Congressman Louis T. McFadden
Preface

Congressman Louis T. McFadden served as Chairman of the House Committee on Banking and Currency from 1920 thru 1931. He was thus a supreme expert witness to events which culminated in the first Great Depression. As this material further attests, seven years prior to the fact he was also an unknowing witness to "financial" events which contributed mightily in terms of American monetary gold to the arming of Japan and Germany in preparation for World War II.

The following excerpts are from a speech which is now difficult to obtain from the Congressional Record, in which he addressed the House of Representatives in the midst of the first Great Depression, June 10, 1932. The speech largely documents the extensive crimes of the private banks which were unlawfully consolidated under the deceptively named Federal Reserve Act, which gave these unassented private banks the audacious power to draw unlimited unearned profit from a currency costing practically nothing to private banking institutions which are neither federal, nor a reserve of anything. As McFadden testifies, the excesses of that unassented profit not only manifested in mightily arming foes of the world's wars, and even instigating wars; they further comprise not only all the "interest" and multiplication of cost we have endured since 1914, but the sum of our crippling private and public debt.

From the portions of Mr. McFadden's address preserved here, considerable material has been dropped because it is less germane to the arguments of these pages, and because the whole of the speech is a practically overwhelming body of material.

As this abbreviated version retains most important points, it nonetheless is especially obligatory reading, because McFadden testifies to so many issues which the usual citizen not only is wholly unaware of, but which we must find wholly adverse to American principles and our republican form of government.

His ultimate conclusion is certainly worthwhile. It is certainly an address capable itself of re-uniting America. Few principled people will finish before their ire peaks.

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Noteworthy Points
  1. He declares and thereafter demonstrates in detail that the Federal Reserve is "one of the most corrupt institutions the world has ever known."
  2. He argues that "The Federal Reserve Board has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and iniquities of the Federal Reserve Board and the Federal Reserve Banks acting together have cost this country enough money to pay the national debt several times over."
  3. He explains that the Federal Reserve is not a federal institution; that it is a private credit monopoly, thus even coming into existence in complete opposition to the people, and wholly without a public mandate.
  4. He points out that the private banks comprising the so-called Federal Reserve are of foreign origin.
  5. He claims the Federal Reserve banks financed Trotsky's mass meetings of discontent and rebellion in New York, paid Trotsky's passage from New York to Russia, and instigated the Russian revolution.
  6. He explains that President Wilson was deceived to establish the so-called Federal Reserve.
  7. He explains the origin and nature of the Aldrich Bill, authored by European-born bankers intending to subdue our country under a central (consolidated, all powerful) bank.
  8. He outlines how the 1912 Democrat Party platform explicitly declared its opposition to the creation of a central bank. This dishonored promise was the principal reason the Democrats prevailed in the 1912 election.
  9. He draws upon the history of the Andrew Jackson Administration to point out the dangers of a "financial" system which can tie itself to the executive. A consequence of abandonment of this principle is a field of "candidates" predominantly unwilling to challenge the unassented "financial" system even on obvious Constitutional grounds, and even despite the catastrophic consequences. The resultant extent of corruption is blatantly evident in the survival of the so-called Federal Reserve System after its first Great Depression, as it destroyed and dispossessed the worlds "economies" only 15 years into its existence - and after promising forever to prevent such "economic" anomalies.
  10. He provides staggering statistics documenting the consequences of the Great Depression, such as a single state auctioning 60,000 dispossessed homes in a single day.
  11. He describes the purposely crooked machinery of the so-called Federal Reserve; the deceit leading to its creation; the roles of principal players. He quotes prophetic projections that our monetary gold will disappear.
  12. He chronicles how the president was duped into pressing for the Federal Reserve Act by assertions which were the obvious converse of the truth.
  13. Without knowing the ultimate consequences, he testifies that the Federal Reserve is removing sixty billion dollars annually in gold from the U.S. Treasury to finance the military preparations of Hitler for WWII, and even to pay the debts of the corresponding Japanese military expansion to German munitions makers. World War II would occur seven years later.
  14. He chronicles stock speculation patterns of the Federal Reserve Banks which indicate that the central bank knew of the 1929 stock market crash beforehand.
  15. He chronicles President Hoover asking the Senate to levy a tax so that foreigners will know U.S. citizens will pay the Federal Reserve's debts to them.
  16. He chronicles the shadiest business; how laws are altered to allow the Federal Reserve to switch collateral. In the case of the Federal Reserve Note, this means nullifying collateral.
  17. He dreams that a return to the gold standard will establish a vital economy, saying, "What is needed here is a return to the Constitution of the United States. The old struggle that was fought out here in Jackson's day must be fought over again." (Not included in retained material below.) Although of course the monetary reserves of the American people should be returned to the American people, these pages refute the ostensible virtues of a gold standard in our topic, Why and how precious metal monetary standards [The Gold Standard] can only fail. What is sound money?.
  18. Finally, before concluding his speech, he asks for an audit of the Federal Reserve which to this day has never been performed. He asks that faithless government officers who have violated their oaths of office be impeached and brought to trial. He declares that the Federal Reserve Board has usurped the government of the United States; that it controls both our national and international affairs.

    You can read the speech here.