The work is organized like a medieval illuminated manuscript, with calligraphic writing, headed by a table of abbreviations. Jung titled the first book "The Way of What is to Come," and placed beneath this some citations from the book of Isaiah and from the gospel according to John. Thus it was presented as a prophetic work.
-- The Red Book, by Carl Jung

The Bank for International Settlements was a joint creation in 1930 of the world's central banks, including the Federal Reserve Bank of  New York. Its existence was inspired by Hjalmar Horace Greeley Schacht, Nazi Minister of Economics and president of the Reichsbank, part of whose early upbringing was in Brooklyn, and who had powerful Wall Street connections. He was seconded by the all-important banker Emil Puhl, who continued under the regime of Schacht's successor, Dr. Walther Funk.

Sensing Adolf Hitler's lust for war and conquest, Schacht, even before Hitler rose to power in the Reichstag, pushed for an institution that would retain channels of communication and collusion between the world's financial leaders even in the event of an international conflict. It was written into the Bank's charter, concurred in by the respective governments, that the BIS should be immune from seizure, closure, or censure, whether or not its owners were at war. These owners included the Morgan-affiliated First National Bank of New York (among whose directors were Harold S. Vanderbilt and Wendell Willkie), the Bank of England, the Reichsbank, the Bank of Italy, the Bank of France, and other central banks. Established under the Morgan banker Owen D. Young's so-called Young Plan, the BIS's ostensible purpose was to provide the Allies with reparations to be paid by Germany for World War I. The Bank soon turned out to be the instrument of an opposite function. It was to be a money funnel for American and British funds to flow into Hitler's coffers and to help Hitler build up his war machine.

The BIS was completely under Hitler's control by the outbreak of World War II. Among the directors under Thomas H. McKittrick were Hermann Schmitz, head of the colossal Nazi industrial trust I.G. Farben, Baron Kurt von Schroder, head of the J. H. Stein Bank of Cologne and a leading officer and financier of the Gestapo; Dr. Walther Funk of the Reichsbank, and, of course, Emil Puhl. These last two figures were Hitler's personal appointees to the board.

The BIS's first president was the smooth old Rockefeller banker, Gates W. McGarrah, formerly of the Chase National Bank and the Federal Reserve Bank....

Chapter 3:  The Secrets of Standard Oil

In 1941, Standard Oil of New Jersey was the largest petroleum corporation in the world. Its bank was Chase, its owners the Rockefellers. Its chairman, Walter C. Teagle, and its president, William S. Farish, matched Joseph J. Larkin's extensive connections with the Nazi government. 

Six foot three inches tall, and weighing over two hundred and fifty pounds, Walter C. Teagle was so large a man that it was said that when he stood up from his seat on the subway, it was to make room for two women. He smoked Havana cigars through a famous amber holder. He spoke with measured deliberation, fixing his fellow conversationalists with a frightening, unblinking, and powerful stare. 

Teagle came from a prominent Cleveland family just below the millionaire class. He early showed a dominant will, expressed in a thunderous voice, a humorless intensity, and a rugged disrespect for those who questioned his judgment. He was known as a dominant presence at Cornell. Kept out of football by an injury, he worked off his colossal energy in school debates, which he invariably won hands down. Entering the Standard Oil empire under the wing of John D. Rockefeller I, he rose rapidly through his Horatio Alger concern for work and his strong international sense: he drew many foreign countries and their leaders into the Standard Oil web. He weathered scandal after scandal in which Standard stood charged with monopolistic and other illegal practices.

From the 1920s on Teagle showed a marked admiration for Germany's enterprise in overcoming the destructive terms of the Versailles Treaty. His lumbering stride, booming tones, and clouds of cigar smoke became widely and affectionately known in the circles that helped support the rising Nazi party. He early established a friendship with the dour and stubby Hermann Schmitz of I.G. Farben, entertaining him frequently for lunch at the Cloud Room in the Chrysler Building, Teagle's favorite Manhattan haunt of the late 1920s and the 1930s. Teagle also was friendly with the pro-Nazi Sir Henri Deterding of Royal Dutch-Shell, who agreed with his views about capitalist domination of Europe and the ultimate need to destroy Russia.

Teagle, Schmitz, and Deterding shared a passion for grouse shooting and game hunting; they vied with each other as wing shots.  Teagle's love of hunting deer and wild birds was to earn him the admiration of Reichsmarschall Hennann Goring.

