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U.S. CONGRESSIONAL RECORD,
Thursday, June 15, 1933 (legislative day of Wednesday, June 14)
HON. LOUIS T. McFADDEN OF PENNSYLVANIA:
"FINANCIAL INTERESTS SHOULD NOT DICTATE FOREIGN POLICY OF UNITED STATES
GOVERNMENT"


Mr. McFADDEN. Mr. Speaker, I doubt if the history of the relations between
this country and Russia is known to every American citizen. It may not be
considered amiss, therefore, if I dwell for a few moments on our past
relations with that strange and interesting country. To do so it will be
necessary for me to go back to the late eighties and the early nineties of
the last century, when the United States was turning the corner and becoming
rich and powerful. At that time a man named Jacob Schiff came to this country
as the agent of certain foreign money lenders. His mission was to get control
of American railroads. This man was a Jew. He was the son of a rabbi. He was
born in one of the Rothschilds' houses in Frankfort, Germany. He was a small
fellow with a pleasant face and, if I remember correctly, his eyes were blue.
At an early age he set out from Frankfort to seek his fortune and went to
Hamburg, Germany. At Hamburg he entered the Warburg banking establishment.
The Warburgs of Hamburg are bankers of long standing, with branches in
Amsterdam and Sweden. After Schiff had served his time with them he went to
London and worked with their London correspondents. He was also connected
with the firm of Samuel Montagu & Co., the London gold merchants. When he
came to this country he was well equipped to do business as an international
money changer. He knew how to be polite, he could write a smooth letter, and
he always pretended to be a man of holiness and a philanthropist.

Sometime before Schiff's arrival there was a firm of Jewish peddlers or
merchants in Lafayette, Ind., by the name of Kuhn & Loeb. I think they were
there about 1850. Probably they made money out of the new settlers who passed
through Indiana on their way to the Northwest. This firm of Jews had finally
moved to New York and had set themselves up as private bankers and had grown
rich. Jacob Schiff married Teresa Loeb and became the head of Kuhn, Loeb &
Co. Schiff made a great deal of money here for himself and for the Jewish
money lenders of London. He began to give orders to Presidents almost as a
matter of course. He appears to have been a man who would stop at nothing to
gain his own ends. I do not blame him for being a Jew. I blame him for being
a trouble maker.

Russia had a powerful enemy in this man, Jacob Schiff. The people of the
United States were taught to believe that this enmity of his was caused by
wrongs done to Russian Jews. I look elsewhere for the motives which animated
him.

In the 1890's Schiff was the agent in this country of Ernest Cassell and
other London money lenders. These money lenders were looking forward to a war
between England and Russia and were making preparations for propaganda
designed to support England in the United States. This country was then a
debtor nation, paying a high yearly tribute to Schiff and his principals.
Schiff accordingly took it upon himself to create a prejudice in the United
States against Russia. He did this by presenting the supposed wrongs of the
Russian Jews to the American public. Unpleasant tales began to appear in
print. School children in this country were told that Jewish children were
crippled for life by Russian soldiers wielding the knout. By unfair means a
wedge was driven between Russia and the United States.

One of Schiff's schemes was a sort of wholesale importation of Russian Jews
into the United States. He drew up divers and sundry regulations for the
temporary transplantation of these Jewish emigrants. He would not, he said,
have them enter this country through the port of New York, because they might
like New York too well to leave it for the outposts he had selected for them.
He said it would be best to have them come in at New Orleans and to have them
stay there 2 weeks, "so that they could pick up a few words of English and
get a little money" before setting off for what he called the "American
hinterland." How they were to get the money he did not say.

Aided by Schiff and his associates, many Russian Jews came to this country
about that time and were naturalized here. A number of these naturalized Jews
then returned to Russia. Upon their return to that country, they immediately
claimed exemption there from the regulations of domicile imposed on Jews;
that is, they claimed the right to live on purely Russian soil because they
were American citizens, or "Yankee" Jews. Disorders occurred and were
exploited in the American press. Riots and bombings and assassinations, for
which somebody furnished money, took place. The perpetrators of these
outrages appear to have been shielded by powerful financial interests. While
this was going on in Russia, a shameless campaign of lying was conducted
here, and large sums of money were spent to make the general American public
believe that the Jews in Russia were a simple and guileless folk ground down
by the Russians and needing the protection of the great benefactor of all the
world - Uncle Sam. In other words, we were deceived. We were so deceived that
we allowed them to come in here and take the bread out of the mouths of our
own American citizens.

