Chapter 706 Preparing for the Federal Reserve
The Federal Reserve will appear sooner or later. The slave owners turned a deaf ear to this matter and showed an uninterested attitude. That was entirely because their accumulation in the financial industry was not enough to snatch a satisfactory share from the many bankers in the New York metropolis.
To this end, he even tricked J.P. Morgan and used public opinion to completely discredit the last banking crisis and the civil war between trust companies and bankers. Thinking about it now, it cannot be said to be slander, it was indeed a man-made crisis.
Times have changed and the current environment is different from that time. After the last banking crisis, the banker community has reached a consensus that a national bank must be established sooner or later, but the citizen class has doubts about this.
These are all difficulties that can be overcome. In the political system of the United States, citizens have always had the right to express their opposition, but they have never really succeeded in opposing anything.
The First and Second Banks of the United States ended abruptly, not because citizens really felt bad about the national banks, but because a group of bankers within the citizen class were very dissatisfied with the national banks, and pretended to represent the opinions of the citizens to make the First and Second Banks disappear.
Then there is the regional issue: the Democratic Party's base is wary of New York bankers because after the Civil War, the former richest slave-owning class has disappeared, and the economic comparison has become increasingly unfavorable to the South.
Citizens of the Midwest were also afraid of the economic strength of the New England region in the Northeast, because once a national bank emerged, it would lead to the dominance of New York's financial capitalists over the entire country.
For various reasons, the New York bankers represented by the Morgan family failed to succeed in their plot to establish a national bank. But Sheffield knew that it was a matter of time, not a matter of if.
During dinner, Louis Morgan asked why Sheffield had changed his mind and took the initiative to bring up the matter.
"I'm not really against it, I just want one more. I didn't have the ability before, but now? I have it just barely." Sheffield chewed the veal lightly and said with a trembling eyebrow, "My dear, you are very good at hiding it. You have never mentioned the National Bank in front of me. You are very loyal to the family."
"I just know what my father and brother think. I can't say I'm hiding it. Do you feel guilty for saying that? You and I already have a child." Louisa Morgan was very dissatisfied when she heard it. "Didn't you hide it from me? You always pretended that nothing happened."
"So we are an alliance of shameless families. Don't you think it's quite interesting to be wary of each other like this?" Sheffield took a sip of red wine and said noncommittally, "The reason why I agree is that the Democratic Party is in power now. Such a major event that changes the future is best to happen in a political environment that is favorable to me. Once this national bank is established, the shareholders in it will be a whole. Maybe we will end the history of being wary of each other and fighting, and face the outside world together in the future."
"I always thought you didn't think much of banking," Edith Rockefeller interjected. "It's like your Union Bank. It's just a matter of having or not having."
"How is that possible? I don't value banks for only one reason. That's because bankers themselves don't create any value, and financial capitalists are the most greedy and shameless among the capitalists." Sheffield paused and looked at Louisa Morgan and explained, "I'm not saying anything about the Morgan family, but bankers as a whole are indeed much greedier and more shameless than industrial capitalists. In terms of assets, the Morgan family has always been far behind the Rockefeller family, but their reputation is even greater. This is the invisible power driven by bankers."
Is Sheffield now the richest man in the world? Of course, he has completely secured this position. However, most citizens believe that he did this by selling his shares in United Motors.
This is the difference. Many people believe that the world's richest man, the slave owner, was created by the Morgan Alliance. From this point, we can see the invisible influence of financial capitalists.
Alice Roosevelt, Evelyn and others listened attentively as their men and female members of the other two top families explained major events that could change the country's and even the world's economic landscape.
Sheffield was not coerced by anyone, but felt that it was time to push forward. Moreover, in his eyes, the Federal Reserve was not a complete check on him. As long as he could gain a foothold in the Middle East, it would in turn check and balance the bank that Morgan had been planning for many years.
In the future, oil can be pegged to the US dollar, and of course, it can also be pegged to the ruble, or even the euro or the renminbi.
Of course, first of all, he wants to build the alliance in the Middle East into an entity that can protect itself. Nuclear bombs are standard equipment, and it must be a country that surpasses Israel in all aspects. Weapons related to nuclear weapons, whether submarines or intercontinental missiles, must be available.
