PJ#017, THE NAKED PHOENIX

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PJ 17

CHAPTER 7

REC #2 HATONN

SATURDAY, JULY 7, 1990 4:25 P.M. YEAR 3 DAY 325

WOODROW WILSON

The Pujo Committee was the last important publicity which the Federal Re­serve Act received before being passed in December, 1913. The man who signed it was President Woodrow Wilson, who therefore is thought to be its author. Wilson was elected President of the United States in 1912 on a mone­tary reform platform. He promised the people of your country that he would give them a money and credit law which would be free from Wall Street influ­ence. At last, he declared, you citizens are going to enjoy the benefits of your own credit, as Thomas Jefferson had intended and provided for in the Consti­tution.

However good or bad were Woodrow Wilson's intentions, he was limited by the fact that he had been put into office by the biggest Wall Street banking house of them all, Paul Warburg's firm of Kuhn, Loeb Company. His cam­paign for the Presidency had been entirely financed by Cleveland H. Dodge, of Kuhn, Loeb's National City Bank; Jacob Schiff, senior partner in Kuhn, Loeb Company; Henry Morgenthau, Sr.; Bernard Baruch; and Samuel Un­termyer. With such a background, as well as his earlier speeches in favor of the Aldrich Plan and his outspoken reverence for J. P. Morgan, the new, everyman's Woodrow Wilson smacked of ineffectuality, if not downright hypocrisy.

Woodrow Wilson appeared before the people during his campaign with a monetary reform bill written by H. Parker Willis, and officially sponsored by the Democratic Party. A study of this new bill revealed a remarkable similar­ity to the Aldrich Plan. The more idealistic, and, to the bankers, unrealistic provisions of the bill, providing for others than bankers to administer it, were soon deleted by Carter Glass' House Banking and Currency Committee.

Despite the apparently clean background of the Democratic party's bill, known as the Federal Reserve Act, it was not favorably received by the coun­try at large, and some newspapers were unkind enough to point out its close kinship to the discredited Aldrich Plan. With such popular opposition already manifesting itself against the people's choice, Wilson, Congress did not wish to pass the bill. It required all the political strength of William Jennings Bryan, the dominant power in the Democratic party, to get Congress to pass the Act.

The Federal Reserve Act, although it was a brother to the Aldrich Plan, was ballyhooed as a people's plan. It promised the American people everything. First of all, it promised to liberate the farmer from his yearly needs for credit to get his crops harvested and send them to market. Heretofore, he had had to go to the bank and mortgage his property for that money. According to the Act's proponents, he could get plenty of credit at the Reserve bank. This was a bid to get the National Granges to come out in favor of the bill, but they did not rise to the bait. They refused to endorse it, pointing out that its control techniques were not likely to benefit anybody but the bankers, and this was proved when the Federal Reserve System caused the Agricultural Depression of 1920-21.

The next benefit of the Federal Reserve Act, it was claimed, was that it would stabilize the monetary unit and give the dollar a consistent and balanced pur­chasing power. This was the provision insisted upon by Sen. Robert L. Owen, co-author of the Owen-Glass Act, as the Federal Reserve legislation was known in Congress. Please let me believe that a few of you old timers, at least, are familiar with these names first hand and not heresay. Glass struck out this stabilization provision. Oh, so you thought that bunch made glass and ceramic tiles for shuttle crafts and worked with Corning and thus and so? Small world isn't it? Senator Owen wrote, "I was unable to keep this manda­tory provision in the bill because of the secret hostilities developed against it, the origin of which at that time I did not fully understand."

The Federal Reserve Act, as signed by Woodrow Wilson, contained no stabi­lization mechanism, but it did contain plenty of factors which would make sta­bilization impossible.

Its manipulation of the discount rate to vary the amount of money in circula­tion, and its open market operations, dumping quantities of Government se­curities on the New York Exchange or withholding them to create credit ex­pansion or contraction, were the conditions directly responsible for the great­est disaster your country has ever suffered, the Great Depression of 1929-39. That, friends, is a whole decade of misery by manipulation.

The hostility of the influences behind the Federal Reserve Act towards any kind of monetary stabilization has been expressed in the official publications and statements of the Governors. Marriner Eccles, Chairman of the Board of Governors of the Federal Reserve System, issued a memorandum March 13, 1939, stating that:

"The Board of Governors of the Federal Reserve System opposes any bill which proposes a stable price level."

Another bit of propaganda for the Federal Reserve Act in 1913 was the claim that it would perform many banking services for the government without charge. At the Senate OPA hearings in 1941, Rep. Wright Patman inquired of Marriner Eccles:

"Governor Eccles, when did the Federal Reserve System start charging the government agencies a service charge?" He replied, "I really couldn't say."

"Wasn't it intended when the Federal Reserve Act was passed that the Federal Reserve Bank would render this service without charge--since under the Act the government would give them the use of the government's credit free? asked Mr. Patman. Mr. Eccles replied, "I wouldn't think so."

To get the Federal Reserve Act made into law, the main lie used in the flood of speeches and writings poured out in favor of it was the claim that the nation s money and credit would be released from the domination of a few Wall Street bankers. The findings of the Pujo Committee were used to frighten the people into submitting to the monetary monster which had them at its mercy. You have got to save yourselves, the spokesmen for the Federal Reserve Act declared, andyour savior is this Federal Reserve System. These spokesmen, led by Rep. Carter Glass of Virginia, said that they had devised the perfect way to emasculate the power of Wall Street, namely, the regional Reserve System, which would divide the country up into eight or twelve Reserve bank districts, depending on whether Mr. Glass or Mr. Warburg made the final choice. Each of these districts would have equal power and equal representa­tion in the administration of the entire Reserve System. It was a completely democratic and almost perfect solution. Under the Glass (or Warburg) pro­posal, Kansas City or Denver would have as much control over the nation's money and credit as New York. Do you ones remember the "New States"? Do you think a thing has changed other than an increase in the power of your adversaries?

There was only one thing which appeared wrong with Glass' system. It seem­ingly ignored the fact that the nation's money market was in New York. This was no small item to simply have "overlooked". Even Marriner Eccles knew that, for he stated at the OPA hearings that: "New York is the only money market you have in this country."

This meant that these other reserve banks would have to go to the Federal Reserve Bank of New York whenever they wanted anything. Well, how about that! And, they would have to follow the wishes of the Governor of that bank. Consequently, the Federal Reserve System was to fall into the hands of two men during the first 15 years of its existence, Paul Warburg of Kuhn, Loeb Company, and Benjamin Strong of J. P. Morgan Company. Both of these men were at Jekyll Island when the banking legislation had been written, and both of them knew how to control it. Warburg was on the Board of Gover­nors for four years, and for the ten years after that he dominated the Board by his position as President of the Federal Advisory Council and as President of the American Acceptance Council. Benjamin Strong was Governor of the Federal Reserve Bank of New York from its opening in 1914 until his death in 1928, during a congressional investigation of the System. That is how Woodrow Wilson freed the nation's money and credit from New York bankers. The regional Reserve System could not be anything but a farce. It was designed solely to convince the American people that control of your financial resources was being taken out of Wall Street hands, and once that was done, the Congressmen could vote for the Federal Reserve Act without fear of reprisal from their constituents.

A Democratic President and a Democratic Congress had been elected in 1912 to get this bill through. Rep. Carter Glass of Virginia, Chairman of the House Banking and Currency Committee, gets credit along with Wilson for finally passing the Act, although all that Wilson did was to sign on the dotted line. Woodrow Wilson was regarded generally by the leaders of the Democratic party as a newcomer and a stuffed shirt. Consequently, he enjoyed little power as President except for the patronage powers he possessed. He could do little towards actually getting Congress to pass the Federal Reserve Act. That job was done by the man who was the Democrat in the minds of the American people, William Jennings Bryan. He acted as Democratic whip to get the Act passed, and he was rewarded by being made Secretary of State. He later wrote that: "In my long political career, the one thing I genuinely re­gret is my part in getting the banking and currency legislation enacted into law". Perhaps you might re-read that statement before you move on.

TO FURTHER CONFUSE THE PEOPLE

To confuse the American people still further and to blind them to the real purpose of the Federal Reserve Act, the chief proponents of the Aldrich Plan, Sen. Nelson Aldrich and Frank Vanderlip, set up an enthusiastic hue and cry against the bill. You see this in action every day in every instance--confusion is Satan's primary tool. These two turkeys (and I insult the turkey) gave inter­views to reporters and politicians, anywhere they could find an audience, de­nouncing the Democratic party's banking legislation as inimical to bankers and to good government. The old issue of inflation was raised because of the Act's provisions for printing Federal Reserve Notes. Both Aldrich and Van­derlip spoke against "fiat money", that is, enough money being put into circu­lation to assure proper distribution of goods and services among the people. Indeed such was their enthusiasm in speaking against the Federal Reserve Act that they reversed themselves on several matters they had already plugged for in the Aldrich Plan, which brings to mind that adage about "liars should have good memories".

