On June 20, 1932, in the midst of the Great Depression, Congressman Louis T. McFadden addressed the House of Representatives on this subject. Representative McFadden had previously served as president of the First National Bank, Canton, Pa.; and later he served as chairman of the Committee on Banking and Currency. Following are selected excerpts from his address: "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 customers;" "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 Notes, therefore, in form have some of the qualities of government paper money, but, in substance, are almost purely asset currency possessing a government guaranty against which contingency the government has made no provision whatever." "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..." "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.""Is not it high time that we had an audit of the Federal Reserve Board and the Federal Reserve Banks and an examination of all our governments bonds and securities and public monies instead of allowing the corrupt and dishonest Federal Reserve Board and the Federal Reserve Banks to speculate with those securities and this cash in the notorious open discount market of New York City? " "Every effort has been made by the Federal Reserve Board to conceal its power but the truth is the Federal Reserve Board has usurped the Government of the United States." "Mr. Chairman, when the Federal Reserve Act was passed the people of the United States did not perceive that a world system was being set up here that the United States was to be lowered to the position of a coolie country...and was to supply financial power to an international superstate-- a superstate controlled by international bankers and international industrialists acting together to enslave the World for their own pleasure."