SOURCE:  The Great IRS Hoax book, Section 6.2.2.

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Money Background

Genuine money must have the following three qualities:

1.        It must be a storehouse of intrinsic value.

2.        It must be a universal, portable medium of exchange.

3.        It must have a common unit of account.

4.        It must be immune to attempts by the government to lower its valueby printing more and thereby use inflationary forces to “tax” all money in circulation.  This ensures what we called earlier in section 2.8.4.2 “separation of money and state”. 

Black’s Law Dictionary, 5^th Edition, defines “money” as: 

“In its usual and ordinary explanation it means coins and paper currency used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt or other personal or real estate.”

Gold and silver coins and the previous gold and silver certificates were a storehouse of “intrinsic” value.  They actually increased in value with inflation.  Therefore, they were a hedge against inflation.

LAWFUL MONEY is defined in Black’s Law Dictionary, 2nd Ed., as: 

“Money which is legal tender in payment of debts; e.g. gold and silver coined at the mint.”

The responsibility of coining gold and silver money was ceded to Congress in our Constitution; Article I; §8, Clause 5:

“The Congress shall have the power…To coin money and regulate the value thereof…” 

Because the Constitution is the Supreme Law of the Land, nothing but gold or silver coin is “lawful” money for the 50 union states.  Because of heaviness of gold and silver coins, “Gold and Silver Certificates” were created by the Department of Treasury of the united States.  These certificates were representative of actual gold and silver coins which were owned by the People holding the Certificates and maintained in the vaults of the banks and Fort Knox.  These Gold and Silver Certificates were convertible to gold and silver coin, “PAYABLE ON DEMAND.”  It is important to understand that this gold and silver, represented by the Certificates, belonged to the People or Certificate Holders and NOT the banks or the government.

At one time, reference to the laws that made money “lawful” were printed directly on the face of our currency.  The laws printed on the bills were enacted on March 14, 1900 and December 24, 1919.

The above law has NEVER been and CANNOT be repealed, as it is applicable to the 50 sovereign states, without amending the Constitution.  Note that the Act, says “gold certificates payable to the bearer on demand “shall be and are.”  This means not only when the Act was passed, but also into the future!

§2 of the Act, repealing Acts or parts of Acts inconsistent with the above Public Law 103, would, therefore, not only be applicable to past Acts which were inconsistent with its intent but also future inconsistent Acts.  It also says to be legal tender, the certificates MUST be payable to bearer on demand.  Our current ‘Federal Reserve Notes’ do not meet either of these lawful requirements for legal tender for the Citizens of the several states.

Perhaps Federal Reserve Notes are “legal tender” for the Territorial (federal zone) United States, under the EXCLUSIVE jurisdiction and not under Constitutional restrictions and protections.  However, both the Constitution and the Law lead only to one inescapable conclusion, which is that:

Federal Reserve Notes certainly are NOT Constitutional tender or lawful money for the Citizens of the 50 sovereign states in these united states of America!

Because the Constitution prohibited the states from coining gold and silver (which would logically extend to the gold and silver certificates which were representative of the ownership of these coins) and because We the People specifically delegated monetary powers to Congress, it was not within the Congressional authority to transfer the issuing of gold and silver certificates and ultimately federal reserve notes to the private Federal Reserve.

Remember:

“Congress may not abdicate [‘to give up.. renounce or relinquish…authorities, duties…powers, or responsibility] to transfer to others its legitimate [delegated] functions”  Schechter Poultry v. U.S., 29 U.S., 495 U.S. 837, 842 (1935)

Gold Reserve Act of March 14, 1900.  “Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, that the dollar consisting of twenty-five and eight tenths grains of gold, nine-tenths fine as established by section thirty-five hundred and eleven [§3511] of the Revised Statutes of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at the parity of value with this standard, and it shall be the duty of the Secretary of the Treasury to maintain such parity.