The Nation, on October 23, 1913, pointed out that: "Mr Aldrich him­self raised a hue and cry over the issue of government 'fiat money', that is, money issued without gold or bullion back of it, although a bill to do precisely that had been passed in 1908 with his own name as author, and he knew besides, that the 'government' had nothing to do with it, that the Federal Reserve Board would have full charge of the issuing of such moneys."

I trust this sounds familiar? "We need an amendment to prevent burning of the flag," when it is well covered in the Constitution. "We must have balanced budget amendment," when it is absolutely and beautifully set forth in your Con­stitution. And now they are going to cut out crime against you by removing your defense? They are also going to get rid of drugs by making sure you have abundant supply of same? Further, they make you sicker with their sanc­tioned "cures' from the conspirator's pharmaceutical houses than you were with the diseases they created and thrust upon your society. Tacky as truth may appear, you better stop looking at your "innocent government" who is a victim, as Mr. Cooper says, of the "little gray aliens". Does all this really sound like an innocent government "doing the best they can to protect you"? If it does, then you had best go look in the mirror and see who is there looking back at you! For if you believe they work in your behalf, you are indeed sick, my friend. LITTLE GRAY ALIENS ARE NOT YOUR ENEMY!!!!! THE BLACK DRAGON IN THE SEATS OF POWER IN HUMAN FORMAT--RIGHT ON YOUR PLANET AND IN YOUR NATION--ARE YOUR ENEMY AND THEY ARE OUT TO ANNIHILATE AT LEAST TWO THIRDS OF YOU--BY YEAR 2000.

If, as some of the UFO tout sheets project: "Could the aliens from outer space be coming to SAVE you?" Only in that we are going to certainly tell you the truth and what you must do to SAVE yourselves--we aren't going to SAVE ANYONE FROM ANYTHING. IF YOU WANT IT SAVED, YOU WILL SAVE IT. NO MORE AND NO LESS.

The Nation was the only public organ which pointed out that the issue of the money of the United States was being turned over to a body of men who were neither elected nor answerable to electors. Later, under Maurice Wertheim, it no longer pointed such criticisms. Aldrich and Vanderlip, in attacking the Federal Reserve Act on these grounds, were throwing up a smoke screen to make people think that the big bankers were afraid of the Act. Paul Warburg discreetly remained silent during the campaign for and against this legislation. He had already arranged, through his private emissary to President Wilson, the ubiquitous Colonel House, that if the Act were passed, Warburg would be chosen one of the first Governors.

Frank Vanderlip, however, threw himself into the comedy with such gusto that Sen. Robert L. Owen, chairman of the Senate Banking and Currency Committee, openly accused him of carrying on a campaign of misrepresenta­tion about the bill, as indeed he was. Owen pointed out that Vanderlip, President of the National City Bank of New York, was objecting to just those provisions in the Reserve Plan which he had fought for in the Aldrich Plan. Had Senator Owen known that both plans had originated during the secret expedition to Jekyll Island, he might have been even more vehement in denouncing Mr. Vanderlip. The first public reference to the Jekyll Island ad­venture, however, was not to appear for three more years, and no one in Washington mentioned it.

Practically all the newspapers and magazines which had any considerable cir­culation favored the Federal Reserve Act, of course, because by this point they were either indebted to the bankers or were owned directly by the bankers. No economic journal dared to compare the Act with the Aldrich Plan, but such comparison would show that, on most matters, including the in­troduction of trade acceptances into the country, there was no appreciable difference between the two plans, nor should there have been, since they were written by the same people--as two apples of the same variety grown in differ­ent orchards owned by the same orchard owner.

The editorial comments in 1913 agreed that if this bill became law, you would enter upon a period of general prosperity such as you had never known. The other extravagant claims for the Federal Reserve Act were its supposed bene­fits to the farmers, its purpose of stabilizing the integer of account (monetary unit), its functions of performing banking services for the national government without charge, and your complete emancipation from Wall Street domina­tion.

All above have been shown to be lies by the events of the last 60 years. The Federal Reserve System has done none of these things, but the biggest lie was that it would end money panics and business depressions. You were to have no more bank failures, no more farms seized by mortgage holders, no more factories closing down or unemployment. I don't know about you, but I am ready to throw-up. The Federal Reserve System could have done a great deal towards ending these things, but it has exerted its influence in the opposite di­rection because it was set up to enslave your population and it has succeeded.

The record of the Federal Reserve System proves that it double-crossed the farmers of America at a secret meeting on May 18, 1920, when it raised the rate to 7 per cent on agricultural paper and precipitated the Agricultural De­pression of 1920-21. It proves that the Board of Governors met with the heads of the great European central banks to make agreements which brought on the Great Depression of 1929-39, after most of your money had been poured into Wall Street because of the easy money policies and credit expansion activities of the System. Where do you sweethearts think you sit with all your wondrous credit cards and indebtedness? Could those cards be bank cards, perchance? To whom do you owe your soul? Do you begin to think you might have bargained with the Devil, perchance? Have you? It won't be God who forecloses on you, dear hearts!

The central bank mechanism of the Federal Reserve System involved you in the First World War, The Second World War and all the little non-wars in be­tween, all over your entire globe, and it is making the Third World War in­evitable. I suggest you take the matter of shelter systems most seriously in­deed.

WHAT OF CARTER GLASS?

Despite the growing publicity for the Federal Reserve Act and the influence of William J. Bryan on the Democratic congress, many Senators and Repre­sentatives who were familiar with the banking and currency legislation's im­port were not yet willing to wreck the Constitution and double-cross their con­stituents by voting for such a bill. The Senate Banking and Currency Commit­tee was ready to write its own version of the Owen-Glass Bill which Rep. Carter Glass, Chairman of the House Banking and Currency Committee, was ready to send them, but Owen's contribution to the bill, the stabilization of the monetary unit (integer of account) had already been stricken out of the Act. The hearings before the two committees dragged on for many weeks. Many of the same bankers who had come down from New York to tell all before the Pujo Committee now appeared before Congress to speak in favor of the Fed­eral Reserve Act, a coincidence which the newspapers let pass unnoticed.

Andrew Frame stated before the House Committee that the plan still smacked too much of the government monarchies of Europe, and that it was not in accord with your institutions. This was as close as anybody came to calling the Act unconstitutional, which it was, since it proposed to remove congress' power of issuing money and credit and turn it over to an appointive body.

Frank Vanderlip declared before the Senate Committee that he now favored the Act, a second reversal of policy in as many months--"read his lips". He had come to the conclusion, he said, that the plan would proceed along demo­cratic lines, since the President would appoint all Board members for ten year terms.

Senator Weeks inquired of him, "Should the Federal Reserve hearings be public, as these hearings are before this Committee?"

"No", replied Mr. Vanderlip, "they are not exactly hearings, they are official meetings". The President of the National City Bank evidently felt that democ­racy was all right, but that it had to stop somewhere. Carter Glass agreed with him and said: "The meetings of the Federal Reserve Board are bank board meetings, and neither the public or reporters should be present". Neither Vanderlip nor Glass appears to consider the fact that these "bank board meetings' would be making decisions which would have a more important and more direct impact on the welfare of the American people than the decisions of Congress--AND NOT ONE CONFOUNDED THING HAS CHANGED, EXCEPT TO WORSEN! NOW IT ISN'T JUST YOUR MONEY--IT IS YOUR VERY LIVES!

Senator Root also raised the charge of inflation, claiming that under the Fed­eral Reserve Act, circulation would always expand indefinitely, causing great inflation. The history of the Federal Reserve System refutes this charge. The System has, if anything, kept the note circulation below the amount needed to carry on business and commerce in your country, except during the two World Wars, when it did double and triple the circulation. Even after the Great De­pression of 1929-39, when so much of the circulating medium had been with­drawn that the American people had to print their own money on wood and paper, the Federal Reserve System did not increase the amount of notes in circulation.

At the House Committee on Banking and Currency Hearings of 1913, Mr. Paul Warburg testified as follows:

"I am a member of the banking firm of Kuhn, Loeb Company. I came over to this country in 1902, having been born and educated in the banking business in Hamburg, Germany, and studied banking in Lon­don and Paris, and have gone all around the world. In the Panic of 1907, the first suggestion I made was 'Let us get a national clearing house.' The Aldrich Plan contains some things which are simply fundamental rules of banking. Your aim in this plan (the Owen-Glass Bill) must be the same--centralizing of reserves, mobilizing commercial credit, and getting an elastic note issue." What do you suppose Mr. Kissinger would say in a situation like that? Do you think he would tell you all about his connections with Oliver North et al, the KGB et al, China et al and every Zionist elitist and on and on and on? I personally expect not.

Paul Warburg was the most clever of the important New York bankers. In all his writings and speeches and testimonials before congress, he never made a misstatement. For instance, he did not bother to mention at this appearance that the banking business he had been brought up in Hamburg, Germany, was his own family banking house of M. M. Warburg Company, a fact which might have been brought up later when he was nominated for the Board of Gover­nors of the Federal Reserve System. Warburg's term "mobilization of credit" was no accident either, for the First World War was due to begin in a few months as carefully planned, and the first big job on the docket for the System would be to finance the Allies in their war against Germany along with the Germans in their war against you "Allies".

