congressman louis t. mcfadden on the federal reserve corporation

8/2/2019 Congressman Louis T. McFadden on the Federal Reserve Corporation

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CONGRESSMAN

LOUIS T. McFADDEN on the

FEDERAL RESERVE

CORPORATION

Remarks in Congress, 1934

AN ASTOUNDING EXPOSURE



CONGRESSMAN

LOUIS T. McFADDEN on the

FEDERAL RESERVE

CORPORATION

Remarks in Congress, 1934

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CONGRESSMAN McFADDEN'S SPEECH ON

THE FEDERAL RESERVE CORPORATIONQuotations from several speeches made on the Floor

of the House of Representatives by the Honorable

Louis T. McFadden of Pennsylvania. Mr. McFadden,

due to his having served as Chairman of the Banking

and Currency Committee for more than 10 years, wasthe best posted man on these matters in America and

was in a position to speak with authority of the vastramif icat ions of this gigantic private credit monopoly.

As Representative of a State which was among the

first to declare its freedom from foreign money tyrants

it is fitting that Pennsylvania, the cradle of liberty, beagain given the credit for producing a son that w asnot afra id to hurl defiance in the face of the money-

bund. Whereas Mr. McFadden was elected to the

high office on both the Democratic and Republ icantickets, there can be no accusation of part isanshiplodged against him. Because these speeches are setout in full in the Congressional Record, they carryweight that no amoun t of condemnation on the partof private indiv iduals could hope to carry.

The Federal Reserve—A Corrupt Institution

"Mr. C ha i rm a n , w e have in this Country one ofthe most corrup t insti tutions the world has ever known.I re fe r to the Federal Reserve Board and the FederalReserve Banks, h e r e i n a f t e r called the Fed. The Fed

has cheated the Government of these United States and

the people of the United States out of enough moneyto pay the Nation's debt. The depredations and iniq-



4 T H E F E D E R A L R E S E R V E IN CO N G RESS

uit ies of the Fed has cost this Country enough money

to pay the National debt several times over."This evil institution has impoverished and ru ined

the people of these United States, has bankrupted it-

self , and has practically bankrupted our Government.

It has done this through the defects of the law underwhich it operates, through the maladminis t rat ion oftha t law by the Fed and through the corrupt practicesof the moneyed vultures who control it.

"Some people who think that the Federal ReserveBa n ks are United States Government inst i tut ions.They are not Government inst i tut ions. They are

private monopolies which prey upon the people of

these United States for the benef i t of themselves an dt he i r foreign cus tomers ; fore ign and domestic specu-lators and swindlers; and rich and predatory moneylenders. In that dark crew of f inancial pi ra tes thereare those who would cut a man's throat to get a dol-

lar out of his pocket; there are those who send m on eyinto states to buy votes to control our legislatures;there are those w ho m a in t a in In te rna t iona l propa-g a n d a for the purpose of deceiving us into g r a n t i n gof new concessions which will permit them to cover up

their p a s t misdeeds and set again in motion their g i-gant ic train of crime.

"These twelve private credit monopolies w e r e de-

ceitfully and disloyally foisted upon this Country by

the bankers who came here f rom Europe and r epa idus our hospitality by u n d e r m i n i n g our A m e r i c a n insti-tutions. Those bankers took money out of this Coun-

try to finance Japan in a war against Russ ia . They

c rea ted a reign of terror in Russia with our money inorder to help that war along. They instigated the



BY HON. LOUIS T. McFADDEN, 1934 5

separate peace between Germany and Russia and thus

drove a wedge between the Allies in the World War.They f inanced Trotsky's passage f rom New York to

Russia so that he might assist in the des t ruc t ion of the

Ru s s ia n Empire. They fomen ted and instigated the

Russ ian Revolution, and placed a large fund of Amer-

ican dollars at Trotsky's disposa l in one of their

b ranch b a n k s in Sweden so that through him Russ ianhomes might be thoroughly broken up and Russian

children f lung far and wide f rom their natural pro-tectors. They have since begun breaking up of Ameri-

can h o m e s and the dispersal of Amer ican children.

"Mr. C h a i r m a n , there should be no partisanship

in matters concerning banking and currency affairs in

th is Coun t ry , and I do not speak wi th any.

"In 1912 the National Monetary Association, under

the cha i rmansh ip of the late Senator Nelson W. Aid-

r ich, made a report and presented a vicious bill called

the National Reserve Associa t ion bil l . This bill is

usual ly spoken of as the Aldrich bill. Senator Aldrich

did not write the Aldrich bill. He was the tool, if not

the accomplice, of the European bankers who for

n e a r l y t w e n t y y e a r s had been scheming to set up a cen-tral b a n k in th is Country and who in 1912 had spent

an d w e r e cont inu ing to spend vast sums of m o n e y to

accomplish t h e i r purpose.

"We w e r e opposed to the Aldr i ch plan for a central

bank. The men who ru le the Democratic Party thenp romised the people that if they were r e t u r n e d to

power there would be no central bank established here

whi le they he ld the reigns of government. Thirteen

months later that promise was broken, and the Wilson

a d m i n i s t r a t i o n , under the tutelage of those sinisterWall Street figures w ho stood behind Colonel House,



6 THE FEDERAL RESERVE IN C O N G R E S S

established here in our free Country the worm-eatenmonarchical institution of the "King's Bank" to con-trol us f rom the top downward, and to shackle us

from the cradle to the grave.

"The Federal Reserve Bank destroyed our old andcharacteristic way of doing business. It discriminated

against our 1-name commercial paper , the finest in theworld, and it set up the ant iquated 2-name paper , whichis the present curse of this Country and which wrecked

every country which has ever given it scope; it fas-tened down upon the Country the very tyranny fromwhich the f ramers of the Constitution sought to saveus.

President Jackson's Time

"One of the greatest battles for the preservation

of this Republic w as fought out here in Jackson's

time; when the second Bank of the United States,founded on the same false principles of those whichare here exemplified in the Fed was hurled out of ex-

istence. After that, in 1837, the Country was warned

against the dangers that m i g h t ensue if the predatoryinterests af ter being cast out should come back in dis-guise and uni te themselves to the Executive and

through him acquire control of the Government. That

is what the predatory interests did when they cameback in the livery of hypocracy and u n d e r false pre-tenses obtained the passage of the Fed.

"The danger that the Count ry was wa rned againstcame upon us and is shown in the long train of hor-rors a t tendan t upon the affairs of the t ra i torous anddishonest Fed. Look around you when you leave this

Cha mber and you will see evidences of it in all sides.This is an era of misery and for the conditions that




caused that misery , the Fed are fully l iable. This isan era of f inanced crime and in the f inancing of crime

the Fed does not play the part of a disinterested spec-

tator.

"It has been said that the draughtsman who was

employed to wri te the text of the Fed used a text ofthe Aldrich bill because that had been d r a w n up bylawyers, by acceptance bankers of European origin in

New York. It was a copy, in general a translation,

of the statutes of the Richsbank an d other Europeancentral banks . One-half million dollars w as spent onthe part of the propaganda organized by these bank-ers for the purpose of misleading public opinion and

giving Congress the impression that there was an over-

whelming popular demand for i t and the kind of cur-rency that goes with it , namely, an asset currency basedon h u m a n debts and obligations. Dr. H. Parker Wil-

lis had been employed by Wall Street and propagan-dists, and when the Aldrich measure fa i l ed—he ob-ta ined employment with Carter Glass, to assist indrawing the bank ing bill for the Wilson admin is t ra-tion. He appropriated the text of the Aldrich bill.

There is no secret about it. The text of the Federal

Reserve Act was ta inted from the first.

"A few days before the bill came to a vote, SenatorHenry Cabot Lodge, of Massachuset ts , wrote to Sen-ator John W. Weeks as fol lows:

" 'New York City, December 17, 1913

" 'My Dear Senator Weeks:

" 'Thorughout my public l ife I have suppor ted all

measures designed to take the Government out of thebanking business . This bil l puts the Government into



8 THE FEDERAL R E S E R V E IN CONGRESS

the banking business as never before in our history.

" 'The powers vested in the Federal Reserve Boardseem, to me h igh ly dangerous especially w h e r e there ispolitical control of the Board. I should be sorry to

hold stock in a bank subject to such dominations. Thebill as it stands seems to me to open the way to a vast

inf la t ion of the currency.

" 'I had hoped to support this bill, but I canno t vote

for it as it stands, because it seems to me to contain

f ea t u re s and to rest upon principles in the highes t de-gree menac ing to our prosperity, to stability in busi-ness, and to the general wel fa re of the people of theUnited States.

Very Truly Yours,

Henry Cabot Lodge.' "

"In eighteen years that have passed since Senator

Lodge wrote that letter of w a r n i n g all of his predic-

tions have come true. T he Government is in the bank-ing business as never before . Against its will it hasbeen made the backer of horse thieves and card sharps,bootleggers, smugglers , speculators , an d swind le r s inall parts of the world. Through the Fed the r i f f r a f f

of every country is operating on the public credit of

this United States Government.

The Great Depression"Meanwhi l e and on account of it, we ourselves are

in the midst of the grea tes t depression w e have everknown. From the Atlantic to the Pacific, our C o u n t r yhas been ravaged and laid waste by the evil practices

of the Fed and the in teres ts which control t h e m . At

n o t ime in our his to ry , has the genera l w e l f a r e of thepeople been at a lower level or the m i n d s of the peo-

ple so full of despair.



BY H O N . LOUIS T. McFADDEN, 1934 9

"Recently in one of our States, 60,000 dwell inghouses and fa rms were

brought u nde rthe h a m m e r in

a single day. 71 ,000 houses and f a rms in OaklandCounty, Michigan , were sold and thei r erstwhile own-ers dispossessed. The people who have thus beendriven out are the wastage of the Fed. They are thevictims of the Fed. Their children are the new slavesof the auction blocks in the revival of the inst itut ionof h u m a n slavery.

The Scheme of the Fed

"In 1913, before the Senate Banking and CurrencyCommit tee , M r. Alexander Lassen m a d e the follow-ing statement: "The whole scheme of the Fed with itscommercial paper is an impractical , cumbersome m a-chinery—is simply a cover to secure the privilege of is-suing money, and to evade payment of as much tax

upon circulation as possible and then control the issueand main ta in , instead of reducing interest rates. Itwill prove to the advantage of the few and the detri-m en t of the people. It will mean cont inued shortageof actual money and fu r the r extension of credits, forwhen there is a shortage of money people have to bor-row to the i r cost.'

