ABOUT THE AUTHOR:

J une Grem is a native Chicagoan. She received an A.B. degree

from Stanford University and has worked as an insurance
underwriter, secretary, researcher and public speaker. In 1971 she
organized Enterprise Publications, Inc. and has been its president
since that time. She is married to a physician and is the mother of
four children. She has been active in girl scout work, has received
the Congress of Freedom award and is listed in the Dictionary of
International Biography, Who's Who in the Midwest and Who's Who
of American Women. Despite a busy schedule as a homemaker, she
found time to become active in the stock market as a technical
analyst and chartist. It was through her knowledge of how the stock
market operated that she became aware of the Federal Reserve
Bank's role in our economy. Everyone actively engaged in the stock
market keeps one eye on the Open Market Committee of the Federal
Reserve Bank. It is through their manipulations of interest and
discount rates, as well as stock margin requirements, that the market
is moved up or down, thus ultimately affecting the financial and
economic fortunes of our entire nation.
A more penetrating analysis of the forces which control the
market led to an investigation of our money system. The results
revealed a sinister, well-organized and almost unknown plot to gain
control of the entire world through the issuance and control of
money. These operations have been shrouded in such, secrecy that
very few people either know or suspect that the same forces which
control our money, stock market and economy also control the
world-wide revolutionary movement.
It is hoped that when people gain an understanding of this vitally
important subject of money issuance and control, an informed
citizenry will take the necessary steps to reconstruct society on the
basis of reason, constitutional law and peace and prosperity for all of
our citizens. If America is to survive as a free nation, we must resist
all attempts to throw us into a world monetary system.
iv
Dedication
To Mr Peter Cook
Who is, as yet, unrecognized by many as one of the greatest living
monetary analysts of our times.
v
CONTENTS
Chapter Page
Foreword..................................................................................... ix
I. THE LIBERTY AMENDMENT ............................................ 1
The Liberty Amendment.............................................................. 5
Section I Promises to get Government out of Business 5
II. DOES THE UNITED STATES GOVERNMENT
OWN THE FEDERAL RESERVE BANKS? .......................... 7
Department of the Treasury ..................................................... 7
What Would Getting the Government Out Of
The Banking Business Mean to You? ...................................... 9
Operations of the Federal Reserve System................................... 12
This Part of the Earnings Picture is not
Generally Known to the Public ................................................. 13
The Board of Governors .......................................................... 16
List of Government Securities Dealers Reporting to the Market
Statistics Division of the Federal Reserve Bank of New York 17
The Open Market Committee .................................................. 19
III. A REVIEW OF SECTION II OF
THE LIBERTY AMENDMENT................................................ 22
IV. A REVIEW OF SECTION III OF
THE LIBERTY AMENDMENT................................................ 23
Text of H.R. 17140 .................................................................. 23
V. J ERRY VOORHIS AND HIS MONEY BILLS.................... 26
VI. COMPANION LEGISLATION ....................................... 29
VII. A BRIEF ANALYSIS OF THE MONEY BILLS .... 30
No Constitutional Amendment is Necessary ........................... 32
About the Income Tax ............................................................. 35
VIII. THE NEW MONEY SYSTEM ....................................... 47
vii
Constitutional Money Bill ..................................................... 47
How Will the New Money System Work?...............................51
Foreign Investments in the United States ............................. 55
United States Government Financing .................................. 56
How Would the Government Finance its
Own Activities? ..................................................................... 57
IX. PROGRAM FOR SURVIVAL ........................................ 61
viii
F ORE WORD
Everybody hates taxes, but throughout history death and taxes
have both been accepted as inevitable. However, when taxes
approach the confiscatory level there is bound to be opposition. And
so it was in California. When Proposition 13, which limited taxes on
property was passed overwhelmingly, everybody in the country
hailed this great victory. At last the voice of the people had been
heard loud and clear and the politicians "got the message." Would
any politician dare to oppose tax reduction or the Liberty
Amendment, which would phase out the income tax and compel the
federal government to cease competing with private enterprise,
especially in the face of an imminent nationwide tax revolt? The
Liberty Amendment provides that during a three year period, all
business enterprises not specified by the Constitution would be sold
back to the public. At the end of this time the 16th (Income Tax)
Amendment would stand repealed. We wonder who, except the big
banks, could afford to buy these money-losing government
enterprises. We also wonder what other activities the Insiders have
planned for the interim three year period, should the Liberty
Amendment be adopted.
Tax reduction and limitation ideas have begun to mushroom in
other states and even now, before Congress there is a bill in
committee to abolish the income tax. This is House J oint Resolution
23, or the Liberty Amendment.
The big question: Is all this a victory or defeat? We must be
wary of the sly maneuvers of the establishment and ask ourselves
whether or not the whole fanfare regarding Proposition 13 was
planned by the Insiders or was it a spontaneous rebellion by the
people. The overwhelming majority of the people involved were
concerned with just one thing. Reducing the taxes on their homes
which had become so oppressive that many people were obliged to
give them up. These people were honest, ordinary citizen tax-payers
who believed that this was THE METHOD of finally controlling
wild government spending. It was also an expression of rebellion
against bureaucratic intrusions in their lives.
Howard J arvis, the man who masterminded Proposition 13,
ix
has become a national hero. His associate, Paul Gann, is travelling
around the country urging the support of a Constitutional
Convention which is designed to put a "new constitution" into effect.
We wonder if this constitution (or non-constitution) is the one that
has been prepared by the Center for the Study of Democratic
Institutions, a misnomer if there ever was one. They are located at
P.O. Box 4068, Santa Barbara, Ca. 93103, Phone: (805) 969-3281.
The Center formerly had offices in New York City and Chicago
which have now been closed. Presumably their preliminary work has
been completed.
The Center for the Study of Democratic Institutions has been
funded by foundation money and has been working on this Soviet-
style "constitution" for years. It will effectively cancel all our
liberties and transfer total power to government. The "new
constitution" or non-constitution, would divide the present regions
(formerly states) into "republics." The only source of revenue
mentioned in the Center's non-constitution is from corporate and
individual incomes. No mention is made of a money system, but it is
presumed that the present debt-money system will be retained. What
banker or Insider would give up this wonderful plunder! If the
Liberty Amendment is passed, the Constitutional Convention will
have provided us with a new form of income tax through the
Center's non-constitution, which will, no doubt, take effect as soon
as it is passed. This will render our present Constitution valueless
and of no effect. Hence, passage of the Liberty Amendment would
also be meaningless. It would, however, divert attention from the
Insiders' gear shifting into new and better forms of individual and
corporate tax theft and plunder. Could the Liberty Amendment be
the bait for the calling of a constitutional convention?
Another little noticed effect from the passage of Proposition 13
is that the politicians in California haven't taken it lying down. The
people of California have unknowingly implemented regional
government by relinquishing control over their locally-elected tax
assessors and other local officials. Their wrath should have been
righteously turned against the local assessors and tax collectors.
Now this power is gone. It has been
x
moved up to the state which is busily adjusting its budget to allocate
the dole of public money to local governments so that they can
continue their profligate spending programs. This will effectively
control spending and shut out local communities from any say in the
matter. Also, it is part and parcel of the Federal program of
regionalism which will put the states more readily under the thumb
of big brother in Washington.
The way to attack high taxes, whether on individual incomes,
corporations, estates or property, is not through any means provided
for by the tricksters who have fooled us far too many times. There is
only one sensible way to relieve the American people of the
outrageous taxes under which this nation is suffering. AND THAT
IS REFORM OF THE MONEY SYSTEM. In the pages ahead, the
reader will be given insights into the true nature of the Liberty
Amendment and its real purposes. During the next few financially
chaotic years, no doubt a few "money reform bills" will be trotted
out. These are discussed in the text of the book. A sample of a true
money reform bill is also given. LET THE VOTER BEWARE. The
Insiders are too close to victory to stop now. Since they have
achieved everthing so far by lies, trickery and fraud, why expect
anything different from them now?
Do not support the Center's non-constitution or any
Constitutional Convention. Make it plain to your senators and
representatives that you KNOW what it is all about and if they are
"in the bankers' pocket" and go along with the non-constitution,
throw them out of office. But we must have facts. Since truth and
facts are the last thing we can expect from the media we must turn to
other sources.
Those who have supported the Liberty Amendment for years
should not be angry at this author. I, too, at one time, supported it
until I began to study the meaning behind its seemingly innocuous
phrases and the inconsistencies of some of the statements made by
its proponents. We all want to get rid of the income tax, and
stridently limit all others. But, let's do it the right way. Let's do it by
establishing a truly honest money system in which all the people will
benefit. It can be done or we will be thrown into the chaos and
slavery of a world government in which a plastic credit card will be
your money.
xi
All of your property will be confiscated (stolen) by the money trust
to pay off their fraudulent debt. WAKE UP AMERICA. It's time to
stop believing lies and being taken in by propaganda. Study the
money issue. Be aware of what an honest money system is and what
it could do for you and your country. THEN WORK FOR THE
TRUE REFORM OF OUR MONEY SYSTEM. When we have a
Constitutional and honest money system, the income tax will wither
away and be uncollectible. We must not be diverted by diversionary
tactics. THE PRIMARY ISSUE IS MONEY ISSUANCE BY
PRIVATE BANKS, AND THE FEDERAL RESERVE SYSTEM.
The fight should be in this area. If we understand the money issue
and begin our fight now, WE CAN WIN!
J une Grem
xii
Chapter I
THE LIBERTY AMENDMENT
"Words are the most powerful drug used by mankind"
Rudyard Kipling
Twentieth century America has been besieged by an almost
continuous flow of crippling and disastrous legislation. Although the
death of our nation has been well planned, the executioners were not
organized enough until 1913 to get their Marxist central bank and
graduated income tax enacted into law. For decades thereafter, the
Federal Reserve Bank was ignored and the income tax was accepted
by a docile and law-abiding people. It was only when the gradualism
began to escalate to the point of confiscation that ominous rumblings
against the income tax began to develop. .
Because of mounting dissatisfaction with this burdensome
legislation, it was natural for people to turn to any organization or
plan which promised to reduce or eliminate the merciless plunder of
America's most productive citizens, the working and middle classes.
The Liberty Amendment seemed tailor made to do the job. Not
only would the income tax be abolished by Constitutional
Amendment, but, as an added bonanza, it promised to get
government out of any business not specifically mentioned in the
Constitution. Everyone who abhors the chaos, confusion and
regulatory horrors wrought by government meddling would most
certainly welcome its exodus from our lives, both personal and
corporate.
The Liberty Amendment Committee was founded in Los
Angeles in 1944 by Mr Willis Stone and several other men who met
to discuss the Sewell Avery Case.
1
These men were concerned with
the continual invasion by government into the
1
Sewell Avery was the Board Chairman of Montgomery Ward & Co. who had been
physically removed from his office by United States soldiers.
1
lives of citizens and wanted to form an organization which would
combat these evils. Thus the Liberty Amendment Committee was
formed. The Liberty Amendment Committee was formerly located at
8413 Franklin Avenue, Los Angeles, Ca. 90028, and Mr Stone was
its chairman until 1976 when he retired. Since his retirement, he has
continued to tour the country in speaking engagements on behalf of
the Liberty Amendment.
After Mr Stone's retirement, headquarters were moved to Provo,
Utah, and Mr W. Cleon Skousen headed up the organization until
J anuary of 1979. The Liberty Amendment Committee is now located
in El Cajon, Ca., 92021, P.O. Box 2386, (714) 442-8045 and tax
fighter Armin Moths is the new chairman. The Liberty Analysis
Committee (its research arm) is still in Provo, Utah, at 839 No. 700
East, 84601. Their phone number is (801) 374-1800.
How did the Liberty Amendment Committee plan to eliminate
the income tax, the sacred darling of the Marxist banking crowd;
their primary weapon for the theft of the wealth produced by others?
Its plan was to establish a nationwide organization which would
distribute literature, inform citizens of the appaling waste in
government, and urge disgruntled taxpayers to put pressure on state
legislatures to repeal the income tax via the Constitutional
Amendment route.
During the years since its founding it has built an impressive
organization with local committees in thousands of communities
through the country. It has a speakers bureau, and a diversified list of
books and publications, as well as film strips, records and cassettes.
The bi-monthly magazine FREEDOM has been replaces by
occasional issues of REPORT ON FREEDOM.
Article V provides that the Constitution may be amended as
follows. If two thirds of both Houses of Congress approve an
amendment, it will then be submitted to the States. The amendment
will become law if three quarters of the states so approve. Or, two
thirds of the states may call a convention for the purpose of
proposing amendments, which would then become law if three
quarters of the states ratified the amendment, after having been
submitted to them by Congress. The second type of amendment is
initiated by the states, the
2
first by Congress.
The Liberty Amendment Committee chose the second method.
When two thirds of the states approve this legislation, it would be
submitted to Congress for the calling of a Constitutional Convention.
(Could this be a tie in with the present proposed Constitution
Convention?) Congress would then submit the proposal to all fifty
states. If three quarters of them vote in favor of the measure, it
becomes law. Remember, approval by a state does not constitute
ratification. Thus far, after over thirty years, only seven states have
approved the Liberty Amendment. This is a cumbersome, time
consuming and round about way of attacking the menacing problem
of our Marxist money system, of which the income tax is merely one
manifestation. Even now, with the income tax as a number one on
people's hate parade, it is doubtful if many states will approve the
plan because it has four separate sections. This type of "packaged"
legislation must be adopted in toto exactly as it is worded. For this
reason alone, it might be difficult to get the required number of
states to approve this legislation. The Liberty Amendment has
suddenly popped up in Congress under House J oint Resolution No.
23. All this has transpired in conjunction with the passage of
Proposition 13 in California. The California referendum declared
that the tax on the land would not rise more than 1% per year of the
Assessment of the properties.
The J arvis Amendment also requires a 2/3 vote of the legislature
to increase sales taxes, income taxes or any other taxes. This is fine
unless the California legislature is filled with spendthrift Socialist
meddlers. The question is, were the people of California tricked?
The assessors could always increase the municipal assessment of
property. It would have been better to have completely abolished the
land tax. This could easily be accomplished under a legal and ethical
money system. People should rebel against the banking system and
demand financing without taxes instead of financing with taxes
through the fake credit creation of the banks.
We must also remember that nowhere in the Constitution is the
Federal Government authorzied to engage in its multi-faceted
Socialist, anti-business and anti-people activities.
3
These programs are already unconstitutional and illegal. Since the
law-defying Congress has been busily ignoring and flaunting the
Constitution for decades, why would another Constitutional
amendment change their attitudes? This situation will continue
unabated until grass roots America finally becomes enraged enough
to oust the lawbreakers from government and replace them with
people who will represent the interests of this nation and not alien
and special-interest groups.
Since there is an easier and more effective way to get the income
tax repealed, why hasn't it been utilized? The most effective method
would be to have ONE STATE DECLARE THE 16th
AMENDMENT ILLEGALLY RATIFIED. The Supreme Court
would then have to rule on the question. While we might not expect
too much from the bar association types enthroned in their privileged
sanctuary, it would put them on the spot and force a decision one
way or another. It would also focus a great deal of attention on this
matter and force many a fence-straddling politician to take a
definitive stand on the issue. Ohio was not legally a state in 1913,
therefore the 16th Amendment failed to meet the requirements of
having 36 states ratify the Amendment. The politicians in Ohio who
railroaded its 1802 Constitution through, never submitted it to the
people for ratification. This, too, violated the provision guaranteeing
that all states will have a republican form of government. Congress
attempted to write a finale, to this outrageous situation by passing a
J oint Resolution for admitting the State of Ohio into the Union on
August 7, 1953. This J oint Resolution is Public Law 204 and is
found in 67 U.S. Statutes at Large, page 407. The J oint Resolution
further provided that "it shall take effect as of March 1, 1803" (or
150 years retroactively). Art. I, Sec. 9 prohibits the passing of
retroactive laws. It would be interesting to observe the methods used
by the Supreme Court to wriggle their way out of this one.
Liberty Amendment supporters have spent thousands of dollars and
thousands of hours working for the adoption of this legislation.
According to the Liberty Amendment Committee: "Over 6,000
organizations have passed resolutions of support. These include
service clubs, patriotic organizations, political clubs, labor
unions,
4
trade associations, medical associations and others."
1
At this point
perhaps we should ask whether or not its passage would accomplish
what its supporters expected, or have they been kept busy "spinning
their wheels" working for legislation which has little likelihood of
becoming law, and which, if passed, would not achieve the hoped-
for results. Examine the facts and make up your own mind.
THE LIBERTY AMENDMENT
Sec.I: The Government of the United States shall not engage in any
business, professional, commercial, financial or industrial enterprise
except as specified in the Constitution.
Sec.II: The Constitution or laws of any state, or the laws of the
United States shall not be subject to the terms of any foreign or
domestic agreement which would abrogate this amendment.
Sec.III: The activities of the United States Government which
violate the intent and purpose of this amendment shall, within a
period of three years from the date of the ratification of this
amendment, be liquidated and the properties and facilities affected
shall be sold.
Sec.IV: Three years after the ratification of the amendment the
sixteenth article of amendments to the Constitution of the United
States shall stand repealed and thereafter Congress shall not levy
taxes on personal property, estates and/or gifts.
SECTION I PROMISES TO GET GOVERNMENT OUT OF
BUSINESS
Almost everybody, except the Socialist busybodies and people-
hating leftists would agree with this premise. Wherever government
exists we find the ghastly evidence of bungling, corruption,
monumental waste, favoritism, political tyranny and plunder.
Certainly "our government" has proved itself to be the dedicated
enemy of majority America, and has shown itself
1
Your Introduction to the Liberty Amendment, by the Liberty Amendment
Committee of the U.S.A., 6413 Franklin Ave., Los Angeles, CA 90028.
5
over and over again to be the least qualified institution on earth to
run anything properly even itself. Before we streak off to support
another piece of legislation, however, let us make sure that we know
exactly what it is proposing. We have been fooled too many times. If
government is to be gotten out of business, what business is meant?
The Constitution never specified that the government could engage
in any business, therefore, should we conlcude that the getting out of
business refers to "the banking business" or, as the Liberty
Amendment puts it, "financial enterprise." This is a very important
point. It is probably the key to the entire matter.
6
Chapter II
DOES THE UNITED STATES GOVERNMENT OWN THE
FEDERAL RESERVE BANKS?
One of the cardinal tenets of the Liberty Amendment Committee
is that the Federal Reserve System is government owned and
operated and that the Treasury Department receives more than "98%
of the profit" (plunder). To substantiate their argument that the Fed
is a part of the government, listing in the United States Organization
Manual is cited. Reference is also made to figures in the Treasury
Bulletin regarding some receipts of money from the Federal Reserve
System.
First of all, listing in the United State Organization Manual is no
indication of government ownership. Such organizations as the
World Bank, IDA (International Development Association), a World
Bank Affiliate, IMF, Organization of American States and the UN,
just to mention a few, are also listed. The United States acquired
"membership" (underwriting privileges) in these organizations
through treaties. In fact, the UN is listed as an "international
organization." Furthermore, in a chart outlining the Treasury
Department, the Federal Reserve System is not even shown.

