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SfUV, C -G; K-S FiBTIU M T U V, ,Ur 0? JD ItY fn l .. ?L' :w - cine* the tacnet ry end fii& ic ii.: c o lia .r t < . t o F i i 1 to, t o f 19. -' 2 *tc., -» r .vti-bi i e and *€gu.. te tne Vi. lae o f Id ir a:.- .e t ic cu J &;<&:i, the :.rgenti « , I t a ly , Germany, f e Federal lecx rvt / t , o: u- .ii*, xations at.ve * ic; , ?ucu es rear Brit a i \9 et i. 1913 contemplated c o n t r o l5ing t ic volu.a o f tuM t ic; < id Da nk cre d it smey throw n t it po--e s o f tae Gove, rr.ient, prevent in.; eveec-aiva i« ue by &boorbing through Government taxes and having t ie people, out of th eir e&vin/s « .3 bci-fi .t o .iitr , bt$? bo »cc of tae Gov r . ismnUA ia f.iu i,e * ho old be in duction of coaAoditio aa . rvice. ut at it;, eu fficie n d to aiequat* y a-.ct v *ion e r 1 i in 1932 una*-:rto procu iio a by id per cent. Tae c. ation of ..o ie} t hrotie-h Covem- u.ni a* a * ae people able to x to mkm c it ? a-oney, in Gtiisany, Vith *:. m ao iey cad furnieoed i t to i t s indu t r i e s , i t ord . re a l. *y ioyed. f ive ;x re it inert 3~c t ic ecu? a-kpticn, end in addition b u ilt up an &no. atone to U& end tae or a. porch, sing Xt-g :aoet po e r f a eccnoaic cb t- ay i#-: po :r o people, and m ic ii fu rn i am t . ^ to &odv m in t iaduttri*.' - x .> r to itio n a , t..e \nifoj a er <-, i?. •it h c«pit* I rc , uired , c&iry i ivt ito ic e , p Gertaft-ay y * ana ; - 1- **ie , no not ent t u it .e r rnen i ‘ t- b i l l d It forte a a.*/, i r a i t s , by t.^e producer u ■>.■? th. t vou'd ap. t t.ne .unity prica • Tae le.a.,..:. yf Gorunav aavt unu rt^. -.n to the world in the e ffic ie n c c f i t s -a .u e tr ia i .r uttion , «;. v e il u world in lae v o l .*© *..id p.-rlection of it-a uU'itlaa^ o f o f --ur 1- estounr: i i>e a i a..ore "ujo ne coaeuaer . ad i t prevented any arbit .a.ry ri-isey. a cc.j. productica for a? a n 1 t-d ao x-r ,. i t a consumer.' *bi» ,Q--.r o f it ? ooae- t ic aonsy• e stablished uriteil it ... icy , wnica . e.v« fu i ... ..cm-.it to « .il tat. Gt-rwan O'.ly produce but . o i l &n i a c ”c . oa production. tae pureh- sing lt d r u h t« on i it s e a ie .u -t* sp etco, c e it: c .o.e t u..i d-/ubl i i t te v r , plane , and sotorired e uipneat fo r - c.r he ^ : iamm pro r. to , ur i upptus me Tie rnitt.i It t-.s nor fuc s t a i« German, vy tea rith, its sudden &na une?pected capture of nearly fell tae proaueti-ee ja cn i of Europe under a - i i i t : y do or die leadership, and co n tro llin g to l l rire .u&hjiir* the b i l l e d o *10 it-itkillled labor o f Europe. im x Cv ’ar : s jugulate tm value of Fir t , becsu-e oc dltnee and i .veit;. to tns Constitution o f the United c l a s s Fhy? on the Con? re;. ., in Article I , Section i.u o; create . ad "C ; ; •I ■ K i . ’Ji.- lh ; i- Vi-Ut THE :.OF.« Second, ever,; .ae*h r of ,i:ru . o f 1 i.n t t i 8 , Pv.rfcgraph 5, theexclusive duty to the ; t r tc o f the United £te le s e-aa ev Go-:u t ■t- a., toile t & ;;olcen oath to ry «eea>b*r o f Lae .•1,v ort iln cu t e'va .ion the Con titution of the Baited f t tee, to rat. "I B. do _o erally ear (or affirm) in t I r i l l ;uo ort end ,efend the Constitu tion of tic LUit ,-;d t t» ■ .