WHERE'S THE GOLD?

On June 10, 1932 the House was debating a bill which would would expand the types of securities the Federal Reserve could trade when conducting monetary policy.  McFadden used this opportunity to launch a twenty-five minute tirade against the Federal Reserve, and in so doing became a legendary champion amongst conspiracy theorists.  However, just because a claim appears in the Congressional Record does not necessarily mean it is true. Here I present excerpts from his speech with my comments and analysis (the entire text may be found in the Congressional Record, pages  12595-12603). 

Mr. Chairman, we have in this country one of the most  corrupt institutions the world has ever known.  I refer to the  Federal Reserve Board and the Federal reserve banks.  The Federal Reserve Board, a Government board, has cheated the Government of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government.  It has done this through defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board and through the corrupt practices of the moneyed vultures who control it (C.R. p. 12595). 

     McFadden also made some important and accurate arguments.  During his speech on the House floor, he stated,  

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 ... 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 (C.R. pp. 12596-97). 

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