The Truth About the Federal Reserve
Copy and Distribute: Part I and Part II
On May 23, 1933, Congressman, Louis T. McFadden, brought formal
charges against the Board of Governors of the Federal Reserve Bank
system, The Comptroller of the Currency and the Secretary of United
States Treasury for numerous criminal acts, including but not limited to,
CONSPIRACY, FRAUD, UNLAWFUL CONVERSION, AND TREASON.
The petition for Articles of Impeachment was thereafter referred to the
Judiciary Committee and has YET TO BE ACTED ON.
Congressman McFadden on the Federal Reserve Corporation Remarks
in Congress, 1934
AN ASTOUNDING EXPOSURE
Reprinted by permission 1978 Arizona Caucus Club
Congressman McFadden's Speech On the Federal Reserve Corporation
Quotations 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, was the best posted man on
these matters in America and was in a position to speak with authority of
the vast ramifications 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, be again given the credit for producing a son that was not afraid to
hurl defiance in the face of the money-bund.
Whereas Mr. McFadden was elected to the high office on both the Democratic and Republican tickets, there can be no accusation of partisanship lodged against him. Because these speeches are set out in full in the Congressional Record, they carry
weight that no amount of condemnation on the part of private individuals could hope to carry.
The Federal Reserve-A Corrupt Institution
"Mr. Chairman, we have in this Country one of the most corrupt institutions
the world has ever known. I refer to the Federal Reserve Board and the
Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated
the Government of these United States and the people of the United States
out of enough money to pay the Nation's debt. The depredations and
iniquities of the Fed has cost enough money to pay the National debt
several times over.
"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our
Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.
"Some people who think that the Federal Reserve Banks
are United States Government institutions.
They are private monopolies which prey upon the
people of these United States for the benefit of themselves and their
foreign customers; foreign and domestic speculators and swindlers; and
rich and predatory money lenders. In that dark crew of financial pirates there
are those who would cut a man's throat to get a dollar out of his pocket;
there are those who send money into states to buy votes to control our
legislatures; there are those who maintain International propaganda for the
purpose of deceiving us into granting of new concessions which will permit
them to cover up their past misdeeds and set again in motion their gigantic
train of crime.
"These twelve private credit monopolies were deceitfully and disloyally
foisted upon this Country by the bankers who came here from Europe and
repaid us our hospitality by undermining our American institutions.
Those bankers took money out of this Country to finance Japan in a war against
Russia. They created a reign of terror in Russia with our money in order to
help that war along.
They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American
dollars at Trotsky's disposal in one of their branch banks in Sweden so that
through him Russian homes might be thoroughly broken up and Russian
children flung far and wide from their natural protectors. They have since
begun breaking up of American homes and the dispersal of American
"Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any.
"In 1912 the National Monetary Association, under the chairmanship of the
late Senator Nelson W. Aldrich, made a report and presented a vicious bill
called the National Reserve Association bill. This bill is usually 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 nearly twenty years had been scheming to set up a central bank in this Country and who in 1912 has spent and were continuing to spend vast sums of money to accomplish their purpose.
"We were opposed to the Aldrich plan for a central bank. The men who rule
the Democratic Party then promised the people that if they were returned to
power there would be no central bank established here while they held the reigns of government.
Thirteen months later that promise was broken, and the Wilson administration, under the tutelage of those sinister Wall Street figures who stood behind Colonel House, established here in our free Country the worm-eaten monarchical institution of the "King's Bank" to control us from the top downward, and from the cradle to the grave.
"The Federal Reserve Bank destroyed our old and characteristic way of
doing business. It discriminated against our 1-name commercial paper, the
finest in the world, and it set up the antiquated 2-name paper, which is the present curse of this Country and which wrecked every country which has
ever given it scope; it fastened down upon the Country the very tyranny from which the framers of the Constitution sought to save us.
PRESIDENT JACKSON'S TIME
"One of the greatest battles for the preservation of this Republic was fought out here in Jackson's time; when the second Bank of the United States, founded on the same false principles of those which are here exemplified in the Fed was hurled out of existence.
After that, in 1837, the Country was warned against the dangers that might ensue if the predatory interests after being cast out should come back in disguise and unite themselves to the Executive and through him acquire control of the Government.
That is what the predatory interests did when they came back in the livery of hypocrisy and under false pretenses obtained the passage of the Fed.
"The danger that the Country was warned against came upon us and is
shown in the long train of horrors attendant upon the affairs of the traitorous
and dishonest Fed.
