Saturday, November 16, 2013

#20.5 A Preliminary Standard for Value Unit Exchange Notes and Coins

This is a link to #20.4 the previous post in this series.

This post concerns updates to our proposed standards. Although we can imagine a future time when our Exchange Notes and coins would float around as freely as the “public” money does today, recent conversations have indicated a trend suggesting that E. C. Riegel, after all, merely asked us to pay closer attention to the power of checks against accounts, as money. “Hey, didn't Riegel say, just give everyone a checkbook?”

Since the Value Exchange Network (VEN) can be thought of as a private market, it could be considered as an entity operating both locally and worldwide. The VEN can be thought of as all the transactions operating within a local area covered by an Independent Exchange (IE) affiliated with our International Value Exchange Society (IVES) or the VEN is the total of all of these forming a worldwide network. We started by suggesting that we'd need three IE's to get up and running (with their associated Valun Counters – VC's) in order to affect a workable VEN. We may now say that it may take three IE's operating in any given state (for US) or province (for Canada). There are at present legal boundaries that affect trade between states, etc. We seek the most favourable climates for absolutely non confrontational start ups that may not even function spectacularly at first, but shall slowly and surely prosper a community.

We see in the immediate future, VEN start ups that would be at most statewide (for US states) or province-wide (for Canada, etc.). Some overseas, would see their smaller geographic subdivisions as natural provenances for each independent exchange (IE); perhaps each d├ępartement in France would have their own IE, #75 (Paris) might well have at least 20, etc. We wonder if it wouldn't even be possible for there to be some local variances in names, as after all, the idea of an “exchange” rather than a “bank” is the only crucial matter. Each organization would be a local Valun Exchange in fact, would be independent in terms of its ownership, would adhere to a set of ground rules (which is why you need more than three, so they can make sure they're all operating under the same rules) and would represent the people in its geographical district.

What enables the VEN to propagate is the Valun, chosen as a universal international standard of commercial value measurement. It's the same everywhere. We should all know by now just what Riegel meant when he said that what we are doing when measuring something's price, with whatever available money, is comparing items esteemed to be of comparable value. That's how we determine whether to buy something or not and the “backing” for any money is in what it buys. Money only performs the accounting function in any transaction. (We'll have ample opportunity to sift through McFadden's remarks, recently posted, to gain understanding of what people thought 80 years ago, and still think, regarding money.)

Again parenthetically, and we shall return to this matter many times in this blog, Gresham's law* always holds, and to be considered a real law, it must have the reliability of the force of gravity and it certainly does, as history amply demonstrates. Gresham's law is still very much in force today and actually accounts for more business, profits and fortunes than anything else, which we hope to explain in future papers. What Gresham meant was that the cheaper the intrinsic value of whatever it is that's used as money will always drive out of circulation that which is intrinsically more expensive.

Gold bugs” please take notice, Drockton and others, please pay attention. The idealism (at the least wrongheaded, at the most downright evil) of attempting to get hunks of precious metal to ever circulate widely in trade as money is rendered, by Gresham's law alone, a fantasy. I'm sorry to be the bearer of bad news, but the framers of the Constitution had no idea what they were doing or whom it would ultimately benefit, unless they were under the sway of bankers, which is always possible, because the sole reason for the Constitution was to enable the new national American government to borrow money, just like all the monarchies in Europe and elsewhere. The truth is, that even were a Constitutional silver based money system to be reinstated (which is exactly what it would have to be), likely very little actual silver would trade openly, although it would most certainly trade behind the scenes. Who would be doing most of this physical trading then? The same people who do most of it now; bankers.

The basis of fractional reserve banking was the original goldsmith and silversmith thievery of purchasing power for all other goods, capital assets, etc. through issuance of “bad notes” that were in number many times the value represented by their actual reserves. Surely, were the gold or silver standard to be reintroduced, and of course fractional reserve banking to continue, though there wouldn't be a central bank, these banks would again begin to circulate their equivalent of what we used to call “national bank notes.”
a national bank note example
They'd be about as good as the bank stayed solvent, as at most times they wouldn't have the specie to pay out, they'd all be virtually insolvent, what a joke! What I'm saying is that either we'd see the government return to issuing genuine gold and silver certificates (paper money that they actually have NO Constitutional authority to issue) or far more likely, the national bank notes would again predominate in circulation. A few vendors would actually offer sales in specie, but come on folks, these are so called “precious metals” after all and are really too expensive in and of themselves to want to be used as circulating money.  

What I'm describing here is about what we had during the last quarter of the 19th century in the United States, a period of economic stagnation punctuated by bank panics. This return to so called “hard money,” this so called “monetary reform,” which is advocated far and wide, largely takes no account of the perils of wildcat national banking, of state chartered “public” corporate strangleholds on every conceivable market in the land, to drive out competition and stifle innovation, of government regulations and other busybodies mucking about and forcing small businesses that can't afford the regulations in order to compete to close down, increasing unemployment, because let's face it folks, these Goliath corporations and governments just can't employ everybody.

And of course we'd consider what such reform would do to our governments, which is to say that none would ever be free of bank debt, so taxes would be perpetually stuck high or go higher just to pay the interest on all that borrowed money, whether “backed” or not; we'd still be debt slaves to the bankers. Some apparently think, stupidly in our opinion, immature too, that just rolling things back to the way they were sometime in the so called illustrious past, would be a good enough reform when it clearly would not. In fact such naive ideas are so idiotic and babyish that they deserve to be tossed right into the trashbin of history! The traditional idea of gold and silver backed money is the banker's dream. Wake up! Both fractional reserve banking as well as so called public corporations, which have no basis in Constitutional law, simply have to go. Since we can't make them go away, all we can and should do is walk right straight out of them; stop working for them, boycott trade with them, etc. For example, there are upwards of 20,000 supposedly working for Monsanto, which some consider the most evil corporation of them all. Why are they working for Monsanto and others like them? Don't they know what they are doing? There will come a time when “he worked for Monsanto” will be the worst possible blight on one's reputation. Recall all you John Galts out there, that the John Galt resolve was to leave their system hanging, since as everyone surely knows, those at the top have not the technical expertise to run their own system, because it's too damned big!

So let's get back to some basics. First let's get rid of the notion that money is ever a commodity. This feature will ultimately doom bitcoin too, although most don't know it yet. Let's replace the “money as commodity” idea with the clear observation that money takes its meaning only from the transactions it clears, the simple accounting functions in trade. All money is doing is splitting barter. In such a system, which we'll refer to as credit clearing from now on, money is created and it is destroyed. Indeed, money creation and destruction may be so rapid that while much trade occurs, the amount of money in existence may have negligible significance in terms familiar to the usual speculators who are always able to play their games with “public” money because all of it is a commodity, as is bitcoin. In a credit clearing system, the prices offered for real goods and services and accepted in sales in Valuns tells the business community what the members are willing to spend rather than how much money might be floating around, in existence or in circulation. Providing this information to IE members might be a valuable reporting service someone may be willing to make, for remuneration in Valuns of course.