Leslie Shaw, banker from Philadelphia, dissented with most of the other wit­nesses at these hearing when he testified that:

"Under the Aldrich Plan the bankers are to have local associations and district associations, and when you have a local organization, the cen­tered control is assured. Suppose we have a local association in Indi­anapolis; can you not name the three men who will dominate that association? And then can you not name the one man who will domi­nate the three? The same is true in Richmond and everywhere else. When you have hooked the banks together, they can have the biggest political influence of anything in this country, with the exception of the newspapers."

Mr. Shaw, of course, did not know that many newspapers were already owned by or mortgaged to, big banks, or that Frank Munsey, agent for J. P. Morgan Company sometimes bought newspapers to promote a single big stock issue, and sold these periodicals as soon as the stock was unloaded.

Dharma, allow us to close this portion please and we will finish the subject of the beginning on the morrow. It has been too long a day at the writing and I would have ones digest material before moving forward to simply get through the material. THIS IS YOUR LIFE, DEAR ONES--WHAT WILL YOU DO WITH IT?

Salu, I bid you a good-day and a restless sleep while you confront this circum­stance and decide which way ye shall go.

Aho! Hatonn to clear, please.

PJ 17

CHAPTER 8

REC #1 HATONN

SUNDAY, JULY 8, 1990 7:36 A.M. YEAR 3 DAY 326

CONTINUED CONTROVERSY

The most fiery of the opponents to the Federal Reserve Act was a lawyer from Cleveland, Ohio, named Alfred Crozier, who was the most outspoken critic of the Wall Street banking fraternity. Yes, there are honorable attor­neys; in fact, most attorneys, be they not Zionists pushed into the prostitution profession for purposes of the "Protocols", begin most honorable indeed; so it is also with physicians who are truly healers of mankind. Remember--the in­tent--always, remember the intent!

ALFRED CROZIER, ESO.

Mr. Crozier wrote about the Act of 1908, a few years later (U.S. MONEY vs. CORPORATION CURRENCY, 1912) which attacked the Aldrich-Vreeland Act as a Wall Street instrument and pointed out that when your government had to issue money based on privately owned securities, you would no longer be a free nation. The Federal Reserve System allowed the issue of notes on the privately owned shares of the Federal Reserve Banks. Crozier presented to the Senate Committee that:

"It should prohibit the granting or calling in of loans for the purpose of influencing quotation prices of securities and the contracting of loans or increasing interest rates in concert by the banks to influence public opinion or the action of any legislative body. Within recent months the Secretary of the Treasury of the United States was reported in the open press as charging specifically that there was a conspiracy among certain of the large banking interests to put a contraction upon the cur­rency and to raise interest rates for the sake of making the public force Congress into passing currency legislation desired by those interests. The so-called administration currency bill grants just what Wall Street and the big banks for 25 years have been striving for, that is, PRI­VATE INSTEAD OF PUBLIC CONTROL OF CURRENCY. It does this as completely as the Aldrich bill. Both measures rob the gov­ernment and the people of all effective control over the public's money, and vest in the banks exclusively the dangerous power to make money among the people scarce or plenty. The Aldrich bill puts this power in one central bank. The Administration bill puts it in twelve re­gional central banks, all owned exclusively by the identical private in­terests that would have owned and operated the Aldrich Bank. Presi­dent Garfield, shortly before his assassination, declared that whoever controls the supply of currency would control the business and activi­ties of all the people. Thomas Jefferson warned us a hundred years ago that a private central bank issuing the public currency was a greater menace to the liberties of the people than a standing army."

I would suppose that most of you now can understand the need for the mur­der of Mr. Garfield? Contrary to what is being touted by ones such as Mr. Cooper in his material, the assassination of John Kennedy involved several deliberate causes, from Mafia lessons, CIA/FBI take-out, etc. The major rea­son he had to be taken out was his attitude regarding interest bearing vs. non-interest bearing currency and he was getting ready to change it. So far, every­one with enough perceived power to make radical changes away from the banking cartel are slaughtered. Now, they are trying to assassinate God and get rid of all opposition, although most of mankind would pull the gun trigger for them for less than 30 pieces of silver. Almost anyone in the military, or­dered to do so, would do the job and feel himself a patriotic and blessed American doing his duty and saving his nation. Am I not right, Colonel Gritz?

REPRESENTATIVE CARTER GLASS

As the House spokesman for the Democratic Party, Rep. Carter Glass took occasion to make public the stormy record of the Republican organization, the National Monetary Commission, in its failure to prepare adequate bank­ing and currency legislation. His House Report in 1913 said:

"Senator MacVeagh fixes the cost of the National Monetary Com­mission to May 12, 1911, at $207,130. They have since spent another hundred thousand dollars of the taxpayers' money. The work done at such cost cannot be ignored, but, having examined the extensive litera­ture published by the Commission, the Banking and Currency Commit­tee finds little that bears upon the present state of the credit market of the United States. We object to the Aldrich Bill on the following points:

"Its entire lack of adequate government or public control of the bank­ing mechanism it sets up.

"Its tendency to throw voting control into the hands of the large banks of the system.

"The extreme danger of inflation of currency inherent in the scheme.

'The insincerity of the bond-refunding plan provided for by the mea­sure, there being a barefaced pretense that this system was to cost the government nothing.

'The dangerous monopolistic aspects of the bill.

"Our Committee at the outset of its work was met by a well-defined sentiment in favor of a central bank, which was the manifest outgrowth of the work that had been done by the National Monetary Commis­sion."

Representative Glass' denunciation of the Aldrich Bill as a central bank ig­nored the fact that his own Federal Reserve System would fulfill all the func­tions of a central bank, that is, its stock would be owned by private stockhold­ers who could use the government's credit for their own profit, since they would have the privilege of note issue on the government's credit; it would have control of the nation's money and credit resources; and it would finance the government by mobilizing credit in time of war. The Federal Reserve Sys­tem was acknowledged by economists in 1913 to be a bank issue like the Eu­ropean central banks.

The Federal Reserve Act, as Carter Glass presented it, was passed by the House virtually intact. It then went to the Senate Committee on Banking and Currency, where such provisions of the Aldrich Bill as were deemed necessary were restored to it. In the Senate debate on the bill, Senator Stone said on December 12, 1913:

"The great banks for years sought to have and control agents in the Treasury to serve their purposes. Let me quote from this World article, `Just as soon as Mr. McAdoo came to Washington, a woman whom the National City Bank had installed in the Treasury Department to get advanced information on the condition of banks, and other matters of interest to the big Wall Street group, was removed. Immediately the Secretary and the Assistant Secretary, John Skelton Williams, were criticized severely by the agents of the Wall Street group.'

"I myself have known more than one occasion when bankers refused credit to men who opposed their political views and purposes. When Senator Aldrich and others were going around the country exploiting this scheme, the big banks of New York and Chicago were engaged in raising a munificent fund to bolster up the Aldrich propaganda. I have been told by bankers of my own state that contributions to this ex­ploitation fund have been demanded of them and that they had con­tributed because they were afraid of being blacklisted or boycotted. There are bankers of this country who are enemies of the public wel­fare. In the past, a few great banks have followed policies and projects that have paralyzed the industrial energies of the country to perpetu­ate their tremendous power over the financial and business industries of America."

INFAMOUS COLONEL HOUSE

The Federal Reserve Act, as altered by the Senate, was finally passed on De­cember 22, 1913 and strangely enough, the alterations only further enforced the power of the bankers. Then it went to Woodrow Wilson for his signature. Colonel House's connection with Warburg and the Act are revealed in a volume called The Intimate Papers of Colonel House. This journal contains the following notes which are worthy of presentation herein:

"Dec. 19, 1912. I talked with Paul Warburg over the telephone re­garding the currency reform. I told of my trip to Washington and what I had done there to get it in working order. I told him that the Senate and the Congressmen seemed anxious to do what he desired, and that President-elect Wilson thought straight concerning the issue.

"March 13, 1913. Warburg and I had an intimate discussion regarding currency reform.

"March 27, 1913. Mr. J. P. Morgan, Jr. and Mr. Denny of his firm came promptly at five. McAdoo came about ten minutes afterward. Morgan had a currency plan already printed. I suggested he have it typewritten, so it would not seem too prearranged, and send it to Wil­son and myself today.

"Oct. 13, 1913. Paul Warburg was my first caller today. He came to discuss the currency measure. There are too many features of the Owen-Glass Bill that he does not approve. I promised to put him in touch with McAdoo and Senator Owen so that he might discuss it with them.

"Nov. 17, 1913. Paul Warburg telephoned about his trip to Washing­ton. Later, he and Mr. Jacob Schiff came over for a few minutes. Warburg did most of the talking. He had a new suggestion in regard to grouping the regional reserve banks so as to get the units welded to­gether and in easier touch with the Federal Reserve Board."

Colonel House was often referred to as the "unofficial" Secretary of State. It would be more appropriate to call Mr. House your "unofficial" President during the Wilson years, for it was House who was representing you at Ver­sailles. When Wilson went over, the European politicians laughed at him for his self-importance. They knew who pulled his puppet strings.

