT's picture

I couldn't download free e-book or Scribd link.  Anyone else have this problem?

Manthong's picture

go to the link above the Scribd frame.. the book is a Google scan.. you can download it in a variety of formats.

anybody else notice that he also drew the illustrations?

and that all you can find on the first few pages of Google is his Millerite associations?

Four chan's picture

the evil of the fed manifests itself in several ways the most 
insidious is the brutally punishing way it devalues savings 
through money printing at a rate far exceeding any rate of 
return possible. the fed steals silently. 

the system called federal: 
to enslave a free people to dept, and capture all assets through 
boom and bust, with money printed out of thin air. 

100 years, truly mission accomplished.

cookie nookie's picture

I don't have the cajones to invest.  I'd rather be a bull-fighter.  I bet they get a lot of women.

MonetaryApostate's picture

The fact that nothing has changed in 103 years speak volumes of our failing government who has allowed these british bankers to continue to walk all over the people through extensive financial terrorism & also allowed corporate bribery to pass corporate law, indeed nothing has changed, and still the people with all of their knowledge of the truth do nothing.

Fun Facts's picture

Institute for Historical Review

The Warburgs: The Twentieth-Century Odyssey of a Remarkable Jewish Family, by Ron Chernow. New York: Random House, 1993. Hardcover. 820 pages. Photographs. Bibliography. Reference notes. Index.

In November 1910, [Senator] Aldrich [of Rhode Island], Paul [Warburg], and four other experts sneaked off to discuss bank reform at a secret hideaway on Jekyll Island off the Georgia coast.

With Democrats now in control of Congress and Progressives railing against Wall Street, the bankers had to travel incognito, lest they be accused of hatching a cabal.

As part of the elaborate charade, the conference participants pretended to be sportsmen, outfitting themselves as duck hunters. What Chernow does not adequately explain is why such secrecy was necessary if a central bank was really such a great idea.

We are told, in effect, that Warburg and others hatched a cabal to avoid being accused of hatching a cabal.

Because it was the product of a furtive conclave, and secrecy still surrounds many central bank decision-making activities, it is hardly surprising that there are so many dark suspicions and “banking conspiracy” theories involving the Federal Reserve Bank.

According to Chernow, Paul Warburg was the only person in America who understood how a central bank works. In 1912 and 1913, he drew up the basic plan for the Federal Reserve banking system, and he drafted the Federal Reserve Act. In December 1913 President Wilson signed the Act establishing the new central bank.

If anyone can be called the father of the Federal Reserve Bank, the New York Times has rightly noted, it is Paul Warburg.

The new central bank’s board of governors — which for several years included Paul Warburg — became top-heavy with political appointees whose policy of loose credit set the stage for the Great Depression.

America’s economic collapse of the 1930s can be traced to the Federal Reserve’s operation by incompetents and self-serving hacks.


ThirteenthFloor's picture

A learned read about WW1 and the FRB is Rep. Lindbergh read on "why your country is at war, what happens to you afterward". Although all copies where destroyed by Wilson at the time, you can read a copy here...


Chapter 6, the Wall Street speculator, the politician and the farmer is spot on. And the chapter on emergency currency.

Later years they would kidnap his grandchild to terrorize him.

"It is the Federal Reserve Banks that have been the clearing agency for all the work of “the big financiers.” They have been used as the spur where spur has been required. The Federal Reserve Banks are owned by the member banks, and the millionaires who own the big city banks control the Federal Reserve Banks." 1917 Charles Lindbergh.

Bokkenrijder's picture

Indeed shockingly accurate, but at the same time it unfortunately toally undermines the goldbug's case. Yes, there obviously have been stockmarket crashes and currency shocks, but if this has been going on for 103 years, wouldn't it be better as a simple man to also join the corrupt casino instead of betting against it with gold?

The obvious lesson here is even when, not if, the current fraudulent system collapses, they (the West, China, Russia, anyone) will NOT replace it with a gold standard, but instead come up with a new sort of 1944 Bretton Woods or 1971 Nixon Gold Window style 'solution' to stretch the current system for another 30-50 years.

I have bought quite a bit of gold and silver and as much as I want that to pay off, I fear more and more that a digital/cashless cryptocurrency will be the next totalitarian step in this saga and NOT honest gold backed money.

nmewn's picture

"Indeed shockingly accurate, but at the same time it unfortunately toally undermines the goldbug's case."