I come now to the time when war was declared between Russia and Japan. This
was brought about by a skillful use of Japan, so that England would not have
to fight Russia in India. It was cheaper and more convenient for England to
have Japan fight Russia than to do it herself. As was to be expected, Schiff
and his London associates financed Japan. They drew immense quantities of
money out of the United States for that purpose. The background for the loans
they floated in this country had been skillfully prepared. The "sob stuff",
of which Schiff was a master, had sunk into the hearts of sympathetic
Americans. The loans were a great success. Millions of American dollars were
sent to Japan by Schiff and his London associates. England's stranglehold on
India was made secure. Russia was prevented from entering the Khyber Pass and
falling on India from the northwest. Japan at the same time was built up and
became a great world power, and as such is now facing us in the Pacific. All
this was accomplished by control of the organs of American publicity,
releases to the effect that Russian Jews and "Yankee" Jews were being
persecuted in Russia, and by the selling of Japanese war bonds to American
citizens.

While the Russian-Japanese War was in progress President Theodore Roosevelt
offered to act as peacemaker, and a conference between representatives of the
belligerents was arranged to take place at Portsmouth, N.H.

While the Portsmouth Conference took place, Jacob Schiff attended it and used
such influence as he had with Theodore Roosevelt to win favors for Japan at
the expense of Russia. His main object, then as always, was humiliation of
Russians, whose only crime was that they were Russians and not Jews. He
endeavored to humiliate the Russians, but Count Witte, the Russian
plenipotentiary, did not allow him to succeed in this attempt. Schiff's power
and the power of his organized propaganda were well understood by Count
Witte, however. Consequently he was not surprised when President Roosevelt,
who was often deceived, twice asked him to have Russia treat Russian Jews who
had become naturalized in the United States and who had thereafter returned
to live in Russia with special consideration; that is, not as Jews but as
Americans. Witte carried home a letter from Roosevelt embodying this plea.

Mr. Speaker, the restrictions upon Jews in Russia at that time may or may not
have been onerous. But onerous or not, before the Russians had time to change
them, Schiff had the 80-year-old treaty of friendship and good will between
Russia and the United States denounced. Speaking of this matter County Witte
says in his autobiography:

"The Russians lost the friendship of the American people."

Mr. Speaker, I cannot believe that those people - the real Russians - ever
lost the true friendship of the American people. They were done away with to
suit the ambitions of those who intend to be the financial masters of the
world, and some of us were deceived into thinking that in some mysterious way
they themselves were to blame. The chasm that suddenly opened between
ourselves and our old friends and well-wishers in Russia was a chasm created
by Schiff the vindictive in his inhuman greed, and he created it in the name
of the Jewish religion.

Mr. Speaker, it was a mistake for the United States to permit the integrity
of its foreign policy to be jeopardized or affected adversely by such
religious, racial, and financial meddling as that practiced upon us by Schiff
and his London associates. The United States should manage its foreign
affairs with more distinction than that which is implied in the picture of
Jacob Schiff shaking his fist at the White House and muttering threats
against William Howard Taft, then President of the United States, a man who
was excessively distinguished in his chosen field and who represented the
integrity and the patriotic Americanism of every generation of New Englanders
from the first of Massachusetts Bay Colony to his own, and represented them
well.

Mr. Speaker, the people of the United States should not permit financial
interests or any other special interests to dictate the foreign policy of the
United States Government. But in this connection history is now repeating
itself. You have heard, no doubt, of the so-called persecution of Jews in
Germany.

Mr. Speaker, there is no real persecution of Jews in Germany. Hitler and the
Warburgs, the Mendelsohns and the Rothschilds, appear to be on the best of
terms. There is no real persecution of the Jews in Germany, but there has
been a pretended persecution of them because there are 200,000 unwanted
Communistic Jews in Germany, largely Galician Jews who entered Germany after
the World War, and Germany is very anxious to get rid of those particular
Communistic Jews. The Germans wish to preserve the purity of their own blond
racial stock. They are willing to keep rich Jews like Max Warburg and Franz
Mendelsohn whose families have lived in Germany so long that they have
acquired some German national characteristics. But the Germans are not
willing to keep the Galician Jews, the upstarts. So a great show is put on,
largely by German Jews themselves, in the hope that Uncle Sam will prove
himself to be as foolish as he was before and that we will allow those
Galician and Communistic Jews to come in here. That is why Miss Perkins has
been placed in charge of the Department of Labor. She is there to lower the
immigration bars. It is thought that, being a woman, she may disarm
criticism. She is an old hand with the international Jewish bankers. If she
were not, she would not be here in a Jewish-controlled administration.

