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, claimed the Roosevelt administration was controlled by Jews, and objected to Henry Morgenthau, Jr., a Jew, becoming Secretary of the Treasury. Drew Pearson claimed in his "Washington Merry-Go-Round" column that, in a publication by the American fascist Silver Shirts, McFadden had been "extensively" quoted "in support of Adolf Hitler". In September the Nazi tabloid "Der Stuermer" praised McFadden. He was also lauded by the publications of William Dudley Pelley, leader of the Silver Shirts, on several occasions. On election day that year he lost to Charles E. Dietrich by "about 2,000 votes". This was the only election between 1912 and 1950 when the district elected a Democrat.