CHAPTER 5: THE COURTS RULE
This is what the courts had to say about the Federal Reserve System. The following are excerpts from the case of First National Bank vs. Jerome Daly, Presiding Justice of the Peace Martin V. Mahoney ruled:
"The emission of Bills of Credit (by banks) upon their Books, without consideration and the issuance of Federal Reserve Notes without consideration to circulate as legal tender for the payment of debts is not permitted expressly or implied by the Constitution of the United States. Paper, whether money or not, is always illegal unless it is fully representative of some material commodity . . .
The issues in this case were simple. There was no material dispute on the facts for the Jury to resolve.
Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, which are for all practical purposes, because of their interlocking activity and practices, and both being Banking Institutions Incorporated under the laws of the United States, are in law to be treated as one and the same bank, did create the entire $14,000 in money or credit upon its own books by bookkeeping entry. That this was the Consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created It. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note . . .
It has been determined, independent of Acts of Congress, that sailing under the license of an enemy is illegal. The emission of Bills of Credit upon books of these private Corporations, for the purposes of private gain is not warranted by the Constitution of the United States and is unlawful . . .
NOTICE OF REFUSAL TO ALLOW APPEAL
To: Hugo L. Hentges, Clerk of the District Court
You will please take Notice that the undersigned Justice of the Peace, Martin V. Mahoney, hereby, pursuant to law, refuses to allow the Appeal in the above entitled action, and refuses to make an entry of such allowance in the undersigned's Docket. The undersigned also refuses to file in the office of the clerk of the District Court in and for Scott County, Minnesota, a transcript of all entries made in my Docket, together with all process and other papers relating to the action and filed with me as Justice of the Peace.
The undersigned concludes and determines that M.S.A. 532.38 was not complied with within 10 days after entry of Judgment in my Justice of the Peace Court. Subdivision 4 thereof requires that $2.00 shall be paid within 10 days to the clerk of the District Court, for the use of the Justice before whom the cause was tried.
Two so-called "One Dollar" Federal Reserve Notes were deposited with the Clerk of the District Court to be tendered to me.
These Federal Reserve Notes are not lawful money within the contemplation of the Constitution of the United States and are null and void. Further the Notes on their face are not redeemable in Gold or Silver Coin nor there a fund set aside anywhere for the redemption of said Notes . . .
I am bound by oath to support the Constitution of the United States and laws passed pursuant thereto and the Constitution and Laws of Minnesota not in conflict therewith. This is an important Case to both parties and involves issues, apparently, not previously decided before. It is also important to the public. The Clerk of the Court is an officer of the Judicial Branch of the State of Minnesota. His act is the act of the State. U.S. Constitution Article 1 Section 10 provides "No State Shall make anything but Gold and Silver Coin a Tender in Payment of Debts." The tender of the two Federal Reserve Notes runs counter to the fundamental Law of the land.
The Federal Reserve and National Banks exercise an exclusive monopoly and privilege of creating credit and issuing their notes at the expense of the public, which does not receive a fair equivalent. This scheme is obliquely designed for the benefit of an idle monopoly to rob, blackmail and oppress the producers of wealth. . . It has defied the lawfully Constituted Government . . .
Slavery and all its incidents, including Peonage, thralldom and debt created by fraud is universally prohibited in the United States. This case represents but another form of Slavery by the Bankers. Their position is not supported by the Constitution. The people [jury] have spoken their will in terms which cannot be misunderstood. It is indispensable to the preservation of the Union and independence and liberties of the people that this Court adhere only to mandates of the Constitution and administer it as written . . .
FINDINGS OF FACT, CONCLUSIONS OF LAW
JUDGMENT AND DETERMINATION
1. That the Federal Reserve Banking Corporation is a United States Corporation with twelve banks throughout the United States. That the First National Bank of Montgomery is also a United States Corporation, incorporated and existing under the laws of the United States and is a member of the Federal Reserve System.
2. That because of the interlocking control activities, transactions and practices, the Federal Reserve Banks and the National Banks are for all practical purposes, in the law, one and the same.
