Politics and the Power Elite

0:00And shortly after that, Hughes designs and Secretary of State is Frank Kellogg, who no one continues as Secretary of Treasury, of course. He wasn't as well known as Hughes, but Kellogg was a lawyer from St. Paul, Minnesota. He was General Counsel for U.S. Steel, which of course was a top Morgan company. He was also a lawyer for James J. Hill's various railroad investments. Remember, Hill started from Minnesota, and the Great Northern Hill was allied with Morgan, closely allied with Morgan at this point. So he was a Morgan lawyer, also a lawyer for Hill personally. As undersecretary of state, so Kellogg is definitely a Morgan person.

0:48Under Secretary of State, he wanted to get Morrow, the Morrow-Morgan partner, actually Morrow wound up heading up the Latin American desk, at least unofficially, he was really sort of heading up Latin American foreign policy over in the 20s. The moral was a Morgan partner. He couldn't moral refuse, and he finally got Joseph C. Grew, who was a career diplomat on the Secretary of State, who later became ambassador to Japan under Roosevelt. Joseph C. Grew was a career diplomat. His cousin married the son of J. P. Morgan. Also a good thing to do if your cousin marries the son of J. P. Morgan, I'll and again, definitely a Morgan person, and during the Coolidge administration, as I say, Dwight Mawr became more or less virtually head of the Latin American desk in the relationship with Nicaragua and so forth, and another Morgan person became Morgan attorney, Mawr became head of another part of the Latin American desk.

1:51So, and indeed when Roosevelt went to war in Japan, Joseph C. Grue was the ambassador to Japan. He was the only person in the State Department to be against the war in Japan in favor of negotiated peace. Because of that, we'll contend in a minute, Grue was a, the Morgans were not in favor of war in Asia. They didn't have any investments in Asia. They didn't care about it. They were in favor of peace in Asia. At any rate, the 1924 campaign, as I think I mentioned, I'll just sum up again, when Coolidge ran for re-election in 24, the Democrats, there was a big fight for the Democratic nomination between William G. McAdoo, the guy who had been Wilson's Secretary of Treasury, and Morgan Perkins, Morgan loved McAdoo, he was a Morgan candidate, and the Ku Klux Klan candidate, he was then, and moved to California, he was backed by the Ku Klux Klan, and the pietists.

2:39Prohibition came in with World War I on the cover of the war effort to save our soldiers from the sin of alcohol. In the hysteria of that, they passed a prohibition amendment. The prohibition was not only illegal by federal law, but also unconstitutional. All liquor of any sort, even wine, was unconstitutional. They'd have it, possess it, sell it, or whatever. So even though it came in on the Democrats, the Republicans were all for it, being pious anyway, the Southern Democrats were all for it, being pious by now, and the only opponents were Northern Catholics and Irish Catholics and whatever. So in the 1924 convention, Democratic convention, McAdoo represented the Prohibitionist forces and the Ku Klux Klan, which was very strong in the 1920s everywhere, not just in the South, running on an anti-Catholic ticket, and an anti-Catholic was sinful because they drank and Al Smith, an Irish Catholic, running for governor in New York, running for the presidential nomination as a northern Catholic candidate, so to speak, anti-prohibition, and it was an hysterical convention, it went to 104 ballots, and it was in New York, it lasted for a week, no air conditioning, and total hysteria takes over, and the Southern Pliotists and the

4:01and the Irish Catholic in New York, virtually at sword's point, and finally as a compromise candidate, since neither could get two-thirds, in those days Democrats, to win the Democratic nomination had to have two-thirds votes, they pick a compromise candidate, John W. Davis, from the corporate law firm of Davis Polk and Wardwell, a major Morgan law firm in the country. In other words, John W. Davis was the chief partner of the pop Morgan law firm as a compromise candidate between Morgan's McAdoo and Smith. So he had a 1925 These four are the lovely prospects in the Morgan point of view of both candidates being Morgan people, Coolidge a Morgan person, Davis a Morgan person, tight Morgan people, they couldn't lose whoever won. They don't often have that, it's a lovely situation for them at least. Attorney General under Coolidge was Harlan Fisk Stone who was the Dean of Columbia Law School and his law partner was a progressive, his law partner was Herbert Satterley was the son-in-law of J.P. Morgan. So again, a Morgan person. We have in other

5:07words under Coolidge we have an entire Morgan cabinet from top to bottom, open Morgan control and Storm of course running for Fed, inflating in the Fed as a Morgan policy there. In 1928 we will get, by the way the assistant secretary, they set up a new assistant secretary Secretary for Air and the War Department, Air and Airplanes not coming in, they have the first Air Secretary, F. Truby Davison was the brother of Henry T. Davison Morgan Partners, we have the Morgan Control of the Airways, Morgan and the others, the Coolidge administration was a total Coolidge administration from top to bottom. When Hoover comes in, so who was Hoover? Hoover himself was a self-made millionaire, he was a mining engineer and He was a great geologist, going all over the world in Asia and Australia, etc., prospecting mining properties and promoting them.