Mr. House also wrote in his memoirs that he and Wilson knew that in passing the Federal Reserve Act they had created an instrument more powerful than the Supreme Court. The Federal Reserve Board of Governors is a Supreme Court of Finance, and it forced the Supreme Court to its knees in 1935 when the Justices were made to approve the criminal conspiracy of Roosevelt, Morgenthau, and the international gold dealers to alter the price of gold. If the Justices had disapproved, writes Secretary of the Treasury Morgenthau, "We were ready to rush through an alternate policy."

Warburg's plan to get the units welded together was merely an indication of his anxiety to get them under as tight control as possible. House's papers also reveal it was he who gave Warburg's name to Wilson as candidate for Gover­nor of the first Federal Reserve Board. Wilson approved the choice because of Warburg's interest and experience in currency problems under both Re­publican and Democratic administrations.

You see, the more egotistical a man the more probable will be his own won­drous diary of activities and thereby history can be rebuilt. Today, of course, it is voice tapes which will contain the documentation. Evil men always write the historical plays for the stage of life; for honorable men, with ego under control instead of controlling them, care not about the wondrous exploits, for the honor and truth are most natural to them and certainly nothing to be noted in documents.

Woodrow Wilson had been piqued by the consistent opposition to the Federal Reserve Act in Congress, and he was haunted by the fear that he would not be able to deliver the goods to his employers. When the bill finally reached him, on December 23, 1913, he refused at first to sign it because of the provisions for the selection of Class B Directors. Bernard Baruch (relates William L. White in his biography of that great man), a principal contributor to Wilson's campaign fund, hurried over to the White House and told Wilson it did not matter. That could be fixed up later; the main thing was to get the thing signed into law. With this reassurance, Wilson signed the Federal Reserve Act on December 23, 1913. On that day the Constitution ceased to be the governing covenant of the American people and your liberties were handed over to a small group of international bankers.

That same day Representative Moore of Kansas said, on the floor of the House of Representatives:

"The President of the United States now becomes the absolute dictator of all the finances of the country. He appoints a controlling board of seven men, all of whom belong to his political party, even though it is a minority. The Secretary of the Treasury is to rule supreme whenever there is a difference of opinion between himself and the Federal Re­serve Board. AND, only one member of the Board is to pass out of of­fice while the President is in office."

The ten year terms of office of the members of the Board, lengthened by the Banking Act of 1935 to FOURTEEN YEARS, meant that these dictators of finance, although not elected by the people, held office longer than any elected official. Now, they may hold office longer than three Presidents.

CONGRESSMAN CHARLES A. LINDBERGH

It remained for Congressman Lindbergh to make the final statement on the swindle which had been perpetrated on the American people. Speaking after Representative Moore on that day of December 23, 1913, he said:

"This Act establishes the most gigantic trust on Earth. When the President signs this bill, the invisible government by the monetary power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The peo­ple must make a declaration of independence to relieve themselves from the monetary power. This they will be able to do by taking con­trol of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress. The division of Congress into political parties is a crime. The main object of the bosses in both political parties is to get offices and grant special favors at the people's expense. This is inherently a national government, and that is why party government is unsuccessful in dealing with economic problems. If we had a people's Congress, there would be stability. The greatest crime of Congress is its currency system. The worst leg­islative crime of the ages is perpetrated by this banking and currency bill. The caucus and the party bosses have again operated and pre­vented the people from getting the benefits of their own government."

Yes, of course, this opposition is what eventually resulted in the death of his grandson who was kidnapped and held for ransom and "silence".

Lindbergh was overly optimistic in thinking that the trust dictatorship of the United States would last only a few years. The American people were kept from rising against oppression at home by being sent abroad to fight in two world wars in which you as a people had no immediate political or economic stake. Between wars, two great depressions kept your people scrambling for your daily bread. You simply have not really had the time to object to any­thing and worse, they made sure you didn't know you had anything to which to object. Even you who are reading this book: less than one one hundredth percent of the readers have any notion about the Federal Reserve System and certainly have no notion as to how it came about--you will NOT find it taught at any level of growth within the political academia.

Lindbergh's theory that party government is unsuccessful in dealing with eco­nomic problems could neither be proved or disproved, because party govern­ment has not dealt with economic problems since the days of Jefferson and Adams.The architects and contrivers of the economic inequalities and insta­bilities existing in your country are the leaders and owners of the major po­litical parties. They will not move to improve them; they are placed there to insure their continuance until such time as they can be cemented within the pages of a new Constitution which will lock the door of your prison cell for­ever more. Who of you are willing to raise your voice against this dragon?

How many of you will claim to be doing the work of God and stand silent be­cause Satan is telling you, "God wouldn't mingle in Caesar's world."? Caesar does not have a world--he has stolen yours; that which was gifted by Creator for your use. Creator is come forth again in truth of the WORD WHICH IS to reclaim His property--who will stand with us, the Hosts and Guardians? So be it.

How many do you know who have read almost none of the Journals, pro­nounce their judgment based upon denouncement of another or from fear, and resume the cursing and floundering in helpless wonderment about "what to do"? How many? How many, based just on the perusal of one Wm. Cooper who has neither read the Journals nor cares to participate in truth--only HIS projection of furthering the lie? How many of you know ones who cast aside truth through statements made against this scribe from the Gate­house in Sedona? Do you actually believe, oh ye of so little faith, that your Father/Mother Creator would leave you without resource of instructions during this time of transition and tribulation upon your planet? Satan leaves you in blindness and without recourse--NOT GOD. Satan will pronounce that he will "do it for you". GOD WILL NOT--GOD WILL TELL YOU "HOW' AND YOU WILL DO OF IT IN YOUR OWN FREE-WILL. IF YOU CARE NOT ENOUGH TO RISE AND STAND FOR SELF, BROTHER, NATION AND PLANET--THEN YE SHALL DESERVE WHATEVER SHALL BE THINE HARVEST. TODAY IS THE DAY OF PLANTING AND THE GROWING SEA­SON IS ALMOST FINISHED--WHAT KIND OF HARVEST SHALL YE REAP? AMEN.

LOUIS T. MC FADDEN (R-PA.)

Dharma, allow us a rest please. This man is great enough to devote at least two chapters to this great energy. He made a speech to the House of Representatives on June 10, 1932, and it is worthy of complete reproduction herein and so shall it be.

I shall await your return to the keyboard. The pressures are great on you ones, Dharma, but you shall be sustained and Light of Truth shall be your legacy to a darkened land and people. YOU DO NOT WALK ALONE AND THOSE WHO HAVE COME BEFORE AND BROUGHT FORTH TRUTH SHALL BE HONORED FOR THE DAY OF THE LORD IS AT HAND. GLORY AND TRUTH IN THE FREEDOM OF THAT WHICH IS SHALL AGAIN SHINE ACROSS THE LANDS. TAKE MY HAND AND I SHALL SHOW YOU THE WAY, IS THE PROMISE. YE SHALL DO OF THE FULFILLING! SO BE IT IN THE POWER OF THAT WHICH I AM.

[wave]

PJ 17

CHAPTER 9

REC #2 HATONN

SUNDAY, JULY 8, 1990 10:11 A.M. YEAR 3 DAY 326

TOLD LIKE IT IS

Rep. Louis T. McFadden rose from office boy to become cashier and president of the First National Bank, Canton, Pa., before being elected to the U.S Congress. There he served with distinction for 20 years, including 12 years as Chairman of the Committee on Banking and Currency, making him one of the foremost financial authorities in America. Relentlessly he fought for fiscal integrity and a return to constitutional government.

On June 10, 1932, in the midst of the great Depression, he addressed the House of Representatives. His historic speech was included in his testimony later before the Rules Committee, in connection with his Herculean efforts to obtain a sweeping investigation of the entire Federal Reserve System, and has been widely reprinted since then--unfortunately, it seems to have made little impact on the populace who have since stopped reading--well over 65 percent of the American public DO NOT EVEN READ ONE BOOK A YEAR. HOW MANY HAVE YOU READ THIS YEAR? AND, HOW ABOUT THAT ONE YOU HAVE BEEN TRYING TO GET TO READ THESE JOURNALS? Well, relax, for it was planned that way by your adversaries against the day this information would flow forth for the remaining media is TOTALLY CONTROLLED, as are almost ALL publishing outlets. To get to the top of the "best seller" listing--you the people will have to demand it be put there, because the word has gone forth from the powers that be to ban publication and distribution of the Phoenix Journals. IT SHALL NOT HAP­PEN--THE INSTRUCTIONS AND TRUTH OF GOD SHALL GO FORTH THROUGHOUT THE LANDS AND THE LANDS SHALL BE RECLAIMED UNTO HIS KINGDOM. SO SHALL IT COME TO PASS--AND IT SHALL BE WITHIN THIS GENERATION THAT IT SHALL BE MADE, OR BROKEN, THE COVENANT WITH GOD.

