The Federal Reserve System banks, with all of their faults have rendered the people two very essential services. First, they have created the Nation’s money; Second, they have loaned money. There is a third service which the Constitution imposed on Congress: "regulate the value of money." If the bankers have ever tried to regulate the value of money they have utterly failed.
A Congressman Without Faith Congressman Patman, speaking before the House, August 22, 1957, said:
"The Constitution is very plain that Congress shall have all power over money, but, obviously, Congress cannot administer that power. So Congress has delegated it to the Federal Reserve System, which is all right if properly administered. . . . I would not offer any suggestion that would lead to the repeal of a substantial part of the Reserve Act, except one. That is to have the Government and Government officials carry out this important function of regulating the value of money; in other words, to determine the supply of money, the cost of money . . . there is not enough interest in it. . . yet it is the most important subject that the members of Congress have to deal with."
He had just said that "obviously, Congress can not administer the power of 'Coining money, regulating the value thereof.'" Yet, he insists that Congress must administer the power to regulate the value of money. And that is the most difficult thing to do with money, "regulate the value thereof." If Congress can grapple with the most elusive and the most difficult task before the Reserve Banks, the regulating of the value of