Did you know that Congress let JP Morgan manufacture $200M of his completely reserve-less, private money and allowed him to buy things with it, pay for services with it and send some of it to his branch banks to lend out at interest?
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The Full Story
J.P. Morgan creates money through loans
The 1907 bank run quickly turned into a series of bank failures and this gave J.P. Morgan, and several other of the richest men in America, an opportunity to loan out money to the government at interest. The Central Bank did not yet exist.
J.P. Morgan, along with John D. Rockefeller and Treasury Secretary George Cortelyou, provided liquidity in the form of tens of millions of dollars in loans and bank deposits to several New York banks and trusts.
At the same time, Morgan convinced New York Banks to give loans to stock brokerages in order to maintain stock market liquidity and keep the New York Stock Exchange open.
The son of a successful financier, John Pierpont Morgan reorganized several major railroads and financed industrial consolidations that formed the United States Steel, International Harvester, and General Electric corporations.
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