DEPARTMENT OF THE TREASURY
1

Here is other evidence showing that the Federal Reserve System
is not government owned.
1. Employees of the Federal Reserve System are not under Civil
Service.
2

2. Employees have their own pension system: The Thrift Plan. 80%
of the money is invested with the Equitable Life
1
United States Government Manual, 1975-1976 edition, p. 394.
2
U.S. Statistical Abstract, 1970 ed., page 396, and Title 5, Gvt.
Organization & Employees, Sec. 5314.
7
Assurance Society and the remaining 20% with Prudential Life
Insurance Company and the Morgan Guarantee and Trust
Company.
1

3. The Federal Reserve Banks have been exempted from payment
of income taxes by legislative action. (Government Departments do
not pay income taxes.)
2

4. The Government Corporation Control Act of 1945 exempted the
Federal Reserve System from audit. (All government agencies are
audited annually by the General Accounting Office.)
5. Federal Reserve Banks pay their own employees and executives
with their own checks.
6. Reserve Banks use stamps and postage in their mailings. U.S.
Government departments mail postage free.
7. Federal Reserve Banks and branches pay real estate taxes. U.S.
Government departments and agencies do not.
Perhaps the words of the late, great Hon. Louis T. McFadden
best describe the situation: In his Collective Speeches to Congress,
he said: "The Federal Reserve is a government created private
corporation. It is a quasi-government agency in which the President
appoints the directors of the Board of Governors, but the Bank pays
their salaries. The Government has NO CONTROL over the Fed."
While the President may appoint the head of the Board of
Governors, he has no power to remove him. The Federal Reserve
Bank has been called the fiscal agent of the
1
Hearings before the Committee on Banking and Currency, House of
Representatives: To provide for an Audit of the Federal Reserve System by the
General Accounting Office, H.R. 10265, 93rd Congress, Oct. 2 and 3, 1973, p. 99.
2
U.S. Code, Title 12, Sec. 531.
8

government. The exact opposite is the more correct view. The
government is the fiscal agent of the Federal Reserve Banking
empire and is totally under the control of the Bankers, both national
and international.
Why does the Liberty Amendment Committee so vehemently
contend that the Federal Reserve System is part of the United States
Government despite overwhelming evidence to the contrary? The
answer is that if they admitted that this octopus were a private
banking monopoly which has been illegally granted the privilege of
creating the nation's money and credit, they "couldn't get
government out of the banking business." AND THIS IS THE
CRUX OF THE ENTIRE MATTER. It is the real, but never
mentioned, reason for the existence of the entire movement. To
"remove government" from the banking business would involve the
payment of billions of dollars in illegal gains to these banking
shylocks. They would just "change hats" and move into the Treasury
Department. Nothing would change except titles. BUT, they would
have total and complete power over the nation's financial institutions
now and Congress would have lost its last chance to REVOKE,
RESCIND, AND REPEAL the outrageous Federal Reserve Act. An
example is England. The only redress the people now have against
the Bank of England is revolution.
WHAT WOULD GETTING THE GOVERNMENT OUT OF THE
BANKING BUSINESS MEAN TO YOU?
First and foremost, THE GOVERNMENT IS NOT IN THE
BANKING BUSINESS, so how can it be "gotten out of" something
it is not in? Does the government's printing of Federal Reserve notes
for the Federal Reserve Bank constitute "being in the banking
business?" Of course not! Also, if the government were to "buy
back" the stock of the Federal Reserve Banks, would this constitute
engaging in the banking business? Who are the stockholders and
where is the stock? Nobody seems to know.
The sovereign right of a nation to issue its own money and credit
must never be regarded as a banking function. The truth is that the
banks have usurped this sovereign power because of
10
stupidity, legislative laxity, corruption and treason. Passage of the
Liberty Amendment would remove what few rights Congress still
has over the Federal Reserve System, which, at this point, is ONLY
THE RIGHT OF REPEAL. The whole Liberty Amendment scheme
is a hoax to further entrap Americans so that the final noose of
enslavement might be twisted around our ever-trusting necks.
We must not overlook the generous support Congress has given
to such other international, non-government financial institutions as
the World Bank, IMF, Inter-American Development Bank, Asian
Development Bank, plus a host of other financial institutions. Does
"getting the government out of the banking business" mean a
cessation of all appropriations to these supra-national financial
empires? We wish to that extend it would. But this is not what is
meant by this deceptive phrase. United States relationship to these
institutions is of a contributory nature only. The management is
totally international and even those officials who may hold United
States citizenship are, in reality, world citizens. They pay no income
taxes, travel on diplomatic passports and the United States
Government has absolutely no right of management or control over
these institutions or individuals. It cannot enter the premises of these
banks, even when located within the limits of this nation, to serve
suppoenas, audit its books, arrest executives or employees or
exercise any other type of control. Obviously the United States is not
"in the banking business" in any sense of the word in its relationship
to these financial institutions.
Many supporters of the Liberty Amendment may not be aware of
the historic nature of the controversy regarding the government's
alleged involvement or non-involvement in the banking business.
Opponents of honest, Constitutional money have always taken the
position that the Constitution never gave the government any
authority to issue money, but only to "coin money." This is a
ridiculous and absurd position. The coinage of a nation always
represents but a fraction of the total amount of money and credit. To
coin money is a phrase which includes the right to emit not only
coins but paper money and bonds. If the bankers really meant what
they say about the
11
"coinage" of money pertaining exclusively to dimes, quarters, etc.,
watch them scream if their illicit power to deal in the credit aspect of
money were suddenly taken away from them. The nation's wealth is
produced by the people and not by the banks. The government
should create the medium of exchange so that the creators of wealth
(productive citizens) may exchange their goods and services without
incurring debts to private banks.
The controversy regarding the government's involvement in the
banking business is as pertinent in 1979 as it was in 1876. For
example, Mr Horace White, a banker apologist of that period, in his
book, Money and Banking, wrote that he was opposed to the
Government being in the Banking business, and was opposed to
having the Government create Treasury Notes unless based on the
gold which was controlled by the Wall Street International Bankers.
1

