Maine Republic Email Alert No.

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“. . . if the trumpet give an uncertain sound, who shall prepare himself for battle?” — I Corinthians 14:8 — 10/28/12

Federal Reserve Act - Remedy

Federal Reserve Act Remedy of and gold certificates redeemable in gold,
1913 and how to apply it today. to return. (Sandusky Masonic Bulletin -
March 1933; Mason Museum Colorado
It’s important to understand why a Springs, Colorado).
remedy had to be written into the
Federal Reserve Act. Look at what the To prevent a bank run, Franklin
title says, per the 63rd Congress, Sess. Delano Roosevelt, formerly Governor of
2; Ch. 4-6, P. 251. New York State, quickly declared a
Bankers Holiday.
“An Act. To provide for the establish-
ment of Federal Reserve banks; to To make sense of ‘legal tender’ vs.
furnish an elastic currency; to afford ‘lawful money’ the Constitution for the
means of rediscounting commercial United States of America speaks of
paper..” money in two distinct places:
Federal Reserve Act, 63rd Congress,
To understand the authority behind Sess. 2; Ch. 4-6, P. 254. “No state shall ... make anything but
remedy in the United States of America, gold and silver coin a tender in payment
look to the Judiciary Act, of 1789 and “Upon filing of such certificate with of debts” (US Const., 1:10).
read: the comptroller of the currency as
aforesaid, the said Federal Reserve bank “To coin money, regulate the value
“...saving to suitors in all cases the shall become a body corporate, and as thereof, and of foreign coin, and fix the
right of a common-law remedy, where such, and in the name designated in standard of weights and measures.” (US
the common law is competent to give each organization certificate, shall have Const., 1:8:5).
it.” power, First. To adopt and use a
Considering these two clauses in the
corporate seal. Second. To have
This saving to suitors clause of 1789 context intended by our Founding
succession for a period of twenty years
allows for the original cognizance by Fathers, the United States of America
from its organization, unless it is soon
Congress of all seizures on land. should not have a fiat currency and it
dissolved by and Act of Congress, or
Congress was required to write the didn’t have a fiat currency between 1789
unless its franchise becomes forfeited
remedy from elastic currency into and 1861 when an extraordinary
by some violation of law. Third. To make
Section 16 of the Federal Reserve Act: emergency occurred, as declared by
contracts. Fourth. To sue and be sued,
President Lincoln. (Congressional Globe,
“They (FRNs) shall be redeemed complain and defend, in any court of law
July 4, 1861).
in gold on demand at the Treasury or equity.”
Department of the United States, or in The emergency that began on March
gold or lawful money at any Federal So, do the math. From 1913 to 1933 28, 1861 is still in effect today.
Reserve bank.” was twenty years. All these reserve
banks — people with Federal Reserve Parts of the emergency of 1861 ended
Section 16 (the remedy from central Notes in their pockets, in their wallets, in 1976, but per stipulations from
banking) reveals that Federal Reserve in their pillows, under their mattresses, Congress at the end of this Act, the
Notes are for reserve banks. Therefore, in their bank accounts, whatever, wanted Trading With the Enemy Act, and
if you have FRNs in your wallet you to get their Federal Reserve Notes 12 USC 95A, regarding the Bankers
are a reserve bank. redeemed in 1933 for gold, or gold Holiday, remain in full force and effect
certificates like United States Notes today.
To restate the remedy: You can stop
being a reserve bank by redeeming (USNs)(lawful money); inelastic currency. Under this same emergency, a
lawful money in exchange for your Since the nature of the FRN is elastic, Banker Holiday can be called by the
Federal Reserve Notes. the Federal Reserve banks had been Secretary, or the President at any time.
issuing more notes than they had gold, (Public Law 94-412; 90 Stat. 1225; Sept.
Corporate powers are defined in the 14, 1976).

