Shadow Government

Link in title: Shadow Government

The reader should bear in mind that, although this article explains the "U.S./British Connection", England has been under economic and political control of the Rothschild money trust for centuries. Without that understanding, the subject of the US/British connection serves to create confusion as to WHO or WHAT is behind those individuals, groups, societies, etc. which, - while not well known to the general population - are somewhat more visible. A clue is given in the statement: "The money to found the CFR came in part from J.P. Morgan, John D. Rockefeller, Bernard Baruch, Otto Kahn, Jacob Schiff and Paul Warburg". This article was found at: www.biblebelievers.org.au/ and expands on the CFR's beginnings as excerpted from Quigley's book Tragedy and Hope . - Jackie - February 8th, 2001 ============================================================
An Introduction to the "Little Sister" of The Royal Institute of International Affairs: The U.S. Council on Foreign Relations

By Eric Samuelson, J.D.
janeric@concentric.net

"Since its founding... the CFR has been the preeminent intermediary between the world of high finance, big oil, corporate elitism, and the U.S. government. Its members slide smoothly into cabinet-level jobs in Republican and Democratic administrations. The policies promulgated in its quarterly journal, Foreign Affairs, become U.S. government policy." -- Jonathan Vankin ⁽¹⁾

"As a teenager, I heard John Kennedy's summons to citizenship. And then, as a student, I heard that call clarified by a professor I had named Carroll Quigley." -- Democratic Presidential Nominee Bill Clinton

When Bill Clinton delivered his acceptance speech at the Democratic convention, on July 16, 1992, Carroll Quigley's name was not exactly a household word.⁽²⁾ Quigley, Dean of The School of Foreign Service at Georgetown University, had graduated magna cum from Harvard. He made Ripley's "Believe It or Not" for being Harvard's youngest person to receive a Ph.D. After teaching at Harvard and Princeton, he went to Georgetown where for 28 consecutive years alumni selected him as their most influential professor.

Clinton, Quigley's student, went on to become a Rhodes Scholar, a CFR member, a Trilateral Commission member and a Bilderberger participant. He joined the Council on Foreign Relations in 1989, attended a Bilderberg meeting in 1991 and was a current member of the Trilateral Commission at the time of his nomination.⁽³⁾ Clinton, before the American public, openly acknowledged his Georgetown mentor and clued his followers from the convention podium. He then went on in November to defeat former CFR/Trilateralist/Skull and Bones member President George H.W. Bush.

The shadowy political and even "foreign" beginnings of the Council on Foreign Relations have long been intentionally obscured. For more than three decades the CFR received no notice by authors, the general public or serious researchers. When mentioned, it is almost always in articles detailing how many of the appointees of a given administration, as usual, have a "CFR connection". ⁽⁴⁾

Santa Barbara sociologist G. William Domhoff wrote in 1978 that the CFR had been the subject of only two "academic studies." This, he said, provided "an impressive commentary in itself on how little social scientists know about policy-making in the United States."⁽⁵⁾ A lack of academic commentary has also been paralleled by little coverage in the media or press. It was not until some 37 years after the creation of the CFR that a mainstream magazine article was published in Harper's by Joseph Kraft in July 1958 entitled: "School for Statesmen."⁽⁶⁾

A major clue was given by Georgetown University Professor Carroll Quigley in an interview. Quigley, in his best Boston accent, dismissed the Radical-Right interpretation as 'garbage'. But he then added:'To be perfectly blunt, you could find yourself in trouble dealing with this subject." He explained that his career as a lecturer in the government institution circuit was all but ruined because of the twenty or so pages he had written about the existence of Round Table Groups. As we will see, the CFR was, indeed, a British Round Table creation. This is one of the most important hidden secrets of the NYC-based CFR.

The story of the British connection to the Council on Foreign Relations may be traced back to George Peabody, J.P. Morgan, Andrew Carnegie, Nicholas M. Butler and Col. Edward House -- all who may be described a British loyalists. A Secret Society was established by Cecil Rhodes in connection with Rothschild, Morgan, Carnegie, and Rockefeller. A small highly secret group called the Round Table directed operations.⁽⁷⁾