Teagle was close to Henry Ford. He first met him in the early 1900s when he wanted to make a deal for oil with a new Detroit auto assembly shop. He walked into the shop, saw how miserably rundown it was, and decided that he would have difficulty in collecting for the gasoline contract. But he took a chance on the thin, gaunt proprietor and went ahead. Many years later the two men met again and formed a friendship. Ford looked at him sharply and said, "We've met before." Teagle remembered at once. "Sure," Teagle said, "I sold you your first gasoline contract. You were stripping down a Winton chassis." Ford replied, "I was. And I was so hard up, I didn't even own the goddam thing!"

Because of his commercial and personal association with Hermann Schmitz, and his awareness that he must protect Standard's interest in Nazi Germany, Teagle made many visits to Berlin and the Standard tanks and tank cars in Germany throughout the 1930s. He became director of American I.G. Chemical Corp., the giant chemicals firm that was a subsidiary of I.G. Farben. He invested heavily in American I.G. and American I.G. invested heavily in Standard. He sat on the I.G. board with Fraternity brothers Edsel Ford and William E. Weiss, chairman of Sterling Products.

Following the rise of Hitler to power, Teagle and Hermann Schmitz jointly gave a special assignment to Ivy Lee, the notorious New York publicity man, who had for some years worked for the Rockefellers.  They engaged Lee for the specific purpose of economic espionage.  He was to supply I.G. Farben, and through it the Nazi government, with intelligence on the American reaction to such matters as the German armament program, Germany's treatment of the Church, and the organization of the Gestapo. He was also to keep the American public bamboozled by papering over the more evil aspects of Hitler's regime. For this, Lee was paid first $3,000 then $4,000 annually, the money paid to him through the Bank for International Settlements in the name of I.G. Chemie. The contract was for obvious reasons kept oral and the money was transferred in cash. No entries were made in the books of the employing companies or in those of Ivy Lee himself. After a short period Lee's salary was increased to $25,000 per year and he began distributing inflammatory Nazi propaganda in the United States on behalf of I.G. Farben, including virulent attacks on the Jews and the Versailles Treaty.

In February 1938 the Securities and Exchange Commission held a meeting to investigate Nazi ownership of American I.G. through a Swiss subsidiary. The commissioners grilled Teagle on the ownership of the Swiss company. He pretended that he did not know the owners were I.G. Farben and the Nazi government. The commissioners tried to make him admit that at least American I.G. was "controlled by 'European' interests." Teagle replied dodgily, "Well, I think that would be a safe assumption." Asked who voted for him as a proxy  at Swiss meetings, again he asserted that he didn't know. He also neglected to mention that Schmitz and the Nazi government owned thousands of shares in American I.G.

Teagle was sufficiently embarrassed by the hearing to resign from the American I.G. board, but he retained his connections with the company. He remained in partnership with Farben in the matter of tetraethyl lead, an additive used in aviation gasoline. Goring's air force couldn't fly without it. Only Standard, Du Pont, and General Motors had the rights to it. Teagle helped to organize a sale of the precious substance to Schmitz, who in 1938 traveled to London and "borrowed" 500 tons from Ethyl, the British Standard subsidiary. Next year, Schmitz and his partners returned to London and obtained $15 million worth. The result was that Hitler's air force was rendered capable of bombing London, the city that had provided the supplies.  Also, by supplying Japan with tetraethyl, Teagle helped make it possible for the Japanese to wage World War II.

There was a further irony. The British Royal Air Force had to pay royalties to Nazi Germany through Ethyl- Standard for the gasoline used to fly Goring's bombers that were attacking London. The payments were held in Germany by Farben's private banks for Standard until the end of the war.

Following the embarrassment of the Securities and Exchange Commission hearing, Teagle took more and more of a backseat and handed over his front office to his partner and close friend, William Stamps Farish. Farish was somewhat different in character from Teagle. Tall, bald from youth, bespectacled, given to publishing homilies and pious patriotic articles in the pages of American Magazine, he had a reserved, almost scholarly manner that barely concealed a flaring temper and a fierce self-protectiveness that made him seem guilty in  controversies over Standard when he was not necessarily so. He was so emotionally locked into the company that he was indivisible from it. He never understood a rule of power: to keep calm and polite when the opposition is angry and threatening. He could not resist striking back at anyone who criticized him, sometimes with a rather feeble attempt at physical violence. He shared with Teagle a mania for salmon fishing, dog training, bird-dogging, quail shooting, and fox hunts. Like Teagle, he devoted as much as eighteen hours a day  to office affairs, immense journeys by ship and train, and board meetings that sometimes went on into the small hours of the morning.  Both had the capacity of senior executives to exhaust everyone but themselves with their certainties. They allowed little area for discussion and brooked nothing save approval.

