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Against
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Knowledge is Freedom

A COUNTRY DEFEATED
IN VICTORY
PART II

I have
found more unrefutable information that further confirms the
information in A COUNTRY DEFEATED IN VICTORY (part
one).

In A
COUNTRY DEFEATED IN VICTORY (part one), I left out something
important and was not aware of it. I made the statement that a few
power-hungry Jews were the controlling influence behind the banks, I
knew what I meant when I made this statement, but I did not qualify
this statement. Because this is an important part to A Country
Defeated In Victory (part one) I am going to take this opportunity
to further clarify what I meant.

All
this is basic, but most people don't make the distinction that the
Hebrew people are called Jews. Just like you might call an Irishman
catholic, the word Jew describes a religion just as does the word
catholic. Jesus made a distinction between Hebrews like Himself that
were also known as Jews and those that called themselves Jews and
were not. Jesus called these Jews Satan's seed. The Jews Jesus was
pointing out were Satan's spiritual children. These are a group of
people that wish to carry out Satan's will. They are responsible for
killing the prophets of God and Jesus Christ. The Jews I referred to
in A COUNTRY DEFEATED IN VICTORY (part one) are not servant's of God
Almighty. How do you tell the difference between these men who claim
to be Jews but are really Satan's seed? There's only two ways that I
see in the Word of God, one is by being able to see these persons
true spirit by the gift of spiritual discernment and the other is,
you can always tell someone's true spiritual nature by their fruits
(actions).

I hope
this explanation will clear up any mis-interpretation of what I
said, when referring to some Jews that are not servants of God
Almighty, and call themselves Jews. This is rather confusing because
both groups go by the same name and claim the same roots, but Jesus
made this distinction, so must I. One of the reasons these men hated
Jesus was because He made this distinction and exposed
them.

The
information that follows will trouble you greatly, because it will
confirm to you that not only is the information true in this paper
but also in "A COUNTRY DEFEATED IN VICTORY" (part one). You will be
forced to accept the fact that the United States government and the
media have kept this information from you. The information contained
in this paper was taken out of actual government documents that
cannot be rebutted. I'm going to lay this information out in such a
way, as to try and make it easier to understand, and hopefully cause
you to accept the truth. This information is rather laborious to
read, but if you seek the truth you will take the time to study this
information. So I offer this suggestion. If you find your mind
starting to wander, stop reading until you are rested.

The
following was taken from a book entitled `Vindication', on pages
168-179, which was written by Judge Rutherford and appeared in a St.
Louis Mo. in the 1890's:

Rothschild Brothers,
Bankers,
London, England
June 25th, 1863

Messrs. Ikleheimer,
Morton, and Vandergould,
No. 3 Wall St., New York,
U.S.A.

Dear Sir:

A Mr.
John Sherman has written us from a town in Ohio, U.S.A., as to the
profits that may be made in the National Banking business under a
recent act of your Congress, a copy of which act accompanied his
letter. Apparently this act has been drawn upon the plan formulated
here last summer by the British  Bankers Association and by the
Association RECOMMENDED TO OUR AMERICAN FRIENDS as one that if
enacted into law, would prove highly profitable to the banking
fraternity throughout the world.

Mr.
Sherman declares that there has never been such an opportunity for
capitalists to accumulate money, as that presented by this act, and
that the old plan of State Banks is so unpopular, that the new
scheme will, by contrast, be most favorably regarded,
notwithstanding the fact that it gives the National Banks an almost
absolute control of the National finance. `THE FEW WHO CAN
UNDERSTAND THE SYSTEM,' HE SAYS, `WILL EITHER BE SO INTERESTED IN
ITS PROFITS, OR SO DEPENDENT OF ITS FAVORS THAT THERE WILL BE NO
OPPOSITION FROM THAT CLASS, WHILE ON THE OTHER HAND, THE GREAT BODY
OF PEOPLE, MENTALLY INCAPABLE OF COMPREHENDING THE TREMENDOUS
ADVANTAGES THAT CAPITAL DERIVES FROM THE SYSTEM, WILL BEAR ITS
BURDENS WITHOUT COMPLAINT AND PERHAPS WITHOUT EVEN SUSPECTING THAT
THE SYSTEM IS INIMICAL TO THEIR INTERESTS.'

Please
advise fully as to this matter and also state whether or not you
will be of assistance to us, if we conclude to establish a National
Bank in the City of New York. If you are acquainted with Mr. Sherman
we will be glad to know something of him. If we avail ourselves of
the information he furnished, we will, of course, make DUE
COMPENSATION." (emphasis mine)

"Awaiting your reply, we
are
"Your
respectful servants,

"Rothschild
Brothers."

[Mr. Sherman was a member
of Congress from 1860-1890, he was responsible for almost every
banking legislation that was passed during that time.]

"New York City, July 6,
1863.
"Messrs. Rothschild Brothers
London, England

"Dear Sirs:

We beg
to acknowledge the receipt of your letter of June 25th, in which you
refer to a communication received from the Hon. John Sherman of
Ohio, with reference to the advantages and profits of an American
investment under the provisions of our National Banking
Act.

"The
fact that Mr. Sherman speaks well of such an investment or of any
similar one, is certainly not without weight, for that gentleman
possesses in a marked degree, the distinguishing characteristics of
the successful financier. His temperament is such that whatever his
feelings may be they never cause him to lose sight of the MAIN
CHANCE. He is young, shrewd, and ambitious. He has fixed his eyes
upon the Presidency of the United States and is already a member of
Congress. He rightfully thinks he has everything to gain both
politically and financially by being friendly with men and
institutions having large
financial resources, and which at
times, are not too particular in their methods, either of obtaining
government aid, or of protecting themselves against unfriendly
legislation. We trust him here implicitly. His intellect and
ambition combine to make him exceedingly valuable to us, indeed, we
predict that if his life is spared, he will prove to be the best
fiend the moneyed interests of the world have ever had in
America.

"As to
the organization of a National Bank here, and the nature and profits
of such an investment, we beg leave to refer to our printed circular
enclosed herein. Inquiries by European Capitalists, concerning this
matter, have been so numerous, that for convenience, we have had our
views with regard to it put into printed form.

"Should
you determine to organize a bank in the City, we shall be glad to
aid you. We can easily find financial friends to make satisfactory
directory, and to fill official positions not taken up by the
personal representatives you will send over.

"Your most obedient
servants,

"IKLEHEIMER, MORTON, AND
VANDERGOULD."

"BANKERS PRINTED
CIRCULAR"
"IKLEHEIMER, MORTON, AND VANDERGOULD
"Private Bankers, Brokers,
Financial Agents, etc.
"3 Wall Street, New York
City

"We
have had so many inquiries of late as to the method of organizing
national banks under the recent act of Congress, and as to the
profits that may reasonably be expected from such an investment,
that we have thought it best to issue this brief circular as an
answer to all questions of our friends and clients:

"1-Any number of persons,
not less than five, may organize a national banking
corporation.
"2--Except in cities having 6,000 inhabitants or less, a
national bank can not have less than $1,000,000
capital.
"3--They are private corporations organized for private
gain, and select their own officers and employees.

"4--They are not subject
to the control of the state laws, except as congress may from time
to time provide.
"5--They can receive deposits and loan the same for their
own benefit.
"6--They can buy and sell bonds, and discount paper and do
a  general
banking business.
"7--To start a national bank on the scale of $1,000,000 will
require the purchase of that amount (par value) of U.S. Government
bonds.
"8--U.S. Government bonds can now be purchased at 50 per
cent discount, so that a bank of $1,000,000 capital can be started
at this time with only $500,000.
"9--These bonds must be deposited
with the U.S. Treasury at Washington as security for the national
Bank currency, that on the making of the deposit will be furnished
by the government to the bank.
"10-The U.S. Government will pay 6%
interest on the bonds, in gold, the interest being paid
semi-annually. It will be seen that at the present price bonds, the
interest paid by the government itself, will of itself amount 12 per
cent in gold, on all the money invested.
"11-The U.S. Government, under the
provisions of the national banking act, on having the bonds
aforesaid deposited with its treasurer, will on the strength of such
security, furnish national currency to the bank depositing the
bonds, at an annual interest of only ONE per cent per annum. Thus
the deposit of $1,000,000 will secure the issue of $900,000 in
currency.
"12-This currency is printed by the U.S. Government in a
form so like greenback money, that many people do not detect the
difference, although the currency is but a promise of the bank to
pay-that is, it is the bank's demand note, and must be signed by the
Bank's president before it can be used.
"13-The demand for money is so
great that this currency can be readily loaned to the people across
the counter of the bank at a discount at the rate of 10 per cent at
30 days' to 60 days' time, making it about 12 per cent interest on
the currency.
"14-The interest on the bonds, plus the interest on the
currency which the bonds secure, plus incidentals of the business
ought to make the gross earnings of the bank amount to from 28 to 33
1/3 per cent. The amount of the dividends that may be declared will
depend largely upon the salaries of the officers that the banks vote
premises occupied by the bank as a place of business. In case it is
thought best that the showing of profits should not appear too
large, the now common plan of having the directors buy the bank
building and then raising the rent and salary of the president and
cashier may be adopted.
"15-National banks are privileged
to either increase or contract their circulation at will, and, of
course, can grant or withhold loans as they may see fit. As the
banks have a national organization, and can easily act together in
withholding loans or extending them, it follows that they can by
united action in refusing to make loans, cause a stringency in the
money market and in a single week or even in a single day cause a
decline in all the products of the country. The tremendous
possibilities of speculation involved in this control of the money
of a country like the United States will be at once understood by
all bankers.
"16-National banks pay no taxes on their bonds, nor on their
capital, nor on their deposits. This exemption from taxation is
based on the theory that the capital of these banks is invested in
U.S. securities, and is a remarkable permission of the
law.
"17-The secretary may deposit the public money with any bank
at will, and to any amount. In the suit of Mr. Branch against the
United States, reported in the 12th volume of the U.S. Court of
Claims, Reports on Page 287, it was decided that such `Government
deposits are rightfully mingled with other funds of the bank, and
are loaned or otherwise employed in the ordinary business of the
bank, and the bank becomes the debtor of the United States as it
does to other depositors.' "Requesting that you will regard this as
strictly confidential and soliciting any favors in our
line.

"Most respectfully
yours,

"IKLESHIEMER, MORTON,
& VANDERGOULD."

The
following is a speech given by Senator Daniel of Virginia, May 22,
1890, in Congress, and to be found in the Congressional Record, page
5128, of that date. He said:

"I take
from the Bankers Magazine of August, 1873, a little extract. It
says, `In 1872 silver being demonetized in Germany, England, and
Holland, a capital of 100,000 pounds ($500,000.00) was raised Ernest
Seyd was sent to this country with this fund as agent for foreign
bond holders to effect the same object (demonetization of
silver)'."

To
further prove Senator Daniel's statement is correct, here is parts
of a sworn affidavit made by Mr. Frederick A. Luckenbach and
acknowledged before Mr. James A. Miller, Clerk of the Supreme Court
of the State of Colorado. The affidavit follows:

"`State of
Colorado
"`County of Arapahoe
"`* * * In 1865, I visited London,
England, for the purpose of placing there Pennsylvania oil
properties, in which I was interested. I took with me letters of
introduction to many gentlemen in London, among them one to Mr.
Ernest Seyd from Robert M. Foust, ex-treasurer of Philadelphia. I
became well acquainted with Mr. Ernest Seyd, and with his brother,
Richard Seyd, who, I understand is still living. I visited London
thereafter, every year, and at each visit renewed my acquaintance
with Mr. Seyd, and upon each occasion became his guest at one or
more times--joining his family at dinner or other
meals.

"`In
February, 1874, while on one of these visits, and while his guest
for dinner, I, among other things, alluded to rumors of
parliamentary corruption, and expressed astonishment that such
corruption existed. In reply to this, he told me that he could
relate facts about corruption of the American Congress that would
place it far ahead of the English Parliament in that line. So far,
the conversation was at the dinner table between us. His brother,
Richard, and others were there also, but this was table talk between
Mr. Ernest Seyd and myself. After dinner ended, he invited me into
another room, where he resumed the conversation about legislative
corruption. He said, "If you will pledge me your honor as a
gentleman not to divulge what I am about to tell you while I live, I
will convince you that what I said about American Congress is true."
I gave him the promise and then he continued: "I went to America in
the winter of 1872-3, authorized to secure, if I could, the passage
of a bill demonetizing the value of silver. I represented--the
GOVERNORS OF THE BANK OF ENGLAND--to have it done. I took with me
100,000 pounds sterling (500,000.00 United States money) with
instructions that if it was not sufficient to accomplish the object
to draw for another 100,000 pounds or as much more as was
necessary." He told me that the German bankers were also interested
in having it accomplished. He said" "I saw the committees of the
House and Senate and paid the money and stayed in America until I
knew the measure was safe." * * *

"`(Signed) James A.
Miller
"`(Seal) Clerk Supreme Court,
"`State of
Colorado.'"

"The
Congressional Record, of the 44th Congress, first session, volume 4,
part 6, Appendix, page 197, Joseph Cannon said:

"This
legislation was had in the forty-second Congress, February 12, 1873,
by a bill to regulate the mints of the United States, and
practically abolish silver as money by failing to provide for the
coinage of the silver dollar. It was not discussed, as shown by the
Record, and neither members of Congress nor the people understood
the scope of the legislation."

"The
Congressional Record, of the 44th Congress, first session, volume 4,
part 6, Appendix, page 193, Mr Holman of Indiana,
said:

"I have
before me the record of the proceedings of this House on the passage
through this House was a `colossal swindle.' I assert that the
measure never had the sanction of this House, and does not possess
the moral force of law."

"The
Congressional Record, July 13, 1876, volume 4, part 5, page 4560,
Mr. Burchard of Illinois said:

"The
Coinage Act of 1873 unaccompanied by any written report upon the
subject from any committee, and unknown to the members of Congress
who, without opposition allowed it to pass under the belief, if not
assurance, that it made no alteration in the value of the current
coins, or changed the unit of value from silver to
gold."

Senator Voorhees of
Indiana, Congressional Record, January 15, 1876, page 332,
declared:
"The silver dollar is peculiarly the
laboring man's dollar as far as he may desire specie * * *
throughout all financial panics that have assailed this country, no
man has been bold enough to raise his hand to strike it down; no man
has ever dared to whisper of a contemplated assault upon it and when
dared to whisper of a contemplated assault upon it an when the 12th
day of February, 1873, approached the day of doom to the American
dollar of our fathers, how silent was the work of the enemy. * * *
Its enactment there was as completely unknown to the people and
indeed to four-fifths of Congress itself as the presence of a
burglar in a house at midnight to its sleeping
inmates."

The Congressional Record,
volume 7, part 1, second session, 45 Congress, page 584, reveals
that Mr. Bright of Tennessee said:
"It (the bill
demonetizing silver) passed by fraud in the House, never having been
printed in advance, being a substitute for the printed bill; never
having been read at the Clerk's desk, the reading having been
dispensed with by an impression that the bill made no material
alteration in the coinage laws; it was passed without discussion,
being cut off by operation of the previous question. It was passed,
to my certain information under such circumstances that the fraud
escaped the attention of the most watchful as well as the ablest
statesmen in Congress at the time. * * * Aye, sir, it was a fraud
that smells to heaven."

The
following is an extract from Congressman Charles A. Lindbergh Sr's.
book `Banking and Currency and The Money Trust', the father of
"Lindy" Lindbergh. He says:

"When
the Aldrich-Vreeland Emergency Bill was sprung in the House in its
finished draft and ready for action to be taken, the debate was
limited to three hours and Banker Vreeland placed in charge. It took
so long for copies of the Bill to be gotten that many members were
unable to secure a copy until a few minutes of the time to vote. No
member who wished to present the people's side of the case was given
sufficient time to enable him to properly analyze the Bill, I asked
for time and was told that if I would vote for the Bill, it would be
given me, but not otherwise. Others were treated in the same
way.

"Accordingly on June 20, 1908, the Money Trust won the first fight
and the Aldrich-Vreeland Emergency Currency Law was placed on the
statute books. Thus was the first precedent established for the
people's guarantee of the rich man's watered securities, by making
them a basis on which to issue currency. It was the entering wedge.
We had already guaranteed the rich man's money, now by this Act, the
way was opened, and it was intended that we should guarantee their
watered stocks and bonds. Of course, they were too keen to attempt
to complete it in a single act, such an enormous steal as it would
have been if they had included all they hoped ultimately to secure.
They knew that  they would be caught at it if they did, and so it was
planned that the whole thing should be done by a succession of Acts.
The first three have taken place.

"Act
No. 1 was the manufacture, between 1896-1907, through stock
gambling, speculation, and other devious methods and devices of tens
of billions of watered stocks, bonds, and securities.

"Act
No. 2 was the panic of 1907, by which method those not favorable to
the money trust could be squeezed out of business and the people
frightened into demanding changes in the banking and currency laws
which the Money Trust would frame.

"The
Act No. 3 was the passage of the Aldrich-Vreeland Emergency Currency
Bill by which the money trust's interests would have the privilege
of securing from the Government currency on their watered stocks and
securities. But while the Act contained no authority to change the
form of the Bank notes, the U. S. Treasurer (in some way that I have
been unable to find reason for) implied authority and changed the
form of bank notes which were issued for the banks on Government
bonds. These notes had hitherto printed on them, `This note is
secured by bonds of the United States.' He changed it to read as
follows: `This note is secured by bonds of the United States and
other securities.' `Or other securities' is the addition that was
secured by special interests.

