[louis thomas mcfadden] eccentric or right on the money? [part three]

The congressional record

Congressman Fiesinger: " I was just going to remark that very thing, that the power to "coin and fix the value of money" is solely within the power of the Congress of the United States and it cannot be delegated to anybody else in the world."

Congressman McFadden: "Will the gentleman yield further?"

Congressman Fiesinger: " I do."

Congressman McFadden: "What does the gentleman say in regard to the delegation of that power to the Federal Reserve System?"

Congressman Fiesinger: "I say it is illegal. I say it is unconstitutional, as far as it affects the value of basic money. Power to control credits may be in a different class."

Congressman McFadden: "The gentleman recognizes that that was done, does he not?"

Congressman Fiesinger: "Well, I think I recognize that fact; but it may be that Congress intended to delegate banking and credit control and not the control of the basic money values."

Congressman McFadden: " The Federal Reserve System has the power to issue Federal Reserve notes, which circulate as money?"

Congressman Fiesinger: "It has. Of course, they are promises to pay. They are credits or IOU's of the bank."

Congressman McFadden: "And that power was delegated by Congress in the Federal Reserve Act."

Congressman Fiesinger: "Yes, sir; with the intent to regulate the volume of credit."

Congressman McFadden: "And is being pursued by them, which gives the Federal Reserve System control over the money and credit in the United States."....

Congressman Mott: "What does the gentleman say about the delegation by Congress to the President to fix the value of money, under the farm bill?"

Congressman Fiesinger: "I think it was illegal, and the President did not want it. It was forced upon him. He never asked to have the amendment attached to the farm bill. It was forced upon him, and he is exercising the power because he was forced to exercise it; a power that he never wanted, and I say it is all illegal and unconstitutional."

Congressman McFadden: "If the gentleman has been familiar with the activities of Dr. Sprague over the history of the Federal Reserve System, he well knows that Dr. Sprague has been in all of the conferences, practically, between the Bank of England, officers of the Federal Reserve bank in New York and other central banks, which have had for their purpose the dealing with national and international price levels. That was one of the functions that he was exercising as expert adviser of the Bank of England."

Congressman Fiesinger: " Now, I understand that Dr. Sprague at the London conference was willing to peg the dollar to the British pound at $3.50, and, if he had done that, the price levels in America would have been in the control of the Bank of England, and it would have been so low it would have wrecked our national economy."

Congressman Lamneck: "Will the gentleman please insert at this point what Dr. Sprague said about who should control the price level?"

Congressman Fiesinger: "I may say-I did not expect to answer that question, but Dr. Sprague, in a conference he had, stated he believed that the value of gold should be controlled by the British, because they were more competent, from banking experience, so to do." (CR,1-8-1934)

Congressional Record, January 20, 1934

Congressman McFadden: " I am quoting from the President's message to Congress on this very measure. I quote:

"That the title of all gold be in the Government. The total stock will serve as a permanent and fixed metallic reserve which will change in amount only as far as necessary for the settlement of international balances or as may be required by future agreement among nations of the world for a redistribution of the world stock of monetary gold."

"I say again what I have repeatedly said, that there is a definite plan for the redistribution of the gold of this country and of the world's gold. The plan has been known ever since the establishment of the Bank for International Settlements that through that medium, or one similar to it, eventually the redistribution of gold would take place." CR, 1-20-1934)

Congressional Record: February 20, 1934

Congressman McFadden: "Why should the United States be buying gold and paying $35 an ounce for it? Why Should the United States be making Great Britain a present of $14.33 an ounce on the hundreds of millions of dollars of British gold that is being shipped to the United States through this process be favoring four London gold brokers?

Why should the United States set a price of $35 and pay Great Britain an increase of $14.33 on every ounce of gold? This is interesting when you consider that three fourths of all the gold produced in the world is produced in the British Empire. Did we do this because Great Britain demanded it? Is it possible that this $14.33 profit to Great Britain on every ounce of gold shipped into the United States is for settlement of a debt that the United States owes to Great Britain? (CR 2-20-1934)

Congressional Record: March 3, 1934

Congressman Weideman: "So the paramount issue of today is this: Shall the Government of the United States be run for the benefit of the international bankers or shall the citizens of the United States be given the right to 'life, liberty, and the pursuit of happiness'? Shall we replace the Statue of Liberty with the golden statue erected to the god of greed? Shall we forget that the only time our Saviour used force was when he drove the money changers from the temple?