Since the Liberty Amendment Committee contends that the
government is in the banking business and that it must be ousted
from these activities, it points to certain figures published in the
Treasury Bulletin showing the income received by the Federal
Government from the Reserve System. Liberty Amendment
apologists also contend that the government pockets over 98% of the
earnings of the entire Reserve System. We should be entitled to
know if this is true or not.
In order to understand these Figures, we must be aware of just
what this income represents. The amounts in question indicate the
interest earned from the U.S. Treasury notes and agency bonds
which are held by the various Reserve Banks throughout the country.
After deducting all their expenses, the remainder is returned to the
Treasury Department. Always bear in mind that these banks do not
pay face value, or even a discounted price for securities pruchased,
but obtain them for pennies by simply "paying for them" with their
own bank-created funds. It is the power to create credit against
miniscule fractional reserves which commercial and Reserve banks
employ that is the primary cause of inflation and the debauching of
our currency. How would you like to buy a
1
Andrae B. Nordskog, Spiking the Gold (Los Angeles, Ca., Gridiron Publishing Co.,
1932).
12
couple of billion dollars worth of bonds (or goods and services) for
just the cost of printing?
OPERATIONS OF THE FEDERAL RESERVE SYSTEM
The operations of the Federal Reserve System may be divided as
follows:
a) The Federal Reserve System: includes the 12 Federal Reserve
banks and their branches scattered throughout the country.
1

b) The Board of Governors
c) The Open Market Committee
In 1972 the amount returned to the Treasury from this source
was about $3.8 billion. It rose to $4.3 billion in 1973. Remember
that even these billions are pitifully small in comparison to the
current $47 billion interest tab now paid on the national debt alone.
This fraudulent government debt of $47 billion has been created
because of the existence of our debt-money system under which the
government borrows all of its money and credit from this illegally-
constituted banking monopoly. The cheeks issued to the U.S.
Treasury by the Fed are merely bookkeeping creations by them and
represent no funds, but credits created out of thin air.
"Federal Reserve Bank credit, therefore, as already stated, does not
consist of funds that the Reserve authorities "get" somewhere in
order to lend, but constitute funds that thev are EMPOWERED TO
CREATE."
2
(Emphasis added)
1
"The Federal Reserve System derives income from interest received from its
government bond portfolio. Monies not spent from this income are returned to the
Treasury." (Hearings Before the Committee on Banking and Currency, ibid., page
85).
2
The Federal Reserve System, Its Purpose and Functions, published by the Board of
Governors of the Federal Reserve System, Washington, D.C., 1939, page 85.
13
You will never find the following information in the literature of
the Liberty Amendment Committee:
"The Federal Reserve doesn't 'get the money, it creates it.' When the
Federal Reserve writes a check, it is creating money. This can result
in an increase in bank reserves a demand deposit or in cash; if
the customer prefers cash, he can demand Federal Reserve Notes,
and the Federal Reserve will have the total money-making machine.
It can issue money or checks. And it never has a problem of making
its checks good because it can obtain the $5 and $10 bills necessary
to cover its checks simply by asking the Treasury Department's
Bureau of Engraving to print them."
1
(Emphasis added)
THIS IMPORTANT PART OF THE EARNINGS PICTURE IS NOT
GENERALLY KNOWN TO THE PUBLIC
If the Treasury Bulletin reports of the budget receipts from the
Federal Reserve System were their only source of income, why
would even a reluctant Banking Committee hold hearings for an
adult? The truth is that over 95% of the tax-free earnings of the
Reserve System are never reported. Never let it be thought that this
banking cartel has overlooked a single item in corralling funds from
every imaginable source. Its sources of income include the
following:
1. Interest and fees from loans
2. Income from purchase and sales of Federal funds
3. Interest and dividends from securities
a. U.S. Treasury securities
b. Other U.S. Govt. securities (agencies and corpo-
1
Subcommittee on Domestic Finance. Committee on Banking and Currency. House
of Representatives. 88th Congress, 2nd Session, Sept. 21, 1964.
2
Federal Reserve Bulletin, Board of Governors, Washington, D.C. 20551, 21, 1964.
14
rations)
4. Obligations of States and political subdivisions
5. Trust department income
6. Other charges, fees, etc.
Remember that by law all Federal Reserve Notes are obligations
of the Federal Government. When the Treasury Department receives
an order to print up say $50,000.00 worth of paper "money", we can
summarize the transaction as follows:
The Treasury has received the $50,000.00 cash, whereas the
Federal Reserve has received and will receive on a 30 year bond the
following:
$50,000.00 from the Bureau of Engraving
$50,000.00 from the Treasury when the bond matures
$60,000.00 interest on the bond
$2,700,000.00 on loans to J ohn Q. Public
$2,860,000.00 total.
2

(Computed at 5% interest. As interest rates go up, so do profits.)
No other profit machine like this ever existed in the history of our
planet.
The U.S. Government bonds held by the Federal Reserve Bank
went from $16,000,000 in 1914 to $107,148,000,000 in 1977. Many
of these bonds have been paid but have been "rolled over" and still
collect interest. The billions earned from its bond portfolio constitute
only a fraction of their total tax-free income. Other sources include
their overseas trans-actions. The latest figure available constituted
"$17 trillion
1
Federal Reserve Bulletin, Board of Governors, Washington, D.C. 20551, J une
1975.
2
Wicliffe B. Vennard, Sr., The Solution to the Federal Reserve Fraud,
Hawthorne, Ca., Omni Publications, 1968, p.4
3
1914-1938, Historical Statistics of the United States from Colonial Times,
Washington, D.C., Dept. of Commerce, Bureau of Census. 1939-1977: Economic
Report of the President, J anuary 1978. Washington, D.C, U.S. Government Printing
Office.
15
worth of transactions by wire."
1
The so-called balance o payments is
in reality "a form of credit that is extended"
2
by central banks and
manipulated by them in violation of the Constitution. The wire
transactions include not only central banks but commercial multi-
national banks as well. Of course, this figure does not represent pure
profit, but total transactions. But the volume alone indicates that
huge amounts of money were made out of these transactions.
Until we rid ourselves of this private money monster and its
fellow vampire commercial banks, our nation will continue to
flounder in a monetary mess. It is up to the citizens to inform
themselves of the facts and correct them before we are drawn into
the next step of the monetary noose which is being prepared for us
a credit card system and then a world monetary unit. THIS
MUST BE AVOIDED AT ALL COSTS. And don't forget possible
devaluation of the dollar by giving you, the sucker, one new dollar
for every ten or twenty Federal Reserve Notes (or bank credits) you
now have. The same scenario has been repeated by the Socialist-
Communist bankers in many countries. Now its our turn. It can only
be prevented if enough aroused Americans can regain control over
those who supposedly represent us and vote in a Constitutional
money system.
"If all the bank loans were paid, no one would have a bank deposit
and there would not be a dollar of coin or currency in circulation.
This is a staggering thought. We are completely dependent on the
commercial banks. Someone has to borrow every dollar we have in
circulation, cash or credit If the banks create ample synthetic (bank
credit) money, we are prosperous; if not, we starve. We are
absolutely without a permanent money system. When one gets a
complete grasp of the picture, the tragic absurdity of
1
Hearings before the Committee on Banking and Currency, House of
Representatives, 93rd Congress, H.R. 10265, Oct. 2 & 3, 1973, p. 123.
2
lbid., p. 122.
16
our hopeless position is almost incredible, but there it is. It (the
private credit money monopoly) 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 soon."
1

THE BOARD OF GOVERNORS
In 1921 the General Accounting Office (GAO) was created with
audit authority over the receipt, disbursement and application of
public funds. From 1921 to 1933 the Board of Governors, but not the
Federal Reserve Banks, came under the GAO's scrutiny. In 1933
Congress voted to remove the Board of Governors from the
jurisdiction of the GAO. This left the Board of Governors to "the
determination of its own internal management policies." It was
alleged that non-interference (by the government or banking
committees) would provide better monetary and credit policies.
Better monetary and credit policies for whom? Certainly not the
long-suffering American taxpayers who have footed the bills for this
unholy counterfeiting agency.
The Board of Governors has broad powers which include the
internal management of the entire Federal Reserve System,
regulation of reserve requirements for member banks and control of
interest rates and margin requirements for the stock market. It also
determines fiscal policy for the entire nation by manipulating the
nation's money supply through the purchase and sale of government
bonds and securities. It also supervises Open Market Committee
activities and selects the dealers who will be privileged to deal in the
highly-profitable U.S. government bond market.
It might interest many readers to learn the identity of the top
thirty five dealers, of which over twenty are in New York City. The
rest are scattered throughout the country in financialcenters.
1
From Senate Document No. 23, page 102, J anuary 24, 1939. Robert H. Hemphill, 8
yrs. Credit Manager of the Federal Reserve Bank in Atlanta.
17
LIST OF THE GOVERNMENT SECURITIES DEALERS
REPORTING TO THE MARKET STATISTICS DIVISION OF
THE FEDERAL RESERVE BANK OF NEW YORK
Bache Halsey Stuart Shields, Inc.
Bank of America NT & SA
Bankers Trust Company
A.G. Becker Incorporated
Blyth Eastman Dillon Capital Market, Incorporated
Briggs, Schaedle & Co., Inc.
Carroll McEntee & McGinley Incorporated
The Chase Manhattan Bank, N.A.
Chemical Bank
Citibank
Continental Illinois Bank and Trust Co. of Chicago
Crocker National Bank
Discount Corporation of New York
Donaldson Lufkin & J enrette Securities Corp.
The First Boston Corporation
First National Bank of Chicago
First Pennco Securities, Inc.
Goldman, Sachs & Co.
Harris Trust and Savings Bank
E.F. Hutton & Company, Inc.
Aubrey Lanston & Co., Inc.
Lehman Government Securities Incorporated
Merrill Lynch Government Securities, Inc.
Morgan Guaranty Trust Company of New York
Morgan Stanley and Co., Inc.
The Northern Trust Company
Nuveen Government Securities, Inc.
Paine, Webber, J ackson and Curtis, Inc.
Wm.E. Pollock & Co., Inc.
Chas. E. Quincey & Co.
Salomon Brothers
Second District Securities Co., Inc.
Stuart Brothers N.Y. Hanseatic Division
United California Bank
18
Dean Witter Reynolds Incorporated
This money market consists of U.S. Government and Agency
bonds, negotiable Certificates of Deposit, as well as corporate and
municipal bonds, bankers acceptances, etc.
"The government security market is the heart of the money
market."
2

And, believe it or not, the volume in the money market is
between ten and fifteen times greater than that of the stock market.
"If one includes the trading in corporate and municipal bonds,
bankers acceptances, CD's sold directly by banks and other similar
instruments much of which is not centrally reported, the total
money-market volume reaches an estimated $8-10 billion per day."
3

Commercial banks also enjoy the privilege of writing their own
checks against minimal reserves to pay for the securities and bonds
purchased in the money markets. Their customers, however, which
include insurance companies, state and local governments,
corporations and individuals, must pay for these securities and bonds
in earned or borrowed money. Thus we can see how the Reserve
authorities, and to a slightly lesser extent the commercial banks, are
able to underwrite their purchases in the stock and money markets
by writing checks against a fraction of their reserve funds. This is the
side of the securities and money market which is not generally
known by
1
This list has been compiled and made available for statistical purposes only and has
no significance with respect to other relationships between dealers and the Federal
Reserve Bank of New York. Qualification for the reporting list is based on the
achievement and maintenance of reasonable standards and activity. Market
Statistics Division, Federal Reserve Bank of New York, May 16,1978.
2
Martin D. Weiss, The Money Panic, (New York: Latham Process Corp., 1975), p.
38.
3
Ibid., p. 372.
19
the public and the one which the pro-banking elements want
concealed at all costs.
THE OPEN MARKET COMMITTEE
This is the elite group that sets policies for the "purchase and
sale of U.S. Government and Federal agency securities, bankers
acceptances, and foreign exchange."
1

The functions of the Open Market Committee are best summed
up in the opening paragraph of The Federal Reserve and the
American Dollar, Problems and Policies:
"The money of the United States is managed by the Board of
Governors of the Federal Reserve System and the Federal Open
Market Committee."
2

These men have a virtual monopoly and stranglehold on the
economic well-being of our entire nation. Their policies can make
credit easily available or unavailable, interest rates high or low,
business prosper or stagnate. Every municipality, individual and
business is directly and intimately concerned with the decisions
which are made by this small group of usuror imposters. Their
decisions are not made with any concern for the well-being of our
nation or economy, but for the sole purpose of furthering their
global, collectivist empire building.
The fiscal transactions of the Open Market Committee are so
vast that they make the national debt seem paltry in comparison. The
Audit Hearings of this dictatorial group are most revealing.
Excerpts from the testimony of Gov. George W. Mitchell, Vice-
Chairman, Board of Governors of the Federal Reserve System, and
former House Banking Committee chairman, Wright Patman, are
quoted below:
1
Open Market Operations, by Paul Meek, Federal Reserve Bank of New York,
1973.
2
J ames L. Knipe, The Federal Reserve and the American Dollar, Problems and
Policies, (University of North Carolina Press, 1965).
20
The Chairman: "The Open Market Committee had transactions last
year, I believe it was of $738 billion. In other words, it was between
$2 and $3 billion a day. Somebody made money on that." Mr
Patman added that "the Federal Reserve had at least a trillion dollars
in transactions during that year." (1971).
Mr Mitchell: "Our portfolio is $75 billion. That is what we own in
government securities." (He carefully dodged the other issue.)
1

Mr Mitchell also supplied the following information on the Federal
Reserve Bank of New York. The assets in custody for foreign
official and international accounts were $15.5 billion in earmarked
gold and $55.9 billion in U.S. Treasury securities. The New York
Fed also has a wire service with foreign central banks and in 1972,
according to Mr Mitchell's testimony, there were about $17
TRILLION WORTH OF TRANSACTIONS BY WIRE IN ONE
YEAR.
2