"The
main thing, however, that the Money Trust accomplished as a result
of the passing of this Act was the appointment of the National
Monetary Commission, the membership of which was chiefly made up of
bankers, agents, and attorneys, who have generally been educated in
favor of, and to have a community interest with Money Trust. The
National Monetary Commission was placed in charge of the same
Senator Nelson W. Aldrich and Congressman Edward B. Vreeland, who
respectively had charge in the Senate and House during the Act
creating it.

"The
Act authorized this commission to spend money without stint or
account. It spent over $300,000.00 in order to learn how to form a
plan by which to create a greater money trust, and it afterwards
recommended to Congress to give this proposed trust a fifty year
charter by means of which it could rob all humanity. A bill for this
purpose was introduced by members of the Monetary Commission and its
passage planed to be the forth and final act of the campaign to
completely enslave the people.

"The
fourth act, however, is in incubation only, and it is hoped by that
time, we realize the danger that all of us are now in, for it is the
final proposed legislation which, if it succeeds, will have us in
the complete control of the moneyed interests. History records
nothing so dramatic in design, nor so skillfully manipulated, as
this attempt to create the National Reserve Association (`Federal
Reserve System' *emphasis mine) otherwise called the Aldrich
plan-and no fact or occurrence contemplated for the gaining of
selfish ends is recorded in the world's records which equal the
beguiling methods of this  colossal undertaking. Men, women,
and children have been equally unconscious of how stealthily this
greatest of all giant octopuses-a greater Money Trust is reaching
out its tentacles in its efforts to bind all humanity in perpetual
servitude to the greedy will of this monster.

"I was
in Congress when the panic of 1907 occurred, but I had previously
familiarized myself with many of the ways of high financiers. As a
result of what I discovered in that study, I set about to expose the
Money Trust, the world's greatest financial giant. I knew that I
could not succeed unless I could bring the public sentiment to my
aid. I had to secure this or fail. The money trust had laid its
plans long before and was already executing them. It was then, and
still is TRAINING THE PEOPLE THEMSELVES, TO DEMAND THE ENACTMENT OF
THE ALDRICH PLAN OR A BILL SIMILAR IN EFFECT. Hundreds of thousands
of dollars had already been spent and millions more reserved to be
used in the attempt to bring about a condition of public mind that
would cause demand of the passage of the bill. If no other methods
succeeded, it was planned to bring on a violent panic and
rush  the
bill through during the distress which should result from the panic.
It was figured that the people would demand new banking and currency
laws; that it would be impossible for them to get a definitely
practical plan before Congress when they were in an excited state
and that as a result, the Aldrich Plan would slip safely through. It
was planned to pass that bill in the fall of 1911 or
1912."

The
United States government turned the control over its banking and
monetary policy making over to the "Federal Reserve Board" December
23, 1913. Things seemed to be going well, the country was in a
financial and industrial boom, remember the phrase, "the roaring
twenties". The 1920's however proved to be the death of this
country. There were many improprieties caused by the banking cartel.
You will find proof of that in this paper. The crash of the stock
market took place in 1929 and then in 1933 the confiscation of the
rest of this country's gold and all property in America took
place.

The
following Resolution was written by Eugene Meyers and the New York
Bankers it was given to President Hoover at 10.00 p.m. March 3,
1933.

Resolution Adopted by the
Federal Reserve Board of New York

WHEREAS, In the opinion of the Board of Directors of the Federal
Reserve Bank of New York, the continued and increasing withdrawal of
currency and gold from the banks of the country has now created a
national emergency, and
WHEREAS, It is
understood the adequate remedial measures cannot be enacted before
tomorrow morning,
NOW, THEREFORE, BE IT RESOLVED, That in
this emergency the Federal Reserve Board is hereby requested to urge
the President of the United States to declare a bank holiday
Saturday, March 4, and Monday, March 6, in order to afford
opportunity to governmental authorities and banks themselves to take
such measures as may be necessary to protect the interests of the
people and promptly to provide adequate banking and credit
facilities for all parts of the country.

Proposed Executive
Order
EXECUTIVE ORDER

WHEREAS
the nation's banking institution's are being subjected to heavy
withdrawals of currency for hoarding; and
WHEREAS there is
increasing speculative activity in foreign exchanges;
and
WHEREAS these conditions have created a
national emergency in which it is in the best interest of all bank
depositors that a period of respite be provided with a view to
preventing further hoarding of coin, bullion or currency or
speculation in foreign exchange, and permitting the application of
appropriate measures for dealing with the emergency in order to
protect the interests of all the people; and
WHEREAS it is
provided in Section 5 (b) of the Act of October 6, 1917, as amended,
that "The President may investigate, regulate, or prohibit, under
such rules and regulations as he may prescribe, by means of licenses
or otherwise, any transactions in foreign exchange and the export,
hoarding, melting, or earmarking of gold or silver coin or bullion
or currency * * *"; and
WHEREAS it is
provided in Section 16 of the said Act that "Whoever shall willfully
violate any of the provisions of this Act or of any license, rule,
or regulation issued thereunder, and whoever shall willfully
violate, neglect, or refuse to comply with any order of the
President issued in compliance with the provisions of this Act
shall, upon conviction, be fined not more than $10,000, or, if a
natural person, imprisoned for not more than ten years, or both * *
*";
NOW, THEREFORE, pursuant to the authority
granted by said  Act, I hereby order, direct and declare that:

1.
From Saturday, the fourth day of March, to Tuesday, the Seventh day
of March, Nineteen Hundred and Thirty Three, both dates inclusive,
there shall be maintained and observed throughout the United States
of America a bank holiday for all of the purposes hereinafter set
forth;
2. During said holiday, no banking
institution as hereinafter defined shall pay out, export, earmark,
or permit the withdrawal or transfer in any manner or by any device
whatsoever of any gold or silver coin or bullion or currency or take
any other action which might facilitate the hoarding thereof; nor
shall any such banking institution pay out deposits, make loans or
discounts, deal in foreign exchange, or transact any other banking
business whatsoever.
3. Upon the
expiration of said holiday and until otherwise ordered by the
President of the United States, such banking institutions may pay
out, export, earmark or permit the withdrawal or transfer of gold or
silver coin or bullion or currency, or deal in foreign exchange to
extent as may be permitted by license or otherwise under regulations
issued by the Secretary of the Treasury with the approval of the
President.
4. The Secretary of the Treasury, with
the approval of the President, is authorized and empowered to
prescribe such regulations as he may find necessary to carry out the
purposes of the order.
5. The term
"banking institution" as herein used shall include all Federal
reserve banks, national banking associations, banks trust companies,
savings banks, building and loan associations, credit unions, or
other corporations, partnerships, associations or persons engaged in
the business of receiving deposits, making loans, discounting
business paper, or transacting any other form of banking
business.

The White
House
March, 1933.

The following is a letter
sent by President Hoover to Eugene Meyer:

My dear Governor
Meyer:

I
received at half past one this morning your letter dated March 3rd.
I must assume that this letter was written on the basis of
information received by you prior to 11:30 o'clock last night for
the reason that before your letter was sent you had certain
information as follows:
a. At 11 o'clock
last night the President elect had informed me he did not wish such
a proclamation issued.
b. The Attorney
General had renewed the same opinion which he had already given to
the Board that the authorities on which you were relying were
inadequate unless supported by the incoming
Administration.
c. That groups of representative bankers
in both Chicago and New York, embracing members of the Board of
Directors of the Federal Reserve Banks in those cities, were then in
conference with the governors of the states of Illinois and New
York, and that the governors of these two states were prepared to
act if these representative groups so recommended. It appears that
the governors did take action under their authorities, declaring a
temporary holiday in these two critical states, and thus
accomplishing the major purposes which the Board apparently had in
mind.
In view of the above I am at a loss to
understand why such a communication should have been sent to me in
the last few hours of this Administration, which I believe the Board
must now admit was neither justified nor necessary.

Yours
faithfully,

Herbert
Hoover

[Hon. Eugene Meyer,
Federal Reserve Board, Washington, D.C.]

In the above
letter President Hoover said that President elect Roosevelt said
(11:00 pm March 3 1933) that he didn't see the necessity or urgency
in issuing a proclamation concerning the supposed national
emergency. What happened for President Roosevelt to make a radical
360 turn in his convictions just a few hours later. The following is
an excerpt from his Inaugural Address:

"I am
prepared under my constitutional duty to recommend the measures that
a stricken Nation in the midst of a stricken world may require.
These measures, or such other measures as the Congress may build out
of its experience and wisdom, I shall seek, within my constitutional
authority, to bring to speedy adoption.
But in the event
that the Congress shall fail to take one of these two courses, and
in the event that the national emergency is still critical, I shall
not evade the clear course of duty that will then confront me. I
shall ask the Congress for the one remaining instrument to meet the
crisis-broad Executive power to wage a war against the emergency, as
great as the power that would be given to me if we were in fact
invaded by a foreign foe."
The day after
President Roosevelt's inauguration he issued proclamations in behalf
of the Bankers. These acts were treason against the American people.
President Roosevelt used a bold faced lie as to the reason and
necessity for his actions. He said that this had to be done because
of the hoarding of gold and silver being done by the American
people. Most of the gold was stolen and removed from this country by
the big New York Bankers. The Congressional record makes this fact
clear.

PROCLAMATIONS
[CONVENING THE CONGRESS IN EXTRA
SESSION]
BY
THE PRESIDENT OF THE UNITED STATES OF AMERICA

A
PROCLAMATION

WHEREAS
public interests require that the Congress of the United States
should be convened in extra session at twelve o'clock, noon, on the
Ninth day of March, 1933, to receive such communication as may be
made by the Executive;
NOW, Therefore,
I, Franklin D. Roosevelt, President of the United States of America,
do hereby proclaim and declare that an extraordinary occasion
requires the Congress of the United States to convene in extra
session at the Capitol in the City of Washington on the Ninth day of
March, 1933, at twelve o'clock, noon, of which all persons who shall
at that time be entitled to act as members thereof are hereby
required to take notice.
IN WITNESS
WHEREOF, I hereunto set my hand and caused to be affixed the great
seal of the United States.
DONE at the City
of Washington this Fifth day of March, in the year of our Lord One
Thousand Nine Hundred and Thirty-three, and [seal] of the
Independence of the United States the One Hundred and
Fifty-seventh.

FRANKLIN D.
ROOSEVELT

By the
President;
Cordell Hull
Secretary of State.

[No.2038]

This is
a letter from President Roosevelt that was sent to the Congress
describing the National Emergency. The first paragraph tells
Congress that we are bankrupt. He doesn't use the word bankrupt, but
this is obvious by the last sentence and further documentation in
this paper.

A message from the
President

On
March 3 banking operations in the United States ceased. To review at
this time the causes of this failure of our banking system is
unnecessary. Suffice it to say that the Government has been
compelled to step in for the protection of depositors and the
business of the Nation.
Our first task
is to reopen all sound banks. This is an essential preliminary to
subsequent legislation directed against speculation with the funds
of depositors and other violations of positions of
trust.
In order that the first objective--the
opening of banks for the resumption of business--may be
accomplished, I ask of the Congress the immediate enactment of
legislation giving to the executive branch of the Government control
over banks for the protection of depositors; authority forthwith to
open such banks as have already been ascertained to be in sound
condition, and other such banks, as rapidly as possible; and
authority to reorganize and reopen such banks as may be found to
require reorganization to put them on a sound basis. [*note-here he
asks for special power for the executive branch. Who's he talking
about? He's talking about the office of the President and the
Treasury. Why? Because in bankruptcy, protection is provided for the
debtors, you'll see later that you are the debtor.]

I ask
amendments to the Federal Reserve Act to provide for such additional
currency, adequately secured, as it may become necessary to issue to
meet all demands for currency and at the same time to achieve this
end without increasing the unsecured indebtedness of the Government
of the United States.
I cannot too
strongly urge upon the Congress the clear necessity for immediate
action. A continuation of the strangulation of banking facilities is
unthinkable. The passage of the proposed legislation will end this
condition and, I trust, within a short space of time will result in
a resumption of business activities.
In addition, it
is my belief that this legislation will not only lift immediately
all unwarranted doubts and suspicions in regard to banks which are
100 percent sound but will also mark the beginning of a new
relationship between the banks and the people of the
country.
The Members of the new Congress will
realize, I am confident, the grave responsibility which lies upon me
and upon them.
In the short space of 5 days it is
impossible for us to formulate completed measures to prevent the
recurrence of the evils of the past. This does not and should not,
however, justify any delay in accomplishing this first
step.
At an early moment I shall request of the
Congress two other measures which I regard as of immediate urgency.
With action taken thereon we can proceed to the consideration of a
rounded program of national restoration.

Franklin D.
Roosevelt.

The White House, March 9,
1933

[BANK HOLIDAY, MARCH 6-9,
1933, INCLUSIVE]
BY THE PRESIDENT OF THE UNITED STATES OF
AMERICA
A
PROCLAMATION

WHEREAS
there have been heavy and unwarranted withdrawals of gold and
currency from our banking institutions for the purpose of hoarding;
and
WHEREAS continuous and increasingly
extensive speculative activity abroad in foreign exchange has
resulted in severe drains on the Nation's stocks of gold;
and
WHEREAS these conditions have created a
national emergency; and

WHEREAS
it is in the best interests of all bank depositors that a period of
respite be provided with a view to preventing further hoarding of
coin, bullion or currency or speculation in foreign exchange and
permitting the application of appropriate measures to protect the
interests of our people; and
WHEREAS it is
provided in Section 5 (b) of the Act of October 6, 1917, (40 stat.
L. 411) as amended, "That the President may investigate, regulate,
or prohibit, under such rules and regulations as he may prescribe,
by means of licenses or otherwise, any transactions in foreign
exchange and the export, hoarding, melting, or earmarking of gold or
silver coin or bullion or currency * * * "; and

WHEREAS it is provided in Section 16 of the said Act "that whoever
shall willfully violate any of the provisions of this Act or of any
license, rule, or regulation issued thereunder, and whoever shall
willfully violate, neglect, or refuse to comply with any order of
the President issued in compliance with the provisions of this Act,
shall, upon conviction, be fined not more than $10,000, or, if a
natural person, imprisoned for not more than ten years, or both; * *
* "
NOW THEREFORE, I, Franklin D. Roosevelt,
President of the United States of America, in view of such national
emergency and by virtue of the authority vested in me by said Act
and in order to prevent the export, hoarding, or earmarking of gold
or silver coin or bullion or currency, do hereby proclaim, order,
direct and declare that from Monday, the sixth day of March, to
Thursday, the ninth day of March, Nineteen Hundred and Thirty Three,
both dates inclusive, there shall be maintained and observed by all
banking institutions and all branches thereof located in the United
States of America, including the territories and insular
possessions, a bank holiday, and that during said period all banking
transactions shall be suspended. During such holiday, excepting as
hereinafter provided, no such banking institution or branch shall
pay out, export, earmark, or permit the withdrawal or transfer in
any manner or by any device whatsoever, of any gold or silver coin
or bullion or currency or take any other action which might
facilitate the hoarding thereof; nor shall any such banking
institution or branch pay out deposits, make loans or discounts,
deal in foreign exchange, transfer credits from the United States to
any place abroad, or transact any other banking business
whatsoever.
During such holiday, the Secretary of the
Treasury, with the approval of the President and under such
regulations as he may prescribe, is authorized and empowered (a) to
permit any or all of such banking institutions to perform any or all
of the usual banking functions, (b) to direct, require or permit the
issuance of clearing house certificates or other evidences of claims
against assets of banking institutions, and (c) to authorize and
direct the creation in such banking institutions of special trust
accounts for the receipt of new deposits which shall be subject to
withdrawal on demand without any restriction or limitation and shall
be kept separately in cash or on deposit in Federal Reserve Banks or
invested in obligations of the United States.

As
used in this order the term "banking institutions" shall include all
Federal Reserve banks, national banking associations, banks, trust
companies, savings banks, building and loan associations, credit
unions, or other corporations, partnerships, associations or
persons, engaged in the business of receiving deposits, making loans
discounting business paper, or transacting any other form of banking
business.
IN WITNESS WHEREOF, I have hereunto set
my hand and caused the seal of the United States to be
affixed.
Done in the City of Washington this 6th
day of March-1 A.M. in the year of our Lord One Thousand Nine
Hundred and Thirty-Three, and of the Independence of the United
States the One Hundred and Fifty-seventh.

FRANKLIN D
ROOSEVELT

By the
President:
Cordell Hull
Secretary of State.

[No. 2039]

[CONTINUING IN FORCE THE
BANK HOLIDAY PROCLAMATION OF
MARCH 6, 1933]

BY THE PRESIDENT OF THE
UNITED STATES OF AMERICA
A
PROCLAMATION

WHEREAS, on March 6, 1933, I, FRANKLIN D. ROOSEVELT, President of
the United States of America, by Proclamation declared the existence
of a national emergency and proclaimed a bank holiday extending from
Monday the 6th day of March to Thursday the 9th day of March, 1933,
both dates inclusive, in order to prevent the export, hoarding or
earmarking of gold or silver coin, or bullion or currency, or
speculation in foreign exchange; and
WHEREAS, under
the Act of March 9, 1933, all Proclamations heretofore or hereafter
issued by the President pursuant to the authority conferred by
section 5 (b) of the Act of October 6, 1917, as amended, are
approved and confirmed; and
WHEREAS, said
national emergency still continues, and it is necessary to take
further measures extending beyond March 9, 1933, in order to
accomplish such purposes:
NOW, THEREFORE,
I, FRANKLIN D, ROOSEVELT, President of the United States of America,
in view of such continuing national emergency and by virtue of the
authority vested in me by Section 5 (b) of the Act of October 6,
1917 (40 Stat. L., 411) as amended by the Act of March 9, 1933, do
hereby proclaim, order, direct and declare that all the terms and
provisions of said Proclamation of March 6, 1933, and the
regulations and orders issued thereunder are hereby continued in
full force and effect until further proclamation by the
President.
IN WITNESS WHEREOF I have hereunto set my
hand and have caused the seal of the United States to be
affixed.

