Jolie Tea and the History of the Building

Some Great History and a cup of tea…

Photo of Brown Building on Essex Street in Salem, MAAt 105 Essex Street this building was built in 1808-1809. Over the years it has been called the Brown, Merchant’s, and Union Building. It is the oldest mixed used building in Salem. Over the years the building has seen Sophia’s Antiques,  The Merchant Bank, and William Stearn’s Apothecary Store. It has also housed schools, religious groups, and professionals in its offices. John Watson was one of the many tenants that had a school in this building. He was the Parker Brothers’ great grandfather. Over the years the most famous personage to live here outside of Sophia Hawthorne was Congressman and once Secretary of the Navy Benjamin Crowninshield.

Merchant Bank of Salem Ma locationsHe was to open his Merchant Bank in the same location as Jolie Tea on the corner of Union and Essex Streets. The lease was $130 a year. The first deposit of specie in their bank was $54,939.90, $23,841 notes printed for their bank, and $20,279.86 of other bank notes. Once they opened those other banks had to redeem their notes and bring their gold and silver to the new bank to exchange for their bills. They opened their doors on October 11th, 1811.

Painting of Benjamin CrowninshieldAlso in this year its founder Crowninshield will build his new mansion which is now the Brookhouse Home for Aged Women.  Both were paid for by British agents who worked with several in Salem to create a new National Bank  after the War of 1812. Many think that the war was brought on for America to incur a war debt forcing them to create a new national bank in which they can sell the majority of the shares to English bankers to handle the debt. 1811 was the year in which The First National Bank of the United States lost its charter. Benjamin Crowninshield would become a director in The Second Bank of the United States after the War in 1816 along with Associate Joseph Story, Senator Nathaniel Silsbee, Stephen White, Joseph White, Thomas Perkins, and Daniel Webster who would become major shareholders in the new bank or directors. All of them received bribes from British agents as well in 1811 and built or bought new mansions.

Photo of Merchant Bank of Salem Ma Bank NotesBenjamin Crowninshield was a State Representative from 1808, 1809, 1810, 1811, and 1821. He served as State Senator 1812, 1822, and 1823. In 1814 he became Secretary of the Navy during the War of 1812.  Later he would become a Member of Congress from 1823-1831.  He would serve as director of The Second Bank of the United States in Boston and Philadelphia.

After Benjamin Crowninshield stepped down as president of the Merchant’s Bank to become Secretary of the Navy, Associate Superior Court Justice Joseph Story becomes president. Story was also a director of The Second National Bank of the United States in Philadelphia and Boston. Story spent 33 years in the Supreme Court and has had the most impact of the Constitutions interpretation till the modern day. He worked tirelessly with Senator Daniel Webster to protect the national bank from all contenders. Story and Webster were agents for Stephen White who was behind the election and assassination of President William Harrison.

The Merchant Bank operated in this location till 1831 when they moved to the Manning Building which was where the offices are for the Peabody Essex Museum is now in the Bowker Block. In time they would also relocate into the corner of Essex and Washington streets in the Northy Building where Army Barracks is now and then the old Asiatic Building which now houses the new restaurant The Ledger.

Engraving of Sophia Peabody HawthorneNow back to Sophia. Sophia was born in this building. During her early years she played with the Hathorne  family, including Nathaniel,  till her parents moved her away. Also her mother taught school in this building. After many years of separation Sophia marries Nathaniel in 1842.

Oh by the way, the tunnel entering this building is just under the backroom of Jolie Tea. Now the furnace built just inside of the tunnel entrance is supplied by air within the tunnel.

Brown Building tunnel in Salem MaSo come and sit down at Jolie Tea and read Salem Secret Underground:The History of the Tunnels in the City and Sub Rosa over a delicious cup of tea (Maybe a scone too…) to find out more about Benjamin Crowninshield, our nation’s banking history, the tunnels in the city, and other amazing ways Salem, MA has shaped American history.

Cover to the book Sub Rosa which is about Tunnels in Salem and those who built them.

Tecumseh’s Curse?

