43-WWII AND BRETTON WOODS

In 1917, something went very wrong, and WWI had to be stopped. The City had planned for the Americans to enter the war and pierce the Western Front, and for the victorious Bolsheviks of Russia to attack from the East, the intent being to crush the Holy Germanic Empire using a pincer movement. But it didn’t happen because Lenin decided to quit the war instead. So with no Eastern Front, and after years of apocalyptic trench warfare in France, the City decided to end it. It would get at the Holy Germanic Empire some other day. Lenin died in 1924 of gunshot wounds sustained in a 1918 assassination attempt and was replaced by a more sanguinary Stalin.

In 1918, the City dynasty immediately sat down at the drawing board and prepared for WWII. The Treaty of Versailles signed in 1919 was the worst possible peace treaty imaginable, and we can be sure that peace was not on the peacemakers’ mind. All the statesmen had to be from la-la land in order to give their approval to such impossible terms. The thirty-three billion dollars of war reparations the allies imposed on Germany couldn’t possibly be repaid and everybody knew it. Furthermore, when it was decided to split Germany in two by creating the Polish Corridor, the whole German population was profoundly humiliated. Such decisions were more than enough to set the wheels in motion for WWII.

The Treaty of Versailles definitely indicated the direction in which the City was heading, and very soon the bankers found their mouthpiece, the man who would rally the German crowds. Adolf Hitler was noticed very early on in 1919. In spite of his poor physical condition, he had joined the army in 1914 at age twenty-five. Until then, he had been a poor, lost soul and the war had given him a purpose in life. Private Hitler volunteered his services as a dispatch runner, a very dangerous assignment, and was eventually promoted to the rank of corporal. His comrades thought he was rather weird, for he forever volunteered for the most dangerous missions, facing death repeatedly while remaining unruffled by it all. In 1916, he was wounded in the leg and went on R&R to Berlin where he became thoroughly disgusted with the apathy among German civilians with regards to the war. Upon returning to the front in the last days of the war, he was blinded by chlorine gas and returned to a starving, weary Germany to convalesce. Upon hearing that Germany had been defeated, he became totally despondent, and when he eventually snapped out of it, he was filled with deep hatred vaguely directed at groups within Germany.

In 1919, still in the army, this overly patriotic twit went so far as to inform on his fellow soldiers, and this led to the arrest and even the execution of many of them. The General Staff, embittered by Germany’s defeat and the unjust terms of the armistice, rewarded Hitler by promoting him to undercover agent and sending him on an indoctrination course at the University of Munich. He returned as an “education’ officer, and started speaking out with great vehemence against the Communists. The mysterious Thule Society had taken Hitler under its wing and his fate was sealed.

Hitler swore vengeance on those who had defeated Germany and had put an end to the war, the only worthwhile experience he had ever known. Inexplicably, his ire was directed mostly at the perceived enemies from within Germany, the Communists and the Jewish Marxists. Moreover, Hitler had to have had serious psychological problems in order to advance the idea of a superior race made up of blond, blue-eyed Aryans. This was not a healthy idea to begin with, but it was especially so because Hitler happened to have a swarthy complexion and brown eyes that had most likely been genetically transmitted by a Jewish parent. It’s obvious that someone was manipulating this air brain.

In 1919, Hitler, the intelligence officer, dressed as a civilian in order to spy on a meeting of the German Workers’ Party in Munich. When one of the members suggested that Bavaria separate from Germany and join Austria, it touched a raw nerve in the extremely patriotic Hitler. He couldn’t resist lashing out at the whole gathering in spite of the fact that he was Austrian by birth. Nonetheless, he definitely had the gift of the gab and everybody was impressed. Understandably, the members of the Thule Society were quick to have him join the German Workers’ Party. He may have been uneducated with deep psychological problems, but now, this empty-headed megalomaniac guided by hate and vengeance was in politics.