Done in
the District of Columbia, this 9th day of March, in the Year of our
Lord One Thousand Nine Hundred and Thirty-Three, and of the
Independence of the United States the One Hundred and
Fifty-seventh.

FRANKLIN D. ROOSEVELT

By the
President:
Cordell Hull
Secretary of State.

[No.
2040]

March 9, 1933

The
next several pages contain excerpts from the
congressional  record. I have them broken down into different subjects.
This information will teach you what took place in 1933 and how the
American people have been defrauded.

Fraud

Senator Long

Mr.
President, the condition of our State banks is due to the
impositions of the big banks. They have loaded us down with their
own collateral that they did not want themselves. They have filled
our banks with German bonds and German marks. They have given us
everything they did not want themselves.
[March 9, 1933]

Congressman
Patman
The result is the banks have become
indebted to their depositors to the extent of $45,000,000,000 and
have in their vaults less than $1,000,000,000 to pay it with. [March
9, 1933]

Congressman
Patman
Does the gentleman believe in Government
by secrecy? Secrecy is a badge of fraud. That is one thing that is
wrong with our country now. We have a Government that is secretly
administered....Mr. [J. P.] Morgan wants the loans made by the
Reconstruction Finance Corporation secret so the people cannot find
out if he takes advantage of the Government as he did in the
Missouri-Pacific Railroad case. [March 13, 1933]

Congressman
Dies
*My investigation convinced me that
during the last quarter of a century the average production of gold
has been falling off considerably. The gold mines of the world are
practically exhausted. There is only about $11,000,000,000 in gold
in the world, with the United States owning a little more than four
billions. We have more than $100,000,000,000 in debts payable in
gold of the present weight and fineness....As a practical
proposition these contracts cannot be collected in gold for the
obvious reason that the gold supply of the entire world is not
sufficient to make payment. [March 15, 1933]
What Nation on
earth would enter into contracts with other individuals and nations;
which are payable in gold (real money) totaling one hundred billion
dollars, knowing that we had in this country only four billion
dollars? Is this not fraud? If a nation owes one hundred billion
dollars, which is more money than they have in assets, and there is
only eleven billion dollars in gold in the whole world, is not that
country bankrupt? I believe this little known fact was used to black
mail congress into turning over our nation to the BANKSTERS in
return for not exposing them through foreclosure. As a result of
congress passing the BANKSTERS legislation; were not all gold
contracts made null and void; thereby forgiving these debts, just as
in
bankruptcy? Was not all gold owned by the government and
private individuals turned over to the BANKSTERS. As a result the
American people were given worthless bank notes while the BANKSTERS
used real money, which was stolen from America and her people, to
enslave the rest of the world. What took place in 1933 and going
back to at least 1913, when the Federal Reserve Act was passed; was
most certainly fraud and violated the Constitution. Thereby, making
every piece of social legislation that is based on contribution or
obligation created by this fraud null and void. The problem is when
you have the Executive  branch, Congress and the Courts
protecting the BANKSTERS interest, change is unlikely. If a majority
of Americans voted out the BANKSTERS yes men and informed them the
debt they created through usury and fraud is null and void, the
country could be saved. Will this happen? No! And the BANKSTERS know
it.

Due
Process

Senator
Vandenberg
But I have no opportunity to proceed in
the direction that I want to go. I have no chance, under summary
circumstances such as exist here tonight, to proceed constructively
in the fashion that I believe would best conserve the savings of the
American people. I must vote either "yes" or "no" upon a formula
that I never even saw until 2 hours ago. [March 9,
1933]

Congressman
Luce
It is, of course, out of the question,
Mr. Speaker, that any man can grasp the full meaning of that bill by
listening to its reading, having had no intimation whatever
beforehand of what it contains. [March 9, 1933]

Congressman
McFadden
Mr. Speaker, I regret that the membership
of the House has had no opportunity to consider or even read this
bill. The first opportunity I had to know what this legislation is
was when it was read from the Clerk's desk. It is an important
banking bill. It is a dictatorship over finance in the United
States. It is complete control over the banking system in the United
States....This gives supreme authority to those people who have
wanted to control the finances of this Government, through a
centralized system, to have such a system....If, on the other hand,
this bill has been proposed and written by the
same  influences that are responsible for this financial
situation, I shall fight it and do everything that I can to defeat
it....I can see much in this bill that can be abused and that may
have been dictated by the same banking influences that are
responsible for our present predicament. [March 9,
1933]

Congressman
Lundeen
The bill has been driven through the
House with cyclonic speed after 40 minutes' debate, 20 minutes for
the minority and 20 minutes for the majority.

I have
demanded a roll call, but have been unable to get the attention of
the Chair....The great majority of the Members have been unable to
get a minute's time to discuss this bill; we have been refused a
roll call; and we have been refused recognition by the Chair....I
want to put myself on record against a procedure of this kind and
against the use of such methods in passing legislation affecting
millions of lives and billions of dollars....It is safe to say that
in normal times, after careful study of a printed copy and after
careful debated and consideration, this bill would never have passed
this House or any other House. Its passage could be accomplished
only by rapid procedure, hurried and hectic debate, and a general
rush for voting without roll call....I am suspicious of
this  railroading of bills through our House of Representatives,
and I refuse to vote for a measure unseen and unknown.

I want
the Record to show that I was, and am, against this bill and this
method of procedure; and I believe no good will come out of it for
America.
[March 9, 1933]

Senator Long

We
were told on Thursday afternoon that the banks were going to open on
Friday morning, and thereupon the legislation was passed. The banks
have not opened yet, Mr President; they are not going to open today;
and no one knows how many and when any of them are going to open.
[March 11, 1933]

Senator Robinson of
Indiana
Nobody had an opportunity to read it. It
was passed "sight unseen." [March 11, 1933]

Senator Robinson of
Indiana
Mr. President, I would like to invite the
attention of the Senator from Louisiana [Mr. Long] to this colloquy
between himself and the Senator from Virginia [Mr. Glass], which
took place last Thursday on this floor:

Mr.
Long. As I understand, the State banks, under the observation of my
distinguished friend from Pennsylvania, are allowed to borrow from
member banks. I should like to know about how much help they are
going to get from member banks when they are closed today, and it is
taking all the power of the Government to enable them to
open.

Mr.
Glass. They are not going to get anything today, and they will not
get anything tomorrow if this legislation is defeated here in the
Senate; but if this legislation is enacted, they will have access to
banks representing 64 percent of the resources of the Federal
Reserve Banking System.

It had
to be done by midnight, and all Members stayed here and heard the
Senator from Virginia make that statement. It was assumed, of
course, that a vote against the measure would make it impossible for
the banks to open yesterday morning. A vote for it would permit the
banks to open. They are still closed, I submit to my friend from
Louisiana, and may be closed for some time to come. The legislation
was rushed through as a result of statements made here by those who
were at least charged with knowledge that it would permit the banks
to open the next morning; otherwise anyone who voted against the
measure would impede the return of prosperity and the reopening of
the banks. They are still closed.

I think
the Senator from Louisiana has a great deal of company in this body
who would join him in destroying their votes if they could. The
measure was passed without anybody's understanding it at all. I hope
nothing like that will ever again be attempted. [March 11,
1933]

[This is happening again
Americans, with the crime bill and the health care bill. How long
will the American people remain asleep, and go along to get
along.]

Dictatorship

Senator La
Follette

It is
moreover provided that the Reconstruction Finance Corporation may
purchase in unlimited amounts preferred stock of the reorganized
banks and subsequently sell such preferred stock in the open market.
These powers will vest in the financial interests of New York a
virtual dictatorship over the banking of the entire Nation. [March
9, 1933]

Congressman
Steagall
The first provision of the bill (the
banking bill passed March 9, 1933) validates and maintains the
authority exercised by the President of the United States in the
proclamation relating to the banks of the Nation issued by the
President on March 6, 1933.
Section 2
confers upon the President the powers bestowed under the act of
October 6, 1917, regardless of whether or not the country is
involved in war.
Section 3 gives authority to regulate
transactions in gold and to exercise such powers as are required
from time to time to conserve our supply of gold to prevent hoarding
and to protect the currency of the United States.

Section 4 confers specific authority to control the banking
operations of national banks and State banks that are members of the
Federal Reserve System to the end that the public may have restored
to them, at the earliest possible hour, such banking as may be
afforded by banks that are in position to transact banking
activities without restriction. [March 9, 1933

New Money

Congressman
McFadden
The current press reports indicate there
will be issued under this authority some $2,000,000 or more of new
currency, and made available to the banks. Is that
correct?

Congressman
Steagall
To be frank with the gentleman, I should
not like to be bound in my answer by estimates outlined in newspaper
reports. The
issue might greatly exceed the amount suggested.

Congressman
McFadden
Will the gentleman say how much it is
possible to be issued or is contemplated to be issued?

Congressman
Steagall
No one knows. It is not an arbitrary
expansion. The purpose is to provide an elastic expansion to meet
the exigencies and development of banking and business
conditions.

Congressman
McFadden
I think it is fairly clear from the
colloquy that has just taken place that the increased Federal
Reserve circulation is to be in the form of Federal Reserve bank
notes and not the present Federal Reserve notes that are in
circulation to the extent of approximately $4,000,000,000, which are
secured by 60 percent of eligible paper or Government bonds and 40
percent of gold. This is a new issue which is authorized under the
Federal Reserve Act, which has not to any great extent been resorted
to heretofore.

Congressman
Britten
Will the gentleman yield for a
question?

Congressman
McFadden
I will.

Congressman
Britten
From my observation of the bill as it was
read to the House, it would appear that the amount of bank notes
that might be issued by the Federal Reserve System is not limited.
That will depend entirely upon the amount of collateral that is
presented from time to time for exchange for bank notes. Is that not
correct.

Congressman
McFadded
Yes. I think that is
correct.

Congressman
Britten
So that it might run to
$20,000,000,000?

Congressman
McFadden
In the discretion of the President and
the Secretary of the Treasury. These notes are to be secured by
assets that are approved, that are turned over by financial
institutions to the Treasury of the United States.[March 9,
1933]

Bankers

Congressman
Rankin
Those influences and individuals most
responsible for the direful conditions through which we are now
passing have resisted us at every point. We have been ridiculed and
abused by the very money changers whose misconduct produced this
terrible panic, with all its misery, its poverty, its hunger, its
human suffering and human distress. "Whatsoever man soweth, that
shall he also reap." The very ones who sowed the seeds of this panic
are now reaping the fruits of their own misconduct as they see their
monetary Tower of Babel crash amid a confusion of tongues. [March 9,
1933]

Senator Long

I am
sorry to say--some of our own councils; there is not any difference;
the same men who sat and conferred about the kind of financial
policy that was going to govern this country--Mr. Parker Gilbert, of
J. P. Morgan & Co.; Eugene Meyer, the chairman of the Federal
Reserve, and Mr. Ogden L. Mills, together with the distinguished
Senator from Virginia [Mr. Glass]--have every one had their finger
in the pie during the last 20 years. There has not been any
difference in what they advocated then and what they are advocating
now, and they are doing now just what they have done for the last 12
years....Here in the United States the Federal Reserve System has
been dominated and controlled, and the financial structure of
America has been dominated, controlled, and negotiated through a
certain little clique, and it has brought this country to wreck and
to ruin; and now we have the same set here giving us orders to close
90 percent of the banks in the United States and open 10 percent,
and we are still following that kind of prophet....Had I been the
President of the United States--and I guess it is a good thing that
I never was--I never would have sent for Eugene Meyer, the chairman
of the Federal Reserve Board. He has been here, the carcass hovering
over the lives and fortunes of these people, for many, many years.
He has been the raven that has said to the American people.
"Nevermore!"

Food
could not be had for the people, but it can be had
for  the
financial barons. The land had become barren of a means
of  exchange to live upon, and when they had killed their
neighbors,  and their brothers, and starved their children to death,
broke  their banks, depopulated their houses, wrecked their
firesides,  then they came and said, "Oh, yes, inflation is necessary,
not to  save the people of the United States, but to save us, who
have  been
guilty of the destruction from which this country is now
suffering."

That is
the equity of what we are about to do. Yes; you are going to close
us down. Yes; you have already closed us down, and have been doing
it long before this year. Our President says that for 3 years we
have been on the way to bankruptcy. We have been on the way to
bankruptcy longer than 3 years. We have been on the way to
bankruptcy ever since we began to allow the financial mastery of
this country gradually to get into the hands of a little clique that
has held it right up until they would send us to the
grave.

In 1
month we have been told that there could be no medium of exchange
allowed under the United States Government, because, they said, if
we inflate, it will destroy the credit of the United States
Government. But today, when they have closed down all the banks,
they come back and say, "No; it will not ruin the credit of the
United States Government to inflate, but you must inflate for the
financial masters and not for the people." They have come back, Mr.
President, and they have said, "We have decided to inflate." Abel
and Cain have become the same the man. Ephraim is joined to his
idols; let him alone. They have come back and said. "We have to
inflate, but we are going to inflate and keep open the big masters
who have wrecked and destroyed the communities and the banks and
have ruined the hopes for the present time of the people of the
United States living in the  country. We are going to save the
big masters, who have compelled it, and condemn to an eternal
damnation, to hell and destruction every man who was outside this
clique that brought this wreckage onto the people of the United
States."

You
cannot blame the consequences upon anybody except yourselves,
because you have come back and said, "Oh, what you have prescribed
is necessary for the life of the country, but we are not going to
let any part of the country have it except a few financial masters
that we have seen fit to prefer."

Mr.
President, I am sorry for the vote I cast on Thursday night. I voted
for the bill. I did not have an opportunity to read it at all,
except while the clerk was reading it at the desk....I am sorry for
that vote. I wonder if I could get unanimous consent to withdraw my
vote and have it entered "nay"? I do not know what the rule is, but
if I could do that, I would like to have it done....But I am very
sorry for the vote I cast. I promise the Senate I will never again
be a party to anything like that. Never again will I be a party to
bringing a bill in and swallowing it hook, line, and sinker as I did
that day.

I want
to compliment the Senators who did not vote for the bill. They
showed more sense than I did. If I ever do such a thing again, I
want to be bored for the hollow horn....But it seems I have hoped in
vain, and therefore the basis on which I cast my vote was a faulty
one and I regret having voted that way.

[March 11,
1933]

Congressman
Patman
Something has to be done now, and while
we are clamoring to do something for the aid and benefit of the
people in this crisis, the powerful bankers who have caused it and
brought ruin to our country are at the doors of Congress, under the
guise of promoting the general welfare, endeavoring to get a
stronger grip on the throats of the American people and endeavoring
to get more privileges and monopolies by reason of the distress that
they have brought upon our country.

....Why is it necessary to
have Government ownership and operation of banks? Let us go back to
the Constitution of the United States and follow it, and this country will be safe.
Give the people the truth at all times; do not deceive them, do not
keep anything from them, but at all times and under all conditions
tell them the truth about economic conditions. Jefferson was right
when he said, "When the people get the truth, the country is safe."
The trouble is that during the last few months and years the great
metropolitan daily newspapers have printed only one side of a
proposition; they have failed to give the people the facts. The same
criticism can be urged against the radio, screen, and
stage.

The
Constitution of the United States says that Congress shall coin
money and regulate its value. That does not mean, and I do not
believe that anyone can construe it to mean, that the Congress of
the United States, composed of the duly elected representatives of
the people, have a right to farm out the great privilege to the
banking system, until today a few powerful bankers control the
issuance and distribution of money--something that the Constitution
of the United States says Congress shall do. Let us get back to the
mandate of the Constitution of the United States.

I want
to show you where the people are being imposed upon by reason of the
delegation of this tremendous power. I invite your attention to the
fact that section 16 of the Federal Reserve Act provides that
whenever the Government of the United States issues and delivers
money, Federal Reserve notes, which are based on the credit of the
Nation--they represent a mortgage upon your home and my home, and
upon all the property of all the people of the Nation--to the
Federal Reserve agent, an interest charge shall be collected for the
Government. [Did you get that Americans? Go back and read A Country
Defeated In Victory.] When the Federal Reserve agent delivers the
notes--currency--to the private banking institutions, the law says
the Federal Reserve agent shall collect from the bank such interest
charge as the Federal Reserve Board may assess. The law makes it a
mandatory duty upon the Federal Reserve Board to require the payment
of interest for the use of the Government's credit. The money
collected on interest charges should go into the Treasury. Has that
ever been done? No; it has never been done. Billions and billions of
dollars have been issued and are being issued every year, and they
have been delivered to the private bankers without interest and
without charge, and if the law had been complied with they would owe
this Government billions of dollars today....So if you want to
balance your Budget, and you are really honest and conscientious
about it, why do you not make the bankers who have ruined this
country pay their share? [March 13, 1933]

Answer:
Because the American people don't care, all their interested in is
how many things they can get with their weekly pay check and how
long is their vacation going to be.

Call for
investigation

Congressman
Patman
For the information of the Members,
permission having been granted for that purpose, I am inserting a
copy of the resolution that has been introduced by me to investigate
the Treasury of the United States, and the monetary, financial,
banking, and currency laws of the United States.