Sec. 2.  That United States notes, and Treasury notes issued under the Act of July 14, 1890, when presented to the Treasury for redemption, shall be redeemed in gold coin of the standard fixed in the first section of this Act…”

So where is our gold?…you ask.  Where’s our gold certificates?

Gold certificates were originally the idea of goldsmiths who would hold the gold of Citizens and issue much less bulky certificates as evidence of gold on deposit.  The Certificate Holders could redeem their Certificates for their gold at any time.  Greedy goldsmiths soon began to realize that the majority of the gold in their vaults just sat there because the Certificate Holders were using their certificates as a medium of exchange instead of the gold.  Realizing this, the goldsmiths made up extra gold certificates and starting making loans, at interest, using OTHER Citizen’s gold as backing.  These loans were then repaid to the goldsmith in GOLD COIN!  As long as all the gold owners didn’t show up at once, the goldsmiths got away with their scheme.  When the lawful owners of the gold got wise and demanded their gold back, the goldsmiths who couldn’t produce it were hung from the nearest tree!

The Trading With the Enemy Act:  Day the President Declared War on His Own People and Confiscated all the Gold!

Many of the legal cites used in this section are taken from the tremendous research efforts of Dr. Eugene Schroder, who has authored a book called, Constitution: Fact or Fiction, published by Buffalo Creek Press, PO Box 2424 Cleburne, Texas 76033.  Supporting documents and a video are also available from Dr. Schroder, c/o PO Box 89, Campo Colorado (81029).  Dr. Schroder’s research exposes Government corruption of insidious magnitude.

Franklin D. Roosevelt was a shrewd banker, himself.  In the 1920’s, he made a considerable amount of money by floating millions of dollars in worthless German bonds.  The artificially engineered Great Depression and a desperate nation, paved the way for acceptance of the new unconstitutional socialistically oriented governmental policies of FDR.  Families, desperate to survive, lost touch with the Constitution.

This section will provide powerful and unrefutable evidence that on March 9, 1933, the United States declared war on its own citizen subjects through Franklin D. Roosevelt, by amending the war powers, “Trading With The Enemy Act” of December 6, 1917, to include, as an enemy of the United States:

“any person within the United States or any place subject to the jurisdiction thereof”!!! [This was the Territorial United States or the federal zone, but the People were not told this.]

The above trick is exactly the same trick our government is STILL playing on us with the whole of Subtitle A income taxes…fooling us into believing that the jurisdiction of the Subtitle A income tax extends into the borders of the sovereign 50 union states when it actually does NOT, according to 26 U.S.C. §7701(a)9-(a)10! 

The purpose of this unconscionable and treasonous Act was to justify the theft and seizure of the People’s gold by the Government and to cancel the contractual obligation of the bankers to redeem the People’s Gold Certificates!  This Act, if applicable to the Citizens of these united States, would have been a direct violation of Public Law 103 of Dec. 24, 1919, previously quoted, which stated, that only

“gold certificates of the United States payable to bearer on demand shall be and are legal tender in payment of all debts and dues, public and private.” 

The amended Act also blatantly violated the Constitutional prohibition against making anything other than gold and silver legal tender for the payment of debts in the several states!

The Trading with the Enemy Act, called upon the extraordinary dictatorial war powers.  These powers were only to be used in life-threatening circumstances and ONLY against the declared enemy of the United States.  Obviously, the intent of the law was NEVER to seize the assets of American Citizens in the time of peace or war!  These powers have been grossly abused to turn America from a free constitutional Republic into an enslaved statutory presidential dictatorship!  We warned you this kind of scam would be used to rob you of your liberty in section 2.7.6 entitled “Surrendering Freedoms in the Name of ‘Government Induced Crises’.