"A few days before the Fed passed, Senator Rootdenounced the Fed as an outrage on our l ibert ies. Hepredicted: 'Long before w e wake up from our dreamof prosperi ty through an inflated currency, our gold—which alone could have kept us f rom catastrophy—will have vanished and no rate of interest will t emptit to re turn . '

"If ever a prophecy came t rue, that one did.

"The Fed became law the day before Chris tmas



10 T H E F E D E R A L R E S E R V E IN CONGRESS

Eve, in the year 1913, and shortly afterwards, the

G e r m a n In te rna t iona l Bankers , Ku h n , Loeb and Co .sent one of the ir p a r t n e r s here to run it.

"The Fed Note is essentially unsound. It is the

worst currency and the most da n g e r o u s that this Coun-try has ever known. When the proponents of the actsaw that the Democra t i c doctr ine would n ot permitthem to let the proposed banks i ssue the new currency

as bank notes, they should have stopped at that . They

should not have foisted t h a t kind of currency, namely ,an asset currency, on the United States Governmen t .They should not have made the Government l i able on

the private debts of i nd i v i d ua l s and corporations, and,

least of all,on the private debts of foreigners.

"As Kemerer says: 'The Fed Notes, therefore, in

fo rm, have some of the quali t ies of Government pa-per money, but in substance, are a lmost a p u r e assetcurrency possessing a G o v e r n m e n t gua ran tee againstwhich contingency the Government has made no pro-

vision whatever.'

"Hon. L. J. Hill, a fo rmer m e m b e r of the House,

said, and truly: 'They are obl igat ions of the Govern-ment for which the United States received noth ing andfor the p a y m e n t of which at any t ime, it assumes the

responsibi l i ty: looking to the Fed to recoup itself. '"If this United States is to redeem the Fed Notes,

when the General Public finds it costs to deliver thispaper to the Fed,and if the Government has made no

provisions for redeeming them, the first e l e m e n t of

unsoundness is not far to seek.

"Before the Banking and Currency Commit tee ,

when the bill was unde r discussion M r. Croz ie r of Cin-



BY HON. L O U I S T. McFADDEN, 1934 11

c innat i said: 'The imperial power of elasticity of the

publiccurrency

is wielded exclusively by the centralcorporations owned by the banks. This is a l i fe and

death power over all local banks and all business. Itcan be used to create or destroy prosperity, to ward off

or cause s t r ingencies and panics . By making money

artificially scarce, interest rates throughout the Coun-

try can be arbit rar i ly raised and the bank tax on allbusiness and cost of living increased for the profit of

the banks owning these regional central banks, andwithou t the slightest benefit to the peop le. Th e 12Corpora t ions together cover the Whole Count ry andmonopolize and use for private gain—every dollar ofthe public currency and all public revenue of theUni ted States. Not a dollar can be put into circula-tion among the people by their Government , withoutthe consent of and on t e rms fixed by these 12 private

money trusts.'"In defiance of this and all other warnings , the pro-

ponents of the Fed created the 12 pr iva te credit cor-porat ions and gave them an absolute monopoly of thecurrency of these Uni t ed States—not of the Fed Notesalone—but of all other cur rency! The Fed Act pro-viding ways and means by which the gold and general

currency in the hands of the American people could be

obtained by the Fed in exchange for Fed Notes—

which are not money—but mere promises to pay.

"Since the evil day when this w as done, the initialmonopoly has been extended by vicious amendmentsto the Fed and by the unlawful and t reasonable prac-tices of the Fed.

Money for Scottish Distillers

"Mr. Chai rman , if a Scottish distiller wishes to send



12 T H E F E D E R A L R E S E R V E IN CONGRESS

a cargo of Scotch whiskey to these United States ,he can draw his

bill aga ins tthe purchasing bootlegger

in dollars an d a f t e r the bootlegger has accepted i t bywri t ing his name across the face of it, the Scotch dis-tiller can send that bill to the nefar ious open discountma r ke t in New Y o r k City where the Fed will buy itand use it as collateral for a new issue of Fed Notes.Thus the Government of these Uni ted States pay theScotch distiller for the whiskey before it is shipped,and if it is lost on the way,or if the Coast Guardsiezes it and destroys it, the Fed simply wri te off theloss and the Government never recovers the moneythat w as paid to the Scotch distiller.

"While we are attempting to enforce prohibition

here, the Fed are f inanc ing the distillery business in

Europe and p a y i n g bootlegger bills with publ ic credit

of these United States.

"Mr. Cha i rman , by the same process, they compelour G o v e r n m e n t to pay the G e r m a n b r e w e r for his

beer . Why should the Fed be permit ted to finance thebrewing i ndus t ry i n G e r m a n y either in this way or asthey do by compelling small and fea r fu l United StatesBanks to take stock in the Isenbeck Brewery and inthe German Bank for brewing industries?

"Mr. C h a i r m a n , if Dynamit Nobel of G e r m a n y ,wishes to sell dy n a m i t e in Japan to use in Manchuria

or elsewhere, it can drew its bil l agains t the Japanesecustomers in dollars and send that bill to the nefa r iousopen discount market in New York Ci ty whe re the

F ed will buy it and use it as collateral for a new issueof Fed Notes—while at the same time the Fed will

be helping Dynamit Nobel by stuffing its stock into the

United States banking system.




"Why should we send our represen ta t ives to the

disa rmamen t conference at Geneva—whi l e—the F edis m aking our Gov e rn me n t pay Japanese debts to Ger-

m an M uni t i o ns m a ke r s ?

"Mr. C ha i rm a n , if a G e r m a n wishes to ra ise a cropof beans and sell them to a Japanese customer , he candraw a bi l l against his prospective Japanese cus tomerin dollars and have it purchased by the Fed and get

the money out of this Country at the expense of the

American people before he has even planted the beansin the ground.

"Mr. Ch a i rman , if a German in Germany wishes toexport goods to South America, or any other Country,

he can draw his bill against his customers and send it

to these United States and get the money out of this

C o un t ry before he ships, or even manufac tures thegoods.

"Mr. Chairman, why should the currency of these

United States be issued on the strength of G erm a nBeer? Why should it be issued on the crop of un-

planted beans to be grown in Chil i for Japanese con-

sumption? Why should these United States be com-

pelled to issue m a n y billions of dollars every year to

pay the debts of one fore igner to another fo re igner?

"Was it for this that our Na t io na l Bank depositors

had their money taken out of our banks and shipped

abroad? Was it for this that they had to lose it?

Why should the public credit of these United Sta tesand l ikewise money belonging to our N a t i o na l Bankdepositors be used to support foreign brewers, nar-

cotic drug vendors , whiskey distillers, wig makers , hu-m an ha i r merchan t s , Chilean bean growers, to financethe muni t ion factories of Germany and Soviet Russia ?



14 T HE FEDERAL R E S E R V E IN C O N G R E S S

"Mr. C h a i r m a n , there is nothing like the Fed pool

of confiscated b a n k deposits in the world. It is a pub-

lic trough of American wealth in which the foreigners

claim rights, equal to or greater than Americans. The

Fed are the agents of the fore ign central banks. Theyuse our bank depositors' money for the benef i t of t he i rforeign principals. They barter the publ ic credit ofthe United States Governmen t and hire it out to for-

eigners at a profit to themselves.

"All this is done at the expense of the United StatesG o v e r n m e n t , and at a sickening loss to the American

people. Only our great weal th enabled us to stand thedrain of it as long as we did.

The United States has been Ransacked

"The United States has been ransacked and pil-

laged. Our structures have been gutted and only the

walls are le f t standing. While this crime was beingperpetrated, every th ing the world could rake up to sellus was brought in here at our expense by the Fed un-

ti l our markets were swamped with u n n eeded and

unwanted imported goods priced far above their value

and made to equa l the dollar volume of our honest

exports, and to kill or reduce our favorite ba lance of

trade. As Agents of the fore ign central banks the

Fed t ry by every m e a n s in the i r power to reduce ourfavorable balance of trade. They act for their fore ignprincipals and they accept fees f rom fore igners fo racting against the best in terests of these United States.Naturally there has been great competition among for-

e igners for the favors of the Fed.

"What we need to do is to send the reserves of our

N a t i o na l Banks home to the people w ho ea rned an d

produced them and who still ow n them and to the



BY HON. L O U I S T . McFADDEN, 1934 15

banks which were compelled to surrender them to

predatory interests.

"We need to destroy the Fed w h e r e i n our n a t i o n a lreserves are impounded for the benef i t of the for-

eigners.

"We need to save A m e r i c a for Americans.

Spurious Securities

"Mr. C h a i r m a n , w h e n you hold a $10.00 Fed Note

in your hand, you are holding a piece of paper whichsooner or later is going to cost the United States Gov-ernment $10.00 in gold (unless the Government is

obl iged to go off the gold standard). It is based onlimburger cheese (reported to be in foreign ware-

hou s es ) or in cans purported to conta in peas (but

may contain salt water i n s t e a d ) , or horse meat, illicit

drugs , bootleggers fancies , rags an d bones f rom So-

viet Ru s s ia (of which these United Sta tes imported

over a mil l ion dollars worth last y e a r ) , on wi n es ,whiskey , natural gas, goat and dog fur , garlic on the

string, and Bombay ducks.

"If you like to have paper m o n e y — w h i c h is securedby such commodities—you have it in the Fed Note. If

you desi re to obtain the t h i n g of va lue upon which

this paper currency is based, that is, the limburgercheese, the whiskey , the illicit drugs, or any of the

other staples—you will have a very hard time f inding

them.

"Many of these w o r s h i p f u l commodi t i es a re in for-

eign Count r i e s . Are you going to G e r m a n y to in-

spect her w a r e h o u s e s to see if the specified things ofvalue are there? I t h i n k not. And w h a t is more, I do

not th ink that you would find them the re if you did go.



16 THE FEDERAL R E S E R V E IN C O N G R E S S

"O n Apr i l 27 , 1932, the Fed outfit sent $750 ,000be long ing to A m e r i c a n b a n k depositors in gold to Ger-m a n y . A w e e k l a t e r another $300,000 in gold w asshipped to Germany. About the middle of May $12,-

000,000 in gold was shipped to Germany by the Fed.

Almost every week t h e r e is a shipment of gold to Ger-many. These shipments are not m a d e for profi t on the

exchange since the German m a r k s are below p a r i t yw i t h the dollar.

"Mr. Chairman, I believe that the National Bankdepositors of these United States have a right to know

what the Fed are doing w i t h their money. There are

mi l l i ons o f Na t iona l B a n k depositors in the C o u n t r yw ho do not know that a p e rc en t a ge of eve ry dollar

they depos i t in a Member Ba n k of the Fed goes au to -mat ica l ly t o Am er ic a n Agents of the f o r e ign banksan d that all their deposits can be pa id away to fore ign-

ers without their knowledge or consent by the crookedmachinery of the Fed and the questionable practices of

the Fed.

