Congressman Louis T. McFadden, Chairman House Banking Currency
"This is the John Law swindle over again. The theft of Teapot Dome was trifling
compared to it. What King ever robbed his subject to such an extent as the Fed has robbed
us? Is it any wonder that there have been lately ninety cases of starvation in one of the
New York hospitals? Is there any wonder that the children are being abandoned?
"The government and the people of these United States have been swindled by
swindlers deluxe to whom the acquisition of American or a parcel of Fed Notes presented no
more difficulty than the drawing up of a worthless acceptance in a Country not subject to
the laws of these United States, by sharpers not subject to the jurisdiction of these
United States, sharpers with strong banking "fence" on this side of the water, a
"fence" acting as a receiver of a worthless paper coming from abroad, endorsing
it and getting the currency out of the Fed for it as quickly as possible exchanging that
currency for gold and in turn transmitting the gold to its foreign confederates.
Ivar Kreuger, the Match King!
"Such were the exploits of Ivar Krueger, Mr. Hoover's friend, and his rotten Wall
Street bakers. Every dollar of the billions Kreuger and his gang drew out of this Country
on acceptances was drawn from the government and the people of the United States through
the Fed. The credit of the United States Government was peddled to him by the Fed for
their own private gain. That is what the Fed has been doing for many years.
"They have been peddling the credit of this Government and the [signature of this]
Government to the swindlers and speculators of all nations. That is what happens when a
Country forsakes its Constitution and gives its sovereignty over the public currency to
private interests. Give them the flag and they will sell it.
"The nature of Kreuger's organized swindle and the bankrupt condition of Kreuger's
combine was known here last June when Hoover sought to exempt Krueger's loan to Germany of
$125,000,000 from the operation of the Hoover Moratorium. The bankrupt condition of
Krueger's swindle was known her last summer when $30,000,000 was taken from the American
taxpayers by certain bankers in New York for the ostensible purpose of permitting Krueger
to make a loan to Colombia. Colombia never saw that money.
"The nature of Krueger's swindle was known here in January when he visited his
friend, Mr. Hoover, at the White House. It was known here in March before he went to Paris
and committed suicide.
"Mr. Chairman, I think the people of the United States are entitled to know how
many billions of dollars were placed at the disposal of Krueger and his gigantic combine
by the Fed, and to know how much of our Government currency was issued and lost in the
financing of that great swindle in the years during which the Fed took care of Krueger's
"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 foreigners? When and by whom was the debt incurred? It was incurred by the Fed, when
they peddled the signature of the Government to foreigners- for a Price. It is what the
United States Government has to pay to redeem the obligations of the Fed.
Thieves Go Scot Free
"Are you going to let these thieves get off scot free? Is there one law for the
looter who drives up to the door of the United States Treasury in his limousine and
another for the United States Veterans who are sleeping on the floor of a dilapidated
house on the outskirts of Washington?
"The Baltimore and Ohio Railroad is here asking for a large loan from the people,
and the wage earners and the taxpayers of these United States. It is begging for a handout
from the Government. It is standing, cap in hand, at the door of the R.F.C. where all the
jackals have gathered to the feast. It is asking for money that was raised from the people
by taxation and wants this money of the poor for the benefit of Kuhn, Loeb and Co., the
German 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 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
"Mr. Chairman, within the limits of the time allowed me, I cannot enter into a
particularized discussion of the Fed. I have singled out the Fed currency for a few
remarks because there has lately been some talk here of "fiat money". What kind
of money is being pumped into the open discount market and through it into foreign
channels and stock exchanges? Mr. Mills of the Treasury has spoken here of his horror of
the printing presses and his horror of dishonest money. He has no horror of dishonest
money. If he had, he would be no party to the present gambling of the Fed in the nefarious
open discount market of New York, a market in which the sellers are represented by 10
discount corporations owned and organized by the very banks which own and control the Fed.
"Fiat money, indeed!
"What Mr. Mills is fighting for is the preservation, whole and entire, of the
banker's monopoly of all the currency of the United States Government.
"Mr. Chairman, last December, I introduced a resolution here asking for an
examination and an audit of the Fed and all related matters. If the House sees fit to make
such an investigation, the people of these United States will obtain information of great
value. This is a Government of the people, by the people, for the people. Consequently,
nothing should be concealed from the people. The man who deceives the people is a traitor
to these United States.
"The man who knows or suspects that a crime has been committed and who conceals
and covers up that crime is an accessory to it. Mr. Speaker, it is a monstrous thing for
this great nation of people to have its destinies presided over by a traitorous government
board acting in secret concert with international usurers.
"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 the notes are now held abroad. I am told
that they amount to upwards of a billion dollars. They constitute a claim against our
Government and likewise a claim against our peoples' money to the extent of $1,300,000,000
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
"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.