The Federal Reserve - A Corrupt Institution
by McFadden
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The Federal Reserve-A Corrupt Institution
Congressman McFadden on the Federal Reserve Corporation
Remarks in Congress, 1934
AN ASTOUNDING EXPOSURE
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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, herinafter 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
this Country 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 United
States Governmvent 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 lender. 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 Europeand 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 the 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 children.
"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 to shackle us 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 sough 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
hypocracy 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 draughtsman who was employed to write
the text of the Fed used a 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 Richsbank 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 Stree
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 seen 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
dominations. 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 as it
stands, because it seems 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,
bootleggers 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 Government.
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 con trol 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.
By HON. LOUIS T. McFADDEN, 1934
"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.
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 catastrophy-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
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
individu als 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 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 Cincinnatti 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
the Whole Country 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 amend- ments 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
financing 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 industries?
"Mr. Chairman, if Dynamit Nobel of Germany, wishes to sell
dynamite in Japan to use in Manchuria or elsewhere, it can drew 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 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 un planted 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? "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.
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 this
crime was 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 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 interests.
"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.
SPURIOUS SECURITIES
"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 finding them.
"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 not. And what is 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 bleieve 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 for eign 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 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
storehouses and which 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 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 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 cor- respondents, 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 if the Fed should 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 every year, pay no 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 won der that the children are
being abandoned?
"The government and the people of these United States have been
swindled by swindlers deluxe to whome 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, indorsing 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 here 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 of 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 to foreigners? When and by whom was the
debt incurred? It was incurred by the Fed, when they peddled the
sig nature 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 International Bankers.
"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
earn again that 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.
Fiat Money
"Mr. Chairman, withing 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 bankers'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.
"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 and abandoned.
"Here is a Fed Note. Immense numbers of these 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
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
unscrupulous Fed.
"The Fed are spending $100,000,000 a week buying government
securities in the open market and are making a great bid for foreign
business. They are trying to make rates so attractive that the human
hair merchants and the distillers and other business entities in
foreign land will come her and hire more of the public credit of the
United States Government to pay the Fed outfit for getting it for
them
World Enslavement Planned
"Mr. Chairman, when the Fed was passed, the people of these
United States did not perceive that a world system was being set up
here which would make the savings of the American school teacher
available to a narcotic-drug vendor in Acao. They did not perceive
that these United States was to be lowered to the position of a
coolie country which has nothing but raw material and heavy goods
to export, that Russia was destined to supply the man power and
that this country was to supply the financial power to an
"international superstate". A superstate controlled by international
bankers, and international industrialists acting together to enslave
the world for their own pleasure?
"The people of these United States are being greatly wronged.
They have been driven from their employments. They have been
dispossessed from their homes. They have been evicted from their
rented quarters. They have lost their children. They have been left
to suffer and die for lack of shelter, food, clothing and medicine.
"The wealth of these United States and the working capital have
been taken away from them and has either been locked in the vaults
of certain banks and the great corporations or exported to foreign
countries for the benefit of the foreign customers of these banks
and corporations. So far as the people of the United States are
concerned, the cupboard is bare. "it is true that the warehouses
and coal yards and grain elevators are full, but these are padlocked,
and the great banks and corporations hold the keys.
"The sack of these United States by the Fed is the greatest crime in
history. "Mr. Chairman, a serious situation confronts the House of
Representatives today. We are trustees of the people and the rights
of the people are being taken away from them. Through the Fed the
people are losing the right guaranteed to them by the Constitution.
Their property has been taken from them without due process of
law. Mr. Chairman, common decency requires us to examine the
public accounts of the Government and see what crimes against the
public welfare have and are being committed.
"What is needed here is a return to the Constitution of these United
States. "The old struggle that was fought out here in Jackson's time
must be fought our over again. The independent United States
Treasury should be reestablished and the Government should keep
its own money under lock and key in the building the people
provided for that purpose.
"Asset currency, the devise of the swindler, should be done away
with. The Fed should be abol- ished and the State boundaries
should be respected. Bank reserves should be kept within the
boundaries of the States whose people own them, and this reserve
money of the people should be protected so that the International
Bankers and acceptance bankers and discount dealers cannot drew
it away from them.
"The Fed should be repealed, and the Fed Banks, having violated
their charters, should be liqui- dated immediately. Faithless
Government officials who have violated their oaths of office should
be impeached and brought to trial. "Unless this is done by us, I
predict, that the American people, outraged, pillaged, insulted and
betrayed as they are in their own land, will rise in their wrath, and
will sweep the money changers out of the temple.