3. As is evidenced from the book "The Federal Reserve System; Its purpose and Function", put out by the Board of Governors of the Federal Reserve System and other evidence adduced herein, the Federal Reserve Banks and National Banks create money and credit upon their books and exercise the ultimate of expanding and reducing the supply of money or credit in these United States.
This creation of money or credit upon the Books of the Banks constitutes the creation of fiat money by bookkeeping entry.
Ninety percent or more of the credit never leaves the books of the Banks so they need produce no specie as backing.
When the Federal Reserve Banks and National Banks acquire United States Bonds and Securities, State Bonds and Securities, State Subdivision Bonds and Securities, mortgages on private Real property and mortgages on private personal property, the said banks create the money and credit upon their books by bookkeeping entry. The first time that the money comes into existence is when they create it. The banks create it out of nothing. No substantial fund of gold or silver is back of it, or any fund at all . . .
The Federal Reserve Notes in question in this case are unlawful and void upon the following grounds:
A. Said Notes are fiat money, not redeemable in gold or silver coin upon their face, not backed by gold or silver, and the notes are in want of some real or substantial fund being provided for their payment in redemption.
B. The Notes are obviously not gold or silver Coin.
C. The sole consideration paid for the One Dollar Federal Reserve Notes is in the neighborhood of nine-tenths of one cent, and therefore, there is no lawful consideration behind said Notes.
D. That said Notes do not conform to Title 12, United States Code, Sections 411 and 418. Title 31 USC, Section 462, insofar as it attempts to make Federal Reserve Notes and circulating Notes of the Federal Reserve Banks and National Banking Associations a legal tender for all debts, public and private, it is unconstitutional and void, being contrary to Article 1, Section 10, of the Constitution of the United States, which prohibits any State from making anything but gold and silver coin a tender, or impairing the obligation of contracts.
Now, therefore, by the virtue of the authority vested in me pursuant to the Declaration of Independence, the Northwest Ordinance of 1787, the Constitution of the United States of America and the Constitution of the State of Minnesota;
It is hereby DETERMINED, ORDERED AND ADJUDGED, that the Appeals Statutes of the State of Minnesota for Civil Appeals from this Court to the District Court is not complied with within 10 days after entry of Judgment. Therefore the Appeal is not allowed by this Court and my Docket so shows."
BY THE COURT
Martin V. Mahoney
Justice of the Peace
Credit River Township
Scott County, Minnesota
The Sheriff's sale of Mr. Daly's home was declared null and void. The court ordered the Sheriff to return the home to Mr. Daly, or he, the judge would have the Citizens of the County carry out the order. This landmark case has been kept from the eyes of the sleeping nation. Their motto is, "What the people don't know can't hurt us. Let us keep it that way."
Regarding the power to delegate the control of our money supply to a private corporation can be found in 16 Am Jur 2d, Section 347, which states: "The rule has become fixed that the legislature may not delegate legislative functions to private persons or groups, or to private corporations or a group of private corporations." Maybe someone needs to read the law to Congress because the have delegated the legislative function of controlling or money supply to a "private" corporation.
