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1930

Institute for Advanced Study founded. This ivory tower of academia, if ever there was one, was the result of a “synchronous” act of philanthropy. The Institute was underwritten with a gift from Mr. Louis Bamberger and his sister, Mrs. Felix Fuld, under the guidance of the famous educator Abraham Flexner, who originated the concept from which the Institute took its form. The Bambergers originally thought of endowing a dental school, which is probably why they consulted Flexner when they decided that they wanted to give some of their fortune away. Flexner was a high school principal who wrote a report on American Colleges. Based on this report and the recommendation of his brother, a pathologist with connections to existing medical schools, he was chosen by the Carnegie Foundation to do a study of American Medical Education just after the turn of the century. Flexner visited medical schools across the nation on a schedule that barely allowed him a whole day each for the evaluation of some schools. His efforts were closely linked with the American Medical Association, who provided resources. Although purporting to be objective, the Report actually established guidelines that were designed to sanction orthodox medical schools and condemn homeopathic ones and alternative therapies. In short, it was biased toward allopathy and the AMA.

The New York Herald Tribune of February 18, 1930, quoted by Congressman Louis McFadden in the House on February 26, 1930, said, “One of Belgium’s two directors on the Bank for International Settlements will be Emile Francqui of the Societe Generale, a member of both the Young and Dawes Plan Committees. The board of directors of the international bank will have no more colorful character than Emile Francqui, former Minister of Finance, veteran of the Congo and China . . . he is rated as the richest man in Belgium, and among the twelve richest men in Europe.”

Despite his prominence, The New York Times Index mentions Francqui only a few times during two decades before his death. On October 3, 1931,The New York Times quoted Le Peuple of Brussels that Francqui would visit the United States. “As a friend of President Hoover, Monsieur Francqui will not fail to pay a visit to the President.” On October 30, 1931, The New York Times reported this visit with the headline, “Hoover-Francqui Talk was Unofficial“. “It was stated that Mr. Francqui spent Tuesday night as a personal guest of the President, and that they talked of world financial problems in general, strictly unofficial. Mr. Francqui was an associate of President Hoover during the latters ministrations in Belgium during the war. Their visit had no official significance. Mr. Francqui is a private citizen and not engaged in any official mission.” No reference is made to the Hoover-Francqui business associations which were the subject of huge lawsuits in London before WW I.

The Francqui visit probably involved Hoover’s Moratorium on German War Debts, which stunned the financial world. On December 15, 1931, Chairman McFadden informed the House of a dispatch in the Public Ledger of Philadelphia, October 24, 1931, “GERMAN REVEALS HOOVER’S SECRET. The American President was in intimate negotiations with the German government regarding a year’s debt holiday as early as December, 1930.” McFadden continued, “Behind the Hoover announcement there were many months of hurried and furtive preparations both in Germany and in Wall Street offices of German bankers. Germany, like a sponge, had to be saturated with American money. Mr. Hoover himself had to be elected, because this scheme began before he became President. If the German international bankers of Wall Street–that is Kuhn Loeb Company, J. & W. Seligman, Paul Warburg, J. Henry Schroder–and their satellites had not had this job waiting to be done, Herbert Hoover would never have been elected President of the United States. The election of Mr. Hoover to the Presidency was through the influence of the Warburg Brothers, directors of the great bank of Kuhn Loeb Company, who carried the cost of his election. In exchange for this collaboration Mr. Hoover promised to impose the moratorium of German debts. Hoover sought to exempt Kreuger’s loan to Germany of $125 million from the operation of the Hoover Moratorium. The nature of Kreuger’s swindle was known here in January when he visited his friend, Mr. Hoover, in the White House.” (Not only did Hoover entertain Francqui in the White House, but also Ivar Kreuger, the most famous swindler of the twentieth century.)

Herbert Hoover appoints one of the old London crowd, Eugene Meyer, as Governor of the Federal Reserve Board. Meyer’s father had been one of the partners of Lazard Freres of Paris, and Lazard Brothers of London. Meyer, with Baruch, had been one of the most powerful men in the United States during World War I, a member of the famous Triumvirate which exercised unequalled power; Meyer as Chairman of the War Finance Corporation, Bernard Baruch as Chairman of the War Industries Board, and Paul Warburg as Governor of the Federal Reserve System.

Chairman Louis McFadden of the House Banking and Currency Committee, a longtime critic of Eugene Meyer, was quoted in The New York Times, December 17, 1930, as having made a speech on the floor of the House attacking Hoover’s appointment of Meyer, and charging that “He 74 represents the Rothschild interest and is liaison officer between the French Government and J.P. Morgan.” On December 18, The Times reported that “Herbert Hoover is deeply concerned” and that McFadden’s speech was “an unfortunate occurrence.” On December 20, The Times commented on the editorial page, under the headline, “McFadden Again”, “The speech ought to insure the Senate ratification of Mr. Meyer as head of the Federal Reserve. The speech was incoherent, as Mr. McFadden’s speeches usually are.” As The Times predicted, Meyer was duly approved by the Senate.

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