Federal Reserve Act (Dec 23, 1913)
mechanismMoney & Finance
The same handful of bankers who quietly designed America's central bank also cashed in on the world war it went on to pay for.
Who they are
The 1913 law that created the U.S. Federal Reserve, signed just seven months before World War I began.
What they do
It set up a central bank, and the engine reads it as the piece that had to be in place before the U.S. could bankroll the coming war.
How it works
It was planned at a private 1910 meeting on Jekyll Island by men tied to the big banks (Warburg of Kuhn Loeb, Davison of Morgan, Senator Aldrich linked to Rockefeller). During the war the money supply doubled from $20.6 billion to $39.8 billion, and the U.S. flipped from owing money to being the world's lender.
Why it matters
The banking interests that built the Fed profited from the war it financed, turning a public institution into private advantage.
The engine's record — word for word
Signed 7 months before WWI. Jekyll Island (1910): Paul Warburg (Kuhn Loeb), Henry Davison (Morgan), Senator Aldrich (Rockefeller). Structural prerequisite: US needed a central bank capable of monetizing Allied war debt. Money supply doubled during WWI ($20.6B to $39.8B). Transformed US from debtor to creditor nation. The same banking interests that created the Fed profited from the war it financed.
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