We must never forget that bonds and securities involving billions
are "purchased" in one of the following ways: a) a bond is "rolled
over" or exchanged for another; b) reserves are temporarily reduced
by the purchasing bank; c) a check is written against no funds, e.g.
funds created at the time of the transaction. Or, as Silas Adams in his
Legalized Crime of Banking describes it:
"Banks buy notes and other investment obligations and pay with
new deposits; sell notes and other investment obligations, and take
deposit credits for them. Pay nothing for what they get; get cash for
what they sell."
3

1
Hearings Before the Committee on Banking and Currency: House of
Representatives, H.R. 10265, Oct. 2 & 3, 1973, pp. 116-117.
2
Hearings Before the Committee on Banking and Currency: House or
Representatives, H.R. 10265, Oct 2 & 3, 1973, pp. 116-117.
3
Silas Walter Adams, The Legalized Crime of Banking, (Hawthorne, Ca. 90250,
Omni Publications, 1958)
21
Although the Federal Reserve Bank now possesses stranglehold
power over the American economic scene, it is still seeking more. A
bill was introduced in J uly, 1975, which outlined the plan by the
Federal Reserve Bank for the taking over of all banks and financial
institutions in the nation.
1
This bill would extend the Board's
authority to impose reserve requirements on all depository lending
institutions and thereby control the volume of their lending activity.
This power would extend to all non-member commercial banks,
mutual savings banks, savings and loan associations, and even credit
unions. This bill has not yet passed, but should the Liberty
Amendment become law, passage of this bill would be unnecessary
as the new powers given to the Monetary Authorities under its terms
would incorporate all of these features, plus the added benefits of
international gold and other lending and trading practices.
A great deal of attention has been given to Section I of the
Liberty Amendment because the core of the proposed legislation
rests upon the money question. The following chapters will briefly
review the remaining sections of the Liberty Amendment.
1
Congressional Record, Thursday, J uly 17, 1975, Vol. 121, No. 113, pp.H7024-
7028.
22
Chapter III
A REVIEW OF SECTION II OF THE LIBERTY AMENDMENT
Section II contains a tremendous amount of appeal to people
who are outraged by continual foreign alliances and bondage to
other nations. The vague wording in this section DOES NOT
REPEAL ANY EXISTING TREATY, INCLUDING THE UNITED
NATIONS CHARTER. Therefore, it will have no effect whatsoever
on any currently-existing or future treaties. It is a deceptive trap.
Furthermore, our present crop of social-experiment type "justices"
on the Supreme Court treat treaties as the "Supreme law of the land."
They would, in effect, say that no law or Constitutional Amendment
will supercede treaties.
By what line of reasoning can we believe that those who have
already stretched the Constitution out of shape will suddenly adhere
to it unless, of course, it suited their decision of the moment.
Since our Constitution now declares treaties to be the supreme
law of the land, the section in the Liberty Amendment pertaining to
treaties affecting that Amendment only is redundant. This paragraph
was probably inserted to make it more appealing to many people. Its
phraseology otherwise serves no tangible purpose.
23
Chapter IV
A REVIEW OF SECTION III OF THE LIBER TY AMENDMENT
The primary purpose of the Liberty Amendment has always been
the repeal of the Income Tax Amendment. If this is so, why wasn't it
simply confined to the repeal of the 16th Amendment? Also, the fact
that it would not take effect until three years after passage indicates
that some very important interim activity can be expected in
connection with our money system.
It is the opinion of this writer that the Liberty Amendment has
nothing to do with income taxes. It is a clever maneuver to set the
stage for the next step: a brand new money bill which will "return to
Congress the right to coin and regulate its own money." An updated
"buy back the Federal Reserve Bank" bill will make a much-
heralded debut, backed, no doubt, by some of the most prestigious
conservative organizations in the nation.
Although many people may not be aware of it, the Liberty
Amendment was introduced in Congress as H.R. Res. 23 by J ohn R.
Rarick (D)La., J ohn H. Rousselot (R), Calif., and John G. Schmitz
(R), Calif. Also, while Mr Rarick was still in Congress he introduced
H.R. 17140 in 1970 and the same bill again in 1971 as H.R. 351. The
bills were referred to the Committee on Banking and Currency but
never got out of Committee.
Here is the text of H.R. 17140
91st Congress 2nd Session
H.R. 17140
IN THE HOUSE OF REPRESENTATIVES April 21, 1970
Mr Rarick introduced the following bill, which was referred to the
Committee on Banking and Currency.
24
A BILL
To vest in the Government of the United States the full, absolute,
complete and unconditional ownership of the twelve Federal
Reserve Banks.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That
(a) the Secretary of the Treasury of the United States is hereby
authorized and directed forthwith to purchase the capital stock of the
twelve Federal Reserve Banks and branches, and agencies thereof,
and to pay to the owners thereof the par value of such stock at the
date of purchase.
(b) All member banks of the Federal Reserve System are hereby
required and directed to deliver forthwith to the Treasurer of the
United States, by the execution and delivery of such documents as
may be prescribed by the Secretary of the Treasury, all the stock of
said Federal Reserve Banks owned or controlled by them, together
with all claims of any kind or nature in and to the capital assets of
the said Federal Reserve Banks, it being the intention of this Act to
vest in the Government of the United States the absolute, complete
and unconditional ownership of the said Federal Reserve Banks.
(c) There is hereby authorized to be appropriated, out of any
funds not otherwise appropriated, such sums as may be necessary to
carry out the purpose of this act.
* * * * *
From the wording of this bill it appears that a transfer of stock
will be accomplished, BUT NOTE, the government (taxpayers) will
pick up the tab for "all claims of any kind or nature" and the banks
will be reimbursed on a dollar for dollar basis. Also please note that
there is absolutely no mention in the bill of how money will be
issued, who will have the authority for its issuance, whether or not
bonds will continue to be the basis for our money or whether or not
it will be a debt
25
and interest free money. This bill is obviously so incomplete that its
contents would be supplemented and implemented by hand-picked
and subservient legislative aids in Congress.
I am not questioning the sincerity of the sponsors of the bill,
including ex-Congressman Rarick. Many of his supporters are
untrained in the devious propaganda surrounding money problems
and the pitfalls contained in its seemingly beguiling language. The
Voorhis Bill, H.R. 8209, of J anuary, 1940, had similarities to the
Rarick Bill. These bills would do away with the Federal Reserve
Bank in name only. Money issuance would not be nationalized, but
would assure the super Capitalist-Socialists, who are presently
manipulating our money and economy, a continuation of their
exploitive global financial plunder. Can anyone be so naive as to
imagine that with victory in sight, and Congress under its total
control, that a bill (which would no doubt pass) would change things
for the better (for the citizen, that is!)? We must be more wary now
than ever for traps to be set which will ensnare us even further into
the global dictatorship which is presently nearing completion.
This should prove that the "Buy Back the Federal Reserve Bank"
bills are the real objective for the smoke screen raised by the Liberty
Amendment Committee. During the three year period, Conservatives
will believe they have achieved a victory and attention will be
diverted from the "new" (non)con-stitution which the planners hope
to put into effect. It will provide for income taxes. TAXPAYERS,
BEWARE!
26
Chapter V
J ERRY VOORHIS AND HIS MONEY BILLS
Since J erry Voorhis has played an important role both in
Congress and on the legislative scene, let's take a closer look at this
man in order to determine his qualifications for introducing a
money-reform bill.
The former Congressman from California has been regarded by
many as a staunch conservative, especially by supporters of money
reform. From 1939-1941 he was a member of the House Committee
on Un-American Activities. BUT: he was listed as an official of the
United World Federalists in their 1951 World Government
Highlights publication. A New York Times ad dated November 15,
1957, carried a full page advertisement by the National Committee
for a Sane Nuclear Policy. J erry Voorhis was listed as a signer.
In the official Communist journal, Political Affairs, May 1958
issue, Herbert Aptheker, in his column, Ideas of Our Times, praised
Voorhis for having supplied leadership in the drive to end U.S.
nuclear testing.
The New York Times, in its issue of September 17, 1959, carried
a full page advertisement "WE SUPPORT PRESIDENT
EISENHOWER'S INVITATION TO PREMIER KRUSHCHEV."
Voorhis was listed as a signer along with Norman Thomas, Steve
Allen, Mrs Eleanor Roosevelt and the late Rev. Martin Luther King.
The Tom Mooney Committee, a successor to the American
League for Peace and Democracy, listed the Hon. Jerry Voorhis as a
committee member. The Tom Mooney Committee was cited as a
Communist front on page 130 of the Guide to Subversive
Organizations and Publications, House Document No. 398, 87th
Congress, 2nd Session, prepared by the Committee on Un-American
Activities of the House of Representatives (1957).
In passing, it might be interesting to note that Mr Voorhis did not
go along with Wright Patman in his attempt to get an audit of the
Federal Reserve Bank in 1974.
This same J erry Voorhis trotted out two "Buy Back the
27
Federal Reserve" money bills. The first, H.R. 8209, in J anuary 1940,
and H.R. 118, in J anuary of 1943. Sec. 1 (a) of H.R. 118 provided
that:
The Secretary of the Treasury of the United States is hereby
authorized and directed forthwith to purchase from the member
banks the capital stock of the twelve Federal Reserve Banks and
branches, and agencies thereof, and to pay to such member banks in
lawful money or deposits in a Federal Reserve Bank the amount paid
by them for such stock ..."
This bill would have created a Monetary Authority which would
exercise absolute control over all banks and financial institutions in
the nation. Power to issue money would be vested exclusively in the
Monetary Authority (not Congress) which could also engage in
international gold transactions, as well as the purchase, sale and
redemption of United States government bonds. It also gave the
Monetary Authority the right to select members from the Board of
Governors of the Federal Reserve System for its staff.
With a Monetary Authority possessing even more awesome
powers than the Board of Governors now has, it makes little
difference who owns the stock of the Federal Reserve System. This
bill would have frozen the Monetary Authorities into a position of
absolute power over Congress and the Nation. It also would continue
the same old debt-money system by inserting the provision for bond
dealings by the Monetary Authority. In other words, the government
would still be borrowing its money and credit from a monetary
monster which would now be housed in the Treasury Department.
Their operations would be the same as the Open Market Committee
under a different name.
We might as well ask, what would a dedicated internationalist
like Mr Voorhis be doing sponsoring a "money reform bill"? Can we
believe that a man with such questionable connections would be
qualified as the person most likely to sponsor a TRUE money-
reform bill, or would we be more correct in assuming that his
loyalties remained with the same interests he had always served? In
cases like this, actions speak louder than
28
words, especially when the words are deliberately ambiguous and
intended to achieve just the opposite results to what trusting and
propagandized supporters would imagine.
We must be continually on guard for trickery, double talk,
double think and double cross in legislative phraseology since lies
and deception have always been one of the primary tools in the
arsenal of the global slavemakers.
29
Chapter VI
COMPANION LEGISLATION
We can see that it would be meaningless to repeal the Income
Tax Amendment without settling the problem of the Federal Reserve
System and money issuance. Therefore, we should expect that
companion legislation will shortly be re-introduced another "Buy
Back the Federal Reserve" bill which will generously reimburse all
the member banks for whatever government securities they have by
reissuing new ones on a dollar for dollar basis with whatever type of
money is to be used. You may be sure that the bankers won't lose a
dime on the deal. But you, the taxpayer, will lose everything; your
savings, your life insurance, your property and eventually perhaps
even your life.
Now if the purpose of such legislation were to let the citizen
have an honest money system, we would all approve. Be assured,
however, that the deception will continue and very few people will
understand or be aware of the nature of the "new money bill." This
bill will probably receive the highest acclaim and support from many
prestigious conservative organizations. On the basis of people's
previous loyalty and support for these organizations, thousands will
work long and hard for the passage of what may very well be their
passport into the concentration camp of economic slavery.
In order to properly assess the merits of any proposed "money-
reform bills", it will be necessary to have certain standards by which
they should be judged. The following chapter will briefly review the
pertinent aspects which must be known so that we will know what
pitfalls to avoid and to be able to properly assess the factors
necessary in the eventual establishment of a really new, and truly
honest money system.
30
Chapter VII
A BRIEF ANALYSIS OF THE MONEY BILLS
We have briefly reviewed several "money-reform" bills which
have been submitted to Congress from time to time. A startling
similarity among them is the feature which provides for "buying
back the stock of the Federal Reserve Bank." Since no part of this
stock is owned by the U.S. Government, something obviously can't
be bought back which is not now, and never has been owned. No
part of the Federal Reserve System is owned by the government. At
first a class C stock was intended for purchase by the government
but this option was never exercised. So we can see that the "buy
back the stock" phrase is merely the first in a series of psychological
entrapments.
We cannot "buy back" the class A stock and we certainly
shouldn't buy any of the rest, even if we could. It would be the most
hideous crime in the history of mankind for the American taxpayer
to reimburse these bandit institutions which acquired their wealth
and power through their trick money manipulation and credit
creations.. The Federal Reserve System should be
NATIONALIZED, including ALL CLASSES OF STOCK, whether
the stockholders are known or not known, and all of its assets
confiscated. Yet, these money bills would ask the exploited
American taxpayer to reimburse these robber barons who have been
exploiting the American public out of literally trillions of dollars for
decades and then let them continue their operations under another
name.
True nationalization will be exactly what we mean it to be:
OUTRIGHT OWNERSHIP AND CONTROL by the government of
the money and credit-creating power. This is what nationalization
usually means in other industries and countries. Usually, that is! In
the case of banking, however, we must exercise extreme caution
because in this area, nothing ever is what it seems to be.
For example, the Bank of England was "nationalized" in 1947.
Since that time the purchasing power of the pound sterling has been
reduced by over 75%, and England is beset by many economic
problems. What deceived the people is the
31
belief that the "nationalization" of the bank gave the government
control. Clearly, this did not happen. Again, we must be aware of the
clever use of upside-down semantics. The British people do not own
their money-creating machine. "Nationalization" meant that the
treacherous bankers moved right into government premises and
continued to tighten their control over the people, their property and
the nation. Now the bankers reign supreme and have brought
England to the exact point of economic chaos where they may now
demand "a new money system;" an international one. This was their
goal all along. The same thing will happen here IF WE PERMIT IT.
Many things are happening on the international monetary scene
which spell more disasters ahead for the dollar. In J anuary of 1979
Europe adopted its new monetary unit, the ECU, or European
Currency Unit, which will be backed to some extent by gold. It will
also serve as a form of international currency and be acceptable not
only in international settlements, but later it may well be as readily
acceptable in Ireland as in Germany. This portends for an
international currency, but what will happen to the dollar meanwhile.
You may be sure that those bankers who have brought the United
States deliberately into semi-pauperism will continue their present
course of totally wrecking our currency and economy. Unless we
replace the present Congress with sane people, our future looks
bleak indeed.
We must remember that the Marxist bankers use reverse
psychology. Their revolution is aimed at overthrowing the people of
a nation. True, some governments have been overthrown in the past
by their highly financed "hit men", but most have been slyly
infiltrated and have been under banker control for generations. Who
else would have the power and finances available to organize global
wars and mercilessly slaughter millions of innocent victims for years
after the government has been "overthrown." After the Russian
Revolution, and long after the Czar's government had been removed,
citizens were slaughtered mercilessly for many years. Why? If the
purpose of the revolution was the overthrow of the government, this
had been accomplished. The same thing is planned for the United
States.
32
We do not want a Bank of England situation here. We want true