There would however be pools of liquidity (savings) in a mature VEN, the result of under spending by members and of trading other money into the Valun based VEN. We have explained many places on this blog that we don't want any of their money, but we would hold gold and silver bullion, which can be easily traded back for “public” money, chiefly for the purpose of paying their taxes; “pay unto Caesar that which is Caesar's.”

We would note here that

1. No IE member actually exchanging “public” money for Valuns need concern themselves directly with specie. A Valun Counter (VC) would be like a typical foreign exchange counter anywhere in the world, except they'd be private, not open to the general public. They'd be open limited hours each business day and at the end of each and every day, a currier would take those nasty “bad public notes” away to a precious metals dealer to be cashed in for bullion, which would reside in a vault somewhere else. In any case, no member is left waiting, they get their Valuns right away.

2. If an IE member brought in specie to exchange for Valuns, we'd probably still have a list of only those coins we could accept on their face. Anything non standard would have to face the scrutiny of a metals dealer, a B member within the IE, who upon acceptance of specie, would then issue a date stamped paper receipt to the member indicating that so much specie had been added to the IE's account. The member would then take this receipt to the VC to receive their Valuns.

3. To begin with, Valuns will essentially take 2 forms, as bookkeeping entries on the ledgers of each IE and as checks. Checks would be of two varieties; private and pre-paid

The pre-paid V Check

The closest thing to what we have in mind for the pre-paid variety is probably the traditional “traveller's check” that one used to take overseas for cashing in for their money. These would be made durable enough to withstand a minimum six month usage. They would have an IE specific design on the obverse (front) side and an ad by one of the B member businesses on the reverse (back) side. These checks would thus double as advertising. The obverse sides would contain all the information required for any VC operating anywhere to verify a check's authenticity and any counterfeiting would be rendered so complicated, with so many designs out there, that no one would ever be foolish enough to attempt it.

Members come into a VC with “public” money and want V Checks in return. To begin with, V Checks will be issued in 1/2, 1, 2, 5 and 10 Valun denominations. As they become more popular, larger denominations could follow. In order to stay within current law, at no time would any of these be worth less than a $1 Federal Reserve Note. At inception, 1/2 Valun would have represented $1.08 in value, today (11-12-13) it represents $1.37 in value, more than enough buffer to satisfy laws regarding the comparative value of circulating alternative monetary instruments. At present, US law forbids competing coinage with values less than $1.

Of course this limitation only applies to widely circulating monetary instruments, not personal checks or ledger entries (deposits). The intention is for the proposed V Check to fall within the legal realm of “physical cash.”

Checks however are another matter from “notes” which are “evidences of debt” in any case. Checks are private agreements between members of the IE to accept in trade and settle barter. Members tender their “public” money for V Checks. The following sequence would be followed:

1. Receive the “public” money: the clerk fills out a brief form indicating the amount of “public” money, the comparable number of Valuns accepted in the trade (which changes from day to day based on the previous day's closing spot price for a troy ounce of gold) and the member's account where the Valuns are to be credited. Another clerk (VC's will normally be staffed with at least two people) will execute these transactions; Valuns are deposited into the member's account. A one tenth of one percent transaction fee is charged, which goes into the IE's account. The “public” money will go into a sack or locked box to be taken off premises after business hours every day.

2. Deliver the V Checks: After the Valuns are credited to the member's account, the member is asked how many and in what denominations he wants his V Checks. Let's say he came in with $100. On 2 November, 2013 that works out to 34.84 Valuns. We will be operating an accounting model that includes fractions of Valuns down to the hundredth of a Valun, a cend (or fen), but for now, only the private check (to be described later) would offer a means of transferring fractional Valuns.

Let's say the member wants V Checks for 30 Valuns and wants them in denominations of his choice. That could be up to sixty 1/2 Valun V Checks or as few as three 10 Valun V Checks. Thirty Valuns are then transferred from the member's account into the IE's V Check account. There is always a transaction fee of one tenth of one percent for every movement within the system, so on 30 Valuns, that's 30 cends (or fen).

The clerk takes out the number of V Checks requested and stamps each one with a date six months from the date issued and hands them over to the member. The member will also receive a receipt in case his V Checks are lost or stolen. On the date stamped on each V Check, it expires for lawful circulation, but the member can still do one of two things, since the money is still in the IE's V Check account ready to be spent or deposited (moved out of the IE V Check account into a member account).

V Checks can either be deposited back into a member account or replaced with new V Checks, with a new expiration date stamped on them. If the member decides to deposit the V Check, the same steps that issued it are used to retire it; the clerk again fills out a transaction form and hands it to the clerk making the transactions. Funds are moved from the IE V Check account into the member's account, the transaction fee is paid and then the clerk VOIDS the V Check (either an indelible ink stamp or perforation stamp would be used) and hands the member a receipt indicating that the Valuns represented by the voided check have been deposited into the member's account.

VOIDED V Checks are, at this point, really the IE's property and may be kept for internal reporting purposes and then shredded. Typically an IE would like to know which V Check denominations were getting the most usage. This information would determine what volume of V Checks to order from the IVES, which will decide who will produce them ()probably many smaller printing businesses, B members of each IE) and what standards are required.

Could a member save V Checks as if they are saving cash? Why not? Even if they expire as circulating vehicles after six months from issue, they can always be deposited or replaced. What about the money in the IE's V Check account? It stays where it is. It is NOT used as the pledge for any loans, it is literally money (an accounting book entry) that the IE pledged to keep to retire its V Checks. It isn't going anywhere until the V Check holder decides to do something with it. That could take generations, couldn't it?

Might someone get a V Check for something and then just pass it along to someone else in payment for something? As long as this occurs before the expiration date, they certainly can. But they'd have to be an IE member to either deposit one or tender one for replacement. Anyone receiving one close to expiration may either deposit it or receive a replacement from a nearby Value Counter.

This solution provides a limited circulation monetary instrument that can be extended indefinitely by any IE member operating anywhere in the world.

Personal Checks

E. C. Riegel understood that checks were representations of money and probably considered them among the most liberating inventions of the times. He imagined all sorts of things that can now be done much faster and better than could be done in his day. Books of personal checks certainly could be issued, again in a variety of designs, but having certain interesting differences from current checks. As Riegel suggested, they could be written for any amount of Valuns (as long as the member had those Valuns on account), but given the vast array of snooping that's been going on lately, people would like to retain as much privacy as possible. Why not have the personal check identify a member account rather than the name, address, etc. of a member? Why not further identify the owner of the check by the account number instead of personal information?

Here's the idea:

The IVES Standard identifies a sequence of numbers like this 0-00-0000 for each IE. Each personal check would reference these numbers. (Each V Check as well) An additional six places follow these, 000000, as an account number in hexadecimal for a total of 16,777,215 possible accounts per IE. That's clearly more than enough, as others have suggested, that some Valun communities might begin as quite small (1,200) or up to 12,000. I was thinking more in the range of each independent exchange serving a maximum of 50,000 with maybe as many as a dozen Value Counters (VC's) serving each exchange.