"Mr. C h a i r m a n , the A m e r i c a n people should be

told the truth by the i r servants in office. In 1930,w ehad over a ha l f bi l l ion d o l l a r s o u t s t a n d i n g daily tof inance fo re ign goods stored in or shipped betweenCountries. In its yearly total, this item amounts to

several billion dollars. What goods are these onwh i c h the Fed yearly pledge several bi l l ions of dollarsof the publ i c credit of these United States?

"What goods are those which are hidden in Euro-

pean and Asiatic storehouses and which h a v e not beenseen by any officer of our Government but which are

be ing f inanced on the publ ic c red i t of the United StatesG o v e r n me n t ? What goods are those upon which the



BY HON.LOUIS T. McFADDEN, 1934 17

United States Government i s being obligated by theFed to

issueFed

No t esto the

extentof

several bil-l ions of dollars a y e a r ?

The Bankers' Acceptance Racket

"The Fed have been In te rna t iona l Banks from the

beg inn ing , wi th these United States as their enforcedbanker and supplier of currency. But it is none the less

extraordinary to see these twe lve private cred i t monop-

olies, b u y in g the debts of fo r e i gne r s against fore ign-ers, in all parts of the world and asking the Govern-

ment of these United States for new issues of Fed

Notes in exchange for them.

"The magni tude of the acceptance racke t as it hasbeen developed by the Fed,their fore ign correspond-

ents, and the predatory European born bankers , w hoset up the Fed here an d t aught your own, by and of

pi ra tes , how to loot the peo p l e : I say the magn i tudeof this racket is estimated to be in the ne ighborhoodof 9 ,000 ,000 ,000 pe r year . In the past ten yea r s it issaid to have amounted to $9 0 ,000 ,000 ,000 . 00 . In myopinion it has amounted to several t imes that much.Coupled to th is you have—to the extent of bil l ions of

dollars, the gambl ing in the U ni t ed States securities,which takes place in the same open discount market—

a gambling on which the Fed is now spending $100,-000,000.00 per week.

"Fed Notes are taken from the U. S. Gov e rn me n tin u n l im i t ed quant i t i es . Is it strange that the burden

of supplying these immense s u m s of money to the gam-

bling f r a t e rn i ty has at last proved too h e a v y for the

A m e r i c a n people to e n d u r e ? Would it not be a na-

tional ca l ami ty if the Fed should again bind down thisburden on the backs of the Amer ican people and by



18 THE F E D E R A L R E S E R V E IN C O N G R E S S

means of a long rawhide whip of the credit masters,

compel them to enter another seventeen years of

slavery ?

"They are t ry ing to do that now. They are t ryingto take $100,000,000.00 of the public credit of theUnited States every week, in addition to all their otherseizures an d they are sending that money to the ne-far ious open mark e t in a desperate gamble to re-establish their gra f t as a going concern.

"They are putting the United States Governmentin debt to the extent of $100,000,000 a week , andwith the money they are buying our Government se-

curities for themselves and their fore ign principals.

Our people are disgusted with the experiences of the

Fed. The Fed is not producing a loaf of bread, a yardof cloth, a bushel of corn, or a pile of cordwood by

its check-kiting operations in the money market.

"Mr. Speaker, on the 13th of January of this yearI addressed the House on the subject of the Recon-struction Finance Corporation. In the course of myremarks I m a d e the fol lowing s ta temen t : In 1928 themember banks of the Fed bor rowed $60,598,690,000.

from the Fed on their fifteen-day promissory notes.Think of it. Sixty billion dollars payable on demand

in gold in the course of one single year. The actualamount of such obligations called for six t imes as muchmoneta ry gold as there is in the world. Such trans-actions represent a grant in the course of one singleyears of about $7,000,000 to every member of the

Fed.

"Is it any wonder that American labor which ulti-

mately pays the cost of all banking operations of this

Country has at last proved u n e q u a l to the task of sup-



BY HON. LO U I S T. M c F A D D E N , 1934 19

plying this huge total of cash and credit for the benefitof the stock m a r k e t manipulators and foreign swin-dlers?

"In 1933 the Fed presented the staggering a m o un tof $6 0 ,5 9 8 ,6 9 0 ,000 to its m e m b e r banks at the ex-pense of the wage earners and tax payers of these

Uni t ed States. In 1929, the year of the stock market

crash, the Fed advanced $5 8 ,000 ,000 ,000 to memberbanks.

"In 1930 while the speculating banks were gett ingout of the stock market at the expense of the general

public, the Fed advanced them $1 3 ,0 22 ,782 ,0 0 0 . Thisshows that w h e n the b a n k s were gambling on the pub-lic credit of these United States as represented by the

Fed currency they were subsidized to any amount they

r e q u i r e d by the Fed.When the swindle began to fal l ,

the bankers knew it in advance and withdrew f romthe market. They got out w i th whole skins—and le f tthe people of these United States to pay the piper.

"M y f r iend f rom Kansas , M r. Mc Gugin , has s tatedthat he thought the Fed l en t money on rediscounting.So they do, but they lend comparatively little that

way. The real discounting that they do has beencalled a mere p e n n y in the slot business. It is too slow

for genu ine high flyers. They discourage it. Theyp r e f e r to subsidize their favor i te banks by m a k i n gthem $6 0 ,000 ,000 ,000 advances and they p r e f e r to ac-qu i re assistance in the notorious open discount market

in New York, wh e re they can use it to control theprice of stocks and bonds on the exchanges .

"For every dollar they advanced on discounts in

1928, they lent $33.00 to their favori te banks forwhom they do a business of several billion dollars



20 THE F E D E R A L R E S E R V E IN C O N G R E S S

every year, pay no income tax on their profits to these

United States.

The John Law Swindle

"This is the John Law swindle over aga in . The

thef t of Teapot Dome was tr ifling compared to it.

What K i n g ever robbed his subject to such an extent

as the Fed has robbed us? Is it any wonder that there

have been lately n ine ty cases of starvation in one ofthe New York hospitals? Is there any w o n d e r that

the children are being abandoned?

"The government and the people of these United

States have been swindled by swind le rs deluxe to w h o mthe acquisi t ion of American or a parce l of Fed Notes

presented no more difficulty than the drawing up of

a worthless acceptance in a Country not subject to the

laws of these United States, by sharpers not subject

to the ju r i sd ic t ion of these United States, sharperswith strong banking "fence" on this side of the water,

a "fence" acting as a receiver of a worthless paper

coming from abroad, indorsing i t and getting the cur-rency out of the Fed for it as quickly as possible ex-

changing that currency for gold and in turn t ransmit -t ing the gold to its foreign confederates.

Ivar Krueger, the Match King!

"Such were the exploits of Ivar Krueger , M r.Hoover's fr iend, and his rotten Wall Street backers.Every dollar of the bil l ions Kreuger and his gang

drew out of this Country on acceptances was drawn

from the G o v e r n m e n t and the people of the United

States through the Fed. The credit of the United

States Government was peddled to him by the Fed



BY HON. LOUIS T. M c F A D D E N , 1934 21

for their own private gain. That is what the Fed hasbeen doing for m a n y years.

"They have been peddling the credit of this Gov-ernment and the signature of this Government to the

swindlers and speculators of all nat ions . That is what

happens when a Coun t ry forsakes its Consti tut ion andgives its sovereignty over the publ ic currency to pri-

vate interests. Give them the flag and they will sell it.

"The na tu re of Kreuger ' s organ ized swindle an dthe b a n k r u p t condition of Kreuger's combine was

k n o w n here last June w h e n Hoover sought to exempt

Krueger ' s loan to Germany of $125,000,000 from theoperat ion of the Hoover Moratorium. The ba nk r up tcondition of Krueger's swindle was known here last

s um m er when $30 ,000 ,000 w as taken from the Ameri-

can taxpayers by certain bankers in New York for the

ostensible purpose of pe rmi t t ing Krueger to make aloan to Colombia . Colombia never saw that money .

"The na tu r e of Krueger's swindle was known herein J anu a ry when he visited his fr iend, M r. Hoover,at the White House. It was known here in March be-

fore he went to Paris and committed suicide.

"Mr. Ch a i rman , I think the people of the United

States are enti t led to know how m a n y billions of dol-lars were placed at the disposal of K r uege r and hisgigantic combine by the Fed, and to know how m u c hof our Government currency w as issued and lost inthe f inanc ing of that great swindle in the years during

which the Fed took care of Krueger's requirements.

"A few days ago, the Pres iden t of the United

States wi th a w h i t e face and shaking h a n ds , went be-

fore the Senate on behal f of the moneyed interests an d



22 T HE FEDERAL R E S E R V E IN CONGRESS

asked the Senate to levy a tax on the people so that

fo re igners might know that these United States wouldpay its debt to them.

"Most Americans thought it was the other way

a r o u n d . What does these United States owe to for-

eigners? When and by whom was the debt i ncur red?It was incurred by the Fed, when they peddled the sig-na tu r e of the Government to foreigners—for a Price.It is what the United States Government has to pay to

redeem the obligations of the Fed.

Thieves Go Scot Free

"Are you going to let these thieves get off scot f r e e ?Is there one law for the looter who drives up to the

door of the United States Treasury in his l imous ineand a n o t h e r for the United States Veterans who are

sleeping on the floor of a dilapidated house on the out-

skirts of Washington?"The Bal t imore and Ohio Railroad is h e r e asking

for a large loan from the people, and the wage earn-ers and the taxpayers of these United States. It is beg-

ging for a h a n d o u t f rom the Government. It is s tand-ing, cap in hand , at the door of the R.F.C. where allthe jackals have ga the red to the feast . It is askingfor money that w as raised from the people b y t axa-

tion and wants this money of the poor for the benef i tof K u h n , Loeb and Co.,the German International

Bankers .

"Is there one law for the Baltimore and Ohio Rai l -road and another for the hungry veterans it threw off

its f r e igh t cars the other day? Is there one law for

sleek and prosperous swind le rs w ho call themselvesbankers an d another law for the soldiers who d e f e nd e dthe f lag?




"The R. F. C. is taking over these worthless securi-ties f rom the Investment Trusts with United States

Treasury m o n e y at the expense of the American tax-payer and the wage earner.

"It will take twenty years to redeem our Govern-ment. Twenty years of pena l serv i tude to p ay off thegamb l ing debts of the t ra i to rous Fed and to earn againthat vast flood of Amer ican wages and savings, bankdeposits, and United States Government credit which

the Fed exported out of this country to their foreignprincipals.