"Mr. Chairman, the United States is bankrupt: It has been
bankrupted by the corrupt and dishonest Fed. It has repudiated its
debts to its own citizens. Its chief foreign creditor is Great Britain,
and a British bailiff has been at the White House and the British
Agents are in the United States Treasury making inventories and
arranging terms of liquidations!
Great Britain, Partner in Blackmail
"Mr. Chairman, the Fed has offered to collect the British claims in
full from the American public
by trickery and corruption, if Great Britain will help to conceal its
crimes. The British are shield-
ing their agents, the Fed, because they do not wish that system of
robbery to be destroyed here. They wish it to continue for their
benefit! By means of it, Great Britain has become the financial
mistress of the world. She has regained the position she occupied
before the World War. "For several years she has been a silent
partner in the business of the Fed. Under threat of blackmail, or by
their bribery, or by their native treachery to the people of the
United States, the officials in charge of the Fed unwisely gave
Great Britain immense gold loans running into hundreds of
millions of dollars. They did this against the law! Those gold
loans were not single transactions. They gave Great Britain a
borrowing power in the United States of billions. She squeezed
billions out of this Country by means of her control of the Fed.
"As soon as the Hoover Moratorium was announced, Great Britain
moved to consolidate her gains. After the treacherous signing away
of American rights at the 7-power conference 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 the United States.
"She abandoned the gold standard and embarked upon a campaign
of buying up the claims of foreigners against the Fed in all parts of
the world. She has now sent her bailiff, Ramsey MacDonald, here
to get her war debt to this country cancelled. But she has a club in
her hands! She has title to the gambling debts which the corrupt
and dishonest Fed incurred abroad.
"Ramsey MacDonald, the labor party deserter, has come 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
nature of his action from the American people. But he will obey the
International Bankers and transfer the war debt that Great Britain
should pay to the American people, to the shoulders of the
American taxpayers. "Mr. Chairman, the bank holiday in the
several States was brought about by the corrupt and dishonest Fed.
These institutions manipulated money and credit, and caused the
States to order bank holidays.
"These holidays were frame-ups!
"They were dress rehearsals for the national-bank holiday which
Franklin D. Roosevelt promised Sir Ramsey MacDonald that he
would declare. "There was no national emergency here when
Franklin D. Roosevelt took office excepting the bankruptcy of
theFed-a bankruptcy which has been going on under cover for
several years and which has been concealed from the people so that
the people would continue 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 bankrupt institutions.
"Under cover, the predatory International Bankers have been
stealthily transferring the burden of the Fed debts to the people's
Treasury and to the people themselves. They have been using the
farms and the homes of 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 was declared in New York
State, the deposits in the New York savings banks were greater
than the withdrawals. There were no runs on New York Banks.
There was no need of a bank holiday in New York, or of a national
holiday.
Roosevelt and the International Bankers
"Roosevelt did what the International Bankers ordered him to do!
"Do not deceive yourself, Mr. Chairman, or permit yourself to be
deceived by others into the belief that Roosevelt's dictatorship is in
any way intended to benefit the people of the United States: he is
preparing to sign on the dotted line! "He is preparing to cancel the
war debts by fraud! "He is preparing to internationalize this
Country and to destroy our Constitution itself in order to keep the
Fed intact as a money institution for foreigners.
"Mr. Chairman, I see no reason why citizens of the United States
should be terrorized into surren- dering their property to the
International Bankers who own and control the Fed. The statement
that gold would be taken from its lawful owners if they did not
voluntarily surrender it, to private interests, show that there is an
anarchist in our Government.
"The statement 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 statement of calculated dishonesty!
"By his unlawful usurpation of power on the night of March 5,
1933, and by his proclamation, which in my opinion was in
violation of the Constitution of the United States, Roosevelt
divorced the currency of the United States from gold, and the
United States currency is no longer protected by gold. It is
therefore sheer dishonesty to say that the people's gold is needed to
protect the currency.
"Roosevelt ordered the people to give their gold to private interests-
that is, to banks, and he took control of the banks so that all the
gold and gold values in them, or given into them, might be handed
over to the predatory International Bankers who own and control
the Fed. "Roosevelt cast 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 advantage of the people's confusion and weariness and
spread the dragnet over the United States to capture everything of
value that was left in it. He made a great haul for the International
Bankers.
"The Prime Minister of England came here for money! He came
here to collect cash! "He came here with Fed Currency and other
claims against the Fed which England had bought up in all parts of
the world. And he has presented them for redemption in gold.
