Louis Thomas McFadden
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Louis Thomas McFadden (July 25, 1876 – October 1, 1936) was a
Republican Republican can refer to: Political ideology * An advocate of a republic, a type of government that is not a monarchy or dictatorship, and is usually associated with the rule of law. ** Republicanism, the ideology in support of republics or agains ...
member of the
United States House of Representatives The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the Lower house, lower chamber of the United States Congress, with the United States Senate, Senate being ...
from
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
, serving from 1915 to 1935. A banker by trade, he was the chief sponsor of the 1927
McFadden Act The McFadden Act is a United States federal law, named after Louis Thomas McFadden, member of the United States House of Representatives and Chairman of the United States House Committee on Banking and Currency, enacted in 1927 from recommendation ...
, which rechartered the Federal Reserve System in perpetuity, liberalized branch banking for national banks and increased competition between member and non-member banks. He is known for his
antisemitic Antisemitism (also spelled anti-semitism or anti-Semitism) is hostility to, prejudice towards, or discrimination against Jews. A person who holds such positions is called an antisemite. Antisemitism is considered to be a form of racism. Antis ...
conspiracy theories, which eventually saw him lose his seat in the House of Representatives.


Early life

McFadden was born in Granville Center, Granville Township, Bradford County,
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
. He graduated from Warner's Commercial College (currently known as the Elmira Business Institute) in Elmira,
New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...
. In 1892, he entered the employ of the First National Bank in
Canton, Pennsylvania Canton is a borough in Bradford County, Pennsylvania, United States. It is part of Northeastern Pennsylvania. The population was 1,723 at the 2020 census. Geography Canton is located in southwestern Bradford County at (41.655805, -76.850706), in ...
. In 1899, he was elected cashier; he became its president on January 11, 1916 and served until 1925. McFadden served as treasurer of the Pennsylvania Bankers' Association in 1906 and 1907, and as president in 1914 and 1915. He was appointed in 1914 by the agricultural societies of the State of Pennsylvania as a trustee of
Pennsylvania State College The Pennsylvania State University (Penn State or PSU) is a public state-related land-grant research university with campuses and facilities throughout Pennsylvania. Founded in 1855 as the Farmers' High School of Pennsylvania, Penn State became ...
.


Political career

In 1914, McFadden was elected as a Republican Representative to the
Sixty-fourth Congress The 64th United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives. It met in Washington, DC from March 4, 1915, to M ...
and to the nine succeeding Congresses. He served as Chairman of the
United States House Committee on Banking and Currency United may refer to: Places * United, Pennsylvania, an unincorporated community * United, West Virginia, an unincorporated community Arts and entertainment Films * ''United'' (2003 film), a Norwegian film * ''United'' (2011 film), a BBC Two fi ...
during the Sixty-sixth through Seventy-first Congresses, or 1920-1931. Though re-elected without opposition in 1932, he lost to the Democratic nominee in 1934. He was an unsuccessful candidate for nomination in 1936. McFadden's main official legacy was the working on and the passing of the
McFadden Act The McFadden Act is a United States federal law, named after Louis Thomas McFadden, member of the United States House of Representatives and Chairman of the United States House Committee on Banking and Currency, enacted in 1927 from recommendation ...
of 1927, limiting nationally-chartered branch banks to the state in which the main branch operates. The Act sought to give national banks competitive equality with state-chartered banks by letting national banks operate branch banks to the extent permitted by state law. The McFadden Act specifically prohibited interstate branching by allowing national banks to branch only within the state in which they were situated. Although the
Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 BBEAamended the laws governing federally chartered banks in order to restore the laws' competitiveness with the recently relaxed laws governing ''state''-chartered banks. The g ...
repealed this provision of the McFadden Act, it specified that state law continues to control intrastate branching, or branching within a state's borders, for both state and national banks. McFadden later became a "vociferous foe of the Federal Reserve",Louis T. McFadden on Herbert Hoover
''
The New Republic ''The New Republic'' is an American magazine of commentary on politics, contemporary culture, and the arts. Founded in 1914 by several leaders of the progressive movement, it attempted to find a balance between "a liberalism centered in hum ...
''
which he claimed was created and operated by Jewish banking interests who conspired to economically control the United States. In a speech in the House of Representatives in December 1931, McFadden accused
Paul Warburg Paul Moritz Warburg (August 10, 1868 – January 24, 1932) was a German-born American investment banker who served as the 2nd Vice Chair of the Federal Reserve from 1916 to 1918. Prior to his term as vice chairman, Warburg appointed as a member of ...
, one of the leading forces behind the
Federal Reserve Act The Federal Reserve Act was passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States. The Panic ...
, of “having engineered the great depression.”''The New York Times'', "McFadden Links Bankers", The New York Times, December 1931, p.

''Adam, Marc Christopher. Three Essays on Trade and Finance in the Interwar Period