The story begins at least when George Peabody moved to London and took up English residence in 1837 -- the same year Queen Victoria ascended the throne. He joined with other merchant bankers who traded in dry goods in "high finance." This consisted of exclusive service to "governments, large companies and rich individuals." ⁽⁸⁾ Soon after his arrival in London, Peabody was summoned by Baron Nathan Mayer Rothschild. Rothschild offered to pay all his entertainment bills. Hence, the famous Peabody July 4th dinners were bought and paid for by funds from the Rothschilds.⁽⁹⁾ In 1837, Peabody was warned, in advance, by his British friends of their decision "to withdraw credits from the worldwide markets and thereby depress commercial values; so he was fully liquid and ready to pounce on the American properties rendered bargains by the British move."⁽¹⁰⁾ In the crash of 1837 Peabody made a fortune purchasing depressed property in America.⁽¹¹⁾ In 1854 the American Ambassador to London, James Buchanan, stormed out of the room when George Peabody toasted Queen Victoria before President Pierce.⁽¹²⁾ Peabody "was the founder of the Morgan financial empire." ⁽¹³⁾ In 1859 Junius Morgan assumed control of George Peabody and Company. He traded Union bonds. The Civil War was "a bonanza for German-Jewish bankers on Wall Street, who raised loans from the numerous Union sympathizers in Germany." ⁽¹⁴⁾ Peabody's American agent was the Boston firm of Beebe, Morgan and Company -- headed by Junius Morgan.⁽¹⁵⁾ When J. Pierpont Morgan was in Vienna, his father wrote that Alexander Duncan had an opening in Duncan, Sherman & Company -- a bank affiliated with George Peabody in London. Pierpont "soon was acting as George Peabody & Company's American representative.⁽¹⁶⁾

Andrew Carnegie (1835-1919), in 1872, was paid a $150,000 commission for placing $6 million of bonds of a Pennsylvania branch road in Europe. He made another $75,000 on a second trip. While in England in 1873, on one of his frequent trips to Great Britain, he met Henry Bessemer and saw the Bessemer process of making steel. He then organized Carnegie, McCandless & Company with a capital of $700,000 and built a new steel plant named the Edgar Thompson Steel Works (to flatter the president of the Pennsylvania Railroad to get generous rebates). ⁽¹⁷⁾

In the original edition of Andrew Carnegie's 1893 book, Triumphant Democracy, he stated: "Time may dispel many pleasing illusions and destroy many noble dreams but it will never shake my belief that the wound caused by the wholly unlooked for and undesired separation of the Mother from her child is not to bleed forever. Let men say what they will, therefore I say, that surely as the sun in the heavens once shone upon Britain and America united, so surely is it one morning to rise, shine upon, and greet again the United States, the British American Union."⁽¹⁸⁾ In 1948 a bio of Carnegie ended: "There is bound to be universal peace, he believed, through the final interlocking of the national interests throughout the world. At first a coalition of America and England -- a union of the English-speaking race. Then a United States of Europe. And finally a unification of the entire human race."⁽¹⁹⁾ Carnegie was a vice president and generous financial supporter of the Anti-Imperialist League from its formation in 1898 until his death. His profits went from almost $3.5 million in 1887 to $40 million in 1900. ⁽²⁰⁾ He consolidated his holdings into Carnegie Steel Co. in 1899. On December 12, 1900 an informal parliament of "all the biggest men of New York" was held as a dinner party to the president of the Carnegie Steel Company -- "Smiling Charlie" Schwab. After an all night session, some weeks later, Morgan sent Schwab to Carnegie: "Go and find his price." The resulting price of $492,000,000, dubbed a "stupendous ransom," was paid to Carnegie with $300,000,000 in bonds and preferred stock. ⁽²¹⁾Carnegie's assets were actually worth only $80 million but Morgan merged other corporations to create U.S. Steel Company controlling 65% of U.S. steelmaking capacity. ⁽²²⁾ At the end of his steel career, in 1901, he turned over his Carnegie Steel to J.P. Morgan who merged it with three other steel giants (the Tennessee Coal and Iron Company, the Illinois Steel Company and Colorado Fuel and Iron) to form the U.S. Steel Corporation -- the first billion dollar corporation in America. ⁽²³⁾

Andrew Carnegie financed three temples of peace: Central America Court of Justice, the Pan American Union and the Palace of Peace at the Hague (which cost $1.5 million to construct in 1903).⁽²⁴⁾ He was also a member of the Philippine Independence Committee (1904) and a vice president of the Filipino Progress Association (1905-1907). In 1905 Carnegie gave $10 million to provide pensions for retired college professors. Those who gathered at Carnegie's mansion on November 15, 1905, included Charles W. Eliot (Harvard), Woodrow Wilson (Princeton), Arthur Hadley (Yale) and David Star Jordan (Stanford)^.(25)