-< i.inot a i l enfcsicw, f on p i an- do^e t i c , that I vii!. b ar true .'it.i a ano allegience to the £ ate; t hot X take this oblirstion freely without eny ital reservations or purpc e of evasion; .-ad th -t I v i i l >eU end feitn fu lly discharge t ic autX ; f me o-‘fic t on iita 1 <.a about to enter, so help -m God." Tui. i , bes.Mttse the ini'- •-. t eapi.oveent of iaerict.fi labor, energy, invention end productive fec i itic s of trie Aac rlc&n people •e ,ui* <.;• end imperatively deaende en ,uoi -3up... ly of aoney for the frt e r hen,;e of m&ximm coaaaoditi t had orvlcee b< the people, «mo ta t such aoney eh*. Li be controlled b> the Coagre s of the United States 20 t a t toe ideal us of exchange ad the jionet^ry unit of .-^ccount s.ua the indefensible privet« fe> "•l .ub 1ic Ip c. atroil^c vaose debt-pey 3 j! 0 ion or the indefeasible private contract ion, but shell ... tc g purchasing 0 ive the peop .e el e l l t i ^ r ^.n« 1 be ke pt th» properly ^mploaenWi -u. n th l Fourth, hec^Uic t * Constitution F./.CVJ, IVt Y to c e -a *>«?;, Court, Up wi Tender C& t s ) . ut Fo El: tn eu...utie supply of jjeney fro* one c.eneretioa to another. through t.ie powers of 1 ae C~np *e £ of the United £ t * W Centre y of trie lliitod ft tc tot oe subject to an toe direct ic.. of the be Pone. f t as United £tut is not only * uthorix.es Congress tat et i . to create .a. icy (I7. 1. f upraise F ifth , the ffaiiu e of Cong ess by public control to ieguk*t. contraction of aoaey i s 1no e>. it.ru; j.on ^nd resulted in toe indefensible ex^nsioa &ad c- nt» -ction of kO:ie> b; PfIVATi A 0* c*> M ,<3, partly ju stified by the necessity of tnc people for ixo adequate supply of moacv under modern coodition of maos production* Sixth, under th is system of tne uncontrolled end l ie d u <. p .rvioA tnd c i - tF oa t i v i of money bj orivute pardons, tut dope o’, profit «-t t*^ - s c n. tia f.xce.-i£ iv«. expansion of oton&v i ltd boo35 and through te . r of lose cun.n. x an ihuefen iblc con traction •itin ruinous results, under raicn 16,000 burrst n.vr u lie - *•’- the years, *ith hundreds of thousands of afcica&nis sod .aeaufacturere * ■ t t- e • busine saen, ead aL&ost complete ruin to tnc millions of farmers sne ttoc'smen in the United f t ^ lc.: . Seventh, be cease both trie Deitocrfetic Party and the rt?publics n Party ir * neir :l t - f or .s in 1 7 :1 , 1932, 1936 end 19l0 are pled.crd to est .b iu a *s:-u.id currency, -t a l l :>h e ra s,” Sound currency met as £ monetary unit of uniform, neat debt-pa} if pure as sing power, just to creditor and debtor a'-ike, ana toe? not moe.r ■-*, dollar acre index is 60 in /.ay, 1920; 107 in June, 19*15 i67 i:l * « c r « y » 19 5 and 106 on Peceebtr 20, 17/1* It It does tot mean * dollar uncontrolled by 9ov rn-.ent. hot not me* a a aollar issued by privet: parsons a* vi *g no po i t ice l rasp is.£>i-ity ior oo-cr or p: itic-ol co at xoI . Eighth, bee-au,- e the j notice of sound money and & doll r of table pure ha ing .