Morgan lent some gold to the Federal Treasury

One of the interesting facts about J. P. Morgan is that he lent some gold to the Federal Treasury. The Federal Treasury was having major issues in 1895. It was practically empty! JP Morgan and associates of the Rothschild family loaned the US government 3.5 million ounces of gold in exchange for a 30-year bond. This fact demonstrates how the US economy has always been supported by huge corporations.

Amid the Panic of 1893, by 1895, the Federal Treasury was almost out of gold. Because of a plan to issue bonds to the general people to weather the crisis, Morgan's proposal for the federal government to purchase gold from his institutions and Europe was rejected. Morgan asked to meet with Grover Cleveland since he was convinced there would not be enough time to carry out such a scheme. When they finally did, Cleveland warned that the country might default on that day if nothing is done.

Morgan proposed a plan to use the old civil war statute to allow Morgan and the Rothschild family to sell gold directly to the U.S. Treasury Department, 3.5 million ounces, to restore a treasury surplus, in exchange for an issue of bonds with a maturity of 30 years. This episode saved the Treasury but damaged Cleveland's standing with the peasantry of the Democratic Party, and became a problem during the 1896 election when the banks were attacked by William Jennings Bryan. Morgan and Wall Street bankers donated heavily to Republican William McKinley, who was elected in 1896 and re-elected in 1900.