"The Fed lately conducted an ant i -hoard ing cam-paign here. Then they took that extra money whichthey had pe r suaded the American people to put intothe banks—they sent it to Europe—along with therest. In the last several months , they have sent $1,-300,000,000 in gold to their foreign employers, their

foreign masters , and every dollar of that gold be-longed to the people of these United States and wasunlawfully taken from them.

Fiat Money

"Mr. C ha i rm a n , within the l imits of the t ime al-lowed me, I cannot enter into a particularized discus-sion of the Fed. I have singled out the Fed currencyfor a few remarks because there has lately been sometalk here of "fiat money". What kind of money isbe ing pumped into the open discount market andthrough it into foreign channels and stock exchanges?M r. Mills of the Treasury has spoken here of his hor-ror of the printing presses and his horror of dishonest

money. He has no horror of dishonest money. If he

had, he would be no party to the present gambl ing ofthe Fed in the nefar ious open discount market of New




York, a market in which the sellers are represented by10 discount corporations owned and organized by the

very banks wh i c h own and control the Fed.

"Fiat money , i n d e e d !

"What M r. Mil l s is fighting for is the preserva-tion, whole an d en t i re , of the banker ' s monopoly ofall the currency of the United States Government.

"Mr. C h a i r m a n , last Decembe r , I in t roduced a res-

olut ion here asking for an examina t ion and an a u d i tof the Fed and all related matters. If the House sees

fit to make such an i nv e s t i g a t i o n , the people of these

United States wil l obta in i n fo rm a t ion of great value .This is a Government of the people, by the people, for

the people. Consequen t ly , nothing should be concealedf rom the people. T h e m a n w h o deceives the people isa traitor to these United States.

"The man who knows or suspects that a c r ime hasbeen commi t ted and who conceals and covers up that

crime is an accessory to it. Mr. Speaker, it is a mon-

s t rous th ing for this great n a t i o n of people to haveits dest in ies pres ided over by a t r a i to rous government

board act ing in secre t concert with i n t e rna t iona lusure rs .

"Every effort has been made by the Fed to conceal

its powers—but the truth is—the Fed has usu rped the

G o v e r n m e n t . It controls eve ry th i ng he r e and it con-trols all our foreign relations. It makes and breaks

g o v e r n m e n t s at will .

"No man and no body of men is more en t renchedin power than the arrogant credit monopoly which op-

erated the Fed. What National Government has per-

mitted the Fed to steal f rom the people should now



BY HON. L O U I S T. M c F A D D E N , 1934 25

be r e s to red to the people. The people have a valid

claim agains t the Fed. If that claim is enforced A m e r -icans will not need to stand in the bread line, or to

suffer and die of s t a rva t ion in the s t ree ts . Women

wil l be saved, fami l i es wil l be kept together, an d Amer-

ican chi ldren will not be d i spe rsed and abandoned .

"Here is a Fed Note. I m m e n s e n u m b e r s of thesenotes are now held abroad. I am told that th e y am o u n tto u p w a r d s of a bi l l ion dollars. They cons t i tu te a

claim against our Government and l ikewise a claimagainst our peoples' m o n e y to the exten t of $1,300,-

0 0 0 , 0 0 0 wh i c h has with in the las t f e w m o n t h s beensh ipped a b r o a d to r ed eem Fed Notes and to pay other

gambling d eb t s of the t r a i t o r o u s Fed. The greater

part of our m o n e y stock has been shipped to other

l ands .

"Why should we promise to pay the deb t s of for-

eigners to fo re igne r s? Why should the Fed be per-

mitted to finance our competitors in all parts of the

w o r l d ? D o y o u know why the tariff w as r a i s e d ? I tw as ra i sed to shut out the flood of Fed Goods p o u r -ing in here f rom every quar te r o f the g lobe—cheapgoods, produced by cheaply pa id fore ign l abo r , on un-limited supplies of m o n e y and credit sent out of this

C o u n t r y by the dishones t an d unsc rupu l ous Fed.

"The Fed are spending $100,000,000 a week buy-

in g government secur i t ies in the open m a r k e t and aremaking a great bid for foreign bus iness . They are try-

in g to m a k e rates so attractive that the h u m a n h a i rm e r c h a n t s and the dis t i l le rs an d other bus iness en t i -ties in foreign lands will come here and hire more of

the publ ic credit of the United Sta tes G o v e r n m e n t to

pay the Fed outf i t for getting it for them.



26 T H E F E D E R A L R E S E R V E IN C O N G R E S S

World Enslavement Planned

"Mr. C h a i r m a n , w hen the Fed was passed, the peo-ple of these United States did not perceive that a

world system was being set up here which would m a k ethe savings of the American school teacher avai lableto a narcotic-drug vendor in Acao. They did not per-

ceive that these United States was to be lowered to

the posit ion of a coolie country which has no th ing bu traw mate r i a l s an d heavy goods to expor t , that Rus-

sia was destined to supply the man power and thatthis Country was to supply the financial power to an

" in t e rna t iona l superstate". A supers ta t e control ledby i n t e r n a t i o n a l bankers, and international i n du s t r i a l -

ists acting together to enslave the world for their own

pleasure I

"The people of these United States are being grea t lyw r o n g e d . They have been dr iven f rom their employ-

ments. They have been dispossessed from t h e i r homes.They have been evic ted f rom their rented quarters.

They have lost the i r chi ldren . They have been l e f t tosuffer and die for lack of shelter , food , clothing andm e d i c i ne .

"The wealth of these United States and the work-

ing cap i t a l have been taken a w a y f rom them and has

e i ther been locked in the vaul ts of cer ta in banks andthe great corporations or exported to fo re ign coun-

tries for the benef i t of the fo re ign customers of these

ban ks and corpo rat ions . So far as the people of theUnited States are concerned , the cupboard is ba re .

"It is t r u e t h a t the warehouses and coal y a r d s and

grain elevators are full , but these are padlocked, and

the great banks an d corporations hold the keys.




"The sack of these United States by the Fed is thegreatest crime in history.

"Mr. Ch a i r m a n , a serious si tuation confronts theHouse of Representatives today. We are trustees of

the people and the r ights of the people are being t akenaway from them. Through the Fed the people are

losing the rights guaranteed to them by the Const i tu-tion. Their property has been taken from them with-out due process of law. Mr. Chai rman, common de-

cency requires us to examine the public accounts of theGovernment and see what crimes against the publicwelfare have and are being committed.

"What is needed here is a return to the Consti tu-tion of these United States.

"The old struggle that w as fought ou t here in Jack-son's t ime must be fought ou t over again. T he inde-

pendent United States Treasury should be re-estab-l ished and the Government should keep i ts own moneyu n de r lock and key in the bui lding the people providedfor that purpose.

"Asset currency, the devise of the swindler, shouldbe done away with. The Fed should be abolished and

the State boundar ies should be respected. Bank re-serves should be kept within the boundar ies of theStates whose people ow n them, and this reserve moneyof the people should be protected so tha t the In te rna -tional Bankers and acceptance bankers and discountdealers cannot draw it away from them.

"The Fed should be repealed, and the Fed Banks,having violated their charters, should be l iquidatedimmediately. Faithless Government officials who have



28 THE FEDERAL RESERVE IN CONGRESS

violated their oaths of office should be impeached and

brought to trial.

"Unless this is done by us, I predict , that the Amer-

ican people , outraged, pi l laged, insul ted and be t r ayedas they are in the i r ow n l and , wil l rise in their w r a t h ,an d will sweep the money changers out of the temple.

"Mr. C ha i r ma n , the Uni ted States is b a n k r u p t : Ithas been b a n k r u p t e d by the corrupt an d dishones t Fed.It has r epud i a t ed its deb ts to its own cit izens. Its

chief fore ign creditor is Great Br i t a in , and a Bri t ishbailiff has been at the White House an d Bri t i sh Agents

are in the United States Treasury m a k i n g i nven tor ie san d arranging terms of l i qu ida t ion s !

Great Britain, Partner in Blackmail

"Mr. C h a i r m a n , the Fed has offered to collect the

British claims in full from the A m e r i c a n publ ic by

t r ickery and cor rup t ion , i f Great Britain wil l help toconceal its cr imes. The British are shie ld ing the iragents , the Fed, because they do no t wish that systemof robbe ry to be destroyed here. They wish it to con-t inue for the i r benef i t ! B y m e a n s of it, Great Br i t a i nhas become the financial mis t ress of the world. Shehas regained the posit ion she occupied before theWorld War.

"For several years she has been a si lent p a r t n e r in

the business of the Fed. Under th rea t of blackmail , orby their bribery, or by the i r na t ive t r e a c he ry to the

people of the United Sta tes , the officials in charge ofthe Fed unwisely gave Great Br i ta in imme nse gold

loans runn ing into hundreds of millions of dollars.They did this against the l a w ! Those gold loans werenot single transactions. They gave Great Britain a




borrowing power in the United States of bi l l ions . She

squeezed billions out of this Country by means of her

control of the Fed.

"As soon as the Hoover M o r a t o r i u m was an-

nounced , Great Br i t a i n moved to consolidate her gains.

After the t reacherous signing away of Amer ican rights

at the 7-power confe rence at London in July, 1931,

which put the Fed under the control of the Bank of

International Settlements, Great Britain began to

tighten the hangman's noose around the neck of theU ni t ed States.

"She abandoned the gold standard and embarkedupon a campaign of buying up the claims of foreigners

against the Fed in al l parts of the world. She has nowsent her bailiff, Ramsey MacDonald, here to get herwar debt to this country cancelled. But she has a club

in her hands! She has title to the gam bl ing debts whichthe cor rup t an d dishonest F ed incurred abroad .

"Ramsey MacDonald, the labor party deser ter , hascome here to compel the President to sign on the

dotted line, and that is what Roosevelt is about to do!

Roosevelt will endeavor to conceal the n a tu re of hisaction from the American people. But he will obey

the International Bankers and transfer the war debt

that Great Bri ta in should pay to the A m erican people ,to the shoulders of the Ame r i can taxpayers.

"Mr. C ha i rm a n , the ba nk holiday in the several

States was brought about by the corrupt and dishonest

Fed. These ins t itu t ions m anipula ted money and credit,and caused the States to order bank holidays.

"These holidays were f rame-ups!

"They were dress rehearsals for the nat iona l -bank



30 THE FEDERAL RESERVE IN CONGRESS

holiday which Franklin D. Roosevel t promised Sir

Ramsey MacDonald that he would declare.

