06.17.2006

An open letter

As a journalist and a publisher, I'm always looking for that perfect combination, of dialogue leading to workable solutions

FRN Newsletter has tried very hard, to facilitate a national discussion, on returning America to a Constitutionally required gold standard. It is our driving mission, and the main goal of our books and website.

Now its time to move the discussion to the next level. By this coming November, FRN Newsletter wants to see the framework, for leaders and activists coming together, and crafting a legislative proposal, for Consideration by Congress. This is no small goal.

According to our analysis, America's banking system will be at a "full consolidation" point, sometime around 2015. After this point, it no longer remains realistic or practical, to repeal the federal reserve act, and eliminate fiat money. Quite bluntly, a free-market system, cannot be taken off of debt-based notes, when Its banking system has become fully integrated.

I have spent 23 years now, educating, informing and trying to bring real discussion to this subject.

It is no longer a matter of continuing on this course. We must return to a gold standard, or America will not be able to maintain leadership and freedom.

Please check out our updated website. Check out our current legislative proposal, before Congress.

www.freewebs.com/frnnewsletter/

 

 

FRN newsletter is glad to take a lead role on this issue. We will facilitate a discussion in every way possible.. We are happy to be on point. Thoughtful discussion, breeding real solutions. Join this most important battle. All views, everyone is welcome.

 

Christopher J. Dardzinski

Publisher, FRN Newsletter

 

 

 

       ***LEGISLATIVE PROPOSAL***

 

           Section 01- Repeal the federal reserve act, signed into law on December 23, 1913; and all subsequent amendments.

 

 

On the subject of constitutional limitations. Placed on the government, in regards to currency, It states:

 

 

 

  

The United States Constitution, Article 1, Section 8.

Clause 1. The Congress shall have Power . . .

Clause 5. To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

Clause 6. To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

Section 10, Clause 1. No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility

 

 

 

 

 

 

 

 

 

 

 

           Section 02: Documentation on Fiat money, and its un-constitutional standing in the U.S. money structure.

 

 

A.

James Madison, Journal of the Federal Convention, Vol.2, p.541

Mr. GOUVERNEUR MORRIS moved to strike out, "and emit bills on the credit of the United States." If the United States had credit, such bills would be unnecessary; If they had not, unjust and useless.

Mr. BUTLER seconds the motion.

p.542

Mr. MADISON. Will it not be sufficient to prohibit the making them a tender? This will remove the temptation to emit them with unjust views. And promissory notes, in that Shape, may in some emergencies be best.

Mr. GOUVERNEUR MORRIS. Striking out the words will leave room still for notes of a responsible minister, which will do all the, good without the mischief. The moneyed interest will oppose the plan of government, if paper emissions be not prohibited.

Mr. GORHAM was for striking out without inserting any prohibition. If the words stand, they may suggest and lead to the measure.

Mr. MASON had doubts on the subject. Congress, he thought, would not have the power, unless it were expressed. Though he had a mortal hatred to paper-money, yet as he could not foresee all emergencies, he was unwilling to tie the hands of the Legislature. He observed that the late war could not have been carried on, had such a prohibition existed.

Mr. GORHAM. The power, as far as it will be necessary, or safe, is involved in that of borrowing.

Mr. MERCER was a friend to paper-money, though in the present state and temper of America, he should neither propose nor approve of such a measure. He was consequently opposed to a prohibition of it altogether. It will stamp suspicion on the Government, to deny it a discretion on this point. It was impolitic, also, to excite the opposition of all those who were friends to paper-money. The people of property would be sure to be on the side of the plan, and it was impolitic to purchase their further attachment with the loss of the opposite class of citizens.

p. 543

Mr. ELLSWORTH thought this a favourable moment, to shut and bar the door against paper-money. The mischiefs of the various experiments which had been made were now fresh in the public mind, and had excited the disgust of all the respectable part of America. By withholding the power from the new Government, more friends of influence would be gained to it than by almost anything else. Paper-money can in no case be necessary. Give the Government credit, and other resources will offer. The power may do harm, never good.

Mr. RANDOLPH, notwithstanding his antipathy to paper-money, could not agree to strike out the words, as he could not foresee all the occasions that might arise.

Mr. WILSON. It will have a most salutary influence on the credit of the United States, to remove the possibility of paper-money. This expedient can never succeed whilst its mischiefs are remembered. And as long as it can be resorted to, it will be a bar to other resources.

Mr. BUTLER remarked, that paper was a legal tender in no country in Europe. He was urgent for disarming the government of such a power.

Mr. MASON was still averse to tying the hands of the Legislature altogether. If there was no example in Europe, as just remarked, it might be observed, on the other side, that there was none in which the Government was restrained on this head.

Mr. READ thought the words, if not struck out, would be as alarming as the mark of the Beast in Revelation.

Mr. LANGDON had rather reject the whole plan, than retain the three words, "and emit bills."

On the motion for striking out,-

New Hampshire, Massachusetts, Connecticut, Pennsylvania, Delaware, Virginia, North Carolina, South Carolina, Georgia, aye-9; New Jersey, Maryland, no-2.

The clause for borrowing money was agreed to, nem. con.

Adjourned.

*******

 

B.

 

Articles Of Confederation, Harvard Classics (1910), Vol.43, p.174

The United States in Congress assembled shall also have the sole and exclusive right and power of regulating the alloy and value of coin struck by their own authority, or by that of the respective States-fixing the standard of weights and measures throughout the United States-regulating the trade and managing all affairs with the Indians, not members of any of the States, provided that the legislative right of any State within its own limits be not infringed or violated-establishing and regulating post-offices from one State to another, throughout all the United States, and exacting such postage on the papers passing thro' the same as may be requisite to defray the expenses of the said office-appointing all officers of the land forces, in the service of the United States, excepting regimental officers-appointing all the officers of the naval forces, and commissioning all officers whatever in the service of the United States-making rules for the government and regulation of the said land and naval forces, and directing their operations.

Articles Of Confederation, Harvard Classics (1910), Vol.43, p.174

The United States in Congress assembled shall never engage in a war, nor grant letters of marque and reprisal in time of peace, nor enter into any treaties or alliances, nor coin money, nor regulate the value thereof, nor ascertain the sums and expenses necessary for the defence and welfare of the United States, or any of them, nor emit bills, nor borrow money on the credit of the United States, nor appropriate money, nor agree upon the number of vessels of war, to be built or purchased, or the number of land or sea forces to be raised, nor appoint a commander in chief of the army or navy, unless nine States assent to the same: nor shall a question on any other point, except for adjourning from day to day be determined, unless by the votes of a majority of the United States in Congress assembled.

Articles Of Confederation, Harvard Classics (1910), Vol.43, p.176

ARTICLE XII. All bills of credit emitted, monies borrowed and debts contracted by, or under the authority of Congress, before the assembling of the United States, in pursuance of the present confederation, shall be deemed and considered as a charge against the United States, for payment and satisfaction whereof the said United States, and the public faith are hereby solemnly pledged.

The United States Constitution, Article 1, Section 8

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

The United States Constitution, Article 1, Section 8

To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

The United States Constitution, Article 1, Section 10

Section 10. No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

James Madison, Journal of the Federal Convention, Vol.1, p.59-p.60

2. In speaking of the defects of the Confederation, he professed a high respect for its authors, and considered them as having done all that patriots could do, in the then infancy of the science of constitutions, and of confederacies; when the inefficiency of requisitions was unknown-no commercial discord had arisen among any States-no rebellion had appeared, as in Massachusetts-foreign debts had not become urgent-the havoc of paper-money had not been foreseen-treaties had not been violated-and perhaps nothing better could be obtained, from the jealousy of the States with regard to their sovereignty.

To borrow money and emit bills of credit; To establish post-offices; To raise armies; To build and equip fleets;

To coin money, and regulate the value of all coins, and fix the standard of weights and measures;

To declare the law and punishment of piracies and felonies at sea, and of counterfeiting coin, and of all offences against the laws of nations;

"No State shall grant letters of marque and reprisal, or enter into treaty, or alliance, or confederation; nor grant any title of nobility; nor, without the consent of the Legislature of the United States, lay any impost on imports; nor keep troops or ships of war in time of peace; nor enter into compacts with other States or foreign powers; nor emit bills of credit; nor make any thing but gold, silver, or copper, a tender in payment of debts; nor engage in war, except for self-defense when actually invaded, or the danger of invasion be so great as not to admit of a delay until the Government of the United States can be informed thereof. And to render these prohibitions effectual, the Legislature of the United States shall have the power to revise the laws of the several States that may be supposed to infringe the powers exclusively delegated by this Constitution to Congress, and to negative and annul such as do.

James Madison, Journal of the Federal Convention, Vol.1, p.116-p.117

Col. MASON. Under the existing Confederacy, Congress represent the States, and not the People of the States; their acts operate on the States, not on the individuals. The case will be changed in the new plan of government. The people will be represented; they ought therefore to choose the Representatives. The requisites in actual representation are, that the representatives should sympathize with their constituents; should think as they think, and feel as they feel; and that for these purposes they should be residents among them. Much, he said, had been alleged against democratic elections. He admitted that much might be said; but it was to be considered that no government was free from imperfections and evils; and that improper elections in many instances were inseparable from republican governments. But compare these with the advantage of this form, in favor of the rights of the people, in favor of human nature! He was persuaded there was a better chance for proper elections by the people, if divided into large districts, than by the State Legislatures. Paper-money had been issued by the latter, when the former were against it. Was it to be supposed that the State Legislatures, then, would not send to the National Legislature patrons of such projects, if the choice depended on them?

James Madison, Journal of the Federal Convention, Vol.1, p.120-p.121

General PINCKNEY wished to have a good National Government, and at the same time to leave a considerable share of power in the States. An election of either branch by the people, scattered as they are in many States, particularly in South Carolina, was totally impracticable. He differed from gentlemen who thought that a choice by the people would be a better guard against bad measures, than by the Legislatures. A majority of the people in South Carolina were notoriously for paper-money, as a legal tender; the Legislature had refused to make it a legal tender. The reason was, that the latter had some sense of character, and were restrained by that consideration. The State Legislatures, also, he said, would be more jealous, and more ready to thwart the National Government, if excluded from a participation in it. The idea of abolishing these Legislatures would never go down.

James Madison, Journal of the Federal Convention, Vol.1, p.128-p.129

Mr. MADISON could as little comprehend in what manner family weight, as desired by Mr DICKINSON, would be more certainly conveyed into the Senate through elections by the State Legislatures, than in some other modes. The true question was, in what mode the best choice would be made? If an election by the people, or through any other channel than the State Legislatures, promised as uncorrupt and impartial a preference of merit, there could surely be no necessity for an appointment by those Legislatures. Nor was it apparent that a more useful check would be derived through that channel, than from the people through some other. The great evils complained of were, that the State Legislatures run into schemes of paper-money, &c., whenever solicited by the people, and sometimes without even the sanction of the people. Their influence, then, instead of checking a like propensity in the National Legislature, may be expected to promote it. Nothing can be more contradictory than to say that the National Legislature, without a proper check, will follow the example of the State Legislatures; and, in the same breath, that the State Legislatures are the only proper check.

