This is an interesting attack by Jefferson on Banks. The quote in the cell immediately below is often used by "Money Reformers" to prove that the Federal Reserve System should be abolished.

Although the abolishment of the Fed might be a good thing, this article and others like it do not, in my opinion, (a) prove that point or (b) give us a good alternative to the Fed. I contend that it it is not a good idea to put the money-creating power in the hands of Congress (as undeniably required by the Constitution) until we, the American People, understand the basic written laws and principles of money and banking.

In my opinion, the information below and other articles like it do more harm than good because (a) the writers do not show that they understand money and banking, (b) they make everything about money and banking seem way more complicated than it is, (c) they spread lies and half truths -- like the distortions of Jefferson's "prophecy" which starts 4 cells down -- and (d) they offer no complete plan to fix our banking and money system. Direct control of money and banking by Congress under laws written by Congress could easily lead to a financial and economic disaster if those laws do not make sense.

For instance -- I have never personally heard a single Congressperson suggest that The United States should never borrow money -- and should, instead, create whatever money we need as a nation. We have said repeatedly -- If the United States does not, as a sovereign nation have the right to create money -- who does? The fact that we, as a nation, borrow money is presently costing us about $1 Billion Dollars / day in interest payments is, in our opinion, almost unbelievable.

A banking system should be a very simple thing -- there are only a handful of simple things that have to be managed properly. See our "Silver Bullet Plan" for a starting point

Note the following quotation: "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

This quote has been traveling around the internet for some time. It probably is not accurate.
See <<http://wiki.monticello.org/mediawiki/index.php/Private_Banks_(Quotation)>> for an analysis that seems authoritative.

From Kamron << http://www.kamron.com/economics/Economics.htm >>
/ Contributed by:mikeb@mlode.com who can be reached at money-ethics@uwsa.com / Date: Sun, 14 Jan 96 15:53 PST

Jefferson's Prophecy

Thomas Jefferson once said: “If the American people ever allow private banks to control the issue of currency..............the banks........will deprive the people of all property, until their children will wake up homeless, on the continent, their fathers conquered..........”

It turns out that this quotation is probably not from Jefferson (MRC -- 2/7/09) -- see link in third cell above -- before the red type.

THEN:
The Makers of the Constitution foresaw the need of a national capital. The city of Washington, the District of Columbia, became the capital in 1800. There the work of the government is centered. Congress is given complete charge and control over it. Its residents have no vote. They, alone, of all the people in the United States, must obey laws, with the making of which, they have had nothing to do. They elect no representative to Congress; neither do they elect any city or district officer. The money, which you use in all your business affairs, is made according to laws passed by Congress. Congress controls the printing of paper money, as well as, the coining of gold and silver money and the smaller coins of nickel and copper.

[ of historical importance -- but not germane to the question at hand ]

United States money, in the form of bills, is usually accepted, as equal to gold, in any civilized country. That is because the government keeps enough gold in the United States treasury, and in the banks, to meet all demands on it, for redeeming the paper money.

[ this may all be true or not -- but in any case it is not on germane to the main question]

Congress alone may have money coined. No state may do so.

It is interesting to read the printing on several different kinds of bills............. a “green-back “ or United States note, a federal reserve note, a gold certificate, and a national bank note, perhaps, given by a bank in your own city. [ as above]
One of these guarantees that the holder will be given the amount of the bill, in gold coin, upon demand; and in fact, gold can be obtained for any of them.

With the power of Congress, to have money made, goes its power to punish those who make false money. To make any coins or bills or stamps, in imitation of those, of the United States, is counterfeiting. Even if it cost a gang of counterfeiters twenty five cents to make a coin , to pass for a dime, this would be counterfeiting and severely punishable in the United States courts.

“THE CONSTITUTION OF OUR COUNTRY”

By Frank A. Rexford / SUPERVISING CIVICS IN THE SCHOOLS OF THE CITY OF NEW YORK AND Clara L. Carson,CHAIRMAN OF THE CIVICS DEPARTMENT OF WADLEIGH HIGH SCHOOL, CITY OF NEW YORK

[ All of this has historical significance -- but it might be counterproductive to dicuss here -- because it is not directly focused on the main question ]

Copyright 1924, by AMERICAN BOOK COMPANY

NOW:
On December 23, 1913, the U.S. Congress passed the Federal Reserve Act, placing control of this nation’s money into the hands of a private corporation. In 1920, the 66th Congress passed the Independent Treasury Act.

In 1921, the united States abolished the U.S. Treasury.

