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structure of the world. Paul Warburg had resigned in May, 1918, after 

the monetary system of the United States had been changed from a 

bond-secured currency to a currency based upon commercial paper 

and the shares of the Federal Reserve Banks. Warburg returned to his 

five hundred thousand dollar a year job with Kuhn, Loeb Company, 

but he continued to determine the policy of the Federal Reserve 

System, as President of the Federal Advisory Council and as Chairman 

of the Executive Committee of the American Acceptance Council.

From 1921 to 1929, Paul Warburg organized three of the greatest trusts 

in the United States, the International Acceptance Bank, largest 

acceptance  bank  in  the  world,  Agfa  Ansco  Film  Corporation,  with 

headquarters in Belgium, and I.G. Farben Corporation whose 

American

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branch Warburg set up as I.G. Chemical Corporation. The 

Westinghouse Corporation is also one of his creations.

In the early 1920s, the Federal Reserve System played the decisive role 

in the re-entry of Russia into the international finance structure. 

Winthrop and Stimson continued to be the correspondents between 

Russian and American bankers, and Henry L. Stimson handled the 

negotiations concluding in our recognition of the Soviet after 

Roosevelt’s election in 1932. This was an anti-climax, because we had 

long before resumed exchange relations with Russian financiers.

The Federal Reserve System began purchasing Russian gold in 1920, 

and Russian currency was accepted on the Exchanges. According to 

Colonel Ely Garrison, in his autobiography, and according to the