For you researchers and confirmists, it will be found on pages 12595-12603 of the Congressional Record:

QUOTE:

Mr. McFADDEN. Mr. Chairman, at the present session of Congress we have been dealing with emergency situations. We have been dealing with the effect of things rather than with the cause of things. In this particular discussion I shall deal with some of the causes that lead up to these proposals. There are underlying principles which are responsible for conditions such as we have at the present time and I shall deal with one of these in particular which is tremendously important in the consideration that you are now giving to this bill.

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 and the people 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. 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 the 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 who control it.

Some people think the Federal Reserve banks are United States Government institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislation; and there are those who maintain an interna­tional propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

Those 12 private credit monopolies were deceitfully and disloyally foisted upon this country by bankers who came here from Europe and who repaid us for our hospitality by undermining our American institu­tions. Those bankers took money out of this country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the sepa­rate peace between Germany and Russia and thus drove a wedge be­tween the allies in the World War. They financed Trotsky's mass meetings of discontent and rebellion in New York. They paid Trot­sky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian revolution and they placed a large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Rus­sian children flung far and wide from their natural protectors. They have since begun the breaking up of American homes and the disper­sal of American children.

It has been said that President Wilson was deceived by the at­tentions of these bankers and by the philanthropic poses they assumed. It has been said that when he discovered the manner in which he had been misled by Colonel House, he turned against that busybody, that "holy monk" of the financial empire, and showed him the door. He had the grace to do that, and in my opinion he deserves great credit for it.

President Wilson died a victim of deception. When he came to the Presidency, he had certain qualities of mind and heart which entitled him to a high place in the councils of this Nation; but there was one thing that he was not and which he never aspired to be; he was not a banker. He said that he knew very little about banking. It was, therefore, on the advice of the others that the iniquitous Federal Reserve Act, the death warrant of American liberty, became law in his adminis­tration.

Mr. Chairman, there should be no partisanship in matters con­cerning the banking and currency affairs of this country, and I do not speak with any.

In 1912 the National Monetary Association, under the chairman­ship of the late Senator Nelson W. Aldrich, made a report and pre­sented a vicious bill called the National Reserve Association bill. This bill is usually spoken of as the Aldrich bill. Senator Aldrich did not write the Aldrich bill. He was the tool, but not the accomplice, of the European-born bankers who for nearly 20 years had been scheming to set up a central bank in this country and who in 1912 had spent and were continuing to spend vast sums of money to accomplish their pur­pose.

The Aldrich bill was condemned in the platform upon which Theodore Roosevelt was nominated in the year 1912, and in that same year, when Woodrow Wilson was nominated, the Democratic platform, as adopted in the Baltimore convention, expressly stated: "We are opposed to the Aldrich plan for a central bank." This was plain language. The men who ruled the Democratic Party then promised the people that if they were returned to power there would be no cen­tral bank established here while they held the reins of government. Thirteen months later that promise was broken, and the Wilson ad­ministration, under the tutelage of those sinister Wall Street figures who stood behind Colonel House, established here in our free country the worm-eaten monarchical institution of the "king's bank" to control us from the top downward, and to shackle us from the cradle to the grave. The Federal Reserve Act destroyed our old and characteristic way of doing business; it discriminated against our one-name commer­cial paper, the finest in the world; it set up the antiquated two-name paper, which is the present curse of this country, and which has wrecked every country which has ever given it scope; it fastened down upon this country the very tyranny from which the framers of the Con­stitution sought to save us.

One of the greatest battles for the preservation of this Republic was fought out here in Jackson's day, when the Second Bank of the United States, which was founded upon the same false principles as those which are exemplified in the Federal Reserve Act, was hurled out of existence. After the downfall of the Second Bank of the United States in 1837, the country was warned against the dangers that might ensue if the predatory interests, after being cast out, would come back in disguise and unite themselves to the Executive, and through him ac­quire control of the government. That is what the predatory interests did when they came back in the livery of hypocrisy and under false pre­tenses obtained the passage of the Federal Reserve Act.

The danger that the country was warned against came upon us and is shown in the long train of horrors attendant upon the affairs of the traitorous and dishonest Federal Reserve Board and the Federal Re­serve banks. Look around you when you leave this chamber and you will see evidences of it on all sides. This is an era of economic misery and for the conditions that caused that misery, the Federal Reserve board and the Federal Reserve banks are fully liable. This is an era of financed crime and in the financing of crime, the Federal Reserve Board does not play the part of a disinterested spectator.

It has been said that the draughtsman who was employed to write the text of the Federal Reserve bill used the text of the Aldrich bill for his purpose. It has been said that the language of the Aldrich bill was used because the Aldrich bill had been drawn up by expert lawyers and seemed to be appropriate. It was indeed drawn up by lawyers. The Aldrich bill was created by acceptance bankers of European origin in New York City. It was a copy and in general a translation of the statutes of the Reichsbank and other European central banks.

Half a million dollars was spent on one part of the propaganda or­ganized by those same European bankers for the purpose of mislead­ing public opinion in regard to it, and for the purpose of giving Congress the impression that there was an overwhelming popular de­mand for that kind of banking legislation and the kind of currency that goes with it, namely, an asset currency based on human debts and obli­gations instead of an honest currency based on gold and silver values. Dr. H. Parker Willis had been employed by Wall Street bankers and propagandists and when the Aldrich measure came to naught and he obtained employment from CARTER GLASS to assist in drawing a banking bill for the Wilson administration, he appropriated the text of the Aldrich bill for his purpose. There is no secret about it. The text of the Federal Reserve Act was tainted from the beginning.

Not all of the Democratic Members of the Sixty-third Congress voted for his great deception. Some of them remembered the teach­ings of Jefferson; and, through the years, there has been no criticism of the Federal Reserve Board and the Federal Reserve banks so honest, so outspoken, and so unsparing as those which have been voiced here by Democrats. Again, although a number of Republicans voted for the Federal Reserve Act, the wisest and most conservative members of the Republican Party would have nothing to do with it and voted against it. A few days before the bill came to a vote, Sen. Henry Cabot Lodge, of Massachusetts, wrote to Sen. John W. Weeks as follows:

SENATOR HENRY CABOT LODGE

New York City, December 17, 1913.

MY DEAR SENATOR WEEKS: * * * Throughout my public life I have supported all measures designed to take the government out of the banking business * * *. This bill puts the government into the banking business as never before in our history and makes, as I understand it, all notes govern­ment notes when they should be bank notes.

The powers vested in the Federal Reserve Board seem to me highly dan­gerous, especially where there is political control of the board. I should be sorry to hold stock in a bank subject to such domination. The bill as it stands seems to me to open the way to a vast inflation of the currency. There is no necessity of dwelling upon this point after the remarkable and most powerful argument of the senior Senator from New York. I can be content here to follow the example of the English candidate for Parliament who thought it enough "to say ditto to Mr. Burke". I will merely add that I do not like to think that any law can be passed which will make it possible to submerge the gold standard in a flood of irredeemable paper currency.

I had hoped to support this bill, but I can not vote for it as it stands, be­cause it seems to me to contain features and to rest upon principles in the highest degree menacing to our prosperity, to stability in business, and to the general welfare of the people of the United States.

Very sincerely yours,

HENRY CABOT LODGE.

In the 18 years which have passed since Senator Lodge wrote that letter of warning all of his predictions have come true. The Govern­ment is in the banking business as never before. Against its will it has been made the backer of horsethieves and card sharps, bootleggers, smugglers, speculators, and swindlers in all parts of the world. Through the Federal Reserve Board and the Federal Reserve banks the riffraff of every country is operating on the public credit of the United States Government. Meanwhile, and on account of it, we our­selves are in the midst of the greatest depression we have ever known. Thus the menace to our prosperity, so feared by Senator Lodge, has indeed struck home. From the Atlantic to the Pacific our country has been ravaged and laid waste by the evil practices of the Federal Re­serve Board and the Federal Reserve banks and the interests which control them. At no time in our history has the general welfare of the people of the United States been at a lower level or the mind of the people so filled with despair.

Recently in one of our states 60,000 dwelling houses and farms were brought under the hammer in a single day. According to the Rev. Father Charles E. Coughlin, who has lately testified before a commit­tee of this House, 71,000 houses and farms in Oakland County, Mich., have been sold and their erstwhile owners dispossessed. Similar occur­rences have probably taken place in every county in the United States. The people who have thus been driven out are the wastage of the Fed­eral Reserve Act. They are the victims of the dishonest and unscrupu­lous Federal Reserve Board and the Federal Reserve banks. Their children are the new slaves of the auction block in the revival here of the institution of human slavery.

In 1913, before the Senate Banking and Currency Committee, Mr. Alexander Lassen made the following statement:

`But the whole scheme of a Federal Reserve bank with its commercial-pa­per basis is an impractical, cumbersome machinery, is simply a cover, to find a way to secure the privilege of issuing money and to evade payment of as much tax upon circulation as possible, and then control the issue and maintain, in­stead of reduce, interest rates. It is a system that, if inaugurated, will prove to the disadvantage of the States. It will mean continued shortage of actual money and further extension of credits; for when there is a lack of real money people have to borrow credit to their cost.'