Background

Log-Cabin

It all started with the election of William Harrison against Martin Van Buren. The election was the first to use propaganda, slogans, and songs. Two slogans have made it into everyday speech. ‘Keep that ball rolling’ was one of them. Harrison supporters made a large leather and tin ball plastered with slogans they would roll from city to city saying… Another is Booze. Edmund G. Booz had made a whiskey bottle shaped like a log cabin that Harrison supporters handed out. At 67 Harrison was the oldest president ever to be elected until Reagan who was 71. It was said of him, “Give him a barrel of hard cider, and … a pension of two thousand [dollars] a year … and … he will sit the remainder of his days in his log cabin.” So the Whig’s spun it to their side and commissioned E.G. Booze to make the bottles.

“Tippee Canoe and Tyler Too,” was the campaign slogan. Harrison was riding on the fame of the battle at Tippee Canoe where the Indian leader who was called the Prophet was killed. The Prophet, Tenskwatawa, was the brother of Tecumseh. It was Richard Mentor Johnson who was running against Harrison as Van Buren’s Vice President, before he was dropped form the ticket, who many believed was the man who killed Tecumseh. Johnson’s common law wife was Julia Chinn, a slave which he was brought up with. She died 7 years before the election, but the country was not ready for one who was proud of his interracial wife. James Knox Polk would also be dropped from the Van Buren ticket. In the end Van Buren ran with no Vice President. Even though many thought Johnson killed Tecumseh, “Rumpsey Dumpsey, Rumpsey Dumpsey, Colonel Johnson killed Tecumseh”, Harrison would be the first to befall Tecumseh’s Curse.

William Harrison started the election as an Anti-Masonic Party candidate with Daniel Webster. The Anti-Mason Party was absorbed in the campaign by the Whigs and Webster was supplanted by Tyler. Webster was Salem’s candidate with the support of Stephen White who had a personal grudge against Jackson for not renewing the charter on the Second Bank of the United States. White ran Associate Superior Court Justice Joseph White and Webster by the purse strings through a series of political marriages. Story and Webster were directors in the bank. The Anti-Masonic Party was anti-Jackson and the Whigs were even more anti-Jackson who absorbed the party.  Henry Clay founded the party based on English supporters of the Bank of England for the sole purpose of restoring a new national bank after Jackson destroyed the last one.

The Curse

Appletons'_Tecumseh

Tecumseh in his native tongue meant shooting star. Then in 1811 during the War of 1812 a great comet was seen which rose Tecumseh to stardom literally. He was to bring the largest confederacy of natives together that had a training camp at Tippee Canoe. After a defeat they were forced to make ties with the British. During this time Tecumseh led the battle of Detroit by fooling the Americans that he had a force 3 times the size they did by circling the same troops on the fort. At the Battle of the Thames he would be killed, it is believed for they never confirmed his remains or the person who would have killed him.

So what is with his curse? William Harrison, was the oldest president elected at the time, was the first to die from the curse and the current oldest president ever elected was Ronald Reagan who was the last. Harrison died a month in office and Reagan survived 2 terms after a failed assassination. So let’s start closer to the present with the history of the curse.

John Warnock Hinckley Jr. was released on September 10th 2016 from St. Elizabeth in Washington D.C. Garfield’s assassin, Charles Julius Guiteau, and Andrew Jackson’s attempted assassin Richard Lawrence were interned here as well. Lawrence tried killing Jackson in support of the Second National Bank of the United States. Garfield was a supporter of the Gold Standard and investigated the Black Friday Gold Panic Scandal, could someone delude Guiteau to serve their purposes? St. Elizabeth was founded by Dr. Miller who was present at William Harrison’s death of typhoid. For most of its history it has served as the mental asylum for military officers. Augustus Owsley Stanley III was also placed in St. Elizabeth who was The Beatles and Ken Kesey LSD dealer. The hospital will in the near future become the new headquarters for Homeland Defense which came about after September 11th. Hinckley would have been the last assassin to be involved in the curse, but he failed.

The full list of presidents who befell Tecumseh’s Curse:

William Harrison  Poisoned March 26th                                             died April 4th 1841

Zachary Taylor Poisoned July 4th                                                         died July 9th 1850

Abraham Lincoln Shot Good Friday April 14th                                 died April 15th 1865 ?