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 This is a critical point to remember in (Milam v. USA, 524 F.2d 629) . . . within the United States except for duties
applying the remedy today because on imports and interest on the public
they’ve retained the ability to declare a Although golden eagles, double debt.
Bankers Holiday in case all of you eagles, and silver dollars were lovely to
reserve bankers holding FRNs (private look at, and delightful to hold, the holder Attorneys in black robes are trained
credit) decide to redeem lawful money of a $50 Federal Reserve Bank Note, to give opinions that make it sound as
at the same time; making run on the although entitled to redeem his note, though they have the authority to define
banks. was not entitled to do so in precious lawful money. I just told you the definition
metal. (Federal Reserve Act, § 16, 12 by Congress and it’s from this very case.
Bank Holidays are for bank runs, so USC 411; Coinage Act of 1965, § 102,
The remedy is still in place. 31 USCA § 392). Defendant argues that the Federal
Reserve Notes in which he was paid were
A year later in 1934, the wording of Here the justices of the ninth circuit not lawful money within the meaning of
the declaration was changed to admit that this gentleman was entitled the Constitution at 1:8.
incorporate the gold seized by FDR. to redeem his notes . . .
We have held to the contrary. We find
Section 16 of the Federal Reserve “(a) saving to suitors, in all cases, no validity in the distinction which
Act of 1913 was codified into 12 USC the right of a common law remedy, defendant draws between “lawful money”
411 and its been there ever since. It was where the common law is competent to and “legal tender.” (US v. Ware, 308 F.2d
amended in 1933 to read: give it;” 400, 402-403).
“[FRNs] shall be redeemed in It’s wise for the justices of the ninth Ware endorsed his pay-checks and
lawful money on demand at the circuit not to stand between people and by doing so he bonded his substance to
Treasury Department of the United their remedy by law. Sadly we can elastic currency, silently claiming
States, in the City of Washington, deduce, by the verbiage, that this thereby that elastic currency was as
District of Columbia, or at any Federal gentleman did not know about the good as lawful money to him.
Reserve bank.” emergency, existing since 1861, and
about the gold seizure in 1933 (at least Money is a medium of exchange.
Since then, many a patriot has he wasn’t acknowledging it in law), Legal tender is money which the law
marched into a Federal Reserve Bank whereas the ninth circuit justices requires a creditor to receive in payment
with Federal Reserve Notes demanding know the history of America. of an obligation. The powers granted to
some sort of lawful money — gold, gold Congress by the Constitution include
or silver coin, or some sort of substance Here’s an informed opinion from the authority over revenue, finance and
— according to what the Constitution Attorney General of the State of currency. (Norman v. B & O R Co., 294
reads. Michigan: US 240; 55 S.Ct. 407; 79 L.Ed. 885).
And now, because of the saving to “It is my opinion, that the US Const., In the exercise of that power Congress
suitors clause of 1789, Congress cannot 1:10 does not require the State of has declared that Federal Reserve
take the remedy away. Congress has to Michigan to pay its debts or receive Notes are legal tender and are
leave the remedy in place. payment for debts exclusively in either redeemable in lawful money. The
gold or silver coin. It is further my opinion Defendant received Federal Reserve
So examine the inelastic currency that the State may not require payment Notes when he cashed his pay checks
— United States Notes (USNs): of private debts exclusively in either gold and used those notes to pay his personal
“The amount of United States or silver coin, since Congress alone expenses. He obtained and used lawful
currency notes outstanding and in possesses and exercises that authority.” money.
circulation (1) may not be more than (Opinion 5934, July 15, 1981).
This explains the frustration of so
$300,000,000; and (2) may not be held Therefore, one should pay attention many patriots going into the bank with
or used for a reserve.” (31 USC 5115). only to how Congress defines lawful FRNs demanding lawful money in
This says that the amount of United money. (US v. Rickman, 638 F.2d 182): exchange for the FRNs. They walk in
States currency notes outstanding in admitting that they endorse private credit
Congress has declared that Federal as being money. FRNs are not lawful
circulation is fixed. The amount of United Reserve Notes are legal tender
States notes in circulation cannot be money. FRNs are not United States
redeemable in lawful money. Notes (USNs) which are lawful money.
expanded upon through fractional
lending. This is the difference between In a similar case (US v. Ware, 308 They’re coming in with Federal
inelastic currency and elastic currency. F.2d 400): Reserve Notes, private credit, demand-
For insight into what the courts think United States notes (USNs) shall be ing Federal Reserve Notes lawful money,
about redeeming lawful money, consider lawful money and a legal tender in but they already incurred the tax liability.
what the ninth circuit court has to say. payment of all debts, public and private, They’ve already endorsed private credit.