Look around you when you leave this Chamber 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 liable. This is an era of financed crime and in the financing of crime the Fed does not play the part
of a disinterested spectator.
"It has been said that the draftsman who was employed to write the text of the Aldrich bill because that had been drawn up by lawyers, by acceptance bankers of European origin in New York.
It was a copy, in general a translation of the statues of the Reichsbank and other European central banks.
One-half million dollars was spent on the part of the propaganda organized by these bankers for the purpose of misleading public opinion and giving Congress the impression that there was an overwhelming popular demand for it and the kind of currency that goes with it, namely, an asset currency based on human debts and obligations.
Dr. H. Parker Willis had been employed by Wall Street and propagandists, and when the
Aldrich measure failed- he obtained employment with Carter Glass, to assist in drawing the banking bill for the Wilson administration. He appropriated the text of the Aldrich bill. There is no secret about it. The test of the Federal Reserve Act was tainted from the first.
"A few days before the bill came to a vote, Senator Henry Cabot Lodge, of
Massachusetts, wrote to Senator John W. Weeks as follows:
New York City, December 17, 1913
"'My Dear Senator Weeks:
"'Throughout my public life I have supported all measures designed to
take the Government out of the banking business. This bill puts the
Government into the banking business as never before in our history.
"'The powers vested in the Federal Reserve Board seem to me highly
dangerous especially where there is political control of the Board. I
should be sorry to hold stock in a bank subject to such domination's.
The bill as it stands seems to me to open the way to a vast inflation of the
currency. "'I had hoped to support this bill, but I cannot vote for it cause itseems to me to contain features and to rest upon principles in the highest degree menacing to our prosperity, to stability in business, and to
the general welfare of the people of the United States.
Very Truly Yours,
Henry Cabot Lodge.'"
"In eighteen years that have passed since Senator Lodge wrote that letter of warning all of his predictions have come true. The Government is in the banking business as never before. Against its will it has been made the backer of horse thieves and card sharps, bootlegger's smugglers,
speculators, and swindlers in all parts of the world. Through the Fed the
riffraff of every country is operating on the public credit of the United States
THE GREAT DEPRESSION
"Meanwhile and on account of it, we ourselves are in the midst of the
greatest depression we have ever known. From the Atlantic to the Pacific,
our Country has been ravaged and laid waste by the evil practices of the
Fed and the interests which control them. At no time in our history, has the general welfare of the people been at a lower level or the minds of the people so full of despair.
"Recently in one of our States, 60,000 dwelling houses and farms were
brought under the hammer in a single day. 71,000 houses and farms in
Oakland County, Michigan, were sold and their erstwhile owners
dispossessed. The people who have thus been driven out are the wastage
of the Fed. They are the victims of the Fed. Their children are the new
slaves of the auction blocks in the revival of the institution of human slavery.
(“Going back to the good lo´days!...Reagan)
The Scheme of the Fed
"In 1913, before the Senate Banking and Currency Committee, Mr.
Alexander Lassen made the following statement: "The whole scheme of the
Fed with its commercial paper is an impractical, cumbersome machinery-
is simply a cover to secure the privilege of issuing money, and to evade
payment of as much tax upon circulation as possible and then control the
issue and maintain, instead of reducing interest rates. It will prove to the
advantage of the few and the detriment of the people. It will mean continued
shortage of actual money and further extension of credits, for when there is
a shortage of money people have to borrow to their cost.'
"A few days before the Fed passed, Senator Root denounced the Fed as an outrage
on our liberties. He predicted: 'Long before we wake up from our dream of
prosperity through an inflated currency, our gold- which alone could have
kept us from catastrophe- will have vanished and no rate of interest will
tempt it to return.'
"If ever a prophecy came true, that one did.
"The Fed became law the day before Christmas Eve, in the year (23 December)1913, and shortly afterwards, the German International bankers, Kuhn, Loeb and Co.
sent one of their partners here to run it.
"The Fed Note is essentially unsound. It is the worst currency and the most dangerous that this Country has ever known. When the proponents of the
act saw that the Democratic doctrine would not permit them to let the
proposed banks issue the new currency as bank notes, they should have
stopped at that. They should not have foisted that kind of currency, namely,
an asset currency, on the United States Government. They should not have made the Government [liable on the private] debts of individuals and
corporations, and, least of all, on the private debts of foreigners.