Hitler was a great talker, but all the ideas he kept expounding over the years were those of the Thule Society. This fraternity consisted of a small group of influential Germans who believed in the superiority of the Aryan race. They were deeply nationalistic and racist and from the very beginning, they had the swastika in their coat of arms. It was Dietrich Eckart, a leading member of that society that helped Hitler hone his public speaking skills. As early as 1919, Hitler had definitely been taken in by the Thule Society, the group that gave birth to the Nazi Party.

At first, the violent methods used to promote Hitler and the German Workers’ Party didn’t have the desired results. They only succeeded in getting the whole country to view Hitler as a silly little man, a sort of bad-tempered clown. Nonetheless, by 1923, Germany was reeling under the effects of inflation, and Hitler’s backers thought the time had come to make their mark by overthrowing the Bavarian Government. However, the Munich Beer Hall Putsch, as it became known, failed and Hitler was arrested. That’s when Hitler’s supporters decided that force alone was not going to work and that it was best to use more politically-correct methods.

Hitler’s public trial lasted several weeks and, for some unknown reason, the authorities let this ridiculous little man flaunt his oratory skills throughout. He apparently seduced many of the judges, for instead of getting life, he got five years, and he was eligible for parole within six months. He served nine months in luxurious quarters, and even had a private secretary, Rudolph Hess, who was a member of the Thule Society. That’s when Hitler produced Mein Kampf, a book that could never have been written without the help of Hess, a man who had studied politics at the University of Munich. The writing of Mein Kampf was, without a doubt, a way to spread Thule Society propaganda.

Guided by the members of the Thule Society, and assisted by misfits like Joseph Goebbels, a communications and propaganda genius, Heinrich Himler, a cruel, cold-blooded psychopath, and Adolf Eichmann, a logistics genius, Hitler became Fuhrer in 1934. It’s obvious that the Nazi Party was a very costly machine to operate, and only the City, through the Bundesbank and the German arms industry, could have financed such a sophisticated political machine, for Germany was a devastated country. And as the arms industry revved up its production, the economy picked up, and Hitler, now seen as some kind of savior, easily convinced the German people that war was inevitable.

When WWII became official, the German army went around the totally useless French Maginot Line with lightning speed and had the allies surrounded at Dunkirk in a matter of days. One can only wonder why, in an age of air and tank warfare, a great nation such as France spent huge sums of money in order to build an archaic structure, if not to allow Hitler to reach the Atlantic in record time. With the allied armies unable to retreat further, Hitler let the troops sail to England, no doubt hoping for a non-aggression pact in compensation for his good deed. However, England was apparently not willing to cooperate. Hitler then figured he might get the English to change their minds if he shook them up a bit. Eventually, the English must have given Hitler some assurances, for the London Blitz ended on May 10th 1941. Convinced that the Western Front was now secure, Hitler immediately turned his attention to the Eastern Front, and invaded Russia on June 22nd, 1941. Just like Napoleon in 1812, who had gone after the gold in the Urals, Hitler wanted to get his hands on something he really needed, the oil in the Caucasus. In both cases, the megalomaniacs’ armies were destroyed, and in both instances, their empires came to an abrupt end. The City tends to repeat what works well.

On December 7th, 1941, shortly after Hitler took off for Russia, the Japanese attacked Pearl Harbor. It seems the City was thinking of China and wanted to destroy the Nippon Empire while having America physically enter WWII. In July of that same year, Congress was encouraged to impose an oil embargo on Japan, and the ensuing kamikaze approach to the war adopted by Japan proved how effective that was. Japan had tried to negotiate with the U.S., but everything possible had been done by the Americans to have the negotiations fail. The very proud Samurais were thus forced into a suicidal war, hanging on to the hope that an alliance with an apparently victorious Germany would improve their prospects.

