The 1934 Case Against The Fed

Congressman McFadden on the Federal Reserve Corporation Remarks in Congress, 1934

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, hereinafter 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 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 Government 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 Europe and 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 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 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 sought to save us”.

4 comments to The 1934 Case Against The Fed

  • silverdoc

    This guy was a true patriot, speaking up for what he passionately believed in, until he died prematurely on a trip to New York (how convenient). His legacy stays alive thanks to ron Paul’s relentless pursuits.

    This is a summary of his key 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.

  • Silver Shield

    Excellent comment and analysis!

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