When the so-called "anti-Semitic campaign" designed for American consumption
was launched in Germany, France was alarmed because she feared the Galician
Jews might be dumped on French soil. French newspapers published articles
concerning the menace, but now that France has been shown that the purpose of
the anti-Semitic campaign is to dump the 200,000 communistic Jews on the
United States she is worried no longer. "Ah", she says, "I'Oncle Sam, he is
to be the goat. Very good."

Mr. Speaker, I regard it as a pity that there are Americans who love to fawn
upon the money Jews and to flatter them. Some of these unfortunates are under
obligations to Jewish money changers and dare not cross them. On June 6,
1933, there was a meeting in the city of Washington at which the following
resolution was adopted:

"America has been greatly enriched through generations past by men and women
of high quality who have come to our shores as a result of persecution in
their own lands. Our country is known throughout the world as the haven of
those who suffer from wrong and injustices, and who seek an opportunity for
freedom not afforded in their own land. The present is another critical time,
and there are many victims of religious and racial persecution in Germany
who, because of superior attainments and qualities of fine citizenship, would
make valuable additions to our Commonwealth. We, therefore, ask the
Government temporarily to relax the immigration barriers in favor of such
persons and urge the passage of such measures as will effect this result."

Mr. Speaker, the time for such tactics has gone by. We would be very foolish
to allow Germany to dump her unwanted Jewish population on the United States.
If the money Jews are as noble as they advertise themselves to be, let them
advocate the payment of the veterans' adjusted-compensation certificates. Let
them ease the burdens of the consumptive Jewish boys who are hauling heavy
carts of fur and other material around the garment center of New York. Let
them see that the long-suffering Jewish school teachers receive the salaries
which are due to them but which are now in arrears. That would be better than
to bring 200,000 Jewish Communists in here for political purposes.

Mr. Speaker, Jacob Schiff flourished like the green bay tree during the World
War, but there are passages in his life which show his hysterical despair
when the Allies sent their representatives here to obtain a loan. He
endeavored to have Lord Reading, formerly Rufus Isaacs, prevent any part of
it from going to Russia, although at the time Russia had a very large army of
soldiers in the marshes, including thousands of Jewish soldiers, fighting the
battle of the Allies on short rations and with insufficient supplies. He was
willing to join in the loan, but he wished to have Russia and Russian Jews
excluded from the benefits of it. Upon that occasion he was torn between a
desire for profit and his professional hatred of Russia, and he cried out to
his fellow directors in Kuhn, Loeb & Co. that he ought not to be placed in
such a position. And then I believe he said they could do as they liked about
it.

In the end it was one of the European Warburgs, a relative of Schiff's, who
went to Brest-Litovsk to negotiate the separate peace - a peace which was
deeply resented by a large number of loyal Russian Jews - a peace which was
followed shortly afterward by the Third Internationale, one of the purposes
of which is the destruction of constitutional government in the United States
and the establishment here of the same form of government as that which now
prevails in Russia. The rights of the sovereign States in the United States
are being steadily undermined for that sinister purpose. How far down into
the bottomless pit of communism the United States has been dragged by the
Roosevelt administration under the smoke screen of an emergency is shown by a
comparison of the program of the Third Internationale and the Roosevelt
communistic measures forced into law here during this special session of
Congress under threats to deprive Democratic Congressmen of patronage and
influence, or, as the President is said to have expressed it to a London
correspondent, a determination on his part to keep every Republican
officeholder in office until he got what he wanted from the Democratic
Congress. Among the tasks set before the communistic party in the United
States, as shown in Russia/U.S.S.R.; A Complete Handbook, edited by the
scholar, P. Malevsky-Malevitch, and published by Payson in New York this
year, I find the following:

"Transfer to the State of all gold reserves, valuables securities, deposits,
etc., the centralization of all banking operations and the subordination of
all the nationalized banks to a central State bank, etc."

You have witnessed the unlawful seizure by Franklin D. Roosevelt of gold
reserves and other values belonging to the people of the United States, the
destruction of banks, the attempted whitewashing of the Federal Reserve Board
and Federal Reserve banks, the corruption of which he admitted in his
campaign harangues; and you may have noticed that what was confiscated is not
in the hands of the present constitutional Government but in the hands of the
international bankers who are the nucleus of the new government Roosevelt is
seeking to establish here. Roosevelt's actions are not in accordance with the
Constitution of the United States. They are in accordance with the plans of
the Third Internationale.

At one time Trotzky was a favorite with Jacob Schiff. During the war Trotzky
edited NOVY MIR and conducted mass meetings in New York. When he left the
United States to return to Russia he is said upon good authority to have
traveled on Schiff's money and under Schiff's protection. He was captured by
the British at Halifax and immediately, on advice from a highly placed
personage, set free. Shortly after his arrival in Russia he was informed that
he had a credit in Sweden at the Swedish branch of the bank owned by Max
Warburg, of Hamburg. This credit helped to finance the seizure of the Russian
revolution by the international Jewish bankers. It assisted them in
subverting it to their own ends. At the present time the Soviet Union is in
debt.