If there’s any doubt that America was conned into going to war, a few facts should help dissipate it. Although the U.S. and UK navies controlled the Pacific, and although there was a SCR-270 radar station with a 150-mile range installed in Honolulu, the Japanese were able to have a huge fleet of warships, including aircraft carriers, sail across the Pacific to Hawaii, and then launch squadrons of aircraft without anyone noticing. Furthermore, all the U.S. aircraft carriers had been sent out on sea exercises and only the very outdated WWI battleships and destroyers remained in port. The play became obvious when President Roosevelt, under the guise of protecting the U.S. air force, personally ordered all the military aircraft based at the Honolulu airbase to be positioned in such a configuration as to make them less vulnerable on the ground, but which had, in fact, the effect of preventing them from scrambling effectively. It seems that the City dynasty had simply let Roosevelt know it was time for war.

The City bankers succeeded in getting the U.S. to join the war at a cost of only 2,390 lives, the number of casualties at Pearl Harbor, a low human toll when considering the mindboggling number of casualties in WWI and WWII. The war in the Pacific got underway as planned, and the U.S. declared war on Germany without actually engaging Hitler for another three years. When the American troops did get into the thick of things on D-day, in 1944, Stalin’s troops came in from the east, and the Holy Germanic Empire was totally destroyed. As of that moment, all the Ancien Regimes of Europe, including Russia and the Ottoman Empire, could be considered destroyed, and the Vatican tiger was at last toothless and declawed.

To have some idea which countries the City targeted in WWII, we need only look at the casualty numbers. Russia lost twenty two million soldiers and civilians, while Germany and China suffered losses of eight million and twenty million, respectively. As for the UK, the U.S., and France, they lost around half a million each. We know that the City had wanted to destroy Germany, but why so many Russian casualties? And what was going on in China? For one, Russia had to be seriously weakened if it was to be trusted to play the scarecrow role it was being assigned, and that will be explained in the next posting. In China’s case, the City obviously had let the Japanese mangle the Chinese warlords at will, for during the war it supplied China with just enough war materials for it not to capitulate. The City had fully intended to destroy Japan once the Chinese warlords were done in, and the time had come. China was ready to be transformed into the great market economy that it is today.

In 1944, in Bretton Woods, with the world having gone through the grinder, the City convened all the nations of the world, and it had no difficulty in creating the first official world currency of reference, the U.S. dollar. All the countries agreed to peg their currency to the dollar and use the dollar as a reserve currency. The City had achieved the ultimate in financial wizardry, the paper dollar was now as good as gold worldwide.

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40-THE FED

In 1768, Haym Salomon, Mayer’s right hand man in America, with the help of another great collaborator, Robert Morris, took charge of the French gold given as an aid package to America and used it to create the Bank of North America in 1781. That sealed the destiny of America, and what a great one it turned out to be.

In 1791, the official and officious stockholders met in Philadelphia to choose board members and decide on rules and regulations for the 1st Bank of the United States. While the Bank was to be headquartered in Philadelphia, it created eight branches, four in Baltimore, Boston, Charleston, and New York in 1792, and four more in Norfolk (1800), Washington (1802), Savannah (1802) and New Orleans (1805).

Its largest customer was the government, and one of the highlights of that relationship was the Bank’s efficient managing of the government’s fiscal affairs with respect to the Louisiana Purchase in 1803. The bank’s notes circulated countrywide and infused a safe medium of paper money into the economy for business transactions. Although the relationship between Mayer’s bank and the government wouldn’t always be a smooth one, due to those who didn’t want a strong Federal Government and who thought bankers were crooks, it would remain steadfast, today’s Federal Reserve Bank being the ultimate proof.

Nonetheless, in 1811, American politicians who opposed Mayer’s bank refused to renew the charter of the 1st Bank of the United States. In retaliation, Nathan, who had by now taken control of the Bank of England in the City, proceeded to ‘teach the impudent Americans a lesson’ by forcing them, in 1812, to wage a costly war. Shortly after the British troops burned down the President’s Residence in 1815, Congress signed a 20-year charter for the 2nd Bank of the United States in 1816, and the latter immediately proceeded to open 26 branches across the country.