The following court cases support the fact that the banks are fraudulently making loans:
"A national bank has no power to lend its credit." (Farmers & Miners Bank vs. Bluefield National Bank, 11 F2d 83, 271 US 669)
"Banking Associations from the very nature of their business are prohibited from lending credit." (St. Louis Savings Bank vs. Parmalee 95 U. S. 557)
"National Banks may lend their money but not their credit." (Norton Grocery vs. Peoples National Bank, 144 S.E. 501, 151 Va. 195)
"Neither, as to include in its powers not incidental to them, is it a part of a bank's business to lend its credit. If a bank could lend its credit as well as its money, it might, if it received compensation and was not careful to put its name only to solid paper, make a great deal more than any lawful interest on its money would amount to. If not careful, the power would be the mother of panics . . . Indeed, lending credit is the exact opposite of lending money, which is the real business of banking, for while the latter creates a liability in favor of the bank, the former gives rise to a liability of the bank to another." (American Express Co. vs. Citizens State Bank, 194 NW 429)
"A bank can lend its money but not its credit." (First National Bank of Tallapoosa vs. Monroe, 135 Ga 614, 69 SE 1123, 32 LRA)
"It is not within the statutory powers for a national bank, even though solvent, to lend its credit . . ." (First Intermediate Credit Bank vs. Herisson, 33 F 2nd 841)
"A national bank, under federal law being limited in its powers and capacity, cannot lend its credit." (Howard & Foster Co. vs. Citizens National Bank of Union, 133 SC 202, 130 SE 758)
"Banking corporations cannot lend credit." (First National Bank of Amarillo vs. Slaton Independent School District, Tex Civ App 1933, 58 SW 2d 870)
"There is no doubt but what the law is that a national bank cannot lend its credit or become an accommodation endorser." (National Bank of Commerce vs. Atkinson, 55 Fed Rep 465)
"Nowhere is the express authority granted to the corporation to lend its credit." (Gardilner Trust vs. Augusta Trust, 134 Me 191; 291 US 245)
"A national bank has no authority to lend its credit." (Johnston vs. Charlottesville National Bank, C.C. Va. 1879, Fed Cas. 7425)
"A contract made by a corporation beyond the scope of its power corporate powers is unlawful and void." (McCormick vs. Market National Bank, 165 U.S. 538)
"A national bank . . . cannot lend its credit to another by becoming surety, endorser, or guarantor for him, such an act is ultra vires . . ." (Merchants' Bank vs. Baird, 160 F 642)
Despite the above court cases, Ralph Gelder, Superintendent, Department of Banks and Banking, State of Maine, said on Feb. 20, 1974, "A commercial bank is able to make a loan by simply creating a new demand deposit (so called checkbook money) through bookkeeping entry." This is in total contradiction to what the courts have said. Yet, that is exactly how the banksters create the money to loan to its customers or to buy government bonds.
"Federal Reserve bank credit does not consist of funds that the Reserve authorities get somewhere in order to lend, but constitute funds that they are empowered to create." (Federal Reserve Bank: Its Purposes and Functions, 1939 Edition)
"Act is ultra vires when corporation is without authority to perform it under any circumstance or for any purpose. By doctrine of ultra vires a contract made by a corporation beyond the scope of its corporate powers is unlawful." (Community Fed S&L vs. Fields, 128 F 2nd 705)
"A bank is not the holder in due course upon merely crediting the depositors account." (Bankers Trust vs. Nagler 229, NYS 2nd 142)
"A holder who does not give value cannot qualify as a holder in due course." (Uniform Commercial Code 3-303.1)
"Checks, drafts, money orders and bank notes [Federal Reserve Notes] are not lawful money of the United States." (State vs. Nealan, 48 Ore. 155)
"When an instrument [notes] lacks an unconditional promise to pay a sum certain at a fixed and determined time, it is only an acknowledgement of the debt and statutory presumptions like the presence of a valuable consideration, are not applicable." (Bader vs. Williams, 61 A 2d 637)
"A note is not negotiable unless it is payable at a time in the future." (Rhodes vs. Schofield, 82 So. 2d 236)
In a letter dated May 7, 1981, Michael Hodge, Assistant Attorney General, State of Michigan wrote, "Please be advised the United States Constitution Article I, Section 10 is binding on the States."
This is confirmed in Carol Zurn vs. Val Bjornson, Treasurer, State of Minnesota. Whereas, the plaintiff sued the defendant for payment in gold or silver Coin on a check drawn on the Treasury of the State of Minnesota. Justice of the Peace, Bill Drexler handed down this ruling: "Plaintiff is entitled to receive payment in gold and silver Coin in satisfaction of said check . . . Pursuant to LAW ONE DOLLAR is equal to 23.22 grains of pure gold or 371.25 grains of pure silver . . . Pursuant to Law neither this court nor the Treasurer of the State of Minnesota, the Defendant herein, can make any Thing but gold and silver Coin a Tender in payment of debts."
Justice of the Peace, Bill Drexler took his decision one step farther, he declared, "That Title 12, Sections 95a and Title 31, Section 443 making it a criminal offense to buy and sell gold and providing for penalties and confiscation of gold by reason of the possession thereof is unconstitutional and void."