"Mr. Chairman, I am in favor of compelling the Fed to pay their
own debts. I see no reason why the general public should be forced
to pay the gambling debts of the International Bankers.
Roosevelt Seizes the Gold
"By his action in closing the banks of the United States, Roosevelt
seized the gold value of forty billions or more of bank deposits in
the United States banks. Those deposits were deposits of gold
values. By his action he has rendered them payable to the
depositors in paper only, if payable at all, and the paper money he
proposes to pay out to bank depositors and to the people generally
in lieu of their hard earned gold values in itself, and being based on
nothing into which the people can convert it the said paper money
is of negligible value altogether.
"It is the money of slaves, not of free men. If the people of the
United States permit it to be imposed upon them at the will of their
credit masters, the next step in their downward progress will be
their acceptance of orders on company stores for what they eat and
wear. Their case will be similar to that of starving coal miners.
They, too, will be paid with orders on Company stores for food and
clothing, both of indifferent quality and be forced to live in
Company-owned houses from which they may be evicted at the
drop of a hat. More of them will be forced into conscript labor
camps under supervision.
"At noon on the 4th of March, 1933, FDR with his hand on the
Bible, took an oath to preserve, protect and defend the Constitution
of the U.S. At midnight on the 5th of March, 1933, he confiscated
the property of American citizens. He took the cur rency of the
United States off the gold standard of value. He repudiated the
internal debt of the Government to its own citizens. He destroyed
the value of the American dollar. He released, or endeavored to
release, the Fed from their contractual liability to redeem Fed
currency in gold or lawful money on a parity with gold. He
depreciated the value of the national currency.
"The people of the U.S. are now using unredeemable paper slips for
money. The Treasury cannot redeem that paper in gold or silver.
The gold and silver of the Treasury has unlawfully been given to
the corrupt and dishonest Fed. And the Administration has since
had the effrontery to raid the country for more gold for the private
interests by telling our patriotic citizens that their gold is needed to
protect the currency.
"It is not being used to protect the currency!
It is being used to protect the corrupt and dishonest Fed.
"The directors of these institutions have committed criminal offense
against the United States Government, including the offense of
making false entries on their books, and the still more serious
offense of unlawfully abstracting funds from the United States
Treasury!
"Roosevelt's gold raid is intended to help them out of the pit they
dug for themselves when they gambled away the wealth and savings
of the American people.
Dictatorship
"The International Bankers set up a dictatorship here because they
wanted a dictator who would protect them. They wanted a dictator
who would protect them. They wanted a dictator who would issue a
proclamation giving the Fed an absolute and unconditional release
from their special currency in gold, or lawful money of any Fed
Bank.
"Has Roosevelt released any other class of debtors in this country
from the necessity of paying their debts? Has he made a
proclamation telling the farmers that they need not pay their
mortgages? Has he made a proclamation to the effect that mothers
of starving children need not pay their milk bills? Has he made a
proclamation relieving householders from the necessity of paying
rent?
Roosevelt's Two Kinds of Laws
"Not he! He has issued one kind of proclamation only, and that is a
proclamation to relieve inter- national bankers and the foreign
debtors of the United States Government. "Mr. Chairman, the gold
in the banks of this country belongs to the American people who
have paper money contracts for it in the form of national currency.
If the Fed cannot keep their contracts with United States citizens to
redeem their paper money in gold, or lawful money, then the Fed
must be taken over by the United States Government and their
officers must be put on trial.
"There must be a day of reckoning. If the Fed have looted the
Treasury so that the Treasury can- not redeem the United States
currency for which it is liable in gold, then the Fed must be driven
out of the Treasury.
"Mr. Chairman, a gold certificate is a warehouse receipt for gold in
the Treasury, and the man who has a gold certificate is the actual
owner of a corresponding amount of gold stacked in the Treasury
subject to his order. "Now comes Roosevelt who seeks to render
the money of the United States worthless by unlawfully
proclaiming that it may No be converted into gold at the will of the
holder. "Roosevelt's next haul for the International Bankers was the
reduction in the pay of all Federal employees.
"Next in order are the veterans of all wars, many of whom are aged
and inform, and other sick and disabled. These men had their lives
adjusted for them by acts of Congress determining the amounts of
the pensions, and, while it is meant that every citizen should
sacrifice himself for the good of the United States, I see no reason
why those poor people, these aged Civil War Veterans and war
widows and half-starved veterans of the World War, should be
compelled to give up their pensions for the financial benefit of the
International vultures who have looted the Treasury, bankrupted the
country and traitorously delivered the United States to a foreign
foe.