Augusta, Georgia (1817, closed 1817) – Baltimore, Maryland (1817)

Boston, Massachusetts (1817) – Charleston, South Carolina (1817)

Chillicothe, Ohio (1817) – Cincinnati, Ohio (1817)

Fayetteville, North Carolina (1817) – Lexington, Kentucky (1817)

Louisville, Kentucky (1817) – Middletown, Connecticut (1817)

New Orleans, Louisiana (1817) – New York City (1817)

Norfolk, Virginia (1817) – Portsmouth, New Hampshire (1817)

Providence, Rhode Island (1817) – Richmond, Virginia (1817)

Savannah, Georgia (1817) – Washington, D.C. (1817)

Mobile, Alabama (1826) – Nashville, Tennessee (1827)

Portland, Maine (1828) – Buffalo, New York (1829)

St. Louis, Missouri (1829) – Burlington, Vermont (1830)

Utica, New York (1830) – Natchez, Mississippi (1830)

In 1836, members of Congress again refused to renew the bank’s charter, but by this time it didn’t matter. Though the 2nd Bank of the United States was no longer the official national bank, its branches were still very much operational while everyone fought for wealth and position in the new states being created. All the shinplaster money issued by the state banks didn’t in the least affect the banks that constituted the backbone of American finance, the ex-2nd Bank branches. The ex-2nd Bank continued to work as a unit using the dollar that continued to be fixed to the price of gold in the City. It was a standard that the country could depend on, and all the funny money printing state banks had no choice but to stay within range of that standard. So, industrial America developed by leaps and bounds in spite of the Wildcat Banking years.

In the 1860’s, coast to coast railway travel was no longer just a dream, and it was time to bring the South into the Manifest Destiny project, for it had remained completely out of sync with the rest of the country. That’s when huge amounts of credit started coming into the country from the City and its affiliates in Holland and Germany. The cotton economy was on the wane, and the political and financial pressures on the south were great. Pushed to the wall, the South’s only option was to secede, which it did, but the war that ensued completely destroyed it. Thereafter, the carpetbaggers loaded with cash revamped the south, railroads were built in a frenzy from coast to coast, and Congress, tired of financial bedlam, signed the National Bank Act in 1863. During the war, Congress had had no choice but to seek loans from the well-established national banking network, and at the first opportunity, it re-instated the dollar as the national currency. The Bank of North America, a voluntary misnomer on my part, and the Bank of England have been welded together since 1810, and although businessmen and politicians still don’t face up to the reality of international financial control by the City, and though they distrust bankers, they just know it is the most reliable and sound financial arrangement possible.

In 1913, the Federal Reserve Bank was created by Congress. Its shareholders were the Rothschild Bank in the City, in London, the Lazard Brothers Bank of Paris, the Israel Moses Seif Bank in Italy, the Warburg Bank of Hamburg and Amsterdam, the Lehman Brothers of NY, the Kuhn, Loeb Bank of NY, the Goldman, Sachs of NY, the National Bank of Commerce /Morgan Guaranty Trust of NY, the William and David Rockefeller & Chase National Bank of NY. All these banks were privately owned and backed by the huge quantities of gold bullion accumulated in the vaults the City. There were symbolic amounts of gold in Fort Knox, but the FED has always answered to the price of gold as set by the Rothschild Bank in the City, in London, where more gold was stockpiled than in all the central banks of the world combined.

Democracy is a system whereby elected representatives of the people borrow from the private central bank of their country in order to get things done before taxes are collected. The system has worked flawlessly since 1694, giving mankind order and prosperity in the process. However, we should be especially grateful to Mayer who created the Bank of North America in 1781, an institution that would allow his dynasty to create the world of credit as we know it today. Mayer did it by accumulating gold bullion in great quantity and in complete anonymity, and then putting it to good use by just letting it sit in a neat static pile for all time.

16-WINE AND DENIM

By the end of June, 1773, David in Rotterdam had received and sold several shipments of tobacco and realized a bigger return than anticipated, Jean-Baptiste Willermoz and François Johannot and their wives had come back from the south of France with interesting information along with several bottles of Burgundy wine and several meters of ‘de Nîmes’ cloth.