House Resolution
31

Whereas
it has been charged and there is reason to believe that a shortage
of currency and a monopoly of credit exists in the United States and
that the power to control the issue of the public currency, which is
one of the sovereign powers of the United States Government, has
been given over to private interests and that the said private
interests have abused that power and have been guilty of unlawful
practices in connection with it and have unlawfully extended credit
to themselves and to foreigners and foreign central banks at the
expense of, and to the great injury of, the people of the United
States and that by reason of such practices the people and the
Government of the  United States have suffered great financial losses;
and
Whereas, although the law requires a
certain agency of the United States Government to fix an interest
rate on all issues of the public currency advanced at the request of
the aforesaid private interests and requires that the aforesaid
private interests shall pay such interest charges to the United
States Government it has been charged and there is reason to believe
that this law has for 17 years been deliberately disobeyed and that
the Government and the people of the United States have thereby been
deliberately defrauded of immense sums of money and

that such sums of money
are due to the Government from the aforesaid private interests;
and
Whereas it has been charged and there is
reason to believe that vast profits which have been made in times
past by the private interests to whom was farmed out the great
privilege of controlling the currency of the United States have not
been properly accounted for and that the knowledge of such profits
has been concealed from the people by bookkeeping devices and that
the legal share of such profits belonging to the Government has not
been in its entirety set aside or paid over to the Government but
has on the contrary been used speculatively by the said private
interests for their own benefit and that the published reports of
the said private interests are not acceptable to the people of the
United States and should by examined by the representatives of the
people; and
Whereas it has been charged and there is
reason to believe that although it is unlawful to accept time drafts
and bills of exchange drawn upon them, and by permitting national
banks to buy and sell with their endorsement time drafts, bills of
exchange, and trade acceptances, and by rulings to the effect that
such circulating evidences of debt, including those drawn in dollars
by foreigners for their own purposes, are re-discountable here and
purchasable here in the open discount market and may be used by the
aforesaid private interests as collateral security for new issues of
United States currency, great losses have been inflicted upon the
Government and the people of the United States, the Government
having unwisely been made the guarantor of that particular kind of
currency, and that such losses have and are now being paid by the
exportation of gold; and
Whereas it has
been charged and there is reason to believe that although the
original provision of law for the issue of currency on the security
of time drafts or bills of exchange to be used in financing the
importation of goods, contemplated goods, which were to be imported
into or exported out of the United States, the fact that the words
"United States" were omitted from the law gave excuse for a ruling
which extends this provision to time drafts and bills of exchange
financing goods imported and exported by foreign countries from and
to foreign countries; and that this provision has been extended to
cover time
drafts and bills of exchange financing goods in domestic shipment or
stored in domestic warehouses, and to time drafts and bills of
exchange financing goods belonging to foreigners or others, which
are stored in foreign warehouses, and has like wise been extended to
cover time drafts and bills of exchange drawn to finance goods
shipped between two or more foreign countries, and to time drafts
and bills of exchange not related to goods of any character by
merely designed to furnish cheap exchange to foreigners, and that
all such time drafts and bills of exchange have been made collateral
security for United States currency which the United States
Government is obligated to redeem in gold, and that great losses have
been inflicted upon the Government and the people of the United
States by reason of these rulings and extensions, by the abuse of
acceptance privileges, and by the use of such time drafts and bills
of exchange as collateral security for United States currency;
and
Whereas it has been charged and there is
reason to believe that although the original provision of law under
which the private interests aforesaid assumed power to control the
issue of the public currency inaugurated the use of a new currency
based solely on notes and bills accepted for rediscount, the private
interests aforesaid had amendments added to existing laws giving
them power to use each and every kind of debt paper, purchasable in
the open discount market, as collateral security for new issues of
United States currency, and that, by means of these and other
vicious amendments to existing law the Government of the United
States has been put in debt by the aforesaid private interests
indiscriminately in all parts of the world as the
enforced backer of private
debtors, and that the Government has thus been made the backer of
swindlers, smugglers, and speculators, and that low elements in all
nations have been allowed to operate on the public credit of the
United States Government, supplemented by the bank deposits of the
American people, and that immense losses have thereby been inflicted
upon the Government and the people; and
Whereas the
reserves of the national banks have been confiscated and impounded
in a central pool and placed under the control of the aforesaid
private interests, and it has been charged and there is reason to
believe that the said private interests have drawn immense sums of
gold out of the said reserves belonging to our national-bank
depositors and have lent such sums to foreign central banks and have
lost other such sums in speculative enterprises and have transferred
other such sums in gold to themselves and their foreign principals,
thus requiring the continuous replenishment of the reserves in
the pool at the
expense of the American public and to the great injury of the
Government and the people, and that the said private interests have
established control and operate for their private benefit by means
of their control of the said pool of confiscated bank reserves
belonging to our national-bank depositors, and that they use United
States Government obligations unlawfully in the operating of the
said discount
market, and that they have made the New York Stock Exchange
and other exchanges adjuncts of the said discount market and that by
reason of their control of the discount market they control the
entire money market of the United States, all money rates, including
the call-money rate, the prices of all stocks and bonds on the
exchanges, the prices of all commodities, the wages of all our
people, and the value of all property both real and personal;
and
Whereas it has been charged and there is
reason to believe that by permitting certain banks in the United
States to become the agents of foreign central banks, the wealth of
the United States has been conveniently placed at the disposal of
the said foreign banks and their customers; and that property
belonging to American citizens has been taken from them without
their knowledge and consent and without due process of law and that
such property has been exported to foreign lands for the benefit of
foreign central banks and their customers and that such property has
likewise been exported to foreign lands to satisfy debts incurred by
the aforesaid private interests and that such property belonging to the bank
depositors of the United States is now being exported to satisfy
claims held by foreigners against other foreigners in default, the
aforesaid private interests having abused their power over the
public currency so as to make the United States Government the
backer of the defaulters, and that other such property belonging to
the people of the United States is likewise being exported to
finance foreigners in competition with American producers, and for
other purposes; and
Whereas it has been charged and there is
reason to believe that the division of the United States into
arbitrary financial areas has violated the principle of the
sovereignty of the separate States of the Union and has diminished
the importance and hindered the growth of certain States and
threatens the financial stability of such States by making it
possible for the resources of such States to be drawn outside of
their border and exported to foreign lands; and

Whereas it has been charged and there is reason to believe that the
aforesaid private interests have injured our foreign trade, reduced
our trade balances, adversely affected the prices of our goods and
commodities, and have benefited foreigners and themselves at the
expense of the Government and the people of the United States, and
have financed foreign countries, cities, towns, public utilities,
banks, corporations, and individuals with funds belonging to
American bank depositors, and that "blocks" of bonds and stocks
issued by foreign governments, cities, railroads, industrial
corporations, and the like have had debentures issued against them
for sale to American investors and that foreign securities of small
value or of doubtful value and of no marketability abroad have
thus been sold to American investors to the extent of billions of
dollars at a great profit to the aforesaid private interests and to
foreigners but to the great loss of American investors, and that
mass credits have been opened in the United States for foreign
interests and have been withdrawn from the United States by means of
drafts drawn in dollars re-discountable here or purchasable here in
the open market and paid for in gold taken from our national-bank
reserves or in United States currency redeemable in gold upon
demand, and that corporations have been accorded extraordinary
privileges, including the right to incur liabilities equal to 10
times their capital stock and surplus and that these and other
corporations have been instrumental in having questionable foreign
acceptances drawn in dollars rediscounted here and purchased here and
used as
collateral security for United States currency; and that
there has been an abuse of acceptance facilities in the United
States, and an abuse of open-market privileges and an abuse of
Government funds and obligations and an abuse of the public
currency; and
Whereas there is a decrease of business
and industry in the United States and thousands of business
enterprises have failed and the owners thereof been forced into
bankruptcy; and thousands of banks have been obliged to close their
doors with a resultant loss to American bank depositors of several
billions of dollars; and wage-earners by the millions have been
thrown out of employment; and a condition of widespread misery,
want, and suffering has been created among the people of the United
States and a breaking up of American homes and families has taken
place and a dispersal of American children has occurred which has
removed them from the care of their natural protectors and there is
an unprecedented condition of crime and disrespect on the part of
certain elements in the population for law and duly constituted
authority, all of which is said to betoken an economic and financial crisis in
the affairs of the Nation, and it has been charged that there is
reason to believe that this crisis has been caused by the conditions
set forth herein, and other graver irregularities, crimes, and
abuses; and
Whereas it has been charged and there is
reason to believe that the independent United States Treasury has
been destroyed and its functions taken over by the private interests
which control the public currency and that public moneys raised from
the people by taxation have been used speculatively and that such
funds have been improperly secured and losses and abuses have
occurred in connection with them, and that irregularities have been
disclosed in the accounts of the War Finance Corporation and that
Government obligations have been unlawfully used to control the
money market for the benefit of the aforesaid private interests and
their foreign principals; and
Whereas there is
a deficit in the estimated receipts of the United States Treasury and it has
been charged and there is reason to believe that a proper scrutiny
and examination of the accounts of the fiscal agents of the
Government and of the United States Treasury and all related matters
is necessary in order to safeguard the rights of the people;
and
Whereas it has been charged and there is
reason to believe that the monetary, financial, banking, and
currency laws of the United States have been evaded,
mal-administered, disregarded, abused, and disobeyed, and that
private interests have made false representations and have thereby
obtained laws, and amendments to existing laws, and illegal and
unfair rulings for their own benefit and financial profit at the
expense of the Government and the people of the United States, and
that the proper framing emendation, administration, and impartial
execution of the banking and currency laws of the United States are
matters of vital concern to we people of the United States;
and
Whereas legislation is now pending
involving important changes in our banking, currency, and monetary
systems and vitally affecting the Federal Government and the United
States Treasury, United States foreign trade and commerce, United
States foreign relations, our national banks and other financial
institutions, and bills have been introduced having for their
purpose the amendment of the act generally known as the federal
antitrust law; and
Whereas it is deemed advisable to
investigate the monetary, banking, currency, and fiscal affairs of
the United States in their entirety and to gather the facts bearing
on the aforesaid conditions and chargers or in any way relating
thereto or to any of the subjects above mentioned as a basis for
remedial and other legislative purposes:
Therefore be
it Resolved,
That the Speaker of the House of Representatives be, and he is
hereby, authorized to appoint a special committee consisting of five
members and such substituted members as may be from time to time
selected by him to fill vacancies, if any occur, in the special
committee, and that the said special committee is authorized and
directed to fully investigate and to inquire into each and all of
the above-recited matters and into all matters and subjects
connected with or appurtenant to or bearing upon the same; be it
further
Resolved, That said committee as a whole
or by subcommittee is authorized to sit during the sessions of the
House and during the recess of Congress. Its hearings shall be open
to the public. The committee as a whole or by subcommittee is
authorized to hold its meeting both during the sessions of Congress
and throughout the recesses and adjournment thereof and in such
cities and places in the United States as it may from time to time
designate; to employ counsel, experts, accountants, bookkeepers,
clerical, and other assistants; may summon and compel the attendance
of witnesses; may send for persons and papers, and administer oaths to
witnesses. The Comptroller of the Currency, the Secretary of the
Treasury, the Director of the Bureau of Engraving and printing, the
Director of the Mint, the head of the Department of Commerce, the
Secretary of State, the Interstate Commerce Commission, the
president of the Reconstruction Finance Corporation, and their
respective assistants and subordinates are hereby respective
departments, to procure for the committee from time to time such
information as is subject to their control or inspection, and to
allow the use of their assistants for the making of such
investigations with respect to matters under their respective jurisdiction as
the
committee or any subcommittee may from time to time request.
Such committee shall take such testimony, have such printing and
binding done, and make such expenditures as it deems necessary; and
be it further
Resolved, That no person shall be excused
from giving testimony or from answering any question or from
otherwise disclosing any fact within his knowledge as an individual
or as a member of a board, an officer or director of a bank,
corporation, or otherwise, or from producing any book, paper, or
document on the ground that the giving of such testimony or the
production of such book, paper, or document would tend to
incriminate him, or for any other reason. It shall be within the
power of the committee or subcommittee to grant immunity from
prosecution with respect to any matter or thing concerning which he
may be interrogated and as to which he shall truthfully make answer
under oath upon such investigation. The Speaker shall have authority
to sign and the Clerk to attest subpoenas during the recess of
Congress.
I have asked the Committee on Rules for a
hearing on this resolution and hope to get favorable action on it in
a short time.
An investigation will disclose that our
President had sufficient reasons to say that the money-changers
should be driven from the temple.

A Call for
Impeachment

May 23, 1933

Impeachment
Charges

Congressman Mr.
McFadden:
Mr. Speaker, I rise to a question of
constitutional privilege. On my own responsibility as a Member of
the House of Representatives, I impeach Eugene Meyer, former member
of the Federal Reserve Board; Roy Meyer, former member of the
Federal Reserve Board; Roy A. Young, former member of the Federal
Reserve Board; Edmund Platt, former member of the Federal Reserve
Board; Eugene R. Black, member of the Federal Reserve Board and
officer of the Federal Reserve Bank of Atlanta; Adolph Caspar
Miller, member of the Federal Reserve Board; Charles S. Hamlin,
member of the Federal Reserve Board; George R. James, member of
the Federal
Reserve Board; Andrew W. Mellon, former Secretary of the United
States Treasury and former ex-officio member of the Federal Reserve
Board; Ogden L. Mills, former Secretary of the United States
Treasury and former ex-officio member of the Federal Reserve Board;
William H. Woodin, Secretary of the United States Treasury and
ex-officio member of the Federal Reserve Board; John W. Pole, former
Comptroller of the Currency and former ex-officio member of the
Federal Reserve Board; J. F. T. O'Connor, Comptroller of the
Currency and ex-offico member of the Federal Reserve Board; F. H.
Curtiss, Federal Reserve agent of the Federal Reserve Bank of
Boston; J. H. Case, Federal Reserve agent of the Federal Reserve
Bank of New York; R. L. Austin, Federal agent of the Federal Reserve
Bank of Philadelphia; George De Camp, former Federal Reserve agent
of the Federal Reserve Bank of Cleveland; L. B. Williams, Federal
Reserve agent of the Federal Reserve Bank of Cleveland; W. W.
Hoxton, Federal Reserve agent of the Federal Reserve Bank of
Richmond; Oscar Newton, Federal Reserve agent of the Federal Reserve
Bank of Atlanta; E. M. Stevens, Federal Reserve agent of the Federal
Reserve Bank of Chicago; J. S. Wood, Federal Reserve agent of the
Federal Reserve Bank of St. Louis; J. N. Peyton, Federal Reserve
agent of the Federal Reserve Bank of Minneapolis; M. L. McClure,
Federal Reserve agent of the Federal Reserve Bank of Kansas City; C.
C. Walsh,
Federal Reserve agent of the Federal Reserve Bank of Dallas; Isaac
B. Newton, Federal Reserve agent of the Federal Reserve Bank of San
Francisco, jointly and severally, of high crimes and misdemeanors,
and offer the following resolution:
Whereas I charge
the aforesaid Eugene Meyer, Roy A. Young, Edmund Platt, Eugene R.
Black, Adolph Caspar Miller, Charles S. Hamlin, George R. James,
Andrew W. Mellon, Ogden L. Mills, William H. Woodin, John W. Pole,
J. F. T. O'Connor, members of the Federal Reserve Board; F. H.
Curtiss, J. H. Case, R. L. Austin, George De Camp, L. B. Williams,
W. W. Hoxton, OscarNewton, E. M. Stevens, J. S. Wood, J. N. Peyton,
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 United States 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 United States
Government in the year 1928, the said unlawful taking consisting of
the unlawful creation of claims against the United States 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 United
States Treasury by unlawfully placing United States 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 United States and foreign countries, and
branches of foreign banks doing business in the United States, to
the extent of billions of dollars; and with having made unlawful
contracts in the name of the United States Government and the United
States Treasury; and with having made false entries on books of
account; and
Whereas I charge them, jointly and
severally, with having taken Federal Reserve notes from the United
States Treasury and with having issued Federal Reserve notes and
with having put Federal Reserve notes into circulation without
obeying the mandatory provision of the Federal Reserve Act which
requires the Federal Board to fix an interest rate on all issues of
Federal Reserve notes supplied to Federal Reserve banks, the
interest resulting therefrom to be paid by the Federal Reserve banks
to the Government of the United States for the use of the
said
Federal Reserve notes, and I charge them with having
defrauded the United States Government and the people of the United
States of billions of dollars by the commission of this crime;
and
Whereas I charge them, jointly and
severally, with having purchased United States Government securities
with United States Government credit unlawfully taken and with
having sold the said United States Government securities back to the
people of the United States for gold or gold values and with having
again purchased United States Government Securities with United
States with United States Government credit unlawfully taken and
with having again sold the said United States Government securities
back to the people of the United States for gold or gold values, and
I charge them with having defrauded the United States by this rotary
process; and
Whereas I charge them, jointly and
severally, with having unlawfully negotiated United States
Government securities, upon which the Government's liability was
extinguished, as collateral security for the Federal Reserve notes,
and with having by this process defrauded the United States
Government and the people of the United States, and I charge them
with the theft of all the gold and Federal Reserve currency they
obtained by this process; and
Whereas I charge
them, jointly and severally, with having unlawfully issued Federal
Reserve currency on false, worthless, and fictitious acceptances and
other circulating evidences of debt, and with having made unlawful
advancements of Federal Reserve 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 United States; and
Whereas I charge
them, jointly and severally, with having conspired to have evidences
of debt to the extent of over $1,000,000,000 artificially created at
the end of February 1933 and early in March 1933, and with having
made unlawful issues and advancement of Federal Reserve
currency on the security of thesaid artificially created evidences
of debt for a sinister purpose, and with having assisted in the
execution of the said sinister purpose; and
Whereas I charge
them, jointly and severally, with having brought about a repudiation
of the currency obligations of the Federal Reserve banks to the
people of the United States, and with having conspired to obtain a
release for the Federal Reserve Board and the Federal Reserve banks
from their contractual liability to redeem all Federal Reserve
currency in gold or lawful money at any Federal Reserve bank, and
with having conspired to have the debts and losses of the Federal
Reserve Board
and the Federal Reserve banks unlawfully transferred to the
Government and the people of the United States; and