In other countries, emergency powers can suspend the Constitution.  Adolf Hitler used the Emergency Powers to suspend the German Constitution and institute an unfathomable dictatorial reign of terror!  The German Emergency Power Law was merely titled Article 48 and stated:

“If the public safety and order in the German Reich are seriously disturbed or endangered, the President of the Reich may…suspend in whole or in part the fundamental rights established [including] inviolability of person, inviolability of domicile, freedom of opinion and expression, freedom of assembly and association, secrecy in communication and inviolability of property.”

Even with the broad war powers, in America, where the Constitution is the supreme law of the land and ANY law contrary to it NULL and VOID, it is not within the power of the President, the Congress or the Judiciary to create a law or an emergency which suspends the Constitution and unalienable rights of the Sovereign People!  Not even war can alienate the rights of the People in relationship to the government!

THE AMERICAN CONSTITUTION IS NON_SUSPENDIBLE!

16 Am Jur 2^nd §71-72 states:  “No emergency justifies a violation of any Constitutional provision.”

Contrary to what the People were fraudulently mislead into believing, the Trading With the Enemy Act could not be, and therefore was not, applicable to the Citizens of the several states.  In fact, in a section of the Trading With the Enemy Act, that was never amended, or repealed, the Citizens of these United States were specifically and logically exempted from being defined as the enemy.  Therefore, the regulations and punishments of the Trading With the Enemy Act were not and could not later become applicable to the Citizens of the United States.

SIXTY FIFTH CONGRESS Sess. 1 Chapter 106, Page 411, October 6, 1917

CHAP. 106—An Act To Define, regulate, and punish trading with the enemy, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act shall be known as the “Trading With the Enemy Act.”

…SEC. 2. That the word “enemy” as used herein shall be deemed to mean, for the purposes of trading and of this Act—

“…(c ) Such other individuals or body or class of individuals, as may be natives, citizens, or subjects of any nation with which the United States is at war, other than citizens of the United States…”

Again, it was the “persons” born in Territories over which the United States is exclusively sovereign and NOT the Citizens of the Sovereign states, who were the purported “Enemy” targets of the Trading with the Enemy Act.  Even though the Citizens were specifically excluded from the Emergency War Powers Act, in the most heinous act of Government and Banker Fraud ever perpetrated, American Citizens were coerced by fear and defrauded into turning over all of their gold to the banks.  They were threatened [coerced by fear] through the national media, with a $10,000 fine and 10 years in prison, if they refused to comply.

It is important to remember that the gold in the banks was the property of the Citizens, holding the gold certificates.  The gold did NOT belong to the Government or the Banks.  The Federal Reserve is a PRIVATE CORPORATION and gold certificates represented a legitimate contractual obligation to convert the certificates to an equivalent amount of gold, payable on demand of the bearer, whenever that demand might be!  The Federal Reserve was required by law to maintain a 40% gold reserve and enough other liquid assets to meet the demands of all citizens who wanted to convert their certificates into gold.

Under normal circumstances, only a small percentage of Citizens would exchange their certificates for their gold.  However, because of the depression, and well-founded rumors circulating that the private Federal Reserve was taking large amounts of gold belonging to the Citizens out of the country, people lined up at the bank to redeem their gold certificates for gold.  This was the lawful prerogative of the People.  The Citizens were merely demanding what was lawfully theirs.  They had lawfully earned the gold certificates and gold which they represented and it was not within the power of the Government or the Bankers to take the Sovereign Citizen’s property and substance, emergency or no emergency!

When FDR took office, he declared a national emergency.  In Proclamation 2039, using the very words the Federal Reserve had written for him, He stated:

“Whereas there have been heavy and unwarranted withdrawals of gold and currency from our banking institutions for the purposes of hoarding…”

“Hoarding???”  Doesn’t that mean “saving?”  It was the People’s gold and not the bankers and, of course, it was their absolute prerogative to spend it or save it.  Most were spending it on SURVIVAL during a time of depression, which incidentally some informed economists blame as the cause a money supply that was deliberately contracted by the Federal Reserve!  The President was certainly not delegated the power to ORDER the People not to “save” their own gold!  When the smoke screen was removed, the real emergency was that the private federal reserve had breached its contract with American Citizens.  They were repudiating their contractual obligation to redeem the People’s gold Certificates and were removing the People’s gold from the country.  The Bankers were like the goldsmiths who had their corrupt scheme exposed.  The emergency was that the People were ready to hang the bankers from the nearest tree!  Demanding the return of the People’s gold to the bankrupt private bankers was like having Americans return their cars if General Motors went bankrupt!