After debriefing Jean and François in his Farhgasse office, Mayer decided to give Gretel, his one and only confident, a full account of their trip. They sat down at the kitchen table, and Mayer started relating the great news Jean-Baptiste Willermoz and François Johannot were bringing back from France.

He first showed her a sample of the cloth. It had one weave of blue thread crossed with a weave of white thread, and the double-weave not only made for an interesting design, but gave it extra durability. Gretel thought the indigo colored cloth was beyond belief and wondered if poor people could afford it.

Mayer answered that it would sell for the same price as Indian or English cotton and last many times longer, so people would flock to buy it. And before Gretel had a chance to make a comment, Mayer reached for a bottle of burgundy wine, one of the many samples brought back by François. He picked up a funny curly piece of metal, drove it into the cork with a screwing motion and pulled the cork out of the bottle neck. He took two glasses, half-filled them, and they drank to their growing family.

Gretel thought the wine was too good to be true, but her mouth dropped upon learning how much money the wine and cloth was going to bring in. Mayer started by explaining that Bouchard in Beaune was to receive a letter of exchange in the amount of £2500, or 1 shilling per bottle of wine once delivered in Rotterdam where David would presell it for 1/6 per bottle. David would give the new willing owners a letter of exchange guaranteeing them 3 shillings per bottle if delivered in New York where Haym would presell it for 4 shillings per bottle. 250000 bottles, or half a shipload, would thus generate a profit of £6000 in Rotterdam and another £12500 in New York City.

With regards to cloth, Dollfus was to receive a letter of exchange in the amount of £12000, or £10 per bolt of denim once delivered in Rotterdam where David would presell it for £12 per bolt. David would then give the new willing owners a letter of exchange guaranteeing them £15 per bolt if delivered in America where Haym would presell it for £17 per bolt. 6000 bolts of cotton, or half a shipload, would generate a profit of £12000 in Rotterdam and another £12000 in New York.

He concludes by repeating that since a work outfit made with denim cloth in America will cost less than one made with English or Indian cotton but last ten times longer, everybody will be fighting to buy it. Likewise, since the best wine in the world will only keep getting better in a bottle, all the bourgeois in America and England will want to fill their cellars with it. He then adds that though the profits appear to be huge, the price for these superb new products is well below what people will be willing to pay.

To help Gretel get over her choc, he starts relating the adventures of François’ party to France. They had started off by taking a river coach to Mainz. After spending a delightful night in a well-appointed inn, they set off the next day for Basel. River coaches were much more comfortable and a faster means of transportation, but only when going downriver, the rest of the time it was best to travel by stage coach. It took them five days by stage coach to reach Basel where friends were waiting for them.

After a day’s rest, they travelled by stage coach to Montbeliard , and from there they continued on by river coach to Chalon-sur-Saone, a town south of Beaune. Having made prior arrangements, a local winemaker whom they hadn’t seen in years welcomed them in his beautiful country estate. The next day, their host introduced Jean-Baptiste and François to Joseph Bouchard, a wine merchant from Beaune. They were told the Givors factory on the outskirts of Lyon was making glass using ovens fired by ground coal. And because glass made with coal as a fuel instead of charcoal was much stronger, and because the glassblowers had started using handheld molds, they now made less fragile and more uniformly shaped bottles more quickly. Because the bottle necks were thickened and had a standard diameter, it was now possible to use a one-size-fits-all cork stopper. Bouchard told them there was plenty of wine available, but getting fifty thousand glass bottles at a time might be a problem. He told them it was best to check with Michel Robichon who was the glassmaker in Givors. As for the corks, the cork slabs could be bought in quantity in Arles, transported to Beaune where they could be suitably shaped. All in all, he thought it was quite a feasible operation, and it would be no problem to fill the bottles with the best wine of the region and cork the bottles in a matter of days. Bouchard was already experimenting with the bottles, and he promised to give them wine samples on their return trip home. If Givors supplied bottles in sufficient quantity and at the expected price, he stated he could get the wine to Rotterdam via Basel for around nine pennies a bottle.