nationalization which means that the bankers WILL BE THROWN
OUT FOREVER. The people, through new and reliable
representatives, will see that OUR MONEY AND CREDIT is issued
by OUR GOVERNMENT, debt and interest free, and in sufficient
amounts so that recessions, depressions and inflation can never
occur again.
In the discussions of the stock sale in these bills, the specific
class of stock has never been classified, clarified or discussed. The
Voorhis-Rarick type bill would simply install a Bank of England
system in the United States. This is the "alternative" being proposed
to the Federal Reserve System. The only honest and effective
solution to our debt money problem is to REPEAL, RESCIND AND
REVOKE THE FEDERAL RESERVE ACT AND ALL OF ITS
SUBSEQUENT AMENDMENTS AND NATIONALIZE ALL OF
ITS ASSETS. Have you seen a bill yet which has proposed this
totally honest approach?
NO CONSTITUTIONAL AMENDMENT IS NECESSARY
A Constitutional Amendment is not necessary to rid ourselves of
the Federal Reserve System. This can be done by an Act of
Congress, simply by a majority vote in both houses. At the present
time there is probably not one person in the entire government who
has the courage or intelligence to propose such legislation for
consideration. Even if such a person existed, the proposal would be
bottled up in Committee.
Often the argument is used that you can't trust politicians with
money management. Fact number 1. Our politicians now are "in the
hip pocket" of the bankers and represent their interests totally and
completely. If we had an honest money system, no politician would
be able to cater to bankers' interests as their power would have been
permanently dismantled.
It has also been said that with government issuing the money,
inflation would be rampant. What is it now with bankers controlling
the issuance of money? How about the German inflation of the '20's,
a classic example of wild inflation? The United States may now be
headed in the same
33
direction under banker control. With our present system of debt
money, we can never eliminate inflation because there is never
enough money to pay the interest. The principal is loaned into
existence. To pay back the interest, more loans must be forthcoming
in a continuing cycle. The banks contribute to inflation each time
they buy government bonds and pay for them by bookkeeping entry.
The volume of these transactions is fantastic. For example, in
November of 1975 the commercial banking system increased this
type of asset over $12 billion in one month alone. These bonds do
not represent goods and services that entered into the stream of our
economy. This is one of the primary causes for the continued rise in
prices. One of the most fundamental rules for a sound money system
is that the volume of money should be equal to the amount of goods
and services produced in a nation. Contrary to what establishment
economists tell us, inflation is not caused because government prints
more and more money. As we have seen, paper money is but a
fraction of our money supply. Inflation is caused by our present
money system which permits bankers to create figures or bank
credits at an accelerating rate. As the over-all debt goes up, so does
the interest. Eventually the interest will smother us and we will have
no money. Rather than an oversupply of money, we really have a
scarcity of money. The average taxpayer now works almost six
months just to keep up with federal and local taxes. Therefore, he
has less money to spend. Not more. Here is just another example of
where the government spokesmen and their henchmen lie to the
public.
In order to get an honest money bill enacted, millions of
Americans must begin to unscramble their thinking on the subject of
money and KNOW WHAT FACTORS MUST BE PRESENT in
order to achieve an honest, debt-free money system. They will then
exert enough pressure on Congress so that the present batch of
banker-agent traitors will tremble before the angry roar of an
aroused and enraged public.
Another factor to consider in this hodgepodge of confusion is
the proposed New Constitution which the Center for the Study of
Democratic Institutions of Santa Barbara has prepared for our
nation. This document is the blueprint for tyranny
34
which would reduce our free citizens to the status of slavery. This
"Constitution" divides the former United States into what is termed
"Republics" on a population basis. Presumably, the former states,
which have already been illegally and unconstitutionally
regionalized by executive order, will form the basis for the territorial
divisions.
A draft of this proposed constitution appeared in the Center
Magazine, September-October 1970 issue.
1
It is interesting to note
that only a few brief lines are devoted to the all-important subject of
money. The references to money are quoted as follows:
"The United Republics [former states] . . .
Art. I, Sec. 11, .... may not coin money, provided for the payment of
debts in any but legal tender ..." [legal tender not defined.]
Art. IV, Sec. 3, "The Chancellor of Financial Affairs shall supervise
the nations' monetary system and regulate its capital markets and
credit-issuing institutions as they may be established by law, and
THIS SHALL INCLUDE LENDING INSTITUTIONS FOR
OPERATIONS IN OTHER NATIONS OR IN COOPERATION
WITH THEM, EXCEPT THAT TREATIES MAY DETERMINE
THEIR PURPOSES AND STANDARDS." (Emphasis added).
There is not one other word in the "new constitution" on the
subject of money. Do these two paragraphs mention the right of the
people's representatives (e.g. Congress) to issue the nations' money
and credit? Of course not. This is the final coup that the bankers
have been waiting for. The absolute, unchallenged control over our
nation's entire assets without any
1
Copies of this Constitution may be obtained from The Center for the Study of
Democratic Institutions, P.O. Box 4068, Santa Barbara, CA 93103, Phone: (805)
969-3281. ($2.00 postpaid).
35
restraining factors on the Chancellor of Financial Affairs. This is
exactly the type of money system we are going to get and the
next money bill will be one of the final steps in the direction of the
goal outlined in the "new constitution," unless we stop it.
ABOUT THE INCOME TAX
Lest we wonder whether or not income taxes will disappear in
the brave new world the bankers have planned for us. IT APPEARS
THAT ABOUT THE ONLY SOURCE OF REVENUE for the
United Republics is indicated as follows:
Art. V: B Sec. 9 (l)c. "Except for corporate levies to be held in the
National Sharing Fund, hereinafter authorized, may be collected
ONLY FROM INDIVIDUALS AND ONLY FROM INCOMES: but
there may be withholdings from current incomes."
This is a direct quote from the non-constitution that the Center
for the Study of Democratic Institutions has drawn up for us and the
very same non-constitution which the trained seals now want to
adopt through a Constitutional Convention. There is no mention
about bond and gold dealings by the monetary authorities. The
continuation of a debt-money system seems assured by this non-
constitution.
Our enemies are becoming ever more arrogant and tyrannical as
they scent the nearness of victory. If we are to survive the critical
months and years ahead, we must be ruthlessly discerning of every
action not only of our enemies, because we know what they are
doing, but of our friends. Every war has its traitors and spies. This
one is no exception. We must also analyze any proposed legislation
in the light of its probable effects on our nation, our lives and our
future. Often people or organizations will appear to be dedicated
patriots. Some, to be sure, are sincere. Some may be misguided. For
this we cannot excuse them as too much is at stake. Others may have
been placed in conservative organizations for the purpose of achiev-
ing "one shot legislation." False remedies will be proposed and
36
often it may be difficult for us to determine what person, bill or
organization to support. In cases like this it might be wise to observe
the programs or people within the conservative movement who are
being ignored or ridiculed. When this ridicule extends into the realm
of the money problem, we must be very wary. The very ones who
are most criticized may be the ones with the right answer. But again,
we must emphasize that free discussion is imperative and all aspects
of the problem should be considered.
If we sharpen our wits, and dust off our thinking capacity so that
we react less to slogans (even our own) and search for truth, we may
yet emerge with a program for victory.
Conservative and anti-Communist organizations have had a very
dismal record of success. Hundreds, perhaps thousands have come
and gone. A few remain. Most are beset with the problems of a small
staff, inadequate funds and an adverse media. Majority America has
been dispossessed of control over our nation and our own destinies
by cunning and hostile alien enemies who have ascended to the
pinnacles of power. Their success would not have occurred,
however, without the treacherous cooperation of racial traitors, who
betrayed their own people for wealth, prestige and positions of
power. This fact alone should alert us to the fact that the enemy
works in every area, including anti-Communist organizations.
Tax protest groups have had their share of infiltrators and spies.
Many other organizations have also been infiltrated by disruptors
who have sown seeds of dissention and confusion.
How then, will we be able to indentify a truly dangerous bill or
policy, especially when it may be sponsored by one or more
organizations which many conservatives know and trust? The
answer is not easy. However, we must remember that we are fighting
for our very lives. Every utterance, policy and piece of legislation
must be judged on the basis of its contents and its ultimate effect on
majority America, the potential victims.
Learn the art of propaganda. Put yourselves in the place of the
adversary and imagine how you would try to convince the public on
a particular point. Certainly truth is the last thing you would ever tell
people. The unfortunate fact is that the whole diabolical program
must be made to look so celestial that
37
millions will crowd into your movement to create this politically-
contrived utopia. You must view every piece of literature or
legislation as a trap which will weave a noose around your neck.
Carefully extract the key points and analyze them in reverse.
Remember that the enemy thinks upside down. When you are able to
master this technique, you will be nearer to the real facts. Discuss
the topic with friends. Analyze every possible effect a bill or
proposal could have on your life and property. Never assume for a
single moment that anything is meant for your benefit. The chaotic
events of today are like a jigsaw puzzle but the power elite knows
exactly how the total picture will emerge. Their success up to this
point in time has been largely due to the fact that the White race
thinks logically and rationally and not in riddles. Until we
understand the demonic and cunning nature of our enemy, we will
never be able to defeat him. We must not let him continue to control
our lives through the continued control of our thinking.
Most conservative organizations at least pay lip service to the
concept of freedom of speech. Now is their chance to put this
principle into practice. Disagreements and contrary opinions should
be published and discussed in an objective manner. If analysis is not
permitted on ideas, BEWARE. Unless we have conflicting opinions
and open discussion, we can never hope to know the truth. We need
not agree on everything. We shouldn't. However, open discussion is
good for everybody. We all learn this way and it enables us to share
in both agreements and disagreements. Too often, however, only one
point of view is permitted and others are silenced. An example is the
gold standard. Gold advocates raise their eyes in a haughty stare and
curl up like a cobra about to strike when a constitutional issuance of
money without gold is advocated. No discussion is permitted. The
answer is adamant and certain. We MUST have gold like God. It
is a settled fact. Disagreement is not permitted. Why not let those
who realize that gold is not a necessary ingredient to a sound money
system have a forum? They should be permitted to present their
views whether anyone agrees or not. The gold standard, in its
variations, has served the bankers well. The fact that it is not needed
is shown by a gradaul turning from commodity money to an eventual
cashless society.
38
Among the, many fallacies to which mankind has been exposed,
none in the economic realm has been more misleading than the
notion that our money must be backed by gold or convertible into
that particular metal. Arthur Kitson, in his book A Fraudulent
Standard
1
, said that the "gold standard is a legalized fraud, a delusion
and a snare." From the dawn of civilization man has used some form
of exchange. Money has consisted of many things, including shells
wampum, cattle, talley sticks, clay tablets, tobacco, coins of various
metals and many kinds of bills of exchange. As far back as the
Babylonian period, receipts were issued for coins and other
valuables which were stored in the temple vaults. This was the
beginning of the fractional reserve banking system. These shekels
were the only contribution the religious pirates of the day would
accept. Shekels were issued in greater amounts than the goods stored
in the temple. As a result, those who controlled the money became
rich and powerful and able to control the fortunes of kings. Christ
himself regarded them with contempt and chased the money
changers out of the temple.
When the fractional reserve system was reintroduced by the
goldsmiths in the middle ages, the same practices were followed.
Occasionally runs on the goldsmith - bankers occurred when there
was insufficient species to redeem the receipts. This usually led to
the demise of that particular goldsmith, but it did not stop the
practice. Had the money been issued by the king and not borrowed
from private bankers, such ridiculous practices as fractional reserve
banking (or the issuance of money against non-existent gold) would
never have developed. Yet today millions of people believe that gold
bars in a bank vault gives their money value. This is patently untrue
as we shall shortly see. Logic indicates that only a small portion of
the population will be able to redeem the gold that mostly isn't there.
This effectively strips the group of citizens who don t hold the
winning receipts of their wealth. Is this fair? Why should only 10, or
maybe 25% of the people be permitted to
1
Arthur Kitson, A Fraudulent Standard, Hawthorne, Ca., Omni
Publications, 1971, p. 90.
39
hold "non fiat" money (e.g. paper convertible to gold)? Do you
imagine that under our present banking system, any other than the
insiders would ever get their hands on the gold anyway?
The argument is now being advanced that since our paper money
is becoming worthless, value is to be found in gold and silver coins
or bullion. It is precisely this fractional, inflatable, collapsible,
privately-owned unstable monetary system which has enabled the
manipulators to reduce the value of our money to a fraction of its
former value. Hiding gold or silver coins for an emergency is hardly
the solution for a system which has brought misery and monetary
collapse to nation after nation for centuries.
Gold has always been a commodity close to the bankers' hearts.
The stabilized exchange is the dream of bankers, and this is the
reason the gold standard had been used. In a free market economy
there will be occasional imbalances, but these will be largely self-
correcting. Under the rigid gold standard rule the exchange rate
remains stable but it results in internal price fluctuations. It is an
artificial pegging which may have no relationship to the value of the
money in a given country.
Another problem with the gold exchange standard is that its
prices are controlled by those who run the foreign exchanges and
United Nations banks. In this way, a small group can move gold
from country to country. Since the gold window was "slammed shut"
in 1971 by President Nixon on behalf of the bankers, we have seen
the dollar slide. Yet some currencies have risen in value. We are told
that this is because we are running a trade deficit and the "hard
currencies" are backed by gold. If immediate cessation of foreign aid
occurred and a halt to the bankers literally giving billions to
bankrupt backward nations, there would be no trade deficit. Without
the trade deficit, we would not need to convert the dollar into gold
for the Arabs, or anybody else.
It is the opinion if this author that the dollar attack has been
deliberate, and the complete collapse is what the bankers have
wanted all along. The only way to prevent this disaster is to legislate
them out of existence and return our money issuing power to
Congress. This also pertains to the control of foreign trade. It is
illegal for the government to permit private
40
international banks to violate the Constitution by allowing them to
control foreign trade.
In reviewing the problems which gold has wrought on the world,
we must not forget that its so-called universal economic supremacy
comes almost entirely from the nations which have compelled its use
through legislation. That the gold standard prevents panics is also
not true. For example, England, "The Panic of 1847 was stopped by
suspending gold payments and permitting the Bank to issue
inconvertible notes."
1
The general public doesn't care for gold as
long as their paper money serves its purpose. When gold is sought
for as a refuge, it is entirely due to our idiotic money system and the
actions of the bankers.
The two historical examples which are always pulled out to
illustrate the orthodox view of inflation due to lack of specie banking
are the French assignats and the Greenbacks issued during the Civil
War. These currencies were created during great national
emergencies to carry on those respective wars. These "cheap paper
monies" enabled both France and the United States to win their wars.
It may be of interest to note that no modern wars have been fought
on a gold currency basis.
Francis Walker, a well-known American economist has said:
"The so-called greenbacks of the American Civil War never, from
1862 to the close of 1878, lost their currency value in the smallest
degree. At their price they were always taken readily, eagerly. Men
never thought to avoid their use by taking gold at a premium, or by
