CONGRESSMAN LOUIS T. MC FADDEN'S CHARGES AGAINST THE FEDERAL RESERVE

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

“Whereas, I charge. .
.Eugene Meyer, Roy A. Young, Edmund Platt, 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 $80,000,000,000 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 $80,000,000,000 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 $1,000,000,000 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 that 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 embedded 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 $3,000,000,000 and to drew forth currency from the people’s
Treasury to the extent of $3,000,000,000 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 $3,000,000,000 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 $3,000,000,000 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 $3,000,000,000 and will then have an
additional claim of $3,000,000,000 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 $3,000,000,000 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 $100,000,000,000 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 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 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 ware 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 treasonable conspired and acted
against the peace and security of the U.S. and with having treasonable
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 Fed 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.