5:59Then he settled in London. People didn't know too much about him. He was then the food czar, of course, in World War I and Wilsonian. So he himself was an independent millionaire. In a sense, he wasn't dominated by people. On the other hand, he was close to the Morgans. When he got into it as president in 1928, he spoke regularly three times a week to Dwight Morrow, Once again, key person, Morgan Partner. Anybody who speaks three times a week to my point tomorrow is definitely in the Morgan ambit. Coolidge was, in other words, Morrow was Coolidge's main guru and whatever, control, if you want to call it that, spy language, and also Hoover checked with him all the time, clear it with Morrow. He was also a good friend, Hoover of Thomas W. Lamont, Morgan Partner. So basically what we have with Hoover is a continuation of the Hoover, of the Morgan administration.

6:50Secretary of State, succeeding Hughes and then Kellogg, Henry Simpson, who was a Morgan person from way back, corporate lawyer, disciple of Ella Hewroot, Morgan person. The Simpsons comes in as Secretary of State. Secretary of Treasury continues to be Mellon. Again, of course, an ally was Morgan. Hoover was not very fond of Mellon personally, and he gets in as Undersecretary of Treasury. He gets in Ogden Mills, who was a Morgan person. His father was a director of New York Central Railroad, Morgan Railroad, and Southern Pacific Morgan Railroad. That's Ogden Mills, Senior. Ogden Mills, Junior, he's the guy who's Under Secretary of Treasury now, under Hoover, Under Secretary.

7:42In other words, succeeding Gilbert, goes on to become Morgan partner, gets his reward in heaven. Mills himself was on the board of Atchison Peak in Santa Fe, which is Morgan Railroad, a New York trust company and another Morgan company. So, now Simpson himself was a, had been, was closely allied with a Morgan lawyer, Secretary of State under Hoover, we have Hoover as a Morgan ambit, we have Simpson as Secretary of State, a Morgan person. Stimson comes in to be Secretary of War under Roosevelt and World War II under Roosevelt and Truman and World War II comes in as part of the Great World War II Alliance and so Stimson is a, was closely connected with a Wall Street investment firm, bond firm, Bondbrite and Company two of Stimson's cousins, Alfred Loomis and Landon Thorn were both directors of Bondbrite and Company, big shot I should say, high officials of Bondbrite, and they were both also directors of Bankers Trust Company, which is a big Morgan company, of course, where Storm comes from.

8:58So the Bondbrite Company is very close to the Morgan interest, really Morgan Run, and Bankers Trust. And we have two cousins of Simpson, closely linked up with the Morgan and Bondbrite Bankers Trust interests. And Simpson himself was a Morgan lawyer. Simpson brought in as his assistant secretary of state. Right this time, there's now assistant as well as undersecretary. He brought in Harvey Bundy, who was a director of AT&T, also in the Morgan ambit. He brings in as his disciple Harvey Bundy, who later fires two famous brothers, McGeorge Bundy, his two sons, McGeorge Bundy, who became more or less foreign policy head under, I think, Lyndon Johnson.

9:46His brother, William Bundy, became editor of Foreign Affairs, the big establishment foreign affairs journal of the Council of Foreign Affairs. In other words, we have a generation, and we had also Atchison, who becomes a disciple of Stimson later. So we, Atchison, Dean Atchison, we have a whole three, four generations of Morgan types running off foreign policy. We had Elihu Root as a disciple of Simpson, and Simpson as a disciple of Atchison and Harvey Bundy, and Harvey Bundy is the son of McGeorge Bundy and William Bundy. In other words, stretching from 1900 or 1902 until the 1960s and 70s, the same gang running American foreign policy and basically the same principles, all Morgan people. McGeorge Bundy is now a Harvard eminent Harvard type.

10:33I don't know if William is on one of the editors for our fairs at any rate, close in there. And Secretary of the Navy was Charles Francis Adams of the Adams family under Hoover, close to the Morgans from way back as a Boston Brahmin, son of Charles Francis Adams, a railroad tycoon, I remember from earlier in the term, and himself whose daughter, Charles Francis Adams Jr.'s So, again, with Hoover continuing Coolidge, we have a more or less straight Morgan administration.

11:15A couple of his friends were in there, didn't seem to be connected with anybody particularly. The president of Stanford was an old chum. Hoover became Secretary of Interior. Hoover Hoover was Stanford's first famous graduate, and so it's always been a Hoover-Stanford connection. In 1929, of course, the Great Depression hit the United States in 1931, the rest of the world, and I can only just state here what the cause of it was, I've already sort of alluded to it. Basically, it was the fact that Great Britain, after World War I, wanted to restore its financial preeminence. decided in order to do that, the whole world had to go back to the gold standard, but it was a different kind of gold standard, it's really going on to another kind, namely a gold standard, a very peculiar kind, which keeps the form of the gold standard without much of the content, in which the United States would remain on the gold standard, with the dollar fixed at 1.20 is the gold ounce, and the British went back to the old town, which essentially used to be $4.87 approximately,

12:24And even though, because of inflation during World War I, the British pound had gone down by about 1920 to about $3.20, in other words, had inflated even more than a dollar, double the money, five dollars more or less, double during the war. All the other countries went way beyond that because they were, largely because they were in the war for four years and the United States was only in the war for a year and a half. So they inflated a lot more, and also gold standard in World War I, and I'll try to go back to a gold standard on which, first of all, on which the British pound was re-evaluated upward to 487. I mean, totally insane way of doing it, and that's that the British, in order to keep its goods competitive, would have had to deflate by whatever this is, 20, 25, 30%.