A few days before the Federal Reserve Act was passed Sen. Elihu Root denounced the Federal Reserve bill as an outrage on our liber­ties and made the following prediction:

`Long before we wake up from our dreams of prosperity through an in­flated currency, our gold, which alone could have kept us from catastrophe, will have vanished and no rate of interest will tempt it to return.'

If ever a prophecy came true, that one did. It was impossible, how­ever, for those luminous and instructed thinkers to control the course of events. On December 23, 1913, the Federal Reserve bill became law, and that night Colonel House wrote to his hidden master in Wall Street as follows:

COLONEL HOUSE, AGAIN

'I want to say a word of appreciation to you for the silent but no doubt ef­fective work you have done in the interest of currency legislation and to con­gratulate you that the measure has finally been enacted into law. We all know that an entirely perfect bill, satisfactory to everybody, would have been an im­possibility, and I feel quite certain fair men will admit that unless the Presi­dent had stood as firm as he did we should likely have had no legislation at all. The bill is a good one in many respects; anyhow good enough to start with and to let experience teach us in what direction it needs perfection, which in due time we shall then get. In any event you have personally good reason to feel gratified with what has been accomplished.'

The words "unless the President had stood as firm as he did we should likely have had no legislation at all", were a gentle reminder that it was Colonel House himself, the "holy monk", who had kept the President firm.

The foregoing letter affords striking evidence of the manner in which the predatory interests then sought to control the Government of the United States by surrounding the Executive with the personality and the influence of a financial Judas. Left to itself and to the conduct of its own legislative functions without pressure from the Executive, the Congress would not have passed the Federal Reserve Act. Ac­cording to Colonel House, and since this was his report to his master, we may believe it to be true, the Federal Reserve Act was passed be­cause Wilson stood firm; in other words because Wilson was under the guidance and control of the most ferocious usurers in New York through their hireling, House. The Federal Reserve Act became law the day before Christmas Eve in the year 1913, and shortly afterwards the German international bankers, Kuhn, Loeb & Co., sent one of their partners here to run it.

In 1913, when the Federal Reserve bill was submitted to the Democratic caucus, there was a discussion in regard to the form the proposed paper currency should take.

The proponents of the Federal Reserve Act, in their determination to create a new kind of paper money, had not needed to go outside of the Aldrich bill for a model. By the terms of the Aldrich bill, bank notes were to be issued by the national Reserve Association and were to be secured partly by gold or lawful money and partly by circulating evidences of debt. The first draft of the Federal Reserve bill presented the same general plan, that is, for bank notes as opposed to govern­ment notes, but with certain differences of regulation.

THE LEGACY OF WILLIAM JENNINGS BRYAN

When the provision for the issuance of Federal Reserve Notes was placed before President Wilson he approved of it, but other Democrats were more mindful of Democratic principles and a great protest greeted the plan. Foremost amongst those who denounced it was William Jennings Bryan, the Secretary of State. Bryan wished to have the Federal Reserve Notes issued as government obligations. President Wilson had an interview with him and found him adamant. At the conclusion of the interview Bryan left with the understanding that he would resign if the notes were made bank notes. The President then sent for his Secretary and explained the matter to him. Mr. Tu­multy went to see Bryan and Bryan took from his library shelves a book containing all the Democratic platforms and read extracts from them bearing on the matter of the public currency. Returning to the President, Mr. Tumulty told him what had happened and ventured the opinion that Mr. Bryan was right and that Mr. Wilson was wrong. The President then asked Mr. Tumulty to show him where the Democratic Party in its national platforms had ever taken the view indicated by Bryan. Mr. Tumulty gave him the book, which he had brought from Bryan's house, and the President read very carefully plank after plank on the currency. He then said, "I am convinced there is a great deal in what Mr. Bryan says", and thereupon it was arranged that Mr. Tumulty should see the proponents of the Federal Reserve bill in an effort to bring about an adjustment of the matter.

The remainder of this story may be told in the words of Senator Glass. Concerning Bryan's opposition to the plan of allowing the pro­posed Federal Reserve Notes to take the form of bank notes and the manner in which President Wilson and the proponents of the Federal Reserve bill yielded to Bryan in return for his support of the measure, Senator Glass makes the following statement:

`The only other feature of the currency bill around which a conflict raged at this time was the note-issue provision. Long before I knew it, the President was desperately worried over it. His economic good sense told him the notes should be issued by the banks and not by the government; but some of his ad­visers told him Mr. Bryan could not be induced to give his support to any bill that did not provide for a "Government Note". There was in the Senate and House a large Bryan following which, united with a naturally adversary party vote, could prevent legislation. Certain overconfident gentlemen proffered their services in the task of "managing Bryan". They did not budge him. * * * When a decision could no longer be postponed the President summoned me to the White House to say he wanted Federal Reserve Notes to "be obliga­tions of the United States". I was for an instant speechless. With all the earnestness of my being I remonstrated, pointing out the unscientific nature of such a thing, as well as the evident inconsistency of it.

"'There is not, in truth, any Government obligation here, Mr. President", I exclaimed. "It would be a pretense on its face. Was there ever a government note based primarily on the property of banking institutions? Was there ever a government issue not one dollar of which could be put out except by de­mand of a bank? The suggested government obligation is so remote it could never be discerned," I concluded, out of breath.

"'Exactly so, Glass", earnestly said the President. "Every word you say is true; the government liability is a mere thought. And so, if we can hold to the substance of the thing and give the other fellow the shadow, why not do it, if thereby we may save our bill?"'

Shadow and substance! One can see from this how little President Wilson knew about banking. Unknowingly, he gave the substance to the international banker and the shadow to the common man. Thus was Bryan circumvented in his efforts to uphold the Democratic doctrine of the rights of the people. Thus the uphold blur" upon the bill was perpetrated. The "unscientific blur", however, was not the fact that the United States government, by the terms of Bryan's edict, was obliged to assume as an obligation whatever currency was issued. Mr. Bryan was right when he insisted that the United States should pre­serve its sovereignty over the public currency. The "unscientific blur" was the nature of the currency itself, a nature which makes it unfit to be assumed as an obligation of the United States government. It is the worst currency and the most dangerous this country has ever known. When the proponents of the act saw that Democratic doctrine would not permit them to let the proposed banks issue the new currency as bank notes, they should have stopped at that. They should not have foisted that kind of currency, namely, an asset currency, on the United States Government. They should not have made the government li­able on the private debts of individuals and corporations and, least of all, on the private debts of foreigners.

The Federal Reserve Note is essentially unsound.

As Demmerer says:

`The Federal Reserve Notes, therefore, in form have some of the qualities of government paper money, but, in substance, are almost a pure asset cur­rency possessing a government guaranty against which contingency the gov­ernment has made no provision whatever.'

* * * They are obligations of the government for which the United States has received nothing and for the payment of which at any time it assumes the responsibility looking to the Federal Reserve Bank to recoup itself.'

If the United States Government is to redeem the Federal Reserve Notes when the general public finds out what it costs to deliver this flood of paper money to the 12 Federal Reserve banks, and if the gov­ernment has made no provision for redeeming them, the first element of their unsoundness is not far to seek.

Before the Senate Banking and Currency Committee, while the Federal Reserve bill was under discussion, Mr. Crozier, of Cincinnati, said:

MR. CROZIER AGAIN

`In other words, the imperial power of elasticity of the public currency is wielded exclusively by these central corporations owned by the banks. This is a life and death power over all local banks and all business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By making money artificially scarce interest rates throughout the country can be arbitrarily raised and the bank tax on all business and cost of living increased for the profit of the banks owning these regional central banks, and without the slightest benefit to the people. These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency and all public revenues of the United States. Not a dollar can be put into circulation among the people by their Government without the consent of and on terms fixed by these 12 private money trusts.'

In defiance of this and all other warnings, the proponents of the Federal Reserve Act created the 12 private credit corporations and gave them an absolute monopoly of the currency of the United States, not of Federal Reserve Notes alone, but of all the currency. The Fed­eral Reserve Act provided ways by means of which the gold and gen­eral currency in the hands of the American people could be obtained by the Federal Reserve banks in exchange for Federal Reserve Notes, which are not money but merely promises to pay money. Since the evil day when this was done the initial monopoly has been extended by vi­cious amendments to the Federal Reserve Act and by the unlawful and treasonable practices of the Federal Reserve Board and the Federal Reserve banks.

Mr. Chairman, when a Chinese merchant sells human hair to a Paris wigmaker and bills him in dollars, the Federal Reserve banks can buy his bill against the wigmaker and then use that bill as collateral for Federal Reserve Notes. The United States government thus pays the Chinese merchant the debt of the wigmaker and gets nothing in return except a shady title to the Chinese hair.