FDR Defends the Federal Damn Reserve

As representatives of the Citizens, the President’s first duty was to the People who were the victims of banking fraud.  Emergency legislation should have been passed, demanding an immediate and complete audit of the federal reserve (which has NEVER been audited).  The 40% gold reserve should have been turned over to the People holding the gold Certificates and all of the bankers remaining assets should have been liquidated and converted to gold.  This gold should have been returned to the holders of the gold certificates.  If the audit found evidence of self-dealing and embezzlement of the People’s gold, those involved should have been criminally prosecuted and their assets should have been seized.  If an emergency currency needed to be issued, it should have been debt free currency, issued by the Treasury of these United States and People should have been compensated for their loss of gold.  This is how a good President would have protected the People.  Instead, FDR was in the pocket of the Bankers!

Lets go back to March 6-9, 1933 and find out what FDR did do.  Instead of formulating a plan demanding that the Federal Reserve honor their contractual obligations to the People he instead consulted the Federal Reserve as to how they believed the crisis should be solved!  Remember the REAL emergency was that the bankers did not want to honor their contractual obligation to convert the People’s gold certificates to gold.  The cats were consulted about what their punishment should be for eating mice.  Of course, the cats ruled that they should be fed more mice!  What did the private federal reserve conclude that their punishment should be for embezzling the People’s gold and dishonoring their fiduciary responsibilities and legitimate contractual obligations?  The cats at the FED decided that they should be fed more mice and the President was instructed to pass a law demanding that the People return ALL of their gold to the bankers or be subjected to a stiff fine and jail time.  Roosevelt’s Proclamations were taken word for word from the Resolution adopted by Federal Reserve.

Resolution Adopted by the Federal Reserve Board of New York. 

“Whereas, in the opinion of the Board of Directors of the Federal Reserve Bank of New York, the continued and increasing withdrawal of currency and gold from the banks of the country has now created a national emergency…”

Remember, the controllers of the Federal Reserve were extremely well educated in law.  History has shown them to be the brains behind all major Wars throughout the world.  They create a conflict and then fund all sides.  War is big business for banks.  The fed understood how Congress can legislate for its Territorial subject “persons” through Art. I, Sec, 8, Clause 17, without regards to the Constitution (see also Downes v. Bidwell, 182 U.S. 244 (1901)).  These same scoundrels probably created the loophole!  They also knew the difference between the Citizen of these united States and the 14^th Amendment “person” and they were well aware of the War Powers.  Following is the original October 6, 1917 combined with the Amendments of March 9, 1933:

Note:  Bold faced and single underlines are added by the author for emphasis and understanding.  Double underlines and strike-through deletions are Amendments to the original “Trading With the Enemy Act” made in the Act of March 9, 1933.

SIXTY FIFTH CONGRESS Sess. I Chapter 106, Page 411, October 6, 1917

CHAP 106—An Act To define, regulate, and punish trading with the enemy, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, that this Act shall be known as the “Trading With the Enemy Act.”

SEC. 2.  That the word “enemy” as used herein shall be deemed to mean, for the purposes of such trading and of this Act—

(a) Any individual, partnership, or other party of individuals, or any nationality, resident within the territory (including that occupied by the military and naval forces of any nation with which the United States is at war or resident outside the United States and doing business within such territory and any corporation incorporated within any country other than the United States and doing business with such [enemy] territory, and any corporation incorporated within such territory with which the United States is at war or incorporated within any country other than the United States.