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(Milan v. USA, 524 F.2d 629). putting more USNs into circulation. your funds in lawful money; United States
Nobody was demanding lawful money notes in the form of nonnegotiable
Because the limit of the exemption instead of private credit from the Fed ( Federal Reserve Notes.
on income tax for coinage is only $1,000 FRNs). (Department of the Treasury,
dollars, I will only touch upon that lightly. Online FAQ). REDEEMED IN LAWFUL MONEY
PURSUANT TO 12 USC 411, John Doe
Coins do not say that they are Federal If you endorse private credit from the d/b/a JOHN DOE
Reserve tokens. They say that they are Fed by endorsing your paycheck
coins equivalent to US dollars. The without any restrictive or non- That Congress retains wartime
following recent asset report from the endorsement verbiage, you’ve accepted provisions through the Trading with the
Federal Reserve to Congress reveals the private credit from the Fed instead of Enemy Act for a possible Bankers
situation about gold since the late 1970s. lawful money. (Typical Federal Tax Holiday may not be enough proof to
Lien). convince you.
Financial ministers around the world,
in amending the Bretton Woods If you want to own property, you must Read this Juliard v. Greenman, 110
agreements, accepted France’s and purchase it. You must buy it. You must US 421 (the backbone case of the Legal
America’s decision to go from the fixed pay for it in lawful money instead of Tender Cases following the war between
exchange rate of gold — US dollar private credit that has a residual first the States)...
domestic to US dollar foreign — to a lien on the property by whomever you got
floating exchange rate called Special ...notes of the United States issued
the private credit from. during the War of Rebellion under acts
Drawing Rights (SDRs). (Statistical
Supplement to the Federal Reserve It’s vital to understand the distinction of Congress declaring them to be legal
Bulletin, May 2008). between discharging a debt and buying tender in payment of private debts shall
something. If you buy something you be reissued and kept in circulation.
“SDR’s are often called “paper gold,” own it in allodium. Allodium means that
and here we see that the gold in the Congress has never enacted any
you used lawful money to purchase it. legislation to take United States Notes
United States, United Nations, and IMF If you discharge debt there’s an
trust fund, is still earmarked at $42.22 out of circulation.
obligation residing therein.
per ounce. This should peak the interest As said above, 31 USC 5115 defines
of anybody who has bought and sold gold There’s a difference between a debt the inelasticity of United States notes,
because spot today is nearly $1,000 per discharged and a debt paid. When and in 1982 congress revised that section
ounce.” discharged, the debt still exists, although by changing “United States notes” to
divested of it’s legal obligation during the “United States currency notes” for
Wouldn’t it be nice to find a window operation of the discharge. Something
where you could buy gold at $42 and sell consistency in the revised title.
of the vitality of the debt continues to
it at another window at about $1,000. exist, which is transferred and the Remember, the Constitution grants
That would crash the windows and the transferee takes it subject to it’s the power to remove United States notes
difference between the US dollar and disability to the discharge. (Stanek v. from circulation only to the Congress, not
Federal Reserve Note. White, 172 Minn. 390, 215 N.W. 784). to the Treasury, but let’s pretend that the
However, four quarters, divide as Treasury does have the authority. Listen
Many well intentioned patriots fall into to this wording, carefully:
equally into US Dollars as they divide into the trap of thinking that a Notice of
Federal Reserve Notes, but there’s a Federal Tax lien is part of curing the United States notes serve no function
discrepancy in the value of the coins. lien. It’s not part of perfecting the lien. that is not already adequately served by
Congress has stretched Federal It’s notice to third parties that the lien Federal Reserve notes. As a result, the
Reserve Notes and United States Notes is already cured because the Treasury Treasury Department stopped issuing
to the point where, if you were to tender has the first lien. United States notes, and none have been
United States notes they would be placed into circulation since January 21,
The law states the remedy simply. 1971. (Treasury Dept. Online FAQ).
accepted at the same face value as
Federal Reserve Notes, a 20 to 1 “[Federal Reserve Notes] shall be The Treasury has not and cannot
discrepancy. redeemed ... on demand...” (Federal remove United States notes from
Reserve Act, § 16). circulation. Elastic FRNs function as
Since 1933, when remedy was fresh
on people’s minds, and they were That’s all there is to it. A fellow on the inelastic currency United States notes
threatening bank runs to redeem lawful Internet endorses with the following when they’re not endorsed.
money in place of Federal Reserve Notes, verbiage above his signature on the As hundreds, maybe even thousands,
few people have been redeeming lawful reverse side of a check. And this worked of Americans started redeeming lawful
money in United States Notes, so on rather well with tellers. They don’t money from their paychecks, Congress
January 21, 1971, the Treasury stopped understand it, so they quickly give you raised the frivolous filing penalty from