Whereas I charge them, jointly and severally, with having unlawfully
substituted Federal Reserve currency and other irredeemable paper
currency for gold in the hands of the people after the decision to
repudiate the Federal Reserve currency and the national currency was
made known to them, and with having thus obtained money under false
pretenses; and
Whereas I charge them, jointly and
severally, with having brought about a repudiation of the national
currency of the United States in order that the gold value of the
said currency might be given to private interests, foreign
governments, foreign central banks of issue, and the Bank for
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, unlawfully to finance foreign governments, foreign
corporations, and foreign individuals with funds unlawfully taken
from the United States Treasury; and I charge them with having
unlawfully permitted and made possible a mass financing "of
foreigners at the expense of the United States 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 United States, and with having unlawfully permitted
the said foreign securities to be imported into the United States
instead of gold, which was lawfully due to the United States on
trade balances and otherwise, and with having unlawfully permitted
and facilitated the sale of the said foreign securities in the
United States in a manner prejudicial to the public welfare and
inimical to the Government of the United States; and

Whereas I charge them, jointly and severally, with having unlawfully
made loans of gold and of gold values belonging to the bank
depositors and the general public of the United States to foreign
governments, foreign central banks of issue, foreign commercial
banks, foreign corporations, and individuals, and the Bank for
International Settlements, to the loss and detriment of the
Government and the people of the United States; and

Whereas I charge them, jointly and severally, with having unlawfully
exported gold reserves belonging to the national bank depositors and
gold belonging to the general public of the United States to foreign
countries, and with having converted the said gold into foreign
currencies, and with having used it for the benefit of foreigners,
and for speculative purposes abroad, and with having unlawfully
converted to the United States stored or held in foreign countries,
and with having unlawfully prevented the shipment to the United
States of the said gold which was due to the United States, and with
having permitted the importation under their supervision of false,
worthless, and fictitious trade paper and foreign securities of
doubtful value in lieu of it, and with having caused the United
States to lose the said gold; and
Whereas I charge
them, jointly and severally, with having unlawfully exported United
States coins and currency for a sinister purpose, and with having
deprived the people of the United States of their lawful circulating
medium of exchange, and I charge them with having arbitrarily and
unlawfully reduced the amount of money and currency in circulation
in the United States 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 United
States money in coins and paper currency exported abroad and the
amount remaining in the United States, as a result of which refusal
the Congress of the United States is unable to ascertain where the
United States coins and issues of currency are at the present time
and what amount of United States currency is now held abroad;
and
Whereas I charge them, jointly and
severally, with having arbitrarily and unlawfully raised and lowered
the rates on money and with having arbitrarily increased and
diminished the volume of currency in circulation for the benefit of
private interests and foreign speculators at the expense of the
Government and the people of the United States and with having
unlawfully manipulated money rates, wages, salaries, and property
values, both real and personal, in the United States, 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 volume of
United States money and currency in circulation; by thefts of funds
from the United States Treasury; by gambling in acceptances and
United States Government securities; by services rendered to foreign
and domestic speculators and politicians, and by the unlawful sale
of United States gold reserves, and whereas I charge that the
unconstitutional inflation law imbedded in the so-called
"Farm  Relief Act: by which the Federal Reserve Board and the
Federal  Reserve banks are given permission to buy United States
Government securities to the extent of $3,000,000,000 and to draw
forth currency from the people's Treasury to the extent of
$3,000,000,000 is likely to result by connivance on the part of the
said accused with others in the purchase by the Federal Reserve
banks of the United States Government securities to the extent of
$3,000,000,000 with the United States Government's own credit
unlawfully taken, IT BEING OBVIOUS THAT THE FEDERAL RESERVE BOARD
AND THE FEDERAL RESERVE BANKS DO NOT INTEND TO PAY ANYTHING OF VALUE
TO THE UNITED STATES GOVERNMENT FOR THE SAID UNITED STATES
GOVERNMENT SECURITIES--NO PROVISION FOR PAYMENT IN GOLD OR LAWFUL
MONEY APPEARING IN THE SO--CALLED "FARM RELIEF ACT:--*(Here
Congressman Mcfadden is telling you that payment in anything but
gold or silver is of no real value and is not lawful money! emphasis
mine) and that the United States Government will thus be placed in
the position of conferring a gift of $3,000,000,000 in United States
Government securities on the Federal Reserve Board and the Federal
Reserve banks to enable them to pay more of 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 for International Settlements, and whereas
the United States Government will thus go into debt to the extent of
$3,000,000,000 in currency unlawfully created against it and whereas
no private interests should be permitted to buy United States
Government securities with the Government's own credit unlawfully
taken and whereas currency should not be issued for the benefit of
the said private interests or any interests on United States
Government securities so acquired, and whereas it has been publicly
stated and not denied that the inflation amendment to the Farm
Relief Act is the matter of benefit which was secured by Ramsay
MacDonald, the Prime Minister of Great Britain, upon the occasion of
his latest visit to the White House and the United States Treasury,
and whereas there is grave danger that the accused will employ the
provision creating United States Government securities to the extent
of $3,000,000,000 and $3,000,000,000 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 United States
Treasury, and that they will likewise confer benefits upon the Bank
for International Settlements for which they maintain an account and
perform services at the expense of the United States Treasury;
and
Whereas I charge them, jointly and
severally, with having unlawfully concealed the insolvency of the
Federal Reserve Board and the Federal Reserve banks and with having
failed to report the insolvency of the Federal Reserve banks 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 United States Government funds and other
deposits, and having permitted them to exercise control over the
gold reserves of the United States 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 United States, and with
having permitted foreign debts of the Federal Reserve banks to be
paid with the property, the savings, the wages, and the salaries of
the people of the United States, and with the farms and homes of the
American people, and whereas I charge them with forcing the bad
debts of the Federal Reserve banks upon the general public covertly
and dishonestly and with taking the general wealth and savings of
the people of the Unites States under false pretenses, to pay the
debts of the Federal Reserve banks to foreigners, 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 United States and with having sold the gold reserves
of the United States 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 United States so that
between 1924 and 1928 the United States gained no gold on net
account, but suffered a decline in its percentage of central gold
reserves from 45.9 percent in 1924 to 37.5 percent in 1928
notwithstanding the fact that the United States had a favorable
balance of trade throughout that period; and
Whereas the
United States was the only country which lost a considerable
quantity of gold during that period, to wit, 1924 to 1928,
inclusive, I charge them with the theft and sale of the said gold to
their foreign principals, and I charge them with the theft and sale
of 10 percent of the entire gold stock of the United States during
the last 4 months of 1927 and during 1928 after crediting all
importations of gold received by the United States during that
period, this theft and sale of 10 percent of the gold stock of the
United States occasioning the largest gold outflow from the United
States that had ever theretofore occurred, and I charge them with
the theft and sale of all the gold reserves exported from the United
States from the year 1928 to the present time, a period during which
the United States has lost gold continuously and has gained no gold on net
account, notwithstanding the fact that the balance of trade and
accounts throughout the entire period has been in favor of the
United States; and
Whereas the United States has received no
gold on net account since 1923, a period of 10 years during which
the United States has had a favorable balance of trade and has had
large sums due to it and payable in gold from foreign nations and
has not received such sums in gold, I charge them, the said accused,
with the theft of gold belonging to the United States, and with the
unlawful diversion of United States gold to the treasuries and
central banks of foreign countries, and I charge them with
concealment of the true condition and amount of the gold reserves of
the United States; 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 United States Government funds entrusted
to their care; and
Whereas I charge them, jointly and
severally, with having destroyed independent banks in the United
States and with having thereby caused losses amounting to billions
of dollars to the depositors of the said banks and to the general
public of the United States; and
Whereas I charge
them, jointly and severally, with failure to furnish true reports of
the business operations and the condition of the Federal Reserve
banks to the Congress and the people, and with having furnished
false and misleading reports to the Congress of the United States;
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 United
States to lose its independence; 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 United States
Treasury and the people of the United States in pretending to have
received payment from Great Britain of the amount due on the British
war debt to the United States in December 1932; and

Whereas I charge them,
jointly and severally, with having conspired with their foreign
principals and others to defraud the United States Government and to
prevent the people of the United States from receiving payment of
the war debts due to the United States from foreign nations;
and
Whereas I charge them, jointly and
severally, with having robbed the United States Government and the
people of the United States by their theft and sale of the gold
reserve of the United States and other unlawful transactions, and
with having created a deficit in the United States Treasury which
has necessitated to a large extent the destruction of our national
defense and the reduction of the United States Army and the United
States Navy and other branches of the national defense;
and
Whereas I charge them, jointly and
severally, with having reduced the United States from a first-class
power to one that is dependent, and with having reduced the United
States 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 United
States, and with having treasonably conspired to destroy
constitutional government in the United States;

therefore be
it
Resolved, That the Committee on the
Judiciary is authorized and directed, as a whole or by subcommittee,
to investigate the official conduct of Eugene Meyer, Roy A. Young,
Edmund Platt, Eugene R. Black, Adolph Caspar Miller, Charles S.
Hamlin, George R. James, Andrew W. Melton, Ozden L. Mills, William
H. Woodin. John W. Pole, J. F. T. O'Connor, members of the Federal
Reserve Board; and F. H. Curtiss, J. H. Case, 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, Issac B. Newton,
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 of the Constitution,
requires the interposition of the constitutional powers of the
House. Such committee shall report its findings to the House,
together with such resolution or resolutions of impeachment or other
recommendations as it deems proper.
For the purposes
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 the attendance 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.

CONGRESSIONAL
RECORD
Seventy-third Congress, Second Session

Franklin D. Roosevelt,
the Apostle of Irredeemable
Paper Money
SPEECH OF HON. LOUIS T.
McFADDEN
of
Pennsylvania

In the
House of Representatives Wednesday, January 24, 1934.

Mr. McFadden. Mr.
Chairman, a citizen of the United States has asked me to explain for
his benefit and for the benefit of other United States citizens the
real meaning of the Roosevelt gold bill, the bill which the House
passed last Saturday by 360 votes to 40, with 32 Members not
voting.
Mr. Chairman, a law against the
Constitution is void. The gold bill creates a nullity. Old John
Marshall said that the words of the Constitution are not to be
twisted out of their plain, everyday meaning. The Constitution says
Congress shall have power to coin money and to regulate the value
thereof. This, Mr. Chairman, means that Congress has power to make
coins of metal and to stamp the true value upon each one of them. It
does not mean that Congress shall refuse to furnish the people of
the United States with an adequate coinage, and it does not mean
that a theoretical amount of un-coined metal shall be called a coin.
A coin is an object which may be seen and felt and even heard if one
tests the ring of it.
Mr. Chairman,
the gold bill attempts to cut out, delete, and destroy that part of
our great written Constitution pertaining to the power of Congress
to coin money and to regulate; that is, to stamp on the metal coin
the value thereof. The bill is unconstitutional on its face because
it seeks to nullify the Constitution. Moreover, it is a bill which
is contrary to the common law and to the law of custom upon which
the common law rests. It attempts to legalize robbery. It attempts
by force to deprive the people of the United States of their right
to the currency of the Constitution. It gives the international
bankers power to send the gold belonging to the people of the
United  States to a place of deposit reserved to themselves in
Europe. Mr.Chairman, the gold bill cannot become a valid law by any
constitutional means.
Now, Mr.
Chairman, let us look at the bill to see if the legal hirelings of
the Bank of England and their agents, the Federal Reserve Board and
the Federal Reserve banks, have been able to disguise its purpose.
Let us see if they were able to clothe the grisly skeleton of their
greed with echoes of glib religiosity, according to the fashion set
by the present administration. The first thing that meets my eye is
the title.

We read:

A bill
to protect the currency system of the United States, to provide for
a better use of the monetary gold stock of the United States, and
for other purposes.
It is indeed a bill to protect the
present currency system of the United States, but it is a bill to
protect it from the just wrath of United States citizens. It is a
bill to save for the Federal Reserve Board and the Federal Reserve
banks their gigantic monopoly of a special paper currency which they
steal from the Treasury and upon which they charge the people of the
United States a heavy toll of interest. It is indeed a bill to
provide for a better use of the monetary gold stock of the United
States if better use means the issuance of two sets of obligations
against one piece of security. It is indeed a bill for "other
purposes," and those are purposes which the proponents dare not
mention.
Among the purposes of the gold bill not
mentioned in the title is that of pretending to take into the
Treasury the gold now held by the Federal Reserve Board and the
Federal Reserve banks and a great effort has been made to have it
appear that the Federal Reserve banks are unwilling to surrender the
gold they now hold to the United States Treasury. This effort is
dishonest for two reasons. First, the Federal Reserve Board and the
Federal Reserve banks have already made a profit of some billions of
dollars out of the President's gold seizures and those billions were
stolen from the people of the United States; and, second, the
transfer is fictitious. The President sought to convince Members of
Congress that the Federal Reserve banks were resisting his efforts
to have the Treasury take possession of the gold, but one of the
members of the Federal Reserve Board spoiled that argument by
declaring that the Federal Reserve Board had asked the President to
have the Treasury take the gold.
You see, Mr.
Chairman, under this bill the United States Treasury has to pay for
the gold. Although the gold belongs to the people and was taken away
from their bank deposits and their cash registers and their
pocketbooks in the first place and put into the Federal Reserve
banks, and although the Federal Reserve banks tricked and fooled the
people into giving it to them for Federal Reserve currency, which
they now refuse to redeem, and although that gold does not belong to
the Federal Reserve Board and the Federal Reserve banks, the United
States Treasury has to pay the Federal Reserve Board and the Federal
Reserve banks for it. Well, how does this bill propose to pay the
Federal Reserve outfit, how does this bill provide that the
Government shall take over the stolen goods? It provides that the
United States
Government shall give the Federal Reserve
Board and the Federal Reserve banks new gold certificates to the
full value of the loot. The gold certificates will give the Federal
Reserve Board and the Federal Reserve banks legal title to the gold,
and the United States Treasury will be nothing more than its
physical custodian. The Secretary of the Treasury will give the
Federal Reserve banks gold for their new gold certificates whenever
they ask for it. It is a fraudulent transfer.

When
the individual citizens of the United States were required to
surrender their gold they were required to surrender their gold
certificates as well as their gold coin and bullion. The Federal
Reserve Board and the Federal Reserve banks are private
corporations, but they did not obey the gold orders. They did not
surrender any gold coin, gold certificates, or gold bullion. On the
contrary, the gold which was commandeered from the people was given
to them as a free gift, and now, after they have taken into their
possession all the gold belonging to the people they are ready to
make a pretended transfer of that gold to the Government. Evidently
there is law for the common man and no law for the Federal Reserve
Board and the Federal Reserve banks. The common man must toe the
mark, but the Federal Reserve Board and the Federal Reserve banks
are the agents of the Bank of England, and the law, it seems, does
not apply to them. Many of the officials of the Federal Reserve
outfit have had charges of impeachment brought against them, but
those charges have not been investigated.
The Federal
Reserve outfit now has in its possession gold coin, gold
certificates, and gold bullion. But this bill does not require them
to surrender their present holdings of gold certificates. After this
bill becomes law, if such a catastrophe should occur, the Federal
Reserve Board and the Federal Reserve banks will still hold their
present gold certificates. They may exchange those gold certificates
for gold between the time this bill becomes law and the day the
President makes his proposed devaluation proclamation. Is not this
gift of over $1,000,000,000 in gold a great treasure to bestow upon
the Federal Reserve Board and the Federal Reserve banks--the corrupt
and sinister organization which has bankrupted the country? Does
this not make favorites of the financial crooks who control
it?
Mr. Chairman, all the gold in the
possession of the Federal Reserve Board and the Federal Reserve
banks belongs to the people of the United States. During the last 20
years, under the vicious Federal Reserve Act, they have taken it
from the people in exchange for Federal Reserve currency and it has
not cost them one penny. Now they come forward to make a pretended
transfer of the people's gold coin and bullion to the United States
Treasury. Not one penny of the gold they pretend to transfer to the
United States Treasury is owned by them; every dollar of it belongs
to the individual citizens of the United States. The United States
Treasury is to buy it on credit and to pay for it with new gold
certificates. How does this transfer title to the United States
Treasury? Can the Congress lend itself to such a transaction? Last
May I stated that, in my opinion, the people's gold, unjustly
impounded in the Federal Reserve banks, should be placed in the
people's Treasury, but I did not state that it should be placed
there as the property of the Federal Reserve Board and the Federal
Reserve banks, to be withdrawn by them with gold certificates and to
made exportable from the United States Treasury to the Bank for
International Settlements in Europe. What this bill proposes to do
in connection with the President's message suggesting that this
United States gold may be sent to Europe to be kept in the Bank for
International Settlements with the loot of the central banks of
other countries is one of the greatest fiscal frauds in history. It
is one of the biggest swindles of all time.
Again, Mr.
Chairman, as you very well know, the Federal Reserve Board and the
Federal Reserve banks had paper currency outstanding to the extent
of about $5,000,000,000 when the present administration came into
power. That currency was redeemable in gold. It constituted the
people's title to all the gold held by the Federal Reserve outfit.
It constituted a first and paramount lien on all the assets of the
Federal Reserve Board and the Federal Reserve banks. Instead of
taking over the gold and the assets of the Federal Reserve Board and
the Federal
Reserve banks, including the great hoard
of United States wealth which they have hidden in foreign countries,
and honestly administering those assets for the benefit of the
people who had been defrauded by the Federal Reserve Board and the
Federal Reserve banks from their legal liability to redeem their
Federal Reserve currency in gold, or in lawful money convertible
into gold, and from the surrender of all their assets. Every dollar
that was unlawfully taken from the people of the United States by
Roosevelt's gold order was given to the Federal Reserve Board and
the Federal Reserve banks in preparation for this great steal, this
wholesale robbery of the masses for the benefit of the privileged
few. And now that American citizens have lost their gold, an
entirely fictitious transfer has been arranged to deceive the
people. Mr. Chairman, the President may underrate the mental
capacity of the American people as much as he likes, but I venture
to say there is no man in the United States so dumb that he cannot
understand how this bill tricks and deceives him.