James A. Garfield shot July 2nd                                                            died September 19th 1881

William McKinley shot September 6th                                               died September 14th 1901

Warren G. Harding Poisoned, Suicide, or Heart Attack                 died August 2nd 1923

Franklin D. Roosevelt Cerebral Hemorrhage March 29th              died April 12th 1945

John F. Kennedy November 26th                                                         Shot dead

Ronald Reagan Shot March 30th 1981                                                Survived

Reagan brought the curse to an end. At the time Russia was sending submarines to invade Poland in response to their Solidarity Movement. Was Reagan thinking of supporting the Poles? The Greatest American Hero just premiered with the main character Ralph Hinckley, later renamed Ralph Hanley. Around the assassination attempt Neil Bush of Standard Oil and Winston Partners ate dinner with Scott Hinckley of Vanderbilt Oil in Denver and brother to the would be assassin. The Hinckleys and Bushs grew up together in Texas.

Another look at the list:

Five were shot.

Four killed by Doctors.

Four were dying in April.

Three were hospitalized in March.

Three possibly poisoned.

Two hospitalized in July.

Two died in September.

Now it all started with Stephen White, Daniel Webster, and Henry Clay’s plan of assassinating their political candidate William Harrison for his refusal of creating a new national bank. After Stephen White’s death in the same year of Harrison, Clay and Webster would go on and kill Zachary Taylor making the second to befall Tecumseh’s Curse. They will also murder James Knox Polk 3 months after he leaves office and 13 month before Taylor’s assassination. So technically Polk does not count in the curse. Polk was murdered for supporting Jackson as Speaker of the House in his removal of the Second Bank of the United States and making an Independent Treasury while he served as president.

Along the way William Harrison lost a child 2 weeks before he became president; Webster, and Clay who did not trust each other would lose several family members mysteriously; Clay and Webster would both die in 1852 without seeing the Third Bank of the United States created.  So many had died and the bank would not be created till 1913.

Was Anyone Else Suspicious?

Has anyone in our century questioned Harrison, Polk, or Taylor’s death? Clara Rising, a former University of Florida professor was studying the life of Zachary Taylor. Upon doing so she began questioning his death. Upon further study she had enough questions and historical evidence to contact Taylor’s closest living relative, John McIlhenny, to ask for his remains to be exhumed.

This would not be the first president to be exhumed. The coffin of Abraham Lincoln, another who suffered Tecumseh’s Curse, was opened 4 times. Most recently on Sept. 26, 1901 to confirm that it contained his remains. Robert Todd Lincoln would be at his father’s death and also present at Garfield’s assassination. Abraham Lincoln was shot on Good Friday…That is a totally different story about his and Booth’s survival…

Zachary Taylor was exhumed on January 17th 1991 with officials, a new flag for his coffin, and 20 onlookers. Some present were other relatives of the dead president. Louise LeBourgeois who was observing was his great-great-great-great-granddaughter.

Rising was not the first to bring his death into debate. In 1978, Hamilton Smith based his assassination theory on the timing of drugs, the lack of confirmed cholera or Typhoid outbreaks, and other material. Also after Lincoln’s death it was widely mentioned he was assassinated just like Taylor.

So that is the skippy on Tecumseh’s Curse…

Sub Rosa Book Cover

To find out more read Sub Rosa and learn more about this and other amazing ways how Salem MA shaped American History up to the present. Advance Readers copies for sale on Amazon.com, Remember Salem, and Jolie Tea.

Sub Rosa Coming to Remember Salem!

Harry Potter, Game of Thrones, Dr. Who, Ghosts, and Sub Rosa…

The book Sub Rosa is sold at Remember Salem the harry Potter Shop in Salem, MA

The new smash hit sequel to Salem Secret Underground, the book everyone digs, is coming to Remember Salem. Sub Rosa will be on the shelves of this magical themed store that showcases the products from Harry Potter, Dr. Who, and Game of Thrones in Salem MA. Many people come from all over the world to find the magic they expected to find in Disneyland, but were left disappointed.  After much hunting through the various witch shops in Salem, hopefully your feet will magically lead you here. The store is probably the only place in Salem that ties you directly into that feeling you’re looking for.  Because once you enter this attraction you walk right into a fairy tale. Death Eater hoods, a life size Dobby, a Goblet of Fire, Nimbus 2000, and many other Harry Potter props decorate the walls, which are all for sale! If you are real lucky you might be able to peek your head in and see the Great Hall in the backroom…

The Wizard Kevin Wynot in his wand shop.

Then next door is Wynott Wands. This is real magic. The shop is what Olivander’s was trying to capture. This is the real deal. In here you will find what Disney could never capture.