"There are many ways of raising revenue that are better than that
barbaric act of injustice. "Why not collect from the Fed the
amount they owe the U.S. Treasury in interest on all the Fed
currency they have taken from the Government? That would put
billions of dollars into the U.S. Treasury.
"If FDR is as honest as he pretends to be, he will have that done
immediately. And in addition, why not compel the Fed to disclose
their profits and to pay the Government its share? "Until this is
done, it is rank dishonesty to talk of maintaining the credit of the
U.S. Government.
"My own salary as a member of Congress has been reduced, and
while I am willing to give my part of it that has been taken away
from me to the U.S. Government, I regret that the U.S. has suffered
itself to be brought so low by the vultures and crooks who are
operating the roulette wheels and faro tables in the Fed, that is now
obliged to throw itself on the mercy of its legislators and
charwomen, its clerks, and it poor pensioners and to take money
out of our pockets to make good the defalcations of the
International Bankers who were placed in control of the Treasury
and given the monopoly of U.S. Currency by the misbegotten Fed.
"I am well aware that the International Bankers who drive up to the
door of the United States Treasury in their limousines, look down
with scorn upon members of Congress because we work for so
little, while they draw millions a year. The 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 human 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 themselves that they would be able to
produce a condition here in which American citizens would be
completely humbled and left starving and penniless in the streets.
"The fact that they made that assertion while they were fomenting
their conspiracy against the United States shows that they like to
see a human being, especially an American, stumbling from hunger
when he walks. "Something should be done about it, they say.
Five-cent meals, or something!
"But FDR will not permit the House of Representatives to
investigate the condition of the Fed. FDR will not do that. He has
certain International Bankers to serve. They not look to him as the
man Higher Up who will protect them from the just wrath of an
outraged people.
"The International Bankers have always hated our pensioners. A
man with a small pension is a ward of the Government. He is not
dependent upon them for a salary or wages. They cannot control
him. They do not like him. It gave them great pleasure, therefore, to
slash the veterans.
"But FDR will never do anything to embarass his financial
supporters. He will cover up the crimes of the Fed. "Before he was
elected, Mr. Roosevelt advocated a return to the earlier practices of
the Fed, thus admitting its corruptness. The Democratic platform
advocated a change in the personnel of the Fed. These were
campaign bait. As a prominent Democrat lately remarked to me:-
'There is no new deal. The same old crowd is in control.'
"The claims of foreign creditors of the Fed have no validity in law.
The foreign creditors were the receivers-and the willing receivers-of
stolen goods! They have received through their banking fences
immense amounts of currency, and that currency was unlawfully
taken from the United States Treasury by the Fed.
"England discovered the irregularities of the Fed quite early in its
operations and through fear, apparently, the Fed have for years
suffered themselves to be blackmailed and dragooned in permitting
England to share in the business of the Fed. "The Fed have
unlawfully taken many millions of dollars of the public credit of
the United States and have given it to foreign sellers on the security
of the Debt paper of foreign buyers in purely foreign transactions,
and when the foreign buyers refused to meet their obligations and
the Fed saw no honest way of getting the stolen goods back into
their possession, they decided by control of the executive to make
the American people pay their losses!
Conspiracy of War Debts
"They likewise entered into a conspiracy to deprive the people of
the U.S. of their title to the war debts and not being able to do that
in the way they intended, they are now engaged in an effort to
debase the Amercan dollar so that foreign governments will have
their debts to this country cut in two, and then by means of other
vicious underhanded arrangements, they propose to remit the
remainder.
"So far as the U.S. is concerned, the gambling counters have no
legal standing. The U.S. Treasury cannot be compelled to make
good the gambling ventures of the corrupt and dishonest Fed. Still
less should the bank deposits of the U.S. be used for that purpose.
Still less should the national cur rency have been made
irredeemable in gold so that the gold which was massed and stored
to redeem the currency for American citizens may be used to pay
the gambling debts of the Fed for England's benefit.
"The American people should have their gold in their own
possession where it cannot be held under secret agreement for any
foreign control bank, or world bank, or foreign nation. Our own
citizens have the prior claim to it. The paper money they have in
their possession deserves redemption far more than U.S. currency
and credit which was stolen from the U.S. Treasury and bootlegged
abroad.
"Why should the foreigners be made preferred creditors of the
bankrupt U.S.? Why should the U.S. be treated as bankrupt at all?