Mr. Chairman, if a Scotch distiller wishes to send a cargo of Scotch whisky to the United States, he can draw his bill against the purchasing bootlegger in dollars; and after the bootlegger has accepted it by writ­ing his name across the face of it, the Scotch distiller can send that bill to the nefarious open discount market in New York City, where the Federal Reserve Board and the Federal Reserve banks will buy it and use it as collateral for a new issue of Federal Reserve Notes. Thus the Government of the United States pays the Scotch distiller for the whisky before it is shipped; and if it is lost on the way, or if the Coast Guard seizes it and destroys it, the Federal Reserve banks simply write off the loss and the government never recovers the money that was paid to the Scotch distiller. While we are attempting to enforce pro­hibition here, the Federal Reserve Board and the Federal Reserve banks are financing the distillery business in Europe and are paying bootleggers' bills with the public credit of the United States Gov­ernment."

I will interrupt this dissertation at this point, please. I ask that all you readers fully understand the contents of this speech for it is the truth in out­line and detail of that which has destroyed your nation and pulled down your people. Please look most carefully at these parables for in seeing the truth, you can slay the dragon. Your nation, your populace, your Constitution and your planet are now in final death throes. What will you do? There will be no knights in shining armor, no space cadets to whisk you away aboard ships of silver to save your assets--YOU ARE GOING TO SAVE YOURSELF FROM THIS ENTANGLED NET OF IMPRISONMENT AND IMPOVERISHMENT OR YE SHALL PERISH AS A NATION AND PEOPLES WITHIN ITS DEATH-GRIP. SO BE IT AND SELAH--SAALOME'.

PJ 17

CHAPTER 10

REC #3 HATONN

SUNDAY, JULY 8, 1990 4:50 P.M. YEAR 3 DAY 326

McFADDEN'S SPEECH CONTINUED

Mr. Chairman, if a German brewer ships beer to this country or anywhere else in the world and draws his bill for it in dollars, the Fed­eral Reserve banks will buy that bill and use it as collateral for Federal Reserve Notes. Thus, they compel our government to pay the German brewer for his beer. Why should the Federal Reserve Board and the Federal Reserve banks be permitted to finance the brewing industry of Germany, either in this way or as they do by compelling small and fear­ful United States banks to take stock in the Isenbeck Brewery and in the German bank for brewing industries?

Mr. Chairman, if Dynamit Nobel of Germany wishes to sell dy­namite to Japan to use in Manchuria or elsewhere, it can draw its bill against its Japanese customers in dollars and send that bill to the ne­farious open discount market in New York City, where the Federal Reserve Board and the Federal Reserve banks will buy it and use it as collateral for a new issue of Federal Reserve Notes, while at the same time the Federal Reserve Board will be helping Dynamit Nobel by stuffing its stock into the United States banking system. Why should we send our representatives to the disarmament conference at Geneva while the Federal Reserve Board and the Federal Reserve banks are making our government pay Japanese debts to German munitions makers?

Mr. Chairman, if a bean grower of Chile wishes to raise a crop of beans and sell them to a Japanese customer, he can draw a bill against his prospective Japanese customer in dollars and have it purchased by the Federal Reserve Board and the Federal Reserve banks and get the money out of this country at the expense of the American public be­fore he has even planted the beans in the ground.

Mr. Chairman, if a German in Germany wishes to export goods to South America or anywhere else, he can draw his bill against his cus­tomer and send it to the United States and get the money out of this country before he ships or even manufactures the goods.

Mr. Chairman, why should the currency of the United States be is­sued on the strength of Chinese human hair? Why should it be issued on the trade whims of a wigmaker? Why should it be issued on the strength of German beer? Why should it be issued on a crop of un­planted beans to be grown in Chile for Japanese consumption? Why should the Government of the United States be compelled to issue many billions of dollars every year to pay the debts of one foreigner to another foreigner? Was it for this that our national-bank depositors had their money taken out of our banks and shipped abroad? Was it for this they had to lose it? Why should the public credit of the United States Government and likewise money belonging to our national-bank depositors be used to support foreign brewers, narcotic drug vendors, whisky distillers, wigmakers, human-hair merchants, Chilean bean growers, and the like? Why should our national-bank depositors and our government be forced to finance the munitions factories of Ger­many and Soviet Russia?

Mr. Chairman, if a German, in Germany, wishes to sell wheel­barrows to another German, he can draw a bill in dollars and get the money out of the Federal Reserve banks before an American farmer could explain his request for a loan to move his crop to market. In Germany, when credit instruments are being given, the creditors say, "See you, it must he of a kind that I can cash at the reserve". Other foreigners feel the same way. The reserve to which these gentry refer is our reserve, which, as you know, is entirely made up of money be­longing to American bank depositors. I think foreigners should cash their own trade paper and not send it over here to bankers who use it to fish cash out of the pockets of the American people.

Mr. Chairman, there is nothing like the Federal reserve pool of confiscated bank deposits in the world. It is a public trough of Ameri­can wealth in which foreigners claim rights equal to or greater than those of Americans. The Federal Reserve banks are the agents of the foreign central banks. They use our bank depositors' money for the benefit of their foreign principals. They barter the public credit of the United States Government and hire it out to foreigners at a profit to themselves.

All this is done at the expense of the United States Government, and at a sickening loss to the American people. Only our great wealth enabled us to stand the drain of it as long as we did.

I believe that the nations of the world would have settled down af­ter the World War more peacefully if we had not had this standing temptation here--this pool of our bank depositors' money given to pri­vate interests and used by them in connection with illimitable drafts upon the public credit of the United States Government. The Federal Reserve Board invited the world to come in and to carry away cash, credit, goods, and everything else of value that was movable. Values amounting to many billions of dollars have been taken out of this coun­try by the Federal Reserve Board and the Federal Reserve banks for the benefit of their foreign principals. The United States has been ran­sacked and pillaged. Our structures have been gutted and only the walls are left standing. While this crime was being perpetrated every­thing in the world could rake up to sell us was brought in here at our own expense by the Federal Reserve Board and the Federal Reserve banks until our markets were swamped with unneeded and unwanted imported goods priced far above their value and thus made to equal the dollar volume of our honest exports and to kill or reduce our fa­vorable balance of trade. As agents of the foreign central banks, the Federal Reserve Board and the Federal Reserve banks try by every means within their power to reduce our favorable balance of trade. They act for their foreign principals and they accept fees from foreign­ers for acting against the best interests of the United States. Naturally there has been great competition among foreigners for the favors of the Federal Reserve Board.

What we need to do is to send the reserves of our national banks home to the people who earned and produced them and who still own them and to the banks which were compelled to surrender them to predatory interests. We need to destroy the Federal Reserve pool, wherein our national-bank reserves are impounded for the benefit of foreigners. We need to make it very difficult for outlanders to draw money away from us. We need to save America for Americans.

Mr. Chairman, when you hold a $10 Federal Reserve Note in your hand you are holding a piece of paper which sooner or later is going to cost the Unites States Government $10 in gold, unless the government is obliged to give up the gold standard. It is protected by a reserve of 40 per cent, or $4 in gold. It is based on Limburger cheese, reputed to be in a foreign warehouse; or on cans purporting to contain peas but which may contain no peas but salt water instead; or on horse meat; il­licit drugs; bootleggers' fancies; rags and bones from Soviet Russia of which the United States imported over a million dollars' worth last year; on wine, whisky, natural gas, on goat or dog fur, garlic on the string, or Bombay ducks. If you like to have paper money which is se­cured by such commodities, you have it in the Federal Reserve Note. If you desire to obtain the thing of value upon which this paper cur­rency is based--that is, the Limburger cheese, the whisky, the illicit drugs, or any of the other staples--you will have a very hard time find­ing them. Many of these worshipful commodities are in foreign coun­tries. Are you going to Germany to inspect her warehouses to see if the specified things of value are there? I think not. And what is more, I do not think you would find them if you did go.

Immense sums belonging to our national-bank depositors have been given to Germany on no collateral security whatever. The Fed­eral Reserve Board and the Federal Reserve banks have issued United States currency on mere finance drafts drawn by Germans. Billions upon billions of our money has been pumped into Germany by the Federal Reserve Board and the Federal Reserve banks. Her worthless paper is still being negotiated here and renewed here on the public credit of the United States Government and at the expense of the American people. On April 27, 1932, the Federal Reserve outfit sent $750,000, belonging to American bank depositors, in gold to Germany. A week later, another $300,000 in gold was shipped to Germany in the same way. About the middle of May $12,000,000 in gold was shipped to Germany by the Federal Reserve Board and the Federal Reserve banks. Almost every week there is a shipment of gold to Germany. These shipments are not made for profit on exchange since German marks are below parity against the dollar.

Mr. Chairman, I believe that the national-bank depositors of the United States are entitled to know what the Federal Reserve Board and the Federal Reserve banks are doing with their money. There are millions of national-bank depositors in this country who do not know that a percentage of every dollar they deposit in a member bank of the Federal Reserve System goes automatically to the American agents of foreign banks and that all of their deposits can be paid away to for­eigners without their knowledge or consent by the crooked machinery of the Federal Reserve Act and the questionable practices of the Fed­eral Reserve Board and the Federal Reserve banks. Mr. Chairman, the American people should be told the truth by their servants in of­fice.