1) Yes, accurate. No, actually it doesn't, its a moral/ethical lesson of not climbing into bed with evil/criminals.

"Yes, there obviously have been stockmarket crashes and currency shocks, but if this has been going on for 103 years, wouldn't it be better as a simple man to also join the corrupt casino instead of betting against it with gold?"

2) See number one and not allowing yourself to "feed into it".

"The obvious lesson here is even when, not if, the current fraudulent system collapses, they (the West, China, Russia, anyone) will NOT replace it with a gold standard, but instead come up with a new sort of 1944 Bretton Woods or 1971 Nixon Gold Window style 'solution' to stretch the current system for another 30-50 years."

3) They can extend but they cannot pretend, the debt never goes away unless they renounce it but they can't because the ponzi is completely intertwined with funding goverments war & welfare schemes.

"I have bought quite a bit of gold and silver and as much as I want that to pay off, I fear more and more that a digital/cashless cryptocurrency will be the next totalitarian step in this saga and NOT honest gold backed money."

4) Correct. Which reveals what is really contemplated, complete control. Real money used in private transactions always has the ability to be anonymous, they don't want that.


4a) You're not "buying" gold, you are exchanging currencies, debt fiat for honest currency.


For my Keynesian, monetarist, statist junker(s) ;-)


CognacAndMencken's picture



Your assertion that fiat money is the handiwork of criminals and/or immoral is utterly ridiculous.  in 1775, the Continental Congress issued the Continental currency to fund the Revolutionary War.  And yes, the Continental was a fiat currency.  Without the Continental, the US would not have had the funds necessary to finance the war and win its independence from the British crown.  The freedom that defines this country was ROOTED in FIAT MONEY.  To suggest that fiat money is evil is to imply American independence and freedom was rooted in evil, as well.  

And yes, the Continental eventually hyper-inflated into worthlessness, but only because the anti-counterfeiting measures in the 1700's were primitive, at best.  The British easily counterfeited the Continental and eventually drove its value into the ditch.  But, the fact still remains:  the American Flag and all the freedom it represents was birthed from fiat money.  Is that evil and immoral?  

Rusty_Shackleford's picture

They also used tomahawks, muskets, cannon, bludgeons, bayonets, pitchforks, and their very own hands soaked in blood to win the war.

However, this does not mean that any of the above should have been made a permanent part of the every day interactions in a peaceful Republic.  A good portion of the men who wrote the documents this country is based on were financially destroyed by this fiat money that had "helped them" win the war.

Thomas Jefferson's finances are an illustrative story about the dangers of non-redeemable paper ticket currencies. You may want to check out "Principle & Interest" by Herbert Sloan.

Jefferson's Father-in Law was one of the richest men in the Americas.  When he died, Jefferson was made the executor of his father-in-law's estate.  Meaning he was put in charge of discharging both the assets and liabilities of the estate.  The assets were 30,000 pounds and the liabilities were 20,000 pounds owed to financiers in London.  As is the case today, when someone agrees to be an executor of an estate, they are personally liable if the debts are not discharged with the proceeds from the asset sales.

Jefferson sold all the assets (land/slaves/etc)  however, back in those days there were no "mortgages" and most financing was done as what we would today call, "Seller/Vendor Financing" where a buyer would issue a bond to the seller and the seller would slowly pay it off over time.

Then the Revolution came along. 

Virginia issued it's own paper currency and made it legal tender.  Inevitably, the currency became worthless, but Jefferson was forced by Virginia Law to accept it as payment on the bonds from the asset sales.


He was paid back with worthless pieces of paper.


Unfortunately, the creditors in London would accept only Gold and silver.  He remained in debt until the day he died. 

In fact the reason there exists The Library of Congress is because Jefferson was so in need of money, the Congress agreed to buy his immense library of books to help him out and this is what started The Library of Congress.


There was a reason the Founding Fathers found paper currency to be abhorrent.


It was real to them, and fresh in their minds.


We ignore this at our peril.

PGR88's picture

So you admit it was hyper-inflated into worthlessness?


surprise, surprise

CognacAndMencken's picture



<removed by us:gov1577910784>

nmewn's picture

Pretty sure I said DEBT fiat. As long as there are governments there will be fiat currencies, that is to say, currencies deemed by "the authorities" to be the one true currency to be used in exchange for goods & services.