This Government has immense sums due it from the Fed. The
directors of these institutions are men of great wealth. Why should
the guilty escape the consequences of their misdeeds? Why should
the people of these U.S. surrender the value of their gold bank
deposits to pay off the gambling debts of these bankers? Why
should Roosevelt promise foreigners that the U.S. will play the part
of a good neighbor, 'meeting its obligations'?
"Let the Fed meet their own obligations. "Every member of the Fed
should be compelled to disgorge, and every acceptance banker and
every discount corporation which has made illegal profits by means
of public credit unlawfully bootlegged out of the U.S. Treasury and
hired out by the crooks and vultures of the Fed should be
compelled to disgorge.
Federal Reserve Pays No Taxes
"Gambling debts due to foreign receivers of stolen goods should
not be paid by sacrificing our title to our war debts, the assets of
the U.S. Treasury-which belong to all the people of the U.S. and
which it is our duty to preserve inviolate in the people's treasury.
"The U.S. Treasury cannot be made liable for them. The Fed
currency must be redeemed by the Fed banks or else these Fed
banks must be liquidated. "We know from assertions made here by
the Hon. John N. Garner, Vice-President of the U.S. that there is a
condition in the U.S. Treasury which would cause American
citizens, if they knew what it was, to lose all confidence in their
government.
"That is a condition that Roosevelt will not have investigated. He
has brought with him from Wall Street, James Warburg, the son of
Paul M. Warburg. Mr. Warburg, alien born, and the son of an alien
who did not become naturalized here until several years after this
Warburg's birth, is a son of a former partner of Kuhn, Loeb and
Co., a grandson of another partner, a nephew of a former partner,
and a nephew of a present partner. "He holds no office in our
Government, but I am told that he is in daily attendance at the
Treasury, and that he has private quarters there!
In other words, Mr. Chairman, Kuhn, Loeb and Company now has
control and occupy the U.S. Treasury.
Preferred Treatment for Foreigners
"the text of the Executive order which seems to place an embargo
on shipments of gold permits the Secretary of the Treasury, a
former director of the corrupt, to issue licenses at his discretion for
the export of gold coin, or bullion, earmarked or held in trust for a
recognized foreign government or foreign central bank for
international settlement. Now, Mr. Chairman, if gold held in trust
for those foreign institutions may be sent to them, I see no reason
why gold held in trust for American as evidenced by their gold
certificates 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 present administration is extending
to foreign governments, foreign central banks, and the bank of
International Settlements. I think a veteran of the world war, with a
$20.00 gold certificate, is at least as much entitled to receive his
own gold for it, as any international banker in the city of New York
or London.
"by the terms of this executive order, gold may be exported if it is
actually required, for the fulfillment of any contract entered into
prior to the date of this order by an applicant who, in obedience to
the executive order of April 5, 1933, has delivered gold coin, gold
bullion, or gold certificates.
"This means that gold may be exported to pay the obligations
abroad of the Fed which were incurred prior to the date of the
order, namely, April 20, 1933.
"If a European Bank should send 100,000,000 dollars in Fed
currency to a bank in this country for redemption, that bank could
easily ship gold to Europe in exchange for that currency. Such Fed
currency would represent "contracts" entered into prior to the date
of the order. If the Bank of International Settlements or any other
foreign bank holding any of the present gambling debt paper of the
Fed should draw a draft for the settlement of such obligation, gold
would be shopped to them because the debt contract would have
been entered into prior to the date of order.
------------------
Crimes and Criminals
"Mr. Speaker, I rise to a question of constitutional privilege.
"Whereas, I charge. . .Eugene Meyer, Roy A. Young, Edmund Platt,
Eugene B. Black, Adolph Casper Miller, Charles S. Hamlin,
George R. James, Andrew W. Mellon, Ogden L. Mills, William H.
Woodin, John W. Poole, J.F.T. O'Connor, members of the Federal
Reserve Board; F. H. Curtis, J.H. Chane, R.L. Austin, George De
Camp, L.B. Williams, W.W. Hoxton, Oscar Newton, E.M. Stevens,
J.S. Wood, J.N. Payton, M.L. McClure, C.C. Walsh, Isaac B.