"There was no nat ional emergency here whenFranklin D. Roosevelt took office excepting the bank-ruptcy of the Fed—a bankruptcy which has been goingon under cover for several years and which has beenconcealed f rom the people so that the people wouldcontinue to permit their bank deposits and their bank

reserves and their gold and the funds of the United

States Treasury to be impounded in these bankrup tinstitutions.

"Under cover, the preda tory In te rnat ional Bankershave been stealthily transfer rin g the burden of the Feddebts to the people's Treasury and to the people them-selves. They have been using the f a r m s and the homesof the United States to pay for their thievery ! That

is the only national emergency that there has been

here since the depression began."The week before the bank holiday w as declared

in New York State, the deposits in the New York sav-

ings banks w e r e greater than the withdrawals. Therewere no runs on New York Banks. There was no needof a bank holiday in New York , or of a nat ional holi-day.

Roosevelt and the International Bankers"Roosevelt did what the International Banker s or-

dered him to do!

"Do not deceive your self , Mr. C h a i r m a n , or permit

yourself to be deceived by others into the belief tha tRoosevelt's dictatorship is in any way intended tobenefit the people of the United States: he is preparing

to sign on the dotted line !




"He is pre parin g to cancel the war debts by f r a u d !

"He is preparing to i n t e r n a t i o n a l i z e this C o u n t r yand to destroy our Const i tu t ion i t se l f in order to keep

the Fed in tac t as a money ins t i tu t ion for f o r e i g n e r s !

"Mr. C h a i r m a n , I see no reason why ci t izens of the

United States should be terrorized in to s u r r e n d e r i n gtheir property to the International B a n k e r s who own

and control the Fed. The statement that gold would

betaken

f rom its l awf u lowners

ifthey

did not volun-ta r i ly surrender it, to private interests, shows that

there i s an anarchis t in our Government.

"The s t a t e m e n t that it is necessary for the people

to give their gold—the only real money—to the banks

in order to protect the currency, is a s ta temen t of cal-culated dishones ty!

"By his u n l a w f u l usu rpa t ion of power on the nightof March 5, 1933, and by his proclamation, which in

m y opin ion was in violation of the Const i tu t ion ofthe United States, Roosevelt divorced the currency of

the United States f rom gold, and the United States

currency is no longer protected by gold. It is there-fore sheer dishonesty to say that the people's gold is

needed to protect the currency.

"Roosevelt ordered the people to give the i r goldto pr iva te in teres ts—that is, to banks , and he took con-

trol of the banks so that all the gold and gold values

in them, or given into t h e m , might be h a n d e d over to

the p reda to ry In t e rna t iona l Bankers who own andcontrol the Fed.

"Roosevel t cast in his lot with the usurers .

"He agreed to save the corrupt and dishonest Fed




at the expense of the people of the United States.

"He took a d v a n t a g e of the people's confusion andweariness and spread the dragnet over the United

States to capture everything of value that was l e f t in

it. He m a d e a great h a u l for the International Bank-ers.

"The Prime Minister of England came here for

m o n e y ! He came here to collect cash!

"He came he re wi th Fed C u r r e n c y and other c la imsagainst the Fed which England had bought up in a l lparts of the world. And he has presented them for

redempt ion in gold.

"Mr. C h a i r m a n , I am in f a vo r of compel l ing the

Fed to pay t he i r own deb ts . I see no reason why the

g e n e r a l publ ic should be forced to pay the gambling

debts of the In te rna t iona l B a n k e r s .

Roosevelt Seizes the Gold

"By his action in closing the banks of the United

States, Roosevelt seized the gold value of forty bil-l ions or more of b a n k deposits in the United States

banks . Those deposi ts w e r e deposi ts of gold values.By his action he has rendered them payable to the

depositors in paper only, if payab le at all, and the

paper m o n e y he proposes to pay out to b a n k deposi-tors and to the people genera l ly in lieu of the i r hard

earned gold values in itself, and being based on noth-

ing into which the people can convert i t the said paper

money is of negl ig ib le value altogether.

"It is the m o n e y of slaves, not of f ree men. If thepeople of the United States p e r m i t it to be imposed

upon them at the wil l of t h e i r credit masters, the next

step in t h e i r d o w n w a r d progress wil l be the i r accept-




ance of orders on company stores for what they eat

and wear. Their case wil l be similar to that of starv-

ing coal m i n e r s . They, too,wil l be paid with orders

on Company stores for food and clothing, both of in-

d i f f e r en t qua l i ty and be forced to live in Company-

owned houses f rom wh ich they may be evicted at the

drop of a hat. More of them wil l be f o rce d into con-

script labor camps under superv i s ion .

"A t noon on the 4th of M a r c h , 1933, FDR, wi th

his hand on the Bible , took an oath to preserve, pro-tect and d e f e n d the Constitution of the U.S.At mid-

night on the 5th of March, 1933, he confiscated the

property of Am er ic a n c i t i z en s . He took the cur rencyof the United States off the gold standard of value.

He r e p u d i a t e d the internal debt of the Government to

its own c i t i zens . He destroyed the value of the Ameri-

can dollar. He r e l ea s ed , or endeavored to re l ease , the

Fed f rom t h e i r c on t ra c t u a l l iab i l i ty to redeem Fed

c u r ren c y in gold or l awf u l money on a parity with

gold. He dep rec ia t ed the v a l u e of the national cur-

rency.

"The people of the U.S.are now using unredeem-

able paper slips for money. The Treasury cannot re-

d eem that paper in gold or silver. The gold and sil-

ver of the Treasury has un l aw f u l l y been given to thecorrupt and dishonest Fed. And the Administration

has since had the ef f ron t e ry to raid the country for

more gold for the private interests by telling our pa-

triotic ci t izens that their gold is needed to protect

the currency.

"It is not being u s ed to protect the c u r r e n c y ! It is

being used to protect the corrupt and dishonest Fed.

"The directors of these i n s t i t u t i ons have commi t -




ted c r imina l offense aga in s t the United States Govern-

m e n t , inc luding the offense of m a k i n g false entr ies ontheir books, and the still more serious offense of un-

lawfully abstract ing funds from the United Sta tesTreasury!

"Roosevelt's gold raid is in tended to help them outof the pit they dug for themselves when they gambled

a w a y the wea l th and savings of the Amer ican people.

Dictatorship

"The I n t e r n a t i o n a l Bankers set up a dictatorshiphere because they wanted a dictator who would protect

them. They w a n t e d a dictator who would issue a proc-

lamation giving the Fed an absolute and uncond i -tional release f rom their special currency in gold, or

l awfu l money of any Fed Bank.

"Has Roosevelt re leased any other class of debtors

in this country f rom the necessity of paying the i rdebts? Has he m a d e a proc lamat ion telling the fa rm-ers that they n eed not pay t he i r mortgages? Has he

m a d e a proc lamat ion to the effect that mothers of

starving children need not pay their milk bills? Has

he made a proclamation relieving householders from

the necessi ty of pay ing rent?

Roosevelt's Two Kinds of Laws

"Not he! He has issued one kind of proclamationonly, and that is a proclamation to relieve interna-

t ional banke r s and the foreign debtors of the U ni t edStates Government.

"Mr. C h a i r m a n , the gold in the banks of this coun-try belongs to the American people who have papermoney contracts for i t in the form of national cur-

rency. If the Fed cannot keep their contracts with




United States citizens to redeem their paper money ingold, or lawful money , then the Fed must be takenover by the United States Government and the i r o f f i -

cers m u s t be put on trial.

"There m u s t be a day of reckoning. If the Fedhave looted the Treasury so that the Treasury cannot

redeem the Un i t e d States currency for which it is l iablein gold, then the Fed must be driven out of the Treas-ury.

"Mr. Ch a i r m a n , a gold certificate is a warehousereceipt for gold in the Treasury, and the man who

has a gold certificate is the actual owner of a corre-sponding amount of gold stacked in the Treasury sub-

ject to his order.

"Now comes Roosevelt who seeks to render the

money of the United States worthless by unlawful ly

proclaiming that it may Not be converted in to goldat the will of the holder.

"Roosevelt's next hau l for the Internat ional Bank-ers was the reduction in the pay of all Federal em -ployees.

"Next in order are the veterans of all wars, m a nyof whom are aged and infi rm, and others sick and dis-

abled. These men had their lives adjusted for themby acts of Congress determining the amounts of thepensions, and, while it is m e a n t that every citizenshould sacrifice himself for the good of the United

States, I see no reason why those poor people , theseaged Civil War Vete rans and war widows and half-starved veterans of the World War, should be com-pelled to give up their pensions for the financial bene-

fit of the International vultures who have looted the




Treasury, b a n k r u p t e d the country and t r a i to rous ly de-livered the United States to a fore ign foe.

"There are m a n y w a y s of ra is ing revenue that arebetter than that barbaric act of in just ice.

"Why not collect f rom the Fed the amoun t theyowe the U.S.Treasury in interest on all the Fed cur-

rency they have t aken f rom th e G o v e r n m e n t ? That

would put bil l ions of dol la rs i n to the U.S.Treasury.

"If FDR is as honest as he pretends to be, he willhave that done immediately. And in addition, why not

compel the Fed to disclose the i r profi ts and to pay

the Government its sha re?

"Until this is done, it is rank dishonesty to talk of

main ta i n i ng the credi t of the U.S.G o v e r n m e n t .

"My own salary as a m e m b e r of Congress has beenreduced, and while I am willing to give my part of it

that has been taken a w a y from me to the U.S.Gov-ernment, I regret that the U.S.has suf fered i t self to be

brought so low by the vu l tu res and crooks who are

operating the roulette wheels and faro tables in the

Fed, that is now obliged to throw i tself on the mercy

of its legislators and cha rwomen , its clerks, and itspoor pens ioners and to take m on ey out of our pocketsto make good the defa lca t ions of the International

Bankers who were placed in control of the Treasuryand given the monopoly of U.S.Currency by the mis-begotten Fed.

"I am well a w a r e that the In te rna t iona l Banke rswho drive up to the door of the United States Treas-

ury in their l imousines, look down with scorn uponm e m b e r s of Congress because w e work for so li t t le ,

whi le they draw mil l ions a year. T he difference is that




we earn, or try to earn, what we get—and they steal

the greater part of their takings.

Enemies of the People They Rob

"I do not like to see vivisections performed on hu-

man beings. I do not like to see the American people

used for experimental purposes by the credit masters

of the United States. They predicted among them-

selves that they would be able to produce a condition

here in which American citizens would be completely

humbled and left s ta rving an d penni less in the streets.