The issue of course is why any currency needs to be backed by debt at all, it doesn't. Debt automatically encumber's it.

winchester's picture
winchester (not verified) nmewn Jun 8, 2015 2:29 AM

after all examples i given  to explain  that a cashless society is at best in a long futur, cashless mean also electricity.


what humanity  do not realize yet is any long term black out, whatever the cause, will lead to chaos because every structures of our MODERN worldwide society is based on electricity.

if world  take +20% world population within 25 years, you will have to produce at least +10% more electricity, and with the amount of growth of internet size and using, the web structures itself is condamned to be saturated by 2023 ( source : Andrew Lord ) , and will not be able to make another fiber optical cabling because of electrical issue.


morality : cashless is not possible technically because of the over consuming it generates to transform every paper/coin transaction into electrical operation.


Bokkenrijder's picture

"4a) You're not "buying" gold, you are exchanging currencies, debt fiat for honest currency."

But what good is it when you can not exchange this gold back into anything else anymore, in a cashless/digital currency society?

nmewn's picture

There is nowhere on the planet that this is the case.

Just because Keynesian authoritarians have finally spoken out loud of their long term dream world of cashless/digital societies to more easily control them doesn't make it a reality. It just exposes them for who & what they really are.

Digital wheat sounds like a novel idea too until one decides to eat it ;-) 

OLD YELLER's picture

The problem is that no one really knows for sure how all of this will shake out. What will the Eastern nations, not under the dollars' spell do as the USD is inflated into oblivion? Will they continue to be screwed? I think not. International trade may become unstable. If not gold then what? Written trusts of all kinds may become unacceptalble as exchange collatoral. Nations with gold or commodities, oil, copper, plutonium large standing armies etc. may have currencys more acceptable betweeen willing trading partners. Will the dollar die with a bang or a wimper? The dollar is being killed right now. European welfare states are all in serious finacial difficulty. Washingtons' answer to all these problems is war, war, war!

Let me think about that for a moment. Hmmmm..... bug out plan, southern hemisphere where the fall out will be less. Check. Gold coins out of country, check. Personel protection weaponry, check, and so on, it's a long list. Good forrtune to all!


TheGreatRecovery's picture

Then why did you buy gold and silver?

jeff montanye's picture

indeed.  the powerful look strongest just before they fall.

Rusty_Shackleford's picture

"The great oak tree had stood on a hill over the Hudson, in a lonely spot of the Taggart estate.  Eddie Willers, aged seven, liked to come and look at that tree.  It had stood there for hundreds of years, and he thought it would always stand there.  Its roots clutched the hill like a fist with fingers sunk into the soil, and he thought that if a giant were to seize it by the top, he would not be able to uproot it, but would swing the hill and the whole of the earth with it, like a ball at the end of a string.  He felt safe in the oak tree’s presence; it was a thing that nothing could change or threaten; it was his greatest symbol of strength.

One night, lightning struck the oak tree.  Eddie saw it the next morning.  It lay broken in half, and he looked into its trunk as into the mouth of a black tunnel.  The trunk was only an empty shell; its heart had rotted away long ago; there was nothing inside – just a thin gray dust that was being dispersed by the whim of the faintest wind.  The living power had gone, and the shape it left had not be able to stand without it.

“It was an immense betrayal – the more terrible because he could not grasp what it was that had been betrayed.  It was not himself, he knew, nor his trust; it was something else.  He stood there for a while, making no sound, then he walked back to the house.  He never spoke about it to anyone, then or since.” A. Rand


I have always loved this little story.  This idea.



Detroit's industrial ruins are picturesque, like crumbling Rome in an 18th-century etching.

P. J. O'Rourke
MarketAnarchist's picture

To Greensheen.   Without 'government protections' there would be no corporations.  Idiot.

r00t61's picture

Green Sheen, Greenbacker extraordinaire, strikes again.

Ghordius's picture

"Without 'government protections' there would be no corporations. Idiot."

ah, this myth persists. it has zero historical facts, but it still populates the imagination of the anarcho-liberal mythology addict

explain the "syndacalist", freedom-worshipping Buccaneers, then.