Jean-Baptiste and François were quite excited and were anxious to go to Givors to visit the glass factory and interview Michel Robichon, the owner. They left their wives with family in Lyon and continued on to Givors the following day when they reached the glass factory, they acquainted Robichon with Mayer’s idea of financing regular shipments of bottled wine using the services of Joseph Bouchard in Beaune. They told Michel they had talked to Joseph, and that his only concern was having enough bottles. Naturally, they wanted to see if his factory could supply lots of fifty thousand bottles on an ongoing basis.

Jean-Baptiste and François were happy to hear Michel say that he had just put in a second oven and that a third was on the way. Since one oven supplied enough glass to accommodate four glass masters, and since each master could turn out five hundred bottles a day, it meant that the production would soon be six thousand bottles a day, thirty-six thousand a week or some two million a year.

Michel added one cautionary note. The factory was presently getting its high quality ground coal from Rive-de-Gier, a mine situated fifteen kilometers from Givors. The canal that was meant to transport the coal by barge was not yet completed, and the mine owners had to use mules to bring the coal to Givors. They had some twelve hundred mules in all, with two trains of four hundred mules making a daily turnaround while the remainder rested. With each mule carrying eighty kilograms of coal, it averaged out to a daily supply of around sixty tons. But since most of the coal was destined for the south of France, if he was to add extra ovens, he might not be able to get enough coal. However, he would put a little pressure on the coal mine owners by reminding them that his factory was operating under the Royal Seal, and was to be supplied in priority. But that was down the road. For now, there was more than enough coal to fire up the second oven, and it would take less than two weeks to produce the fifty thousand bottles. He could have molds made with logo indentations in order to identify the wine, and before shipping the bottles to Joseph Bouchard in Chalon-sur-Saone, he would package them in fifty bottle capacity wicker baskets.

Jean-Baptiste and François were happy and wasted no time getting back to Lyon where their wives were waiting. They spent a few days visiting family and friends, but they couldn’t wait to carry on downriver to Arles by water coach. It took them only three days to reach Arles under very comfortable conditions, and from there, it was a very short day trip by land coach to Nîmes where they had written ahead to Jean André, the owner of the cloth factory in Genoa, Italy.

When they finally met with Jean, Jean-Baptiste and François were pleasantly surprised to hear that he had every intention of going ahead with the production of the double-weave indigo cloth. They couldn’t believe it when Jean added that he was planning to move the production of this very promising cloth from Genoa to Mulhouse which was not far from Basel on the Rhine. It was a Huguenot city-state bordering France and the thousands of jobs being created were needed to help the growing economy. It didn’t cost much more to bring the raw cotton and indigo from the Americas up the Rhone instead of to Genoa, and because one of the two rivers that ran through Mulhouse had soft water and was perfect for dyeing cloth, the savings would more than offset the added transportation cost.

There were already fifteen cotton factories and more than two thousand cotton workers in Mulhouse, and with the advent of the flying shuttle, the spinning carding frame powered by a water wheel, two recent inventions developed in England, the cost of producing cotton cloth had dropped while the quality and production had increased dramatically. With the added planned production, Mulhouse would become the biggest cotton manufacturing center in continental Europe, and because the city was independent of France, they weren’t affected by the embargo imposed by France on the production of cotton fabrics. Understandably, since the demand for cotton cloth was exploding, the fabric would no doubt attract high prices for years to come.

Jean told them that his cotton mills would be operational within a few months. He had already bought an existing factory on the Mulhouse riverfront, and the equipment being fabricated by local artisans was likely finished by now. Jean told them his director in Mulhouse would soon be able to deliver twelve hundred bolts of the finished indigo double-weave product to Basel on a regular basis for around £10 per bolt. They confirmed that with Jean-Henri Dollfus, the man running the Mulhouse factory, on their way back to Frankfurt. Dollfus had already received several barges of raw cotton from the French West Indies along with indigo.