Anyway, you'd have on each personal check the issuing account number and a space for initials and spaces for the receiver of this check to write in their account number and a space for their initials ... and that's it. It would state in numbers and words the number of Valuns and cends (fen) to transfer. Transaction clearing charges apply, one tenth of one percent, and the check issuer always pays. This would be the way to move very large numbers of Valuns around in a VEN; if a member had the Valuns, they could write a check as large as necessary as Riegel recommended.

Extensions of the IVES Standard 

We began with the 0-00-0000 representation and determined that the first three positions, 0-00, would represent continent and country. Therefore:

China is 1-08
India is 1-10
Japan is 1-15
Russian Federation (Asia) is 1-32
Egypt is 2-15
South Africa is 2-45
Canada is 3-05
Mexico is 3-16
United States is 3-23
Argentina is 4-01
Brazil is 4-03
Colombia is 4-05
France is 5-16
Germany is 5-18
Italy is 5-23
Russian Federation (Europe) is 5-38
United Kingdom is 5-47
Australia is 6-01

Within each country the last four positions, 0000, are sort of up for grabs. Using decimal notation, this amounts to 9,999 possible IE designations within each country; more than enough. Using hexadecimal notation, this amounts to 65,535 possible IE designations. The role of IVES will include the registry of these IE identifiers so that, as we said, every last piece of paper used in the system can be properly identified.

Some have suggested that the first two of these four positions, 0000, should represent states or provinces (departments) within a larger country, where all but the very smallest countries usually have geographic subdivisions. If hexadecimal is used this allows up to 255 subdivisions within each country and up to 255 explicit IE designations per subdivision; more than enough.  We will not be able to determine whether any of these is definitive without convening a properly constituted IVES. We're still quite far from such eventualities. What we need to move forward are steering committees whose first objective is to educate their friends and neighbours concerning the proposed Valun and the local trading communities, VEN's, that would grow from such efforts.

But perhaps our greatest problem is that most people have become used to offshoreing and outsourcing their own thinking and action; letting others do it, rather than taking fresh looks at the world around them and realizing that only they alone are capable of affecting real change for the better. Yes, our biggest mistake was assuming that even a state could do things for us that we should have long been doing for ourselves. It's long past time to grow up.  The road out of serfdom and genocide will take time to travel, as it has taken those who wish to enslave and destroy us a long time for their powers to grow to such unprecedented extents; “who can stand against the beast?” They are confident, certain and have stolen the money power, which is absolutely key to everything else. We are used to having people do things for us because we have had better things to do like waste our time watching something on TV, the “image of the beast,” that might make us laugh. What a way to go through life!

Nothing will change for the better without us getting up from such stupid preoccupations and getting to work on our own behalf, for our children, for our grandchildren, for the future of humanity, peace on earth, etc. The first step is getting people together in your local area to discuss the proposal presented on this blog. We look forward to hearing from you.

David Burton

* or perhaps Henry Dunning Macleod

Tuesday, November 12, 2013

#0 For the Record – Louis T. McFadden and Others – Part 3

Louis T. McFadden
Congressional Record: January 8, 1934

Congressman McFadden: "The Congress of the United States must immediately throw the searchlight of investigation into this dark corner, or we are going to be swamped with political influences that are manufactured in foreign countries and that will lead us to the surrender of our heritage of living, just as has been done on former occasions.

Just as we did, for example, when we entered into the Jay Treaty with England, which was ratified on June 24, 1795, whereby we needlessly surrendered our right to the freedom of the seas.

We fought the War of 1812 to regain this right, but the same political influences prevented even a discussion of this subject at the treaty which terminated that war. President Wilson vowed to regain the freedom of the seas at the Treaty of Versailles; but did we regain it? Is the Jay Treaty still in force?...."

"I stand here and say to you that I have studied these records, and not only did we adopt this monetary policy without debate, not only did we adopt it without consideration but we adopted it without even knowledge of what we were doing!

It was a piece of legislative trickery; it was a piece of work in the committee that was silent and secretive. Even members of the committee did not know what was being done, according to their own declarations. The President and Members of the House did not know they were acting on such a measure. But, as I have said before, the shadow of the hand of England rests over this enactment." (Congressional Record, January 8, 1934)

Congressional Record: January 8, 1934

Congressman William Fiesinger: "You will recall the gentleman spoke about Professor Sprague, who was in the Treasury Department as adviser to the Treasury after he came as adviser for the Bank of England. He was also monetary adviser to the Economic Conference in London."

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." 1

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?" 2

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) 3 

Congressional Record, January 20, 1934 [Gold Reserve Act becomes law]

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."

Congressman McFadden: "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." Congressional Record, 1-20-1934)

Congressional Record: January 30, 1934

Congressman McFadden: "The gentleman, of course, is aware of the fact that the Council of the Federation of Churches of Christ [forerunner to the UCC] is an offshoot of the Carnegie Foundation which is operating in this country as a British-propaganda organization , tied up with all of the other subversive organizations which are trying to hold down proper preparedness in the United States. [Applause] (Congressional Record, 1-30-1934)

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? (Congressional Record 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 a 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 public and private debts of this Nation, which are evidenced by bonds, mortgages, notes, or other written instruments amount to about $250 billion, and it is estimated that there is about $50 billion of which there is no record, making in all about $300 billion of public and private debts.

The total physical cash value of all the property in the United States is now estimated at about $70 billion. 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 billion with only $70 billion?" (Congressional Record, 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) 4

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. 5

Their action in this matter is also assisted and aided through the agency of the Foreign Policy Association of the United States, which is directly connected with the Fabian Society, or a branch of it, in England, which at the present time is attempting to take over the control of agriculture and its operation in England, as well as the industries therein located. I call your especial attention to the recent article, America Must Choose, by Secretary of Agriculture Wallace, a syndicated article put out under the auspices of the Foreign Policy Association of New York and copyrighted by them. This article is quite in keeping with the plan of the British offspring of the Fabian group. 6

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. 7

"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. 8

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. 9

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.

Iron and steel, as also cotton and industrials, in England have been ordered by the tariff advisory board to prepare and submit plans for the reorganization of their industries and warned that should they fail to do so, a plan for complete reconstruction would be imposed upon them. May I suggest to you the similarity of this plan with the N.R.A.(National Recovery Act), and also suggest to you that the tariff advisory board in England has been granted default powers and can, therefore, impose its plan. The attempt to Sovietize both Britain and the US. 10

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. So it is quite possible that should this political economic plan be developed in the United States, if this alleged 'brain trust' has really a serious influence over the judgment of our President, this plan may be attempted in our country."

Need I point out to you, who have been observing the activities of the so-called 'brain trust' in the writing and sending to the Congress of legislation, that this legislation has for its purpose the virtual setting up in the United States of a plan similar to that which is being worked out in England. 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." (Congressional Record, 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 stock 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. (Congressional Record, 4-9-1934)

Congressional Record, June 14, 1934

Congressman McFadden: "I hope that is the case, but I may say to the gentleman that during the sessions of this Economic Conference in London there is another meeting taking place in London. 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. Oliver 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.