Wynot Wand shop's shelves of magical wandsWands are hand turned in the basement and some even have magical cores. A true Victorian wand emporium. And your benefactor is Mr. Wynott, who is from an ancient Salem family.

Nearby in Salem, on an ancient land came the magic powder to make the most famous wands of all, the original  #2 pencils! Joseph Dixon would get his black lead (graphite) from land on the ancient Wyman Mills property to make his famous pencils J.K. Rowling used while writing her Harry Potter series. Also the famous London banker George Peabody before moving across the pond would sell these magic wands for him. These wands were brandished to create Alice in Wonderland, The Wizard of Oz, and many other tales…

Wynott Mills and Salem Lead Works the property lead was obtained from to make the first Dixon #2 pencil.

Wynott’s Mill where magic graphite powder was obtained for Dixon’s #2 Pencils.

Plus both properties are haunted. The basement of the Wynott Wands holds two trapped souls.  The store owner tells tales about the two ghost. Siblings, siblings who died in a fire that ravaged parts of Essex and Liberty Streets. A Sister and her large autistic brother. The sister  has been the cause of a few women’s mental breakdowns and the brother has flipped a desk and thrown ceiling tiles to the floor. Then next door a kindly old man can be seen from time to time with his ghost cat just putzing through. If you’re lucky  you might catch Tim Maguire, the stores’ owner and guest on Ghost Hunters. Just ask him and he may bring you on a paranormal investigation of his properties…

Historic image of the building Wynott Wands is in.

Previous to the wand shop, the location serviced as the home of many businesses in Salem including a bakery and hair salon that would give corpses their last haircut before their internment.  Also running in front of the shop is one of the many tunnel extensions leading from the coast that leaks the energy of a water undine that is fed off the ghosts under the wand shop. The ghosts provoke the needed emotions that the Undine feeds off of from the living.

Joseph White bought this house in 1811 which would be the house he was murdered in during the year 1830. This is the mansion from the game Clue.

Then across the street is the mansion that is the inspiration for the board design for the game Clue. In 1830 Captain Joseph White planned an elaborate scheme to exact revenge on his two business partners through his own death.  He plotted for his nephew to implement the murder and to pin the crime on the old man’s business partner’s sons and heirs. After the success of this murder, the nephew teams up with one of the the most powerful senators, Daniel Webster, in the country to assassinate a president and get away with it!

The inspiration for the Miskatonic Institute.

To the left of Captain White’s mansion, a home he bought after being bribed by British agents to restore a new national bank, is the Essex Institute. H.P. lovecraft rewrote their history in many of his stories. He renamed the ancient museum the Miskatonic Institute.

Sub Rosa Book Cover

 

To find out more about the murder that inspire the game Clue, the #2 pencil, H.P. Lovecraft in Salem, our nation’s banking history, and unaccounted Presidential Murders; read Sub Rosa which will have Advance Reader Copies on sale at Remember Salem next week! Also on sale there is Salem Secret Underground: The History of the Tunnels in the City. Pick up a copy as well; you won’t regret it!

Salem Smugglers’ Tour in Full Swing for the Season!!!

The Tour Based on Salem Secret Underground and the New Hit Book Sub Rosa…

Chris Dowgin tour guide of Salem Smugglers' Tour.

Your Guide and Author Chris Dowgin.

Salem Smugglers’ begins its Spring season for 2017 with a tour of 40 on Cinco de Mayo.  We are off to a good start as long as the rain holds out… Come on the only tour that highlights the inventions, politicians, pirates, bankers, and the tunnels that shaped American history. Tales of the murder that inspired the game Clue, 3 unaccounted presidential assassinations, the attempted creation of the third bank of the United States, George Peabody the founder of JP Morgan and his cycle of economic collapses that happen every 20 years, tales of the tunnels, the history of the biggest opium dealer in the country, and much more!

So before you come on our tour, read Salem Secret Underground: The History of the Tunnels in the City and Sub Rosa which is written by your tour guide Chris Dowgin. At the end of the tour, he would love to sign your book and give you a personalized doodle inside the front cover. Books available in many locations in Salem, Barnes & Noble, and Amazon.com.

So book your tour today at the Salem Smugglers’ Tour or at 192 Essex Street at Angelica of the Angels.

More than Witches!!!

