34-WAR OF 1812

The media did prove to be the powerful force that it was meant to be, but it wouldn’t have happened as quickly and worked as efficiently if the City had not consistently maintained its control of the American monetary system.

When Mayer’s son, Nathan, opened his bank in the City in 1810 and started setting the price of gold for the whole world, that’s when the seeds of globalization were sown. As of that moment, the American monetary system and that of England were controlled by one man, notwithstanding the fact that there was a lot of opposition to central banking in America.

In 1810, the year before the charter for the 1st Bank of the United States was to run out, hostility to private banking in the US was on the rise. Under the influence of hot-heads like Andrew Jackson, James Madison finally agreed not to renew the bank’s charter in 1811. Back in 1810, Nathan Rothschild had seen the problem coming and had issued an ultimatum: “Either the application for the renewal of the charter is granted, or the United States will find itself involved in a most disastrous war.” Madison and Jackson did not realize that the power of the ‘international moneylenders’ could extend that far, and they didn’t alter course. After declaring that he would teach the impudent Americans a lesson and bring them back to colonial status if they didn’t renew the bank charter, he proceeded to do just that.

Around 1812, the English Navy started harassing the American merchant marine by impressing 10 000 American sailors into her Majesty’s service. It was an intolerable situation, and President James Madison was forced to declare war on the English, a war he could ill afford, especially, since officially, Nathan’s bank, the 1st Bank of the United States, no longer existed. Nathan’s plan was to force the United States to fight a war and sink them deeply into debt. After the US declared war against England on June 18, 1812, the English military forces moved into Canada.

The English kept close to the waterways. They went up the St. Lawrence and the great lakes right up to Fort Erie and Detroit. They went up the Richelieu River to Lake Champlain, and blockaded all the ports they could along the Atlantic coast as well. All in all, it was a small war of attrition that cost the Americans dearly. When the English burned down Washington DC on August 24, 1814, it was a determining moment. The Treaty of Ghent was signed on December 24, 1814, and the US Senate ratified it on February 16, 1815. All territory went back to its original owners, and there wasn’t much mention of anything else of importance. The real results were unofficial and never linked with that treaty. The 20-year charter for the 2nd Bank of the United States was signed on April 10, 1816. And since the President’s residence in Washington DC had been burned down, it would now be known as the White House because of the white paint used to cover the traces of the recent fire. Lastly, the people of Upper and Lower Canada had a new sense of identity.

When the second charter for the 1st Bank of the United States came up for renewal in 1836, President Andrew Jackson vetoed it. If the City, contrary to 1812, didn’t insist on getting the charter renewed at this time, it was because of the possibility of making a silk purse out of a sow’s ear. After completing the Louisiana Purchase in 1803, the West had naturally opened up. Now, in 1836, thirty years later, the City bankers decided it was time to let America expand at breakneck speed, a period that would become known as the Wildcat Banking Years.

The modus operandi was simple. During the period of 1836 to 1863, ambitious men of all kinds would open banks, claim land, prospect for gold, drill for oil, and do all the hard work generally. The frenetic development that ensued was like riding a bronco, it was definitely wild, but it was OK because the rodeo was taking place in a controlled corral. In other words, the dollar used by the defunct but still operating 1st Bank of the United States and its affiliates on the east coast was tied to the English pound which was tied to gold, and all the funny money being printed in the emerging American States had to be more or less pegged to the dollar. The shinplasters, as the state currencies were called, were meant to fail just like the Continental currency had during the War of Independence. When the time came and everybody cried for more financial stability, the dollar would again be officially re-instated throughout the country.

In 1863, Congress passed the Banking Laws Act, and the dollar became the official currency in all the States. Key industries working in the US dollar financial zone had prospered, and their tentacles reached across the entire nation. The oil industry, the railroads, the steel industry and industrial America generally, were run by men like Westinghouse, Carnegie, Morgan, Rockefeller, while the Lehmans, the Kuhns, the Loebs, etc. ran the branches of the defunct 2nd Bank of the United States. The Federal Reserve Board would have to wait until 1913.

During the Wildcat banking years, from 1936 onwards, Lionel, Nathan’s son, who had become head of the family dynasty in the City, was satisfied to let the American West open up in a free-wheeling manner. He had three other worldly matters that more attention. The most pressing one was getting the last European power, Spain, to leave America in order to establish a permanent southern US border. The French administration along with its military had left America in 1763, that of England in 1783, and now it was Spain’s turn. Once that was accomplished, the Manifest Destiny concept would be realized. Lionel would then populate California with Americans, and he already had an idea on how to do it.