James Madison, Journal of the Federal Convention, Vol.1, p.129

Mr. GERRY insisted, that the commercial and monied interest would be more secure in the hands of the State Legislatures, than of the people at large. The former have more sense of character, and will be restrained by that from injustice. The people are for paper-money, when the Legislatures are against it. In Massachusetts the county conventions had declared a wish for a depreciating paper that would sink itself. Besides, in some States there are two branches in the Legislature, one of which is somewhat aristocratic. There would therefore be so far a better chance of refinement in the choice. There seemed, he thought, to be three powerful objections against elections by districts. First, it is impracticable; the people cannot be brought to one place for the purpose; and, whether brought to the same place or not, numberless frauds would be unavoidable. Secondly, small States, forming part of the same district with a large one, or a large part of a large one, would have no chance of gaining an appointment for its citizens of merit. Thirdly, a new source of discord would be opened between different parts of the same district.

James Madison, Journal of the Federal Convention, Vol.1, p.132-p.133

Mr. GERRY could not see the extent of such a power, and was against every power that was not necessary. He thought a remonstrance against unreasonable acts of the States would restrain them. If it should not, force might be resorted to. He had no objection to authorize a negative to paper-money and similar measures. When the confederation was depending before Congress, Massachusetts was then for inserting the power of emitting paper-money among the exclusive powers of Congress. He observed, that the proposed negative would extend to the regulations of the militia, a matter on which the existence of the State might depend The National Legislature, with such a power, may enslave the States. Such an idea as this will never be acceded to. It has never been suggested or conceived among the people. No speculative projector-and there are enough of that character among us, in politics as well as in other things-has, in any pamphlet or newspaper, thrown out the idea. The States, too, have different interests, and are ignorant of each other's interests. The negative, therefore, will be abused. New States, too, having separate views from the old States, will never come into the Union. They may even be under some foreign influence; are they in such case to participate in the negative on the will of the other States?

James Madison, Journal of the Federal Convention, Vol.1, p.181-p.182-p.183

If they were extinguished, he was persuaded that great economy might be obtained by substituting a General Government. He did not mean, however, to shock the public opinion by proposing such a measure. On the other hand, he saw no other necessity for declining it. They are not necessary for any of the great purposes of commerce, revenue, or agriculture. Subordinate authorities, he was aware, would be necessary. There must be district tribunals; corporations for local purposes. But cui bono the vast and expensive apparatus now appertaining to the States? The only difficulty of a serious nature which occurred to him, was that of drawing representatives from the extremes to the centre of the community. What inducements can be offered that will suffice? The moderate wages for the first branch could only be a bait to little demagogues. Three dollars, or thereabouts, he supposed would be the utmost. The Senate, he feared, from a similar cause, would be filled by certain undertakers, who wish for particular offices under the government. This view of the subject almost led him to despair that a republican government could be established over so great an extent. He was sensible, at the same time, that it would be unwise to propose one of any other form. In his private opinion, he had no scruple in declaring, supported as he was by the opinion of so many of the wise and good, that the British Government was the best in the world; and that he doubted much whether any thing short of it would do in America. He hoped gentlemen of different opinions would bear with him in this, and begged them to recollect the change of opinion on this subject which had taken place, and was still going on. It was once thought that the power of Congress was amply sufficient to secure the end of their institution. The error was now seen by every one. The members most tenacious of republicanism, he observed, were as loud as any in declaiming against the vices of democracy. This progress of the public mind led him to anticipate the time, when others as well as himself, would join in the praise bestowed by Mr. NECKAR on the British Constitution, namely, that it is the only government in the world "which unites public strength with individual security." In every community where industry is encouraged, there will be a division of it into the few and the many. Hence, separate interests will arise. There will be debtors and creditors, &c. Give all power to the many, they will oppress the few. Give all power to the few, they will oppress the many. Both, therefore, ought to have the power, that each may defend itself against the other. To the want of this check we owe our paper-money, instalment laws, &c. To the proper adjustment of it the British owe the excellence of their Constitution. Their House of Lords is a most noble institution. Having nothing to hope for by a change, and a sufficient interest, by means of their property, in being faithful to the national interest, they form a permanent barrier against every pernicious innovation, whether attempted on the part of the Crown or of the Commons. No temporary Senate will have firmness enough to answer the purpose. The Senate of Maryland which seems to be so much appealed to, has not yet been sufficiently tried. Had the people been unanimous and eager in the late appeal to them on the subject of a paper emission, they would have yielded to the torrent. Their acquiescing in such an appeal is a proof of it. Gentlemen differ in their opinions concerning the necessary checks, from the different estimates they form of the human passions. They suppose seven years a sufficient period to give the Senate an adequate firmness, from not duly considering the amazing violence and turbulence of the democratic spirit When a great object of government is pursued, which seizes the popular passions, they spread like wildfire and become irresistible. He appealed to the gentlemen from the New England States, whether experience had not there verified the remark. As to the Executive, it seemed to be admitted that no good one could be established on republic can principles.

James Madison, Journal of the Federal Convention, Vol.1, p.191

3. Will it prevent trespasses of the States on each other? Of these enough has been already seen. He instanced acts of Virginia and Maryland, which gave a preference to their own citizens in cases where the citizens of other States are entitled to equality of privileges by the Articles of Confederation. He considered the emissions of paper-money, and other kindred measures, as also aggressions. The States, relatively to one another, being each of them either debtor or creditor, the creditor States must suffer unjustly from every emission by the debtor States. We have seen retaliating acts on the subject, which threatened danger, not to the harmony only, but the tranquillity of the Union. The plan of Mr. PATTERSON, not giving even a negative on the acts of the States, left them as much at liberty as ever to execute their unrighteous projects against each other.

James Madison, Journal of the Federal Convention, Vol.1, p.254-p.255-p.256-p.257-p.258

Mr. MADISON said, he was much disposed to concur in any expedient, not inconsistent with fundamental principles, that could remove the difficulty concerning the rule of representation. But he could neither be convinced that the rule contended for was just, nor that it was necessary for the safety of the small States against the large States. That it was not just, had been conceded by Mr. BREARLY and Mr. PATTERSON themselves. The expedient proposed by them was a new partition of the territory of the United States. The fallacy of the reasoning drawn from the equality of sovereign states, in the formation of compacts, lay in confounding mere treaties, in which were specified certain duties to which the parties were to be bound, and certain rules by which their subjects were to be reciprocally governed in their intercourse, with a compact by which an authority was created paramount to the parties, and making laws for the government of them. If France, England and Spain were to enter into a treaty for the regulation of commerce, &c., with the Prince of Monacho, and four or five other of the smallest sovereigns of Europe, they would not hesitate to treat as equals, and to make the regulations perfectly reciprocal. Would the case be the same, if a Council were to be formed of deputies from each, with authority and discretion to raise money, levy troops, determine the value of coin, etc.? Would thirty or forty millions of people submit their fortunes into the hands of a few thousands? If they did, it would only prove that they expected more from the terror of their superior force, than they feared from the selfishness of their feeble associates. Why are counties of the same States represented in proportion to their numbers? Is it because the representatives are chosen by the people themselves? So will be the Representatives-in the National Legislature. Is it because the larger have more at stake than the smaller? The case will be the same with the larger and smaller States. Is it because the laws are to operate immediately on their persons and properties? The same is the case, in some degree, as the Articles of Confederation stand; the same will be the case, in a far greater degree, under the plan proposed to be substituted. In the Cases of captures, of piracies, and of offences in a Federal army, the property and persons of individuals depend on the laws of Congress. By the plan proposed a complete power of taxation, the highest prerogative of supremacy, is proposed to be vested in the National Government. Many other powers are added which assimilate it to the government of individual States. The negative proposed on the State laws will make it an essential branch of the State Legislatures, and of course will require that it should be exercised by a body, established on like principles with the branches of those Legislatures. That it is not necessary to secure the small States against the large ones, he conceived to be equally obvious. Was a combination of the large ones dreaded? This must arise either from some interest common to Virginia, Massachusetts and Pennsylvania, and distinguishing them from the other States; or from the mere circumstance of similarity of size. Did any such common interest exist? In point of situation, they could not have been more effectually separated from each other, by the most jealous citizen of the most jealous States. In point of manners, religion, and the other circumstances which sometimes beget affection between different communities, they were not more assimilated than the other States. In point of the staple productions, they were as dissimilar as any three other States in the Union. The staple of Massachusetts was fish, of Pennsylvania flour, of Virginia tobacco. Was a combination to be apprehended from the mere circumstance of equality of size? Experience suggested no such danger. The Journals of Congress did not present any peculiar association of these States in the votes recorded. It had never been seen that different counties in the same State, conformable in extent, but disagreeing in other circumstances, betrayed a propensity to such combinations. Experience rather taught a contrary lesson. Among individuals of superior eminence and weight in society, rival-ships were much more frequent than coalitions. Among independent nations, pre-eminent over their neighbours, the same remark was verified. Carthage and Rome tore one another to pieces, instead of uniting their forces to devour the weaker nations of the earth. The Houses of Austria and France were hostile as long as they remained the greatest powers of Europe. England and France have succeeded to the pre-eminence and to the enmity. To this principle we owe perhaps our liberty. A coalition between those powers would have been fatal to us. Among the principal members of the ancient and modern confederacies, we find the same effect from the same cause. The contentions, not the coalitions, of Sparta, Athens, and Thebes, proved fatal to the smaller members of the Amphictyonic confederacy. The contentions, not the combinations, of Russia and Austria, have distracted and oppressed the German Empire. Were the large States formidable, singly, to their smaller neighbours? On this supposition, the latter ought to wish for such a General Government as will operate with equal energy on the former as on themselves. The more lax the band, the more liberty the larger will have to avail themselves of their superior force. Here again, experience was an instructive monitor. What is the situation of the weak compared with the strong, in those stages of civilization in which the violence of individuals is least controlled by an efficient government? The heroic period of ancient Greece, the feudal licentiousness of the middle ages of Europe, the existing condition of the American savages, answer this question. What is the situation of the minor sovereigns in the great society of independent nations, in which the more powerful are under no control, but the nominal authority of the law of nations? Is not the danger to the former exactly in proportion to their weakness? But there are cases still more in point. What was the condition of the weaker members of the Amphictyonic confederacy? Plutarch (see Life of Themistocles) will inform us, that it happened but too often, that the strongest cities corrupted and awed the weaker, and that judgment went in favor of the more powerful party. What is the condition of the lesser States in the German confederacy? We all know that they are exceedingly trampled upon, and that they owe their safety, as far as they enjoy it, partly to their enlisting themselves under the rival banners of the pre-eminent members, partly to alliances with neighbouring princes, which the constitution of the Empire does not prohibit. What is the state of things in the lax system of the Dutch confederacy? Holland contains about half the people, supplies about half the money, and by her influence silently and indirectly governs the whole republic. In a word, the two extremes before us are, a perfect separation, and a perfect incorporation of the thirteen States. In the first case, they would be independent nations, subject to no law but the law of nations. In the last they would be mere counties of one entire republic, subject to one common law. In the first case, the smaller States would have every thing to fear from the larger. In the last they would have nothing to fear. The true policy of the small States, therefore, lies in promoting those principles, and that form of government, which will most approximate the States to the condition of counties. Another consideration may be added. If the General Government be feeble, the larger States, distrusting its continuance, and foreseeing that their importance and security may depend on their own size and strength, will never submit to a partition. Give to the General Government sufficient energy and permanency, and you remove the objection. Gradual partitions of the large, and junctions of the small States, will be facilitated, and time may effect that equalization which is wished for by the small States now, but can never be accomplished at once.