*> r tics been fu lly deaonstru’ d by the evidence suhaitt d hefc e the conceit tee* of Co .rreus, particularly on HR 7530, 75th Coa: - . s , proposing tu t the C oven an t t, «•, ovrr aid employ the reserve banks cs an implement for erect log and re.pulct.ag tnc value oc uoney; because Senate Document '3 , 76th Congress, fu ll- end compl ^e; ■or every objection and give* tne soundest reason based on ascertain* i ft- ts justifying Cong sessional 6-:liC;j and fctccu/e tnc evidence on OK 599 , 77th Congress ( > '167), - of the Couai’ t e on Ba.i ing - ad Currency of the Vnite i Ct tea tn , iV.mer c ^iraaa r ” . f u ^ y jurJi i ts the wisdom of a resolute CongrcBBiou&l mandate regulating the value of « nay and pro viding tne means for it s accomplishment (cce pat e ::167, be «*.ta B ill 26 G, / 6tn Cong eas, introduced by bens.tor 4* .-!• loraa ana the cou.aent» the Until, beet:urt toe ob jection to Congresrsion i c>andatc nat been f u l'y one ere in be te t i * o v cibove referred t3 i i « sp ecial aeuortadtM ( ure 2191, hearings on HP. 5990, 771a Congress). Tent a, because at * ie nepta o ' the lo s t depress ion on fu .ll hearin.. • ■ before the Co. «i te< on ba i x.ng end Currency o f the Hvuse o f Repre^-eatalives, the t* ap eered the hii.ne t o f f i c i a l s o f tae tha:. t, l Grange, of the National Fenaerr* Union, o f the American F&ra Buret.u f e d e r a l .1 , o f tae Motional Course!' o f Farmer Cooperative®, end of the American Federation o f Labor, urgmg the pasee. e o f e b i l l , taen c e lle d the Goldsborough Bi 1, to do precisely t i e very thing, to « i t , to restore the pr^-depreseioh d o ’ (.iir index and . d . i t Reserve Soari and the ao itt-ry p o licy . at pa i, arid d irectin g the Federal Deserve Beaks and Federal ~ et r.y o f tat Treasury to curry out tn is declared Congre&sicnal Tsis b i l l *as pa. sed by 239-60 end eaa a lio -ea to f a i l in toe United ft . les D en ts by tau defeated Party then in >0 er (1935). Eleventh, because, .a.ice In t t i i e , the.*® greet farst organizations, rrp r.seatin g a i.ll ions of dues—pa. i;ig aeabe^j, . .\e Copies o f t-i. i r resolutions in p^r diy re *e ed t neir demands f o r t lie reform. nay be found, in ».he testimony above referred to ( le a . Doc• 3, e t c . ) . Tv-elf la , because tine Preri ent of 1. tie '-si led St* ter •;»,. nominated and elected in 1932, ia part, upon t ho very la sue err. pi ciged u iaseif repeatedly to t ae pc lie o f re? taring t te ji e-depjeosj.oa price level «..nd th* •o a fte r MAiatai lag i t , to ni e the people a d o lla r *hos... iebt-pa. xng purehe* ing po •cr oould 1 eaain the Thirteenth, bee ease * ae Cooai sioner eae fr.,-& one genera tion to another* u. egricu ltu t- o f the various tv. tec urged t i l s r e f ora <29 ju s tic e to the fe r u s ^ad ~toc*ute 1, e - in the atari a*:s before t at Cocixittee oa Agriculture «.a.i Fore tr, o: the United births Senate, 75tn Congress, June 19-7, xlth the ia. 1:/..treble erguu it o f ^pt-isL eoanitte-e represent 1 «g the .. t i n..l Co.-iciL o f Faraw-r Cooperatives, tar urn 0. . k i l l e r , •not , to; tiaoqy F: arte-wain, because stay at President of too United States in a acfs&.'e to C o a rcrs on h, 1937 . t ted ,.s f o l i o si -da:u -cra b lc. HTn over* Alaiia* — jarxly o f cur population e ri, agricu ltu re or i& i.idustr; . One-thir- i t s d&i'y breea of cur pop n tio n , tae ov--..r*ae i*iog sk^^oi ity o f *hich is i:i ep ricaltu re or industry , is ill-n ou riofced, i ; 1-cU ........ * l- : , ith cr -a , : <& i i-aou.fcdS.* •• . H ip th©..