Farish, like Teagle, was mesmerized by Germany and spent much time with Hermann Schmitz. With Teagle's approval he staffed the Standard Oil tankers with Nazi crews. When war broke out in Europe, he ran into trouble with British Intelligence, which boarded some of his vessels outside territorial waters on the Atlantic and Pacific seaboards and seized Nazi agents who were passengers. When the British began interrogating Nazi crews on the Hitler-Standard connection, Farish fired the Germans en masse and changed the registration of the entire fleet to Panamanian to avoid British seizure or search. His vessels carried oil toTenerife in the Canary Islands, where they refueled and siphoned oil to German tankers for shipment to Hamburg. They also fueled U-boats even after the American government declared such shipments morally indefensible and while Roosevelt was fighting an undeclared war in the Atlantic. Standard tankers supplied the self-same submarines which later sank American ships.  By a humorous twist of fate, one of the ships the U-boats sank was the S.S. Walter Teagle.

It was important for the Nazis to convert the oil in the Canaries to aviation gasoline for the Luftwaffe. Once again, Farish proved helpful. As early as 1936 his associate Harry D. Collier of California Standard had built units for conversion in the Canaries. Simultaneously, Teagle had built a refinery in Hamburg that produced 15,000 tons of aviation gasoline for Goring every week.

With war in Europe, General Aniline and Film, successor to American I.G., stood in danger of being taken over by the U.S. government. Teagle and Farish's friend, the Rockefeller associate Sosthenes Behn of ITT, was narrowly stopped from buying the corporation, thus rendering it "American" and not subject to seizure. Henry Morgenthau prevented the deal. For once, The Fraternity was frustrated.  Teagle and Farish could not buy GAP themselves, as it would have too clearly betrayed their association with the Nazis.

By 1939, Americans were dangerously short of rubber. The armed services were hard put to complete wheels for planes, tanks, and armored cars. At this time Standard Oil had made a deal with Hitler whereby he would obtain certain kinds of Standard artificial rubber and America would get nothing. This deal continued until after Pearl Harbor.

When war broke out, Frank A. Howard, one of the more dynamic vice-presidents of Standard (also on the board of Chase), flew to Europe with Farish's authorization. In London he held an urgent meeting with U.S. Ambassador Joseph P. Kennedy, who allegedly wanted to negotiate a separate peace that would bring the European war to an immediate end. Kennedy enthusiastically approved Howard's meeting with Farben's representative Fritz Ringer. The meeting was set up in Holland. Howard flew to The Hague on September 22,  1939, supplied with a special Royal Air Force bomber for the occasion. 

At the Hague meeting, held in the Standard Oil offices, Howard and Ringer talked for many hours about their plans for the future.  Ringer handed over a thick bundle of German patents that were locked into Standard agreements so that they would not be seized in wartime. The two men drew up an agreement that specified they would remain in business together, "whether or not the United States came into the war." Another clause in the agreement known as the Hague Memorandum guaranteed that the moment war was over, I.G. Farben  would get back its patents. Howard returned to London and Kennedy arranged for the patents to be flown by American diplomatic bag to Ambassador William Bullitt in Paris, who forwarded them on by special courier to Farish in New York.

As the war continued in Europe before America's entry, Germany grew more and more desperate for oil. Her domestic supplies were minimal. But for many years Teagle and Farish had exploited the resources of Rumania, setting up extensive oil exploration in the Ploiesti fields and netting millions from Germany in the process. I.G. Farben financed the notorious Rumanian Iron Guard, a fascistic military organization led by General Ion Antonescu. Hermann Schmitz, through Antonescu and in league with Standard, held an exercising control over the oil fields. On March 5, 1941, Goring arranged a special private performance of Madame Butterfly by the Austrian State Opera at the Belvedere Palace in Vienna in Antonescu's honor. After the performance, Goring sat down for an urgent discussion with Antonescu on securing the use of the Standard Oil fields if Germany and America should go to war. Antonescu conferred with Schmitz and Standard executives in Bucharest. The result of the meeting was that Goring paid $11 million in bonds for the use of the oil, whether or not America came into the war.

Farish now proceeded to make another deal with Goring. Hungary was second only to Rumania as an oil source for the Nazi war machine. Teagle had started drilling there in 1934.