James Madison, Journal of the Federal Convention, Vol.1, p.361-p.362

Mr. GOUVERNEUR MORRIS opposed it. The internal police, as it would be called and understood by the States, ought to be infringed in many cases, as in the case of paper-money, and other tricks by which citizens of other States may be affected.

James Madison, Journal of the Federal Convention, Vol.1, p.382-p.383

Mr. GOUVERNEUR MORRIS. It is necessary to take into one view all that relates to the establishment of the Executive; on the due formation of which must depend the efficacy and utility of the union among the present and future States. It has been a maxim in political science, that republican government is not adapted to a large extent of country, because the energy of the executive magistracy cannot reach the extreme parts of it. Our country is an extensive one. We must either then renounce the blessings of the Union, or provide an Executive with sufficient vigor to pervade every part of it. This subject was of so much importance that he hoped to be indulged in an extensive view of it. One great object of the Executive is, to control the Legislature. The Legislature will continually seek to aggrandize and perpetuate themselves; and will seize those critical moments produced by war, invasion, or convulsion, for that purpose. It is necessary, then, that the Executive magistrate should be the guardian of the people, even of the lower classes, against legislative tyranny; against the great and the wealthy, who in the course of things will necessarily compose the legislative body. Wealth tends to corrupt the mind;-to nourish its love of power; and to stimulate it to oppression. History proves this to be the spirit of the opulent. The check provided in the second branch was not meant as a check on legislative usurpations of power, but on the abuse of lawful powers, on the propensity of the first branch to legislate too much, to run into projects of paper-money, and similar expedients. It is no check on legislative tyranny. On the contrary it may favor it; and if the first branch can be seduced, may find the means of success. The Executive, therefore, ought to be so constituted, as to be the great protector of the mass of the people. It is the duty of the Executive to appoint the officers, and to command the forces, of the Republic; to appoint, first ministerial officers for the administration of public affairs; secondly, officers for the dispensation of justice. Who will be the best judges whether these appointments be will made? The people at large who will know, will see, will fee, the effects of them. Again, who can judge so well of the discharge of military duties for the protection and security of the people, as the people themselves, who are to be protected and secured? He finds, too, that the Executive is not be be re-eligible. What effect will this have? In the first place, it will destroy the great incitement to merit, public esteem, by taking away the hope of being rewarded with a re-appointment. It may give a dangerous turn to one of the stongest passions in the human breast. The love of fame is the great spring to noble and illustrious actions. Shut the civil road to glory, and he may be compelled to seek it by the sword.

James Madison, Journal of the Federal Convention, Vol.2, p.400 - p.401 - p.402

Mr. GOUVERNEUR MORRIS. Some check being necessary on the Legislature, the question is, in what hands it should be lodged? On one side, it was contended, that the Executive alone ought to exercise it. He did not think that an Executive appointed for six years, and impeachable whilst in office, would be a very effectual check. On the other side, it was urged, that he ought to be reinforced by the Judiciary department. Against this it was objected, that expositors of laws ought to have no hand in making them, and arguments in favor of this had been drawn from England. What weight was due to them might be easily determined by an attention to facts. The truth was, that the Judges in England had a great share in the legislation. They are consulted in difficult and doubtful cases. They may be, and some of them are, members of the Legislature. They are, or may be, members of the Privy Council; and can there advise the Executive, as they will do with us if the motion succeeds. The influence the English Judges may have, in the latter capacity, in strengthening the Executive check, cannot be ascertained, as the King, by his influence, in a manner dictates the laws. There is one difference in the two cases, however, which disconcerts all reasoning from the British to our proposed Constitution. The British Executive has so great an interest in his prerogatives, and such power for means of defending them, that he will never yield any part of them. The interest of our Executive is so inconsiderable and so transitory, and his means of defending it so feeble, that there is the justest ground to fear his want of firmness in resisting encroachments. He was extremely apprehensive that the auxiliary firmness and weight of the Judiciary would not supply the deficiency. He concurred in thinking the public liberty in greater danger from Legislative usurpations, than from any other source. It had been said that the Legislature ought to be relied on, as the proper guardians of liberty. The answer was short and conclusive. Either bad laws will be pushed, or not. On the latter supposition, no check will be wanted. On the former, a strong check will be necessary. And this is the proper supposition. Emissions of paper-money, largesses to the people, a remission of debts, and similar measures, will at some times be popular, and will be pushed for that reason. At other times, such measures will coincide with the interests of the Legislature themselves, and that will be a reason not less cogent for pushing them. It may be thought that the people will not be deluded and misled in the latter case. But experience teaches another lesson. The press is indeed a great means of diminishing the evil; yet it is found to be unable to prevent it altogether.

James Madison, Journal of the Federal Convention, Vol.2, p.454

To coin money;

James Madison, Journal of the Federal Convention, Vol.2, p.454

To regulate the value of foreign coin;

James Madison, Journal of the Federal Convention, Vol.2, p.454

To declare the law and punishment of piracies and felonies committed on the high seas, and the punishment of counterfeiting the coin of the United States, and of offences against the law of nations;

No State shall coin money; nor grant letters of marque and reprisal; nor enter into any treaty, alliance or confederation; nor grant any title of nobility.

No State, without the consent of the Legislature of the United States, shall emit bills of credit, or make anything but specie a tender in payment of debts; nor lay imposts or duties on imports; nor keep troops or ships of war in time of peace; nor enter into any agreement or compact with another State, or with any foreign power; nor engage in any war, unless it shall be actually invaded by enemies, or the danger of invasion be so imminent as not to admit of a delay until the Legislature of the United States can be consulted.

James Madison, Journal of the Federal Convention, Vol.2, p.537

Article sixth, relative to the elections, qualifications, and proceedings of the Legislature, resumed-Motion to subject joint resolutions, (except on adjournment,) to the negative of the Executive-Agreed to.

Article seventh, relative to the powers of the Legislature-Motion to exclude exports from duty-Postponed-Motion to authorize the establishment of post roads-Agreed to-Motion to forbid the emission of bills of credit-Agreed to.

James Madison, Journal of the Federal Convention, Vol.2, p.541

The several clauses,-for coining money-for regulating foreign coin-for fixing the standard of weights and measures,-were agreed to, nem. con.

James Madison, Journal of the Federal Convention, Vol.2, p.542

Mr. MASON had doubts on the subject. Congress, he thought, would not have the power, unless it were expressed. Though he had a mortal hatred to paper-money, yet as he could not foresee all emergencies, he was unwilling to tie the hands of the Legislature. He observed that the late war could not have been carried on, had such a prohibition existed.

James Madison, Journal of the Federal Convention, Vol.2, p.542

Mr. MERCER was a friend to paper-money, though in the present state and temper of America, he should neither propose nor approve of such a measure. He was consequently opposed to a prohibition of it altogether. It will stamp suspicion on the Government, to deny it a discretion on this point. It was impolitic, also, to excite the opposition of all those who were friends to paper-money. The people of property would be sure to be on the side of the plan, and it was impolitic to purchase their further attachment with the loss of the opposite class of citizens.

James Madison, Journal of the Federal Convention, Vol.2, p.542 - p.543

Mr. ELLSWORTH thought this a favourable moment, to shut and bar the door against paper-money. The mischiefs of the various experiments which had been made were now fresh in the public mind, and had excited the disgust of all the respectable part of America. By withholding the power from the new Government, more friends of influence would be gained to it than by almost anything else. Paper-money can in no case be necessary. Give the Government credit, and other resources will offer. The power may do harm, never good.

James Madison, Journal of the Federal Convention, Vol.2, p.543

Mr. RANDOLPH, notwithstanding his antipathy to paper-money, could not agree to strike out the words, as he could not foresee all the occasions that might arise.

James Madison, Journal of the Federal Convention, Vol.2, p.543

Mr. WILSON. It will have a most salutary influence on the credit of the United States, to remove the possibility of paper-money. This expedient can never succeed whilst its mischiefs are remembered. And as long as it can be resorted to, it will be a bar to other resources.

James Madison, Journal of the Federal Convention, Vol.2, p.546

Mr. ELLSWORTH enlarged the motion, so as to read, "to define and punish piracies and felonies committed on the high seas, counterfeiting the securities and current coin of the United States, and offences against the laws of nations," which was agreed to, nem. con.

James Madison, Journal of the Federal Convention, Vol.2, p.618

Article eleventh, relative to the Judiciary-Motion to confine the appellate jurisdiction in certain cases to the Supreme Court-Agreed to-Motion that crimes not committed within any State be tried where the Legislature directs-Agreed to-Motion that the writ of Habeas Corpus shall not be suspended, unless required by invasion or rebellion-Agreed to.

Article twelfth, relative to the prohibitions on the power of the States-Motions to prohibit them absolutely from emitting bills of credit, legalizing any tender except gold or silver, or passing attainders or retrospective laws, or laying duties on imports-Agreed to-Motion to forbid them to lay embargoes-Disagreed to.

Article thirteenth, relative to the prohibitions on slaves, unless authorized by the National Legislature-Motion to include in these duties on exports, and, if permitted, to be for the use of the use of the United States-Agreed to.

Article fourteenth, relative to the rights of citizens of one State in another-Agreed to.

Article fifteenth, relative to the delivery of persons fleeing to other States-Motion to extend it to all cases of crime-Agreed to-Motion to extend it to fugitive slaves-Withdrawn.

James Madison, Journal of the Federal Convention, Vol.2, p.619

Mr. WILSON and Mr. SHERMAN moved to insert, after the words, "coin money," the words, "nor emit bills of credit, nor make any thing but gold and silver coin a tender in payment of debts;" making these prohibitions absolute, instead of making the measures allowable, as in the thirteenth Article, with the consent of the Legislature of the United States.

James Madison, Journal of the Federal Convention, Vol.2, p.620

Mr. GORHAM thought the purpose would be as well secured by the provision of Article 13, which makes the consent of the General Legislature necessary; and that in that mode no opposition would be excited; whereas an absolute prohibition of paper-money would rouse the most desperate opposition from its partisans.

James Madison, Journal of the Federal Convention, Vol.2, p.620

Mr. SHERMAN thought this a favourable crisis for crushing paper-money. If the consent of the Legislature could authorize emissions of it, the friends of paper-money would make every exertion to get into the Legislature in order to license it.