13:12In other words, contract the supply, because at 487, the British goods are much more expensive in terms of all other products. So in order to make the British goods competitive, they would have had to deflate the domestic price level down to whatever it is, the same proportion of math. It's kind of a nutty thing to do, because they could have gone back to the old standard of 320. We've thrown in the towel and said, okay, we recognize reality, we go back to the gold standard and the devalued pound, but they felt their prestige was at stake and they couldn't afford to do that. Also, some of the bondholders in England were assisting on getting their speculative profits. In other words, you buy a pound at 320, hold on to them, they go up to 487, they're worth a lot more.

13:59So with the combination of economic vested interest of the financial accreditors, the banker, creditor, bondholder types along with the view of the British prestige and reestablishing the financial dominance of London required going back to 487 essentially they did something like that after the Napoleonic wars of 1819 but they only went back by they only had about 10% to go instead of about 30% and also in those days prices could fall, there were no unions, there was no inflationary policy permanent inflationary policy would keep prices up Britain in the 1920s had very strong unions by this time and also the union wage rate structure was held up largely by a vast system of unemployment insurance, the English have put in around World War I which gave almost unlimited benefits at almost worker wage rates. In other words, if you got unemployed, you get huge unemployment insurance, huge payments, which keep them permanently unemployed. In other words, the union wage rate structure way above free market wage rates

15:06so in that kind of an atmosphere the English government, if they wanted to deflate, they started with the idea we have to go back to OSAN at 487 then they would have to do with the deflate, they weren't prepared to do that in fact they wanted to keep inflating, because they liked the idea of cheap credit keep union wage rates high so here they insisted on inflating at a time when their whole position would have required them to deflate very heavily and that kind of, given those assumptions, they bring you a tactical job of trying to work within these two crazy assumptions basically what they try to do is force the other countries to go back to the gold standard at a overvalued, whatever it is, pingo, bullgar, whatever the currencies are England was essentially running Europe after World War I through the League of Nations, which it controlled and the financial committee of the League of Nations, which was staffed by Bank of England

15:56and Bank of England types So they forced these other countries, they twisted their arm to go back, to set up the central bank in each country, and to inflate, and also to overvalue the exchange rate of these countries, so to stimulate British exports and restrict imports into Britain. They couldn't do that with the United States, the United States was much too powerful, they couldn't force us to do anything. So with the United States, which was on a gold, the idea, the other thing they did is they set up a gold exchange standard, set up a gold standard, whereby these other countries were encouraged to pyramid on top of gold and on top of pounds sterling so that whenever they keep their sterling balances and don't cash them in in London, don't cash them in for gold even though London was technically on a gold standard, everybody was encouraged to keep on the pound standard the result was that Britain pyramided pounds on top of gold, kept inflating

16:47In the old days, they would have lost pounds to France and Germany and whatever, Bulgaria, etc. They would have lost gold on them because pounds would have piled up. They would have called upon England for redemption. Now they didn't call upon England for redemption. They kept sterling balances, in other words, pound balances. They pyramid it on top of that. Each of these countries were encouraged to pyramid the Pango, the Bulgar, whatever the names are, on top of pounds. had a very top-heavy inflationary structure during the 20s, the United States was on gold, so the permanent top of dollars on gold, the United States was on gold, it was important then for the British to avoid losing, the British began to lose gold to the United States and France, France refused to go along with this either after the mid-20s, France went back to the gold standard on a not devalued, on a regular flank, so Britain started losing The game of the United States was to try to induce the United States to inflate itself

17:50to keep Britain from losing gold to it. To inflate it parallel with the British, and this is what we did. Benjamin Strong, the head of the Federal Reserve system, the governor of Federal Reserve back in New York, then the president of the Federal Reserve in New York, had a secret deal with Norman, who was the head of the Bank of England, had a strong Norman connection. They would visit each other a lot. They'd go under a few names to the Riviera and to Saratoga, which in those days was a big spa, summer resort. They had secret conferences, the brunt of which was the United States should inflate. The United States should pump money and credit in. So it was to inflate lower interest rates in the United States, inflate prices and keep The British Losing Gold, we did that three times in 1921, 1924, 1927, giving a strong set of coups de whiskies to the stock market to keep it going, keep it bubbling.