These men landed in England and rushed to the Bank of England for private conference, taking their luggage with them, before even going to their hotel. We know this conference has been taking place for the past 3 days behind closed doors in the Bank of England with these gentlemen meeting with heads of the Bank of England and the Bank for International Settlements, of Basel, Switzerland, and the head of the Bank France, Mr. Maret. They are discussing war debts; they are discussing stabilization of exchanges and the Federal Reserve System, I may say to the Members of the House.

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 Oliver 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.

No doubt this group were pleased to hear that yesterday the Congress passed amendments to the Federal Reserve Act and that the President signed the bill which turns over to the Federal Reserve System the complete total financial resources of money and credit in the United States. Apparently the domination and control of the international banking group is being strengthened.... 11

We are being led by the international Jews operating through Great Britain and the Bank of England, and it is the purpose of those who are directing and cooperating that debts be reduced to 10 percent or canceled entirely.... 12

Then there is James P. Warburg, who was called in by the President and who has sat in on all of the conferences here in Washington participated in by the foreign representatives recently, and he is the financial adviser at the Economic Conference and at the conferences in the Bank of England to which I have referred. 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. (Congressional Record 6-14-1934)

Congressional Record, June 14, 1934

Congressman McFadden: "....Whereas the lobbying activities of the said British Ambassador, Sir Ronald Lindsay, carried on in the halls of the Capitol, at the British Embassy, in the houses of citizens of the United States, in the offices of predatory international bankers, on shipboard, on the trains, and elsewhere, 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 said Lindsay's lobbying activities likewise have for their purpose the defeat of measures enacted into law by the Government of the United States to insure the repayment of moneys advanced to Great Britain on her written promise to repay them; 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: ... (Congressional Record, 6-14-1934

Congressional Record: June 15, 1934

Congressman McFadden: "At that time a man named Jacob Schiff came to this country as the agent of certain foreign money lenders. His mission was to get control of American railroads. This man was a Jew. He was the son of a rabbi. He was born in one of the Rothschilds's houses in Frankfort, Germany. He was a small fellow with a pleasant face and, if I remember correctly, his eyes were blue. At an early age he set out from Frankfort to seek his fortune and went to Hamburg, Germany. At Hamburg he entered the Warburg banking establishment. The Warburgs of Hamburg are bankers of long standing, with branches in Amsterdam and Sweden.

Sometime before Schiff s arrival there was a firm of Jewish peddlers or merchants in Lafayette, Ind., by the name of Kuhn & Loeb. I think they were there about 1850. Probably they made money out of the new settlers who passed through Indiana on their way to the Northwest. This firm of Jews had finally moved to New York and had set themselves up as private bankers and had grown rich.

Jacob Schiff married Teresa Loeb and became the head of Kuhn, Loeb & Co. Schiff made a great deal of money here for himself and for the Jewish money lenders of London, he began to give orders to Presidents almost as a matter of course. He appears to have been a man who would stop at nothing to gain his own ends. I do not blame him for being a Jew. I blame him for being a trouble maker. 13

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. In the 1890's Schiff was the agent in this country of Ernest Cassell and other London money lenders. These money lenders were looking forward to a war between England and Russia and were making preparations for propaganda designed to support England in the United States.

This country was then a debtor nation, paying a high yearly tribute to Schiff and his principals. Schiff accordingly took it upon himself to create a prejudice in the United States against Russia. He did this by presenting the supposed wrongs of the Russian Jews to the American public. Unpleasant tales began to appear in print. School children in this country were told the 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. He drew up divers and sundry regulations for the temporary transplantation of these Jewish emigrants. He would not, he said, have them enter this country through the port of New York, because they might like New York too well to leave it for the outposts he had selected for them. He said it would be best to have them come in at New Orleans and to have them stay there two weeks, "so that they could pick up a few words of English and get a little money" before setting off for what he called the "American hinterland."

How they were to get the money he did not say. Aided by Schiff and his associates, many Russian Jews came to this country about that time and were naturalized here. A number of these naturalized Jews then returned to Russia. Upon their return to that country, they immediately claimed exemption there from the regulations of domicile imposed on Jews; that is, they claimed the right to live on purely Russian soil because they were American citizens, or "Yankee" Jews.

Disorders occurred and were exploited in the American press. Riots and bombings and assassinations, for which somebody furnished money, took place. The perpetrators of these outrages appear to have been shielded by powerful financial interests. While this was going on in Russia, a shameless campaign of lying was conducted here, and large sums of money were spent to make the general American public believe that the Jews in Russia were a simple and guileless folk ground down by the Russians and needing the protection of the great benefactor, of all the world-Uncle Sam.

In other words, we were deceived. We were so deceived that we allowed them to come in here and to take the bread out of the mouths of our own American citizens. I come now to the time when war was declared between Russia and Japan [1905]. 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 form 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.

All this was accomplished by control of the organs of American publicity, releases to the effect that Russian Jews and "Yankee" Jews were being persecuted in Russia, and by the selling of Japanese war bonds to American citizens. While the Russo-Japanese War [1905] 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. 14

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. Schiff s power and the power of his organized propaganda were well understood by Count Witte, however. Consequently he was not surprised when President Roosevelt, who was often deceived, twice asked him to have Russia treat Russian Jews who had become naturalized in the United States and who had thereafter returned to live in Russia with special consideration; that is, not as Jews but as Americans. 15

Witte carried home a letter from Roosevelt embodying this plea. 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." 16

Mr. Speaker, I cannot believe that those people —the real Russians— ever lost the true friendship of the American people. They were done away with to suit the ambitions of those who intend to be the financial masters of the world, and some of us were deceived into thinking that in some mysterious way they, themselves, were to blame. The chasm that suddenly opened between ourselves and our old friends and well-wishers in Russia was a chasm created by Schiff the vindictive in his inhuman greed, and he created it in the name of the Jewish religion ... 17

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. But in this connection history is now repeating itself. You have heard, no doubt, of the so-called persecutions of Jews in Germany. Mr. Speaker, there is no real persecution of Jews in Germany. Hitler and the Warburgs, the Mendelssohns and the Rothschilds, appear to be on the best of terms.

There is no real persecution of the Jews in Germany, but there has been a pretended persecution of them because there are 200,000 unwanted Communistic Jews in Germany, largely Galician Jews [Ukrainian] who entered Germany after the World War, and Germany is very anxious to get rid of those particular Communistic Jews. The Germans wish to preserve the purity of their own blond racial stock. 17 They are willing to keep rich Jews like Max Warburg and Franz Mendelssohns, whose families have lived in Germany so long that they have acquired some German national characteristics. But the Germans are not willing to keep the Galician Jews, the Upstarts.

So a great show is put on, largely by German Jews themselves, in the hope that Uncle Sam will prove himself to be as foolish as he was before and that we will allow those Galician and Communistic Jews to come in here. That is why Miss Perking has been placed in charge of the Department of Labor. She is there to lower the immigration bars. It is thought that, being a woman, she may disarm criticism. She is an old hand with the international Jewish bankers. If she were not, she would not be here in a Jewish-controlled administration. 17

When the so-called "anti-Semitic campaign" designed for American consumption was launched in Germany, France was alarmed because she feared the Galician Jews might be dumped on French soil. French newspapers published articles concerning the menace, but now that France has been shown that the purpose of the anti-Semitic campaign is to dump the 200,000 communistic Jews on the United States she is worried no longer. "Ah", she says, "Ol' Uncle Sam, he is to be the goat. Very good."