[ this may all be true or not -- but in any case it is not on germane to the main question ]

This allowed all United States money in the private Federal Reserve Banks to be kept separate from Federal Reserve Notes. To wit: “That, if any moneys or bullion, constituting part of the trust funds or other special funds heretofore required by law to be kept in Treasury offices, shall be deposited with any Federal reserve bank, then such moneys or bullion shall by such bank be kept separate and distinct from the assets, funds, and securities of the Federal Reserve Bank and be held in the joint custody of the Federal Reserve Agent and the Federal Reserve Bank;”

From 1913, until 1933, under the authority of the U.S. Congress, a private corporation held control of this nation’s gold.
The U.S. paid interest on the use of their own gold, with more and more of its gold, ultimately ending in bankruptcy.
Inevitably, the bankers foreclosed.
On March 9, 1933, the U.S. declared bankruptcy, as expressed in President Franklin Delano Roosevelt’s Executive Orders 6073, 6102, 6111, and 6260.

[ as above ]

President Roosevelt declared a National Emergency that made it unlawful for any citizen of the United States to own gold. Our bankrupt nation went into receivership and reorganized in favor of it’s creditor and new owners, a private corporation of international bankers. (Since 1933, what is called the “United States Government” is a privately owned corporation of the Federal Reserve/IMF.)

[ as above ]

Without a word of truth to the American people, all our good faith and credit was pledged as the surety for the debt by the same Congress who created the mechanism that allowed it to occur.

[ The next paragraph is not completely understandable to this writer. (because of the Latin terms) For the time being, we will take it to mean that Congress may not transfer the powers given it by the Constitution. ]

Those exercising the offices of the several States, in equal measure, knew such “De Facto Transitions” were unlawful and unauthorized, but sanctioned, implemented, and enforced the complete debauchment and the resulting “governmental, social, industrial economic change” in the “De Jure” States, and in United States of America.

Public Law 94-564 Legislative History, pg. 5936, 594531 U.S.C.A. 31431 U.S.C.A. 5112C.R.S. 11-61-101C.R.S. 39-22-103.5

[ the above reference should be consulted ]

They were and are now under the delusion that they can do, both, directly and indirectly, what they were absolutely prohibited from doing.
Federalist Papers No. 44 Craig vs. Missouri, 4 Peters 903

[ If the Federalist Papers carry legal significance, and the previous sentence is true, that might be enough to show that the creation of the Fed was unconstitutional ]

On June 5, 1933, Congress passed HJR-192. House Joint Resolution 192 was passed to suspend the gold standard and abrogate the gold clause in the national constitution. Since then no one in America has been able to lawfully pay a debt. This resolution declared: ........Whereas the holding or dealing in gold affect the PUBLIC INTEREST, and are therefore subject to proper regulation and restriction: and whereas the existing emergency has disclosed that provisions of obligations which purport to give the obligee a RIGHT TO REQUIRE PAYMENT in gold or a particular kind of coin or currency....ARE INCONSISTENT WITH THE DECLARED POLICY OF CONGRESS IN THE PAYMENT OF DEBTS......PAYMENT in gold or a particular kind of coin or currency, or in an amount in money of the united States measured thereby, IS DECLARED TO BE AGAINST PUBLIC POLICY: ...............AND...........EVERY OBLIGATION, HERETOFORE OR HEREAFTER INCURRED, SHALL BE DISCHARGED upon payment, dollar for dollar, in any coin or currency which, at the time of payment, is legal tender for public and private debts....

All coins and currencies of the United States (including Federal Reserve Notes and circulating notes of Federal Reserve banks and national banking associations) heretofore, or hereafter, coined or issued, SHALL BE LEGAL TENDER for all debts, public and private, public charges, taxes, duties, and dues,....
House Joint Resolution 192, 73d Congress, Sess.I, Ch. 48, June 5, 1933 (Public Law No. 10 ).

Note: “payment of debt” is now against Congressional and “public policy” and henceforth, “Every obligation...Shall be discharged.”

As a result of HJR-192, and from that day forward (June 5, 1933), no one in this nation has been able to lawfully pay a debt or lawfully own anything. The only thing one can do, is tender in transfer of debts, with the debt being perpetual. The suspension of the gold standard, and prohibition against paying debts, removed the substance for our common law to operate on, and created a void as far as the law is concerned. This substance was replaced with a “PUBLIC NATIONAL CREDIT SYSTEM” where debt is “LEGAL TENDER” money.
The Federal Reserve calls it “monetized debt.”

HJR-192 was implemented immediately. The day after President Roosevelt signed the resolution, the treasury offered the public new government securities, minus the traditional “payable in gold” clause.

[ this may all be true or not -- but in any case it is not germane to the main question ]

The Judiciary branch of government has the power to correct this fraud upon the people.