18:45Strong and Norman, as strong as we know as a Morgan ambit all of his life, Montague Norman Norman was heavily Morgan-connected and Norman was a, himself grew up, his mother and father were both old-time banking families, his mother was connected with the Brown Brothers family which is now Brown Brothers Harem and the big Wall Street banking firm, he himself worked in New York, Norman, as a youth at the Brown Brothers Institution, so these were all very closely connected. Of course, the Morgans were the fiscal agents of the Bank of England. So we had a strong Morgan connection between strong and Norman. There was a lot of some historians are claiming there was some kind of peculiar psychological bond between strong and Norman.

19:36To have a psychosexual bond, my contention is you don't have to question anything of this because the Morgan tie was enough. It was enough to bind them. Anyway, the result of all this was to keep money inflated, have a phony gold standard, more or less. especially for Europe and the result of a final collapse as the whole thing came toppling down with unsound investments, with calls upon the banks of the United States for redemption, bank failures and all the rest of it. And during the Great Day, and by the way, in 1931 when the banking crisis hit Europe big banks began to fail because old banks are inherently bankrupt. Old banks are fractional reserve banks and really can be doomed at any moment. When they began to fail that time, the British, having pushed everybody off into this wacko system, which overinflated, went off the gold standard very quickly at a very low interest rate.

20:30After telling everybody else, I'll never go back, off the gold standard, please keep your sterling malices in London, suddenly one find eight, they're out of it, they're off it. Thereby precipitating a general European financial crisis which lasted through World War II. So we have a point that everybody is now off the gold standard, all currencies were fluctuating in fiat but also controlled, controlled exchange rates, competitive devaluation to try to push your exports and prevent the other guy's imports, what was known as beggar your neighbor policies, it came to the favor of it, it's a pretty good description of European currency blocks during the 1930s. The United States went off the gold standard in 1933, except for international payments, domestic accounts that went basically off it. So we have a world of currency blocks, tariffs, high tariffs and all the rest of it, economic warfare all during the 30s. Part of the major, one of the major reasons for the war was Germany, between the United States,

21:32England and Germany, was economic and financial. All these countries had devalued, in other In other words, England went off to go down the value of the pound, the United States devalued the dollar from 120th to 135th of the gold amount. Germany couldn't devalue, politically impossible for them to devalue. Germany had a runaway inflation in 1923 as a result of continuing expansion of the money supply, creation of bank money and paper money. And the German public blamed the foreign exchange market. The German public saw that the foreign exchange market was collapsing. Prices of foreign exchange were going down faster than the domestic price. So that, you know, it got to the point where one mark was, took, let's say, 100 million marks to buy a loaf of bread domestically, but it took a billion marks to buy a franc or something like that, or a dollar.

22:26The German public, instead of blaming the bank, the reason why the foreign exchange was going down faster, was getting inflating faster. The domestic was very simple. Namely, the foreign exchange market was speculated, they were looking into the future, they seeded, anticipating further inflation. So they were on the cutting edge of this kind of anticipation. So foreign exchange prices were being made very flexible and very quick and so forth, and foreseeing, anticipating inflation better than domestic producers, domestic consumers. But, unfortunately, the Germans blamed the foreign exchange market for something evil about foreign exchange speculators that caused this inflation. So, therefore, when the Depression hit 1933, 30, 30, 31, 31, 32, 33, it was politically impossible for any German government to devalue the mark.

23:12It was also politically impossible to go back to the gold standard. They didn't even think of those terms. Nobody was on the gold standard anymore. It was considered neanderthal, reactionary and all that. The United States and England began to get hysterical very quickly. This was already in the Bruning administration before Hitler took over. The Bruning administration in 1932, before it began, and also when Hitler took over, began to get totally hysterical about this, about the fact that Germany was opting out of the international monetary system. In other words, opting out of control by international bankers, financiers and all the rest of it. They also claimed Germany was exploiting these countries by engaging in these barter deals. None of this is, all of this is ridiculous. What actually was going on was that Germany was engaging, both Germany and Romania had overvalued currency. Germany had overvalued Mark and Romania had overvalued whatever the Romanian currency is, the Pengo. As a result, Well, it was a complex deal by which the German taxpayer, a consumer, was subsidizing German

24:21exports, manufactured goods, and the Romanians were subsidizing their exports, which were the wheat farmers, each one subsidizing their own exports at the expense of their domestic consumers. So it was an elaborate deal by which both sets of exporters were favored at the expense at any rate, this began a whole series of war-like kind of attacks, and also Secretary

24:58Hull when the war began, when we entered the war in 1941, shortly after that, Secretary Hull said flat out, he said many times, the real cause of World War II is economic, in In other words, trade barriers, financial barriers, currency blocks, and so those countries which had the same currency blocks wound up on the same side of the war. So what happens then in the 1930s, as Hoover launches a new deal, in 1939, when the Depression started, Hoover was the first new dealer, which you read in textbooks. Everything that Franklin D. Roosevelt did, every measure was initiated by Hoover, expanding public work, deficits, cheap credit, keeping wage rates up by government pressure, bailing out the bankrupt, the phased out bankrupt industry through the government lending, Reconstruction Finance Corporation, high tariffs to keep out imports, farm price support, the whole Law and Policy Program, and it begins with Hoover.