resorting to barter or credit."
The real reason Americans suffered the industrial ills which
followed the Civil War was due to the attempt to bring all currency
to a gold and silver basis. The exception clause, passed by a
subservient Congress at the behest of the bankers, refused to accept
this money in payment for duties or taxes. This was the real crime.
Every dollar the bankers had invested in the war
1
Arthur Kitson, A Fraudulent Standard, Hawthorne, Ca., Omni
Publications, 1972.
41
loans grew to as much as five or six dollars later. They grew rich
while the country grew poor. The national currency was destroyed
and the public again had to resort to the old trick of borrowing its
credits from the bankers at from 7 to 10% interest.
Re government borrowing: If the bankers are willing to issue
their own credit to purchase government bonds, is there any reason
why the government can't use its own credit for carrying on its
necessary functions?
Foreign trade: In settling foreign accounts one must pay in the
medium that is acceptable to that country. This may be gold, goods,
securities or services. However, when a country has been
prefinanced in its development, and given billions in the form of
foreign aid, bank loans and technology, the balance scale of the
donor country should be that of creditor not the reverse as we
now see.
The gold standard: A nation whose money is used as the
international medium of exchange (fulcrum currency, as the dollar)
stands at a disadvantage with all other nations with whom it trades.
When foreign trade is merely an exchange of surplus products for
those of other nations, no problem arises. The gold standard
substitutes trade for competition and a scramble for gold or dollars
exchangeable into gold. Since, for many years, Americans were not
permitted to own gold, it put our country at a double disadvantage.
When gold is exported, the rival country is able to affect our
domestic prices, causing them to rise. This, in turn, produces a
decrease in domestic production and a depression. If, for example,
America exchanges an equal amount of tobacco for English woolen
goods, there is no competition. However, through the export of gold,
the rival country produces items which we also produce, the result is
fierce competition. Then cries for protective tariffs result.
The remedy: According to the United States Constitution,
Article I, Section 8, Congress "shall have the power to regulate
commerce with foreign nations." This clearly points out that the law
denies to private bankers such powers as they have now usurped in
the realm of adjusting trade balances. But the bankers are persistent,
and over a period of years were able to
42
consolidate their power to such an extent that by 1931 the Bank of
International Settlements was established. During the Bretton
Woods, N.H. conferences in 1944, two more international banks
were established; the IMF (International Monetary Fund) and the
World Bank (International Bank for Reconstruction and
Development). These institutions opened their doors for business in
1946. The alleged purpose of these institutions was "to establish and
maintain exchange stability among currencies, and to promote and
facilitate the expansion of world economic activity and trade." One
of the key aspects of this whole operation was to adopt the dollar as
a "reserve currency" which would be used by other nations to settle
their international obligations. At that time, the dollar was convert-
ible into gold at $35 per ounce. This was the beginning of a long-
term assault on the dollar which is now reaching its final climax.
To add insult to the dollar, the multi-billion dollar foreign aid
program was implemented and many of the huge American-based
corporations began to expand into other countries. Many of the large
i banks also opened branches all around the world. The Chase
Manhattan Bank of New York, for example, has over sixty branches
in different countries. Most of the huge corporations have bankers on
their board of directors, and often very favorable loan terms with
low rates of interest were granted for the building of factories and
development of resources in various nations. For several decades the
earnings from these sources made Wall Street very happy as the
income from these facilities were reflected in higher earnings.
However, this did not help to improve our international liquidity
position but it was a bonanza for the banking circles. Excess dollars
could be converted into gold and then sold at un-pegged prices for
substantial profits. With all that money going out of the country, is it
any wonder the banker-created balance of payments gimmick
showed a deficit in the account of the United States.
Our entire foreign trade policy has been handled by America's
enemies and for the benefit of Communist countries. The dollar
should never have been used as a fulcrum currency. It is domestic
money and should not have been converted into
43
an international convertible currency. The foreign aid racket and all
the other methods used to separate the American taxpayer from his
money are paying off very well for the banking crowd, but poorly
for Mr and Mrs Citizen.
There were a few half-hearted attempts to curb the outflow of
dollars, but never any which would solve the basic problem of an
unsound, privately-owned money issuance monopoly. In 1963 the
Interest Equalization Tax on foreign securities sold in the United
States was passed. Also the Voluntary Credit Restraint Program was
begun to encourage U.S. financial institutions from limiting their
capital outflow. In 1968 the Foreign Direct Investment Program was
instituted making some of the foreign investment curbs that had
previously been voluntary now mandatory.
In 1970 SDR's (Special Drawing Rights) were made to members
of the IMF. SDR's were l/35th of an ounce of gold, then equivalent
to one dollar each, but they were not convertible into gold.
President Nixon "closed the gold window" in 1971. Now the
Treasury refused to redeem in gold any foreign-held dollars. This
would tend to bring international trade more in line with simple
barter, or an exchange of surplus supplies. The paper money would
not be acceptable in another country. Under these circumstances, if
differences in balances were settled in gold, it would not affect the
national currency rates. Under the international gold-standard
system, only the international banking houses are the beneficiaries.
It might be pointed out that even gold might, under certain
circumstances, be considered a fiat currency. Even now, gold coins
of one nation are not acceptable in another nation. They must first be
melted down and given new inscriptions and values. The value of
the gold in the coin fluctuates with the market. Its commodity value
should have no relation to the unit of monetary value. Also, for a
commodity (as gold or silver) to be a measure of value for money is
patently foolish as the prices of all commodities fluctuate. In the
case of gold, its demand (or value) is largely determined by the
international banking houses who manipulate its demand, and by the
national governments who put legal tender laws into effect. This
forces the nation to
44
accept a gold piece as a certain stipulated value of "money." In the
United States, for many years, gold circulated equally with paper
and everyone willingly accepted the paper. This attests to the value
of a paper currency. As mentioned earlier, the reason paper
currencies deteriorate in value has nothing to do with papers as
acceptable medium of exchange, but is due to artificial devaluation
through the manipulation by the bankers.
If all nations are forced to accept a single international trade
standard, it will weaken the strong and strengthen the weak. In other
words, the United States, through its foolish foreign policy, has
subsidized most of the world for decades. It has given away its
valuable technology, built vast industries in other nations, extended
huge multi-billion bank loans, sent experts to teach foreigners to
compete with us and added the insult of more billions in foreign aid.
Now that many nations are on an equal footing with us
technologically speaking, an attack is made on our dollar, and direct
competition with our domestic industry occurs. The net result is the
weakening of our nation to the extent that we now have lost our
number one standard of living and are number five or six. Do we
want to sink even lower? Isn't it about time that our own self interest
propels us to rid oursleves of the system which is enslaving us and
robbing us of our heritage?
These beneficiaries of our largess now undersell us in our own
markets and our government treasonously grants them even more
benefits, while hobnailing our own industry under some silly guise
of ecology, restrictive regulations and outlandish taxes. No banker
was ever concerned with human rights. That is a ruse to grab all
peoples' rights through the confiscation of property and freedom.
Bankers operate in devious ways and we must not be fooled by
rhetoric. Our government has no interest in the welfare of any
American, black or white. They play politics and adopt different
"special interest groups" from time to time to play off against each
other. These are political traps which will eventually work to the
detriment of everyone.
Our businessmen operate under most difficult conditions. Tax
laws, depreciaten and every angle government can turn against them,
is used to promote the foreign market and stifle our own. Until we
realize this, and replace those legislators who
45
are responsible, our nation will continue to slide downhill while the
world looks on and laughs.
The loss of trade supremacy is not due to any lack of genius or
inventiveness on the part of the Americans. It is due solely to
government interference which has been masterminded by the
banking clique. Our nation has been operated for the benefit of the
bankers for generations while the industrial community is ignored.
Degeneration of a nation can only be avoided if the government will
consider its own self interests first and always. It is treason to
downgrade our own and hobble it with impossible restrictions, while
allowing millions of hostile immigrants to enter our nation, and add
more millions to be put on welfare rolls to further tax the productive
citizen. This is the program of the Marxist billionaires who know
only how to ruin not build. But this is hardly the program of
progress and prosperity. We must change all this and we must begin
by rational thinking.
Never mentioned by many books on money is the fact that
England had a successful economy for about 700 years by using
talleys (or matching pieces of wood). There was never a shortage of
money during this period and never a depression. Why was its use
discontinued? Simply because the system wasn't extended or
updated when the industrial revolution commenced. Also to be
remembered is the fact that the Bank of England made its debut in
1694 and this effectively transferred the money-creating power from
the crown into private hands which outlawed the talley system.
You may be sure that a new money bill will be presented within
the next year or so. It should be analyzed, picked apart, discussed
and criticized by many analysts. Comments should be solicited and
welcomed. Also study the sponsorship of any bill. With the present
crop of idiots in Congress you may be sure that if it gets support
from the majority - IT IS A TRAP. This is why we must be
fanatically cautious of everything, including people and
organizations.
Since the whole illicit Capitalist-Socialist empire rests on money
control, be assured that a really good money bill won't be found,
regardless of how many in Congress support it, unless
46
America first wakes up to the truth and forces them to enact an
honest money system. With an impending worthless dollar and
multiple bank crashes facing us, it's about time we, the people, take
matters into our own hands and force the issue. We must know how
to erect a sensible, Constitutional money system and demand that it
be adopted into law.
47
Chapter VIII
THE NEW MONEY SYSTEM
The entire Capitalist-Socialist empire has been built on the
issuance and control of money. It is therefore imperative that we
understand just what constitutes an honest money system so that
their key tool may be stripped from them. The only good money
system is one which will achieve a stable dollar, eliminate the
income tax, the national debt and inflation. Money must be ISSUED
INTO CIRCULATION BY THE GOVERNMENT, INTEREST
AND DEBT FREE. If a money system cannot do all these things, it
is no good and should be opposed by every thinking individual.
Since all of these goals are entirely possible, why should we settle
for anything less?
Here is an example of a money system which will achieve these
goals. We must have all of the following elements. Nothing less will
suffice.
CONSTITUTIONAL MONEY BILL
An Act to establish in the United States of America a Constitutional
debt and interest-free monetary system; to liberate our Government
out of the corporate and money-monopolists' strangle-hold; to
equitably dispose of the National Debt; to eliminate the Income Tax,
and drastically reduce most other taxes; to wipe out inflation, and
halt the ever-tight business of money supply.
Be it enacted by the Senate and the House of Representatives of the
United States of America in Congress assembled, that: This Act may
be cited as the "Constitutional Inflationless Money Act."
Section 1. The Federal Reserve Act of 1913 and all subsequent
amendments, related codes and regulations are rescinded, revoked,
repealed and declared null and void, including the Open Market
Committee and all its operations.
48
Section 2. All private individuals, banking and financial institutions
and other entities are henceforth prohibited from creating Money or
money credits in any form. All fractional reserve banking is
prohibited.
Section 3. All assets of the Federal Reserve Banks, including the
gold, shall be nationalized and become the property of the U.S.
Treasury Department.
Section 4. As delegated in Article I, Section 8, Clause 5, of the
United States Constitution, Congress shall commence to issue, create
and provide Constitutional, National Debt-Free Money and money
credits, for all National requirements; backed by the same elements
as our present United States Bonds.
Section 5. The Congress-issued and created national debt-free funds
shall be used to finance all the National Government's expenditures,
obligations and appropriations in peace and war time.
Section 6. Congress (instead of the banks) shall create and make
available national debt-free funds, with no conditions attached, to the
state and local governments, in the form of long-term, low or no
interest loans or grants; for social and public works such as schools,
hospitals, municipal transit systems, roads and freeways, land, water,
forest conservation, etc.
Section 7. For the encouragement, operation and expansion of all
segments of the Nation's free enterprise economy, Congress (instead
of the banks) shall create and provide adequate national debt-free
funds in the form of self-liquidating loans, including the banks, but
at no preferred rates.
Section 8. The free enterprise banks and money lending and
investment institutions shall be completely free to bid and obtain
their lending and investing funds in the open
49
market, from the general public and also from the United States
Treasury System, as prescribed in Section 7.
Section 9. The people, through Congress, shall establish and regulate
the interest rates of all Congress-created funds, loaned into the free
enterprise economy as self-liquidating loans. The interest charges on
all Congress-created and loaned funds shall be credited into the
general tax revenue fund, for the benefit of all the people; to reduce
or eliminate the Nation's Federal Taxes.
Section 10. Congress shall instruct the Secretary of the Treasury to
remove out of circulation all Federal Reserve Notes currency, by
exchanging it for United States Notes currency, and convert and
coordinate all demand and savings deposits into the Constitutional
monetary aggregates and systems, on a dollar for dollar basis.
Section 11. Constitutional money coordinated, bank credit loan
repayment amounts of funds, may again be used by the banks for re-
lending and investing as prescribed in Section 9. The previously
bank-created funds coordinated into the Constitutional Money
aggregates are then considered as Congress-created and loaned
funds.
Section 12. All the Congress-authorized funds shall be issued or
disbursed through the United States Treasury (sub and mini
treasuries, deputized post offices and banks) System, in modern and
convenient forms.
Section 13. Congress shall instruct the Secretary of the Treasury to
keep an adequate stock of United States Notes currency on hand, and
have it freely available through the Treasury System, to convert
100% of the Constitutional Money credits transferrable by checks,
into United States Notes Currency, if the public shall so demand.
Section 14. Congress, through its power to tax, shall remove out
of circulation and extinguish the excess
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Government expenditure and appropriation funds, after they have
accomplished their purpose.
Section 15. Congress, through its power to lay and collect taxes,
shall regulate and maintain an adequate and inflation-less monetary
equilibrium, to maintain a healthy and robust economy.
Section 16. Congress shall create and appropriate adequate funds to
carry out this Act, and to equitably dispose of the National debt, by
redeeming before or at maturity, all United States Securities
purchased with earned funds with Constitutional National Debt-free
Money credits, convertible into U.S. Notes currency and expunge
out of existence all U.S. Securities held by the Reserve and
Commercial banks and associated entities, which they had procured
with their own created funds.
Section 17. This legislation shall become effective upon passage (not
three years later).
After the passage of this act the government will no longer need
the revenue it now extracts in the form of income taxes. You may be
sure it wouldn't be more than a matter of weeks, or at best a few
months, before this horror of an amendment would be repealed. IF
IT IS NOT, YOU MAY BE SURE that the tax revolt now brewing
will encompass the entire land, and no bureaucrat would have the
courage to extract any further financial penance from an awakened
and angry public.