Let us reestablish the principle that we all believe in: That all men are entitled to the right to work, to own their own homes, to reap a just reward for their labors, and to enjoy nature's sunshine as God intended. We owe it to our children that we shall not depart and leave them in a condition of bondage and slavery to organized greed and gold."

Congressman Lemke: "....This nation is bankrupt; every State in this Union is bankrupt; the people of the United States, as a whole, are bankrupt.

The total physical cash value of all the property in the United States is now estimated at about $70,000,000,000. That is more than it would bring if sold at public auction. In this we do not include debts or the evidence of debts, such as bonds, mortgages, and so forth. These are not physical property. They will have to be paid out of the physical property.
How are we going to pay $300,000,000,000 with only $70,000,000,000?" (CR, 3-3-1934)

Congressional Record, March 13, 1934

Congressman McFadden: "In view of what the gentleman has just said, recall that Theodore Roosevelt, the year that he passed on, made a statement to the effect that Felix Frankfurter is the most dangerous man in the United States to our form of government." (CR, 3-13-1934)

Congressional Record, March 15, 1934

Congressman McFadden: "It is right in line with the plan which is now being worked out in England. I want to point out to the House that there is a concerted movement not only in England but in the United States. In the United States this movement is in charge of certain men now engaged in writing legislation in Department of Agriculture.

I refer to Mr. Tugwell, Mr. Mordecai Ezekiel, and Mr. Frank, and their immediate associates, some of whom are in other departments and some of whom are outside; and I may even go so far as to say that they are aided and abetted in this matter apparently by the Secretary of Agriculture.

One of the stalwarts against the move in England is Stanley Baldwin. Mr. Baldwin issued a statement which was printed in the United States recently. It was a statement made over the radio, and, if I have time, I will read it to you, because he is standing today against the movement in England that I am speaking against now, and that movement is evidenced by this legislation and any other kind of legislation following, which have for their purpose the regimenting of all production in the United States, leading up to an absolute dictatorship.

The quotation I refer to from Mr. Baldwin is as follows:

"Our freedom did not drop down like manna from heaven. It has been fought for from the beginning of our history and the blood of men has been shed to obtain it. It is the result of centuries of resistance to the power of the executive and it has brought us equal justice, trial by jury, freedom of worship, and freedom of religious and political opinion. Democracy is far the most difficult form of government because it requires for perfect functioning the participation of everybody.

"Democracy wants constant guarding, and for us to turn to a dictatorship would be an act of consummate cowardice, of surrender, of confession that our strength and courage alike had gone. It is quite true the wheels of our state coach may be creaking in heavy ground, but are you sure the wheels of the coach are not creaking in Moscow, Berlin, and Vienna, and even in the United States?

"The whole tendency of a dictatorship is to squeeze out the competent and independent man and create a hierarchy accustomed to obeying. Chaos often results when the original dictator goes. The rise of communism or fascism-both alike believe in force as a means of establishing their dictatorship -- would kill everything that had been grown by our people for the last 800 or 1,000 years."

The plan in England to which I am referring is the "political economic plan", drawn up by Israel Moses Sief, the director of a chain-store enterprise in England called Marks & Spencer. This enterprise declared a dividend of 40 percent for 1933, and was enabled to do so by the fact that it has until now handled almost exclusively all imports from Soviet Russia, which has enabled this house to undersell competitors.....

The political economic plan is in operation in the British Government by the means of a tariff advisory board. This organization has gathered all data and statistics obtained by governmental and private organization in administrative, industrial, trade, social, educational, agricultural, and other circles. Air-force statistics are in their hands, as well as those of the law and medical professions. This organization or group have had access to all archives of the British Government, just as the 'brain trust' here in the United States have had access to archives of our Government departments.

Through the tariff advisory board, which was created in February of 1933, and headed by Sir George May, the control of industry and trade is being firmly established in the British Empire. This tariff advisory board works in direct connection with the Treasury, and together with it devises the tariff policy.

In this bill and the tariff bill which follows it is proposed to set up just such a board, under the direction of the President, as the tariff advisory board of England. The tariff board in England has been granted the powers of a law court and can exact under oath that all information concerning industry and trade be given it.