"A hundred years before the French Revolution, the buccaneer companies were run on lines in which liberty, equality and fraternity were the rule. In a buccaneer camp, the captain was elected and could be deposed by the votes of the crew. The crew, and not the captain, decided whether to attack a particular ship, or a fleet of ships. Spoils were evenly divided into shares; the captain received an agreed amount for the ship, plus a portion of the share of the prize money, usually five or six shares.

Crews generally had no regular wages, being paid only from their shares of the plunder, a system called "no purchase, no pay" by Modyford or "no prey, no pay" by Exquemelin. There was a strong esprit among buccaneers. This, combined with overwhelming numbers, allowed them to win battles and raids. There was also, for some time, a social insurance system guaranteeing compensation for battle wounds at a worked-out scale."

without state, companies and corporations do exist. and they can look like the buccaneers of old, self-organized pirates with a shares system, a social insurance system and even elections and recalls of the captain/CEO, or have less predatory attitudes.

of course there is the question why anarcho-liberals disown their buccaneer forefathers. too organized? too... embarassing? or just no clue about history in general, and a huge propaganda machine that prefers to use anarcho-liberalism in order to paralyze people in mythical utopias?

hot sauce technician's picture

You fail to grasp the difference between voluntary association and coercion by a centralized authority that claims to have a monopoly on violence. Open your eyes...

Ghordius's picture

yes, tell me the difference between an organized voluntary association of pirates bent to predate, rob and disposses the peaceful colonists and merchants of a Spanish settlement that is under the centralized authority of the Spanish King, who claims to have a monopoly on violence (and using that violence on natives, of course)

who is supposed to open his eyes? no government means buccaneers, pirates and warlords. all voluntary associations, at least in their beginnings

bbq on whitehouse lawn's picture

Buccaneers, pirates and warlords die, with age. Does that company, government or centralized authority die in the span of a human life. I think not. These organisations endure falsely as law. It is your consent that allows for those cut of the same cloth to rule over you, far worse then any warlord or angry pirate.
The ability to steal with the pen is mighier then the sword. But this you knew.

MarketAnarchist's picture

Because pirates using force has nothing to do with voluntary association.   No government does NOT mean bucaneers and pirates and warlords.  Bucaneers and warlords and pirates are identical to governments.


Iceland had no public government and had almost zero violence for 300 years  mises.org/daily/1121

San Francisco only had private police forces for the first half of its existence.  They were called the 'Police Specials' and outperformed government cops easily

Sharpe, Texas didn't renew their police forces contract and hire a private security company and crime is down dramatically, for only 60% of the cost.


FURTHERMORE, the dictionary definition of corporation starts  out: "A group of individuals, created by law or under authority of law,"  so literally, without government there CAN NOT be  corporations. Only private companies.

Ghordius's picture

btw, some context about 1913: Britannia ruled the waves, all the european powers had already national banks, and the gold standard was embedded in a system centered around the global reserve currency of the times, the British Pound

The only two national banks that were of the typology of the Federal Reserve proposed and enacted in the US in 1913 were the Banque of France (though less so) and the Bank of England

All european powers regarded their national banks as integral part of their war capabilities. think like giant "war credit cards". the idea was that if Power A attacks Power B while keeping the gold standard in place, then Power B can beat it by dropping from the gold standard and flush the battlefield with soldiers and weapons paid on credit. this is what happened in WWI, on the monetary plane

The Bank of England was still a private bank, owned by the successors of those British merchants and financiers that reorganized the King's debt into a secondary market, centuries before (it was nationalized after WWII, though)

6'000 families based in or around London were the owners of 50% of the assets of the world. Liberalism was at it's peak, with capital, labour, wares and services flowing freely in the British Sphere of Influence, which was one third of the world (the official British Empire) plus another third of the world (the various "open markets", including China)

It was the time of the First Era of Globalization, and the news of the US setting up a central bank was greeted with a yawn. The Panic of 1907 was seen elsewhere as a small hiccup in a badly organized banking system centered on NY, and of marginal interest, globally

Later the FED was instrumental in the NY's bank's funding of the British effort in WWI. this was the moment the US entered the world stage in earnest, first with finance, then with production of armaments, and then with the first serious foreign deployment of troops. All of which would have been impossible without the FED, at least at those levels

From an european perspective, setting up the FED was a "me, too" move, Uncle Sam's request for a place among the Great Powers in a struggle among empires, with a particular choice for liberal empire, as a contender for the British hegemony, despite the help given to Britain. This after the US had successfully grabbed some parts of the Spanish Empire, chiefly Cuba, Panama, the Philippines and an informal hegemonship over the whole New World

Zip forward, and we have the Pax Americana, the sequel to the Pax Britannica.