The
Federal Reserve Board and the Federal Reserve banks have profited to
the extent of $5,000,000,000 or more by being released from their
obligation to redeem their outstanding $5,000,000,000 of paper
Federal Reserve currency in gold. They have profited by having had
over a billion dollars in gold certificates saved to them. They have
profited during the last 20 years by the criminality of the Federal
Reserve Board, which never charged them one penny in interest on the
great mass of Federal Reserve currency they have taken from the
Government. They have profited from their own wrongdoing by the
unlawful creation of fictitious claims against the United States
Government and the giving of those claims to foreigners, and they
have profited by their control of all the public revenues. And now
they come forward with a scheme to sell the gold they have taken
from the American people to the Treasury for new gold certificates
which will give them a legal title to that gold and permit them to
do as they please with it. An era of corruption is culminating in
one of the greatest crimes that has ever been perpetrated against
the people. Mark my words, Mr. Chairman, there will be trouble here
if this bill becomes law.
Why, Mr.
Chairman, this fiscal fraud, this crime is so stupendous that the
instigators and manipulators of it did not dare to have all the
transactions performed by one man. Each man did his part and then
got out of Washington pretending that he disagreed with the
President's money policy or pretending that he was ill. William H.
Woodin, who sat beside Albert H. Wiggin on the board of the Federal
Reserve Bank of New York and who acquiesced in and helped to
perpetrate the Financial misdeeds which bankrupted the country, is
now hiding in a western sanitarium. Dr. Sprague, the tool of the
international bankers and an employee of the Bank of England, was,
in my opinion, put into the Treasury to resign at a certain time and
to create uncertainty in the minds of the people by the manner of
his going and his subsequent articles pleading for sound money. Mr.
Chairman, all the bickering and the resignations and the artful
propaganda that has been thrown around the monetary policy of
Franklin D. Roosevelt cannot disguise the fact that he was selected
by the international bankers to carry on the work they started with
the great depression; that is, the pauperization of the masses and
the seizure of American property for their own use and benefit, and
that he has lent himself to their schemes by unconstitutionally
demanding and assuming the dictatorial powers which will enable him
to carry them out.
Another purpose of this bill not
mentioned in the title is the transference of a very large quantity
of United States gold to the Bank for International Settlements. One
of the chief objects of the gold policy of the present
administration is the sending of gold taken by force from its lawful
American owners to the Bank for International Settlements in Europe,
where it will be kept with the property of the central banks of the
world. According to the Hague convention, under which the Bank of
International Settlements was formed, gold deposited in the vaults
of the Bank for International Settlements is safe from seizure. Our
gold, when it goes there, will certainly be safe from seizure by the
United States. The Bank of International Settlements is dominated by
the Bank of England. It is not on American soil. It is in Europe.
American gold, therefore, will be kept in Europe. It will be placed
where none of the wage slaves of the United States will ever be able
to acquire any of it. It will be the capital and means of oppression
of that international super-state, that financial super-state, which
has been after Uncle Sam's gold money ever since the wealth of this
country attracted the attention of greedy European bankers and
brought them flocking over here to set up the suction pumps of the
Federal Reserve Board and the Federal Reserve banks.

The
Bank for International Settlements is an international bankers'
bank. It is a central bank of central banks. The international
bankers, who brought about the depression, have been drawing gold to
themselves from the common people of every land. It is their
intention to use that gold for their own purposes. They propose two
kinds of money. Gold--the real money--is what they intend to have
for themselves, and paper money, which has no intrinsic value in
itself, and which is made out of nothing and is worth nothing unless
it can be redeemed by the holder in gold--that is for the common
people, or, as they call us, the peasants.......

Franklin D. Roosevelt, the high priest of repudiation, the apostle
of irredeemable paper money, and the man who intends to send United
States gold out of the United States to a place where no American
citizen can claim it, this Franklin D. Roosevelt characterizes all
those who do not agree with his monetary policy as mules. If that is
true, what an awful mule President Woodrow Wilson must have been.
Concerning Andrew Jackson, Wilson said:
"He had no idea
of allowing the country to undertake the fatal experiment of an
irredeemable paper currency."
This is the
fatal experiment Franklin D. Roosevelt has undertaken. This is a
part of his policy of "bold experimentation." Not long ago he told
the people at Savannah that George Washington, like himself, was an
experimenter. Mr. Chairman, there are no points of resemblance
between George Washington and Franklin D. Roosevelt, experimental or
otherwise. George Washington did not take orders from money
changers. He did not rob the people of their gold. George Washington
abhorred dishonor in all its forms. He would have died before he
would have violated his oath of office or tampered with the
Constitution of the United States in the manner of Franklin D.
Roosevelt. * * *
Now, Mr. Chairman, let us hear the true
purpose of the $2,000,000,000 fund which this bill proposes to set
up. I quote from the prophecies of Henry Morgenthau, Mr. Baruch's
Secretary of the United States Treasury, as shown by the following
article which appeared in the Washington Times of January 16,
1934:

Treasury Sees United
States Need of Blue Chips

"When
you play poker you want just as many blue chips as the other
fellow.

"That,
in a man's language, was the gist of Secretary Morgenthau's summing
up of the Roosevelt proposal for a $2,000,000,000 stabilization fund
to protect the currency of the United States.

"In
other words, the American Government is engaged in probably the
greatest gamble of all time. The stake is the credit of the United
States.

"To Equal
British

"When
asked why a figure of 2,000 millions for the stabilization fund had
been asked, Morgenthau said:
"`We figured we
might need an amount substantially equal to the British
stabilization fund.
"`If we are going to play, we must have
as many chips as the other fellow.
"`We want every
piece of machinery the other countries have. We want to be in a
position to buy gold and to sell gold.'
"The
2,000-million stabilization fund will be derived from the
Government's profit on the debasing of the value of the dollar to
from 50 to 60 percent of the normal valuation.

"Fund From
Profits

"If the
debasement is 50 per cent, the profit to the Government will be
$4,000,000,000 in round numbers. A 60-cent dollar will mean about
2,666 millions in profits.
"Out of these
profits will come the stabilization fund to be administered by the
Secretary of the Treasury, the remainder being available for any
Government expenditure. Morgenthau said:
"`It is possible
that the mere existence of the fund will be sufficient to carry out
the law which requires that the Secretary of the Treasury maintain
all lawful money of the Government on parity with
gold.'
"The Secretary of the Treasury is charged
with the responsibility of administration of the fund to carry out
that purpose. If any particular type of currency issued--United
States notes, for instance--should become depreciated in value, the
Treasury would go into the market and buy a sufficient quantity of
that currency to maintain its parity. Operations in the foreign
markets to protect possible depreciation of the dollar would be
similar."
Let this quotation from Morgenthau go
down into history. Long from now some curious investigator of the
present age of witchcraft and magic in the White House may unearth
it and reconstruct the financial history of the "new deal" from it,
as science from a single part reconstructs the entire
animal.
Mr. Chairman, it is not the gambler's
voice in Mr. Morgenthau's confession which most deserves political
attention. We are becoming accustomed here to gambling terms as they
are employed by the executive branch of the Government, and we can
well understand that the Executive and his favorites must of
necessity speak the lingo of their kind. This is a gambler's
administration, and all the "big shot" gamblers are here to revel in
it. Mr. Roosevelt does not deny his gambling propensities. He is a
"new dealer." He is "on his way," but he "doesn't know where he is
going." He is for a policy of "bold experimentation," just as Samuel
Insull was for a policy of bold experimentation. He has not been Ben
Smith's patron all these years for nothing. But, Mr. Chairman, there
is something apart from the vice of gambling to be observed in Mr.
Morgenthau's utterance, and that is its entire untruthfulness. He
would have us believe that the United States is on one side of the
fence and Great Britain on the other. That, of course, is not the
case. THE UNITED STATES HAS BEEN PLACED IN A POSITION OF FINANCIAL
SERVITUDE TO GREAT BRITAIN, and Mr. Morgenthau's loud-sounding
propaganda is designed to conceal that fact from the people. Great
pains have been taken to conceal it. It would be very damaging to
this administration if certain people in the United
States should find out about
the great sums of United States money which have been sent to
England during the past summer. Those funds were appropriated by the
Congress for the people of the United States.

MR.
CHAIRMAN, WHY SHOULD TAX MONEY PAID BY AMERICAN CITIZENS BE SENT TO LONDON? When
England makes her periodical gesture of insult toward the United
States by paying a small installment on the war debt she owes us, she pays
us in debased coins, in "token" coins, to be exact. But when Mr.
Roosevelt sends American money to England he sends it in gold or its
equivalent. When Mr. Morgenthau obtains his "kitty," for this, I
have been told, is what he called the proposed stabilization fund at
the White House a week ago last Sunday evening, American funds will
be fed to Europe more expeditiously and with less secrecy than such
operations now require. If Congress puts the people's property into
a "kitty," someone, if he cannot by the knight of the bedchamber,
can at least pose before royalty as the knight of the
"kitty."
Mr. Chairman, understanding that Henry
Morgenthau is related by marriage to Herbert Lehman, Jewish Governor
of the State of New York, and is related by marriage or otherwise to
the Seligmans, of the international Jewish firm of J. & W.
Seligman, who were publicly shown before a Senate committee of
investigation to have offered a bribe to a foreign government; and
to the Lewissohns, a firm of Jewish international bankers; and to
the Warburgs, whose operations through Kuhn, Loeb & Co., the
International Acceptance Bank, and the Bank of Manhattan Co. and
other foreign and domestic institutions under their control, have
drained billions of dollars out of the United
States  Treasury and the bank deposits belonging to the United
States citizens; and to the Strauses, proprietors of R. H. Macy
& Co., of New York, which is an outlet for foreign goods dumped
upon this country at the expense of the United States Government,
which is compelled to issue paper money on the said foreign goods of
the Strauses; and that Mr. Morgenthau is likewise related or
otherwise connected with various other members of the Jewish banking
community of New York and London, Amsterdam, and other foreign
financial centers, and that he has as his assistant, presiding over
public funds, Earle Bailie, a member of the firm of J. & W.
Seligman, bribe givers as aforesaid, it seems to me
that Henry Morgenthau's
presence in the United States Treasury and the request that Congress now
give him a $2,000,000,000 "kitty" of the people's money for gambling
purposes is a striking confirmation of the statement made by me on
the floor of the House on May 29, 1933, which statement was as
follows:
"*
* * Now, Mr. Chairman, we have come to the place where we must
decide whether we shall serve God or Mammon. Shall we nullify the
Constitution at the behest of the moneychangers who have unlawfully
taken all our gold and lawful money into their own possession or
shall we take a stand here in defense of the faith of our fathers?
Mr. Chairman, my mind is made up. I will stand by the Constitution.
If I should fail to do so, I should expect to be met at the train
when I go home to my district by a delegation of honest Pennsylvania
citizens with 50 or 100 feet of rope. I should expect to be escorted
to the nearest tree to be taught what it means to vote for a
nullification of the Constitution in the House of
Representatives.
"Mr. Chairman, the provisions of this
repudiation bill were foretold by a writer in the Dearborn
Independent some years ago. There is, therefore, nothing novel or
original about them. The writer of the article in the Dearborn
Independent made the following quotation prophesying some of the
measures which have been introduced here by the President of the
United States:
"`(2) Confiscation of money in order to
regulate its circulation.
"`(3) We must
introduce a unit of exchange based on the value of labor units,
regardless of whether paper or wood is used as the medium. We will
issue money to meet the normal demands of every subject, adding a
total sum for every birth and decreasing the total amount for every
death.
"`(4) Commercial paper will be bought by
the Government, which * * * will grant loans on a business basis. A
measure of this character will prevent the stagnation of money,
parasitism, and laziness, qualities which were useful to us as long
as the Gentiles maintained their independence, but which are not
desirable to us when our kingdom comes.
"`(5) We will
replace stock exchanges by great Government credit institutions, whose
functions will be to tax trade paper according to Government
regulations. These institutions will be in such a position that they may
market or buy as many as half a billion industrial shares a day.
Thus all industrial undertakings will become dependent on us. You may well
imagine what
power that will give us.
"`" Remember
that when next you hear the Jewish plan that `Gentiles' shall do
business with their own bits of paper, while Jews keep the gold
reserve safely in their own hands. If the crash comes, `Gentiles'
have the paper and the Jews have the gold.
Says protocol
XXII: We hold in our hands the greatest modern power--gold; in 2
days we could free it from our treasuries in any desired
quantities."'
"`The Jews are economists, esoteric and
exoteric: They have one system to tangle up the "Gentile," another
which they hope to install when "Gentile" stupidity has bankrupted
the world. The Jews are economists. Note the number of them who
teach economics in the State universities.
Says protocol VIII:

"`"We
will surround our Government with a whole world
of  economists. It is for this reason that the science of
economics is the chief subject of instruction taught by the
Jews."'
"Mr. Chairman, have not most of these
predictions come to pass? Is it not true that, in the United States
today, the `Gentiles' have the slips of paper while the Jews have
the gold and lawful money? And is not this repudiation bill, a bill
specifically designed and written by the Jewish international
moneychangers themselves, in order to perpetuate their power? What
else do you make of it, Mr. Chairman? Does it not cancel the war
debts? Does it not defraud the holders of Liberty bonds and every
other obligation calling for the payment of money? Does it not
defraud the veterans of the World War and take the
value out of their
adjusted--compensation certificates?
Mr. Chairman, do
you not see in this "kitty" bill the identical features outlined in
the Protocols of Zion? Do you not see the Protocols of Zion
manifested in the appointment of Henry Morgenthau as Secretary of
the Treasury? It is not by accident, is it, that a representative
and a relative of the money Jews of Wall Street and foreign parts
has been so elevated?
Why, Mr.
Chairman, this "kitty" bill takes the hitherto obscure young Henry
Morgenthau and makes of him a central bank of the United States. It
makes of him a central bank, an institution which Jefferson declared
is one of deadly hostility to the free institutions of the United
States. It exalts him above all other men. Under the powers to be
granted him, his conduct is not subject to review or control by any
other officer of the United States Government, not even the
President.
What this "kitty" bill really does is to
slide into the hands of Henry Morgenthau the emergency powers which
Congress granted to the President. Those powers which Congress
granted to the President. Those powers will not lapse. Instead, they
are being slyly and dishonestly transferred to the bankers and after
the bankers, in the person of Henry Morgenthau, have exercised them
long enough to get the gold of the United States into their
exclusive possession and to transfer it to their den of thieves, the
Bank for International Settlements, Congress may take back its
constitutional power over the monetary gold of the people of the
United States will, like the sons of the people, be buried in a
foreign field.
MR. CHAIRMAN, IF YOU, AS ONE OF THE PARTY
IN POWER, ARE THINKING OF REMAKING THE WORLD SO THAT THE OLD AMERICA
WE KNEW AND LOVED IS TO BE NO MORE; IF YOU ARE ONE OF THOSE WHO IS
COUNTENANCING THE PLACING OF THIS COUNTRY UNDER THE BRITISH CROWN
AND THE POOLING OF ALL AMERICAN RESOURCES WITH THOSE OF ENGLAND AND
SOVIET RUSSIA; IF YOU ARE ONE OF THOSE TO WHOM A TITLE OF NOBILITY
APPEARS TO BE MORE DESIRABLE THAN PLAIN CITIZENSHIP IN THE REPUBLIC
FOUNDED BY GEORGE WASHINGTON, I trust that you will some day descend
from the Speaker's chair and let us know the reasons for your
preference. If, on the other hand, you are not what these words depict, I trust
that you will come down to the floor and tell us how constitutional
government is to be maintained in this country if the plutocratic
managers of the Democratic Party continue their efforts to destroy
it. You, if anyone, should be able to give the people of the United
States an answer to this question.
UNDER THIS
ADMINISTRATION THE RESULT OF THE AMERICAN REVOLUTION HAS BEEN
REVERSED. THE UNITED STATES HAS BECOME AN ECONOMIC VASSAL OF GREAT
BRITAIN. The once proud Republic of the United States with its great
charter of human freedom, the Declaration of Independence, and its
written Constitution, which had kept it free and independent for
over 140 years, and its flag, first made by the hands of Betsy Ross
in Philadelphia, and its national anthem, born within earshot of the
British guns that shelled Fort McHenry--all these, like the American
dollar, were brought down from their high estate.

"Oh say, can you see by
the dawn's early light
What so proudly we hailed at the
twilight's last
gleaming?"

"MR.
CHAIRMAN, YOU KNOW VERY WELL THAT YOU CANNOT SEE THAT FLAG THERE AS
IT USED TO BE. OTHERS STARTED VERY CAUTIOUSLY TO PULL IT DOWN. BUT
IT WAS FRANKLIN D. ROOSEVELT, IN HIS UNLAWFUL AND UNCONSTITUTIONAL
ASSUMPTION OF DICTATORIAL POWERS, WHO FINALLY LOWERED IT AND TORE IT
FROM ITS STANDARD."
Now that the "Gold Bill" is explained and
the reader knows why he "turned in" his gold, and what became of it,
what about that "Soldiers' Bonus" we used to hear so much about?
Have our Congressmen forgotten the "boys" that "made the world safe
for democracy," or was it safe for the Money Changers? We, as a
nation, are pledged by law to pay them their "bonus" or
"compensation" certificates in 1945, and they surely need it now if
they ever will! Will the reader please remember how President
Lincoln issued sixty million dollars in Full Legal
Tender
"Greenbacks" and paid his soldiers!