[ Yes, any fraud can be corrected by the courts ]

Yet, On May 23, 1933, Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank system, the Comptroller of the Currency and the Secretary of the United States Treasury for criminal acts. (A)

The petition for Articles of Impeachment was, thereafter, referred to the Judiciary Committee, and has yet to be acted upon.
In 1965 Congress passed the “Coinage Act of 1965” completely debasing the Constitutional Coin; (gold & silver, i.e. Dollar).
U.S. vs. Marigold, 50 U.S. 560, 13 L. Ed. 257. [ this may all be true or not -- but in any case it is not germane to the main question ]

At the signing of the Coinage Act on July 23, 1965, Lyndon B. Johnson stated, in his Press Release that: “When I have signed this bill before me, we will have made the first fundamental change in our coinage in 173 years. The Coinage Act of 1965 supercedes the Act of 1792. And that Act had the title: An Act Establishing a Mint and Regulating the Coinage of the United States . . .”
“Now I will sign this bill to make the first change in our coinage system, since the 18th Century. [ as above]
To those members of Congress, who are here on this historic occasion, I want to assure you that in making this change from the 18th Century we have no idea of returning to it.” [ as above ]

In 1967, in a brazenly unconstitutional act, Congress repudiated its obligation to redeem silver certificates in silver coin or bullion. [ as above ]
In the book, “Pieces of Eight,” Dr. Edwin Vieira writes: On June 24, 1968 the United States, finally, abandoned the silver standard applicable since Queen Anne’s proclamation of 1704, and embraced a system of fiat bills of credit (e.g. alleged currency) based on irredeemable, legal tender, Federal Reserve Notes and debased, legal tender, clad coinage, never to be declared as lawful money of the United States.
[ as above ]

Through misguided trust, our duly elected sworn public officials took our lawful currency and changed it to unconstitutional bills of credit (irredeemable Federal Reserve Notes), which continues to circulate only because of the public’s continuing, misplaced confidence in these notes. The word “legal tender” on today’s notes are not a magic incantation; they impart NO intrinsic value to money, nor do they entitle the bearer to exchange these notes for lawful specie. They are a throwback to feudal days when the sovereign could, and did, issue a proclamation declaring what was to be used as “money” whenever he wanted to debase the circulating medium. [ as above ]

INSCRIPTIONS ON FEDERAL RESERVE NOTES [ as above ]

1913 .............TO............ 1934 / “Redeemable in Gold on demand at the United States Treasury or in Lawful money, at any Federal Reserve Bank.” “Will pay to the bearer on demand one dollar.”

1934 ..............TO.............. 1968 / “This note is legal tender for all debts public and private and is redeemable in lawful money at the United states Treasury, or any Federal Reserve bank.” “Will pay to the bearer on demand one dollar.”

1968 ...............TO............... 1995 / “This note is legal tender for all debts, public and private”

THERE IS NO PROMISE TO PAY, NOR IS A NOTE A DOLLAR !!
US currency (notes, bills of credit) was always to be redeemable in United States specie currency; first issued 76 years after the ratification of the U.S. Constitution, which only mandates gold and silver coin as currency in substance, not form. [ as above ]

Early Federal Reserve Notes were redeemable, but over the years, the wording on these notes regarding the promise and obligation has been gradually changed untill 1968. Since that time our “monetized debt” money offers NO OBLIGATION AND THEY PROMISE NOTHING!!!!
[ as above ]

Since 1913, there has been more than just a gradual and accelerating erosion of the alleged dollar’s purchasing power in our society. For the privilege of using these notes of private corporate debt as our “money”, we were absolved from the responsibility of paying our debts at law.
[ as above ]

We were placed in the position of having the “benefit” of limited liability for payment of debt under the jurisdiction of Vice Admiralty/Maritime law (the law merchant/commercial jurisdiction, UCC) in all controversies. [ as above ]

For the privilege of using monetized debt, we also lost the rights secured to us by our Organic Constitutions, both National and State.
[ as above ]

Under the law, merchant, you have no rights. We are now using as “lawful money”, worthless notes of private corporate debt, backed by our own credit that we can’t own, and for this “privilege” we are held to compelled performance under the statutes....... [ as above ]

To make it simple, as long as this nation’s lawful currency is notes of private corporate debt, ( bills of credit...money backed by no substance) it will remain impossible to ever repay a debt, thereby keeping us and our posterity in debt into perpetuity. [ as above ]
Has Thomas Jefferson’s prophecy come to pass?

Under the contrived bankruptcy we have lost the right to challenge the constitutionally of the statutes........ We have lost our law.......... We can own nothing.......... We have become corporate slaves on the land we once owned..........And ................our children are waking up homeless on the continent their forefathers conquered. [ as above ]

Copyright 1995 Joyce Rosenwald
“Fiat justitia ruat coelum........” When the skies begin to fall, Justice removes the blindfold from her eyes and tilts the scales.