Some similarities that might strike the eye:

Arabs? "Under the British Residency of the Persian Gulf, local Arab rulers agreed to a number of treaties that formalised Britain’s protection of the region. Britain imposed an anti-piracy treaty, known as the General Treaty of 1820, on all Arab rulers in the region. By signing the Perpetual Maritime Truce of 1853, Arab rulers gave up their right to wage war at sea in return for British protection against external threats."

Free Trade? "Britain traded goods and capital extensively with countries around the world, adopting a free trade policy after 1840. " (While the US was still protectionist, btw)

China? Sea Power? "The Royal Navy prosecuted the First Opium War (1839–1842) and Second Opium War (1856–1860) against Imperial China. The Royal Navy was superior to any other two navies in the world, combined."

Decline? Continental europeans? "The Pax Britannica was weakened by the breakdown of the continental order which had been established by the Congress of Vienna. Relations between the Great Powers of Europe were strained to breaking point by issues such as the decline of the Ottoman Empire, which led to the Crimean War, and later the emergence of new nation states in the form of Italy and Germany after the Franco-Prussian War. Both of these two wars involved Europe's largest states and armies. The industrialisation of Germany, the Empire of Japan, and the United States of America further contributed to the decline of British industrial supremacy following the late 19th century." (in this context, the Congress of Vienna could be seen as the predecessor of the EU, btw)

The Internet? "By 1902, the British Empire was linked together by a network of telegraph cables, the so-called All Red Line."

Cold War? have a look at The Great Game, if you never heard about that

Cautionary Tale's picture
Cautionary Tale (not verified) Ghordius Jun 8, 2015 6:42 AM

"The only two national banks that were of the typology of the Federal Reserve proposed and enacted in the US in 1913 were the Banque of France (though less so) and the Bank of England"


Both Rothschilds banks. & whereby, the FIRST BANK OF THE UNITED STATES, & THE SECOND BANK OF THE UNITED STATES (both given 20 year charters, the 1st ushered in by Alexander Hamilton & his jewish connections), & the 2nd, after the War of 1812, coincidentally started upon expiry of the charter, started in 1816, and was finally ended by Andrew Jackson ~ whereby there were 2 attempts on his life.


Soon thereafter, the civil war broke out (urged on some may say). As they say, to the victor go the spoils. The 'spoils' in this case were 'carpetbaggers' picking through the ruins of a gutted Southern production bonanza. Lincoln, for his part, got shot in the head because he snubbed the moneylenders and used greenbacks' as currency.


1913 & beyond is almost an afterthought to over 100 years of attempts to get central banking, in America, into the hands of Rothschilds & his minions (of which Warburg was one).

Ghordius's picture

Both Rothschilds banks, yes. But again, one more then the other, and with a different history, afterwards

btw, on continental europe, we had competition, in finance. From Medicis to Fuggers to Lombards (as in Lombard Loans) to monks to even the biggest bank of the time, the Knights Templar

Cynicles's picture

There's Nothing To See Here.
Keep'r Movin'.

SMG's picture

SO.... It's either going to be a global slave state brought to you by the people who gave us the Federal Reserve Association, OR all of us who oppose this get organized and do something about it.

Billy the Poet's picture

At the moment of crisis use what you know about liberty and economy to rebuild in a way that makes it difficult for the parasites to reattach themselves.

NidStyles's picture

I hear dueling worked for Jackson.


There is also shunning and the other forms of capital punishment. The people responsible for this mess are quite depraved. That is why they push this anti-shaming nonsense. 

WOAR's picture

"To build a city at the bottom of the sea - insanity. But where else could we be free of the clutching hand of the parasites? Where else could we build an economy that they would not try to control, a society that they would not try to destroy? It was not impossible to build Rapture at the bottom of the sea...it was impossible to build it anywhere else."

-Andrew Ryan, Bioshock

Normalcy Bias's picture

It's those damned greedy Baptists! Am I right?

Arnold's picture

 Dig up Andrew Jackson, stat.