The Carnegie Endowment for International Peace was set up in 1910. The initial direction of the fund was given by Carnegie to Dr. Nicholas Murray Butler (1862-1947). Butler got excited about the peril of the Allies in World War I and decided that the best way to establish peace was to help get the United States into the War. ⁽²⁶⁾ Butler was President of Columbia University (1901-1945), helped establish the Carnegie Endowment for International Peace and served as its President (1925-1945). Norman Dodd, research director for the Reece Committee, was invited to examine the warehoused records of the Carnegie Endowment for International Peace. The minutes, inspected by a Dodd researcher, revealed that in 1910 the Carnegie trustees asked: "Is there any way known to man more effective than war, to so alter the life of an entire people?" The trustees ultimately decided that war was the most effective way to change people. A year later the minutes showed that the trustees asked: "How do we involve the United States in a war?" And they answered: "We must control the diplomatic machinery of the United States," by first gaining "control of the State Department." The trustees also sent a confidential message to President Wilson insisting that the war not end too quickly. Dodd also found that all high appointments in the State Department took place only after they had been cleared by the Council of Learned Societies (established by the Carnegie Endowment for International Peace).⁽²⁷⁾ The Church Peace Union was established at a meeting at the home of Andrew Carnegie in 1914 with an endowment of over $2 million. ⁽²⁸⁾ Andrew Carnegie, J.P. Morgan and Otto Kahn backed the 1915 Anglo-French loan. ⁽²⁹⁾ The 1915 loans were said by Morgan to be made for "trade" purposes.⁽³⁰⁾

The League of Free Nations was created in early 1918 (in 1920 it became the Foreign Policy Association). ⁽³¹⁾ The Foreign Policy Association "grew out of a meeting of nineteen writers, editors, educators, and such with a view to selling Wilsonian policies and the League of Nations to the public."⁽³²⁾ The Foreign Policy Association, however, soon began to play "second fiddle" to the CFR.

In June 1918, a "more discrete" club of New York "financiers and international lawyers" was formed headed by Elihu Root (an Andrew Carnegie lawyer). ⁽³³⁾ The 108 members of the original Council on Foreign Relations were described by Whitney Shepardson as "high-ranking officers of banking, manufacturing, trading and finance companies, together with many lawyers." ⁽³⁴⁾ International Bankers provided the money: "In Britain the organization was (initially) called the Institute for International Affairs (IIA) while in New York it operated as the Council for Foreign Relations (CFR). The finances for the group came from wealthy international bankers..." ⁽³⁵⁾ The CFR was founded "by East Coast bankers, lawyers and academicians..." ⁽³⁶⁾ By April 1919, however, the CFR "went dormant." ⁽³⁷⁾

A Texan named House was a key individual before and during the Wilson administration. He helped establish the income tax, the Federal Reserve System, coined the phrase "league of nations," drafted the covenant for the League of Nations and presided over the creation of the Council on Foreign Relations (C.F.R.).

Col. Edward M. House (the title came from a Texas Governor) inherited a fortune estimated at around $1.5 million. He was born in Houston, Texas -- the son of a wealthy planter and banker. ⁽³⁸⁾ Originally the House ("Huis") family was Dutch. House's family had lived in England for 300 years before his father came to Texas. ⁽³⁹⁾ Thomas William House came to Texas to fight under Sam Houston and was an American agent for London Banking interests "said by some to the House of Rothschild..." ⁽⁴⁰⁾Edward House attended school in England for several years as a young boy: "Much of his youth and adult life was spent in the British Isles, which he regularly visited." ⁽⁴¹⁾ The elder House said he wanted to raise his sons to "know and serve England." ⁽⁴²⁾ House surrounded himself with prominent members of the Fabian Society. ⁽⁴³⁾ Between 1892 and 1902 he elected four Texas Governors. ⁽⁴⁴⁾