In July 1941, Farish and Frank Howard filed an application with Treasury for a license to sell its Hungarian subsidiary to I.G. Farben.  Farben would, the application said, pay $5.5 million in Swedish, Swiss, and Latin American currencies, $13.5 million in gold to be delivered at Lisbon, Portugal, and later shipped to the United States; and it would supply a promissory note for $5 million by I.G. "to be paid three months after the war ended." This note was to be secured by the blocked assets of General Aniline and Film in America. Treasury refused the application, whereupon Farish asked if the full amount could be paid in gold at Lisbon. That suggestion also was rejected.  Farish protested bitterly.

The British blockade ran the length of the Americas upon the Atlantic seaboard, stopping shipments to Nazi Germany wherever possible. Given the problem, how could Farish go on supplying Goring and Hermann Schmitz with oil in time of war? He soon found the solution. He sent large amounts of petroleum to Russia and thence by Trans-Siberian Railroad to Berlin long after Roosevelt's moral embargo. He shipped to Vichy North Africa. In May 1940, British authorities captured a French tanker in U.S. territorial waters that was sailing to Casablanca with 16,000 tons of Standard oil, allegedly for reshipment to Hitler. Cordell Hull demanded the British government yield up the tanker. Restricted by maritime law, the British agreed.  The tanker sailed on to Africa, followed by six more.

Farish fueled the Nazi-controlled L.A.T.I. airline from Rome to Rio via Madrid, Lisbon, and Dakar. The airline flew spies, patents, and diamonds for foreign currency. Only Standard could make this  shipment possible. Only Standard had the high-octane gasoline that enabled the lumbering clippers to make the 1,680-mile hop across the Atlantic.

A hard-working young man, William La Varre of the Department of Commerce, set about uncovering Standard's deals with this Nazi airline. He knew L.A.T.I. was the means by which the Nazis evaded the British blockade. The airline was not subject to boarding and search. Spies traveled by L.A.T.I. between the United States, Germany, and Italy by way of Brazil.

In addition to spies, the planes flew, in 1941, 2,365 kilos of books containing Nazi propaganda, legal and illegal drugs addressed to Sterling Products, Reichsbank money for the National City Bank in New York, wartime horror pictures prepared by Dr. Joseph Goebbels to frighten Latin Americans out of a world conflict. There were electrical materials and gold and silver jewelry for sale to Brazil. American companies in South America shipped the Nazis thousands of  kilos of mica and platinum, which existed in quantity only in Brazil,  and which were strategic war materials for Germany. Semiprecious stones were bought cheaply, shipped to Germany, cut in Belgium in slave camps, and shipped back to Brazil for sale.

In order to supply the airline, Farish changed more of his vessels from German to Panamanian registry. Now they were granted immunity under the Panamanian flag by James V. Forrestal, Under Secretary of the Navy, vice-president of General Aniline and Film, and Fraternity member. But U.S. Intelligence constantly checked on the members of the Gestapo, the Abwehr, and the Farben spy network  N.W.7. who used the airline. Early in 1941, Adolf Berle of the State Department insisted that Cordell Hull stop these shipments. Hull talked to William Farish. He told him he was going to apply export control to the shipments.

Farish was forced to reach a compromise. He would supply L.A.T.I. and the other Nazi airline, Condor, through Standard's Brazilian subsidiary with permission from the American ambassador in Rio.  The ambassador gave permission and the airlines continued to fly. It was not until just before Pearl Harbor that La Varre and Berle real-ized what Farish was doing: By making the deal through the Brazilian company, he was not subject to blacklisting. Thus, the shipments continued until after Pearl Harbor when the Brazilian government stepped in and closed down the airlines. Farish totally ignored his government's request to be loyal. Germany and money came first. 

On March 31, 1941, Sumner Welles of the State Department stepped into the picture with a detailed report on refueling stations in Mexico and Central and South America that were suspected of furnishing oil to Italian or German merchant vessels now in port. Among those suspected of fueling enemy ships were Standard Oil of New Jersey and California. There is no record of any action being taken on this matter.

On May 5, the U.S. Legation at Managua, Nicaragua, reported that Standard Oil subsidiaries were distributing Epoca, a publication filled with pro-Nazi propaganda. John J. Muccio, of the U.S. Consulate, made an investigation and found that Standard was distributing this inflammatory publication all over the world. By a peculiar irony, Nelson Rockefeller was at that moment in his post of Coordinator of Inter-American Affairs, seeking to insure the loyalty to United States interests of all of the governments of Latin America.