The other two matters were opening Japan and getting it to help unite China by invading it and getting rid of the Chinese warlords, and the other was to give France political stability by bulldozing its center of power, Paris, and transforming it into the City of Lights. The building of democracies in the ancient lands of Europe with old political regimes would not happen overnight, and it was best to get started as soon as possible. The Chinese and Indian democracies would be easy enough to establish, but Europe would take a very long time to unite. To be sure, globalization was very much on Nathan’s mind when he established the family dynasty in the City, in 1810, and took control of international finance, but it didn’t get going until Lionel took charge in 1836.


How the Jews became enemy #1 of the Church of Rome.


When, at the Council of Nicaea in 325 CE, the prelates decided to revamp the image of the revered messiah Apollonius by changing his name and turning him into the son of God, the founding fathers had a problem. The Apollonius look alike had to be an Essene from Palestine, and that meant he had to be a Jew. How does one build a Roman religion based on the teachings of a Jew? They did it by likening the money-lending Jews of the Temple of Jerusalem to Jews in general. By conjuring up a story where the new messiah was violently opposed to these usurers, and where these usurers were responsible for his horrible death on the cross, it would be one way to turn him into a very likeable Jew. Furthermore, the faithful would readily accept the idea that their long-departed messiah, Christ in Greek, had accomplished many miracles and was indeed Son of God. But that created a problem, for the Roman Christians were now inclined to believe that Jews were responsible for the death of their messiah, and they wouldn’t be unduly upset in the future to see Jews tortured, burned at the stake, or despoiled and banned from their homes. Unfortunately, that’s how it turned out, and that’s why Jews were transformed into the formidable foe that they would become. It’s not that the Jews had wanted it so, it’s just that the Christian Church made it so.

Geographically, France is the hub of Europe, and it naturally became the cornerstone of Christianity when the Church of Rome took over the administration of Gaul and the Western Roman Empire after Constantin’s departure for Byzantium. Clovis, the Church’s first anointed king was a Franc. During his reign, he had his hands full persecuting the Arians and the barbarians, the Appolinius followers who refused to accept the Nicene Creed that stated their messiah was Son of God. But once the great majority of Appolinius followers throughout Gaul had been forced to convert to Christianity, it was the Jews’ turn. In 629 CE, the Pope directed King Dagobert to expulse the Jews from Christian Gaul, which we know today as France. Later, in 996 CE, when King Robert the Pious came to power in France, an untold number of Jews were burned at the stake. When in 1009 the Muslims burned the alleged Holy Sepulcher in Jerusalem, the Christians blamed the Jews, and consequently many French Jews were tortured and massacred. Later, in 1096 CE, Jews started being systematically despoiled, and burned at the stake or expulsed from the realm. It was the start of the first crusade, and Philip 1st and his noblemen took advantage of the situation in order to replenish their coffers. By despoiling the Jews and killing untold numbers of Jews they were killing two birds with one stone. Philip was not only doing his Christian duty but he had found a way to finance the crusade ordered by Pope Urban II. Over the next centuries, when King Philippe Augustus and others needed money they would let the Jews back in for a fee, and the whole process would start over again. However, in 1394 CE, Charles VI officially declared the definite expulsion of Jews from France, and most of the 100 000 affected Jews made their way to Spain.

They chose Spain not only because it was France’s neighbor, but it was also because the Muslims were by then in full control of Spain and were tolerant towards other religions. And because the French Jews were moneymen and businessmen, the Muslims were favorably disposed in welcoming them. However, as the Christians started reconquering the Iberian Peninsula, at the first opportunity, in 1478 CE, the Pope ordered an inquisition. The Jews were again forced to convert to Christianity, and if they refused, they were burned at the stake. Understandably, many Sephardim chose to convert while continuing to practise their religion in secret, and they became known as marranos. However, they were expelled from Spain in 1492 CE and went to Portugal. Not surprisingly, soon after, the Pope ordered inquisitions in that country, and in 1540 CE, many of the great Sephardic families fled to the Netherlands, an ex-Spanish colony, and made it their homeland. William the Silent, a tolerant man, had gained that colony’s independence from Spain, and though fully aware of the Sephardim’s dubious conversion to Christianity, he welcomed them, labelling them new Christians.

When, in 1602 CE, the ‘new Christians’, the Sephardim, joined forces with the ‘Protestant Christians’, the Huguenots, in Amsterdam, it sparked the creation of the world of credit, the great world that we enjoy today.