Would
the reader like some real authority on this subject? Then listen to
Robert H. Hemphill, financial authority and editorial writer on
financial matters in the Hearst papers and a really profound student
on such matters. Writing in the Hearst papers of March 17, 1934, Mr.
Hemphill has the following to say:

"Sound
Money"

"During
the month of February, 1934, we imported $371,347,100 in
gold.
"We paid for it with `fiat' money.
Treasury notes of the United States; `printing press money'; `paper
money'; `greenbacks'; irredeemable in gold, silver or any specific
metal; lawful money of the United States--`fiat' money in every
sense of the word.
"We have now no other kind of
currency.
"It is the best money in the
world.
"Despite the unlimited quantity offered
in exchange for gold, and the treat inherent in our huge secret
stabilization fund, it has been so far almost impossible to prevent
our `fiat' money from commanding a constant premium over its
theoretical par in exchange for the most prized possession of
European Nations--their gold.
"It is very
important to remember this.
"We are rapidly
approaching a situation where the government MUST issue additional
currency.
"It will very soon be the only move
remaining.
"IT SHOULD HAVE BEEN THE FIRST STEP IN
THE RECOVERY PROGRAM.
"Immediately
upon a revival of the demand that the government increase the supply
of currency, we shall again be subjected to a barrage of skillfully
designed and cunningly circulated propaganda by means of which a
small group of international bankers have been able, for two
centuries to frighten the peoples of the civilized would against
issuing their own good money in sufficient quantities to carry on
their necessary commerce.
"By this simple,
but amazingly successful device these `money changers'--parasites in
a busy world intent on creating and exchanging wealth--have been
able to preserve for their private and exclusive right the monopoly
of manufacturing an inferior substitute for money which they have
hypnotized civilized nations into using, because of their pressing
need to exchange goods and services.
"We shall never
recover on credit. Even if it were obtainable, it is uncertain,
unreliable, does not expand in accordance with demand, and contracts
unexpectedly and for causes unrelated to the needs of commerce and
industry.
"Demand deposits cannot be loaned to
commerce and industry.
"Many bankers
have known this for a long time.
"It required
this depression and the complete freezing of the whole banking
system to teach the rest, but with a very few exceptions, they have
all learned.
"I am convinced that the NRA experiment
is running into a jam. It has developed into a wholly different
doctrine than the original conception.
"Having failed
to stimulate recovery, the present idea is to distribute nonexistent
profits form one group to another.
"Under any
system of reasoning, the purchasing power, however, will remain the
same.
"Instead of providing for expansion,
which means the creation and exchange of more wealth, its underlying
philosophy is the creation and exchange of less
wealth.
"It is difficult to believe adult human
beings at any stages in the development of civilization could be led
into serious consideration of a system founded on such an absurd
doctrine.
"We need in circulation $250.00 per
capita in permanent un-contractible currency, deposited in
depositaries and payable on demand, to sustain the standard of
living to which we had arrived in 1927-29, to pay the then
prevailing prices, wages and costs; to produce incomes and restore
the property values of that period.
"It makes no
difference how this currency is put into circulation. We are all
producers and we are likewise all consumers; each one of us buys
from all of the others.
"If one thousand
million of new currency is thrown into circulation anywhere in the
system, it becomes almost immediately distributed throughout the
nation.
"It increases the transactions of the
nation an average of 36,000 millions per year, and because we all
buy the same things in the same order of preference, our business
increases in the normal manner, first the necessities of life, next
the necessary luxuries, and lastly capital goods.

"We
are all so anxious to produce and trade our products, our goods and
our services, with our neighbors, that we will accept almost any
kind of money which we have a fair chance ofpassing on for the
things we want.
"In our present situation the issue of
additional currency is the only way out."
Is there any
good reason that Congress cannot or should not do this now?--or pass
a bill to "remonetize" silver? Is there any reason why that should
not be done either?
Yes, dear reader, there is, and that
reason is--"The control of our whole country by the Foreign Money
Changers through the Federal Reserve System of Banks, that have the
power to issue unlimited amounts of their own "greenbacks"
redeemable by our government, and to withhold loans and call loans
and inflate and deflate the currency and the country at their own
pleasure and for their own profit!!
How long, OH GOD
WILL THE AMERICAN PEOPLE STAND FOR SUCH A CONDITION; when all they
need is a safe, sane, reasonable plan of economic security and
"United Action" to put it into operation?

After
this Country was forced into bankruptcy (financial slavery), war was
declared on the American people. This Country has been destroyed
from within first by taking over its finances and then the taking
over and possession of the United States government. The Presidency
was taken over when President Franklin Roosevelt was elected.
Through him the banks were able to declare war on the American
people and enslave them through the social programs that were
enacted by Congress. Congress went along to get along, the majority
of these men were lawyers and they sold out the American
people.

Because
voting is a privilege and not a right and proves
your membership in the
metaphorical term, United States Corporation; Congress had the legal
right, but not the moral right to enact legislation that made every
American that voted for that Congress a "alien enemy", which is a
legal term. Which simply means that you have been declared an enemy
of the United States and the Bankers, because the citizens of 1933
voted in the government officials that took this action and because
of association they were responsible. However, according to the law
the children of these Americans (alien enemies) have the right to
remain alien enemies or could elect to no longer be an alien enemy.
To remain an alien enemy means to continue
receiving  benefits given by the government, to see what these benefits
are, re-read A
Country Defeated In Victory, part 1. To discontinue being a alien
enemy means to stop taking the government's benefits. Now, will this
rejection of benefits stop the government from forcing you to be a
slave? This is doubtful, because the men that created the conditions
of your slavery still wish you to be a slave. Their purpose is to
establish a one world government. These men and those that replaced
them are still in power and control every aspect of your life. They
will not give up a slave just because the slave no longer wishes to
be a slave. So what is the purpose of resisting your enslavement?
Should we do as Congress did and go along to get along? Let me ask
you this; did our anti-federalist fore fathers give in for financial
comfort? No! If you believe in God Almighty and have received the
redemptive blood of Jesus Christ His Son, and you also believe that
the Bible is the living Word of God Almighty.

You
also must know that it is not possible to serve to
Masters.
Either you serve God Almighty or man.
Jesus said in Revelation 20:4: "....Those who had not worshiped the
beast or his image, and had not received the mark upon their
forehead and upon their hand; and they came to life and reigned with
Christ for a thousand years." The reward for rejecting Babylon and
the mark of the beast is to reign with Jesus Christ for 1000 years.
So, if you choose to be an alien enemy be aware that there are
consequences to your actions. The legal term "alien enemies" is
defined in the following pages.

The following is a quote
from Congressman James Beck:
"I think of all
the damnable heresies that have ever been suggested in connection
with the Constitution, the doctrine of emergency is the worst. It
means that when Congress declares an emergency there is no
Constitution. This means its death....But the Constitution of the
United States, as a restraining influence in keeping the federal
government within the carefully prescribed channels of power, is
moribund, if not dead. We are witnessing its death agonies, for when
this bill becomes a law, if unhappily it becomes law, there is no
longer any workable Constitution to keep the Congress within the
limits of its constitutional powers." (Congressman James Beck in
Congressional Record 1933)

The
following are excerpts from the Senate Report, 93rd
Congress, November 19, 1973, Special Committee On The Termination Of
The National Emergency United States Senate.

Since
March 9, 1933, the United States has been in a state of declared
national emergency....Under the powers delegated by these statutes,
the President may: seize property; organize and control the means of
production; seize commodities; assign military forces abroad;
institute martial law; seize and control all transportation and
communication; regulate the operation of private enterprise;
restrict travel; and, in a plethora of particular ways, control the
lives of all American citizens.

A
majority of the people of the United States have lived all of their
lives under emergency rule. For 40 years, freedoms and governmental
procedures guaranteed by the Constitution have, in varying degrees,
been abridged by laws brought into force by states of national
emergency....from, at least, the Civil War in important ways shaped
the present phenomenon of a permanent state of national
emergency.

In
Title 12, in section 95b you'll find the following codification of
the emergency war powers: The actions, regulations, rules, licenses,
orders and proclamations heretofore or hereafter taken, promulgated,
made, or issued by the President of the United States or the
Secretary of the Treasury since March 4, 1933, pursuant to the
authority conferred by subsection (b) of section 5 of the Act of
October 6, 1917, as amended (12 USCS, 95a), are hereby approved and
confirmed. (March 9, 1933, c. 1, Title 1, 1, 48 Stat.
1)

In the
War Powers Act of 1917, Chapter 106, Section 2 (c) it says that
these declared war powers did not effect citizens of the United
States: Such other individuals, or body or class of individuals, as
may be natives, citizens, or subjects of any nation with which the
United States is at war, OTHER THAN CITIZENS OF THE UNITED STATES,
wherever resident or wherever doing business, as the President, if
he shall find the safety of the United States of the successful
prosecution of the war shall so require, may, by proclamation,
include within the term "enemy."

The
declared National Emergency of March 9, 1933 amended the War Powers
Act to include the American People as enemies. In Title 1, Section 1
it says: The actions, regulations, rules, licenses, orders and
proclamations heretofore or hereafter taken, promulgated, made, or
issued by the President of the United States or the Secretary of the
Treasury since March 4, 1933, pursuant to the authority conferred by
subdivision (b) of section 5 of the Act of October 6, 1917, as
amended, are hereby approved and confirmed.

Section
2. Subdivision (b) of section 5 of the Act of October 6, 1917, (40
Stat. L. 411), as amended, is hereby amended to read as follows:
emergency declared by the President, the President may, through any
agency that he may designate, or otherwise, investigate, regulate,
or prohibit, under such rules and regulations as he may prescribe,
by means of licenses or otherwise, any transactions in foreign
exchange, transfers of credit between or payments by banking
institutions as defined by the President, and export, hoarding,
melting, or earmarking of gold or silver coin or bullion or
currency, BY ANY PERSON WITHIN THE UNITED STATES OR ANY PLACE
SUBJECT TO THE JURISDICTION THEREOF.

The
phrase, subject to the jurisdiction thereof is defined in
Ballentine's Law Dictionary, it says: A phrase made familiar by
inclusion in the Fourteenth Amendment.

As
these words are used in the first section of the Fourteenth
Amendment of the Federal Constitution, providing for the citizenship
of all persons born or naturalized in the United States and subject
to the jurisdiction thereof, the purpose would appear to have been
to exclude by the fewest words (besides children of members of the
Indian tribes, standing in a peculiar relation to the National
Government, unknown to the common Law), the two classes of cases,
children born of *ALIEN ENEMIES(emphases mine), in hostile occupation, and children
of diplomatic
representatives of a foreign state, both of which, by
the law of England and by our
own law, from the time of the first settlement of the English
colonies in America, had been recognized exceptions to the
fundamental rule of citizenship by birth within the country. United
States v Wong Kim Ark, 169 US 649, 682, 42 L Ed 890, 902, 18 S Ct
456.

The
phrase Alien Enemy is defined in Bouvier's Law Dictionary as: One
who owes allegiance to the adverse belligerent. 1 Kent
73.

He who
owes a temporary but not a permanent allegiance is an alien enemy in
respect to acts done during such temporary allegiance only; and when
his allegiance terminates, his hostile character terminates also; 1
B. & P. 163.

Alien
enemies are said to have no rights, no privileges, unless by the
king's special favor, during time of war; 1 Bla. Com. 372;
Bynkershoek 195; 8 Term 166. [Remember we've been under a declared
state of war since October 6, 1917, and amended March 9, 1933 to
include every United States citizen.

The
phrase Alien Enemy is defined in Words and Phrases as: Residence of
person in territory of nation at war with United States was
sufficient to characterize him as "alien enemy" within Trading with
the Enemy Act, even if he had acquired and retained American
citizenship. Matarrese v. Matarrese, 59 A.2d 262, 265,
142 N.J. Eq.
226.

Residence or doing business in a hostile territory is the test of an
"alien enemy: within meaning of Trading with the Enemy Act and
Executive Orders thereunder. Executive Order March 11, 1942, No.
9095, as amended, 50 U.S.C.A. Appendix 6; Trading with the Enemy Act
5 (b). In re Oneida Nat. Bank & Trust Co. of Utica, 53 N.Y.S.
2d. 416, 420, 421, 183 Misc. 374.

"By the
modern phrase, a man who resides under the allegiance and protection
of a hostile state for commercial purposes is to be considered to
all civil purposes as much an `alien enemy' as if he were born
there." Hutchinson v. Brock, 11 Mass. 119, 122.

The
author of the following is not known, I add it because
it is appropriate end to this
paper.

SECRET KNOWLEDGE AS THE
KEY TO POWER

By
embracing deception whole-heartedly at every level, finance
capitalism, or rule through money, has fashioned the ultimate system
yet devised for the secure exercise of power. The hidden masters of
finance capitalism control those who head governments and those who
head manufacturing. Dominance in all aspects of society is
surreptitiously accomplished while the great majority of the ruled,
and even most of the visible leaders, believe themselves to be
fairly autonomous. Throughout history, secure ruling elites arise
through secret knowledge which they carefully guard and withhold
from outsiders. The power of such elites or cults diminishes as
their hidden knowledge is undermined by truths gained by independent
scientific investigation and vanishes as soon as it becomes common
sense. Before analyzing the secrets of the finance capitalist money
cult, let's look for historical perspective in occult astronomy, the
oldest source of stable rule known to man, of which astrology is the
remnant.

As soon
as men abandoned the life of wandering hunters to till the soil,
they needed to predict the seasons. Such knowledge was required in
order to know when to plant, when to expect floods in fertile
valleys, when to expect rainy seasons, and so forth. Months of
backbreaking plowing and planning could be wasted by farming the
land at the wrong times. There were no calendars. The men who first
studied and grasped the regularities of sun, moon, and stars that
presage the seasons had a valuable commodity to sell, and they
milked it to the fullest at the expense of their credulous
fellowmen. The occult priesthoods of early astronomers and
mathematicians convinced  their subjects that they alone had
contact with the gods, and thus, they alone could assure the return
of planting seasons and weather favorable to bountiful harvest. The
predicting of solar and lunar eclipses was particularly effective
when staged to awe the community. The general success resulting from
following the priesthood's timetables for planting insured the
priesthood's power. Today's Christmas holiday season continues the
tradition set by ancient priesthoods who conducted rituals on the
winter solstice to reverse the retreat of the sun from the sky.
Their invariable success was followed by wild celebrations. Popular
knowledge of seasonal regularities was discouraged by every manner
of mysticism and outlandish ritual imaginable. Failures in
prediction were blamed on sins of the people and used to justify
intensified oppression. For centuries, people who had literally no
idea of the number of days between seasons, and couldn't count anyway, cheerfully
gave up a portion of their harvests, as well as their most beautiful
daughters, to their "faithful servants" in the
priesthoods.

The
power of our finance capitalist money system rests on a similar
secret knowledge, primarily in the field of economics. Our power is
weakened by real advance in economic science. Fortunately for us,
the public at large, government leaders, and most revolutionaries
remain totally ignorant of economy. However, we who are the
established money lords have been able to prolong our control by
systematically corrupting economic science with fallacious and
spurious doctrines. Through our power in the universities and over
the mass media, we have been able to reward the sincere professorial
cranks whose spurious doctrines happen to rationalize, in terms of
"common good", the government-supported institutions, laws, and
economic measures upon which our money powers depend. Keynesianism
is the highest form of phony economics yet developed to our benefit.
The highly centralized, mixed economy resulting from the policies
advocated  by Lord Keynes for promoting" prosperity" has all the
characteristics required to make our rule invulnerable to our twin
nemeses: real private competition in the economic arena and real
democratic process in the political arena. Laissez faire or
free-market, classical economics was our original attempt to corrupt
economic science. Its beautiful internal consistency blinded
economists for many years to the fact that it had virtually nothing
to do with current reality. However, we are so powerful today that
it is no longer possible to conceal our imposing institutions with
the appearances of free competition. Keynesianism rationalizes the
omnipotent state, which we require, while retaining the privileges
of private property on which our power ultimately rests. Although
the interim reforms advocated  by Marx in his Communist Manifesto
such as central banking, income tax and other centralizing measures
can be corrupted to coincide exactly with our requirements, we no
longer allow Marxist movements major power in developed countries.
Our coercive institutions are already in place. Any real steps
toward communism would mean our downfall. Of course, phony Marxism
is an excellent ideological veil by which to cloak our
puppet dictators in
underdeveloped areas of the world.

Secondarily, the power of the money lord rests on secret knowledge
in the areas of politics and history. We have quite successfully
corrupted these sciences. Although many people are familiar with our
secrets through such books as 1984 by the disillusioned George
Orwell, few take them seriously and usually dismiss such ideas as
paranoia. Since real politics is motivated by individual
self-interest, history is viewed most accurately as a struggle for
power and wealth. We do our best to obscure this self-evident truth
by popularizing the theory that history is made by the impersonal
struggles between ideas, political systems, ideologies, races and
classes. Through systematic infiltration of all major intellectual,
political, and ideological organizations, using the lure of
financial support and instant publicity, we have been able to set
the limits of public debate within the ideological requirements of
our money power.

The
so-called Left-Right political spectrum is our creation. In fact, it
accurately reflects our careful, artificial polarization of the
population on phony issues that prevents the issue of our power from
arising in their minds. The Left supports civil liberties and
opposes economic or entrepreneurial liberty. The Right supports
economic liberty and opposes civil liberty. Of course, neither can
exist fully without the other. Our goal is to control the Left-Right
conflict such that both forms of liberty are suppressed to the
degree that we require. Our own liberty rests not on legal or moral
rights, but on our control of the government bureaucracy and courts
which apply the complex, subjective regulations we dupe the public
into supporting for our own benefit.