James Madison, Journal of the Federal Convention, Vol.2, p.620

The question being divided,-on the first part: "nor emit bills of credit,"

James Madison, Journal of the Federal Convention, Vol.2, p.620

Mr. SHERMAN. Why then prohibit bills of credit?

James Madison, Journal of the Federal Convention, Vol.2, p.704

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.

James Madison, Journal of the Federal Convention, Vol.2, p.705

To provide for the punishment of counterfeiting the securities and current coin of the United States.

James Madison, Journal of the Federal Convention, Vol.2, p.706

Sect. 10. No State shall coin money, or emit bills of credit, or make any thing but gold or silver coin a tender in payment of debts, or pass any bills of attainder, or ex post facto laws, or laws altering or impairing the obligation of contracts; or grant letters of marque and reprisal, or enter into any treaty, alliance or confederation, or grant any title of nobility.

James Madison, Journal of the Federal Convention, Vol.2, p.729 - p.730

The firs' clause of Article 1, Sect. 10, was altered so as to read, "no State shall enter into any treaty, alliance or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility."

James Madison, Journal of the Federal Convention, Vol.2, p.753

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures:

James Madison, Journal of the Federal Convention, Vol.2, p.753

To provide for the punishment of counterfeiting the securities and current coin of the United States:

James Madison, Journal of the Federal Convention, Vol.2, p.755

Sect. 10. No State shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make any thing but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

James Madison, Federalist No. 10, p.128

The influence of factious leaders may kindle a flame within their particular States but will be unable to spread a general conflagration through the other States. A religious sect may degenerate into a political faction in a part of the Confederacy; but the variety of sects dispersed over the entire face of it must secure the national councils against any danger from that source. A rage for paper money, for an abolition of debts, for an equal division of property, or for any other improper or wicked project, will be less apt to pervade the whole body of the Union than a particular member of it, in the same proportion as such a malady is more likely to taint a particular county or district than an entire State.

James Madison, Federalist No. 19, p.165

The diet possesses the general power of legislating for the empire; of making war and peace; contracting alliances; assessing quotas of troops and money; constructing fortresses; regulating coin; admitting new members; and subjecting disobedient members to the ban of the empire, by which the party is degraded from his sovereign rights and his possessions forfeited. The members of the confederacy are expressly restricted from entering into compacts prejudicial to the empire; from imposing tolls and duties on their mutual intercourse, without the consent of the emperor and diet; from altering the value of money; from doing injustice to one another; or from affording assistance or retreat to disturbers of the public peace. And the ban is denounced against such as shall violate any of these restrictions. The members of the diet, as such, are subject in all cases to be judged by the emperor and diet, and in their private capacities by the aulic council and imperial chamber.

James Madison, Federalist No. 19, p.168

They have no common treasury; no common troops even in war; no common coin; no common judicatory; nor any other common mark of sovereignty.

James Madison, Federalist No. 38, p.252

It is a matter both of wonder and regret that those who raise so many objections against the new Constitution should never call to mind the defects of that which is to be exchanged for it. It is not necessary that the former should be perfect: it is sufficient that the latter is more imperfect. No man would refuse to give brass for silver or gold, because the latter had some alloy in it. No man would refuse to quit a shattered and tottering habitation for a firm and commodious building because the latter had not a porch to it, or because some of the rooms might be a little larger or smaller, or the ceiling a little higher or lower than his fancy would have planned them. But waiving illustrations of this sort, is it not manifest that most of the capital objections urged against the new system lie with tenfold weight against the existing Confederation? Is an indefinite power to raise money dangerous in the hands of the federal government? The present Congress can make requisitions to any amount they please, and the States are constitutionally bound to furnish them; they can emit bills of credit as long as they will pay for the paper; they can borrow, both abroad and at home, as long as a shilling will be lent. Is an indefinite power to raise troops dangerous? The Confederation gives to Congress that power also; and they have already begun to make use of it. Is it improper and unsafe to intermix the different powers of government in the same body of men? Congress, a single body of men, are the sole depositary of all the federal powers. Is it particularly dangerous to give the keys of the treasury, and the command of the army, into the same hands? The Confederation places them both in the hands of Congress. Is a bill of rights essential to liberty? The Confederation has no bill of rights. Is it an objection against the new Constitution that it empowers the Senate, with the concurrence of the executive, to make treaties which are to be the laws of the land? The existing Congress, without any such control, can make treaties which they themselves have declared and most of the States have recognized, to be the supreme law of the land. Is the importation of slaves permitted by the new Constitution for twenty years? By the old it is permitted forever.

James Madison, Federalist No. 42, p.275 - p.276

Under this head might be included the particular restraints imposed on the authority of the States and certain powers of the judicial department; for the former are reserved for a distinct class and the latter will be particularly examined when we arrive at the structure and organization of the government. I shall confine myself to a cursory review of the remaining powers comprehended under this third description, to wit: to regulate commerce among the several States and the Indian tribes; to coin money, regulate the value thereof and of foreign coin; to provide for the punishment of counterfeiting the current coin and securities of the United States; to fix the standard of weights and measures; to establish a uniform rule of naturalization, and uniform laws of bankruptcy; to prescribe the manner in which the public acts, records, and judicial proceedings of each State shall be proved, and the effect they shall have in other States; and to establish post offices and post roads.

James Madison, Federalist No. 42, p.277

All that need be remarked on the power to coin money, regulate the value thereof, and of foreign coin, is that by providing for this last case, the Constitution has supplied a material omission in the Articles of Confederation. The authority of the existing Congress is restrained to the regulation of coin struck by their own authority, or that of the respective States. It must be seen at once that the proposed uniformity in the value of the current coin might be destroyed by subjecting that of foreign coin to the different regulations of the different States.

James Madison, Federalist No. 42, p.277

The punishment of counterfeiting the public securities, as well as the current coin, is submitted of course to that authority which is to secure the value of both.

James Madison, Federalist No. 42, p.277

The regulation of weights and measures is transferred from the Articles of Confederation, and is founded on like considerations with the preceding power of regulating coin.

James Madison, Federalist No. 44, p.286

1. "No State shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver a legal tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts; or grant any title of nobility."

James Madison, Federalist No. 44, p.287

The extension of the prohibition to bills of credit must give pleasure to every citizen in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace, from the pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican government, constitutes an enormous debt against the States chargeable with this unadvised measure, which must long remain unsatisfied; or rather an accumulation of guilt, which can be expiated no otherwise than by a voluntary sacrifice on the altar of justice of the power which has been the instrument of it. In addition to these persuasive considerations, it may be observed that the same reasons which show the necessity of denying to the States the power of regulating coin prove with equal force that they ought not to be at liberty to substitute a paper medium in the place of coin. Had every State a right to regulate the value of its coin, there might be as many different currencies as States, and thus the intercourse among them would be impeded; retrospective alterations in its value might be made, and thus the citizens of other States be injured, and animosities be kindled among the States themselves. The subjects of foreign powers might suffer from the same cause, and hence the Union be discredited and embroiled by the indiscretion of a single member. No one of these mischiefs is less incident to a power in the States to emit paper money than to coin gold or silver. The power to make anything but gold and silver a tender in payment of debts is withdrawn from the States on the same principle with that of issuing a paper currency.

Alexander Hamilton, Federalist No. 69, p.401 - p.402

The President of the United States would be an officer elected by the people for four years; the king of Great Britain is a perpetual and hereditary prince. The one would be amenable to personal punishment and disgrace; the person of the other is sacred and inviolable. The one would have a qualified negative upon the acts of the legislative body; the other has an absolute negative. The one would have a right to command the military and naval forces of the nation; the other, in addition to this right, possesses that of declaring war, and of raisiny and regulating fleets and armies by his own authority. The one would have a concurrent power with a branch of the legislature in the formation of treaties; the other is the sole possessor of the power of making treaties. The one would have a like concurrent authority in appointing to offices; the other is the sole author of all appointments. The one can confer no privileges whatever; the other can make denizens of aliens, noblemen of commoners; can erect corporations with all the rights incident to corporate bodies. The one can prescribe no rules concerning the commerce or currency of the nation; the other is in several respects the arbiter of commerce, and in this capacity can establish markets and fairs, can regulate weights and measures, can lay embargoes for a limited time, can coin money, can authorize or prohibit the circulation of foreign coin. The one has no particle of spiritual jurisdiction; the other is the supreme head and governor of the national church! What answer shall we give to those who would persuade us that things so unlike resemble each other? The same that ought to be given to those who tell us that a government, the whole power of which would be in the hands of the elective and periodical servants of the people, is an aristocracy, a monarchy, and a despotism.

PUBLIUS [Hamilton]

Alexander Hamilton, Federalist No. 80, p.445

The first point depends upon this obvious consideration, that there ought always to be a constitutional method of giving efficacy to constitutional provisions. What, for instance, would avail restrictions on the authority of the State legislatures, without some constitutional mode of enforcing the observance of them? The States, by the plan of the convention, are prohibited from doing a variety of things, some of which are incompatible with the interests of the Union and others with the principles of good government. The imposition of duties on imported articles and the emission of paper money are specimens of each kind. No man of sense will believe that such prohibitions would be scrupulously regarded without some effectual power in the government to restrain or correct the infractions of them. This power must either be a direct negative on the State laws, or an authority in the federal courts to overrule such as might be in manifest contravention of the articles of Union. There is no third course that I can imagine. The latter appears to have been thought by the convention preferable to the former, and I presume will be most agreeable to the States.

Alexander Hamilton, Federalist No. 80, p.448

First. To all cases in law and equity, arising under the Constitution and the laws of the United States, This corresponds to the two first classes of causes which have been enumerated, as proper for the jurisdiction of the United States. It has been asked what is meant by "cases arising under the Constitution," in contradistinction from those "arising under the laws of the United States"? The difference has been already explained. All the restrictions upon the authority of the State legislatures furnish examples of it. They are not, for instance, to emit paper money; but the interdiction results from the Constitution and will have no connection with any law of the United States. Should paper money, notwithstanding, be emitted, the controversies concerning it would be cases arising under the Constitution and not the laws of the United States, in the ordinary signification of the terms. This may serve as a sample of the whole.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.6

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.6

To provide for the punishment of counterfeiting the securities and current coin of the United States;

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.8

No State shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money, emit bills of credit; make any thing but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law; or law impairing the obligation of contracts; or grant any title of nobility.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.48

The original of this commission has been preserved in the department of state, at Washington city. Congress at the same time resolved, that they would maintain, assist, and adhere to George Washington, with their lives and fortunes, in the same cause. On the 22d of June, it was resolved to emit a sum not exceeding two millions of Spanish milled dollars, in bills of credit, for the redemption of which the twelve confederated colonies were pledged. On the 24th of June, a resolution was entered into for devising ways and means to put the militia of America in a proper state for defence. On the 30th of June, Congress adopted rules and regulations for the government of the army. On the same day, the committee for Indian affairs was directed to prepare proper talks to the several tribes, for engaging the continuance of their friendship and neutrality.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.50