"As Kemerer says: 'The Fed Notes, therefore, in form, have some of the qualities of Government paper money, but in substance, are almost a pure asset currency possessing a Government guarantee against which contingency the Government has made no provision whatever.'
"Hon. L.J.Hill, a former member of the House, said, and truly: "They (´Fed Notes )are
obligations of the Government for which the United States received nothing
and for the payment of which at any time, it assumes the responsibility:
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 this paper to the Fed, and if the Government has made no provisions for redeeming them, the first element of unsoundness is not far to seek. "Before the Banking and Currency Committee, when the bill was under
discussion Mr. Crozier of Cincinnati said: 'The imperial power of elasticity
of the public currency is wielded exclusively by the central corporations
owned by the banks.
This is a life and death power over all local banks and all business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By making money artificially scarce, interest rates throughout the Country can be arbitrarily raised and the bank tax on all business and cost of living increased for the profit of the banks owning these regional central banks, and without the slightest benefit to the people.
The 12 Corporations together cover y and monopolize and use for
private gain- every dollar of the public currency and all public revenue of the
United States. Not a dollar can be put into circulation among the people by
their Government, without the consent of and on terms fixed by these 12
private money trusts.'
"In defiance of this and all other warnings, the proponents of the Fed
created the 12 private credit corporations and gave them an absolute
monopoly of the currency of these United States- not of the Fed Notes
alone- but of all other currency! The Fed Act providing 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 was done, the initial monopoly has been
extended by vicious amendments to the Fed and by the unlawful and
treasonable practices of the Fed.
Money for the Scottish Distillers
"Mr. Chairman, if a Scottish distiller wishes to send a cargo of Scotch
whiskey to these United States, he can draw his bill against the purchasing
bootlegger in dollars and after the bootlegger has accepted it by writing his
name across the face of it, the Scotch distiller can send that bill to the
nefarious open discount market in New York City where the Fed will buy it
and use it as collateral for a new issue of Fed Notes. Thus the Government
of these United States pay the Scotch distiller for the whiskey before it is
shipped, and if it is lost on the way, or if the Coast Guard seizes it and
destroys it, the Fed simply write off the loss and the government never
recovers the money that was paid to the Scotch distiller.
"While we are attempting to enforce prohibition here, the Fed are in the
distillery business in Europe and paying bootlegger bills with public credit
of these United States.
"Mr. Chairman, by the same process, they compel our Government to pay the German brewer for his beer. Why should the Fed be permitted to finance the brewing industry in Germany either in this way or as they do by compelling small and fearful United States Banks to take stock in the Isenbeck Brewery and in the German Bank for brewing
"Mr. Chairman, if Dynamit Nobel of Germany, wishes to sell dynamite in Japan to use in Manchuria or elsewhere, it can draw its bill against the Japanese customers in dollars and send that bill to the nefarious open discount market in New York City where the Fed will buy it and use it as collateral for a new issue of 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 representatives to the disarmament conference at Geneva- while the Fed is making our Government pay Japanese debts to German Munitions makers?
"Mr. Chairman, if a German wishes to raise a crop of beans and sell them
to a Japanese customer, he can draw a bill against his prospective
Japanese customer in 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 beans in the ground.
"Mr. Chairman, if a German in Germany wishes to export goods to South America, or any
other Country, he can draw his bill against his customers and send it to these United States (open discount market in New York City and get the money out of this Country before he ships, or even manufactures the goods.
"Mr. Chairman, why should the currency of these United States be issued
on the strength of German Beer? Why should it be issued on the crop of
unplanted beans to be grown in Chili for Japanese consumption? Why should these United States be compelled to issue many billions of dollars every year to pay the debts of one foreigner to another foreigner?
"Was it for this that our National 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 States and likewise money
belonging to our National Bank depositors be used to support foreign
brewers, narcotic drug vendors, whiskey distillers, wig makes, human hair
merchants, Chilean bean growers, to finance the munition factories of
Germany and Soviet Russia?
THE UNITED STATES HAS BEEN RANSACKED
"The United States has been ransacked and pillaged. Our structures have been gutted and only the walls are left standing.
While being perpetrated, everything the world would rake up to sell us was brought in here at our expense by the Fed until our markets were swamped with unneeded and unwanted imported goods priced far above their value and make to equal
the dollar volume of our honest exports, and to kill or reduce our favorite
balance of trade.
As Agents of the foreign central banks, the Fed try by every means in their power to reduce our (USA) favorable balance of trade. They act for their foreign principal and they accept fees from foreigners for acting against the best interests of these United States.