(b) The government of any nation with which the United States is at war, or any political or municipal subdivision thereof.

(c ) Such other individuals or body or class of individuals, as may be natives, citizens, or subjects of any nation with which the United States is at war, other than citizens of the United States, wherever resident or wherever doing business, as the President, if he shall find the safety of the United States or the successful prosecution of the war shall so require may, by proclamation, include within the term enemy”

[this section then continues to define an “ally of an enemy” in the same terms as the “enemy” and again states, “other than citizens of the United States,”]

Public Laws of the Seventy-Third Congress, Chapter 1, Title I, March 9, 1933 Sec. 2

Subdivision (b) of Section 5 of the Act of October 6, 1917 (40 Stat. L. 411), as amended, is hereby amended to read a follows:

SEC. 5(b) “During time of war or during any other period of national emergency declared by the President, the President may through any agency that he may designate, or otherwise, investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions of foreign exchange, export or earmarkings of gold or silver coin or bullion or currency, transfers of credits in any form (other than credits relating solely to transactions to be executed wholly within the United States) between or payments by banking institutions as defined by the President, and export, hoarding melting, or earmarking of gold or silver coin or bullion or currency by any person within the United States or any place subject to the jurisdiction thereof; and transfers of evidences of indebtedness or of ownership of property between the United States and any foreign country, whether enemy, ally of enemy or otherwise, or between residents of one or and he the President may require any such person engaged in any such transaction referred to in this subdivision to furnish under oath, complete information relative thereto, including the production of any books of account, contracts, letters or other papers, in connection therewith in the custody or control of such person, either before or after such transaction is completed.  Whoever willfully violates any of the provisions of this subdivision or of any license, order, rule or regulation issued thereunder, shall, upon conviction be fined not more than $10,000, or, if a natural person, may be imprisoned for not more than ten years, or both;’…”

The supreme Court decision of Stoehr v. Wallace, 255 U.S. 239 (1921) declared:

“The Trading With the Enemy Act, originally and as amended is strictly a war measure, and finds its sanction in the provision empowering Congress ‘to declare war, grant letters of marque and reprisal and make rules concerning captures on land and water.”  Const. Art. I, Sec. 8, Cl. 11

How did FDR and the Federal Reserve get away with this treasonous robbery of the American People’s substance?  Probably for the same reason Congress is currently passing a multitude of unAmerican bills and Acts.  Congress just does not read them!  In the words of Congressman McFadden:

Congressman McFadden:  “Mr. Speaker, I regret that the membership of the House has had no opportunity to consider or even read this bill.  The first opportunity I had to know what this legislation is, was when it was read form the clerk’s desk. It is an important banking bill.  It is a dictatorship over finance in the United States, it is complete control over the banking system in the United States…It is difficult under the circumstances to discuss this bill.  The first section of the bill, as I grasped it is the War Powers that were given back in 1917.”

In spite of warnings of McFadden, the amended Trading With the Enemy Act  was immediately passed by a trusting, uneducated and ignorant Congress.

What were the banking institutions as defined by the President?

TITLE II

Sec. 202.   As used in this title, the term “bank” means (1) any national bank. [Because this is federal legislation this would mean a U.S. national ie. U.S. Territorial bank, not a sovereign state bank.] (2) any bank or trust company located in the District of Columbia and operating under the supervision of the Comptroller of the Currency…”

What is the collateral for federal reserve notes?  To add insult to injury, it became the People’s own property!

Congressman McGugin:  “This money will…represent a mortgage on all the homes and other property of the people in the Nation.”

Senate Document No. 43, 73^rd Congress, 1^st Session:  “The ownership of all property is in the State [Remember, what the term “in the State” means?]; individual so called ‘ownership’ is only by virtue of Government, ie. Law, amounting to mere user; and use must be in accordance with law and subordinate to the necessities of the State.”