In Bronson vs. Rhodes, the court ruled, "Lawful money of the United States could only be gold and silver, or that which by law is made its equivalent, so as to be exchangeable therefore at par and on demand." (74 U.S. 229, 247, 19 L. Ed. 141)
According to 12 USCS, Section 411, ". . . They [Federal Reserve Notes] shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, D.C., or at any Federal Reserve bank." If Federal Reserve Notes shall be redeemed in `lawful' money, what kind of money would be unlawful?
"If money does not have the value it purports to have on its face, it cannot be legal tender." (Craig vs. Missouri, 29 U.S. 410) Try to redeem your legal tender Federal Reserve Notes for Gold or Silver. Good Luck!
"The United States is a national state which has a central banking system, the Federal Reserve System, and whose currency, for domestic purposes, is not convertible into any commodity." Beardsley Ruml, Chairman of the Federal Reserve Bank of New York, 1946
The Honorable Larry Moritz, Municipal Judge, Spearville, Kansas, declared in 1981, "If Congress won't keep its part of the Constitutional bargain and coin money of gold and silver like Article I, Section 8, Clause 5 commands, there's no way my court can require anyone to pay fines. I am not here to protect certain people's investments, I am here to carry out the mandate of the U.S. and the Kansas Constitutions." Thank God we have some righteous judges still left in our Nation.
Bruce A. Budlong of the Department of the Treasury said, "The same monetary system that was established on April 2, 1792, is in effect today."
Section 20 of the 1792 Coinage Act, 1 Stat. 246 stipulates: ". . . That the money of the account of the United States shall be expressed in dollars . . . and that all accounts in the public offices and all proceedings in the courts of the United States shall be kept and in conformity to this regulation." This section of the Act has never been repealed and is still in effect today.
Section 314 of USCS 31 states the standard unit value as "the dollar consisting of 24 8/10 grains of gold, nine tenths fine and/or 371.25 grains of .999 fine silver as established shall be the standard unit of value, and all forms of money issued and coined by the United States shall be maintained at a parity of the value with this standard, and it shall be the duty of the Secretary of the Treasury to maintain such parity."
The Section 19 of the 1792 Coinage Act states, "That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of fine gold or silver therein contained, or shall be less weight or value than the same out to be pursuant to the direction of this act, through the default or with connivance of any officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, if any of the said officers or persons shall embezzle any of the metals . . . every such officer or person who shall commit any or either of the said offenses, shall be deemed guilty of felony, and shall suffer DEATH."
Reach into your pocket, look at the money. The silver and gold have been embezzled by the Federal Reserve! The law did not say, 25 years to life imprisonment, it says "DEATH"! They have been charged with the crime and must be sentenced accordingly.
Pursuant to 12 United States Code, (hereafter, U.S.C.) Sections 341, Paragraph 8: 12 USC 104, 109, 123, and 110. Federal Reserve Notes must express ". . . upon their face that they are secured by United States Bonds deposited with the Treasurer of the United States, by the written or engraved signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the written or engraved signatures of the president or vice president and cashier; and other such statements and in such form as the Sec. of Treasury directs."
Do the Federal Reserve Notes in your pocket meet these requirements? Just don't sit there, take one out and see for yourself.
18 USC 334 makes it a "FELONY" to deliver and put in circulation any Federal Reserve Notes in violation of the above statues in Title 12. See 18 USC Sections 1, (Offenses classified); Sec. 2. (Principals); Sec. 3. (Accessory after the fact); Sec. 4. (Misprision of felony); Sec. 371. (Conspiracy); Sec. 1341. (Frauds and swindles); Sec. 1343 (Fraud by wire;) and most of all 18 USC Sec. 1960 to 1965. (Racketeer Influenced and Corrupt Organizations) Aren't all banks guilty of the above?
* Counterfeiter - "One who unlawfully makes base coin in imitation of the true metal, or forges false currency, or any instrument of writing bearing a likeness and similarity to that which is lawful and genuine, with an intention of deceiving and imposing another."