Naturally there has been great competition among among foreigners for the favors of the Fed.
"What we need to do is to send the reserves of our National Banks home
to the people who earned and produced them and who still own them and
to the banks which were compelled to surrender them to predatory
"Mr. Chairman, there is nothing like the Fed pool of confiscated bank
deposits in the world.
It is a public trough of American wealth in which the
foreigners claim rights, equal to or greater than Americans.
The Fed are the agents of the foreign central banks. They use our bank depositors'
money for the benefit of their foreign principals. They barter the public
credit of the United States Government and hire it our to foreigners at a
profit to themselves. "All this is done at the expense of the United States Government, and at a sickening loss to the American people.
Only our great wealth enabled us to stand the drain of it as long as we did.
"We need to destroy the Fed wherein our national reserves are impounded
for the benefit of the foreigners. "We need to save America for Americans.
"Mr. Chairman, when you hold a $10.00 Fed Note in your hand, you are
holding apiece of paper which sooner or later is going to cost the United
States Government $10.00 in gold (unless the Government is obliged to go
off the gold standard). It is based on limburger cheese (reported to be in
foreign warehouses) or in cans purported to contain peas (but may contain
salt water instead), or horse meat, illicit drugs, bootleggers fancies, rags
and bones from Soviet Russia (of which these United States imported over
a million dollars worth last year), on wines whiskey, natural gas, goat and
dog fur, garlic on the string, and Bombay ducks.
"If you like to have paper money- which is secured by such commodities- you have it in Fed Note. If you desire to obtain the thing of value upon which this paper currency is based, that is, the limburger cheese, the whiskey, the
illicit drugs, or any of the other staples- you will have a very hard time
"Many of these worshipful commodities are in foreign Countries. Are you
going to Germany to inspect her warehouses to see if the specified things
of value are there? I think more, I do not think that you would find them there
if you did go.
"On April 27, 1932, the Fed outfit sent $750,000 belonging to American
bank depositors in gold to Germany. A week later another $300,000 in
gold was shipped to Germany. About the middle of May $12,000,000 in
gold was shipped to Germany by the Fed. Almost every week there is a
shipment of gold to Germany. These shipments are not made for profit on
the exchange since the German marks are blow parity with the dollar.
"Mr. Chairman, I believe that the National Bank depositors of these United
States have a right to know what the Fed are doing with their money.
There are millions of National Bank depositors in the Country who do not know
that a percentage of every dollar they deposit in a Member Bank of the Fed
goes automatically to American Agents of the foreign banks and that all
their deposits can be paid away to foreigners without their knowledge or
consent by the crooked machinery of the Fed and the questionable
practices of the Fed. [Ed. Note- Problem with next paragraph in original]
"Mr. Chairman, the American people should be told the truth by their servants in office. In 1930, we had over a half billion dollars outstanding daily to finance foreign goods stored in or shipped between several billion dollars. What goods are these on which the Fed yearly pledge several billions of dollars. In its yearly total, this item amounts to several billions of dollars of the public credit of these United States? "What goods are those which are hidden in European and Asiatic stores have not been seen by any officer of our Government but which are being financed on the public credit of the United States Government? What goods are those upon which the 17 United States Government is being
obligated by the Fed to issue Fed Notes to the extent of several billions of
dollars a year?
The Bankers' Acceptance Racket
"The Fed twelve private credit monopolies, have been International Banks from the beginning, with these United States as their enforced banker and supplier of currency.
But it is none the less extraordinary to see these these twelve private credit
monopolies, buying the debts of foreigners against foreigners, in all parts
of the world and asking the Government of these United States for new
issues of Fed notes in exchange for them.
"The magnitude of the acceptance racket as it has been developed by the Fed,
their foreign correspondents, and the predatory European born bankers, who set up the Fed here and taught your own, by and of pirates, how to loot the people: I say the magnitude of this racket is estimated to be in the neighborhood of 9,000,000,000 per year. In the past ten years it is said to have amounted to $90,000,000,000.00. In my opinion it has amounted to several times that
much. coupled to this you have to the extent of billions of dollars, the gambling in the United 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. Government in unlimited quantities. Is
is strange that the burden of supplying these immense sums of money to
the gambling fraternity has at last proved too heavy for the American
people to endure? Would it not be a national [calamity to] again bind down
this burden on the backs of the American people and by means of a long
rawhide whip of the credit masters, compel them to enter another
seventeen years of slavery?