26:06Yeah, it's the New Deal. Right. Roosevelt simply expanded. What happened was that the businessmen like Swope and Baruch, et cetera, who wanted, asking for official cartelization system ever since World War I, now put pressure on Hoover and so forth, which was the so-called Float Plan in 1932. And the thing is, Huber was really launching the whole thing. He was one of the pioneers in corporatism. He felt this went too far. He said, no, they have to make a formal system and force all firms in the trade association and force them to keep their agreements. This is too much, too extreme.

26:52He said, by God, that's fascism. It took him a long time to figure that out. Of course, it was. At that point, the big business pipes in the United States, the Chamber of Commerce, told Hoover directly, if you don't support this NRA program, we'll shift our support to Roosevelt, and then he said, I'm sorry, it's a fascism. They did shift his support to Roosevelt, and as soon as Roosevelt came in, he put the Swope Plan in on the form of the National Recovery Administration, NRA. With Roosevelt, we have a group of people who are, the Hyde Park Roosevelt, which were close to the Astors and Harriman, particularly the Astor family. Remember the Western Bay Roosevelt, from which Teddy Roosevelt comes from, was close to the Morgan, the Hyde Park Roosevelt was close to the Astor family.

27:40As a matter of fact, the Roosevelt and Astors were closely related to each other. The Astors were the first wealthy family in the United States virtually. John Jacob Astor became a firm millionaire from the fur trade around 1820, and then invested their money in New York real estate, so that they were probably the oldest living wealthy family. At any rate, Franklin Roosevelt's half-brother, James Roosevelt, married a daughter of the Mrs. William Astor, who was running society here in New York for many years, and Warren Delano, who was Roosevelt's, FDR's grandfather's brother, Franklin Delano, in other words, the grand-uncle from whom Franklin Roosevelt was named, Franklin Delano, had married William Astor's sister.

28:33So we had a very close family connection between the Astors and the Roosevelts. And it also turns out that Vincent Astor, not only a relative of Franklin D. Roosevelt but a close friend, who also happened to be chairman of the board, excuse me, a member of the board of the Chase National Bank, which used to be Morgan. However, in 1930, Rockefeller interest executed a coup d'etat, so to speak. Chase Bank merged with the bank of the Equitable Trust Company, which is Rockefeller, and because of that, the Rockefeller was able to seize control of Chase Bank in 1930, after which became the top Rockefeller bank.

29:19Albert Wiggin had been the chairman of the board of Chase National Bank, who was a Morgan person. As soon as the Rockefellers took over, they deposed Wiggin, about a year later, and they and they put in Richard W. Aldrich, who was the son of Milton Aldrich and of course cousin of John D. Rockefeller Jr. So this symbolizes the shift. Anyway, Vincent Astor was on the board. So what we had during the 30s was we had a Roosevelt-Astor connection and also an Astor-Rockefeller connection and also a Roosevelt-Rockefaller connection. So we have a general alliance between the Rockefellers and Roosevelt and the Astors, and the Harrimans, another very important democratic family who are also close neighbors of the Astors up in, I guess it's Rockland County, it's not Rockland County, it's the county north of Rockland, or just around there.

30:15and so the Harrimans, W. Averell Harriman, son of the original Harriman, E. H. Harriman the extremely important figure has been overlooked by historians and analysts and he was a good friend of Franklin Roosevelt he was probably the most influential financial person and of course the Harrimans and Rockefellers and Kuhn-Loeb have been allied since 1900, 1902 and still were in this period so we had a Harriman and the Rockefeller-Aster connection. Harriman was a head of the Business Advisory Council

30:55which was set up in 1933, as soon as those votes get in. Business Advisory Council of the Department of Commerce to be sort of a major institutional instrument for big business influence in this advisory council. Hiram was also, he was on the Board of Directors of Bank of Manhattan Company, which is CUNLOA, but again we have the famous Hiram and CUNLOA connection, and they ran the Bank of Manhattan many years. The Chase National Bank later in the 50s or 60s became the Chase Manhattan and thereby symbolizing a union between Rockefeller and Kuhn-Lohab interests. Harriman is also a close friend of Percy Rockefeller, the son of William Rockefeller.

31:45In other words, he has a Harriman, Rockefeller, Kuhn-Lohab astral connection. Harriman and Franklin Roosevelt have been close friends since childhood. And Eleanor Roosevelt, the wife of Franklin D. Roosevelt, had been an old friend of Harriman and Harriman's sister for life. So they had a very close interconnection with all these people, financial and relative, relational and personal. Another important group that comes up by the late 1920s, In addition to Kuhn-Loeb, who in the old days originally was about the only important German-Jewish Wall Street investment bankers, coming out in the late 20s are two other very important firms which are also related in many ways to the Kuhn-Loeb people.

