211

The House Stabilization Hearings of 1928 proved conclusively that the 

Governors of the Federal Reserve System had been holding 

conferences with heads of the big European central banks. Even had 

the Congressmen known the details of the plot which was to culminate 

in the Great Depression of 1929-31, there would have been nothing 

they  could  have  done  to  stop  it. The international bankers who 

controlled gold movements could inflict their will on any country, and 

the United States was as helpless as any other.

Notes from these House Hearings follow:

__________________________

88 Brian Johnson, The Politics of Money, McGraw Hill, New York, 1970, p. 

63.

132

MR. BEEDY: "I notice on your chart that the lines which produce the 

most violent fluctuations are found under ‘Money Rates in New York.’ 

As the rates of money rise and fall in the big cities the loans that are 

made on investments seem to take advantage of them, at present, a 

quite violent change, while industry in general does not seem to avail 

itself of these violent changes, and that line is fairly even, there being 

no great rises or declines.

GOVERNOR ADOLPH MILLER: This was all more or less in the interests of 

the international situation. They sold gold credits in New York for sterling 

balances in London.

REPRESENTATIVE STRONG: (No relation to Benjamin): Has the Federal 

Reserve Board the power to attract gold to this country?