On the 1st of November, the exportation of rice was prohibited to Great Britain, Ireland, or the islands of Jersey, Guernsey, Sark, Alderney, or Man, or any other European island or settlement within the British dominions. On the 3d of November, Congress resolved, that it should be recommended to the Provincial Convention of New Hampshire, which had applied for advice, to call a full and free representation of the people, and to establish such a form of government as would best promote the happiness of the people, &c., during the continuance of the dispute between Great [p.51] Britain and the colonies. A similar resolution was entered into in relation to South Carolina. On the 8th of November, a draft of instructions was agreed to for R. R. Livingston, Robert Treat Paine, and J. Langdon, who were appointed to proceed to Ticonderoga, to consult with General Schuyler on the necessary operations in that quarter, and to exert their utmost endeavors to induce the Canadians to accede to a union with the colonies; to form, from their several parishes, a provincial convention; and to send delegates to Congress. At this time, likewise, all letters to and from the delegates of the United Colonies, during the sessions of Congress, were authorized to pass and be carried free of postage, the members having engaged upon honor not to frank or endorse any letters but their own. On the 10th of November, a similar privilege, without exception, was extended to all letters to and from the commander-in-chief of the Continental army, or the chief commander in the army, in the northern military department. On the same day, it was resolved to raise two battalions of marines. On the 11th of November, a resolution was entered into, authorizing the repair of the fortifications, &c., of Quebec, in case it should be taken from the British. On the 16th of November, it was resolved that no member of Congress should absent himself from that body without leave; and a rule was adopted, that every member should remain in his seat whilst any paper was reading or question was putting On the 23d of November, Congress authorized the consideration of a plan for carrying on a trade with the Indians. On the 25th of November, resolutions were passed, directing seizures, and the capture, under commissions obtained from the Congress, together with the condemnation, of British vessels employed in a hostile manner against the colonies; the mode of trial and of condemnation was pointed out, and the shares of the prizes were apportioned. On the 28th of November, Congress adopted rules for the regulation of the navy of the United Colonies. On the 29th of November, Congress was informed of General Montgomery's having, with the Continental troops, taken possession of Montreal on the 12th of that month. The same day an emission of bills of credit was resolved on, to the amount of three millions of dollars.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.52

On the 6th of January, 1776, a regulation was adopted relative to the division of prizes and prize-money, taken by armed vessels, among officers and men. On the 9th of January, it was resolved that no postage should be paid for any letters to or from private soldiers, while engaged in actual service in defence of the United Colonies, and that they should be franked by some person authorized for that purpose. On the 11th of January, Congress ordained that persons refusing to receive the Continental bills of credit in payment, or who should obstruct and discourage the currency or circulation thereof, should, on conviction, be deemed, published, and treated, as an enemy of the country, and be precluded from all trade and intercourse with the inhabitants of the colonies. On the 27th of January, resolutions were entered into for carrying on trade with the Indians, and for procuring the necessary supply of goods for that purpose. On the 30th of January, it was resolved that no apprentice should be enlisted within the colonies of New Jersey, Pennsylvania, the counties on Delaware, or Maryland, as a soldier in the army or navy of the United Colonies, without the previous consent of his master or mistress, in writing; all those enlisted in a contrary manner were ordered to be discharged, on application, and a reimbursement of expenses incurred [p.53] for enlistment; and every person under the age of twenty-one years, who had enlisted in the army or navy, was, within twenty-four hours thereafter, entitled to his discharge on refunding the amount of money and articles with which he had been supplied. It was, at the same time, recommended to creditors, who had claims against persons in the army or navy for less than thirty-five dollars, not to arrest the debtors until their terms of service had expired.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.53

On the 17th of February, a standing committee of five was appointed for superintending the treasury, and Congress directed the emission of the further sum of four million dollars in bills of credit. On the 27th of February, the middle and southern colonies were divided into two military departments, in the following manner: New York, New Jersey, Pennsylvania, the lower counties on Delaware, and Maryland, to constitute one; Virginia, North Carolina, South Carolina, and Georgia, to constitute another; the former to be put under the command of a major-general, two brigadier-generals, and a proper staff; the latter under a major-general, three brigadier-generals, with a suitable staff.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.54

On the 6th of May, it was resolved that ten millions of dollars be raised, for the purpose of carrying on the war, for the year 1776; and measures were taken for treating with the Indians. On the 9th of May, a resolution passed for the emission of five millions of dollars in bills of credit, in part of the ten millions of dollars voted for the service of the year 1776. On the 10th of May, it was resolved to recommend to the respective assemblies and conventions of the United [p.55] Colonies, where no government sufficient to the exigencies of their affairs had been established, to adopt such a government as should, in the opinion of the representatives of the people, best conduce to the happiness and safety of their constituents in particular, and of America in general. A preamble to this resolution, agreed to on the 15th of May, stated the intention to be totally to suppress the exercise of every kind of authority under the British crown.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.82

The United States in Congress assembled shall also have the sole and exclusive right and power of regulating the alloy and value of coin struck by their own authority, or by that of the respective states; fixing the standard of weights and measures throughout the United States; regulating the trade and managing all affairs with the Indians not members of any of the states, provided that the legislative right of any state within its own limits be not infringed or violated; establishing and regulating post-offices from one state to another throughout all the United States, and exacting such postage on the papers passing through the same as may be requisite to defray the expenses of the said office; appointing all officers of the land forces in the service of the United States, excepting regimental officers; appointing all the officers of the naval forces, and commissioning all officers whatever in the service of the United States; making rules for the government and regulation of the said land and naval forces, and directing their operations.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.83

The United States in Congress assembled shall never engage in a war; nor grant letters of marque and reprisal in time of peace; nor enter into any treaties or alliances; nor coin money; nor regulate the value thereof, nor ascertain the sums and expenses necessary for the defence and welfare of the United States, or any of them; nor emit bills; nor borrow money upon the number of vessels of war to be built or purchased, or the number of the army or navy,-unless nine states assent to the same; nor shall a question or any other point, except for adjourning from day to day, be determined, unless by the votes of a majority of the United States in Congress assembled.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.84

ARTICLE 12. All bills of credit emitted, moneys borrowed, and debts contracted, by or under the authority of Congress, before the assembling of the United States in pursuance of the present Confederation, shall be deemed and considered as a charge against the United States, for payment and satisfaction whereof the said United States, and the public faith, are hereby solemnly pledged.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.147

"To borrow money and emit bills of credit;

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.147

"To coin money, and to regulate the value of all coins, and fix the standard of weights and measures;

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.147

"To declare the law and punishment of piracies and felonies at sea, and of counterfeiting coin, and of all offences against the laws of nations;

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.149

"ART. XI. No state shall grant letters of marque and reprisal, or enter into treaty, or alliance, or confederation; nor grant any title of nobility; nor, without the consent of the legislature of the United States, lay any impost on imports; nor keep troops or ships of war in time of peace; nor enter into compacts with other states or foreign powers, or emit bills of credit, or make any thing but gold, silver, or copper, a tender in payment of debts; nor engage in war, except in self-defence, when actually invaded, or the danger of invasion is so great as not to admit of a delay until the government of the United States can be informed thereof. And to render these prohibitions effectual, the legislature of the United States shall have the power to revise the laws of the several states that may be supposed to infringe the powers exclusively delegated by this constitution to Congress, and to negative and annul such as do.

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.226

"To coin money;

Jonathan Elliot, Debates on the Adoption of the Federal Constitutiont, Vol. 1, p.226

"To regulate the value of foreign coin;

 

C.    Summation of one economist’s critical and thoughtful analysis on fractional reserve banking, federal reserve notes, and the United States definition thereof:

Document 100.0.5.5............13 of 38.........
Subject: Is this true?
Date: 07 June, 2002 9:09 AM
THE HARD FACTS NOBODY KNOWS ABOUT The Federal Reserve and the National Debt.

FACT#1. The Federal Reserve is a private corporation, owned and controlled
mostly by foreign bankers.

FACT#2. How the Federal Reserve banks work (using a 10% reserve
requirement).

  1. F.R. "creates" $1,000,000 worth of "debt certificates" with no assets
behind the creation, just the "OK" of Congress, and distributes it to banks.
  2. The bank "Holds" the 10% reserve as operating capital ($100,000) and
loans the rest out at 10% interest.
  3. The bank pockets $90,000 in interest, and accepts the $900,000 back as
a deposit.
  4. The bank retains 10% of the $900,000 deposit as a reserve, and loans
out the $810,000 at 10% interest.
  5. The process is repeated over and over, with "hard" assets pledged as
collateral for these "loans". Thus, it starts with "no money" and ends up
with houses, cars, land, silver, gold...real assets...and all it took was
some ink, some paper, and the cooperation of Congress.

FACT#3. The BIRTH of money #1...Congress authorizes the F.R. to purchase U.
S. Notes from the U.S. Bureau of Engraving for 2.5 cents per bill (no
difference between $1 and $1000 bills). The F.R. then issues an equal amount
of "debt certificate" Federal Reserve Notes which they use to purchase U.S.
Treasury Bonds. Taxpayers are, supposedly, obligated to pay off these bonds
at FULL FACE VALUE, plus the debt of the original currency purchased at 2.5
cents per bill!

FACT#4. The BIRTH of money #2...All credit is hypothecated upon the faith
and worthiness of the "United States". Congress authorizes various
corporations to extend the credit of the United States (as a privilege, not
a right) to finance mortgages and other types of credit. You and I could not
set up shop to extend credit to others, except we be licensed and approved
by the government. Thus, it is not the mortgage company, with whom you sign
a contract, who extends you credit...they are only an "agent"... it is the
United States who is the party with standing, and the only entity which can
sue or foreclose for breech of the contract. BET YOU DIDN'T KNOW THAT! Then
there is the credit contract itself...a fraud perpetrated upon the buyer
every time. It is another means of "creation" of money. There is no "money"
exchanged in the mortgage transaction. It is a book entry made by the
"agent" which "monetizes" the value of the real thing, the property
involved. No contract is valid except both parties bring something of value,
called "consideration", to seal the contract. You are bringing the property,
and the promise of future payments...they bring nothing but the ability to
create credit...a congressional "okie-dokie"...to the contract. Thus the
government fraudulently claims superior ownership rights to the property
involved, and the ability to charge the "tenant" rent (called property
taxes, bet U thought U owned that property, right?) for the privilege of
using paper credit.

FACT#5. The taxes paid by Americans never provide ANY services to our
country...all collected income tax money goes DIRECTLY to the F.R. Board
(check the back of ANY check sent to the IRS...it is true).

FACT #6. All U. S currency is "Federal Reserve Notes" of debt, owed to the
Federal Reserve, and is borrowed into existence. How can you pay the debt
when you have to "borrow" the currency to pay the debt, FROM THE GUYS YOU
ALREADY OWE? It is like paying off your VISA card using THE SAME VISA
CARD...the interest just keeps growing, and no principal is ever paid! It is
a ponzi scheme....a scam...and America is the mark!

Thus, the national debt can never be repaid. It is not meant to be repaid.
It is meant to bring Americans to ruin without bloodshed. It is the legal
takeover of the country, piece-by-piece, and the voluntary enslaving of the
sovereign people, who will ULTIMATELY be asked to accept the demise of the
Constitution, and their sovereign status under that Constitution, to become
"subjects" of the benevolent ruling class.


