The Waterbury Democrat., 1939-03-20
REV. CHARLESE. COUGHLIN TALKS
Borrowing From Federal Reserve Bank Would
 Lead Nation to Ism

Detroit, March 20.- CUP)-The Rev. Father Charles E. Coughlin said in his Sunday radio sermon that the federal governments prac- tice of borrowing from the private ly-owned federal reserve bank, would lead the nation to Communism, So- ciahsm or Nazism.
 Father Coughlin charged that money taken from the federal re- serve bank to finance federal proj- ects actually "multiplies depressions instead of removing them," because it is not tax-free.
 Experience has proved that if rich corporations and individuals invest in bonds issued by the govern ment to the federal reserve bank, capital is investing in depression and debt," the radio priest said.
 The U. s. Housing Authority, fi- nanced by the federal reserve bank is engaged in slum clearance which will make as wards of the state mill lions of citizens insofar as the gov ernment pays their rent" he said.
 Need Financial Reform
 Had the government instituted sound financial reform when it passed the social reform of the housing act; had it issued tax-ex- empt negotiable bonds predicated against the wealth of the nation and abandoned the capitalistic sys- tenn of the private issuance of money there would have been no necessity for imposing taxes upon the two- thirds of our citizens who are en- gagged in supporting the one-third in partially rent-free houses, Father Coughlin said.
 If social reforms are placed on the "unsound" capitalistic~ basis, he warned, i've shall degenerate into socialism. Instead of preserving democracy we will institute species of totalitarianism."
 Sen. Willard Tydings' description of the slum clearance project as "so- cialistic and Russian type" was praised by Coughlin, who said that the Maryland congressman under stood "the social reform could not work satisfactorily under our pres ent economic system"
 Social Reform on Way
 Whether or not 1t operates satis- factorily, a social reform is on the way. No propaganda can stif1e its demands. It will come with socialism or without socialism. It will avoid Socialism, Communism or NaZiism only by our establishing sound economic reform which will preserve our best traditions and release us from the economies of internation- alism."
 "While the entire nation ap- plauds MT. Roosevelt and the new deal government for their worthy objectives to institute a social re- form, does not the whole scheme ap- pear to be doomed if these reforms are totally dependent upon finances which are still controlled by the Federal Reserve bank and the Ted- eral Reserve board?" Father Cough lin asked.
 No Return To Capitalism
 T do not wish to create the im- pression that am anxious to re- turn to the old methods of capital ism," he continued. For more than 10 years I have been pointing out its inequalities and iniquities. But, in the name of common sense, let the government abandon the capital istic economy of private bond issu- ance and the private control and regulation of money so that the cost of its new social projects will not be priced with the tag of destruc- tion.
 "There Is no need for America to follow the example of either of Russia or Germany. There is no need for us to sacrifice democracy to abandon private ownership, to bid farewell to political liberties as we reach out for reforms. It is not a case of our being destroyed either by remaining as we are or by pro- ceeding along more Christian lines of social reform. Sooner or later a majority of us will recognize that the time is opportune to cease bor- rowing ourselves out of the depres- sion with tax-exempt, interest-bear- ing, non-negotiable bonds.