In the winter of 1911-1912, House wrote Philip Dru: Administrator. House said he was working for "Socialism as dreamed of by Karl Marx..." The book was a fictional plan for the conquest of America by gaining control of both the Republican and Democratic parties and using them to create a socialist world government. Central portions of the plan included a graduated federal income tax and a central bank. ⁽⁴⁵⁾ The book also outlined an inheritance tax and suggested taking functions away from the states. ⁽⁴⁶⁾ It suggested a conspiracy "insinuated into the primaries, in order that no candidate might be nominated whose views were not in accord with theirs." ⁽⁴⁷⁾ House passed the book to his father-in-law in New York City -- Dr. Sidney E. Mezes. Mezes, who read and approved the book, was Director of the College of the City of New York and former President of the University of Texas. House then sent the book to future Wilson cabinet member David F. Houston. Houston declared the work economically sound but said the fiction in it was so thin that he advised it be rewritten as a serious work. ⁽⁴⁸⁾

After his November 1912 election, Woodrow Wilson, on vacation in Bermuda, read Philip Dru. ⁽⁴⁹⁾Arthur Howden Smith wrote: "In nine months the Wilson administration completely reorganized the financial structure in accordance with the conceptions outlined in 'Philip Dru.'" ⁽⁵⁰⁾ From 1912-1914, Wilson's legislative program "was largely the program of House's book..." ⁽⁵¹⁾ The New York Times in January 1913 found the authorship of Philip Dru to still be a puzzle. ⁽⁵²⁾ In 1915 House was still trying to conceal his connection as author of the book. ⁽⁵³⁾ Among those who read the novel was Franklin Delano Roosevelt -- then Assistant Secretary of the Navy -- whose mother was then and always a close friend of Colonel House. ⁽⁵⁴⁾ It was published by B.W. Huebsch -- "a favorite publisher of the Left and for many years a valued collaborator of American Fabian Socialist groups." ⁽⁵⁵⁾ In 1917 a bookseller wrote regarding the House book: "As time goes on the interest in it becomes more intense, due to the fact that so many of the ideas expressed...have become laws of this Republic, and so many of his ideas have been discussed as becoming laws." He ended with the question: "Is Colonel E.M. House of Texas the author? If not, who is?" Seymour admitted: "Colonel House was, in truth, the author; to his other occupations he added that of novelist." ⁽⁵⁶⁾ Both Franklin K. Lane and W. J. Bryan commented on the influence of Philip Dru on Wilson. ⁽⁵⁷⁾ In 1918, Franklin K. Lane, Woodrow Wilson's Secretary of the Interior, stated in a private letter: "All that book has said should be, comes about...The President comes to Philip Dru, in the end." ⁽⁵⁸⁾ House's book has been said to have outlined the next 40-50 years in code (DRU is also said to be the code for David Rex Universe). ⁽⁵⁹⁾

Charles Seymour called Col. House "the unseen guardian angel of the (Federal Reserve) bill." ⁽⁶⁰⁾ The banker J. Horace Harding held a dinner at which House "convinced the financial overlords that the Democratic donkey, with Wilson in the saddle, would not kick over the traces....The Schiffs, the Warburgs, the Kuhns, the Rockefellers, the Morgans put their faith in House..." ⁽⁶¹⁾ On November 17, 1913, Paul Warburg requested an interview, with House, to include Jacob Schiff and Cleveland Dodge. Dodge was grateful for a "substantial subscription for the Y.M.C.A. fund." Warburg did most of the talking. Schiff favored only four regional reserve banks. ⁽⁶²⁾ Schiff said House was the Moses and they would be the Aarons: "He asked if I knew my Bible well enough for this to be clear to be. I told him I did." ⁽⁶³⁾ Schiff then wrote to House on December 23, 1913: "I want to say a word of appreciation to you for the silent, but no doubt effective work you have done in the interest of currency legislation..."⁽⁶⁴⁾ After getting the Federal Reserve through, House then turned to international affairs. ⁽⁶⁵⁾ House "had powerful connections with international bankers in New York. He was influential...with great financial institutions represented by such people as Paul and Felix Warburg, Otto H. Kahn, Louis Marburg, Henry Morgenthau, Jacob and Mortimer Schiff and Herbert Lehman. House had equally powerful connections with bankers and politicians of Europe." ⁽⁶⁶⁾ Jacob Schiff died on September 25, 1920. Of all the other living bankers named by Smoot, all, without an exception, were later founding members of the CFR in 1921. ⁽⁶⁷⁾ The original 270-secret crowd that created the Federal Reserve System "were all in the original (CFR) membership." They included Jacob Schiff, Averell Harriman, Frank Vanderlip, Nelson Aldrich, Bernard Baruch, J.P. Morgan and John D. Rockefeller. ⁽⁶⁸⁾