Innumerable meaningless conflicts to divert the attention of the
public from our operations find fertile ground in the bitter hatreds
of the Left-Right imbroglio. Right and Left are irreconcilable on
racial policy, treatment of criminals, law enforcement, pornography,
foreign policy, women's lib, and censorship, to name just a few
issues. We generally do not take sides in these issues. Instead we
attempt to prolong the conflicts by supporting both sides as
required. War, of course, is the ultimate diversionary conflict and
serves to enlarge our power and wealth. War provides the perfect
cover of emergency and crisis behind which we consolidate our power.
Since nuclear war presents dangers even to us, more and more we have
resorted to economic crises, energy shortages, ecological hysteria,
and managed political drama to fill the gap. Meaningless brushfire
wars, though, remain useful and profitable.

We
promote phony free enterprise on the Right and phony democratic
socialism on the Left in all the nations we control. Thus, we obtain
a "free enterprise" whose "competition" is carefully regulated by
the bureaucracy we control and whose nationalized enterprises are
controlled through the governments we direct. In this way we
maintain a society in which the basis of our power - legal titles to
property and money - remain secure while the peril of free,
unregulated competition is avoided and popular sovereignty is
nullified. The democratic process is a sitting duck for our money
power. Invariably, we determine the candidates of the major parties
and then proceed to pick the winners. Any attempts at campaign
reforms simply put the rules of the game more firmly under our
governments' control.

Totalitarianism of the fascist or communist varieties is no danger
to us as long as bastions of private property remain to serve as our
bases of operation. Totalitarian governments of both Right and Left,
because of the vulnerability of their highly visible leaders to
party rivals, can be manipulated easily from abroad. Primarily,
totalitarian dictatorships efficiently prevent new money lords who
could challenge our power from arising in whole continents,
civilizations, and races.

ECONOMICS OF CENTRAL
BANKING

Since
division of labor is the key to all human achievement and
satisfaction, a system of exchange is crucial. Barter is hopelessly
complicated. A command economy in which each is told what to do and
how he will be compensated is also hopelessly cumbersome and fails
to take advantage of individual initiative, ability and concrete
knowledge. A medium of exchange - money - is the obvious
solution.

When
left to themselves, people of a given geographical area settled upon
a durable luxury commodity, usually gold or silver, to use as money.
Because money is a store of value as well as a medium of exchange,
people saved part of their gold income rather than spending it all.
This gold was often stored in the vaults of a local goldsmith - the
precursor of the modern banker - for safekeeping. The depositor
received a receipt that entitled him to an equal quantity and
quality of gold on demand from the goldsmith. This receipt could be
negotiable by endorsing it over to a seller of goods who in turn
could exchange the receipt for gold from the goldsmith. Either the
receipt or the gold served as money, and the receipt was easier to
carry than transporting the gold it represented. Moreover, the
receipt was useless to a thief without the endorsing signature. At
some point, a goldsmith realized that there was no reason he couldn't loan
out some of the gold for interest as long as he kept gold on hand
sufficient to meet the fairly predictable withdrawal rate. After
all, he simply promised to pay on demand, not hold the gold as such.
Better yet, he could simply issue more receipts for gold than he had
gold on hand, and the receipts, renamed notes, could circulate
freely among the populace as money.

However, he soon found that there was a definite limit set on this
process by reality. Not all the extra notes he issued circulated
forever among the public. The rate of note redemption began to
increase rapidly as the receipts passed into the hands of people
unfamiliar with his reputation and especially when competitive
goldsmiths, always eager for more gold reserves, came into
possession of his notes. To prevent a disastrous run on his gold
reserves, note issuance had to be kept within bounds. But the
spending power of over-issuance was a grave temptation. Especially
relished was the power over government, industry, and merchants that
the miraculous loan power of the goldsmith could obtain. Many
succumbed to temptation, overextended themselves, and brought ruin
to their depositors while others slowly became wealthy bankers by
pursuing conservative loan policies.

According to present-day "reasoning", Central Banks are instituted
to protect the public from periodic financial catastrophe at the
hands of unscrupulous fractional-reserve bankers. The excuse given
as "protection" is far from the truth. Central banks are established
to remove the limitation on over-issuance that reality normally
places on a competitive banking system. As early as ancient Babylon
and India, central banking, the art of monopolizing the issuance of
money had been developed into a perfect method for looting the general
public. Even today, many bankers copy the traditions of the earlier
exploitive priesthoods and design their banks to resemble temples.
Defenses of central banking are simply part of the deception that
lies at the heart of all power elites.

Let's
look at the way a new central bank is created where none had existed
previously. We bankers approach the king or ruling assembly - both
of whom always want more money to fight wars or curry favor with the
people and, typically, are ignorant of economics - with a compelling
proposal: "Grant our bank a national charter to regulate private
banking and to issue legal tender notes, that is, force our notes to
be accepted as payment for all debts, public and private. In
exchange, we will provide the government all the notes it prudently
requires at interest rates easily payable out of existing taxes. The
increased government purchasing power thus created will
simultaneously assure the power and prestige of the currently
precarious nation and stimulate the sluggish, credit-starved economy
to new heights of prosperity. Most important, the violent banking
panics and credit collapses caused by unscrupulous private bankers
will be replaced by our even handed, beneficent and scientific
management of money and banking. Our public-spirited expertise will
be at the disposal of the state, while we retain independent enough
of momentary political pressures to assure sound
"management".

For a
while, this system seems to work remarkably well with full
employment for everyone. The government and public does not notice
that we issuers of the new notes are using the notes we create out
of thin air to surreptitiously build economic empires at he expense
of established interests. Because of the legal tender laws, few of
the new notes issued by the Central Bank are returned or redemption
in gold. In fact, private banks and even a few foreign banks may
begin to use the central bank's notes as reserves or further
issuance of credit. Soon though, prices begin to rise as the added
notes increase demand relative to the quantity of goods and services
available. As the value of their savings decline more and more,
foreigners in particular begin to question the value of the central
bank's notes and start to demand redemption in gold. We, of
course, do not admit responsibility for the rampant inflation when
it comes. We blame inflation on evil speculators who drive up prices
for personal gain, as well as the greed of organized labor and
businesses who are promptly made subject to wage and price controls.
Even the consumer can be made to feel guilty for agreeing to pay the
high prices. Mistaking symptoms for causes, the government accepts
the bankers' analysis of the problem and continues to give the bank
free reign in monetary policy.

By
slowing the rate of note issuance periodically, the ultimate crisis
stage is postponed until many decades after the original Central
Bank Charter was granted. Before the rapidly dwindling gold reserves
on which faith in our bank depends is exhausted, we abruptly
contract our loan volume to private industry and government as well.
With the contraction of the money supply, a great deflationary crash
begins in earnest with all its attendant unemployment, bankruptcies,
and civil strife. We do not admit responsibility for the depression.
We blame it on evil hoarders who are refusing to spend their money
and on the prophets of doom who are spoiling business confidence.
The government accepts this analysis and leaves monetary policy in
our hands. If things go well, we bankers channel the fury and unrest
into puppet movements and pressure groups that carry our agents into
full control of the government. Once in charge, we devalue our
outstanding bank notes in terms of gold and make them inconvertible
for all but possible foreign central banks and begin plans to
restore a "prosperity" that will be totally ours. When lucky, we're
able to confiscate the gold of private citizens as punishment for
hoarding during the climax of the depression.

Once the old order is
subdued during the chaos of the crash and desperation of the
depression, the field is open for our full finance capitalist system
to be realized, and a new and lasting order can be established. A
war timed for this period of consolidation provides the perfect
excuse for the regimentation required to crush all
opposition.

THE USES OF A CENTRAL
BANK IN A MATURE ECONOMY

Our
central banks are private monopolies of the host nations' money and
credit issuance supported by the coercive power of the state. That
the central bank be directly in our hands is vital until our new
order is firmly established throughout the governmental, business,
intellectual, and political spheres of society. After our order is
consolidated, formal nationalization of the central bank with great
fanfare is usually advisable in order to dispel any lingering
suspicion that it is operated for private gain. Of course, only
loyal agents of
the dynasty are allowed to obtain high offices in the bank,
and our power remains intact. Obvious private monopolies are always
the targets of sharp reformist agitators. Only the most paranoid,
however, can see through the public facade to the private monopoly
of the nationalized or quasi-nationalized central
bank.

The
central bank is the primary monopoly on which all our monopolistic
power depends. The hidden power of the central bank to create money
out of nothing is the fountainhead that fuels our far-flung
financial and political empire. Basically, the power of our central
bank flows from its control over the points of entry into the
economy of new, inflationary money which it creates by fiat.
Ordinarily, bills of exchange, acceptances, private bonds,
government bonds, and other credit instruments are purchased by the
central bank through specially privileged dealers in order to put
the new money, often only checking accounting entries, into
circulation. Our purchase of government securities pleases the
government as our purchase of private debt pleases private debtors.
As a quid pro quo to assure "good management", our agents are given
directorships, managerial posts, and offices in the corporations and
governments so benefited. As the addiction to the narcotic of
inflationary easy credit grows and grows, we demand more and more
control of our dependent entourage of governments and corporations.
When we finally end the easy credit to "combat inflation, the
enterprises and governments either fall directly into our hands,
bankrupt, or are rescued at the price of our total
control.

We
ruling bankers control the flow of money in the economy through the
wide authority of the central bank to license, audit, and regulate
private banks. Banks that loan to interests outside the loyal
entourage are "audited" by the central bank and found to be
dangerously over-extended. Just a hint of insolvency from the
respected central bank is enough to cause a run on the disobedient
bank or at least dry up its vital lines of credit. Soon that bank
learns to follow automatically the hints and nods of our agents in
the central bank.

Further, the periodic cycles of easy money and tight money that we
initiate through our control of the central bank cause corresponding
fluctuations in all markets. Our inner circle knows in advance the
timing of these cycles, and therefore reaps windfall profits by
speculating in commodity, stock, currency, gold and bond markets.
Monopolistic stock and commodity exchanges are a vital adjunct to
our power, made possible by our central bank powers. We do not allow
a fair auction market to exist, but make a great show of "tough"
government regulation to create a false sense of confidence among
small investors. With the aid of our regulatory charade and
financial power, we are able to maintain exchanges tailored to our
entourage's need to manipulate stock prices at the expense of independent
investors. Our privileged specialists on the floors of our
exchanges, aided by the propaganda of our financial press and
brokerage houses, continually play on naivete and greed to drain the
saving of the unwary into our coffers. The commodities, securities
and stocks held in trading accounts by our exchange and brokerage
houses provides us with a clout far beyond our own actual holdings
with which we can manipulate prices and win proxy fights for
corporate takeovers.

There
is little danger to our lucrative operations from public-spirited
regulation. Our manipulations are so complex that only the most
brilliant experts could comprehend them. To most economists, our
exchange operations appear to be helpful efforts to "stabilize" the
market. We ruling bankers become richer and richer as time passes
without the annoyance of exerting productive effort of benefit to
others.

SOCIAL AND BUSINESS
LEGISLATION AND POLICY

The
danger to our monopolistic system clearly is not that the people
will spontaneously rise up and dispossess us. The "people" never
initiate anything. All successful movements are led from the top by
men with vast resources and brilliant plans, usually without the
knowledge of the people in the movement. The real danger arises in
the upper middle class. Occasionally these people make vast fortunes
through some brilliant technological innovation in their business or
through the favor of local politicians who escaped our influence.
Because of their ignorance of the reality of our power, however, the
new rich usually fall easily into our hands. For instance, they
seldom  realize until too late that the dozens of loans they may owe
to apparently independent banks can be called simultaneously with a
mere nod from our top man. Graver danger is presented by those whose
enterprises are so successful as to be self-financing. Since the
advent of the corporate income tax, truly self-financing
corporations are extremely rare. Most disquieting is when these
upstarts acquire the covert or open support and advice from our
major international banking antagonists. This is particularly
dangerous to us in countries with long democratic traditions where
it is difficult to make our arbitrary rulings stick.

The
best solution is to enact comprehensive taxes and business
regulations in the name of the common good. Such measures reduce the
incidence of significant upstart competition to manageable levels.
This policy, of course, strangles innovation and productivity.
Reduction of the Gross National Product in countries under our
control would be acceptable in the interests of secure power under
the pretext of conservation, ecology, or no-growth stability except
that if carried too far, our clout vis-a-vis our international
rivals would be impaired. The most difficult problem for the money
lord is determining the level of social and economic freedom he
dares allow for the sake of his international power. One
method is to maintain a home base of carefully monitored, relative
freedom on which to base the economic and military strength required
to maintain his empire of totalitarian dictatorships
abroad.

The following measures are
most effective in maintaining our control of nations:

1. A
steeply graduated income tax. This does not affect us because our
money was accumulated before the tax was imposed, and most of it is
now safely protected in our network of tax-exempt foundations.
Foundation income and capital can legally be used to finance the
bulk of our social, economic, literary, and even political
propaganda. In a pinch it is easily diverted to illegal uses.
Expensive "studies" required by our profitable economic operations
can be legitimately financed through our foundations.

For
the middle classes, income tax makes life into an endless treadmill.
Even the most productive find themselves unable to accumulate
significant capital. They are forced into the clutches of our
central bank entourage for injections of the inflationary credit
which we are privileged to create out of nothing. The self-financing
wealth of the legendary 19th century robber barons and early 20th
century tycoons is no longer possible since those wide-open
conditions no longer exist. We were the advocates of the erection of
the tax wall that is now in place. Our eternal vigilance is required
in democratic countries to prevent our tax shield from being riddled
by conniving legislators, who are usually of tax-oppressed, upper middle
class origins themselves.
2. Business
Regulation. When upstarts slip through our financial tentacles and
tax shields, a second line of defense becomes vital. We control the
licensing of radio and television to keep damaging information about
our system from getting to the public or upsetting the political and
social influence we have been exerting over a nation. This makes
serious upstart-led mass political challenge impossible. Harassment
by bureaucrats armed with arbitrary and voluminous industrial safety
regulations is a new and increasingly effective technique to stifle
raw competition against our established corporations. Security
registration requirements, "to protect the small investor", can
cause fatal delays in an upstart's ability to raise capital on the
stock market. Ecological considerations are easily perverted to
stymie the plans of those who would upset the stability of our
carefully planned system.
Anti-trust law, however, is our
ultimate weapon. The handy doctrine of "pure and perfect
competition", which we have fostered in our universities, is ideally
suited to convicting any successful competitor at our discretion.
Also, product quality, safety, and testing regulations are excellent
methods by which we insulate our established industries from
potential competition.
3. Subsidies,
tariffs, and foreign aid. Although direct subsidies can occasionally
be procured for our entourage of corporations by appealing to the
desire of the masses to preserve jobs, this exploitive technique is
usually too obvious. Tariffs are easily passed, but lead to
retaliation against our foreign holdings. Foreign aid and
government-guaranteed loans that are sure to be defaulted, fill the
bill perfectly under modern conditions. Foreign aid maintains our
empire of foreign dictators abroad while providing guaranteed,
highly profitable sales to our corporations at home base. Foreign
aid should  always be contingent on the purchase of goods, usually
military hardware, that only our entourage of firms can provide. Few
people have the courage to oppose such altruistic aid to the
"starving masses" of the third world.
4.
Centralization of power. Real division of power between national,
state, and local government is dangerous to our system. When local
politicians have real autonomy, even in limited spheres, they can do
much to enable upstarts to challenge our power. Our program is to
bring all levels of government under our sway through such
innovations as federal aid, revenue sharing, high federal taxation,
and regional government.
5. Alliance with
the lower classes. In order to keep our valuable regulatory
machinery in place and under our control, we must have the mass
support of the numerous lower classes against vigorous, but scarce,
middle class upstarts. The best method is to provide the lower
classes with subsidies at the expense of the middle class. This
creates a mutual hatred that prevents the middle class from
appealing effectively to the lower classes for support. Social
Security, free health care, unemployment benefits, and direct
welfare payments, while doing nothing for us directly, create a
dependent class whose support for our critical measures can easily
be made part of a package deal. Also, the major labor unions began
with our financing and are led to this day by leaders of our
choosing. No one can rise to or remain at the top of a rough and
tumble union without our financial backing. In spite of their
rebellious rhetoric, bought union leaders are the source of our
power over the management of firms with widely held stock. Unions
are the ultimate weapon we have for destroying otherwise
invulnerable, self-financing upstarts. "Bread and circuses" are as
useful today as in Roman times for mobilizing the mob against our
staid adversaries.

THE ROLE OF PUBLIC
EDUCATION

In
order to maintain our system of power, the institution of universal
public education is indispensable. The anarchy of private education
in which any manner of dangerous ideas could be spread cannot be
tolerated. Thus we make private education financially impossible to
all but the few, mostly the elite offspring of our financial
entourage, by means of burdensome taxation and regulation. The
primary purpose of public education is to inculcate the idea that
our crucial institutions of coercion and monopoly were created for
the public good by popular national heroes to blunt the past power
of the malefactors of great wealth. It is crucial to create the
impression that, although the people have been exploited in the
past, today the wealthy are at the mercy of an all-powerful
government which is finally in the hands of the people or do-good
liberals.

For
those of more sophistication who reject this Pollyanna view of
reality, we promote the "liberal reformer mentality", which holds
that a new era of reform is on the verge of crushing forever the
last vestiges of money-lordism. Of course, the reforms, after taking
shape as a bewildering myriad of regulatory agencies and taxes, are
found to be ineffective in subordinating our power to the popular
will, whereupon we stir up another era of progressive
reform.

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