32:36Amy Goldman Sachs, the main partner of Goldman Sachs has cooperated with Sidney J. Weinberg and becomes one of the most powerful people for the next 30 years. Weinberg had the idea of setting up the Business Advisory Council. Weinberg, I believe, was Deputy Director of the War Production Board in World War II and also Deputy Director of the War Production Board during the Korean War. He was more or less helping to run the system from the early 30s until through the 50s, at least. He was on the board of directors of that Brazilian top corporation. And also in Ford Motor Company, the old man died after World War II.

33:21His son, Etzel Ford, died shortly thereafter, or even maybe before Henry. Henry IV II, now fairly elderly, took over as the brilliant young chairman of the board of Ford and after that they capitulated the banker interest. Ford always hated Wall Street bankers and they kept the Ford Motor Company. Not only running it personally, but also keeping it free of banker control. Henry IV II didn't have that kind of view and so they sold out of the Wall Street. C4 was originally a private corporation, it was family held. And so Henry IV II went public, realized of course a lot of money for his family, because he was selling shares to the public.

34:08In the process, using Goldman Sachs and Weinberg as their major investment banker to float the sale. The other big German Jewish firm coming up was the Lehman Brothers, one of whose senior partner, Herbert H. Lehman, became governor in New York during the famous New Deal governor in New York in the 1930s. So what you have is a shift of power. You notice one group I haven't mentioned in this last 5-10 minutes, And that's mainly the Morgans. Where are the Morgans in all this? Well, the Morgans are sort of out, and as a matter of fact, when it looked like Roosevelt was going to be nominated by the Democratic Party in 1932, the Morgans organized a last-minute stop Roosevelt movement on behalf of Newton D. Baker, who was the Secretary of War under Wilson, to try to stop it. They didn't trust Roosevelt. Obviously, Roosevelt was allied with the Rockefeller-Harriman people, not with the Morgans.

35:15The people who organized this thing at the convention were Morgan people, Owen Young, Chairman of General Electric and Morgan Company, Melvin Traylor, President of the First National Bank of Chicago and Morgan Bank, and also General Electric, Thomas W. Lamont, Morgan Partner, all these guys were desperately trying to stop Roosevelt in 1932, and John W. Davis, who was a Democrat and nominated in 1924 as a Morgan lawyer, and Robert Woodruff, who should be mentioned here in passing, Robert W. Woodruff was the founder of Coca-Cola Company, or the founder of the modern Coca-Cola Company. And Woodruff becomes Mr. Coca-Cola.

36:00At the age of 85, he was still active, I think he just died a few years ago, he was still active at the age of 85. Woodruff essentially discovered or approved the idea of Jimmy Carter as the presidential nominee. So they try to stop Roosevelt without success. When the New Deal came in, there were some Morgan people in it, but they were unhappy with the nationalist monetary policies of Roosevelt. They wanted a London economic conference to have a worldwide financial agreement to try to do something about the currency blocs. Roosevelt torpedoed it. At that point, two of the major Morgan people quit the administration. Dean Acheson, who was a disciple of Henry Louis Simpson was a Morgan person, Louis W. Douglas, another Morgan person quit and only came back when World War II started and there was a mighty coalition between all these forces.

36:51By 1935, Morgan was believing that the Roosevelt was going too far in corporate state doctrine, just like Hoover was believing he was going too far. Along with the Hoover people formed an organization called the American Liberty League, which opposed the New Deal. If you analyze Liberty, they were pretty moderate in the sense that they weren't in favor of going back or on to laissez-faire, they thought that Roosevelt was being too extreme. Their man, Alf Landon, was smashed in the 1936 election and that sort of killed the Liberty League. What you had also with the Roosevelt election in 1932 was the end of the fourth party system. Remember, the fourth party system came in around 1896 and 1900, where the parties were no longer different ideologically after about 1900, and the Republicans were dominant.

37:49And the Republicans won every election except 1912, where the progressives split the Republican Party, and in 1916, where Wilson was just barely re-elected. In 1932, because of the Depression, and also because of Prohibition, what happened, by the way, I forgot to mention it, well maybe I did mention it, Prohibition came in finally under the cover of the war, World War I and continued on from then on, the Republican Party was committed to it by that time, and the Southern Democrats, the Northern Democrats of course and the Urban Democrats very much against it, Roosevelt pledged to repeal it, and as soon as Roosevelt gets in, he pushes through the constitutional amendment repealing the The Prohibition Amendment And with the Great Depression and with the Peel Prohibition, there's a big shift in the political party system.

38:36The fourth political party system comes in. Now, let's see. This was the fourth. And the fifth comes in. The fifth party system comes in, but the Democrats are the majority party. And the Republicans are now only winning with Eisenhower, and only winning Congress for about four years, House of Representatives and Congress only for about four years from then on. We then get a Democratic majority party, the South plus urban Catholics, and essentially the basis of a coalition. This continued until recently. Right now we're probably in a six-party system, because right now we're probably in the last ten years or so. The dimensions of which are not yet clear, but basically it seems to be in a situation where the Democrats win the House and the Republicans win the presidential elections.