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$500 to $5,000, and issued a Frivolous federal reserve bank handling private He’s talking about the preamble to the
Positions Memorandum to all IRS credit as intended by the 1913 Federal secret Jamaica/Rambouillet Accord
agents. The Memorandum itemized Reserve Act. This is what and who the between America and France, piggy-
various frivolous positions for which the remedy is provided for. backed on amendments of the Bretton
taxpayer could be charged this new Woods agreements of 1976.
$5,000 penalty fine. Now our hypothetical employee is on
his way home from work, and he drops This was when we went over to SDRs
Items (11) and (12) come close to the into his boss’s bank to cash his $500 (Special Drawing Rights), a basket of
redeeming lawful money issue: paycheck. He has the option to currencies between five exemplary
redeem lawful money and get out of nations where endorsing private credit as
(11) Federal Reserve Notes are not private reserve banking. the only option, prevails.
taxable income when paid [exchanged]
to a taxpayer because they are not gold We must stop the Federal Reserve The CIA offers current and accurate
or silver and may not be redeemed for before our nation is completely information about the economics of the
gold or silver. destroyed! The US Code states that all world. It is not surprising to see China at
(12) In a transaction using gold and Federal Reserve Notes can be the top, nearly $400 billion dollars in the
silver coin, the value of the coins is redeemed at any Federal Reserve Bank black. It is also not surprising to see,
excluded from income for the amount for lawful money. This is a fact; per 12 among the 200 or so nations listed, that
realized in the transaction is the face USC 411! the United States is at the bottom, nearly
value of the coins and not their fair market $800 billion dollars in the red.
value for purposes of determining It’s not up to the bank teller, the
taxable... Secretary of the Treasury, or the bank There are lots of factors to consider,
Notary. To demand lawful money by about import and export account deficits,
But neither one of these refers to remedy is up to you. You’re the one who and so forth, but remember, America
redeeming lawful money pursuant to 12 makes the choice. started SDR’s back in 1975.
USC 411. Summarized at the memoran-
dum end, it says: However, bank attorneys become Looking at China’s information — after
concerned when they realize that they keeping its currency tightly linked to the
Returns or submissions that contain cannot fractionally lend on the funds US dollar for years — China revalued its
positions not listed above, which on their that have been deposited or currency in July 2005, by 2.1% against
face have no basis for validity in existing withdrawn. the US dollar and moved to an exchange
law, or which have been deemed frivolous rate system based on a basket of
in a published opinion of the United If an employee is having withholding currencies. (SDRs).
States Tax Court, or other court of sent to the IRS during the year, he could
competent jurisdiction, may be get a full refund in lawful money by simply
proving that he had been redeeming Simply put, if someone tells you that
determined to reflect a desire to delay or you don’t have the right to redeem lawful
impede the administration of Federal tax lawful money all year long.
money, use 12 USC 411 and § 16 of the
laws and is thereby subject to the $5,000 If he showed that refund check to his Federal Reserve Act. This is your
penalty. boss, his boss might discontinue current law remedy.
Well, as I’ve shown, 12 USC 411 is withholding because the IRS had been
unlawfully using the interest on all those If they say you’re not doing it
the existing law. And the ninth circuit correctly, simply say, “Then, the burden
court opinion supports the fact that lawful funds during that year before he
got his refund. is on you, to show me how to do it
Federal Reserve Notes may be correctly; banks started redeeming lawful
redeemed at any time in lawful money. “Is it patriotic to continue paying the money in January 2004.”
In debating with a tax attorney in an income tax and continue subjecting
oneself to being chattel bonding the The American people have shown
Internet chat room, the tax attorney what they think of the Federal Reserve,
pointed out that an employee agrees to money supply if America is shifted over
to ‘paper gold’ or Special Drawing by unknowingly endorsing the private
handle Federal Reserves Notes and credit thereof.
private credit from the Fed when he fills Rights?”
out the W-4 or the 1099 form. That is The questions you just read is from a “A false balance is abomination to
the agreement. 1975 State Department bulletin from the LORD: but a just weight is his
Undersecretary of the Treasury, Katz. delight.” — Proverbs 11:1.
Our hypothetical employee is a

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