Mr. Speaker, I regard it as a pity that there are Americans who love to fawn upon the money Jews and to flatter them. Some of these unfortunates are under obligations to Jewish money changers and dare not cross them ...

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. 18

At one time Trotzky was a favorite with Jacob Schiff. During the war Trotzky edited Novy Mir and conducted mass meetings in New York. When he left the United States to return to Russia, he is said upon good authority to have traveled on Schiff's money and under Schiff's protection. He was captured by the British at Halifax and immediately, on advice from a highly placed personage, set free. Shortly after his arrival in Russia he was informed that he had credit in Sweden at the Swedish branch of the bank owned by Max Warburg, of Hamburg. This credit helped to finance the seizure of the Russian revolution by the international Jewish bankers. 19 It assisted them in subverting it to their own ends. 20

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.

The Dnieperstroy Dam was built with funds unlawfully taken from the United States Treasury by the corrupt and dishonest Federal Reserve Board and the Federal Reserve banks....

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. Germany is said to be part owner of a large poison-gas factory at Troitsk on Russian soil. China is almost completely Sovietized, and in the Asiatic interior huge stocks of munitions are said to be stored awaiting the day when the war lords of the United States will ship United States troops to Asia. 21

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 and sycophants by way of Louis McHenry Howe, the graftmaster, 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. (Congressional Record, June 15, 1934)

"Attacks on McFadden's Life Reported"

Commenting on Former Congressman Louis T. McFaddens's "heart-failure sudden-death" on Oct. 3, 1936, after a "dose" of "intestinal flu," "Pelley's Weekly" of Oct. 14 said:

Now that this sterling American patriot has made the Passing, it can be revealed that not long after his public utterance against the encroaching powers of Judah [misled on this point], it became known among his intimates that he had suffered two attacks against his life. The first attack came in the form of two revolver shots fired at him from ambush as he was alighting from a cab in front of one of the Capital hotels. Fortunately both shots missed him, the bullets burying themselves in the structure of the cab.

"He became violently ill after partaking of food at a political banquet at Washington. His life was only saved from what was subsequently announced as a poisoning by the presence of a physician friend at the banquet, who at once procured a stomach pump and subjected the Congressman to emergency treatment."

/s/ Robert Edward Edmondson (Publicist-Economist)

President Andrew Jackson stated in reference to the bankers at the state of his administration: "You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out. "
[Words in the cartoon: ROTHSCHILD, “For billions a year as interest on bonds, I rent the human race the privilege of existing on MY EARTH. Through the private central bank scheme, I'll soon grab the United States. Then I'll OWN all Christendom. Czars, emperors, kings and the people all must obey my orders, submit to my exactions or GET OFF MY EARTH!22 

"In other words, the imperial power of elasticity of the public currency is wielded exclusively by these central corporations owned by the banks. This is a life and death power over all local banks and all business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By making money artificially scarce, interest rates throughout the country can be arbitrarily raised and the bank tax on all business and cost of living increased for the profit of the banks owning these regional central banks, and without the slightest benefit to the people. These twelve corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency and all public revenue of the United States. Not a dollar can be put into circulation among the people by their Government without the consent of and on terms fixed by these twelve private money trusts."

- Alfred Owen Crozier, a Cincinnati attorney, mentioned by McFadden, who opposed the creation of a central bank. The associated cartoon lampooning Rothschild was also drawn by him. [sic]

1. The US Constitution, Article 1.
2. The Agricultural Adjustment Act creating the Administration for such (AAA), later ruled unconstitutional by the US Supreme Court (SCOTUS).
3. Bullion brokers in London and New York still determine gold / silver prices. 
4. Included here as it was part of their discussion. The man mentioned became a Supreme Court Justice.
5. Known to be corrupt at the time.
6. The CFR was the direct descendant of this group that advocated a slow road to socialism espoused by George Bernard Shaw and others. 
7. We are surprised how these men, and Riegel himself, had failed to understand “democracy” as inevitably leading to either mob rule or rule by the autocrats of some elite class.
8. Those who have paid attention see our posts with links to the School Sucks Project Podcast series as well as our posts with links to the Peace Revolution Podcasts series.
9. What did the USSR export in those days? What slave labour was then being used?
10. All these acts were an attempt to Sovietize the US and were later ruled unconstitutional.
11. A centralized credit monopoly was a key point of the Communist Manifesto.
12. Prior to this, McFadden had merely referenced “aliens” as having controlling interests in the US economy.
13. This should be the rational policy toward anyone, regardless of who they are and where they come from.
14. Who invited Schiff to this conference, or did he invite himself? Who does the same these days?
15. Gaining extra-terriroriality for them: this while still under the czars.
16. No true Russian has ever lost the friendship and respect of any true American, regardless of the mistakes and deceptions under which our governments have fallen.
17. ... or so he believed.
18. Organized communism.
19. He was mistaken: it was always their operation from inception. 
20. Eustace Mullins is another source witness to the same. 
21. Owen Lattimore is said to have advised for Russia to have China.
22. This has already happened and the ordering is in process right now.

#0 For the Record - Louis T. McFadden - Part 2

Louis T. McFadden
On May 23, 1933, Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank system, The Comptroller of the Currency and the Secretary of United States Treasury for numerous criminal acts, including but not limited to, CONSPIRACY, FRAUD, UNLAWFUL CONVERSION, AND TREASON.

The petition for Articles of Impeachment was thereafter referred to the Judiciary Committee and has YET TO BE ACTED ON. So, this ELECTRONIC BOOKLET should be reprinted, reposted, set up on web pages and circulated far and wide. [sic]

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

Quotations from several speeches made on the Floor of the House of Representatives by the Honorable Louis T. McFadden of Pennsylvania. Mr. McFadden, due to his having served as Chairman of the Banking and Currency Committee for more than 10 years, was the best posted man on these matters in America and was in a position to speak with authority of the vast ramifications of this gigantic private credit monopoly. As Representative of a State which was among the first to declare its freedom from foreign money tyrants it is fitting that Pennsylvania, the cradle of liberty, be again given the credit for producing a son that was not afraid to hurl defiance in the face of the money-bund. Whereas Mr. McFadden was elected to the high office on both the Democratic and Republican tickets, there can be no accusation of partisanship lodged against him. Because these speeches are set out in full in the Congressional Record, they carry weight that no amount of condemnation on the part of private individuals could hope to carry. 1

"Mr. Chairman, the United States is bankrupt: It has been bankrupted by the corrupt and dishonest Fed. It has repudiated its debts to its own citizens. Its chief foreign creditor is Great Britain, and a British bailiff has been at the White House and the British Agents are in the United States Treasury making inventory arranging terms of liquidations!