THE THREE R's: The key provisions in any proposed money
bill rests with three words: RESCIND, REVOKE AND REPEAL. If
the legislation does not contain these provisions, DO NOT
SUPPORT IT. We do not want any BUY BACK bills. We have been
fooled long enough. It is time for Americans to reclaim our
homeland and take it back from the enemy aliens and their fellow
travellers who have brought this once-great nation almost to its
knees in shameful wars, monetary and economic chaos, legislative
lunacy and international disaster.
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HOW WILL THE NEW MONEY SYSTEM WORK?
Under the new monetary system, how will money come into
circulation and how will it get into the hands of the people? If we
examine various segments of our society, we will have a better
insight into how the system will work.
INDIVIDUALS: Most people will still be paid through the usual
check by their employer. They will then go to their local banks,
deposit the check and either take all cash, or retain some in their
accounts for bills and savings. When Mr Citizen wants to borrow
money, he will go to his local bank as he now does. The difference
will be in the method in which the credit (money) comes into
existence. Instead of the banks being permitted to create money
through their present numbers game, they will deduct the amount of
the loan from the money which the government has made available
to that particular bank. The money the bank has available will
depend on two sources: 1) Savings, and 2) Government-created
credits. The bank would obtain these credits in proportion to its
financial standing. Credit or money obtained by the bank from the
government would be obtained at a wholesale rate of say 2 or 3%,
and reloaned at a slight premium. Our present interest system (which
is a legally-created scarcity), e.g. the entire amount is never loaned,
is usury. A small interest or service charge for the use of the entire
amount of money, created against the wealth of the nation, is not
usury. Mr Citizen would repay his loan in instalments, but he would
not have the same collateral requirements as now. Provision would
be made against dead-beats, of course, but never would a hard-
working breadwinner be permitted to lose his home, car or other
property after years of payments because, through illness or other
unexpected consequences, he may be unable to pay for a period of
time.
CORPORATIONS: Corporations requiring smaller loans would
go to the bank, as now, and borrow the money from the bank. In
cases of large loans amounting to multi-millions of dollars, they
would go directly to the Currency Office of the Treasury Department
and make their arrangements. The Currency Office would use the
same discretion in lending money as prudent banks now do, and
could refuse loans which seem
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frivolous or excessive. The company must prove by accurate
estimates how the money will be spent. Would this give the
Currency Office too much power? What about the bankers at the
present time? The multi-national bank combines would be dissolved,
and interlocking directors representing bankers' interests would no
longer exist. If prudent banking practices were now used, would all
that credit (money) have been loaned, especially to lesser developed
countries (LDC loans)? It is precisely due to these politically-
motivated loans to such dictatorships as, for example, Panama, that
has led to our loss of this vital military and strategic property of our
United States. Only the banks will profit from this treason. Besides,
there would be provision for an appeal by the Corporation to a
special Committee so designated by Congress should a loan be
refused the first time.
Another source of revenue for corporations and industry would
be the stock market. There would be much more stability in prices
under the new system, and less speculative opportunity, but more
investment quality, as the sinister influence of the money pools and
banking combines buying huge quantities of stock at their uniquely -
discounted prices would disappear. The stock market, as it now
exists, is completely manipulated and is an unsafe haven for all but
the most sophisticated analyst and stock buyer.
The main job of the Currency Office would be to maintain a
stable currency and this must be done by keeping enough money in
circulation to equal the productivity of the nation. As productivity
increases, so should the money supply. If it decreases, the money
supply should decrease. Such severe penalties would be placed on
the top brass of the Currency Office to keep the money stable that
bribery and treason would not occur. It would become a moral
imperative for the money to be kept stable, and this would mean the
granting of credit to all legitimate business. How else could industry
get the money to finance itself? The large loans would be repaid to
the Currency Office plus a small interest or use fee. These fees
would go into the till of the government. As money credits are paid,
they are wiped out of the money supply. In the case of banks, their
profit would be the difference between selling
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money it got wholesale and loaned out at retail. The bank will
eventually return to the Currency Office the principal, keeping the
interest as profit.
STATE AND LOCAL GOVERNMENTS: These institutions
would go directly to the local branch of the Currency Office and be
granted the loan automatically for any project which the citizens had
approved through referendum. The local government could arrange
to repay the loan, WITHOUT INTEREST, over the period agreed
upon. Without the heavy hand of usury, usually local taxes or the
revenue realized by tbe project would be sufficient to repay the
principal. Under the present system, municipal, state and local bonds
cost more than twice the original amount due to the huge interest tab
tacked on to the bonds. About the only ones to enjoy benefits under
this bondage system now are the banks, who pick up bonds at about
10 cents on the dollar, collect interest during the bonds' lifetime and
then are repaid in full at its termination. Wealthy individuals also
collect tax-free interest. But the average working person, who pays
the tab, derives only more debt out of the entire system.
Another source of revenue for states could come from the
establishment of a state bank similar to the Bank of North Dakota.
This bank, the only one in the nation, provides financing to
communities, business, invests in productive industry, and generates
capital to economically finance public service instrumentalities.
While still working within our present banking system, states should
study the North Dakota Bank and establish similar institutions in
their own states. Such institutions, if run in accordance with sound
banking procedures, would relieve overtaxation, finance local
projects and give the state a profit at the end of the year. Opposed, of
course, are the establishment bankers who see this as a threat to their
stranglehold on the business of financing through the bond(age)
method.
State and local government would benefit greatly by
government-money issue. They could modernize their facilities,
build the bridges, sewers, roads, etc. at a fraction of the present cost.
Under our Babylonian system of usury, the interest costs through the
bonds issued make these projects cost two to three
54
times the original amount. Under the new Constitutional money
system, the National Currency Office could be repaid at a stipulated
fee WITHOUT INTEREST. A $10 million municipal bond issued
today is subscribed to by banks, insurance companies, corporations
and wealthy individuals. Now the community has the cash in hand.
The banks use the bonds as collateral to create more credit money
and all the bondholders collect the interest paid by the municipality.
The community has really paid twice, considering all the interest
paid during the lifetime of the bond. This interest is usually tax free
so that the national government gets no benefit whatever from this
situation. The only ones who would not benefit from a reformed
money system would be the tyrants who are enslaving us under the
present debt-money system.
It must also be remembered that in our future world the
government will no longer be in the business of providing housing,
welfare, or running our schools, health, lives and business.
Government will be limited to those functions for which it was
created. Private enterprise will create enough jobs to enable all who
are physically able to work to do so. It is not the job of government
to breed millions of low I.Q. voters to keep these same gangsters in
office. There are always some unfortunates who cannot work due to
age, handicap or other reasons. They will be taken care of at the
local level. Under our present insane welfare system, it is a definite
conflict of interest to permit these hordes to vote or hold office. A
continuation of this system will destroy our civilization.
FOREIGN GOVERNMENTS: Loans of all kinds to foreign
nations, governments, corporations, individuals or other entities or
organizations by banks would be prohibited. All multi-national
banks which are American based would be forced to divest
themselves of their foreign affiliations. They would also be
prohibited from having any bank employee or executive from sitting
on the board of directors of any corporation, whether loans had been
extended or not.
LOANS BY THE UNITED STATES GOVERNMENT TO
FOREIGN NATIONS: Such loans would all but disappear. If an
occasional credit were to be extended, it would be by Act of
Congress, for a friendly nation, for a specific time-repayment
55
period. All such loans would be expected to be repaid IN FULL. A
revolving fund could be maintained for such purposes, but not to
engage in the nation's internal development, war efforts, schooling or
welfare. The loan could not be made for more than a three year
period and MUST BE REPAID IN FULL PLUS A SERVICE FEE
OF 5 or more percent. This would effectively stop the multi-billion
dollar credit extraction racket by all nations. Remember, our
currency would be a national currency and its value would be stable
year after year. We could not permit either inflation or deflation of
its value by disturbing the stability ratio. Loans now being made to
backward countries by international banks have been estimated by
columnist J ack Anderson to be about $700 billion. Most will never
be repaid. Many of these loan-gifts, especially those coming from
the United Nations Bank, run as long as fifty years, with interest
forgiven for the first ten years. After that the rates range between 1
and 2%. Your tax dollars are financing this outrage. Despite the
hundreds of billions poured out to these tribal units, they are no
better off than before except for the high-living primitive
dictators and their entourage. Only the multi-national banks and
international corporations benefit. Besides, why should one nation
interfere with the culture and lives of backward peoples. Let them
alone, and if the corporations want to exploit the natural resources,
they must finance these endeavors without the aid of taxpayers and a
crooked fractional reserve banking system.
FOREIGN INVESTMENTS IN THE UNITED STATES
At the present time, countries which have received our
technology and subsidies for generations are now enjoying more
solvent currencies. These individuals and nations no longer want our
dollars. They want our stocks, bonds, land, factories and farms, and
are busily buying all of these assets in great quantities. Since our
future government will be more concerned with the welfare of
America than the present crop of traitors in Washington, such
activities will be greatly curtailed or totally eliminated. In some
nations, such as Mexico, foreign interests are not permitted to
own a majority of stock in their
56
companies, even though many of the companies are American, and
the money and technology was exported to them. This will be the
case here. These companies brought a higher standard of living to
Mexico and other countries by bringing in vast industries,
technology, and creating the jobs and prosperity they never before
enjoyed. Foreign interests will no longer be permitted to purchase
our most valuable resource, our land. This is irreplaceable and
cannot be permitted to be acquired by alien or possibly hostile
parties, countries, companies, etc. Our factories must be American
owned, financed and operated. Nor will we permit our technology to
be exported by government treaty or any other ruse.
UNITED STATES GOVERNMENT FINANCING
In place of the income tax, Social Security and other assorted
taxes, the government will finance its legitimate activities by issuing
its own money on the credit of the nation. Since it will no longer be
necessary to issue bonded indebtedness to private bankers for its
credit, the government bond market as we know it will largely
disappear. In times of national emergency, it might be possible for
the government to raise additional sources of revenue by issuing
bonds which would be SOLD DIRECTLY TO THE PEOPLE. This
is a legitimate method of financing. In such cases, the people would
hand over their money to the government for the bonds and no
excessive money would be created. Under the present system, banks
"buy" the bonds and pay for them with their outrageous brand of
credit creation which represents an addition to the money supply and
feeds inflation. This particular fraud is multiplied thousands of times
per week and is one of the main, but seldom mentioned cause, of the
plight of our dying dollar. There will be certain issues ot government
bonds which will be for varying periods of time, from three months
to perhaps ten years, or even more. The function of these bonds
would be to provide a small return to the holders, but their primary
function would be the insurance of the stability of the currency.
The present national debt would be liquidated as follows: to
legitimate bondholders, e.g. those who paid earned dollars
57
for their bonds, new bonds would be issued and gradually paid off
over a period of about ten years or less. The bonds acquired by banks
through credit creation would not be paid as it is not a legitimate
debt. These bonds literally represent a theft of assets from the
American people. In stead of being repaid, such holders should he
put in prison. This would automatically cancel several hundred
billions of dollars from the national debt. It would also eliminate our
$40 billion plus per year interest tab.
HOW WOULD THE GOVERNMENT FINANCE ITS OWN
ACTIVITIES?
It may seem too Utopian for the average reader to grasp the idea
that the government may acquire its own money without debt or
taxation. But it can be done. In fact, this is what the Cramers of the
Constitution intended when it was drawn up. They had their fill of
debt money from the Bank of England with its consequent boom and
bust cycles. Let the government get its money the same way the
banks now get theirs. They create it All government activities would
henceforth be financed in this manner. This is how it would work.
Let us say that the national government wanted to build ten
high-powered military jets at the cost of 500 million dollars.
Remember that our nation has the capacity, ability, resources and
skills to produce just about anything that can be produced. All we
have lacked up to this point is money. Now the money will be
available WITHOUT DEBT BY THE PEOPLE TO THE BANKERS.
The company or companies selected by competitive bidding to
manufacture the jets will be issued government checks by the local
Currency Office. These checks will then be deposited in various
banks and the company begins to pay all bills arising out of the
planning and construction of the jets. This money will circulate
freely, without debt or bonds, in the community and the nation. The
local Currency Office will have no option to withhold this credit
once the legislation has been enacted authorizing the building of the
jets. Nor will the government be permitted to interfer in the
production of the jets through enforcement of job quotas or any other
type of "social legislation". Free enterprise must be permitted
to
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operate unhampered by reactionary and restrictive Marxist doctrine.
Actually, the financing will be nothing more than a national
accounting system. This is really all our money system is now. The
BIG DIFFERENCE is that it is borrowed from private banks and
carries a huge interest tab, which means the indebtedness of citizens.
Another good effect would be that most prices would come down as
the huge interest costs would no longer be a factor in company
expenses or a drag on our economy.
Would such unlimited credit creation cause inflation? The
answer to that is NO because the money supply would be kept stable
and only be allowed to expand as the economy and population
expands. The thing that causes inflation is our present usurious
money system which thrives on interest through credit expansion or
creation by private banks. Our inflation is staggering and will
probably get much worse before the entire money system breaks
down as planned. If we don't call debts of over $5 trillion
inflation, what is? The interest alone on such a staggering debt load
is probably more than the total value of all the assets in the nation. If
our dollar goes down to zero value, as the German mark did after
World War I, it will have been caused by this very system which
created the disaster in the first place. There would be the restraints of
law on the Currency Office and their personnel to maintain the
currency at a stable level. Without the interest tab of billions of
dollars annually, the money available for normal expenditure would
be enormous. Additionally, the government would receive billions
per year in fees for the money it discounts to banks and from
corporate borrowings. This could add up to several hundred billion
dollars per year. Without an interest tab of $40 plus billion on the
national debt alone, without foreign aid and gifts to the United
Nations international banks, with the abolition of the welfare system
and other typical non-government activities, this income should be
sufficient to support the national government.
One can readily see that the interest load on the total public and
private debt erodes the effective purchasing power of the
continually-increasing money supply.
It must be remembered that as the bankers' influence
59