"They are trying to do that now. They are trying to take $100,000,000.00 of
the public credit of the United States every week, in addition to all their other seizures and they are sending that money to the nefarious open market in a desperate gamble to reestablish their graft as a going concern.
"They are putting the United States Government in debt to the extent of $100,000,000 a week, and with the money they are buying our Government securities for themselves and their foreign principals.
Our people are disgusted with the experiences of the Fed.
The Fed is not producing a loaf of bread, a yard of 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 year I addressed the House on
the subject of the Reconstruction Finance Corporation. In the course of my remarks I made the following statement: In 1928 the member banks of the
Fed borrowed $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 actual amount of such obligations
called for six times as much monetary gold as there is in the world. Such
transactions represent a grant in the course of one single years of about
$7,000,000 to every member of the Fed.
"Is it any wonder that American labor which ultimately pays the cost of all
banking operations of this Country has at last proved unequal to the task of
supplying this huge total of cash and credit for the benefit of the stock
market manipulators and foreign swindlers?
"In 1933 the Fed presented the staggering amount of $60,598,690,000 to its member banks at the expense of the wage earners and tax payers of these United States.
In 1929, the year of the stock market crash, the Fed advanced
$58,000,000,000 to member banks.
"In 1930 while the speculating banks were getting out of the stock market at the expense of the general public, the Fed advanced them $13,022,782,000.
This shows that when the banks were gambling on the public credit of these United States as represented by the Fed currency they were subsidized to any amount they required by the Fed.
When the swindle began to fall, the bankers knew it in advance and withdrew from the market.
They got out with whole skins- and left the people of these United
States to pay the piper.
"My friend from Kansas, Mr. McGugin, has stated that he thought the Fed lent money on rediscounting.
So they do, but they lend comparatively little that way. The real discounting that they do has been called a mere penny in the slot business. It is too slow for genuine high flyers. They discourage it.
They prefer to subsidize their favorite banks by making them $60,000,000,000 advances and they prefer to acquire assistance in the notorious open discount market in New York, where they can use it to control the price of stocks and bonds on the exchanges.
"For every dollar they advanced on discounts in 1928, they lent $33.00 to
their favorite banks for whom they do a business of several billion dollars
income tax on their profits to these United States.
The John Law Swindle
"This is the John Law swindle over again. The theft of Teapot Dome was trifling compared to it. What King ever robbed his subject to such an extent
as the Fed has robbed us? Is it any wonder that there have been lately
ninety cases of starvation in one of the New York hospitals? Is there any
wonder that the children are being abandoned?
"The government and the people of these United States have been swindled by windlers deluxe to whom the acquisition of American or a parcel 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 jurisdiction of these United States, sharpers with strong banking "fence" on this side of the water, a "fence" acting as a receiver of a worthless paper coming from abroad, endorsing it and getting the currency out of the Fed for it as quickly as possible exchanging that currency for gold and in turn transmitting the gold to its foreign confederates.
Ivar Kreuger, the Match King!
"Such were the exploits of Ivar Krueger, Mr. Hoover's friend, and his rotten
Wall Street bakers. Every dollar of the billions Kreuger and his gang drew
out of this Country on acceptances was drawn from the government and the people of the United States through the Fed.
The credit of the United States Government was peddled to him by the Fed for their own private gain.
That is what the Fed has been doing for many years.
"They have been peddling the credit of this Government and the [signature
of this] Government to the swindlers and speculators of all nations.
That is what happens when a Country forsakes its Constitution and gives its
sovereignty over the public currency to private interests.
Give them the flag and they will sell it.
"The nature of Kreuger's organized swindle and the bankrupt condition of Kreuger's combine was known here last June when Hoover sought to
exempt Krueger's loan to Germany of $125,000,000 from the operation of
the Hoover Moratorium. The bankrupt condition of Krueger's swindle was known her last summer when $30,000,000 was taken from the American taxpayers by certain bankers in New York for the ostensible purpose of permitting Krueger to make a loan to Colombia.
Colombia never saw that money.
"The nature of Krueger's swindle was known here in January when he
visited his friend, Mr. Hoover, at the White House. It was known here in
March before he went to Paris and committed suicide.
"Mr. Chairman, I think the people of the United States are entitled to know
how many billions of dollars were placed at the disposal of Krueger and his
gigantic combine by the Fed, and to know how much of our Government
currency was issued and lost in the financing of that great swindle in the
years during which the Fed took care of Krueger's requirements.