"The fact that they made that assertion while theywere fomenting their conspiracy against the United

States shows, that they like to see a human being, espe-

cially an Ame r i can , s tumbl ing from h u n ge r when hewalks .

"Something should be done about it, they say. Five-

cent meals, or something!

"But F D R will not p e r m i t the House of Represen-ta t ives to invest igate the condit ion of the Fed. FDR

will not do that. He has certain In t e rn a t i on a l Bank-ers to serve. They now look to him as the man Higher

U p w ho will protec t them from the j u s t wrath of anoutraged people.

"The I n t e rna t i o na l Bankers have always hated ou rpensioners. A man with a small pension is a ward of

the Gove rnm ent . He is not dependen t upon them fora salary or wages. They cannot control him.They

do not like him. It gave them great pleasure, there-

fore, to slash the veterans.

"But F D R will never do anything to e mb ar ra s s his

financial suppor ters . He will cover up the crimes ofthe Fed.




"Before he was elected, M r. Roosevelt advocated areturn to the earlier practices of the Fed,thus ad-

mitting its corruptness. The D e m o c r a t i c p la t fo rm ad-

vocated a change in the personnel of the Fed. These

were campaign bait. As a prominent Democrat la telyremarked to me:—'There is no new deal . The same

old crowd is in control.'

"The claims of foreign credi tors of the Fed haveno validity in law. T he foreign credi tors were the re-

ceivers—and the willing receivers—of stolen goods!They have received through their banking fences im -mense amounts of currency, and that currency was un-lawfully taken from the United States Treasury bythe Fed.

"England discovered the irregularities of the Fedqui te early in its operations and through f ea r , appar-

ently, the Fed have for years suffered themselves to

be blackmailed and dragooned into permi t t i ng Eng-land to share in the business of the Fed.

"The Fed have unlawfully taken many millions of

dollars of the public credi t of the United States andhave given it to foreign sellers on the security of the

Debt paper of foreign buyers in pure ly foreign trans-actions, and when the foreign buyers refused to meet

their obligations and the Fed saw no honest way of

get t ing the stolen goods back into their possession,they decided by control of the executive to make theAmerican people pay the i r losses!

Conspiracy of War Debts

"They l ikewise entered in to a conspiracy to depr ivethe people of the U.S.of their title to the war debts

and not being able to do that in the way they in tended ,

they are now engaged in an effort to debase the Ameri-



4 0 T H E F E D E R A L R E S E R V E IN C O N G R E S S

"Let the Fed meet their own obligations.

"Every m e m b e r of the Fed should be compelled todisgorge, an d every acceptance b a n k e r a n d every dis-count corporation which has made i l legal profits b ymeans of publ ic credi t u n la wfu l l y bootlegged out ofthe U.S. Treasury and h i r e d out by the crooks and

vultures of the Fed should be compel led to disgorge.

Federal Reserve Pays No Taxes

"Gambling deb ts due to fo r e i gn rece ivers of stolengoods should not be pa id b y sacr i f icing ou r t i t le to ourwar debts, the assets of the U.S. Treasury—which be-

long to all the peop le of the U.S.an d which it is ourduty to p r e s e r v e inviolate in the people's treasury.

"The U.S. Treasury canno t be m ade l iab le for them.

The Fed cur rency m u s t be r e d e e m e d by the Fed b a n k sor else these Fed b a n k s must be l i qu ida ted .

"We know f rom asse r t ions m a d e here by the Hon.

John N. Garner, Vice -Pres i d en t of the U.S., that t h e r eis a condition in the U.S. Treasury which w o u l d causeAmer ican c i t izens , i f they knew what it was, to lose

all confidence in the i r government.

"That is a condi t ion that Rooseve l t wil l not h a v einvestigated. He has b r o u g h t w i t h him f rom Wall

Street, James Warburg, the son of Paul M. Warburg.

Mr. Warburg is the h e a d of the B a n k of M a n h a t t a nCompany. Mr. Warburg, alien b o r n , and the son of

an alien who d id no t become n a t u r a l i z e d h e r e u n t i lseveral years a f t e r this Warburg's b i r th , is a son ofa f o r m e r partner of K u h n , Loeb an d Co.,a grandson

of a n o t h e r partner, a nephew of a fo rmer partner, an d

a nephew of a present partner.




"He holds no o f f i c e in our Governmen t , but I amtold that he is in daily at tendance at the Treasury , andthat he has private quarters there! In other words,

Mr. Chairman, K u h n , Loeb and Company now con-trol and occupy the U.S. Treasury.

Preferred Treatment for Foreigners

"The text of the Executive order which seems toplace an embargo on shipments of gold permits the

Secretary of the Treasury, a former director of the

Fed of New York, the practices of which have b eencorrupt, to issue licenses at his discretion for the ex-

port of gold coin, or bullion, earmarked or held in

trust for a recognized foreign government or foreign

central bank fo r in ternational se t t lement. Now, M r.Chairman, if gold held in trust for those foreign in-

stitutions may be sent to them, I see no reason why

gold held in trust for Americans as evidenced by their

gold cert i f icates and other currency issued by the U.S.Government should not be paid to them.

"I think that American citizens should be entitled

to treatment at least as good as that which the pres-

ent administration is extending to foreign govern-

ments , foreign central banks, and the bank of Inter-nat ional Set t lements . I think a vete ran of the world

war, with a $20.00 gold certificate, is at least as muchentitled to receive his own gold for it, as any interna-

tional banker in the city of New York or London.

"By the te rms of this executive order , gold m aybe exported if it is actually required, for the fulfill-ment of any contract entered into prior to the date of

th i s order by an app l i can t who, in o b ed i en c e to the

execu t ive order of April 5, 1933, has delivered gold

coin, gold bull ion, or gold certificates.



42 T HE F E D E R A L RESERVE IN C O N G R E SS

"This m e a n s that gold may be exported to pay the

obligations abroad of the Fed which were i ncu r r edprior to the date of the order, namely, April 20, 1933.

"If a European Bank should send 100 ,000 ,000 dol-lars in Fed currency to a bank in this country for re-demption, that b a n k could easi ly ship gold to Europe

in exchange for that cur rency . Such F ed cur rency

would represent "contracts" entered into prior to the

date of the order. If the Bank of In t e rna t iona l Se t -

tlements or any other fore ign bank holding any of thepresent gambling debt paper of the Fed should drawa draft for the sett lement of such obligation, gold

would be shipped to them because the debt contractwould have been entered into prior to the date oforder.

Crimes and Criminals

"Mr. Speaker, I rise to a question of const i tut ionalprivilege.

"Whereas, I charge . . . Eugene Meyer, Roy A.Young , E d m u n d Platt, Eugene B . Black, Adolph

Casper Miller, Charles S. H a m l i n , George R. James,

Andrew W. Mellon, Ogden L. Mills, Will iam H.Woodin, John W. Poole, J. F. T. O'Connor, me mb e rsof the Federal Reserve Board; F. H. Curt i s , J. H.Chane , R. L. Austin, George De C a m p , L. B. Wil-l iams, W. W. Hoxton, Oscar Ne wton , E. M. Stevens,J. S. Wood, J. N. Payton, M. L. McClure, C. C.Walsh, Isaac B. Newton , Federal Reserve Agents ,jo in t ly and severally, with violations of the Const i tu -

tion and laws of the United States, and wherea s Icharge them with having taken funds from the U.S.



BY HON. LOUIS T. M c F A D D E N , 1934 43

Treasury which were not appropriated by the Con-gress of the United States, and I charge them with

having un lawfu l ly taken over $80,000,000,000 fromthe U.S.. Government in the year 1928, the said un-

lawful taking consist ing of the un lawfu l creat ion ofclaims against the U.S. Treasury to the extent of over

$ 8 0 , 000 , 000 , 000 in the ye ar 1928;and I charge themwith similar thefts committed in 1929, 1930, 1931,1932 and 1933, and in years previous to 1928, a m o u n t -ing to bil l ions of dollars; and

"Whereas I charge them, jointly and severally withhaving unlawful ly created claims against the U.S.Treasury by unlawful ly placing U.S. Governmentcredit in specific amounts to the credit of foreign gov-e r n m e n t s and fore ign central banks of issue; private

interests and commercial an d private banks of theU.S. and foreign countries, and branches of foreign

banks doing business in the U.S., to the extent of bil-lions of dollars; and with having m a d e unlawful con-tracts in the n a m e of the U.S. Government and theU.S. Treasury; and with having made false entries on

books of account; and

"Whereas I charge them jointly and severally, with

having taken F ed Notes f rom the U.S.Treasury an dwith having issued Fed Notes and with having putFed Notes in to circulat ion without obeying the m a n d a -tory provision of the Fed Act which requires the Fed

Board to fix an interest ra te on all issues of Fed Notessuppl ied to Fed Banks, the interest resulting t he re f romto be paid by the Fed Banks to the Government ofthe U.S. for the use of the Fed Notes, and I chargethem of having d e f r a u d e d the U.S. Government and

the people of the U.S. of billions of dollars by thecommission of this crime, and



44 THE F E D E R A L RESERVE IN CONGRESS

"Whereas I charge them, joint ly and severally, withhaving purchased U.S. Government securities with

U.S. Government credi t unlawful ly taken an d withhaving sold the said U.S. Government securities backto the people of the U.S.for gold or gold values andwith having again purchased U.S.Government securi-ties with U.S.Gove rnmen t credit unlawful ly taken andwith having again sold the said U.S. Governmen t se-curity for gold or gold values, and I charge them withhaving def rauded the U.S.Government and the peo-

ple of the U.S.by this rotary process; and

"Whereas I charge them, jointly and severally, withhaving unlawful ly negot ia ted U.S.Governmen t securi-ties, upon which the Governmen t liability was extin-guished, as collateral security for Fed Notes and withhaving substituted such secur i t ies for gold which was

being held as collateral security for Fed Notes, andwith having by the process defrauded the U.S.Gov-e r n m e n t and the people of the U.S.,and I charge themwith the thef t of all the gold and currency they ob-t a ined by th is process ; an d

"Whereas I charge them, jointly and severally, with

having un lawfu l ly issued Fed currency on false, wor th -less and fictitious acceptances and other circulating evi-

dence of debt, and w i t h h a v i n g made un l a wfu l ad-

vances of Fed currency, an d wi th hav ing unlawful lypermi t ted renewals of acceptances and renewals ofother circulat ing evidences of debt, an d with havingpermitted acceptance bankers and discount dealer cor-pora t i ons and o the r pr iva te bankers to violate the

banking laws of the U.S.; an d

"Whereas I charge them, jo in t ly an d severally , wi thhaving conspired to have evidences of debt to the ex-