THE SOLUTION.
This debt is owed by a "corporation" called "THE UNITED STATES"...A true
LEGAL ENTITY...just like AT&T or any other company. It was formed, under
Article IV powers of the Constitution, to do, in the territories what the
U.S. Constitution said the Federal Government could NOT do in the states of
the union, and I'm not talking just about income taxes, although that is
certainly the case!

This whole scheme is based upon Congress' "sovereign rights" over the
territories (Article IV) they established a "corporation", a central bank,
and a paper money supply for those areas and peoples of the territories and
areas over which the "FEDS" were Sovereign (see Article IV, Section 3 of the
national constitution).... this was NOT done for or apply within the
jurisdictions of the 50 union states, mind you, since it would have been
openly UN-constitutional to do so. Only the "territories", the subject
peoples within those territories or the 50 union states, and those 14th
Amendment "citizens of the United States, and subject to the jurisdiction
thereof"(see the 14th amendment, the tax code, the voter registration cards,
etc) who possess only the inferior legal status of "subjects of the United
States"(according to the Supreme Court), and do NOT have Bill of Rights
protections, guarantees, or unalienable rights from God (only civil rights
from government, who created them in law) ...they are Federal
(U.S.)citizens. The "federal" banks were set up to provide services to only
federal citizens and other "subjects" of the United States. Free American
Citizens began accepting the fake money (not backed by any substance of
value), along with the genuine (redeemable at par for a set quantity of gold
or silver), until 1964, when redemption of "paper" into real money (silver
and/or gold coin) was terminated, and we all began to exchange only the fake
stuff!!

This corporate US makes laws which apply ONLY to those areas and peoples
over which the Constitution gives the federal government sovereignty (See US
Constitution, Art 1, Sec. 8, and Art. IV, Sec. 3, and Downes Vs. Bidwell,
182 U.S. 244). The ignorant sovereign people (the free natural American
Citizen of the constitutional United States of America), began to submit to
and obey laws which were legally applicable only to "subjects" of the
corporate federal US. We were also tricked into legally volunteering to all
become "federal persons" by the promise of old age security... that's
right...Social Security...the ever tightening noose around the throat of We
the People. This explains why Congress can pass laws about guns and other
"protected" topics, and not have such laws declared unconstitutional. They
are not legislating for the 50 states or the Citizen of one of those 50
states. If you submit to a law, however, you are judged to be under that
law. If you become a "federal person" through application for a social
security number, or other federal benefit program, you have traded your
birthright for a bowl of pottage (see Esau in the Bible). WE THE SHEEPLE
have been voluntarily sheered by our own ignorance.  Notice that there is
still gold and silver coin being minted today (constitutional money)...but
its value is calculated in federal reserve notes, falsely called "dollars".

WE MUST NOW reassert our sovereignty! It is time for "We the People" to
declare the corporate US to be bankrupt, remove the Federal Reserve from the
U. S. of A., and require Congress to turn on the presses and begin minting
lawful coins (or Silver and Gold Certificates) which have no debt attached
to their creation. Lawful money which is backed by gold, silver, and the
productivity of Sovereign Americans. If you have understood how the debt is
created, you know that it has been a fraud from the outset. It is no more a
legal debt than Federal Reserve Notes are legal money. It is a "Corporate
debt" of the federal corporation known as the "UNITED STATES", which is NOT
the constitutional entity established in 1791.

 

 

Section 03. The federal reserve system is a privately held banking consortium and cartel. The FED is a private corporation, with all the powers granted to corporate structures. The FED can issue stock! What follows are the sections from the federal reserve act, that lay out the fed’s corporate powers.

 

A. FEDERAL RESERVE ACT

SECTION 4—Federal Reserve Banks

1. Organization of Reserve Banks

When the organization committee shall have established Federal reserve districts as provided in section two of this Act, a certificate shall be filed with the Comptroller of the Currency showing the geographical limits of such districts and the Federal reserve city designated in each of such districts. The Comptroller of the Currency shall thereupon cause to be forwarded to each national bank located in each district, and to such other banks declared to be eligible by the organization committee which may apply therefor, an application blank in form to be approved by the organization committee, which blank shall contain a resolution to be adopted by the board of directors of each bank executing such application, authorizing a subscription to the capital stock of the Federal reserve bank organizing in that district in accordance with the provisions of this Act.

[Omitted from U.S. Code. Part of original Federal Reserve Act; not amended.]

2. Organization Certificate

When the minimum amount of capital stock prescribed by this Act for the organization of any Federal reserve bank shall have been subscribed and allotted, the organization committee shall designate any five banks of those whose applications have been received, to execute a certificate of organization, and thereupon the banks so designated shall, under their seals, make an organization certificate which shall specifically state the name of such Federal reserve bank, the territorial extent of the district over which the operations of such Federal reserve bank are to be carried on, the city and State in which said bank is to be located, the amount of capital stock and the number of shares into which the same is divided, the name and place of doing business of each bank executing such certificate, and of all banks which have subscribed to the capital stock of such Federal reserve bank and the number of shares, subscribed by each, and the fact that the certificate is made to enable those banks executing same, and all banks which have subscribed or may thereafter subscribe to the capital stock of such Federal reserve bank, to avail themselves of the advantages of this Act.

[Omitted from U.S. Code. Part of original Federal Reserve Act; not amended.]

3. Acknowledgment and Filing

The said organization certificate shall be acknowledged before a judge of some court of record or notary public; and shall be, together with the acknowledgment thereof, authenticated by the seal of such court, or notary, transmitted to the Comptroller of the Currency, who shall file, record and carefully preserve the same in his office.

[Omitted from U.S. Code. Part of original Federal Reserve Act; not amended.]

4. General Corporate Powers

Upon the filing of such certificate with the Comptroller of the Currency as aforesaid, the said Federal reserve bank shall become a body corporate and as such, and in the name designated in such organization certificate, shall have power—

First. To adopt and use a corporate seal.

Second. To have succession after the approval of this Act until dissolved by Act of Congress or until forfeiture of franchise for violation of law.

Third. To make contracts.

Fourth. To sue and be sued, complain and defend, in any court of law or equity.

Fifth. To appoint by its board of directors a president, vice presidents, and such officers and employees as are not otherwise provided for in this Act, to define their duties, require bonds for them and fix the penalty thereof, and to dismiss at pleasure such officers or employees. The president shall be the chief executive officer of the bank and shall be appointed by the board of directors, with the approval of the Board of Governors of the Federal Reserve System, for a term of five years; and all other executive officers and all employees of the bank shall be directly responsible to him. The first vice president of the bank shall be appointed in the same manner and for the same term as the president, and shall, in the absence or disability of the president or during a vacancy in the office of the president, serve as chief executive officer of the bank. Whenever a vacancy shall occur in the office of the president or the first vice president, it shall be filled in the manner provided for original appointments; and the person so appointed shall hold office until the expiration of the term of his predecessor.

Sixth. To prescribe by its board of directors, by-laws not inconsistent with law, regulating the manner in which its general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed.

Seventh. To exercise by its board of directors, or duly authorized officers or agents, all powers specifically granted by the provisions of this Act and such incidental powers as shall be necessary to carry on the business of banking within the limitations prescribed by this Act.

Eighth. Upon deposit with the Treasurer of the United States of any bonds of the United States in the manner provided by existing law relating to national banks, to receive from the Secretary of the Treasury circulating notes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds so deposited, such notes to be issued under the same conditions and provisions of law as relate to the issue of circulating notes of national banks secured by bonds of the United States bearing the circulating privilege, except that the issue of such notes shall not be limited to the capital stock of such Federal reserve bank.

[12 USC 341. As amended by act of Feb. 25, 1927 (44 Stat. 1234), which amended subparagraph “Second;” by act of Aug. 23, 1935 (49 Stat. 703), which amended subparagraph “Fifth” effective March 1, 1936; and by act of Sept. 23, 1994 (108 Stat. 2293), which amended subparagraph “Eighth.” As to issuance of Federal Reserve bank notes and redemption of bonds securing such notes, see section 18, and note to the first paragraph of that section.]

5. Authority to Commence Business

But no Federal reserve bank shall transact any business except such as is incidental and necessarily preliminary to its organization until it has been authorized by the Comptroller of the Currency to commence business under the provisions of this Act.

[12 USC 341. Part of original Federal Reserve Act; not amended.]

6. Board of Directors

Every Federal reserve bank shall be conducted under the supervision and control of a board of directors.

[12 USC 301. Part of original Federal Reserve Act; not amended.]

7. Duties of Directors Generally

The board of directors shall perform the duties usually appertaining to the office of directors of banking associations and all such duties as are prescribed by law.

[12 USC 301. Part of original Federal Reserve Act; not amended.]

8. Administration of Affairs; Extension of Credit

Said board of directors shall administer the affairs of said bank fairly and impartially and without discrimination in favor of or against any member bank or banks and may, subject to the provisions of law and the orders of the Board of Governors of the Federal Reserve System, extend to each member bank such discounts, advancements, and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks, the maintenance of sound credit conditions, and the accommodation of commerce, industry, and agriculture. The Board of Governors of the Federal Reserve System may prescribe regulations further defining within the limitations of this Act the conditions under which discounts, advancements, and the accommodations may be extended to member banks. Each Federal reserve bank shall keep itself informed of the general character and amount of the loans and investments of its member banks with a view to ascertaining whether undue use is being made of bank credit for the speculative carrying of or trading in securities, real estate, or commodities, or for any other purpose inconsistent with the maintenance of sound credit conditions; and, in determining whether to grant or refuse advances, rediscounts or other credit accommodations, the Federal reserve bank shall give consideration to such information. The chairman of the Federal reserve bank shall report to the Board of Governors of the Federal Reserve System any such undue use of bank credit by any member bank, together with his recommendation. Whenever, in the judgment of the Board of Governors of the Federal Reserve System, any member bank is making such undue use of bank credit, the Board may, in its discretion, after reasonable notice and an opportunity for a hearing, suspend such bank from the use of the credit facilities of the Federal Reserve System and may terminate such suspension or may renew it from time to time.

[12 USC 301. As amended by act of June 16, 1933 (48 Stat. 163).]

9. Number and Classes of Directors

Such board of directors shall be selected as hereinafter specified and shall consist of nine members, holding office for three years, and divided into three classes, designated as classes A, B, and C.

[12 USC 302. Part of original Federal Reserve Act; not amended.]

10. Class A Directors

Class A shall consist of three members, without discrimination on the basis of race, creed, color, sex, or national origin, who shall be chosen by and be representative of the stockholding banks.

[12 USC 302. As amended by act of Nov. 16, 1977 (91 Stat. 1387).]

11. Class B Directors

Class B shall consist of three members, who shall represent the public and shall be elected without discrimination on the basis of race, creed, color, sex, or national origin, and with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor, and consumers.

[12 USC 302. As amended by act of Nov. 16, 1977 (91 Stat. 1388).]