"A few days ago, the President of the United States with a white face and
shaking hands, went before the Senate on behalf of the moneyed interests and asked the Senate to levy a tax on the people so that foreigners might know that these United States would pay its debt to them.
"Most Americans thought it was the other way around. What does these
United States owe foreigners? When and by whom was the debt incurred?
It was incurred by the Fed, when they peddled the signature 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 free? Is there one law for the
looter who drives up to the door of the United States Treasury in his
limousine and another for the United States Veterans who are sleeping on
the floor of a dilapidated house on the outskirts of Washington?
"The Baltimore and Ohio Railroad is here asking for a large loan from the
people, and the wage earners and the taxpayers of these United States. It
is begging for a handout from the Government. It is standing, cap in hand,
at the door of the R.F.C. where all the jackals have gathered to the feast. It
is asking for money that was raised from the people by taxation and wants
this money of the poor for the benefit of Kuhn, Loeb and Co., the German
"Is there one law for the Baltimore and Ohio Railroad and another for the
hungry veterans it threw off its freight cars the other day? Is there one law
for sleek and prosperous swindlers who call themselves bankers and
another law for the soldiers who defended the flag? "The R.F.C. is taking over these worthless securities from the Investment Trusts with United States Treasury money at the expense of the American taxpayer and the wage earner.
"It will take twenty years to redeem our Government. Twenty years of penal
servitude to pay off the gambling debts of the traitorous Fed and to vast
flood of American wages and savings, bank deposits, and the United
States Government credit which the Fed exported out of this country to their
foreign principals. "The Fed lately conducted an anti-hoarding campaign here.
They they took that extra money which they had persuaded the American people to put into the banks- they sent it to Europe- along with the rest. 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 belonged to the people of these United States and was unlawfully taken from them.
"Mr. Chairman, within the limits of the time allowed me, I cannot enter into a
particularized discussion of the Fed. I have singled out the Fed currency for a few remarks because there has lately been some talk here of "fiat money". What kind of money is being pumped into the open discount
market and through it into foreign channels and stock exchanges?
Mr. Mills of the Treasury has spoken here of his horror 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 gambling of the Fed in the
nefarious open discount market of New York, a market in which the sellers
are represented by 10 discount corporations owned and organized by the
very banks which own and control the Fed.
"Fiat money, indeed!
"What Mr. Mills is fighting for is the preservation, whole and entire, of the
banker's monopoly of all the currency of the United States Government.
"Mr. Chairman, last December, I introduced a resolution here asking for an
examination and an audit of the Fed and all related matters.
If the House sees fit to make such an investigation, the people of these United States will obtain information of great value.
This is a Government of the people,by the people, for the people. Consequently, nothing should be concealed from the people. The man who deceives the people is a traitor to these United States.
"The man who knows or suspects that a crime has been committed and
who conceals and covers up that crime is an accessory to it. Mr. Speaker,
it is a monstrous thing for this great nation of people to have its destinies
presided over by a traitorous government board acting in secret concert
with international usurers. (Today, 1989+???)
"Every effort has been made by the Fed to conceal its powers- but the truth
is- the Fed has usurped the Government. It controls everything here and it
controls all of our foreign relations.
It makes and breaks governments at will.
"No man and no body of men is more entrenched in power than the arrogant credit monopoly which operated the Fed.
What National Government has permitted the Fed to steal from the people should now be restored to the people.
The people have a valid claim against the Fed.
If that claim is enforced the Americans will not need to stand in the bread
line, or to suffer and die of starvation in the streets. Women will be saved,
families will be kept together, and American children will not be dispersed
"Here is a Fed Note. Immense numbers of the notes are now held abroad.
I am told that they amount to upwards of a billion dollars. They constitute a
claim against our Government and likewise a claim against our peoples'
money to the extent of $1,300,000,000 (gold) which has within the last few months been shipped abroad to redeem Fed Notes and to pay other gambling
debts of the traitorous Fed.
The greater part of our money stock has been shipped to other lands.
"Why should we promise to pay the debts of foreigners to foreigners? Why
should the Fed be permitted to finance our competitors in all parts of the
world? Do you know why the tariff was raised?
It was raised to shut out the flood of Fed Goods pouring in here from every quarter of the globe- cheap goods, produced by cheaply paid foreign labor, on unlimited supplies of money and credit sent out of this Country by the dishonest and
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