The Men Bribed in 1811 by the British to Build the Second Bank of the United States and Their New Manions

Things Never Change…

First National Bank of the united States Boston Branch.

First National Bank Boston Branch built by Charles Bulfinch.

The First National Bank of the United States charter was let lapse in 1811. The bank Alexander Hamilton fought for proved to be only a boon for the British. For they might of lost the Revolutionary War, Hamilton sold 70% of our treasury to them in shares of our new national bank. Which is the reason the bank was let to dissolve as its charter expired. In the same year of the closing of the Old Witch Gaol, the groundbreaking of the new prison, and the second Witchcraft Hysteria agents of Britain entered Salem and bribed Thomas H. Perkins, Senator Nathaniel Silsbee, the head of the Massachusetts Whig Party Stephen White, Senator Daniel Webster, Associate Superior Court Justice Joseph Story, and Joseph White to restore a new national bank so England can control our treasury once more. All of these men will erect or build new mansions that year.

The Rothschilds proclaimed that their investments in the First National Bank of the United States to be restored or they would bring us to a most disastrous war to force us to create a new national bank to handle the war debt, in which they did. A year after the bank’s closure the War of 1812 started. After the war in 1816 we chartered the Second Bank of the United States. Silsbee, Perkins, Crowninshield, Webster and Story would join Salem’s William Gray  (who served in the first bank) as directors in the new bank’s Boston branch. Story and Silsbee would be directors in  the main branch in Philadelphia as well.

Below are the faces and mansions they built:

Benjamin Crowninshield a mjor figure in th enovel Sub Rosa.

Benjamin Crowninshield

Benjamin Crowninshield House

Opium dealer Thomas Perkins featured in th ebook Sub Rosa.

Opium Dealer Thomas H. Perkins. Went from slave trader to opium dealer.

Thomas Perkins House at 7 Ash Street.

Possibly Captain Joseph White or Captain Joseph “Jr.” White his nephew who preceded him in death.

Joseph White Murder Salem MA

Captain Joseph White being murdered by his nephew Steven White in 1830.

Joseph White bought this house in 1811 which would be the house he was murdered in during the year 1830. This is the mansion from the game Clue.

Senator Nathaniel Silsbee.

Nathaniel Silsbee House.

Daniel Webster a character in Sub Rosa.

Daniel Webster. His son marries Stephen White’s daughter and his brother-in-law marries the other daughter. Webster prosecuted innocent men for Stephen White to get away with murdering his uncle. The two would go on to assassinate President Harrison.

Joseph Story Smuggler in Salem MA

The man who shaped the Constitution, Associate Supreme Court Justice Joseph Story. Brother-in-law to Stephen White. He is the most responsible for the interpretation of the Constitution we follow.

Judge Joseph story a character in the book Sub Rosa.

Judge Joseph Story House.

Ground was broken in 1811 for the new jail that was to replace the one from the Witchcraft Hysteria. None of the above would ever spend time here besides Stephen White who was on the state prison commission.

The Second Bank of the United States would lose its charter in 1836. In 1833 Stephen White was visited by President Jackson at his home off the Common during the Bank Wars. Jackson visited the banker behind Webster, the country’s most powerful senator, and explained to him he was to lose his shares in the bank when the charter lapsed in 1836 because once again the British had over 70% of the shares in the bank. Soon after leaving White’s house he would suffer a failed assassination attempt in name of saving the bank. Secretary of State James Knox Polk would survive a typhoid poisoning, but will later succumb to a similar poisoning 3 months after leaving the White House. Henry Clay, Daniel Webster, and Stephen White would later promote William Harrison for president and poison him by typhoid a month into office for refusing to create a third national bank. Stephen White will die a few months afterward leaving Clay and Webster to poison Polk and once again raise another to president to create the third bank and poison him when he refuses. Zachary Taylor,  the only Whig president after Harrison, will die 16 months into office of typhoid. During his successor Millard Fillmore’s term Webster and Clay will both die in 1852 without ever seeing a third national bank created. The Whig Party that Clay, White, and Webster created to build the third national bank will fold after their deaths.

Sub Rosa Book CoverTo find out more about our nation’s banking history, how the Federal Reserve works, and the presidential assassinations in hope of creating a third national bank read Sub Rosa. Advance Reader Copies available on Amazon.com and a Jolie Tea in Salem MA

. Official release is July 4th 2017.

