Plans For A US Central Bank Discussed In Congress
The Warburg family had it’s roots in Venice, Italy and moved to Germany in the 16th century. In 1798 the M M Warburg Company was founded establishing one of the oldest banks in Europe. In 1895 Paul Warburg became a partner in MM Warburg in Hamburg, Germany. He traveled around the world and involved himself in world finance. After frequent business trips to New York Warburg settled there in 1902 as a partner in Kuhn, Loeb & Company.
In 1908 Nelson Aldrich, Republican senator from Rhode Island, chaired the National Monetary Commission. By 1910 Aldrich consulted Warburg on multiple occasions and invited him and other bankers to a secretive meeting on Jekyll Island in Georgia where the draft of a bill to establish a central bank was developed. In 1912 a bill was put forth in Congress by Virginia representative Carter Glass detailing a Federal Reserve system for the United States basically embracing the ideas of a central bank.
On December 7, 1912 Paul Warburg presented the blueprint for the Federal Reserve System to Congress and to President-Elect Woodrow Wilson. The plan calls for 20 reserve banks under control of a central board.