Great Britain, Partner in Blackmail

"Mr. Chairman, the Fed has offered to collect the British claims in full from the American public by trickery and corruption, if Great Britain will help to conceal its crimes. The British are shielding their agents, the Fed, because they do not wish that system of robbery to be destroyed here. They wish it to continue for their benefit! By means of it, Great Britain has become the financial mistress of the world. She has regained the position she occupied before the World War.

"For several years she has been a silent partner in the business of the Fed. Under threat of blackmail, or by their bribery, or by their native treachery to the people of the United States, the officials in charge of the Fed unwisely gave Great Britain immense gold loans running into hundreds of millions of dollars. They did this against the law! Those gold loans were not single transactions. They gave Great Britain a borrowing power in the United States of billions. She squeezed billions out of this Country by means of her control of the Fed.

"As soon as the Hoover Moratorium was announced, Great Britain moved to consolidate her gains. After the treacherous signing away of American rights at the 7-power conference at London in July, 1931, which put the Fed under the control of the Bank of International Settlements, Great Britain began to tighten the hangman's noose around the neck of the United States.

"She abandoned the gold standard and embarked on a campaign of buying up the claims of foreigners against the Fed in all parts of the world. She has now sent her bailiff, Ramsey MacDonald, here to get her war debt to this country canceled. But she has a club in her hands! She has title to the gambling debts which the corrupt and dishonest Fed incurred abroad.

"Ramsey MacDonald, the labor party deserter, has come here to compel the President to sign on the dotted line, and that is what Roosevelt is about to do!

Roosevelt will endeavor to conceal the nature of his action from the American people. But he will obey the International Bankers and transfer the war debt that Great Britain should pay to the American people, to the shoulders of the American taxpayers.

"Mr. Chairman, the bank holiday in the several States was brought about by the corrupt and dishonest Fed. These institutions manipulated money and credit, and caused the States to order bank holidays.

"These holidays were frame-ups! "They were dress rehearsals for the national bank holiday which Franklin D. Roosevelt promised Sir Ramsey MacDonald that he would declare.

"There was no national emergency here when Franklin D. Roosevelt took office excepting the bankruptcy of the Fed- a bankruptcy which has been going on under cover for several years and which has been concealed from the people so that the people would continue to permit their bank deposits and their bank reserves and their gold and the funds of the United States Treasury to be impounded in these bankrupt institutions.

"Under cover, the predatory International Bankers have been stealthily transferring the burden of the Fed debts to the people's Treasury and to the people themselves. They the farms and the homes of the United States to pay for their thievery! That is the only national emergency that there has been here since the depression began.

"The week before the bank holiday was declared in New York State, the deposits in the New York savings banks were greater than the withdrawals. There were no runs on New York Banks. There was no need of a bank holiday in New York, or of a national holiday.

Roosevelt and the International Bankers

"Roosevelt did what the International Bankers ordered him to do!

"Do not deceive yourself, Mr. Chairman, or permit yourself to be deceived by others into the belief that Roosevelt's dictatorship is in any way intended to benefit the people of the United States: he is preparing to sign on the dotted line! "He is preparing to cancel the war debts by fraud!

"He is preparing to internationalize this Country and to destroy our Constitution itself in order to keep the Fed intact as a money institution for foreigners. "Mr. Chairman, I see no reason why citizens of the United States should be terrorized into surrendering their property to the International Bankers who own and control the Fed. The statement that gold would be taken from its lawful owners if they did not voluntarily surrender it, to private interests, show that there is an anarchist in our Government.

"The statement that it is necessary for the people to give their gold- the only real money- to the banks in order to protect the currency, is a statement of calculated dishonesty!

"By his unlawful usurpation of power on the night of March 5, 1933, and by his proclamation, which in my opinion was in violation of the Constitution of the United States, Roosevelt divorced the currency of the United States from gold, and the United States currency is no longer protected by gold. It is therefore sheer dishonesty to say that the people's gold is needed to protect the currency.

"Roosevelt ordered the people to give their gold to private interests- that is, to banks, and he took control of the banks so that all the gold and gold values in them, or given into them, might be handed over to the predatory International Bankers who own and control the Fed.

"Roosevelt cast his lot with the usurers. "He agreed to save the corrupt and dishonest at the expense of the people of the United States.

"He took advantage of the people's confusion and weariness and spread the dragnet over the United States to capture everything of value that was left in it. He made a great haul for the International Bankers.

"The Prime Minister of England came here for money! He came here to collect cash!

"He came here with Fed Currency and other claims against the Fed which England had bought up in all parts of the world. And he has presented them for redemption in gold.

"Mr. Chairman, I am in favor of compelling the Fed to pay their own debts. I see no reason why the general public should be forced to pay the gambling debts of the International Bankers.

Roosevelt Seizes the Gold

"By his action in closing the banks of the United States, Roosevelt seized the gold value of forty billions or more of bank deposits in the United States banks. Those deposits were deposits of gold values. By his action he has rendered them payable to the depositors in paper only, if payable at all, and the paper money he proposes to pay out to bank depositors and to the people generally in lieu of their hard earned gold values in itself, and being based on nothing into which the people can convert it the said paper money is of negligible value altogether. 2

"It is the money of slaves, not of free men. If the people of the United States permit it to be imposed upon them at the will of their credit masters, the next step in their downward progress will be their acceptance of orders on company stores for what they eat and wear. Their case will be similar to that of starving coal miners. They, too, will be paid with orders on Company stores for food and clothing, both of indifferent quality and be forced to live in Company-owned houses from which they may be evicted at the drop of a hat. More of them will be forced into conscript labor camps under supervision.

"At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath to preserve, protect and defend the Constitution of the U.S. At midnight on the 5th of March, 1933, he confiscated the property of American citizens. He took the currency of the United States standard of value. He repudiated the internal debt of the Government to its own citizens. He destroyed the value of the American dollar. He released, or endeavored to release, the Fed from their contractual liability to redeem Fed currency in gold or lawful money on a parity with gold. He depreciated the value of the national currency.

"The people of the U.S. are now using unredeemable paper slips for money. The Treasury cannot redeem that paper in gold or silver. The gold and silver of the Treasury has unlawfully been given to the corrupt and dishonest Fed. And the Administration has since had the effrontery to raid the country for more gold for the private interests by telling our patriotic citizens that their gold is needed to protect the currency.

"It is not being used to protect the currency! It is being used to protect the corrupt and dishonest Fed. "The directors of these institutions have committed criminal offense against the United States Government, including the offense of making false entries on their books, and the still more serious offense of unlawfully abstracting funds from the United States Treasury! "Roosevelt's gold raid is intended to help them out of the pit they dug for themselves when they gambled away the wealth and savings of the American people.


"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 [sic]. 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 Bank.

"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 the holder.

"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 injustice.

"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 its share?

"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 do 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 controlled 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 treasury.

"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 [Kuhn, Loeb and Co.], 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 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 million 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 shipped to them because the debt contract would have been entered into prior to the date of order.

Crimes and Criminals

"Mr. Speaker, I rise to a question of constitutional privilege.