In 1930 we had over half a billion dollars outstanding daily to fi­nance foreign goods stored in or shipped between foreign countries. In its yearly total, this item amounts to several billion dollars. What goods are those upon which the Federal Reserve banks pledge several billion dollars of the public credit of the United States? What goods are those which are hidden in European and Asiatic storehouses and which have never been seen by any officer of this government, but which are being financed on the public credit of the United States Government? What goods are those upon which the United States Government is being obliged by the Federal Reserve banks to issue Federal Reserve Notes to the extent of several billion dollars a year?

The Federal Reserve Board and the Federal Reserve banks have been international bankers from the beginning, with the United States Government as their enforced banker and supplier of currency. But it is nonetheless extraordinary to see those 12 private credit monopolies buying the debts of foreigners against foreigners in all parts of the world and asking the Government of the United States for new issues of Federal Reserve Notes in exchange for them.

I see no reason why the American taxpayers should be hewers of wood and drawers of water for the European and Asiatic customers of the Federal Reserve banks. I see no reason why a worthless accep­tance drawn by a foreign swindler as a means of getting gold out of this country should receive the lowest and choicest rate from the Federal Reserve Board and be treated as better security than the note of an American farmer living on American land.

The magnitude of the acceptance racket, as it has been developed by the Federal Reserve banks, their foreign correspondents, and the predatory European-born bankers who set up the Federal Reserve in­stitution here and taught our own brand of pirates how to loot the people--I say the magnitude of this racket is estimated to be in the neighborhood of $9,000,000,000 a year (1932). In the past ten years it is said to have amounted to $90,000,000,000. In my opinion, it has amounted to several times as much. Coupled with this you have, to the extent of billions of dollars, the gambling in United States securities, which takes place in the same open discount market--a gamble upon which the Federal Reserve Board is now spending $100,000,000 a week.

Federal Reserve Notes are taken from the United States Gov­ernment in unlimited quantities. Is it strange that the burden of sup­plying these immense sums of money to the gambling fraternity has at last proved too heavy for the American people to endure? Would it not be a national calamity if the Federal Reserve Board and the Fed­eral Reserve banks should again bind this burden down on the backs of the American people and, by means of the long rawhide whips of the credit masters, compel them to enter upon another 17 years of slavery? They are trying to do that now. They are taking $100,000,000 of the public credit of the United States Government every week in addition to all their other seizures, and they are spending that money in the ne­farious open market in New York City in a desperate gamble to reestablish their graft as a going concern.

They are putting the United States Government in debt to the ex­tent of $100,000,000 a week, and with this money they are buying up our government securities for themselves and their foreign principals. Our people are disgusted with the experiments of the Federal Reserve Board. The Federal Reserve Board is not producing a loaf of bread, a yard of cloth, a bushel of corn, or a pile of cordwood by its check-kiting operations in the money market.

A fortnight or so ago great aid and comfort was given to Japan by the firm of A. Gerli & Sons, of New York, an importing firm, which bought $16,000,000 worth of raw silk from the Japanese Government. Federal Reserve Notes will be issued to pay that amount to the Japanese Government, and these notes will be secured by money belonging to our national-bank depositors.

Why should United States currency be issued on this debt? Why should United States currency be issued to pay the debt of Gerli & Sons to the Japanese Government? The Federal Reserve Board and the Federal Reserve banks think more of the silkworms of Japan than they do of American citizens. We do not need $16,000,000 worth of silk in this country at the present time, not even to furnish work to dy­ers and finishers. We need to wear home-grown and American-made clothes and to use our own money for our own goods and staples. We could spend $16,000,000 in the United States of America on American children and that would be a better investment for us than Japanese silk purchased on the public credit of the United States Government.

Mr. Speaker, on the 13th of January of this year I addressed the House on the subject of the Reconstruction Finance Corporation. In the course of my remarks I made the following statement:

'In 1928 the member banks of the Federal Reserve System bor­rowed $60,598,690,000 from the Federal Reserve banks on their 15-day promissory notes. Think of it! Sixty billion dollars payable upon demand in gold in the course of one single year. The actual payment of such obligations calls for six times as much monetary gold as there is in the entire world. Such transactions represent a grant in the course of one single year of about $7,000,000 to every member bank of the Federal Reserve System. Is it any wonder that there is a depression in this country? Is it any wonder that American labor, which ultimately pays the cost of all the banking operations of this country, has at last proved unequal to the task of supplying this huge total of cash and credit for the benefit of stock-market manipulators and foreign swindlers?

Mr. Chairman, some of my colleagues have asked for more specific information concerning this stupendous graft, this frightful burden which has been placed on the wage earners and taxpayers of the United States for the benefit of the Federal Reserve Board and the Federal Reserve banks. They were surprised to learn that member banks of the Federal Reserve System had received the enormous sum of $60,598,690,000 from the Federal Reserve Board and the Federal Reserve banks on their promissory notes in the course of one single year, namely, 1928. Another Member of this House, Mr. Beedy, the honorable gentleman from Maine, has questioned the accuracy of my statement and has informed me that the Federal Reserve Board denies absolutely that these figures are correct. This Member has said to me that the thing is unthinkable, that it cannot be, that it is beyond all rea­son to think that the Federal Reserve Board and the Federal Reserve banks should have so subsidized and endowed their favorite banks of the Federal Reserve System. This Member is horrified at the thought of a graft so great, a bounty so detrimental to the public welfare as sixty and a half billion dollars a year and more shoveled out to favored banks of the Federal Reserve System.

I sympathize with Mr. Beedy. I would spare him pain if I could, but the facts remain as I have stated them. In 1928, the Federal Reserve Board and the Federal Reserve banks presented the staggering amount of $60,598,690,000 to their member banks at the expense of the wage earners and taxpayers of the United States. In 1929, the year of the stockmarket crash, the Federal Reserve Board and the Federal Reserve banks advanced fifty-eight billions to members banks.

In 1930, while the speculating banks were getting out of the stock market at the expense of the general public, the Federal Reserve Board and the Federal Reserve banks advanced them $13,022,782,000. This shows that when the banks were gambling on the public credit of the United States Government as represented by Federal Reserve cur­rency, they were subsidized to any amount they required by the Fed­eral Reserve Board and the Federal Reserve banks. When the swindle began to fail, the banks knew it in advance and withdrew from the market. They got out with whole skins and left the people of the United States to pay the piper.

On November 2, 1931, I addressed a letter to the Federal Reserve Board asking for the aggregate total of member bank borrowings in the years 1928, 1929, 1930. In due course, I received a reply from the Federal Reserve Board, dated November 9, 1931, the pertinent part of which reads as follows:

-My Dear Congressman: In reply to your letter of November 2, you are advised that the aggregate amount of 15-day promissory notes of member banks during each of the past three calendar years has been as follows:

1928 $60,598,690,000
1929 $58,046,697,000
1930 $13,022,782,000

* * * *

Very truly yours,

Chester Morrill, Secretary.

This will show the gentleman from Maine the accuracy of my statement. As for the denial of these facts made to him by the Federal Reserve Board, I can only say that it must have been prompted by fright, since hanging is too good for a government board which permit­ted such a misuse of government funds and credit.

My friend from Kansas, Mr. McGugin, has stated that he thought the Federal Reserve Board and the Federal Reserve banks lent money by rediscounting. So they do, but they lend comparatively little that way. The real rediscounting that they do has been called a mere penny in the slot business. It is too slow for genuine high flyers. They dis­courage it. They prefer to subsidize their favorite banks by making these $60,000,000,000 advances, and they prefer to acquire acceptance in the notorious open discount market in New York, where they can use them to control the prices of stocks and bonds on the exchanges. For every dollar they advanced on rediscounts in 1928 they lent $33 to their favorite banks for gambling purposes. In other words, their re­discounts in 1928 amounted to $1,814,271,000 [Chelas, do you hear this? And this was in 1928; what think you it is today?], while their loans to member banks amounted to $60,598,690,000. As for their open-market operations, these are on a stupendous scale, and no tax is paid on the acceptances they handle; and their foreign principals, for whom they do a business of several billion dollars every year, pay no income tax on their profits to the United States Government.

This is the John Law swindle over again. The theft of Teapot Dome was trifling compared to it. What king ever robbed his subjects to such an extent as the Federal Reserve Board and the Federal Re­serve banks have robbed us? Is it any wonder that there have lately been 90 cases of starvation in one of the New York hospitals? Is it any wonder that the children of this country are being dispersed and aban­doned?

The government and the people of the United States have been swindled by swindlers de luxe to whom the acquisition of American gold or a parcel of Federal Reserve Notes presented no more difficulty than the drawing up of a worthless acceptance in a country not subject to the laws of the United States, by sharpers not subject to the jurisdic­tion of the United States courts, sharpers with a strong banking "fence" on this side of the water--a "fence" acting as a receiver of the worthless paper coming from abroad, endorsing it and getting the currency out of the Federal Reserve banks for it as quickly as possible, exchanging that currency for gold, and in turn transmitting the gold to its foreign confederates.

We shall continue with this speech in the upcoming chapter, taking up with the exploits of Ivar Kreuger.

Thank you, Dharma, it has indeed been a very long day of work this Sunday; let us continue on the morrow. Good-day and peace walk with you, chela. AHO.