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REPRESENTATIVE GIFFORD: Wasn’t Joe Kennedy put in [as Chairman of 

the Securities Exchange Committee] by President Roosevelt because 

he was sympathetic with big business?

LEON HENDERSON: I think so.

Paul Einzig pointed out in 1935 that:

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"President Roosevelt was the first to declare himself openly in favor of a 

monetary policy aiming 

 

 

at a deliberately engineered rise in prices. In a 

negative sense his policy was successful. Between 1933 and 1935 he 

succeeded in reducing private indebtedness, but this was done at the 

cost of  increasing public indebtedness."

In other words, he eased the burden of debts off of the rich onto the 

poor, since the rich are few and the poor many.

Senator Robert L. Owen, testifying before the House Committee on 

Banking and Currency in 1938, said:

"I wrote into the bill which was introduced by me in the Senate on June 

26, 1913, a provision that the powers of the System should be 

employed to promote a stable price level, which meant a 

 

 

dollar of 

stable purchasing, debt-paying power. It was stricken out. The 

powerful money interests got control of the Federal Reserve Board 

through Mr. Paul Warburg, Mr. Albert Strauss, and Mr. Adolph C. Miller 

and they were able to have that secret meeting of May 18, 1920, and 

bring about a contraction of credit so violent it threw five million 

people out of employment. In 1920 that Reserve Board deliberately 

caused the Panic of 1921. The same people, unrestrained in the stock