Having achieved this, he dared to threaten anyone and could become friends with any country. If he wanted to tie oil to the dollar, he could tie it to the dollar; if he wanted to tie oil to the ruble, he could tie it to the ruble. After the Soviet Union was repaired, he could even make friends with the motherland of the proletariat. There was nothing wrong with this.
Even if the Federal Reserve is established, the Sheffield family can interfere with the Federal Reserve, but the Federal Reserve cannot interfere with it in return. This is the national bank that the slave owners hope to see. It is not what some people think, that everyone will be on the same boat in the future.
Although it was very indecent to negotiate in pajamas, it was because little Morgan came too early. Sheffield appeared yawning, which was in sharp contrast to the well-dressed little Morgan.
If the two of them appeared at an upper-class ball at the same time, I believe no one would take the slave owner as a dish.
"You're early, my friend." Sheffield, who was fiddling with his toothbrush, greeted vaguely, "I just had an idea. There's no need to be so anxious. Aren't you going to prepare?"
"What else do you need to prepare? We have been preparing for so many years." Little Morgan said with a smile, "Take a look at my plan and you will find how flawless it is. It takes care of banks all over the country and is very well thought out."
"Save this kind of rhetoric to fool the citizens, and say it in front of me is a waste of time." Sheffield raised his head and spit out the mouthwash. While he was speaking, Rockefeller Jr. came knocking on the door. Edith Rockefeller and Louisa Morgan also came out of the bedroom and sat opposite Morgan Jr. and Rockefeller Jr. As for whether Alice Roosevelt and others were eavesdropping upstairs, no one knew.
In the plan that Morgan Jr. produced, the National Bank was composed of twelve regional reserve banks, business execution agencies, the Federal Reserve Board and the Federal Open Market Committee. Although it was a private banking institution, as a central bank, it had a close relationship with the government.
This is inevitable. Although this national bank is not a state-owned bank but a private bank, it plays the role of the country's central bank and cannot be completely separated from the influence of the federal government.
The main tasks of this bank are to manage and regulate the banking industry, implement monetary policy by buying and selling U.S. Treasury bonds, and maintain the payment system. Although it is a private bank, its responsibilities are no different from those of other countries' central banks.
The authority is the Federal Reserve Board of Governors, located in Washington, D.C. The board can decide the selection and even salary of the presidents of the twelve regional Federal Reserve banks. Their core job is to formulate monetary policy.
"William, what do you think?" Morgan Jr. watched Sheffield read the plan for a long time, exchanged opinions with Rockefeller Jr., and asked.
"Is this your flawless plan? I have a small question, why are the voting rights of the New York Reserve Bank permanent? Just like the seven directors of the Federal Reserve Board?" Sheffield put down the plan that Morgan Jr. thought was flawless and had a general idea. Now it was time to ask for a price.
"It seems very balanced, but in fact it still focuses on the interests of New York." Sheffield shrugged and said, "I think the voting rights of the Dallas Reserve Bank should also be permanent, and there should be no possibility of rotation voting."
"William, in fact, we all understand that the strength of the country's financial system in New York far exceeds that of other cities, even the sum of them. This plan takes care of thousands of regional banks across the country, which is already very fair." Rockefeller Jr. spoke up and explained the reasons.
"Who are the shareholders behind the thousands of regional banks? Everyone knows that there is a lot of room for maneuver. So the so-called thousands of regional banks as equal shareholders is just rhetoric. What really matters is permanent voting rights." Sheffield said unmoved, "I don't care about other cities, but Texas must be like New York and not share rotating voting rights with other places. It must have independent, permanent voting rights."
"This is unfair to other cities!" Morgan frowned. "Boston and Chicago are both cities with strong financial power, but they don't have permanent voting rights."
"It's just like an election, my friend. Texas is the largest state in the continent and the most populous state in the South. We all know that my home state is very strong in terms of resources, and currently it is irreplaceable in terms of oil." Sheffield counted on his fingers, explaining the advantages of Texas one by one.
"This can be adjusted later." Morgan Jr. gave an ambiguous answer.
But this victory transfer routine did not work. Some things can only be done when the Fed is just established. It is almost impossible to change them after the Fed starts operating.
(End of this chapter)
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