"Whereas, I charge. . Eugene Meyer, Roy A. Young, Edmund Piatt, Eugene B. Black, Adolph Casper Miller, Charles S. Hamlin, George R. James, Andrew W. Mellon, Ogden L. Mills, William H. Woo W. Poole, J.F.T. O'Connor, members of the Federal Reserve Board; F. H. Curtis, J.H. Chane, R.L. Austin, George De Camp, L.B. Williams, W.W. Hoxton, Oscar Newton, E.M. Stevens, J.S. Wood, J.N. Payton, M.L. McClure, C.C. Walsh, Isaac B. Newton, Federal Reserve Agents, jointly and severally, with violations of the Constitution and laws of the United States, and whereas I charge them with having taken funds from the U.S Treasury which were not appropriated by the Congress of the United States, and I charge them with having unlawfully taken over $80 billion from the U.S. Government in the year 1928, the said unlawful taking consisting of the unlawful creation of claims against the U.S. Treasury to the extent of over $80 billion in the year 1928; and I charge them with similar thefts committed in 1929, 1930, 1931, 1932 and 1933, and in years previous to 1928, amounting to billions of dollars; and "Whereas I charge them, jointly and severally with having unlawfully created claims against the U.S. Treasury by unlawfully placing U.S. Government credit in specific amounts to the credit of foreign governments and foreign central banks of issue; private interests and commercial and private banks of the U.S. and foreign countries, and branches of foreign banks doing business in the U.S., to the extent of billions of dollars; and with having made unlawful contracts in the name of the U.S. Government and the U.S. Treasury; and with having made false entries on books of account; and

"Whereas I charge them jointly and severally, with having taken Fed Notes from the U.S. Treasury and with having put Fed Notes into circulation without obeying the mandatory provision of the Fed Act which requires the Fed Board to fix an interest rate on all issues of Fed Notes supplied to Fed Banks, the interest resulting therefrom to be paid by the Fed Banks to the government of the U.S. for the use of the Fed Notes, and I charge them of having defrauded the U.S. Government and the people of the U.S. of billions of dollars by the commission of this crime, and

"Whereas I charge them, jointly and severally, with having purchased U.S. Government securities with U.S. Government credit unlawfully taken and with having sold the said U.S. Government securities back to the people of the U.S. for gold or gold values and with having again purchased U.S. Government securities with U.S. Government credit unlawfully taken and with having again sold the said U.S. Government security for gold or gold values, and I charge them with having defrauded the U.S. Government and the people of the U.S. by this rotary process; and

"Whereas I charge them, jointly and severally, with having unlawfully negotiated U.S. Government securities, upon which the Government liability was extinguished, as collateral security for Fed Notes and with having substituted such securities for gold which was being held as collateral security for Fed Notes, and with having by the process defrauded the U.S. Government and the people of the U.S., and I charge them with the theft of all the gold and currency they obtained by this process; and

"Whereas I charge them, jointly and severally, with having unlawfully issued Fed currency on false, worthless and fictitious acceptances and other circulating evidence of debt, and with having made unlawful advances of Fed currency, and with having unlawfully permitted renewals of acceptances and renewals of other circulating evidences of debt, and with having permitted acceptance bankers and discount dealer corporations and other private bankers to violate the banking laws of the U.S.; and

"Whereas I charge them, jointly and severally, with having conspired to have evidences of debt to the extent of $1 billion artificially created at the end of February, 1933, and early in March 1933, and with having made unlawful issues and advances of Fed currency on the security of said artificially created evidences of debt for a sinister purpose, and with having assisted in the execution of said sinister purpose; and

"Whereas I charge them, jointly and severally, with having brought about the repudiation of the currency obligations of the Fed Banks to the people of the U.S. and with having conspired to obtain a release for the Fed Board and the Fed Banks from their contractual liability to redeem all Fed currency in gold or lawful money at the Fed Bank and with having defrauded the holders of Fed currency, and with having conspired to have the debts and losses of the Fed Board and the Fed Banks unlawfully transferred to the Government and the people of the U.S., and

"Whereas I charge them, jointly and severally, with having unlawfully substituted Fed currency and other irredeemable paper currency for gold in the hands of the people after the decision to repudiate the Fed currency and the national currency was made known to them, and with thus having obtained money under false pretenses; and

"Whereas I charge them, jointly and severally, with having brought about a repudiation of the notes of the U.S. in order that the gold value of the said currency might be given to private interests, foreign governments, foreign central banks of issues, and the Bank of International Settlements, and the people of the U.S. to be left without gold or lawful money and with no currency other than a paper currency irredeemable in gold, and I charge them with having done this for the benefit of private interests, foreign governments, foreign central banks of issue, and the bank of International Settlements; and

"Whereas I charge them, jointly and severally, with conniving with the Edge Law banks, and other Edge Law institutions, accepting banks, and discount corporations, foreign central banks of issue, foreign commercial banks, foreign corporations, and foreign individuals with funds unlawfully taken from the U.S. Treasury; and I charge them with having unlawfully permitted and made possible 'new financing' for foreigners at the expense of the U.S. Treasury to the extent of billions of dollars and with having unlawfully permitted and made possible the bringing into the United States of immense quantities of foreign securities, created in foreign countries for export to the U.S. and with having unlawfully permitted the said foreign securities to be imported into the U.S. instead of gold, which was lawfully due to the U.S. on trade balances and otherwise, and with having lawfully permitted and facilitated the sale of the said foreign securities in the U.S., and

"Whereas I charge them, jointly and severally, with having unlawfully exported U.S. coins and currency for a sinister purpose, and with having deprived the people of the U.S. of their lawful medium of exchange, and I charge them with having arbitrarily and unlawfully reduced the amount of money and currency in circulation in the U.S. to the lowest rate per capita in the history of the Government, so that the great mass of the people have been left without a sufficient medium of exchange, and I charge them with concealment and evasion in refusing to make known the amount of U.S. money in coins and paper currency exported and the amount remaining in the U.S. as a result of which refusal the Congress of the U.S. is unable to ascertain where the U.S. coins and issues of currency are at the present time, and what amount of U.S. currency is now held abroad; and

"Whereas I charge them, jointly and severally, with having arbitrarily and unlawfully raised and lowered the rates of money and with having arbitrarily increased and diminished the volume of currency in circulation for the benefit of private interests at the expense of the Government and the people of the U.S. and with having unlawfully manipulated money rates, wages, salaries and property values both real and personal, in the U.S. by unlawful operations in the open discount market and by resale and repurchase agreements unsanctioned by law, and

"Whereas I charge them jointly and severally, with having brought about the decline in prices on the New York Stock Exchange and other exchanges in October, 1929, by unlawful manipulation of money rates and the volume of U.S. money and currency in circulation: by theft of funds from the U.S. Treasury by gambling in acceptances and U.S. Government securities; by service rendered to foreign and domestic speculators and politicians, and by unlawful sale of U.S. gold reserves abroad, and