39:33And very few people are party members, and we have a huge number of independents, floating voters, probably also because of the influence of television where people vote. I mean, first of all, it hasn't been any really ideological difference for a long, long time, since 1896. And second of all, with television and everything, there's much fewer party membership. The parties have been tremendously weakened, especially by the alleged reforms in the 1960s and early 70s. So almost every party has primaries and possibly any kind of ideology in any party. So it's all sort of TV. The parties mean almost nothing. That's one of the reasons why the famous thing that happened in the Illinois Democratic primary a few months ago when the LaRouche's won the Nutty cult, won the lieutenant governor and secretary of state post in the Democratic primary, embarrassing the Democrats enormously because the party systems, the party machines almost don't exist, but you have a sort of coalition of a bunch of crooks really with no kind of ideological difference.

40:42So we have a mass of floating independent voters, and therefore many things more or less up for grabs. In the 1930s, as things developed, the Morgans began, as the usual, to try to alliance themselves with France and England to try to crush Germany, as in World War I. The Rockefellers were not interested in war with Germany. They were interested in war with Japan. The Japanese were expanding far east, and the Rockefellers of Standard Oil were interested in oil and in rubber, rubber and oil in Southeast Asia, both were trying to expand into Southeast Asia, actually into Vietnam, as I've announced to, and in China, there was a famous incident in 1937 I believe, a Panay incident, where the Japanese sank a Rockefeller gunboat, I mean a Rockefeller tanker, I think it was an armed tanker I believe, and the Panay, up the Yangtze River, way up the Yangtze River.

41:43The question is, what was the Rockefeller Sun boat doing up the Yangtze River? Interesting question. Anyway, it was the biggest theory about that. And so what you had then is a movement for many years while the Morgans were getting into war against Germany and for the Rockefellers getting into war against Japan. So for example, in the State Department, the main force for trying to work out a peace with Japan was Ambassador to Japan Joseph C. Groove, who was a Morgan partner. The Rockefellers in Europe were in a sense allied with Germany. They had cartel arrangements with IG Farben, patent sharing agreements and so forth. So they tended to be against any intervention in Europe. John Foster Dulles, a stand-alone lawyer, probably the major stand-alone lawyer by the 30s, wrote a book in 1940 called War, Peace, and Change, in which he said that we should look at German territorial demands in Europe, The Morgans and the Rockefellers once again come into a mighty coalition. The Morgans get their war in Europe and the Rockefellers get their war in Asia. Both sides are happy.

42:54So we have a mighty coalition with the Morgans pouring back into the administration shouting hallelujah to the state, Simpson becomes secretary of war and Atchison becomes assistant secretary of state, Nelson Rockefeller becomes assistant secretary of state in charge of Latin American affairs and so we have a mighty coalition with all these guys pouring back in and when When we emerged from World War II, we emerged with the Rockefellers as permanently dominant within this Eastern establishment. The oil has now become even more important than before, and from then on, we have a situation where the Rockefellers, Morgan is essentially junior partners with the Rockefellers.

43:41The Rockefellers take over the Council of Foreign Relations, which has been launched by the Morgans, and David Rockefeller, chairman of the board of the Chase Manhattan Bank until was very recently still in a dominant force, sets up a famous trilateral society as a method of having tripartite in the United States, Japan and Western Europe, agreement on economic policy which then gets pushed into the government. So we have to realize that Democratic and Republican parties mean nothing anymore. The question is which financial groups are behind which candidate? The parties are just hollow shells to be taken over, so to speak. The Eisenhower administration, for example, is Rockefeller straight through, as you can see by the Dulles brothers and sister running in foreign policy.

44:31Carter was a virtually creature of the Trilateral Commission, and therefore Rockefeller, since they were... We now have Rockefeller-Morgan alliance, no more running competition. Carter was an unknown governor of Georgia, nobody ever heard of him. How did he become a big political candidate? Really nobody heard of him until about January of 1976. He was elected in 1976. How did he get to be president? Well, he was discovered, they wanted a southern governor. They figured a southern governor would be a good thing to push now. And Terry Sanford was one possibility and Carter was another. Woodruff, head of, owner of Coca-Cola, and J. Paul Austin, chairman of Board of Coca-Cola, discovered Carter. He was in Georgia, actually he was not a peanut farmer, he was a peanut wholesaler, to be concrete and specific.

45:20His buddy, Bert Lantz, was in with the bankers, a Georgia banker, and they knew about him. He was liked by the Coca-Cola people, and they called him the attention of the Trilateral Commission. They introduced him to David Rockefeller, the Trilateral, and they liked him. They made him a member of the Trilateral Commission. There's only about 50 members in the United States. It's not exactly a common Gordon variety thing. Since the Tri-Lateral Commission was the only deal with foreign economic and political policy, they asked the people at the Tri-Lateral Commission, why did you pick Carter? Because he admitted he knew nothing about foreign policy, nothing at all. He only knew about Georgia peanuts. He talked about how wonderful the Tri-Lateral Commission was, how he learned everything he knew about foreign affairs from them. So they asked the Tri-Lateral Commission, why did you pick Carter? They said, well, we wanted the input of a southern governor on foreign affairs.