Newton, Federal Reserve Agents, jointly and severally, with
violations of the Constitution and laws of the United States, and
whereas I charge them with having taken funds from the U.S
Treasury which were not appropriated by the Congress of the
United States, and I charge them with having unlawfully taken over
$80,000,000,000 from the U.S. Government in the year 1928, the
said unlawful taking consisting of the unlawful creation of claims
against the U.S. Treasury to the extent of over $80,000,000,000 in
the year 1928; and I charge them with similar thefts committed in
1929, 1930, 1931, 1932 and 1933, and in years previous to 1928,
amounting to billions of dollars; and "Whereas I charge them,
jointly and severally with having unlawfully created claims against
the U.S. Treasury by unlawfully placing U.S. Government credit in
specific amounts to the credit of foreign governments and foreign
central banks of issue; private interests and commercial and private
banks of the U.S. and foreign countries, and branches of foreign
banks doing business in the U.S., to the extent of billions of
dollars; and with having made unlawful contracts in the name of the
U.S. Government and the U.S. Treasury; and with having made
false entries on books of account; and "Whereas I charge them
jointly and severally, with having taken Fed Notes from the U.S.
Treasury and with having issued Fed Notes and with having put
Fed Notes into circulation without obeying the mandatory
provision of the Fed Act which requires the Fed Board to fix an
interest rate on all issues of Fed Notes supplied to Fed Banks, the
interest resulting therefrom to be paid by the Fed Banks to the
government of the U.S. for the use of the Fed Notes, and I charge
them of having defrauded the U.S. Government and the people of
the U.S. of billions of dollars by the commission of this crime,
and
"Whereas I charge them, jointly and severally, with having
purchased U.S. Government securities with U.S. Government credit
unlawfully taken and with having sold the said U.S. Government
securities back to the people of the U.S. for gold or gold values and
with having again purchased U.S. Government securities with U.S.
Government credit unlawfully taken and with having again sold the
said U.S. Government security for gold or gold values, and I charge
them with having defrauded the U.S. Government and the people of
the U.S. by this rotary process; and "Whereas I charge them, jointly
and severally, with having unlawfully negotiated U.S. Government
securities, upon which the Government liability was extinguished,
as collateral security for Fed Notes and with having substituted
such securities for gold which was being held as collateral security
for Fed Notes, and with having by the process defrauded the U.S.
Government and the people of the U.S., and I charge them with the
theft of all the gold and currency they obtained by this process; and
"Whereas I charge them, jointly and severally, with having
unlawfully issued Fed currency on false, worthless and fictitious
acceptances and other circulating evidence of debt, and with having
made unlawful advances of Fed currency, and with having
unlawfully permitted renewals of acceptances and renewals of other
circulating evidences of debt, and with having permitted acceptance
bankers and discount dealer corporations and other private bankers
to violate the banking laws of the U.S.;
and
"Whereas I charge them, jointly and severally, with having
conspired to have evidences of debt to the extent of $1,000,000,000 artificially created at the end of February, 1933, and early in March 1933, and with having made unlawful issues and advances of Fed currency on the security of said artificially created evidences of debt for a sinister purpose, and with having assisted in the execution of said sinister purpose;
and
"Whereas I charge them, jointly and severally, with having brought
about the repudiation of the currency obligations of the Fed Banks
to the people of the U.S. and with having conspired to obtain a
release for the Fed Board and the Fed Banks from their contractual
liability to redeem all Fed currency in gold or lawful money at the
Fed Bank and with having defrauded the holders of Fed currency,
and with having conspired to have the debts and losses of the Fed
Board and the Fed Banks unlawfully transferred to the Government
and the people of the U.S.,
and
"Whereas I charge them, jointly and severally, with having
unlawfully substituted Fed currency and other irredeemable paper
currency for gold in the hands of the people after the decision to
repudiate the Fed currency and the national currency was made
known to them, and with thus having obtained money under false
pretenses; and "Whereas I charge them, jointly and severally, with
having brought about a repudiation of the national currency of the
U.S. in order that the gold value of the said currency might be given
to private interests, foreign governments, foreign central banks of
issues, and the Bank of International Settlements, and the people of
the U.S. to be left without gold or lawful money and with no
currency other that a paper currency irredeemable in gold, and I
charge them with 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, with conniving with
the Edge Law banks, and other Edge Law institutions, accepting
banks, and discount corporations, foreign central banks of issue,
foreign commercial banks, foreign corporations, and foreign
individuals with funds unlawfully taken from the U.S. Treasury;
and I charge them with having unlawfully permitted and made
possible 'new financing' for foreigners at the expense of the U.S.
