The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1936-07-29
Father CoughIin's Facts
New York Times


There are occasions when Father Coughlin's
speeches gain such wide attention that it is mis-
take to permit of his statements of fact to pass
unchallenged His address before the Townsend con-
vention at Cleveland is in point In it he
dealt among other things, with our war loans to
Europe with the rise of the national debt under Mr.
Roosevelt and with the authority of the Federal Re
serve Banks and in it he made the following state
ments.
Concerning the war loans:
I'VE Cancelled $40OOO0OO 1000 of European war
debts and repudated s11OOOOOOOOO more of postwar
debts simply to save the international bankers simply
to the gold standard"
The plain fact is that the grand total of all our
pre- Armistice and post-Armstice war loans amounted
to $40 1920 In the settlements made for the
repayment of these obligations we charged our
debtors less than commercial rates of interest But
of the principal of any debt Cancelled or re-
duced. Against the $10,33805 1920 loaned by our
Government, the contracts made with debtors
called for the payment of $22 GAO 05627 in princ-
pal and interest
Concerning domestic debt:
HE who promised to drive the money changers
from the temple (Mr ROOSEVELT has built up the
greatest debt in all history $4,000 100000 which he
permitted the bankers the right without restriction
to spend"
debt under Mr.. Roosevelt amounts to $lO8OO OOO0 0O
The of the present debt has been inherited from
earlier Administrations. The bulk of the increase
under Mr. Roosevelt has been due to relief of
ployment None of the Governments money has
been given to the bankers except in the form of loans
made by the Reconstruction Finance Corporal ton.
These loans have carried interest at per cent and
higher The interest has accrued to the benefit of
the United States. OF the total amount loaned to
bankers on this basis than IS per cent has
already been repaid
Concerning the authority of the Federal Reserve
Banks
Ever since the Founding Fathers established our
Constitution it appears that Congress has the right
to coin and the right to regulate the value of money
Both Democrats and Republicans have forfeited that
right until today the Federal Reserve Banks like Con-
gress, have the right to coin and regulate the value
of money"
Federal Reserve notes not money coined out
of thin air at the discretion of the Federal Reserve
Banks. Under the law they must be backed by gold
certificates representing gold actually held by the
Government and by other security specifically defined
by act of Congress
Nor do the Federal Reserve Banks regulate the
value of money" The most important instrument of
control the credit that be exercised by CEN
trail banking system is the sale purchase of assets
principally Government securities-in the open
market Under the Banking Act of 1885 authority in
this matter is vested in Federal Open Market Com
mittee which consists of five representatives of the
Federal Reserve Banks and seven members of the
Board of Governors OF the Federal Reserve System
these seven being public officials appointed by the
President by and with the consent of the Senate