46:09The real reason obviously is they wanted somebody who they could groom for possible presidential choice and sure enough they figured it was good material and by late 75 they began pushing for president. The publisher of Time at the time, James A. Lennon, the fourth Time magazine, was a member of the trilateral commission and he put Carter on the cover at a time when nobody had heard of him. Carter boomed largely by trilateral members. When Carter gets in, as president, his entire cabinet from top to bottom, down to the middle level is all members of the Trilateral Commission. Considering there's only a few members, it's pretty remarkable. Carter himself was a trilateralist, Mondale, his vice president, was a trilateralist, Bigniew Wrzeczynski, the National Security The Secretary of State was a trilateralist, as was Kissinger, one of the Republicans.

47:08We have a tremendous difference there, that both Kissinger and Rodzinski were both trilateralists, and almost the same views on almost everything, the only difference being that Kissinger is German and Rodzinski is Polish, I guess that's the only fairly small difference. The head of the State Department, the Secretary of State was a trilateralist, Cyrus Vance, and almost all the people in the top level of the State Department. But the major differences now are between, not between Rockefellers and Morgan, but between the Eastern establishment, which is basically Rockefeller, which now covers the Northeast quadrant in the United States. In fact, it really covers the Southeast too. So it's, in other words, New York, Illinois, Michigan, and even Georgia would be part of the Eastern establishment at this point.

48:01This is one group, one financial and political group. The other big financial and political group is known as Southern Rim, which is headquartered in Los Angeles, Texas, and Florida, nearby Southern Rim. There are differences in style and differences in content, I think they're both more or less similar in views, basic political economic viewpoint. The Eastern Establishment has to be very cultured, it's old money, of course, they've gone to Groton and George Bush, for example, a beautiful example of that, even though, well, George Bush was really first a Texan oil man, but he was born in Connecticut. His father was a Connecticut senator and then moved to Texas, he's a peculiar combination of both. At any rate, these are established by people who are preppies, tend to be preppies, went to Yale or Princeton or Harvard, and also tend to buy their opponents out, use money power, they're familiar with this, they buy out Columbia, Harvard, the State Department, Kissinger, for example, is just a simple assistant professor, associate professor of Harvard before Nelson Rockefeller discovered him, and made Kissinger his foreign policy advisor on permanent payroll, even though he's only governor of New York. You wouldn't think that the governor of New York would need a foreign policy advisor.

49:13permanent foreign policy advisers, anyway, so essentially buying out Columbia, Harvard, etc. etc. setting up institutes for foreign relations or Russian studies institutes or whatever. These are established methods thereby to purchase co-optation of enemies. The Southern Rim, these are known as the Yankees. The Southern Rim, also known as the Cowboys, tend to be slightly more in favor of free markets. Market, not very much, slightly more in favor of war, international war, though not very much, and also tend to shoot their opposition rather than fire them out. Cowboys tend to be less in favor of intellectual opinion, less in favor of free speech, more in favor of shooting the opposition, sort of a cowboy type.

49:58That's why I think Yankees are cowboys, a great term for these people. Lyndon Johnson was the quintessential cowboy, as would be John Connolly of Texas. Nixon came from Los Angeles, makes him a cowboy. Reagan came from Los Angeles, makes him a cowboy. Florida, nobody's come from it except Baby Robozo, the famous Cuban, Amy Gray, close friend of Nixon. Also involved with all sorts of popular rum-running deals. So, cowboys tend more toward illegal action, sort of that way. Executive action is known as the CIA. So if you look at it from this perspective, then you see that, for example, Kennedy would have been Eisenhower, of course, was the Eastern Establishment. Kennedy was the Eastern Establishment. One was a quintessential Yankee. And Johnson was a cowboy.

50:48And so we could then have the Johnson, the Knicks, you have Kennedy, you have Yankee, Yankee would be Eisenhower, and Kennedy would be one of the different parties. We have Johnson, the cowboy, and Nixon, the cowboy. Ford was really Yankee, because Ford comes from Michigan, and Reagan Carter was also a Yankee, and Reagan was a cowboy. So this makes, for example, and if you're looking at it this way, you don't look at the political party, you look at their financial backing. And the Kennedy assassination has an interesting new light on the Kennedy assassination, namely the possibility of a cowboy takeover through assassination.

51:34The effect of the assassination is Johnson, of course, coming to power. And if you look at it as a police act, as a police problem, usually if somebody is killed, you look at the beneficiary, the suffering widow, maybe the suffering widow just bumped the guy off with a hundred million dollars or whatever. In this case, possibly bump them off for power and whatever else goes along with it. And the bringing down of Nixon and Watergate, shifting forward, might well have been the counter-attack by the Eastern Establishment, using not just guns and weapons, but the power of the press, namely CBS and Washington Post, etc. Bringing down Nixon as a sort of revenge motive, for one thing, against the Kennedy assassination, and bringing Ford in.

52:20All this very interesting speculation should be built more into it, which of course is not being done much.