© *bo t o i l in factory &od o.i -e a^-ve pro-uised i t . (i . -c c&r. <.ot -tc. k* • ' >' o f cowoared * ith t ie -■). '• ,:t .ad-ir;:;, but instead o f r i. A'ig t or ' :• oi ae .fii'ftt.’ s and t-ae laborers o f th& country, tbs fa r* couaooity ind«» bj December f e ’ i to 72 aari tbe inde? of ft d o r y eay-o^aerrt f a i l fro® 111 r\ 7t,y to 97 in De.o^bor, and tat in d o o f fa cto r. >•&■”«• ire* 10 in .<ay to 14 in dtieembei'* aareh, and Pis executive Manager® responded ’an..crjtaadiag o f T ip ?•••-sise.it a .v ise ! >- f v r - - o ith a pro«-.»t retra ct through i*c< o f .odern iaonet t; science i nd o f ine jo*ars c-atru ted by the ion rtes* T. uifc a th ird depre . on v#«. it a - aicb tney n’d c . en ci o;:at* b t ie uu i « c b -ic i-.t o f .o cr by the « ' ecutive authority in con trol o f the Federal rc erve S; tea*, fo r *ac talrri ti.ne in tveniy ye i .} F ifteen th , the public in teract in th is •t-tter in indicat d by the fa ct that CongrifcSSBta Voorhis o f C&lifornie tiLed in ne Banking and Cu rent of tne douce, seeding * sc sb&fci i t ion o f avney by Con- re.;:. io.j*.i Sixteenth, Co.-wretw itn the Coanitt.. e 0, jOC Cijra-tWHS o f nimivi uis of ec? .o; * * \t d ie the Federal Beserve Art ha® i .pie^ent^a Corr/ret axonal control, uacr-r a mandate that the powers o f the system should he employet * jr *riC protection. t*nd pr •oti..i of industry and cokaierce, tae e powers *«.re vxercic.ed i-i x9•P-.-1 raa ^ .a in in 19*9 ami a.*'«.in in 1937, . i t a the- »o t d€ tru elive cense .utnit, to industry and coaowree by o f f i c i a l s con tro llin g the Federal Be serve Bo* d, the Bo*, re of Governors of tne Federal Reserve by etc.*,, the federal ~eserve b* -lies, tne Open -- r t the Federal Be&erve Advisory Council, a i l tour or shied au th orities doisiiiiato.ng influence o f tncsf aon*, by Confresi* no opposed - ic t .’ea he >n. •f-,; al. -^on of •**» v>- ^ itotr « d : M n they got control .l r s t - ..* (U clo.od by Paul in ,ii» book, "The Fe . » » ! Feserve Systnai," -nd ere- under and they c o a t r l l u t e t o t..< « t « * • seri us f*cta nts been fu ll* t forth In the testimony nerotofo © referred to . Seventeenth, in ay le tte r to the Chairman of the Federal Reserve Board of Governors and ti*e aemorandiLii subaitted therevita (pa a i i > l , Hearings on HR 5’7\>, 77th Congress). f nen 8 Hitor Log tv; of Kentucky introduced feaec© Bi. 1 .?!, 76 th Congress, or vt&laingf a Congressional aanuatfc to restore aid maintain the pre-depr ssion d o lla r index a no dlrr.rcti.04:, the Federal Eeserve Boa •G, the Federal aeterve Banks, e t c . , to carry out this p c 'ic y , the Cnairaiaa o f the Beard in the name o f trie Board submitted a report deny ang ♦&?.t the Bo*.-re had the ;o.x-r or co id be divert the po; ar to c& ry out tn le p o lic y . T.ds contention s i l l be found answered in d etail in the letter *nd acaeraadua cited. T is report is a complete action a. e*:a tr -tio n of the aboo Lute necessity of Congressional the Board of Gov rua s iv- deliberately denied the . uantiu tlve theory upon taich alone can Contra: a regulate the value of money • 0 vermdelating evidence n&t* beta already submitted t.ii the hi. a t authorities in the rorld cited i i its correctness. Over JOG proforsignal p o litic a l eco lomists ano nave recently wtunion this b i l l hove favored 100 p r cent reserves arairst dea* nc. iepotiits, thus taxing from .private persons or privately o*nt i corporations the ri,:nt to create and aastroy the aediua of eichence of the people of the United £t te s . ' itfhtee.it h. in .a let t- r to d- 10ruble Brent- apa ,ct, ft-pres- nt live in Con from loss of over tvo ixundrsd b illlv .