BY HON.L OUIS T. McFADDEN, 1934 45

tent of $1 ,000 ,000 ,000 artificially created at the endof February , 1933, and early in March 1933, andwith h a v i n g m a de u n l a w f u l issues an d advances of Fedcurrency on the security of said artif icial ly created evi-dences of debt for a s in i s te r purpose , an d with hav ingassisted in the execut ion of said sinister purpose; an d

"Whereas I charge t h e m , j o i n t ly and severally, w i t hh a v i n g brought about a r epud ia t ion of the currencyobligations of the Fed Banks to the people of the

U.S., and w i th having conspired to obta in a re leasefor the Fed Board and the Fed Banks f rom the i r con-

tractual l iab i l i ty to redeem all Fed cur rency in gold

or l awf u l m o n e y at the Fed B a n k and wi th hav ingde f r a u de d the holders of Fed cur rency , and with hav-ing consp i red to have the debts and losses of the Fed

B o a r d and the Fed Banks unlawfu l ly t r ans fe r red tothe Governmen t and the people of the U.S., and


having u n la wfu l l y subs t i tu ted Fed cur rency and other

irredeemable paper currency for gold in the hands ofthe people a f t e r the decision to r e p u d i a t e the Fed cur-

rency and the na t iona l cu r r ency was made known tothem, and with thus having obtained money und e rfalse pre tenses ; an d

"Whereas I charge t hem , joint ly an d severally, withhaving brought abou t a r epud ia t ion of the national

currency of the U.S. in order that the gold value of

the said cur rency might b e given to p r i v a t e in te res ts ,fo re ign governments, fo re ign central banks of issues,and the B a n k of I n t e r n a t i o n a l Se t t l ements , and the

people of the U.S. to be le f t withou t gold or lawfulm o n e y an d wi th n o cur rency other than a paper cur-

r ency i r r e d e e m a b l e in gold, and I charge them wi th



46 THE FE DE RAL RESERVE IN CONGRESS

having done this for the benefit of private interests,

foreign governments , foreign central banks of issue,and the bank of International Settlements; and

"Whereas I charge them, jointly and severally, withconniving with the Edge Law banks, and other Edge

Law i ns t i tu t ions , accepting banks, and discount corpo-

rations, fore ign central banks of issue, foreign com-mercial banks , fore ign corporations, and foreign indi-

viduals with funds unlawful ly taken from the U.S.

Treasury; and I charge them w i t h having un lawfu l lypermit ted and m a d e possible 'new financing' for for-eigners at the expense of the U.S. Treasury to the ex-

tent of bil l ions of dollars and with having u n la wfu l l ypermitted and m a d e possible the bringing into the

United States of im m en s e quan t i t i e s of fore ign securi-t ies, created in fore ign count r i es for export to the

U.S. and wi th having un l aw f u l l y permitted the said

fore ign secur i t ies to be imported into the U.S. insteadof gold, which w as lawfully due to the U.S.on t r adebalances and otherwise, and with having lawful ly per-mit ted and facil i tated the sale of the said foreign se-curities in the U.S.,and

"Whereas I charge them, jointly and several ly , with

having un lawfu l ly exported U.S. coins and currencyfor a sinister purpose, and with having deprived thepeople of the U.S.of their l awfu l c i rcu la t ing med iumof exchange , and I charge them with h a v i n g arbitra-

rily and unlawful ly reduced the amount of money andcurrency in circulation in the U.S. to the lowest rateper capita in the history of the Government , so that

the great mass of the people have been left without asufficient m e d i u m of exchange, and I charge them withconcealment and evasion in refusing to make knownthe a mo un t of U.S.money in coins and pa pe r cur-




rency exported and the amoun t remain ing in the U.S.as a result of which refusal the Congress of the U.S.

i s unable to ascertain w h e r e the U.S. coins and issuesof currency are at the present t ime, and what amountof U.S. currency is now held abroad ; and

"Whereas I charge them, jointly and severally, w i t h

having arbitrarily an d u n la wfu l l y ra i sed an d loweredthe rates of money and with having arbitrarily in-

creased an d d imin ished the volume of cur rency in cir-

culation for the benefi t of private i n te res t s at the ex-pense of the Government and the people of the U.S.

and with having unlawful ly manipulated money rates,

wages, salar ies and property values both real and per-sonal, in the U.S., by u n l a w f u l operations in the opendiscount m a r k e t and by resale and repurchase agree-ments unsanctioned by law, and

"Whereas I charge them jointly and severally, with

having brought about the decline in prices on the NewYork Stock Exchange and other exchanges in October,

1929, by unlawful manipula t ion of money ra tes andthe volume of U.S. money and currency in circula-tion: by theft of f u n ds from the U.S. Treasury by

gambling in acceptances and U.S. Government securi-

ties; by service r ende red to foreign and domestic spec-ulators and polit ic ians , and by un l awf u l sale of U.S.

gold reserves abroad , and whereas I charge tha t theunconstitutional inf lat ion law imbedded in the so-

called Farm Relief Act by which the Fed Banks aregiven permission to buy U.S. Government securi t iesto the extent of $3,000,000,000 and to draw for thcurrency from the people's Treasury to the extent of$3,000,000,000 is likely to resu l t in connivance on the

part of said accused with others in the purchase by the

Fed of the U.S. Government securities to the extent




of $3 ,000 ,000 ,000 wi th U.S.Government ' s ow n credi tun lawfu l ly taken,—it being obvious that the Fed do

not i n t end to pay anything of value to the U.S. Gov-ernment for the said U.S.Government securities—no

provision for p a y m e n t in gold or l awf u l m o n e y ap-

pearing in the so-called Farm Rel ie f Bill—and the

U.S. Government will thus be placed in a position of

confer r ing a gift of $3 , 0 0 0 , 0 0 0 , 0 0 0 in the U.S. Gov-

e r n m e n t secur i t ies on the Fed to enab le them to pay

more on the i r bad debts to f o r e ign governments, for-eign central banks of i ssue , pr ivate interests , an d pri-vate and commercial banks , both fore ign and domest ic ,and the B a n k of International Settlements, and

whereas the U.S.Government will thus go into debt

to the extent of $3 , 0 0 0 , 0 0 0 , 0 0 0 and will then have anadditional claim fo r $3,000,000,000 in cur rency un -l awful ly c rea t ed against i t and whereas no private in -terest should be permitted to buy U.S.Government

secur i t ies with the G o v e r n m e n t ' s ow n cred i t un l aw f u l l ytaken an d w h e r e a s cur rency should not be issued fo rthe benefi t of said private i n t e r e s t s or any interests on

U.S. G o v e r n m e n t secur i t ies so acqui red , and w h e r e a si t has been publ ic ly stated and no t den ied that the in-flation a m e n d m e n t of the Farm Rel ie f Act is the mat-

ter of benefi t which was secured by R a m s e y MacDon-

ald, the Prime Minister of GreatBr i t a i n ,

upon the

occasion of his latest visi t to the White House and

U.S. Treasury, and w h e r e a s there is grave danger that

the accused wil l employ the prov is ion c r ea t i ng U.S.

Government securi t ies to the ex ten t of $3,000,000,-

000 and three mil l ions in cur rency to be i ssuable there-

upon for the benefi t of themselves and their foreign

pr inc ipa l s , an d that they wil l conver t the cur rency so

ob ta ined to the uses of Great Br i t a i n by secret ar-rangemen ts with the Bank of England of which they




are the agents, and for which they maintain an account

an d perform servicesat the

expenseof the

U.S. Treas-ury, and that they will l ikewise confer benefits uponthe Bank of International Settlements for which theymain ta in an account and perform services at the ex-pense of the U.S. Treasury; and

"Whereas I charge them, jo in t ly and severally, withhaving concealed the insolvency of the Fed and withh a v i n g f a i l ed to report the insolvency of the Fed to

the Congress and with having conspi red to have thesaid insolvent ins t i tu t ions cont inue in operation, an dwi th having permitted the said insolvent ins t i tu t ionsto receive U.S. Government fu n ds and other deposits,an d with having permi t ted them to exercise controlover the gold reserves of the U.S. and with having per-mit ted them to t r ans fe r upward of $100,000,000,000of thei r debts and losses to the general public and the

Government of the U.S., and w i t h hav ing pe rmi t t edforeign debts of the Fed to be paid with the property,

the savings, the wages, and the salar ies of the peopleof the U.S., and with the fa rms and the homes of the

Amer ican people , and whereas I charge them w i t hforcing the bad debts of the Fed upon the general pub-lic covert ly and dishonest ly and with tak ing the generalwealth and savings of the people of the U.S. u n d e r

false pretenses, to pay the debts of the Fed to for-eigners; and

"Whereas I charge them, jointly and severally, withviola t ions of the Fed Act and other l aw s ; w i th malad-ministration of the Fed Act; and with evasions of the

Fed Law and other l aws; and with having unlawful lyfailed to report violat ions of law on the part of the

F ed Banks which , if k n o w n , would have caused the

Fed Banks to lose their charters, and




"Whereas I charge them, jo in t ly and severally, wi th

fa i lure to protect and m a i n t a i n the gold reserves andthe gold stock and gold coinage of the U.S. and wi thhaving sold the gold reserves of the U.S.to foreign

Governments, fo re ign central banks of issue, fore igncommercial an d private banks , and other fo r e i gn in -stitutions and i nd iv iduals at a profit to themselves, and

I charge them w i t h h a v i n g sold gold reserves of the

U.S. so that between 1924and 1928the U.S.ga ined

n o gold on ne t account bu t suffe red a decline in its per-centage of central gold rese rves f rom 45.9 percent in1924 to 37.5 p e r c e n t in 1928 n o t w i t h s t a n d i n g the f ac tthat the U.S. had a f a vo ra b l e balance of t r a d e

throughout that period, and

"Whereas I charge them, jointly and severally, wi thhaving conspired to concen t ra te U.S.G o v e r n m e n t se-

cur i t ies and thus the na t i ona l debt of the U.S. in the

hands of fo re igners and i n t e rna t iona l money l ende r sand with having consp i red to t r a n s f e r to fo re ign e r san d international m o n e y l e n d e r s title to and cont ro l ofthe financial resources of the U.S.; and

"Whereas I charge t h e m , j o i n t l y and severa l ly , wi thhaving fictitiously paid installments on the n a t i o n a ldebt with G o v e r n m e n t c r e d i t u n la wfu l l y taken; and