Diss. 2020.
On June 10, 1932, McFadden made a 25-minute speech before the House of Representatives, in which he accused the Federal Reserve of deliberately causing the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
. After the expulsion from Washington, D.C., of the veteran petitioners of the
Bonus Army The Bonus Army was a group of 43,000 demonstrators – 17,000 veterans of U.S. involvement in World War I, their families, and affiliated groups – who gathered in Washington, D.C., in mid-1932 to demand early cash redemption of their servic ...
, which he called "the greatest crime in modern history", McFadden moved to impeach President
Herbert Hoover Herbert Clark Hoover (August 10, 1874 – October 20, 1964) was an American politician who served as the 31st president of the United States from 1929 to 1933 and a member of the Republican Party, holding office during the onset of the Gr ...
in 1932, and he also introduced a resolution bringing conspiracy charges against the
Board of Governors of the Federal Reserve The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the mo ...
. The impeachment resolution was defeated by a vote of 361 to 8; it was seen as a big vote of confidence to President Hoover from the House. According to
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McFadden was "denounced and condemned by all Republicans for his 'contemptible gesture'." The
Central Press Association The Central Press Association was American newspaper syndication company based in Cleveland, Ohio. It was in business from 1910 to 1971. Originally independent, it was a subsidiary of King Features Syndicate from 1930 onwards. At its peak, the ...
reported that he was "virtually read out of his party ... adhis committee posts ... taken away from him…was ostracized by Republicans ndcalled crazy ...". Sen.
David A. Reed David Aiken Reed (December 21, 1880February 10, 1953) was an American lawyer and Republican party politician from Pittsburgh, Pennsylvania. He represented Pennsylvania in the United States Senate from 1922 to 1935. He was a co-author of the restr ...
(R-PA) said "We intend to act to all practical purposes as though McFadden had died". In 1933, he introduced House Resolution No. 158, which included articles of impeachment for the Secretary of the Treasury, two assistant Secretaries of the Treasury, the Board of Governors of the Federal Reserve, and the officers and directors of its twelve regional banks. In 1934, he made several anti-Semitic comments from the floor of the house and in newsletters to his constituents wherein he cited the
Protocols of the Elders of Zion ''The Protocols of the Elders of Zion'' () or ''The Protocols of the Meetings of the Learned Elders of Zion'' is a fabricated antisemitic text purporting to describe a Jewish plan for global domination. The hoax was plagiarized from several ...
, claimed the Roosevelt administration was controlled by Jews, and objected to Henry Morgenthau, Jr., who was Jewish, becoming
Secretary of the Treasury The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
. Drew Pearson claimed in his "Washington Merry-Go-Round" column that, in a publication by the American fascist
Silver Shirts The Silver Legion of America, commonly known as the Silver Shirts, was an underground American Fascism, fascist and Nazi sympathizer organization founded by William Dudley Pelley and headquartered in Asheville, North Carolina. History Pelley wa ...
, McFadden had been "extensively" quoted "in support of Adolf Hitler". In September the
Nazi Nazism ( ; german: Nazismus), the common name in English for National Socialism (german: Nationalsozialismus, ), is the far-right totalitarian political ideology and practices associated with Adolf Hitler and the Nazi Party (NSDAP) in ...
tabloid '' Der Stuermer'' praised McFadden. He was also lauded by the publications of
William Dudley Pelley William Dudley Pelley (March 12, 1890 – June 30, 1965) was an American fascist leader, occultist, spiritualist and writer. Pelley came to prominence as a writer, winning two O. Henry Awards and penning screenplays for Hollywood films. His ...
, leader of the Silver Shirts, on several occasions. On election day that year he lost to
Charles E. Dietrich Charles Elmer Dietrich (July 30, 1889 – May 20, 1942) was a Democratic member of the U.S. House of Representatives from Pennsylvania for one term from 1935 to 1937. Early life and career Charles E. Dietrich was born in Tunkhannock, Pennsylvan ...
by "about 2,000 votes". This was the only election between 1912 and 1950 when the district elected a
Democrat Democrat, Democrats, or Democratic may refer to: Politics *A proponent of democracy, or democratic government; a form of government involving rule by the people. *A member of a Democratic Party: **Democratic Party (United States) (D) **Democratic ...
. According to McFadden's
Jewish Telegraphic Agency The Jewish Telegraphic Agency (JTA) is an international news agency and wire service, founded in 1917, serving Jewish community newspapers and media around the world as well as non-Jewish press, with about 70 syndication clients listed on its web ...
obituary An obituary ( obit for short) is an article about a recently deceased person. Newspapers often publish obituaries as news articles. Although obituaries tend to focus on positive aspects of the subject's life, this is not always the case. Ac ...
: "In January 1935, he announced his candidacy for president with the backing of an organization called 'the Independent Republican National Christian-Gentile Committee' on a platform to 'keep the Jew out of control of the Republican Party!'" Not garnering much support for his presidential bid, he tried to win back his congressional seat. He lost the nomination by a wide-margin to Col. Albert G. Rutherford who went on to win the general election.


Death

He was in New York City visiting with his wife and son in late September 1936, when he was taken ill at his hotel and died of
coronary thrombosis Coronary thrombosis is defined as the formation of a blood clot inside a blood vessel of the heart. This blood clot may then restrict blood flow within the heart, leading to heart tissue damage, or a myocardial infarction, also known as a heart at ...
shortly thereafter in the Hospital for Ruptured and Crippled, in Manhattan. He was interred in East Canton Cemetery in Canton Township, Bradford County,
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
.


See also

*
Elizabeth Dilling Elizabeth Eloise Kirkpatrick Dilling (April 19, 1894 – May 26, 1966) was an American writer and political activist.Dye, 6 In 1934, she published ''The Red Network—A Who's Who and Handbook of Radicalism for Patriots'', which catalogs over 1,3 ...
*
Alt-right The alt-right, an abbreviation of alternative right, is a far-right, white nationalist movement. A largely online phenomenon, the alt-right originated in the United States during the late 2000s before increasing in popularity during the mid-2 ...


References


External links

* Flaherty, Edward, Ph.D
''The Legendary Tirade of Louis T. McFadden''
— Article criticizing McFadden's speech against the Federal Reserve.

{{DEFAULTSORT:McFadden, Louis Thomas 1876 births 1936 deaths People from Bradford County, Pennsylvania American conspiracy theorists Republican Party members of the United States House of Representatives from Pennsylvania 20th-century far-right politicians in the United States Antisemitism in the United States Right-wing antisemitism Pennsylvania Republicans