Jolie Tea in Salem and a Good Read

Advance Reader Copies of Sub Rosa for Sale…

Sub Rosa Book Cover

Enjoy reading over a cup of tea at Jolie Tea in Salem, MA. They are the first shop to sell these ARCs. What is even more amazing than their 200+ collection of fine teas, is that the building they are in is connected to the tunnels of Salem. Secretary of the Navy Benjamin Crowninshield had his Merchant Bank in the building. He also was one of many politicians from Salem who was a director of the Second Bank of the United States Boston Branch. Crowninshield was one of many in Salem in 1811 that was bribed by the British to work to create the bank which would sell 70% of its shares to the British after the War of 1812.  Across the Common you can also see Senator Nathaniel Silsbee’s house who also was bribed and became a director in the bank.  In this building Sophia Peabody had lived for a period of time when Nathaniel Hawthorne lived down the street. Hawthorne’s uncle had a stagecoach company with offices in the building or next door.

As rich as the tea at Jolie is the history connected to the building. Looking over your tea cup you can see through the window the Salem Common that was developed to hide massive amounts of tunnel dirt in. It is the same location the first National Guard unit was formed on. Their descendants dug the tunnels and hid the dirt. Just to the left is the historic Hawthorne Hotel. On that property was originally the Franklin Building owned by Thomas Perkins.

Salem Common

The Salem Common with Nathaniel Silsbee House in the distance.

Perkins had paid Charles Bulfinch to build the Bunker Hill Monument, Mass General Hospital, Perkins School for the Blind, and India Wharf. Bulfinch was the one who designed the homes connected to the tunnels in Salem and Boston and the idea of hiding tunnel dirt in rivers, ponds, and marshland. Bulfinch would be the one who built all of the tunnels in Washington D.C. Perkins is the drug dealer who started the Forbes family off to fortune by selling opium to China. His empire was sold to Sturgis Russell who’s cousin founded Skull & Bones. William Russell will purchase property off Perkins in New Haven, Conn. to build the crypt on.

Archer Building that sat previous on this location the Hawthorne Hoptel is on now.

The Franklin Building once stood on the lot the Hawthorne Hotel occupies now. In the closest corner of the building the Parker Brothers had their first toy store.

Also the window seat looks out upon the parking lot which at one time was the location of the Bently-Crowninshield House featured in H.P. Lovecraft’s Thing on the Doorstep. The story details Daniel Upton’s account of the tragedy that befell Edward Derby. Edward Derby marries a woman who becomes possessed by her dead evil father who in time possess Derby’s body after he was pushed into his wife’s body when he was in Arkham Asylum.  Left for dead the wife’s body limps to Upton’s doorstep informing him that it was in fact Derby who inhabits his wife’s decaying body as he becomes the thing on the doorstep. Arkham Asylum is the same asylum that the Batman universe uses. The Bently-Crowninshield  House has since been removed to in front of the Hawthorne.

The Bently-Crowninshield House now on Washington Square and Essex Street. The home featured in the “Thing on the Doorstep.”

Now the window behind you over looks the holy parking lot. Once the location of a Jewish temple. So if you are ever chased by any of Salem’s vampires. A variety called psychic vampires. The type of person who can speak at you for an hour and drain your soul and time away. If you are ever confronted in Salem, MA, it is good to know where the consecrated land is…

The Jewish Temple now in the auxiliary parking lot for the Hawthorne Hotel. You can also see the Bently-Crowninshield House to the left in its original position when Lovecraft wrote the story.

Below are images of Benjamin Crowninshield, Thomas Perkins, Jolie Tea Building, Merchant Bank notes, and the tunnels….

The Brown Building Which houses Jolie Tea.

Benjamin Crowninshield

Merchant Bank Notes

Sealed tunnel under Jolie Tea. Notice the furnace drawing air from beyond the sealed entrance from the tunnel.

Opium Dealer Thomas H. Perkins. Went from slave trader to opium dealer.

Skull & Bones crypt built on Thomas Perkins old lot.

So head over to Jolie Tea and experience some history from your window seat over one of the 200+ teas they offer. They also sell Howqua Tea named after the man that Perkins made the wealthiest man in the world by selling his opium to. Your welcome to read a store copy of Salem Secret Underground:The History of the Tunnels in the City or its sequel Sub Rosa while at Jolie or buy a copy to bring home with you! They are both filled with the story of the tunnels in Salem and how her smugglers’ shaped American history…

 

So How Does the Federal Reserve Work

George Peabody in Salem MA

How is Your Money Made….