Courtesy Monetary Science Institute, Wickliffe, Ohio.
disappears, we will have more responsive and responsible people in
Washington. Members of secret societies, internationalists, traitors
and the anti-American groups we now have MUST GO. The people
involved in building the jets (and all other similarly financed
projects) contribute their wealth to the community through their
work and skills, as well as from their purchases of food, clothing,
payment of rent, recreation, etc. This is the true gross national
product (true wealth) and not the distorted average which is now
used. We must re-orient our thinking into regarding the farms,
factories, products and technological skill of the work force as
representing the true wealth of the nation the source from which
our money supply must originate. If we can do this, America and
mankind will have, for the first time in centuries, a truly honest and
representative money system.
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Chapter IX
PROGRAM FOR SURVIVAL
Our money system can and must be reformed. We must
recognize that those who got us into this present mess will not give
us honest reforms. We will simply be led into the next step which
will either be a cashless society, or a world-wide money situation in
which everyone will be equally poor. We don't want the bankers'
version of a cashless society to be established through the use of
computer numbers or a plastic one-world credit card. That program
spells total disaster for any hope of financial freedom or survival.
There is also no sane reason why advanced peoples who have
developed civilization should be put on the same level as primitive
people.
Once enough Americans have grasped the necessity of re-
oriented thinking on the money question, it will become a matter of
political pressure to force the elected turncoats to obey their oath of
office and stop betraying the people they are supposed to represent.
The debt money system must be replaced with the credit and
productivity of the nation. This concept is a positive one. It
encourages production, inventiveness and industry. The more a
nation produces, the wealthier it is. And the more it produces, the
more money it has. The money will be kept in proportion to the
increased population, production and wealth of the nation.
First and foremost, the Federal Reserve Bank and all of its
branches and properties MUST BE NATIONALIZED and their
assets confiscated by the government. These buildings and
appurtenances belong to the people. Everything the banks now
"own" was stolen from the nation through their fraudulent creation
of credit money. In order to restore the United States to sanity,
solvency, and economic freedom, the following steps must be taken.
1. The Federal Reserve Banking Act and all of its subsequent
amendments MUST BE REPEALED, RESCINDED AND
REVOKED.
2. All fractional reserve banking must be abolished in
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commercial banks and all financial institutions.
3. Usury must be outlawed. Usury is the practice of permitting
banks to create money credits (or credit money). The borrowing of
money at small interest rates is not usury, but the bankers have been
careful to miseducate the public on this subject. Our future money
will be real money which the bank either earned or had obtained at a
discount rate from the government and loaned out to corporations or
individuals for a small service charge. Banks could operate
profitably on a small percentage of return which would include all
their expenses. Many industrial firms, after taxes and all expenses,
are proud to report profits of 4 to 5% to their stockholders. Banks
should do the same. Banks would no longer be permitted to purchase
real estate, stocks and bonds or anything else for that matter, by
issuing checks against bookkeeping figures.
4. Abolition of the income tax. This Marxist anachronism must
GO. It is the most vicious, repressive and reactionary tool in the
armamentarium of the international bankers. The income tax was
never intended as a revenue-raising device. Its purpose was to pay
interest on the bonds issued as a result of Uncle Sam's borrowing
money from the private money monopoly. It also served to put the
people under surveillance and control.
6. Abolition of ALL TAX FREE FOUNDATIONS. Such
discriminatory favoritism has no place in a world in which all
citizens will share in the prosperity of the nation as a whole. When
these sinister foundations are dissolved, their influence on
universities, governments and other organizations will cease. We can
then get back to fundamentals and stop training robotized puppets
who will fit into the Socialist scheme of the bankers' "utopia" which
will be an Orwellian hell.
6. Abolition of interest on mortgages and the prohibition of
speculation in land. People with good work records would be
permitted to borrow money for only a small service charge. No
longer would a house cost 35 to 40% more than its original cost
because of huge interest payments. Our land is too precious a
resource to permit speculation therein. Land is a trust and must be
treated as irreplaceable. It must be respected. Speculators have no
interest in the benefits to be brought to land only a quick profit.
The land speculators will have to find work
63
elsewhere. Ownership of land will be a trust in which the land must
be properly developed and cared for, or the owner would forfeit his
right to occupy it
7. Criminal penalties will be invoked against those who attempt
to war against a system which will bring justice, prosperity and
peace to our nation. Banker-sponsored revolutionists and
foundation-funded freaks will feel the full impact of a sane,
objective and rational law which will be invoked for the benefit of
the population and not be geared, as at present, to the undermining
of the majority and protection of revolutionist minorities.
8. New money will be issued on a dollar for dollar basis. This
money will be based not on debt as now, but on the wealth of the
nation. This money could be called National Currency or United
States Notes and would be debt and interest free.
Establishment of a Department of Currency within the Treasury
Department which would be responsible for the issuance of ALL
MONEY AND CREDIT. Criminal penalties, including death, will
be faced by any member of the Currency Department who acts in
any way to disturb the stability of our national currency on the level
established by law.
10. Establishment of a monetary standard using 100 as a basis
for the issuance of money. With our present sophisticated computers,
the value of our national wealth could be accurately established
along with the concurrent need for an equal amount of money or
credit. Issuance of money and credit would be kept within two
percentage points either above or below the base line. If credit
expands beyond the 102 level, further issuance of money or credit
would be curtailed until the norm had been reached. Conversely, if
the demand for money decreased below the 98% level, tax refunds
would be made and public projets encouraged. Never, however,
could the level of either side be exceeded. A watchdog committe in
Congress would oversee the Committe on Currency and their
obligations would be as strict as those on the Currency Committee.
This would not be a partisan project. With the establishment of a
national, Constitutional, interest-free money system, in all likelihood
the absurd political so-called two-party system will vanish.
Government would be reduced in size and the power
64
and influence of bankers would disappear. Therefore, we could
expect and demand honest representatives for a change, and the
tyranny of Marxist Capitalism would vanish from the face of the
earth.
"The right money bill is the thing on which our republic will hang.
The wrong money bill will hang our republic."
Author
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