Treasury to the extent of billions of dollars and with having
unlawfully permitted and made possible the bringing into the
United States of immense quantities of foreign securities, created in
foreign countries for export to the U.S. and with having unlawfully
permitted the said foreign securities to be imported into the U.S.
instead of gold, which was lawfully due to the U.S. on trade
balances and otherwise, and with having lawfully permitted and
facilitated the sale of the said foreign securities in the U.S.,
and
"Whereas I charge them, jointly and severally, with having
unlawfully exported U.S. coins and cur rency for a sinister purpose,
and with having deprived the people of the U.S. of their lawful
circulating medium of exchange, and I charge them with having
arbitrarily and unlawfully reduced the amount of money and
currency in circulation in the U.S. to the lowest rate per capita in
the history of the Government, so that the great mass of the people
have been left without a sufficient medium of exchange, and I
charge them with concealment and evasion in refusing to make
known the amount of U.S. money in coins and paper currency
exported and the amount remaining in the U.S. as a result of which
refusal the Congress of the U.S. is unable to ascertain where the
U.S. coins and issues of currency are at the present time, and what
amount of U.S. currency is now held abroad;
and
"Whereas I charge them, jointly and severally, with having
arbitrarily and unlawfully raised and lowered the rates of money
and with having arbitrarily increased and diminished the volume of
currency in circulation for the benefit of private interests at the
expense of the Government and the people of the U.S. and with
having unlawfully manipulated money rates, wages, salaries and
property values both real and personal, in the U.S. by unlawful
operations in the open discount market and by resale and
repurchase agreements unsanctioned by law,
and
"Whereas I charge them jointly and severally, with having brought
about the decline in prices on the New York Stock Exchange and
other exchanges in October, 1929, by unlawful manipulation of
money rates and the volume of U.S. money and currency in
circulation: by theft of funds from the U.S. Treasury by gambling in
acceptances and U.S. Government securities; by service rendered to
foreign and domestic speculators and politician, and by unlawful
sale of U.S. gold reserves abroad,
and
whereas I charge that the unconstitutional inflation law imbedded
in the so-called Farm Relief Act by which the Fed Banks are given
permission to buy U.S. Government securities to the extent of
$3,000,000,000 and to drew forth currency from the people's
Treasury to the extent of $3,000,000,000 is likely to result 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 with U.S. Government's own credit unlawfully
taken,-it being obvious that the Fed do not intend to pay anything
of value to the U.S. Government for the said U.S. Government
securities- no provision for payment in gold or lawful money
appearing in the so-called Farm Relief bill-and the U.S.
Government will thus be placed in a position of conferring a gift of
$3,000,000,000 in the U.S. Government securities on the Fed to
enable them to pay more on their bad debts to foreign governments,
foreign central banks of issue, private interests, and private and
commercial banks, both foreign and domestic, and the Bank of
International Settlements, and whereas the U.S. Government will
thus go into debt to the extent of $3,000,000,000 and will then
have an additional claim of $3,000,000,000 in currency unlawfully
created against it
and
whereas no private interest should be permitted to buy U.S.
Government securities with the Government's own credit unlawfully
taken and whereas currency should not be issued for the benefit of
said private interest or any interests on U.S. Government securities
so acquired, and whereas it has been publicly stated and not denied
that the inflation amendment of the Farm Relief Act is the matter of
benefit which was secured by Ramsey MacDonald, the Prime
Minister of Great Britain, upon the occasion of his latest visit to
the White House and U.S. Treasury, and whereas there is grave
danger that the accused will employ the provision creating U.S.