>From the date of Trotzky's return to Russia the course of Russian history
has, indeed, been greatly affected by the operations of international
bankers. They have acted through German and English institutions and have
kept Russia in bondage to Germany and both Germany and Russia in bondage to
themselves. Their relatives in Germany have drawn immense sums of money from
the United States and have in turn financed their agents in Russia at a
handsome profit.

The Soviet Government has been given United States Treasury funds by the
Federal Reserve Board and the Federal Reserve banks acting through the Chase
Bank and the Guaranty Trust Co. and other banks in New York City. England, no
less than Germany, has drawn money from us through the Federal Reserve banks
and has re-lent it at high rates of interest to the Soviet Government or has
used it to finance her sales to Soviet Russia and her engineering works
within the Russian boundaries. The Dnieperstroy Dam was built with funds
unlawfully taken from the United States Treasury by the corrupt and dishonest
Federal Reserve Board and the Federal Reserve banks.

Mr. Speaker, our workingmen have been told that Russia is the best country in
the world to-day for a workingman to live in. They have been made to regret
that they cannot go to Russia to work on one of the great enterprises being
carried on by the Soviet Government from which American workingmen are
excluded. Mr. Speaker, in my opinion the Russians have a right to set up any
form of government that pleases them and suits their needs. But for some
reason, whether due to some defect in the Soviet form of government or to
some other cause, Russia has not been able to maintain its present form of
government otherwise than at the expense of countries in which there is
greater freedom from individuals and in which the property rights of citizens
have been respected and preserved. Open up the books of Amtorg, the trading
organization of the Soviet Government in New York, and of Gostorg, the
general office of the Soviet trade organization, and of the State Bank of the
Union of Socialistic Soviet Republics, and you will be staggered to see how
much American money has been taken from the United States Treasury for the
benefit of Russia. Find out what business has been transacted for the State
bank of Soviet Russia by its correspondent, the Chase Bank of New York; by
Lloyd's Bank of London; by Kleinwort Sons & Co. of London, whose
correspondents are the principal New York banks; by Glyn Mills & Co. of
London and their American agents - that is, the International Acceptance
Banks of New York, the Guaranty Trust of New York, the Central Hanover Bank
of New York, the Chemical Bank & Trust Co., H. Clews & Co., Kidder Peabody &
Co., Winslow Lanier & Co., and Lee, Higginson & Co., the promoters of Swedish
Match. Find out how much United States money has passed through the Bank for
Russian Trade of London and through the Midland Bank, Ltd.

If the extent of these transactions were known to the American workingman and
if he could see that the raw material, the United States dollars, in those
transactions came out of his own pocket and the pockets of his fellow
citizens, he would understand that Russia is not a good place for a
workingman unless other workingmen in other countries are forced to pay
tribute to its needs. Russia owes the United States a large sum of money. If
we had what Russia owes us today, the veterans of the United States would not
need to fear the first of July 1933 when they are to be despoiled of their
pension rights and privileges. Mr. Speaker, I am unalterably opposed to a
reduction in the pensions that were lawfully conferred upon the United States
veterans of all wars, their widows and dependents. I am in favor of the
immediate payment of the veterans' adjusted-compensation certificates. If the
United States can carry Germany and Soviet Russia and John Bull on its back,
it can pay its veterans. If it can lend $50,000,000 to sovietized China and
furnish material for the manufacture of high explosives, it can pay its
veterans.

Mr. Speaker, an immense amount of United States money has been used abroad in
preparations for war and in the acquisition and the manufacture of war
supplies. Germany is said to be part owner of a large poison gas factory at
Trotsk on Russian soil. China is almost completely sovietized and in the
Asiatic interior huge stocks of munitions are said to be stored awaiting the
day when the war lords of the United States will ship United States troops to
Asia. Mr. Speaker, the United States should look before it leaps into another
war, especially a war in Asia. It should decide whether it is worth while to
join hands with Russia and China in a war against Japan. For myself, I say
and I have said it often that the United States should remember George
Washington's advice. It should mind its own business and stay at home. It
should not permit the Jewish international bankers to drive it into another
war so that they and their Gentile fronts and sycophants by way of Louis
McHenry Howe, the graftmaster, may reap rich profits on everything an army
needs from toilet kits to airplanes, submarines, tanks, gas masks, poison
gas, ammunition, bayonets, guns, and other paraphernalia and instruments of
destruction.

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