12. Class C Directors

Class C shall consist of three members who shall be designated by the Board of Governors of the Federal Reserve System. They shall be elected to represent the public, without discrimination on the basis of race, creed, color, sex, or national origin, and with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor and consumers. When the necessary subscriptions to the capital stock have been obtained for the organization of any Federal reserve bank, the Board of Governors of the Federal Reserve System shall appoint the class C directors and shall designate one of such directors as chairman of the board to be selected. Pending the designation of such chairman, the organization committee shall exercise the powers and duties appertaining to the office of chairman in the organization of such Federal reserve bank.

[12 USC 302. As amended by act of Nov. 16, 1977 (91 Stat. 1388).]

13. Senator or Representative Ineligible

No Senator or Representative in Congress shall be a member of the Board of Governors of the Federal Reserve System or an officer or a director of a Federal reserve bank.

[12 USC 303. Part of original Federal Reserve Act; not amended.]

14. Class B Directors as Employees of Banks

No director of class B shall be an officer, director, or employee of any bank.

[12 USC 303. Part of original Federal Reserve Act; not amended.]

15. Class C Directors as Employees or Stockholders of Banks

No director of class C shall be an officer, director, employee, or stockholder of any bank.

[12 USC 303. Part of original Federal Reserve Act; not amended.]

16. Nomination and Election of Class A and B Directors

Directors of class A and class B shall be chosen in the following manner:

The Board of Governors of the Federal Reserve System shall classify the member banks of the district into three general groups or divisions, designating each group by number. Each group shall consist as nearly as may be of banks of similar capitalization. Each member bank shall be permitted to nominate to the chairman of the board of directors of the Federal reserve bank of the district one candidate for director of class A and one candidate for director of class B. The candidates so nominated shall be listed by the chairman, indicating by whom nominated, and a copy of said list shall, within fifteen days after its completion, be furnished by the chairman to each member bank. Each member bank by a resolution of the board or by an amendment to its by-laws shall authorize its president, cashier, or some other officer to cast the vote of the member bank in the elections of class A and class B directors: Provided, That whenever any member banks within the same Federal Reserve district are subsidiaries of the same bank holding company within the meaning of the Bank Holding Company Act of 1956, participation in any such nomination or election by such member banks, including such bank holding company if it is also a member bank, shall be confined to one of such banks, which may be designated for the purpose by such holding company.

[12 USC 304. As amended by acts of Sept. 26, 1918 (40 Stat. 968); June 16, 1933 (48 Stat. 163); July 1, 1966 (80 Stat. 243).]

17. Preferential Ballot

Within fifteen days after receipt of the list of candidates the duly authorized officer of a member bank shall certify to the chairman his first, second, and other choices for director of class A and class B, respectively, upon a preferential ballot upon a form furnished by the chairman of the board of directors of the Federal reserve bank of the district. Each such officer shall make a cross opposite the name of the first, second, and other choices for a director of class A and for a director of class B, but shall not vote more than one choice for any one candidate. No officer or director of a member bank shall be eligible to serve as a class A director unless nominated and elected by banks which are members of the same group as the member bank of which he is an officer or director.

[12 USC 304. As amended by act of Sept. 26, 1918 (40 Stat. 968).]

18. Candidates Serving More Than One Member Bank

Any person who is an officer or director of more than one member bank shall not be eligible for nomination as a class A director except by banks in the same group as the bank having the largest aggregate resources of any of those of which such person is an officer or director.

[12 USC 304. As added by act of Sept. 26, 1918 (40 Stat. 968.)]

19. Counting the Ballots

Any candidate having a majority of all votes cast in the column of first choice shall be declared elected. If no candidate have a majority of all the votes in the first column, then there shall be added together the votes cast by the electors for such candidates in the second column and the votes cast for the several candidates in the first column. The candidate then having a majority of the electors voting and the highest number of combined votes shall be declared elected. If no candidate have a majority of electors voting and the highest number of votes when the first and second choices shall have been added, then the votes cast in the third column for other choices shall be added together in like manner, and the candidate then having the highest number of votes shall be declared elected. An immediate report of election shall be declared.

[12 USC 304. As amended by act of June 26, 1930 (46 Stat. 815).]

20. Class C Directors; Chairman and Federal Reserve Agent; Deputy Chairman

Class C directors shall be appointed by the Board of Governors of the Federal Reserve System. They shall have been for at least two years residents of the district for which they are appointed, one of whom shall be designated by said board as chairman of the board of directors of the Federal reserve bank and as “Federal reserve agent.” He shall be a person of tested banking experience, and in addition to his duties as chairman of the board of directors of the Federal reserve bank he shall be required to maintain, under regulations to be established by the Board of Governors of the Federal Reserve System, a local office of said board on the premises of the Federal reserve bank. He shall make regular reports to the Board of Governors of the Federal Reserve System and shall act as its official representative for the performance of the functions conferred upon it by this Act. He shall receive an annual compensation to be fixed by the Board of Governors of the Federal Reserve System and paid monthly by the Federal reserve bank to which he is designated. One of the directors of class C shall be appointed by the Board of Governors of the Federal Reserve System as deputy chairman to exercise the powers of the chairman of the board when necessary. In case of the absence of the chairman and deputy chairman, the third class C director shall preside at meetings of the board.

[12 USC 305. As amended by act of June 21, 1917 (40 Stat. 232).]

21. Assistant Federal Reserve Agents

Subject to the approval of the Board of Governors of the Federal Reserve System, the Federal reserve agent shall appoint one or more assistants. Such assistants, who shall be persons of tested banking experience, shall assist the Federal reserve agent in the performance of his duties and shall also have power to act in his name and stead during his absence or disability. The Board of Governors of the Federal Reserve System shall require such bonds of the assistant Federal reserve agents as it may deem necessary for the protection of the United States. Assistants to the Federal reserve agent shall receive an annual compensation, to be fixed and paid in the same manner as that of the Federal reserve agent.

[12 USC 306. As added by act of June 21, 1917 (40 Stat. 232).]

22. Compensation and Expenses of Directors, Officers, and Employees

Directors of Federal reserve banks shall receive, in addition to any compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their respective boards, which amounts shall be paid by the respective Federal reserve banks. Any compensation that may be provided by boards of directors of Federal reserve banks for directors, officers or employees shall be subject to the approval of the Board of Governors of the Federal Reserve System.

[12 USC 307. Part of original Federal Reserve Act; not amended.]

23. Meetings of Directors Pending Organization

The Reserve Bank Organization Committee may, in organizing Federal reserve banks, call such meetings of bank directors in the several districts as may be necessary to carry out the purposes of this Act, and may exercise the functions herein conferred upon the chairman of the board of directors of each Federal reserve bank pending the complete organization of such bank.

[Omitted from U.S. Code. Part of original Federal Reserve Act; not amended.]

24. Terms of Directors; Vacancies

At the first meeting of the full board of directors of each Federal reserve bank, it shall be the duty of the directors of classes A, B and C, respectively, to designate one of the members of each class whose term of office shall expire in one year from the first of January nearest to date of such meeting, one whose term of office shall expire at the end of two years from said date, and one whose term of office shall expire at the end of three years from said date. Thereafter every director of a Federal reserve bank chosen as hereinbefore provided shall hold office for a term of three years. Vacancies that may occur in the several classes of directors of Federal reserve banks may be filled in the manner provided for the original selection of such directors, such appointees to hold office for the unexpired terms of their predecessors.

[12 USC 308. Part of original Federal Reserve Act; not amended.]

 

 

B. 

FEDERAL RESERVE ACT

SECTION 5—Stock Issues; Increase and Decrease of Capital

1. Amount of Shares; Increase and Decrease of Capital; Surrender and Cancellation of Stock

The capital stock of each Federal reserve bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members. Shares of the capital stock of Federal reserve banks owned by member banks shall not be transferred or hypothecated. When a member bank increases its capital stock or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Federal reserve bank of its district equal to 6 per centum of the said increase, one-half of said subscription to be paid in the manner hereinbefore provided for original subscription, and one-half subject to call of the Board of Governors of the Federal Reserve System. A bank applying for stock in a Federal reserve bank at any time after the organization thereof must subscribe for an amount of the capital stock of the Federal reserve bank equal to 6 per centum of the paid-up capital stock and surplus of said applicant bank, paying therefor its par value plus one-half of 1 per centum a month from the period of the last dividend. When a member bank reduces its capital stock or surplus it shall surrender a proportionate amount of its holdings in the capital stock of said Federal Reserve bank. Any member bank which holds capital stock of a Federal Reserve bank in excess of the amount required on the basis of 6 per centum of its paid-up capital stock and surplus shall surrender such excess stock. When a member bank voluntarily liquidates it shall surrender all of its holdings of the capital stock of said Federal Reserve bank and be released from its stock subscription not previously called. In any such case the shares surrendered shall be canceled and the member bank shall receive in payment therefor, under regulations to be prescribed by the Board of Governors of the Federal Reserve System, a sum equal to its cash-paid subscriptions on the shares surrendered and one-half of 1 per centum a month from the period of the last dividend, not to exceed the book value thereof, less any liability of such member bank to the Federal Reserve bank.

[12 USC 287. As amended by act of Aug. 23, 1935 (49 Stat. 713

 

 

 

 

 

 

 

 

 

 

Section 04: Quotes from important/significant people, through history, on the federal reserve system, fiat money and the gold standard.

 

 

1.               Nearly 40 years ago, Federal Reserve chairman Alan Greenspan wrote persuasively in favor of a gold monetary standard in an essay entitled Gold and Economic Freedom. In that essay he neatly summarized the fundamental problem with fiat currency in a few short sentences: “The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit…  In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value… Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”

 

A.

 

    “ For our nation to remain free. The individual must have sovereign control over their  life and property.

      The federal reserve creates fiat-money, inflationary by design, un-constitutional as the day is long.

     Americans will never return to actual sovereignty and economic freedom, until this illegal private banking cartel is eliminated.”

 

 

Christopher J. Dardzinski , may 29, 2005. Publisher, FRN Newsletter. Author: “Federal Reserve Facts”

 

 

 

B.

    "The few who understand the system, will either be so interested from it's profits or so dependant
on it's favors, that there will be no opposition from that class." -- Rothschild Brothers of London, 1863

  "Give me control of a nation's money and I care not who makes it's laws" -- Mayer Amschel
Bauer Rothschild

 

C.

     "Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" -- Sen. Barry Goldwater (Rep. AR)

 

D.