 Do You Know Jack ….?

  The U.S. Treasury looks for loans by selling Treasury Bonds Bills, Notes, and Securities. They sell these to primary dealers. A primary dealer is a bank or securities broker-dealer who can  trade directly with the Federal Reserve after purchasing Treasury Bonds or Securities or sell them to the public. They also make bids or offers on open market operations and provide information to the Fed’s open market trading desk. They consult with U.S. Treasury and the Fed about the budget deficit and implementing monetary policy. Primary dealers can work at the Treasury because of their expertise in the government debt markets, but the Federal Reserve avoids a similar revolving door policy.

  The trading between primary dealers, called inter-dealer trading.  Located on floors 101 to 105 of One World Trade Center was Cantor Fitzgerald, the single largest inter-dealer broker, who alone controlled 25% of the volume in securities. On 9-11 $500 billion in repos and $80 billion in securities had been traded but the settlement instructions were burned Fed regulators worked many long, over-time hours to accomplish to salvage records of these sales.

   All of the top ten dealers in the foreign exchange market are also primary dealers, and between them account for almost 73% of foreign exchange trading volume. Who are the primary dealers whose job is to distribute U.S. Debt? Daiwa Securities and Mizuho Securities distribute the debt to Japanese buyers. BNP Paribas, Barclays, Deutsche Bank, and RBS Greenwich Capital (a division of the Royal Bank of Scotland) distribute the debt to European buyers. Goldman Sachs, and Citigroup account for many American buyers. Most of these firms compete internationally and in all major financial centers. Citigroup was First City National Bank which was influential in the early formation of the Federal Reserve during the period of Stillman and Fifi’s divorce years. After the 2008 Financial Collapse the Federal Reserve set up the Primary Dealers Credit Facility (PDCF), whereby primary dealers could borrow at the Fed’s discount window using several forms of collateral including mortgage-backed loans.

  The Primary Dealers today are:

  • Bank of Nova Scotia, New York Agency
  • BMO Capital Markets Corp.
  • BNP Paribas Securities Corp.
  • Barclays Capital Inc.
  • Cantor Fitzgerald & Co.
  • Citigroup Global Markets Inc.
  • Credit Suisse Securities (USA) LLC
  • Daiwa Capital Markets America Inc.
  • Deutsche Bank Securities Inc.
  • Goldman, Sachs & Co.
  • HSBC Securities (USA) Inc.
  • Jefferies LLC
  • J.P. Morgan Securities LLC
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated
  • Mizuho Securities USA Inc.
  • Morgan Stanley & Co. LLC
  • Nomura Securities International, Inc.
  • RBC Capital Markets, LLC
  • RBS Securities Inc.
  • SG Americas Securities, LLC
  • TD Securities (USA) LLC
  • UBS Securities LLC
  • Wells Fargo Securities LLC

   J.P. Morgan and Morgan Stanley & Co. continue George Peabody’s tradition today selling state securities abroad. They also follow his steps to make a perfect panic. Both corporations were fined for orchestrating the 2008 Financial Scandal among other crimes recently. The largest fine only equaled about 13% what they could make in one year.

  The Bank of Nova Scotia is rumored to have been robbed after September 11th when World Trade Center Building 4 was compromised. The long tunnel that was converted over from a PATH way that serves as its entrance was in the film Die Hard 3. Although in the film it was the Federal Reserve NY branch and New York City Water Tunnel #3.

  Wells Fargo is owned by Kuhn, Loeb & Co. and linked by the Schiffs  to N.M. Rothschild & Sons.

  Who prints the Federal Reserve notes? Crane & Company. Winthrop Murray Crane was an advisor to Presidents Theodore Roosevelt and William Howard Taft, and served as a political mentor to Calvin Coolidge who gave his firm the contract.

  Stephen Crane was the first in the Crane family to make paper. “The Liberty Paper Mill” opened  in 1770. They sold currency-type paper to engraver Paul Revere, who printed the American Colonies’ first paper money.  Crane embed parallel silk threads in banknote paper to denominate notes and prevent counterfeiting in 1844. In 1879, Crane grew when Winthrop M. Crane won a contract to deliver U.S. currency paper to the Bureau of Engraving and Printing in Washington, D.C. In 1922, Crane & Co. incorporated, with Frederick G. Crane elected as president. Dixon also came up with an anti counterfeiting practice.