Government securities to the extent of $3,000,000, 000 and three
millions in currency to be issuable thereupon for the benefit of
themselves and their foreign principals, and that they will convert
the currency so obtained to the uses of Great Britain by secret
arrangements with the Bank of England of which they are the
agents, and for which they maintain an account and perform
services at the expense of the U.S. Treasury, and that they will
likewise confer benefits upon the Bank of International Settlements
for which they maintain an account and perform services at the
expense of the U.S. Treasury;
and
"Whereas I charge them, jointly and severally, with having
concealed the insolvency of the Fed and with having failed to
report the insolvency of the Fed to the Congress and with having
conspired to have the said insolvent insititutions continue in
operation, and with having permitted the said insolvent institutions
to receive U.S. Government funds and other deposits, and with
having permitted them to exercise control over the gold reserves of
the U.S. and with having permitted them to transfer upward of
$100,000,000,000 of their debts and losses to the general public
and the Government of the U.S., and with having permitted foreign
debts of the Fed to be paid with the property, the savings, the
wages, and the salaries of the people of the U.S. and with the farms
and the homes of the American people,
and
whereas I charge them with forcing the bad debts of the Fed upon
the general public covertly and dishonestly and and with taking the
general wealth and savings of the people of the U.S. under false
pretenses, to pay the debts of the Fed to foreigners;
and
"Whereas I charge them, jointly and severally, with violations of the
Fed Act and other laws; with maladministration of the Fed Act; and
with evasions of the Fed Law and other laws; and with having
unlawfully failed to report violations of law on the part of the Fed
Banks which, if known, would have caused the Fed Banks to lose
their charters,
and
"Whereas I charge them, jointly and severally, with failure to
protect and maintain the gold reserves and the gold stock and gold
coinage of the U.S. and with having sold the gold reserves of the
U.S to foreign Governments, foreign central banks of issue, foreign
commercial and private banks, and other foreign institutions and
individuals at a profit to themselves, and I charge them with having
sold gold reserves of the U.S. so that between 1924 and 1928 the
U.S. gained no gold on net account but suffered a decline in its
percentage of central gold reserves from the 45.9 perccent in 1924
to 37.5 percent in 1928 notwithstanding the fact that the U.S. had a
favorable balance of trade through-out that period,
and
"Whereas I charge them, jointly and severally, with having
conspired to concentrate U.S. Govern- ment securities and thus the
national debt of the U.S. in the hands of foreigners and
international money lenders and with having conspired to transfer
to foreigners and international money lenders title to and control of
the financial resources of the U.S.;
and
"Whereas I charge them, jointly and severally, with having
fictitiously paid installments on the national debt with Government
credit unlawfully taken;
and
"Whereas I charge them, jointly and severally, with the loss of the
U.S. Government funds entrusted to their care;
and
"Whereas I charge them, jointly and severally, with having
destroyed independent banks in the U.S. and with having thereby
caused losses amounting to billions of dollars to the depositors of
the said banks, and to the general public of the U.S.,
and
"Whereas I charge them, jointly and severally, with the failure to
furnish true reports of the business operations and the true
conditions of the Fed to the Congress and the people, and having
furnished false and misleading reports to the congress of the U.S.,
and
"Whereas I charge them, jointly and severally, with having
published false and misleading propa- ganda intended to deceive
the American people and to cause the U.S. to lose its
independence;
and
"Whereas I charge them, jointly and severally, with unlawfully
allowing Great Britain to share in the profits of the Fed at the
expense of the Government and the people of the U.S.;
and
"Whereas I charge them, jointly and severally, with having entered
into secret agreements and illegal transactions with Montague
Norman, Governor of the Bank of England;
and
"Whereas I charge them, jointly and severally, with swindling the
U.S. Treasury and the people of the U.S. in pretending to have
received payment from Great Britain of the amount due on the
British war debt to the U.S. in December, 1932;
and
"Whereas I charge them, jointly and severally, with having
conspired with their foreign principals and others to defraud the
U.S. Government and to prevent the people of the U.S. from
receiving payment of the war debts due to the U.S. from foreign
nations;
and
"Whereas I charge them, jointly and severally, with having robbed
the U.S Government and the people of the U.S. by their theft and
sale of the gold reserves of the U.S. and other unlawful
transactions, and with having created a deficit in the U.S. Treasury,
which has necessitated to a large extent the destruction of our
national defense and the reduction of the U.S. Army and the U.S.
Navy and other branches of the national defense;
and
"Whereas I charge them, jointly and severally, of having reduced
the U.S. from a first class power to one that is dependent, and with
having reduced the U.S. from a rich and powerful nation to one that
is internationally poor;
and
"Whereas I charge them, jointly and severally, with the crime of
having treasonable conspired and acted against the peace and
security of the U.S. and with having treasonable conspired to
destroy constitutional Government in the U.S.
"Resolve,
That the Committee on the Judiciary is authorized and directed as a
whole or by subcommittee, to investigate the official conduct of the
Fed agents to determine whether, in the opinion of the said
committee, they have been guilty of any high crime or misdemeanor
which in the contemplation the Constitution requires the
interposition of the Constitutional powers of the House. Such
Committee shall report its finding to the House, together with such
resolution or resolutions of impeachment or other recommendations
as it deems proper.
"For the purpose of this resolution the Committee is authorized to
sit and act during the present Congress at such times and places in
the District of Columbia or elsewhere, whether or not the House is
sitting, has recessed or has adjourned, to hold such clerical,
stenographic, and other assistants, to require the attendance of such
witnesses and the production of such books, papers, and
documents, to take such testimony, to have such printing and
binding done, and to make such expenditures as it deems
necessary."
After some discussion and upon the motion of Mr. Byrns, the
resolution and charge was referred to the Committee on the
Judiciary.
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