Congressman Louis T. McFadden, Chairman House Banking Currency
"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
"Has Roosevelt relieved 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 international 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 cannot 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 declaring that it may No Longer be converted into gold at the will of
"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
"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
"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 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 embarrass 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 dragooning 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 American 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 currency 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 men] 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
"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 [United States such] 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 person 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.