Associates of J.P. Morgan and Company created an American parallel group to the Milner Group before the first World War. ⁽⁶⁹⁾ The RIIA was an above-ground group: "During the Versailles Treaty talks after the war, Round Table members Lionel Curtis, Balfour, Milner, and others formed an above-ground group called the Royal Institute of International Affairs for the purpose of coordinating Anglo-American cooperative efforts. They decided also to form an American branch, but gave it a different name in order to secure its antecedents. Thus was born the Council on Foreign Relations, originally staffed by J.P. Morgan men and financed by Morgan money." ⁽⁷⁰⁾ The two groups were established to prevent the American people from reacting with patriotic fury if it was discovered that the CFR was in fact a subsidiary of the British Round Table. ⁽⁷¹⁾ The man most responsible for creating subgroups of the Round Table was Lionel Curtis. He established local chapters of the Round Table called the Royal Institute of International Affairs: "In the United States, the Round Table 'front group' was named the Council on Foreign Relations (CFR)." ⁽⁷²⁾

A savy observer has described the CFR's British front-role: "The interlock problem is conspicuous for another reason, one which has never been addressed by Congress. It seems that certain huge Yankee foundations, namely Rockefeller, Ford, and Carnegie, have been conscious instruments of covert U.S. foreign policy, with directors and officers who can only be described as agents of U.S. intelligence. According to Quigley, the roots for this can be traced to the establishment of an American branch of the British Royal Institute in 1921, which itself had grown out of the Rhodes Trust. The American branch, called the Council on Foreign Relations, was a largely a front for J. P. Morgan and Company." ⁽⁷³⁾

The Council on Foreign Relations Handbook of 1936 stated: "On May 30, 1919, several leading members of the delegations to the Paris Peace Conference met at the Hotel Majestic in Paris to discuss setting up an international group which would advise their respective governments on international affairs. The U.S. was represented by Gen. Tasker H. Bliss (Chief of Staff, U.S. Army), Col. Edward M. House, Whitney H. Shepardson, Dr. James T. Shotwell, and Prof. Archibald Coolidge. Great Britain was unofficially represented by Lord Robert Cecil, Lionel Curtis, Lord Eustace Percy, and Harold Temperley." The May 30^th meeting was held at the billet of the British delegation and proposed an Anglo-American Institute of International Affairs -- one branch in London and one in New York. ⁽⁷⁴⁾The New York and London locations were appropriate since "nearly all of them were bankers and lawyers." ⁽⁷⁵⁾

The British moved quickly to establish their branch. ⁽⁷⁶⁾ The establishment of the American branch was much slower. When the American delegates got home their fellow citizens were "absorbed in isolationism and prohibition, throughly inhospitable to the ideas of the League of Nations." ⁽⁷⁷⁾

So far no complete list of the fifty dinner guests has been located. It has been stated, however: "The twenty-one Americans, who, together with (their 29) British counterparts, founded in Paris The Institute of International Affairs, were a diverse group that included Col. Edward M. House, Herbert Hoover, Gen. Tasker Bliss, Christian Herter, and such scholars as Charles Seymour, later President of Yale, Professors Archibald Cary Coolidge of Harvard and James T. Shotwell of Columbia." ⁽⁷⁸⁾ There were two camps. One was headed by the U.S. official negotiators Tasker H. Bliss and Edward House along with advisors Herbert Hoover and Thomas W. Lamont -- along with their aides. The other side was composed of the twelve scholars that had served the American delegation in an advisory capacity. ⁽⁷⁹⁾ Most of the scholars were from Harvard, Yale and Columbia. ⁽⁸⁰⁾

The returning Inquiry scholars lacked the funds to create the envisioned American Institute of International Affairs but offered diplomatic experience, expertise and high-level contacts: "The men of law and banking, by contrast, could tap untold resources of finance...This was the synergy that produced the modern Council..." ⁽⁸¹⁾ The money to found the CFR came in part from J.P. Morgan, John D. Rockefeller, Bernard Baruch, Otto Kahn, Jacob Schiff and Paul Warburg.⁽⁸²⁾

Another source suggests that the original CFR itself had fund-raising problems: "They took the name of an organization already in existence. The original Council on Foreign Relations had been formed in New York in July, 1918, but in little more than a year had become inactive owing to an inability to raise the necessary funds. It was with 66 members of this original crowd that the peacemongers from Paris merged to form the organization we know today." ⁽⁸³⁾

J.

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