The Great Consolidation: How Money and Media Were Centralized in the Early 20th Century
In the early 20th century, the world entered an era of rapid transformation. New technologies reshaped economies, political revolutions upended empires, and global conflicts changed the trajectory of nations. But alongside these visible changes, a quieter consolidation of power was taking place—one that would profoundly shape the modern world.
Control over two of society’s most critical forces—money and information—was centralized during this period. The creation of the Federal Reserve in 1913 consolidated financial power, while the establishment of the Committee on Public Information (CPI) during World War I centralized control over the flow of information. This dual consolidation laid the groundwork for a world where a few institutions and individuals could guide economies, shape narratives, and influence entire populations.
Act 1: The Federal Reserve and the Centralization of Money
Before 1913, the American financial system was a wild, decentralized patchwork. Hundreds of banks issued their own currency, and panics like the devastating Panic of 1907 highlighted the system’s instability. The solution, according to its advocates, was the Federal Reserve Act, passed under President Woodrow Wilson.
The Federal Reserve was presented as a safeguard for the economy, but critics saw it as a consolidation of financial power into the hands of a few elites. Congressman Charles Lindbergh Sr., an early critic, warned, “The [Federal Reserve] system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money.” He believed the system would favor powerful bankers over the public.
J.P. Morgan & Co., one of the most influential financial institutions of the time, played a key role in shaping the Federal Reserve. Morgan and other powerful bankers saw the Fed as a way to stabilize the system—on their terms. The structure of the Federal Reserve gave private banks significant influence over monetary policy, raising suspicions that the institution primarily served Wall Street.
As journalist William Jennings Bryan put it, the Federal Reserve “makes a private monopoly of the nation's money.” Critics argued that the Fed’s decisions about interest rates and credit effectively placed the levers of the economy in the hands of a financial elite, leaving smaller banks and ordinary Americans at a disadvantage.
Act 2: The Committee on Public Information and Media Control
While the financial world was being consolidated, a similar process was happening in the realm of information. In 1917, as the U.S. entered World War I, President Woodrow Wilson established the Committee on Public Information (CPI). The CPI’s goal was to unify public opinion and ensure support for the war effort, but it also marked the beginning of centralized media control.
Under the leadership of journalist George Creel, the CPI used newspapers, films, posters, and even speeches to shape public sentiment. Creel described the agency’s work as “a plain publicity proposition, a vast enterprise in salesmanship, the world's greatest adventure in advertising.” However, critics saw the CPI as a propaganda machine designed to suppress dissent and manipulate public opinion.
One of the CPI’s most infamous practices was distributing pre-written news stories to newspapers, ensuring that only pro-war narratives reached the public. Dissenting voices were marginalized or outright silenced. As Senator Hiram Johnson famously observed, “The first casualty when war comes is truth.”
While the CPI was disbanded after the war, its legacy endured. It showed how governments could partner with media to control narratives. Over time, this centralization of information paved the way for the dominance of media conglomerates, where fewer and fewer voices controlled the flow of news.
Act 3: The Money-Media Connection
The creation of the Federal Reserve and the rise of centralized propaganda weren’t isolated events—they reflected a broader trend of consolidation during a time of crisis. Financial instability and global conflict created opportunities for elites to centralize power over both money and information.
The overlap between the players in finance and media is striking:
J.P. Morgan reportedly controlled stakes in major newspapers, ensuring they aligned with his interests. As noted by journalist Upton Sinclair, “It is difficult to get a man to understand something, when his salary depends upon his not understanding it.”
The Rockefeller family funded public relations campaigns and shaped journalism education, ensuring coverage favorable to their industries.
This dual consolidation wasn’t just about crisis management—it was about maintaining control. By controlling the money supply and the narrative, elites could shape public opinion, guide policy, and ensure their own interests were protected.
The Legacy of Consolidation
The systems established during this period continue to shape the modern world:
The Federal Reserve remains one of the most powerful institutions globally, with its decisions on interest rates and monetary policy influencing economies worldwide. Critics argue it still prioritizes Wall Street over ordinary Americans, echoing Lindbergh’s warnings from over a century ago.
Media consolidation has reached unprecedented levels. Today, just a handful of corporations control the vast majority of news and entertainment in the U.S., making it easier to shape narratives and harder for dissenting voices to break through.
The connection between financial power and media control has also persisted. As investigative journalist Carl Bernstein noted decades later, “The press is not free. It is the servant of its owners.”