  What is the discount window and how do banks profit?

  When the government needs money for their budget they print Treasury Bonds, Bills, and Notes. The Primary Dealers buy them and sell them to the Federal Reserve, other nations, and large corporations.  At other times the Federal Reserve sells the securities to the Primary Dealers.  The Primary Dealers buy them from Treasury Automated Auction Processing System (TAAPS).  The dealers who bid on the largest amount of the debt with the lowest yield wins the portion they bid on. They then sell these to the Federal Reserve at a higher yield.

   Then the Federal Reserve prints new money and digitally increase their accounts. They then lend this money to banks throughout the nation at a higher yield. On top of that they hold 10% of all the money they sell to the banks. Example…The Federal Reserve prints up $10 billion in new bills, and they credit an additional $90 billion in readily liquefiable accounts. So you think it stops there with $100 billion, but you would be wrong…

  Now all of that extra $100 billion enters banking reserves. So your bank borrows a million. They now have $900,000 to lend out. Ten percent of what they borrowed is held by the fed who pays them 2.5% interest. Yes the Fed pays your bank 2.5% interest for borrowing money. Now your bank makes more money that enters circulation. They can lend out $10 million. So if they issue you a loan and you make a purchase, the buyer receives the money from the bank and now it enters circulation when they make purchases. So, in a fractional reserve banking system, like the Fed, new loans actually create even more new money. With a legally reserve ratio of 10%, the new $100 billion in bank reserves could potentially result in a nominal monetary increase of $1 trillion by all the banks lending out 10 times the money they borrowed.

  Then you have inflation. It only starts with the government spending more than they receive in taxes and other funds. They are like the fleas on Norwegian Brown Mice that bite you, the Federal Reserve and the bankers are the ones who really spread the plague.

  It is a slight of hand. The government didn’t raise your taxes, it just stripped your buying power of every dollar. Every year it gives you an invisible pay cut. Crafty fingers are no longer needed to pick pocket you.

   So who owns the debt? Well there is public debt and intergovernmental holdings. On November 7, 2016, debt held by the public was $14.3 trillion or about 76% of the previous 12 months of GDP.  Of that debt 55% is held by state and local pensions and mutual funds. The remaining 24% is held by foreign government and investors. $1.5 Trillion is held by China and $1.25 Trillion is held by Japan. Third is Ireland who owns $271 million. Go figure the Cayman Islands is fourth. Brazil is Fifth and the United Kingdom is 8th.

  The Bank of England’s plan escaped them? The nation they fought during the Opium War usurp them in holdings of our national bank.  Well Americans sold a lot of Opium to them too, but in truth it probably was the old New England shipping families and bankers who continued their trade of shipping goods over manufacturing that have did us in.

  The yield on 10 year Treasury Notes set the Federal Fund Rate that sets the PRI or Primary Rate Interest for banks. Also there is overnight and 9 month lending through the Discount Window. Depending on a bank’s liquidity and trust they can borrow at the primary or secondary credit rate. The Primary Rate is 1% higher than the Federal Fund Rate. A bank borrows from the Federal Reserve overnight to remain liquid during internal or external disturbances like transferring money between their internal accounts and external accounts with other banks. So say a bank borrows $10 million overnight the Federal Reserve can create $100 million more until the debt is paid.  Also banks can borrow at a seasonal rate which is closer to the Federal Fund Rate for a week or 30 days. Plus the Discount Window can act as lender of last resort during emergencies to prevent bank runs.

   Repos? The Federal Reserve buys $1 billion repo to inject reserves today from a bank to pay back tomorrow. Under such arrangement the bank promises to buy it back. So imagine they borrow $1 Billion, another one tomorrow and an additional one the next day, $3 billion will have been injected, but $2 billion will have expired by the third day.  Bank reserves are only $1 billion above previous levels, since the first repurchase agreement expired on the second day, the second one expired on the third day and so on.

  So in short that is how money is created out of thin air.

To find out more and other fabulous stories about how Salem, MA shaped American History read Sub Rosa by Christopher Jon Luke Dowgin published by Salem House Press.