Before Gretel had a chance to give vent to her unbelief, Mayer sat down at his desk to write to Joseph Bouchard in Beaune and Jean André in Nîmes telling them he was willing to buy as much product as possible at the agreed price. There was no time to lose for the letters had to be translated by François before being sent on. He was telling Joseph Bouchard to deliver all the grand cru Burgundy wine he could bottle. Mayer would give him a letter of exchange redeemable upon delivery in Rotterdam. He then addressed a letter to Jean André asking him if he would agree to the same financial conditions. Just like with the wine, Mayer would buy all the cloth that could be delivered to David in Rotterdam where the letter of exchange would be redeemed.

Soon, it would be possible to redeem Mayer’s bills of exchange, and even use them as currency, in Frankfurt, Rotterdam and the 13 Colonies, not including the counting houses that would soon open in London and Basel. He had contacted Moses Haim Montefiore in Rotterdam, the friend who had helped David Schiff get settled, asking him if he was interested in running a counting house in London. Moses had replied by return mail that he had been thinking of settling permanently in London, and running a counting house for Mayer in that city was more than he could have hoped for.

By the end of 1773, David was receiving tobacco on a regular basis and he had dispatched the first shipments of Burgundy wine and denim cloth. In both Rotterdam and New York, everything always presold at a price better than anticipated, and Mayer’s counting houses were becoming financial institutions of note. He was now ready for his next venture.

He wrote to Haym asking him to come to Frankfurt as soon as possible. Haym was to first go to Williamsburg in Virginia and introduce himself to as many members of the House of Burgesses as possible in order to see what the political climate was in that very important southern colony. Virginia was the most democratic colony, and its leaders had always been stalwart supporters of the Crown. Nonetheless, die-hard loyalists had started being upset with the English Parliament just like in the colonies up north, and Mayer wanted to confirm that. Haym was to identify any leader who stood out in his opposition to the Crown, preferably someone who was imposing, ambitious and vain.

The very powerful Bank of England, by way of the English Parliament, was treating the 13 Colonies as a parent would a child. Although the pound was the official currency, the Bank of England supplied very little sterling in order to facilitate trade. The colonials were reduced to using tobacco, wampum and the like when they couldn’t get their hands on Spanish dollars. The lack of credit, the unjust rate of exchange between the Spanish dollar and the Pound, the lack of representation in decision making, and the unjust taxes forced upon the colonials by the Mother Country was making for an explosive situation.

Mayer was honest and had enough specie to redeem all the paper he was issuing, and because his counting houses on both sides of the Atlantic used the same conversion rates, his paper was in high demand. In all his counting houses one pound was worth 1 oz. of silver or 1 Piece of Eight, and 1oz of gold was worth 15 oz. of silver. And since the British insisted on a colonial conversion rate of 4 Pieces of Eight to the Pound, it gave Mayer’s counting houses a serious edge over the English. Necessarily, all bills originating from the colonies were expressed in Spanish Dollars, whereas all merchandise coming from Rotterdam was valued in Pounds, as this greatly advantaged the American colonials. Since Mayer’s counting houses only accepted gold and silver as payment, and since Haym was instructed to never exchange Dollars for Pounds, the great disparity in the English exchange rate didn’t affect his counting house.

Mayer’s counting houses were gaining in international status, and he had more than he needed to finance a meeting of the 13 Colonies. The colonies’ representatives would not question the help of Haym Salomon, for it was only natural for a rich friend who profited so much from colonial trade to help out. The Americans would surely gain their independence, and they would look upon Mayer’s counting house as an honest, dependable source of credit, and Mayer would take control of the 13 Colonies’ monetary system just like the Bank of England bankers had done with that of England a century before, but he would do it anonymously through Haym Salomon and Robert Morris.