The Legendary Tirade of CONGRESSMAN Louis T. McFadden
by Edward Flaherty
THIS IS SHORT so read it!
Louis T. McFadden was a member of the House of REPRESENTATIVES in the twenties and thirties. He is one of the heroes of the Federal Reserve conspiracytheorists. A Republican from Canton, Pennsylvania, he was the chair of the House Banking and Currency Committee during the twenties, but was merely a Committee member by 1932. He used his position in Congress occasionally to crusade against the Federal Reserve; a stance Gary Kah (1991) implies may have cost McFadden his life!
On June 10, 1932 the House was debating a bill which would ultimately create the Federal Home Loan Mortgage Association. The FHLMA would be permitted to issue bonds to help finance its operations, and the House was debating whether to permit the Federal Reserve to purchase some of these bonds as collateral when issuing currency. McFadden used this opportunity to launch a twenty-five minute tirade against the Federal Reserve. Here I present excerpts from his speech with my comments (the entire text may be found in the Congressional Record, pages 12595-12603).
"Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States out of enough money to pay the national debt.
"The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. (He exaggerated.) This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board and through the corrupt practices of the moneyed vultures that control it (C.R. p. 12595)
In some people's view, however, McFadden goes too far in terming the FRBís policies as "evil" or its intentions deliberate. As Friedman and Schwartz showed, the FRB essentially made an honest mistake, although a hideously costly one. Moreover, the margin of the vote was only one. In addition, there is absolutely no evidence that the Federal Reserve intended to create the Great Depression, allegedly to enable the international bankers to swoop in on the U.S. economy and buy it up at fabulously reduced prices. Nor would such intent make any sense from the Fedís point of view. The Great Depression created an unstable Economic and political environment.
Why would the Fed intentionally create such a climate that would seriously endanger its very existence? (Read DEBT FOR DUMMIES) and WHO REALLY OWNS THE FED? PROOF it is the 13 FAMILIES.