-- Trading With the Enemy, by Charles Higham

Paul Mellon was the leading heir to the Mellon fortune, and a long-time neighbor of Averell Harriman’s in Middleburg, Virginia, as well as Jupiter Island, Florida. Paul’s father, Andrew Mellon, U.S. Treasury Secretary 1921-32, had approved the transactions of Harriman, Pryor and Bush with the Warburgs and the Nazis. Paul Mellon’s son-in-law, David K.E. Bruce, worked in Prescott Bush’s W.A. Harriman & Co. during the late 1920s; was head of the London branch of U.S. intelligence during World War II; and was Averell Harriman’s Assistant Secretary of Commerce in 1947-48. Mellon family money and participation would be instrumental in many domestic U.S. projects of the new Central Intelligence Agency.

-- George Bush:  The Unauthorized Biography, by Webster Tarpley & Anton Chaitkin

ONLY THE little seditionists and traitors have been rounded up by the F.B.I. The real Nazi Fifth Column in America remains immune. And yet there is evidence that those in both countries who place profits above patriotism -- and Fascism is based entirely upon profits although all its propaganda speaks of patriotism -- have conspired to make America part of the Nazi Big Business system.

Thurman Arnold, as assistant district attorney of the United States, his assistant, Norman Littell, and several Congressional investigations, have produced incontrovertible evidence that some of our biggest monopolies entered into secret agreements with the Nazi cartels and divided the world among them. Most notorious of all was Alcoa, the Mellon-Davis-Duke monopoly which is largely responsible for the fact America did not have the aluminum with which to build airplanes before and after Pearl Harbor, while Germany had an unlimited supply. Of the Aluminum Corporation sabotage and that of other leading companies the press said very little, but several books have now been written out of the official record....

The new propaganda agency of the NAM is called the National Industrial Information Committee (N.I.I.C.). In 1942, when I discovered its campaign to raise $1,000,000 for a fund to fight labor, it denied that it had any relation with the NAM although it was part of the latter's office, had the same phone, and was operated by the same agents. In 1943, however, it sent a letter to its sustainers saying that it was still affiliated, but was becoming more and more a separate organization. These technicalities are of no importance. What is important is that the worst Fascists of the reactionary clique which bosses the NAM are the very men who are behind this new propaganda movement.

The N.I.I.C. claims it has 350 of the leading industrialists in its ranks. It was prompted to begin a big campaign in 1942 because the various Congressional committees, notably the Truman and O'Mahoney, and numerous official reports, notably those of Toland and Thurman Arnold, had exposed American Big Business as linked to Nazi Germany in the cartels, as actually doing business with Hitler and planning to do so in case of war, and to resume doing business should a war involve the two countries. Corporations -- Standard Oil for one -- had been branded traitors in Senate hearings, and the news could not be suppressed that it was due to the monopoly arrangements with I.G. Farbenindustrie that America had a shortage of aluminum for making airplanes, no synthetic rubber at all, a lack of tungsten, carboloy and other vital materials, no substitute for quinine (atabrine), etc. The very same corporations and men who had been exposed by Monograph 29 as ruling America -- notably Mellon -- were shown to be the men of the Nazi cartels. And on top of this scandal the labor press was proving that Big Business was refusing to convert to war, that Big Money was on a sit-down strike, and that, in short, the men of wealth and power were the traitors while the men in the fields, factories and workshops were working to win the war....

Aluminum Corporation (Mellon-Davis-Duke families). "If America loses the war it can thank the Aluminum Corporation of America." -- Secretary of Interior Ickes, June 26, 1941. By its cartel agreement with I.G. Farben, controlled by Hitler, Alcoa sabotaged the aluminum program of the U.S. air force. The Truman Committee heard testimony that Alcoa's representative, A.H. Bunker, $1-a-year head of the aluminum section of O.P.M., prevented work on our $600,000,000 aluminum expansion program. Congressman Pierce of Oregon said in May, 1941: "To date, 137 days or 37-1/2% of a year's production has been wasted in the effort to protect Alcoa's monopolistic position. ... This delay, translated into planes, means 10,000 fighters or 1,665 bombers."

-- Facts and Fascism, by George Seldes

Billy Hitchcock [Mellon] wasn't the only figure in the Mellon clan who rubbed shoulders with the espionage community. A number of Mellons served in the OSS, notably David Bruce, the OSS station chief in London (whose father-in-law, Andrew Mellon, was treasury secretary during the Depression). After the war certain influential members of the Mellon family maintained close ties with the CIA. Mellon family foundations have been used repeatedly as conduits for Agency funds. Furthermore, Richard Helms was a frequent weekend guest of the Mellon patriarchs in Pittsburgh during his tenure as CIA director (1966-1973).

-- Acid Dreams, The Complete Social History of LSD:  The CIA, The Sixties, And Beyond, by Martin A. Lee & Bruce Shlain