    "This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President
[Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst
legislative crime of the ages is perpetrated by this banking and currency bill." --
Charles A. Lindbergh, Sr. , 1913

    "From now on, depressions will be scientifically created." -- Congressman Charles A.
Lindbergh Sr. , 1913

    "The financial system has been turned over to the Federal Reserve Board. That Board asministers the finance system by authority of  a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money" -- Charles A. Lindbergh Sr., 1923

    "The Federal Reserve bank buys government bonds without one penny..." -- Congressman
Wright Patman, Congressional Record, Sept 30, 1941

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it". -- Congressman Louis T. McFadden in 1932 (Rep. Pa)

    "The Federal Reserve banks are one of the most corrupt institutions the world has ever seen.
There is not a man within the sound of my voice who does not know that this nation is run by the
International bankers -- Congressman Louis T. McFadden (Rep. Pa)

    "Some people think the Federal Reserve Banks are the United States government's institutions.
They are not government institutions. They are private credit monopolies which prey upon the people
of the United States for the benefit of themselves and their foreign swindlers" -- Congressional
Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and
Currency (12 years) June 10, 1932

"I have never seen more Senators express discontent with their jobs....I think the major cause is
that, deep down in our hearts, we have been accomplices in doing something terrible and
unforgiveable to our wonderful country. Deep down in our heart, we know that we have given our
children a legacy of bankruptcy. We have defrauded our country to get ourselves elected." -- John
Danforth (R-Mo)

"These 12 corporations together cover the whole country and monopolize and use for private
gain every dollar of the public currency..." -- Mr. Crozier of Cincinnati, before Senate  Banking and
Currency Committee - 1913

"The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the
currency... I do not like to think that any law can be passed that will make it possible to submerge
the gold standard in a flood of irredeemable paper currency." -- Henry Cabot Lodge Sr., 1913

                                           From the Federal Reserves Own Admissions

    "When you or I write a check there must be sufficient funds in out account to cover the check,
but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn.
When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal
Reserve Bank

 "Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just
a piece of paper. Deposits are merely book entries." -- Modern Money Mechanics Workbook,
Federal Reserve Bank of Chicago, 1975

"The Federal Reserve system pays the U.S. Treasury 020.60 per thousand notes --a little over
2 cents each-- without regard to the face value of the note. Federal Reserve Notes, incidently, are
the only type of currency now produced for circulation. They are printed exclusively by the
Treasury's Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau's
full cost of production. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar
denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in
1945." --Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system

"We are completely dependant on the commercial banks. Someone has to borrow every dollar
we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous;
if not, we starve. We are absolutely without a permanent money system.... It is the most important
subject intelligent persons can investigate and reflect upon. It is so important that our present
civilization may collapse unless it becomes widely understood and the defects remedied very soon."
--Robert H. Hamphill, Atlanta Federal Reserve Bank

                                                                           From General Law
"The entire taxing and monetary systems are hereby placed under the U.C.C. (Uniform
Commercial Code)" -- The Federal Tax Lien Act of 1966

"There is a distinction between a 'debt discharged' and a debt 'paid'. When discharged, the debt
still exists though divested of it's charter as a legal obligation during the operation of the discharge, something of the original vitality of the debt continues to exist, which may be transferred, even
though the transferee takes it subject to it's disability incident to the discharge." --Stanek vs. White,
172 Minn.390, 215 N.W. 784

"The Federal Reserve Banks are not federal instrumentalities..." -- Lewis vs. United States
9th Circuit 1992

"The regional Federal Reserve banks are not government agencies. ...but are independent,
privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239
9th Circuit 1982

                                     Past Presidents, not including the Founding Fathers

    "Whoever controls the volume of money in any country is absolute master of all industry and
commerce." -- James A. Garfield, President of the United States

    "A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated
in the hands of a few men. We have come to be one of the worst ruled, one of the most completely
controlled and dominated governments in the world--no longer a government of free opinion, no
longer a government by conviction and vote of the majority, but a government by the opinion and
duress of small groups of dominant men." --President Woodrow Wilson

                    Founding Father's Quotes on Banking
                                (Maybe some repeats from "Founding Father's Quotes" / Information tends to converge)
 
 

                                                                   Thomas Jefferson
     "I believe that banking institutions are more dangerous to our liberties than standing armies.
Already they have raised up a monied aristocracy that has set the government at defiance. The
issuing power (of money) should be taken away from the banks and restored to the people to
whom it properly belongs."--Thomas Jefferson, U.S. President.

                                               Andrew Jackson
    "If Congress has the right [it doesn't] to issue paper money [currency], it was given to them to be
used by...[the government] and not to be delegated to individuals or corporations" -- President
Andrew Jackson, Vetoed Bank Bill of 1836

                                               James Madison
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to
maintain their control over governments by controlling money and it's issuance". -- James Madison

                                                   Misc. Sources
"Banks lend by creating credit. They create the means of payment out of nothing" -- Ralph M.
Hawtrey, Secretary of the British Treasury

    "To expose a 15 Trillion dollar ripoff of the American people by the stockholders of the 1000
largest corporations over the last 100 years will be a tall order of business." -- Buckminster Fuller

    "Every Congressman, every Senator knows precisely what causes inflation...but can't, [won't]
support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him
his job." -- Robert A. Heinlein, Expanded Universe

    "It is well that the people of the nation do not understand our banking and monetary system, for
if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford

    "[Every circulating FRN] represents a one dollar debt to the Federal Reserve system." -- Money
Facts, House Banking and Currency Committee

  "...the increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to
45 billion dollars in 1949 went directly to the private stockholders of the [federal reserve] banks." --
Eustace Mullins

    "As soon as Mr. Roosevelt took office, the Federal Reserve began to buy government securities
at the rate of ten million dollars a week for 10 weeks, and created one hundred million dollars in new
[checkbook] currency, which alleviated the critical famine of money and credit, and the factories
started hiring people again." -- Eustace Mullins

    "Should government refrain from regulation (taxation), the worthlessness of the money becomes
apparent and the fraud can no longer be concealed." -- John Maynard Keynes, "Consequences of
Peace."

    "Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from
     them, but leave them the power to create deposits, and with the flick of the pen they will create enough
     deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will
     disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you
     wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create
     deposits".- SIR JOSIAH STAMP,(President of the Bank of England in the 1920's, the second richest man in Britain):

     "The modern Banking system manufactures money out of nothing. The process
     is perhaps the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate,
     mint and unmint the modern ledger-entry currency".- MAJOR L .L. B. ANGUS:


  "While boasting of our noble deeds were careful to conceal the ugly fact that by an
     iniquitous money system we have nationalized a system of oppression which, though more refined, is not
     less cruel than the old system of chattel slavery. - Horace Greeley

     "People who will not turn a shovel full of dirt on the project (Muscle Shoals Dam)
     nor contribute a pound of material, will collect more money from the United States than will the People
     who supply all the material and do all the work. This is the terrible thing about interest ...But here is the
     point: If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond
     good makes the bill good also. The difference between the bond and the bill is that the bond lets the money
     broker collect twice the amount of the bond and an addi- tional 20%. Whereas the currency, the honest
     sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to
     say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the
     usurer and the other helps the People. If the currency issued by the People were no good, then the bonds
     would be no good, either. It is a terrible situation when the Government, to insure the National Wealth,
     must go in debt and submit to ruinous interest charges at the hands of men who control the fictitious value
     of gold. Interest is the invention of Satan". - THOMAS A. EDISON
    "By this means government may secretly and unobserved, confiscate the wealth of the people,
and not one man in a million will detect the theft."--John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES
OF THE PEACE" (1920).

     "Capital must protect itself in every way...Debts must be collected and loans and mortgages
foreclosed as soon as possible. When through a process of law the common people have lost their
homes, they will be more tractable and more easily governed by the strong arm of the law applied
by the central power of leading financiers. People without homes will not quarrel with their leaders.
This is well known among our principal men now engaged in forming an imperialism of capitalism to
govern the world. By dividing the people we can get them to expend their energies in fighting over
questions of no importance to us except as teachers of the common herd."--
Taken from the Civil Servants' Year Book, "The Organizer" January 1934.

"The Federal Reserve banks, while not part of the government,..." -- United States budget for

1991 and 1992 part 7, page 10

The Money Power! It is the greatest power on earth; and it is arrayed against Labour. No other power
that is or ever was can be named with it...it attacks us through the Press - a monster with a thousand
lying tongues, a beast surpassing in foulness any conceived by the mythology that invented dragons,
were wolves, harpies, ghouls and vampires.
It thunders against us from innumerable platforms and pulpits. The mystic machinery of the churches it
turns into an engine of wrath for our destruction. Yes, so far as we are concerned, the headquarters of
the Money Power is Britain. But the Money Power is not a British institution; it is cosmopolitan.
It is of no nationality, but of all nationalities. It dominates the world. The Money Power has corrupted
the faculties of the human soul, and tampered with the sanity of the human intellect... Editorial from 1907 edition of The Brisbane Worker (Australia)
 

...I am convinced that the agreement [Bretton Woods] will enthrone a world dictatorship of private
finance more complete and terrible than and Hitlerite dream.
It offers no solution of world problems, but quite blatantly sets up controls which will reduce the
smaller nations to vassal states and make every government the mouthpiece and tool of International
Finance.
It will undermine and destroy the democratic institutions of this country - in fact as effectively as ever
the Fascist forces could have done - pervert and paganise our Christian ideals; and will undoubtedly
present a new menace, endangering world peace.
World collaboration of private financial interests can only mean mass unemployment, slavery, misery,
degredation and financial destruction.
Therefore, as freedom loving Australians we should reject this infamous proposal. -- Labor Minister of Australia, Eddie Ward, during the inception of the World Bank and Bretton Woods, he gave this warning.

Section 05. FRN Newsletter’s proposed frame work for a new commodity based standard for U.S. Currency.

 

A.     The United States of America will keep the current system of weights and measurements, for the printed of paper currency and the minting of coin.

B.     The Department of Treasury shall retain the sole ability of printing and minting of U.S, Currency.

C.    In accordance with article one, section 8 of the U.S. Constitution, all U.S. Currency issued, must be privately circulated and 100% funded ( backed), by Gold, Silver or a “basket” commodity.

a.    Gold, by definition: must be commercial quality bars, coins and other forms of easily transferable assets.

b.    “troy” ounce silver coins will be the commercial “standard.” All other silver assets used for the funding (backing) of U.S. currency must be .999 pure.

c.   “basket commodities” : definition: basket commodities will be tangible assets as follows:

              1.property ( land): of at least 1.2 acre in size.  A bank or financial institution must be willing to a draw up a convertible value contract, and property must be insured .

               2. precious stones of “commercial or Market” quality. To include, diamonds, emeralds, rubies, sapphires, opal and pearls.

               3. Platinum of bar or coin form. Must be commercial and/or market quality.

               4. Services and labor.  Valued in hours worked, at commercial market value of labor and or service provided.

 

                  D. Private U.S. currency issuance and guidelines; As provided for in the U.S. Constitution. Article one, section’s 8, 10 and amendment’s 1, 4, 9,10 and 14, of the U.S. Constitution.

1.   The private issuance of U.S. Currency by individual U.S. citizens, Banks, credit unions, Savings and Loans, Federal thrifts, State thrifts  and locally chartered banking institutions.

2.   Privately issued U.S. currency shall meet all the same requirements, as provided for in section 05,  Ca, Cb & Cc.  

3.   All private issuance of U.S. currency shall  have records of notes, certificates, coins, warehouse receipts and other issued currency,   on file at the U.S. printing office and the U.S. mint,  under the supervision of the department of Treasury.