The tariff board is composed, in addition to Sir George May, of Sir Sidney Chapman, professor of economics and statistics, and Sir George Allen Powell, of the British Food Board and Food Council. And it is a well-known fact that this particular political economic group has close connection with the Foreign Policy Association in New York. I wish to quote from a letter from a correspondent of mine abroad, as follows:

"It appears that the alleged 'brain trust' is supposed to greatly influence the present United States policy. Neither you nor I are particularly interested in what takes place in England, but what should interest us both, it seems to me, is that there is a strong possibility that certain members of the 'brain trust' around our President are undoubtedly in touch with this British organization and possibly are working to introduce a similar plan in the United States.

"I understand the brain trust' is largely composed of Professor Frankfurter, Professor Moley, Professor Tugwell, Adolph Berle, William C. Bullitt and the mysterious Mordecai Ezekiel. I think there is no doubt that these men all belong to this particular organization with distinct Bolshevik tendencies.

I am assured by serious people, who are in a position to know, that this organization practically controls the British Government, and it is the opinion of those who do know that this highly organized and well-financed movement is intended to practically Sovietize the English-speaking race. I wish to quote again from my correspondent, as follows:

Some two months ago when Israel Moses Sieff, the present head of this organization, was urged to show more activity by the members of his committee, he said, "Let us go slowly for a while and wait until we see how our plan carries out in America." (CR, 3-15-1934)

Congressional Record, April 9, 1934

Congressman Patman: "....A Federal Reserve bank has a great privilege. It has the right to issue a blanket mortgage on all the property of all the people of this country. It is called a Federal Reserve note.

For that privilege section 16 of the act provides that when the Government prints a Federal Reserve note and guarantees to pay that note and delivers it to a Federal Reserve bank, that Federal Reserve bank shall pay -- it seems to be mandatory -- the rate of interest that is set by the Federal Reserve Board.

The law has never been put into effect. The Federal Reserve Board sets the zero rate. Instead of charging an interest rate which the law says they shall charge, they set no rate at all. Therefore, for the use of this great Government credit, these blanket mortgages that are issued against all the property of all the people of this Nation and against the incomes of all the people of this Nation, they do not pay one penny.

Not one penny of the stack of the Federal Reserve banks is owned by the Government or the people, but it is owned by private banks exclusively. They do not pay one penny for the use of that great privilege, to the people or to the Government. (CR, 4-9-1934)

Congressional Record, June 14, 1934

Congressman McFadden: " We were advised by reports from London last Sunday of the arrival of George L. Harrison, Governor of the Federal Reserve Bank of New York, and we were advised that accompanying him was Mr. Crane, the Deputy Governor, and James P. Warburg, of the Kuhn- Loeb banking family, of New York and Hamburg, Germany, and also Mr. O. M. W. Sprague, recently in the pay of Great Britain as chief economic and financial adviser of Mr. Norman, Governor of the Bank Of England, and now supposed to represent our Treasury.

The Federal Reserve System, headed by George L. Harrison, is our premier, who is dealing with debts behind the closed doors of the Bank of England; and the United States Treasury is there, represented by O. M. W. Sprague, who until the last 10 days was the representative of the Bank of England, and by Mr. James P. Warburg, who is the son of the principal author of the federal Reserve Act. Many things are being settled behind the closed doors of the Bank of England by this group.

Mr. Warburg, you undoubtedly know, is the head of the international Jewish financial group who were largely responsible for the loaning abroad of the vast billions of dollars by the people of the United States and which loans are now frozen.

We must not overlook the fact, however, that J. P. Morgan & Co. were close seconds in these transactions, and in connection with this I wish to point out that George L. Harrison, Governor of the Federal Reserve Bank of New York, is closely identified with the Morgan House in all of the undertakings internationally in which the Federal Reserve banks participated. (CR-6-14-1934)

Congressional Record, June 14, 1934

Congressman McFadden: "....Whereas the lobbying activities of the said British Ambassador, Sir Ronald Lindsay, have for their purpose the taking from the United States Treasury of assets which it is the sworn duty of this Government to protect by every means within its power, not stopping short of war, if need be;; and whereas the lobbying activities of Sir Ronald Lindsay likewise have for their object the overthrow of the Government of the United States and its reorganization as a part of the British Empire:.... (CR, 6-14-1934)

Congressional Record: June 15, 1934

Congressman McFadden: "… a man named Jacob Schiff came to this country as the agent of certain foreign money lenders. He was born in one of the Rothschilds' houses in Frankfurt, Germany. At Hamburg he entered the Warburg banking establishment. The Warburgs of Hamburg are bankers of long standing, with branches in Amsterdam and Sweden.....