* in national income but a potential lors of over th*te nun red b illio n in excess of the actual io c s , tne to ta l exceeding ov^r six n\m. red b illio n , t-u. fipui be . a on ;e, ea.^ole reco --is and couaon a ut uo. -t-y • It therefore follows t a t to mec-t 1ne ;,n tert crit-ie in the history of America in an a i l out orl. -• ide f t r, u » Cjngrcts should use it s f u l l powers under the Constitution of the United Sal.tea aad ;ive^*f iam eu iale^ a action on his ueition. *t present the aeabor bank* nod the great corporations oealing in finance *re creating aoney by bid ing the bonds end obligations of the United Btate. • T at Fed*. &1 Reserve Banks should be employed to do th Be.1 ■■& sa.ue tnlng and the Federal ese -ve should buy the outstanding bonds and obligations of the United Ftstes eat convert ^uch non-liquid bent credit, leaving the ovn&r. of the bon.-; ere: i t tnos < eated to buy nsw government ofcli aliens out of their de* id bank e . o . i t s thus created# Waen & be me depositor b jy g - Qovomaent oblige tion it does not expand trie to lose o f aonay but atrely tran: fert- money *1: c-.Jy created to t:*e use o f the roverneent. i s not being done with success by tfto Treasury &epa w a n t, and is to be co : eno T ..is ts a aofeia o f obviating .joat-r in fla tion * loreover, t.ie pretest proposals o f the Govt rrw. at to greatly increase toe neti.n&l i u c ji e through cr . i t is.pi: nsioh ca to c-tnrsriGy tax that incoaae as c ae ns of preventing in fla tio n w ill s u ffic e with the o tfa r povers of the Federal Reserve System not only to •spend ioney to whatever extent is .needed, but. to prevent in fla tio n ana to ju s tify the fir in g o f ca&aodity xrlc-es rhere uch commodity prices. &: e unduly influenced by monopoly, by speculation or ot i«r u n ju stified causes* It it conce ed append cred it to whatever extent is necessary and i t ment c an contract to the Government can hould bu concede d that the Govern hutaver extent is neces.- ary and advisable to prevent the purchasing power of the d o lla r fr o * risin g above par* In the «t*or&.nd a abova referred to (wge in which 191) t r cited eleven different he Hoserve Board and trie Reserve fianku coat-uc* ah money in 19 ays ot count i if e ; l l ng bonus to the lepo&itor not absorbing aoney through taxation* A ly ertaitionsl powers aece.rsary Could be provided by Confrere ned the ma’ tv-r ien the Gow it tea a ro >erly pre rented to Ihua* I alib •'.it herewith 3eaate B ill ?6o6 by Senator it* .-• Lo an of Kentucky, in J ;.ne 1931 with nie cosaaentarias thereon as the mechenisM* by vhich to r cor. lira tht e ( e e page 1167). asuite* I trust toe above abrtrtct stiff ic lent ly angers your vu t io n , "SHi l> CClfcoMS HUGOLsTi Tdb FA, l OF *08AI? F iY? ABB dOW? Tour, respectfully, RLO ^>3
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