"Whereas the unconstitutional inflation law imbedded in the so-called Farm Relief Act by which the Fed Banks are given permission to buy U.S. Government securities to the extent of $3 billion and to drew forth currency from the people's Treasury to the extent of $3 billion is likely to result in connivance on the part of said accused with others in the purchase by the Fed of the U.S. Government securities to the extent of $3 billion with U.S. Government's own credit unlawfully taken, it being obvious that the Fed do no not intend to pay anything of value to the U.S. Government for the said U.S. Government securities no provision for payment in gold or lawful money appearing in the so-called Farm Relief bill- and the U.S. Government will thus be placed in a position of conferring a gift of $3 billion in the U.S. Government securities on the Fed to enable them to pay more on their bad debts to foreign governments, foreign central banks of issue, private interests, and private and commercial banks, both foreign and domestic, and the Bank of International Settlements, and

"Whereas the U.S. Government will thus go into debt to the extent of $3 billion and will then have an additional claim of $3 billion in currency unlawfully created against it and whereas no private interest should be permitted to buy U.S. Government securities with the Government's own credit unlawfully taken and whereas currency should not be issued for the benefit of said private interest or any interests on U.S. Government securities so acquired, and whereas it has been publicly stated and not denied that the inflation amendment of the Farm Relief Act is the matter of benefit which was secured by Ramsey MacDonald, the Prime Minister of Great Britain, upon the occasion of his latest visit to the U.S. Treasury, and whereas there is grave danger that the accused will employ the provision creating U.S. Government securities to the extent of $3 billion and three millions in currency to be issuable thereupon for the benefit of themselves and their foreign principals, and that they will convert the currency so obtained to the uses of Great Britain by secret arrangements with the Bank of England of which they are the agents, and for which they maintain an account and perform services at the expense of the U.S. Treasury, and that they will likewise confer benefits upon the Bank of International Settlements for which they maintain an account and perform services at the expense of the U.S. Treasury; and

"Whereas I charge them, jointly and severally, with having concealed the insolvency of the Fed and with having failed to report the insolvency of the Fed to the Congress and with having conspired to have the said insolvent institutions continue in operation, and with having permitted the said insolvent institutions to receive U.S. Government funds and other deposits, and with having permitted them to exercise control over the gold reserves of the U.S. and with having permitted them to transfer upward of $100 billion of their debts and losses to the general public and the Government of the U.S., and with having permitted foreign debts of the Fed to be paid with the property, the savings, the wages, and the salaries of the people of the U.S. and with the farms and the homes of the American people, and whereas I charge them with forcing the bad debts of the Fed upon the general public covertly and dishonestly and with taking the general wealth and savings of the people of the U.S. under false pretenses, to pay the debts of the Fed to foreigners; and

"Whereas I charge them, jointly and severally, with violations of the Fed Act and other laws; with maladministration of the h evasions [sic] of the Fed Law and other laws; and with having unlawfully failed to report violations of law on the part of the Fed Banks which, if known, would have caused the Fed Banks to lose their charters, and

"Whereas I charge them, jointly and severally, with failure to protect and maintain the gold reserves and the gold stock and gold coinage of the U.S. and with having sold the gold reserves of the U.S to foreign Governments, foreign central banks of issue, foreign commercial and private banks, and other foreign institutions and individuals at a profit to themselves, and I charge them with having sold gold reserves of the U.S. so that between 1924 and 1928 the U.S. gained no gold on net account but suffered a decline in its percentage of central gold reserves from the 45.9 percent in 1924 to 37.5 percent in 1928 notwithstanding the fact that the U.S. had a favorable balance of trade throughout that period, and

"Whereas I charge them, jointly and severally, with having conspired to concentrate U.S. Government securities and thus the national debt of the U.S. in the hands of foreigners and international money lenders and with having conspired to transfer to foreigners and international money lenders title to and control of the financial resources of the U.S.; and

"Whereas I charge them, jointly and severally, with having fictitiously paid installments on the national debt with Government credit unlawfully taken; and

"Whereas I charge them, jointly and severally, with the loss of the U.S. Government funds entrusted to their care; and

"Whereas I charge them, jointly and severally, with having destroyed independent banks in the U.S. and with having thereby caused losses amounting to billions of dollars to the said banks, and to the general public of the U.S., and

"Whereas I charge them, jointly and severally, with the failure to furnish true reports of the business operations and the true conditions of the Fed to the Congress and the people, and having furnished false and misleading reports to the congress of the U.S., and

"Whereas I charge them, jointly and severally, with having published false and misleading propaganda intended to deceive the American people and to cause the U.S. to lose its independence; and

"Whereas I charge them, jointly and severally, with unlawfully allowing Great Britain to share in the profits of the Fed at the expense of the Government and the people of the U.S.; and

"Whereas I charge them, jointly and severally, with having entered into secret agreements and illegal transactions with Montague Norman, Governor of the Bank of England; and

"Whereas I charge them, jointly and severally, with swindling the U.S. Treasury and the people of the U.S. in pretending to have received payment from Great Britain of the amount due on the British war debt to the U.S. in December, 1932; and

"Whereas I charge them, jointly and severally, with having conspired with their foreign principals and others to defraud the U.S. Government and to prevent the people of the U.S. from receiving payment of the war debts due to the U.S. from foreign nations; and

"Whereas I charge them, jointly and severally, with having robbed the U.S Government and the people of the U.S. by their theft and sale of the gold reserves of the U.S. and other unlawful transactions created a deficit in the U.S. Treasury, which has necessitated to a large extent the destruction of our national defense and the reduction of the U.S. Army and the U.S. Navy and other branches of the national defense; and

"Whereas I charge them, jointly and severally, of having reduced the U.S. from a first class power to one that is dependent, and with having reduced the U.S. from a rich and powerful nation to one that is internationally poor; and

"Whereas I charge them, jointly and severally, with the crime of having treasonably conspired and acted against the peace and security of the U.S. and with having treasonably conspired to destroy constitutional Government in the U.S.

"Resolve, That the Committee on the Judiciary is authorized and directed as a whole or by subcommittee, to investigate the official conduct of the Federal Reserve agents to determine whether, in the opinion of the said committee, they have been guilty of any high crime or misdemeanor which in the contemplation the Constitution requires the interposition of the Constitutional powers of the House. Such Committee shall report its finding to the House, together with such resolution or resolutions of impeachment or other recommendations as it deems proper.

"For the purpose of this resolution the Committee is authorized to sit and act during the present Congress at such times and places in the District of Columbia or elsewhere, whether or not the House is sitting, has recessed or has adjourned, to hold such clerical, stenographic, and other assistants, to require of such witnesses and the production of such books, papers, and documents, to take such testimony, to have such printing and binding done, and to make such expenditures as it deems necessary."

After some discussion and upon the motion of Mr. Byrns, the resolution and charge was referred to the Committee on the Judiciary.

1. The gold and silver bullion brokers are still headquartered in London.
2. Addressing this issue is one of the main focuses of this blog. We note that McFadden almost had it right, the key factor never included in any of their systems of measuring commercial value was TIME. Failure to consider at what TME a purchasing power was of reference, whether gold or silver formed part of it or not, causes all means of exchange that we know of and use today to be literally unstable and therefore invalid as money long term.