FINAL WARNING: Financial Background
and Rep. Usher L. Burdick of North Dakota.Rep. Wright Patman of Texas (who was the House Banking Chairman
until 1975), said in 1952: “In fact there has never been an independent
audit of either the twelve banks of the Federal Reserve Board that has
been filed with the Congress ... For 40 years the system, while freely
using the money of the government, has not made a proper
accounting.” Patman, said that the Federal Open Market Committee
(who, in addition to the Board of Governors, decide the country’s
monetary policy) is “one of the most secret societies. These twelve
men decide what happens in the economy ... In making decisions they
check with no one– not the President, not the Congress, not the
people.”Patman also said: “In the United States we have, in effect, two
governments ... We have the duly constituted Government ... Then we
have an independent, uncontrolled and uncoordinated government in
the Federal Reserve System, operating the money powers which are
reserved to Congress by the Constitution.” During his career, Patman
has sought to force the FED to allow an independent audit, lessen the
influence of the large banks, shorten the terms of the FED Governors,
expose it to regular Congressional review just like any other Federal
agency, and to have only officials nominated by the President and
confirmed by Congress to be on the Federal Open Market Committee.
In 1967, Patman tried to have them audited, and on January 22, 1971,
introduced HR11, which would have altered its organization,
diminishing much of its power. He was later removed from the
Chairmanship of the House Banking and Currency Committee, which
he held for years.On January 22, 1971, Rep. John R. Rarick of Louisiana introduced
HR351: “To vest in the Government of the United States the full,
absolute, complete, and unconditional ownership of the twelve Federal
Reserve Banks.” He said: “The Federal Reserve is not an agency of
government. It is a private banking monopoly.” He was later defeated
for re-election. During the 1980’s, Rep. Phil Crane of Illinois introduced
House Resolution HR70 that called for an annual audit of the FED
(which never came to a full vote); and Rep. Henry Gonzalez of Texas
introduced HR1470, that called for the repeal of the Federal Reserve
Act.