* Counterfeit coin - "Coin not genuine, but resembling or apparently intended to resemble or pass for genuine coin, including genuine coin prepared or altered so as to resemble or pass for a coin of a higher denomination."
* Lawful Money - "Money which is legal tender in payments of debt. See Legal Tender."
* Black's Law Dictionary, 6th Edition
Section 5103 of 31 USC, defines legal tender as, "United States coins and currency (including Federal reserve notes and circulating notes of Federal Reserve Banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold and silver coins are not tender for debts."
Isn't it amazing how they have changed the definition of lawful money (gold and silver), to mean legal plunder (tender)?
The thieves have gone to far with their TREASONOUS laws. They are forcing us to use their counterfeit "DEBT" Notes and outlawing foreign gold and silver coins for payment of debt. What would you rather have, an ounce of foreign gold or their "FIAT" money? The simple law of math proves that we cannot finance ourselves out of debt by going into debt. Yet, our political paid "TRAITORS" (leaders) keep playing right into their hands. It is time the ALMIGHTY MASS puts a stop to this MADNESS!
Lincoln proclaimed, "To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical . . . The government should create, issue and circulate all the money and currency, needed to satisfy the spending power of the government and the buying power of the consumer. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the governments greatest opportunity . . . The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity . . . We gave the people of this Republic the greatest blessing they ever had - their own paper money to pay their own debts . . . Democracy will rise superior to the money power."
The MONEY-CHANGERS realized the loss they would incur if, their paper-money was replaced with "government paper-money". As a result, this is what they had to say about President Lincoln's issuance of a national paper currency, sometimes referred to as "Greenbacks." "If that mischievous financial policy, which had its origins in the North America Republic during the late war [Civil War] in that country, should become indurated down to a fixture, then that government will furnish its own paper money without cost. It will have ALL the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. That government must be destroyed or it will destroy every monarchy on the globe." (London Times 1863)
Bismark, Chancellor of Germany, made the following statement regarding the death of Lincoln: "The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots, and [the MONEY-CHANGERS] went anew to grab the riches of the world. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America, and use it to systematically corrupt modern civilization. They will not hesitate to plunge the whole Christendom into wars and chaos in order that the earth should become their inheritance."
If you think our Constitution is antiquated, and Gold and Silver will not work, then how do you explain the Island of Guernsey, located of the English Channel? Guernsey has followed our constitutional taxing system along with our constitutional honest money - no interest banking procedures, backed by Gold and Silver for over 175 years. Today, Guernsey enjoys a high standard of living, no unemployment, a modern infrastructure and no government debt. Guernsey is proof that it can and does work.
WAKE-UP AMERICA and take a closer look at what happened to some of those out spoken critics of the Federal Reserve. Lincoln was assassinated by Booth! Kennedy was (supposedly) assassinated by Oswald! Garfield was assassinated by Guiteau! Mckinley was assassinated by Czolgosz! After 3 attempts on his life, McFadden was found dead in his ransacked office! His autopsy shows he died of natural causes. Assassination attempts were made on the lives of Presidents Jackson and Reagan! Lindbergh's grandson was kidnaped! Justice of the Peace Mahoney died mysteriously within months after the bank lost its case and that historical decision was handed down. The defendant, Jerome Daly, an Attorney, was later disbarred from the Bar Association and became a political prisoner. Justice of the Peace Bill Drexler was also disbarred and he too became a political prisoner. Will this ADVERSARY stop at nothing? Or, is it just a coincidence that those who were strong critics of the MONEY-CHANGERS and supporters of the Constitution were targeted for assassination or became political prisoners?
"How long will they kill our prophets, while we stand aside and look. Some say it's just a part of it, we've got to fulfill the book." Bob Marley (another victim of assassination.)
They have been charged with the crimes against our nation. If our elected representatives will not do anything to stop this atrocity, then We The People must take action.
Or are we going to sit around like the 3 monkeys, "Hearing no evil! Seeing no evil! Not speaking of the evil!" If so, evil will prevail. If, you do not want to do something about these truths, then listen to the politicians. They will tell you all the lies you want to hear. Their rhetoric will keep you dreaming the American dream. What action you, as a citizen can take will be discussed later.