"Whereas I charge them, jointly and severally, withthe loss of the U.S.Government fu n ds i n t r u s t ed to

their care ; an d

"Whereas I charge them, j o in t ly and several ly , wi thhaving des t royed i n d e p e n d e n t b a n k s in the U.S.and

with having thereby caused losses amounting to bil-

l ions of dollars to the depositors of the said banks ,

and to the general public of the U.S., and



BY HON.LOUIS T. McFADDEN, 1934 51


the fa i lu re to furn ish t r u e reports of the bus iness op-erat ions and the true conditions of the Fed to the Con-gress and the people, and having furnished false andmis lead ing reports to the Congress of the U.S., and

"Whereas I charge them, jo in t ly and several ly, w i thhav ing publ ished false an d mis lead ing propaganda in -tended to deceive the American people and to causethe U.S. to lose its independence; and

"Whereas I charge them jo in t ly and severally, withunlawfully allowing Great Bri ta in to share in the prof-its of the Fed at the expense of the Government andth e people of the U.S.; and

"Whereas I charge them, jointly and severally, withh a v i n g entered into secret agreements and illegal

t ransact ions wi th Montague Norman, Governor of the

Bank of England; and"Whereas I charge t hem, j o in t ly and several ly, with

swindling the U.S. Treasury and the people of the

U.S. in pre t end ing to have received p a y m e n t fromGreat Brita in of the amount due on the British w ardebt to the U.S. in December, 1932; and

"Whereas I charge them, jointly an d severally, withhaving conspired with their foreign pr incipals and

others to d ef r aud the U.S. G o v e r n m e n t and to prevent

the people of the U.S. from receiving payment of thewar debts due to the U.S. from foreign nat ions ; and

"Whereas I charge them, jointly an d severally, withhaving robbed the U.S. Government and the peopleof the U.S. by the ir the f t and sale of the gold reservesof the U.S. and other un l aw f u l transactions, and wi th

having created a deficit in the U.S. Treasury, which



52 T HE FEDERAL R E S E R V E IN C O N G R E S S

has necessitated to a large extent the destruction ofour nat ional defense and the reduction of the U.S.Army and the U.S.Navy and other branches of thenational defense ; and

"Whereas I charge them, jo int ly an d severally, ofhaving reduced the U.S. from a first class power toone that is dependent, and with having reduced the

U.S. from a rich and powerful nat ion to one that isinternationally poor; and

"Whereas I charge them, jointly and severally, withthe crime of having t reasonably conspired and actedagainst the peace and security of the U.S.and withhaving treasonably conspired to destroy constitutionalGovernment in the U.S.

"Resolved, That the Commit tee on the Judiciaryis authorized and directed as a whole or by subcom-

mittee, to investigate the official conduct of the Fedagents to determine whether , in the opinion of thesaid committee, they have been guilty of any highcr ime or misdemeanor which in the contemplat ion ofthe Constitution requires the interposit ion of the Con-stitutional powers of the House. Such Commit tee shall

report its findings to the House, toge the r with suchresolution or resolutions of impeachment or other rec-

ommendationsas it deems proper."For the purposes of this resolution the Commit tee

is authorized to sit and act dur ing the present Con-gress at such t imes and places in the District of Colum-bia or elsewhere, whethe r or not the House is sitting,

has recessed or has adjourned , to hold such clerical,stenographic, and other assistants, to require the at-tendance of such witnesses and the production of such

books, papers, and documents, to take such testimony,




to have such pr in t ing and binding done, and to m a k esuch expendi tures as it deems necessary."

A f t e r some discussion and upon the motion of Mr.Byrns, the resolution and charge was referred to the

Commit tee on the Judiciary.

"Attacks on McFadden's Life Reported"

Comment ing on Former Congressman Louis T.

McFadden's "heart- fai lure sudden-death" on Oct.3 ,

1936, af te r a "dose" of "intestinal flu," "Pelley'sWeekly" of Oct. 14 says:

"Now that this sterling Amer ican patriot has m a d ethe Passing, i t can be revealed that n ot long af te r hispublic ut te rance against the encroaching powers ofJudah , i t became known among his in t imates that hehad suffered tw o attacks against his l ife. T he first

attack came in the form of two revolver shots firedat him from ambush as he was al ighting from a cab infront of one of the Capital hotels. Fortunately bo thshots missed h im, the bul lets burying themselves in thestructure of the cab.

"H e became violently ill af te r par tak ing of food ata political b a n q u e t at Washington. His l ife was only

saved f rom what w as subsequently announced as a

poisoning by the presence of a physician f r i end at thebanquet , who at once procured a stomach p u m p andsubjected the Congressman to emergency treatment."

/a / R O B E R T E D W A R D E D M O N D S O N

(Publicist-Economist)

New York, October 14, 1963.



54 THE FEDERAL R E S E R V E IN C O N G R E SS

The Federal Reserve Bank of New York re-ports in January, 1962, greatly expanded tradein their "acceptance" securities market.

This market had already bankrupted the Na-tion in the 1930's, said Congressman McFadden.

After bankruptcy comes the Referee, or DICTA-

TOR!

President Andrew Jackson to the Bankers, 1811:

"You are a den of vipers and thieves. I intend to routyou out, and by the eternal God, I will rout you out."

"Now's the day and now's the hour;

See the front o' battle lour.

Liberty's in every blow!

Let us do or die."

—Robert Burns.

FORUM P U B L I S H I N G C O M P A N Y

324N E W B U R Y S T R E E T

B O S T O N 15, M A S S A C H U S E T T S



INDEX

Acceptance racket costing the American people $90 billions

yearly, 17

American Government ma d e responsible to pay debts of one

foreigner to another, 13

Anti-hoarding campaign, 23

Asset currency forced on the U.S., 10

Baltimore & Ohio R.R. asks for loan, 22

Bankers' acceptance racket , 17

Ba nk s gambl ing $13 bill ions of the people's money & credit

year ly, 19Bankers hate pensioners, 37

B a nk holiday declared by Roosevelt, 30

B an k r u p tcy of the U.S., 28

Britain now f inancial mistress of the world, 28

Bri t ish shie ld ing the Fed, 28

British shie ld ing robbery , 28

Children the new slaves, 9Colonel Mandel House betrays America, 5

Company stores, 33

Concealing cr imes and criminals, 24

Country ravaged and la id waste, 8

Criminals and their crimes, 42-52

Criminal offense against the Government, 34

Deceivers are traitors, 24

Dynamite for Japan at America's expense, 12

Evading tax on circulation, 9

European origin of the Fed, 7

55



56 INDEX

Federal Reserve corrupt , 3

not government insti tution,4

twelve branches, 4

currency u n s o u n d , 10

has usurped the government, 24

conspires to take away people's title to war debts, 38

debts t ransferred to the people by Roosevelt, 30

pool of American confiscated bank deposits, 14

Forcing small banks to buy stock, 12

Foreign and domestic swindlers, 4Faithless government officials, 27

Fiat money and Mr . Mills of the Treasury, 23

Financing beans fo r Japan , 13

distilleries in Europe, 12

German brewers, 12

Financial pirates, 4

Financed Trotsky in promoting Russian Revolution, 5

Find ing the securities put -up for Fed loans, 15Five-cent meals for the people, 37

Gambl ing counters have no legal s tanding, 39

G e r m a n exports to South Amer ica paid for by U.S. before

shipment , 13

Gran t i ng gift of $7 millions to every member of the Federal

Reserve yearly, 18

Greatest crime in history, 27

Great depression brought on by evil practices of the Fed, 8

Great Britain , par tne r in blackmail, 28

Great haul for the International Bankers, 32

Gold standard abandoned by Bri tain , 29

Government in the banking business as never before, 8

Government liable for debts of individuals and corporations in

foreign lands, 10

responsible for Federal Reserve notes issued by the Fed, 10

the backer of bootleggers, smugglers, speculators and



I N D E X 57

swindlers in all parts of the world, 8

Highly dangerous powers of the Federal Reserve law, 7Horrors of the dishonest Fed, 6

Hypocrisy of the embargo on the shipment of gold, 41

Immense gold loans to Great Bri ta in , 28

Impractical, cumbersome machinery of the Fed, 9

In ternat ional Bankers, enemies of the people they rob, 37

Internat ional propagandists, 4

Internationalists spend half million dollars to get the Federal

Reserve law through Congress, 7

Ivar Krueger, match king, 20

Killing our favorable t rade balance, 14

King's bank, a worm-eaten f raudulent insti tution, 5

K u h n , Loeb & Co. take over the U.S. Treasury, 41

send a partner to run the Fed, 10

Moneyfor

Scotch distillers, 11

of Fed the money of slaves — not free men, 32

Nature of the Ivar Krueger Swindle , 21

Oakland County, Michigan, has bankrupt sale of 71,000 homes

and farms, 9

Our gold sent to Germany, 16

Old struggle of Jackson's time, 27

One law for bankers — another fo r Veterans, 22Paying bootleggers' bills, 12

Paying no income taxes, 20

Peddling our government ' s credit, 21

People's gold wrongful ly and illegally taken, 31

People's right to know, 16

Predatory interests of the centuries, 6

President Hoover's f r iend ( I v a r K r u e g e r ) , 2 0

President Jackson's battle with the bankers , 6



58 I N D E X

Promoted separate peace between Germany and Russia, World

War I, 5Public credit of the U.S.used all over the world at our risk, 13

Raising money for Kuhn, Loeb & Co.,22

Ramsay MacDonald, labor party deserter, 29

Redeeming bad debts of the Fed, 22

Re-discounting, 19

Repeal the Fed, 27

Resolution for audit of the Fed, 24

Return to the Constitution, 27Roosevelt casts his lot with the usurers and money changers, 31

destroyed the value of the American dollar, 33

dictatorship, 30

prepares to destroy the Constitution, 31

reduces the pay of Federal employees, 35

releases bankers from debts and charge the people instead,

34

servant of International Bankers, 30

his two k inds of laws, 34

will not permit the Congress to investigate the condition

of the Fed, 37

Shortage of actual money, 9

Senator Aldrich's bill used in the Federal Reserve law, 7

Carter Glass gets his na me on the bill, 7

Lodge of Massachusetts opposes the bill, 7Root denounces the Fed, 9

Spurious securities for good U.S. funds, 15

State boundaries should be respected in connection with State

funds, 27

Throwing Veterans off B. & O. freight cars, 22

Traitorous and dishonest officials, 6

Trotsky breaks up Russian homes with American funds , 5

Twelve private money trusts, 11

Two-named paper wrecked every country where tried, 6



From

To

The Federal Reserve Bank of New York,reports, January, 1962, greatly expandedactivity in their "acceptance" securities

market.This market had already bankrupted the

Nation in the 1930's. After bankruptcyconies the Referee or DICTATOR!

congressman louis t. mcfadden on the federal reserve corporation

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