Jekyll Island & the Aldrich Plan
The first step in creating the Federal Reserve was the meeting at Jekyll Island. Held in 1913, Morgan's trusted partners developed the Aldrich Plan with twelve regional banks. These meetings were held in secret because such a radical idea would be denied by the Republican House of Representatives. The men recognized Morgan's vision and formulated this central bank. It intended to intervene and prevent financial crises from worsening–like what Morgan did during the Panic of 1907.
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(Photo Courtesy of Federal Reserve History)
"This was the roster of the Aldrich car that night:... Nelson W. Aldrich, Republican 'whip' in Senate, Chairman of the National Monetary Commission, business associate of J.P. Morgan... Henry P. Davidson, senior partner of the J.P. Morgan Company... Benjamin Strong, head of J.P. Morgan's Bankers Trust Company" (Griffin 5). |
The Jekyll Island Committee was hesitant to introduce their plan to Congress; it had a tight control on other agencies.
"The Aldrich Plan called for a system of twelve regional central banks, called National Reserve Associations, whose actions would be coordinated by a national board of commercial bankers" ("The Aldrich Plan"). |
(Photo Courtesy of Snipview)
"Others used the Aldrich Plan as the basis for another plan that became the Federal Reserve Act and established the Federal Reserve System, creating a central banking system for the United States" ("Jekyll Island Environment"). |
"Club House, Jekyll Island, Georgia" (Bagwell). (Photo Courtesy of "Jekyll Island History")
"At stake was the future control of the money and credit of the United States. If any genuine monetary reform had been prepared and presented to Congress, it would have ended the power of the elitist one world money creators. Jekyll Island ensured that a central bank...would give these bankers everything they had always wanted" (Mullins). |