Russia had a powerful enemy in this man, Jacob Schiff. The people of the United States were to believe that this enmity of his was caused by wrongs done to Russian Jews. I look elsewhere for the motives which animated him. School children in this country were told Jewish children were crippled for life by Russian soldiers wielding the knout. By unfair means a wedge was driven between Russia and the United States.

One of Schiff's schemes was a sort of wholesale importation of Russian Jews into the United States. Aided by Schiff and his associates, many Russian Jews came to this country about that time and were naturalized here.
I come now to the time when war was declared between Russia and Japan. This was bought about by a skillful use of Japan so that England would not have to fight Russia in India. It was cheaper and more convenient for England to have Japan fight Russia than to do it herself.

As was to be expected, Schiff and his London associates financed Japan. They drew immense quantities of money out of the United States for that purpose. The background for the loans they floated in this country had been skillfully prepared. The "sob stuff", of which Schiff was a master, had sunk into the hearts of sympathetic Americans.

The loans were a great success. Millions of American dollars were sent to Japan by Schiff and his London associates. England's stranglehold on India was made secure. Russia was prevented from entering the Khyber Pass and falling on India from the northwest. Japan at the same time was built up and became a great world power, and as such is now facing us in the Pacific.

While the Russo-Japanese War was in progress President Theodore Roosevelt offered to act as peacemaker, and a conference between representatives of the belligerents was arranged to take place at Portsmouth, N.H. When the Portsmouth Conference took place, Jacob Schiff attended it and used such influence as he had with Theodore Roosevelt to win favors for Japan at the expense of Russia.

His main object, then as always, was humiliation of Russians, whose only crime was that they were Russians and not Jews. He endeavored to humiliate the Russians, but Count Witte, the Russian plenipotentiary, did not allow him to succeed in this attempt.

Mr. Speaker, the restrictions upon Jews in Russia at that time may or may not have been onerous. But onerous or not, before the Russians had time to change them, Schiff had the 80-year-old-treaty of friendship and good will between Russia and the United States denounced. Speaking of this matter, Count Witte says in his autobiography: "The Russians lost the friendship of the American people."

Mr. Speaker, the people of the United States should not permit financial interests or any other special interests to dictate the foreign policy of the United States Government …You have witnessed the unlawful seizure by Franklin D. Roosevelt of gold reserves and other values belonging to the people of the United States, the destruction of banks, the attempted whitewashing of the Federal Reserve Board and Federal Reserve banks, the corruption of which he admitted in his campaign harangues; and you may have noticed that what was confiscated is not in the hands of the present constitutional Government but in the hands of the international bankers who are the nucleus of the new government Roosevelt is seeking to establish here.

Roosevelt's actions are not in accordance with the Constitution of the United States. They are in accordance with the plans of the Third International.

At the present time the Soviet Union is in debt. From the date of Trotzky's return to Russia the course of Russian history has, indeed, been greatly affected by the operations of international bankers. They have acted through German and English institutions and have kept Russia in bondage to themselves.

Their relatives in Germany have drawn immense sums of money from the United States and have in turn financed their agents in Russia at a handsome profit. The Soviet Government has been given United States Treasury funds by the Federal Reserve banks acting through the Chase Bank and the Guaranty Trust Co. and other banks in New York City.

England, no less than Germany, has drawn money from us through the Federal Reserve banks and has re-lent it at high rates of interest to the Soviet Government or has used it to finance her sales to Soviet Russia and her engineering works within the Russian boundaries.

Mr. Speaker, an immense amount of United States money has been used abroad in preparations for war and in the acquisition and the manufacture of war supplies. Mr. Speaker, the United States should look before it leaps into another war, especially a war in Asia. It should decide whether it is worth while to join hands with Russia and China in a war against Japan.

For myself, I say and I have said it often that the United States should remember George Washington's advice. It should mind its own business and stay home.

It should not permit the Jewish international bankers to drive it into another war so that they and their gentile fronts, by way of Louis McHenry Howe, may reap rich profits on everything an army needs from toilet kits to airplanes, submarines, tanks gas masks, poison gas, ammunition, bayonets, guns, and other paraphernalia and instruments of destruction. (CR, June 15, 1934)